IN BRIEF : American Continental to Cut Back

Phoenix-based American Continental Corp. will change its focus from land development to income-producing properties and will cut its work force in half after selling Lincoln Savings & Loan Assn., chairman Charles H. Keating Jr. said Thursday.

Keating told reporters during an informal gathering in his office that the sale of Irvine-based Lincoln Savings to an investment group is critical to survival of American Continental.

He denied rumors that his company is on the verge of bankruptcy, although he said it has been caught in the recession in Arizona’s construction and real estate industries. American Continental reported a $38-million loss for the third quarter ended Sept. 30.

Its fourth-quarter financial statement has not been released.

American Continental announced in December an agreement to sell Lincoln Savings to an investment group headed by Spencer Scott of Glendale.

Keating said that he expects California and federal regulators to approve the sale next month.