Judge OKs Greyhound Reorganization: A U.S. bankruptcy judge late Friday confirmed the reorganization of Greyhound Lines Inc. but left open the prospect of potentially large future payments to its striking drivers. Under the plan, creditors will get 95% of the company, with the remaining 5% going to employees, company spokesman Bill Kula said. The decision by U.S. Bankruptcy Court Judge Richard Schmidt in Corpus Christi, Tex., to give his blessing after listening to two days of legal arguments, ends Greyhound’s Chapter 11 case that began in June, 1990, three months after its 6,300 drivers went on strike over wages and benefits. When Greyhound emerges from bankruptcy in late September or early October, it will be a company with publicly traded stock largely owned by its creditors.
From Times Staff and Wire Reports