European Stars and Stripes (Newspaper) - May 4, 1992, Darmstadt, Hesse                                Monday May 4, 1992 the stars and stripes a Page 17� Money matters Vail associates inc., the owner of the Vail and Beaver Creek ski resorts in Colorado plans to file for chapter 11 bankruptcy Protection this month As a was to shield itself from the financial problems of its Parent company Gillett holdings inc. The company said that the filing would not affect the Day to Day operations of the resorts which it said were profitable. It also plans to spend $8.5 million on capital improvements this year at the resorts among the largest in North America. However the bankruptcy will facilitate the reorganization of Gillett holdings which has negotiated a restructuring plan to emerge from chapter 11 after months of talks with its principal creditors and Banks. Gillett holdings entered bankruptcy last june citing $1.2 billion in debts. The company said these were incurred after it issued High yielding junk Bonds to buy television stations in the 1980s, out then saw revenues Trail  rates London Fuji fridays rates for the . Dollar to other currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $337.70 an ounce Silver at $4.00. April 30 May 1 British Pound.1.7754 1.7840 German mark.1.6525 a French franc.5.5955 5.5385 dutch guilder.1.8678 1.8485 belgian franc.34.03 a italian lira.1,247.75 1,234.63 Swiss franc.1.5195 1.5015 greek drachma.194.50 a turkish lira.6,606.90 saudi arabian riyal.3.7488 a Spanish peseta.104.15 a portuguese escudo.139.93 a Canadian dollar.1.1946 a austrian schilling.11.6860 a norwegian krone.6.4815 a danish krone.6.4185 a these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rates concerns the Sale of German Marks and British pounds to . Personnel for personal use and these will be 1.62 Marks to a Dollar and $1.82 for a Pound through  s May shut up to 30 stores in reorganization new York a . Macy amp co. Is considering closing 15 to 30 of its stores As part of its bankruptcy reorganization Crains new York business reported. The publication in its May 4-10 edition said Macy a executives Are going Over a list of the chains 144 outlets across the nation and deciding which stores to close. A a it a the biggest Issue on their plate right now a said a Macy bankruptcy adviser whom Crains did not name. A the cuts will be soon and  Macy a already has announced it will close 52 specially shops and five units of its upscale i. Magnin Chain. Crains said closures Are Likely to include stores in Brooklyn and new Rochelle . New Haven Conn. And Newark and Morristown . Company executives Are Likely to give a full list to . Bankruptcy judge Burton Lifland within 30 Days As the first part of a five year business plan to be filed by the end of the year Crains reported. Hang  about investments in phone systems questioned by Chet Currier the associated press new York a amid All the  and Downs of the Stock Market so far in the 1990s, investors in the regional Telephone companies have spent most of the new decade on hold. Shares of these seven regional phone system operators lagged All through the 1990 Bear Market and the recession that followed. When Stock prices subsequently rallied to new highs they still Dawdle behind. From the Start of 1992 through late april the Dow Jones Index of Telephone system stocks dropped 4.53 percent ranking 67th among 96 groups tracked by the publishing company. A the regional Telephone group has underperformed the Market for two years a observed Michael Elling an analyst at Oppenheimer amp co. The resulting frustration has been widely Felt among the investing Public. With the single exception of their former Parent american Telephone amp Telegraph the regional companies Are the most widely owned stocks in this country. For several years after they were created in the Jan. 1, 1984, breakup of the old at amp to the new companies treated their share owners to some handsome rewards. Their Stock prices tripled or quadrupled through the remainder of the 1980s, with a Cornucopia of dividend increases to add to their Appeal. For instance shares of Merit sch soared from about $20.75 in their Early Days to a Peak of just under $70 in the Winter of 1990-91. At their lows a few weeks ago they had fallen Back to $55.75. Similarly Rynex climbed from As Low As $29.37w at the outset to $92 in 1989, Only to slump to $68 by this year. A primary reason for the stocks downturn was a flattening out of earnings and dividend growth As the recession crimped both increases in the number of Telephone customers and the amount of time those customers spent using their lines. A Telephone companies Are not As immune to economic cycles As previously had been thought a noted the value line investment Survey in its new quarterly report on the Industry. A second worry was the increasing presence of some unfamiliar Competition a in both existing areas of operation and the Uncertain realms of the future world of voice and data communications. Various Independent operators have been picking off some of the phone companies most profitable business customers with services born of new technology. Competitive threats for the future loom from such other parties As Cable television operators. A Competition in the regulated Telephone business is on the Rise a value line noted. In the last couple of weeks however the regional phone companies have enjoyed a bit of a rally As analysts began to question whether the stocks might be suffering More punishment than they deserved. For instance in a discussion of one member of the group Bel South corp., the investment advisory service Dow theory forecasts in Hammond ind., asserted a the pessimism surrounding the Stock appears  a at 6.3 percent the stocks dividend yield now exceeds that of Many slow growth electric  Stephanie Georges telecommunications analyst at Salomon Brothers inc., added a the group at a 25 percent to 30 percent discount to Standard amp poor a 500-Stock Index and a 6 percent average yield is discounting what we believe to he a very negative  in addition analysts said the confusing 4 Prospect of More open Competition need not be viewed As totally negative for the companies. In such an environment value line analyst Philip mul Qucen pointed out the phone companies could Benefit from a relaxation of regulatory constraints. He also suggested that they need not suffer one Sid edly in a competitive collision with Cable television operators. A with the poor customer service track record of that Industry a he observed a if the government were to relax competitive mandates its conceivable that Telephone companies could pick up More revenues from providing Cable to versus the other Way  Oldsmobile to Stop making two models Detroit apr Oldsmobile says it is ending production of the Tornado luxury Coupe and the custom Cruiser Wagon this year because of slow sales. August r. Buenz a spokesman for the general motors corp. Division denied the cutoff was related to expected consolidations of similar models throughout the no. 1 automaker. A we done to have the resources to adequately properly Market those cars a he said. Last week pm announced plans to consolidate All its North american car and investors guide truck making operations but pm chairman Robert c. Stempel did not specify car models or lines that might be eliminated. The Tornado introduced in 1966, is expected to be replaced for the 1994 Model year with a four door luxury Sedan to compete with Toyota a lexus said Auto analyst Chris Cedergren of the Auto Pacific group in thousand Oaks Calif. Oldsmobile estimates sales of the custom Cruiser Wagon have dropped from 100,000 units in 1990 to 40,00 j this year. Dealers will try to keep customers in their showrooms by steering them to min Ivans or sport Utility vehicles. The Tornado hit Peak sales of 50,000 units in 1972. So far this year Only 2,700 units have been shipped. Tornado production at Gmys Ham track Assembly Plant will end in december Buenz said. The custom Cruiser Wagon is built at the Willow run Assembly Plant which pm has said will close next year. Last year pm announced plans to close 21 North american plants and Cut 74,000 jobs to return to profitability. The company lost $4.5 billion last year. Get advice before giving away property by Bill Doyle a my wife and i jointly own about half an Island off the coast of Maine. We bought it for peanuts Many years ago. Now we pay property taxes on its $120,000 assessed value. It is undeveloped and due to the recent arrival of nesting eagles is unlikely to be developed. We tried to sell it for More than its assessed value. No takers. We Are thinking of giving that property to our three children As gifts. Can we do that without paying a capital tax perhaps Over a two year period a you Don t pay capital tax on things you give away. And if you Are not Caref til you run afoul of Federal gift tax regulations which Are quite different things. The internal Revenue code allows each of us to give gifts Worth up to $10,000 to each of As Many people As we please All without filing a Federal gift tax return. A married couple can give $20,000 annually to each fortunate recipient again without filing a Federal gift tax return. Assuming $120,000 is the fair Market Price your Island would fetch if sold both you and your wife can give $20,000 of the islands value to each of your three children annually. In two years you will have Given it All away. If your children arc married you can make the same gifts to their spouses completing the whole Deal in one year. Arrangements such As this Are complicated. If you Transfer the property my firm recommendation is to have it structured by a tax lawyer who such matters. Q we pay several thousand dollars each year in casualty insurance on our Home and on a vacation House. We could easily replace either if destroyed. Perhaps we should drop the insurance coverage and take the risk. When does it make sense to be self insured a How Gutsy do you feel and How Lucky Are you if you Are willing to run a mighty big risk go ahead and cancel the insurance on your Home and vacation place. That Way you would save the premiums you pay. But you would be taking a much big Doyle is experienced in Ger Gamble than most people Are willing to accept. Although Home insurance can seem costly it s almost necessary. Besides providing monetary Protection in the event of fire or other damages it brings with it peace of mind. Cancelling it makes very Little sense even though you have the wherewithal to replace the houses. If you have a mortgage on either House the Lender will insist you have insurance coverage. Q i own a condominium unit which i use As a vacation Home during the summer. I do not rent the unit out. I also own my primary residence. Will i have to pay capital gains tax if i sell my Condo unit and buy another property within one year in other words is a second residence treated the same As a primary residence for tax purposes a you will have to pay tax if you sell at a profit. The profit is taxable As a capital gain on which the maximum Federal 1 tax bite now is 28 percent. A second residence does not get the same tax treatment As a principal residence. Doyle welcomes written questions but he can provide an a Era Only through the column King features Syndicate inc