Salant Files for Bankruptcy Apparel manufacturer Salant Corp.
sought refuge in bankruptcy court Wednesday after struggling
unsuccessfully with debts incurred in buying a larger rival two
It was the second filing under Chapter 11 of the federal
Bankruptcy Code for the New York-based clothing company, whose
nationally known brands include Dr. Denton sleepwear, John Henry
shirts and Lady Manhattan sportswear.
Salant attributed its troubles to weakness in the retail
business at a time of year that is always the slowest for the
The fate of Salant furnished another example of what can happen
when companies fail to generate enough cash to pay for takeovers
financed with borrowed money.
The bankruptcy filing was foreshadowed in mid-June when Salant
diclosed discussions with lenders about refinancing its debts.
Reform Bills Would Increase SEC Powers WASHINGTON - Bills that
would give the Securities and Exchange Commission authority to curb
penny stock fraud and other illegal activities were approved by a
House committee Wednesday.
The House Energy and Commerce Committee, which oversees the Wall
Street regulator, voted to send the Penny Stock Reform Act and the
Securities Law Enforcement Remedies Act to the full House for
The penny stock bill, introduced just two months ago, would give
the SEC power to bar crooked promoters and consultants from selling
the highly speculative stocks which usually sell for a dollar or
Former S&L Owner Enters Innocent Plea DALLAS - Former Vernon
Savings & Loan owner Don Dixon, accused of illegally trying to raise
money for former House Speaker Jim Wright and others, pleaded
innocent Wednesday to 38 federal charges in the collapse of his
thrift three years ago.
A trial date of Aug. 20 was set by U.S. District Judge Joe Fish
for Dixon, who remained free on personal recognizance.
A federal grand jury in Dallas indicted Dixon June 13 in the
$1.3 billion collapse of Vernon Savings and Loan in 1987. Federal
regulators at the time called Vernon a prime example of the abuses
in the savings and loan industry.
Dixon has staunchly maintained his innocence and has claimed he
is a scapegoat for the government's mishandling of the savings and
The indictment alleges that Dixon used thrift money for
contributions to political candidates, including Wright, and misused
thrift money. …