Chapter 11 of the U.S
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C ONNFC nc ( T L S V^DRI D SPORTS Gtaatonbury (Ire OanrHarfset H+H -H kHte two paopte to try again up wWi WiMto .. poga4 .. pagaT I f 1 H r r a l f i {Rmxdmtn) yHnr,hR>;ter n City o* VitCiqR C^.r Monday, April 13,1967 30 Cams C h ap ter 11 bid angers I Pennzoil ■’' tU. 2 Texaco largest vT j r : company to file By Rick Olodston# Th« Asseclofpd Fr«M NEW YORK — Texaco Inc. became the MgfestU.S. company ever to file for bankruptcy protecthm in a move it blamed on Pemnoll Co.’s "groed” for tryhif to collect an |l 1.1 Mllion Judgment from a battle ovr Getty W Oil Co. Texaco said its fiiinf Sunday under Chapter 11 of the U.S. Bankruptcy Code would prevent Ks devastation while it appeals the Judgment. The action drew an Hersid plwio 6y Tveiwr angry response, however, from Pennzoil, which now faces a comptex figM to collect from a company I f Jeff Smith of Bolton and Larry Ostrout of Manchester head with a time of 1:18.39. More pictures on pages 3 and 11; times its size. Stock prices of both companies tumbled today. down river during Sunday’s Hockanum River Canoe Race. race results on page 11. Orders to sell companies’ stocks swamped the New The pair, In the OC-2 recreational division, took sixth place York Stock Exchange when it opened, causing trading in the two stocks to be temporarily delayed. Once traiflng began, Texaco’s stock fell <913'A a share to 128.75, and PernizoH’s stock plunged 812.75 a share to 878.50. Hockanum tests canoeists, delights viewers Analysts said Texaco’s move could pressure both companies to settle their bitter dispirte, in which Pennsoil accused Texaco of Illegally interfering in a By John F. Kirch planned merger between Pennzoil and Getty In 1804. Htrold Reportor Baine P. Kerr, chairman of PennzoH’s executive committee, accused Texaco of arrogant. Improper Steve Chase sat on Ms I7-(oot behavior. aluminum canoe Sunday afternoon, Texaco president James W. Kinnear said Pennsoil drinking a cold Budweiser and had “ Mndgeoned Texaco with unreasonable demands” wiping the sweat from Ms forehead. and “ placed its own greed above any consideration of Although he didn't know it at the fundamental fairness or the public welfare.” time. Chase and his partner, Larry Texaco, the country’s third-largest oil company, Bates, had finished sixth In their , JW remains solvent, analysts said, and Its day-to-day class in the 11th annual Hockanum operations should be unaffected. But the filing gives River Canoe Race. ‘Texaco a reprieve from creditors, freezes Peimaoil’s But as both rested at the finish attempts to seise Texaco assets and places Texaco line behind the Powder Mill shop under strict supervision of a federal court. ping plaza in East Hartford, their "This was a most difficult, painful and wrenching 1; 18:41 finishing time was not the decision for me and the other members of Texaco’s most important part of this sunny, board of dUrectors,” Kinnear, the company’s chief warm day. Having fun and drinking executive officer, told a New York news conference. a beer was. "However, we had no choice In the matter,” he said. ‘ T m tired,” Chase said, still “ We were, quite simply, forced to make a R a p to r 11 panting. “ Your mouth gets so dry. filing because Pennzoil has rejected any reasonable It’s incredible.” he said, taking basis for settling the absurd 8111 billion Texas another sip of cold beer. judgment.” Texaco and Pennzoil have been fighting in Texas and CHASE WAS AMONG the 228 federal courts since a Houston Jury agreed that Texaco people In 114 canoes who took part unfairly acquired Getty and awarded Pennzoil a in this year’s race, making the record 810.5 Mllion damages. event the second largest In Its The Texas Court of Appeals cut the award by 88 history.• billion, but with interest Texaco owes 811.1 billion. Last About 1.000 people watched the week the U.S. Supreme Court ruled that Texas law race, cheering and yelling advice to requires Texaco to post a bond In that amount while It unsuspecting canoeists approach appeals the Judgment. ing rough spots on the river. And A hearing on the bond had been scheduled today in a there were plenty of rough spots. Texas appellate court In Houston, but the hearing was The Hockanum River’s tight postponed because of the bankruptcy filing. bends and strong currents make it a Kinnear said uncertainty over the outcome of the hard river to race, canoeists dispute has frightened Texaco customers, lenders and agreed. suppliers, making it difficult for the company to "M y shoulders, everything Is arrange credit and conduct business. stiff,” said racer Lloyd Parker, 'Texaco’s stock value eroded while Pennsoil’s stock "But It’s fun. I love it. People are soared In recent days because of the dispute. On watching you, cheering you on. Friday, 'Texaco dropped 57>A cents a share to 8S1.87VI, They stand there helping you. and Pennsoil Jumped 88.18 to 882.25. There’s a lot of good people out Texaco acknowledged that It purposely announced there. When possible you take their before financial markets opened today that the advice. But sometimes you make a company had filed the Chapter 11 petition in U.S. wrong turn and ypu say, ’Forget Bankruptcy Court In White Plains, where Texaco is It.’ ” Hwtid photo by Tuekor headquartered. Kerr, of the Houston-based Pennzoil, said he was FOR SPECTATORS, those place with a time of 1 hour, 24 minutes, 9 surprised and annoyed. wrong turns aiid choppy waters Heather Smith of Manchester paddles her “ It shows in my Judgment an arrogance and were half the fun. kayak down the Hockanum River In the OC-1 seconds. disregard for the whole Judicial process and an attempt Iliough no one wanted to see to use the bankruptcy laws improperly,” Kerr said. Please turn to page 3 solo class In Sunday’s race. She took fifth Hinckley still poses threat, feds warn TODAY’S HERALD Shulti for talks Ballot Mil facat vota is a continued threat to Reagan's mains focused on the past, simply Penny Lynn Bailey of Chicago, also Bv Jamas Rowley retelling Mr. Hinckley’s past acts.” asked her to kill actress Jodie After mree months of haggUng, a The Associated Press s&fdy. Secretary of State George P. The government, citing letters They said psycMatric evidence of Foster or hijack an airplane to Shultz today met Soviet Foreign legislative committee is to vote on a a substantial improvement in force his release. MU calling for sweeping changes In WASHINGTON — Presidential Hinckley wrote discussing plans to Minister Eduard Shevardnadze for Hinckley’s mental condition “ far Ms. Bailey was charged in 1884 me way absentee ballots are assailant John W. Hinckley Jr., escape from St. Elizabeths, dis two rounds of talks and a working outweighs me single factor of past wim mreatening to kill one of her handled. The bill grew out of the seeking court permission for an putes the hospital’s conclusion that lunch on roadMocks to a treaty mat acts.” former teachers. When she was scandal In Watorbury’s guberna unescorted visit to his family, is Hinckley poses no danger. would remove hundreds of missiles Hinckley gradually has been arrested, the FBI said Ms. Bailey torial delegate primary last year being branded as dangerous by “If psycMatry was capable of from Europe and on promoting predicting Mr. Hinckley’s future given more and more privileges, had offered to kill Miss Faster for religious freedom. Shultz also between supporters of Qov. Wil prosecutors, while his lawyers including the right to move unes Hinckley. argue the government is focusing dangerdusness, there would never planned to complain about the liam A. O’ Neill and former Con corted in the grounds to and from Prosecutors say Hinckley shot gressman Toby Molfett. Story on only on the past. have been the need for a trial In this “ pattern of intnistveness and hoa- case,” prosecutors said In court his hospital Job, they argued. Reagan In an attempt to impress tlUty” Anterica aays Is caused by page 4. PsychiatrisU at St. Elisabeths But me government, citing let Miss Foster, for whom he had an Hospital, where Hinckley Is being papers mat noted Hinckley’s exten Soviet eavesdropping at the U.S. ters Hinckley wrote, argues, obsessive love. held, say a one-day Easter visit sive Mstory of mental illness. Embassy. Story on page 18. “ Hinckley’s history of dangerous Anomer Hinckley letter was Indax would be therapeutic for Hinckley, Hinckley shot and wounded Rea and unpredictable conduct did not written to a fellow patient des who was acquitted by reason of gan, presidential press secretary Adviee. _ 1 7 LoWSry , t cease upon Ms admission to the cribed by prosecutors as a con insanity of charges he tried to James S. Brady, a Secret Service _ a OMIuartao— to agent and a city policeman outside hospital.” victed felon "notorious for his CTaisHlod -18-88 O p M o n _ 8 assassinate President Reagan in escape attempts.” a downtown hotel March SO, 1881. Pirosecutors cite letters Hinckley Cowles M - 8 Feopis ...I 8 1881. wrote discussing plans to escape The government also cited Hinck U.S. District Judge Barrington D. He was committed to St. Elisa CisMing CennoeHoiil__ 4 Bporis—.. 11-18 from me hospital, induding a 1M8 ley’s recently expressed desire to Parker scheduled a hearing today beths in 1882 after his trial before mtsiialnmonl 18 Tstoriilew18 letter to a friend asking her to mail go live wim a woman who once Tonight, clearing.