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May 14, 1982 - Image 5

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Publication:
Michigan Daily, 1982-05-14

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The Michigan Daily-Friday, May 14, 1982-Page 5

Braniff
files for
"
protection
from
creditors
GRAPEVINE, Texas (AP) - Braniff
International filed for protection from
creditors under federal bankruptcy
laws yesterday, and airline officials
said they hoped to resume some flights
in about six weeks.
Braniff chairman Howard Putnam,
his voice breaking with emotion, told
reporters that his debt-strapped airline
had filed the petition after realizing it
could not stay afloat until the start of
the crucial summer travel season.
"THE PASSENGER load factor, the
cash situation just declined
precipitously," Putnam said. "We,
were in a race for summertimeand we
lost."
Braniff, which becomes the first
major U.S. airline to fail since the in-
dustry emerged from the barnstorming
days in the Roaring 20s, had suspended
all flights late Wednesday and notified
most employees not to report for work
yesterday.
Late that night Putnam and two
lawyers appeared at the home of
federal Bankruptcy Judge John
Flowers to file the petition. The airline
lost $41.4 million in the first three mon-
ths of this year, $16 milion last year,
and had a total of $336.4 million in losses
over the past three years. It is also
burdened with a debt of $732 million and
has been unable to foot the interest
payments.

AS TOP BRANIFF executives filed for bankruptcy yesterday, company jet liners sit idle at Fort Worth Airport, Texas.
Airline officials said they hope to have the planes in the air in 6 weeks.

More busi
WASHINGTON (AP)- The collapse
of Braniff International airlines comes
in the midst of an epidemic of business
failures unlike anything the United
States has experienced in nearly a half
century.
As bad as the situation is today, it
may worsen in the next few months
without a swift end to the current
recession and a break in high interest
rates, some economics believe.
"I THINK the string of bankruptcies
will get longer," Edward Yardeni, chief
economist for the Wall 9treet
brokerage firm E.F. Hutton & Co.,
predicted after the Texas-based airline
initiated bankruptcy proceedings
Man falls to
death from
E. William
apartments
(Continued from Page 1)
evidence that he was pushed off-we
have to assume that he jumped, that it
was a suicide attempt'"
Eyewitnesses said they could not con-
firm whether the victim fell from the
roof or from a window, only that he lan-
ded near the William Street driveway of
the apartment building.
"All we heard was his body hitting
the ground," said Michael Nelson, 17.
"People didn't know it was real,"
aiother witness said. "It didn't look
real. They thought it was a dummy
someone threw out of a window."
According to witnesses, the victim
gave no warning to pedestrians below
of his intended leap. "He didn't scream,
he just hit the ground," said Bob Avery
of Ann Arbor, who rushed to the scene
moments after he saw the victim fall.
Police recovered the victim's wallet
and apparently have determined his
identity, but would not release his name
pending notification of next of kin. Of-
ficials said they expect to release his
identity sometime today.
The victim was taken to the Univer-
sity Hospital's morgue.
Daily staff writer Lou Fintor filed
a report for this story.

nesses expected to fail
yesterday. All told, 8,129 businesses filed for
"Many businesses are doing bankruptcy during the first third of
everything to stay alive until July 1," 1982, a 49 percent increase from 1981.
when they are counting on a scheduled "The situation is getting worse and
10 percent income tax cut to propel the spreading," observed the chief
economy toward a strong recovery, economist of one major New York-
Va,; d cnid based bank.

xarueni saia.
"But if the tax cut proves not to be a
miracle cure, many businesses will be
forced to capitulate -. . . and the
bankruptcy numbers could get a lot
worse," he said.
EARLIER THIS week, Dunn & Brad-
street, a leading financial information
service, reported that 530 businesses
failed during the week ended May 6, the
highest number in more than 40 years.

"YOU'RE GOING to see more
bankruptcies involving bigger com-
panies as long as interest rates remain
high ... and interest rates will remain
high until there is a budget compromise
in Washington for reducing the budget
deficits," said the economist, who did
not want his name used.

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