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Time - Man of the Year
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Time_Man_of_the_Year_Compact_Publishing_3YX-Disc-1_Compact_Publishing_1993.iso
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12219916.000
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1993-04-08
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THE WEEK, Page 21 BUSINESSEven Icahn Gets The Blues
The financier gives up control of ailing TWA, and Iacocca mulls
a rerun
The mere mention of the name of financier Carl Icahn once
sent chills through corporate boardrooms. That was before he got
into the airline business. After seven long years of trying to
make a go of TWA, Icahn has announced that he is giving up. As
part of a reorganization plan that should enable the battered
carrier to emerge from Chapter 11 bankruptcy protection early
next year, Icahn agreed to provide $615 million in cash, loans
and pension-fund guarantees. The deal will put the shrunken
carrier on sounder financial footing, though it remains to be
seen whether TWA can survive the dogfights still pounding larger
and stronger carriers.
Northwest, for example, barely averted a Chapter 11 crash
landing by securing $2.2 billion in new financing and
cancellation or delay of a whopping $6.2 billion in orders for
new aircraft. And just a week after industry leader American
Airlines was forced to let go 576 of its managers, Delta
chairman Ronald Allen conceded that layoffs and pay cuts may be
necessary at his carrier too. Perhaps the most dramatic evidence
of the industry's deepening distress is TWA's decision in effect
to call in the cavalry. Chrysler chairman Lee Iacocca, who will
retire at the end of this month from the company he once saved,
is considering taking on the resurrection of TWA as his next big
challenge.