Business Briefs

Hearing set in Pace Airlines bankruptcy

A U.S. Bankruptcy Court judge overseeing the case of Pace Airlines Inc. has ordered a hearing for 2 p.m. Wednesday to discuss the request by the bankruptcy trustee to review company property held by Lee Booth. The hearing is set for the Bankruptcy Court at 226 S. Liberty St. in Winston-Salem.

Edwin Allman III requested the expedited hearing to gain access to any facilities and warehouses owned by Booth or his company, Luft Spares Inc. Allman said he wants to inspect, photograph and inventory the contents. Allman has listed Booth as a co-owner of the defunct company along with William Rodgers Sr.

Booth said Friday that he has consented to the request and is arranging an inspection of his facilities next week.

Allman also is requesting permission to sell 11 vehicles that belonged to Pace to Buck's Wrecker Service for $2,000. Buck's has been in possession of the vehicles since the bankruptcy filing. It submitted to the trustee a bill of $7,680 for towing and $21,000 for storage.

The trustee said an appraiser has determined that the best value for the vehicles would range between $10,000 and $12,000 after investing in equipment needed to start the vehicles.

Richard Craver

Lorillard sets dividend and repurchase plan

Lorillard Inc. said Friday that its board of directors has declared a quarterly dividend of $1.30 a share. The dividend is payable Sept. 12 to shareholders registered on Sept. 1.

The board also approved a new share-repurchase program, authorizing the company to repurchase up to $750 million of its outstanding common stock.

Lorillard also said it had completed repurchases under its $1.4 billion share-repurchase program that was announced Aug. 20 last year and amended May 19.

It said the next round of purchases would be funded from existing cash balances.

The new share-repurchase program may be suspended, modified or discontinued at any time. It has no set expiration date.

Richard Craver

Oak Ridge reports smaller quarterly loss

Oak Ridge Financial Services Inc. reported Friday that it had a loss of $86,000 in the second quarter compared with a loss of $167,000 a year ago.

The bank had an earnings loss of 5 cents a share compared with a loss of 9 cents a year ago. Excluding a $97,000 payment to the U.S. Treasury for its participation in the capital-purchase program, and a $66,000 discount charge, Oak Ridge would have posted net income of $77,000.

The bank's provision for loan losses rose 61 percent to $1.26 million. It had an 8.5 percent increase in revenue from loans to $3.5 million and an 11.9 percent increase in revenue from fees to $1.14 million.

Richard Craver

Furniture Transport picks larger Miss. terminal

Furniture Transport Group said Friday that as part of a restructuring initiative, it has decided to close its Houston, Miss., facility in favor of a larger terminal in Pontotoc, Miss.

The company, based in High Point, is the largest specialty transporter of home furnishings.

Steven Lusty, president and chief executive of the company, said the new terminal is closer to Tupelo, which is the hub of furniture manufacturers based in the area and the host community of a regional furniture market.

The new terminal will contain 68,000 square feet, about 28,000 square feet larger than the Houston facility. Lusty said all of the employees in Houston will transfer to the new terminal.

Richard Craver

'Angry Birds' creator could get investment

Rovio Entertainment Oy, the Finnish creator of the "Angry Birds" mobile-phone game, is in talks to receive funding that would value the company at about $1.2 billion, two people with knowledge of the discussions said.

The Espoo, Finland-based game maker is considering taking a strategic investment from a company in the entertainment business, said the sources, who asked not to be named because the talks are private. The name of the entertainment company couldn't immediately be determined. Rovio has rejected similar offers from large institutional investors.

Rovio may use any new funds to fuel its expansion. The company plans to make an "Angry Birds" movie and open offices outside of Finland, and it is seeking to capitalize on the popularity of its brand in countries such as China, where it aims to sell stuffed animals and clothing in 200 retail stores.

The most likely investors in Rovio include game developers Electronic Arts and Zynga, and media giants News Corp. and Walt Disney Co., said Michael Pachter, managing director of research at Wedbush Securities. These companies could help Rovio reach new audiences, he said.

Bloomberg News

Finning in talks with Caterpillar on assets

Finning International Inc., the world's largest Caterpillar equipment dealer, said Friday that it is in talks to buy certain distribution assets that Caterpillar is looking to shed after an acquisition last month.

Caterpillar, the world's largest maker of construction and mining equipment, closed on July 8 its $8.8 billion purchase of Bucyrus International Inc. It said it plans to sell the company's distribution assets to dealers with mining in their territories.

The sale of the unit is part of the integration of Bucyrus. Caterpillar generally uses dealers to sell its products and provide services to customers; Bucyrus did so predominantly without using a third party.

Caterpillar is nearing the construction and hiring stage for its $426 million plant in Winston-Salem, which is projected to begin production in the first quarter. At full production, the plant will have 392 full-time and 118 contract employees.

From staff and wire reports

Documents in Facebook case not confidential

Dozens of documents found on computers owned by Paul Ceglia, the western New York man who claims he is entitled to part-ownership of Facebook Inc., shouldn't be treated as confidential, a judge ruled.

Ceglia, 38, sued Facebook and co-founder Mark Zuckerberg last year, claiming that a two-page contract Zuckerberg signed in 2003 gave Ceglia half of the company.

Bloomberg News