Business briefs for April 25, 2001

Wednesday, April 25, 2001 | 11:06 a.m.

Shareholder files to increase holdings

The top shareholder of Business Bank of Nevada has made a change-of-control filing with the Federal Reserve to possibly increase his holdings in the bank.

Peter Eliades, who now owns 10.48 percent of the shares of Business Bank after acquiring shares in a private placement, applied to own as much as 15 percent of the company's stock, according to the filing.

Eliades, owner of Yellow-Checker-Star, the city's largest taxi company, became owner of more than 10 percent of the bank's stock after he purchased some of the bank's private placement of 422,644 new shares in January.

Ten percent ownership is the threshhold that requires an investor to disclose his or her ownership intentions with the Fed.

LV computer school sues former consultant

A Las Vegas training school sued to stop its former consultant and a rival from stealing its customers, making defamatory statements about the school and from violating a one-year non-compete agreement.

The Learning Center Inc. sued Michael Healey and what it claims is his new employer, New Horizons Computer Learning Center of Las Vegas, alleging Healey breached an agreement "to not compete in any way with the Learning Center within a 50-mile radius" of the school.

The suit also alleges Healey tried to divert Learning Center customers to New Horizons or other schools.

The suit said Healey, who was hired on Oct. 9 and allegedly terminated on Oct. 27, allegedly made defamatory statements to third parties that claimed the school wasn't a capable business and that it was "behind the times" and "not capable of giving hands on like New Horizons can."

But Healey denied the allegations. "New Horizons is my client, not my employer. I am an area manager for a Las Vegas branch of Intertech, a Cleveland, Ohio-based technology development consultant. I am helping New Horizons to develop a database and improve its technology courses."

"The non-compete agreement means I shouldn't be hired by a competitor, but it doesn't mean I can't do business with a competitor," he said.

Healey also denied making defamatory statements about the school. "The Learning Center is a fine school with fine instructors. I have never spoken to any of its customers."

Robert Wells, president of New Horizons' Las Vegas school, also denied the allegations. "I've never received a customer list or confidential information from the Learning Center."

Moody's downgrades big LV carrier

Moody's Investors Service has downgraded the credit rating of America West Airlines, the second-busiest air carrier serving McCarran International Airport.

The New York-based credit rating company downgraded the airline's senior implied rating from B1 to B2 and its unsecured debt rating from B1 to B3. All classes of unsupported equipment trust certificates were downgraded by one notch.

Moody's acknowledged that the Tempe, Ariz.-based air carrier is well positioned in its Phoenix and Las Vegas markets and has made progress on improving service problems that began in mid-2000. But Moody's said it would be difficult for America West to return to historical levels of profitability in the existing weaker economic environment.

An America West spokeswoman said the action was not a surprise considering the state of the aviation industry.

"The change in rating will not materially impact America West's operational improvement initiatives or its financing plan," said Janice Monahan. "The company remains in good financial condition with $213 million in cash and liquidity at the end of the first quarter, an increase of $18 million since Dec. 31. Long-term debt has been reduced by $233 million or 62 percent since 1995."

America West and most other U.S. airlines have been wrestling with lower earnings and increased fuel and tax burdens. America West last week reported a $12.8 million quarterly loss, 38 cents a share, despite record revenues of $587.5 million.

Moody's also downgraded American Airlines and its parent company, AMR Corp., last week.

Phone book publishers sued

A San Diego graphic design and advertising template maker sued several telephone directory publishers, alleging they infringed on its copyrights when they allegedly illegally reproduced its graphic advertisements in their directories.

Lisa McConnell Inc., doing business as Image One, which said it produces high-end graphic advertisements for customers seeking to advertise through yellow page telephone directories, sued Sprint Communications Co. L.P., Sprint International Communications Corp., R.H. Donnelley Inc., U.S. Telecom Inc. and Yellow Book USA Inc. in U.S. District Court in Las Vegas.

The suit said Image One identified 74 infringing advertisements published in 105 of the defendants' telephone directories from 1995 through 2001, and said the allegedly infringing work "falls well below the quality of the original work" -- causing Image One to lose repeat business as well as new clients.

The defendants could not be reached for comment on the allegations.

Reverse merger will allow LV company to go public

A Las Vegas-based radio network will go public when an Internet music distribution company acquires it.

Paul Lyle, president of Sports Final Network, which operates as Talk America Radio Network in Las Vegas, said Open Door Online Inc., Coventry, R.I., has signed a letter of intent to acquire all shares of the network. Terms of the deal were not disclosed.

Lyle said the transaction, known as a "reverse merger," will enable the network to become a publicly traded entity, 85 percent owned by 31 network shareholders. He said it hasn't been determined what the emerging company would be named.

The network, which syndicates 60 talk show hosts to more than 600 affiliate radio stations in 50 states and Canada, would continue to be based in Las Vegas.

Shoe retailer sues over Vegas exhibit

Fashion designer Etienne Aigner Inc. sued to recover damages from Custom Exhibit Systems Inc. (CES), alleging it breached an agreement when it delivered several days late a custom $266,000 trade show exhibit that allegedly had "serious and dangerous" structural defects.

Edison, N.J.-based Etienne Aigner said it hired Santa Fe Springs, Calif.-based CES in December to produce a two-story trade show exhibit for display at Western Shoe Association trade shows starting with one in Las Vegas in February.

It seeks an order in Clark County District Court to recover the exhibit, which is currently in the possession of a neutral third party, GES Exposition Services Inc.

The ladies shoes and accessories designer said it needs to recover the exhibit so that it may be refurbished by a new vendor for use in future trade shows.

Kenneth Frizzell, CES's attorney, denied the allegations. "They used the exhibit. There were no structural defects."

"This is basically a dispute over how much CES is owed," Frizzell said. "Up to two weeks before the show, Etienne Aigner was still making changes to the exhibit. Since it was too late to order brand new parts, we had an agreement to use existing inventory and replace these with new parts after the February show was over."

Defunct tech firm sued

A landlord sued to recover unpaid rents and other charges from its former tenant, Las Vegas Internet software firm Preference Technologies Inc., after it was evicted in February.

Atrium-SCE LLC, which leased seven offices at 333 N. Rancho Drive to Preference Technologies, formerly known as Stockup.com Inc., sued its former tenant in Clark County District Court, alleging it defaulted on a lease that expires Oct. 31, 2003, when it failed to pay aggregate base monthly rents.

Under the lease, Preference was to pay rents ranging from $36,737 per month to $39,978 per month.

Preference Technologies, which is no longer operating in Las Vegas, could not be reached for comment.