Business briefs for May 30, 2002

Thursday, May 30, 2002 | 11:04 a.m.

EEOC alleges discrimination

AUSTIN, Texas -- Cox Communications Inc. of Atlanta, the fifth-largest U.S. cable-television company, is being sued by the Equal Employment Opportunity Commission for allegedly creating a hostile work environment for Hispanic employees at a Texas office.

The lawsuit also charges that Cox retaliated against workers who complained about discrimination, the EEOC said in a statement. The agency filed the suit in U.S. District Court in Austin, Texas.

The complaint claims that Hispanic employees at Cox's Georgetown, Texas, office "suffered repeated slurs, threats and derogatory insults" because of their national origin.

The suit seeks back pay, compensatory and punitive damages and asks that Cox provide equal employment and a non-hostile work environment for all workers.

Cox spokeswoman Amy Cohn wouldn't comment, saying the company hasn't read the suit.

Cox is the main cable television company in Las Vegas.

Airline CEO leaving

MINNEAPOLIS -- David Banmiller, who has led Sun Country Airlines through an abrupt shutdown, bankruptcy restructuring and change of owner in recent months, said Wednesday he'll leave his post at week's end.

Sun Country hired Banmiller as its chief executive officer in April 2001 to revive its sagging fortunes. But when air travel halted after Sept. 11, the company's losses mounted. Sun Country halted scheduled flights and laid off nearly 1,000 people in December.

The airline now offers a limited schedule, including service arranged with casinos in Laughlin, Nev.

A group led by retired Burnsville attorney Robert Daly bought Sun Country's main assets in the restructuring. Daly, now the airline's chairman, and Jay Salmen, its new president, will look for a new CEO.

Banmiller said he'll remain a consultant to the airline. He has spent more than 35 years in the industry, serving as CEO of Pan Am, president of AirCal and a vice president at American Airlines.

Energy company cutting costs

HOUSTON -- El Paso Corp. is cutting its trading staff by about half, as it seeks to reduce its dealings in the embattled energy trading sector, which has come under intense scrutiny for possible sham trades.

The Houston-based company said Wednesday it will increase investment in its core natural gas businesses and sell off other assets. El Paso hopes to cut costs by at least $300 million in the process. But the moves also will sharply cut into earnings.

The company did not say how many jobs would be affected, and officials did not immediately return calls. Reducing trading personnel by about 50 percent, the company said in a prepared statement, would help achieve $150 million in annualized cost savings.

The announcement comes amid turmoil in the energy trading sector as federal regulators probe simultaneous power swaps between energy traders that artificially boosted trading volume and, in some cases, added to revenue.

Vegas dealer bankrupt

Certified Auto Retailers of Las Vegas filed for Chapter 11 bankruptcy protection Tuesday after it was sued Friday by creditor Wells Fargo Bank for allegedly defaulting on a $1.9 million loan.

Wells Fargo, which said the $1.9 million loan was collaterized against the dealer's used car inventory and accounts, won a temporary restraining order on Friday to stop Certified Auto and its owners Stephen and Marisa Ptak from disposing of about 80 of 150 used vehicles they had allegedly removed from their premises.

The bank sued Certified Auto and the Ptaks in Clark County District Court on Friday, alleging they defaulted on loan payments and failed to timely account for car sales. The defendants were also accused of failing to provide documents identifying the location and status of the 80 vehicles and failing to allow a bank representative to inspect the used car inventory and company accounts.

A hearing on the bank's motion for preliminary injunction is scheduled June 7.

John McMillan, Certified Auto's attorney, could not be reached for comment on the lawsuit and the company's bankruptcy filing.