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Byline: - Staff and Wire Reports

Doughnut maker dispute settled

CHARLOTTE, N.C. - Krispy Kreme Doughnuts Inc. and its largest franchise operator have settled their dispute over a decision by the doughnut company to terminate the franchisee's license, which had temporarily barred the firm from selling doughnuts under the famous brand name, both companies said Friday.

On Thursday, Krispy Kreme said it had terminated the license of Great Circle Family Foods LLC, which operates 28 Krispy Kreme locations with nearly 750 employees in Southern California.

Great Circle officials announced Friday that the companies had reached an agreement that ends the dispute. No financial terms were disclosed.

``By this resolution, all franchise agreements are reinstated and the notice of termination is withdrawn,'' the company said in a statement.

Court approves United payment

WASHINGTON - United Airlines won court approval Friday to pay $150 million to settle billions of dollars in claims from aircraft leasers, including Walt Disney Co.

United, a unit of UAL Corp., has said the settlement provides a ``tremendous'' boost to the airline's bid to exit Chapter 11 bankruptcy proceedings early next year.

A bankruptcy judge in Chicago approved the settlement over the objections of United's unsecured creditors. The creditors argued the payment was too generous to Disney and would ``unfairly'' reduce the pool of United assets available to them.

United offered to pay the $150 million to the financiers to compensate them for tax benefits they lost when the airline rejected leases on Boeing jets in its fleet. The payment to Disney, at $50 million, is the largest.

GM is optimistic on cost-cutting

DETROIT - General Motors expects billion-dollar losses at its struggling North American operations to begin to moderate this quarter, as its cost- cutting plan takes effect, GM's chief executive, Rick Wagoner, said Friday.

Speaking in a rare interview with a small group of journalists at GM's headquarters here, Wagoner refused to predict when GM would return to profitability in North America.

But he emphasized that GM had no plans to file for bankruptcy protection. And he said new vehicles, like a restyled group of sport utility vehicles, plus the company's restructuring should begin to show up in GM's results early this year.

``That is my hope, the first quarter,'' Wagoner said.

Five pension fund officials indicted 

SAN DIEGO - A federal grand jury on Friday indicted five current and former San Diego pension fund officials on 20 counts of fraud and conspiracy in an investigation of the city's troubled finances.

Ron Saathoff, Terri Webster and Cathy Lexin - three former trustees on the board overseeing the city's retirement fund - were named in the indictment along with the fund's former administrator, Lawrence B. Grissom, and current general counsel, Loraine Chapin.

The five were accused of concealing information from fellow board members about a crucial 2002 vote that allowed San Diego to escape payments to the retirement fund and, at the same time, enhance pension benefits.