WASHINGTON — The two chief owners of United Press International agreed during all-night negotiations to relinquish the bulk of their stock in a plan to rescue the wire service from deep debts, UPI announced today.
A company statement also said owners Douglas Ruhe and William Geissler agreed to return operating control of the company immediately to Luis Nogales, whom they fired as president Sunday in a dispute over UPI's restructuring.
Nogales also will assume the titles of UPI board chairman and chief executive officer, it said.
The president of the employees union, William Morrissey, UPI Editor-in-Chief Maxwell McCrohon and Ruhe will join Nogales on a four-member board of directors.
Nogales and his management team will promptly ask major creditors to accept a large piece of Ruhe's and Geissler's stock in return for forgiving most of UPI's $17 million in debts.