American Continental to Shift Focus, Cut Staff, Chairman Says

PHOENIX — Phoenix-based American Continental Corp. will change its focus from land development to income-producing properties and cut its work force in half after selling Lincoln Savings & Loan, Chairman Charles H. Keating Jr. said.

Keating told reporters during an informal gathering in his office that the sale of Lincoln Savings to a California investment group is critical to the survival of American Continental.

He denied rumors that his company is on the verge of bankruptcy, although, he said, it has been caught in the recession in Arizona’s construction and real estate industries. American Continental reported a $38-million loss for the third quarter ended Sept. 30; its fourth-quarter financial statement has not been released.

American Continental announced in December an agreement to sell Lincoln Savings, based in Irvine, to an investment group headed by Spencer Scott of Glendale.

Keating said he expects California and federal regulators to approve the sale next month.

“We don’t know how to exist in the savings and loan business today and, therefore, it’s imperative that we get out,” Keating said. “If somebody waits too long to let us do that, why, I wouldn’t bet on our future.”