/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/000105.MBX T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, January 5, 2000, Vol. 4, No. 2 Headlines ACME METALS: Committee Taps E&Y Restructuring AMERICAN STANDARD: Poses To Assume Chairman and CEO BENNETT FUNDING: Lafayette Savings Bank Recoups Investment CASMYN CORP: Files Chapter 11 CPX CORPORATION: Steel Partners Owns 14.9% of Stock EAGLE GEOPHYSICAL: EHI and Seitel No Longer Hold Common Stock FACTORY CARD: Seeks Extension of Exclusivity FRUIT OF THE LOOM: Applies To Employ Jay Alix HARNISCHFEGER: Equity Asks To Trade in Debtors' Securities HUMPTY DUMPTY: Potato Chip Co. of Scarborough Files Chapter 11 INSILCO HOLDING: Signs Agreement To Sell Taylor Publishing IRIDIUM: Files Monthly Operating Statements JUST FOR FEET: Meeting of Creditors JUST FOR FEET: Seeks Authority To Reject 7 Unexpired Leases LIGHTHOUSE BUILDING: Homebuilder's Bankruptcy Puts Houses On Hold SABRATEK: Wins Interim Court Approval of DIP Loans STARMET: BDO's Audit Delayed SUN HEALTHCARE: Announces Third Quarter Results SUPERIOR NATIONAL: S&P Says Ratings Remain Watch Dev TELEPAD CORP: January 14, 2000 Set As Bar Date TURBODYNE: Court Approves Sale of Assets of Pacific Baja UNITEL VIDEO: Reports Net Gain For September, 1999 ********* ACME METALS: Committee Taps E&Y Restructuring --------------------------------------------- The Official Committee of Unsecured Creditors of Acme Metals Incorporated, et al., filed an application to approve retention of E&Y Restructuring LLC, ("EYR") nunc pro tunc to October 1, 1999, as financial advisors to the Committee. The professionals and other individuals now employed by EYR were previously employed by E&Y and rendered services to the Committee prior to October 1, 1999 in that capacity. AMERICAN STANDARD: Poses To Assume Chairman and CEO --------------------------------------------------- In a spate of resignation announcements American Standard Companies Inc. announced that Emmanuel A. Kampouris would retire from service on the company's Board of Directors on December 31, 1999. As previously announced, Frederic M. Poses would assume the roles of Chairman and Chief Executive Officer on January 1, 2000. Mr. Kampouris joined American Standard's plumbing products Greek subsidiary in 1966 as General Manager of Manufacturing. He was elected President and Chief Executive Officer in 1989 following the company's management led leveraged buyout and elected Chairman of the Board of Directors in 1993. The company also announced that Horst Hinrichs, Vice Chairman, was retiring as a director at year-end 1999. Mr. Hinrichs joined WABCO, the company's automotive unit, in 1959 in Brussels and held various executive positions prior to his appointment as Senior Vice President and a director in 1991. Additionally, American Standard Companies Inc. announced that Mr. Shigeru Mizushima would retire from service on the company's Board of Directors at year-end 1999. Mr. Mizushima, a business consultant and previously President, Chief Operating Officer and Director of Daido Hoxan Inc., Tokyo, Japan, has served as a director since 1988. In yet another resignation announcement, American Standard Companies Inc. announced that Richard A. Kalaher would resign his position as Vice President, General Counsel and Secretary of the company effective at year-end 1999. Mr. Kalaher joined American Standard in 1994, overseeing the company's global legal, environmental and corporate affairs staff. In 1995, he played an instrumental role in guiding American Standard's reemergence as a publicly traded company. BENNETT FUNDING: Lafayette Savings Bank Recoups Investment ---------------------------------------------------------- LSB Financial Corp., Lafayette Ind., announced that its wholly owned subsidiary, Lafayette Savings Bank (LSB) has received $1.4 million from Bennett Funding Corp. of Syracuse, N.Y., pursuant to a settlement agreement with the trustee in Bennett's bankruptcy case, according to a newswire report. LSB said the recovery closes a long battle against Bennett that began in 1995 when equipment leases sold to 200 financial institutions were called into question after Bennett filed for chapter 11 protection amid allegations of a huge Ponzi scheme. LSB said that its "initial reserve against potential losses in this matter proved to be both accurate and adequate, and with the receipt of these funds we are able to put the matter behind us and focus on consistently providing a good return to shareholders." CASMYN CORP: Files Chapter 11 ----------------------------- BCD News and Comment reports on December 29, 1999 that Casmyn Corp., a public company with about 6,000 shareholders, filed a prepackaged Chapter 11 in mid-December before Judge Arthur M. Greenwald (Bankr. C.D. Cal.). A disclosure statement hearing is scheduled for Jan. 20. "We negotiated a deal pre-petition with an informal committee of the largest creditors," said Richard Wynne of Wynne Spiegel Itkin in Los Angeles, who represents the debtor along with colleagues Chris Combs and Michelle Campbell. "They represent about 90 percent of the unsecured claims and because the unsecured claims come from people who hold preferred stock, they also have equity." The informal committee is represented by Howard Steinberg and Sheri Bluebond of Irell & Manella in Los Angeles. The plan provides for the conversion of the majority of debt into equity. "There is 5 million in undisputed claims and 21 million in contingent claims, held mainly by the committee members, that is being converted into equity," Wynne said. Trade creditors will be paid in full. The company believes that its creditors and shareholders will support the proposed reorganization, which is expected to be completed in early 2000. The company's gold mining operations in Zimbabwe are owned by separate subsidiary companies, which are not a part of the Chapter 11 filing and which will continue to conduct business as usual. The company expects to increase its commitment to its subsidiaries' operations in Zimbabwe subsequent to the reorganization. Among the first day orders was an order to appoint Mark S. Zucker, the new president of the company and the man who is leading the reorganization, as the foreign representative. "He will deal with the Zimbabwe government and the other foreign countries where we have operations so we have someone authorized to deal with them as a representative of the bankruptcy estate," Wynne said. CPX CORPORATION: Steel Partners Owns 14.9% of Stock --------------------------------------------------- Steel Partners II, L.P. beneficially owns 2,180,362 shares of common stock of CPX Corporation, representing 14.9% of the outstanding common stock of the company. Warren Lichtenstein beneficially owns 3,926,862 shares of common stock, representing 26.8% of the outstanding common stock of the company. In each case the stockholders exercise sole voting and dispositive power over the shares owned. The aggregate purchase price of the 2,180,362 shares of common stock owned by Steel Partners II is $477,172.84. The shares of common stock owned by Steel Partners II were acquired with partnership funds. The aggregate purchase price of the 1,746,500 shares of common stock beneficially owned by Warren G. Lichtenstein is $127,098. The shares of common stock beneficially owned by Warren G. Lichtenstein were acquired with personal funds. EAGLE GEOPHYSICAL: EHI and Seitel No Longer Hold Common Stock ------------------------------------------------------------- EHI Holdings, Inc. and Seitel, Inc. no longer hold common stock in Eagle Geophysical Inc. On April 22, 1999, Seitel declared a dividend to its shareholders of all 1,520,000 shares of Eagle's common stock that it beneficially owned. The 1,520,000 shares were distributed on June 10, 1999 to holders of record of the common stock of Seitel on May 18, 1999 at a rate of approximately 0.064 shares of common stock for each share of the common stock of Seitel. Neither Seitel nor EHI currently own, beneficially or of record, any other shares of the common stock of Eagle Geophysical. FACTORY CARD: Seeks Extension of Exclusivity -------------------------------------------- The debtors, Factory Card Outlet Corp. and Factory Card Outlet of America, Ltd., seek an extension of the exclusive periods during which the debtors may file a plan of reorganization and solicit acceptances thereof. The debtors request an extension of the Exclusive Filing Period and the Exclusive Solicitation Period to and including May 18, 2000 and July 17, 2000, respectively. A hearing on the motion will be convened before the Honorable Chief Judge Joseph J. Farnan on January 18, 2000 at 11:00 AM at the US District Court, 844 N. King Street, Wilmington, Delaware 19801. The debtors claim that substantial progress has been made in these cases. Store locations are the cornerstone of their business, and the debtors have not finalized their analysis of their remaining 182 retail locations and the underlying leases relating thereto. Also, the debtors are negotiating a plan with the Creditors' Committee, and they have not yet had time to analyze the holiday season performance, which sales constitute 13% of the debtors' annual revenue. The debtors are also exploring the possibility of raising funds through a private equity or combined equity/subordinated debt financing in order to increase distributions to creditors and equity holders. The debtors recently retained The Avalon Group, Ltd. as investment advisors for the limited purpose of assisting the debtors in obtaining such financing. Also, the debtors claim that the requested 120-day extension of the Exclusive Periods that the debtors are seeking will afford the debtors' new CEO the time within which to familiarize himself with operating, financing and plan issues. FRUIT OF THE LOOM: Applies To Employ Jay Alix --------------------------------------------- Under the terms of an Engagement Letter dated December 9, 1999, the Debtors retained Jay Alix & Associates as their Restructuring Consultants to provide crisis management and turnaround consulting services. By this Application, pursuant to 11 U.S.C. Sec. 327(a), the Debtors sought and obtained authority from Judge Walsh to continue JA&A's engagement. Specifically, JA&A will: (a) review Fruit of the Loom's year 2000 business plan in conjunction with establishing Fruit of the Loom's post-petition cash requirements; (b) advise the Debtors on the sale of nonessential assets; (c) assist the Debtors in improving the quality and relevance of information that is reported about each Debtor both internally and externally; (d) assist the Debtors in providing financial input to Fruit of the Loom's business plan; (e) assist the Debtors in managing their respective cash and in maintaining the Debtors' cash forecasting and control system; (f) assist the Debtors in developing and implementing a plan of reorganization; and (g) render such other financial advisory services as may be agreed upon by JA&A and the Debtors in connection with the foregoing. Prior to the Petition Date, JA&A helped the Debtors develop a strategy for negotiating their DIP Facility and provided other guidance to help the Debtors enter the chapter 11 process as smoothly as possible. JA&A Professionals will charge the Debtors their customary hourly rates: Principals Jack McGregor $550 Jim Bonsall $530 Ted Stenger $530 Al Gordon $500 Senior Associates Douglas Werking $390 Associates $295 to $335 Accountants and Consultants $190 to $225 These hourly billings are subject to a $1,250,000 floor. In addition, the Debtors agree to pay JA&A a contingent $2,500,000 Plan Confirmation Bonus. Ted Stenger, a JA&A Principal, relates that JA&A received a $500,000 retainer prior to the Petition Date. Mr. Stenger is confident that JA&A holds no interest adverse to the Debtors' estates and his firm is disinterested within the meaning of 11 U.S.C. Sec. 101(14). Out of an abundance of caution, Mr. Stenger discloses six relationships about which parties-in-interest should be aware: (a) Jay Alix, a principal in JA&A is also the managing principal of Questor Partners Fund, L.P., and the Questor Partners Fund II, L.P., a $300,000,000 fund and an $855,000,000 fund, respectively, both investing in special situations and underperforming companies; (b) all of the principals of JA&A, including Jay Alix, own general and/or limited partnership interests in one or more of the Funds and their affiliates; (c) Chase Bank, Comerica Bank, National City Bank, GE Capital, CIT and Bankers Trust are limited partners of the Funds; (d) First Chicago, Compuware and GMAC, all creditors of the Debtors, are current JA&A clients in unrelated matters; (e) Ted Stenger is the former CEO and a former board member of Maidenform Worldwide, Inc., a competitor in one of the Debtors' lines of business; and (f) it is possible that certain principals, associates, and employees hold interests in mutual funds or other investment vehicles that may own debt or equity interests in the Debtors. HARNISCHFEGER: Equity Asks To Trade in Debtors' Securities ---------------------------------------------------------- The Official Committee of Equity Security Holders initially consisted of six shareholders of Harnischfeger Industries who were appointed to the Equity Committee by the United States Trustee. One member has since resigned. The five remaining Equity Committee members are Invista Capital Management LLC (an institutional investor) and four individual shareholders: Bernard Feuer, Ephraim Weingarten, Rudolf Rothe, and Frank E. Joyce. Invista, at least, has a potential conflict between its Committee duties and Invista's duties to its investment clients. Invista cannot divulge or profit from confidential information it gains from Equity Committee membership. Yet, if Invista and similar future Committee members are barred from trading in the Debtors' securities, then they cannot adequately serve their investment clients. The Equity Committee asks Judge Walsh to solve this dilemma by ordering that neither Invista, nor any future Committee member who trades securities as a regular part of its business, will violate its Committee duties merely by trading in securities that are covered by Bankruptcy Rule 3001(e): e.g., the Debtors' stock, notes, bonds, and debentures. In return, the Equity Committee will implement a Blocking Device to prevent the misuse of any confidential, non-public information obtained through Committee activities. This Blocking Device applies to so-called "Trading Members" like Invista. It consists of the following procedures. First, the Trading Member's representative on the Equity Committee will execute a declaration that he or she may receive confidential, non-public information and that he or she knows of the Blocking Device and will follow its procedures. Second, the Trading Member's Committee representative will neither directly nor indirectly share any confidential Committee information, or other confidential information concerning the Harnischfeger bankruptcy, with any other employees, representatives, or agents of the Trading Member, including its investment advisory personnel. The Trading Member's Committee representative may, however, share confidential information with designated officials of the Trading Member who are not involved in trading activities or portfolio decisions, including the Trading Member's compliance officer, for the purpose of rendering legal or other compliance advice to the Trading Member's Committee representative. Third, the Trading Member's Committee representative will maintain all files containing information received in connection with or generated from Committee activities in a secured area inaccessible to other employees of the Trading Member. Fourth, the Trading Member will restrict the "electronic flow of information" between its Committee representative and all other employees of the firm. Fifth, the Trading Member's Committee representative will neither directly nor indirectly receive any information concerning his firm's securities trades before the trades are executed. Sixth, the Trading Member's compliance department that is not involved in securities trades or portfolio decisions will review trades to confirm compliance with the Blocking device, and will keep records of the review. Seventh, the Trading Member will disclose to the United States Trustee any decrease or increase in the amount of its holdings of more than $10 million of face amount of debt securities or more than $5 million, as measured by cost, in equity securities. These required disclosures will be made in writing within five business days of the trade or trades aggregating these amounts. Eighth, the Trading Member will provide the United States Trustee with a declaration verifying continued compliance with the Blocking Device. This declaration will be provided every three months from the date the Court approves the Blocking Device. The Trading Member will immediately inform the United States Trustee of "any material breaches" of the Blocking device procedures. (Harnischfeger Bankruptcy News Issue 18; Bankruptcy Creditors' Services Inc.) HUMPTY DUMPTY: Potato Chip Co. of Scarborough Files Chapter 11 -------------------------------------------------------------- Founded more than 50 years ago, Humpty-Dumpty produces about 10 flavors of potato chips for distribution in northern New England. A family-owned company for much of its history, Humpty-Dumpty changed hands twice during the past decade. Turk Thacher and Whitney Smith, former high school buddies who ran companies in suburban Philadelphia, bought Humpty-Dumpty from Keystone Food Products Inc. of Easton, Pa., in 1995. INSILCO HOLDING: Signs Agreement To Sell Taylor Publishing ---------------------------------------------------------- Insilco Holding Co. has signed a definitive agreement for the sale of Taylor Publishing, its specialty publishing business unit, to a newly formed company owned by Castle Harlan Partners III, L.P. for proceeds of $93.48 million subject to adjustments for working capital and other transaction-related costs. The sale, which is expected to be completed the first quarter of 2000, is subject to certain customary conditions including expiration of the applicable waiting period under the Hart-Scott- Rodino Antitrust Act. David A. Kauer, Insilco President and CEO, said, "While Taylor is a fine business unit with solid prospects, the company does not fit with our long-term strategy to pursue growth in our heat exchanger and technologies businesses. As we have previously disclosed, we continue to look for opportunities to reduce our debt and refine our focus on our core business groups. Taylor Publishing has been a part of the Insilco family since the late 1960s and we appreciate the many years of hard-work and dedication provided by the associates at Taylor and wish them the best for the future." Taylor Publishing, headquartered in Dallas Texas, has been a leader in the production of school yearbooks and other commemorative books for more than 60 years. For the year ended December 31, 1998, Taylor had sales of $101 million and employed more than 1,300 associates. Insilco Holding Co., based in suburban Columbus, Ohio, is a diversified manufacturer of industrial components and a supplier of specialty publications. The company's industrial business units serve the automotive, electronics, telecommunications and other industrial markets, and its publishing business serves the school yearbook market. It had revenues in 1998 of $535.6 million. IRIDIUM: Files Monthly Operating Statements ------------------------------------------- On December 23, 1999 the parent and Iridium World Communications Ltd., operating as debtor-in-possession, filed monthly operating statements for the period November 1, 1999 through November 30, 1999 with the United States Bankruptcy Court in the Southern District of New York. Iridium World Communications Ltd. acts as a member of the parent and has no other business. Iridium Operating LLC is a wholly-owned subsidiary of the parent. The business of Operating is to operate the Iridium system and offer Iridium services, which constitutes substantially all of the business of the parent. Capital, Roaming, IP and Facilities are wholly-owned subsidiaries of Iridium Operating LLC. In the month of November 1999 the company showed revenues of $1,277 with net losses of $114,214. JUST FOR FEET: Meeting of Creditors ----------------------------------- A meeting of creditors pursuant to section 341 of the Bankruptcy Code is scheduled for January 14, 2000 at 10:00 AM at the Hotel DuPont, Christina Room, 11th and Market Streets, Wilmington, Delaware, 19801. JUST FOR FEET: Seeks Authority To Reject 7 Unexpired Leases ----------------------------------------------------------- Just For Feet, Inc., et al., debtors, seek court authority to reject 7 unexpired leases of nonresidential real property. Universal Geneva Liquidation has notified the debtors that the closing sales are completed at the seven stores, and the stores have been closed. The debtors retained Keen realty Consulting Inc. to assist them in marketing the leases. Keen has reviewed and analyzed the leases and determined that the leases have no value to a third party. Thus the debtors submit that immediate rejection of the leases is appropriate and in the best interests of their estates and all parties in interest. LIGHTHOUSE BUILDING: Homebuilder's Bankruptcy Puts Houses On Hold ----------------------------------------------------------------- The HERNANDO TIMES reports that on Nov. 16, Lighthouse Building Co. in Spring Hill filed for reorganization in federal Bankruptcy Court, leaving the owners of 81 houses in Hernando, Pasco and Citrus counties wondering when, or if, their homes would ever be built. Subcontractors and suppliers, meanwhile, wondered when, of if, they would ever be paid for work already performed for Lighthouse. Last week, their worst fears were confirmed when the company filed for Chapter 7 bankruptcy, leaving the homeowners and subcontractors to vie for the company's meager remaining assets. Though Bankruptcy Court will now begin sorting out the losses, Lighthouse bankruptcy attorney Joel Treuhaft estimated losses to homeowners, subcontractors and suppliers of about $ 750,000. A number of the homeowners have already retained lawyers and vow that if their losses are not satisfied, they will pursue in civil court the personal assets of Lighthouse president Steve Bultema, who has already stated that some company money was used to help build his new home in Tennessee, according to his attorney, Chuck Kalogianis. He claimed that the money was repayment of a loan he made to the company. In addition to civil concerns, 24 people filed criminal complaints with the Hernando County Sheriff's Office against Lighthouse and Bultema, alleging fraud and forgery. It is an inglorious end for the 10-year-old family business. Lighthouse attorneys offered several reasons for the company's demise: poor management; selling homes below market value; growing too big, too fast; and siphoning off too much money in salary and bonuses for Bultema and his brother-in-law, Rickey Jung, who was the company's vice president. When the company filed Chapter 11 on Nov. 16, Treuhaft outlined a reorganization plan he said would result in subcontractors and suppliers getting paid and homeowners into their new houses, albeit months or even a year late. The Chapter 7 filing last week put an end to the reorganization plan, and the firm is now in the midst of liquidating assets. SABRATEK: Wins Interim Court Approval of DIP Loans -------------------------------------------------- On Dec. 22, Sabratek Corp. (SBTKE) won interim court approval to utilize as much as $7.1 million in post-petition funds provided by two potential purchasers of the company's and its bankrupt affiliate's assets. In the first of three orders, U.S. Bankruptcy Judge Mary F. Walrath approved the company's request to borrow up to $3.5 million under a $6 million post-petition financing agreement with Baxter Healthcare Corp. (BAX). (The Daily Bankruptcy Review, Copyright c January 4, 2000) STARMET: BDO's Audit Delayed ---------------------------- On September 14, 1999, Starmet Corportion dismissed Arthur Andersen LLP as its independent public accountants and appointed BDO Seidman, LLP as its new independent public accountants. In connection with BDO's audit of the company's financial statements for the year ended September 30, 1999, BDO required access to certain of the work papers prepared by Arthur Andersen LLP in connection with prior years' audits. Starmet was unable to arrange for BDO to have access to the Andersen work papers until December 20, 1999. As a result, the completion of BDO's audit of the company's financial statements was delayed. Because of the necessity to involve management in the negotiations regarding access to the Andersen papers and the delay in receipt of the audited financial information, the company was not able to devote sufficient management resources and did not have all the required information to timely prepare and file its annual report for the year ended September 30, 1999. SUN HEALTHCARE: Announces Third Quarter Results ----------------------------------------------- December 7, 1999 -- Sun Healthcare Group, Inc. (OTC Bulletin Board: SHGE) announced results for the third quarter ended Sept. 30, 1999. The net loss for the period before certain charges was $157.4 million, or $2.65 per share. Accounting for the charges resulted in a loss for the quarter of $236.9 million or $3.99 per share. For the third quarter ended Sept. 30, 1999, Sun reported net revenues of $629.6 million, compared to net revenues of $814.4 million for the third quarter ended Sept. 30, 1998. For the nine months ended Sept. 30, 1999, Sun's net revenues were $1.904 billion, compared to net revenues of $2.308 billion for the nine months ended Sept. 30, 1998. The third quarter charges and adjustments include: -- A non-cash impairment charge of $14.9 million primarily related to the goodwill associated with the company's therapy equipment manufacturing subsidiary. In October 1999, the company decided to close that operation. -- A non-cash charge of $28.4 million for a loss anticipated in connection with the disposition of certain company assets, including a charge for the anticipated and/or completed termination of certain facility lease arrangements. -- A $29.1 million charge to revenues primarily for certain changes in accounting reserves for estimates for third-party settlements. This charge includes reserves of certain receivables for exceptions to the Medicare-established routine cost limitation. -- A special charge of $7.0 million primarily for professional fees related to the company's activities in preparation for its filing for protection under chapter 11 of the U.S. Bankruptcy Code. On Oct. 14, 1999, Sun Healthcare Group, Inc. and its U.S. operating subsidiaries filed voluntary petitions with the U.S. Bankruptcy Court for the district of Delaware, in order to restructure the company's debt obligations. The company is currently operating its business as a debtor-in-possession subject to the jurisdiction of the Bankruptcy Court. The company and its principal lenders continue to discuss the terms of an overall financial restructuring. A more detailed discussion of these issues is included in the company's Form 10-Q filing with the Securities and Exchange Commission for the period. A full-text copy of that Form 10-Q is available via the Internet at: http://www.sec.gov/Archives/edgar/data/904978/0000904978-99- 000067.txt SUPERIOR NATIONAL: S&P Says Ratings Remain Watch Dev ---------------------------------------------------- Standard & Poor's announced today that its ratings (see list) on Superior National Insurance Group Inc. (Superior) and its related entity, Superior National Insurance Co., remain on CreditWatch with developing implications, where they were placed on Nov. 22, 1999. Today's comment follows the company's announcement that it has reached an agreement with Inter-Ocean Reinsurance Co. Ltd. and American Re-Insurance Co. to settle a contract dispute relating to $175 million of reinsurance recoverables. The ratings were placed on CreditWatch based on the company's reported third-quarter operating loss, reserve strengthening charge, deteriorating capital adequacy, and strained liquidity. Problems with liquidity were mainly attributed to the California Department of Insurance's decision to withhold the release of excess deposits because of uncertainty relating to the litigation between Superior and Inter-Ocean Reinsurance Co. Standard & Poor's recognizes that the settlement provides many benefits to the company including improved liquidity and possibly decreased regulatory scrutiny. However, various issues remain unsettled at this point regarding adequacy of existing reserves and capitalization, quality of intangible assets, and ability of Superior to retain and generate new business in light of recent problems. If the various issues are not adequately resolved, a downgrade could still occur. If the issues are favorably resolved and sufficient capital is infused into the company, an upgrade could result. However, if the ratings are raised, they would likely remain in the insecure range until Superior can demonstrate that it has a long-term business position, Standard & Poor's said. -- CreditWire OUTSTANDING RATINGS THAT REMAIN ON CREDITWATCH WITH DEVELOPING IMPLICATIONS Superior National Insurance Group Inc. Counterparty credit rating CCC+ Superior National Insurance Co. Counterparty credit rating B+ Financial strength rating B+ SOURCE Standard & Poor's Ratings Services TELEPAD CORP: January 14, 2000 Set As Bar Date ---------------------------------------------- BCD News and Comment reports on December 29, 1999 the modified amended plan of reorganization of Telepad Corp. dated Oct. 8, 1999, was approved Oct. 8 in Delaware, only 37 days after the appointment of Chapter 11 Trustee Kurt F. Gwynee, who proposed the plan. The trustee filed a disclosure statement and plan Sept. 15. The plan was later modified to reflect agreements between Telepad and its secured lenders. The modified plan provides for payment in full of allowed claims entitled to priority under the Code. The plan contemplates a pro rata payment of remaining proceeds to holders of allowed non-priority, unsecured claims. However, the plan specifically extinguishes all legal and other interests of the holders of the company's common stock, preferred stock and redeemable warrants effective as of Nov. 7, 1999. The court has set Jan. 14, 2000, as the bar date for filing pre- petition claims and post-petition administrative expense claims against the estate. TURBODYNE: Court Approves Sale of Assets of Pacific Baja -------------------------------------------------------- Turbodyne Technologies Inc. (EASDAQ:TRBD) today reported that on Dec. 14, 1999, the Bankruptcy Court entered an order approving the sale of substantially all of the assets of Pacific Baja Light Metals Corp. ("PBLM"), debtor in a pending Chapter 11 case, to Hawthorne Partners II LLC or its assignee ("Hawthorne"). The order required the sale to close on or before Dec. 31, 1999. The order also authorized Hawthorne to take control of PBLM's operations as of Dec. 13, 1999. While the decision for the sale has been made binding, the financial details are in the process of being finalized. Turbodyne Technologies Inc., a California-based high-technology company, specializes in the development, manufacture and marketing of proprietary pollution control, fuel economy and performance enhancement products for internal combustion engines in the global automotive, transportation, construction, marine, mining and military industries. Turbodyne Technologies Inc.'s headquarters and plant are located in Carpinteria; additional offices are located in Syosset, N.Y.; Paris; and Frankfurt, Germany. Turbodyne's World Wide Web address is: www.turbodyne.com UNITEL VIDEO: Reports Net Gain For September, 1999 -------------------------------------------------- On December 16, 1999, Unitel Video, Inc. filed unaudited monthly operating reports for the months ended September 30 and October 31, 1999 with the United States Bankruptcy Court for the District of Delaware, in connection with the company's and its domestic subsidiaries cases under chapter 11 of title 11 of the United States Code. For the month of September 1999, the company had revenues of $2,365,691 and net gain for the month of $100,741. However, for the month of October 1999, the company had revenues of $2,134,301 while experiencing net losses of $355,177. ********* A listing of Meetings, Conferences and Seminars appears each Tuesday in the TCR. Bond pricing, appearing each Friday, is supplied by DLS Capital Partners, Dallas, Texas. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter, co- published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler, Marlen O. Del Mar and Ronald Ladia, Editors. Copyright 1999. All rights reserved. ISSN 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. 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