TCR_Public/000112.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 12, 2000, Vol. 4, No. 8


AMERICAN PAD & PAPER: Creditors File Involuntary Petition
COMPLETE MANAGEMENT: Motion to Approve Settlement and Purchase
CRIIMI MAE: Committee Substitutes Navigant for PENTA
FILENE'S BASEMENT: Seeks To Extend Time To Assume/Reject Leases
FOAMEX INTERNATIONAL: Genfina Owns 6.4% of Stock

FRUIT OF THE LOOM: To Sell Some Assets
IMPERIAL HOME: Reports Filing Chapter 11 Bankruptcy
INNOVATIVE GAMING: Stock Exchange With Innovative Gaming
KAMPEN & ASSOCIATES: Hearing For Approval of Disclosure Statement
LATTICE SEMICONDUCTOR: $150 Million Pre-Tax Gain

LOEWEN: Largest Company Filing Bankruptcy in 1999
MCA FINANCIAL: Creditors Cry Conflict of Interest
METROTRANS CORPORATION: Order Approves Employ of Arthur Andersen
MKR HOLDINGS: Stock Holders Report Ownership
NEUROMEDICAL SYSTEMS: Order Approving Disclosure Statement

NOVACARE: Stock Holders Report Ownership
OXFORD HEALTH PLANS: Schneider Appointed as President, COO
PENNCORP: Moody's Places Certain Credit Ratings at Caa3
PENNCORP: Reaches Agreements for Sale of Operating Companies
PENNCORP: S&P Lowers Its Counterparty Credit Rating

PRESLEY COMPANIES: To Change Name; Stock Ticker Symbol
PRIMARY HEALTH: Fourth Amendment to DIP Credit Agreement
RELIANCE GROUP: Moody's Ratings In Review For Possible Downgrade
SABRATEK CORP: Claims Bar Date and Meeting of Creditors
SINGER: Lenders Balk at Investment Banker's Hire Terms

SIZZLER INTERNATIONAL: Metzger Appointed President and CEO
TULTEX: Ends Manufacturing in Martinsville, Virginia


AMERICAN PAD & PAPER: Creditors File Involuntary Petition
Creditors of Dallas-based American Pad & Paper Co. filed an
involuntary chapter 11 case against the company in the District
of Delaware, according to Reuters. Last month American Pad &
Paper announced that it was in the process of negotiating with
lenders and a committee of bondholders about defaults in interest
payments. The company sells its products in the United States and
Canada and its brands include Hammermill and Strathmore. Details
of the filing are not yet available, but six affiliates were
included in the filing. (ABI 11-Jan-00)

COMPLETE MANAGEMENT: Motion to Approve Settlement and Purchase
The debtor, Complete Management, Inc. seeks entry of an order
resolving all disputes between the Purchaser Parties and the CMI
parties, to sever all business relations between them.  The CMI
parties are the debtor, CMINJ, HCC, United, AMR, Brunswick
Surgical Center, PC , Massapequa Medical Associates, PC, Steven,
Kenneth S. Schwartz, MD, Lawrence and Dennis Shields.  the
purchaser parties are comprised of the purchaser, Chouake,
Esther, Emergimed LLC, Cliffside Medical LLC, and ChouakeFLP.  
The agreements have three principle components.  First, they
resolve fully and finally all disputes and terminate all
litigation between the Purchaser Parties and the CMI Parties.  
Second, the Agreements provide for the sale of the assets to the
purchaser.  The assets being sold are essentially all assets of
the medical practice business located at the premises.  The
combined settlement amount and purchase price to be paid by the
Purchaser is $2.3 million, subject to adjustments at closing.  
Third, the CMI parties and the Purchaser parties are severing all
business relationships and terminating all contractual
obligations between them.   

CRIIMI MAE: Committee Substitutes Navigant for PENTA
The Official Committee of unsecured creditors of Criimi Mae
Management, Inc. applies to substitute the employment of Navigant
Consulting, Inc. for PENTA Advisory Services, LLC as the
Management's Committee's accountant and financial consultant.  
PENTA's business operations were purchased by the firm of
Navigant Consulting, Inc. and PENTA is now known as Navigant
Consulting Inc.

FILENE'S BASEMENT: Seeks To Extend Time To Assume/Reject Leases
After the conclusion of the Leasehold Auction, the debtors will
ahve reduced the number of their store leases (from 59 stores) to
14 Filene's Basement stores, the original four Aisle 3 stores,
and the four, new Aisle 3 stores that opened in October, 1999.  
The debtors are currently considering various options with
respect to their business operations, including their Aisle 3
division. It is the debtor's current intention that the remaining
stores will form the basis for a plan of reorganization.  The
debtors request that the court extend the time during which they
may assume or reject unexpired nonresidential real property
leases to the date through which the debtors have the exclusive
right to solicit acceptances of a plan - June 30, 2000.

FOAMEX INTERNATIONAL: Genfina Owns 6.4% of Stock
Genfina S.A., located in Brussels, Belgium, beneficially owns
1,592,671 shares of the common stock of Foamex International
Inc., exercising sole voting and dispositive power.  The shares
held represent 6.4% of the outstanding common stock of Foamex.

FRUIT OF THE LOOM: To Sell Some Assets
Fruit of the Loom bankruptcy attorney Mark Thomas of Katten
Muchin Zavis, Chicago, told about 50 creditor attorneys and
professionals at a meeting yesterday in Wilmington, Del., that
the company plans to sell off some of its businesses, according
to a newswire report.  The company had planned to do this before
filing chapter 11 on Dec. 29, but it did not have the liquidity
to do so.  Financial advisors from Lazard Freres & Co. LLC and Jay
Alix & Associates attended the meeting as well, and said that
it's "premature" to say which assets will be sold.  An attorney
representing HSBC Bank USA Corp. Trust, which holds $250 million
in unsecured notes, asked whether the company would be able to
shed its guaranty to repay a $65 million personal loan made to
former Chairman William Farley in March while he was still CEO.
Thomas said that a number of investors had a "keen interest" in
this subject, but that the loan guaranty was unchanged and that
he was not aware of whether Farley had sought to refinance
the loan privately.  Fruit of the Loom's Delaware attorney, Norman
L. Pernick of Saul, Ewing, Remick & Saul LLP, said there will be
a hearing on Jan. 20 before Bankruptcy Judge Peter Walsh on
whether to grant final approval to Bank of America NA's $625
million debtor-in-possession financing.  Last month he gave
interim approval, allowing Fruit of the Loom to use $275 million
of the package. Pernick also said that the company's financial
schedules, listing in detail the assets, liabilities and all
creditors, will be filed by March 1.  Fruit of the Loom also
announced yesterday that Sir Brian Wolfson has been named
chairman to replace Farley, who left in August after the company
warned of lower-than-expected earnings, Reuters reported.  Wolfson
is chairman of the executive committee of the board and has been
a board member since 1992. (ABI 11-Jan-00)

IMPERIAL HOME: Reports Filing Chapter 11 Bankruptcy
The Imperial Home Decor Group Inc. and its U.S. affiliates filed
voluntary petitions on January 5, 2000 for protection under
chapter 11 of the U.S. Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware. Along with the
holding company, entities included in the filing are: The
Imperial Home Decor Group (US) LLC; its vinyl film subsidiary,
Vernon Plastics, Inc.; Imperial Home Decor Group Holdings LLC,
the principal shareholder of the holding company; and two
additional non-operating subsidiaries, WDP Investments, Inc. and
Marketing Services, Inc.

The company's Canadian operations, The Imperial Home Decor Group
(Canada) ULC, and its operations in the United Kingdom, The
Imperial Home Decor Group (UK) Ltd., were not included in the

The company said that it elected to seek court protection to
develop and implement a financial reorganization. During the
reorganization process, Imperial Home Decor Group (US) LLC,
Vernon Plastics, and all other company units will continue to
operate normally.

"With more than 40% of the North American residential
wallcoverings market, IHDG is the industry leader, and is a
viable company with solid future prospects," said Scott R. Levin,
IHDG's Chief Financial Officer and Acting Chief Executive
Officer. "Our company is profitable on an operating basis before
restructuring and integration costs, but company debt levels
are too high and simply cannot be sustained. When the company was
formed in March 1998, it took on debt levels that assumed
continued sales volume in Russia and Eastern Europe.  Those sales
were not realized due to the dramatic and unexpected economic
downturn that occurred in those markets shortly thereafter. While
our business plan for 2000 is for improved sales and operating
performance at all locations, sales in North America and
local U.K. markets were lower than anticipated in 1998 and 1999.
The end result is that while we have a profitable business, we
have an unsustainable level of debt. Restructuring our debt under
chapter 11 will remedy this situation and enable the company to
build for the future."

Imperial Home Decor Group also announced that the bankruptcy
court granted immediate approval to borrow up to $25 million on
its newly obtained, two-year Debtor-in-Possession (DIP) credit
facility from The Chase Manhattan Bank for up-to-$75 million. A
court hearing to approve the company's use of the balance of
those funds is scheduled for Wednesday, February 2, 2000.

Subject to certain terms and conditions, the DIP financing will
be used for employee salaries and benefits, materials and
services from vendors, customer promotional programs, ongoing
operations and other working capital needs. "We believe our DIP
financing will provide more than ample funds to cover the
company's global financial needs throughout the reorganization
period," said Levin. "Our customers should rest assured that it
is business as usual and our employees should know that their
paychecks and benefits remain fully in effect."

Levin said the company expects to complete its previously
announced North American Integration Plan to reduce costs,
improve operations and increase profitability in the coming year.
"To better serve customers, we repositioned our sales force on
key national accounts, the dealer market, the designer/decorator
and domestics businesses. We introduced new merchandising
programs to major customers, developed numerous award-winning
product designs, and increased licensing programs and
distribution agreements with well-known brands such as Disney,
Warner Bros., Nautica, Eddie Bauer, Thomas Kinkade, Alexander
Julian, and Ralph Lauren," he explained.

Levin also cited a variety of recently accomplished manufacturing
initiatives: "In our Canadian operations, we enhanced management
strength and made significant progress on improving factory cycle
times. In Knoxville, Tennessee, we launched a new finishing
process. We consolidated bookmaking into our Streator, Illinois
facility. And new production planning rules throughout our
factories are increasing customer service levels. Our employees
made these valuable contributions a reality."

Levin went on to say that, under a new managing director, IHDG's
progress in the U.K. includes advancements on a restructuring
plan to reduce costs and improve profitability, and strong
efforts to position IHDG to regain market share. He also said
that Vernon Plastics has had one of its best years ever with
particularly good successes in pool liners, and has identified
key profit improvement initiatives for the coming year.
Levin concluded by saying that, in the coming year, the company
will continue evaluating all of its production facilities on a
worldwide basis to assess further opportunities to improve
efficiencies or reduce costs.

Finally, the company announced that The Imperial Home Decor Group
Inc. board of directors has initiated a search for a replacement
for its former president and chief executive, James P. Toohey,
who has left the company to pursue other interests. Levin has
assumed additional duties as acting chief executive officer.

Imperial Home Decor Group is the world's largest designer,
manufacturer and distributor of residential wallcoverings
products. Headquartered in Cleveland, Ohio, Imperial Home Decor
Group supplies home centers, national chains, mass merchants and
home decorators. The company was created in 1988 through the
merger of Imperial Wallcoverings and Borden Decorative
Products. In 1998, Imperial Home Decor Group reported net sales
of $416.7 million.

INNOVATIVE GAMING: Stock Exchange With Innovative Gaming
Equitex, Inc. and Innovative Gaming Corporation of America
jointly have executed a definitive agreement whereby Innovative
Gaming will acquire Equitex's majority owned subsidiary,
nMortgage, Inc., and its operating subsidiary, First Bankers
Mortgage Services, Inc., in a tax free exchange of stock. Under
the terms of the agreement, the stockholders of Innovative
Gaming will retain 25% of the newly merged company on a post-
merger basis.  As part of the agreement, IGCA must divest its
gaming assets.  Discussions have been initiated with several
gaming manufacturers with the goal of selling the gaming machine
assets intact.

"We are pleased to be moving forward with this transaction which
we believe to be in the best interests of IGCA's shareholders in
realizing maximum value for their holdings," stated Edward G.
Stevenson, Chairman and Chief Executive Officer of IGCA. "As we
have said before, we believe the growth potential offered by a
business such as nMortgage will provide our shareholders a
greater stock appreciation potential."

Closing of the proposed transaction is subject to, among other
things, due diligence, completion of certain additional
documents, obtaining corporate and any necessary regulatory
approvals, approval by the IGCA stockholders, and other customary
pre-closing conditions.

nMortgage, through its operating subsidiary First Bankers, is a
national direct lender headquartered in Ft. Lauderdale, Florida.
The company operates in 25 states and offers both retail and
wholesale mortgage financing. First Bankers is an approved lender
for FNMA, FHLMC, GNMA, FHA and VA. First Bankers recently
announced the debut of its new online mortgage system, nMortgage,
which now offers mortgage loans on line at website address nMortgage's Phase I system enables
consumers to access mortgage loan rates and program, and to apply
online for mortgage loans. nMortgage is currently testing its
Phase II online mortgage system, which will enable customers to
track the status of their loans online as well as offer
interactive online customer service. Upon consummation of the
transaction, IGCA would be renamed nMortgage.

Innovative Gaming Corporation of America through its wholly-owned
subsidiary, Innovative Gaming, Inc., develops, manufactures and
distributes fast playing, high entertainment gaming machines. The
company distributes its products both directly to the gaming
market and through licensed distributors.

Equitex, Inc. is a holding company that currently operates
through its two wholly owned subsidiaries: nMortgage, Inc. of Ft.
Lauderdale, Florida; and First TeleServices Corp. of Atlanta,
Georgia. First TeleServices Corp. is a financial services
marketing company marketing various financial products
targeted to the sub-prime consumer. Equitex currently owns 7.5%
of, and has executed a definitive agreement to merge with, First
TeleBanc Corp., a single bank holding company, which owns net
First National Bank; a 13 year-old nationally chartered bank
based in Boca Raton, Florida. In connection with that
acquisition, Equitex has applied to the Federal Reserve Bank of
Atlanta for approval to become a bank holding company. First
TeleBanc Corp. is not affiliated in any way with TeleBanc
Financial Corporation.

KAMPEN & ASSOCIATES: Hearing For Approval of Disclosure Statement
A hearing for the approval of the Disclosure Statement of Kampen
& Associates, Inc. is set for Friday January 14, 2000 before
Judge Samuel Steiner, US Bankruptcy Court, 1200 Sixth Avenue,
Judges Courtroom, Seattle, WA 98101.

LATTICE SEMICONDUCTOR: $150 Million Pre-Tax Gain
Lattice Semiconductor Corporation will recognize a $150 million
pre-tax ($92 million after-tax) gain in its Statement of
Operations for the first calendar quarter of 2000. The gain
represents appreciation of foundry investments made in two
Taiwanese companies, United Integrated Circuits Corporation and
Utek Corporation. United Integrated Circuits Corporation and Utek
merged with United Microelectronics Corporation, a publicly
traded Taiwanese company. As a result of this merger, Lattice now
owns approximately 61 million shares of United Microelectronics
Corporation common stock. Accounting rules require recognition of
the gain, based on the difference between the cost of the foundry
investments and the current quoted price of the United
Microelectronics shares on the Taiwan Stock Exchange, as "Other
Income" upon completion of the merger.

Due to regulatory restrictions, the majority of the company's
United Microelectronics shares may not be sold until July 2000.
These regulatory restrictions will gradually expire between July
2000 and January 2004. As the regulatory restrictions expire and
if the company liquidates its United Microelectronics shares, it
is likely that the amount of any future realized gain will be
different than the accounting gain reported in the first calendar

"In order to secure process technology and foundry capacity, we
have made regular investments in UICC and Utek since early 1996,"
stated Cyrus Y. Tsui, president and chief executive officer. "The
accounting gain we report today is attributable to the management
of UMC as well as our own sound investment decisions. Going
forward, we do not expect this merger or the market valuation of
our investment to change the fundamental business relationship
between Lattice and UMC," Tsui concluded.

Oregon-based Lattice Semiconductor Corporation designs, develops
and markets the broadest range of high-performance ISP(TM)
programmable logic devices (PLDs).  Lattice introduced ISP
devices to the industry in 1992. Lattice acquired Vantis, the
Corporation that invented the PLD, in June 1999. With double the
engineering and sales resources, the combined company will focus
on developing and delivering innovative programmable products to
a complementary customer base.  Lattice/Vantis products are sold
worldwide through an extensive network of independent sales
representatives and distributors, primarily to OEM customers in
the communication, computing, industrial and military end

LOEWEN: Largest Company Filing Bankruptcy in 1999
The ten largest companies filing for Chapter 11 in 1999 were as

Company                                Assets  (in billions)

Loewen Group Inc.                             $4.674

Iridium LLC                                   $3.789

Harnischfeger Industries, Inc.                $2.787

ICO Global Communications                     $2.567

Sun Healthcare Group, Inc.                    $2.468

FirstPlus Financial Group, Inc.               $2.447

Semi-Tech Corporation                         $2.345

Fruit of the Loom, Inc.                       $2.289

TransAmerican Energy Corp.                    $2.131

Vencor, Inc.                                  $1.718

(Assets are total assets reported in the company's latest annual
report filed prior to the bankruptcy filing.)

Loewen, based in Vancouver, is a funeral home and cemetery
company with operations throughout much of the United States and
Canada.  It grew very rapidly, financing much of that growth with
debt.  The company failed to achieve expected operating
efficiencies and was unable to service its debt. Loewen filed for
Chapter 11 protection in the U.S. Bankruptcy Court in Wilmington,
Delaware on June 1.

Iridium, headquartered in Washington D.C., attempted to launch a
global telephone service based on a network of low-altitude
satellites.   Initial product sales were lower than expected,
apparently because of a number of factors including high cost,
bulky hardware and limits of the service.  The company failed to
meet sales hurdles required by its bank lenders, and it filed for
bankruptcy in Delaware on August 13.  (The case was subsequently
transferred to the Southern District of New York.)

Harnischfeger Industries produces heavy machinery, principally
for the mining and paper industries.  The Wisconsin based company
was hurt by the slowdown in the Asian economies and by aggressive
sales practices.  It filed for Chapter 11 in Delaware on June 7.

ICO Global, like Iridium, is attempting to launch a worldwide
communication network based on satellites.  Similar to the
Iridium situation, ICO's debt load caught up with it before its
service was fully operational. The company filed for Chapter 11
in Delaware on August 27.

Number five, Sun Healthcare, and number ten, Vencor, are both
large nursing home operators.  Both used debt to expand shortly
before changes in government reimbursement policies cut into
their revenues.  Vencor filed for bankruptcy on September 13, and
Sun Healthcare followed on October 14, both in Delaware.

FirstPlus Financial, number six on the list, is a sub-prime
consumer finance company headquartered in Dallas.  Like many sub-
prime lenders, it was battered when its access to the financial
markets dried up during the autumn of 1998, and it never fully
recovered.  FirstPlus filed for bankruptcy protection on March 5
in the Northern District of Texas.

Semi-Tech, a Canadian-based producer of consumer products, owns
50 percent of the Singer Company, the sewing products company
which has also filed for bankruptcy.  Semi-Tech filed for Chapter
11 on September 7 in the Southern District of New York.

Fruit of the Loom, a maker of underwear and other apparel,
suffered from foreign competition, a heavy debt load and
operational problems.  After struggling for much of 1999 the
company filed for Chapter 11 on December 29 in Delaware.

TransAmerican is an energy company with operations in refining,
exploration and production.  It was hampered by construction
delays at its Gulf Coast refinery as well as a high level of
debt, and it was unable to recover from low energy prices at the
beginning of 1999.  TransAmerican filed for bankruptcy on April
20 in Delaware.

George Putnam, III, president of New Generation Research, Inc. in
Boston, which produces, commented, "The sharp
increase in the number of large public bankruptcies in 1999 is
largely attributable to the tremendous issuance of new debt over
the past few years.  We expect the recent growth in bankruptcies
to continue in 2000 even if the economy remains strong. If the
economy softens, the number of large Chapter 11 filings could
increase dramatically."

MCA FINANCIAL: Creditors Cry Conflict of Interest
Sigma Financial Corporation and Jerome S. Rydell, unsecured
creditors of the debtors seeks to disqualify Honigman, Miller,
Schwartz and Cohn as counsel for the Bank Group arising out of a
conflict of interests.  The creditors assert that the Honigman
firm once represented the debtors, and as a result of being in
possession of sensitive information about multiple parties to the
case, the firm may have gained an advantage for the Bank Group by
taking advantage of information regarding one or more other
interested parties and/or the debtors.  The sale to "HCDC", an
entity affiliated with the City of Detroit appears to be
beneficial to the Bank Group and not to the city.  This motion is
brought derivatively, for and on behalf of the debtors.

METROTRANS CORPORATION: Order Approves Employ of Arthur Andersen
By order dated December 30, 1999, the US Bankruptcy Court for the
Northern District of Georgia, Newnan Division entered an order
approving employment of Arthur Andersen, LLP as the debtors'
financial, business, and reorganization consultants.

Previously, the court approved the employment of Lamberth,
Bonapfel, Cifelli & Stokes, PA as counsel.

MKR HOLDINGS: Stock Holders Report Ownership
Ralano Family Partners, Ltd., Bearzo L.C. and Louis M. Alpern
beneficially own 1,459,800 shares of common stock in MKR
Holdings, which amount represents 13.1% of the outstanding shares
of common stock of the company.  Ralano Family Partners exercises
sole voting and dispositive powers over the stock, while Bearzo
L.C. and Dr. Alpern exercise shared powers with Ralano.

Ralano Family Partners, Ltd. is a Texas limited partnership with
its principal office in El Paso, Texas.  Its principal business
is investment. The general partner of Ralano Family Partners,
Ltd. is Bearzo, a Texas limited liability company. Bearzo's
principal business also is investment, with its offices located
in El Paso, Texas.  Bearzo L.C.'s controlling stockholder is
Louis M. Alpern, who also acts as  executive officer and manager
of Bearzo. Bearzo and Dr. Alpern disclaim beneficial ownership of
the shares except to the extent of its or his pecuniary interest

Between May 4, 1999 and January 5, 2000, the Partnership acquired
an aggregate of 200,000 shares for an aggregate purchase price
(excluding commissions) of approximately $42,037.50. The source
of funds for the purchase of such shares was the working capital
of the Partnership.

NEUROMEDICAL SYSTEMS: Order Approving Disclosure Statement
On December 29, 1999, the Honorable Peter J. Walsh entered an
order approving the Disclosure Statement with respect to the
first amended plan of liquidation of Neuromedical Systems, Inc.

A hearing to consider the confirmation of the debtor's first
amended plan of liquidation will be held on January 31, 2000 at
2:30 PM.

Summary of Distribution Under the Plan:

Class 1 - Allowed Administrative Claims - $750,000 allowed -
estimated distribution: $1 per dollar of allowed cliam

Class 2 - Allowed Priority Claims - $4,990 allowed - estimated
distribution: $1 per dollar of allowed claim.

Class 3 - Allowed Secured Claims - Of $10.798 million asserted -
none allowed - estimated distribution $1 per dollar of allowed
claim or the property securing such claim

Class 4 - Allowed Unsecured Convenience Claims - $80,418
asserted, $74,188 allowed - $.90 per dollar of allowed claim

Class 5 - Allowed General Unsecured Claims - Of $193 million
asserted - $11.197 million allowed - estimated distribution: $.77
per dollar of allowed claims ($.278 plus.1039 shares of TriPath
Stock per dollar of Allowed claim)

Class 6 - Equity Interests - 31,100,000 shares - No distribution

NEXAR TECHNOLOGIES: Motion To Convert To Chapter 7
The US Trustee seeks an order converting the case Nexar
Technologies Inc. to one under Chapter 7 of the bankruptcy code.  
The debtor is delinquent in filing reports, paying the IRS,
paying quarterly fees to the US Trustee, and has failed to file a
plan of reorganization in just over a year.

NOVACARE: Stock Holders Report Ownership
LDN Stuyvie Partnership and Stuyvesant Pierrepont Comfort
beneficially own 11,046,955 shares of the common stock of
NovaCare Inc.  The entities exercise sole voting and dispositive
power over the stock which represents 17.4% of the outstanding
common stock of the company.

The Partnership acquired beneficial ownership of 2,586,500 shares
of the securities from the Partnership's limited partners on
September 15, 1999, in exchange for limited partnership interests
of the Partnership. The Partnership acquired beneficial ownership
of the remaining securities (8,460,455 shares) through open
market purchases in the ordinary course of business with a
portion ($3,938,626.97) of the proceeds of cash
contributions to the Partnership by its partners.

OXFORD HEALTH PLANS: Schneider Appointed as President, COO
Oxford Health Plans, Inc., appointed Charles M. Schneider, age
54, as president and chief operating officer (COO) of the
company, effective immediately. With this announcement, Dr.
Norman C. Payson, chairman and chief executive officer (CEO),
also detailed the restructuring of Oxford's senior management

As COO, Schneider will oversee the day-to-day operations of the
company, including health care delivery, sales, information
systems, human resources, claims and services. Dr. Payson will
continue his leadership in strategic matters and relationships,
and will oversee the financial, legal and public policy
activities at Oxford.

"Oxford now is entering a new stage of leadership in the tri-
state metropolitan market and the time is right for us to
reorganize accordingly," Dr. Payson stated. "In my view, Chuck
Schneider is the best operating manager in our industry today.
Our company now is poised to fully benefit from his leadership,
acumen and operating skills.

"Moreover, Chuck and I spent many years working together as a
seamless team. I could not be more enthusiastic," Dr. Payson

Prior to accepting the position with Oxford, Schneider was
president and founder of The Concordant Group, LLC, a management
consulting firm for managed care companies and other health care
providers. He worked with Dr. Payson at HealthSource from 1990-
1997, becoming executive vice president and chief operating

Dr. Payson also announced that Marvin P. Rich, Oxford's chief
administrative officer (CAO) and Thomas A. Beauchamp, chief
information officer (CIO), will be leaving Oxford to pursue other
business opportunities.

"Marv is a world-class turnaround expert and played a critical
role in Oxford's recovery. Tom was important in the successful
completion of our Y2K initiative," Dr. Payson commented. "Having
completed their work here with distinction, we wish them every
success in their next ventures."

Arthur L. Gonzalez, age 48, will become senior vice president and
CIO, effective immediately. He was been with Oxford for the last
18 months and was instrumental in the company's systems progress.

In reflecting back on recent management changes, Dr. Payson also
added, "Bill Sullivan (former president) and Jeff Boyd (former
general counsel) provided us with excellent continuity from
Oxford's earlier successes. And with Marv, they were critical to
the successful turnaround.

"Oxford now is in an outstanding position to move forward with a
highly experienced, close-knit management team. We are ideally
positioned to enhance our leadership position in the greater New
York market," Dr. Payson concluded.

Founded in 1984, Oxford Health Plans provides health plans to
employers in New York, New Jersey and Connecticut, through its
direct sales force and through independent insurance agents and
brokers. Oxford's services include traditional health maintenance
organizations, point-of-service plans, third-party administration
of employer-funded benefit plans and Medicare+Choice plans.

PENNCORP: Moody's Places Certain Credit Ratings at Caa3
Approximately $380 Million of Securities Affected.

New York, January 10, 2000 -- Moody's Investors Service placed
the Caa3 subordinated debt rating of PennCorp Financial Group,
Inc., (PennCorp), and the B2 insurance financial strength rating
of Southwestern Life Insurance Company (Southwestern Life),
PennCorp's wholly owned subsidiary, on review for possible
upgrade. PennCorp's preferred stock rating was confirmed at
"ca". The rating actions follow PennCorp's recent announcement
of: 1) its signing of a definitive agreement with Reassurance
America Life Insurance Company (Reassurance America), a U.S.
subsidiary of Swiss Reinsurance Company of Zurich, Switzerland
(rated Aaa for insurance financial strength), for the sale of
Southwestern Life and another Dallas-based life insurance
subsidiary for $260 million in cash; 2) its recent signing of a
definitive agreement with a new acquisition company formed by
Thoma Cressey Equity Partners for the sale of its Waco-based life
insurance operations for $102 million in cash; 3) PennCorp's
intention to use the proceeds from the two transactions to pay
off all bank debt and subordinated debt; 4) the voluntary
placement of PennCorp in Chapter 11 as a prerequisite for the
Reassurance America transaction. Because both sales agreements
permit PennCorp to consider alternative sale or recapitalization
proposals, rating upgrades will be dependent upon the completion
of both transactions according to the terms described, the rating
agency added. Both transactions are additionally subject to
various regulatory and other approvals, and are expected to close
by the end of the first quarter.

According to the rating agency, the review for the rating of
Southwestern will focus on the position of Southwestern Life
within Reassurance America and the Swiss Re group, the strategic
plan for its future operations, as well as any parent company

PennCorp Financial Group, Inc. is a Delaware-registered insurance
holding company. At September 30, 1999, it reported GAAP assets
of $3.4 billion and shareholders' equity of $287 million.
Southwestern Life Insurance Company is a wholly owned life
insurance subsidiary located in Dallas, Texas. At September 30,
1999, Southwestern Life reported statutory assets of $1.6
billion, and statutory surplus of $132 million.

PENNCORP: Reaches Agreements for Sale of Operating Companies
PennCorp Financial Group, Inc. (NYSE: PFG) announced today that
it has entered into a definitive agreement for the sale of
Southwestern Life Insurance Company and Security Life & Trust
Insurance Company to Reassure America Life Insurance Company, an
indirect U.S. subsidiary of Swiss Reinsurance Company of Zurich,
Switzerland, for $260 million in cash, subject to certain
adjustments. The sale agreement requires that the Company
effectuate the sale through a voluntary Chapter 11 case, subject
to bankruptcy court approval.

The Chapter 11 case will only affect the holding company,
PennCorp Financial Group, Inc., and certain non-insurance company
affiliates.  None of the insurance company subsidiaries will be
included in the case.

The Company, through its subsidiary American-Amicable Holdings
Corp., has also entered into a definitive agreement for the sale
of its Waco, Texas-based insurance operations to a new
acquisition company formed by Thoma Cressey Equity Partners for
$102 million in cash, subject to certain adjustments.  The
Waco-based operations include Pioneer Security Life Insurance
Company, Occidental Life Insurance Company of North Carolina,
American-Amicable Life Insurance Company of Texas and Pioneer
American Insurance Company.

Both sale agreements permit the Company to consider alternative
sale or recapitalization proposals.  In the event alternative
offers are accepted, a transaction termination fee would be paid
to Swiss Re and/or Thoma Cressey. The closing of each sale
transaction is subject to customary conditions including
regulatory approvals.  In addition, the sale of the Waco-based
companies is contingent upon the buyer's receipt of financing
commitments.  The gross proceeds from the sale transactions,
estimated to total approximately $360 million, should provide
full payment of PennCorp's approximately $165 million of bank
debt, approximately $115 million of subordinated debt, and other
unsecured claims.  It is anticipated that any balance would be
distributed to the Company's preferred stockholders, and no
distribution would be made to the Company's common stockholders.

Keith A. Maib, PennCorp President and Chief Executive Officer,
said, "PennCorp intends to move forward with the sales of the
insurance companies expeditiously in order to preserve their
value.  The sale transactions are targeted to close prior to the
end of the first quarter."

"During 1999, as a key component of its restructuring
initiatives, PennCorp completed a series of divestitures as part
of a program to reduce debt, decrease operating costs and seek
solutions to strengthen its balance sheet," Mr. Maib said.  
"After careful evaluation, the board and management determined
that a sale of the core insurance companies is in the best
interests of the Company, including the policyholders of its
insurance subsidiaries.  This course of action will allow us to
maximize the value of the enterprise and ensure the continuing
operations of the core assets, and should provide full payment of
all of the Company's obligations to its creditors."

Mr. Maib also said, "The Company's senior management team has
been communicating regularly with insurance regulators, who have
assured policyholders that each of the insurance companies being
sold has adequate capitalization and sufficient liquidity to meet
their obligations to policyholders.  The Company believes it will
have adequate financial resources to fund operations during the
restructuring period, and the Chapter 11 proceeding will have no
material impact on the insurance subsidiaries and their
policyholders.  We will continue to provide our insurance
products and serve our policyholders as before."

Wasserstein Perella & Co., Inc. acted as financial advisor on the
transactions.  PennCorp Financial Group, Inc. is an insurance
holding company.  Through its subsidiaries, the Company
underwrites and markets life insurance and accident and sickness
insurance to the middle market throughout the United States.

PENNCORP: S&P Lowers Its Counterparty Credit Rating
Standard & Poor's lowered its counterparty credit rating on
PennCorp Financial Group Inc. to double-'C' from triple-'C'-plus
and lowered its subordinated debt rating on PennCorp to double-
'C' from triple-'C'-minus. At the same time, Standard & Poor's
affirmed its single-'C' preferred stock rating on PennCorp. All
ratings for PennCorp have been placed on CreditWatch with
negative implications.

Standard & Poor's placed its double-'B' insurer financial
strength rating on Dallas-based Southwestern Life Insurance Co.
on CreditWatch with positive implications.

The rating actions on PennCorp reflect the company's announcement
today that it intends to file for bankruptcy through Chapter 11
in order to effectuate the sale of certain insurance
subsidiaries. Upon the actual filing of a Chapter 11
petition, all ratings will be lowered to 'D'.

PennCorp has been troubled by a weak financial structure,
including high debt leverage and liquidity strain, throughout
1999. Subject to filing the petition and bankruptcy court
approval, PennCorp intends to sell various operating units,
which could provide full payment of outstanding bank debt,
subordinated debt, and other unsecured claims. Any balance would
likely be distributed to preferred stockholders.

The rating action on Southwestern Life reflects today's
announcement by parent PennCorp Financial Group that it has
reached a definitive sales agreement to sell Southwestern Life to
Reassure America Life Insurance Co., a U.S. subsidiary of Swiss
Reinsurance Co. of Zurich (Insurer financial strength rating

Southwestern Life maintains a good business franchise
complemented by strong operating performance and capital. As of
Sept. 30, 1999, the company's total adjusted capital was $149
million and net income totaled $15.3 million for the
first nine months of 1999. The insurer's rating was lowered in
1998 and 1999, due primarily to the increasingly constrained
financial flexibility caused by the liquidity strain at
PennCorp., Standard & Poor's said.


   PennCorp Financial Group Inc.   TO                FROM

      Counterparty credit rtg      CC                CCC+
      Subordinated debt rtg        CC                CCC-


   PennCorp Financial Group Inc.

      Preferred stock rtg          C


   Southwestern Life Insurance Co.

      Counterparty credit rtg      BB
      Financial strength rtg       BB

PRESLEY COMPANIES: To Change Name; Stock Ticker Symbol
The Presley Companies was to change its name to William Lyon
Homes effective after the close of business on Friday, December
31, 1999.  The company was also to change its stock ticker symbol
from PDC to WLS effective Monday, January 3, 2000. The company's
common stock will continue to trade on the New York Stock

"In November of this year, the company acquired substantially all
of the real estate and related assets of William Lyon Homes,
Inc." stated Wade Cable, president of the company. "We believe
that this name change will allow the company to take advantage of
the strong reputation of the William Lyon name and to reflect the
significant transactions that we have effected in the past year."

The company is one of the oldest and largest homebuilders in the
Southwest with development communities in California, Arizona,
New Mexico and Nevada. Its corporate headquarters are located in
Newport Beach, California.

PRIMARY HEALTH: Fourth Amendment to DIP Credit Agreement
Pursuant to the Credit Agreement, approved in April of 1999, the
Lenders agreed to lend up to $23.294 million to the debtors.  The
terms of the Fourth Amendment to the Credit Agreement, subject to
certain conditions, the Lenders may increase the amount of the
Commitment up to $50 million.  Any borrowing by the debtors above
$40 million is in the discretion of the lenders and there is
provided an increase in the Carve-Out by $2 million for the
professionals retained in the Chapter 11 case.  The debtors' need
for an increase in the Commitment of approximately $10 million
reflects the debtors' additional cash requirements for the
management and operation of their businesses and reorganization
efforts through the Termination Date.

RELIANCE GROUP: Moody's Ratings In Review For Possible Downgrade
Unicover Settlement an Important Consideration in Review

New York, January 10, 2000 -- Moody's Investors Service said
today that the credit ratings of Reliance Group Holdings, Inc.
and its operating subsidiaries remain under review for possible
downgrade. Recently, Reliance announced that it had reached a
settlement with various insurance and reinsurance companies to
resolve issues surrounding its involvement in workers'
compensation business managed by Unicover Managers, Inc. Moody's
placed the ratings of Reliance (senior debt at Ba1 and
subordinated debt at Ba2) under review for possible downgrade in
November, 1999. In addition, the insurance financial strength
ratings of Reliance Insurance Company, Reliance National
Insurance Company, as well as certain other members of the
Reliance Insurance Group were also placed under review for
possible downgrade (present rating of Baa2).

As a result of the settlements, Reliance Group expects to take an
after-tax charge of approximately $100 million in its fourth
quarter financial statements. Reliance's role in the Unicover
program was primarily one of a fronting carrier. That is,
Reliance assumed risk on workers' compensation policies from
primary companies and ceded the majority of the premiums and
losses to its reinsurers (or, retrocessionaires). In order to
comply with statutory guidelines Reliance took a modest amount of
underwriting risk in these transactions.

The announcement of this settlement brings certainty to one of
the areas of risk that Moody's had cited in its review for
possible downgrade. With the anticipated fourth quarter charge,
Reliance has largely removed the issues surrounding a sizable
volume of uncertain reinsurance recoverables as related to
Unicover business. Moody's noted, however, that this charge
represents a sizable premium to pay in order to bring some
measure of closure to its involvement with Unicover business. The
potential costs of not bringing a measure of certainty to its
exposure were, Moody's added, likewise substantial.

Moody's expects to conclude its review of Reliance in a timely
fashion.  Areas that will be evaluated include Reliance's
operations, where Moody's will consider the prospect for
improving core earnings over the near term, and also the extent
to which the group's business opportunities could be constrained
by wavering confidence of policyholders and other key
constituencies. Financially, Moody's will evaluate the company's
many capital raising plans. These include the IPO of the Surety
and internet-based Workers' Compensation businesses, as well as
other strategic alternatives. Moody's judgment about the
prospects for concluding -- and the potential efficacy of --
these options, will be a key focus of the review. All of the
alternatives, Moody's noted, will be viewed with an eye toward
the significant amount of debt maturing in the Spring and Fall of

Reliance Group Holdings, Inc. is a New York-based publicly traded
holding company for several property/casualty insurance
subsidiaries. Through the nine months ending September 30, 1999
Reliance reported revenue of $2.4 billion and a net loss of
$187.5 million. Consolidated debt was $717 million and
shareholder's equity stood at $981 million.

SABRATEK CORP: Claims Bar Date and Meeting of Creditors
In the case of Sabratek Corporation and its affiliates, a meeting
of creditors will take place on February 11, 2000 at 1:00 PM.  
The last date to file proofs of claim is March 10, 2000 at 4:00

SINGER: Lenders Balk at Investment Banker's Hire Terms
Singer Co.'s (SEW) lenders have objected to the proposed terms
governing the company's retention of investment banking firm
Blackstone Group LP, charging they are "unacceptable, overbroad
and financially onerous." The bank group, led by Bank of Nova
Scotia, also asserted in the Jan. 6 objection that Blackstone's
services overlap those of restructuring adviser Arthur
Andersen LLP, which was hired in September.  The Daily Bankruptcy
Review and ABI Copyright c January 11, 2000.

SIZZLER INTERNATIONAL: Metzger Appointed President and CEO
Sizzler International, Inc. has appointed Thomas E. Metzger as
President and Chief Executive Officer of the company's flagship
Sizzler USA unit.

Commenting on his decision to join Sizzler, Mr. Metzger said,
"For many years, Sizzler has been a household name throughout the
country.  The opportunity to participate in the return of the
Sizzler brand to a quality grill concept is very exciting.  As we
move forward, we will implement a number of operating
efficiencies and business development strategies to
further grow the concept."

"When we began this search, we established some very stringent
criteria that a successful candidate would have to meet to become
President of Sizzler USA", said Charles Boppell, President and
CEO of Sizzler USA's parent company Sizzler International.  "The
most important factor in selecting Tom was his track record of
building strong management teams.  Tom also has demonstrated
success in developing and implementing new menu items and
associated operational procedures.  This was important since it
is the heart of Sizzler's turnaround strategy."

Metzger has over 15 years in the restaurant industry, progressing
rapidly through key management and executive positions.  He
started his career at Wendy's International, where he rose from
an entry-level position to Vice-President of Franchise
Operations.  At Cinnabon, he served as Director of Operations and
later was a Partner and COO of a Cinnabon franchise organization.
Metzger later served as Executive Vice-President and COO of the
largest Boston Market franchisee. In 1995, Metzger was appointed
President and CEO of Kenny Rogers Roasters International. Most
recently Metzger was the Founder, President, and CEO of
Wrapsters, Inc, an Atlanta based quick service restaurant

Metzger holds a Masters of Science degree from LaSalle University
in Hotel-Restaurant, and undergraduate degrees in Hotel-
Restaurant and in Marketing from LaSalle University and Owens
College, respectively.

Sizzler International, Inc. operates, franchises or joint
ventures 347 Sizzler restaurants worldwide, in addition to the
101 KFC restaurants in Queensland, Australia.  Sizzler USA is the
wholly-owned operating subsidiary of Sizzler International, which
owns and operates or franchises 266 Sizzler restaurants in the
United States.

TULTEX: Ends Manufacturing in Martinsville, Virginia
Tultex Corporation (NYSE: TTX) announced that it had permanently
ended production at its Martinsville, Virginia, plant. This
action resulted in the elimination of approximately 285
manufacturing positions, effective immediately. In addition,
approximately 160 administrative support and distribution
positions related to local manufacturing and to the operations of
the Company will be eliminated over the next several weeks.

The Company's decision is in addition to previously announced
cutbacks in connection with the Chapter 11 bankruptcy filing on
December 3, 1999.

O. Randolph Rollins, President and Chief Executive Officer, said:
"Sadly, we have ended our long history of production in
Martinsville. But these steps were essential in view of limited
cash availability under our loan agreements, which will not
sustain the build-up of fleece necessary to meet fleece customer
delivery schedules. It is far better to preserve cash and let our
customers know now so they can plan accordingly."

Following these actions, Tultex's remaining businesses will be
its distributors, California Shirt Sales and T-Shirt City, and
its Discus Athletic business.

When the changes announced today are fully implemented, Tultex
will employ approximately 700 persons, which includes
approximately 350 persons at its Martinsville distribution
center. As previously announced, this facility will close and the
related positions will be eliminated by mid-March.

The Company also announced that on January 5, 2000, the United
States Bankruptcy Court for the Western District of Virginia in
Lynchburg approved the Company's request for the use of a $150
million debtor-in-possession financing provided by a bank group
led by Bank of America. The Court granted Tultex Corporation's
request for the financing to permit it to pay necessary operating
expenses and continue its business operations.

Founded in 1937, Tultex has been a leading manufacturer, marketer
and distributor of activewear and licensed sports apparel.

The WellCare Management Group, Inc., parent company of WellCare
of New York, Inc. and WellCare of Connecticut, Inc., has
appointed BDO Seidman, LLP as its new auditors.

Kiran C. Patel, M.D., Chairman, President and Chief Executive
Officer of WellCare, commented, "WellCare is extremely pleased
with its decision to retain BDO Seidman as its auditors. We look
forward to a long-term relationship and using BDO's experience
and support in assisting with the growth of the company."

WellCare's service area extends from New York City to the
southern Adirondacks, west into the Mohawk River Valley and
Southern Tier counties, and east into Connecticut.


Please be advised that the news item following the "TRANSTEXAS
GAS: Jack Stanley's Empire" headline appearing in the December
20, 1999, edition of the TCR, was reprinted without permission
of Platt's Oilgram News, or its owner, The McGraw-Hill Companies.  
You should disregard the news item.  Additionally, any further
distribution of that news item is strictly prohibited without
the express written permission of the The McGraw-Hill Companies.

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.


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