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/raid1/www/Hosts/bankrupt/TCR_Public/000113.MBX T R O U B L E D C O M P A N Y R E P O R T E R Thursday, January 13, 2000, Vol. 4, No. 9 Headlines AIRGAS, INC.: Moody's Places Ratings Under Review For Downgrade AMERICAN PAD & PAPER: Responds to Involuntary Chapter 11 Petition BANK ONE: To Overhaul Credit Card Business BARRY'S JEWELERS: Motion For Final Decree BMJ MEDICAL: Seek To Extend Exclusive Periods FRUIT OF THE LOOM: Names Sir Brian Wolfson Chairman FULCRUM DIRECT: Deadline For Filing Proofs of Claim FULCRUM DIRECT: Sale of Trademark to Kids Stuff, Inc. HARNISCHFEGER: Winning Bids For Beloit HENRY CO: Moody's Downgrades Debt Ratings HOME HEALTH CORP: Seek Additional Time to Assume/Reject Leases ISLEY: Catalog for Sale in Bankruptcy Court LOEWEN: Notice of Proposed Sale of McCracken Funeral Home LONDON FOG: Seeks To Extend Exclusivity LUMENYTE: Files Chapter 11 MONDI OF AMERICA: Bar Date Fixed For February 15, 2000 MONDI OF AMERICA: Seeks Termination Agreements NEWCORS, INC: Moody's Lowers Ratings To Caa1 OPTEL INC: Meeting of Creditors ORANGE COUNTY: Bankruptcy Settlement Nears End PACIFICARE HEALTH: To Lay Off Hundreds of Employees SHOE CORP: Seeks Extension of Exclusivity SKYLYNX: Communications Announces Litigation Developments STORMEDIA: Disclosure Statement Approved/Confirmation Hearing Set TREESOURCE INDUSTRIES: Seek Additional Time For Leases WORLD AUTOMATED: Motion To Convert or Dismiss ******** AIRGAS, INC.: Moody's Places Ratings Under Review For Downgrade --------------------------------------------------------------- Approximately $225 Million of Debt Securities Affected. New York, January 11, 2000 -- Moody's Investors Service placed on review for downgrade, the Baa3 ratings on the senior unsecured long-term debt of Airgas Inc. This action follows Airgas' announcement that it will purchase the Puritan-Bennett gas products division of Mallinckrodt Inc for an undisclosed amount. While this is a modest acquisition for Airgas, the company's balance sheet is already stressed from prior acquisitions and modest share repurchases. In addition, weakness in the markets for hardgoods and safety equipment, combined with Airgas' internal restructuring program, have reduced earnings and cash flow in fiscal 1999 and 2000. On March 11, 1999, the outlook on the company's debt was changed to negative as a result of prior acquisition activity and the initiation of a seven million-share repurchase program. Our review will focus on Airgas' near-term ability to reduce debt and increase coverage and cash flow ratios given the likelihood of additional acquisitions. The review will also weigh the increased leverage against potential benefits; Puritan-Bennett substantially increases Airgas' sales to the healthcare industry and should provide above average profitability due to the high percentage of gas revenues. Headquartered in Radnor, PA, Airgas Inc. is the largest independent distributor of industrial, medical and specialty gases and related equipment in North America. Airgas reported $1.6 billion in sales for fiscal 1999. AMERICAN PAD & PAPER: Responds to Involuntary Chapter 11 Petition ----------------------------------------------------------------- American Pad & Paper Company (OTC BB:AMPP) (AP&P) announced that a group of its bondholders filed a petition yesterday with the United States Bankruptcy Court in Delaware asking the court to place the Company in an involuntary Chapter 11. The Company has 20 days to respond to this petition and is not currently operating in Chapter 11. "While I am disappointed by the action taken, the Company will continue to explore ways to reach a consensual resolution with its banks and bondholders. We are prepared to pursue any alternative to protect the rights of all the Company's stakeholders in response to this bondholder action," said James W. Swent III, Chief Executive Officer of the Company. "The Company is exploring with its bondholders the possibility of having this involuntary petition dismissed. The Company will also consider converting this petition to a voluntary Chapter 11 reorganization if necessary and is confident of arranging alternative financing to ensure the liquidity required to continue to provide quality products and service to our customers. Our bank group has expressed a desire to support the company in the future and we are currently reviewing all our financing alternatives." The Company will continue to work toward the goal of debt reduction through asset sales. Lazard Freres, the Company's financial advisor, has received several indications of interest regarding the Williamhouse division and other business assets. The Company is actively reviewing these inquiries. American Pad & Paper Co., which invented the legal pad in 1888, is a leading manufacturer and marketer of paper-based office products in North America. Product offerings include envelopes, writing pads, file folders, machine papers, greeting cards and other office products. The key operating divisions of the Company are Williamhouse, AMPAD, and Creative Card. Company revenues in 1998 were $662 million, additional information is available on the Company's Website at http://www.americanpad.com. BANK ONE: To Overhaul Credit Card Business ------------------------------------------ BankOne Corp. has announced that it will overhaul its credit card business through a restructuring that will require a $725 million charge against fourth-quarter earnings, according to The Wall Street Journal. The Chicago bank offered a detailed look at what went wrong at First USA, its credit card subsidiary that was at one time the primary source of growth at the fourth-largest bank in the United States. They described the problem as a lack of financial discipline and focus and said the remedy is tighter expense controls, better customer service and tougher profitability requirements for the unit's marketing programs. Although Bank One said its problems are confined to First USA, the restructuring goes beyond the credit card unit to involve some job cuts and consolidation across the company. BARRY'S JEWELERS: Motion For Final Decree ----------------------------------------- Samuels Jewelers Inc., Barry's successor, requests that the court enter an order closing this Chapter 11 case. BMJ MEDICAL: Seek To Extend Exclusive Periods --------------------------------------------- The debtors, BMJ Medical Management Inc. et al. seek to extend the debtors' exclusive period s to propose a plan of reorganization and solicit acceptances thereof. The debtors seek an extension of the plan proposal period through ad including March 15, 2000 and an extension of the Solicitation period through and including May 15, 2000. The debtors contend that the size and complexity of these cases, including the substantial dollars involved, the number of agreements and medical groups involved, recent progress in settlements with Medical Groups and the legal issues presented justify an extension of the exclusive periods. The debtors have submitted a reorganization plan and the debtors request the extension to resolve the pre-confirmation litigation and reach agreement with the Medical Groups regarding assumption and /or rejection of the MSA's. FRUIT OF THE LOOM: Names Sir Brian Wolfson Chairman --------------------------------------------------- Fruit of the Loom Ltd., the troubled underwear maker that filed recently for federal bankruptcy protection, has named Sir Brian Wolfson as chairman in place of long-time company chief William Farley. Wolfson, a member of the company's board of directors since 1992, also is chairman of the board's executive committee. The appointment was announced yesterday. Fruit of the Loom stock closed at 61/4 cents to $1.683/4 a share Monday on the New York Stock Exchange. Less than three years ago it was trading at $44. FULCRUM DIRECT: Deadline For Filing Proofs of Claim --------------------------------------------------- All creditors of the debtors holding claims of any king against any of the debtors that arose on or before the Petition Date are required to file, on or before 4:00 PM on February 7, 2000 a separate, completed and executed proof of claim form against each of the debtors against which the creditor wishes to assert a claim. FULCRUM DIRECT: Sale of Trademark to Kids Stuff, Inc. ----------------------------------------------------- Fulcrum Direct and its affiliates, as debtors, seek entry of an order authorizing and approving the proposed sale by FDI of the trademark "Little Feet" and associated trademarks to Kids Stuff, Inc. for $5,000. HARNISCHFEGER: Winning Bids For Beloit -------------------------------------- Harnischfeger Industries, Inc. announced the results of the auction conducted January 10 and 11, 2000 of assets of Beloit Corporation, the company's the company's pulp and papermaking equipment manufacturing and servicing subsidiary. The company and its U.S. subsidiaries, including Beloit, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code on June 7, 1999. The winning bids are: Pulp and Finishing Divisions: Groupe Laperriere & Verreault Inc. Woodyard Division: RCI Acquisition Inc. (a management buy out group) OASIS: O&OC Acquisition Company, Inc. (a management buy out group) Paper Aftermarket and Roll Covers Division: Valmet Corporation Paper Technology: Mitsubishi Heavy Industries, Inc. A hearing before the Bankruptcy Court to approve the winning bids is set for January 19, 2000. Definitive documents will be filed with the Bankruptcy Court prior to the hearing. In some cases, Government agency approvals are also required to complete the transactions. Robert N. Dangremond, Chief Restructuring Officer for the company and Beloit said, "The auction process is progressing well. We are pleased with our progress to date and will continue to divest or liquidate the Beloit assets that were not committed in the auction this week. We expect the process to be concluded this spring." Mr. Dangremond is directing the Beloit sale process and PricewaterhouseCoopers Securities LLC is acting as Harnischfeger's investment banker to assist in the sale of Beloit. While the company continues to pursue the sale of the Beloit businesses through the Bankruptcy Court approved auction process, there can be no assurance as to whether or when any transaction will take place. Harnischfeger Industries, Inc. is a global company with business segments involved in the manufacture and distribution of equipment for underground mining (Joy Mining Machinery), surface mining (P&H Mining Equipment), and pulp and papermaking (Beloit Corporation). HENRY CO: Moody's Downgrades Debt Ratings ----------------------------------------- Approximately $125 Million of Debt Securities Affected. New York, January 11, 2000 -- Moody's Investors Service downgraded Henry Company's ("Henry") $85 million senior notes, due 2008, to Caa1 from B3, the issuer rating from Caa1 to Caa2, and the $35 million secured bank facility rating to B2 from B1. The senior implied rating is downgraded to B3 from B2, and the outlook is changed to negative from stable. The ratings changes reflect Henry's inability to cover interest; the challenge management faces in continuing to integrate its Monsey Bakor acquisition, and fluctuations in the weather and in raw material prices particularly oil prices. Moody's believes Henry has yet to see the synergies the Monsey Bakor acquisition was supposed to offer, such as national brand impact and lower SG&A costs. These concerns are mitigated by Henry and Monsey Bakor's strong industry position, established brand names and reputation; its long history; multiple distribution channels; and national coverage. In addition, the senior notes are effectively subordinated to all existing and future secured indebtedness and structurally subordinated to all existing and future indebtedness of the company's Canadian subsidiaries. Henry has a $35 million senior secured credit agreement with Nation's Bank, $25 million of which can be used for working capital needs and $10 million may be used for capital expenditures. The credit facility matures on April 22, 2003, and pricing is prime or Libor plus 2.25%. As of December 31, 1999, $0.1 million was outstanding under the revolving line of credit facility, and no outstanding amounts under its expenditure facility. The company also has a Canadian bank line of credit, with interest charged at prime plus 0.5%. At December 31, 1999, $2.5 million of the Canadian credit facility was outstanding. The company has $85 million of senior notes due in 2008. Interest on the notes is payable semi-annually at 10% per annum. The proceeds from the offering were used to retire debt, in the acquisition of Monsey Bakor, and provided additional working capital. The senior notes are guaranteed by all of Henry's U.S. subsidiaries. On October 5, 1999, the company purchased $3.6 million of Henry Company Senior Notes, and is holding these notes as an for investment purposes. Henry's book equity is $2.9 million, but after subtracting goodwill, it is a negative $27 million. Total debt as of September 30, 1999, was $90.6 million. Sales and total assets for nine months were $137 million and $133 million, respectively. Leverage is high, with the ratio of total debt to capitalization equaling 97%, while debt-to-EBITDA is approximately 12 times. Henry has been unable to cover interest payments all year. EBITDA/interest equals 0.8 times as of September 30, 1999, and including Capex, it declined to 0.4 times. Exclusive of continuing operating results interest coverage should improve in year 2000 with approximately $2 million in expenses in 1999 that are not expected going forward that dealt with MIS and integration issues related to the Monsey acquisition. Net sales for the quarter ended September 30, 1999, dropped 3.4% to $54.8, but for the nine month period, there was an increase to $137.5 million from $108 million in the prior year. The increase for the nine month period is mainly due to the acquisition of Monsey Bakor, and the drop in the quarter is a result of below average rainfall in the company's major markets. Net sales to Canada for the nine months 1999 were 16.2% of total net sales. Operating margins fell from 7.4% for the nine months ended September 30, 1998, to 2.2% for the same period in 1999. The decrease can be attributed to lower sales of higher margin products from Henry, amortization of intangible assets, and higher SG&A costs as a result of the acquisition of Monsey Bakor. This increase in SG&A is a result of the bankruptcy of a major customer, expansion in the roofing systems and retailing segments of the business, and expenses associated with the integration of the Monsey Bakor operations. Weather is a large contributing factor to how well Henry performs. Over 70% of Henry's roofing business is derived from the roof repair and replacement market. If the winter months are mild, sales decline. Last years winter and the current winter have been mild and it has been the driest 4th quarter in California in ten years. Moody's expects Henry's fourth quarter performance modest due to the mild weather. Oil is a major raw material used by Henry, and it has increased in price over the past year, which has put pressure on margins. It is expected Henry will initiate price increases on its products in the spring to offset these rising raw material costs. Henry Company, headquartered in Huntington Park, California, is a construction materials company focusing primarily on products for roofing, sealing, and paving applications. HOME HEALTH CORP: Seek Additional Time to Assume/Reject Leases -------------------------------------------------------------- The debtors, Home Health Corporation of America, Inc., et al. seek a court order further extending the time within which the debtors may assume or reject all of their unexpired leases of nonresidential real property. The debtors are parties to a great many leases. In order to make informed decisions whether to assume or reject the leases, the debtors will require additional time and professional assistance to adequately assets the potential value of each of the unexpired leases within the marketplace and the debtors' own operations. the debtors anticipate that they need more time to review and analyze each of the leases. As the plan negotiation and drafting process plays itself out, the debtors will have a better sense as to which of the unexpired leases should be assumed or rejected. ISLEY: Catalog for Sale in Bankruptcy Court ------------------------------------------- Ronald Isley, a member of the Isley Brothers, is in chapter 7 bankruptcy, largely because of an IRS claim of almost $5 million, according to a newswire report. His assets are scheduled to be auctioned off Jan. 18 in bankruptcy court in Los Angeles. Among those assets are a stake in one of the R&B music catalogs that includes the classic "Shout." Attorney Debra Grassgreen of Pachulski, Stang, Ziehl, Young & Jones P.C., who represents Howard Ehrenberg (Sulmeyer, Kupetz, Baumann & Rothman) the trustee who will conduct the sale, said, "This is one of the classic R&B catalogs, and we believe it will have value for many years to come." Other assets for sale include Isley's interest in songs he performed but did not write, such as "This Old Heart of Mine," an 87-foot yacht, and his interest in a $6 million judgment against Michael Bolton. Isley won a copyright infringement suit against Bolton over the song "Love Is a Wonderful Thing." That case is now on appeal in the U.S. 9th Circuit Court of Appeals. Isley is opposing the sale and hopes the bankruptcy court will permit him to work out a deal with the Pullman Group, which invented the Bowie bonds named for rocker David Bowie, under which music assets are pledged to secure bonds and the debt is repaid from the royalty stream. EMI put in an aggregate bid of $1.4 million to acquire Isley's portion of the songwriter's and publisher's rights to the catalog. Under a 1980 agreement, EMI already owns a 50 percent interest in the publishing rights. LOEWEN: Notice of Proposed Sale of McCracken Funeral Home --------------------------------------------------------- Debtor McCracken Funeral Home, Inc. notified the court that it intends to sell substantially all of its assets, including the real property located at 308 East Second Street in Pana, Illinois; accounts receivable; rights under preneed funeral service contracts; goodwill; and licenses and permits to the extent transferrable. The purchasers are current McCracken employees. The total purchase price is $1,200,000.00 in cash. If no objections are filed by the deadline then, pursuant to the Court's August 25, 1999 Order Establishing Procedures for Transactions Involving Certain Miscellaneous Assets, McCracken will be able to consummate the sale without further Court order. (Loewen Bankruptcy News Issue 17; Bankruptcy Creditor's Service Inc.) LONDON FOG: Seeks To Extend Exclusivity --------------------------------------- The debtors request entry of an order extending the exclusive periods for 120 days, to and including May 24, 2000 and July 23, 2000, respectively. The requested extensions will afford the debtors an opportunity to engage in meaningful plan negotiations with the Committee, the Senior Lender and other parties-in-interest. Although that process already has begun, the debtors anticipate that such negotiations may be time-consuming and challenging. LUMENYTE: Files Chapter 11 -------------------------- The Los Angeles Times reports on January 12, 2000 that Lumenyte International Corp., which has its futuristic fiber- optic lighting cable in Las Vegas casinos, museums, high-rises and neighborhood yards, has sought bankruptcy protection to prevent its main creditor from seizing its assets. The Irvine lighting company said Tuesday that it filed a Chapter 11 petition to reorganize its debts after the lender, Imperial Bank, called its loan due, demanded immediate repayment of $ 1.7 million and sought to appoint a receiver over Lumenyte. Lumenyte's bankruptcy filing in Santa Ana listed $ 8.4 million in assets and $ 2.8 million in liabilities, including about $ 1 million to 250 unsecured creditors. MONDI OF AMERICA: Bar Date Fixed For February 15, 2000 ------------------------------------------------------ Certain creditors of the debtors holding claims of any kind against any of the debtors that arose o or before the Petition date are required to file a proof of claim form on or before February 15, 2000, no later than 4:00 PM. MONDI OF AMERICA: Seeks Termination Agreements ---------------------------------------------- The debtors, Mondi Of America, Inc. and its debtor affiliates seek entry of an order authorizing the debtors to enter into lease termination agreements for the following two properties: A certain parcel of Non-residential property located in the Great Mall of the Bay Area, Milpitas, California; and 214 West 39th Street, New York, NY Both termination agreements are subject to higher and better offers. NEWCOR INC: Moody's Lowers Ratings To Caa1 ------------------------------------------ Approximately $175 Million of Debt Securities Affected. New York, January 11, 2000 -- Moody's Investors Service lowered the rating of Newcor Inc.'s $125 million 9.875% senior notes, due 2008, to Caa1 from B3 and lowered the rating of its Senior Unsecured Issuer Rating to B3 from B2. Newcor's bank credit facility ratings have been lowered to B2 from B1 including its $40 million secured revolving credit facility and the $10 million Term Loan due 2003. The senior implied rating has been lowered to B2 from B1. The outlook is stable. The downgrade in ratings reflect concerns regarding Newcor's increasingly high leverage; marginal cash flow coverage of interest; as well as its decline in operating performance. The company's poor financial performance is primarily due to poor operating conditions at two of its Precision Machine Products facilities, its largest operating segment. The deterioration in performance was primarily due to the launch of a new product at one of these locations which has resulted in poor productivity and higher scrap rates than had been originally projected. In addition, the Company continues to incur losses at a second operation due to labor inefficiencies and high scrap rates. (The Precision Machine Products Group generates approximately 70% of Newcor's revenues.) Furthermore, Newcor is vulnerable to customer concentration; the company's top four customers (Detroit Diesel, 31%; Ford, 16%; Deere, 7%;and American Axle & Manufacturing, 12%) comprise approximately 66% of revenues. However, the ratings also consider certain positive factors including Newcor's numerous restructuring efforts including the appointment of a new CEO in late 1998 and a new CFO and several senior plant managers during 1999. The ratings also incorporate the diversification provided by Newcor's three operating segments. Notably, substantial increases in demand in the automotive and heavy truck markets have offset declines in industrial and agricultural markets (particularly Deere & Company), however, the end markets for all operations will remain cyclical and competitive. Management is in the process of improving the infrastructure and systems and believes it has made the necessary adjustments to turn around operating losses at both facilities and successfully complete its new product launch. Newcor expects the turnaround and product launch to be completed in the first quarter of 2000. The B2 ratings on the $50 million of secured credit facilities reflect the benefits and limitations of the collateral package. All Newcor domestic subsidiaries are guarantors of the credit facilities. Obligations under the facilities are secured by a first priority lien on all of Newcor's non-real estate assets, its domestic subsidiaries and the facilities of Rochester Gear, a Newcor subsidiary. In addition to the credit agreement, Rochester Gear has secured debt of $6.1 million (limited obligation refunding revenue bonds) that is collateralized by certain assets and guaranteed by Newcor. The company's credit agreement was amended and currently borrowings are limited to an asset-based calculation. As of September 30, 1999, the company had no outstandings under its $40 million revolving credit and availability of $26 million based on an account receivables borrowing base. The B3 rating of the notes also reflects their contractual subordination to the company's senior debt including the secured credit facilities. The notes are guaranteed on a senior subordinated basis by all Newcor's restricted subsidiaries and the acquired companies. Newcor's debt remains substantial at approximately $139 million, as of September 30, 1999. The balance sheet is highly leveraged with debt-to-book-capitalization of 84% and debt-to-EBITDA of about 8 times. The company's tangible book equity is negative $57 million, due to a significant amount of intangibles at 40% of total assets. Newcor's cash flow is extremely weak with EBITA-to- interest expense coverage of 1.1 times and EBITDA-less- capital expenditures-to-interest expense of .8 times. Newcor's EBITA return on assets has also slipped to a poor 5.4%. Newcor's management team has taken steps to accelerate operational enhancements and expects to report improvements by early 2000. However, unless improvements become evident during 2000, downward pressure on the rating is likely to continue. Newcor, headquartered in Bloomfield Hills, Michigan, is a manufacturer of precision machined components and assemblies for the automotive, medium and heavy truck and agricultural vehicles industries and is a manufacturer of custom rubber and plastic products primarily for the automotive industry. In addition, the company supplies standard and custom machines and systems for the automotive and appliance industries. OPTEL INC: Meeting of Creditors ------------------------------- On October 28, 1999 OpTel, Inc. and its affiliated debtors filed voluntary petitions for relief under Chapter 11. A meeting of creditors pursuant to Section 341 of the Bankruptcy Code is scheduled to take place on February 18, 2000 at 11:00 AM, J. Caleb Boggs Federal Building, 844 King Street, Room 2313, Wilmington, Delaware 19801. ORANGE COUNTY: Bankruptcy Settlement Nears End ---------------------------------------------- A final report on suits stemming from Orange County, Calif.'s 1994 chapter 9 bankruptcy was filed in court on Monday, clearing the way for more than 200 schools, cities and public agencies to recover their shares of about $860 million in settlements as soon as next month, The Los Angeles Times reported. Bankruptcy Judge John J. Ryan scheduled a hearing for Feb. 2 on the report, which details the course of lawsuits and settlements. Judge Ryan must approve the report before the money can be distributed. An attorney for the county said they do not expect any opposition. PACIFICARE HEALTH: To Lay Off Hundreds of Employees --------------------------------------------------- PacifiCare Health Systems Inc. is expected to announce today that it will lay off several hundred workers as part of a cost- reduction plan, The Wall Street Journal reported. Some employees began receiving notice yesterday, said the largest operator of Medicare health maintenance organizations in the country. In September PacifiCare announced a major corporate reorganization into three divisions, partly designed to increase growth in the non-Medicare HMOs and related businesses. Job cuts may affect workers in all of the 11 states where the company operates. SHOE CORP: Seeks Extension of Exclusivity ----------------------------------------- The debtors, Shoe Corporation of America, Inc. seeks an extension to June 8, 2000 of the debtors' exclusive periods within which to file plans of reorganization and further extending to August 7, 2000 the debtors' exclusive right to solicit acceptances thereof. The debtors assert that they, together with the Lenders are in the midst of working through difficult issues surrounding the most appropriate and responsible method to maximize the benefits to be attained from the sale or other disposition of their assets. SKYLYNX: Communications Announces Litigation Developments --------------------------------------------------------- SkyLynx Communications Inc., Denver, a provider of broadband Internet access and enhanced Internet services, announced favorable developments in two significant litigation matters, according to the a newswire report. The company announced that on Jan. 7, the U.S. Bankruptcy Court for the Middle District of Florida entered a final judgment granting the company's motion for summary judgment on all issues, dismissing on the merits of all previously asserted claims in the matter of In re Cable Corporation of America d/b/a Paradise Cable. The court also ordered that SkyLynx could recover any costs of action from the plaintiff, which has filed an appeal from the order. SkyLynx also announced that it has been able to reach a final settlement that will result in the dismissal of all claims in the long-standing dispute between SkyLynx, NST and their respective affiliates. STORMEDIA: Disclosure Statement Approved/Confirmation Hearing Set ----------------------------------------------------------------- On January 5, 2000, The Honorable Arthur S. Weissbrodt entered an order finding that the Disclosure Statement contained adequate information and that the hearing on confirmation of the plan is scheduled for February 1, 2000. TREESOURCE INDUSTRIES: Seek Additional Time To Assume/Reject Leases ----------------------------------------------------------------- The debtors, Treesource Industries, Inc., et al. seek a court order extending the time in which the debtors may assume or reject their unexpired leases of non-residential real property. The debtors seek an extension to the earlier of April 30, 2000 or the effective date of a plan of reorganization which is confirmed by the court. A hearing on approval of the Disclosure Statement is set for February 8, 2000. The debtors assert that if required to assume or reject leases now, it would be premature. WORLD AUTOMATED: Motion To Convert or Dismiss --------------------------------------------- In the case of World Automated Systems Productions Ltd., the US Trustee, Ira Bodenstein moves the court for entry of an order converting the Chapter 11 case to a Chapter 7 or, in the alternative, dismissing the case. The US Trustee believes that the debtor is not operating and has no assets. The US Trustee believes that there is no reasonable likelihood of reorganization in this case. ********* 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, Edem Alfeche and Ronald Ladia, Editors. Copyright 2000. 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. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *