TCR_Public/000218.MBX     T R O U B L E D   C O M P A N Y   R E P O R T E R

      Friday, February 18, 2000, Vol. 4, No. 35

ABCO: Peerless Acquires ABCO Industries' Assets
AMERICAN LAMINATES: Files Chapter 11 Petition
BIG SMITH BRANDS: Order Authorizes Committee Counsel
BOSTON CHICKEN: Stockholders form Independent Committee
CHARTER BEHAVIORAL: Magellan Comments on Sale

CHARTER BEHAVIORAL: To Sell Assets Through Bankruptcy
EAGLE GEOPHYSICAL: Hearing To Consider Confirmation of Plan
GUY'S: Judge OKs Plan To Fund Payroll
HARVARD INDUSTRIES: Announces Sales and EBITDA For Quarter
IMPERIAL HOME DECOR: Seeks To Retain Deloitte & Touche

INCOMNET: Joint Chapter 11 Plan
INCOMNET: Seeks Extension of DIP Financing
IRIDIUM: Conflicting Reports About Japanese Company's Interest
MEDPARTNERS PROVIDER: First Amended Chapter 11 Plan
MONDI OF AMERICA: Seeks Approval of Lease Termination Agreements

NATIONAL HEALTH & SAFETY: First Amended Disclosure Statement
PARACELSUS HEALTHCARE: Moody's Says Outlook is Bleak
PHYSICIAN COMPUTER: Summary of Second Modified Joint Plan
PREMIER SALONS: Seeks Authority to Employ and Retain PwC
PRIMARY HEALTH: Seeks Extension of Exclusivity

PRINCETON HOSPITAL: Court Approves Accountants
RHYTHMS NETCONNECTIONS: Affirms CCC-Plus Senior Unsecured Debt
SINGER: Claims Bar Date
THIS END UP: Announces Chapter 11 Filings

BOND PRICING FOR WEEK OF February 14, 2000


ABCO: Peerless Acquires ABCO Industries' Assets
On February 16, 2000, the United States Bankruptcy Court in
Lubbock, Texas approved the sale of substantially all the assets
of ABCO Industries, Inc. to a wholly owned subsidiary of Peerless
Mfg. Co.  (Nasdaq: PMFG).  ABCO Industries, which is in Chapter
11 bankruptcy, is a manufacturer of packaged boilers for
industrial use located in Abilene, Texas.  Peerless Mfg. Co. is a
designer and manufacturer of environmental protection equipment
and separation and filtration equipment used in the electric
utility, petroleum, natural gas and petrochemical industries.
ABCO reported $23 million in sales for 1997 and $16.5 million for
1998.  ABCO sales for 1999 were not disclosed.  The parties
intend to close the asset sale in the next several weeks.

AMERICAN LAMINATES: Files Chapter 11 Petition
According to a report in The Kansas City Star on February 15,
2000, American Laminates Inc., a Kansas City, Kan.-based fixtures
and countertop manufacturer, filed for Chapter 11 protection
Friday, apparently after running into difficulties with its
principal lender.

Documents filed with the bankruptcy petition show that Wells
Fargo is owed $2.5 million.
According to the report, the company's bankruptcy attorney, John
Lewis Jr. of Levy & Craig, said Lewis said, American Laminates
had obtained a $350,000 line of credit from its main lender,
enabling it to continue operating.

The closely held company was founded 30 years ago and is owned by
members of the Barksdale family. Credit records show that the
company had as many as 170 employees a couple of years ago and
sales of between $10 million and $20 million annually.

The company makes display and storage products, custom-made
countertops and other store fixtures.

In addition to Wells Fargo, creditors of the company and the
amount American Laminates says it owes them include Rugby
Building Products in Kansas City, $441,652; Pyramid Products in
Kansas City, $87,480; Case Supply Inc. in Kansas City, $80,574;
and the Unified Government of Wyandotte County and Kansas City,
Kan., $77,248.

BIG SMITH BRANDS: Order Authorizes Committee Counsel
The US Bankruptcy Court for the Southern District of Florida
entered an order on February 3, 2000 granting the Official
Committee of Unsecured Creditors of Big Smith Brands, Inc.
authority to employ Brian K. Gart and Greenberg Traurig, PA as
its counsel.

BOSTON CHICKEN: Stockholders form Independent Committee
Stockholders of Boston Chicken Inc., listed on the National
Quotation Board under the symbol BOSTQ, Golden, Colorado, are
joining together to form an independent stockholders committee.
The committee will promote the interests of the stockholders
during the company's current chapter 11 reorganization

The committee has created a web site at to
distribute information and assist with stockholder registration.

"We feel that the Boston Chicken/Boston Market(R) concept has
great potential and we want to be involved as that potential is
fully realized," said committee spokesperson Neal Nelson.

Stockholders that do not have access to the world wide web may
contact the committee spokesperson directly at:  Neal Nelson &
Associates, 330 North Wabash, Chicago, Illinois 60611, Phone:
312-755-1000, Fax: 312-755-1010.

This stockholder committee is totally independent and is not
sponsored by, associated with or endorsed by Boston Chicken,
Inc., any of its officers or affiliated companies.

Boston Chicken and Boston Market are trademarks of Boston
Chicken, Inc. Golden, Colorado.

CHARTER BEHAVIORAL: Magellan Comments on Sale
Magellan Health Services, Inc., (NYSE:MGL) issued the following
statement in response to the bankruptcy filing by Charter
Behavioral Health Systems:

"While Magellan Health Services holds a 10 percent stake in
Charter Behavioral Health Systems, it is important to emphasize
that Magellan's financial statements reflect no book value
related to such investment and we anticipate no material
financial or operational impact on Magellan as a result
of this event.

"Nonetheless, we are following the news of the bankruptcy to
ensure no disruption to services to our members.  Charter
facilities represent a small part of the provider network serving
Magellan Behavioral Health's managed care members. As standard
practice, Magellan staff monitor the progress and medical
needs of members being treated in any behavioral health facility
to see that each and every patient receives quality care. Since
psychiatric facilities may have difficulties from time to time,
we have standard procedures in place to address the needs of
patients when these circumstances occur. Magellan staff work
closely with the medical and administrative leadership of any
facility to continue care for members with no disruption.

"As part of this standard practice, Magellan Behavioral Health's
local management have been working with affected Charter
facilities in their regions to make treatment arrangements that
meet the individual needs of patients who may be affected. We are
very confident of our ability to serve members through other
providers, should that be necessary.

"We anticipate that we will continue to use Charter facilities as
they continue to demonstrate that they can provide quality care
to patients. We are hopeful and confident that Charter's planned
reorganization will achieve their goal of being a strengthened
organization and provider."

CHARTER BEHAVIORAL: To Sell Assets Through Bankruptcy
Charter Behavioral Health Systems, LLC  announced that in
order to ensure continued services to patients in its core
facilities, the company has filed for a voluntary Chapter 11
reorganization under which it intends to sell its core business
in the Delaware Bankruptcy Court.

Charter, which recently announced the closure of 33 of its
facilities, said that, after a thorough analysis of all options
to enhance profitability in operations, it concluded that the
only alternative was to seek a buyer for its core business as
part of its overall plan to reorganize its operations at these
facilities.  The core business consists of the operating assets
which reside with Charter's 37 hospitals that are currently open
and admitting patients.  The sale will be achieved through a
Chapter 11 bankruptcy.  The sale is subject to court approval and
is expected to be the subject of a bankruptcy bidding process
in Delaware.  COPI Healthcare, a wholly owned subsidiary of
Crescent Operating, Inc. (Nasdaq: COPI) ("COPI"), has entered
into an agreement with Charter to purchase the core business.

Although Charter is unable to fully fund all benefits to its
staff who were the subject of the pre-petition closures and
layoffs, the budget for the bankruptcy case does provide for full
salary and benefits to all who are employed by the ongoing core

Charter has secured confirmation of its existing credit facility
through the sale process. Charter noted that it has sufficient
cash on hand for it to continue normal operations.  The budget
for the bankruptcy provides for current payment of all post-
petition interest to the banks, rent to the landlord for the
core facilities and all invoices for goods and services delivered
after the filing.

Charter said that its Chapter 11 filing would not affect the
quality of Charter's clinical programs and operations, and the
payment of employee salaries, wages and benefits for employees at
core facilities.  Charter will continue to operate its remaining
37 facilities on a business as usual basis and there will be no
disruption of care for the over 2,000 inpatients and thousands
of outpatients currently being cared for daily by Charter.

Charter has authorized Crescent Real Estate Equities Company and
its affiliates (NYSE: CEI) ("Crescent"), the landlord and owner
of the healthcare facilities, to continue to market and sell the
closed health care properties which are subject to the master
lease with Crescent.  Crescent has also indicated a willingness
to lease the real estate comprising the core facilities
to a new purchaser of such facilities.

As part of the operational restructuring previously announced on
January 27, 2000, Charter closed or consolidated 33 behavioral
health facilities throughout the country in addition to a
corporate office reduction in overhead and staff. The operational
restructuring left Charter with 37 operating health facilities
and approximately 5,000 employees on a full-time equivalent
basis.  Charter will continue to remain the largest private
provider of behavioral health services nationwide.

"Today's action is a critical step in allowing our core business
to continue to develop and provide innovative programs and
services and lead the industry in meeting the changing needs in
behavioral health care," stated Mike French, president and CEO of
Charter.  He further added, "These decisions have been very
difficult as they have resulted in the loss of jobs for some of
our staff and the loss of care to some of the communities that we
have served for many years."

In September 1999, Charter completed an ownership transaction in
which Magellan Health Services (NYSE: MGL) transferred its
remaining hospital-based assets to Charter and Crescent
Operating, Inc. increased to 90% its economic interest in

Charter Behavioral Health Systems is the largest private provider
of behavioral health care services with 37 facilities in 21

EAGLE GEOPHYSICAL: Hearing To Consider Confirmation of Plan
On March 10, 2000 at 9:30 AM a hearing will commence before the
Honorable Mary F. Walrath, US Bankruptcy Court for the District
of Delaware, 824 North Market Street, 6th Floor, Wilmington,
Delaware 19801 to consider confirmation of the first debtor's
plan of liquidation amended dated February 10, 2000.

GUY'S: Judge OKs Plan To Fund Payroll
THE KANSAS CITY STAR reports on February 16, 2000,
That a bankruptcy judge approved an order funding last
week's payroll for Guy's Foods, which sought Chapter 11
bankruptcy protection Monday.

The order authorizes LaSalle National Bank of Chicago, the
company's principal lender, to advance $528,455 to Guy's to pay
salaried employees, who didn't get paid Friday.

Guy's shut down Friday after the bank refused to continue
financing the operation unless the Liberty company finds a buyer.
Family Snacks Inc., the company that operates Guy's, has lost
$5.75 million in the last 16 months and projects at least $1
million in losses over the next 30 days, according to documents
filed in U.S. Bankruptcy Court in Kansas City.

Guy's has been in default under its revolving credit agreement
with LaSalle since Sept. 24 and owes the bank $14 million in
principal and interest. LaSalle has a security interest in
virtually all of the snack food company's assets.

Guy's has about 1,000 employees, including 600 at its
325,000-square-foot plant in Liberty. Most of those employees,
including several hundred members of United Food and Commercial
Workers Local 211, have been idle since the shutdown.

At a hearing Tuesday on Guy's payroll motion, attorneys for Guy's
and LaSalle told U.S. Bankruptcy Judge Frank Koger that the
company had been looking for a buyer since July and that at least
one party had expressed interest.

The attorneys did not identify the party, nor did a Guy's
official. LaSalle has indicated that it might provide additional
financing for Guy's beyond Friday's payroll, but only if the
prospect shows a strong interest in buying the company's assets.

Unless a buyer is found soon, Guy's is almost certain to close
permanently, throwing 1,000 employees out of work and ending a
business founded more than 60 years ago by Guy Caldwell.

Company officials have been mum about what led to the financial
impasse. But industry insiders have speculated that the
executives who bought Guy's from Borden Inc. in November 1994 may
have paid too much for it. Borden, which acquired Guy's in 1979,
decided to get out of the snack food business and sold Guy's to a
group led by Guy's current president and chief executive officer,
Victor R. Sabatino.

Also, Guy's and other regional snack food producers face stiff
competition from industry juggernaut Frito-Lay Inc., a Pepsico
unit that dominates the market in most of the country.

"There's a behemoth out there, and it just rolls and rolls and
makes it tough for the little guy," said industry consultant Don
Petty, a former Frito-Lay research scientist. "They manage their
business well, they make quality (products) and they distribute
them right."

Petty, based near Dallas, said Frito-Lay owned about 75 percent
of the Dallas salty snack market "and probably around 50 to 60
percent in the rest of the country."

"The only way the little guy can stay in business is to make a
chip as good as theirs, price it better and, most important, tell
people about it," Petty said. "And Frito-Lay has money out the
ears to tell people about their product."

Another factor hurting smaller players such as Guy's is the
"slotting" fee that food producers pay to supermarkets to ensure
that their products are carried.

"Obviously, the larger companies have more leverage than the
smaller ones," said Laurie Gorton, executive editor of Baking and
Snack, a Kansas City-based publication.

"When you have fixed costs like slotting fees to deal with, that
comes right off the bottom line of a company like Guy's. And then
there are the costs of direct-store delivery, the drivers who
stock the shelves. That's an added cost of doing business."

HARVARD INDUSTRIES: Announces Sales and EBITDA For Quarter
Harvard Industries, Inc. (NASDAQ:HAVA), a manufacturing company
which emerged from Chapter 11 bankruptcy in November, 1998,
announced sales and EBITDA for the three months ended December
31, 1999, of $83.6 million and $4.2 million respectively.

As a result of its emergence from Chapter 11 and the prospective
effects of "Fresh Start Reporting", the Company does not believe
that its historical results from operations are necessarily
indicative of its results as an on-going entity. However, for
comparative purposes the two-month period ended November
29, 1998 (pre-emergence) has been combined with the one-month
period ended January 3, 1999 (post-emergence) into a pro-forma
three-month period.

On a pro forma basis for the corresponding three-month period a
year earlier, the Company had sales and EBITDA of $80.7 million
and$1.2 million, respectively, after adjusting the prior period
sales and EDITDA by $48.5 million and $6.3 million respectively
for operations divested in the twelve-month period ended
September 30, 1999. These divestitures were made to enable the
Company to advance its diversification.

Harvard believes that EBITDA, defined as earnings before
interest, income taxes, depreciation, amortization,
reorganization items, extraordinary items and one-time items such
as the gain or loss on the sale of operations, is the best
benchmark of its performance since it bears a closer relationship
to real cash earnings than earnings per share.

Roger Pollazzi, Chairman and Chief Executive Officer, noted, "The
Company is making excellent progress in its renewal effort. We
are on plan in developing our higher value added business. Our
operating margins are improving and our balance sheet is debt-
free - and thus interest expense declined $2.4 million

Harvard Industries, Inc. designs, develops, and manufactures a
broad range of components for OEM manufactures and the automotive
aftermarket, as well as aerospace and industrial and construction
equipment applications worldwide. The Company has approximately
2,500 employees at 10 plants in the United States and Canada.

IMPERIAL HOME DECOR: Seeks To Retain Deloitte & Touche
The debtors, The Imperial Home D‚cor Group Inc., et al., see to
retain Deloitte & Touche LLP as auditors, accountants and tax,
business information system and compensation consultants.

Some of the services that the firm will provide include:

Provide advice concerning key employee retention and incentive
compensation issues and plans;

Perform audits of the annual consolidated financial statements of
the debtors and of certain of the debtor's employee benefit

Perform limited reviews of the debtors' quarterly financial

Provide various tax services;

Assist with such other accounting and tax matters as the debtors

Render business information system consulting services as
requested by the debtors;

Assist the debtors with reports, statement and schedules of
financial affairs and monthly reports.

The debtors also filed an application to retain Conway, Del
Genio, Gries & Co. LLC as financial advisors.  However, the firms
will not duplicate services.  

The firm has agreed to waive its rights to assert or collect a $2
million prepetition claims.  The firm was paid approximately $2.2
million by the debtors during 1999 for professional services.  
The hourly rates of partners of the firm range from $400 to $650
per hour.  Professional fees for this engagement are estimated to
be $60,000 to $80,000.

INCOMNET: Joint Chapter 11 Plan
To remedy the problems that led to the debtors' Chapter 11
filings, the debtors focused on improving operations, meeting
post-petition obligations and seeking a capital infusion.  ICC
has already measurably improved its operations.  ICC outperformed
its operating budget by approximately $1.1 million.  Its positive
performance stems from $500,000 in unanticipated income relating
to ICC's MLM program; administrative expense reductions of
$250,000 per month; and $173,000 in monthly payroll reductions.  

ICC expects that its performance will continue improving as the
company continues restructuring its operations.  A new long-
distance rate agreement with WorldCom should result in a monthly
savings of approximately $200,000.  This rate reduction is a
major operational achievement and should materially contribute to
ICC's reorganization.  ICC show that it should begin to generate
positive income by December 2000.

Because nearly all of ICC's cash is derived from subscriber
collections, ICC's most valuable asset is, without question, its
subscriber base.  ICC has approximately 82,000 subscribers who
are parties to service contracts.  These subscriber contracts
generate between $2.2 and $2.4 million per month in revenues.  
ICC estimates that it had approximately $3.9 million in accounts
receivable as of November 30, 19999.

The debtor estimate that on May 1, 2000 the balance on their
financing from Ironwood will be $4 million.  Under certain
agreements, Gold & Appel asserts a $1.5 million secured Claim
against the debtors.  Ironwood asserts a $16.8 million in secured
claims against ICC.

A brief summary of Treatment of Claims follows:

Class 1 - Ironwood's Secured Claims Under the DIP Financing -

Class 2 - Gold & Appel's Secured Claims - Impaired

Class 3 - Secured Tax Claims - Unimpaired

Class 4 - Ironwood's Secured Claims against ICC's Parent -

Class 5 - Other Secured Claims - Unimpaired

Class 6 - Ironwood's Remaining Claims against ICC - Impaired

Class 7 - ICC Unsecured Claims - Impaired

Class 8 - ICC's Parent Unsecured Claims - Impaired

Class 9 - ICC Administrative - Convenience Claims - Impaired

Class 10 - ICC's Parent Administrative - Convenience Claims -

Class 11 - Priority Claims - Unimpaired

Class 12 - Section 510(b) Claims Impaired

Class 13 - ICC's Existing Common Stock IMpaired

Class 14 - ICC's Parent's Existing Preferred Stock - Impaired

Class 15 - ICC's Parent's Existing Common Stock - Impaired

INCOMNET: Seeks Extension of DIP Financing
The debtor, Incomnet, Inc., Incomnet Communications Corporation
f/k/a National Telephone & Communications Inc. seeks approval of
an extension of DIP Financing until April 21, 2000.

ICC does not expect to emerge from bankruptcy substantially
before May 1, 2000. Ironwood Telecom LLC, provider of the
financing is now negotiating the terms of such extension with

IRIDIUM: Conflicting Reports About Japanese Company's Interest
DDI Corp., Japan's third largest telecommunications company, said
today it may dissolve struggling satellite phone operator Nippon
Iridium Corp., the Japanese arm of U.S.-based Iridium LLC, which
is in chapter 11, according to a newswire report. This report,
however, conflicts with another report from Nippon Iridium
shareholder, Kyocera Corp., which said it has no plans to pull
out of the Iridium business. DDI is Nippon Iridium's largest
shareholder with a 35.7 percent stake, and Kyocera has a 10
percent stake. DDI has not said when it would dissolve Nippon
Iridium, which as 4,000 Japanese subscribers. Kyocera said that
the "media report was incorrect" that it would pull out of the
business. A spokesperson for the company said, "We expect Iridium
LLC's restructuring to be successful." (ABI 17-Feb-00)

MEDPARTNERS PROVIDER: First Amended Chapter 11 Plan
MedPartners Provider Network, Inc., a California corporation
propses a First Amended Chapter 11 plan of MedPartners Provider
Network, Inc. dated February 3, 2000.

The plan is a liquidating plan pursuant to which all of the
assets of the debtor are to be distributed to creditors in
accordance with priorities established by the Bankruptcy Code.  
The plan is designed a s a means for implementation of the
Settlement agreement and the Supplemental Plan Agreement, which,
in general terms, are intended to combine to provide for, among
other things, supplemental funds to be made available from MPN's
parent company, Caremark Rx, Inc., f/k/a MedPartners, Inc. for
additional payments to the holders of eligible Allowed Claims
that elect to participate in the benefits of the Settlement
Agreement by executing and returning the applicable release
documents that accompany this plan.

MONDI OF AMERICA: Seeks Approval of Lease Termination Agreements
The debtor, Mondi of America, Inc. seeks authority to enter into
lease termination agreements at the following locations:

Beverly Center
131 North La Cienega Boulevard, #726
Los Angeles, CA

Cedarhurst Center
445 Central Avenue Suite 102
Cedarhurst, NY

La Jolla
7874 Girard Avenue
La Jolla, CA

Palm Beach
238 Worth Avenue
Palm Beach, Florida

St. Armands Circle
362 John Ringling Boulevard, suite B
Sarasota, Florida

Short Hills
The Mall at Short Hills
1200 Morris Turnpike, Suite A216
Short Hills, NJ

Stamford Town Center
100 Greyrock Place
Stamford, CT

White Plains Promenade Mall
The Westchester
125 Westchester Avenue, Space #1015
White Plains, NY

Woodland Hills
Promenade Mall
6100 Topanga Canyon, Blvd. 2120
Woodland Hills, CA

Oklahoma City
50 Penn Place, suite R213
Oklahoma City, OK

The Borgata
6166 North Scottsdale Road
Suite 700
Scottsdale, Arizona

In an effort to maximize value for their creditors and estates,
the debtors have determined that the disposition of the leases
will be subject to higher and better offers.  To solicit such
offers, if any, the debtors will ask interested parties to submit
bids for any or all of the leases no later than February 18, 2000
at 4:00 PM. Bids must be accompanied by an earnest money deposit
of at least $10,000.

NATIONAL HEALTH & SAFETY: First Amended Disclosure Statement
AS of the petition date, the debtor was losing cash at the rate
of approximately $100,000 a month from the expenses necessary to
support the operations of the POWERx Network and the other
business operations of the debtor.

Through its negotiations with the co-plan proponents, the debtor
has negotiated an arrangement whereby approximately $2.8 million
in new tangible assets will be infused into the debtor which
generates positive cash flow to fund the continuing development
actions of the debtor and its product lines other than the POWERx
Network.  The tangible assets consist of $675,000 in cash, real
estate valued ant $1.046 million and a shopping center valued at
$1.03 million.  These assets would also be available to pay
unsecured creditors in the event of liquidation of the company.  
In exchange for such new capital infusion, the co-plan proponents
will receive newly issued stock consisting approximately 73% of
the outstanding equity capital ownership of the reorganized

The following briefly summarizes the treatment of allowed claims
under the plan.

Class 1 - Secured Tax Claims (ad valorem) approx. $0

Class 2A - Secured Claims of Management approx. $300,000 secured
& $671,000 deficiency - Demand Note at 10% (12% default)
Class 2B - Secured Claims of Royal Bank (approx. $35,281 fully
secured - Matured September 30, 1990 - Prime plus 2%
Class 2C - Other Secured Claims approx. $15,000

Class 3  - Priority Non-Tax Claims - approx. $13,808 - generally
paid in full
Class 4A - Convenience Claims approx. $5,308 paid in full
Class 4B - General Unsecured Claims approx. $2,597,609 - pro rata
share of 980,000 Equity units less 1 equity unit for each $3 in
claims treated in Classes 1,2B, 2C, 3 and 4A.  Equity units
consist of one Series A preferred share and one class A warrant.

Class 4C - Unsecured claims of management - subordinated to Class
4B and paid only to the extent the equity units issued to Class
4B are not exhausted.
Class 5A Preferred Shareholders - Receive one Series B Preferred
Share for every $3 in liquidation preference in preferred shares
(not to exceed a total of 200,000 series B preferred shares.

Class 6A Common shareholders - 1 for 10 split (Not to exceed 6
million New Common shares)

Class 6B Common Warrant Holders - Receive nothing under plan.
Class 6C - Common Option Holders - Receive nothing under plan.

Class 7 - Other Interests - Receive nothing under plan.

Class 8 - Disallowed claims, subordinated claims, securities law
claims and Penalty claims - Receive nothing under plan.

PARACELSUS HEALTHCARE: Moody's Says Outlook is Bleak
Moody's Investors Service downgraded the ratings of Paracelsus
Healthcare Corporation ("Paracelsus"). The ratings affected are
as follows:

$325 million senior 10% senior subordinated notes due 2006 from
B3 to Caa3

Senior implied rating from B1 to Caa1

Senior unsecured issuer rating from B2 to Caa2

The rating outlook remains negative. Paracelsus is an owner and
operator of acute care hospitals.

The rating action follows the company's announcement that it
would not be making its scheduled interest payment of $16.25
million on its $325 million 10% senior subordinated notes due
February 15, 2000. The interest payment is subject to a 30 day
grace period that expires on March 16, 2000. The company has
retained Chase Securities Inc. as a financial advisor to explore
capital structure alternates and plans on engaging in discussions
with the subordinated note holders in the near term.

Despite the company's significant restructuring efforts in recent
months, which have included substantial asset dispositions and
the repayment of all amounts under its senior credit facilities,
Paracelsus remains highly leveraged. Currently, estimated total
debt (adjusted to include off balance sheet financings and lease
obligations) is in excess of 7 times estimated run rate EBITDAR.
In addition, the company's liquidity position is extremely tight,
as it currently has no revolving credit facility and is reliant
on cash on hand and cash from operations to fund its working
capital needs. Moody's further notes that given its significant
debt burden, the enterprise value of the company may not be
sufficient to repay bondholders in full in a distressed scenario.

The negative outlook reflects uncertainty regarding both the
company's ability to successfully reorganize its capital
structure, as well as its longer term strategies now that its
divestiture program is completed. In addition, while trends at
the company's remaining facilities appear relatively stable, the
company will continue to face a challenging operating and
reimbursement environment in the acute-care hospital sector.

Paracelsus Healthcare Corporation, headquartered, headquartered
in Houston, TX, owns or operates 10 hospitals in seven states.

PHYSICIAN COMPUTER: Summary of Second Modified Joint Plan
The plan is a plan of reorganization proposed by the debtors.  
Under the plan, substantially all of the debtors' assets will be
sold to the purchaser pursuant tot he Agreement.  The proceeds of
the sale will be used to satisfy Allowed Claims of unsubordinated
creditors in full.  The debtors estimate that after payment to
unsubordinated creditors and preferred stock interests, and after
satisfaction of administrative expenses and priority tax claims,
payment of the class action settlement, and establishment of
certain reserves for the wind-down and liquidation of debtors,
depending upon the purchase price adjustment to be performed
under the purchase agreement, approximately $1 million to $1.5
million may remain for distribution to Class 7A and 7B.  Class 7A
consists of the Claims statutorily subordinated under section 510
of the Bankruptcy Code.  Class 7B consists of Equity Interests,
which will be deemed canceled and of no further force and effect
as of the Effective Date.  However holders of Class 7B interests
shall receive their pro rata share of the equity interests
percentage of the Balance. The debtors also will retain Causes of

PREMIER SALONS: Seeks Authority to Employ and Retain PwC
The debtors, Premier Salons International Inc., et al. seek court
authority to employ and retain PricewaterhouseCoopers LLP as
accountants and tax advisors for the debtors.

The firm will provide the following services:

Render tax services related to the annual corporate tax returns;
Assist and consult on all tax compliance matters'

Prepare for, attend and participate in meetings, and appear
before the court, as requested by the debtors;

Provide such other accounting and tax advisory services as may be
required by the debtors' and

Perform a diagnostic analysis of the debtors' books and records
to ascertain if the debtors have overpaid any creditor or are
entitled to any refunds of rebates.

PwC has agreed to be compensated generally on an hourly basis and
the debtors have agreed to pay the firm of a commission equal to
50% of any overpayments, refunds or rebates recovered by the
debtors as a result of the firm's free diagnostic analysis of the
debtors' books and records.  The firm's hourly rates for partners
range from $475 to $580.

PRIMARY HEALTH: Seeks Extension of Exclusivity
Primary Health Systems, Inc. and its affiliated debtors seek an
extension of time during which only the debtors may propose and
file a plan of reorganization and solicit acceptances thereof.

Since obtaining the last extension of the exclusive periods, the
debtors continued their discussions with their bank lenders
concerning the terms of a Chapter 11 plan.  Because of the
complexity of the issues underlying the cases, the debtors claim
that they have not yet had an opportunity to complete those
negotiations much less begin tri-partite negotiations with the
banks and the Creditor's Committee.  Accordingly the debtors
request approximately 90-day extensions of each of the exclusive
periods, through and including May 15, 2000 and July 15, 2000

PRINCETON HOSPITAL: Court Approves Accountants
The application of the debtor, Princeton Hospital, Inc. f/k/a
RHA/Princeton Hospital, Inc. to employ Horne CPA Group and Roger
D. Greenup as accountants was approved on January 31, 2000.

RHYTHMS NETCONNECTIONS: Affirms CCC-Plus Senior Unsecured Debt
Ratings reflect Standard & Poor's expectation that the company's
negative operating cash flow may continue over the next three
years as Rhythms endeavors to compete for the relatively new and
evolving market of high-speed local communications access.

Moreover, Rhythms' plan to target businesses that need to network
with work-at-home employees is an untested business model that
will require significant capital resources to complete.

Although the $300 million bond offering, along with an expected
additional $250 million from a convertible preferred stock
transaction, will provide Rhythms with the capital to accelerate
their DSL infrastructure plans, the company may need additional
funding over the long term to complete its business plan.

Rhythms is one of several small companies that plan to take
advantage of the growing demand for high-speed access to the
Internet by offering DSL network solutions to the business

The company currently serves 39 markets around the U.S. and had
about 12,500 installed access lines as of Dec. 31, 1999.

However, as a start-up company, Rhythms faces significant
challenges in implementing its business plan in a manner that
will enable it to eventually compete with large firms, such as
the regional Bell operating companies.

The company focuses mainly on businesses that require high-
performance networks that can link to branch offices and to
employees who work from their homes.

Rhythms will offer these companies DSL services that are often 25
times faster than standard modems and 10 times faster than ISDN
lines, at prices that are less than about twice what an ISDN line
costs today.

In addition, a DSL can offers communication speeds of 1.5
megabits per second (Mbps), as fast as a high-speed T1 line, for
about half the price.

Despite the strong demand for high-speed Internet connections and
the relatively attractive pricing of DSLs, Rhythms will be
challenged to make this business profitable.

Even with significant contracts with MCI WorldCom Inc. and Qwest
Communications International Inc. to deliver up to 200,000 lines
over a five to seven year period, Rhythms may have negative cash
flows for several years.

Standard & Poor's outlook for the company is stable.

Funds provided by the senior notes and preferred stock will allow
Rhythms to accelerate its business plan and ensure that necessary
capital is available for about two years.

Nevertheless, Rhythms will face significant competition in
securing the customers it will need to make its business plan

SINGER: Claims Bar Date
The US Bankruptcy Court for the Southern District of New York
entered an order dated December 21, 1999 requiring all persons
and entities that assert a claim against The Singer Company N.V.,
et al., debtors, which arose prior to the commencement of these
Cases submit a written proof of claim so that it is actually
received on or before 4:00 PM on March 1, 2000. Certain
exceptions and exclusions are included in the notice.

THIS END UP: Announces Chapter 11 Filings
TEU Holdings, Inc. announced today that it and 122 affiliated
companies filed Chapter 11 petitions in the Wilmington, Delaware
Bankruptcy Court.

The cases have not yet been assigned to a Judge. The Companies
operate under the primary trade name of "This End Up" retail
furniture stores throughout the United States. TEU is an
integrated manufacturer and retailer of furniture and
accessories for residential, commercial and institutional

The Companies have over 2,000 employees and operate in 137 retail
locations. The Companies also operate 9 distribution centers and
4 manufacturing facilities. TEU is privately owned.

The Chapter 11 filings were precipitated by a combination of many
events, all of which resulted in substantial demands on the
Companies' limited cash flow. There were diversification,
acquisition and vertical integration decisions which
did not turn out to add the value which had been anticipated.

Further, and most significantly, the Companies undertook the
development and implementation of a new centralized distribution
system which failed, substantially increasing fixed costs and
causing deterioration of delivery lead times.

Notwithstanding the cash flow pressures, the Companies have been
improving in their operations. For the fiscal year ended May 31,
1999, the Companies had net sales of $149 million and net losses
of $22 million.

For the 7 months ended December 25, 1999, net sales were $80
million and net losses were $3 million. Congress Financial Corp.,
the Companies' lender, has agreed, subject to Court approval, to
fund operations in Chapter 11. The Companies listed assets of $59
million and liabilities of $75 million in their initial Chapter
11 filings.

According to Stephen Marotta, the Companies' interim Chief
Executive Officer, "We see the Chapter 11 filings as part of a
long-term restructuring which has been on-going for over a year.
With the support of all constituencies, we are optimistic that
the Companies will emerge as viable businesses. Our demographics
are strong - the product continues to be very well received - and
upon strengthening of our delivery systems, we should be in good

BOND PRICING FOR WEEK OF February 14, 2000
DLS Capital Partners, Inc., bond pricing for week of February 14,

Following are indicated prices for selected issues:

Acme Metal 10 7/8 '07                      18 - 20 (f)
Ameriserve 8 7/8 '06                       17 - 20 (f)
Asia Pulp & Paper 11 3/4 '05               86 - 87
E & S Holdings 10 3/8 '06                  37 - 40
Fruit of the Loom 8 7/8 '06                 5 - 7 (f)
Genesis Health 9 3/4 '05                   14 - 16
Geneva Steel 11 1/8 '01                    20 - 22
Globalstar 11 1/4 '04                      56 - 58
Hechinger 9.45 '12                          6 - 9 (f)
Integrated Health 9 1/4 '08                 4 - 6 (f)
Iridium 14 '05                              2 - 3 (f)
Loewen 7.20 '03                            50 - 52 (f)
Paging Network 10 1/8 '07                  64 - 66 (f)
Pathmark 11 5/8 '02                        31 - 33
Pillowtex 10 '06                           42 - 44
Revlon 8 5/8 '08                           40 - 42
Rite Aid 6.70 '01                          81 - 83
Service Merchandise 9 '04                  12 - 13 (f)
Sunbeam 0 '18                              14 - 15
TWA 11 3/8 '06                             35 - 37
United Artists 9 3/4 '08                    2 - 5
Vencor 9 7/8 '08                           18 - 20 (f)


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 * * *