TCR_Public/000228.MBX   T R O U B L E D   C O M P A N Y   R E P O R T E R

     Monday, February 28, 2000, Vol. 4, No. 40  

ACE BAKING CO: Assets To Be Auctioned Next Week
AGRI BIOTECH: Schweitzer Proposes Federal Loans for Purchase
BAPTIST FOUNDATION: Seeks Date For Disclosure Statement Hearing
CHARTER BEHAVIORAL: Crescent Enters Into Certain Arrangements
COLORADO GREENHOUSE: Plans To Sell New Mexico Greenhouses

COMPLETE MANAGEMENT INC: Plan of Reorganization
CRIIMI MAE: Exchanges Series C Preferred Stock For New Series
HC HOLDINGS: Seeks Authority to Assume Leases
LEWIS & PEAT: Seeks Dismissal of Chapter 11 Filing
LOEWEN: Appoints Two New Directors

MEDIQ INC: Moody's Downgrades Ratings; Outlook Is Negative
MERIT ENERGY: New Management Team To Turn Around Merit
MIDCON OFFSHORE: Chapter 11 Trustee's Final Report
MORRIS MATERIAL: Hires Donaldson Lufkin & Jenrette
NEXTWAVE: Nextel Partners Provide Needed Money

PRIMUS TELECOMMUNICATIONS: Moody's Assigns Caa2 To Debentures
RIGCO: Seeks Order Establishing Bidding Procedures
SINGER: Seeks Authority To Pay Due Diligence Fee to Foothill
SMURFIT STONE: Moody's Places Ratings On Possible Downgrade
SYSTEMSOFT CORP: Announces Resolution of Former Chapter 11 Status

TANDY BRANDS: Comments on Expected Third Quarter Results
TULTEX CORP: Debtors Tap Real Estate Brokers
XCEL: Completes Asset Purchase Agreement With Insynq, Inc.


ACE BAKING CO: Assets To Be Auctioned Next Week
The assets of ice cream cone manufacturer Ace Baking Co. are
scheduled to go on the auction block next week, the bankruptcy
lawyer for the firm says.

Real estate in Atlanta, Chicago, Dallas and Green Bay, will be
auctioned off Tuesday in Milwaukee, attorney Peter Blain said.

Machinery, equipment, molds, vehicles, furniture, fixtures,
customer lists and inventory are also up for sale, U.S.
Bankruptcy Court files say.  The assets will come from Ace's cone
suppliers Atlanta-based Food Service Division and the Green Bay-
based Novelty Division.

The company's "jacketing operation," which manufactures the paper
wraps on the outside of ice cream cones, in Owings Mills, Md.
will also be sold.

Badger Paper Mills Inc. of Peshtigo said Thursday it planned to
bid on the cone jacket equipment.

Ace, the nation's largest cone-maker, filed for protection under
Chapter 11 of the U.S. Bankruptcy Code in December. The company
has $35 million in assets and $41 million in liabilities,
according to an amended bankruptcy schedule filed this month.

Ace's financial problems sparked cone customers' concerns that
there could be a serious product shortage this summer. The
company said the it's important that a potential buyer begin
manufacturing immediately to stave off a shortage.

Most of the money from the auction will go to the firm's secured
creditors, who hold more than $31 million in Ace debt. Other
money from the sale will be set aside for the firm's unsecured
creditors owed about $7 million.

AGRI BIOTECH: Schweitzer Proposes Federal Loans for Purchase
Companies should be offered federal loans to buy AgriBio Tech
Inc., a seed company that filed a Chapter 11 bankruptcy without
paying farmers for seed harvested and delivered, U.S. Senate
candidate Brian Schweitzer said.

The Whitefish Democrat said government incentives to break
AgriBio Tech into six to 10 companies would help seed growers, by
giving them some choice when shopping for buyers.

"Because of mergers, ABT is the only game in town," Schweitzer
said Tuesday in a news release critical of Republican Sen. Conrad
Burns' vote on merger legislation. "They are a monopoly squeezing
farmers off the farm."

In four years, AgriBio Tech grew with the acquisition of more
than 30 seed companies. But in January, AgriBio Tech, one of the
largest U.S. buyers of alfalfa, turfgrass and clover seed, filed
for Chapter 11 bankruptcy protection.

The bankruptcy will cost 27 Montana seed growers $1.1 million in
contracts this season alone, Schweitzer said.

Citing the AgriBio Tech trouble, he criticized Burns' November
vote against a Senate amendment that would have placed a
moratorium on corporate mergers.

"The bottom line is this: More and more Montana farmers are left
with a single giant corporation to whom they can market their
crops," said Schweitzer, who is challenging Burns' re-election
bid. "If that corporation goes under, like ABT did, our farmers
will go down with them."

Burns spokesman Matt Raymond defended the Montana senator's vote.
The amendment was too broad, and many farmers in the state asked
Burns to vote no, Raymond said. The amendment failed, 71-27.
Raymond also said Burns has asked that Agriculture Secretary Dan
Glickman do everything possible to blunt the AgriBio Tech
bankruptcy's effect on farmers. The case is pending in U.S.
Bankruptcy Court in Las Vegas.

BAPTIST FOUNDATION: Seeks Date For Disclosure Statement Hearing
The debtors seek court approval of the following schedule for the
disclosure and confirmation process:

Bar Date - March 31, 2000

Disclosure Statement Hearing - April 10-14, 2000

Commencement of Solicitation Period - April 24, 2000

Voting Deadline - May 24, 2000

Deadline for Objection to Ballots and Claims for Voting Purposes  
- May 31, 2000

Commencement of Confirmation Hearing - June 5-9, 2000

CHARTER BEHAVIORAL: Crescent Enters Into Certain Arrangements
On February 16, 2000, Crescent announced that it had entered into
certain arrangements with its tenant, Charter Behavioral
Healthcare Systems, LLC ("Charter"), to facilitate an orderly
restructuring of Charter's business in Charter's voluntary
Chapter 11 bankruptcy proceeding.  Charter's core business will
consist of 37 core facilities, 30 of which are operated in
facilities leased by Charter from Crescent.  By the end of
February 2000, Crescent expects to have received the remaining 48
Crescent-owned non-core facilities back from Charter, which
Crescent has been or will be actively marketing for sale.  To
date, six of these facilities, two of which closed within the
past week, have been sold at or above gross appraised value,
generating approximately $16 million in net proceeds.

John C. Goff, President and Chief Executive Officer commented,
"We left 1999 feeling very confident about the progress we made
in the past year.  We met or exceeded each of our investment
segment earnings projections made in 1999, with the exception of
our behavioral healthcare segment.  During 2000, the year we've
identified as our transition year, we will continue to execute on
and measure our performance against the strategic plan we
presented to our constituents in the 4th quarter of 1999.  
Recently, we completed, ahead of schedule, the
refinancing of almost all of our 2000 and 2001 debt maturities
and reduced our variable-rate exposure to less than 30% of total
debt.  We also reduced our exposure to Charter by 1) taking back
and marketing 48 facilities and 2) supporting Charter's decision
to seek a comprehensive restructuring plan as an effective way to
restore Charter's core business to operational and financial
health.  Additionally, we are continuing our office property
disposition and joint venture efforts.  I see 2000 as a year for
Crescent to reinforce its direction and to strategically
reposition itself to take advantage of the opportunities ahead.  
We are committed to providing our shareholders with attractive
and predictable growth in cash flow and underlying asset value."

As announced on February 16, 2000, Crescent's tenant, Charter,
filed for Chapter 11 bankruptcy as part of a restructuring plan
initiated by Charter in September 1999.  Charter is seeking
through bankruptcy to convey its core operating assets to a
purchaser free and clear of all prior liabilities. Charter's core
business, which consists of 37 facilities, is accountable for
over 90% of its present earnings from operations before rent.  
Crescent is Charter's landlord in 30 of the 37 facilities.  In
conjunction with the bankruptcy filing, Charter has entered into
an agreement for the sale of the core operating assets to a new
subsidiary of Crescent Operating, Inc. (Nasdaq: COPI).  As such,
Crescent has agreed to lease the core facilities to the new
subsidiary of Crescent Operating, Inc. if the subsidiary is
successful in acquiring the core operating assets and if
agreement is reached on various terms of the lease.  The proposed
lease requires an annual rental payment to Crescent of
approximately $20.3 million in the first year, escalating
annually at 5% over the 10-year term.  By the end of February
2000, Crescent expects to have received a total of 48 facilities
back from Charter, which Crescent has been or will be actively
marketing for sale.  To date, six of these facilities have been
sold at or above gross appraised value, generating approximately
$16 million in net proceeds.  Eight additional facilities are
currently under contract or letter of intent.

COLORADO GREENHOUSE: Plans To Sell New Mexico Greenhouses
The Albuquerque Journal reports on February 24, 2000, that
Colorado Greenhouse Inc. plans to sell its two New Mexico
greenhouses, the company's CEO said Monday.

The Colorado-based company owns the tomato greenhouse south of
Estancia, as well as one in Grants and three in Colorado.

The Estancia greenhouse, which was Torrance County's third-
largest employer, shut down on Feb. 11 after the parent company
filed for Chapter 11 bankruptcy reorganization on Feb. 7. The
Grants location was closed in January.

An estimated 110 employees lost their jobs when the Estancia
plant closed.   

A tomato virus that destroyed the tomato crop, low pricing, the
cost of sanitizing the plants and many other factors went into
the decision to close the greenhouses, according to the company's
CEO Martin Wehr.

COMPLETE MANAGEMENT INC: Plan of Reorganization
Treatment of claims under the proposed plan of reorganization of
Complete Management Inc., debtor:

Class 1 - Secured Claims - Unimpaired

Class 2 - Unsecured Claims entitled to priority - Unimpaired

Class 3 - General Unsecured Claims against the debtor including
August Debenture Claims and December Debenture Claims. Each
holder of an allowed Class 3 claim shall receive a pro rata
distribution of shares of New Common Stock, aggregating 95% of
the New Common Stock plus (Class 3 and 3a) - a pro rata
distribution of certificates representing the entitlement of the
net proceeds of the Litigation Trust, Up to the Class 3 (and
Class 3a) Class Amount, respectively.

Class 4 - Indemnification Claims - to be waived and discharged.

Class 5 - Security Litigation Claims - If settlements accepted,
they may be funded only from the proceeds available under the
debtor's insurance policies; otherwise, reclassified as claims in
Class 3 or subordinated and treated pari passu with claims in
Class 3(a)

Class 6 - Convenience Claims - Holders shall receive cash equal
to 50% of the allowed amount of such convenience claims.

Class 7 - Old Common Stock of Debtor - Each existing Old Common
Stock share shall be exchanged for a pro rata distribution of
shares of New Commo9n Stock in the reorganized debtor,
aggregating, in total 5% of the new common stock.

Classes 3, 4, 5, 6, 7 are impaired under the plan.

CRIIMI MAE: Exchanges Series C Preferred Stock For New Series
On February 22, 2000, CRIIMI MAE Inc. and the holder of its
Series C Cumulative Convertible Preferred Stock, par value
$0.01 per share entered into a Preferred Stock Exchange Agreement
to exchange 103,000 outstanding shares of Series C Preferred
Stock for 103,000 shares of a new series of preferred
stock designated as "Series E Cumulative Convertible Preferred
Stock," par value $0.01 per share.

The principal purpose of the Share Exchange was to extend the
February 23, 2000 mandatory conversion date for the Series C
Preferred Stock to a later date that will be specified in the
Company's amended plan of reorganization, which has not yet been
confirmed by the Bankruptcy Court.  If the mandatory conversion
date had not been extended, the 103,000 outstanding shares of
Series C Preferred Stock would have converted into approximately
9 million additional shares of CMI common stock, resulting in
substantial dilution to existing common shareholders.

Pursuant to the Preferred Stock Exchange Agreement, the Company
intends to amend its plan of reorganization to provide for
certain additional terms and conditions with respect to the
Series E Preferred Stock, substantially in accordance with the
term sheet attached as an exhibit to such Agreement.  The
additional terms principally address conversion and dividend
matters.  The Preferred Stock Exchange Agreement will be filed as
an exhibit to a Current Report on Form 8-K with the SEC.   The
Company has taken the position that approval of the Share
Exchange is not required under applicable bankruptcy law.  
However, at the request of the holder of the Series C Preferred
Stock, the Company filed an Emergency Motion for approval of the
Share Exchange in the United States Bankruptcy Court in
Greenbelt, MD.  The Official Committee of Unsecured Creditors of
CMI opposed the Emergency Motion while the Official
Committee of Equity Security Holders of CMI supported the
Emergency Motion. At the conclusion of the hearing on the
Emergency Motion, the Bankruptcy Court neither approved nor
disapproved the Share Exchange.  The Company believes the
Share Exchange is in the best interest of the Company, its
creditors, and shareholders.  There can be no assurance that the
Creditors' Committee will not challenge the Share Exchange.

On October 5, 1998, CRIIMI MAE Inc. and two affiliates filed for
protection under Chapter 11 of the U.S. Bankruptcy Code. Before
filing for reorganization, the Company had been actively involved
in acquiring, originating, securitizing and servicing multi-
family and commercial mortgages and mortgage related assets
throughout the United States. Since filing for Chapter 11
protection, CMI has suspended its loan origination, loan
securitization and CMBS acquisition businesses.  The Company
continues to hold a substantial portfolio of subordinated CMBS
and, through its servicing affiliate, acts as a servicer for
its own as well as third party securitizations.

HC HOLDINGS: Seeks Authority to Assume Leases
The debtors, HC Holdings, Inc. and its affiliates seek court
authority to assume and assign four real estate leases to
Acquisition Corp, a n affiliate of Express Custom tailors LLC.

The leases cover stores located at

Gallery at Harbor Place
200 E. Pratt Street #104
Baltimore, Md.

599 Lexington Avenue, New York, NY

Pacific Place
600 Pine Street
Seattle, WA

Valley Fair Shopping Ctr.
2855 Stevens Creek Blvd. #1034
Santa Clara, CA.

These four leases are in addition to those leases that the
Purchaser selected after an initial analysis of the debtor's
contracts and unexpired leases.

LEWIS & PEAT: Seeks Dismissal of Chapter 11 Filing
Rubber & Plastics News reports on February 21, 2000 that
Lewis & Peat Rubber L.P. is "operating again as we did before we
filed" for Chapter 11 protection in federal bankruptcy court,
according to a company spokeswoman.

The Middlebury-based rubber trader moved for dismissal of its
Chapter 11 filing in the New Haven, Conn., bankruptcy court Feb.
10, one month to the day after it made the filing.

"We have been able to resolve the circumstances that necessitated
the Chapter 11 bankruptcy petition with our banking syndicate,"
Lewis & Peat President Jim Belcher said in a prepared statement
which didn't explain the details of the resolution. The syndicate
is headed by Rabo Bank Singapore, sources close to the company
said earlier.

When Belcher has signed an agreement with the court to withdraw
the Chapter 11 filing, Lewis & Peat will issue another news
release, according to the spokeswoman. Belcher expects to have a
signed document no later than Feb. 23, she said.

Complications in Lewis & Peat's relationship with its Indonesian
owners, Bakrie Brothers, led to the Chapter 11 filing, the
sources said. Meanwhile, the company was able to fulfill its U.S.
contracts through inventories on hand without disruption of

LOEWEN: Appoints Two New Directors
The Loewen Group Inc. (NYSE, TSE: LWN), announced it has
appointed two new directors whose expertise reflects the
Company's commitment to becoming a superior operating company
and the most service-oriented care provider in its industry.

Donna R. Moore has successfully held senior level executive
positions in quality companies recognized for delivering customer
focused service. Ms. Moore's senior management experience
includes Marriott Hotels, Senior Vice President at The Walt
Disney Company, Senior Vice President at Williams Sonoma, and
President of Laura Ashley PLC. Ms. Moore also brings to The
Loewen Group board a background in reorganizing and training
large numbers of service-oriented retail employees.

John J. (Jack) Wiesner, a retail consultant with a strong
financial background in company restructuring, is a director of
Stage Stores Inc., Lamonts Apparel, Inc., and Elder Beerman, Inc.
Mr. Wiesner has held senior level executive positions in large
retail organizations with operations throughout the United
States.  Commenting on the appointments, Loewen Group Chairman
John Lacey said, "Our two new directors reflect Loewen's
commitment to becoming a superior operating company and the most
service-oriented care provider in our industry. The careers of
both Ms. Moore and Mr. Wiesner reflect a remarkable combination
of financial and consumer service experience derived from a
variety of different geographic markets in North America."

"Our board now numbers eight directors which is small enough to
permit the board to work actively with senior management and our
advisors over the next important phase of Loewen's
restructuring," Mr. Lacey said.(Loewen Bankruptcy News Issue 19;
Bankruptcy Creditor's Service Inc.)

MEDIQ INC: Moody's Downgrades Ratings; Outlook Is Negative
Moody's Investors Service downgraded the ratings of MEDIQ Inc.
("MEDIQ") and its operating subsidiary MEDIQ/PRN Life Support
Services, Inc. ("MEDIQ/PRN"). The ratings affected are as


$141 million senior step up discount debentures due 2009 from
Caa1 to Ca

Senior implied rating from B1 to Caa1

Senior unsecured issuer rating from Caa1 to Ca


$325 million senior secured credit facilities from B1 to Caa1

$190 million 11% senior subordinated notes due 2008 from B3 to

The ratings outlook is negative. MEDIQ rents critical care
medical equipment and specialty surface overlays to hospitals and
other healthcare providers.

The rating action reflects uncertainty regarding the potential
impact of recently disclosed accounting issues as well as the
company's current liquidity crisis that has resulted from its
default under its senior credit facilities.

The company recently disclosed that it was unable to file its
annual report on a timely basis due to concerns of its outside
auditors regarding several accounting issues. Areas of concern
include the potential understatement of reserves for accounts
receivable and the related improper recognition of revenue and
earnings, the reduction of obsolete and excess inventories to net
realizable value, and the deferral and capitalization of certain
costs and expenses. It is anticipated that these issues could
result in prior quarter adjustments. Currently, the company, its
auditors, and outside counsel are gathering information and
conducting a review of the situation.

As a result of its failure to deliver audited financials, the
company is in default of its bank credit agreement. In addition,
the pending restatements will likely give rise to additional
events of default including covenant violations. Further, the
failure to file the financial statements could also lead to
events of default under the bond indentures.

The company's liquidity has been severely limited as it currently
cannot access its credit facilities. The company anticipates
requiring additional funds to meet its near term working capital
and debt service requirements, and is in discussions with its
major stockholders concerning such additional funding. The
company is also pursuing an agreement with its bank group
regarding the current and potential additional defaults. Moody's
further notes that the company's Chief Financial Officer has
recently been replaced by an interim CFO.

MEDIQ, headquartered in Pennsauken, NJ, through its subsidiary
MEDIQ/PRN, operates the largest critical care, life support and
other movable medical equipment rental business in the U.S. The
company also sells a variety of disposable products, accessories
and repair parts primarily for use with its rental equipment.

MERIT ENERGY: New Management Team To Turn Around Merit
The Calgary Herald reports on February 25, 2000, that a new  
management team is bidding to turn around Merit Energy Ltd., the
fallen junior Calgary oilpatch star that placed itself under
court protection last week to stay a flurry of creditor claims
and shareholder lawsuits claiming its former management
misrepresented financial statements.

The plan of arrangement was presented by Atlas Energy Management
Ltd. Merit has been under CCAA protection since last weekend.
According to the report, the Atlas team, headed by president
Lloyd Arnason, is proposing to take over management of the junior
natural gas firm's assets and pay off the National Bank and Bank
One, a U.S. lender, which are owed $72 million.

The team is also proposing to sell some assets, raise money
through a rights offering, create a $15-million pool for
unsecured creditors and inject $5 million in exchange for equity
in the restructured company.

Atlas will present its plan at a March 8 court hearing. A
creditors' meeting for a vote on the plan is expected around the
end of March.

Merit's shares collapsed last fall when the company said it had
issued incorrect financial and production estimates.

MIDCON OFFSHORE: Chapter 11 Trustee's Final Report
The Trustee disbursed funds to certain parties in accordance with
the terms and provisions of the plan and confirmation order.  
Thereafter the Trustee transferred the debtor's remaining assets
to Jeffrey A. Compton, Creditors Trustee of the Creditors' Trust
created under the plan.  The Trustee requests that the court
enter an order approving the final report and final accounting
and discharging the Trustee.

MORRIS MATERIAL: Hires Donaldson Lufkin & Jenrette
According to an article in The Business Journal, February 4,
2000, Morris Material Handling Inc. has hired Donaldson Lufkin &
Jenrette to explore its strategic options, including the sale of
the company.

Just seven months after renegotiating a lending agreement with
its banks, the manufacturer has failed to comply with its lending
requirements and has asked its banks to raise its credit line by
$12 million.

According to the article, if Morris doesn't restructure its
balance sheet, the firm is in jeopardy of missing a $9.5 million
interest payment to its bondholders on April 1, said David Smith,
chief financial officer of the factory crane manufacturer.
Sales totaled $81.7 million in its fiscal fourth quarter, which
ended Oct. 31. That's down 5 percent from $86.2 million a year

The company's earnings before interest, depreciation and
amortization -  totaled $4.7 million before one-time items, down
57 percent from $11.1 million in the year-ago quarter. In
addition, the firm booked just $64.8 million in orders, a 35
percent decline from $100.2 million a year ago.

This is the second financial crisis in a year for Morris, which
employs about 350 people in Oak Creek and 2,000 worldwide. Last
June, Standard & Poor's and Moody's Investor's Service both
lowered their ratings on Morris debt after the company violated
certain bank loan covenants and tried to renegotiate its bank

Moody's lowered its rating on the manufacturer's $200 million in
senior unsecured notes to "Ca" from "B3."

Morris has failed to meet certain financial targets outlined in
the agreement, yet its lenders have suspended the requirements
until March 29 - two days before its interest payment to
unsecured noteholders is due. The lenders also have raised the
limit on Morris's credit line by $12 million.

Morris took on a lot of debt in the spring of 1998, after St.
Francis-based Harnischfeger Industries Inc. sold an 80 percent
stake in the company to Chartwell Investments Inc., a New York
leveraged buyout firm.

NEXTWAVE: Nextel Partners Provide Needed Money
COMMUNICATIONS TODAY reports on February 24, 2000 that
Nextel Communications [NXTL] reported an operating loss of $469
million during 1999, despite adding 1.8 million U.S. subscribers.  
So the carrier wants revenue from the initial public offering of
a spin-off, Nextel Partners [NXTP].

Kirkland, Wash.-based Nextel Partners, which is 35 percent owned
by Nextel, sold 23.5 million shares in an IPO on February 23,
2000. The trading opened at $20 a share and by closing hit
Nextel Partners was launched to fill gaps in the footprint of
Nextel's integrated digital enhanced network, and to handle
roaming traffic. In addition, Reston, Va.-based Nextel is
declaring a two-for-one stock split.  The split, if approved by
shareholders, will be payable June 6 to stockholders of record as
of May 26.

In addition to needing capital to pay for network build-out, the
company needs money to buy NextWave Telecom's wireless licenses -
if it gets the chance.

NextWave has filed for Chapter 11 protection and the ownership of
its wireless licenses is the subject of an ongoing court battle
with the FCC.  Nextel completed an equity offering of 33.8
million shares during the 1999 fourth quarter, raising more than
$2.8 billion.  The company also completed a convertible bond
issue during the first quarter, raising $1.15 billion.

PRIMUS TELECOMMUNICATIONS: Moody's Assigns Caa2 To Debentures
Moody's Investors Service has assigned a Caa2 rating to Primus
Telecommunications Group, Inc.'s $250 million 5.75% convertible
subordinated debentures due 2007. Moody's has also confirmed the
B3 ratings on the company's outstanding senior unsecured notes
and the senior unsecured issuer rating. Primus Telecommunications
Group, Inc.'s senior implied rating is B2. The outlook has been
changed from positive to stable.

The ratings reflect the risks associated with effectively
integrating recent and future acquisitions; assembling a stable
customer base in an extremely competitive environment of rapidly
declining prices; and the increased capital investment required
to further develop the company's network, product set, support
systems and sales infrastructure. However, the ratings recognize
the company's enhanced business strategy emphasizing a broader
set of voice and data services; and the expectation that Primus
will maintain a balanced capital structure to fund its future
expansion plans.

The ratings also reflect the structural characteristics of the
debt instruments. The issuer of the senior notes and the
convertible subordinated debentures, Primus Telecommunications
Group, Inc. is a holding company, making both classes of debt
structurally subordinated to debt at the operating companies.
Most notable at this time are two vendor facility commitments
totaling $68 million. The B3 rating on the senior notes also
reflects the possibility of additional amounts of secured debt in
the future, as permitted by the indentures. The rating on the
convertible subordinated debentures reflects its contractual
subordination to a significant amount of senior debt. Although
the existing note indentures provide limited protection, Moody's
expects the company will use a mix of equity and debt to meet its
future growth initiatives.

The change in outlook from positive to stable is due to changes
in the company's business model. Moody's expects capital
expenditures of approximately $210 million in 2000, a
significantly higher level relative to prior years. Under the
current business plan, we believe the company is funded through
2001, however, the timing and size of future acquisitions and
other potential investments may affect the company's capital
requirements sooner than expected.

Recent acquisitions continue to benefit the company's reported
mix of retail and wholesale revenues. Moody's believes gross
margins will continue to benefit from additional network
investment and lower access costs in certain markets offset to
some degree by continued pricing pressures in its markets. Primus
reported positive EBITDA of $6.0 million in the fourth quarter of
1999. Given the successful execution of the current business
plan, leverage (debt to EBITDA) could be reduced to 5 times in

Details of the rated issues are as follows:

Senior Notes rated B3 include:

$225 million 11.75% due 2004

$150 million 9.875% due 2008

$246 million 11.25% due 2009

$250 million 12.75% due 2009

Convertible Subordinated Debentures rated Caa2:

$250 million 5.75% Convertible Subordinated Debentures due 2007

Primus Telecommunications Group, Inc. has its headquarters in
Vienna, Virginia.

RIGCO: Seeks Order Establishing Bidding Procedures
The debtors, RIGCO North America LLC and its debtor affiliates
seek approval of bidding procedures with respect to the sale of
FPS Laffit Pincay to Seatankers management Company, Ltd. For a
purchase price of $28 million.

The terms of the sale provides that the Pincay may be sold
subject to a higher and better offer.  The debtor requests that a
competing offer be on the same terms and at least $28,940,020.

All competing offers must be received by close of business on
March 17, 2000. A break-up fee of $840,000 is provided to
compensate the Buyer for all of its direct and indirect costs.

SINGER: Seeks Authority To Pay Due Diligence Fee to Foothill
The debtors, The Singer Company N.V., et al., seek court
authority to accept the Proposal Letter, and in connection
therewith pay the $100,000 due Diligence Fee required by
Foothill.  The Proposal Letter contains proposed terms and
conditions for DIP financing, subject to the satisfaction of
certain conditions precedent including completion of due
diligence by Foothill.

The terms of Foothill's proposed DIP Facility provide for a
revolving loan with a maximum credit line of $25 million.

$10 million of the DIP would be used to repay in full the current
DIP facility with the Bank of Nova Scotia which expires by its
terms on March 31, 2000; the remainder would be used for the
debtors' working capital needs and to pay for professional fees
incident to the Chapter 11 cases.  A Facility Fee of $1.5 million
is payable to Foothill at closing.

The debtors have been in continuing negotiations with Scotia;
however, Scotia's demands include a roll-up of approximately $65
million of its pre-petition debt into post-petition DIP loans,
which is unacceptable to the debtors and the Committee as
threshold matter, because such a roll-up would make obtaining
existing financing extremely difficult, particularly given the
debtors' intent to seek emergence from Chapter 11 in the summer
of 2000.  To complete its due diligence, as is typical in DIP
Financing proposals, Foothill requires payment of the Due
Diligence Fee.

SMURFIT STONE: Moody's Places Ratings On Possible Downgrade
Moody's Investors Service placed the long-term ratings of
Jefferson Smurfit Corp. (JSCUS) and Stone Container Corporation
(Stone), the rated subsidiaries of Smurfit-Stone Container
Corporation (SSCC) on review for possible downgrade. The review
stems from the planned acquisition by SSCC of St Laurent
Paperboard, for approximately $1.4 Billion. Under the terms of
the acquisition agreement, Stone will pay approximately $625
million in cash and assume $400 million in Saint Laurent debt.
The balance of the purchase price of around $350 million will be
paid with new shares of SSCC.

Although SSCC has made significant progress towards debt
reduction over the past year, Moody's expressed concern over the
roughly $1.0 billion increase in debt which will result from the
transaction. With containerboard pricing expected to remain
relatively strong over the next eighteen to twenty four months,
Moody's had anticipated a further permanent reduction in debt,
and a strengthening in debt protection measurements through the
cycle. The ratings review will assess management's plans for debt
levels over the long term, as well as its strategic plans for
future growth. In addition, the review will assess he company's
plans for integrating the assets of St. Laurent, and the expected
cost savings from synergies and operational improvements.

Smurfit-Stone Container Corporation, headquartered in Chicago,
Illinois, is the industry's leading manufacturer of paper and
paperboard-based packaging, including containerboard, corrugated
containergs, industrial bags, and claycoated recycled boxboard.

SYSTEMSOFT CORP: Announces Resolution of Former Chapter 11 Status
SystemSoft(R) Corporation, a leading Windows Utilities provider,
announced the resolution of its former Chapter 11-bankruptcy

On February 22, 2000, the United States Bankruptcy Court for the
District of Massachusetts confirmed a Chapter 11 plan of
reorganization proposed by SystemSoft Corporation. Under the
Court approved plan, SystemSoft, which designs and sells
proprietary PC Card and diagnostic software related products,
will be acquired by Rocket Software of Natick, Massachusetts.

Rocket Software agreed to retire SystemSoft's outstanding bank
debt and to provide funding for a trust to be established for the
benefit of SystemSoft's unsecured creditors. Approximately
27,000,000 outstanding shares of SystemSoft's publicly traded
stock will be cancelled when the Company's Plan becomes
effective. The Plan is expected to become effective on or before
March 4, 2000.

SystemSoft Corporation is a leading provider of Windows
Utilities. Current solutions include CardWizard for Windows NT,
PowerProfiler/SE for Windows NT, PowerLast for Windows 98,
SystemWizard for Windows 95/98 desktops and notebooks, and
SmartMonitor for Windows 95/98/NT. SystemSoft customers and
partners include Chevron, Hewlett-Packard, IBM, Intel, Gateway,
Micron Electronics, Packard Bell, NEC, PeopleSoft, Siemens,
SmithKline Beecham, and Toshiba. Product names used in
this publication are for identification purposes only and may be
trademarks of their respective companies. Additional information
on SystemSoft products and services is available on the World
Wide Web at

TANDY BRANDS: Comments on Expected Third Quarter Results
Tandy Brands Accessories, Inc.  (Nasdaq:  TBAC) announced that,  
based on currently available information, it expects that sales
and earnings for the third  quarter of fiscal 2000 ended March
31, 2000, will be below last year's levels.  The Company expects
third quarter sales will be in the range of $32 million to $37
million compared to $38.2 million in sales reported in the
third fiscal quarter  of last year.  Diluted earnings per share
for the third quarter of fiscal 2000 are expected to be in the
range of $0.05 to $0.12, versus $0.29 reported for the third
fiscal quarter in the prior year.

The company attributes this anticipated shortfall from
expectations to certain sales factors  specific  to  the  third
quarter.  January sales were below internal estimates in part due
to weak reorders as a result of soft holiday retail sales which
led to higher  than  expected  retail  customer inventories.
Additionally, the Company's women's accessories trend item sales
are below the  very strong hair accessories sales experienced in
the  third quarter  of the prior year.  Lastly, sales have been
impacted by the discontinuation of business of several retail
customers as a result of industry consolidation, chain closures
and bankruptcies.  As the third quarter is the Company's lowest
sales volume quarter of the year, it is anticipated that these
top-line trends  will  have a disproportionate effect on
selling,  general and administrative expenses as a percent of

Several factors, however, suggest that this quarterly sales
disruption is likely to be confined to the third quarter.  Normal
inventory replenishment sales levels are expected to be
reestablished in the fourth quarter as customer retail
inventories are drawn down through the balance of the third

Third quarter 2000 results will be officially released in late

Tandy Brands Accessories, Inc. designs, manufactures and markets
fashion accessories for men and women and children.   Key product
categories include belts, wallets, handbags, suspenders, socks,
scarves and hair accessories.

TULTEX CORP: Debtors Tap Real Estate Brokers
The debtors, Tultex Corporation, et al. seek court authority to
retain and employ Walker Commercial Services, Inc. as real estate
broker and agent.  The firm will assist the debtors in the
marketing and sale of real estate located in Virginia, consisting
of, but not limited to, Tultex manufacturing plants located in
Roanoke, Bastian and South Boston, Virginia.  Walker will seek a
commission of 5% of gross sales price and $750- for out of pocket
advertising expenses for each property that is listed and sold by

The debtors also seek court authority to retain the services of
The Stump corporation as a real estate agent and broker in
connection with its Chapter 11 case, to assist the debtors in the
marketing and sale of real estate located in North Carolina,
consisting of, but not limite4d to, Tultex manufacturing plants
located in Roxboro, Mayodan and Asheville North Carolna.

The debtors proposed to compensate Stump five percent of the
gross sales price for listing and marketing the real property as
well as $750 for out-of-pocket advertising expenses.

XCEL: Completes Asset Purchase Agreement With Insynq, Inc.
Xcel Management, Inc., formerly "Palace Casinos, Inc.," announced
today that it has completed an asset purchase agreement with
Insynq, Inc. ("Insynq"), a Washington corporation, providing for
the acquisition by Xcel of all of the business assets, and the
assumption of the indebtedness, of Insynq.  In connection with
the transaction, John Gorst, Chairman and Chief Executive Officer
of Insynq, Inc., and M. Carroll Benton, Secretary/Treasurer, have
been appointed to the Board of Directors of the Company.  Mr.
Gorst will serve as Chief Executive Officer and Ms. Benton
will serve as the Secretary/Treasurer, respectively, of the
Company.  Dallin Bagley and Steve Rippon have resigned as
officers and directors of the Company.

As a result of this transaction, the Company, through its new
management, intends to pursue the business of Insynq.  Insynq,
organized in August, 1998, is a development stage Washington
corporation engaged in the development and commercialization of
unique comprehensive packages of office productivity software,
mission critical applications, web-site development and hosting,
data storage and networking capabilities through a proprietary IQ
computing system utilized over the internet via its own internet
appliance.  Insynq concentrates on the outsourcing of a
business's entire computer and telephony requirements,
including providing services as an internet utility company,
attempting to provide such services cost effectively to the
business user. From inception through October 31, 1999, Insynq
has incurred losses of $348,325.  Insynq has its headquarters at
1101 Broadway Plaza, Tacoma, Washington.  Insynq also
markets its services and products through its national sales
office in Roseville, California.  

In connection with the acquisition transaction, the Company
issued a total of 7,604,050 shares of restricted common stock to
the Insynq shareholders.  As a result of this transaction, the
Company now has a total of 9,404,050 shares issued and
outstanding, of which approximately 81% will be held by Insynq

The Company completed a Chapter 11 reorganization in the latter
part of 1999.  Since the completion of the Chapter 11, and until
the transaction with Insynq, the Company has been inactive, and
has been seeking a business opportunity in which it could become

The Company's common stock is traded in the over the counter
market under the symbol "XCLL".


S U B S C R I P T I O N   I N F O R M A T I O N
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Copyright 2000.  All rights reserved.  ISSN 1520-9474.

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