TCR_Public/000303.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, March 3, 2000, Vol. 4, No. 44  
                            
                  Headlines

AMERICA'S BEST: Hilco/Great American To Dispose of Inventory
AMERISERVE: Seeks to Sell Equipment Unit in $53M Deal
ATC GROUP: Hearing to Consider Confirmation of Plan
BOSTON CHICKEN: Fifth Motion For Extension of Exclusivity
CHERRY & WEBB: Files For Protection From Creditors

COMMERCIAL FINANCIAL: Court Approves Employ of Professionals
COSTILLA ENERGY: Files Disclosure Statement Relating to Plan
CROWN PAPER COMPANY: Moody's Downgrades Debt Ratings
CSK CORP.: Forecasts Annual Net Loss
EAGLE FOOD CENTERS: Moody's Lowers Ratings

EMPRESAS MUNICIPALES DE CALI: S&P Lowers Rtg to 'CCC'
IMPERIAL HOME: Committee Taps Young Conaway Stargatt & Taylor
INTEGRATED HEALTH: Duff & Phelps Confirms No Rating Watch Action
ICO GLOBAL: McCaw Plans to Combine ICO and Iridium With Project
INTEREX, INC.: Case Summary and 20 Largest Unsecured Creditors

IRIDIUM: McCaw Plans to Combine ICO and Iridium with His Project
JUST FOR FEET: Seeks Authority To Reject 34 Unexpired Leases
KCS ENERGY: Hearing on Retention Application
LOGAN GENERAL: Files Latest Plan to Get Out of Bankruptcy
MEDPARTNERS PROVIDER: Apria Objects To Disclosure Statement

ML CBO IX AND ML CBO XVIII: Moody's Takes Rating Action
NEW DEAL PROJECTS: Hearing to Dismiss Case Postponed
OPTEL INC: Seeks Extension of Exclusivity
RTI, INC.: Case Summary
SELECT SWITH: Hearing On Disclosure Statement Set

SUN HEALTHCARE: Committee Objects To Appointment of Committee
TALK AMERICA: Objection To Confirmation of Plan
TERMOEMCALI FUNDING CORP.: S&P Lowers Rating to 'CCC'
THIS END UP: Closing 65 Stores
TOWER: Mercury Air Describes Charge Due to Bankruptcy
WILLCOX & GIBBS: Schedules Confirmation Hearing for Plan

                  *********

AMERICA'S BEST: Hilco/Great American To Dispose of Inventory
------------------------------------------------------------
On March 1, 2000, Hilco/Great American Group was approved by the
U. S. Bankruptcy Court in Salt Lake City, Utah as the consultant
to dispose of the inventory in six of the America's Best
Furniture Warehouse stores in Colorado, Nevada, Utah and Idaho
which are to be closed.  Going out of business sales will
commence within the next two weeks at these six stores.  
America's Best will continue to operate its remaining three
locations and a cash raising sale will commence in those
remaining stores immediately. "We are pleased to have been
selected by America's Best Furniture Warehouse to help implement
its reorganization." stated Jeff Yellen, Vice President of
Hilco/Great American Group.  "We are the leading retail and
furniture liquidator in America.  We look forward to a tremendous
sale and to providing excellent value to consumers." Hilco/Great
American Group is a leading retail consulting, business
evaluation and asset disposition firm. Hilco/Great American Group
offers quick, flexible and creative solutions to retailers of all
sizes throughout North America with problematic inventory and
retail locations.


AMERISERVE: Seeks to Sell Equipment Unit in $53M Deal
-----------------------------------------------------
AmeriServe Food Distribution Inc. (AMSV) is asking the bankruptcy
court for authorization to sell its foodservice equipment
division to stalking horse bidder Arbor Private Investment Co.
LLC for $32.5 million cash plus the assumption of more than $20
million in liabilities. The division to be sold distributes
restaurant equipment and supplies to quick-service and casual
dining restaurants across the U.S. such as Burger King Corp.
(DEO) and TGI Friday's.


ATC GROUP: Hearing to Consider Confirmation of Plan
---------------------------------------------------
On February 15, 2000, the Fourth Amended Disclosure Statement of
the debtors, ATC Group Services Inc., and its affiliated debtors,
was approved by the court as containing "adequate information."

A hearing to consider confirmation of the Fourth Amended Plan
shall be held commencing on March 27, 2000 at 9:30 AM before the
Honorable Jeffry H. Gallet, US Bankruptcy Judge, Southern
District of New York.


BOSTON CHICKEN: Fifth Motion For Extension of Exclusivity
---------------------------------------------------------
To continue progress toward consummating their asset sale to
McDonald's Corporation and Golden Restaurant Operations, Inc.,
the Debtors put before Judge Case the request for a fifth
extension of exclusive period for the Plan.  The Debtors assert
that, given the pending transaction with Golden, it is of
significant economic importance that the status quo with respect
to plan filing and solicitation of acceptances be maintained.  
The Debtors believe that the mere existence of the McDonald's
Deal and the terms and conditions in it form a sufficient basis
for a further extension of the exclusivity periods.

In order to ensure that the plan process is orderly and
efficient, and that a plan is proposed in a timely manner without
delay and unneeded disruption, the Debtors believe that it is
necessary to continue the exclusivity periods for only a brief
period of time.

The Debtors have requested an extension of the time to assume or
reject certain non-residential real property leases until the
first date set for confirmation of the Debtors' plan of
reorganization based on Golden APA, or if no such plan is filed
by January 15, 2000, then until March 15,
2000.

The Debtors believe that if the exclusive periods are not
extended, the completion of the McDonald's Deal will be
negatively impacted. To conclude the drafting of a plan that
incorporates the McDonald's Deal and is agreeable to the 1996
Lenders, the Debtors seek an extension until January 7, 2000 of
the exclusive period to propose plans and an extension
until March 21, 2000 of the exclusive period to obtain acceptance
of such plans.

Granting the Debtors' motion for extension, the Court orders that
the exclusive period for the Debtors to file a plan of
reorganization be extended until January 7, 2000 and the
exclusive period for the Debtors to obtain acceptance of a plan
of reorganization be extended until March 21, 2000. Apart from
that, the Court orders that at any time from and after
September 24, 1999, the exclusive periods can be terminated ten
days following written notice from GE Capital and Bank of America
National Trust and Savings Association.  The Court further orders
that at any time from and after October 14, 1999, the exclusive
periods can be terminated ten days following written notice from
the Committee.


CHERRY & WEBB: Files For Protection From Creditors
--------------------------------------------------
The Providence Journal-Bulletin reports on March 2, 2000, that  
financially troubled Cherry & Webb -- the 112-year-old women's
specialty chain in New England -- filed in federal court for
protection from creditors under the U.S. Bankruptcy Code.

The 35-store chain, which struggled to survive in the competitive
retail market and changed owners and managers several times, said
in the filing that it plans to sell its assets.

The report states that Women's Wear Daily claimed that it has not
paid its vendors since November.

The company's local headquarters and distribution center are in
Attleboro, but its corporate headquarters is in New York.
Cherry & Webb stores are located in Newport, Barrington, Warwick,
East Providence, South Kingstown and Lincoln. The chain has 16
stores in Massachusetts, including Attleboro, North Dartmouth and
Swansea.  Cherry & Webb also has stores in Connecticut, New
Hampshire and Vermont.

An informal committee of unsecured creditors was formed in hopes
of negotiating a way to resolve the retailer's financial
problems, according to a company statement.

The company said that in the wake of continuing losses last
summer and fall, CWT had convened meetings with its major vendors
and sought ways to resolve its financial problems outside of a
Chapter 11 filing. The company explored many changes, with the
primary objective of putting together a business plan for a
smaller, reorganized company.

Proposals for sales of assets and acquisitions were considered,
but the company has been unable to obtain goods from its vendors
on credit terms. As a result, the stores no longer have adequate
inventory, the company said. The lack of inventory hurt year-end
and spring sales.

As of last month, Cherry & Webb employed 1,200. The privately
owned business was sold last March for an undisclosed price to
New York department store owner Irwin Gindi and other members of
his family.

Annual sales exceed $ 110 million.


COMMERCIAL FINANCIAL: Court Approves Employ of Professionals
------------------------------------------------------------
The Official Committee of Unsecured Creditors is authorized to
retain and employ Technology & Dispute Resolution Consulting,
Inc. as financial advisors in this case effective as of January
11, 2000.

By separate order, the Committee is authorized to retain Asset-
Backed Solutions, LLC as securitization consulting expert with an
effective retention date of January 24, 2000.


COSTILLA ENERGY: Files Disclosure Statement Relating to Plan
------------------------------------------------------------
Costilla Energy, Inc. (OTC Bulletin Board: COSEQ) today reported
that it has filed with the U.S. Bankruptcy Court for the Western
District of Texas, Midland Division, a Disclosure Statement
relating to the Company's proposed plan of reorganization, which
was filed on February 11, 2000, under Chapter 11 of the U.S.
Bankruptcy Code.  The Disclosure Statement describes the
Company's proposed reorganization plan, and contains certain
information about the Company's business operations and oil and
gas properties, including unaudited financial data for the year
ended December 31, 1999, and reserve estimates as of January
1, 2000.  The Disclosure Statement is subject to approval by the
Bankruptcy Court and a hearing has been set on the Disclosure
Statement for April 11, 2000.  After approval by the Bankruptcy
Court, the Disclosure Statement will be distributed to parties
with certain claims and interests in the Company in connection
with the solicitation of votes on the Company's proposed plan of
reorganization.  Costilla's proposed plan of reorganization is
subject to confirmation by the U.S. Bankruptcy Court.  There are
no assurances that the Company's plan of reorganization will be
approved or when the effective date of a plan will be set.

The Company intends to file with the Securities and Exchange
Commission a Form 8-K containing its Monthly Operating Report
which was previously filed with the U.S. Bankruptcy Court and
includes unaudited financial data for the period September 3,
1999 through December 31, 1999.

As of January 1, 2000, Costilla's proved reserves were estimated
to be 99.1 Bcfe, of which 79 percent was natural gas, with an SEC
present value at 10% (PV-10) of $93.2 million, based on year-end
NYMEX pricing at December 31, 1999 of $2.33 per Mcf of gas and
$25.68 per barrel of oil.  Of these estimated reserves, 63.8 Bcfe
were classified as proved developed producing, 13.6 Bcfe as
proved developed non-producing, and 21.6 Bcfe as proved
undeveloped.

Subsequent to January 1, 2000, the Company successfully drilled
and completed the Freeman 2 well in the Southwest Speaks Field of
Lavaca County, Texas.  Based upon initial results from this new
well, the Company has reclassified the Freeman 2 from proved
undeveloped to proved developed producing, and classified two
additional locations proximate to the Freeman 2 as proved
undeveloped.  If these additional reserves estimated by the
Company had been included in the reserve estimates described
above, the Company's proved reserves at January 1, 2000 would
have been 110.5 Bcfe with a PV-10 of approximately $103.8
million.

Costilla Energy, Inc. is an independent oil and gas company with
operations primarily in the Gulf Coast region of South Texas and
the Permian Basin of West Texas and Southeastern New Mexico.


CROWN PAPER COMPANY: Moody's Downgrades Debt Ratings
----------------------------------------------------
Moody's Investors Service lowered the debt ratings of Crown Paper
Company (secured bank facilities to Caa1) and its parent company
Crown Vantage. These rating actions are prompted by the
announcement that Crown Paper would fail to make a required
interest payment on March 1, 2000 on its subordinated notes, and
that the Crown Vantage bank lenders had temporarily waived a
default under the company's credit agreement relating to a
tangible net worth covenant. The ratings for both Crown Paper and
Crown Vantage notes reflect our expectation of the probability
that there could be a significant loss in principal.

Crown Paper Company

Senior secured bank debt, to Caa1 from B2

Senior subordinated notes, to Ca from Caa1

Crown Vantage:

Senior unsecured PIK notes, to Ca from Caa3.

Moody's notes that despite a period of rising paper prices,
increases in pulp and energy costs had more than offset the paper
increases, leading to continuing losses from operations. This in
turn has led to covenant violations, and the elimination of
adequate liquidity at the company. While Crown Vantage has
reached an agreement with a new third party provider for
additional financing, this agreement has not yet closed and its
liquidity position remains precarious. Moody's is further
concerned that cash generation will continue to be weak, and that
the respite provided by the new financing may not enable the
company to create a sustainable turnaround.

The revised ratings reflect Moody's view that the value of the
plant, either as a going concern or as asset sales will be
insufficient to cover the outstanding amount of debt. Moody's
believes that the bank outstandings which are secured by all of
the company's assets may suffer a minor loss, but that the senior
subordinated notes will likely suffer a material loss in face
value. The senior implied rating of Crown Paper Co. is Caa2.

Crown Paper Co. and Crown Vantage, headquartered in Oakland,
California, manufacturers and markets papers for printing,
publishing and specialty packaging and converting applications at
its 10 pulp and paper mills in the US and Scotland.


CSK CORP.: Forecasts Annual Net Loss
------------------------------------
CSK Corp. said it now sees a group net loss of 9.8 billion
yen ($88.9 million) for the year ending March 31, a sharp
deterioration from its profit projection of one billion
yen.

The leading Japanese information-services company also cut
its group sales outlook to 434 billion yen from 438 billion
yen, while group pretax profit was lowered to eight billion
yen from 16 billion yen.  CSK attributed the reductions to
sluggish business operations at an unlisted electronics
unit, CSK Electronics, and affiliate video-game maker Sega
Enterprises Ltd.

Sega Enterprises also lowered its earning estimates Monday,
citing weaker-than-expected sales of its Dreamcast video-
game machines.  Separately, CSK said it plans to offer 11.1
million shares to Japanese and overseas markets in a retail
offering. Of these, 10 million are newly issued shares and
1.1 million are existing shares currently held in private.
(The Asian Wall Street Journal  29-Feb-2000)


EAGLE FOOD CENTERS: Moody's Lowers Ratings
------------------------------------------
Moody's Investors Service lowered the rating of Eagle Food
Centers' $50 million senior secured facility, due April 15, 2000,
to B3 from B2 and the rating its $100 million senior unsecured
notes, due April 15, 2000, to Caa1 from B3. Moody's also lowered
the company's senior implied rating to Caa1 from B3, and
maintained a negative outlook. The rating action was prompted by
the company's decision to voluntarily file for bankruptcy court
protection under Chapter 11, as Eagle Food Centers attempts to
refinance its senior secured bank facility and senior unsecured
notes. Both of these debts come due in the next 45 days.

The rating on the revolving credit lender has significant
protection as a result of its secured status and is likely to
achieve significant recovery. The bank facility is secured by all
of the company's inventory, and availability under the line was
governed by a borrowing base formula. We expect that only a
modest amount may be outstanding under the line at the date of
the bankruptcy filing, despite the company's trade payables
having declined to about 50% of its inventory value as of October
31, 1999. Eagle Food Centers announced that it has entered into a
$50 million debtor in possession facility concurrent with the
bankruptcy filing. We expect that, subject to court approval, the
company will borrow under this new facility to retire any amounts
outstanding under the rated facility. Moody's will withdraw the
rating on the bank facility once such court approval is obtained.

The rating on the senior unsecured debt reflects our expectation
that noteholders will likely experience little impairment, but
that a moderate portion of the consideration being offered to
senior noteholders is common stock in the reorganized entity.
Eagle Food Centers also announced definitive lock-up agreements
with substantially all institutional holders of the senior
unsecured notes. This plan calls for a $15 million reduction of
the $100 million outstanding 8.625% notes, in exchange for $85
million of new 11% senior unsecured notes, as well as 15% equity
in the reorganized entity. However, institutional holders
accounted for only about 30% of par value outstanding. Moody's
negative outlook reflects our view that the relatively high
retail ownership of the senior unsecured notes increases the risk
that the company's proposed recapitalization plan may not be
approved in short order or as currently proposed.


EMPRESAS MUNICIPALES DE CALI: S&P Lowers Rtg to 'CCC'
-----------------------------------------------------
On March 1, 2000, Standard & Poor's lowered its foreign currency
corporate credit rating on Empresas Municipales de Cali S.A.'s
(EMCALI) to triple-'C' from single-'B'-plus. At the same time,
Standard & Poor's lowered its local corporate credit rating on
EMCALI to triple-'C' from single-'B'-plus. The ratings have been
placed on CreditWatch with negative implications.

The downgrade reflects the vote against a recapitalization plan
by Cali's city council on Feb. 28, 2000. Such a plan might have
supplied enough capital to counter EMCALI's near insolvency and
provided it with the management expertise to run the company
going forward. Without access to additional capital, EMCALI is
unlikely to pay all its financial obligations due to its poor
liquidity position. As a result of the vote, Cali's mayor has
requested the intervention of the Colombian Public Service
Superintendencia. The Superintendencia has not yet intervened, if
intervention takes place, which could take place as early as
today, the Superintendencia can operate the utility directly or
establish a cooperative relationship with EMCALI's management.
Neither the Superintendencia nor the government are required to
make a capital infusion to pay EMCALI's creditors. In the past,
the Superintendencia has taken control of small municipal
utilities with the goal of privatizing them, but none of them
were as large as EMCALI.

The Superintendencia might attempt to privatize the company,
which would be seen as a positive credit event because of a
potential capital infusion and new management expertise. While
the current hostilities in the Cali region concerning the
privatization of Interconexion Electrica S.A. (ISA) and the
recent car bombing of the TermoEmcali plant make broad investor
interest unlikely, Empresas Publicas de Medellin (EPM) has
expressed interest in purchasing all or part of EMCALI. Standard
& Poor's would view this as a positive credit event because EPM
is an efficient organization with the expertise required to run
EMCALI and has an adequate capital base. Additionally, this
acquisition might be perceived favorably by anti-privatization
groups in the Cali region. The major impediment to the
recapitalization plan has been the opposition of EMCALI's unions.

EMCALI is a diversified, municipally-owned utility providing
electricity, water and sewage, and local landline telephone
services to the city of Cali and to neighboring municipalities.

The following factors have severely affected EMCALI's
creditworthiness:

-- EMCALI is experiencing cash flow shortfalls due to increased
interest rates on local debt and the effect of the Colombian peso
devaluation on foreign debt;

-- The poor condition of the local economy has reduced
consumption and revenues. Accounts receivables have increased to
72 days in 1998 and 1999 from 38 days in 1997 because customers,
including the municipality of Cali, are not paying their bills;

-- Significant refinancing risk over the next five years, with
35% of total debt maturing by 2003; and

-- EMCALI needs to restructure the existing debt portfolio to
increase the average maturity and reduce exposure to floating
interest rates.
While these problems persist, EMCALI continues to exhibit some
positive factors that could be leveraged in the future:

    -- Dominant market position in each of the three business
segments;

    -- A transparent and supportive regulatory environment;

    -- Tariffs are set to allow for the recovery of costs and an
appropriate

rate of return;

    -- Tariffs are also automatically inflation-adjusted; and

    -- Initial success in its plan to streamline operations.
EMCALI reduced

its workforce by over 1,000 employees in 1998 and 1999, a 25%
reduction, while

improving the quality of service.

The CreditWatch placement anticipates a continued weakening of
liquidity and limited operational flexibility given the city's
internal politics, union pressures, and the weak economy,
Standard & Poor's said.


IMPERIAL HOME: Committee Taps Young Conaway Stargatt & Taylor
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of The Imperial
Home D‚cor Group, Inc., et al. seek to employ Young, Conaway
Stargatt & Taylor, LLP as co-counsel to the Official Committee of
Unsecured Creditors.


INTEGRATED HEALTH: Duff & Phelps Confirms No Rating Watch Action
-----------------------------------------------------------------
After reviewing the February 2, 2000 Chapter 11 bankruptcy filing
of Integrated Health Services, Inc. (IHS), Duff & Phelps Credit
Rating Co. (DCR) confirms that a Rating Watch action is not
necessary at this time for GMAC Commercial Mortgage Securities,
Inc., Series 1997-C2.  DCR rates only through the investment-
grade classes on this transaction, which are listed in the chart
below:

    Class            DCR Rating as of 3/1/00

    A-1                'AAA' (Triple-A)

    A-2                'AAA' (Triple-A)

    A-3                'AAA' (Triple-A)

    B                  'AA'  (Double-A)

    C                  'A-'  (Single-A-Minus)

    D                  'BBB' (Triple-B)

The Litchfield/IHS loan is secured by 41 skilled nursing homes
and two retirement centers, which are leased and operated by IHS
of Lester, Inc., a wholly owned subsidiary of IHS.  The loan
represents approximately 15.5 percent of the total pool balance
of GMAC 1997-C2.  The borrower, Litchfield Corp., has notified
GMACCM, the master and special servicer, that at this time, they
expect to continue paying timely debt service in full.

The facilities are located across 12 states with a concentration
in Florida and Louisiana.  Based on DCR's review of the
servicer's 1999 site inspections, the properties appear to be
well-maintained with little or no deferred maintenance.  Overall
occupancy is 87.3 percent (as of May 31, 1999).

Based on the operating results, the actual debt service coverage
ratio (DSCR) for IHS of Lester, Inc.'s most recent fiscal year
(ending August 31, 1999) is 1.42 times.  The DSCR, based on the
lease payment, is 1.0 times.  DCR's current DSCR, based on the
operating results, is 1.14 times as compared to the adjusted DSCR
at issuance of 1.30 times.  The decrease in DSCR can be
attributed to the implementation of the Medicare Prospective
Payment System (PPS), which has had a negative impact on the
portfolio's overall revenue.

At issuance, DCR's review of the Litchfield/IHS loan was based
solely on a real estate analysis of the nursing homes and not on
IHS' corporate rating. Going forward, DCR will continue to review
this loan strictly on a real estate basis.  DCR will be closely
monitoring the properties' occupancies, revenues and any updated
appraisals, as well as IHS' lease affirmation process.  To the
extent the operating performance of the properties continues to
decline, DCR may consider taking a rating action on this
transaction.

DCR will continue to monitor the Litchfield/IHS loan as well as
all loans in this transaction.  Updated performance statistics
for the transaction are available on DCR's Web site at
http://www.dcrco.com


ICO GLOBAL: McCaw Plans to Combine ICO and Iridium With Project
-----------------------------------------------------------------
Cellular phone pioneer Craig McCaw is planning to combine ICO
Global Communications Ltd. and Iridium LLC, both in chapter 11
currently, with his own proposed Teledesic project to create
global voice-and-data network, according to documents he has
filed in the bankruptcy cases of the two companies and
interviews, The Wall Street Journal reported. He hopes to acquire
the two companies and combine them with his satellite network to
provide telephone service and high-speed Internet access. McCaw
is leading a $1.2 billion bailout of ICO and is proposing to
invest about $600 million to take control of Iridium. In
documents filed in bankruptcy court last week, McCaw said he
planned to transfer ownership of ICO to a new company,
temporarily named New Satco. If he wins control of Iridium, he
said he would merge it into New Satco. He also said that it is
"possible" that Teledesic, which has raised $1.5 billion of an
expected $10 billion financing, also would be acquired by New
Satco. A Wit Soundview analyst said McCaw's plan makes sense and
that he's "treating [radio] frequencies like real estate. He
looks at these programs that just aren't working, so he'll buy it
and figure out how to make it work." The analyst compared this
deal to McCaw's 1995 takeover of Nextel Communications Inc.,
whose cell phones double as two-way radios. According to a term
sheet circulating among Iridium creditors, McCaw and primary
contractor Motorola Inc. have proposed to take a 78 percent stake
in a restructured Iridium for $600 million. About $260 million in
cash and $50 million in notes would got the banks that hold $800
billion in Iridium notes, and they would get a three percent
stake in the new Iridium. The remaining $600 million would become
working capital for the new Iridium. Some lenders are opposed to
this plan; they argue McCaw and Motorola are being allowed to buy
the system for very little money. One group of creditors filed
motions last month to block the takeover and sought permission to
sue Motorola for problems that contributed to Iridium's problems.
A spokesman for McCaw said the term sheet is out of date but did
not comment on the proposal to take over Iridium.


INTEREX, INC.: Case Summary and 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Interex, Inc. a Kansas Corp.
        8447 East 35th North
        Wichita, KS 67226

Petition Date: January 24, 2000   Chapter 11

Court: District of Kansas

Bankruptcy Case No.: 00-10163

Debtor's Counsel: REDMOND & NAZAR, LLP

Total Assets: $ 10 to 50 mill(estimate)
Total Debts:  $ 10 to 50 mill(estimate)

20 Largest Unsecured Creditors

HSBC Bank USA
Trade Services
140 Broadway
New York, NY 10005-1180               $ 10,534,756

Stratford Management
200 Cresent Court, Ste 1650
16th Floor
Dallas, TX 75201                       $ 5,000,000

Powertech Electronics, Inc.
10 F, N. 403, Sec 2
Chung Shan Road
Chung Ho City Taipei Hsien,
Taiwan Grace                           $ 1,842,042

Target Airfreight, Inc.
Dept. 60062
El Monte, CA 91735-0062                $ 1,026,227

Shinestar Enterprises Co., Inc.
PO Box 151, TAMSHUT
Taipei Hsien
Taiwan                                  $ 780,599

Primax Electronics, LTD
No. 669, Ruey Kuang Road
Naihu
Taipei, Taiwan Janet                    $ 753,636

LOVE BOX CO., INC.
PO BOX 870075
Kansas City, MO 64187-0075              $ 714,641

Select Sales
7750 West 78th Street
Bloomington, MN 55439                   $ 286,980

Bell Microproducts, Inc.
1941 Ringwood Ave.
San Jose CA 95131                       $ 284,736

Young Printing Co.
PO Box 78399
St. Louis, MO 63178                     $ 264,979

DAEC, Inc.
116 Brent Circle
Walnut, CA 91789                        $ 262,234

Alloyd Co., Inc.
PO Box 95488
Chicago, IL 60694-5498                  $ 252,625

Wyle EMG-Austin                         $ 248,081
WEM                                     $ 202,457
Double-H Technology Co., LTD            $ 191,580
Federal Express                         $ 149,674
Phoenix Communications                  $ 131,382
Arrow Electronics, Inc.                 $ 128,116
Strata, Inc.                            $ 110,175
Qtronix Corp.                           $ 108,737


IRIDIUM: McCaw Plans to Combine ICO and Iridium with His Project
-----------------------------------------------------------------
Cellular phone pioneer Craig McCaw is planning to combine ICO
Global Communications Ltd. and Iridium LLC, both in chapter 11
currently, with his own proposed Teledesic project to create
global voice-and-data network, according to documents he has
filed in the bankruptcy cases of the two companies and
interviews, The Wall Street Journal reported. He hopes to acquire
the two companies and combine them with his satellite network to
provide telephone service and high-speed Internet access. McCaw
is leading a $1.2 billion bailout of ICO and is proposing to
invest about $600 million to take control of Iridium. In
documents filed in bankruptcy court last week, McCaw said he
planned to transfer ownership of ICO to a new company,
temporarily named New Satco. If he wins control of Iridium, he
said he would merge it into New Satco. He also said that it is
"possible" that Teledesic, which has raised $1.5 billion of an
expected $10 billion financing, also would be acquired by New
Satco. A Wit Soundview analyst said McCaw's plan makes sense and
that he's "treating [radio] frequencies like real estate. He
looks at these programs that just aren't working, so he'll buy it
and figure out how to make it work." The analyst compared this
deal to McCaw's 1995 takeover of Nextel Communications Inc.,
whose cell phones double as two-way radios. According to a term
sheet circulating among Iridium creditors, McCaw and primary
contractor Motorola Inc. have proposed to take a 78 percent stake
in a restructured Iridium for $600 million. About $260 million in
cash and $50 million in notes would got the banks that hold $800
billion in Iridium notes, and they would get a three percent
stake in the new Iridium. The remaining $600 million would become
working capital for the new Iridium. Some lenders are opposed to
this plan; they argue McCaw and Motorola are being allowed to buy
the system for very little money. One group of creditors filed
motions last month to block the takeover and sought permission to
sue Motorola for problems that contributed to Iridium's problems.
A spokesman for McCaw said the term sheet is out of date but did
not comment on the proposal to take over Iridium.


JUST FOR FEET: Seeks Authority To Reject 34 Unexpired Leases
------------------------------------------------------------
The debtors, Just for Feet, Inc., et al. seek court authority to
reject non-residential real property leases including 33
specialty store leases and the lease for a store located in
Oxford, Alabama, a store which was never opened.  The leases
cover stores located in Alabama, Arizona, Florida, Georgia,
Kentucky, Louisiana, Maine, Missouri, Ohio, Pennsylvania, South
Carolina, Tennessee, and Virginia.

The debtors state that the sustained poor performance of the
stores warrants the termination of their operations and the
rejection of their leases.  Inventory in the specialty stores has
been reduced to a minimum as a result of typical post-holiday
promotional sales.  The remaining inventory has been moved to
other specialty store locations and the stores have been closed.

Keen has reviewed the leases and has concluded that due to the
disappointing result of the prior lease auction, marketing the
leases would be futile and the costs would likely exceed the
proceeds, therefore the debtor seek immediate rejection of the
leases.


KCS ENERGY: Hearing on Retention Application
---------------------------------------------
The Official Committee of Unsecured Creditors of KCS Energy,
Inc., et al. seek authority to employ and retain Gibson, Dunn &
Crutcher LLP as counsel for the Committee.

The firm will charge its customary hourly fees which range from
$525 per hour to $225 per hour for partners and associates
involved in the case.


LOGAN GENERAL: Files Latest Plan to Get Out of Bankruptcy
---------------------------------------------------------
An $18 million loan and a merger with a regional health care
alliance is expected to allow Logan General Hospital to emerge
from bankruptcy.

Logan General and its sister hospital, Guyan Valley, will join
Genesis Health consortium of St. Mary's, Cabell Huntington and
Pleasant Valley hospitals, according to a reorganization plan
filed Monday with the federal bankruptcy court in Charleston.

The system would in turn guarantee the $18 million loan from City
National Bank.

Logan General would become an equal partner in Genesis, with four
of its board members joining the group's board. Guyan Valley
would not be a voting member and would allow Logan General to
represent its interests.

Also, Logan General would share its recently built cancer center
with St. Mary's Hospital of Huntington. St. Mary's would invest
$200,000 toward the venture, the plan said.

This 132-bed hospital's plan follows last Friday's federal
indictment of its former longtime president, C. David Morrison.
The 24 counts, alleging embezzlement, money laundering, tax-
related offenses and other crimes, involve $ 4.7 million in
hospital money and funds earmarked for federal taxes.

Logan General filed for Chapter 11 bankruptcy protection in
October 1998 to avoid a court-ordered takeover.

The hospital reported $63.6 million in debts and $78.4 million in
assets, but said it lacked the money to pay creditors. Morrison
repeatedly insisted it was simply a "cash-flow problem."

Chapter 11 is the most common form of bankruptcy and frees a
company from the threat of creditors' lawsuits while it
reorganizes its finances.

Hospital officials blame the financial troubles on the hospital's
funding of a strip-mall project. The hospital has since sold
dozens of small residential and business properties unrelated to
health care, including the MarketPlace mall built under
Morrison's administration.

The hospital has also hired retired Monongalia General chief
Thomas Senker as a consultant. Senker has since been named Logan
General's interim president and chief executive officer.

Creditors and U.S. Bankruptcy Judge Ronald G. Pearson will review
the hospital's plan and decide whether to accept it.


MEDPARTNERS PROVIDER: Apria Objects To Disclosure Statement
-----------------------------------------------------------
Apria Healthcare, Inc., and Care Ambulance Services, Inc.,
creditors, object to the debtor's Disclosure Statement and the
debtor's motion for approval of Disclosure Statement.  The
creditors state that the Disclosure statement was not timely
filed and served.  They also state that there is confusion as to
which Disclosure Statement the debtor is seeking to get approved.

The creditors state the following deficiencies in the Disclosure
Statement and Plan:

The Disclosure Statement does not contain adequate information;
Classification and treatment of claims and interest - the debtor
has not provided the amount of asserted claims for each class of
claims identified by the debtor;

Distribution to creditors; Neither the Aggregate Asserted Claim
Amount nor the Aggregate Estimate Allowed Amount has been
provided for the various classes of claims - therefore it is
impossible to get a clear understanding of the total amount of
the claims asserted, and the percentage or amount of distribution
it may expect to receive.

Creditors can not determine the effective date of the plan;

Debtor has failed to provide financial projections of the debtor;

Cash flow projections for the term of the plan;

Debtor has failed to provide a feasibility analysis;

The disclosure statement also fails to provide a liquidation
analysis.


ML CBO IX AND ML CBO XVIII: Moody's Takes Rating Action
-------------------------------------------------------
Moody's Investors Service announced that it took rating action on
two collateralized bond obligations (CBOs). Moody's downgraded
the Class A notes, Class B notes, and Class C notes issued by ML
CBO IX Ltd. The Class A notes were downgraded from Aa2 to A1, the
Class B notes from Baa3 to Ba2, and the Class C notes from Ba2 to
B2. Moody's noted that the Notes continue to be on watch for
possible downgrade.

Moody's also downgraded the Class B-1 notes, Class B-2 notes, and
Class C notes issued by ML CBO XVIII. The Class B-1 notes were
downgrades from Baa2 to Ba1, the Class B-2 notes were downgraded
from Baa2 to Ba1, and the Class C notes were downgraded from B1
to Caa1. Following the downgrades, Moody's continues to keep the
Class B-1 notes, the Class B-2 notes, and the class C notes on
watch for subsequent downgrade.

Moody's said the downgrades have been prompted by a deterioration
in the credit quality of the collateral pool due to the downgrade
or default of several credits. The reduction in the credit
quality of the underlying assets has raised the credit risk
associated with the Notes.


NEW DEAL PROJECTS: Hearing to Dismiss Case Postponed
----------------------------------------------------
The continued hearing on the debtor's motion to dismiss the
Chapter 11 case has been adjourned from Wednesday February 23,
2000 to Wednesday March 22, 2000 at 9:30 AM in Room 629 of the US
Bankruptcy Court, One bowling Green,, New York, NY at the mutual
request of creditor Bash, LLC and the debtor.


OPTEL INC: Seeks Extension of Exclusivity
-----------------------------------------
The debtors, OpTel, Inc., et al. seek an extension of
approximately 120 days to their exclusive right to file a plan of
reorganization and to solicit acceptances thereto.

The debtors seeks entry of an order extending the time during
which the debtors shall have the exclusive right to file a plan
of reorganization through and including June 30, 2000 and
extending the time during which the debtors shall have the
exclusive right to solicit acceptances to the plan through and
including August 30, 2000.

The debtor state s that it is and has always been the debtors'
intention to sell certain of its cable related assets and to
effectuate a reorganization around its telecommunications assets.  
The debtors have retained Daniels & Associates to assist in the
marketing for sale of their cable related assets. The debtors
will shortly begin the process of accepting bids on certain of
their assets and then will proceed with assets sales subject to
higher and better offers.  As this process has only just begun,
the debtors submit that the formulation and filing of a plan of
reorganization is premature.


RTI, INC.: Case Summary
-----------------------
Debtor: RTI, Inc.
        301 Antone
        Sundland Park, NM 88063

Type of Business: Manufacturer of Air conditioning units

Petition Date: February 24, 2000  Chapter 11

Court: District of New Mexico

Bankruptcy Case No.: 00-10172

Total Assets: $ 5,536,418
Total Debts:  $ 8,732,798

20 Largest Unsecured Creditors

AES                               $ 58,249
Alliance Cap. Inv.               $ 104,000
American Express                  $ 36,664
Bank of America                   $ 31,751
Cardon & Cherry      Disputed    $ 130,329
Down East Trading                 $ 49,400
FASCO                             $ 70,359
Frellum Corporation               $ 26,511
Gibson Enterprises Inc.          $ 100,842
Heatcraft/Caradon    Disputed     $ 43,403
INSCO                             $ 81,099
Lawrence Kaplan                  $ 104,000
McLaughlin & Stern                $ 56,024
Michael Miller                   $ 104,000
National Copper                   $ 39,881
Scott, Hulse, Marshall            $ 26,205
Solid State Software              $ 39,808
Stanley Kaplan                   $ 104,000

Texas Capital        Inventory   $ 269,550
1200 Lakeway Drive            Secured:
Austin,TX 78734                $ 1,700,000

Theo Muller          Patent      $ 388,383
20 Peach Hill Rd              Secured:
Darien, CT 06920                 $ 200,000


SELECT SWITH: Hearing On Disclosure Statement Set
-------------------------------------------------
The hearing to consider the approval of the proposed Disclosure
Statement of Select Switch Systems, Inc. will be held on March
21, 2000 at 10:30 AM before the Honorable Mitchel Goldberg, US
Bankruptcy Judge, Courtroom 301, US Bankruptcy Court, 3420
Twelfth Street, Riverside, California.


SUN HEALTHCARE: Committee Objects To Appointment of Committee
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Sun Healthcare
Group, Inc., et al. objects to the appointment of an Official
Committee of Equity Security Holders.

The Creditors' Committee states that Peter C. Kern's motion is
premised entirely upon "Kern's overinflated assessment of the
impact of recently passed legislation on the debtors' financial
condition."  The Creditors' Committee states that any modest
benefit will be relatively minor in light of the substantial
amount of claims - over $2 billion - that exist against the
debtors.  "The $190 million that Kern estimates will be returned
to the debtors annually through the new legislation is, by all
accounts, totally unrealistic."

The Creditors' Committee states that the consideration of an
Official Equity Committee in these cases is highly inappropriate
because the debtors are and will remain hopelessly insolvent.  
The Creditors' Committee also states that the interests of
shareholders are adequately represented in these cases.


TALK AMERICA: Objection To Confirmation of Plan
-----------------------------------------------
The Official Committee of Unsecured Creditors of Talk America
object to confirmation of the debtor's second amended plan of
reorganization.

The Committee states that the plan can not be confirmed for the
following reasons:

The plan proposes to allow the existing holders of common stock
to retain their interest while no paying senior creditors' claims
in full, with interest.  Accordingly, the plan violates the
absolute priority rule.

The plan may not be confirmed because the existing holders of
common stock have failed to provide new value so as to support
their retention of their common stock ownership.

The plan is deficient because it does not provide for an auction
of the equity in the Reorganized Debtor as required by case law.

The plan is not feasible - as it doe4s not take into account
significant claims, and it is not shown how the general unsecured
creditors will be paid in full by 2003.


TERMOEMCALI FUNDING CORP.: S&P Lowers Rating to 'CCC'
-----------------------------------------------------
Standard & Poor's lowered its foreign currency rating on
TermoEmcali Funding Corp.'s (TermoEmcali) US$165 million senior
secured bonds due 2014 to triple-'C' from single-'B'- plus. The
outlook is negative.

The rating action follows the lowering of Empresas Municipales de
Cali S.A.'s (EMCALI) foreign currency corporate credit rating to
triple-'C' from single-'B'-plus. The near insolvency of EMCALI
leads Standard & Poor's to conclude that the utility is likely to
be unable to honor all its financial obligations to TermoEmcali.
EMCALI has been slightly behind in its payments to the project
due to its poor liquidity position. However, TermoEmcali has
adequate liquidity to continue to service debt for the near
future due to the availability of a fully funded, six-month debt
service reserve fund and the ability to draw upon a $11.3 million
LOC that was established to pay the project if EMCALI defaults.
Also, in the event of a nonpayment by EMCALI on its obligations,
TermoEmcali can evoke a Fiducia, which is equal to 2 times the
monthly capacity and energy payment. TermoEmcali can access this
on a monthly basis so long it is in effect. The Fiducia has not
been tested, but it is intended provide the project with a
substantial liquidity backstop if EMCALI defaults on its
financial obligations to the project.

Standard & Poor's lowered EMCALI's credit rating following a vote
against a recapitalization plan of EMCALI by Cali's city council
on Feb. 28, 2000. This recapitalization plan might have supplied
enough capital for EMCALI to meet its financial obligations and
provided it with the expertise to run the company going forward.
As a result of the vote, Cali's mayor has requested the
intervention of the Colombian Public Service Superintendencia.
The Superintendencia has not yet intervened, if intervention
takes place, which could occur as early today, the
Superintendencia can operate the utility directly or establish a
cooperative relationship with EMCALI's management. Neither the
Superintendencia nor the central government are required to make
a capital infusion to pay EMCALI's creditors. In the past, the
Superintendencia has taken control of small municipal utilities
with the goal of privatizing them, but none of them were as large
as EMCALI.

There is no guarantee that the Superintendencia will continue to
honor EMCALI's financial responsibilities under the power
purchase agreement (PPA). Without the PPA, the TermoEmcali
project would likely default on the bonds, given the current
power generation market in Colombia. The Superintendencia might
attempt to privatize EMCALI, which would be seen as a positive
credit event because of a potential capital infusion and the
infusion of new management expertise. While the current
hostilities in the Cali region over the privatization of
Interconexion Electrica S.A. (ISA) and the recent car bombing of
the TermoEmcali plant make broad investor interest unlikely,
Empresas Publicas de Medellin (EPM) has expressed interest in
purchasing all or part of EMCALI. Standard & Poor's would view
this as a positive credit event because EPM is an efficient
organization with a adequate capital base and the expertise
required to run EMCALI. Additionally, this acquisition might be
perceived favorably by anti-privatization groups in the Cali
region. The major impediment to the recapitalization plan has
been the opposition of EMCALI's unions.

TermoEmcali is a 234MW combined-cycle facility owned by
TermoEmcali I S.C.A. E.S.P. The owners of the project company
include EMCALI, subsidiaries of InterGen (InterGen is owned by
subsidiaries of Bechtel Enterprises and Royal Dutch Shell) and
Corporacion Financiera del Pacifico, a local Cali business group.
The project's rating reflects the uncertainty about the cash flow
stream that will come from the sale of capacity and energy to
EMCALI.

EMCALI is a diversified, municipally-owned utility providing
electricity, water, sewage, and local landline telephone service
to a population of about two million located in and around the
city of Cali.

Outlook: NEGATIVE

The negative outlook anticipates a continued weakening of
EMCALI's liquidity and ability to honor its payment obligations
to TermoEmcali, Standard & Poor's said


THIS END UP: Closing 65 Stores
------------------------------
TEU Holdings, Inc (the "Company") announced today that it will
seek Bankruptcy Court approval to close 65 of its 135 retail
stores, all operating under the trade name of This End Up.

The stores to be closed constitute less than 25% of the chain's
consolidated sales volume for the first eight months of its
fiscal year ending May 31, 2000. TEU Holdings and 122 affiliated
companies filed Chapter 11 Petitions in the United States
Bankruptcy Court for the District of Delaware on February 17,
2000.

The closing stores are primarily located in outlying regions,
either too small to support the Company's product lines or
unprofitable due to high operating costs. Consolidation of sales
to the Northeast market will reduce transportation and delivery
costs and improve profitability. It is expected that
the store closings will be completed by April 30, 2000.

Demand for the Company's products remains strong and management
anticipates the closing of these stores and other pending actions
will support a positive cash flow in the near future.


TOWER: Mercury Air Describes Charge Due to Bankruptcy
-----------------------------------------------------
Mercury Air Group, Inc. (AMEX: MAX) announced that it will record
a pretax charge of approximately $2.7 million in its fiscal third
quarter as a result of Tower Air, Inc.'s filing for bankruptcy on
February 29, 2000. Such charge will substantially reduce earning
for the quarter ending March 31, 2000.

The Company's existing Reserve for Bad Debts may materially
increase in the current and future periods due to increasing
sales based on higher fuel prices and will depend upon actual
experience. Fuel prices have risen steadily for the past year and
currently remain near their highs. Significantly higher fuel
prices for an extended period of time have a negative impact on
the aviation industry as it increases the airlines operating
expenses. Consequently, smaller, less well capitalized airlines
may be more seriously impacted.

Joseph A. Cryzyk, President and CEO of Mercury Air Group
commented, "As a result of Tower Air's bankruptcy filing, it will
now be our policy to continue supplying Tower Air on a prepaid
basis".

Mercury Air group, Inc. is a provider of aviation petroleum
products, cargo services, aviation information technology and e-
commerce services to international and domestic commercial
airlines, general aviation and U.S. government aircraft.


WILLCOX & GIBBS: Schedules Confirmation Hearing for Plan
--------------------------------------------------------
Willcox & Gibbs, Inc. announced that the hearing for confirmation
of its Chapter 11 Plan of Reorganization by the Bankruptcy Court
had been scheduled for April 3, 2000.  The Disclosure Statement
relating to the Plan of Reorganization will be mailed to
creditors this week.  If the Plan of Reorganization is
confirmed, Willcox & Gibbs expects to emerge from Chapter 11 in
mid-April 2000.

In connection with its reorganization, Willcox & Gibbs said that
it had entered into a commitment letter with Banc of America
Commercial Finance Corporation for a $26 million revolving credit
facility.  Implementation of the new credit facility is subject
to certain conditions, including negotiation and execution of
definitive documentation, completion by the lender of its due
diligence review and confirmation of Willcox & Gibbs' Chapter 11
plan of reorganization.

Willcox & Gibbs is the largest distributor in North America of
replacement parts, supplies and ancillary equipment to
manufacturers of apparel and other sewn products.  Willcox &
Gibbs is currently operating as a debtor and debtor in
possession under Chapter 11 of the Bankruptcy Code.


                  *********

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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