/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/000309.MBX T R O U B L E D C O M P A N Y R E P O R T E R Thursday, March 9, 2000, Vol. 4, No. 48 Headlines AGRIBIOTECH: Alfalfa Seed Growers May Sell Crops Themselves APPLE ORTHODONTIX: Orders Authorize Co-Counsel For Debtor ATCALL: Equalnet Offers $3.25 Million To Acquire Assets CAROL PUBLISHING: Seeks Turnover of Property CENTENNIAL COAL: Summit Seeks Change of Venue ELDER BEERMAN: Shareholder Files Complaint FILENE'S BASEMENT: Motion To Establish Bar Date GANTOS: To Close Doors GULF STATES STEEL: To File Reorganization Plan "Shortly" HURRICANE HYDROCARBONS: Special Warrants Bought Deal Finalized JUST FOR FEET: Continued Hearing To Convert To Chapter 7 JUST FOR FEET: GenX Buys Just For Feet Clothing and Shoe Assets LENOX HEALTHCARE: Wins Interim OK for Pact With Lenders LOEWEN: Alternative Dispute Resolution Procedures LONDON FOG: Seeks Authority To Enter Trademark License Agreements MANHATTAN INVESTMENT: Case Summary and 20 Largest Creditors MCA FINANCIAL: Seeks Authority To Sell Common Stock of Westmark MEDPARTNERS PROVIDER: Committee Objects To Disclosure Statement PENNCORP FINANCIAL: Hearing to Consider Approval of Sale of Stock RTI INC: Committee Taps Traub, Bonacquist & Fox SUPERIOR NATIONAL GROUP, INC.: MOODY'S DOWNGRADES RATINGS TEXAS HEALTH ENTERPRISES: Committee Taps Stutzman & Bromberg TULTEX: Order Authorizes Key Employee Retention Program VENCOR: Motion To Sell Burbank Hospital To Belmont for $5,725,000 ********* AGRIBIOTECH: Alfalfa Seed Growers May Sell Crops Themselves ----------------------------------------------------------- Alfalfa seed growers holding contracts with financially troubled AgriBio Tech Inc. may have the leeway to sell their 2000 crops themselves, a bankruptcy judge has decided. The growers may enter sales agreements if a company does not buy the crop contracts held by AgriBio Tech. The Nevada agricultural giant recently filed for protection from creditors under Chapter 11 of the federal bankruptcy laws. AgriBio Tech, one of the largest U.S. buyers of alfalfa seed, owes growers for the crop harvested last year. Upwards of 100 alfalfa seed growers in the Bighorn Basin have been seeking state loan assistance in the wake of the bankruptcy filing. In Montana, the company has 27 contracts for farmers to plant and harvest seed this year. AgriBio Tech's action in U.S. Bankruptcy Court left growers not knowing whether the company would accept and pay for the 2000 crop, once it's harvested. Under an agreement approved by growers and last week by U.S. Bankruptcy Judge Linda Riegle, AgriBio Tech will attempt to sell its grower contracts to another company. If contracts cannot be sold by July 1, then the growers themselves can sell their harvested seed. "It puts a little value on the crop which we were not sure had any value for awhile there," said Laurel-area farmer Shelley Wold, president of the Montana Alfalfa Seed Growers Association. APPLE ORTHODONTIX: Orders Authorize Co-Counsel For Debtor --------------------------------------------------------- By orders entered on February 22, 2000, the US Bankruptcy Court for the District of Delaware authorized the debtor, Apple Orthodontix, Inc., to retain and employ the law firms of Saul, Ewing, Remick & Saul LLP and Katten Muchjin Zavis as counsel for the debtor. ATCALL: Equalnet Offers $3.25 Million To Acquire Assets ------------------------------------------------------- Equalnet Communications Corp. (OTC Bulletin Board: ENET) submitted an offer to acquire all of the assets of ATCALL, Inc. of Arlington, Virginia, in exchange for the assumption, on a non- recourse basis, of approximately $3 million of secured debt and a guaranteed payment of $250,000 in Equalnet common stock. ATCALL, currently operating as a debtor in possession under Chapter 11 of the U.S. Bankruptcy code, resells long distance telephone service to residential and small business subscribers and also supplies prepaid telephone debit cards to major national retailers. ATCALL's total revenues for 1999 were approximately $12 million. Total investment in ATCALL since the company's founding in 1993 has been over $20 million. ATCALL has set a hearing in bankruptcy court for March 14, 2000, to consider offers to acquire the company. Mitchell H. Bodian, Equalnet's President and CEO, said that, "Equalnet's offer is the only credible offer and is in the best interests of ATCALL's creditors and other stakeholders. We could very effectively integrate ATCALL's operations into our own, thus eliminating substantial overhead in the combined companies. This transaction provides an example of Equalnet's intention to continue to grow its core business through opportunistic acquisitions of other financially distressed telecom companies, while simultaneously pursuing attractive and innovative market niches complementing our basic business." EqualNet is a nationwide supplier of telecommunications services headquartered in Houston, Texas. The Company provides a comprehensive array of discounted long-distance and other telecommunications services. CAROL PUBLISHING: Seeks Turnover of Property -------------------------------------------- As part of the debtor's Sale Application, authorizing it to conduct an auction sale of substantially all of its assets, including the Inventory and Publishing agreements, the debtor also sought an order directing all persons to turnover and release all films, plates and other related materials in their possession. The films and plates are necessary for the production of the books that may be purchased at the sale. Of 35 printers and manufacturers, the debtor is seeking turnover and release of film and plates from 14 printers and manufacturers not previously asked for such turnovers. The relief requested is, according to the debtor, critical for the sale process and is absolutely necessary to maximize the value of the debtor's estate. CENTENNIAL COAL: Summit Seeks Change of Venue --------------------------------------------- Summit Coal Company seeks a transfer of venue of this case from the US Bankruptcy Court, District of Delaware to the Western District of Kentucky. Previously, Frontier Insurance Company also filed a motion seeking the same transfer of venue, and Summit Coal Company, LLC joins in that motion. ELDER BEERMAN: Shareholder Files Complaint ------------------------------------------ One of Elder-Beerman Stores Corp.'s largest shareholders has filed a complaint and set a deadline for the company to boost its stock price. In a filing with the Securities and Exchange Commission Tuesday, PPM America Inc., accused the retailer of being "misleading" last week when it announced it had hired a Wall Street investment bank to advise on strategic options. PPM America said Elder-Beerman has used the bank since 1998. Elder-Beerman denied that but had nothing else to say about the filing. "We have it, we've read it and at this point, we're evaluating what and whether to respond," said Scott Davido, Elder-Beerman's chief financial officer. PPM America also contended that Elder-Beerman has ignored its suggestions for raising its stock price. PPM America is a Chicago-based investment company that owns 1.96 million shares, more than 13 percent of the company's stock. PPM America set a deadline of March 17 for Elder-Beerman to either sell the company or allow investors to sell their shares back to the company. Excessive inventory and competition forced Elder-Beerman to seek Chapter 11 bankruptcy protection in October 1995. It emerged from reorganization Dec. 30, 1997, transforming itself from a family- run business into an independent, publicly traded company. The independent department store chain operates in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. FILENE'S BASEMENT: Motion To Establish Bar Date ----------------------------------------------- Filene's Basement, Inc. and Filene's Basement Corp. seek a court order establishing a bar date by which proofs of claim and proofs of interest and certain requests for payment of administrative claims must be filed. The debtors propose that the court establish a bar date 50 days after entry of the court's order on this motion for all creditor s with a claim or interest arising before the petition date; and for requests for payment of post-petition administrative expense claims arising on or before February 2, 2000, excluding fees and expenses of professionals. GANTOS: To Close Doors ---------------------- Citing ongoing financial troubles, women's retailer Gantos Inc. is pulling the plug after nearly seven decades in business. The Connecticut-based company, which was founded in Grand Rapids, plans to liquidate merchandise at its 115 stores in 24 states. The decision to close the women's apparel stores came after creditors decided to begin liquidation, The Grand Rapids Press reported Tuesday. "The bank basically said we had to raise a certain amount of equity by a certain date or they would liquidate," Arlene H. Stern, Gantos CEO and president, told the newspaper Monday evening from the company's headquarters in Stamford, Conn. "We were working with a potential buyer, but the deal had to finalized today (Monday) and that didn't happen." Gantos filed for Chapter 11 bankruptcy protection in December for the second time in six years. Gantos' lenders, Foothill Capital Corp. and Paragon Capital LLC, agreed to a $40 million credit line in December, but Gantos was unable to prevent recurring losses and obtain adequate merchandise. When Gantos filed for Chapter 11 protection in 1993 it suffered a $43.1 million loss. It had recently opened a store in Atlanta and introduced a Web site. For the year ended Jan. 31, the retail chain lost $11.8 million, or $1.68 a share, on revenue of $150.7 million. GULF STATES STEEL: To File Reorganization Plan "Shortly" -------------------------------------------------------- Gulf States Steel Inc. will file a reorganization plan in the very near future, according to the integrated steel producer's lead bankruptcy counsel. On Feb. 29, the Gadsden, Ala.-based company won a 120-day extension of its exclusive periods to file a plan of reorganization and solicit plan acceptances. "We expect to file a plan shortly despite the extension of exclusivity," Alan Kolod of Moses & Singer L.L.P. told DBR. "Hopefully within the next week or two," he added. (Daily Bankruptcy Law Review; ABI 08-Mar-00) HURRICANE HYDROCARBONS: Special Warrants Bought Deal Finalized -------------------------------------------------------------- Hurricane Hydrocarbons Ltd. announces that the Special Warrants offering announced on February 16, 2000 has closed. The offering was underwritten by Canaccord Capital Corporation, as lead, along with Credifinance Securities Limited. Under this deal, the Underwriters sold 9,346,000 Special Warrants at a price of C$3.90 per Special Warrant for gross proceeds of C$36,449,400(approximately US $25 million). The proceeds from this underwriting are to be held in trust for the benefit of investors, subject to the satisfaction of certain conditions, including: - Implementation of Hurricane's Plan of Compromise and Arrangement under the Companies' Creditor Arrangement Act ("CCAA'') as sanctioned by the Court and approved unanimously by creditors on February 28, 2000; and - Approval and closing of the Shymkentnefteorgsyntez ("ShNOS'') acquisition. The above conditions must be satisfied before April 30, 2000 otherwise proceeds may be released back to the investors. Hurricane has agreed to file a prospectus within 120 days from the closing date to qualify the Common Shares issuable upon exercise of the Special Warrants. Each Special Warrant will entitle the holder to exchange the Special Warrants into one Common Share of Hurricane for no additional consideration. If a prospectus is not filed within 120 days from the closing date, each Special Warrant can be exchanged into 1.1 Common Shares. Proceeds from this offering will assist Hurricane in paying down the principal portion of the debt outstanding to its current noteholders by US$42 million, as announced on February 16, 2000. Hurricane's shares trade on the Toronto Stock Exchange under the symbol HHL.A and on the National Quotation Bureau (NQB) under the symbol HHLFQ. The company's website can be accessed at www.hurricane-hhl.com. JUST FOR FEET: Continued Hearing To Convert To Chapter 7 ----------------------------------------------------------------- The hearing originally scheduled for February6 7, 2000 at 1:00 PM to consider the motion of the Official Committee of Unsecured Creditors to Convert the debtor's chapter 11 cases to Chapter 7 cases, has been continued to March 24, 2000 at 10:00 AM before the Honorable Roderick R. McKelvie, US District Court Judge, US District Court for the District of Delaware, 844 King Street, Wilmington, Delaware. JUST FOR FEET: GenX Buys Just For Feet Clothing and Shoe Assets --------------------------------------------------------------- GenX Sports paid $7.2 million for $36 million worth of Just For Feet Inc. shoes and clothing; the company also will pay about $1.2 million for packing and shipping, according to The Birmingham News. Birmingham, Ala.,-based Just For Feet has not announced the results of the Feb. 15 bankruptcy court auction of its assets, but it is known that at least 50 different bidders were on hand. Footstar Inc. was the biggest buyer; it purchased 102 stores, the name "Just For Feet" and the chain's headquarters for $72 million. GenX President Ken Finkelstein, who now employs Don-Allen Ruttenberg, a former executive at Just For Feet, said Ruttenberg helped prepare the bid and that the deal was "fair." Finkelstein said, "They made sure they got the most money they could for the creditors." (ABI 08-Mar-00) LENOX HEALTHCARE: Wins Interim OK for Pact With Lenders -------------------------------------------------------- The U.S. Bankruptcy Court in Wilmington, Del., has entered an interim order approving a settlement between Lenox Healthcare Inc. and two of its largest secured creditors that collectively assert claims of more than $35 million. The order will become final if no objections are filed by March 14. As of Friday morning's docket, no objections had been filed. Any objections filed by the March 14 deadline will be considered by the court at a hearing scheduled for March 21. LOEWEN: Alternative Dispute Resolution Procedures ------------------------------------------------- The Alternative Dispute Resolution Procedures proposed by the Debtors drew scores of objections from individual creditors. In response to those objections, the Debtors made clarifications or modifications to the proposed ADR Procedures. They inform the Court that they have resolved many of the Objections, and are in the process of resolving some more. For all remaining objections, the Debtors believe they are without merit and should be overruled. LONDON FOG: Seeks Authority To Enter Trademark License Agreements ----------------------------------------------------------------- The debtors, London Fog Industries, Inc., et al. seek court authority to enter into trademark license agreements with Watson Brothers Limited and Freed & Freed International, Ltd. The debtor seeks authority to grant the Watson Brothers and Freed & Freed the right to use the London Fog Trademark. License fees for Watson Brothers are the greater of 5% of net sales and one- quarter of the minimum annual license fee which ranges from C$12,500 to C$15,000 over the term of the Watson Brothers Agreement. The Watson Brothers Agreement also requires Watson Brothers to maintain certain minimum annual net sales. The License Fees for Freed & Freed are the greater of 4% or 5% of net sales, depending on the accounting year and 1/4 of each of the minimum annual license fees for Men's and Women's Products which ranges from C$140,000 to C$200,000 for men's products and C$260,000 to C$450,000 for Women's products over the term of the agreement. MANHATTAN INVESTMENT: Case Summary and 20 Largest Creditors ----------------------------------------------------------- Debtor: Manhattan Investment Fund Ltd. c/o Helen Gredd, Esq. Lankler Siffert & Wohl LLP 500 Fifth Avenue New York, New York 10110-3398 Petition Date: March 7, 2000 Chapter 11 Court: Southern District of New York Bankruptcy Case No.: 00-10922 Debtor's Counsel: Stuart Hirshfield Dewey Ballantine LLP 1301 Avenue of the Americas New York, New York 10019-6092 (212) 259-8000 Total Assets: $ 10 to 50 mill Total Debts: $ 100 mill(more) 20 Largest Unsecured Creditors Securities and Exchange Commission 450 Fifth Street, NW Mail Stop S-8 Washington, DC 20549-0808 Peter H. Bresnan Litigation (202) 9424788 claim $ 350 mill more Credit Suisse London Nominees 2 Cabot Sq. London E14 40D John Larkin Tel: 011 44 171 8885066 Investor Fax: 011 44 171 888 claim $ 67,552,293 Public Institution for Social Security PO Box 24324 Safat 13104 Kuwait Sulaiman A. Al-Maraikhi Tel: 011 965 2410170 Investor Fax: 011 965 2418467 claim $ 30,149,806 Republic Nat'l Bank NY (Suisse) 2 Place du Lac 1204 Geneva Switzerland Mr. Aeschliman Tel: 011 41 22 7055555 Investor Fax: 011 41 22 7055289 claim $ 29,184,813 Bank Austria 1, AM HOF 2 Postf. 5800 A-1011 Wien Austria Mario Zehetbauer Tel: 011 431 711910 Investor and litigation Fax: 011 431 711966155 claim $ 27,637,488 The Nikko Securities Co. Ltd Tokyo Dia Bldg. No. 5 1-28-23, Shinkawa Chuo-Ku Tokyo, 104-8271 Japan Hideo Kawamura Tel: 011 813 32713561 Investor Fax: 011 813 55663859 claim $ 19,227,034 Julius Baer Securities Co Ltd c/o Bank Julius Baer 330 Madison Ave. New York, NY 10017 Germaine Boone Tel: 212 2973600 Investor Fax: 212 5577839 claim $ 15,482,151 Citibank Switzerland Seestr 25 PO Box 3760 8021 Zurich Switzerland Rowena Woollard Tel: 011 411 2263636 Investor Fax: 011 411 2058730 claim $ 14,887,629 Citco Global Custody NV - Cash World Trade Center Tower B, 16th Fl. Strawinskylaan 1629 Amsterdam Tel: 011 31 20 5722200 Investor Fax: 011 31 20 6628167 claim $ 14,839,587 The Public Institution for Social Seucirty PO Box 24324 Safat 13104 Kuwait Sulaiman A. Al-Maraikhi Tel: 011 965 2410170 Investor Fax: 011 965 2418467 claim $ 13,619,076 Bank of Bermuda (Luxembourg) SA - Hermes Strategies Fund 13 Rue Goethe-BP 413 L-2014 Luxembourg Mohamed Gueddach Tel: 011 352 4046461 Fax: 011 352 404646 333 $ 12,676,438 Endeavour Fund c/o Citco Fund (Bahamas) Bahamas Financial Centre 3rd Floor Shirley and Charlotte Streets Bahamas Annie Brunschwig Fax: 011 41 22 8186833 $ 10,087,952 The Bank of Bermuda (Luxembourg) SA 13 Rue Goethe-BP 413 L-2014 Luxembourg Mohamed Gueddach Tel: 011 352 4046461 Fax: 011 352 404646 Investor 333 claim $ 8,926,842 CITCO Global Custody (NA) NV c/o Citco Banking NV Kaya Flamboyan #9 Curacao Netherlands Antilles Rupert Walle Tel: 011 5999 7322322 Investor Fax: 011 5999 7368859 claim $ 8,396,076 Multiadvisors Fund Banque Generale du Luxembourg Avenue J.F. Kennedy L-2951 Luxembourg Sandra Milos Tel: 011 352 4042421 Fax: 011 44 171611 Investor 7800 claim $ 8,057,272 Estate of Leo Schwartz 310, 715-5th Avenue SW Calgary Albert Canada T2P 2X6 Bram Schwartz Tel: 403 283 0813 Investor Fax: 514 934 9932 claim $ 7,471,254 Banco Nominees(Isle of Man) Limited 12/13 Hill St. Douglas Isle of Man IM99 1BW Armanda Quirk Investor Fax: 011 44 1624 637778 claim $ 7,045,411 Banque Audi (Suisse) SA 2 Rue Massot BP 384 1211 Geneva 12 Switzerland Isabelle Gemes Tel: 011 41 22 7041111 Investor Fax: 011 41 22 7041102 claim $ 5,831,819 Swisstor & Co c/o Swiss Bank Corporation (Canada) 207 Queens Quay Weste Suite 780, Toronto Ontario, Canada Mr. S. Shepard Investor Fax: 1 416 3431900 claim $ 5,820,688 Bank Julius Baer & Co 330 Madison Ave. New York, NY 10017 Germaine Boone Tel: 212 2973600 Investor Fax: 212 5577839 claim $ 5,682,267 MCA FINANCIAL: Seeks Authority To Sell Common Stock of Westmark --------------------------------------------------------------- The debtors, MCA Financial Corp., and its debtor affiliates seek court authority to sell 14,236 shares of common stock of Westmark Group Holdings, Inc. MCA Wishes to sell its shares of Westmark common stock in an unsolicited broker's transaction. Market information as of the close of trading on February 22, 2000 indicates that the stock was trading at 1 and 9/16 dollars per share. MEDPARTNERS PROVIDER: Committee Objects To Disclosure Statement --------------------------------------------------------------- The Committee objects to the Disclosure Statement of Medpartners Provider Network, Inc., claiming that it is a mere draft. The Committee states that the debtor is seeking court approval of a disclosure statement that will differ from the version presently before the court. PENNCORP FINANCIAL: Hearing to Consider Approval of Sale of Stock ----------------------------------------------------------------- A hearing to consider the motion of the debtor, Penncorp Financial Group, Inc., for entry of an order authorizing the debtor's sale of the shares of the common stock of its subsidiaries, Security Life and Trust Insurance Company and Southwestern Life Insurance Company is scheduled for March 24, 2000 at 11:00 AM before the Honorable Peter J. Walsh, US Bankruptcy Judge in the US Bankruptcy Court for the District of Delaware, Marine Midland Plaza, 824 Market Street, Wilmington, Delaware. At the sale hearing the court will consider the debtor's request to sell the shares to Buyer for a cash price of $260 million subject to certain adjustments, or to a Competing Bidder submitting the highest and best offer. A higher or better offer must provide for aggregate consideration of at least $7 million in excess of the purchase price to be paid by Buyer under the Agreement. RTI INC: Committee Taps Traub, Bonacquist & Fox ----------------------------------------------- The Official Committee of Unsecured Creditors of RTI, Inc., debtor, seeks court authority to employ and retain Traub, Bonacquist & Fox LLP as its counsel in this chapter 11 case. The Committee seeks to retain the firm to provide the following services: To provide legal advice to the Committee with respect to its duties and powers in this case; To assist the Committee in its investigation of the acts, conduct, assets, liabilities, and financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of such business, and any other matter relevant tot he case or to the formulation of a plan; To assist and advise the Committe4e with regard to its communications to the general creditor body regarding the Committee's recommendations on any proposed plan of reorganization.; To assist the Committee in requesting the appointment of a trustee or examiner, should such action become necessary; To review and analyze all applications, orders, statements of operations and schedules filed with the court by the debtor or other third parties and advise the Committee as to their propriety, and, after approval by the Committee, object or consent thereto on its behalf. SUPERIOR NATIONAL GROUP, INC.: MOODY'S DOWNGRADES RATINGS --------------------------------------------------------- Moody's Investors Service has further downgraded the debt and financial strength ratings of Superior National Insurance Group, Inc. The senior bank facility rating was downgraded to Ca from Caa1. The ratings of trust preferred securities were moved to "c" from "ca", and the insurance financial strength ratings of the company's insurance subsidiaries were moved to Caa1 from B1. This rating action follows on the heels of the announcement by the California Department of Insurance that it was seizing control of Superior National. The DOI cited the company's "hazardous financial condition" and severe reserve deficiencies in explaining its actions. This rating action by Moody's follows a downgrade in early February when the potential for reserve deficiencies and the value of certain intangible items were called into question. Superior National is in violation of several covenants on its bank loan, and it is expected to default on payments on both its bank debt and the trust preferred securities. The company is expected to receive a qualified opinion from its independent auditors, and its affairs will be managed by the Department of Insurance's Conservation and Liquidation Office. The following ratings actions have been taken: Superior National Capital Trust I -- trust preferred securities to "c" from "ca"; Superior National Insurance Group, Inc. -- senior subordinated debentures to C from Ca; Superior National Insurance Group, Inc. -- guaranteed senior secured term loan facility to Ca from Caa1; Superior National Insurance Company -- insurance financial strength to Caa1 from B1; Superior Pacific Casualty Company -- insurance financial strength to Caa1 from B1; California Compensation Insurance Company -- insurance financial strength rating to Caa1 from B1; Commercial Compensation Insurance Company -- insurance financial strength rating to Caa1 from B1; Combined Benefits Insurance Company -- insurance financial strength rating to Caa1 from B1. Superior National Insurance Group, based in Calabasas, California, ranked as the second-largest writer of workers' compensation in the state of California, and the largest private sector workers' compensation writer in the state. At September 30, 1999 the company's shareholders' equity stood at $174 million and it had reported a net loss of $30 million for the year-to- date. TEXAS HEALTH ENTERPRISES: Committee Taps Stutzman & Bromberg ------------------------------------------------------------ The Official Committee of Unsecured Creditors for Health Enterprises of Michigan, Inc. applies to employ Stutzman & Bromberg as its counsel. The firm will provide the following services: To advise the Committee regarding matters of bankruptcy law and proceeding and its statutory powers and duties to unsecured creditors of debtor, including rights and remedies of the Committee and the unsecured creditors with regard tot he assets of and claims against the debtor and other creditors of the debtor's estate; To represent the Committee at any proceeding or hearing before the court and in any action in any other court where the Committee's rights or interests may be litigated or affected; To prepare any pleadings, motions, answers, notices, orders and reports that are required for the Committee to assist the court in the orderly administration of the debtor's estate; To advise, consult with, and assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of the debtor's business, and any other matter relevant to this case; To assist the committee in the negotiation of and/or opposition to a plan or plans of reorganization; and To render such other necessary advice as the Committee may require. The firm has agreed to represent the committee at a fee commensurate with it s normal hourly rates which range from $80 to $285 for its attorneys, paralegals and law clerks. TULTEX: Order Authorizes Key Employee Retention Program ------------------------------------------------------- The debtors, Tultex Corporation, et al., are authorized to implement a key employee retention program and a CEO Severance Plan. The debtors are authorized to implement the provisions of the Retention Program through March 31, 2000 only and limited to a maximum total payout of $816,000. VENCOR: Motion To Sell Burbank Hospital To Belmont for $5,725,000 ----------------------------------------------------------------- The Debtors own a property in Burbank, California that includes a closed acute care hospital. They are spending $10,000 per month for security and maintenance costs on the Burbank property. On April 1, 1999, they agreed to sell the Burbank Property to BelmontCorp, d/b/a Belmont Village, for $5,725,000. Belmont wants to build a 160-unit assisted living facility and/or senior residence and wellness center on the property. The sale agreement included a zoning/site approval contingency. Belmont exercised its rights under this contingency clause, and terminated the original contract in November 1999, because it had not yet obtained the necessary zoning and other project approvals. The Debtors and Belmont have now negotiated a new contract that extends the project approval deadline into February 2000. The new contract also allocates the earnest money among the parties if the sale collapses because Belmont still cannot obtain the necessary project approvals. Judge Walrath approved the amended Burbank contract. (Vencor Bankruptcy News Issue 11; Bankruptcy Creditor's Service Inc.) ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler, Edem Alfeche and Ronald Ladia, Editors. Copyright 2000. All rights reserved. ISSN 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *