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/raid1/www/Hosts/bankrupt/TCR_Public/000321.MBX T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, March 21, 2000, Vol. 4, No. 56 Headlines AMERICAN MOBILE SATELLITE: Maryland Trust Reports Holdings AMERICAN SKIING: Reports Quarter Results ANKER COAL GROUP: Struth Joins Team as CFO and Treasurer COLORADO GREENHOUSE: Order Authorizes Post-Petition Financing CORAM RESOURCE: Seeks Order Extending Exclusivity CREDIT SUISSE: Moody's Confirms Ratings DAEWOO INTERNATIONAL: Case Summary and Largest Creditors DAEWOO INTERNATIONAL: Files Chapter 11 in New York DATAPOINT: Reports Year-End Results ECHO SPRINGS: Case Summary FASTCOMM COMMUNICATIONS: Reports Quarter Results FRONTIER INSURANCE: S&P Lowers Rtgs; Credit Watch Negative GOLDEN OCEAN: Committee Taps Chanin and American Marine Advisors GRAHAM FIELD: Commitment Letter From Congress Financial GRAND COURT: Files Petition For Bankruptcy Reorganization HARVEY ELECTRONICS: Quarter Sales Increase 54% HURRICANE HYDROCARBONS: Agreement Reached on Cash Consideration INTEGRATED HEALTH: Committee Taps Klehr Harrison as Local Counsel IRIDIUM: Announces Termination of Commercial Service IRIDIUM: Merit Studios Announces Bid JAPAN ENERGY CORP.: To post 70B Yen special loss for FY99 JUMBOSPORTS: Seeks To Sell Real Property in Clearwater, Fla JUMBOSPORTS: Seeks To Sell Real Property in Glen Allen, Va LEASING SOLUTIONS: Exclusive Plan Filing Period Extended LOEHMANN'S: To File Proposed Plan NATIONAL ENERGY GROUP: Files Joint Disclosure Statement NEWCOR: Reports 25% Increase In Sales; Net Loss Up NEXUS TELOCATION SYSTEMS: Soros Fund Mgt Reports Stock Ownership OWENS CORNING: Acquisitions Lead to Sales Growth PHYSICIANS RESOURCE: Board Members Resign PRIMARY HEALTH: Objection To Asset Sale ROBERDS: Court Approves Retention of Deloitte & Touche SABRATEK: Order Authorizes Zolfo Coooper SUNTERRA CORP.: DCR Downgrades Ratings TELEGROUP INC: Court Confirms Plan TRANSTEXAS GAS: Emerges from Chapter 11 TULTEX: Files Financial Statements WESTMORELAND COAL: Year End Net Income of $8.6 Million WINSTAR COMMUNICATIONS: Moody's Assigns B3 To Senior Notes Meetings, Conferences and Seminars ********* AMERICAN MOBILE SATELLITE: Maryland Trust Reports Holdings ---------------------------------------------------------- Noah A. Samara as trustee of XM Ventures, a Maryland trust, holds 4,094,244 shares of the common stock of American Mobile Satellite Corporation, representing an 8.44% ownership of the outstanding common stock of the company. The Trust holds sole power to vote or dispose of the shares. On January 6, 2000, the Trust sold 25,000 shares of common stock of the company in a market transaction at a price of $19.0000 per share (inclusive of commissions). On February 9, 2000, the Trust sold an additional 660,000 shares of common stock of American Mobile Satellite in a market transaction at a price of $21.7817 per share (inclusive of commissions). Again, on February 10, 2000, the Trust sold an aggregate of 1,000,000 shares of common stock of the company in two market transactions at a price of $21.8083 per share (inclusive of commissions). On March 10, 2000, the Trust sold 1,000,000 shares of common stock of the company in a market transaction at a price of $40.1047 per share (inclusive of commissions). The reported purpose of the above transactions was to provide liquidity for the Trust. AMERICAN SKIING: Reports Quarter Results ---------------------------------------- For the quarter ended January 30, 2000, American Skiing Company had revenues of $126,627 on which it experienced a net loss of $15,124. In the six months ended that same date revenues were $149,982 and the net loss $43,078. For comparison, the same quarter and six months of 1999 saw revenues of $109,505, net loss of $10,779; revenues of $134,301 and net loss of $31,047, respectively. The company's liquidity is significantly affected by its high leverage. As a result of its leveraged position, American Skiing will have significant cash requirements to service interest and principal payments on its debt. Consequently, cash availability for working capital needs, capital expenditures and acquisitions is limited, outside of the availability under the Senior Credit Facility. Furthermore, the Senior Credit Facility and the Indenture each contain significant restrictions on the ability of the company and its subsidiaries to obtain additional sources of capital and may affect its liquidity. These restrictions include restrictions on the sale of assets, restrictions on the incurrence of additional indebtedness and restrictions on the issuance of preferred stock. ANKER COAL GROUP: Struth Joins Team as CFO and Treasurer -------------------------------------------------------- David D. Struth has joined Anker Coal Group, Inc. as its Treasurer and Chief Financial Officer. For the past 15 years, Mr. Struth held various accounting and tax positions with Herr-Voss Industries, Inc. (formerly known as Salem Corporation) located in Pittsburgh, Pennsylvania. Most recently he served as Corporate Controller and Secretary, and was responsible for accounting and finance matters, external reporting, and tax planning and compliance for Herr-Voss Industries and its subsidiaries. Several of the subsidiaries of Herr-Voss Industries were engaged in the design, engineering and manufacture of coal processing and underground mining equipment. Mr. Struth graduated from Indiana University of Pennsylvania in 1983 with a Bachelor of Science in Business Administration. He also graduated magna cum laude with a Master of Science in Taxation from the Graduate School of Business at Robert Morris College in 1988. Anker Coal Group, Inc. and its subsidiaries produce and sell coal used principally for electric generation and steel production in the eastern United States. COLORADO GREENHOUSE: Order Authorizes Post-Petition Financing ----------------------------------------------------------------- The US Bankruptcy Court for the District of Colorado entered an order on March 7, 2000 authorizing the debtors to obtain post- petition financing. The debtors are authorized to pay the lenders a closing fee of $20,000. By separate order the court authorized the employee severance and retention program. CORAM RESOURCE: Seeks Order Extending Exclusivity ------------------------------------------------- Coram Resource Network, Inc. and Coram Independent Practice Association, Inc. seek court authority to extend for a period of 120 days, the debtors' exclusive periods in which to file a plan or plans of reorganization and to solicit acceptances thereof. The debtors seek an extension from March 12, 2000through and including July 10, 2000 to file a plan, and provided a plan or plans are filed within such time, the debtors request that the solicitation periods be extended for an additional period of up to 120 days from May 10, 2000 through and including September 7, 2000. The Bar Date for filing proofs of claim does not expire until March 22, 2000. The debtors cannot accurately quantify the full extent of the estates' respective liabilities until all claims have been filed. The debtors will need time after the bar date in order to evaluate the merits of each individual claim. The ultimate determination of the debtors' relative liability to all classes of claimants will have significant impact on the specifics of any plan to be proposed by the debtors. Particularly, R-Net is not in a position to quantify its full liability to a class of claimants until after the Bar Date has passed. Although the debtors are liquidating rather than reorganizing, the debtors need additional time to prepare their proposed plan or plans. CREDIT SUISSE: Moody's Confirms Ratings --------------------------------------- Moody's Investors Service confirmed the ratings of three tranches of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 1997-C1. The securities had been on review for possible downgrade since April 20, 1999. The ratings confirmed include: Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 1997-C1, Class H, currently rated B2. Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 1997-C1, Class I, currently rated B3. Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 1997-C1, Class J, currently rated Caa2. DAEWOO INTERNATIONAL: Case Summary and Largest Creditors -------------------------------------------------------- Debtor: Daewoo Int'l(America) Corp. 85 Challenger Road Ridgefield Park, NJ 07660-2114 Type of Business: Involves trade-related activities, including the importing, exporting, financing and wholesale and general distribution of goods in North America and overseas. The Debtor is a wholly-owned subsidiary of Daewoo Corporation, a company formed under the laws of The Republic of Korea(the "Parent"). Petition Date: March 17, 2000 Chapter 11 Court: Southern District of New York Bankruptcy Case No.: 00-11050 Judge: Burton R. Lifland Debtor's Counsel: Albert Togut Togut, Segal & Segal LLP One Penn Plaza Suite 3335 New York, NY 10119 (212) 594-5000 Fax:(212) 967-4258 Email: kmclain@teamtogut.com Total Assets: $ 789,885,000 Total Debts: $ 789,714,000 20 Largest Unsecured Creditors Chase Manhattan Bank 270 Park Avenue, 18th Floor New York, NY 10017 Mr. Jojoon Chaey Short Term (212) 270-3287 Loan $ 127,000,000 Credit Suisse 12 East 49th St. New York, NY 10017 Short Term (212) 238-507 Loan $ 95,000,000 Bank of Tokyo Mitsubishi 1251 Avenue of the Americas New York, NY 100020 Mr Paul Kazuo Okura Short Term (212) 782-4397 Loan $ 49,000,000 Korea Exchange Bank 460 Park Avenue, 14th Flr New York, NY 10022 Mr Ha Seouup Bang Short Term (212) 838-4949 Loan $ 43,400,000 Seoul Bank 280 Park Avenue, West Bldg, 24th Floor New York, NY 10017 Mr Byung Ro Ahn Short Term (212) 687-6160 Loan $ 33,902,792 Hanvit Bank 245 Park Avenue, 41st Flr New York, NY 10022 Mr Kyung Juk Suh Short Term (212) 949-1900 Loan $ 31,840,877 Shinhan Bank 800 Third Avenue New York, NY 10022 Mr Hyo Jin Ahn Short Term (212) 371-8000 Loan $ 30,985,494 Cho Hung Bank 320 Park Avenue, 27th Flr New York, NY 10022 Mr Sun Hong Kim Short Term (212) 935-3500 Loan $ 27,000,000 Koram Bank 3435 Wilshire Blvd., #2430 Los Angeles, CA 90010 Mr Kyong-Pyo Shu Short Term (213) 389-880 Loan $ 19,700,000 Union Bank of California 350 California St., 7th Flr San Francisco, CA 94104 Ms Donna L Sepers Short Term (415) 765-3307 Loan $ 19,200,000 Banca Commerciale Italiana One William Street New York, NY 10004 Mr Antonio DiMaggio Short Term (212) 607-3862 Loan $ 18,000,000 Comerica Bank 500 Woodward Avenue Detroit, MI 48226 Mr Do Youn Choo Short Term (313) 222-7251 Loan $ 11,500,000 Bank of Hawaii 45 Broadway, 5th Flr New York, NY 10006 Mr Dan Docheff Short Term (212) 898-9186 Loan $ 10,000,000 Bank of New York CPO Box 4906 Seoul, Korea Short Term Mr C. W. Chung Loan $ 10,000,000 Abu Dhabi Int'l Bank 1020 19th St., NW Suite 500 Washington, DC 20036 Mr Nagy S Kolta Short Term (202) 842-7957 Loan $ 8,400,000 Oversea-Chinese Baning Corp Two World Financial Center 225 Liberty St New York, NY 10281 Mr Robert W Ng Short Term (212) 587-0101 Loan $ 8,000,000 Korea First Bank 410 Park Avenue, 8th Flr New York, NY 10022 Mr Jin Bae Kim Short Term (212) 593-2525 Loan $ 8,000,000 Industrial Bank of Korea 16 West 32nd Street New York, NY 10001 Mr Sun Kyu Kim Short Term (212) 268-6363 Loan $ 7,000,000 Yasuda Trust & Banking Co 666 Fifth Avenue, Suite 801 New York, NY 10103 Mr Tomohito Kameshita Short Term (212) 373-5704 Loan $ 4,000,000 California Cho Hung Bank 3000 West Olympic Blvd. Los Angeles, CA 90006 Mr Don-Keon Sohn Short Term (213) 380-8300 Loan $ 4,000,000 DAEWOO INTERNATIONAL: Files Chapter 11 in New York -------------------------------------------------- Daewoo International (America) Corp. announced last week that it filed for chapter 11 protection in the Southern District of New York, according to a newswire report. President H.K. Jhun said, "We have been engaged in global restructuring efforts involving various Daewoo companies since last fall. The vast majority of our creditors support these efforts...Two small bank creditors, however, have chosen to take legal action to secure preferential treatment that is fundamentally inconsistent with a global restructuring. The chapter 11 filing was commenced to preserve the integrity of the the global restructuring through protection afforded by the Bankruptcy Code and to confirm a reorganization plan." The filing is not expected to have any significant impact on business operations. In late January, the company announced that it had reached a non-binding agreement in principle with the Steering Committee of Foreign Lenders of Daewoo Group of Companies (comprised of nine banks) under which an offer will be made to purchase for cash certain outstanding indebtedness of Daewoo companies, including Daewoo International (America), held by non-Korean lenders. The company is a wholly owned subsidiary of parent Daewoo Corp. By the middle of last year the parent and its major affiliates owned more than $44 billion in funded debt to creditors inside and outside of Korea. Togut, Segal & Segal, New York City, filed the chapter 11 on behalf of the company. (ABI 20-Mar-2000) DATAPOINT: Reports Year-End Results ----------------------------------- At July 31, 1999 and for the year then ended, Datapoint Corporation experienced a net loss of $7,549 and it had a working capital deficiency of $19,533 and a net capital deficiency of $72,128 which raised substantial doubt about its ability to continue as a going concern. For the six month period ended January 29, 2000, the company experienced a net loss of $4,416 and it has a working capital deficiency of $24,581 and a net capital deficiency of $76,712. The company's ability to continue operations will depend on the availability of sufficient cash resources to meet its obligations in the near term. Without the successful consummation of the announced sale of the European Operations, and positive cash flow, if any, from future operations, there can be no assurances that the company's operations will continue. The European Operations represents 96% of the company's total revenue during 1999 and 98% of the company's total revenue for the quarter and six months ended January 29, 2000. Excluding the European Operations, the company's consolidated revenue and operating loss were $540 thousand and $1.4 million respectively, for the quarter ended January 29, 2000 and $1.l million and $3.2 million, respectively, for the first six months of fiscal 2000. Under the terms of the proposed sale to CallCentric, the European Operations will be purchased for $49.5 million cash, subject to adjustment in the event that the aggregate shareholders' deficit of the European Operations is more than $10.0 million. Under the CallCentric Letter of Intent, the company granted CallCentric an eight week period of exclusivity to conduct due diligence and negotiate the purchase of the European Operations. Consummation of the sale of the European Operations will require either (i) the consent of both a majority of the holders of the common stock, par value $.25 per share, of the company and two- thirds of the holders of the company's 8-7/8% Convertible Subordinated Debentures or (ii) should the company file for protection under the United States Bankruptcy Code, approval of the Bankruptcy Court. Since December 1, 1999 Datapoint has been in default of its interest payment obligation on its Debentures due June 1, 2006 which were issued pursuant to the Indenture of the company, dated June 1, 1981. The company has had informal discussions with certain of the large holders of Debentures concerning such default. According to the Indenture the trustee or holders of more than 25% of the outstanding Debentures may accelerate the debt due pursuant to the Debentures. If the proposed sale of the company's European Operations is not consummated as intended, management plans to continue restructuring efforts as necessary in the future which may include the reduction of personnel, closure of facilities, disposal of subsidiaries, or the discontinuance of product lines. ECHO SPRINGS: Case Summary -------------------------- Debtor: Echo Springs Water Co., Inc. 321 Fifth Avenue, 4th Floor New York, NY 10016 Type of Business: Bottled and distributed spring water Petition Date: March 17, 2000 Chapter 11 Court: Southern District of New York Bankruptcy Case No.: 00-11064 Debtor's Counsel: Harold S. Berzow Finkel Goldstein Berzow Ronsenbloom & Nash, LLP 26 Broadway, Suite 711 New York, NY 10004 (212) 344-2929 Fax:(212) 422-6836 Email:finkgold@aol.com Total Assets: $ 1,656,595 Total Debts: $ 2,288,321 20 Largest Unsecured Creditors Estate of Fred Kessner 69 Spring Street Ramsey, NJ 07446 Loan $ 1,199,960 Demon Group 580 Oakdale Street Staten Island NY 10312 Loan $ 351,771 Frank Cassata Trade debt $ 168,500 Crystal springs, Inc. Trade debt $ 58,000 John L. Huyck Loan $ 54,739 Elise Alexander Trust Loan $ 40,166 Citrin Cooperman & Co., LLP Trade Debt $ 38,000 William Ramires C/O McElroy Trade Debt $ 25,000 River Terminal Development Trade Debt $ 20,051 Sliski Service Co., Inc. Trade Debt $ 12,500 Ryder Truck Rental, Inc. Trade Debt $ 7,325 Burke Supply Systems Trade Debt $ 7,301 Mendon Leasing Corp. Trade Debt $ 5,074 Penske Truck Leasing Cor. Trade Debt $ 4,120 Portole Packaging Inc. Trade Debt $ 2,821 John M. & Susan Wheeler Trade Debt $ 2,700 United Rentals Trade Debt $ 2,644 Cigna Healthcare Trade Debt $ 2,510 A.C.S. Inc. Trade Debt $ 2,260 VideoJet Systems Int's Trade Debt $ 2,169 FASTCOMM COMMUNICATIONS: Reports Quarter Results ------------------------------------------------ Fastcomm Communications Corporation, during the quarter ended January 29, 2000, experienced a net loss of $1,437,826 on revenues of $1,175,418. In the same quarter of 1999 net loss was $1,247,528 on revenues of $1,701,812. During the nine months ended January 29, 2000, the company's net loss was $3,468,076 on revenues of $4,491,526. In the nine months ended January 30, 1999 net loss was $4,751,475 on revenues of $4,037,161. The company has changed its organizational structure and reduced headcount. As a result, year to date spending levels have declined. Further, legal and professional fees have declined sharply from that of the previous fiscal year. On November 17, 1999 the company initiated an accelerated warrant conversion program designed to raise capital to finance working capital and product expansion plans. Under the terms and conditions of this program, current warrant holders were offered either (a) a discount in the exercise price of 20% or (b) a discount in the exercise price of 10% and the issuance of a new warrant that will be exercisable for one-half a share of common stock at an exercise price of $2.50 per share. This program terminated on December 10, 1999. 852,898 warrants were exercised under Option A and 1,708,027 warrants were exercised under Option B. The company issued 854,014 warrants to those electing Option B. This program generated $3,049,000 in cash for Fastcomm. The company anticipates that it may require additional funding to meet operating requirements, future expansion and research and development expenses. It is anticipated that such funding will be generated by way of additional placements of equity, through research and development arrangements funded by third parties, by asset based lending facilities and through the exercise of in the money stock options and warrants. The company can give no assurance as to whether it will be able to conclude such financing arrangements, or that, if concluded, they will be on terms favorable to the company. There can be no assurance that the required increased sales and improved operating efficiencies necessary to return to profitability will materialize, or if they do, the company will be able to raise sufficient funding to finance its working capital needs. FRONTIER INSURANCE: S&P Lowers Rtgs; Credit Watch Negative ---------------------------------------------------------- Standard & Poor's placed its ratings on Frontier Insurance Group Inc. (Frontier) and related entities on CreditWatch with negative implications. At the same time, Standard & Poor's lowered its counterparty credit rating on Frontier to single-'B'-plus from double-'B'-plus. In addition, Standard & Poor's lowered its preferred stock rating on Frontier Financing Trust to triple-'C'-plus from single-'B'- plus. Standard & Poor's also lowered its counterparty credit and financial strength ratings on Frontier's operating subsidiaries (see list) to double-'B'-plus from triple-'B'-plus. The rating actions follow the release of Frontier's fourth- quarter financial results, which were substantially below Standard & Poor's expectations. The actions also reflect the group's weakened capitalization, coupled with weak earning levels and challenges to the group's competitive position. Standard & Poor's placed the ratings on CreditWatch because of concerns regarding future profitability, capitalization, and financial leverage. GOLDEN OCEAN: Committee Taps Chanin and American Marine Advisors ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Golden Ocean Group Limited, et al. filed an application for authorization to employ Chanin and Company LLC and American Marine Advisors as financial and industry advisors. The committee anticipates that the professionals will provide the following services: Analysis and recommendations concerning the debtors' operations, business strategy and competition in the relevant markets, as well as the industry dynamices affecting the debtors' Analysis and recommendations concerning the debtors' financial condition , business plans, operating forecasts, management and the prospects for future performance; Assistance in developing, evaluating, structuring and negotiating the terms and conditions of a plan of reorganization, financing, or other transaction including the value of any debtor or equity securities that may be issued by one or more of the debtors; Assistance in developing, evaluating, structuring and negotiating the terms and conditions of a plan of reorganization, financing, or other transaction including the value of any debtor or equity securities that may be issued by one or more of the debtors; Analysis of potential sales, divestitures or other disposition of all or part of the debtors' asserts; Raising new financing and/or refinancing for existing obligations of the debtors and their subsidiaries, including with respect to vessels that are currently owned by, contracted with or to-be- delivered to any of the debtors' subsidiaries; Contacting qualified investors or purchasers for the debtors; Assistance in negotiating the financial aspects of vessel financings, the obligations or any investment in or purchase of the debtors' assets to the extent that the committee is requested or deems it necessary to participate in such negotiations. Chanin/AMA is to be compensated by a flat fee of $125,000 for the first month of the engagement, $100,000 for the second month, and $75,000 per month for each month thereafter. There are also additional fees for a plan term sheet and secured senior financing and junior financing. The professionals will also receive a transaction fee of $1,000,000 if a transaction is consummated due to the firms' efforts. GRAHAM FIELD: Commitment Letter From Congress Financial ----------------------------------------------------------------- The debtors, Graham-Field Health Products, Inc., filed a commitment letter form Congress Financial Corporation confirming its commitment to provide as secured revolving credit and letter of credit facility to the debtors and certain of its subsidiaries of up to a maximum amount of $35 million subject to the terms and conditions set forth herein and in the Term Sheet. The Credit Facility is to be used to refinance the existing indebtedness of the company. GRAND COURT: Files Petition For Bankruptcy Reorganization --------------------------------------------------------- Grand Court Lifestyles, Inc. (Nasdaq: GCLI) (the "Company"), a fully integrated provider of both independent and assisted living services for seniors, announced that it filed a voluntary petition today with the U.S. Bankruptcy Court for the District of New Jersey to reorganize under Chapter 11 of the U.S. Bankruptcy Code. HARVEY ELECTRONICS: Quarter Sales Increase 54% --------------------------------------------- Harvey Electronics Inc. is a specialty retailer of high quality audio/video consumer electronics and home theater products in the Metropolitan New York area. Revenue from retail sales is recognized at the time goods are delivered to the consumer or, for certain installation services, when such services are performed and accepted by the customer. On December 2, 1999, the company signed a letter of intent with CoolAudio.com, Inc. to merge the two companies through the issuance of the company's common stock. On February 7, 2000, the company and CoolAudio mutually agreed to terminate their agreement in principle to merge, as the companies were unable to conclude the negotiation of final terms of the proposed merger. Sales for the first fiscal quarter ended January 29, 2000 totaled $9,854,484, an increase of approximately $3,446,000 or 54% from the same quarter last year when sales were $6,429,781. Net income for the first quarter of fiscal 2000 increased to $440,382, as compared to $330,670 for the same quarter last year. HURRICANE HYDROCARBONS: Agreement Reached on Cash Consideration --------------------------------------------------------------- Hurricane Hydrocarbons Ltd. and Central Asian Industrial Investments N.V. ("CAII") announced that they have reached agreement on the final determination of the amount of the Cash Consideration to be paid by Hurricane for the acquisition of the shares of OJSC Shymkentnefteorgsyntez ("ShNOS"). After taking into account the September 30, 1999 working capital positions of Hurricane and ShNOS, the terms of Hurricane's debt restructuring plan, Hurricane's private placement of equity and subject to adjustment based on the possible future settlement of disputed claims, the net amount of the Cash Consideration which was originally set at US$57 million, has been established at US$51 million. The Cash Consideration of US$51 million, together with 33% of the shares of Hurricane calculated after the acquisition, represents the price to be paid to the shareholders of ShNOS for 100% of the shares of ShNOS. If fewer than 100% of the shares are acquired, the price will be reduced accordingly. Hurricane and CAII expect the acquisition of ShNOS will close on or about March 31, 2000 which will also be the date on which Hurricane's Plan of Arrangement under the Companies' Creditors Arrangement Act will be implemented. 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. INTEGRATED HEALTH: Committee Taps Klehr Harrison as Local Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors sought and obtained Judge Walrath's permission to retain Klehr, Harrison, Harvey, Branzburg & Ellers LLP as its local counsel, nunc pro tunc to February 23, 2000. Joanne B. Wills, Esq., and Steven K. Kortanek, Esq., lead the engagement, billing, respectively, at $350 and $240.00 per hour for their services. IRIDIUM: Announces Termination of Commercial Service ---------------------------------------------------- Iridium LLC announced on Friday that it terminated the provision of commercial service as of 11:59 p.m. EST on Friday, March 17, 2000. The U.S. Bankruptcy Court for the Southern District of New York approved use by the Company of its secured lenders' cash collateral to commence the wind down of its operations and the sale of its assets. Motorola has advised Iridium that it intends to maintain the Iridium satellite system for a limited period of time to allow subscribers in remote locations to obtain alternative communications. IRIDIUM: Merit Studios Announces Bid ------------------------------------ On Sunday March 19, 2000, Chairman and CEO of Merit Studios, Michael John, transmitted an e-mail to the Attorneys involved in the Iridium Bankruptcy case. Merit on its behalf and Michael John representing a group of private investors offered a new business venture to save Iridium. Based on Merit's WormHole Technology, the company believes to have found an innovative way to use the satellite system of Iridium to create an additional data transmission network to supplement the Internet and data transmission in general. JAPAN ENERGY CORP.: To post 70B Yen special loss for FY99 --------------------------------------------------------- Japan Energy Corp. (5014) will post a 70 billion yen extraordinary loss for the year ending this month to cover pension fund liabilities as well as lump-sum disposal of unrealized losses on stockholdings in unprofitable subsidiaries and other restructuring costs, company sources said. The leading oil refiner expects a 40 billion yen net loss, compared with a 19.8 billion yen loss the year before. The company will cancel its annual dividend for the first time since listing in 1949. In fiscal 1998, it offered a 3 yen payout. To prevent further financial deterioration, the firm will reevaluate its land holdings at market value and transfer 60% of an 80 billion yen evaluation profit, or about 50 billion yen, to stockholders' equity. The extraordinary loss will comprise 30 billion yen to partly cover a 44 billion yen shortfall in retirement fund reserves and a total of 40 billion yen on stock evaluation as well as loan losses at subsidiaries and costs for scrapping facilities at an oil-product retailer. Japan Energy plans to integrate its refining and distribution operations with those of Showa Shell Sekiyu KK (5002) in new firms. Of the combined eight refineries, a core four to six plants will be operated by a new jointly owned company. (Nikkei 17-March-2000) JUMBOSPORTS: Seeks To Sell Real Property in Clearwater, Fla ----------------------------------------------------------- The debtors, JumboSports Inc. its debtor affiliate seek to sell real property located at 13555 49th Street, Clearwater, Florida for a total purchase price of $4 million. Any competing bidder must submit a bid no later than 5:00 PM, March 24, 2000. Any competing bid must start at $4.01 million and all subsequent higher bids must be in incremental increases of at least $10,000. JUMBOSPORTS: Seeks To Sell Real Property in Glen Allen, Va ----------------------------------------------------------------- The debtors, JumboSports Inc. its debtor affiliate seek to sell real property located at 9880 W. Broad Street, Glen Allen, Virginia for a total purchase price of $275,000 in cash and the assumption of ann existing mortgage in the approximate sum of $3.5 million held by Criimi Mae Services Limited Partnership. LEASING SOLUTIONS: Exclusive Plan Filing Period Extended -------------------------------------------------------- Leasing Solutions Inc. (LSN) on Tuesday won a 21-day extension of its exclusive period for filing a chapter 11 plan. According to Robert Greenfield of Stutman Treister & Glatt PC, counsel for the company, the U.S. Bankruptcy Court in San Jose extended the period during which the company has the exclusive right to file a plan through April 7. The court continued Tuesday's exclusivity hearing to April 4, at which time it will consider the company's request filed Feb. 23 for a two-month extension of the exclusive periods in which to file and solicit acceptances to a plan. The requested extension would extend the exclusive plan filing period from March 14 to May 15, and the exclusive period for soliciting votes to the plan from May 14 to July 13. (ABI 20-Mar-00) LOEHMANN'S: To File Proposed Plan --------------------------------- Loehmann's Inc. announced Friday that it intends to file a reorganization plan with the Bankruptcy Court for the District of Delaware within the next week, according to a newswire report. Loehmann's, a leading specialty retailer of designer women's and men's fashions at discounted prices, also will close an additional 11 stores as part of its reorganization. Those stores are located in Westbury, N.Y.; Greenbrook, N.J.; North Atlanta; Virginia Beach and Richmond, Va.; San Antonio; St. Louis; Downers Grove, Ill.; Brookfield, Wis.; and Fullerton and Palm Springs, Calif. The reorganized company will operate 44 stores in 16 states. (ABI 20-Mar-2000) NATIONAL ENERGY: Announces Filing of Joint Disclosure Statement --------------------------------------------------------------- National Energy Group, Inc. (OTC Bulletin Board: NEGXQ) announces the filing on March 14, 2000 of a Joint Disclosure Statement and Plan of Reorganization (the "Plan") in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division. In February 1999, the Company and its wholly owned subsidiary, Boomer Marketing Company, were placed under the protection of the Bankruptcy Court in a Chapter 11 proceeding. The Plan provides for (i) continuation of the Company's oil and gas business operations; (ii) payment in full of all secured claims, including the Arnos Corp. secured claim in the amount of $25 million, plus interest as may be due; (iii) payment of a cash sum not to exceed $10,000 to certain classes of claimants involved in litigation with the Company if such class accepts the Plan or, alternatively, if rejected by such class, cash in the amount of 56.5% of any Allowed Claim in such class; (iv) acquisition by Arnos Corp. of any Senior Notes, not otherwise held by Arnos Corp., in consideration of a payment equal to 56.5% of the face value of each such bond acquired, or, alternatively, a pro rata share of the Cash which Senior Noteholders would receive in a liquidation, plus a pro rata beneficial interest in a Creditor's Trust consisting of certain causes of action, two properties of the Company and $250,000 in cash; (v) payment of a cash sum equal to 75% of any Allowed Claim to trade creditors; (vi) retention by each of the preferred and common shareholder equity interests; provided that both the preferred and common equity interests may, at the option of Arnos Corp., be deemed cancelled and reissued to holders in a form to be determined by Arnos Corp.; (vii) purchase by Arnos Corp., or an affiliate of Arnos Corp., of additionally issued shares of the reorganized Company's common stock to the extent that Arnos Corp. or its affiliate shall own up to 49% of all the issued and outstanding Common Stock of the reorganized Company; and (viii) amendment to the Senior Notes Indenture. The Plan further proposes that the Company's existing officers and directors shall continue as the officers and directors of the reorganized Company until otherwise replaced as provided in the Company's bylaws. Neither the Company's Preferred shareholders, nor the Company's Common shareholders are entitled to vote on the Plan and have been deemed for all purposes to have rejected it in its entirety. A hearing in the Bankruptcy Court on the Disclosure Statement is scheduled for April 20, 2000. On February 28, 2000, the Official Unsecured Creditors Committee filed a Joint Disclosure Statement and Plan of Reorganization with the Bankruptcy Court which provides for (i) the possibility of a limited continuation of the Company's oil and gas business operations; (ii) the creation of a Creditors Trust to which will be transferred substantially all of the cash and cash equivalents remaining in the Company, the funds held in the Registry of the Court from the auction of the Company's properties, and all causes of action for the payment and primary benefit of certain allowed administrative, tax, priority and miscellaneous secured and unsecured creditors; and (iii) payment in full of the secured claims. The Committee Plan designates eight (8) classes of claims and equity interests. The Company's Senior Noteholders are deemed to be Allowed Claims in the Committee's Plan and are entitled to their pro rata share of the remaining proceeds in the Creditors Trust after payment of the secured claims. Following distribution of the Creditors Trust fund to the various claimants, the Committee retains the right to sell the Company's remaining assets or sell to third parties the rights of the Senior Noteholders to retain between 49% and 95% of the outstanding stock of the reorganized Company in the form of newly issued Additional Common Stock. In connection therewith, the Senior Noteholders shall have the right to elect all members of the Company's Board of Directors for a two (2) year term following the effective date of the Committee's Plan. The Committee's Plan further provides that all of the Company's Preferred Stock shall be converted into Common Stock at a conversion price of $.25 per share, and the existing common and preferred equity interests of the Company shall remain in existence. Neither the Company's Preferred shareholders, nor the Company's Common shareholders are entitled to vote on the Committee's Plan and have been deemed for all purposes to have rejected it in its entirety. A hearing in the Bankruptcy Court on the Committee Disclosure Statement is scheduled for April 17, 2000. The Plan, the Committee Plan and the Disclosure Statements associated therewith are subject to amendment, and there is no assurance that the Bankruptcy Court will approve either plan to be circulated for voting among the classes entitled to vote under the respective plans. The foregoing generally summarizes the respective plans, and interested parties are directed to review in their entirety the Joint Disclosure Statements and Plans of Reorganization filed with the Bankruptcy Court. On November 16, 1999, the Bankruptcy Court had previously entered an Order closing into an escrow with the Registry of the Court a sale of substantially all of the Company's oil and gas properties to Arnos Corp. for a purchase price of $96.25 million, subject to (i) confirmation of a plan of reorganization or (ii) in the event a plan of reorganization is not confirmed, a Bankruptcy Court ordered closing of the sale. Arnos Corp. is an affiliate of the Company's Series D Preferred stockholder, affiliated with three of the Company's seven directors, and the assignee of the Company's Bank Credit Facility having a current outstanding balance of $25 million. National Energy Group, Inc. is a Dallas, Texas based independent oil and gas exploration and production company. The Company's principal properties are located onshore in Texas, Louisiana, Oklahoma, and offshore in the Gulf of Mexico. NEWCOR: Reports 25% Increase In Sales; Net Loss Up -------------------------------------------------- Newcor Inc. is organized into three operating segments: Precision Machined Products, Rubber and Plastic and Special Machines. The Precision Machined Products segment produces transmission, powertrain and engine components and assemblies primarily for the automotive, medium and heavy-duty truck, and agricultural vehicle industries. The Rubber and Plastic segment produces cosmetic and functional seals and boots and functional engine compartment products primarily for the automotive industry. The Special Machines segment designs and manufactures welding, assembly, forming, heat treating and testing machinery and equipment for the automotive, appliance and other industries. The company recorded sales in 1999 of $258.5 million, an increase of $52.3 million, or 25.4%, from fiscal 1998 sales of $206.2 million, however, net loss for 1999 was $11,580 as compared to the net loss of $1,159 for 1998. Newcor is highly leveraged as a result of its notes. The company's ability to make scheduled principal payments of, or to pay the interest on, or to refinance, its indebtedness (including the notes) or to fund planned capital expenditures will depend on its future performance, which, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond its control. NEXUS TELOCATION SYSTEMS: Soros Fund Mgt Reports Stock Ownership ---------------------------------------------------------------- Soros Fund Management LLC beneficially owns 2,945,000 shares of the common stock of Nexus Telocation Systems Ltd. with sole voting and dispositive powers. This number represents 13.25% of the outstanding shares of the common stock of the company. George Soros and Stanley F. Druckenmiller share voting and dispositive power over the same shares. The shares are held for the account of QEG-NTS Holdings LLC, a Delaware limited liability company. Soros Fund Management LLC, a Delaware limited liability company, serves as principal investment manager to Quantum Emerging Growth Partners C.V., a Netherlands Antilles limited partnership and Quantum Partners LDC, a Cayman Islands exempted limited duration company, each of which owns 50% of the outstanding interest of QEG-NTS. As such, Soros Fund Management LLC has been granted investment discretion over portfolio investments, including the shares, held for the account of QEG-NTS. Mr. Soros is the Chairman of Soros Fund Management LLC. Mr. Druckenmiller is the Lead Portfolio Manager and a Member of the Management Committee of SFM LLC. OWENS CORNING: Acquisitions Lead to Sales Growth ------------------------------------------------ Owens Corning has grown its sales from $3.4 billion in 1994 to over $5.0 billion in 1999 and 1998. Acquisitions have been a significant component of that growth. Between 1994 and 1997, the company completed 17 acquisitions for an aggregate purchase price of over $1.2 billion. These acquisitions have broadened the products and services offered to home owners, home remodelers and home builders to include siding, accessories and other home exteriors products and have diversified the materials the company utilizes beyond fiber glass to include polymers such as vinyl and styrene, and metal and stone. During 1999 and 1998, Owens Corning formed many alliances and partnerships to complement its existing markets. Net sales for the year ended December 31, 1999 were $5.048 billion, up slightly from $5.009 billion in 1998. Net sales in 1997 were $4.373 billion. For the year ended December 31, 1999, Owens Corning reported net income of $270 million, compared to a net loss of $705 million for the year ended December 31, 1998 and net income of $47 million for the year ended December 31, 1997. The net loss in 1998 included a $1.415 billion pretax charge ($906 million after-tax) for asbestos litigation claims, a $243 million pretax charge ($171 million after-tax) for restructuring and other actions and a $359 million pretax gain ($217 million after-tax) from the sale of certain businesses. PHYSICIANS RESOURCE: Board Members Resign ----------------------------------------- Physicians Resource Group announced that David Meyer, M.D., Chairman of the Board, and John Shepherd, M.D. have resigned as members of the Board of Directors of the Company. Immediately prior to their resignations, Drs. Meyer and Shepherd chose Michael W. Yeary, the Company's President/Chief Restructuring Officer, to serve as a Director of the Company. Mr. Yeary shall serve as the sole Director of the Company. In addition, PRG announced that Lucius E. Burch, III, David Dulaney, M.D. and Mark Rosenberg had resigned their roles as senior consultants to the Board of Directors. "On behalf of the entire Company, I want to express our appreciation for the leadership and considerable accomplishments of these individuals over the past 16 months," Michael Yeary said. PRG is a debtor-in-possession in the United States Bankruptcy Court of the Northern District of Texas and is a provider of physician practice management services that provides management services to eye care practices and operates ambulatory surgery centers. PRIMARY HEALTH: Objection To Asset Sale --------------------------------------- University Hospitals Health System (UHHS) filed an objection Friday in bankruptcy court to the planned sale of PHS assets to the Cleveland Clinic, according to a newswire report. Claiming that PHS and the clinic have "entered into an unholy alliance to discourage competitive bidding" for the hospitals that are part of PHS, University Hospitals has asked the court to open the bidding process and put an immediate halt to any action that would strip St. Michael Hospital and Mt. Sinai-East of their current value. UHHS has offered $10 million for the purchase of the two hospitals as long as they are fully operational. (ABI 20- Mar-00) ROBERDS: Court Approves Retention of Deloitte & Touche ------------------------------------------------------ By order entered on March 10, 2000, by the US Bankruptcy Court, Southern District of Ohio, Western Division, the debtor, Roberds, Inc. is authorized to retain Deloitte & Touche LLP as auditors, accountants, real estate and tax consultants; and Deloittee Consulting LLC as reorganization consultants for the debtor. SABRATEK: Order Authorizes Zolfo Coooper ---------------------------------------- By order entered on March 7, 2000, the US Bankruptcy Court for the District of Delaware authorized the statutory committee of unsecured creditors to retain Zolfo Cooper, LLC as bankruptcy consultants and special financial advisors. SUNTERRA CORP.: DCR Downgrades Ratings -------------------------------------- Duff & Phelps Credit Rating Co. (DCR) has downgraded the debt ratings of Sunterra Corporation (NYSE: OWN) following the company's release of 1999 fourth quarter results. The Company reported revenue and earnings for the fourth quarter of 1999 (4Q'99) that were considerably lower than DCR's expectations and OWN has also jeopardized its liquidity. The securities affected by this downgrade include: $140 million 9.25 percent Senior Notes due 2006 'B' (Single-B) from 'BB' (Double-B) $200 million 9.75 percent Senior Subordinated Notes due 2007 'B-' (Single-B-Minus) from 'BB-' (Double-B-Minus) $138 million 5.75 percent Convertible Subordinated Notes due 2007 'CCC' (Triple-C) from 'B+' (Single-B-Plus) DCR also has withdrawn the 'BB+' (Double-B-Plus) rating of OWN's $117.5 million senior secured bank facility rating as facility is in the process of being replaced with a new $60 million facility. Once details are finalized, DCR will review the covenants and agreement. The ratings remain on Rating Watch-Down, where they were placed on January 21, 2000, following OWN's announcement that it would record an after-tax charge ranging from $38-45 million relating to delinquent receivables in 4Q'99. The charge has now been confirmed at $43 million. In addition to this charge, the Company recorded additional non-recurring after-tax charges of $12 million related to the writedown of certain noncore assets that are now held for sale as well as certain costs associated with terminated acquisitions and capitalized debt costs. DCR is concerned with the Company's near-term liquidity as the various charges have resulted in covenant violations in several of OWN's credit facilities. The Company is presently negotiating with its banks to seek waivers in order to maintain borrowing capacity and is also pursuing additional financing sources. OWN has agreed with Finova on a $25 million revolving mortgage receivables line and a $100 million take-out facility for the non-recourse sale of mortgages receivable. Further, OWN's 4Q'99 actual performance was far worse than the guidance that had been provided in late January. Hampering operating results during the quarter were a 1.4 percent decline in interval sales and substantially higher than expected advertising, sales and marketing costs, which represented 53.7 percent of quarterly interval sales compared with 45.9 percent during the first nine months of 1999 and 46.6 percent during 4Q'98. Leverage remains very high and there are limited prospects for improvement in the near-term. The Company is targeting the middle of April 2000 for the filing of its 1999 results. DCR plans to meet with management shortly thereafter to resolve the Rating Watch-Down status. DCR's review will include, among other things, an evaluation of the Company's action plans to obtain adequate liquidity to fund its operations, as well as its strategies for rejuvenating its operating earnings and reestablishing its credibility with the investment community. TELEGROUP INC: Court Confirms Plan ---------------------------------- By order entered on March 9, 2000, the Honorable William F. Tuohey, US Bankruptcy Court for the District of New Jersey entered an order confirming the first amended Chapter 11 liquidating plan of reorganization of Telegroup, Inc. TRANSTEXAS GAS: Emerges from Chapter 11 --------------------------------------- TransTexas Gas Corp. announced Friday that it has emerged from bankruptcy protection and that it has amended its existing debtor-in-possession credit agreement and revolving accounts receivable credit facility, cancelled existing securities and issued new securities, according to a newswire report. The company explores, produces and transports natural gas and oil, primarily in South Texas (ABI 20-Mar-00) TULTEX: Files Financial Statements ---------------------------------- Tultex Corp. says it has more assets than debts, but a lawyer for some creditors disagreed and predicted the bankrupt clothing company will be unable to pay many of its debts, including those to former workers. The Martinsville-based company filed financial statements U.S. Bankruptcy Court in Lynchburg for the first time since it entered bankruptcy proceedings three months ago. Tultex listed assets of $427.4 million and debts of $338.7 million. Company officials could not be reached Friday to explain why the company appeared to be solvent and yet has been shut down for liquidation purposes. The company has probably inflated the stated value of some assets to maximize the price it receives as it is broken up and sold, said Roanoke bankruptcy lawyer Chip Magee, who is involved in the case as lead lawyer for unsecured creditors. Laid-off workers, who didn't get paid for unused vacation days, won't be able to collect what they're owed until banks and bondholders are paid in full, Magee said. "There's going to be a substantial deficiency," Magee said. The company has laid off more than 1,500 workers in the Martinsville area since filing for Chapter 11 bankruptcy in December. WESTMORELAND COAL: Year End Net Income of $8.6 Million ------------------------------------------------------ Westmoreland Coal Company (Amex: WLB) reported net income from continuing operations of $8.6 million for the full year ended December 31, 1999 compared with net income from continuing operations of $3.3 million for 1998. Impacting 1999 results were an expected decrease in revenues that resulted from reduced sales at Westmoreland Resources, Inc. ("WRI") because of an eight week scheduled maintenance outage at a major customer's facility, anticipated losses at Dominion Terminal Associates ("DTA") due to a full year of continued decline in the export coal market, an expected reduction in equity in earnings from Westmoreland Energy compared to 1998 due to the sale of the Rensselaer Project, and expenses of almost $22 million connected with retiree medical obligations, or "heritage costs." Results for 1998 were negatively impacted by approximately $10.0 million in reorganization fees, and a $12.2 million charge related to the company's investment in DTA. Positively affecting net income from continuing operations was the strong performance of the Company's remaining independent power operations and significant interest income. Equity in earnings of independent power projects totaled over $34.0 million and included a gain of approximately $17.0 million from the sale of the Rensselaer project during the first quarter. WRI produced approximately 5.5 million tons of coal. After recognition (for financial statement presentation purposes) of $1.8 million for undeclared, unpaid preferred dividends, net income applicable to common shareholders in 1999 was $6.9 million or $0.97 per share compared to a net loss applicable to common shareholders of $11.4 million, or $1.64 per share in 1998. Positively affecting the calculation of net income applicable to common shareholders were the two tender offers for preferred (depositary) shares conducted in 1999. The tender offers resulted in the retirement of 366,292 shares of preferred stock (1,465,167 depositary shares), and a reduction of accumulated but undeclared, unpaid preferred dividends from $20.8 million immediately prior to the first offering to $8.9 million immediately following the second offering, and a reduction of the ongoing quarterly preferred dividends from $1.2 million to $444,000. Shareholders' equity was also reduced by $27.8 million as a result of the two offerings. As of December 31, 1999, the Company had shareholders' equity of $3.1 million compared to shareholders' equity of $21.8 million as of December 31, 1998. Cash used in operating activities was $23.5 million in 1999 compared to cash provided of $55.9 million in 1998. 1999 was impacted by the payment of pre-petition liabilities, catch-up payments for retiree health benefits and the payment of reorganization and proxy contest expenses. In contrast, 1998 includes cash received from the Rensselaer restructuring at WEI and from the termination of the salaried pension plan, and reflects the deferral of health care benefit payments during bankruptcy. Cash used in financing activities in 1999 was primarily for the purchase of preferred stock. Consolidated cash and cash equivalents as of December 31, 1999 totaled $20.1 million, including $12.1 million at WRI. Cash at WRI, an 80%- owned subsidiary, is available to the Company through dividends. The Company also had restricted cash, which was not classified as cash or cash equivalents, of $14,896,000 at December 31, 1999. The Company will hold its Annual Meeting of Shareholders beginning at 10:00 a.m. on Friday, June 9, 2000 at the Antlers Adam's Mark Hotel in Colorado Springs, Colorado. Westmoreland expects to file its 1999 Form 10-K with the SEC on or about March 23, 2000. Westmoreland Coal Company is a diversified energy company headquartered in Colorado Springs, Colorado. It is currently engaged in western Powder River Basin coal mining through its 80%-owned subsidiary Westmoreland Resources, Inc. and independent power production through its wholly owned subsidiary Westmoreland Energy, Inc. The Company also holds a 20% interest in Dominion Terminal Associates, a coal shipping and terminal facility in Newport News, Virginia. WINSTAR COMMUNICATIONS: Moody's Assigns B3 To Senior Notes ---------------------------------------------------------- Moody's Investors Service has assigned a B3 rating to the company's proposed senior notes due 2010, consisting of a $1.75 billion issue and a euro 250 million issue. Moody's has also upgraded the senior implied rating from B3 to B2, and upgraded the senior unsecured rating from Caa1 to B3. A rating of B2 has been assigned to Winstar Communications II, Inc.'s proposed $1 billion senior secured credit facility. Finally Moody's has assigned a "caa" rating to the various existing preferred stock issues. The outlook is stable. The upgrade of the senior implied rating recognizes the improvements in the company's operations, and the growth and increasing stability of its customer base, product set and physical network. Additionally, junior capital raised through financial and strategic partners and through the sale of network capacity has created financing flexibility necessary to fund the business plan over the next two years. Still, the company faces several risks. Moody's is concerned whether future developments in radio access can continue to match the efficiency and capacity levels that are developed in other communications access methods. Difficulties in negotiating building access on reasonable terms will continue to restrict growth potential. Business expansion areas, such as the company's new European markets and Internet-based services have the potential of drawing management and resources away from the core operations. Additionally, leverage will remain high. Given the rate of new market development we do not expect that cash flow generation will be sufficient to generate a debt-to-EBITDA ratio of five-times for approximately five years. The difference between the credit facility rating of B2 and the bonds at B3 reflects the structural differences and relative size of the secured debt compared to the unsecured. The credit facility will be issued by a subsidiary of Winstar's and guaranteed by Winstar and the operating companies, supported by a secured interest in the assets. The renegotiated vendor facility also provides for purchase-money security interests and a second position behind the credit facility (as an unsecured creditor) relative to other assets and cash flow. In contrast, the bonds are to be issued at the holding company without benefit of support, making them clearly subordinated in terms of claim on corporate assets and cash flows. While the relative size of the committed debt senior to the bonds puts significant downward pressure on the B3 bond rating, we expect that the company will continue to attact additional junior capital. Therefore, although the senior secured facilities could be fully utilized, we expect that a significant portion of future funding needs will be met with bonds and junior capital. This will result in a balance of senior secured debt to total debt consistant with the single rating notch difference between the senior implied B3 rating and the senior unsecured B3 rating. The new facilities and issuances are part of an effort to simplify the capital structure, improve the liquidity of the issues and improve the company's ability to access the capital markets. The proceeds from the $2 billion proposed notes, the $900 million convertible preferred from financial and strategic partners and $600 million drawn from the new credit facility will redeem $2.1 billion in existing bonds and vendor debt and $240 million in series "C" preferred stock. Approximately $900 million will be available for operating needs. The company will have $400 million in credit facility and $1 billion in the Lucent vendor facility as additional available liquidity. The vendor facility provides for an expansion to $2 billion, however triggering conditions make $1 billion of that effectively uncommitted, in our view. Winstar provides communications services to small and medium sized businesses, using fixed-wireless radios to access the customer's premises. While equipment manufacturers' development of the point-to-multipoint radios have been much slower than expected, Winstar has found good service demand for its point-to- point radio services. Aggressive marketing which includes discounts for multiple-service bundles and multi-year contracts has accelerated customer growth and stability of the customer base. Still, point-to-multipoint radios and future generation radio improvements will be necessary to keep up with the growing broadband demands of customers. Although optical fiber construction into office building is far from pervasive, it continues to increase. Other technologies such as laser transmission through the air are at an early development stage, but could be meaningful in the medium term. It appears that point-to-multipoint radios are ready for scaled commercial deployment, which will improve Winstar's already good economics. Additionally, these radios should provide for higher capacity, dynamic capacity allowing Winstar to provide higher speed data services to a broader base of customers, for instance. The point-to-point and point-to-multipoint radios provide the company with operational flexibility in that they can be used in a complimentary way within a market to best meet the needs of that local situation. With Winstar's increasing strength in selling, provisioning and managing customers, we could imagine the company adopting various access technologies that might be developed in the future, although they are currently very focused on exploiting the economic advantages of their 38 GHz radio spectrum. It is clear that Winstar has dramatically improved its back office and network management and operations over the last 18 months. This will be important in order to manage the customer growth and the increasing complexity of the network. Over the next couple of years, Winstar will accept delivery of national long distance fiber from Williams Communications and local fiber in 50 domestic markets and 10 international markets from Metromedia Fiber Networks. Network traffic increases due to market expansion and increased penetration, combined with carrying more of the traffic on Winstar's own network, should lead an acceleration in cash flow growth. While only about 35% of the company's traffic currently travels over radio, approximately 60% of the new customers are accessed by radio due to growing building access agreements, further network development and improvements in targeting the sales force. We expect these improving trends to continue. Upon completion of the planned tender of several debt and preferred issues, Moody's will withdraw the current ratings of Caa1 on the senior notes and B3 on the senior secured notes. Winstar Communications, Inc. provides communications services in 60 US markets and data services in 10 international markets, incorporating high-frequency radios in the network to provide the customer access link. Winstar is headquartered in New York. Meetings, Conferences and Seminars ---------------------------------- March 23-25, 2000 SOUTHEASTERN BANKRUPTCY LAW INSTITUTE, INC. 26th Annual Southeastern Bankruptcy Law Institute Marriott Marquis Hotel, Atlanta, Georgia Contact: 1-770-451-4448 March 23-25, 2000 ALI-ABA Partnerships, LLCs, and LLPs -- Uniform Acts, Taxation, Drafting, Securities and Bankruptcy Doubletree Paradise Valley Hotel, Scottsdale, Arizona Contact: 1-800-CLE-NEWS March 30-April 2, 2000 NORTON INSTITUTES ON BANKRUPTCY LAW Norton Bankruptcy Litigation Institute II Flamingo Hilton Hotel, Las Vegas, Nevada Contact: 1-770-535-7722 April 3-4, 2000 PRACTISING LAW INSTITUTE 22nd Annual Current Developments in Bankruptcy and Reorganization Conference PLI Conference Center, New York, New York Contact: 1-800-260-4PLI April 5-8, 2000 TURNAROUND MANAGEMENT ASSOCIATION Spring Meeting The Pointe Hilton Squaw Peak Resort Phoenix, Arizona Contact: 1-312-822-9700 or info@turnaround.org April 6-7, 2000 ALI-ABA Commercial Securitization for Real Estate Lawyers Walt Disney World, Orlando, Florida Contact: 1-800-CLE-NEWS April 10-11, 2000 PRACTISING LAW INSTITUTE 22nd Annual Current Developments in Bankruptcy and Reoorganization Conference Grand Hyatt Hotel, San Francisco, California Contact: 1-800-260-4PLI April 27-30, 2000 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting J.W. Marriott, Washington, D.C. Contact: 1-703-739-0800 May 4-5, 2000 RENAISSANCE AMERICAN MANAGEMENT & BEARD GROUP, INC. Bankruptcy Sales & Acquisitions The Renaissance Stanford Court Hotel San Francisco, California Contact: 1-903-592-5169 or ram@ballistic.com May 15, 2000 AMERICAN BANKRUPTCY INSTITUTE 2nd Annual New York City Bankruptcy Conference Association of the Bar of the City of New York, New York, New York Contact: 1-703-739-0800 May 26-29, 2000 COMMERCIAL LAW LEAGUE OF AMERICA 52nd Annual Meeting of the New England Region Colony Hotel, Kinnebunkport, Maine Contact: 1-617-742-1500 or richard@landayleblang.com June 8-11, 2000 AMERICAN BANKRUPTCY INSTITUTE 7th Annual Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800 June 14-17, 2000 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 16th Annual Bankruptcy and Restructuring Conference Swissotel, Chicago, Illinois Contact: 1-541-858-1665 or aira@ccountry.net June 29-July 2, 2000 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: 1-770-535-7722 July 13-16, 2000 AMERICAN BANKRUPTCY INSTITUTE 7th Annual Northeast Bankruptcy Conference Doubletree Hotel, Newport, Rhode Island Contact: 1-703-739-0800 July 21-24, 2000 National Association of Chapter 13 Trustees Annual Seminar Adams Mark Hotel, St. Louis, Missouri Contact: 1-800-445-8629 or info@nactt.com August 3-5, 2000 ALI-ABA Fundamentals of Bankruptcy Law Somewhere in Boston, Massachusetts Contact: 1-800-CLE-NEWS August 9-12, 2000 AMERICAN BANKRUPTCY INSTITUTE 5th Annual Southeast Bankruptcy Workshop Hyatt Regency, Hilton Head Island, South Carolina Contact: 1-703-739-0800 August 14-15, 2000 TURNAROUND MANAGEMENT ASSOCIATION Advanced Education Workshop Loews Vanderbilt Plaza, Nashville, Tennessee Contact: 1-312-822-9700 or info@turnaround.org September 12-17, 2000 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES Convention Doubletree Resort, Montery, California Contact: 1-803-252-5646 or info@nabt.com September 15-16, 2000 AMERICAN BANKRUPTCY INSTITUTE Views From the Bench 2000 Georgetown University Law Center, Washington, D.C. Contact: 1-703-739-0800 September 21-22, 2000 RENAISSANCE AMERICAN MANAGEMENT & BEARD GROUP, INC. 3rd Annual Conference on Corporate Reorganizations The Regal Knickerbocker Hotel, Chicago, Illinois Contact: 1-903-592-5169 or ram@ballistic.com September 21-23, 2000 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Emory University School of Law, Atlanta, Georgia Contact: 1-703-739-0800 September 21-24, 2000 AMERICAN BANKRUPTCY INSTITUTE 8th Annual Southwest Bankruptcy Conference The Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800 November 2-6, 2000 TURNAROUND MANAGEMENT ASSOCIATION Annual Conference Hyatt Regency, Baltimore, Maryland Contact: 312-822-9700 or info@turnaround.org November 27-28, 2000 RENAISSANCE AMERICAN MANAGEMENT & BEARD GROUP, INC. Third Annual Conference on Distressed Investing The Plaza Hotel, New York, New York Contact: 1-903-592-5169 or ram@ballistic.com November 30-December 2, 2000 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800 The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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 * * *