/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/000331.MBX T R O U B L E D C O M P A N Y R E P O R T E R Friday, March 31, 2000, Vol. 4, No. 64 Headlines BRAUDE JEWELRY: Case Summary and 20 Largest Unsecured Creditors COLORADO GREENHOUSE: Order Authorizes Employ of Rubner & Kutner CONTIFINANCIAL: Lenders Agree to Forbear Maturity Payment CONTIMORTGAGE HOME: S&P Lowers Ratings CWT SPECIALTY STORES: Soliciting Bids For Personal Property DEVLIEG BULLARD: Interim Order Authorizes Loan DOW CORNING: Seeks To Retain Berskin & Parr FOUR STAR LIGHTING: Sale Talks End; Possible Bankruptcy FRUIT OF THE LOOM: Milberg Weiss Files Class Action Suit FSC CORPORATION: Case Summary and 20 Largest Unsecured Creditors GATEWAY LLC: Hampton Roads Airport sold For $2.3 Million GLOBAL FRANCHISE: Trust Series on Rating Alert GLOBAL OCEAN: Court Approves Plan Disclosure Statement HOUSING RETAILER: Seeks Approval of Disclosure Statement IMPERIAL HOME DCOR: Order Approves Employ of Deloitte & Touche K&S PHOTOGRAPHICS: Case Summary and Largest Creditors KEY INVESTMENTS: Case Summary and Largest Unsecured Creditor KEY PLASTICS: Receives Commitment From Lenders LUMENYTE: Emergency Motion For DIP Financing MARINER: Committee Taps Chanin Capital Partners MAXICARE: Reports Fourth Quarter Results MERIT ENERGY: Appointment of Arthur Andersen Postponed PHS: Judge Rules Two Hospitals Stay Open PHS: University Hospital Issues Response to Rulings PHONETEL TECHNOLOGIES: Reports Financial Results For Year SIRENA APPAREL: Motion To Extend Time To Assume/Reject Leases SUNRISE ASSISTED LIVING: Reorganizes Business Operations TRANSTEXAS: Completes Final Steps In Emergence From Chapter 11 VENTAS: Reports 1999 Results WASTE MANAGEMENT: Subsidiary Agrees to Sell Nuclear Services WESTMORELAND COAL: Net Income Decreases $5 Million From Last Year WILSHIRE FINANCIAL: Post-Bankruptcy Results of Operations BOND PRICING FOR WEEK OF March 27, 2000 ********* BRAUDE JEWELRY: Case Summary and 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Braude Jewelry Corp. an Illinois Corporation 211 East Ontario Street Chicago, IL 60611 Type of Business: Retail jewelry store chain Petition Date: February 17, 2000 Chapter 11 Court: Northern District of Illinois Bankruptcy Case No.: 00-04596 Judge: Ronald Barliant Debtor's Counsel: Charles S. Stahl 703 Warrenville Road Wheaton, IL 60187 630-871-8060 Total Assets: $ 7,000,000 Total Debts: $ 8,364,582 20 Largest Unsecured Creditors GDM 55 Metro Way Secausus, NJ 07094 Allan Bloom 800-882-8090 Business supplies $ 657,332 Rachminov Dia. LTD Business supplies $ 237,984 Citizen Watch Co. Business supplies $ 155,822 Aki/Artcarved Business supplies $ 151,583 Bulova Corp Business supplies $ 148,266 Movado Group, Inc. Business supplies $ 131,463 Key Items Business supplies $ 117,748 Fantasy Diamond Corp Business supplies $ 116,723 Emby Int'l Inc. Business supplies $ 116,122 M. Geller Ltd. Business supplies $ 105,477 Jewelex New York LTD Business supplies $ 100,626 Leer Gem LTD Business supplies $ 83,851 Alison Gem Corp Business supplies $ 81,020 Frederick Goldman Business supplies $ 73,039 Simplex Diam Business supplies $ 70,186 North American JWLRS Business supplies $ 67,496 Wilkerson Assoc. Business supplies $ 67,398 Northwest IMP. EXP. Business supplies $ 65,305 Elba Jewelry Inc. Business supplies $ 62,035 Star Dia GRP Business supplies $ 61,856 COLORADO GREENHOUSE: Order Authorizes Employ of Rubner & Kutner --------------------------------------------------------------- By order of the US Bankruptcy Court for the District of Colorado, March 20, 2000, effective February 7, 2000, Colorado Greenhouse, Inc. is authorized to employ Paul D. Rubner and Rubner & Kutner, PC. CONTIFINANCIAL: Lenders Agree to Forbear Maturity Payment --------------------------------------------------------- ContiFinancial Corporation (OTC BB: CFNI) announced that lenders holding approximately 90% of the debt under its bank credit facilities have signed a Forbearance Agreement in which they agreed that until June 10, 2000 they will refrain from taking any enforcement actions upon certain specified defaults including nonpayment upon maturity. The Company previously disclosed that it does not have sufficient financial resources to repay the bank debt when it becomes due on March 31, 2000. As a condition to the forbearance, the Company has agreed to repay a portion of the debt by transferring to the bank syndicate certain excess spread receivables that currently secure the bank debt. As a result of this transaction, the debt outstanding under the bank credit facilities was reduced by $84 million to $338 million. Although the Company expects to make the April 1st interest payment on its senior notes, the nonpayment of the debt under the bank credit facilities on the March 31 maturity will result in a cross-default under the notes. The Company has been, and continues to be, in discussions with its creditors and other constituents with respect to a restructuring of the Company's capital structure and the Company's future business plans including, but not limited to, a stand-alone restructuring plan, one or more sales of the Company's assets and other strategic alternatives. No assurance can be given that the Company will be able to consummate any such transaction or that the proceeds of any such transaction will be sufficient to allow the Company to repay its debt under the bank credit facilities and the senior notes. Accordingly, the Company continues to anticipate that it will restructure its outstanding debt through the commencement of proceedings under Chapter 11 of the Bankruptcy Code. ContiFinancial President and CEO Alan H. Fishman said, "We are pleased that our lenders have taken this step. Clearly, they realize that we are doing everything we can to preserve as much value as we can for them, and they are giving us every opportunity to maximize value for them." ContiFinancial Corporation is a financial services company with headquarters in New York City. CONTIMORTGAGE HOME: S&P Lowers Ratings -------------------------------------- On March 29, 2000, Standard & Poor's lowered its rating on class B-1F of ContiMortgage Home Equity Loan Trust's home equity loan pass-through certificates series 1997-3, fixed-rate loan group to single-'B' from double-'B'. Simultaneously, Standard & Poor's raised its rating on class M-1A of ContiMortgage Home Equity Loan Trust's home equity loan pass- through certificates series 1997-3, adjustable-rate loan group to double-'A'-plus from double-'A'. At the same time, Standard & Poor's affirmed its ratings on 11 other classes of ContiMortgage Home Equity Loan Trust's home equity loan pass-through certificates series 1997-3 (see list). The lowered rating reflects a continued decline in the levels of excess interest and overcollateralization available to cover projected losses. The rating action affects approximately US$9.450 million of rated debt. Loss protection has been stressed by monthly losses averaging US$1.5 million during the past year. In each of the last 12 months, losses have exceeded monthly excess interest and have eroded overcollateralization. Due to the number of delinquent and defaulted loans in the pools, this trend is likely to continue. The rating of this certificate class will be lowered as credit support erosion continues. The raised rating reflects loss coverage of approximately 52.48%. When credit is given to excess spread for the next 12 months, this coverage amount is equal to US$41.171 million. Subordination provides 44.87% of the loss coverage amount, and overcollateralization provides 3.49%. Rapid prepayments of the underlying collateral during the past 33 months have resulted in significant shifting of the senior/subordinate interest. The current pool factor equals 24.52%. The senior certificates, which received 100% of principal prepayments for the first five years, have paid down to 7.14%. Despite the lackluster performance of the collateral, the upgraded certificates are benefiting from the shifting interest feature of the transaction. The rating action affects approximately US$25.600 million of rated debt The rating affirmations are results of increased or adequate credit support percentages. These percentages reflect both the shifting interest feature of the senior/subordinate structure and protection provided by overcollateralization and by excess interest. The overcollateralization targets of both loan groups have been stepped up because each group has exceeded its applicable loss limit. The step-up targets are currently 2.40% and 2.65% of the cutoff date principal balance for the fixed- and adjustable-rate loan groups, respectively. Based on current loss levels, and provided no additional losses occur, a step-down will not occur in either loan group until at least July 2001. The rating affirmations affect approximately US$386.825 million of rated debt. Monthly excess interest in one loan group is available to the other loan group for as long as an overcollateralization deficit exists, Standard & Poor's said.--CreditWire OUTSTANDING RATINGS AFFIRMED ContiMortgage Home Equity Loan Trust Home Equity Loan Pass- through Certificates Series 1997-3 Class Rating A-5, A-6, A-7, A-8, A-9, A-10 AAA A-11IO AAAr M-1F AA M-2A, M-2F A- B-1A BB CWT SPECIALTY STORES: Soliciting Bids For Personal Property ----------------------------------------------------------- The following is being issued by CWT Specialty Stores: In Re: CWT Specialty Stores, Inc., Debtors Chapter 11 Case No. 00-10758 (JHG) The Honorable Jeffry H. Gallet, Bankruptcy Judge Please take notice that the Debtor, a ladies apparel retail chain d/b/a CHERRY & WEBB is soliciting bids for certain personal property located at 23 of its remaining store locations in MA, CT, NH, VT & RI. The personal property will be sold free and clear of all liens and includes the following: Store fixtures and furnishings Stock room shelving & racking I.S. Equipment The Debtors will be taking bids for the next 7 days (through April 6, 2000) after which time they will proceed to sell the personal property subject to court approval. If you are interested in seeing the items for sale or placing a bid please contact Bob Willert at the company, 508-399-6000 extension 403 or e-mail the debtor at hexagongroup@aol.com. Attorneys for Debtor Attorneys for Unsecured Creditors Committee Weil Gotshal & Manges LLP Kronish, Lieb, Weiner & Hellman, LLP 767 Fifth Avenue 1114 Avenue of the Americas New York, New York New York, New York 10036 Attn: Judy Liu, Esq. Attn: Lawrence Gottlieb 212-310-8000 212-479-6000 DEVLIEG BULLARD: Interim Order Authorizes Loan ---------------------------------------------- On March 21, 2000 the US Bankruptcy Court for the Northern District of Ohio entered an interim order authorizing the debtor, Devlieg-Bullard, Inc. to enter into a fourth amendment to its post -petition loan and security agreement. A final hearing to consider the motion will be held on April 7, 2000 at 10:30 AM. The current amendment provides a Total Commitment of $17.3 million through the date of the closing of the WHirlpool Transaction, and providing certain reductions thereafter. The fee due is $300,000 and the final maturity date is extended to June 20, 2000. DOW CORNING: Seeks To Retain Berskin & Parr ------------------------------------------- The debtor, Dow Corning Corporation is retaining the law firm of Berskin & Parr for the purposes of consultation and representation in relation to intellectual property, particularly in the areas of trademark matters. In support of the debtor's retention, the firm will be retained on an hourly basis, and estimates that the quarterly budget for the services to be rendered is estimated at $4,700 per quarter. FOUR STAR LIGHTING: Sale Talks End; Possible Bankruptcy ------------------------------------------------------- Theatrical equipment supplier Matthews Studio Group, Burbank, Calif., said it has ended talks to sell its Broadway-based division, Four Star Lighting, to its managers and a group of private investors, according to Reuters. In a statement, Matthews said that it will continue to retain the assets and operations of the entire Four Star Lighting operation and will continue to explore other solutions to its current liquidity issues, including the possibility of filing for bankruptcy. Founded in 1964, Four Star Lighting is the leading supplier of theatrical equipment to the Broadway market. Matthews Studio Group acquired Four Star in April 1998. (ABI 30-Mar-00) FRUIT OF THE LOOM: Milberg Weiss Files Class Action Suit -------------------------------------------------------- Milberg Weiss announced yesterday that a class action has commenced in the U.S. District Court for the Western District of Kentucky on behalf of purchasers of Fruit of the Loom Inc. Class A common stock during the period between Sept. 28, 1998 and Nov. 4, 1999, according to a newswire report. The suit charges Fruit of the Loom's two top officers with violations of the Securities Exchange Act of 1934, and alleges that during the third and fourth quarters in 1998, the company told investors it was materially reducing its levels of finished goods and raw materials inventory by curtailing production at its maquiladora facilities for several days in each of those quarters and that it expected strong sales growth in 1999-2000. On April 21, 1999, the company reported a loss of $.13 per share, claiming the results were due to an inability to manufacture sufficient product to meet strong demand. The suit claims the company then suffered greaters setback in the third quarter of 1999 due to its operations, including a $60 million write-off of over-valued and non-existent inventory, a $20 million loss on cotton futures contracts and a $10 million charge for a loss on a supply contract from a previously sold facility. The suit alleges that subsequent to its bankruptcy filing, Fruit of the Loom's stock became virtually worthless, inflicting millions of dollars of damage on class members. Those interested in serving as lead plaintiff are asked to move the court no later than 60 days from March 22, 2000. Those wishing to join this class action may do so online at http://www.milberg.com/fruit/. (ABI 30-Mar-00) FSC CORPORATION: Case Summary and 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: FSC Corporation 13101 S. Pulaski Road Alsip, Illinois 60803 Type of Business: Manufacture of newsprint and high bulk paper Petition Date: February 17, 2000 Chapter 11 Court: Northern District of Illinois Bankruptcy Case No.:00-04659 Judge: Joan Humphrey Lefkow Debtor's Counsel: Malcolm M. Gaynor Paul J. Gaynor Schwartz, Cooper, Greenberger & Krauss 180 North LaSalle Street Suite 2700 Chicago, Illinois 60601 Phone: (312) 346-1300 Total Assets: $ 65,754,242 Total Debts: $ 160,597,056 20 Largest Unsecured Creditors Metropolitan Water Reclamation District of Gr. Chicago 100 East Erie Chicago, IL 60611 Phone: 312-751-5600 Fax: 312-751-5965 $ 733,969 Resource Management Attn: Accounts Receivable 40 W. Shuman Blvd., Ste 216 Naperville, IL 60563-8465 Phone: 630-305-4080 Fax: 630-305-4089 $ 667,776 Groen Waste Service 13701 South Kostner Crestwood, IL 60445 Fax: 708-385-5510 $ 434,253 Cook County Collector 118 North Clark Street Chicago, IL 60602 $ 356,262 Nippon Fabric $ 226,000 ACI Enterprises, Inc. $ 186,367 Hychem $ 177,623 Great Lakes Paper Stock $ 169,262 Maintenance Plus Recycling $ 165,107 Starcon Incorporated $ 164,934 Motion Industries, Inc. $ 148,939 WM-Recycle America $ 124,007 Ruan Leasing Company $ 113,476 Shell Chemical Co. $ 110,962 Browning-Ferris Industries $ 108,356 Weavexx Felt $ 96,815 Hercules Inc. $ 94,855 Larson & Larson $ 92,592 R & G Machine Corp. $ 84,770 Huntsman Corp. $ 84,344 GATEWAY LLC: Hampton Roads Airport sold For $2.3 Million -------------------------------------------------------- A U.S. Bankruptcy Court judge approved a deal Wednesday to sell the Hampton Roads Airport to a Virginia Beach corporation for $ 2.3 million and to help pay debts to the airport's creditors. Realex Management Services intends to buy the airport from Gateway LLC by May 1 -- the deadline for paying $ 4.75 million to Gateway's major creditors. Gateway filed for Chapter 11 bankruptcy in December, seeking to restructure its debts under court supervision. According to the report, Steven I. Fox, one of Realex's three principal partners, said the corporation wants to expand the airport to accommodate more aircraft, including corporate planes, to relieve congestion at Norfolk International Airport. The $ 2.3 million pays for the 230-acre airport site, Fox said. The corporation will spend at least $ 3 million more to buy the surrounding 280 acres to expand the facility, but that purchase is still 18 months away, he said. The city of Portsmouth, will complete a study next month that could determine whether Portsmouth wants to be a partner in the airport or buy the facility from Realex, said City Councilman J. Thomas Benn III, a liaison to the airport. If the city did decide to buy the airport, the Virginia Department of Aviation and the Federal Aviation Administration would pay 98 percent of the cost for the land and to expand the runways. "Our aim is to make it the best reliever airport it can be," said Benn, adding that any recommendations would have to come through the city manager's office and approved by the City Council. "Portsmouth is still interested in the airport. Everything is still a possibility." Fox said it wasn't the corporation's intention to buy the airport for the purpose of selling it to Portsmouth. However, he said Realex will entertain Portsmouth's interest when the study is completed. Judge David H. Adams ruled Wednesday in favor of the potential deal, rather than open the sale to a second bidder, Gerald Yagen -- whose attorney claimed that his bid of $2,373,500 was a legitimate offer that Gateway should consider. Gateway's attorney W. Greer McCreedy II argued that opening the bidding could cause his client to lose the offer from Realex. Adams said the court shouldn't risk another process that could cause creditors to lose money. Hampton Roads Airport has been owned by Gateway since 1996. State records show the airport is one of the most heavily used airports in the state operating without an air-traffic control tower. The airport drew an estimated 56,887 arrivals and departures in 1998. GLOBAL FRANCHISE: Trust Series on Rating Alert ---------------------------------------------- Fitch IBCA has placed the class A-1, A-2, and A-3 notes and class X certificates rated `AAA', the class B notes rated `AA', the class C notes rated `A', and the class D notes rated `BBB', issued under Global Franchise Trust 1998-1, on RatingAlert Negative. In addition, the class E certificates are downgraded to `BB-' from `BB' and the class F certificates are downgraded to `B-' from `B'. These classes are also placed on RatingAlert Negative pending the outcome of the bankrupt loan described below. The downgrade of the class E and class F certificates is due to a partial loss taken on one of the smaller loans in the pool that resulted in a reduction in credit enhancement to support the junior classes. Recoveries from the defaulted loan have been applied to the bonds and the loan is no longer in the pool. In addition, the RatingAlert Negative action is based upon uncertainty associated with deterioration in the credit quality of one large loan in the pool. The borrower on this loan is currently operating in bankruptcy but has reached accommodations with its creditors. Payments have remained current on this loan and the parties are operating under a court approved mediation settlement. Fitch IBCA expects the borrower to submit a formal plan of reorganization in the near future. If and when a plan of reorganization is approved by the court, there is no assurance that the borrower will perform and meet the obligations of that plan. Fitch IBCA will monitor the status of the troubled loan closely over the next six months to determine whether further rating actions are warranted. Global Franchise Trust Series 1998-1 bonds were issued in Aug. 1998. At closing, the pool consisted of 29 fully amortizing loans originated by Global Alliance Finance Company, LLC and Deutsche Bank AG; as well as two senior securities. The loans are collateralized by 228 franchise business units: 67% restaurants, 30% commercial real estate and the remaining 3% automotive. The two senior securities are $35.6 million class A notes from GAFCo Franchise Loan Trust 1998-1 that are rated `A' by Fitch IBCA and $12.2 million class A certificates from Video Franchise Capital Trust 1996-1 that were not previously rated by Fitch IBCA. Servicer and special servicer on the pool is Orix Real Estate Capital Markets, LLC, formerly Banc One Mortgage Capital Markets, LLC. These rating actions are the direct result of the two situations outlined above and do not impact any other securitization pools originated by Deutsche Bank AG or serviced by Orix Capital. GLOBAL OCEAN: Court Approves Plan Disclosure Statement ------------------------------------------------------ On March 24, Global Ocean Carriers Ltd. (GLO) received bankruptcy court approval of the disclosure statement related to the shipping company's prearranged chapter 11 plan of reorganization. The U.S. Bankruptcy Court in Wilmington, Del., has scheduled a plan confirmation hearing for May 8, according to the company's lead bankruptcy counsel. Andrew D. Gottfried of Morgan Lewis & Bockius L.L.P., counsel to Global Ocean, told DBR that ballots, the plan, and the disclosure statement would be mailed to creditors and other parties in interest this week. (The Daily Bankruptcy Review; ABI 30-Mar-00) HOUSING RETAILER: Seeks Approval of Disclosure Statement ----------------------------------------------------------------- On March 17, 2000, H Squared, LLC and Housing Retailer Holdings, Inc., debtors, filed a motion for approval of Disclosure statement. A hearing on the motion will take place on April 19, 2000 at 4:00 PM before the Honorable Mary F. Walrath, US Bankruptcy Court, District of Delaware. IMPERIAL HOME DCOR: Order Approves Employ of Deloitte & Touche ----------------------------------------------------------------- By order entered on March 7, 2000, by the US Bankruptcy Court, District of Delaware, the debtors, The Imperial Home D‚cor Group, Inc., are authorized to retain and employ Deloitte & Touche LLP as auditors, accountants and tax, business information system and compensation consultants. K&S PHOTOGRAPHICS: Case Summary and Largest Creditors ----------------------------------------------------- Debtor: K&S Photographics, Inc. 222 North Canal Chicago, IL 60606 Type of Business: Photographic laboratory Petition Date: February 22, 2000 Chapter 11 Court: Northern District of Illinois Bankruptcy Case No.: 00-04961 Judge: Carol A. Doyle Debtor's Counsel: David K. Welch Dannen, Crane, Heyman & Simon Suite 1540 135 South LaSalle Street Chicago, IL 60603-4297 312-641-6777 Total Assets: $ 2,200,000 (approx) Total Debts: $ 1,243,264 20 Largest Unsecured Creditors AGFA Corporation $ 98,061 Accu Color Plus Inc. $ 22,536 Blue Cross/Blue Shield $ 13,417 Commonwealth Edison $ 46,008 Dallas Photo Imaging $ 11,023 Dennis Carney Photo Image $ 10,192 Eastman Kodak Company $ 54,941 Honeywell Inc. $ 11,286 Liford Imaging USA Inc. PO Box 26108 New York, NY 10087 $ 312,114 Lamb Little & Co. $ 11,553 Mitsubishi Imaging MC Inc $ 43,329 O'Neal, Sutton, Leveque $ 38,546 PHC Of Illinois $ 36,848 Quality Mounting & Lamina $ 76,136 Scholin Brothers Printing $ 47,343 Sign Works $ 12,078 Superior Fomeboards Corp. $ 44,727 TMC Realty Group, LP $ 10,858 United Healthcare of Midwest $ 15,035 United Parcel Service $ 10,529 KEY INVESTMENTS: Case Summary and Largest Unsecured Creditor ------------------------------------------------------------ Debtor: Key Investments 86-III an Illinois Ltd Partnership 10 South 620 Route 83 to 10 South 658 Route 83 Hinsdale, IL 60521 Mailing Add 55 Oakwood Drive Palos Park, IL 60464 Petition Date: February 25, 2000 Chapter 11 Court: Northern District of Illinois Bankruptcy Case No.: 00-05584 Judge: Erwin I. Katz Debtor's Counsel: Edmund P. Burke Burke & Burke, Ltd. 20 South Clark St., Suite 2200 Chicago, IL 60603 312-726-6630 Total Assets: $ 2,009,700 Total Debts: $ 1,545,225 Largest Unsecured Creditor TCF Nat'l Bank 500 West Brown Deer RD Milwaukee, WI 53217 Mike Roidt 414-352-6845 Mortgage Loan $ 1,500,000 KEY PLASTICS: Receives Commitment From Lenders ---------------------------------------------- In reporting the bankruptcy filing of Key Plastics, Plastics News Reports on March 27, 2000, that the company has received a proposed commitment from its lenders for up to $125 million of debtor-in-possession financing to cover its costs during restructuring. According to the report, Key's debt jumped from $280 million at the end of 1998 with the purchase of Foggini Group, a Turin, Italy-based maker of interior, exterior and under-the-hood injection molded plastics for European automakers. Key paid $113 million for the family-owned company, according to 1999 reports filed with the Securities and Exchange Commission. The price included a cash payment of about $45 million, assumed debt and a 35 percent stake in the newly formed European subsidiary, Key-Foggini Europe, which takes in all of Key's European holdings. The purchase was just the last in a series of acquisitions that took Key Plastics from $217 million in sales in 1996 to an estimated $550 million in 1999. In 1996, Key acquired Clearplas Ltd. of Coventry, England, and a share of Materias Plasticas SA of Leiria, Portugal. In 1997, it wrapped up three purchases: T.D. Shea Manufacturing Inc. of Troy, Clearplas France SA of Belleme, France, and three Aeroquip Corp. plants, one in Chihuahua, Mexico, and two in Michigan -- in Port Huron and Chesterfield Township, near New Baltimore. Three more purchases came in 1998: Acco Plastics Ltd. of Markham, Ontario; a Howell, Mich., factory owned by Libralter Plastics; and Concentric plc's Moulded Plastics subsidiary of Tamworth, England, plus Concentric operations in Chicago and San Luis Potosi, Mexico. LUMENYTE: Emergency Motion For DIP Financing -------------------------------------------- Lumenyte International Corporation filed an emergency motion seeking authority to enter into a post-petition financing arrangement with S.R. Willford, a minority shareholder and Chairman of the Board of Directors of the debtor. Willford is also currently the CEO of the debtor. The debtor claims that without the financing, the debtor's reorganization efforts will be devastated since the debtor's primary secured creditor, Imperial Bank will be entitled to foreclose on substantially all of the debtor's assets pursuant to an agreement between the debtor and Imperial. The financing will be used to "buy" the debtor an additional 30 days to evaluate, accept and finalize a sale or other disposition of the debtor's operations and/or obtain an equity infusion. Under the arrangement, Willford will loan the debtor an additional $70,000 which will be paid to the Bank and will take a second priority security interest in the debtor's intellectual property. MARINER: Committee Taps Chanin Capital Partners ----------------------------------------------- The Statutory Committee of Unsecured Creditors of Mariner Post- Acute Network, Inc. et al. seeks authority to employ Chanin Capital Partners LLC as its financial advisors. Chanin will provide the following services: Analysis of the debtors' operations, business strategy and competition in each of its markets; Analysis of the debtors' financial condition, business [plans, operating forecasts, management and the prospects for future performance; Financial valuation of the ongoing operations of the debtors; Assistance to the Committee in developing, evaluating, structuring and negotiating the terms and conditions of a Chapter 11 plan for the debtors;] Analysis of potential divestitures of the debtors' operations; and Provision to the committee of such other financial advisory services with respect to the debtors as requested by the Committee, including, without limitation, valuation, and advice with respect to financial, business and economic issues that may arise during the course of the Chapter 11 cases. The debtors will pay Chanin a monthly advisory fee of $150,000 for its services. MAXICARE: Reports Fourth Quarter Results ---------------------------------------- Maxicare Health Plans Inc. (Nasdaq:MAXI) announced it reported a net loss of $6.9 million for the three months ended December 31, 1999 which included a $6.0 million charge to increase health care claims reserves and $1.1 million of litigation settlement costs, compared to a net loss of $5.7 million for the same three month period in 1998 which included a $6.5 million charge for litigation, provider insolvency/impairment and an increase to the loss contracts and divestiture costs reserve. Net loss per common share was $.38 for the fourth quarter of 1999 compared to a net loss per common share of$.32 for the same period in 1998. The Company's premium revenues for its continuing operations increased by $12.7 million or 7.6 percent over the prior year quarter as a result of premium rate increases in all lines of business and enrollment growth in the Medicare line of business generated by the California and Indiana health plans. Last year, Maxicare completed its restructuring program to exit unprofitable markets by asset sales or plan closings and concentrate on its health care businesses in California, Indiana and Louisiana (the "continuing operations"). As of December 31, 1999, these continuing health plans accounted for commercial membership of approximately 279,400 members, Medicaid membership of approximately 170,300 members and Medicare membership of approximately 16,900 members. The Company is presently undergoing a strategic assessment which includes a variety of initiatives to improve the Company's market position, strengthen its medical management, claims payment administration and other critical business processes. In addition, the Company is presently assessing various alternative initiatives regarding the implementation of significant system enhancements and/or conversions including Internet-based systems. The execution of this restructuring program may be dependent upon the Company's ability to secure additional capital financing and may result in restructuring costs to be incurred upon implementation. Premium revenues for the fourth quarter of 1999 increased by $4.2 million to $179.5 million, an increase of 2.4 percent as compared to 1998. This increase was a result of an $8.5 million decrease in premium revenues related to the Company's discontinued operations which have been fully divested as of September 30, 1999 offset in part by a $12.7 million increase in premium revenues related to the Company's continuing operations. Commercial premiums for the fourth quarter of 1999 decreased $1.8 million to $105.6 million as compared to $107.4 million for 1998. The Company's commercial premiums for its continuing operations increased by $5.3 million to $105.6 million for 1999 as compared to $100.3 million for 1998 primarily due to premium rate increases offset in part by a decrease in membership. The Company's commercial membership for its continuing operations of 279,400 members as of December 31, 1999 decreased by 3,900 members primarily related to pricing discipline. The average commercial premium revenue per member per month ("PMPM") increased 6.5 percent as compared to 1998. Medicaid premiums for the fourth quarter of 1999 decreased $4.2 million to $47.7 million as compared to $51.9 million for 1998. The Company's Medicaid premiums for its continuing operations decreased by $2.7 million as a result of membership decreases in California and Indiana offset in part by premium rate increases in California and Indiana. Maxicare is a managed health care company with operations in California, Indiana, and Louisiana which currently have approximately 466,600 members. The Company also offers various employee benefit packages through its subsidiaries Maxicare Life and Health Insurance Company and HealthAmerica Corporation. MERIT ENERGY: Appointment of Arthur Andersen Postponed ------------------------------------------------------ Merit Energy Ltd. ("Merit") announces that the application brought by the National Bank of Canada and Bank One before the Court of Queen's Bench of Alberta to terminate the previously granted order under the Companies' Creditors Arrangement Act (Canada) ("CCAA") and to appoint Arthur Andersen Inc. as Receiver/Manager of Merit has been adjourned until Wednesday, April 12, 2000. In addition, the Court granted an extension of the CCAA order, as it applies to Merit, until that time. Merit continues to pursue strategic alternatives to settle its obligations to its creditors, and to maximize shareholder value, within the Court supervised process pursuant to the CCAA. PHS: Judge Rules Two Hospitals Stay Open ---------------------------------------- A federal bankruptcy judge's ruling allows two Cleveland-area hospitals to avoid imminent shutdown. U.S. Bankruptcy Judge Mary Walrath ruled Wednesday in Wilmington, Del., that St. Michael Hospital in Cleveland and Mt. Sinai Medical Center-East in suburban Richmond Heights will be put up for sale through bids. She said the eventual buyer must agree to keep the hospitals open. The matter is in the bankruptcy court because the owner, Primary Health Systems Inc. of Wayne, Pa., is seeking protection during reorganization under Chapter 11 of the bankruptcy code and needs the money from the property sales. The judge gave PHS 30 days to solicit new bids. The decision blocks a $62.6 million deal the Cleveland Clinic Foundation made with PHS to buy the two community hospitals after they have been closed and also for the functioning PHS Mt. Sinai Integrated Medical Campus, which is made up mainly of doctors' offices, in the suburb of Beachwood. Cleveland Mayor Michael R. White had worked out a deal with PHS and the Cleveland Clinic to keep some medical services going at St. Michael. White said Wednesday night that previously negotiated deal, based on the judge's ruling Wednesday, should be considered "a minimum threshold, and that our work should only result in increased hospital services in our community." White said the judge's decision "sets a hopeful tone for Cleveland neighborhoods." Cleveland Clinic spokesman Mark Cohen read a prepared hospital statement Wednesday night: "Like all parties to this hearing, the Cleveland Clinic will be reviewing the changes in the bid process ordered Wednesday evening by Bankruptcy Judge Walrath. In light of the fact that the parties are now scheduled to go before the judge Friday morning to review these changes in the bid process, the Clinic will be prepared to respond to the judge's ruling in court Friday morning." There have been offers recently for the two PHS hospitals, including the University Hospitals Health System of Cleveland's expression of interest in the form of about $10 million for the two hospitals if they remain open. "We will move forward immediately to work with PHS to make a fair offer for the two hospitals. We hope there will be no further attempt to dismantle the operations of these hospitals as there has been in the past three weeks," said Farah Walters, president and chief executive officer of University Hospitals. The Cleveland Clinic and University Hospitals are the two dominant hospital organizations in the Cleveland area. PHS has been trying to resolve its financial problems in bankruptcy court for about a year. Last month, PHS closed its Mount Sinai Medical Center in Cleveland, which employed about 960 people. "This is a great victory," said U.S. Rep. Dennis Kucinich, D- Ohio, who sat alongside a number of his constituents on the hard courtroom benches all day. "We get a month now to work and save the hospitals. I'm so proud of my constituents. They're so strong." The decision capped a daylong hearing where a packed courtroom, including Cleveland residents who traveled by bus to attend the proceeding, and they heard testimony about why PHS officials thought the Clinic's deal was the best they could get. PHS: University Hospital Issues Response to Rulings --------------------------------------------------- Farah M. Walters, president and chief executive officer of University Hospitals Health System, issued a statement yesterday regarding the decision by the U.S. Bankruptcy Court in Delaware to open the bidding process on PHS properties, according to a newswire report. "We are extremely pleased that the bankruptcy court has supported the position of University Hospitals Health System and the sentiment of the greater Cleveland community to open the bidding process," the statement said. "We will move forward immediately to work with PHS to make a fair offer for the two hospitals. Our goal continues to be to acquire both hospitals in operating condition so that they may remain open with full service to their communities and protecting the jobs of their employees. We hope there will be no further attempt to dismantle the operations of these hospitals as there has been in the past three weeks. We greatly appreciate the outpouring of support that University Hospitals Health System has received on this issue from the physicians and staff at St. Michael and Mt. Sinai-East, from individuals living in their neighborhoods, and from the people of greater Cleveland." (ABI 30-Mar-00) PHONETEL TECHNOLOGIES: Reports Financial Results For Year --------------------------------------------------------- PhoneTel Technologies, Inc. (OTCBB:PHTE) reports financial results for 1999, which includes the period ended November 17, 1999, the date the Company emerged from its Chapter 11 case, and the post reorganization period ended December 31, 1999. Revenues for the combined 1999 periods were $77.6 million, a decline of $13.8 million, or 15.1%, from $91.4 million for the year ended December 31, 1998. Revenues for the 1998 period included a$3.7 million charge relating to prior years to recognize lower dial-around compensation revenue resulting from the FCCs Third Report and Order dated February 4, 1999. For the twelve months ended December 31, 1999, EBITDA (earnings before interest, taxes, depreciation and amortization, other unusual charges and contractual settlements, and extraordinary items) was $5.5 million compared to$1.9 million for the same period in 1998. Net income of $37.6 million for the combined periods in 1999 includes an extraordinary gain of $77.2 million resulting primarily from the conversion of the Company's $125 million Senior 12% Notes to common stock as part of the Company's reorganization. The loss before extraordinary item declined from $44.8 million in 1998 to$39.6 million for the twelve months ended December 31, 1999, a decrease of $5.2 million, or 11.6%. If the 1998 results had not included the dial-around compensation revenue adjustment, the 1998 loss before extraordinary item would have been $41.1 million and EBITDA would have been $5.6 million. As previously announced, PhoneTel's prepackaged plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of New York and was consummated on November 17, 1999 to complete the reorganization of the Company. PhoneTel completed the refinancing of its $46 million secured debt and, pursuant to the terms of the Plan, converted its Senior 12% Notes into approximately 95% of the reorganized Company's common stock. Former equity holders, including the former holders of PhoneTel's mandatorily redeemable preferred stock, received the remaining 5% of the new common stock. PhoneTel Technologies, Inc. is a leading independent provider of pay telephones and related services with operations in 45 states and the District of Columbia. PhoneTel serves a wide array of customers operating in the shopping center, hospitality, health care, convenience store, university, service station, retail and restaurant industries. SIRENA APPAREL: Motion To Extend Time To Assume/Reject Leases ------------------------------------------------------------- The debtor, The Sirena Apparel Group, Inc., seek to extend its time to assume or reject its unexpired leases of non-residential real property. Each of the debtor's three leases are necessary to the debtor's ongoing business operations. The motion seeks to extend the time to assume or reject the leases for approximately 90 days, through and including June 30, 2000. The time within which the debtor must make its election to assume or reject the leases shall otherwise expire on or about April 3, 2000. This is the debtor's third request for an extension of the Bankruptcy Code Sec. 365(d)(4) deadline. SUNRISE ASSISTED LIVING: Reorganizes Business Operations -------------------------------------------------------- Sunrise Assisted Living Inc., McLean, Va., one of the nation's largest providers of assisted living for seniors, said today it has reorganized its business operations and obtained a $75 million loan to pay off debts and buy back stock, The Washington Post reported. The restructuring comes amid increased financial stress in the elderly care industry; in recent months, four national nursing home operators have filed for bankruptcy, citing reduced Medicare payments as a major reason. Unlike nursing homes, assisted-living companies are not dependent on Medicare payments; their customers generally have private insurance or pay cash to live in full-service facilities such as Sunrise's. Sunrise came under stress when it expanded rapidly, opening 22 communities in the last 15 weeks. When its earnings did not meet Wall Street analysts' expectations in the last six months of 1999, its stock price plummeted. Sunrise's three divisions, Sunrise Management Services, Sunrise Properties and Sunrise Ventures, which operate assisted-living facilities and buy and sell real estate and develop new business ventures, will now report their financial results separately under the Sunrise corporate umbrella, and a seven-year, $75 million Freddie Mac loan, obtained at a fixed interest rate of 8.66 percent, will be used to pay down $59 million in project financing and buy back company stock, Sunrise officials said. "The loan demonstrates our ability with a major financial institution to get attractive refinancing terms," said Paul J. Klaassen, Sunrise's founder, chairman and chief executive. "It's very important for the public markets to see that we can get long-term financing." (ABI 30-Mar- 00) TRANSTEXAS: Completes Final Steps In Emergence From Chapter 11 -------------------------------------------------------------- According to a report in Gas Daily on March 21, 2000, TransTexas Gas said last Friday that after 11 months, it had completed the final step in the company's emergence from Chapter 11 bankruptcy. Company officials said last week that TransTexas has secured the $52.5 million exit financing the company needs to put its reorganization plan into effect. The plan calls for the appointment of a new five-member board of directors, four members of which will be nominated by a majority of the holders of the senior preferred stock. The company also amended an existing credit agreement and revolving accounts receivable credit facility, cancelled existing securities and issued new securities. The report quoted Michael Spohn, an analyst with the Petroleum Research Group, as saying that the company got into financial trouble when it borrowed too much and became over-leveraged. When energy prices tanked in late 1998, TransTexas decided to seek a voluntary bankruptcy to protect its existing assets. Spohn said the company's major asset, the close-to-shore Eagle Bay field in Galveston Bay, is largely a speculative project and not developed enough to return a lot of cash on the investment. "Investors like to see free-cash-flow assets," he said. Under the reorganization plan, TransTexas' existing securities, including a $ 450 million senior secured note, $115.8 million of subordinated notes and all of its issued and outstanding shares of common stock were cancelled. The company issued $200 million in new senior secured notes, $222,455,320 of new senior preferred stock, $20,716,080 of new junior preferred stock, 1,250,000 shares of new common stock, 625,000 warrants to purchase additional shares of new common stock, and $21,841,200 cash to the holders of the senior secured note claim. The plan provides for different classes of creditors to be compensated as follows: ** Holders of subordinated note claims received either cash, shares of new senior preferred stock, or shares of new junior preferred stock; ** Holders of general unsecured claims will receive a pro-rata distribution of the general unsecured creditors cash amount and shares of new senior preferred stock, and ** Public, unaffiliated holders of 10,763,402 shares of old common stock received 52,500 shares of new common stock and 109,375 new warrants. Other classes of creditors also received distributions as outlined in the plan. Barbarosh said all the company's creditors, except one, agreed to the plan. VENTAS: Reports 1999 Results ---------------------------- Ventas, Inc. (NYSE:VTR) announced the results of its operations for the year ended December 31, 1999. Funds from operations for the year ended December 31, 1999 totaled $85.0 million, or $1.25 per diluted share after recording$34.4 million in charges related principally to unpaid rent from Vencor, Inc., the Company's principal tenant. Funds from operations for the period from May 1, 1998 to December 31, 1998 totaled $84.7 million, or $1.25 per diluted share. The calculation of FFO for 1998 assumes that the Company qualified to be taxed as a real estate investment trust ("REIT") on May 1, 1998 and the provision for taxes is therefore excluded. Net income for the year ended December 31, 1999 was $42.5 million, or $.63 per diluted share after recording $34.4 million in charges related principally to unpaid rent from Vencor. Net income for the period from May 1, 1998 to December 31, 1998 was $26.8 million, or$.39 per diluted share. As a result of a corporate reorganization effective April 30, 1998 (the "1998 Spin Off"), for financial reporting purposes, Ventas, Inc. is deemed to have commenced operations on May 1, 1998; therefore, the financial results for the year ended December 31, 1999 are not comparable to the period from May 1, 1998 to December 31, 1998. Rental income for the year ended December 31, 1999 was $228.6 million, of which $225.1 million resulted from leases with Vencor. Interest and other income totaled approximately $4.6 million and was primarily the result of earnings from investment of cash and cash equivalents during the year. Expenses for the year ended December 31, 1999 totaled $190.7 million and included $42.7 million of depreciation expense on real estate assets and $88.8 million of interest on and costs relating to the Company's credit facility and other debt. Included in interest expense is amortized deferred financing fees of approximately $6.0 million, which included $1.6 million of amortization for fees incurred in the fourth quarter of 1999 related to the extension of the maturity of the $275 million Bridge Loan facility from October 30, 1999 to February 28, 2000. Expenses also included a charge to earnings of$34.4 million representing a write-off of unpaid rents receivable from tenants. Additionally, an impairment loss of $1.9 million was recorded to write down a single facility, operated by a tenant other than Vencor, to its estimated fair value. Ventas, Inc. is a real estate company whose properties include 45 hospitals, 218 nursing centers, and eight personal care facilities in 36 states. WASTE MANAGEMENT: Subsidiary Agrees to Sell Nuclear Services ------------------------------------------------------------ Waste Management Inc. (NYSE:WMI) today announced that its wholly- owned subsidiary has reached a definitive agreement to sell its nuclear waste services operations to GTS Duratek Inc. (Nasdaq:DRTK) for up to $65 million. Waste Management expects the sale to be completed in the second quarter. The transaction is subject to certain regulatory approvals and other customary conditions. The Company's nuclear services businesses include Waste Management Federal Services Inc. and Chem-Nuclear Systems LLC, which provide nuclear commercial services and disposal primarily to the utilities industry. Waste Management Federal Services provides nuclear waste handling, transportation, treatment, packaging, storage, disposal, site cleanup and project management services primarily for the U.S. Department of Energy and other federal agencies. The nuclear commercial services division offers nuclear waste handling, transportation, licensing, packing, disposal and decontamination and decommissioning services primarily to nuclear utilities. The Company also is divesting the nuclear Commercial Disposal Division, which operates a commercial low-level radioactive disposal facility in Barnwell, S.C. The sale of these operations stems from the Company's strategy to re-focus on its core North American solid waste operations. The Company intends to use the proceeds from this and the divestitures of its international and other non-core operations primarily to reduce debt and make selective tuck-in acquisitions of solid waste businesses in North America. Waste Management Inc. is its industry's leading provider of comprehensive waste management services. Based in Houston, the Company serves municipal, commercial, industrial, and residential customers throughout the United States, and in Canada, Puerto Rico and Mexico. WESTMORELAND COAL: Net Income Decreases $5 Million From Last Year ----------------------------------------------------------------- Westmoreland Coal's Absaloka surface mine in Montana produced 5.5 million tons of coal last year, down from 6.5 million tons in 1998, according to company financial reports. Absaloka, under the Westmoreland Resources (WRI) subsidiary, is the primary moneymaker for Westmoreland and the company's only coal operation. Coal operations reported revenues of $38.5 million in 1999 and $44 million in 1998. The company had net income of $8.6 million last year, compared to net income of $3.3 million for 1998, the year the company emerged from Chapter 11 bankruptcy protection (CO 1/11/99). "Impacting 1999 results [was] an expected decrease in revenues that resulted in reduced sales at Westmoreland Resources because of an eight-week scheduled maintenance outage at a major customer's facility," the company said. That outage was at Northern States Power's Sherburne Unit 3 from the end of February through the end of April last year (CO 8/30/99). In July, WRI restructured its coal contract with NSP to increase tonnage and eliminate an option agreement that brought $1.6 million, $3.2 million and $3.1 million to the company during 1999, 1998 and 1997, respectively. The revised coal contract expires in December 2002. WILSHIRE FINANCIAL: Post-Bankruptcy Results of Operations --------------------------------------------------------- Wilshire Financial Services Group Inc. (WFSG), Portland, Ore., reported today the results of operations for the fourth quarter and seven months ending Dec. 31, 1999, following the its emergence from bankruptcy on June 10, according to a newswire report. Its net loss for the fourth quarter was $6.2 million ($0.31 per share) and $14.1 million ($0.70 per share) for the seven months ending Dec. 31, and its operating results for the same period include market valuation losses and impairments on mortgage-backed securities and other assets of $10.8 million, loan loss provisions of $1.0 million and a $2.4 million charge for the discontinuation of European operations, or a total of $14.2 million ($0.71 per share). "WFSG's 1999 financial results understate our current financial stability and the improved results of our new strategic focus, both of which are now surfacing in the year 2000," said Stephen P. Glennon, chief executive officer of Wilshire Financial Services Group. "Subsequent to the reorganization process, we put a new management team in place, diligently reduced Wilshire's overhead, and focused the company on its core banking and loan servicing businesses. I am pleased to report that the fourth quarter, despite the reported loss, reflected our substantial progress in these efforts." WFSG invests in and services residential and commercial mortgages, primarily those requiring special loss mitigation and/or investor reporting capabilities, and conducts a real estate services banking business through its wholly-owned subsidiary, First Bank of Beverly Hills, F.S.B., focusing on commercial mortgage origination, residential and commercial mortgage acquisition and merchant bankcard processing businesses.(ABI 30-Mar-00) BOND PRICING FOR WEEK OF March 27, 2000 ======================================= DLS Capital Partners, Inc., bond pricing for week of March 27, 2000 Following are indicated prices for selected issues: Acme Metal 10 7/8 '07 13 - 15 (f) Ameriserve 8 7/8 '06 12 - 14 (f) Asia Pulp & Paper 11 3/4 '05 87 - 88 E & S Holdings 10 3/8 '06 38 - 41 (f) Fruit of the Loom 8 7/8 '06 4 - 6 (f) Genesis Health 9 3/4 '05 11 - 14 (f) Geneva Steel 11 1/8 '01 19 - 20 (f) Globalstar 11 1/4 '04 35 - 36 Hechinger 9.45 '12 3 - 5 (f) Integrated Health 9 1/4 '08 2 - 4 (f) Iridium 14 '05 2 1/2 - 3 (f) Loewen 7.20 '03 42 - 44 (f) Paging Network 10 1/8 '07 69 - 72 (f) Pathmark 11 5/8 '02 33 - 36 Pillowtex 10 '06 32 - 34 Revlon 8 5/8 '08 43 - 45 Rite Aid 6.70 '01 63 - 65 Service Merchandise 9 '04 12 - 13 (f) Sunbeam 0 '18 13 - 14 TWA 11 3/8 '06 33 - 34 Vencor 9 7/8 '08 21 - 23 (f) ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. 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