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/raid1/www/Hosts/bankrupt/TCR_Public/000414.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, April 14, 2000, Vol. 4, No. 74 Headlines ALTIVA FINANCIAL: Reports Second Quarter Fiscal 2000 Results AMERICAN HEALTHCHOICE: Announces Approval of Disclosure Statement AMERISERVE: Loses Burger King Account APPLE ORTHODONTICS: Venue Transfer to Houston ARM FINANCIAL: Signs Purchase Agreement with 1st Atlantic BOSTON CHICKEN: Court Grants Sixth Extension of Exclusivity CARSON INC: Terra Industries' Revolving Credit Line Replaced CBO: Moody's Takes Action COHO ENERGY: Plan Confirmed With Modifications COHO ENERGY: Reports Plan Effective To SEC DAEWOO ELECTRONICS: Courts declare Annual Meeting invalid DOW CORNING: Judge Hears Breast-Implant Suit Arguments EAGLE FOOD: Seeks Extension of Time To Assume/Reject Leases EMPRESAS MUNICIPALES/TERMOEMCALI: S&P Affirms 'CCC' Ratings IMPERIAL HOME DCOR: Seeks Extension of Exclusivity INTEGRATED HEALTH: SNH Announces Agreements with Integrated KELLER FINANCIAL: Trustee Sues Auditors and Executives KENETECH: Court Confirms Judgment in Favor of Kenetech KITTY HAWK: Moody's Lowers Debt Ratings (Senior Implied To Caa2) KITTY HAWK: Shares Lose 80% of Value KMART: Annual Meeting Set For May 16, 2000 LOEWEN: Clarification on Provisions of Original Bar Date Order MITSUBISHI CORP.: To Post First-Ever Net Loss NEUMAN DISTRIBUTORS: Files for Chapter 11 Bankruptcy Protection NISSAN MOTOR: To sell empty showrooms PAXSON COMMUNICATIONS: Annual Meeting Set For May 1, 2000 PRIMARY HEALTH: Committee Objects to Exclusivity Extension SERVICE MERCHANDISE: Announces Golden Tuesdays Program SERVICE MERCHANDISE: Stores To Be Cut In Half SIZZLER INTERNATIONAL: FMR Reports Beneficial Ownership TITAN: USWA Slams Titan Once Again TOWER AIR: Taps Young Conaway Stargatt & Taylor TOWER AIR: Committee Taps Blank Rome Comisky & McCauley LLP UNIDYNE: Plans Reorganization US LEATHER: Motion To Adopt Key Employee Retention Plan WASTE MANAGEMENT: Subsidiary To Sell Pacific Waste - Australia WESTSTAR CINEMAS: Seeks Extension of Exclusivity BOND PRICING FOR WEEK OF April 10, 2000 ********* ALTIVA FINANCIAL: Reports Second Quarter Fiscal 2000 Results ------------------------------------------------------------ Altiva Financial Corporation (Nasdaq: ATVA) today reported its financial results for the second quarter of fiscal year 2000 ended February 29, 2000. Net loss before extraordinary item for the quarter ended February 29, 2000 was $3.3 million ($0.85 per share) compared to net loss before extraordinary item of $3.1 million ($0.55 per share) for the quarter ended February 29, 1999. Net income after extraordinary item for the quarter ended February 29, 2000, was $4.4 million ($1.16 per share), compared to net income after extraordinary item of $1.7 million ($0.55 per share) for the quarter ended February 28, 1999. Income (loss) per share was based on approximately 3.8 million and 3.1 million weighted- average shares of common stock on February 29, 2000 and February 28, 1999, respectively. Stockholders' equity at February 29, 2000 was $23.1 million, compared to $18.6 million at November 30, 1999. At February 29, 2000, Altiva had $3.1 million in unrestricted cash, including cash in transit, compared to $11.3 million in unrestricted cash at November 30, 1999. Subsequent events may cause a restatement of the value of certain of the assets carried on Altiva Financial's balance sheet and a commensurate increase in expense and a related reduction in net worth. Altiva Financial previously announced that it had sold $14.0 million principal amount of 12% Secured Convertible Senior Notes due 2006, with net cash proceeds to Altiva Financial of $4.0 million and that it had refinanced most of the $30.4 million principal amount of its outstanding 12-1/2% Subordinated Notes due 2001. While these events generated additional liquidity for Altiva Financial, viability of Altiva Financial's operations remained dependent on improving loan production by The Money Centre, Inc., Altiva Financial's wholly-owned operating subsidiary, and upon selling the company's existing loan inventory. During the calendar quarter ended March 31, 2000, loan production by The Money Centre, Inc. was significantly below levels that the company expected. In addition, as of March 31, 2000, the sale price of loans sold during the period were lower than the company expected. These events contributed to a significant deterioration in Altiva Financial's available cash. As a result of Altiva Financial's escalating liquidity problems and continuing losses in the Las Vegas operation, the Board of Directors authorized the closing of Altiva Financial's operations in Las Vegas, Nev. In addition, the Board of Directors has instructed management to seek an immediate cash infusion. Management is actively pursuing such an infusion. Without such an infusion, the Company may not be able to continue operations for any determinable period of time and in such a case will consider alternatives, including seeking an arrangement with its creditors, an orderly winding- down of the business or protection as a debtor under the United States Bankruptcy Code. Altiva Financial also announced today that both Spencer I. Browne and Hubert M. Stiles, Jr. have elected to resign from Altiva Financial's Board of Directors, effective immediately. Altiva Financial Corporation is a specialty financial services company that originates, purchases, sells sub-prime home equity loans, conventional home improvement loans, as well as debt consolidation loans and FHA Title I loans. The Company is headquartered in Atlanta, Georgia and maintains 20 branch offices nationwide. AMERICAN HEALTHCHOICE: Announces Approval of Disclosure Statement ----------------------------------------------------------------- American HealthChoice, Inc. (OTCBB:AHIC) today announced that the Company's Amended Joint Disclosure Statement was approved by the United States Bankruptcy Court on April 6, 2000. The Company is in the process of distributing the Plan, the Order Approving the Disclosure Statement, the Disclosure Statement and a Ballot to creditors, equity security holders and other parties in interest as of April 6, 2000. A hearing on Confirmation of the Plan is fixed for May 16, 2000. Dr. J. W. Stucki, President and Chief Executive Officer of American HealthChoice stated, "I believe that the Plan will be confirmed and the reorganization completed by June 30, 2000." An important provision of the Plan is the acquisition of three established clinics with expected gross annual revenue of $5,000,000 and expected cash flow of approximately $1,500,000. The purchase price is approximately $6,000,000 with $900,000 in cash at closing and the remainder in a debenture, which will be convertible into common stock if annual cash flow targets are achieved over a three year period. In addition, the Plan allows the debenture holders, who are owed$3,385,000 face amount, to convert their debentures into a fixed amount of common stock. The acquisition and future working capital requirements will be funded through an infusion of approximately$1,500,000 in new capital. The debt conversion and the acquisition of the clinics will significantly increase the number of outstanding shares of common stock. In this regard Dr. Stucki stated, "Although the number of outstanding shares will increase, shareholder value will be enhanced through a healthy balance sheet and future profits at the acquired clinics." Dr. Stucki also stated, "Our existing clinics continue to be profitable and the Company expects to report a profit for the three months ended March 31, 2000." American HealthChoice, Inc. is a provider of healthcare services and operates primary care clinics located in Texas and Louisiana. Its stock is quoted on the OTC Bulletin Board under the symbol "AHIC." AMERISERVE: Loses Burger King Account ------------------------------------- AmeriServe Food Distribution Inc., which filed chapter 11 on Jan. 31, said it will lose its account with 5,800 Burger King restaurants, costing the bankrupt company $2.2 billion of its $6.2 billion in annual revenue, the Associated Press reported. AmeriServe chief executive Ronald Rittenmeyer said the company would lay off 1,400 to 1,600 of its roughly 6,000 employees (about 25 percent), and is considering whether it wants to continue as a stand-alone company, merge with a partner or sell some of its assets, he said. AmeriServe had received $150 million in temporary financing from its two largest customers, Burger King and Tricon Global Restaurants Inc., which operates Pizza Hut, KFC and Taco Bell. Acquisitions that left the company with a heavy debt load caused the company to miss payments to suppliers, resulting in spot shortages of food and paper products at some restaurants, prompting several customers, some Burger King franchisees included, to switch to other distributors. "The Burger King system has already arranged for distribution services for the approximately 5,800 Burger King restaurants currently served by AmeriServe," said Tulin Tuzel, senior vice president of worldwide supply and chief technology officer. "We have agreed with AmeriServe to work through a smooth transition to new distributors over the next several months." Deliveries of food products to Burger King will end in July; however, Rittenmeyer said it would not affect the temporary financing, which runs into August. The company is in talks with Chase and Deutsche Bank about permanent financing, but Rittenmeyer acknowledged that the company probably won't emerge from bankruptcy this year. (ABI 13-Apr-2000) APPLE ORTHODONTICS: Venue Transfer to Houston --------------------------------------------- Last week, the Delaware bankruptcy court in Wilmington transferred the venue of Apple Orthodontics Inc.'s chapter 11 bankruptcy to Houston at the request of one of Apple's creditors, according to a newswire report. Apple, which filed chapter 11 on Jan. 27, opposed the transfer venue at a hearing, as did its unsecured creditors' committee, the official committee of doctors and Apple's two senior secured lenders, Chase Bank of Texas and Bank Paribas. Hon. Mary F. Walrath, who presided over the case in Delaware, cited new procedures in Houston bankruptcy courts among her reasons for the transfer. "I am aware of the new rules in the Houston court regarding seeking to solve the problem articulated by the debtor about prompt scheduling of hearings," she noted in her ruling. "The rules provide that a complex case will be given precedence and will be expedited on the court's calendar. And, quite frankly, comparing it to my own calendar, I think they may be able to give the debtor a little better service than our calendar has been able to." The transfer motion was prosecuted by Samuel M. Stricklin of the Dallas firm of Sheinfeld, Maley & McKay P.C. (ABI 13-Apr-00) ARM FINANCIAL: Signs Purchase Agreement with 1st Atlantic --------------------------------------------------------- ARM Financial Group Inc., debtor, announced that it has entered into a stock purchase agreement whereby 1st Atlantic Guaranty Corp. will acquire ARM Financial Group's wholly owned subsidiary SBM Certificate Co. for $650,000, $400,000 of which will be placed in escrow for 18 months following the closing of the transaction. The escrowed proceeds from the SBM sale will be used to fund certain indemnification obligations of the company and is subject the approval of the U.S. Bankruptcy Court for the District of Delaware. Upon approval, the transaction is expected to close in the second quarter of 2000. BOSTON CHICKEN: Court Grants Sixth Extension of Exclusivity ----------------------------------------------------------- The Debtors have filed previous motions to extend the exclusivity period, and the Court's latest order in this regard is to grant extension of the exclusive period to obtain acceptances of plans of reorganization to March 21, 2000. Subsequent to the court's previous order governing the extension of exclusivity period, the court approved the Debtors' Disclosure Statement for Second Amended Plan. The Disclosure Statement Order provides that March 22, 2000 is fixed as the last day for filing and serving written objections to the Plan. It also schedules a preliminary confirmation hearing on April 4, 2000, and orders that a final confirmation hearing will be set to commence not later that the week of May 8, 2000. The Debtors report that they have been working diligently to obtain acceptances of the Plan. However, given the deadlines established in the Disclosure Statement Order, the Debtors say, it is impossible to obtain acceptances of a plan of reorganization before the current deadline of March 21, 2000, and they consider that an additional short period of time is necessary to finalize confirmation issues relating to the Plan. The Debtors believe that if the exclusive period is not extended, the process now in place for plan confirmation will be destabilized and the completion of the solicitation of acceptances of the Plan will be negatively impacted. In the Debtors' business judgment, it is of significant economic importance that the current solicitation of acceptances of the Plan continues, given the pending transaction with Golden. The Debtors explicate that this extension is not sought to pressure creditors to submit to the reorganization demands but to maintain Boston Chicken's operations as the focal point of plan negotiations and to protect the Company's ongoing business value for all creditors and parties in interest. The Debtors tell the Court there is no indication that they are unwilling to negotiate in good faith with their creditors. They believe that the extensions they seek will not do any prejudice to creditors. Furthermore, the 1996 Lenders are agreeable, the Debtors say, to an extension of the deadline for seeking acceptances of the Plan to May 31, 2000. The Debtors point out that the Court has previously granted both the 1996 Lenders and the Official Committee of Unsecured Creditors the right to terminate exclusivity on 10 days' notice to the Debtors, but no such notice has been given. They suggest that such rights be continued in connection with the requested extension of the exclusive period through May 31, 2000. The motion was granted. (Boston Chicken Bankruptcy News - Issue 22; Bankruptcy Creditors' Service Inc.) CARSON INC: Terra Industries' Revolving Credit Line Replaced ------------------------------------------------------------ Terra Industries Inc. has completed a $225 million asset-based financing with Citibank, N.A., as Administrative Agent, and Salomon Smith Barney Inc., as Arranger, that replaces Terra's existing $63 million revolving credit line and amends and restates its $109 million long-term bank notes. The credit arrangements, which expire in January 2003, contain three components: a $116 million revolving credit facility, a $59 million amended Canadian term loan and a $50 million consolidated term loan. The revolving credit facility and amended Canadian term loan are secured primarily by Terra's accounts receivable and inventories; the consolidated term loan is secured primarily by Terra's fixed assets. Anglo American plc, which owns 49.5% of Terra's outstanding common shares, is providing limited credit support for the consolidated term loan. Available borrowings under the revolving credit facility and amended Canadian term loan will depend upon Terra's accounts receivable and inventory levels. Interest rates for borrowings under the agreement will not exceed spreads over LIBOR of 4% for the consolidated term loan, 3.25% for the amended Canadian term loan and 2.75% for the revolving credit facility. Mandatory principal repayments are $1.25 million quarterly on the consolidated term loan. The agreement requires Terra to attain minimum quarterly earnings before interest, income taxes, depreciation and amortization (EBITDA) as more particularly defined in the agreement. The minimum annual EBITDA requirements for calendar 2000 and 2001 are $45 million and $90 million, respectively. CBO: Moody's Takes Action ------------------------- Moody's Investors Service announced today that it has downgraded three tranches within Alliance Collateralized Holdings Series 1997-1. Moody's also downgraded the "mezzanine" tranche of Putnam CBO I Limited. At the same time, Moody's has confirmed the ratings of four tranches within York Funding Ltd. Series 1998-1. The downgrades of Alliance Collateralized Holdings Series 1997-1 and Putnam CBO I Limited, were prompted by a reduction in the credit quality of the portfolio, including large exposures to Caa credits as well as a sizable loss of par in the underlying assets. In both of these transactions, a mix of domestic and emerging market credit downgrades and defaults have contributed to the diminished quality of the collateral. According to Moody's, the confirmation of the existing ratings on the four tranches in York Funding Ltd. Series 1998-1 reflects an improvement in the average rating of the collateral pool. Moody's had the transaction on review for possible downgrade in May 1999. RATING ACTION: DOWNGRADE The ratings of the following tranches have been downgraded: Issuer: Alliance Collateralized Holdings Series 1997-1 Tranche Description: $144 MM Class A-2 Floating Rate Second Senior Secured Notes, due 2009; from Aa1 to Aa3 $52.1 M Class B Third Senior Secured Notes, due 2009; from Ba2 to B3 $36 M Class C Subordinated Notes, due 2009; from Caa1 to Ca (Principal Only) Issuer: Putnam CBO I Limited Tranche Description: $53.5 M Second Priority Senior Secured Fixed Rate Notes, due 2009; from Ba2 to B1 RATING ACTION: CONFIRMATION The ratings of the following tranches have been confirmed: Issuer: York Funding Ltd. Series 1998-1 Asset Backed Notes Tranche Description: $21 M Class II Mezzanine Notes; Rated Baa1 $51 M Class III Mezzanine Notes; Rated Baa3 $45 M Class IV Subordinated Notes; Rated B1 $15 M Class V Subordinated Notes; Rated B3 COHO ENERGY: Plan Confirmed With Modifications ---------------------------------------------- On March 20, 2000 the United States Bankruptcy Court for the Northern District of Texas confirmed, with several modifications, Coho Energy Inc.'s plan of reorganization. The modifications to the plan include the retention by the common shareholders as of Feb. 7, 2000 of 20% of any proceeds from Coho's lawsuit against Hicks, Muse as well as 40% of any net sale proceeds from the company's Tunisia permit. The company has also announced a change in the number of shares to be outstanding after the effectiveness of the plan. It had previously noted a possible reverse stock split to proportionately reduce the number of authorized and outstanding shares to help the company satisfy Nasdaq listing requirements. To more efficiently effect this change, the company amended its plan so that the change in capitalization is effective as part of the plan of reorganization. This change will entail the issuance of one share of new common stock for each 40 shares of old common stock, rather than the one-for-one exchange ratio previously planned. The change will not affect the relative percentage ownership interests among various groups of shareholders after the effectiveness of the plan. In addition to the modifications to the plan of reorganization the company also announced that its President and Chief Executive Officer, Jeffrey Clarke, is expected to resign concurrently with the effectiveness of the company's confirmed plan of reorganization. At that time, Mike McGovern, a Managing Director of Pembrook Capital Corporation and formerly the Chairman and Chief Executive Officer of Edisto Resources Corporation, is expected to be elected as the new President and Chief Executive Officer. The change in chief executive officer results from the request of the majority holders of the company's 8 7/8% bonds and was not a decision taken by the current board of directors. The plan entails the issuance of more than a majority of the company's stock to the bondholders. The confirmed plan, its effectiveness, and the concomitant change in the company's management, was anticipated to occur on March 31. COHO ENERGY: Reports Plan Effective To SEC ------------------------------------------ Coho Energy, Inc.'s Plan of Reorganization as filed in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, has become effective. Under the Plan, the consummation of the new bank credit agreement and the standby loan agreement provided funds for the repayment of Coho's existing bank debt. The company's 8 7/8% senior subordinated notes due 2007 were exchanged for 96% of the outstanding shares of a new common stock of Coho, with the existing shareholders receiving the balance. The new common shares issued as a result of the plan of reorganization are expected to trade on the Nasdaq Over the Counter market under the symbol CHOH as soon as possible. Coho Energy, Inc. is a Dallas-based independent oil and gas producer focusing on exploitation of underdeveloped oil properties and exploration in Oklahoma and Mississippi. DAEWOO ELECTRONICS: Courts declare Annual Meeting invalid --------------------------------------------------------- The workout plan for Daewoo Electronics has reached a bottleneck, with the Seoul District Court invalidating the firm's March 24 annual general meeting of shareholders. Minor shareholders of the firms had earlier filed a request for a court injunction on resolutions approved at the meeting as they had been banned from participating and had been denied their request to make a proposal at the meeting. Daewoo Electronics and its creditors' group had passed resolutions to convert a total of W84 billion of the firm's debt into equity. (Digital Chosun 11-April-2000) DOW CORNING: Judge Hears Breast-Implant Suit Arguments ------------------------------------------------------ Yesterday, a Dow Corning Corp. attorney asked a federal judge to set aside a bankruptcy court's opinion the company says modifies and jeopardizes a $3.2 billion settlement over silicone breast implants, the Associated Press reported. George Tarpley asked U.S. District Judge Denise Page Hood to vacate federal Bankruptcy Judge Arthur J. Spector's December opinion that women opposed to the settlement may sue Dow Corning's parent companies, calling the opinion "an error of law" that, if allowed to stand, could cripple the settlement that took years to reach and has been approved by 94 percent of the 112,774 women who last year voted on it. The companies and lawyers for women who voted in favor of the settlement say Spector's opinion changed the terms of the settlement he approved Nov. 30, invalidating the deal that was part of Dow Corning's $4.5 billion plan to emerge from chapter 11 bankruptcy. Tarpley told Judge Hood that Dow Corning, a joint venture between Dow Chemical Co. and Corning Inc., was prepared to begin paying claimants if Judge Spector's opinion is reversed. "It serves no purpose whatsoever to pay out $3 billion over a number of years only to have this litigation continue in other forms, as it did before bankruptcy," Tarpley said. "We want to shut down litigation. If we're gonna pay money for it, we want it over with." Under the settlement, Dow Corning would pay out $3.2 billion to settle claims by more than 170,000 women blaming various health problems on silicone implants once made by the company. But Judge Spector's Dec. 21 opinion stated that women who voted against the settlement still could sue Dow Chemical and Corning if they chose. A Dow Chemical spokesman said that if Judge Spector's opinion stands, "then the plan won't be confirmed." John White, one of the attorneys representing the a group of women from Nevada, told Judge Hood "there's no reason, no bankruptcy purpose, for any injunction or stay against suing Dow Chemical over implants." The hearing is to continue today.(ABI 13-Apr-00) EAGLE FOOD: Seeks Extension of Time To Assume/Reject Leases ----------------------------------------------------------------- The debtor, Eagle Food Centers, Inc. seeks court authority to extend the time to assume or reject unexpired nonresidential real property leases. Most of the debtor's stores and the debtor's distribution center are operated out of leased premises. The debtor has already rejected twenty-eight leases. The disposition of the debtor's other leases will depend on whether the rejection of such leases makes economic sense considering the profitability of individual stores. Until the April 21 bar date passes, and the debtor understands the scope of potential lease rejection damage claims, the debtor will be unable to adequately evaluate its leases. The debtor continues to monitor and evaluate the performance of its stores. The debtor estimates that it will require an extension of the time to assume or reject its leases until the earlier of the effective date of the debtor's plan or 120 days from the current deadline to August 29, 2000, in order to make fully-informed decisions with respect to the leases. EMPRESAS MUNICIPALES/TERMOEMCALI: S&P Affirms 'CCC' Ratings ----------------------------------------------------------- Standard & Poor's affirmed its triple-'C' foreign currency and local currency corporate credit ratings on Empresas Municipales de Cali S.A. (Emcali). At the same time, Standard & Poor's affirmed its triple-'C' foreign currency rating on TermoEmcali Funding Corp.'s (TermoEmcali) US$165 million senior secured bonds due 2014. Both entities have been placed on CreditWatch with developing implications, which means that their ratings may be raised or lowered depending on the outcome of the recent intervention by the Colombian Public Service Superintendencia in Emcali. The affirmation follows the news on April 3, 2000, that the Colombian Public Service Superintendencia intervened and took management control of Emcali for three months in an attempt to solve Emcali's financial difficulties. The intervention followed the Feb. 28, 2000, vote by Cali's city council against a recapitalization plan for the near-insolvent utility. As a result of the vote, Cali's mayor requested the intervention of the Colombian Public Service Superintendencia. Neither the Superintendencia nor the government is required to make a capital infusion to pay Emcali's creditors, including TermoEmcali. Rather, the Superintendencia is likely to end the financial crisis by selling Emcali's energy company to outside investors. Empresas Publicas de Medellin (EPM) and two private firms have expressed interest in purchasing the company's assets. If Emcali's financial problems are not resolved within three months, the Superintendencia has stated that all of Emcali's assets might be fully liquidated. EPM, the most likely purchaser of the assets, is an efficient organization with the expertise to run Emcali. EPM also has an adequate capital base. Emcali's acquisition by this city-owned company might be perceived favorably by anti-privatization groups in the Cali region. The major impediment to the recapitalization plan proposed by the mayor and rejected by the city council early this year, was the opposition of Emcali's unions. Despite these advantages, TermoEmcali bondholders must agree prior to any sale of Emcali's assets that the new entity is not materially less creditworthy than Emcali. Further, these bondholders have the right to preclude the transfer of any of Emcali's substantial assets. There have been some other near-term positive developments for TermoEmcali bondholders since the Superintendencia intervened. The Superintendencia has suspended all liens against Emcali by Colombian national banks (more than US$200 million), although foreign obligations must continue to be honored during the three- month intervention period. Because of the de facto payment moratorium on Emcali's domestic loans, the company should have increased cash available to become current on its payments to TermoEmcali. In fact, Emcali paid the outstanding US$2.3 million that was 60 days overdue on April 7, 2000, within the 30-day cure period allowed under the power purchase agreement (PPA), precluding an event of default under the PPA. Additionally, the new Emcali board plans to meet with TermoEmcali this week to discuss a payment plan for the outstanding payments that are currently 60 days overdue, to prevent a future event of default under the PPA. TermoEmcali is a 234MW combined-cycle facility owned by TermoEmcali I S.C.A. E.S.P. The owners of the project company include Emcali, subsidiaries of InterGen (InterGen is owned by subsidiaries of Bechtel Enterprises and Royal Dutch Shell) and Corporacion Financiera del Pacifico, a local Cali business group. The project's rating reflects the uncertainty about the cash flow stream that will come from the sale of capacity and energy to Emcali. Emcali is a diversified, municipally-owned utility providing electricity, water, sewage, and local landline telephone service to a population of about 2 million located in and around the city of Cali, Standard & Poor's said. IMPERIAL HOME DCOR: Seeks Extension of Exclusivity --------------------------------------------------- The Imperial Home Decor Group Inc. filed an application with the to extend the period in which the company has the exclusive right to file and advance a plan of reorganization in its chapter 11 case. A hearing to consider the application is scheduled for May 18, 2000. Upon extension of its exclusivity period, the company would be granted another 120 days, until Sept. 4, 2000, in which only it may file a plan of reorganization, and another 60 days after that date, until Nov. 3, 2000, during which only it can solicit creditors to vote for the plan. The company also announced that the Official Committee of Unsecured Creditors in its chapter 11 case indicated its support for the motion. The company emphasized, however, that the decision to grant its extension of exclusivity is solely within the discretion of the court. The company reports that it has improved liquidity during the critical spring production and distribution season, with up to $75 million available under its Debtor-in-Possession (DIP) financing facility. IHDG has extended its marketing reach by moving into new sales channels such as Eddie Bauer Home Stores, securing new agreements with high-profile, brand-name lines, and maintaining agreements with well-known licensors as well as high-profile designers such as Ralph Lauren. The company has also recently converted its distribution agreement with Laura Ashley to a licensing agreement, enabling IHDG to design and manufacture the Laura Ashley-licensed product. Employee levels have been reduced by approximately 7 percent in the company's U.K. operations in line with current sales volume and expectations. Imperial Home Decor Group is the world's largest designer, manufacturer and distributor of residential wallcovering products. Headquartered in Cleveland, Ohio, Imperial Home Decor Group supplies home centers, national chains, independent dealers, mass merchants, design showrooms and specialty shops. In 1998, Imperial Home Decor Group reported net sales of $416.7 million. INTEGRATED HEALTH: SNH Announces Agreements with Integrated ----------------------------------------------------------- Senior Housing Properties Trust, Newton, Mass., announced that is has a conditional agreement with Integrated Health Services Inc. and a related agreement with HEALTHSOUTH Corp., according to a newswire report. SNH currently leases or first mortgage finances a total of 39 nursing homes to Integrated. The contractual amount of rent and interest due from Integrated to SNH for these leases and mortgages is approximately $26.9 million per year. Integrated had stopped paying rent and interest on these obligations in January, filing for bankruptcy in February. The conditional agreement between SNH and Integrated includes new leases for certain nursing homes. The agreement between SNH and Integrated is contingent upon approval by the Delaware bankruptcy court. "SNH is pleased to have reached an agreement with Integrated early in its bankruptcy process," said David J. Hegarty, President of SNH. "SNH believes the best way to preserve values is to free its properties from the uncertainties which arise from a prolonged bankruptcy process." Senior Housing Properties Trust is a real estate investment that owns senior housing properties located in 26 states. KELLER FINANCIAL: Trustee Sues Auditors and Executives ------------------------------------------------------ Kevin O'Halloran filed a suit accusing auditors and executives of Keller Financial Services, a company operating under Chapter 11 bankruptcy protection, of misrepresenting the company's financial picture and defrauding investors, The AP relates. O'Halloran, who hopes to collect $91 million still owed to about 6,000 investors, says that Keller Financial Services, which specializes in high-interest car loans to people with bad credit histories, should pay for not disclosing to the investors the true financial condition of the company, The Associated Press reports. KENETECH: Court Confirms Judgment in Favor of Kenetech ------------------------------------------------------ In the action captioned Quadrangle Offshore (Cayman) LLC and Cerberus Partners, L.P. vs Kenetech Corporation, the Supreme Court of the State of Delaware affirmed on all counts the judgment previously entered by the Court of Chancery of the State of Delaware in favor of Kenetech. The action had been brought by former holders of Kenetech's preferred stock. Plaintiffs had alleged, among other things, (1) that Kenetech was in liquidation and had been in liquidation prior to the mandatory conversion of the preferred stock on May 14, 1998, (2) that the plaintiffs were entitled to receive a liquidation preference for each share of preferred stock in any distribution Kenetech might make, and (3) that Kenetech had acted in bad faith with respect to the holders of preferred stock. The judgment below had rejected each of these claims. KITTY HAWK: Moody's Lowers Debt Ratings (Senior Implied To Caa2) ----------------------------------------------------------------- Moody's Investors Service downgraded the ratings of Kitty Hawk Inc.'s senior secured debt to Caa2 from B1 and senior implied rating to Caa2 from B2, and placed the ratings under review for possible further downgrade. This rating action follows the company's announcement that it is unlikely to be able to meet the May interest payment on its senior secured notes in the absence of an asset sale. Moody's considers the probability of an asset sale sufficient to meet the upcoming interest payment to be low. Kitty Hawk also disclosed that it is not in compliance with certain equipment maintenance covenants under the senior secured notes, and has not released its audited financial statements for fiscal, 1999. Debt ratings downgraded are: Kitty Hawk, Inc.: Senior Secured Notes to Caa2 from B1; Senior Secured Revolving Credit to Caa2 from B1; Senior Secured Term Loan to Caa2 from B1; Senior Implied to Caa2 from B2; Issuer Rating Caa3 from B3. Maintenance expense was greater than expected during the first quarter, and maintenance delays from damage to certain of the company's wide body aircraft reduced revenue service for these aircraft. These items, combined with weaker than anticipated demand for Kitty Hawk's air lift service during the quarter and considerably higher fuel prices has reduced the cash position to below the company's upcoming debt service obligations. As well, the company plans to write down certain of its DC-8 aircraft and is evaluating its L-1011 fleet for economic viability, which reduces Moody's expectations for debt holder recovery under a liquidation. The ratings could be downgraded further depending on anticipated recovery values in liquidation. Kitty Hawk, Inc., based in Dallas-Ft. Worth, Texas, operates aircraft to move cargo from airport to airport in the United States and around the world, and manages on-demand charters through its air logistics business. KITTY HAWK: Shares Lose 80% of Value ------------------------------------ Kitty Hawk Inc., the Dallas-based air freight operator, said yesterday that their shares lost 80 percent of their value after the company disclosed financial problems that one analyst said could even lead the company into bankruptcy, according to Reuters. Traders said the company's publicly held senior debt also fell sharply and was bid on yesterday at 30 cents on the dollar, down about 40 since the announcement. The company said that fuel costs, delays and unexpected costs for aircraft maintenance, as well as weaker-than-expected demand for scheduled freight, "seriously eroded cash resources" and increased first- quarter losses. In addition, Kitty Hawk said it had failed to comply with the engine maintenance requirements of its lenders for its fleet of Lockheed L-1011 and Boeing 747 aircraft, which might require $35 million to fix. As a result, the company might not be able to pay the $17 million interest due on May 15 on its senior secured notes on time, or to fix its non-compliance, without selling or refinancing "significant" assets. Failure to make that debt payment "could lead to voluntary or involuntary bankruptcy in the near future," said Bear Stearns analyst Ed Wolfe. KMART: Annual Meeting Set For May 16, 2000 ------------------------------------------ The 2000 annual meeting of stockholders of Kmart Corporation will be held at the Detroit Opera House, 1526 Broadway, Detroit, Michigan on Tuesday, May 16, 2000, beginning at 10 a.m. E.T., for the following purposes: 1. To elect five Class II directors for a term expiring in 2003. 2. To increase the number of shares of common stock reserved for issuance under the 1997 Long-Term Equity Compensation Plan. 3. To ratify the appointment of PricewaterhouseCoopers LLP as independent accountants of the company for the 2000 fiscal year. 4. To act upon a stockholder proposal, if presented at the meeting, concerning the elimination of the classified Board of Directors. 5. To transact such other business as may properly come before the meeting. Stockholders of record of Kmart common stock at the close of business on March 17, 2000 are entitled to notice of and to vote at the meeting. LOEWEN: Clarification on Provisions of Original Bar Date Order -------------------------------------------------------------- The Original Bar Date Order provides for an Amended Schedules Bar Date, established as the later of the December 15, 1999 general bar date or 30 days after notice is served pursuant to the Original Debtors' amendment of the Original Schedules to reduce the undisputed, noncontingent and liquidated amount, or to change the nature or classification of a claim. The Debtors desire that such provisions also apply to additional types of amendments to the Original Schedules. They request that the Amended Schedules Bar Date apply to amendments to the Original Schedules to: (a) add claims; (b) supplement or change the information listed for entities holding scheduled claims; or (c) change the amount, liability, nature or classification of any claim, including the designation of any claim as disputed, contingent or unliquidated. In addition, the Debtors propose that: (i) the filing of any proof of claim, or an amendment to a previously filed proof of claim, in respect of an amendment to the Original Schedules, be governed by and subject to the terms of the Original Bar Date Order; and (ii) the Amended Schedules Bar Date will apply only to those entities whose Claims are affected by an amendment to the Original Schedules, and only with respect to the liabilities to which such amendments relate. The Debtors ask the Court for an order for the confirmation of such clarification. (Loewen Bankruptcy News - Issue 21; Bankruptcy Creditors' Services Inc.) MITSUBISHI CORP.: To Post First-Ever Net Loss --------------------------------------------- Mitsubishi Corp. (8058) apparently suffered its first ever parent-only net loss (apart from during the chaos immediately following World War II) in the year ended March 31. The trading house giant has revised its earnings predictions downward and is set to report a 16 billion yen net loss compared to an 11.5 billion yen net profit recorded in fiscal 1998. The firm booked 140 billion yen in extraordinary loss in fiscal 1999, of which some 65 billion yen was related to early retirement incentive payments as part of the company's restructuring. The rest came from money spent to cover a shortage in reserves for retirement and severance obligations and due to withdrawal from money-losing operations. The trading house did manage to see a 20% increase in pretax profit to about 77 billion yen and even booked about 20 billion yen in extraordinary profit, but these were insufficient to offset the extraordinary loss. "We decided to cover future payments for retirement, severance and other obligations in order to get the losses over with," said Vice President Koji Furukawa. On a consolidated basis, Mitsubishi also estimates it will post about the same amount in extraordinary loss and that its net profit will plunge 76% to 6 billion yen. Mitsui & Co. (8031) has also revised downward its forecast, apparently managing a parent-only net profit of about 5 billion yen, down 70%, but only after recording an extraordinary loss of 43 billion yen to partially cover a shortage in its retirement and severance pay reserves. The trading house estimates pretax profit at about 60 billion yen, a slight increase. Group net profit is pegged at 35 billion yen, a jump of 17%. Marubeni Corp. (8002), another major trading house to revise downward earlier profit projections, estimates parent-only net profit at 6 billion yen, compared to a 20 billion yen loss in fiscal 1998. Some 120 billion yen in extraordinary loss will be booked, mainly from dissolution of affiliates and revaluation loss on properties bought for resale. Marubeni will forego a dividend payout for the first time in 47 years, despite 60 billion yen in extraordinary profit from asset sales. Mitsubishi and Mitsui will maintain a dividend payout of 8 yen per share. (Nikkei 11-April-2000) NEUMAN DISTRIBUTORS: Files for Chapter 11 Bankruptcy Protection --------------------------------------------------------------- David Shook, writing for The Record, reports that Neuman Distributors in Moonachie, a pharmaceutical wholesaler owned by prominent Bergen County businessman Sam Toscano Jr., filed for bankruptcy protection last week, laying off its workers giving them final paychecks that some banks would not immediately honor because of the bankruptcy filing. "The company was unable to obtain product with which to supply its own customer base," says Hackensack bankruptcy lawyer Robert Shapiro, explaining the reasons Neuman chose bankruptcy protection. "The banks were choking off cash availability that was required to pay bills." If Neuman cannot rework its credit arrangements and obtain cash, the company may liquidate and close. Several employees said they believed the 330,000-square-foot Teterboro facility, built last year and outfitted with a costly conveyer belt system from Austria, over-extended the company, relates Mr. Shook. NISSAN MOTOR: To sell empty showrooms ------------------------------------- Nissan Motor, the Japanese carmaker which is 36.8 per cent owned by Renault, is considering selling vacant properties in blocks. The scheme, unprecedented in the Japanese car industry, would involve selling groups of domestic showroom properties closed under Nissan's restructuring plan unveiled last October. Thierry Moulonguet, chief financial officer, said that the idea had already attracted investor interest. "A lot of investors, both Japanese and foreign, are looking at the [property] market and saying that now is a good opportunity to come and build a retail base in Japan," he said. As part of the restructuring, Carlos Ghosn, Nissan chief operating officer, promised to close 10 per cent of showrooms and 20 per cent of sales affiliates by 2002. Last week, Mr Moulonguet said that Nissan had already shut more than 100 dealership outlets, equivalent to about 3 per cent of its 3,000- strong retail network. He added that he would consider packaging several dealerships together for sale on a "case-by-case basis". The move suggests that Nissan is tackling one of the most sensitive - and problematic - issues facing corporate Japan as it tries to eliminate excess capacity. In many industries, particularly manufacturing, distribution networks harbour heavy debts and inefficiencies due to over-expansion. As a result, nearly 40 per cent of car dealers in Japan are generating losses. Loans to troubled dealers have contributed to mounting debts at some Japanese carmakers, including Nissan. The group had net interest-bearing debts of Y1,382bn ($13bn), excluding finance-related liabilities, at the end of September 1999. It was not clear how many of Nissan's sales affiliates, which operate more than one dealership, have been closed. Analysts have been hoping that asset sales would improve Nissan's financial situation. The carmaker has warned of more than Y600bn in net losses in the year ended in March because of weak sales and restructuring charges. This week, Nissan confirmed the sale of its aerospace division to Ishi kawajima-Harima Heavy Industries, a Japanese engineering group. Last month, it sold its shares in local dealership Tokyo Nissan. (Financial Times 12- April-2000) PAXSON COMMUNICATIONS: Annual Meeting Set For May 1, 2000 --------------------------------------------------------- The annual meeting of stockholders of Paxson Communications Corporation will be held at The Ritz-Carlton Amelia Island, 4750 Amelia Island Parkway, Amelia Island, Florida 32034, on May 1, 2000, at 11:00 a.m., local time, for the following purposes: 1. To approve an amendment to the company's Certificate of Incorporation to adopt a classified board of directors so that only one-third of the directors would be elected annually; 2. To elect nine directors to serve for terms of one to three years as set forth in Proposal 1, or if Proposal 1 is not approved, until the next annual meeting of stockholders, and until their successors have been duly elected and qualified; 3. To approve the issuance of shares of company Class A common stock upon conversion of shares of its Series B Convertible Exchangeable Preferred Stock and certain warrants issued to subsidiaries of National Broadcasting Company, Inc., under the terms of those instruments; 4. To approve an amendment to the company's Certificate of Incorporation to increase the total number of authorized shares of common stock from 197,500,000 shares to 327,500,000 shares, the number of authorized shares of Class A common stock from 150,000,000 shares to 215,000,000 shares, and the number of authorized shares of Class C non-Voting common stock from 12,500,000 shares to 77,500,000 shares; 5. To ratify the appointment of PricewaterhouseCoopers LLP as the company's independent certified public accountants for 2000. The Board of Directors has fixed the close of business on March 29, 2000, as the record date for the determination of stockholders entitled to notice of and to vote at the annual meeting. PRIMARY HEALTH: Committee Objects to Exclusivity Extension ---------------------------------------------------------- The Official Committee of Unsecured Creditors objects to the motion of the debtors, Primary Health Systems Inc. and its affiliates, seeking to extend the exclusive plan filing deadline to June 30, 2000 and the exclusive solicitation period to August 31, 2000. The committee claims that the debtor asserts that cause exists to further extend the exclusive period due to its pending sale to The Cleveland Clinic Foundation for the sale of two hospitals and the IMC. However, the committee states that the debtor made no reasonable effort to develop a consensual plan prior to the sale announcement. And the Committee is quick to point out that it was never informed of the sale, and in fact learned of the sale from a news reporter. The Committee sees no evidence of plan negotiations. Instead, the Committee sees a case being operated for the sole benefit of the secured creditor. The debtor states that extending the exclusive period will not materially prejudice the interests of creditors; and, in fact, will be beneficial to the estate. The Committee points out that $25 million in administrative expenses are unpaid and that there is no agreement that any of these claims will receive payment from the sale proceeds, and the lenders have refused to pay the claims. At a minimum, the Committee states that the debtors must be able to show reasonable prospects of confirming a plan. According to the Committee, the debtor has no viable plan of reorganization. The committee strongly believes that exclusivity should not be extended. SERVICE MERCHANDISE: Announces Golden Tuesdays Program ------------------------------------------------------ Service Merchandise Company, Inc. (OTCBB:SVCDQ) announced that all of its 221 stores will now participate in its Golden Tuesdays Senior Citizen Discount Program, under which adults aged 50 and over will enjoy an additional 5 percent discount every Tuesday. Service Merchandise initially launched its Golden Tuesday Senior Citizen Discount Program on October 26, 1999 to a select group of markets. "In our test markets we found that our mature shoppers enjoyed our emphasis on convenience, service and value at even lower prices. We are very pleased to now be able to offer this program to all of our aged 50 and above shoppers in all of our 221 stores," said President and Chief Operating Officer Charles Septer. Every Tuesday, customers 50 years old and over will receive an additional 5 percent off on all purchases. This includes all sale, clearance, and regularly priced merchandise in the store. In addition, the discount may be used in conjunction with other coupons, specials or discount offers. Shoppers may confirm their eligibility with a valid drivers' license or state identification card. "We value our strong base of mature customers, and we want to make sure we provide them with every incentive to shop with us more often," said Mr. Septer. "These customers enjoy our wide selection of fine jewelry and gift items in addition to our wide array of home, health and personal care products." (Service Merchandise Bankruptcy News Issue 11; Bankruptcy Creditors' Service Inc.) SERVICE MERCHANDISE: Atty. Rice Agrees To Slice Stores In Half --------------------------------------------------------------- Glenn B. Rice, a New York attorney charged with fighting for each cent owed to a group of creditors by Service Merchandise Co. Inc., announced in court the company's plan to slice its stores in half, reports Stacey Hartmann, a Staff Writer from The Tennessean. The plan, which would result in cutting more than 5,000 jobs because of the downsizing of its stores, aims to unleash real estate value previously pent up in non-productive warehouse space, a leftover from the company's catalog showroom days. Now, with its vendors and creditors fully informed of its plans, the Brentwood-based retailer is diving in and spending up to $ 70 million to shrink and remodel about 70 of its 221 stores by September. It plans after 2001 to transform the bulk of its remaining stores. SIZZLER INTERNATIONAL: FMR Reports Beneficial Ownership ------------------------------------------------------- FMR Corp. reports beneficial ownership of 2,860,600 shares of the common stock of Sizzler International Inc., which represents 10.192% of the outstanding common stock of the company. FMR has sole voting and dispositive power over the shares, as does Edward C. Johnson 3d and Abigail P. Johnson by virtue of their positions as Chairman and Director, respectively, of FMR Corp, and their holding predominant voting stock in FMR Corp. TITAN: USWA Slams Titan Once Again ---------------------------------- The United Steelworkers of America are quick to point out that Titan International, Inc. reported in its annual 10-K report, recently filed with the federal Securities and Exchange Commission (SEC), that Titan lost $18.4 million (55 cents/share) before taxes in 1999 and that Moody's Investors Services has owered Titan's debt ratings. The USWA reports that Titan lost more than $20 million on its U.S. operations and foreign profits fell to $2.3 million; A $250 million revolving credit line issued by a consortium of lenders led by Harris Bank of Chicago, Ill. -- a member of the Bank of Montreal (NYSE: BMO) group of companies -- has been cut to $175 million. "Titan's shaky financial situation gets scarier by the day," said John Peno, President of USWA Local 164 of Des Moines, Iowa. Titan Forced Peno's 670-member local into an Unfair Labor Practice Strike on May 1, 1998. "Taylor increased the loan on Sept 17, 1998 to try to finance his union-busting efforts here and at the plant in Natchez, Miss. (where 330 members of USWA Local 303L were forced into an Unfair Labor practice Strike on Sept. 14, 1998). The USWA is hoping that the lender will call in the loan and stop financing Titan TOWER AIR: Taps Young Conaway Stargatt & Taylor ----------------------------------------------- The debtor, Tower Air, Inc. seeks authority to employ and retain Young Conaway Stargatt & Taylor LLP as attorneys for the debtor. The hourly rates for attorneys and paralegals of the firm range form $100 per hour to $410 per hour. The firm will provide legal advice with respect to the debtor's powers and duties in the continued operation of its businesses and management of its business; The firm will prepare and pursue confirmation of a plan and approval of a disclosure statement; The firm will prepare on behalf of the debtor necessary applications, motions, answers, orders, reports and other legal papers; The firm will appear in court to protect the interests of the debtor before the court. TOWER AIR: Committee Taps Blank Rome Comisky & McCauley LLP ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Tower Air, Inc. seeks authority to employ Blank Rome Comisky & McCauley LLP as Delaware counsel and co-counsel with the firm of Holland & Knight LLP. UNIDYNE Plans Reorganization ---------------------------- UNIDYNE Corporation (OTC-Bulletin Board: UDYN) announced that it has begun the process of structuring a reorganization of its business in consultation with financial and legal professionals. The Corporation is reviewing various options in cooperation with its key lenders and suppliers. No corporate decision has been made with regard to reorganization under bankruptcy law. Any reorganization will involve careful consideration of all relevant factors including the best interests of the company's creditors, employees and stockholders. The Company expects to resume normal business operations as part of its reorganization efforts. Further information will be made available after the corporation has structured its reorganization strategy. Kenosha, Wis.-based UNIDYNE Corp. and its subsidiaries manufacture, sell, service and finance a variety of products, including vehicle emissions testing systems, specialized electric motors, and variable speed drives and controls. UNIDYNE also manufactures engine and chassis dynamometer testing systems for a variety of large industrial customers, primarily in the automotive and heavy equipment industries. The Company has facilities in Kenosha, Wis. and Exton, Pa. US LEATHER: Motion To Adopt Key Employee Retention Plan ------------------------------------------------------- United States Leather, Inc., debtor, seeks court authority to adopt a key employee retention plan. The debtor has identified 71 post-petition salaried employees to receive a vacation/severance benefit and a performance based stay bonus to twenty-two of the 71 who are crucial employees. The amount of additional cost to the debtor for vacation/severance benefits under the plan, if all employees stay, is estimated to be approximately $692,018. In connection with the plan, the debtor will ask and Congress Financial Corporation, as lead lender of the debtor's secured creditors, will require that the court grant a superpriority priming lien for all amounts paid for vacation/severance benefits. The debtor will also be requesting a "carve-out" from the debtor's secured lenders for the benefits earned under the plan. The maximum amount of payments achievable collectively by all 22 crucial employees I s$694,700. The plan provides for six Milwaukee employees to receive bonuses ranging from $350 to $1500 and the plan includes the assumption of 5 contracts with key management employees of the Caldwell- Moser division. Assumption of these contracts is essential to maintaining the value of the Caldwell-Moser division which is expected to be sold. WASTE MANAGEMENT: Subsidiary To Sell Pacific Waste - Australia -------------------------------------------------------------- Waste Management Inc. (NYSE:WMI) announced that its international subsidiary, Waste Management International B.V., has reached an agreement to sell Pacific Waste Management, its Australian subsidiary, to Paris-based SITA for $230 million. The Company said it is anticipated that the transaction will be completed in the second quarter. SITA is Suez Lyonnaise des Eaux's waste services division. Pacific Waste Management currently provides services to more than 600,000 residents and 30,000 industrial and commercial customers. The sale is part of Waste Management's strategic plan to re-focus the Company on its North American solid waste operations. Waste Management subsidiaries are in discussions with other parties on the divestiture of certain other international businesses, as well as certain non-core and non-integrated solid waste assets in North America. The Company intends to use the proceeds of these divestitures primarily to reduce debt and over time to repurchase shares and make selective tuck-in acquisitions of solid waste businesses in North America. Waste Management Inc., based in Houston, is the industry leader in providing waste management services. In North America, the Company operates throughout the United States, and in Canada, Puerto Rico, and Mexico, serving municipal, commercial, industrial and residential customers. WESTSTAR CINEMAS: Seeks Extension of Exclusivity ------------------------------------------------ The debtors, Weststar Cinemas, Inc., and its affiliates seek an order further extending plan exclusivity periods. In addition to court approval of the sale of substantially all of the debtors' assets, the debtors have begun the claims analysis process. The debtors established, with the approval of the court, a bar date of December 30, 1999 for the filing of claims against the debtors. The debtors, however, have not yet prepared a plan of reorganization. The debtors request that the court further extend the time within which the debtors maintain the exclusive right to file a plan of reorganization for a period of approximately 45 days, through and including May 30, 2000. Additionally, the debtors request that the court extend the time within which the debtors maintain the exclusive right to solicit acceptances on any such plan filed on or prior to such date, for a period of approximately 45 days through and including July 31, 2000. BOND PRICING FOR WEEK OF April 10, 2000 --------------------------------------- DLS Capital Partners, Inc., bond pricing for week of April 10, 2000 Following are indicated prices for selected issues: Acme Metal 10 7/8 '07 13 - 15 (f) Ameriserve 8 7/8 '06 8 - 10 (f) Asia Pulp & Paper 11 3/4 '05 82 - 84 E & S Holdings 10 3/8 '06 38 - 42 Fruit of the Loom 6 1/2 '03 38 - 40 (f) Genesis Health 9 3/4 '05 12 - 14 (f) Geneva Steel 11 1/8 '01 20 - 21 (f) Globalstar 11 1/4 '04 35 - 37 Hechinger 9.45 '12 3 - 5 (f) Iridium 14 '05 3 - 4 (f) Loewen 7.20 '03 36 - 40 (f) Paging Network 10 1/8 '07 60 - 62 (f) Pathmark 11 5/8 '02 28 - 32 Pillowtex 10 '06 38 - 42 Revlon 8 5/8 '08 49 - 51 Rite Aid 6.70 '01 78 - 80 Service Merchandise 9 '04 10 - 11 Trump Atlantic 11 1/2 '06 67 - 69 TWA 11 3/8 '06 32 - 33 Vencor 9 7/8 '08 19 - 21 (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. 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 * * *