TCR_Public/000421.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, April 21, 2000, Vol. 4, No. 79


AIR CANADA: Extended Protection From Creditors
AMERICAN PAD & PAPER: Agrees to Sell Its Creative Card Division
BOSTON CHICKEN: Seventh Motion For Amendment to DIP Facility
COLORADO GREENHOUSE: Seeks To Terminate Exclusivity
COMMERCIAL FINANCIAL: Attorneys Appointed For Committee

COSTILLA ENERGY: Seeks To Extend Exclusivity
DEVLIEG BULLARD: Order Grants Extension of Exclusive Periods
DIAGNOSTIC HEALTH: Emergency Motion For Time To File Schedules
EAGLE FOOD: Order Authorizes Employ of Retail Consulting Services
EAGLE FOOD: Order Grants Time to File Schedules and Statements

FAMILY SNACKS INC: Guy's Purchaser To Close Fort Wayne Factory
GENCOR: Involuntary Petition a Possibility
JUMBOSPORTS: Orders Grant Motions To Sell Real Property
KNOLL LUMBER: Files for Chapter 11 Protection
LAMONTS APPAREL: Hearing on Motion Extending Exclusivity

LOTTOWORLD INC: Motion For Final Decree Closing Case
MANHATTAN INVESTMENT: Receiver Files Bankruptcy Petition
MATTHEWS STUDIO: Withdraws Nasdaq De-Listing Appeal
MEDPARTNERS PROVIDER: Court Extends Date To Assume, Reject Leases

PENNCORP FINANCIAL: Hearing To Approve Disclosure Statement
PRIMARY HEALTH SYSTEMS: Order Schedules Sale of Assets
STYLESITE MARKETING: Order Authorizes Sale of Ecology Kids
SYSTEMSOFT: Plan Distribution Status
TEU HOLDINGS: Meeting of Creditors

WHITE'S FINE FURNITURE: Files For Bankruptcy Protection
BOND PRICING For Week of April 17, 2000


AIR CANADA: Extended Protection From Creditors
The Calgary Herald reports on April 20, 2000, that a court
extended protection from creditors to Air Canada's newly acquired
Canadian Airlines Corp. unit so it can keep working to
restructure its heavy debt load.

Calgary- based Canadian, purchased by rival Air Canada early this
year, said it now has until June 5 to come up with a plan to
restructure $3.5 billion of aircraft leases and debt.

The company, assets are reportedly valued at just $3 billion,
meaning creditors will be forced to take cuts in the value of
their leases and rates of interest they are paid.

"Canadian Airlines continues to make progress in its discussions
with creditors concerning the restructuring of its debt and other
obligations," the company said in a brief statement issued late

Its executives said last month creditors, representing 80 per
cent of the debt, had agreed to a deal.  But a group of U.S.
bondholders subsequently tried to have the court secure the
assets backing the securities.  The application was denied, in
favour of granting Canadian the stay of proceedings under
Canada's Companies Creditors Arrangement Act, which is similar to
Chapter 11 in the United States.

AMERICAN PAD & PAPER: Agrees to Sell Its Creative Card Division
American Pad & Paper Company (OTCBB:AMPP) (AP&P) announced today
that it has signed a definitive agreement with Taylor Corporation
for the purchase of AP&P's Creative Card Division located in

The sale is subject to final court approval and a motion has been
filed with the Delaware Bankruptcy Court to review the proposed
sale. The sale approval hearing is scheduled for April 28, 2000,
with closing anticipated to occur within 10 days following court
approval. Terms of the pending transaction were not disclosed.

"The sale of Creative Card would be our first significant asset
sale this year and the proceeds will be used to reduce our debt,"
said James W. Swent III, Chief Executive Officer. "The previously
announced sale process for the Williamhouse division continues to
move forward, and is anticipated to be completed around mid-year
2000. AP&P is actively marketing its other major business units
including AMPAD and Forms to maximize the value of the Company
for all stakeholders."

"Creative Card and its Century Greetings brand are well-known in
their respective distribution channels and their products are
highly regarded by consumers," said John Schmitt, President of
the Taylor Corporation Imprinting Group. "We look forward to
adding Creative Card as a Taylor Corporation Company and believe
this acquisition will provide opportunities for additional growth
both for Creative Card and our related companies."

"Creative Card will continue to be based in Chicago and will
continue to service its existing customer base," added Schmitt.
"Customers can be confident that their needs will be met for the
2000 season and in the future."

Creative Card is a nationally recognized market leader in
providing premium quality holiday greeting cards, all-occasion
cards, social and business announcements, and pre-printed papers
for desktop publishing.

Taylor Corporation is a privately held company based in Mankato,
Minn., and, together with its affiliated companies, facilitates
the operation of autonomous marketing and printing companies
throughout North America, Europe and Australia.

American Pad & Paper Co., which invented the legal pad in 1888,
is a leading manufacturer and marketer of paper-based office
products in North America. Product offerings include envelopes,
writing pads, file folders, machine papers, greeting cards and
other office products. The key operating divisions of the Company
are Williamhouse, AMPAD, and Creative Card. Company revenues in
1999 were $573 million.

BOSTON CHICKEN: Seventh Motion For Amendment to DIP Facility
According to its original terms, the DIP Credit Facility expires
on April 4, 2000, when the entire amount then drawn would be due
and owing in full, and would constitute a secured expense of
administration of the Chapter 11 estates of Boston Chicken. In
the event this happens, the Debtors will not have funds available
on April 4 to pay the DIP loan.

To allow continuation of the DIP Credit Facility, which is
essential to the continued operation of the Debtors' business,
and to the confirmation of the Debtors' plan of reorganization,
the Debtors have obtained preliminary agreement from respective
agents for their secured lenders, subject to appropriate
approvals, to the extension of the term of the DIP
Creidt Facility to June 30, 2000.

Other amendments include:

(1) Ratification and Incorporation of Existing DIP Credit
Agreement and Other Loan;
(2) Waiver by Agents and Lenders of any Default caused by
Borrower's failure to comply with any of the Minimum System
EBITDAL Covenants under the Existing DIP Credit Agreement;
(3) Provision under Section 1.3(b)(Mandatory Prepayments: ENBC
Stock Proceeds) for principal prepayments by or for the benefit
of Boston West or Platinum Rotisserie to Borrowers;
(4) Specification in Section 1.3(c)(Application of Mandatory
Prepayments: Reduction of Commitments) of no reduction of the
Revolving Loan Commitment upon the payment of the Escrowed
Platinum Proceeds;
(5) The Availability Reserve to be as follows:

                Period                             Reserve Amount
               ------                             --------------
         Week ending 3/26/00                       $ 8,000,000
         Week ending 4/2/00                        $ 8,500,000

         Week ending 4/9/00                        $10,500,000
         Week ending 4/16/00                       $ 9,500,000
         Week ending 4/23/00                       $ 5,000,000
         Week ending 4/30/00                       $ 5,000,000
         Week ending 5/7/00                        $ 5,000,000
         Week ending 5/14/00                       $ 5,000,000
         Week ending 5/21/00                       $ 5,000,000
         Week ending 5/28/00                       $ 5,000,000
         Week ending 6/4/00                        $ 5,000,000

         Week ending 6/11/00                       $ 5,000,000

         Week ending 6/18/00                       $ 7,000,000

         Week ending 6/25/00                       $ 5,000,000

         Week ending 7/2/00                        $ 6,500,000

(6) Minimum Company Operated Store EBITDA to be as follows:

                                     Mimimum Company
Rolling Period Ending With           Operated Store
Retail Period                        EBITDA (in millions)
----------------------------         --------------------
1 ending on January 16, 2000                       NA
2 ending on February 13, 2000                      NA
3 ending on March 12, 2000                       $26.0
4 ending on April 9, 2000                        $28.0
5 ending on May 7, 2000                          $29.1
6 ending on June 4, 2000                         $31.4
7 ending on July 2, 2000                         $31.9

If, as of June 15, 2000, Borrowers' plan of reorganization has
not become effective and is not reasonably likely to become
effective by June 30, 2000, Lenders and Borrowers agree that they
will confer in good faith regarding a possible further extension
of the Commitment Termination Date for such period of time as is
acceptable to Lenders and Borrowers.

General Electric Capital Corporation continues to serve as the
Administrative Agent; Bank Of America, N.A. continues to serve as
the Collateral Agent.  

The Debtors believe that the amendments are in the best interests
of the estates and their creditors, and accordingly asked the
court to approve Amendment No. 7 to Debtor in Possession Credit

The court ordered that in the event no written objection were
received by 4:00 p.m., March 31, 2000, the amendments would take
effect after that date. As of April 3, 2000 there were no such
objections. (Boston Chicken Bankruptcy News Issue 22; Bankruptcy
Creditors' Services Inc.)

COLORADO GREENHOUSE: Seeks To Terminate Exclusivity
The exclusive period for the filing of a plan provided by 11 USC
section 1121 for Colorado Greenhouse Holdings, Inc., and
affiliated debtors is terminated by order entered on April 3,
2000 by the Honorable Marcia S. Krieger, US Bankruptcy Judge,
District of Colorado.

COMMERCIAL FINANCIAL: Attorneys Appointed For Committee
By order of the Honorable Dana L. Rasure, US Bankruptcy Court,
Northern District of Oklahoma, entered on April 4, 2000, the  
Creditors Committee of Commercial Financial Services Inc. is
authorized to employ and retain the Glass Law Firm PC as its
Tulsa legal counsel in the case, effective April 1, 2000.

COSTILLA ENERGY: Seeks To Extend Exclusivity
The debtor, Costilla Energy, Inc. seeks to extend its period of
exclusivity to solicit acceptances of its Chapter 11 plan or
reorganization through July 31, 2000.

On March 31, 2000, the debtor received a favorable bid for the
purchase of the debtor's gas and oil assets.  If the negotiations
are productive and result in an asset purchase agreement, the
debtor will amend its disclosure statement and plan.

DEVLIEG BULLARD: Order Grants Extension of Exclusive Periods
The third motion of Devlieg-Bullard, Inc. to extend exclusive
periods to file a plan of reorganization and obtain acceptance
thereof was granted by order entered on April 4. 2000 by Judge
Marilyn Shea-Stonum.  The debtor shall have the exclusive right
to file a plan of reorganization up to and including June 30,
2000.  The debtor shall have the exclusive right to solicit
acceptances of its plan up to and including August 31, 2000.

DIAGNOSTIC HEALTH: Emergency Motion For Time To File Schedules
The debtors, Diagnostic Health Services, Inc., et al. seek a
court order granting an extension of time to file schedules of
assets and liabilities, statement of financial affairs, schedule
of executory contracts and unexpired leases.  The debtors are
seeking an additional 21 days beyond the 15-day deadline, to    
and including April 25, 2000.

The debtors state that their cases are large and complex, and
that their employees must gather documents relating to hundreds
of service contracts, leases, and independent contractor
agreements, while they are also busy attempting to stabilize
business operations during the initial postpetition period.

EAGLE FOOD: Order Authorizes Employ of Retail Consulting Services
By court order entered on April 5, 2000, the US district Court
for the District of Delaware entered an order authorizing the
debtor, Eagle Food Centers, Inc. to employ and retain the firm of
Retail Consulting Services, Inc. as their real estate

EAGLE FOOD: Order Grants Time to File Schedules and Statements
The debtor, Eagle Food Centers, Inc., was granted an additional
twenty-day extension of time period for filing a schedule of
assets and liabilities, a statement of financial affairs, a
schedule of current income and expenditures, a statement of
executory contracts and unexpired leases, and a list of equity
security holders.  The deadline is extended through and including
May 4, 2000.

FAMILY SNACKS INC: Guy's Purchaser To Close Fort Wayne Factory
THE KANSAS CITY STAR reports on April 19, 2000, that General
Products and Services, which acquired Guy's Foods last month,
announced that it would close its Fort Wayne, Ind.,
snack food factory and consolidate the operation with the Guy's
plant in Liberty.
Family Snacks Inc., which operates Guy's, filed for Chapter 11
bankruptcy protection Feb. 14 after losing $5.75 million over the
previous 16 months.

General Products received bankruptcy court approval last month to
acquire the assets of Guy's Foods after outbidding several other
businesses. The purchaser agreed to assume $14 million in Guy's

Guy's Acquisition Co. LLC, which was set up by General Products
to buy the assets, will be merged with General Products at the
end of the month. The merged company will be known as General
Products & Services LLC.

GENCOR: Involuntary Petition a Possibility
In a report in THE ORLANDO SENTINEL on April 20, 2000, it was
reported that if six of its lenders are successful, Gencor will
be forced into involuntary bankruptcy.

The creditors filed a petition two weeks ago, claiming they were
owed $53 million.

Gencor officials have said they will fight the move, insisting
that the Orlando company is profitable. Gencor makes highway-
construction equipment and other types of heavy machinery.

Gencor has until the end of April to respond to the involuntary
bankruptcy petition.

Gencor chief executive E.J. Elliott said last week that the
audits will be completed by the end of May. Soon after that time,
he said, financial information will be released. He confirmed
that Gencor has not paid its lenders for about a year. He
said the company was trying to negotiate new terms.

JUMBOSPORTS: Orders Grant Motions To Sell Real Property
The US Bankruptcy Court, Middle District of Florida, Tampa
Division entered orders on April 4, 2000, approving the  
following sales of real property:

Memphis Tennessee to Ashkenazy Acquisition Corp.
3650 Boston Road, Lexington, Kentucky to Royce G. Pulliam M&A,
LLC for a total purchase price of $2 million
Dallas, Texas (Central) To Trammell Crow-BTS, Inc.
Clearwater, Florida to Pinellas County,
Lafayette, Louisisana to Michael G. Hamner

KNOLL LUMBER: Files For Chapter 11 Protection
According to an article in Puget Sound Business Journal
On March 17, 2000, hardware retailer Knoll Lumber & hardware Co.
Inc. of Monroe filed for Chapter 11 protection.

The 55-year-old Knoll fisted assets of between $500,000 and $1
million and liabilities of between $1 million and $10 million.

From peak sales of $36 million at four stores in 1997, the
company shrank rapidly to a single location and $9 million in
sales last year.

Knoll's main supplier, Builder Marts of America in Greenville,
S.C., is suing Knoll for an amount variously listed in the court
documents as $687,000 and $1 million. Knoll attorney James Day
said the exact amount is still being determined. The dispute
involves product purchased from Builder Marts by Knoll in recent
months, Day said.

The state Department of Revenue is suing Knoll for $247,000 in
uncollected taxes.

LAMONTS APPAREL: Hearing on Motion Extending Exclusivity
Lamonts Apparel, Inc., the debtor, will be filing a motion for an
order extending plan exclusivity.  A hearing on the motion is
scheduled for April 21, 2000 at 9:30 AM.  The motion seeks to
extend the time periods within which only the debtor may file a
plan of reorganization under 11 USC Section 1121(b) and
1121(c)(2) through August 3, 2000 and within which the debtor may
secure acceptances of such plan under 11 USC section 1121(c)(3)
through October 2, 2000.  The Official Committee of Unsecured
Creditors supports the motion.

LOTTOWORLD INC: Motion For Final Decree Closing Case
Lottoworld Inc's second amended plan of reorganization, as
modified was confirmed pursuant to order of the US Bankruptcy
Court Middle District of Florida, on September 7, 1999.  All
distributions under the plan have been made  and the debtor asks
that the court enter a final decree clsing the case.

MANHATTAN INVESTMENT: Receiver Files Chapter 11 Petition
The Derivatives Litigation Reporter states in an article
published on April 3, 2000 that the court-appointed receiver for
a British Virgin Islands-based hedge fund, Manhattan Investment
Fund Ltd., filed a petition for Chapter 11 bankruptcy.

According to the report, the SEC filed a civil fraud action in
January against the fund and its president, Michael W. Berger, in
U.S. District Court for the Southern District of New York.  The
suit alleges the fund had undisclosed trading losses of $300
million, and now has assets of only $50 million.

The Manhattan fund was designed to permit foreign investors or
tax exempt U.S. investors (such as pension funds and trusts) to
participate in the fund's capital appreciation strategy by short-
selling Internet company securities.

MATTHEWS STUDIO: Withdraws Nasdaq De-Listing Appeal
Matthews Studio Equipment Group (Nasdaq:MATTQ), an international
single-source provider of professional equipment to the
entertainment industry and currently involved in a voluntary
Chapter 11 case announced that it had informed the Nasdaq Listing
Qualifications Panel of its decision to withdraw its appeal of
Nasdaq's proposed delisting of the Company's common stock from
the Nasdaq SmallCap market.

The Company expects that it's stock, which has been suspended
from trading since March 29, 2000 will be promptly delisted from
the Nasdaq SmallCap market.

Matthews is currently working with market makers in its stock to
secure Nasdaq permission to have its stock trade publicly in the
over-the-counter market on the Nasdaq Bulletin Board and/or in
the pink sheets published by the National Quotations Bureau.

Matthews Studio Group supplies traditional lighting, grip,
transportation, generators, camera equipment, professional video
and audio equipment, automated lighting and complete theatrical
equipment and supplies to entertainment producers through its
worldwide distribution network.

MEDPARTNERS PROVIDER: Court Extends Date To Assume, Reject Leases
The Honorable Barry Russell, US Bankruptcy Judge, Central
District of California, Los Angeles Division, entered an order on
April 3, 2000, granting the motion of the debtor extending the
the date by which the debtor must assume or reject any and all
unexpired leases of non-residential real property through and
including June 6, 2000.   

According to a report in The Daily Bankruptcy Review, April 19,
2000, (ABI 19-Apr-00) Michael Petroleum Corp. and its creditors
committee agreed to accept a $104 million stalking horse bid for
substantially all of the company's assets from prospective
purchasers, El Paso Energy Corp. and EnCap Energy Advisors LLC.

PENNCORP FINANCIAL: Hearing To Approve Disclosure Statement
On April 5, 2000, the debtor, PennCorp Financial Group, Inc.
filed a proposed plan of reorganization and a proposed disclosure

A hearing to consider approval of the Disclosure Statement will
be held before the Honorable Peter J. Walsh, US Bankrupt Court,
District of Delaware, 824 Market Street, Sixth Floor, Wilmington,
Delaware on April 25, 2000 at 11:30 AM.  

PRIMARY HEALTH SYSTEMS: Order Schedules Sale of Assets
The court has directed Primary Health Systems, Inc. and its
affiliated debtors to conduct a public sale of assets and has
established certain bidding procedures to be utilized.

By order entered on March 31, 2000, the US Bankruptcy Court for
the District of Delaware denied the motion of the debtors,
Primary Health Systems, Inc. seeking approval of the sale of The
Integrated Medical Campus, St. Michael Hospital and Mt. Sinai-
East Hospital to The Cleveland Clinic Foundation, as buyer, for
the aggregate cash price of $62,650,000.

The assets shall be offered for sale in whole or in lots at a
public sale to be held at 10:00 AM, May 12, 2000, at the office
of Young, Conaway, Stargatt & Taylor LLP, Wilmington Trust
Center, Eleventh Floor, Rodney Square North, Wilmington,
Delaware.  A hearing shall be held by the court on 4:00 PM on May
4, 2000 to consider possible approval of the sale. Competing
Bids must be equal to at least $65,150,000.  Each successive
competing bid for all of the assets shall be in increments of net
consideration to the sellers of not less than $1 million in each
successive round of bidding and each successive competing bid for
anything less than all the assets shall be in increments of

STYLESITE MARKETING: Order Authorizes Sale of Ecology Kids
By order entered on March 29, 2000, the Honorable Stuart M.
Bernstein, US Bankruptcy Court, Southern District of New York,
entered an order approving the sale of Ecology Kids, Inc. to the
highest bidder, First Source Financial LLP, for a purchase price
of $1.5 million.

SYSTEMSOFT: Plan Distribution Status
The Turstee of the Crediotr Trust, Donald F. Farrell, Jr. reports
that a Second Amended Plan of Reorganization filed by SystemSoft
Corporation was approved by the US Bankruptcy Court on February
22, 2000.  The court order approving the plan became final as of
March 6, 2000 and a closing of the transfer of ownership of the
corporation Rocket Software occurred shortly thereafter.  

A creditor's trust has been established to accomplish the
resolution of pre-petition claims against SystemSoft, to
liquidate remaining assets transferred to the Trust pursuant to
the plan, and to accomplish a distribution to unsecured pre-
petition creditors.  The assets transferred to the trust include
the initial cash payment from Rocket Software in the amount of
$1.6 million, rights to any and all so-called "avoidance
actions": which include preference recoveries and fraudulent
conveyance recoveries, the right to receive 40% of any net
recovery of the SystemSoft claim against Microsoft Corporation
and the right to purse potential claims against
PriceWaterhouseCoopers, SystemSoft's former accounting firm.

The claims filed by former directors and officers aggregate
approximately $800 million. A revised settlement of $250,000 was
approved by the court.

TEU HOLDINGS: Meeting of Creditors
A chapter 11 bankruptcy case concerning TEU Holdings, Inc. was
filed on February 23, 2000.  The attorney for the debtor is David
W. Carickhoff, Jr., Cozen and O'Connor, Chase Manhattan Centre,
1201 N. Market Street, Suite 1400, Wilmington, DE 19801 - tel.
(302)295-2077.  A meeting of creditors is set for April 14, 200,
1:00 PM, 844 King Street, Room 2313, Wilmington, DE.

WHITE'S FINE FURNITURE: Files For Bankruptcy Protection
The Columbus Dispatch reports on April 19, 2000, that White's
Fine Furniture, the oldest locally owned furniture retailer in
central Ohio, filed for Chapter 11 bankruptcy-court protection

The 55-year-old business has full-service stores at Easton Town
Center and Tuttle Crossing Shopping Center. White's also operates
a clearance store at its warehouse in Reynoldsburg.

A formal reorganization plan is expected to be filed in
bankruptcy court within two months.  Court documents show White's
with assets of $ 2.8 million and liabilities of more than $ 4

BOND PRICING For Week of April 17, 2000
DLS Capital Partners, Inc., bond pricing for week of April 17,

Following are indicated prices for selected issues:

Acme Metal 10 7/8 '07                11 - 14 (f)
Ameriserve 8 7/8 '06                  8 - 10 (f)
Asia Pulp & Paper 11 3/4 '05         82 - 83
Conseco 9 '06                        70 - 71
E & S Holdings 10 3/8 '06            35 - 37
Fruit of the Loom 6 1/2 '03          37 - 39 (f)
Genesis Health 9 3/4 '05             12 - 14 (f)
Geneva Steel 11 1/8 '01              20 - 21 (f)
Globalstar 11 1/4 '04                34 - 36
Iridium 14 '05                        3 - 4 (f)
Loewen 7.20 '03                      36 - 40 (f)
Paging Network 10 1/8 '07            52 - 54 (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                    72 - 74
Service Merchandise 9 '04            10 - 11 (f)
Trump Atlantic 11 1/2 '06            67 - 69
TWA 11 3/8 '06                       28 - 30
Vencor 9 7/8 '08                     18 - 20 (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.

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