TCR_Public/000503.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R

     Wednesday, May 3, 2000, Vol. 4, No. 86


ARM FINANCIAL: ND Holdings, Inc. to Purchase ARM Securities
BMJ MEDICAL: Court Enters Extension Orders
CARLETON WOOLEN: Employees Seek Other Jobs
CHESAPEAKE ENERGY: Moody's Upgrades Senior Unsecured Notes
CONXUS COMMUNICATIONS: Arch Agrees to Purchase Infrastructure

DELTA AMERICA: Liquidation Case Be Wrapped Up Within A Year
DIAMOND COMPANY: Court Approves Withdrawal From Chapter 11
DICKSON GMP: Files Chapter 11 as a Result of Chevron Claims
DRKOOP.COM: Less Than 5 Months of Cash Left
FORE RIVER SHIPYARD: 2-Month Reprieve; Developer Seeks Financing

FRUIT OF THE LOOM: Court Approves Abbeville, La Sale For $2.5MM
FRUIT OF THE LOOM: Hopes To Milk Famous Campaign
GEORGIA INTERNATIONAL: Fitch Lowers Rating on South Fulton
GOLDEN BOOKS: Reports First Quarter Results
GRAHAM FIELD: New Sr VP of Operations

IMPERIAL HOME DECOR: Seeks Extension of Exclusivity
IMPERIAL SUGAR: Reports Fiscal 2000 Second Quarter Results
KITTY HAWK: Announces Voluntary Chapter 11 Filing
KITTY HAWK: Fires Chief Executive
LOEWEN GROUP: Reports First Quarter 2000 Results

LONDON FOG: Seeks To Extend Exclusive Periods
MATTHEWS STUDIO: Drops Appeal Of Stock Delisting Plan
P-SUB: Files Chapter 11 To Protect Equity
PATHMARK: Elects Not to Make Bond Interest Payments
PRIMARY HEALTH: Order Grants Co-Exclusivity

ROBERDS: Postpones Shareholders Meeting
SAFETY-KLEEN: Shareholders Have 10 Days To Act on Lawsuit
SMITH CORONA: Nasdaq Drops Company From Market
TOWER AIR: Shuts Down Passenger Service
TRANSTEXAS GAS: Reports Fiscal 2000 Results

TV FILME: Taps Ernst & Young as Accounting and Auditing Advisors
WILLCOX & GIBBS: Plan of Reorganization Becomes Effective
WSR CORP: Order Extends Time to Assume/Reject Leases
ZETA CONSUMER: Announces Bankruptcy Filing


ARM FINANCIAL: ND Holdings, Inc. to Purchase ARM Securities
ND Holdings, Inc. (OTC Bulletin Board: NDHI) announced that it
has entered into a stock purchase agreement whereby ND Holdings,
Inc. (NDHI) will acquire ARM Securities Corporation (ARM) of
Louisville, Kentucky for an undisclosed amount of cash.  The
seller, ARM Financial Group, Inc. (ARM Group) is a debtor in
possession under the provisions of Chapter 11 of the U.S.
Bankruptcy Code. The sale is part of ARM Financial Group's plan
to wind down its business, pursuant to which ARM Group intends to
sell or otherwise dispose of its remaining assets.

ARM Securities Corporation is a broker dealer with approximately
60 registered representatives located in several midwestern
states and California. ARM markets mainly mutual funds and
annuities, and at year-end 1999 handled client assets in excess
of $1 billion.

NDHI plans to operate ARM as-is and to retain all personnel and
processing locations.  ARM will become a wholly owned subsidiary
of NDHI.  Dale Bauman of Ames, Iowa will remain as officer in
charge of marketing operations.  An accounting and operations
office in New Ulm, Minnesota will remain, while headquarters
operations will move from Louisville, KY to Minot, ND.  A branch
office in Fresno, California will remain under the direction of
manager Robert Bryant.  The U.S. Court in Delaware has approved
the sale of ARM to NDHI and the transfer of ownership is subject
to certain regulatory approvals, including NASD.  A closing date
in May is anticipated.

"This acquisition represents our latest success in expanding the
scope of NDHI's capabilities in the financial marketplace," said
Robert Walstad, president of ND Holdings, Inc.  "Furthermore the
ARM sales force will provide us with an additional channel for
the distribution of mutual funds."   With assets under management
of $350 million, ND Holdings, Inc. is publicly traded over the
OTC Bulletin Board under the symbol NDHI.  The company has
completed a series of mergers/acquisitions in the past few years,
the latest being the purchase of controlling interest in Magic
Internet Services, Inc. a North Dakota internet service provider.

With its subsidiaries, ND Capital, ND Management, ND Resources
and Ranson Capital Corporation, the firm sponsors, manages, and
advises eight mutual funds.   These include state-specific tax-
exempt municipal bond funds in Montana, North Dakota, South
Dakota, Nebraska, Kansas and Oklahoma.  The firm also sponsors an
equity fund for growth, the Integrity Fund of Funds, which
invests in numerous top-performing stock mutual funds and is in
the process of developing an additional stock fund.

In addition to providing shareholder services, fund accounting,
transfer services and distribution for the Integrity and Ranson
funds, ND Resources (one of its subsidiaries) also offers those
services to other mutual fund management companies.

BMJ MEDICAL: Court Enters Extension Orders
The US Bankruptcy Court for the District of Delaware entered
orders on April 7, 2000, extending the time within which the
debtors may assume or reject unexpired leases of non-residential
real property to and through May 31, 2000.

The Court also entered an order on April 7, 2000 extending the
debtors' exclusive period within which to file and solicit
acceptances of a plan(s) of reorganization.

The plan proposal period is extended for 60 days to and including
May 15, 2000.  The Solicitation Period is extended for 60 days to
and including July 17, 2000.

CARLETON WOOLEN: Employees Seek Other Jobs
April 25, 2000 -- Michael Reagan, staff writer for Kennebec
Journal reported that many Carleton Woolen Mills employees have
started to plan for new careers after 14 employees working at the
Main Street plant were laid off April 14, not to mention, the
loss of health care benefits this month.

Carleton has searched for a new owner or investors since late
December. Its owner, Allied Textile Companies, decided not to
help Carleton pay its bills, which caused the layoffs.

On February 18, Carleton announced it was filing for bankruptcy
under Chapter 11 of the Bankruptcy Code.  Chief Executive Officer
Larry Heller said Carleton had been in negotiations with its
principal lender, Fleet Capital Corp., the Finance Authority of
Maine, a potential investor and several others.

In one week in mid-March, Carleton closed down during the
bankruptcy negotiations, then partially reopened March 20. A
total of 116 employees, out of a company labor force of more than
300, came back to their jobs in the dyeing and finishing plant on
Main Street in Winthrop.

According to Gary Jackson, a Carleton employee and president of
the local union, the employees returned because they were
finishing one large job for the company.  As the work progressed,
employees were laid off, until the Main Street Plant had about 20
employees on April 14.  Then they were laid off.

Because of the layoffs, Carleton employees are eligible for up to
a maximum of 26 weeks of unemployment compensation if they have
filled out the proper claims, according to George Thomas,
regional manager for the Bureau of Unemployment Compensation in

CHESAPEAKE ENERGY: Moody's Upgrades Senior Unsecured Notes
Approximately $920.0 Million of Debt Securities Affected
New York, May 01, 2000 -- Moody's Investors Service upgraded to
B2, from B3, Chesapeake Energy Corporation's ("Chesapeake")
senior unsecured guaranteed note ratings on four issues totaling
$920 million: $500 million of 9.625% notes due 2005, $150 million
of 8.5% notes due 2012, $150 million of 7.875% notes due 2004,
and $120 million of 9.125% notes due 2006. At the same time,
Moody's confirmed the company's B2 senior implied rating and the
"ca" rating on the company's $188 million of 7% cumulative
convertible preferred stock. A $50 million secured bank revolver
that matures in January 2001, is unrated. The senior unsecured
issuer rating is B3. The ratings outlook is stable.

Moody's had notched Chesapeake's senior unsecured notes down from
the company's senior implied rating on 12/31/98, at a time when
Chesapeake's evolving liquidity needs could have prompted
Chesapeake to use a $150 million carve-out under its indenture
for senior secured debt to support production and reserve
replacement funding needs. At the time, prices were very weak,
production trends were negative, and the company was unable to
generate sufficient cash flow to replace production. The upgrade
of the notes reflects Moody's expectation that with the
restoration of supportive commodity pricing, which has improved
financial flexibility, Chesapeake may not look to significantly
increase senior secured funding, and if it did, the impact on the
senior unsecured notes would not be as severe.

Chesapeake's base business currently appears to be self-
sustaining, with sufficient internal cash flow to fund reserve
replacement, as long as prices remain sound, production levels
sustained, and reserve replacement costs competitive.
Chesapeake's reported production rates, which bottomed in 3Q99,
appear to have stabilized (production increased in 4Q99 and
1Q00). The challenge of offsetting Gulf Coast/Austin Chalk steep
initial production declines remains, but has decreased as the
portion of Chesapeake's production from that area has declined.
The company also reported increased reserves in 1999, at much
lower reported replacement costs than historically achieved, and
avoided the incurrence of material additional debt. However,
given the large portion of properties that were acquiried
relatively recently (1998-99) from other independents, Moody's
will continue to observe Chesapeake's ability to sustain
favorable longer term production and reserve replacement trends.

Chesapeake Energy Corporation, is an independent exploration and
production company headquartered in Oklahoma City. It has
reserves in the Mid-Continent (63%), the Gulf Coast/Austin Chalk
(16%), Western Canada (15%) , and the Williston and Permian
Basins (7%).

CONXUS COMMUNICATIONS: Arch Agrees to Purchase Infrastructure
April 25, 2000 (PR Newswire)-- Arch Communications Group, Inc.
(Nasdaq: APGR), one of the leading wireless messaging providers
in the United States, today announced that it has agreed to
purchase approximately 860 linear transmitters and related
network infrastructure equipment from a group of creditors in a
transaction that will substantially increase Arch's capacity to
provide interactive messaging.

The creditors gained possession of the infrastructure equipment
last year in connection with the bankruptcy filing of Conxus
Communications, Inc. and have responsibility for liquidating
those assets.  They sold the equipment pursuant to a secured
creditors' sale under the Uniform Commercial Code. Under the
agreement, Arch will purchase the equipment for $ 12 million, a
fraction of the equipment's original cost.

Under terms of the transaction, expected to be completed by mid-
year, Arch will receive all infrastructure equipment used in the
Conxus network, including linear base stations, receivers, RF-
directors, and Internet gateways.  Arch plans to consolidate the
equipment with the network assets of Paging Network, Inc.
(PageNet) when Arch completes its pending merger with PageNet.

"The addition of this state-of-the-art infrastructure will both
expand our geographic coverage and enhance capacity on Arch's
wireless data network," said C. Edward Baker, Jr., chairman and
chief executive officer of Arch. "It will satisfy the anticipated
demand for interactive messaging services we plan to launch over
the next few months," he added, "as well as accommodate the
requirements of our recent agreement with America Online (AOL) to
provide interactive messaging to AOL's Mobile Messenger

Baker noted:  "Upon completion of our pending merger with
PageNet, we believe Arch will possess the most comprehensive
dedicated wireless data and interactive messaging network in the
country, with the capability to support significant long-term
On February 28, 2000, AOL announced it had selected Arch to
provide interactive wireless messaging capabilities for its new
AOL Mobile Messenger service -- including AOL's e-mail and
Instant Messenger(SM) services -- to consumers using devices
enabled with Arch's messaging capabilities, specifically Arch's
wireless gateway and interactive messaging network
infrastructure.  AOL's 21 million members and tens of millions of
users of its other Web brands will be able to extend their
interactive desktop experience to the wireless platform,
including the ability to check their e-mail, exchange instant
messages, and access AOL's other features and services.

DELTA AMERICA: Liquidation Case Be Wrapped Up Within A Year
Insurance Commissioner George Nichols says the affairs of Delta
America Re Insurance Co., which was declared insolvent 15 years
ago, should be wrapped up within a year.

One of the last impediments was removed last week, when former
managers of the defunct company agreed to pay $ 6.6 million to
its estate.  

DIAMOND COMPANY: Court Approves Withdrawal From Chapter 11
McKenzie Bay International Ltd ("MKBY" OTC-pinks) is pleased to
announce that U.S. Bankruptcy Court for the District of Colorado
has granted its petition to withdraw its newly acquired
subsidiary, Diamond Company NL, from Chapter 11 proceedings
effective April 26, 2000.

McKenzie Bay has renamed the subsidiary "Great Western Diamond
Company".  Great Western owns the fully permitted open-pit Kelsey
Lake Diamond Mine, Americas first and only commercial producing
diamond mine, located in the Colorado and Wyoming border region.
Great Western is making plans to resume the ramp-up to full
production later this year.

McKenzie Bay is also pleased to announce it has engaged the
services of YES INTERNATIONAL to provide and manage a dynamic and
flexible investor relations program throughout North America and
German speaking Europe. YES INTERNATIONAL
http://www.yesinternational.comis an experienced investor  
relations firm with offices in Virginia & Michigan

YES INTERNATIONAL is to establish a broad-based broker/dealer
network to garner long-term support to lessen price trends and
establish a support structure when financing is being raised. In
addition, YES INTERNATIONAL is to provide consultation, advice
and strategic direction for regulatory actions, listing and/or
requirements as related to future financing needs.

DICKSON GMP: Files Chapter 11 as a Result of Chevron Claims
TransCoastal Marine Services, Inc. (Nasdaq:TCMS) announced that
Dickson GMP International, Inc., a wholly-owned subsidiary of
TCMS, filed a voluntary petition for Chapter 11 Reorganization in
the U.S. Bankruptcy Court for the Southern District of Texas.
This action was triggered by claims made by Chevron Global
Technology Services Company in the amount of approximately $28
million against Dickson.  These claims relate to Dickson's
fabrication of platforms and wellheads totaling $86 million which
are installed and operating offshore Venezuela. The Bankruptcy
Court has entered a temporary restraining order prohibiting
Chevron Global Technology Services Company from drawing down on
certain letters of credit and has set the matter for further

Dickson believes that the Chevron claims are unfounded and
without merit. However, Chevron's pursuit of these claims has
made it impossible for TCMS to complete a recapitalization that
would have allowed an equity infusion into Dickson. TCMS and all
of its other operating subsidiaries, including the Pipeline and
Marine Group, will continue to conduct their operations as usual
and are not involved in the filing.

TransCoastal Marine Services, Inc., headquartered in Houston, is
a marine construction company. The Company's Pipeline & Marine
Group performs pipeline installations onshore and offshore
worldwide. The Pipeline & Marine Group also provides construction
support services, including hydrostatic testing of pipelines.
TransCoastal's Fabrication & Offshore Group fabricates,
refurbishes and commissions offshore drilling rigs, barge
drilling rigs, production platforms and performs related
fabrication services.

DRKOOP.COM: Less Than 5 Months of Cash Left
According to a report in the Washington Post on April 26, 2000,
the ailing medical Web site said last week that it has
less than five months of cash left.

The Austin-based company, one of the best-known Internet health
sites because of its association with former U.S. surgeon general
C. Everett Koop, said that it will report lower-than-expected
quarterly earnings next month.  The company said it had
negotiated with America Online Inc. and Walt Disney Co.'s Go
Network to eliminate nearly $ 100 million in commitments that had agreed to pay in return for prominent display on
the sites.  

"That allows us to seek strategic and capital market
opportunities," said Donald Hackett, the company's chief
executive.  Of the five-month figure, Hackett said, "It could go
longer, but we're just being very conservative in our statement."

As reported by John Schwartz of Washington Post, the new deal
with AOL will give the Virginia-based online giant 10 percent of  "We are converting the terms of the agreement into
an equity stake in the company," said AOL spokeswoman Wendy
Goldberg. will not be promoted as aggressively on AOL
under the new deal, Hackett and Goldberg said. Hackett said that
promotions on the Go network will be "phased out" in the third

Along with the lower-than-expected first-quarter earnings of $
4.5 million to $ 4.7 million, said expenses were also
higher than expected.

Last week's announcement comes as part of a long run of bad news
for  In filings with the Securities and Exchange
Commission last month, the company revealed that its auditor,
PricewaterhouseCoopers, had sent a letter stating that the
auditors had "substantial doubt about its ability to continue as
a going concern" because of the company's continuing losses and
poor prospects for profitable operation, relates Mr. Schwartz.

FORE RIVER SHIPYARD: 2-Month Reprieve; Developer Seeks Financing
April 25, 2000 -- The final showdown in the battle for control of
the Fore River Shipyard has been postponed until June 20, when a
U.S. Bankruptcy Court judge is expected to decide whether the
federal government can liquidate the yard's assets, reports
Elizabeth W. Crowley of The Patriot Ledger.

Judge William C. Hillman last week gave shipyard developer
Sotirios Emmanouil another two months to look for new financing
to finish the revival of the yard and pay off debt.  Attorneys
for Emmanouil and for the U.S. Maritime Administration agreed to
the postponement.  

"It gives both sides more time to prepare to fight the big
battle," said Daniel M. Glosband, one of the attorneys
representing Emmanouil's bankrupt companies.

Emmanouil's Massachusetts Heavy Industries and MHI Shipbuilding
owe about $ 80 million to creditors, including about $ 47 million
to the federal government and $ 9.2 million to Quincy.  The two
companies filed for Chapter 11 bankruptcy protection on March 13
after the Maritime Administration evicted them from the shipyard.

According to Ms. Crowley of The Patriot Ledger, the Maritime
Administration wants permission to sell off the yard's assets,
including the 138 acres of land, so that it can recoup its
losses. Attorneys for the city of Quincy have argued against
liquidation. If the property is foreclosed upon and sold at
auction, the federal government would be first to be paid among
the yard's creditors. The city and the Massachusetts Water
Resources Authority, to which MHI owes $ 8.2 million, would
receive no money.

"The best thing for the city would be for (Emmanouil) to secure
the financing, finish the yard and pay off the debts," said
Robert J. Kerwin, an attorney representing the city in the case.

Judge Hillman, last week allowed the two companies to incur $
300,000 more in debt.  Emmanouil will lend that money to his
companies so that they can pay their attorneys and keep the
lights on at the shipyard, relates Ms. Crowley of The Patriot

FRUIT OF THE LOOM: Court Approves Abbeville, La Sale For $2.5MM
Judge Walsh granted Martin Mills, a unit of Fruit of the Loom,
authority to sell its facility located in Abbeville, Louisiana.  
The sewing and distribution facility was built in 1992 and
originally contained 60,000 square feet.  It was expanded to
134,000 square feet in 1995.  In 1998, when Fruit of
the Loom relocated many of its labor-intensive operations
offshore, the Abbeville facility was closed and the employees
laid off.  This sparked a lawsuit from the city of Abbeville,
which had granted favorable tax treatment to Fruit under a
minimum employment agreement.  After the layoffs, Fruit failed to
meet the contractual employment levels.  Abbeville sued to
collect compensation for previous favorable tax treatment.

The facility will be sold to Rodi Power Co., which will use it to
construct diesel engines.  Under the terms of the sale, Rodi will
pay Fruit $2.5 million in cash and pay the city of Abbeville
$100,000 to settle the lawsuit against Martin Mills.  (Fruit of
the Loom Bankruptcy News Issue 5; Bankruptcy Creditors' Service

FRUIT OF THE LOOM: Hopes To Milk Famous Campaign
The Chicago Tribune reported on April 25, 2000 that the
spokesfruits are coming back for Fruit of the Loom Inc. Battling
to emerge from bankruptcy, this manufacturer of underwear and T-
shirts has an advertising campaign in the works that once again
will showcase the so-called Fruitmen, who were dressed as purple
and green grapes and red apples.

Presumably, the recycled Fruitmen will appear in advertising
breaking later this year, perhaps by late summer.

Fruit of the Loom hasn't run any advertising since the third
quarter of 1999.  That effort, under the umbrella of an
"Everybody Loves Fruit" theme, was created by Manhattan agency
Warwick Baker & O'Neill.

The level of Fruit of the Loom ad spending this year is to be
determined.  Last year, it was said to be in the $10 million to
$15 million range.  In the company's better days, the budget was
as high as $33 million in 1996, and $24 million in 1998,
according to Competitive Media Reporting, relates Mr. Lazarus of
Chicago Tribune.

GEORGIA INTERNATIONAL: Fitch Lowers Rating on South Fulton
Fitch IBCA has downgraded to 'C' from 'B' its rating on Tri-City
Hospital Authority's approximately $33.5 million outstanding
revenue anticipation certificates, (South Fulton Medical Center),
series 1993.

Bonds with a rating of 'C' signal imminent default.  Fitch IBCA
has learned that Georgia International Health Alliance (GIHA),
the parent company of South Fulton Medical Center, filed for
chapter 11 bankruptcy protection on April 26, 2000. Fitch IBCA
has contacted bond counsel, the auditors, and the trustee, with
regard to these issues. The trustee for the bonds, US Bank, has
confirmed that the debt service reserve fund, which currently
totals approximately $3.3 million (equal to maximum annual debt
service), remains intact at this time, and that all monthly
payments through April 2000 have been met.

Fitch IBCA has also learned that the hospital may secure a loan
to assist in reorganizing, and that the hospital may be sold to a
for profit company. Fitch IBCA has not been able to directly
confirm any of these issues with management.

Located in East Point, Georgia (a southern suburb of Atlanta),
GIHA is a health care provider with a 405-bed acute care hospital
and other related entities.

GOLDEN BOOKS: Reports First Quarter Results
Golden Books Family Entertainment, Inc. reported first quarter
earnings before interest, taxes, depreciation and amortization
(EBITDA) of $2.1 million, compared with an EBITDA loss of $2.7
million in the first quarter of 1999, an improvement of $4.8
million. Revenues of $36.3 million in the quarter increased by
$1.5 million compared with $34.8 million in first quarter 1999.

Total gross profit increased $5.9 million (57%) to $16.2 million
for the three months ended March 25, 2000, from $10.3 million for
the three months ended March 27, 1999. As a percentage of
revenues, total gross profit increased to 45% for the first
quarter, compared with 30% for the quarter in the prior year.

The Company's net loss for the first quarter of 2000 was $4.3
million, compared with a net loss of $11.3 million for the first
quarter of 1999. In connection with the Company's Plan of
Reorganization, the Company adopted "fresh start" accounting to
begin Fiscal 2000 and as a result, the net loss from period to
period is not directly comparable.

Golden Books Family Entertainment, Inc. is one of the most
recognized and trusted brands in children's publishing, and owns
one of the largest libraries of family entertainment copyrights
and exploits them through all media. The Company, through its
entertainment division, creates, produces and markets such
entertainment products as Lassie, Lone Ranger, Rudolph the Red
Nosed Reindeer, Frosty the Snowman, and Underdog.

GRAHAM FIELD: New Sr VP of Operations
Graham-Field Health Products, Inc. (OTC BB: GFIHQ) a manufacturer
and supplier of healthcare products, announces the hiring of a
new Senior Vice President of Operations, Mr. Jeffrey Smith, to
oversee all its manufacturing and distribution facilities in
Mexico, Canada, and the United States.

Mr. Smith comes from the Horizon Medical Products, a manufacturer
of Class III Medical devices. According to David Hilton, Chief
Executive Officer, "The hiring of Mr. Smith is a key element in a
restructuring of the Graham-Field management team."

Mr. Smith will join the new management team which includes, Mike
Joffred, Chief Financial Officer, (formerly of J.E. Morgan
Knitting Mills); Larry de la Haba, Senior Vice President of Sales
(formerly of LUMEX); Vicki Ray, Vice President, Corporate
Services (formerly of MEDEPEX); Diego Picchetti, Corporate
Vice President of Marketing (formerly of EVEREST & JENNINGS);
Cherie Antoniazzi, Corporate Vice President, Human Resources
(formerly of EVEREST & JENNINGS).

Graham-Field Health Products, Inc. is headquartered in Bay Shore,
New York and manufactures, markets, and distributes durable
medical equipment, medical/surgical supplies and furnishings from
operations situated in the United States, Canada, and Mexico.

IMPERIAL HOME DÉCOR: Seeks Extension of Exclusivity
The debtors, The Imperial Home Décor Group Inc., seeks an order
extending exclusive periods to file a plan or plans of
reorganization and solicit acceptances thereof.  A hearing on the
motion will be convened at the court on May 18, 2000 at 2:00 PM.

The debtors seek to extend the period during which the debtors
have the exclusive right to file a plan or plans of
reorganization by approximately four months, through and
including September 4, 2000 and extending the period during which
the debtors have the exclusive right to solicit acceptances
thereof through and including November 3, 2000, or approximately
60 days after the expiration of the Exclusive Filing Period, as

The debtor claims that its cases are large and complex, and that
the debtors have been successful in stabilizing their business
operations.  The debtors obtained final approval of their $75
million DIP Financing Facility.  The debtors intend to conduct a
comprehensive review of their businesses by the end of June 2000,
and develop a strategic business plan.  Once they have prepared
their business plan, they intend to prepare a preliminary outline
of a plan or plans of reorganization structured around the
business plan to present to the Lenders and the Creditors'
Committee for input and discussion.  

IMPERIAL SUGAR: Reports Fiscal 2000 Second Quarter Results
Imperial Sugar Company (AMEX:IHK) announced results for the
fiscal 2000 second quarter ended March 31, 2000.

Net sales for the second quarter were $429.2 million, compared
with net sales of $429.0 million for the year-ago period. The
Company reported a net loss of $ 5.0 million for the quarter, or
$(0.16) per diluted share, compared to a net loss of $18.6
million, or $(0.58) per diluted share, for the same period last
year. Excluding a gain of $4.4 million after tax, or $0.13 per
diluted share, related to the Company's continued selling of most
of its marketable securities portfolio, as previously announced,
the Company would have reported a net loss for the fiscal 2000
second quarter of $9.4 million, or$(0.29) per diluted share.
Excluding a non-recurring, non-cash charge of $10.9 million after
tax, or $ (0.34) per diluted share, to write off its investment
in a limited partnership, and a gain on sales of securities of
$1.5 million after tax, or $0.05 per diluted share, the Company
would have reported a net loss of $9.2 million, or $ (0.29) per
diluted share in the fiscal 1999 second quarter.

James C. Kempner, Chief Executive Officer, commented, "As
expected, the Company's results for the second quarter reflect
the difficult operating environment for the domestic sugar
industry, which has been characterized by a significant
oversupply of refined sugar, causing depressed prices, which in
turn has dramatically reduced profitability. While our customer
service levels have improved considerably at Diamond Crystal
Brands, Inc. ("Diamond Crystal") foodservice operations,
operating expense levels continue to run higher than expected,
primarily due to operating inefficiencies arising from the
consolidation of four facilities into two."

Mr. Kempner continued, "We are confident that our company- wide
program to reduce costs will achieve a $15.0 million annual run
rate beginning in July of this year. Roughly half of those
savings are expected to come from reducing operating costs in our
sugar refining operations, with the remainder split between
Diamond Crystal and SG&A."

Mr. Kempner added, "Normal reduction in seasonal liquidity needs
and the sale of our marketable securities portfolio has
contributed to an improved liquidity position and has enabled us
to pay down $36.6 million in senior term debt in the last two
quarters. The Company continues to be in full compliance with all
credit agreement covenants."

Mr. Kempner stated, "Consistent with our previously announced
objectives of optimizing our production, packaging and logistics
assets and reducing debt, we have had discussions with the
California sugarbeet growers about their acquiring our sugarbeet
processing operations in Tracy and Woodland, California; however,
the growers have not been able to enter into a transaction with
the Company. Therefore, the Company will cease processing
sugarbeets in those facilities at the end of calendar 2000
following the completion of the fall campaign. Those facilities
will continue to package and distribute refined sugar products
without interruption in service or supply to our customers with
sugar supplies sourced from our remaining two California beet
factories and other Company processing facilities. The real
estate surrounding the facilities will be sold and the proceeds
applied to the reduction of debt."

For the fiscal 2000 six-month period, the Company reported net
sales of $ 897.8 million compared to net sales of $900.8 million
in the first six months of fiscal 1999. Net income for the first
half of fiscal 2000 was $8.9 million, or $ 0.28 per diluted
share, versus a net loss of $16.2 million, or $(0.52) per
diluted share, in the year-ago period. Excluding a gain of $23.3
million after tax, or $0.72 per diluted share, related to the
previously mentioned sales of the Company's marketable securities
portfolio, the Company would have reported a net loss of $14.4
million, or $(0.44) per diluted share in the fiscal 2000 six-
month period. Excluding the previously mentioned non-recurring,
non-cash charge and securities gains in the six-month period of
fiscal 1999, the Company would have reported a net loss of $6.8
million, or $(0.22) per diluted share.

Mr. Kempner concluded, "In the near term, there's not much on the
horizon to indicate improvement in the fundamentals of the
domestic sugar industry. Should announced increases in acreage to
be planted in sugarbeets result in additional supplies of beet
sugar and significantly higher imports of Mexican sugar begin
as scheduled in fiscal 2001, an already over-supplied market will
be placed under further pressure."

Imperial Sugar Company is the largest processor and marketer of
refined sugar in the United States and a major distributor to the
foodservice market. The Company markets its products nationally
under the Imperial(TM), Dixie Crystals(TM), Spreckels(TM),
Pioneer(TM), Holly(TM), Diamond Crystal(TM) and Wholesome
Sweeteners(TM) brands. Additional information about Imperial
Sugar may be found on its web site at

KITTY HAWK: Announces Voluntary Chapter 11 Filing
Kitty Hawk, Inc. (Nasdaq: KTTYE) today announced that the company
has filed voluntary petitions for protection under the Chapter 11
Bankruptcy Code for the company and all of its subsidiaries. The
petitions were filed in U.S. Bankruptcy Court, Northern District
of Texas, Fort Worth Division, case number 400-42141-BJH.

The company filed for Chapter 11 protection to seek a financial
reorganization.  Under Chapter 11, the company and its
subsidiaries, will seek to continue to operate their businesses
in the ordinary course under the protection of the bankruptcy
court while seeking to finalize a plan of reorganization to
implement its anticipated restructuring.

The company also announced that Conrad Kalitta has resigned from
the Board of Directors, effective Saturday, April 29, 2000.

In addition, the company announced that, as part of the
previously announced suspension of service of its Kitty Hawk
International division, the company is no longer operating its
daily scheduled service between Los Angeles and Honolulu, Hawaii
inter-island service, and weekly service around the Pacific Rim.

Kitty Hawk, Inc. provides scheduled overnight air cargo service
through its hub in Fort Wayne, Indiana, and also provides ACMI
aircraft charter services and air charter logistics management
services.  The Company trades on the Nasdaq stock market under
the symbol KTTYE.  For more information on the Company, visit
Kitty Hawk's Web site at

KITTY HAWK: Fires Chief Executive
Cargo airline Kitty Hawk Inc. announced Monday it has filed for
Chapter 11 bankruptcy protection, less than three weeks after
disclosing that it was running out of cash.  Kitty Hawk also
closed its international service - as it had announced it would
Friday - while it tries to raise money to stay in business.

The international service, based in Ypsilanti, Mich., operated 19
airplanes that were older and required frequent maintenance, said
Heather Fedele, the company's director of investor relations.

"They were continuing to be a financial drain on the company from
a maintenance standpoint," Fedele said.

The company will continue three other divisions that lease
aircraft, provide overnight freight service from a hub in Fort
Wayne, Ind., and arrange air charters, Fedele said. The changes
will cut 600 jobs, leaving the company with 1,700 employees, she
said.  The cargo company, based at Dallas-Fort Worth
International Airport, also said that one of its directors,
Conrad Kalitta, has resigned from the board.

Kitty Hawk announced last month that it was running out of cash,
would miss a $17 million interest payment and restate its 1999
earnings. The company also signaled its first-quarter loss would
be greater than analysts had expected.  The moves prompted a
tailspin of the company's stock and the removal of the company's
chairman and chief executive, M. Tom Christopher.

Kitty Hawk blamed its problems on unexpected costs for aircraft
maintenance, high fuel costs and a weaker-than-expected demand
for air freight service. Investors have filed a class-action
lawsuit against Kitty Hawk in federal court in Dallas, charging
the company gave investors false and misleading information about
its financial results. The investors claimed some executives sold
shares for several million dollars just before the company's
financial condition was made public.

The company, which had operated in about 45 U.S. cities, South
America and the Pacific Rim, has struggled since it acquired a
money-losing airfreight carrier as part of a 1997 acquisition of
Kalitta Cos.

Trading of Kitty Hawk shares was halted Monday on the Nasdaq
Stock Market after they rose about 9 cents to 75 cents. The stock
hit a 52-week high of $ 14.12 1/2 on Sept. 14.

LOEWEN GROUP: Reports First Quarter 2000 Results
The Loewen Group Inc. (TSE: LWN), announced its unaudited results
for the quarter ended March 31, 2000 and commented on the
progress of its reorganization since the Company was granted
court protection from creditors on June 1, 1999. The Company
reported net earnings of $22.8 million on gross revenue of $256.9
million for the quarter ended March 31, 2000, compared with
net earnings of $6.9 million on gross revenue of $306.8 million
for the quarter ended March 31, 1999.

John S. Lacey, Chairman of the Board, said the quarter's results
demonstrate that the Company's initiatives to increase operating
efficiencies are beginning to have a positive impact on net
earnings and particularly cashflow. "Although our operating
performance, when compared to 1999, still reflects the effects of
the bankruptcy filing, we continue to initiate steps and
strategies to improve the long-term cashflow of our businesses
while improving our service to clients at competitive prices.''

Funeral home revenues for the first quarter were $161.1 million,
a decrease of 7.6 percent from $174.3 million in the first
quarter of 1999. On a same store basis, the number of funerals
performed was down 6.2 percent compared with the first quarter of
1999, which reflects to a large extent the effects of the
bankruptcy filing in June 1999. The Company also experienced a
lower average revenue per funeral service during the quarter as
more competitive pricing was implemented during 1999 to restore
market share and volumes over the long term. Overall funeral home
operating margins in Q1 2000 were 34.0 percent compared with 38.7
percent in Q1 1999. The Company performed approximately 43,400
funeral services during the first quarter of 2000 compared with
46,300 in the same period a year earlier.

First quarter cemetery revenues were down 34.5 percent to $71.2
million, compared with $108.8 million in the same quarter in
1999. This reflects the sale of 124 cemeteries on March 31, 1999
and the Company's previously announced changes to its commission
structure and pre-need sales program.

The Company incurred $6.9 million in reorganization costs during
the quarter arising from expenses related to the June 1, 1999
filings under Chapter 11 of the U.S. Bankruptcy Code and under
the Canadian Companies' Creditors Arrangement Act.

In response to the establishment of the December 15, 1999 bar
date, the deadline by which pre-petition claims had to be filed
to be included within the Company's reorganization plan, the
Company received approximately 9,000 claims, each of which has
now been evaluated and categorized. Progress toward development
of the reorganization plan continues.

The Company has continued to build its cash balances, to $89
million at March 31, 2000 from $55 million at December 31, 1999.
In July 1999, the Loewen Group obtained $200 million in debtor-
in-possession ("DIP'') financing to be used as working capital
during the reorganization process. The Company has not found it
necessary to borrow under the DIP facility during the first
quarter and is currently using it only for letters of credit
aggregating $20 million. Reflecting the improvements to its cash
position, the Company and its DIP lenders are currently
syndicating a reduced and amended facility with closing expected
during the second quarter.

The Company is currently divesting 371 non-core funeral and
cemetery operations through a process approved by the Bankruptcy
Court on January 21, 2000. Of the 250 letters of intent received
for various groups of properties, the Company now has formal bids
for the majority of the properties offered for sale. Potential
buyers have commenced due diligence and initial negotiations.
Based in Vancouver, The Loewen Group Inc. currently owns or
operates more than 1,100 funeral homes and more than 400
cemeteries across the United States, Canada, and the United
Kingdom. The Company employs approximately 13,000 people and
derives approximately 90 percent of its revenue from its U.S.

LONDON FOG: Seeks To Extend Exclusive Periods
London Fog Industries, Inc. seeks an extension of its exclusive
periods to propose a plan of reorganization and to solicit
acceptances thereof.  The debtors have already reduced their
retail operations and consolidated administrative functions.  
They have turned their Eldersburg Facility into expanded
warehouse capacity, and shut down the Martinsville Facility and
consolidated their distribution functions into the Eldersburg
Facility.  The debtors executed the CBA Amendment changing
contributions to the Amalgamated Insurance Fund, and began making
contributions to Cotton Headgear Pension Fund.  

The debtors currently are working to formulate a plan of
reorganization that will address the final component of their
business plan, the restructuring of their long term indebtedness.  
Especially in light of the significant strides the debtors have
made, they feel it is important to extend exclusivity.

MATTHEWS STUDIO: Drops Appeal Of Stock Delisting Plan
April 25, 2000 -- Matthews Studio Equipment Group, the company
which is doing business under voluntary Chapter 11 U.S.
Bankruptcy Code protection, has withdrawn its appeal of Nasdaq's
intended delisting of the company's stock from the SmallCap
Market.  Instead, the company is working to secure permission to
trade on Nasdaq's over-the-counter market, according to reports
circulated by the Los Angeles Times.

P-SUB: Files Chapter 11 To Protect Equity
TIS Mortgage Investment Company (Pacific Exchange: TIS) announced
that P-SUB I, Inc., an indirect wholly owned subsidiary which
owns and operates two shopping centers in San Francisco's North
Bay area, filed on Friday April 28, 2000, a voluntary petition
for relief under Chapter 11 of the United States Bankruptcy Code.
This action was taken by P-SUB I in order to protect the
shareholders equity pending a resolution of the Company's
differences with its major lender, Ocwen Federal Bank.

Ocwen Federal Bank purchased a secured financing by P-SUB I,
Inc., from a previous lender in January of this year. P-SUB I and
Ocwen disagree about the maturity of the loan. P-SUB I believes
that the maturity is June 1, 2000, and Ocwen asserts that the
loan matured in January and is now in default. The two parties
have been unable to reach agreement on this matter. P-SUB I is in
discussions with possible sources of replacement financing for
the loan and in order to protect its rights and interests it has
elected to seek Chapter 11 relief.
TIS Mortgage Investment Company is a San Francisco-based real
estate investment trust (REIT) that, through its subsidiary
companies, owns and operates apartment communities, located in
California's Central Valley, and shopping centers in San
Francisco's North Bay area.

PATHMARK: Elects Not to Make Bond Interest Payments
Pathmark Stores, Inc. announced that consistent with its
previously announced intention to restructure its outstanding
debt securities, the company has elected to take advantage of the
30-day grace period provided for in the Indentures for its $440
million of 9-5/8% Senior Subordinated Notes due 2003 ("Senior Sub
Notes") and for its $225 million of 10-3/4% Junior Subordinated
Deferred Coupon Notes due 2003 ("Deferred Coupon Notes"),
respectively, and not pay $21.2 million of interest on the Senior
Sub Notes and $12.1 million of interest on the Deferred Coupon
Notes otherwise payable on May 1, 2000.

Pathmark also announced that it has entered into a waiver
agreement with the lenders for the company's $500 million Credit
Agreement waiving through July 29, 2000 the compliance with
certain financial covenants and the effect of the decision not to
make the interest payments on the Senior Sub Notes and Deferred
Coupon Notes.

As previously announced, Pathmark has commenced discussions with
an ad hoc committee of its bondholders towards developing a
consensual restructuring plan that will pay its trade creditors
in full and on time and will not result in layoffs.

"We are encouraged by the progress and constructive nature of our
negotiations with the ad hoc bondholder group and its advisors,"
commented Jim Donald, Chairman and CEO of Pathmark. "Pathmark is
on track to emerge from the restructuring process later this year
as a financially healthy company, one which our associates and
management team can be proud of and build upon to meet the needs
of our customers."

Jeffrey Werbalowsky, Senior Managing Director of Houlihan Lokey
Howard & Zukin, financial advisor to the ad hoc committee of
bondholders, echoed Mr. Donald's comments. "Our examination of
Pathmark confirmed the view that this is a good company with an
over-leveraged balance sheet. We are working with Jim Donald and
his team to develop a recapitalization plan which will permit
Pathmark to compete effectively in its core markets and look
forward to concluding our negotiations in the near future."

Mr. Donald also commented, "We greatly appreciate the support of
our bank lenders and trade creditors during the restructuring
process. We continue to enjoy the financing and merchandise
necessary to operate our business during our bondholder
negotiations and, I am particularly pleased to say, our store
operations haven't missed a beat throughout this critical period.
I also want to express my gratitude to all the associates of
Pathmark, without whom Pathmark would just be another company
restructuring its debt, in contrast to the strong franchise and
competitor we know it to be."

Pathmark Stores, Inc. is a regional supermarket company currently
operating 135 supermarkets primarily in the New York - New Jersey
and Philadelphia metropolitan areas.

PRIMARY HEALTH: Order Grants Co-Exclusivity
By order of the court entered on April 5, 2000, the Creditors'
Committee and the debtors shall each have and are granted co-
exclusivity with respect to the Exclusive periods such that each
individually or jointly may file a plan of reorganization and
solicit acceptance thereof. The Exclusive Periods are extended
through and including May 15, 2000 with respect to the filing of
a proposed plan of reorganization, and July 15, 2000 with respect
to the solicitation of acceptances thereof.

ROBERDS: Postpones Shareholders Meeting
Home goods retailer Roberds Inc., which has been operating under
U.S. Bankruptcy Court protection since January, has postponed its
annual shareholders' meeting.

Roberds officials canceled the meeting hours before it was
scheduled to start Monday.  The meeting was rescheduled for May

The move came two weeks after a U.S. Bankruptcy Court trustee
moved to have Roberds face possible court-ordered liquidation. On
Friday, the company acknowledged it had serious cash-flow

The bankruptcy trustee's office has asked the court to convert
Roberds' Chapter 11 reorganization proceedings to a liquidation
case or dismiss it. Officials said Roberds hasn't filed monthly
financial reports since late January.

In a court filing objecting to the trustee's request, Roberds
said it hadn't filed its monthly reports because it had been
focused on closing its fiscal 1999 books.

Roberds reported a loss of $13.9 million, or $2.26 per share in
1999, compared with $16.1 million, or $2.66 per share for 1998.
Last year's sales fell 10 percent to $287 million from $318.7
million in 1998.

Roberds filed for reorganization in January, listing assets of
$142.5 million and debts of $117.8 million. Since then, the
company has closed its Roberds Grand megastore in suburban
Cincinnati and eight stores and a warehouse in Florida.

SAFETY-KLEEN: Shareholders Have 10 Days To Act on Lawsuit
The following was released by Seattle's Keller Rohrback L.L.P.
( Pursuant to federal laws, investors
who purchased Safety-Kleen Corp. (NYSE:SK) ("Safety-Kleen" or the
"Company") common stock between July 7, 1998 and March 6, 2000,
inclusive (the "Class Period"), are required to act on or before
May 5, 2000, to actively participate in the class action lawsuit
as a lead plaintiff in the securities suit filed against Safety-
Kleen and certain of its officers and directors.

If you would like Keller Rohrback L.L.P. to file papers with the
court on your behalf, we must receive certain documents from you
prior to the stated deadline.  You may find additional
information on how to join this and other class actions on our
web site:  

Shareholders allege that Safety-Kleen and certain of its officers
and directors violated the Securities Exchange Act of 1934 and
Rule 10b-5 established thereunder by issuing false and misleading
financial statements that materially overstated the Company's
revenues, income and earnings during the Class Period. On March
6, 2000, Safety-Kleen announced that it had "initiated an
internal investigation of its prior reported financial results
and certain of its accounting policies and practices following
receipt by the Company's Board of Directors of information
alleging possible accounting irregularities that may have
affected the previously reported financial results of the Company
since fiscal year 1998."

SMITH CORONA: Nasdaq Drops Company From Market
The Nasdaq stock market has notified Smith Corona Corp. that the
company no longer meets its financial requirements and will not
be traded on the exchange as of Thursday.

Recently, Smith Corona which reported its net worth as $ 560,000
for the six months ending Dec. 31, fell below Nasdaq's listing
requirement, which is a complex ratio of net worth and market
capitalization, Bell said, relates The Associated Press.

TOWER AIR: Shuts Down Passenger Service
Tower Air, which filed for bankruptcy protection earlier this
year, discontinued its scheduled passenger service out of John F.
Kennedy International Airport on Monday night.

A spokesman at the airline's operations office said the airline
stopped outgoing flights at 6:30 p.m. The airline planned to
continue with military and charter flight service.

The number of Tower passenger flights affected was unavailable.

International arrivals were scheduled to continue landing at
Kennedy airport early Tuesday morning. Most international Tower
Air flights land around 4 a.m., Port Authority spokesman Alan
Morrison said.

"My understanding is that they announced they're ceasing all
passenger flights," Morrison said Monday night.

He added that an 11:30 p.m. flight from New York to Tel Aviv,
scheduled to carry about 300 passengers, was canceled Monday

The Port Authority added extra staff at the airport to help
direct displaced passengers. But Port Authority police said it
was unclear whether Tower tickets were being honored by other

In February, Tower Air Inc. filed for Chapter 11 bankruptcy
protection in the U.S. Bankruptcy Court in Wilmington, Del.
The same month, the airline, based at Kennedy Airport in New
York, said it intended to cut 300 jobs, or 19 percent of its work
force, in an effort to boost profits.

The carrier, which once flew both scheduled and chartered
service, said in February that it planned to reduce the size of
its fleet by returning planes to their lessor.

Morris Nachtomi, the company's president, chief executive and
chairman of the board, holds 77.2 percent of Tower's voting
securities, according to the bankruptcy filing. Nachtomi is the
managing general partner of the Nachtomi Family LP, which holds
the vast majority of those shares.

TRANSTEXAS GAS: Reports Fiscal 2000 Results
TransTexas Gas Corporation (OTCBB:TTXG) reported that operating
results for the year ended January 31, 2000 included a net income
of $429.3 million, or $7.46 per share on revenues of $113.7
million, including extraordinary items, reorganization items and
income taxes. Excluding these items, the loss before
reorganization items, income taxes and extraordinary items
was$47.7 million.

This compares with a net loss of $447.7 million, or$7.78 per
share and revenues of $156.8 million, in the prior year. Results
for the year ending January 31, 2000 reflect that the Company
ceased accruing interest for its liabilities subject to
compromise, as a result of the Company's Chapter 11 filing. Year-
ago results include a $61.2 million gain on the sale of oilfield
service assets and a $426.0 million pre-tax writedown, reflecting
lower commodity prices, recorded under the full cost method of

Earnings before interest, income taxes, impairment loss,
depreciation, depletion and amortization (EBITDA), excluding
charges associated with the plan of reorganization, rose to $65.4
million. This compares to $44.1 million, excluding the gain on
sale of assets, in the prior year. Sales of gas, condensate and
natural gas liquids (NGL's) for the year were $111.4 million, up
22% from the previous year's $91.3 million. Total production of
gas, condensate and NGL's was 45.0 billion cubic feet equivalent
(Bcfe) compared to 43.5 Bcfe in the previous year.

Subsequent to the end of the fiscal year, the Company announced
on March 17, 2000 (The "Effective Date") that its Plan of
Reorganization had become effective as the final step in the
Company's emergence from Chapter 11, which commenced
with the petition filing on April 19, 1999.

On the Effective Date, the Company's 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 canceled. The Company issued $200,000,000 in
New Senior Secured Notes, 222,455,320 Shares 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 paid
$21,841,200 in cash to the holders of the Senior Secured Note

Holders of the Senior Secured Note claim subsequently reallocated
a portion of their Plan distribution as follows: (i) holders of
Subordinated Note claims received a portion of either $1.841
million aggregate cash; 2,455,320 shares of New Senior Preferred
Stock or; 20,716,080 Shares of New Junior Preferred Stock, (ii)
holders of general unsecured claims will receive a pro-rata
distribution of the$20 million General Unsecured Creditors Cash
Amount and 5,000,000 shares of New Senior Preferred Stock, and
(iii) 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 of Reorganization, which
contains complete details of the reorganization distributions.

On April 20, 2000 the Company's Class A Common Stock commenced
trading on the OTC Bulletin Board under the symbol TTXG. The
terms of the Company's Senior Preferred Stock include a
cumulative dividend, payable quarterly, out of funds legally
available therefor, if any. If the Company fails to pay dividends
on the Senior Preferred Stock on any two dividend payment dates,
half of the Senior Preferred Stock and all of the Junior
Preferred Stock would automatically convert into shares of Class
A common equity. Such a conversion would result in a significant
dilution to holders of the common stock and there can be no
assurance that the Company will be able to meet its dividend

TransTexas drilled 14 wells during the fiscal year, with 43% of
these being completed. By comparison, in fiscal 1999, it drilled
38 wells and completed 61%. Lifting costs for fiscal 2000 were
$0.41 per thousand cubic feet equivalent (Mcfe), vs. $0.37 per
Mcfe in the prior year.

Depreciation, depletion and amortization decreased by $11.1
million to $75.0 million due to lower gas and condensate
production volumes and a lower depletion rate. General and
Administrative expenses for the year were $19.9 million, $2.1
million, or 9%, below the prior year. Total capital expenditures
were $42.3 million for the year, versus $190.6 million in the
prior year.

The Company's PV10 increased 42% to $228.7 million, up from
$161.5 million, primarily due to improved commodity prices. Total
proved reserves at year-end were 117.8 Bcfe, compared to 160.3
Bcfe in the prior year, reflecting lower drilling activity as a
result of reduced capital available during the Company's

For the quarter ended January 31, 2000, TransTexas reported
revenues of $36.7 million and net income of $476.6 million, or
$8.28 per share, which includes $ 55.6 million of reorganization
gains, income tax expense of $10.0 million and a $436.5 million
extraordinary gain on the early extinguishment of debt.
Comparable year-ago results include revenues of $19.1 million and
a net loss of $292.4 million, including the effects of a $239.2
million non-cash asset impairment charge in the quarter.
Excluding the non-recurring items and the impairment charge in
the prior year, the loss would have been $6.7 million for
the quarter, as compared to a loss of $53.2 million in the
comparable quarter a year ago.

Gas, condensate and NGL revenues for the quarter increased to
36.8 million, compared to $24.2 million in the prior year
quarter, primarily due to increased oil and gas prices. Total
production volumes, including NGL's, for the quarter were 11.2
Bcfe, versus 11.5 Bcfe in the prior year. The average price
received for natural gas during the three-month period was $2.72
per Mcfe versus $2.07 in the prior year period. Crude oil and
condensate prices increased to $21.57 per Bbl versus $11.24 in
the prior year period. Operating expenses for the three months
decreased 32% to $3.6 million from $5.3 million in the prior
year, due primarily to decreases in maintenance costs.

TransTexas is engaged in the exploration, production and
transmission of natural gas and oil, primarily in South Texas,
including the Eagle Bay field in Galveston Bay. Copies of the
Company's filings with the Securities and Exchange Commission may
be found on the internet at

TV FILME: Taps Ernst & Young as Accounting and Auditing Advisors
TV Filme, Inc., debtor, seeks authority to retain and employ
Ernst & Young LLP as accounting and auditing advisors to the

The firm will charge its customary hourly rates which range from
$470-$700 for partners and principals, $325-$605 per hour for
senior managers, $253-$397 per hour for managers, $162-$261 per
hour for seniors and $115-$158 per hour for staff.

WILLCOX & GIBBS: Plan of Reorganization Becomes Effective
Willcox & Gibbs, Inc. announced that its Chapter 11 Plan of
Reorganization became effective on May 1, 2000 and that it had
successfully emerged from reorganization proceedings.  Under the
Plan of Reorganization, general unsecured creditors of the
company will receive Class A common stock of Willcox & Gibbs or,
in certain cases, cash for allowed claims.  In addition, certain
trade creditors will receive promissory notes of Willcox & Gibbs.  
The company said that it expects to make an initial distribution
of its Class A common stock to its creditors by the end of May

Willcox & Gibbs is the largest distributor in North America of
replacement parts, supplies and ancillary equipment to
manufacturers of apparel and other sewn products.

WSR CORP: Order Extends Time to Assume/Reject Leases
By court order entered on April 7, 2000, WSR Corporation,
R&S/Strauss, Inc., National Automotive Stores, Inc. and National
Auto Stores Corp. are granted an extension of time througha nd
until May 5, 2000 to assume or reject unexpired leses pursuant to
section 365(d)(4) of the Bankruptcy Code.

ZETA CONSUMER: Announces Bankruptcy Filing
Zeta Consumer Products, which filed for Chapter 11 protection
last week in federal court in New Jersey after laying off most of
the 300 employees at its Macomb plant on April 7, has announced
it is looking for buyers, but Macomb officials say that's not
necessarily bad news, reports Copley News Service on April 26,

"The company has not been profitable in the last few years due to
intense competition in the consumer plastics industry," acting
company president Stephen Hopkins said.  "The company's problems
were accentuated in recent months as the price of resin, the
company's primary raw material, increased dramatically, and Zeta
was unable to pass the cost increases on to its customers."

Hopkins said the company had sales of about $100 million in the
fiscal year that ended Oct. 31, 1999.


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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