TCR_Public/000511.MBX     T R O U B L E D   C O M P A N Y   R E P O R T E R

          Thursday, May 11, 2000, Vol. 4, No. 93

                        Headlines

APPLE ORTHODONTIX: Seeks To Extend Exclusive Periods
AUTOINFO INC: Announces Rescheduled Hearing Date Regarding Plan
BUFETE INDISTRIAL: Subsidiary Wins Bankruptcy Protection
CAMBIOR INC: Sells Mexican Division to Glamis Gold Ltd
CHAI NA TA: Receives Regulatory Approvals

CLARIDGE HOTEL AND CASINO: Reports First Quarter Results
DYNEX CAPITAL: Reports Net Loss of $13.9 Million For Quarter
EQUALNET COMMUNICATIONS: Agrees To Acquire Max-Tel
EQUIMED: Partner Takes Control After Bankruptcy Filing
FREEPORT-MCMORAN COPPER & GOLD: Adopts Shareholder Rights Plan

HIKARI TSUSHIN: Sells stake in U.S. Firm
INTEGRATED: Sees To Assume & Reject 85 Rotech & Symphony Leases
JUMBOSPORTS: Seeks Authority to Sell Nebraska Property
JUMBOSPORTS: Seeks Authority to Sell Stockton, Calif Property
KENETECH: To Repurchase Additional 5 Million Shares of Stock

LAROCHE INDUSTRIES: Reports Filing Chapter 11 Petition To SEC
LIBERTY HOUSE: Partial Settlement With IRS
MARINER: Taps Conway Del Genio as Financial Advisor
MERIDIAN CORPORATION: Order Grants Exclusivity Extension
NU-KOTE HOLDING: Reports Progress During Fiscal Year

PATHMARK: Senior Officers Motivated to Sell Company by July 31
PLANET HOLLYWOOD: Successfully Emerges from Chapter 11
ROBERDS: Ceases Operations and Closes Stores in Ohio and Georgia
SABRATEK CORP: Seeks Order Approving Sale of CMS Healthcare
SCHEIN PHARMACEUTICAL: Resolves Differences With Shareholders

SOUTHERN MINERAL: Authority to Enter Commitment Letter
STONE & WEBSTER: Agrees To Sell Assets To Jacobs Engineering
TITANIUM METALS: Announces First Quarter Loss
TITANIUM METALS: Receives Quarterly Dividend of $1.3 Million
TOKATSU FOODS CO.: Projects 1.06B Yen net loss for FY99

TULTEX CORP.: Sale in Final Stages
WESTERN DIGITAL: Reports Quarter Results

                     *********

APPLE ORTHODONTIX: Seeks To Extend Exclusive Periods
----------------------------------------------------
Apple Orthodontix, Inc., debtor, seeks entry of a court order
extending the exclusive periods during which the debtor may file
reorganization plans and solicit acceptances to the plans.  The
debtor seeks an extension for 90 days so that the debtor's plan
proposal period would run through and including August 24, 2000
and the solicitation period would run through and including
November 22, 2000.

The debtor states that its case is large and complex, that it has
entered into a DIP Credit and Guaranty Agreement with its lenders
and that it has requested that the final financing order
approving such facility be entered at a hearing scheduled on or
about May 15, 2000.  The debtor also request approval for the
proposed sale of certain assets to Orthodontic Centers of
America, Inc., which sale is scheduled to be approved at a
hearing on June 1, 2000.  The debtor has commenced discussions
with the lenders and the Creditors Committee to structure the
reorganization plan.  Discussions with the practitioners
Committee are also underway.


AUTOINFO INC: Announces Rescheduled Hearing Date Regarding Plan
---------------------------------------------------------------
AutoInfo, Inc. (OTCBB:AUTO) announced that the hearing schedule
to be held before the Honorable Adlai S. Hardin, Jr., United
States Bankruptcy Judge, in Room 520 of the United States
Bankruptcy Court, 300 Quarropas Street, White Plains, New York
10601, on May 11, 2000 has been rescheduled for 10:00 AM on May
31, 2000.

William Wunderlich, President and Chief Financial Officer of
AutoInfo stated, "the hearing date has been rescheduled to allow
us additional time to file our amended disclosure statement.  We
anticipate that we will satisfy issues raised by all interested
parties and are hopeful that the acceptance of the disclosure
statement will lead to the timely confirmation of our
reorganization plan so that we may proceed toward the
consummation of a transaction in our continuing efforts to
restore shareholder value."


BUFETE INDUSTRIAL: Subsidiary Wins Bankruptcy Protection
--------------------------------------------------------
According to Reuters, a subsidiary of Mexico's debt-burdened
construction company Bufete has won court-ordered bankruptcy
protection from its creditors, the company said on Monday. The
subsidiary, Bufete Industrial Construcciones (Biconsa), accounts
for about a third of the company's revenues and is one of the
main contractors of state oil monopoly Petroleos Mexicanos.
Biconsa has initiated a legal process to restructure some $146
million in debt, the company said. The order for suspension of
payments was granted as part of that process. Bufete's main
creditors include Citibank Mexico, a subsidiary of Citigroup,
Mexican banks Serfin and Ixe and the state-run Foreign Trade
Bank. Bufete, one of Mexico's largest builders, is short of cash
and missed a $100 million Eurobond payment last July. The 1994-95
peso crash and turbulence in Asia that followed in 1997 brought
the firm to the verge of collapse. Last March, Bufete signed an
administration agreement in principle with Houston-based Enron,
one of the world's largest construction, electricity, gas and
telecommunications companies with assets of $34 billion. Based in
Mexico City, Bufete has operations in the U.S., El Salvador,
Colombia, Peru, Chile and Argentina. (ABI 10-May-00)


CAMBIOR INC: Sells Mexican Division to Glamis Gold Ltd
------------------------------------------------------
Cambior Inc. ("Cambior") announces that it has sold its 100 %
interest in Cambior de Mexico, S.A. de C.V., Cambior's Mexican
holding company, to Glamis Gold Ltd. ("Glamis").  Glamis has also
purchased from Cambior a crusher system originally acquired by
Cambior for use at the Cerro San Pedro Project in Mexico.  
Cambior received cash proceeds of $9.5 million from Glamis of
which $7 million is attributed to the shares of Cambior de Mexico
and $2.5 million to the crushing plant.

Cambior de Mexico's assets include 50 % of Minera San Xavier,
S.A. de C.V., which owns the Cerro San Pedro gold and silver
project in San Luis Potosi; 100 % of Cambior Metates, S.A. de
C.V., which owns a 50 % interest in the Metates gold project ion
the State of Durango; and 100 % of Cambior Exploracion, S.A de
C.V., which holds interests in a variety of gold exploration
projects in Mexico.

Proceeds from the sale will be used to reduce Cambior's
obligations to its financial creditors.

Cambior Inc. is a diversified international gold producer with
operations, development projects and exploration activities
throughout the Americas. Cambior's shares trade on the Toronto
and American (AMEX) stock exchanges under the symbol "CBJ".


CHAI NA TA: Receives Regulatory Approvals
-----------------------------------------
Chai-Na-Ta Corp. (TSE: "CC"; OTCBB: "CCCFF") reports that it
obtained approvals from the TSE and B.C. Securities Commission
on its financial restructuring plan.  All regulatory approvals
have now been received.  As a result, the Company has also
closed the subscription based on its agreement with Road
King Infrastructure Ltd.

The restructuring plan reduces the Company's debt by more than
CDN$28 million.  Road King Infrastructure Ltd. who invested CDN$5
in equity also purchased the positions of the Company's two major
creditors after the restructuring plan was accepted by the
courts.  In addition, Road King forgave $5 million in debt of the
remaining $10 million, reduced the interest rate from 10.6% to 0%
and extended the loan to a five year term.

Chai-Na-Ta has also successfully negotiated a significant
redemption discount on the remaining $5 million debt due in 2005
to Road King. The debt will be further reduced to the amounts
indicated if paid within the following years:

      2001 -  $2.5 million
      2002 -  $2.9 million
      2003 -  $3.5 million
      2004 -  $4.2 million

Road King through its subsidiary, Herb King International Ltd.
has been involved in Traditional Chinese Medicine (TCM) in China
for over a year and will provide increased access for the
Company's products into the largest ginseng market - China.  Road
King's Chairman, Mr. William Zen, has been appointed as Chairman
of Chai-Na-Ta Corp.  Four other nominees on behalf of Road King
were also appointed to the Board of Directors. President and CEO,
Gerry Gill said, "We have been able to restructure the Company
while still preserving our assets. The reduction in debt and
increase in working capital means the Company is in a position to
capitalize on its current programs. Our new found financial
strength coupled with the opportunities Herb King represents -
access to further distribution networks and new working capital -
is the synergistic fit we need to move this Company forward. "

Gill further commented, "The restructuring has significantly
increased the value for our shareholders. Our book value has
increased from $0.6804 per share before the restructuring to
$1.34 per share undiluted and $0.95 per share fully diluted."
Chai-Na-Ta Corp., based in Langley, British Columbia, is the
world's largest supplier of North American ginseng. The Company
farms, processes and distributes North American ginseng as bulk
root, and supplies processed extract powder for the manufacture
of value-added ginseng based products.


CLARIDGE HOTEL AND CASINO: Reports First Quarter Results
--------------------------------------------------------
The Claridge Hotel and Casino Corporation, operator of the
Claridge Casino Hotel, reported a net loss of $1.1 million for
the first quarter of 2000, compared to a net loss of $1.2 million
in the first quarter of 1999.

Earnings before interest, taxes, depreciation and amortization,
when adjusted to eliminate the effects of Claridge's related
limited partnership structure ("Adjusted EBITDA"), were $417,000
for the quarter ended March 31, 2000, compared to $2.4 million
for the first quarter in 1999.

Net loss and Adjusted EBITDA for the first quarter of 2000
included a $1.1 million expense for professional fees for legal,
financial and other services related to the Corporation's Chapter
11 proceedings.  Net loss and Adjusted EBITDA for the first
quarter of 1999 include the effect of the receipt of the
settlement of Claridge's claim against the contractor and
architect that built its self-parking garage.

On August 16, 1999, The Claridge Hotel and Casino Corporation and
The Claridge at Park Place, Incorporated filed voluntary
petitions under Chapter 11 of the U.S. Bankruptcy Code in order
to facilitate a financial restructuring.

Therefore, beginning on August 16, 1999, the Corporation ceased
to record interest expense related to its 11-3/4% First Mortgage
Notes.  Interest expense for the Notes, for the period January 1,
2000 to March 31, 2000, would have been $3,212,000.

Casino revenue was $38.8 million in the first quarter of 2000, a
6.0% increase over casino revenue in the same period in 1999.  
Total costs and expenses for the quarter declined $1.5 million,
due mainly to decreased interest expense due to the bankruptcy
filing, offset to some extent by increases in casino, hotel,
room, food, beverage and other expenses necessary to support the
revenue improvement.

"We are pleased with the improvement in year-to-year operating
results," stated Frank Bellis, chief executive officer,
"Eliminating the effect of the reorganization expense in 2000 and
the one-time receipt of the garage settlement in 1999 we saw a
$1.2 million improvement in the Adjusted EBITDA in the first
quarter of 2000."

The Claridge Hotel and Casino Corporation, through its
subsidiary, The Claridge at Park Place, Incorporated, operates
the Claridge Casino Hotel in Atlantic City.  The casino hotel
opened in July 1981 and has 59,000 square feet of casino gaming
space.  The Claridge Hotel and Casino Corporation is a closely
held public corporation.  Its Corporate Bonds are publicly traded
on the New York Stock Exchange under the symbol CLAR02.


DYNEX CAPITAL: Reports Net Loss of $13.9 Million For Quarter
------------------------------------------------------------
Dynex Capital, Inc. (NYSE: DX) reported a net loss of $13.9
million or $1.22 per common share for the first quarter 2000,
versus a net loss of $969,000 or $0.08 per common share for the
first quarter of 1999, and a net loss of $81.3 million or $7.39
per common share for the fourth quarter of 1999.

For the first quarter, the Company reported that net interest
margin was $6.0 million, compared to $9.9 million during the
fourth quarter of 1999 and $11.2 million during the first quarter
of 1999. The Company also reported losses of approximately $13.4
million primarily from sales of securities in its investment
portfolio. The proceeds of the sales were used to repay recourse
borrowings.

In commenting on the first quarter results, the President of the
Company, Thomas H. Potts stated, "The losses are primarily
related to the sale of investment securities as the Company
focuses on reducing its recourse borrowings. To that end the
Company disposed of a number of investments at a net loss during
the quarter, the proceeds of which were used to reduce recourse
borrowings. In addition to losses from asset sales, results were
negatively impacted by a decline in net interest margin, which
fell to $6.0 million for the first quarter compared to $9.9
million for the fourth quarter of 1999. Net interest margin was
adversely effected by recent increases in short-term interest
rates, which has the near-term effect of increasing our borrowing
costs. The Company's average cost of funds was 6.9% in the first
quarter, versus 6.6% in the fourth quarter of 1999. Though we
still have $1.5 billion of ARM assets in our investment
portfolio, yields on these investments lag the increase
in the associated borrowing costs. In addition, net interest
margin has been negatively impacted as a result of the decrease
in interest earning assets. The Company's average interest
earning assets for the first quarter were $4.1 billion
versus $4.3 billion for the fourth quarter of 1999."

The Company reported that general and administrative expenses for
the first quarter, including general and administrative expenses
of the Company's unconsolidated affiliates, decreased to $2.7
million versus $3.2 million for the fourth quarter of 1999, and
$7.9 million for the first quarter of 1999. The Company indicated
that it expects general and administrative expenses to continue
to decline in subsequent quarters.

At March 31, 2000, the Company's on balance sheet recourse
borrowings were $421 million versus $537 million at December 31,
1999. The Company has been successful in its efforts to reduce
its recourse borrowings and continues to remain focused in making
further progress. As of today, the Company reported that on
balance sheet recourse borrowings were approximately $370
million, including approximately$200 million in borrowings which
mature in May. As previously disclosed, the Company is in default
of certain covenants under its credit facilities.

In regard to the status of the litigation with AutoBond
Acceptance Corporation ("AutoBond"), the Company reported that
AutoBond has accepted a judgment, as reduced by the trial court,
of $23.6 million. The trial court has also set a hearing date on
May 15, 2000 to hear the Company's request to be allowed to post
alternative security in the amount of the judgment other than an
appeal bond. To date, the Company has been unsuccessful in its
efforts to locate an appeal bond on terms that the Company can
meet.

Regarding the outlook for the Company, Mr. Potts stated
"Obviously given our continued default on covenants in our credit
facilities, the Company's short-term focus remains on repaying
recourse debt. None of our lenders has chosen to accelerate
amounts outstanding, and the Company has accepted bids to
sell loans which should generate proceeds of approximately $150
million to repay lenders. In addition, we continue to move
forward with the securitization of the AutoBond funding notes,
which should convert approximately $31 million of recourse debt
to a like amount of non-recourse debt". Mr. Potts continued,
"Given the current posture by the Federal Reserve, and the
likelihood of additional short-term rate increases in the near-
term, and as we sell interest-earning assets, net interest margin
will likely continue to decline in the second quarter."

Separately, the Company announced the resignation of Lynn K.
Geurin as Executive Vice President and Chief Financial Officer of
the Company. The Company has yet to designate an officer to
assume such responsibilities.

Dynex Capital, Inc. is a financial services company that elects
to be treated as a real estate investment trust (REIT) for
federal income tax purposes.


EQUALNET COMMUNICATIONS: Agrees To Acquire Max-Tel
--------------------------------------------------
Equalnet Communications Corp. has entered into a definitive
agreement to acquire Max-Tel Communications, Inc., a prepaid
competitive local exchange carrier, for total consideration of up
to $6 million in cash and up to 12 million shares of restricted
Equalnet common stock.  Completion of the transaction is subject
to Equalnet's satisfactory completion of its due diligence,
obtaining required regulatory approvals, and Equalnet's
financing of the cash component of the transaction consideration.  
Equalnet has received a preliminary commitment from a lender to
provide the financing necessary to consummate the transaction.  
Equalnet anticipates that the transaction will close within 90
days.

Max-Tel's core business is providing prepaid dial tone to
subscribers who typically do not meet the credit criteria imposed
by the incumbent local exchange carriers.  Based in Alvord,
Texas, Max-Tel has approximately 18,000 subscribers and has
regulatory approval to provide CLEC services in over 20 states.  
Max-Tel has applications pending to provide CLEC services
in additional states.  Max-Tel has interconnect agreements with 6
incumbent local exchange carriers.  Its current annualized
revenue is approximately $12 million.  Max-Tel advised Equalnet
that for calendar 1999 it had pre-tax income of approximately
$1.4 million.

Mitchell Bodian, Equalnet's President and CEO, commented, "The
prepaid CLEC market is a relatively new, under-served, and
rapidly growing telecom segment without any clearly dominant
competitors.  We believe this presents an attractive and
potentially highly profitable niche market for Equalnet.
Some industry studies predict that the number of prepaid dial
tone subscribers will double between this year and next.  Max-Tel
has had success serving this market and we expect it to provide
us with a firm foundation upon which we can build a leading
prepaid CLEC operation."  Bodian added, "Our infrastructure and
facilities should permit us to capitalize on Max-Tel's strengths
and maximize the benefits of combining the operations of Max-Tel
and Equalnet."


EQUIMED: Partner Takes Control After Bankruptcy Filing
------------------------------------------------------
The Virginian-Pilot reports that by May 14, 2000, Albemarle
Hospital trustees could finally wrest control of the
Albemarle Regional Cancer Center from EquiMed, the troubled
health-care company that has been a partner in managing the
center, based on comment by the hospital's attorney.

A lawsuit filed by the trustees nearly a year ago to break up the
partnership has been stymied. But last week EquiMed was forced
into bankruptcy as a result of a $ 26 million lawsuit filed by
stockholders, said John Morrison, an Elizabeth City attorney who
represents Albemarle Hospital and Regional Medical Services.  

EquiMed assets are in control of a management team that will
allow RMS to manage the center and use the radiation equipment
owned by EquiMed. Since EquiMed owes RMS $ 850,000 in building
rent, RMS could be repaid by gaining ownership of the equipment,
Morrison said.

The cancer center was built in 1991 in a partnership between RMS
and Oncology Services, a subsidiary of EquiMed. The contract will
expire in August 2001.


FREEPORT-MCMORAN COPPER & GOLD: Adopts Shareholder Rights Plan
--------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc.'s Board of Directors has
adopted a shareholder rights plan.  The rights plan is designed
to enable all FCX stockholders to realize the full value of their
investment and to provide for fair and equal treatment for
stockholders in the event of an unsolicited attempt to acquire
FCX.  This plan does not prohibit the Board from considering any
offer that might be advantageous to its stockholders. FCX has no
knowledge of any unsolicited attempt to acquire FCX.

One right will be distributed as a dividend to shareholders of
record on May 16, 2000 for each share of Class A and Class B
common stock held. Subject to certain conditions, the rights will
be exercisable if a person, other than Rio Tinto plc, acquires or
announces the intent to acquire 20 percent or more of either
FCX's Class A or Class B common stock.  FCX's 1995 Shareholder
Agreement with Rio Tinto, which currently owns 23.9 million
shares of FCX's Class A common stock, provides that Rio Tinto
will not acquire voting rights to elect more than 50 percent of
the members of FCX's Board of Directors without negotiating with
FCX's Board.

If exercisable, each right would give the holder, other than the
acquirer, the ability to purchase an additional share of FCX
Class B common stock from the company at 50 percent of the market
price.  The effect would be to discourage acquisition of 20
percent or more of FCX's Class A or Class B common stock without
negotiations with the Board of Directors.

The rights will expire on May 3, 2010, unless redeemed or
exchanged at an earlier date.  A notice explaining the rights
plan will be mailed to stockholders of record in the near future.  
The rights initially will trade with shares of FCX's common stock
and will have no impact on the way in which FCX's shares are
traded.  There are currently no separate certificates and there
is no market for the rights.

FCX is engaged in mineral exploration and development, mining and
milling of copper, gold and silver in Indonesia, and the smelting
and refining of copper concentrates in Spain and Indonesia.


HIKARI TSUSHIN: Sells stake in U.S. Firm
----------------------------------------
Financially troubled Hikari Tsushin Inc. (9435) said Monday
that it sold its stake of 1.83 million-plus shares in
Phone.com Inc. on May 2 and will book the 12.6 billion yen
gain as nonoperating profit for the current fiscal year
through August.

Phone.com is traded on the Nasdaq stock market in the U.S.
The sale was aimed at securing working capital and
investment funds, company officials said.  At its recent
announcement of midterm results, the company predicted a
35% rise in pretax profit for fiscal 2000 to 28 billion
yen.

"The 12.6 billion yen profit from the stock sale will boost
pretax profit for the current term by a like amount if our
equity holdings in other firms show no appraisal loss,"
said company officials.

The subscription agency for cell phone services also
revealed it has postponed to May 29 from May 20 the
starting date for dividend payments for the first half
ended Feb. 29. The postponement was caused by clerical
delays, and the company sent a notice to shareholders to
that effect on April 25, the officials said. (Nikkei  09-
May-2000)


INTEGRATED: Sees To Assume & Reject 85 Rotech & Symphony Leases
---------------------------------------------------------------
The Debtors, Integrated Health propose to reject various leases
of parcels of non-residential property which are of no use for
the Debtors' continued operations in different business segments.

(A) In connection with Rotech Medical Corporation, the Debtors'
home respiratory services operations, IHS seeks to reject 35
currently vacant parcels of Leased Property and 14 parcels of
currently occupied Leased Property, which together involve rental
in the amount of $104,921.62 per month.

(B) In connection with Symphony, which operates the Debtors'
contract services, and the Debtors' Nursing Business, IHS seeks
to reject 27 primary leases and 9 subleases which command rent in
the amount of $314,255.71.

(C) IHS has also proposed the rejection of the Richland Lease
relating to a medical office space which is no longer being used
by RAI. The base rent under the lease is $1303.00 per month and
Richland has acknowledged that all of the prepetition rent due
has been paid in full.

Finding that the Debtors have exercised their sound business
judgment, Judge Walrath authorized the Debtors' rejection,
pursuant to 11 U.S.C. Sec. 365, of these burdensome leases in all
respects. (Integrated Health Bankruptcy News Issue 4; Bankruptcy
Creditors' Services Inc.)


JUMBOSPORTS: Seeks Authority to Sell Nebraska Property
------------------------------------------------------
The debtors, Jumbosports, Inc. and its affiliates seek to sell
real property located in Omaha Nebraska to Michael G. Kucera,
Trustee.  A hearing to consider the motion is scheduled for June
1, 2000 at 1:30 PM before the Honorable C. Timothy Corcoran, III,
Courtroom 9B, Sam M. Gibbons US Courthouse, 801 North Florida
Avenue, Tampa, Florida 33602.  The property is located at 3031
North 120th Street, City of Omaha, County of Douglas, State of
Nebraska.  The debtor has completed its going-out-of-business
sale at its sporting goods store located on the real property.  
The real property is unoccupied and the debtor does not intend to
conduct any further business on the real property.  The total
purchase price for the real property is $2.8 million.

Competing bidders must submit a bid no later than 5:00 PM on May
25, 2000.  Any competing bid or topping bid must start at $2.81
million and all subsequent bids must be in incremental increases
of at least $10,000.


JUMBOSPORTS: Seeks Authority to Sell Stockton, Calif Property
-------------------------------------------------------------
The debtors, Jumbosports, Inc. and its affiliates seek to sell
real property located in Stockton, California to SH Realty
Partners, Inc.  A hearing to consider the motion is scheduled for
June 1, 2000 at 1:30 PM before the Honorable C. Timothy Corcoran,
III, Courtroom 9B, Sam M. Gibbons US Courthouse, 801 North
Florida Avenue, Tampa, Florida 33602.  The property is located at
6221 West Lane in the City of Stockton, County of San Joaquin,
State of California. The total purchase price for t the real
property is $2.5 million.

Competing bidders must submit a bid no later than 5:00 PM on May
25, 2000.  Any competing bid or topping bid must start at $2.51
million and all subsequent bids must be in incremental increases
of at least $10,000.


KENETECH: To Repurchase Additional 5 Million Shares of Stock
------------------------------------------------------------
Kenetech Corporation's Board of Directors has authorized the
repurchase of an additional 5,000,000 shares of its common stock,
par value  $0.0001.  The company reports that it has completed
the repurchase of 2,000,000 shares under the repurchase program
announced in March 2000.  The new repurchase program will
continue until the company acquires the additional
5,000,000 shares or until December 31, 2000.


LAROCHE INDUSTRIES: Reports Filing Chapter 11 Petition To SEC
-------------------------------------------------------------
LaRoche Industries Inc. has filed for protection under Chapter 11
of the U.S. Bankruptcy Code. The filing was made in the U.S.
Bankruptcy Court for the District of Delaware, located in
Wilmington.

Bud Ingalls, president and chief executive officer, assured
LaRoche Industries' customers that the company's manufacturing
operations and product shipments would continue uninterrupted.
"Filing for Chapter 11 was a very difficult decision for us, but
one we believe was necessary to secure the financial resources
and framework needed to support our customers, vendors and
employees," said Ingalls. "Chapter 11 protection will give
management the time and interim financing necessary to address
our burdensome capital structure and enable our operations
personnel to focus on running the business and serving
customers."

Company officials cited high debt levels combined with depressed
market conditions and the forced outage of its Louisiana chlor-
alkali plant last summer as the primary causes of its declining
cash situation. LaRoche Industries announced March 10 that it
would not make its $8.3 million bond interest payment due March
15, 2000, and that it was pursuing a financial restructuring
plan.

The company also announced that it has negotiated a "debtor-in-
possession" (DIP) financing facility with The Chase Manhattan
Bank, which upon court approval, will provide an additional $25
million revolving credit facility to LaRoche Industries for an
18-month period. Management believes that this DIP facility,
together with existing cash balances and revenue streams,
should be sufficient to provide for the company's ongoing
liquidity needs until a debt restructuring plan is in place.

The management and the board of directors of LaRoche Industries
said they are continuing to work closely with the committees of
its key creditors to reorganize and restructure the company's
indebtedness as quickly as possible.

"Our focus and intention is to emerge from this reorganization as
a financially healthier and more stable organization that is
competitive in its markets and consistently delivers quality and
service to its customers," said Ingalls.

LaRoche Industries is a worldwide producer and distributor of
nitrogen, chlor-alkali and fluorocarbon chemical products, with
operations throughout the United States, Germany and France.


LIBERTY HOUSE: Partial Settlement With IRS
------------------------------------------
Liberty House announced a partial settlement Monday with the
Internal Revenue Service in an ongoing tax dispute that has
delayed the retailer's bankruptcy reorganization.

An attorney for Liberty House parent company JMB Realty Corp.
said the retailer agreed to pay $4.2 million to the IRS, or 4
percent of the $103.5 million the IRS said it was owed.

Attorney Bruce Bennett said he expects Liberty House to pay less
than $ 500,000 of the amount it agreed to in the settlement, with
the parent company paying the balance.

The partial settlement covers taxes Liberty House owes for the
1992 through 1994. The IRS is conducting a second audit for a
claim of another $34.8 million it says the store owes for 1995
and 1996.

Liberty House attorney Bennett and U.S. bankruptcy attorney Carol
Muranaka said the deal is a step forward in the complex
bankruptcy case and should lead to more progress in settling the
dispute between two competing management groups.

"The resolution of the IRS claims for such a small number for the
1992-94 years is a major milestone in the case," Bennett said.
"it certainly represents progress toward the conclusion of
Liberty House's Chapter 11 case. Beyond that, I think it's a
little too early to tell."

Liberty House filed for Chapter 11 bankruptcy protection in March
1998.


MARINER: Taps Conway Del Genio as Financial Advisor
---------------------------------------------------
Mariner Post-Acute Network, Inc., and its 102 affiliated
Debtors ("MPAN") ask the Court for approval to employ Robert P.
Conway, Michael F. Gries and other members and personnel of
Conway, Del Genio, Gries & Co., LLC, (CDG) to perform financial
advisory services.

MPAN tells the Court that CDG is a financial advisory firm made
up of over twenty professionals. In particular, the Firm's
members have provided services to the Debtors since September
1999, assisting with cash management, developing a business plan
including financial projections, and leading discussions with
lenders and creditors in securing DIP financing.  CDG has
therefore become intimately familiar with the Debtors'
businesses and financial affairs, and the Debtors believe that
such experience will be helpful in providing effective and
efficient services in the chapter 11 cases.

During the year prior to the Petition Date, CDG received
compensation of approximately $795,781.43 from the Debtors for
services and a retainer of $350,000 for services to be rendered
and expenses to be incurred in connection with the chapter 11
cases. In accordance with its normal billing practices, CDG has
agreed to accept a monthly fee of $175,000, and will be subject
to allowance by the Court in accordance with applicable law.

The Debtors represent that to the best of their knowledge, CDG,
its members and employees do not hold or represent any interest
adverse to the estate and do not have any connection with the
Debtors' estates, creditors or other related party. (Mariner
Bankruptcy News Issue 4; Bankruptcy Creditors' Services Inc.)


MERIDIAN CORPORATION: Order Grants Exclusivity Extension
--------------------------------------------------------
By order entered on May 4, 2000, Meridian Corporation, a/k/a
Medshares, Inc. and Symphony Home Care Services No.18 - Louisiana
Inc., debtors, were granted an extension until May 1, 2000 to
file Disclosure Statements and plans, and the time to obtain
acceptance of such plans is extended to June 30, 2000.

The hearing to consider the approval of the disclosure statement
shall be held on June 8, 2000 at 9:30 AM Courtroom 645, 200
Jefferson Avenue, Memphis, Tennessee.


NU-KOTE HOLDING: Reports Progress During Fiscal Year
----------------------------------------------------
Nu-kote Holding, Inc. (OTC Bulletin Board: NKOT) reported that
the Company has successfully accomplished its financial and
operational objectives during the fiscal year ended March 31,
2000 and is expected to show positive earnings before interest,
taxes, depreciation, amortization and non-recurring charges.

Since filing for Chapter 11 protection in November 1998, the
Company has successfully restructured its core business by
reducing infrastructure and improving operating, procurement and
distribution efficiencies.  During the fiscal year ended March
31, 2000, the Company successfully stabilized its revenues and
reduced its operating costs resulting in positive cash flows.  As
a result of positive cash flows, the Company has self-financed in
excess of $5 million in non-recurring type charges including
approximately $2 million for the successful implementation of a
new fully integrated ERP system.  The new system provides
enhanced supply chain and real time data management capabilities
as well as enables the Company to meet its Y2K compliance
requirements.

In related news, Nu-kote filed its form 10-K for its previous
fiscal year, the period April 1, 1998 through March 31, 1999,
which recorded a net loss of $ 54.9 million or $2.52 loss per
share as compared to a net loss of $49.9 million or $2.30 loss
per share for the fiscal year ended March 31, 1998.  These
results include a net loss of $17.5 million, for the fiscal year
ended March 31, 1999, from its European operations which were
substantially sold during the fiscal year 2000.

Nu-kote is moving forward with its Plan of Reorganization which
provides for the sale of the business to Richmont Capital
Partners I, L.P. and cancellation of all shares of the publicly
traded stock.

For more information regarding the year ended March 31, 1999 and
the Plan, go to the Securities and Exchange Commission's web site
www.edgar.com and type in Nu-kote's ticker symbol NKOT.

Through its operating subsidiaries, Nu-kote produces supplies for
printers, copiers, fax machines and ink jet printers, sold
primarily in North America.


PLANET HOLLYWOOD: Successfully Emerges from Chapter 11
------------------------------------------------------
Planet Hollywood announced that it has successfully reorganized
and is now positioned to move forward with plans to revitalize
the brand.

The Company's plan of reorganization under Chapter 11 of the US
Bankruptcy Code became effective on May 9, 2000 when all
documents and actions contemplated by the plan were finalized.  
The Company recently sold its Times Square retail unit for
$30 million cash, eliminating the need for bridge loan financing;
however, the timing of the sale caused the Company to delay its
emergence from bankruptcy. As previously described, as a result
of the reorganization, all existing common stock of the Company
has been cancelled in exchange for 200,000 warrants to purchase
new common stock in the reorganized Company.  A group of
investors, organized by Robert Earl, the Company's Chairman and
CEO, invested $30 million into the Company for the right to
direct ownership of 7 million shares of new common stock (70%).  
The balance of the outstanding shares (3 million), together
with $47.5 million in cash and $60 million in PIK Notes were
distributed to the former bondholders in exchange for the
cancellation of approximately $282 million in debt.

A portion of the new common stock distributed to the bondholders
is exempt from registration and is freely tradable.  The new
common stock will be trading on the over-the-counter market on
the NASDAQ Bulletin Board until such time as the Company receives
notification that its shares have been accepted for listing
on a stock exchange, which is expected to be within 60 days.
Mr. Earl is looking forward to placing Planet Hollywood back in
the spotlight.  "The reorganization has provided $30 million in
new investment, $25 million in new credit facilities and has
significantly reduced the outstanding debt and onerous
obligations that were a financial burden on the Company," said
Mr. Earl.  "With the reorganization and store closings behind us,
Planet Hollywood is now positioned to move ahead with its plans
to rapidly revitalize the Company."

"In addition, Planet Hollywood is planning on making several
exciting announcements in the coming weeks concerning senior
management, celebrities, new restaurant locations and its website
launch.  My management team is now able to completely focus on
our significant portfolio of 34 company-owned restaurants
and 32 franchised units and returning Planet Hollywood to its
former glory and preeminent position in the themed restaurant
arena, and to help restore confidence in the entertainment
sector."  Planet Hollywood is the creator and worldwide developer
of a consumer brand that will capitalize on the universal
appeal of movies, TV, sports and other leisure-time activities.
The Company's worldwide operations offer products and services in
the restaurant, retail, leisure and entertainment sectors.


PATHMARK: Senior Officers Motivated to Sell Company by July 31
--------------------------------------------------------------
Copies of four Sale and Retention Bonus Agreements are annexed to
the latest annual report released by Pathmark Stores, Inc. -- the
insolvent Carteret, New Jersey, grocery store concern.   The
Agreements provide Pathmark senior executives with millions of
dollars of "Sale Bonuses" to motivate a sale of the company
before July 31, 2000.

The agreements pay a percentage of the Aggregate Consideration
paid by an Independent Third Party to:
                                                 Sale Bonus
      Individual           Position              Percentage
      ----------           --------              ----------
      James Donald         President & CEO          0.430%
      Eileen Scott         EVP--Marketing           0.100%
      John Sheehan         EVP--Operations          0.100%
      Frank Vitrano        EVP, CFO & Treasurer     0.200%
      Robert Joyce         EVP--Administration      0.075%

A full-text copy of Pathmark's latest annual report is posted at
http://www.sec.gov/Archives/edgar/data/95585/0001005477-00-003563.txt

For TCR readers' reference, the TCR's editorial staff refers to
Pathmark Stores, Inc., as an insolvent entity based on its
January 29, 2000, balance sheet reflecting $842 million in assets
versus $2 billion in liabilities.  

As previously disclosed, Pathmark announced on March 22, 2000
that it retained Wasserstein Perella & Co. to assist it in
developing a financial restructuring plan.  An ad hoc committee
of its bondholders has been organized, and Pathmark has commenced
discussions with this committee to develop a consensual financial
restructuring plan to deleverage the Company's capital structure.  
Pathmark indicates that it does not intend to impair in any way
its trade creditors or implement layoffs as part of its financial
restructuring plan.  


ROBERDS: Ceases Operations and Closes Stores in Ohio and Georgia
----------------------------------------------------------------
Roberds, Inc. has ceased operations and closed all stores and
distribution centers located in the Ohio and Georgia markets. All
locations have temporarily closed for the purpose of conducting
an inventory in preparation for a going out of business
liquidation sale. Roberds has engaged a liquidator to sell the
inventory in both markets. That sale is expected to begin in the
near future, and conclude within 90 days.

Roberds filed a petition for closure under the United States
Bankruptcy laws in the Southern District of Ohio.

The West Carrollton, Ohio-based furniture retailer announced in
January that it would seek protection under Chapter 11. At that
time, Roberds closed properties in the Florida market, a single
store in the Cincinnati, Ohio market and an operation in
Buckhead, Georgia.

"This is a very sad day for the company and its associates," said
Melvin Baskin, Roberds' president and CEO. "Despite every
imaginable effort, we were unable to pull out of Chapter 11
within the 90 day timetable we established in January. Associates
and customers had rallied to support Roberds in the last several
months. However, the inability to reach credit terms with our
major vendors resulted in our inability to provide
merchandise for our customers."

Established in 1971, Roberds currently employs more than 1300
people in the Ohio and Georgia markets. The closing will affect
seven locations in the Ohio region and eight in the Georgia
region.

"My immediate concern is for the more than 1300 associates and
families that this will impact," continued Mr. Baskin. "Many of
them have been loyal to the Roberds family since the beginning.
It was their hard work and dedication which made Roberds a leader
in the furniture, appliance, bedding and electronics markets for
nearly 30 years. We have solicited the assistance of the states
of Ohio, Indiana and Georgia to provide job search assistance for
our associates."

Most of the store and distribution associates will be offered the
opportunity to work for the liquidator during liquidation sales
in both markets.

"We cannot predict," observed Mr. Baskin, "how much cash we will
generate from the going out of business sales or from the sales
of our various properties. We therefore cannot predict at this
time how much money will be available to pay our various
creditors or whether any funds will be left for our shareholders.
We are confident, however, that our current course of action is
the best option available under these circumstances."

"We will be filing monthly financial reports in the bankruptcy
case, and we have asked the SEC for permission to file those
monthly reports with the SEC instead of our regular quarterly and
annual reports to them," said Mr. Baskin. "In light of our plan
to liquidate, we expect the Nasdaq to remove our stock from the
SmallCap Market, and we do not know what market, if any, will
exist for our stock."

"When Roberds first opened its doors back in 1971, we launched a
new era for the furniture and appliance industry in our markets.
We responded to the needs of customers and built an operation
designed around customer service. With that, Roberds will leave a
powerful legacy," said Mr. Baskin.


SABRATEK CORP: Seeks Order Approving Sale of CMS Healthcare
-----------------------------------------------------------
The debtor, CMS Healthcare, Inc. seeks an order approving the
debtor's sale of substantially all the assets of CMS Healthcare,
Inc. and debtor's assumption and assignment of assumed executory
contracts.

A hearing on the motion will be held on May 25, 2000 before the
Honorable Mary F. Walrath, US Bankruptcy Court, Delaware.

The debtor seeks to sell substantially all of its assets to CMS
Healthcare Acquisition, LLC, and entity owned exclusively by Sam
Toney, MD and created solely for the purpose of purchasing the
CMS assets.  Toney is the individual from whom Sabratek purchased
CMS approximately two years ago, and is currently  employed by
the debtor.  The purchase price is $203,750.  The Buyer shall
assume certain liabilities and shall take by assignment certain
contracts and leases.


SCHEIN PHARMACEUTICAL: Resolves Differences With Shareholders
-------------------------------------------------------------
Schein Pharmaceutical, Inc. reports it has resolved its
differences with the Marvin Schein/Irving Shafran Group that led
to the previously reported filing of an action in Delaware on
behalf of the Group. As a result, the action has been dismissed
with prejudice.  The Group represents approximately 50 percent of
the outstanding shares of the company and has stated that they
"fully endorse the pursuit of a strategic transaction that will
lead to the sale of the company," a process in which the company,
with the involvement of the Group, has been engaging.

The company also reported that it has added Marvin H. Schein and
Irving  Shafran to the board of directors, bringing its members
to a total of nine; that it will adjourn its presently scheduled
annual meeting of shareholders on May 16, 2000 to a later date;
and that it will include two additional  designees of the Group
as nominees for directorships at such time as the shareholders
meeting is held.


SOUTHERN MINERAL: Authority to Enter Commitment Letter
------------------------------------------------------
The US Bankruptcy Court for the Southern District of Texas,
Victoria Division entered an order authorizing the debtors,
Southern Mineral Corporation and its affiliated debtors to enter
into a Commitment Letter whereby Bank One, Texas, NA will provide
$19 million as of June 1, 2000 and Bank One Canada will provide
$11 million as of June 1, 2000 to the US Borrowers and Canadian
Borrowers, respectively.


STONE & WEBSTER: Agrees To Sell Assets To Jacobs Engineering
------------------------------------------------------------
Facing a crippling cash flow crisis, Stone & Webster has agreed
to sell its assets and contracts to Jacobs Engineering Group Inc.
and plans to seek protection from creditors under Chapter 11 of
the federal bankruptcy laws.

The 111-year-old construction company signed a letter of intent
with Pasadena, Calif.-based Jacobs to sell ''substantially all''
of its assets for $150 million in cash and stock. Jacobs has
agreed to assume certain liabilities and advance up to $50
million in working capital funds to Stone & Webster, the
companies said late Monday.

Stone & Webster also said it would file a Chapter 11 petition
following a formal sale agreement this month. The company says
that move will make it impossible to determine what, if anything,
shareholders will receive following the sale.

The acquisition gives Jacobs entry into the growing power market
and strengthens their industrial client base, Jacobs president
and chief executive Noel Rossman said in a statement.

Stone & Webster employs 5,000, including about 1,700 in New
England. The company said it expects to continue operating as
usual during the sale. Jacobs said it hasn't determined what
shifts it might make in its work force.

Stone & Webster was founded in 1889 by two Massachusetts
Institute of Technology grads, and was known for building nuclear
power plants around the region, as well the ski jumps used at the
Calgary Olympics.

Its recent crisis was touched off by construction delays at a
gas-fired power plant in Tiverton, R.I., that forced it to take a
$27.5 million charge and begin talks to sell its assets.

Stone & Webster's stock plummeted to near the $3 mark compared to
$23 a year ago and double that two years ago after it announced
last week it was seeking a buyer.


TITANIUM METALS: Announces First Quarter Loss
---------------------------------------------
Titanium Metals Corporation reported a loss before special and
extraordinary items for the first quarter of 2000 of $8.3 million
compared to a loss in the first quarter of 1999 of $3.9 million.
Net loss for the first quarter of 2000 was $15.1 million.

Sales of $104.7 million in the first quarter of 2000 were 22%
lower than the first quarter of last year.  This resulted
principally from a 11% decline in mill product volume and a 6%
decline in average selling prices. Ingot and slab volume
decreased 30% from year ago levels, while average
prices declined 2%. As compared to the fourth quarter of 1999,
mill product volume in the first quarter of 2000 declined 4%,
while average selling prices increased 4%. Ingot and slab volume
in the first quarter of 2000 increased 38% compared to relatively
weak volume in the fourth quarter of 1999, while average selling
prices increased slightly.  TIMET's  backlog at the end of March
2000 was approximately $185 million, compared to $195
million at the end of 1999. Backlog at the end of March 1999 was
$325 million.

TIMET's first quarter results include pretax special items of
$9.2 million, consisting of restructuring charges of $3.7
million, equipment-related impairment charges of $3.4 million and
environmental remediation charges of $3.3 million, offset by a
$1.2 million gain on the sale of its castings joint venture. The
$3.7 million restructuring charge is primarily cash and
is related to the planned reduction of about 250 employees. The
undiscounted environmental remediation charges are substantially
non-cash for 2000 and are expected to be paid over a period of up
to thirty years. The extraordinary item in 2000 of $.9 million
after taxes relates to the  write-off of deferred financing costs
associated with the company's previous U.S. credit facility,
which was repaid and terminated upon completion of the company's
new U.S. and U.K. credit agreements.

J. Landis Martin, Chairman, President and CEO of TIMET said, "In
the first quarter, we began implementing our plan of action to
address current market and operating conditions. The new
management team is in place and focused on, among other things,
reducing costs, improving quality and streamlining our overall
business processes.  As of March 31, 2000, approximately two-
thirds of the planned 250 personnel reductions had been
accomplished, with substantially all of the remainder expected to
be accomplished by the end of the second quarter 2000."

Mr. Martin also said, "Customers and end users continue to
indicate that a substantial titanium inventory overhang exists
throughout the aerospace industry supply chain that, along with
the competitive environment, continues to place downward pressure
on TIMET's sales volumes and prices in selected products.  
Although first quarter results were slightly better than
expected, it is very difficult to predict what will happen for
the balance of 2000.  Early indications are that production
volumes and operating margins, before special charges, will be
somewhat lower in the remaining three quarters of 2000 compared
to the first quarter. We are seeking to stem this apparent
deterioration through a stronger sales effort, selective price
reductions and additional cost reductions.  It is too early to
determine how successful these efforts will be.  While our
goal is still to return to profitability during 2001, our ability
to achieve that goal will be dependent upon our efforts during
the balance of this year."

Mr. Martin continued, "Our balance sheet remains quite strong. We
have approximately $100 million in credit availability in the
U.S. and Europe and currently expect to have substantial credit
availability at yearend. However, given uncertainty concerning
the results for the balance of this year, the company plans to
exercise its right under the terms of its Convertible Preferred
Securities to defer future dividend payments on these securities.  
These securities permit deferral of dividends payments
for up to 20 consecutive quarters, although interest will
continue to accrue at the coupon rate on the principal and unpaid
dividends.  It is our goal to resume dividends on the Convertible
Preferred Securities when the outlook for our results from
operations improves substantially.  We are continuing to look at
additional cost reduction and other opportunities to
improve our operating performance."

As previously reported, in March 2000, the company filed a
lawsuit against The Boeing Company seeking damages estimated in
excess of $600 million in connection with the company's long-term
sales agreement with Boeing. Boeing has not yet filed a formal
response to TIMET's complaint. The company and Boeing have begun
discussions to determine if a settlement of this litigation can
be reached. Discussions are expected to last at least
three weeks. No assurance can be given that a settlement will be
reached. The company does not plan to comment on the Boeing
lawsuit while the discussions with Boeing continue.


TITANIUM METALS: Receives Quarterly Dividend of $1.3 Million
------------------------------------------------------------
Titanium Metals Corporation has received a quarterly dividend
payment of $1.3 million on the 6.625% Series A Senior Convertible
Preferred Stock of Special Metals Corporation held by Titanium
Metals. Special Metals had deferred payment of dividends on the
shares since the first quarter of 1999.

Special Metals has advised Titanium Metals that it does not plan
to pay any arrearages at this time.

Titanium Metals Corporation, headquartered in Denver, Colorado,
is a worldwide integrated producer of titanium metal products.


TOKATSU FOODS CO.: Projects 1.06B Yen net loss for FY99
-------------------------------------------------------
Tokatsu Foods Co. (2909) is forecasting a net loss of 1.06
billion yen for the fiscal year ended March 31, worse than
the 300 million yen profit projected earlier and the year-
earlier profit of 237 million yen.

The net loss is also the first on a parent-only basis since
1991, when the firm went public on the over-the-counter
market.  Loss reserves for loans extended to its frozen
boxed-lunch and pizza delivery subsidiary to help it return
to the black came to 1.3 billion yen. Extraordinary charges
to cover valuation losses for shares held in the unit also
took their toll.

Pretax profit came to 870 million yen, up 36% on the year
and 140 million yen above the previous projection. Sales
grew 4% to 42.31 billion yen as Tokatsu Foods began
supplying about 600 convenience stores with boxed lunches.
(Nikkei  09-May-2000)


TULTEX CORP.: Sale in Final Stages
----------------------------------
The Richmond Times Dispatch reports on May 4, 2000 that  Tultex
Corp., the bankrupt fleece-wear manufacturer that was once a
staple of Martinsville's economy, expects to sell two of its
operations.

The move would allow Tultex to reduce its work force from about
150 to about 15, a company attorney said yesterday.  

Bruce Matson, who is representing Tultex in U.S. Bankruptcy Court
in Danville, said he expects to take the proposed sale of Tultex
distributors T-Shirt City and California Shirt Sales before Judge
William E. Anderson in two weeks.

T-Shirt City distributes in the Northeast, Midwest and in the
Charlotte, N.C., and Cincinnati areas. California Shirt operates
on the West Coast.

TSE Acquisition LLC, an Ohio company created to acquire the
Tultex properties, is expected to buy the holdings for about $ 16
million, Matson said.

Judge Anderson also heard arguments on Martinsville's request for
a lien against Tultex for about $ 592,000 owed in personal
property taxes, a figure that excludes interest, penalties and
other charges.  


WESTERN DIGITAL: Reports Quarter Results
----------------------------------------
Western Digital Corporation reports revenues of $516.6 million
and a net loss before nonrecurring items of $22.6 million for its
fiscal quarter ended March 31, 2000.  The total net loss for the
quarter was $70.7 million and included net restructuring and
special charges of $62.8 million ($34.8 million of which were
included in cost of sales) related primarily to the company's
previously announced plans to exit the enterprise hard drive
market, and also included a $14.7 million gain on the disposition
of certain investment securities.

Matt Massengill, president and chief executive officer, stated:
"Our third quarter performance sustains the ongoing recovery in
our core hard drive business and attests to the stable pricing
environment and better than anticipated demand in what is
typically one of the industry's softer periods.  Our improved
gross margin before nonrecurring items of 9% is very encouraging-
-but by no means satisfactory. We are committed to continue
closing the gap in our financial results by earning back share in
the desktop HDD market through consistent performance, with time-
to-market, industry-leading quality, and an expanded product
offering. We plan to achieve additional efficiencies and cost
reductions of a non-personnel nature through our single focus in
the hard drive business on the personal storage markets,
continued effective management of operating expenses and
effective partnering with our strategic suppliers.  Improvements
in the core drive business will be coupled with continued
investments in our new ventures to help shape the Western Digital
business model for the long term."

Massengill noted that Connex, Western Digital's subsidiary with
solutions targeted at the emerging network attached storage and
storage area network markets, met its plan for initial shipments
of its N3000 networked attached storage solution in the March
quarter. He added that the SageTree subsidiary, focused on data
warehousing software and services, is expected to generate its
first revenue in the fourth fiscal quarter.

"The customer reception of the Connex N3000(TM) in the mid-range
of the NAS market has been very positive. We are finding product
feature set and performance to be the primary buying-decision
factors in this part of the NAS market, so we couldn't be more
pleased with our positioning here. Connex is on target to make a
meaningful revenue contribution in the second half of the
calendar year."

For the first nine months of fiscal year 2000, the company
reported revenues of $1.5 billion and a net loss before
nonrecurring items of $215.5 million. The total net loss for the
fiscal 2000 period was $192.2 million and included net
restructuring and special charges of $158.3 million ($72.5
million of which were included in cost of sales), the
$14.7 million gain on disposition of investment securities and
$166.9 million of extraordinary gains for the redemption of a
portion of the company's convertible debt. For the first nine
months of fiscal year 1999, the company reported revenues of $2.1
billion and a net loss before nonrecurring charges of $253.7
million, or $2.85 per share. The total net loss for the fiscal
1999 period was $391.2 million and included restructuring and
special charges of approximately $137.5 million ($77.0 million of
which were included in cost of sales, $12.0 million of which
were included in research and development expenses, and $7.5
million of which were included in SG&A).

One of the data storage industry's longtime leaders, Western
Digital Corporation indicates it is leveraging its core strengths
to become a leading Internet solutions company, providing
services and products to manage, store and communicate both
digital content and network intelligence. The company remains an
industry-leading designer and manufacturer of hard drives for
desktop computers and home entertainment applications. Through
its Connex subsidiary, Western Digital delivers enterprise-class
storage functionality for the department and mid-sized business
markets, including storage management software, network attached
storage and storage area networks. The company's SageTree
subsidiary designs analytical data warehousing tools to help
manufacturers manage quality and quality-related business
decisions throughout the entire product lifecycle.  Western
Digital was founded in 1970.

                     *********

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
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