TCR_Public/000515.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R

    Monday, May 15, 2000, Vol. 4, No. 95


ACCESS1: Plans To Stay In Business
AMERISERVE: Loses Major Customer Chick-fil-A
BANKERS COMMERCIAL: Placed In Temporary Receivership
BOBBY ALLISON WIRELESS: Annual Meeting Set For June 5
BOBBY ALLISON WIRELESS: Shareholders Report Holdings

BROOKE GROUP: Lorber Reports Holdings
CAMBRIDGE INDUSTRIES: Case Summary and 20 Largest Creditors
CLARIDGE: Announces Approval of Disclosure Statement
DAEWOO MOTOR: GM Steps Up Drive for Daewoo
DAVIS INDUSTRIES: Judge Rejects Bankruptcy Plan

DYNAMATIC CORPORATION: Case Summary and 20 Largest Creditors
FORE RIVER SHIPYARD: McCain Hearings on The Shipyard
ICO GLOBAL: Should Emerge From Bankruptcy on May 15, 2000
INTEGRATED HEALTH: Taps Chapin, Flatteau & Klimpl LLP
IRVINGTON KNOLLS: State Imposes Fine, Considers Revoking License

MARINER: Obtains Extension of Time To Assume/Reject Leases
MEDICAL SPECIALISTS: Case Summary and 20 Largest Creditors
MICROAGE: Bonus For Loyal Employees
MONET GROUP: Case Summary and 18 Largest Unsecured Creditors

MOUNT AIRY: Judge Refuses To Stop Sale
NEWCOR: Sr Subordinated Notes To Become Due and Paybale
PAGING NETWORK: In Default of Debt Agreements
PLANET HOLLYWOOD: Comes To Times Square
PROTECTION ONE: Troubled Security Company Fixed

RELIASTAR FINANCIAL: Employees To Cash In Stock
ROBERDS: Liquidation Sale at Eight Georgia Stores
SIMMONDS CAPITAL: SCL Electronics Files For Bankruptcy
STONE & WEBSTER: In Hot Water As It Loses $250M Pact
SUN HEALTHCARE: First Motion To Extend Exclusivity

THIS END UP: Admonished For Sloppy Chapter 11
THIS END UP: Employees' Health Insurance Key Item
TOWER AIR: Returns Aircraft
VENCOR: Announces First Quarter Results
WASTE MANAGEMENT: Subsidiary Completes Sale of Italian
WASTE MANAGEMENT: Wins Dismissal of A Lawsuit


ACCESS1: Plans To Stay In Business
An attorney for Access1 yesterday said the bankrupt locally based
Internet service provider intends to reorganize and stay in

"The idea is that people will be taken care of," Delmar Joyce
said.  "The whole plan is to save the company."

But Joyce quickly added he will not be handling Access1's
bankruptcy case.  That will be turned over to another attorney,
whom Joyce declined to identify.

Since late March, Access1 -- which claimed to have 30,000
customers -- has frustrated many users with service they describe
as intermittent or nonexistent.  Access1 customers have been
further frustrated by their inability to reach the company by
phone, or to obtain refunds.

Access1 typically required prepayment for a year or more of
service.  Some customers said they paid nearly $500 for
"lifetime" service.

A local bankruptcy attorney suggested yesterday that customers
who believe they're not receiving service may want to file claims
with the bankruptcy court.  Peter Salmon, a local lawyer who is
not connected with this case, said that whether these customers
can recover funds could depend on the nature of their service
agreement with Access1. Filing a claim can protect their
interests in the event refunds are provided through the court, he

Thomas Walker, chief executive officer of the company, first said
technical glitches and an internal error had contributed to a
system crash.  Later, he blamed poor service from
telecommunications providers and said hackers were also
sabotaging Access1's attempts to provide Internet service.

AMERISERVE: Loses Major Customer Chick-fil-A
According to reports circulated by Fort Worth Star-Telegram on
May 6, 2000, AmeriServe Food Distribution, reorganizing under
Chapter 11 bankruptcy, last week said that it has lost another
major customer - Chick-fil-A - effective June 10.

AmeriServe supplied more than 900 Chick-fil-A restaurants,
including more than 125 in Texas.  The lost business amounts to
less than 5 percent of AmeriServe's current annual revenue, the
company said.

The announcement came a month after AmeriServe announced that it
will lose $2.2 billion worth of accounts at 58,000 Burger King

"We are looking for long-term stability, and we have greater
confidence that MBM will serve us better over the long term. MBM
is a good geographic match. It's based in the Southeast, the
region where we have our greatest density of stores," said Tim
Yancey, Chick-fil-A's distribution director.

AmeriServe filed for Chapter 11 protection this year. Analysts
blamed the problems on acquisitions that left the company with
heavy debt.

AmeriServe said it will still supply more than 17,000 fast-food
restaurants, including KFC, Pizza Hut and Taco Bell, all owned by
Tricon Global Restaurants of Louisville, Ky.irm based in
Greenwich, Conn.

BANKERS COMMERCIAL: Placed In Temporary Receivership
The Texas Insurance Department has placed Bankers Commercial Life
Insurance Co. in temporary receivership. The state says the
company is more than $4 million in debt.  Judge Ernest Garcia, of
the 353rd State District Court in Austin, signed the order in
response to a petition filed by the state attorney general's
office on behalf of the state insurance department, which said in
a statement that Bankers did not oppose the order.  Texas
commissioner Jose Montemayor was appointed receiver of the
company under the order, which also freezes the company's bank
accounts and other assets.

Montemayor will appoint a special deputy receiver to handle day-
to-day responsibilities of winding down the company.  Insurance
department spokesman Lee Jones said he couldn't divulge the
specifics of Bankers financial troubles. The department did say
Bankers' liabilities exceed its assets by more than $4 million.

Bankers was placed in confidential supervision on Sept. 7, 1999,
and in confidential conservatorship 20 days later, in an
unsuccessful attempt to rehabilitate the company. This included
negotiations for another company to buy Bankers, the insurance
department said.  Bankers could not be reached for comment.

BOBBY ALLISON WIRELESS: Annual Meeting Set For June 5
Stockholders are being invited to attend the 2000 annual meeting
of shareholders of Bobby Allison Wireless Corporation, which will
be held at 10:00 a.m. EDT on Monday, June 5, 2000, at the
company's newly to be opened corporate headquarters at 1200
Starkey Road, Suite 105, Tampa, Florida.

A proxy statement soliciting proxies is being sent to the holders
of the company's common stock and Series B Preferred Stock, the
only classes of capital stock eligible to vote on matters at the
annual meeting. Holders of Series A Preferred Stock and Series C
Preferred Stock are eligible to attend but are not eligible to
vote on matters before the annual meeting.

At the meeting, three directors will be elected to hold office
until their successors are elected and qualified, two by the
holders of common stock and one by the holders of Series B
Preferred Stock.

BOBBY ALLISON WIRELESS: Shareholders Report Holdings
James S. Holbrook Jr. beneficially owns 49,578 shares of the
common stock of Bobby Allison Wireless Corporation with sole
voting and dispositive power; another 340,019 shares over which
he exercises shared voting and dispositive powers.  The holding
represents 38.08% of the outstanding shares of common stock of
the company.

Sterne, Agee & Leach Group Inc. exercise sole powers over 140,484
such shares and shared powers over another 291,441 shares,
representing 32.6% of the outstanding shares of common stock of
the company.

Sterne, Agee & Leach Inc. have sole voting and dispositive power
over 35,000 shares and shared power over the 291,441 shares.

The Trust Company of Sterne, Agee & Leach,Inc. hold sole power
over 100,000 shares and shared powers over the 291,441 shares.

Holbrook is the President and CEO of Sterne, Agee & Leach Group;
is the Chairman of the Board, President and Chief Executive
Officer of Sterne, Agee & Leach Inc.; and is the Chairman of the
Board of the Trust Company. Sterne, Agee & Leach Group is the
parent of Sterne, Agee & Leach Inc.

BROOKE GROUP: Lorber Reports Holdings
As of May 2, 2000 Mr. Howard M. Lorber was the beneficial owner
of, in the aggregate, 1,304,065 shares of common stock of Brooke
Group Ltd., which constituted approximately 5.65% of the
21,989,782 shares of the company's outstanding common stock (plus
1,093,750 shares acquirable by Mr. Lorber or his assignee within
60 days upon exercise of options). Mr. Lorber's beneficial
ownership includes 1,093,750 options for common stock, which Mr.
Lorber or his assignee has the right to acquire within 60 days.

Mr. Lorber exercises sole voting power and sole dispositive power
over (i) 194,250 shares of common stock held by him, (ii) 175,000
shares of common stock acquirable by him within 60 days upon
exercise of options and (iii) 918,750 shares of common stock
acquirable by Lorber Epsilon 1999 Limited Partnership, a Delaware
limited partnership, as assignee of Mr. Lorber, within 60 days
upon exercise of options. Lorber Epsilon 1999 LLC, a Delaware
limited liability company, is general partner of Lorber Epsilon
1999 Limited Partnership. Mr. Lorber is the sole member and
manager of Lorber Epsilon 1999 LLC.

Mr. Lorber exercises shared voting powers and shared dispositive
power over 16,065 shares of common stock held by Lorber
Charitable Fund. Lorber Charitable Fund is a New York not-for-
profit corporation, of which Mr. Lorber and family members serve
as directors and executive officers.

Mr. Lorber's principal occupation is President and Chief
Operating Officer since November 1994 and director since 1991 of
New Valley Corporation. New Valley, a majority-owned subsidiary
of the company, is principally engaged in the investment banking
and brokerage business, in the real estate development business
in Russia and in investments in Internet-related businesses.

CAMBRIDGE INDUSTRIES: Case Summary and 20 Largest Creditors
Debtor: Cambridge Industries, Inc.
        555 Horace Brown Drive
        Madison Heights, MI 48071        

Type of Business: Automotive and Truck Supplier

Petition Date: May 10, 2000   Chapter 11

Court: District of Delaware

Bankruptcy Case No.: 00-01919

Debtor's Counsel: David M. Fournier
                  Pepper Hamilton, LP
                  1201 Market Street, Suite 1600
                  Wilmington, DE 19801
                  (302) 777-6500

Total Assets: $ 345,443,204
Total Debts:  $ 459,758,684

20 Largest Unsecured Creditors

State Street Bank
and Trust Co.
Corporate Trust
Goodwin Square
225 Asylum St., 23rd Flr
Hartford, CT 06103
Steven Cimalore
860-244-1844               Bonds             $ 100,000,000

Ashland Chemical Co.
5200 Blazer Parkway
Dublin, OH 43017
Roger Adkins               Trade -
614-790-3953               Raw Materials       $ 2,861,136

Mexican Industries, Inc.
1801 Howard Street
Detroit, MI 48216
Susan Deab                 Trade -
313-963-6114               Raw Materials       $ 1,093,173

Active Burgess Mould
& Design
PO Box 441550
Detroit, MI 48244-1550
Bob Bastuba                Trade -
519-737-1341               Tooling             $ 1,069,356

Alpha Owens Coming
1399 Waterways Drive
Suite 200
Ann Arbor, MI 48108
Jim Plaunt                 Trade -
734-995-6779               Raw Materials         $ 879,006

Keykert USA
48941 Liberty Drive
Wixom, MI 48393
Craig Richards             Trade -
248-960-4100               Tooling               $ 804,812

Nova Int'l Machine
and Tool, Ltd.
c/o Beckman Lawson, LLP
800 Standard Federal Plaza
Fort Wayne, IN 46802
Douglas R. Adelsperger     Trade -
219-422-0800               Tooling               $ 796,426

Genesis Mold Inc.
440 Silver Creek Ind Drive
Tecumseh, Ontario NBN 4W2
Ross Ienna                 Trade -
519-727-4801               Tooling               $ 769,185

Defiance Metal Products
21 Seneca Street
Defiance, OH 43512
Dan Stoufer                Trade -
419-754-5332               Components            $ 726,110

160 Hansan Court
Wooddale, Il 60191
Jeff Kolke                 Trade -
248-351-8437               Raw Materials         $ 505,073

Vetrotex Certainteed Corp.
Fiber Glass Reinforcements
3410 Briarfield Blvd.
Suite B
Maurnee, OH 43537
Dean Talip                 Trade -
419-866-3173               Raw Materials         $ 498,494

PPG Industries, Inc.
122 Carrowmoor Ct.
Dublin, OH 43017
John Reddinger             Trade -
614-764-2340               Raw Materials         $ 491,720

Altron Automation
3523 Highland Drive
Hudsonville, MI 49426
Robert Wormmeester         Repair and
616-669-7711               maintenance           $ 471,413

Corver Engineering Co.
9440 Grinneli
Detroit, MI 48213
Tim Gallagher              Repair and
313-571-0110               maintenance           $ 468,995

Cascade Die Casting
9983 Sparta Ave.
Sparta, MI 48089
Phil Torchio               Trade and
616-281-1660               components            $ 441,968

Prime Source Polymers
12003 Toepfer
Warren, MI 48089
Verne Wagoner              Trade -
810-757-5777               Raw materials         $ 374,135

Delta Mold Inc.
9415 Stockport Place
Charlotte, NC 28273
Donald Wisch               Trade -
704-588-6600               Raw materials         $ 352,600

Creusot-Loire Industries
c/o Creusot-Marrel, Inc.
724 W. Lancaster Avenue    Trade -
Wayne, PA 19087            Plant supplies        $ 348,160

OSB Automotive Tooling
44476 Phoenix Drive
Sterling Heights,
MI 48314                   Trade -
Chuck La Fave              Tooling               $ 310,600

Sherwin Williams
388 Robbins Drive
Troy, MI 48083
Robert Ciranna             Trade -
248-588-3500               Raw materials         $ 300,661

CLARIDGE: Announces Approval of Disclosure Statement
On May 9, 2000, The Claridge Hotel and Casino Corporation (the
"Corporation"), its wholly owned subsidiary, The Claridge at Park
Place, Incorporated (the "CPPI") and Atlantic City Boardwalk
Associates, L.P. (the "Partnership"), debtors, received from the
US Bankruptcy Court in Camden, New Jersey, an order approving the
adequacy of their First Amended Disclosure Statement.

The Plan proposes that the Partnership will transfer its assets,
which include, principally, the land, building and furnishings of
the Claridge casino hotel to the reorganized CPPI, which will
continue under the Plan to be a wholly owned subsidiary of the
reorganized Corporation.

The Plan provides for the holders of the Corporation's $85
million First Mortgage Notes to receive on a pro rata basis 100%
of the equity of the reorganized Corporation, outstanding on the
effective date of the Plan, and debt not to exceed $15 million in
the form of new ten year secured Notes carrying an 8% coupon

The Plan provides for unsecured creditors to be paid in six equal
installments over a five-year period beginning on the effective
date of the Plan.  Total payments to unsecured creditors will not
exceed $5.5 million.

The Plan and Disclosure Statement, along with ballots, will be
mailed to creditors entitled to vote on or before May 31, 2000.  
The deadline for return of the ballots will be 5 p.m. (EDT) June
28, 2000.  The confirmation hearing has been scheduled for July
13, 2000.

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. On October 5, 1999,
Atlantic City Boardwalk Associates, L.P. filed a voluntary
petition under Chapter 11 of the U.S. Bankruptcy Code.  The
Claridge Hotel and Casino Corporation is a closely-held public
corporation and is the issuer of $85 million of 11 3/4% First
Mortgage Notes which are publicly traded on the New York Stock
Exchange under the symbol CLAR02.

DAEWOO MOTOR: GM Steps Up Drive for Daewoo
Having failed once to buy Daewoo Motor Corp. in a process
that has taken on nationalistic overtones, General Motors
Corp. is stepping up its efforts to counter rivals who
insist that the failed automaker stay in Korean hands.

General Motors' chairman, Jack Smith, on Wednesday chided
Hyundai Motor Co., part of the biggest South Korean
business conglomerate, for opposing the efforts of GM and
other foreign companies to take over Daewoo.

"They're trying to sell their cars in all the markets of
the world," said Mr. Smith, who was here for the opening of
a showroom for GM luxury cars and for two days of
conversations with senior government officials aimed at
pressing GM's bid. "They've had a chance on a world scale,"
he said, suggesting that GM should be given a similar
opportunity to compete in South Korea by buying Daewoo.

GM failed in its initial bid for Daewoo after Hyundai Motor
executives protested that the sale of the company to a
foreign manufacturer would destroy South Korea's indigenous
motor-vehicle industry, which Hyundai dominates. Hyundai
has maintained that foreign manufacturers in general, and
GM in particular, represent a threat not only to local
manufacturers but also to a network of suppliers and

"If foreign makers take over Daewoo, the domestic car
industry would fall apart," a Hyundai spokesman said. "When
you look at GM's experience in acquiring foreign companies,
that did not help the domestic industry."

Despite memories of a troubled alliance between General
Motors and Daewoo that ended in 1992, GM describe the
company's renewed interest as an integral part of GM's
strategy to capture a greater share of the rapidly growing
Asian market.

"The region's long-term growth potential still exceeds that
of North America and Europe combined," Mr. Smith said.
"Every major player in the global auto industry would like
to be involved in that growth."

He portrayed GM's interest in Daewoo as part of "a chain
reaction of activity" as the automotive industry
consolidates, a process begun by the combining of Daimler-
Benz AG and Chrysler Corp. into DaimlerChrysler AG in 1998.
GM itself has expanded considerably in Asia, acquiring
Japanese companies such as Isuzu, Suzuki and Fuji Heavy
Industries, which manufactures cars under the Subaru name.

But Daewoo would be a bigger addition. The company's plants
- in addition to South Korea, it has operations in Asia and
Eastern Europe - can produce about 2 million cars a year.
The company's aggressive expansion, analysts say, was one
of the key reasons for its downfall under a massive debt
burden. It is also said to be one of the main reasons GM
and Daewoo, in which the American company once owned a 50
percent stake, parted ways in 1992.

"The partners had conflicting views on capacity expansion,
debt leverage, profitability objectives and marketing
issues," Mr. Smith said "Neither company was perfect, of
course. Both made mistakes, but I think we have learned
from our difficulties and developed a global alliance
strategy that is working well for GM and its partners."

Mr. Smith sought to assure South Koreans of his desire to
keep Daewoo intact as a relatively autonomous local
operation rather than turn it into an assembly operation
for GM-designed vehicles, as some critics have said it
intends. He said all Daewoo's factories would be kept open,
an effort to head off union concerns about possible job
cuts after a sale of the company.

Mr. Smith said, however, that he still did not have a clear
idea of the real value of the company, and he called for
government moves to increase transparency in business

The race for Daewoo Motors - DaimlerChrysler, Fiat SpA and
Ford Motor Co., as well as Hyundai, are known to be
interested in the company - has inspired some unusual
tactics as the contenders attempt to show their viability.
Last weekend, Hyundai announced that it was planning to
build a small "world car" in cooperation with
DaimlerChrysler and Mitsubishi Motors Corp. of Japan.
DaimlerChrysler quickly denied the existence of such a

Mr. Smith sought to play down speculation that GM might
enter into a joint bid for Daewoo with Hyundai, a strategy
believed to have been contemplated by both Ford and
DaimlerChrysler.  "We've been looking at it as a separate
entity," he said.

Mr. Smith said, however, that Hyundai would have no problem
joining an alliance with a foreign company if necessary to
survive on foreign markets.

"If it wants a partner, it can pick a partner," he said. "I
don't see them being disadvantaged in this global world."
(The International Herald Tribune  11-May-2000)

DAVIS INDUSTRIES: Judge Rejects Bankruptcy Plan
Davis Industries who filed for bankruptcy protection a year ago
after a number of municipalities sued the Chino manufacturer of
cheap guns, which claims the company and others alike to have the
responsibility for the effects of handgun violence was ordered to
draw up  another bankruptcy plan by Judge Meredith Jury that
would satisfy the court and the numerous cities and counties who
sued the Inland Empire handgun maker.

DYNAMATIC CORPORATION: Case Summary and 20 Largest Creditors
Debtor: Dynamatic Corporation
        3122-14th Avenue
        PO Box 1412
        Kenosha, WI 53141-1412
Type of Business: Manufacturing and sale

Petition Date: May 9, 2000   Chapter 11

Court: District of Delaware

Bankruptcy Case No.: 00-01911

Judge: Mary F. Walrath

Debtor's Counsel: Robert F. Stewart, Jr.
                  Dilworth, Paxson, Kalish & Kauffman
                  307 Spalding Rd
                  Wilmington, DE 19103
                  (302) 577-9800

Total Assets: $ 11,923,106
Total Debts:  $ 11,594,250

20 Largest Unsecured Creditors

Dynamatic Pension Plan for
Salaried Employees
3122 14th Avenue
Kenosha, WI 53141                    $ 1,774,345

Dynamatic Pension Plan for
Hourly Rated Employees
3122 14th Avenue
Kenosha, WI 53141                    $ 1,126,753

Post Retirement
Medical - Salaried
3122 14th Avenue
Kenosha, WI 53141                    $ 1,066,161

Post Retirement
Medical - Hourly Rate
3122 14th Avenue
Kenosha, WI 53141                    $ 1,066,161

TPA, Inc.                              $ 192,000

Badger Electronics                      $ 76,567

IBM                                     $ 65,475

CNA Insurance                           $ 62,268

City of Kenosha                         $ 61,667

Nova Steel Inc.                         $ 59,816

Rockwell Automation/
Reliance Electric                       $ 51,600

Lakeside Steel & Mfg. Co.               $ 49,980

Wisconsin Electric Power                $ 46,008

LSI Consulting Inc.                     $ 37,995

Standard Funding Corporation            $ 36,367

National Building Maintenance           $ 27,218

Claremont Foundry                       $ 24,602

Kenosha Water Utility                   $ 24,393

Marsh Electronics                       $ 18,743

Gordon Flesch Company                   $ 17,988

FORE RIVER SHIPYARD: McCain Hearings on The Shipyard
The Patriot Ledger reports on May 6, 2000 that out of the
gigantic hole known as the Big Dig sprung an unexpected surprise
last week, when Sen. John McCain announced that the Senate
Commerce Committee would cast a critical eye on the Fore River
Shipyard bankruptcy.

McCain had called state officials to Washington to appear before
the committee and explain the cost overrun of $ 2 billion on the
Central Artery/Tunnel project. Then he unexpectedly announced the
shipyard inquiry, which will begin May 16.  

Where all of this will lead is anybody's guess. The Senate has a
legitimate concern when it appears public money has been spent
unwisely, whether the amount is $ 2 billion or the $ 47 million
that the U.S. Maritime Administration paid because it had
underwritten bank loans to Massachusetts Heavy Industries. The
Big Dig will be finished somehow--likely with no further infusion
of federal money--and the result will be a far better traffic
flow in and around Boston than exists now.

The shipyard, at this point, is a huge question mark. McCain's
worst fear--shared by many others--is that the maritime agency
won't be able to recoup any of its losses there. At this point
MHI is in bankruptcy and trying to reorganize to revive
shipbuilding at the yard.

McCain said the inspector general of the federal Department of
Transportation had identified potentially serious mismanagement
problems on the project. The inspector general, who has kept a
close eye on the shipyard, said in March that the project's
finances were in order.

There's no shortage of questions about what went wrong at the
shipyard and McCain is in a position to ask them. The blunt-
spoken senator is known as a pit bull on the subject of waste and
abuse in federally-funded programs.

It's not known yet who will be questioned at the hearings in
addition to representatives of the transportation department. But
it would be a shame to have a public hearing that generates
nothing more than accusations of a boondoggle. Sotirios
Emmanouil, the head of MHI and the man chiefly responsible for
promoting the revival of the shipyard, should be called before
McCain and his committee.

Critics of MHI and its plans have warned from the outset that
there was no evidence of firm orders for ships to be built at
Quincy. Emmanouil, who is managing a shipyard in Greece while
attempting to resuscitate his Fore River plans, has been
relentlessly close-mouthed about discussing what he considers
proprietary business information.

But a Senate committee has much more leverage to extract
information from a reluctant respondent than does the average

ICO GLOBAL: Should Emerge From Bankruptcy on May 15, 2000
Aerospace Daily (The McGraw-Hill Companies, Inc.) reports on May
3, 2000 that ICO Global Communications, a satellite
communications specialist should officially emerge from
bankruptcy this month with $ 1.2 billion in hand to
finish its satellite constellation and ground network.

Voting on the company's reorganization plan was completed April
26, and all indications are that the plan has been approved, said
Joseph Tedino, ICO's communications and investor relations VP.  
Assuming the U.S. Bankruptcy Court in Wilmington, Del., confirms
the vote during a May 3 hearing, the company should emerge May 15
from nine months in Chapter 11.

Funds have come from companies associated with cell phone pioneer
Craig McCaw, including Eagle River Investments and Teledesic.
Also investing, according to Tedino, are Deutsche Telecom, Qatar
Telecom, Credit Suisse First Boston, Turk Telecom, and a Saudi
Investment Group named TSFL.

ICO plans to launch its service at the end of 2002 but has not
set a launch schedule, said Tedino. The company is considering
using the Delta III, Atlas IIAS and Proton rockets in addition to
the Sea Launch vehicle. ICO lost its first satellite in March
when a Sea Launch rocket failed.

INTEGRATED HEALTH: Taps Chapin, Flatteau & Klimpl LLP
Judge Walrath approved the Debtors' application to employ the New
York-based law firm of Parker, Chapin, Flatteau & Klimpl, LLP, as
special counsel in these chapter 11 cases.  Parker Chapin
represented the Debtors for six years prior to the Petition Date,
gaining a substantial knowledge and understanding of the Debtors'
various lines of business and their wide-ranging legal needs.  
While being careful to not duplicate the general bankruptcy work
that will be performed by Kaye Scholer, Parker Chapin will attend
to general litigation, real estate and regulatory matters and
will handle many claims administration matters.  Kay Scholer and
Parker Chapin agree to assist one another on an "as and when
needed" basis so as to serve the needs of the Debtors by
utilitzing the Firms' respective resources without duplication.  

Hourly rates of members of the firm working on this case range
from $475 to $125.

IRVINGTON KNOLLS: State Imposes Fine, Considers Revoking License
The Baltimore Sun reports on May 6, 2000 that state officials,
which have been thwarted in efforts to force the sale of a
troubled Baltimore nursing home, have imposed a $10,000 fine and
are considering revoking the license for the facility after
allegedly finding more violations.

Carol Benner, director of the state Office of Quality Care, said
yesterday that the fine was levied last month against the
Irvington Knolls Care Center after inspectors again found
evidence that some of the home's 171 patients suffered "actual

"We're concerned about the residents," said Benner, noting that
the nursing home at 22 S. Athol Ave. has been cited for
deficiencies numerous times in the past. "Based on the survey
report, we might take the license."

Ben Gershowitz, son of the home's owner, said they are disputing
several of the state's findings and will be presenting evidence
to back up their claim.

In January, the state ordered the owner, Sonya Goodman, to sell
the home by March 1, but just days before that date, Irvington
Knolls filed for protection under federal bankruptcy laws.
Records show the state has not attempted to intervene in the

In the bankruptcy petition, Lawyers for Irvington Knolls listed
assets of $5 million and liabilities of $17.1 million.

Benner said she planned to meet Monday with representatives of
the home to discuss the allegations in the latest inspection --
conducted on April 13 -- and the possibility of revoking the
license. If the license is revoked, the patients will be
transferred to other licensed homes.

Benner said the two most serious problems in the recent
inspection report involved instances of bedsores and a patient
who suffered a leg fracture. The report also lists 13 instances
of medication orders not being followed within a 12-hour period.

Under new federal rules imposed late last year, the infractions,
coupled with Irvington's record, triggered an automatic fine.
Benner said the fines of $5,000 per serious violation were among
the first to be imposed in the state under the new federal rules.

Previously, the state could not impose fines immediately, but
first had to give the facility operators an opportunity to
contest the findings and file plans to eliminate deficiencies.

Benner said Irvington officials told her this week that they
hoped to arrange a sale of the home as soon as next week.

Gershowitz declined to comment when asked about plans to sell the

MARINER: Obtains Extension of Time To Assume/Reject Leases
The Debtors, Mariner Post-Acute Network, Inc., and its affiliated
debtors sought and obtained an extension of their time to assume
or reject nonresidential real property leases until the earlier
of September 18, 2000, and the date of confirmation of a Plan.

Justifying their requested extension, the Debtors tell Judge

(1) The unexpired leases are valuable assets of the estates and
are integral to their operation of comprehensive long-term care
services to the elderly and the infirm, which requires
specifically tailored facilities. If the requested extension is
not granted, any inability to make reasoned decisions on whether
to assume or reject leases within the 60 day period will mean a
forfeit of the right to assume the unexpired leases concerned as
a result of the "deemed rejected" provision of section
365(d)(4) of the Bankruptcy Code.

(2) Because of the nature of business, any inadvertent or forced
closure of a long-term care facility as a result of a premature
"deemed rejection" of leases would adversely affect the health
and welfare of the facility's residents.

(3) The cases are complex and involve a large number of leases.
The Debtors remind the court that they are parties to hundreds of
leases of nonresidential real property and the majority of the
unexpired leases are unique, containing different terms and
market values to each landlord and facility. In some cases, they
say, analysis of the lease is complicated by the fact that
several unexpired leases are with a single landlord and
involve facilities with different financial performance.

(4) As providers of long-term care, the Debtors are subject to
an extensive regulatory framework which will affect the
assumption/rejection decisions.

The Debtors further tells the Court that the requested extension
of the period will have for all practical purposes an
administrative rather than a substantive effect, given that any
lessor may request the court to fix an earlier date by which the
Debtors must assume or reject its lease.

The Debtors also indicate their aim to evaluate the unexpired
leases on an on-going basis expeditiously, despite court approval
of the proposed extension period.

With respect to unexpired leases under which Studer/Morton is the
lessor, Judge Walrath approved an agreement for a shorter
extension, through the earlier of June 16, 2000, and the date of
confirmation of a Plan. (Mariner Bankruptcy News Issue 4;
Bankruptcy Creditors' Services Inc.)

MEDICAL SPECIALISTS: Case Summary and 20 Largest Creditors
Debtor: Medical Specialists, Inc.
        Highland II
        7229 Forest Avenue
        Richmond, VA 23226

Type of Business: Multi-specialty Medical Practice

Petition Date: May 9, 2000   Chapter 11

Court: Eastern District of Virginia

Bankruptcy Case No.: 00-32751

Judge: Robert G. Mayer

Debtor's Counsel: Paula S. Bernan, 34679
                  LeClair Ryan
                  707 East Main Street, 11th Flr
                  Richmond, VA 23219

Total Assets: $ 3,564,914
Total Debts:  $ 2,923,756(Exhibit A)
              $ 3,170,397(Summary of Schedules)

20 Largest Unsecured Creditors

Bon Secours Home Infusion      trade debt     $ 218,644
Florida infusion/Nations Drug  trade debt     $ 202,949
Keiiter Stephens                              $ 103,983
Dr. Peter S. Ro                                $ 70,511
The Network                    trade debt      $ 64,845
Dr. Emerson Farley, Jr.        wage            $ 63,753
Lawrence Zacharias, M.D.                       $ 56,947
Dr. David Riddick                              $ 56,860
Radiology Assoc. of Richmond   trade debt      $ 42,371
Marjorie L. Collings           wage            $ 31,432
VMSO, LLC                      trade debt      $ 26,027
County of Henrico, Virginia                    $ 23,446
Internal Revenue Service                       $ 23,153
Wyeth-Ayerst                   trade debt      $ 23,061
Dr. John Daniel, III                           $ 20,956
Beckman Coulter                trade debt      $ 19,267
Bon Secourts - Virginia        lease           $ 17,855
Medpath                        trade debt      $ 17,573
Betty T. Garrett               wage            $ 15,803
RPAS                           trade debt      $ 15,407

Merrill Lynch Japan Securities Co. posted a pretax loss of
22.4 billion yen for the year ended March 31 despite strong
share trading and increased sales of investment-trust

Operating revenue effectively jumped 330% from a year
earlier to 19.7 billion yen, thanks to the active stock
market and interest in investment trusts, even though the
company had an irregular nine-month term through March
1999. But operating expenses rose 9% to 39.9 billion yen
because of a bigger payroll, the adoption of a merit pay
system and training of new sales staff.

The number of sales personnel stood at 1,100 after the
company took over the branches and some employees of failed
Yamaichi Securities Co. in July 1998. The figure rose to
1,200 at the end of March.  The subsidiary, wholly owned by
Merrill Lynch & Co. of the U.S., posted a net loss of 7.4
billion yen.

It is aiming to post profit in the year ending March 2003,
President Ronald Strauss said. The company intends to begin
online stock trading by the end of this year. Merrill Lynch
Japan Securities is trying to increase client assets held
long-term in custody. The balance of such assets had
increased 210% to 1.37 trillion yen at the end of March,
and the number of the accounts had risen 110% to 82,000.
(Nikkei  08-May-2000)

MICROAGE: Bonus For Loyal Employees
THE ARIZONA REPUBLIC reports on May 11, 2000, that MicroAge Inc.,
hoping to keep employees during its Chapter 11 case, has
proposed a 10 percent bonus for rank-and-file workers and
managers who stay with the company throughout the reorganization.

Higher-ranking employees would get bigger bonuses, as much as 75
percent in the case of the top seven executives.

Under MicroAge's proposal, workers would get bonus checks in
installments.  The first payment would come about six months
after the bonus plan was approved. At that time, employees would
be due to get half the bonus they had accrued. For associates and
managers, the bulk of MicroAge's 4,000 full-time employees, that
means half of 3 percent of their base salary. The other half
would be paid after the company emerged from Chapter 11.

The next payment would come a year after the bonus plan, when
employees were due to get half of 7 percent of their base salary.
The rest would be paid at the end of the case. In all, those who
stuck it out would receive 10 percent of their base salary.

A hearing about the plan, which also lays out severance terms for
workers, is scheduled for May 23.

MONET GROUP: Case Summary and 18 Largest Unsecured Creditors
Debtor: The Monet Group, Inc.
        The Empire State Bldg
        350 Fifth Avenue
        New York, NY 10118

Petition Date: May 11, 2000   Chapter 11

Court: District of Delaware

Bankrutpcy Case No.: 00-01936

Debtor's Counsel: Joanne B. Wills
                  919 Market St., Suite 1000
                  Wilmington, DE 19801
                  (302) 426-1189

Total Assets: $ 50 million above
Total Debts:  $ 100 million above

18 Largest Unsecured Creditors

London Pacific Life
and Annuity Company
3109 Poplar Wood Court,
Suite 108
Raleigh, NC 27604            Senior
Susan Gressel                Subordinated
(919) 981-2712               Debt               $ 18,783,068

C.B. Capital Investors, LP
c/o Chase Capital
380 Madison Avenue,
12th Floor
New York, NY 10017           Junior
Brett Ingersoll              Subordinated
(212) 622-3672               Debt               $ 10,629,683

Chemical Ventures, Inc.
c/o Chase Capital
380 Madison Avenue,
12th Floor
New York, NY 10017           Guaranty of
Brett Ingersoll              Secured Credit
(212) 622-3672               Facility            $ 9,000,000

Hewlett Packard Company
FCG Default & Bankruptcy
20 Perimeter Summit Blvd.
MS 507
Atlanta, GA 30319-1417
Ann E. Martin
(404) 648-8127               Trade Debt          $ 2,854,522

E.H. Ashley & Company, Inc.
One White Squadron Road
PO Box 15067
Riverside, RI 02915
Bea, A/R Manager
(401) 431-0950               Trade Debt            $ 415,769

United Healthcare of
New England                  Health Insurance      $ 200,378

A&H Manufacturing Co.        Trade Debt            $ 177,031

Alliance Consulting Group    MIS Consulting        $ 169,347

TransWorld Marketing Corp.   Trade Debt            $ 160,247

Hallmark/Sweet               Trade Debt            $ 128,319

Unicare Life & Health        Health Insurance      $ 126,596

Ernst & Young, LLP           Professional Svcs      $ 98,850

Gems Resources Enterprise    Trade Debt             $ 97,138

Nippon Express USA, Inc.     Trade Debt             $ 92,000

Fantasia (CN)                Trade Debt             $ 85,292

P. Craft Jewelry             Trade Debt             $ 65,683

Duk Jin Trading Co.          Trade Debt             $ 65,000

Stanfre Industries, Inc.     Trade Debt             $ 63,891

MOUNT AIRY: Judge Refuses To Stop Sale
According to The Associated Press, U.S. Bankruptcy Judge John
Thomas refused to stop a sheriff's sale next week of Mount Airy
Lodge, one of the largest and best-known resorts in the Poconos,
whose last chance not to lose the property at the sale in Monroe
County is to find a buyer who can pay $ 32 million to the
mortgage holder.

A postponement of the sale was requested by the estate of former
majority owner Emil Wagner, the minority shareholders, and the
U.S. trustee's office.  Since the November bankruptcy filing to
refinance or sell the hotel, 1,200-acre resort in Paradise
Township was not accomplished because the allotted time was not

NEWCOR: Sr Subordinated Notes To Become Due and Paybale
Newcor, Inc. has announced that the exchange offer EXX Inc.
intends to commence would cause the company's senior credit
facility and its $125 million 97/8% Senior Subordinated Notes due
2008 to become due and payable upon the consummation of the
proposed offer.

As previously announced, the Board of Directors of Newcor, Inc.
is reviewing the materials filed by EXX Inc. with the Securities
and Exchange Commission relating to EXX's proposed exchange offer
for all the outstanding common shares of Newcor for an
undetermined amount of Class A common stock of EXX and/or cash
with a purported value of $4.00 per share. The proposed exchange
offer had not been commenced as of May 4, 2000.

Materials filed with the SEC by EXX Inc. indicate that the
proposed exchange offer is subject to a number of conditions
including the following condition:

"EXX be satisfied, in its reasonable judgment, that the
indebtedness of Newcor under the $125 million 9-7/8% Senior
Subordinated Notes due 2008 will not become immediately due and
payable upon the consummation of the proposed offer."

A company spokesperson noted that the exchange offer in its
present form would violate the terms of the indenture governing
the company's $125 million 9-7/8% Senior Subordinated Notes due
2008. The proposed structure would result in EXX owning more than
35% of Newcor's voting stock, constituting a "change of control"
under such indenture and triggering a requirement, under Section
4.15 of the indenture, for Newcor to offer to repurchase the
notes for an offer price in cash equal to 101% of the
aggregate principal amount of the notes. A "change of control" as
defined in the indenture would also constitute an event of
default under Newcor's senior credit facility.

Completion of EXX's exchange offer, without the consent of
Newcor's senior creditors and bondholders, would in all
likelihood require EXX to refinance Newcor's existing senior
credit facility and $125 million 97/8% Senior Subordinated Notes.

The materials filed by EXX with the SEC do not address EXX's
ability to refinance Newcor's debt under its bonds or senior
credit facility if EXX decides to waive such condition.

According to EXX's public filings, EXX is a Las Vegas, Nevada-
based holding company engaged in the design production and sale
of "impulse toys," watches, kites, electric motors and cable
pressurization equipment with net sales for the year ended
December 31, 1999 of $21.2 million.

Newcor is a manufacturer of precision machined components and
assemblies for the automotive, medium and heavy duty truck and
agricultural vehicle industries and is a manufacturer of custom
rubber and plastic products primarily for the automotive
industry. Newcor is also a supplier of standard and custom
machines and systems primarily for the automotive and
appliance industries.

PAGING NETWORK: In Default of Debt Agreements
Paging Network, Inc. is a provider of wireless communications
services throughout the United States and in the U.S. Virgin
Islands, Puerto Rico and Canada. PageNet provides services in all
50 states and the District of Columbia, including service in the
100 most populated markets in the United States. PageNet also
owns a minority interest in a wireless communications
company in Brazil.

On November 8, 1999, PageNet announced that it had signed a
definitive agreement to merge with Arch Communications Group,
Inc.  Under the terms of the merger agreement, each share of
PageNet's common stock will be exchanged for 0.1247 share of Arch
common stock and PageNet's 8.875% senior subordinated notes due
2006, its 10% senior subordinated notes due 2008, and its 10.125%
senior subordinated notes due 2007, along with all accrued
interest thereon, will be exchanged in a registered exchange
offer under which the holders of each $1,000 of outstanding
principal of Notes will receive, upon consummation of the merger,
approximately 64 shares of common stock of Arch.

As part of the merger, PageNet intends to distribute up to 80.5%
of its interest in Vast, a wholly-owned subsidiary of PageNet, to
holders of the Notes and PageNet's common stock. Holders of the
Notes will receive up to a 68.9% interest in Vast, while holders
of PageNet's common stock will receive up to an 11.6% interest.
The remaining interest will be held by the combined company
following the merger.

The merger agreement requires 97.5% acceptance by the holders of
the Notes and affirmative votes of a majority of PageNet's and
Arch's stockholders to complete the merger. Consent of the
lenders under PageNet's revolving credit facility is also
required. The merger agreement also provides for PageNet to file
a "pre-packaged" Chapter 11 reorganization plan if the
level of acceptances from the holders of the Notes is below
97.5%, but greater than 66.7% in amount and 50% in number
required under the Bankruptcy Code for the noteholder class to
accept the "pre-packaged" Chapter 11 reorganization plan.

Consummation of the merger is subject to customary regulatory
review, certain third-party consents, including PageNet's
lenders, and the approvals noted above. The company has received
approval from the Department of Justice and the Federal
Communications Commission to proceed with the merger, and
anticipates completing the merger during the third
quarter of 2000.

PageNet reported a net loss for the year ended December 31, 1999
of $299,002 on revenues of 4989,723.  In the prior year its net
loss was $162,007 on revenues of $1,046,027.

PageNet's deteriorating financial results and liquidity have
caused PageNet to be in default of the covenants of all of its
domestic debt agreements. On February 2, 2000, PageNet failed to
make the semi-annual interest payment on its 8.875% senior
subordinated notes due 2006, and its 10.125% senior subordinated
notes due 2007. As of March 2, 2000, the non-payment of interest
constituted a default under the indentures of the 8.875% Notes
and the 10.125% Notes. As of April 17, 2000, PageNet failed to
make the semi-annual interest payment on its 10% senior
subordinated notes due 2008, and does not expect to make
additional cash interest payments on any of its Notes. As a
result of this default, PageNet's bondholders could demand at any
time that PageNet immediately pay $1.2 billion of its bonds in
full. Should this happen, PageNet would immediately file for
protection under Chapter 11 of the United States Bankruptcy Code.

PageNet is prohibited from additional borrowings and has
classified all of its outstanding indebtedness under the Credit
Agreement and the Notes as a current liability as of December 31,
1999. As of May 1, 2000, PageNet had approximately $55 million in
cash. The company believes that this cash, plus the cash expected
to be generated from operations, is sufficient to meet its
obligations, except for the cash interest payments due under the
Notes, into the third quarter of 2000. However, if PageNet's
financial results continue to deteriorate, PageNet may not have
enough cash to meet such obligations through the third quarter of
2000. PageNet is considering alternatives to ensure that it has
sufficient liquidity through the completion of the merger.
However, there can be no assurance that PageNet's efforts to
obtain additional liquidity will be timely or successful or that
the merger will be completed. As a result, PageNet may have to
reduce the level of its operations and/or file for protection
under Chapter 11 to complete the merger and/or restructure its
obligations. PageNet is negotiating a debtor-in-possession loan
facility with its lenders to be made available in the event it
commences a Chapter 11 case.

Filing for bankruptcy would have a material impact on PageNet's
results of operations and financial position.

The company's deteriorating financial condition and lack of
additional liquidity indicate that PageNet may not be able to
continue as a going concern for a reasonable period of time.

PLANET HOLLYWOOD: Comes To Times Square
May 6, 2000 -- (Daily News) -- One of Times Square's major
celebrity-backed theme restaurants, the Official All-Star Cafe,
is shutting down within the next couple of weeks.

The sports establishment, part of a six-restaurant chain backed
by Tiger Woods,

Wayne Gretzky, Ken Griffey Jr. and Andre Agassi, will be replaced
by the resurrected Planet Hollywood.

The movie-themed eatery, which declared bankruptcy in August,
will close its branch on W. 57th St. and move to the Crossroads
of the World in August.

Howard Rubenstein, spokesman for Planet Hollywood owner Robert
Earl, who also owns the Official All-Star Cafe, says Planet
Hollywood has reorganized its finances and will emerge from
bankruptcy, possibly as early as next week.  

Rubenstein says the other five All-Star Cafes will stay open.

Earl intends to use part of the new restaurant space on Broadway
and 45th St. as a glassed-in storefront studio to broadcast live
radio and TV.

Radio deejay Jay Thomas is expected to move his daily Jammin' 105
morning show to the new Planet Hollywood. Thomas' producer, Jane
Youdelman, says it's a done deal but Rubenstein is more cautious.

"Robert loves Jay Thomas," he says, "but Planet Hollywood is
still awaiting final approval of the building plans before
actually signing up Jay's show."

PROTECTION ONE:  Troubled Security Company Fixed
The president of Protection One said Friday that the once-
troubled security company has turned the corner.
Annette Beck, who also serves as the chief operating officer of
the Western Resources subsidiary, said the company increased
earnings, reduced costs and slowed customer defections in the
first quarter of 2000.  

"We have absolutely rounded the bend," Beck said. "I would
characterize Protection One as fixed."
Friday's earnings report showed the company --- the nation's
second-largest provider of residential and commercial monitored
security services --- had cut its customer defection rate to 11.1
percent from 14.7 percent in the fourth quarter of 1999.

Each percentage point drop in the attrition rate saves the
company about $2 million, Beck said.
Protection One, which operates from Topeka and Culver City,
Calif., posted net income of $4 million in the first quarter,
which translates into earnings of 3 cents per share. In the first
quarter of 1999, the company recorded a net loss of $4.8 million.

However, the earnings in the first quarter of 2000 were largely
attributable to the company's aggressive effort to repurchase its
debt in the marketplace, which was trading at a discount. That
effort produced a one-time gain of $31.9 million.

At the end of 1999, Protection One, which is 85 percent owned by
Western, showed $1.1 billion in debt on its balance sheet. By the
end of the just-completed quarter the debt had been reduced to
$703 million.
"That is a huge, huge improvement on our balance sheet," Beck

On an operational basis, the company is still posting loses ---
$17.7 million in the first quarter. Beck said like other growth
companies, Protection One is valued on its cash flow, not its

To stop customers from leaving because of poor service, Beck
added workers at the company's four major call centers across the
country. At the same time, she reduced costs by overhauling the
company's marketing effort.

RELIASTAR FINANCIAL: Employees To Cash In Stock
Employees at ReliaStar Financial Corp. will reap a windfall in
September when the company's sale to ING Group of the Netherlands
becomes final.

As part of the sales agreement announced Monday, ReliaStar's
3,800 employees will get to prematurely exercise all their stock
options. Employees hold options for 8.4 million shares with
collective gross value of about $453 million.  

In 1997, all employees received options for 200 shares priced at
$39 each. Those options were supposed to vest either in 2002 or
when the stock reached $60 a share. But the merger will let
employees cash out early at the $54-a-share buyout price from

There are 350,000 options outstanding from that one-time grant.
They are worth $18.9 million and bring a profit of $5.2 million
at the buyout price.

Some employees quipped that while it's not the same as the
estimated $30 million that the deal is worth to CEO John Turner,
the early option exercise is still a nice bonus.

Before the news of the $6.1 billion ReliaStar-ING deal,
Minnesota's fourth-largest ever, ReliaStar's stock price had
hovered around $30.

Besides the stock options, employees also participate in
ReliaStar's annual profit-sharing plan, which in recent years has
paid out 7 to 12 percent of each employee's salary, depending on
the company's financial performance.

The bulk of this plan is designed to work as a retirement savings

ROBERDS: Liquidation Sale at Eight Georgia Stores
The Atlanta Journal and Constitution reports on May 12, 2000 that
Roberds' liquidation sale at eight Georgia stores is slated to
start next Friday as part of the failed chain's going-out-of-
business plan, but customer orders are still in limbo.

A bankruptcy court in Ohio will decide Monday which liquidation
firm will handle the close-out sale and how long it will last.

Roberds entered Atlanta in 1979 with a store in Norcross and
slowly built up its presence to eight locations in Georgia, a
distribution center and service center. A store in Decatur went
dark in 1997, and another in Buckhead was shuttered earlier this
year, leaving the retailer with sites in Norcross, Marietta,
Athens, Douglasville, Fayetteville, Forest Park, Roswell and

Metro Atlanta was Roberds' biggest market, and the retailer had
planned to add at least three stores here this year. But Roberds
buckled under in the face of competition from Best Buy, Circuit
City and Atlanta-based Havertys, and the expansion of Rooms-to-

Roberds owns some of its stores. The Buckhead store at 2755
Piedmont Road N. E. is already under contract to be sold to an
unidentified developer on June 1, Grigsby said.

SIMMONDS CAPITAL: SCL Electronics Files For Bankruptcy
Simmonds Capital Limited (TSE:SMM) announced that its
wholly owned subsidiary SCL Electronics Ltd. has made a voluntary
assignment pursuant to the Bankruptcy and Insolvency Act. This
decision came following the receipt from SCL Electronics Ltd's
bank lender of a payment demand and a notice of intention to
enforce security.  The estimated book value of the remaining
assets of SCL Electronics Ltd. are $5.7 million with liabilities
of $24.6 million, including $4.9 million owed to the bank as the
largest secured creditor and $16.8 million owed to Simmonds
Capital as the largest unsecured creditor.  SCL Electronics Ltd.
is a Canadian distributor of audio and video products.

Mr. John Simmonds, CEO of Simmonds Capital, stated " Since last
year, we have been working on a divestiture plan for the
operating divisions of SCL Electronics.  The amounts for the
divestiture have been fully provided for in our 1999 financial
statements as losses from discontinued operations. In February,
we received shareholder approval to sell these discontinued
operations in order to focus on our merchant banking activities.  
The contract manufacturing business sale closed in February and
we have recently completed the sale of the A.C. Simmonds & Sons
components division.   Unfortunately, we have been unable to find
a purchaser for the audio/video division of SCL Electronics as a
going concern.  This is the last remnant of our operating
businesses to be sold.  Our goal is to wind up SCL Electronics as
quickly as possible and to put our efforts into building our
investment and merchant banking activities."

Simmonds Capital Limited is a merchant banking company with an
active role in certain strategic investments.  The company's
current investments include three main initiatives: interactive
gaming technology focused on the North American horse racing
market, internet service site focused on home products and home
service, and wireless communications.

STONE & WEBSTER: In Hot Water As It Loses $250M Pact
On May 6, 2000, The Boston Globe reported that the owners of the
Maine Yankee nuclear power plant have canceled a $250 million
cleanup contract with Stone & Webster Inc., which could push the
Boston-based engineering firm closer to bankruptcy.  Maine
Yankee's owners, including Central Maine Power Co., Bangor Hydro,
and National Grid, voted last week to suspend payments to Stone &
Webster. Earlier in the week, a key Stone & Webster subcontractor
ceased work on a power plant project in Tiverton, R.I.

Other projects could also slip as the gravity of Stone &
Webster's financial position begins to sink in with customers
around the world. Last Week, Stone & Webster disclosed that its
problems had forced it to take a $27.5 million charge and begin
talks to sell most of its assets.  

If the talks fail, Stone & Webster may be forced into default
with creditors, it said. The company expects to receive credit
extensions in such an event. Many worry that Stone & Webster
might not be able to continue operating, though.

Last Week, the Massachusetts Water Resources Authority said it
would reduce payments to Stone & Webster if it seeks bankruptcy
protection and shift contracts so that subcontractors are still
paid to work on the MetroWest water-supply tunnel.

Stone & Webster is construction manager for the $680 million
tunnel. It has 30 employees dedicated to the job and has received
$19 million of the $38 million it is due under an eight-year

Maine Yankee, in Wiscasset, was closed in 1997 amid safety
problems and rising costs. Stone & Webster was hired in 1998 to
"decommission" the plant by removing or storing radioactive
material. It employs 480 people at Maine Yankee.

Central Maine's board ended the contract "to avoid the
uncertainty over the possibility of a bankruptcy trustee deciding
how to deal with the contract," said Mark Ishkanian, a spokesman.
Stone & Webster had already received about $60 million under a
contract due to end in 2004.

Spokesman Michael Freitag would not discuss the company's
financial outlook beyond its previous disclosures. But he said
that "while we dispute Maine Yankee's right to terminate our
current arrangement, we're encouraged by its willingness to
explore alternatives that would allow S&W to continue its
involvement in this important project.

"We hope to quickly identify a solution that allows us to
continue our work and ensure that the project is completed safely
and within the time frame originally established."

Maine Yankee spokesman Eric Howes said the vote to suspend the
contract was not unanimous but declined to say which owners don't
support the decision.

SUN HEALTHCARE: First Motion To Extend Exclusivity
The Debtors' chapter 11 cases are large and complex.  In the
initial months following the commencement of these cases, Sun
tells Judge Walrath, the Debtors' efforts have been focused
primarily on stabilizing their operations and dealing with
various critical issues typically faced by a debtor at the
outset of a case.  A reorganization of Sun's magnitude takes
time, and it is simply not possible to propose and file a
comprehensive, coherent, and feasible, much less consensual, plan
of reorganization which the Court could confirm without more

Accordingly, without prejudice to their right to seek further
extensions for cause, the Debtors ask, pursuant to 11 U.S.C. Sec.
1121(d), for an extension of the time within which they may file
a plan of reorganization to and including June 12, 2000, and if a
plan is filed within that time, a concomitant extension of their
exclusive period during which to solicit acceptances of that plan
to and including August 11, 2000.  

In presenting this Motion to Judge Walrath for her consideration,
the Debtors disclose that, in fact, negotiations with
representatives of the largest creditor groups are already
underway.  The Debtors have reached an agreement in principal
with the senior bank lenders and certain holders of the senior
subordinated notes.  The Debtors have actually started drafting
their disclosure statement and plan of reorganization to
implement this agreement in principal.  However, the Debtors
caution, significant work remains in identifying and addressing
the claims of the thousands of other creditors.  

Considering the merits of the Debtors' Motion, Judge Walrath
finds that the Debtors have taken many concrete steps towards a
successful rehabilitation of their business and have established
cause for the requested extensions. (Sun Healthcare Bankruptcy
News Issue 11; Bankruptcy Creditors' Services Inc.)

THIS END UP: Admonished For Sloppy Chapter 11
This End Up, which pioneered crate-style furniture 26 years ago,
has a judge's approval to conduct liquidation sales at its 69
stores. U. S. Bankruptcy Court Judge Peter J. Walsh also
admonished the company Tuesday for conducting a sloppy Chapter 11
reorganization, especially in its handling of employees' medical
benefits before and since the bankruptcy filing. Liquidation
sales could begin immediately and run up to three weeks.
(Daily Press Inc. 11-May-2000)

THIS END UP: Employees' Health Insurance Key Item
The Richmond Times Dispatch reports on May 6, 2000 that employees
at furniture retailer This End Up feel as if they have been
turned upside down.

A key gripe centers on the employee health care insurance program
that reportedly has been topsy-turvy since the Richmond-based
chain filed for bankruptcy protection in mid-February.

Some employees have been denied coverage. Others are being sent
bills for doctor visits or surgeries.  

And now United Healthcare Insurance Co., which administers This
End Up's insurance program, wants to terminate its agreement. A
U.S. Bankruptcy Court judge will consider the motion Monday.

"It has been a very difficult issue for employees," said Bryan
Peery, recently named This End Up's president. "We're very
anxious to have this issue resolved."

If the insurance claims aren't paid, This End Up's employees
could be held liable for the bills.  The chain has about 1,600

Some workers say they have left the chain because of the
insurance problems.  Others say they may have to file for
personal bankruptcy.

"This is just horrible what they have done to us," said one
worker who didn't want to be identified.

This End Up operates a self-funded health care plan, meaning the
company is solely responsible for paying the benefits.  Workers
contribute to the plan.

United Healthcare administers the plan, paying out claims and
getting reimbursed by This End Up.

But the chain stopped putting funds into a special account weeks
before the bankruptcy filing.  The insurer says it is owed more
than $ 188,000 it paid out before the filing.

Since the filing, United Healthcare has received more than 1,500
claims, court records show.

Three weeks ago, This End Up put $ 200,000 into the fund to pay
claims made after the bankruptcy filing.  United Healthcare has
not drawn on those funds.

The insurer says it is difficult to differentiate between claims
made before the filing and after.  That is important because laws
prohibit firms from paying pre-bankruptcy claims during a
bankruptcy case.

TOWER AIR: Returns Aircraft
Tower Air, still in search new investors, suspended all scheduled
flights due to its financial difficulties.  The airline filed for
Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in
Wilmington, Del., in February, but still flew a limited scheduled
service operation.

The airline is also in the process of returning an unspecified
number of Boeing 747 aircraft to its lessors.

VENCOR: Announces First Quarter Results
Vencor, Inc. (OTCBB:VCRI) (the "Company") announced its operating
results for the first quarter ended March 31, 2000.

Revenues for the quarter totaled $715 million compared to $700
million in the year-earlier period. The Company reported a loss
from operations of $16 million or $0.23 per share compared to a
loss of $15 million or $0.21 per share in the first quarter of

The reported loss from operations for both interim periods
included expenses incurred in connection with the Company's
restructuring activities totaling $3 million and $2 million,
respectively. In addition to the operating loss reported in the
first quarter of 1999, the Company also recorded a charge of $9
million or$0.13 per share related to a change in accounting for
start-up costs.

The Company also announced that it has filed a motion with the
United States Bankruptcy Court for the District of Delaware (the
"Court") to extend the Company's exclusive right to file its plan
of reorganization through July 18, 2000. The Company and the
lenders under the debtor-in-possession financing (the "DIP
Financing") have already agreed to permit the Company to seek an
extension to file its plan of reorganization through June 15,
2000. The current exclusive period is scheduled to terminate on
May 16, 2000.

In support of its motion, the Company informed the Court that it
has continued to make progress in its reorganization proceedings.
In addition, the motion notes that the Company has reached an
understanding with certain of its senior bank lenders, certain
holders of the Company's $300 million 9 7/8% Guaranteed Senior
Subordinated Notes due 2005 and the advisors to the official
committee of unsecured creditors regarding the broad terms of a
plan of reorganization. The Company also has continued to engage
in discussions with Ventas, Inc. (NYSE:VTR) to obtain its support
for a consensual plan of reorganization and is simultaneously
pursuing alternatives based upon the possible outcome of those

The Company also informed the Court that it has continued its
conversations with the Department of Justice regarding a
settlement of ongoing investigations and the negotiation of other
agreements with the Company. The motion further notes that the
Company has filed amended schedules of unsecured creditors and
has made progress in reviewing and analyzing pre-petition claims
against the Company.

In spite of this progress, additional time is necessary for the
Company to resolve issues that have arisen in connection with the
reorganization. The hearing on the motion is scheduled for May
31, 2000. The Company has requested an interim order from the
Court to maintain the Company's exclusive right to file a plan of
reorganization until the motion is decided.

Vencor and its subsidiaries filed voluntary petitions for
reorganization under Chapter 11 with the Court on September 13,

Vencor, Inc. is a national provider of long-term healthcare
services primarily operating nursing centers and hospitals.

WASTE MANAGEMENT: Subsidiary Completes Sale of Italian Operations
Waste Management Inc. (NYSE:WMI) announced that its wholly owned
subsidiary has completed its previously announced transaction to
sell its waste services operations in Italy to Emas S.p.A. and
Italcogim S.p.A. for approximately U.S. $70 million, including
cash and assumed debt.

The sale of the business in Italy stems from its strategy to re-
focus the company on its North American solid waste operations.
The company's subsidiaries are in discussions with other parties
regarding the divestiture of its other international businesses,
as well as non-core and certain non-integrated solid waste assets
in North America. The company intends to use the proceeds of
these divestitures primarily to reduce debt and to make selective
tuck-in acquisitions of solid waste businesses in North America.

Waste Management Inc. is its industry's leading provider of
comprehensive waste management services. Based in Houston, the
company serves municipal, commercial, industrial, and residential
customers throughout the United States, and in Canada, Puerto
Rico and Mexico.

WASTE MANAGEMENT: Wins Dismissal of A Lawsuit
As reported in The Times Union on May 6, 2000, chairman Louis D.
Paolino Jr. and other former officers of Mount Laurel, N.J.-based
Eastern Environmental Services Inc. were sued by Waste Management
in federal court in Wilmington last year for allegedly
overstating profits before selling Eastern in 1998.  Paolino and
associates sued in Delaware Chancery Court in February, saying
the buyout agreement covered legal expenses.

Judge Myron Steele dismissed the suit after lawyers agreed that
the company would pay the legal expenses, according to documents
filed in state court.  


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