TCR_Public/000609.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R

    Friday, June 9, 2000, Vol. 4, No. 113

                   Headlines

ACCESSAIR: Court Approves Loan to Continue Operations
ACCESSAIR:  Reorganization Plan Appears Feasible
AGRIBIOTECH: Tentative Agreement for Sale of Forage Assets
BREED TECHNOLOGIES: Harvard Industries Considers Acquisition
CONSECO:  Extension of Stock Loans

CUDDY INTERNATIONAL: Moody's Downgrades Sr Unsecured Notes To Ca
CV REIT: Shareholders Approve Plan and Merger
EAGLE FOOD CENTERS: Taps Innovative Treasury Systems, Inc.
FACTORY CARD OUTLET: Announces First Quarter Results
FLUSHING HOSPITAL: Hospital's Comeback

GENERAL RENTAL: Taps Cooch and Taylor as General Counsel
GLOBALSTAR: Not Renewing Key Loan From Chase
GOLDEN OCEAN: Bentley Investments Joins Motion For Examiner
HVIDE MARINE: Browne Accuse of Illegal Monthly Payments
INACOM CORP: May File for Bankruptcy

IRIDIUM: Argues For Acceptance of Castle Harlan's Bid
KITTY HAWK: To Rise From Bankruptcy
KRANZCO REALTY TRUST: Shareholders Approve Plan and Merger
LOEWEN: Permission to Investigate Bankers Trust Co. Is Sought
MARINER: condensed Consolidated Balance Sheets as of March 31

MEDIQ INCORPORATED: Moody's Downgrades Ratings
MICROAGE INC.: Nasdaq Delists Stock
SABRATEK: Implementation of Employee Retention Program
SABRATEK: Order Authorizes Sale of CMS Assets
SABRATEK: Order Extends Time To Assume/Reject Leases

SERVICE MERCHANDISE: To Employ Grubb; Real Estate Consultant
SIRENA APPAREL: Securities Class Action Plaintiffs Object
STAGE STORES: Announces New Credit Agreement
STONE & WEBSTER: Files For Bankruptcy Protection
TREESOURCE:  Subsidiary Closes Indefinitely

UNITED ARTISTS: Anschutz's Interest in Entertainment
VISTA EYECARE: Retains McDonald Investments

                   *********

ACCESSAIR: Court Approves Loan to Continue Operations
-----------------------------------------------------
The Los Angeles Times reports on June 2, 2000 that discount air
carrier AccessAir hopes to resume service to Los Angeles this
summer after a federal bankruptcy court approved a $500,000 loan
from Ruan Inc. to keep the carrier operating pending approval of
the reorganization plan.  A court hearing on the plan has been
scheduled for July 5 in Des Moines.


ACCESSAIR:  Reorganization Plan Appears Feasible
------------------------------------------------
A government attorney, withdrew the motion that may have forced
Des Moines-based AccessAir airline to liquidate its
assets and cease operations.  The airline's reorganization plan
filed last month in U.S. Bankruptcy Court in Des Moines
appears feasible, according to Jim Snyder, an assistant U.S.
trustee.  The plan includes the amount of up to $13 million in
financial backing from Des Moines-based Ruan Inc.


AGRIBIOTECH: Tentative Agreement for Sale of Forage Assets
----------------------------------------------------------
AgriBioTech Inc. ("ABT" or the "Company") announced on June 7,
2000 that it has reached an agreement in principle to sell
substantially all of the assets relating to its forage business
unit for an estimated $16 million of cash, subject to adjustment
at closing.

As part of the transaction, the purchaser is expected to assume
the company's obligations under certain amended production
contracts with its growers and other contracts. This sale, along
with the disposition of the other forage related assets retained
by the company, is expected to create a value of approximately
$30 million.

The purchased assets include real property, inventory and
intangibles, including plant varieties and supply agreements. The
purchaser is Research Seeds Inc., a recognized worldwide leader
in the development, production and marketing of proprietary
forage, turf seed and microbial products.

Completion of the transaction is subject to U.S. bankruptcy court
and other governmental approvals, completion of a business and
legal due diligence review by the purchaser, agreement on
definitive documents and the absence of any material adverse
change in the purchased assets.

ABT is a seed company specializing in the forage and turfgrass
sector. The transaction is the latest in a series of liquidating
sales undertaken as part of the company's continuing Chapter 11
bankruptcy proceedings. ABT has been subject to federal
bankruptcy court supervision since January 25, 2000.


BREED TECHNOLOGIES: Harvard Industries Considers Acquisition
------------------------------------------------------------
BREED Technologies Inc. (OTC: BDTTQ) of Lakeland, which is
currently under Chapter 11 bankruptcy court protection, is being
considered for acquisition by Harvard Industries of Lebanon,
N.J., reported the Wall Street Journal.

Breed, which manufactures car safety equipment including airbags,
had a net loss of $ 368.6 million in 1998 and has been seeking a
buyer or partner.

Harvard Industries (Nasdaq: HAVA), which emerged from bankruptcy
itself in 1998, but still had a net loss of $ 90.4 million last
year, designs and manufactures automotive components for North
American car and truck manufacturers.


CONSECO:  Extension of Stock Loans
----------------------------------
According to an article in The Indianapolis Star on June 6, 2000,
insiders from Conseco Inc. may benefit from an extension of their
stock loans.  About 170 executives, directors and other key
insiders used nearly $ 576 million in company-guaranteed loans to
buy Conseco shares that are now amounting to a fifth of that
amount.  Stock loans of $150 million are scheduled to be repaid
and will be due this fall.  The remaining balance of the $ 576
million will be due in August 2001.


CUDDY INTERNATIONAL: Moody's Downgrades Sr Unsecured Notes To Ca
----------------------------------------------------------------
Moody's Investors Service downgraded to Ca from B3 its rating of
the US$75 million 10 _% senior unsecured notes, due 2007, of
Cuddy International Corporation ("Cuddy"). Moody's also
downgraded Cuddy's senior implied rating to Ca from B3 and its
senior unsecured issuer rating to C from Caa1.

The ratings downgrade reflects continuing deterioration in the
operating performance and financial flexibility of Cuddy. The
company has been engaged in a significant capital spending
program over the past two years to expand Canadian processing
operations and to convert U.S. turkey facilities to chicken,
during a period of weak turkey and chicken market conditions.
Cuddy's sales have declined, margins have been pressured, the
company has generated insufficient cash to fund capex and
interest, cash balances have been depleted, and liquidity has
tightened. As a result, the company drew on its secured bank
facility to cover its December 1, 1999, note coupon payment and
failed to make its note coupon payment on June 1, 2000 (which is
subject to a 30 day grace period).

Flock disease issues have exacerbated Cuddy's performance over
the past year, resulting in productivity losses as well as write-
offs of approximately US$1 million before tax through mid-March
2000. The disease issues persist, with potential for further
write-offs and/or productivity impairment. In addition,
management changes during the past year have hampered effective
response to market conditions and internal pressures. The company
has reduced capital spending in response to its limited
liquidity, and in March 2000, announced a restructuring that
encompasses sale of a substantial portion of its U.S. assets and
cost reduction initiatives, which could improve liquidity and
improve operating results, when executed. However, restoration
and maintenance of ample financial flexibility would depend on a
deleveraging event and/or significant improvements in operations,
particularly in the Cuddy Farms segment of the business, which
may be difficult to accomplish because poultry markets remain
weak. Moody's expects that Cuddy may be subject to continuing
margin pressures, which could continue to strain the company's
ability to service debt and fund capex.

Cuddy International Corporation, based in London, Ontario, is a
leading producer and distributor of turkey and chicken hatching
eggs and poults, as well as a processor of chicken and turkey
products.


CV REIT: Shareholders Approve Plan and Merger
---------------------------------------------
The shareholders of Kranzco Realty Trust (NYSE:KRT) and CV Reit
(NYSE:CVI), at special meetings held today, approved the plan of
reorganization and merger of the two neighborhood shopping center
real estate investment trusts.

The shareholders' actions authorize the tax-free combination of
the two businesses into a new entity, Kramont Realty Trust, an
umbrella partnership real estate investment trust (UPREIT).
Kramont will own and operate 84 shopping centers and manage six
additional centers, totaling 12 million square feet of leasable
space in 16 states.

The company will be headquartered in Plymouth Meeting, PA.
Following an announcement that trading will commence, Kramont's
common stock will trade on the New York Stock Exchange under the
symbol: KRT.

Upon closing of the reorganization and merger, Kranzco and CV
Reit common shareholders will receive one common share of Kramont
in exchange for each of their common shares of Kranzco and CV
Reit. Each Kranzco preferred share will convert into one
preferred share of Kramont, with the same rights.

The merger agreement anticipates initial quarterly cash
distributions of 32.5 cents per common share, or $1.30 per share
on an annualized basis.

Louis P. Meshon, Sr., president and chief executive officer of CV
Reit, will assume the same titles and responsibilities at
Kramont. Addressing the special CV Reit shareholder meeting in
New York, he noted: "CV Reit has demonstrated outstanding success
in the management, leasing and upgrading of properties. The
merger now permits those skills to be applied on a much larger
scale, offering exciting opportunities for growth and increased
profitability. The merger provides CV Reit shareholders with
participation in a company with greater geographic and tenant
diversity, a higher distribution rate and substantially increased
liquidity."

Norman M. Kranzdorf, president and chief executive officer of
Kranzco, will be chairman of the board of Kramont. He told
shareholders at the special meeting in Conshohocken, PA: "During
nearly eight years as a public company, Kranzco has achieved
gratifying growth, developed strong relationships with many of
the nation's leading retailers, and applied state-of-the-art
technology to operating disciplines and for the benefit of
tenants. We are confident that Kramont, with greater financial
and human resources, will be able to expand upon these
achievements."

At the special meetings, shareholders also approved the 2000
Incentive Plan of Kramont Realty Trust.

The Kramont board of trustees will consist of seven members, four
of whom were nominated by CV Reit. Each individual has extensive
experience in the real estate industry and with publicly-traded
companies.

In 1997, CV Reit acquired the properties controlled by Meshon,
Sr., through its subsidiary, Montgomery CV Realty L.P., and he
assumed the positions of president, chief executive officer and
as a director of CV Reit.


EAGLE FOOD CENTERS: Taps Innovative Treasury Systems, Inc.
----------------------------------------------------------
The debtor, Eagle Food Centers, Inc. seeks court authority to
employ and retain Innovative Treasury Systems, Inc. as cash
management consultant to the debtor.  

Innovative provides advice, information and services to companies
for the purpose of generating savings through reduced banking
service fees, improved cash management practices, enhanced
collection ability of returned deposit checks, and other
efficiencies relating to such companies' cash management and
treasury functions, including the establishment , maintenance and
continuing operation of an internal financial transaction
processing system designed to provide cost savings with regard to
banking services an treasury management operations. The debtor
estimates that as a relationship with Innovative and the use of
its advice, information and services, the debtor will realize
annual savings in an amount in excess of $350,000.  Innovative is
to be paid based on a percentage of the debtor's savings, ranging
from 20% to 35%, depending on the nature of the debtor's
utilization of Innovative's advice, information and services and
the year that payment is made, over a four-year period.  The
Agreement also provides that upon execution, the debtor will pay
Innovative a $25,000 retainer, from which a certain portion of
the compensation due to Innovative will be deducted over the
first 12 months of the debtor's payment period.


FACTORY CARD OUTLET: Announces First Quarter Results
----------------------------------------------------
Factory Card Outlet Corp. (FCPYQ) announced on June 7, 2000 that
it and the Creditors' Committee appointed in its Chapter 11 case
have entered into a non-binding letter of intent with Saunders,
Karp & Megrue ("SKM"), a Connecticut based investment company,
regarding a potential transaction which would provide the
Company with sufficient funding to enable it to emerge from
Chapter 11.  The letter of intent is subject to, among other
things, the completion of due diligence, the execution of
definitive documentation, and confirmation of a plan
of reorganization that would have to be voted upon by creditors.  
The letter of intent outlines the following general terms of a
transaction and plan of reorganization in which SKM would invest
$19.5 million, for which it would receive a note and
approximately 90% of the common stock of the Company upon its
emergence from Chapter 11. General unsecured creditors, whose
claims are estimated to be approximately $43 million, would
receive a cash distribution that may approximate $5 million, a
note in the approximate amount of $7 million, and approximately
10% of the common stock of the Company upon its emergence from
Chapter 11. Because the proposal would not result in creditors
recovering the full amount of their claims, it does not
contemplate that holders of the Company's outstanding common
stock would receive any distribution and, consequently, the
existing stock would be cancelled.

The letter of intent provides for SKM to receive a break-up fee
and expense reimbursement in the event that the Company decides
to pursue an alternative transaction or course of action and
restricts the Company's ability to solicit alternative proposals.  
The letter of intent is subject to the approval by the United
States Bankruptcy Court for the District of Delaware, where the
Company's Chapter 11 case currently is pending.

The Company also announced that the Bankruptcy Court has granted
the Company's motion to extend the exclusive periods during which
it may file a plan of reorganization and solicit acceptances to
such plan to July 31, 2000 and September 29, 2000, respectively.  
There can be no assurance that the Company will file a plan of
reorganization during the exclusive period or that any such
plan will be confirmed.

The Company also reported a first quarter 2000 loss of $2.7
million, or $ 0.36 per share, compared with a net loss in the
first quarter of 1999 of $16.1 million, or $2.14 per share.  The
2000 first quarter loss before reorganization costs associated
with the Chapter 11 case and extraordinary items was $727
thousand, compared with a loss of $2.2 million a year ago.

Net sales for the first quarter of 2000 were $54.4 million,
compared with $ 52.5 million for the same period a year ago.  
Adjusting for store closings, comparable store sales increased
11.8 percent.  "This increase is attributed to improved vendor
relations resulting in better in-stock positions, new
merchandising initiatives, improved retail disciplines, and most
importantly, the dedicated efforts of our 3200 associates"
commented William E. Freeman, President and Chief Executive
Officer.  Mr. Freeman further said, "We are hopeful that these
events will lead to the Company's successful emergence from
chapter 11 by the Fall of this year."

Factory Card Outlet is a chain of company owned retail stores
offering a vast assortment of party supplies, greeting cards,
gift-wrap and other special occasion merchandise at everyday
value prices.  On March 23, 1999, the Company filed a petition
for reorganization under chapter 11 of title 11 of the United
States Code and is currently operating as a debtor in possession.


FLUSHING HOSPITAL: Hospital's Comeback
--------------------------------------
According to an article in the Daily News(NY) on June 2, 2000,
Flushing Hospital Medical Center is no longer bankrupt according
to Bankruptcy Court Judge Conrad Duberstein.  Two years ago the
institution was covered in more than $80 million in debt, forcing
its hospital caretakers to file for bankruptcy protection under
Chapter 11.  The company signed an order last month confirming
the facility's plan for reorganization.


GENERAL RENTAL: Taps Cooch and Taylor as General Counsel
--------------------------------------------------------
The trustee in this Chapter 7 case applies for an order to employ
Cooch and Taylor as General Counsel for the estate nunc pro tunc
to May 18, 2000.  The Trustee seeks counsel as he has been
contacted by employees of the debtor and by creditors of the
debtor and/or their counsel concerning various issues affecting
the estates of the debtor.  


GLOBALSTAR: Not Renewing Key Loan From Chase
--------------------------------------------
According to an article in TheStreet.com on June 7, 2000,
Globalstar (GSTRF:Nasdaq) isn't seeking to renew a key loan from
Chase (CMB:NYSE) that expires at the end of June, leaving the
cash-strapped satellite-phone company with one fewer source of
financing.

As a result, the company will probably try and secure these much-
needed funds from its core investors, led by Loral Space &
Communications (LOR:NYSE), which is already heavily exposed to
Globalstar. Another possible source is Globalstar's main banker,
Bank of America (BAC:NYSE).  Bank of America led a $500 million
loan to the company last year, But it is unclear as to whether
the banker will become more involved.

According to a person familiar with the situation, Globalstar
hasn't yet approached Chase about getting a new loan to replace
the $250 million credit that expires on June 30.

Spokesmen from Chase and Globalstar both declined to comment on
the loan according to the report.

According to the reportk, bank stock investors have been watching
closely to see whether Bank of America and Chase increase or
decrease exposure to the company.
   
A Globalstar spokesman stresses that his company doesn't need to
raise the $ 250 million as soon as the Chase loan expires at the
end of the month. Chief Executive Schwartz, the spokesman points
out, recently mentioned that Globalstar's investors may be
involved in further financing.

The spokesman wouldn't comment on Loral's ability to stump up
more cash. However, he thinks investors should be encouraged by
the fact that France Telecom (FTE:NYSE ADR) and Alcatel (ALA:NYSE
ADR) both agreed to guarantee a $ 175 million loan to TE.SA.M., a
company they own that sells Globalstar service. "That's a clear
sign that our investors are putting more than words behind us,"
says the spokesman.


GOLDEN OCEAN: Bentley Investments Joins Motion For Examiner
-----------------------------------------------------------
Bentley Investments joins the motion of Griffin Shipping, Inc.
for the appointment of an Examiner.  The original motion seeks
appointment of an examiner to investigate whether the court has
jurisdiction over the debtors, due to what the creditor terms "
debtors' apparent manufacturing of bankruptcy eligibility" and
the extent to which certain "upstream" guarantees issued by GOTL,
CRH and the debtors' non-debtor subsidiaries in favor of the
holders of GOGL's Senior Notes due August 31, 2001 are valid and
enforceable whether any actual or apparent conflicts fo interest
exist to taint the term sheet entered into by the debtors and the
Creditors' Committee and Frontline, the debtors' respective
assets and liabilities, and whether any of the debtors has
transferred property to fiduciaries and/or related entities that
may be recovered as preferential or fraudulent.

Bentley states that its faith in the bidding process has now
deteriorated to the point where it is unprepared to make a
binding proposal to be reviewed by the debtor and the Creditor's
Committee representatives unless there is a finding that the
process is fair.

Bentley further states that its experience with the Creditors'
Committee financial advisor, American Maritime Advisors has been
unpleasant, uninformative, and uncooperative.  Bentley claims
that it cannot rely on the Committee or the debtor to seriously
cooperate or evaluate its offers.


HVIDE MARINE: Browne Accuse of Illegal Monthly Payments
-------------------------------------------------------
According to a report on June 7, 2000 in the Broward Daily
Business Review, Broward union boss Walter Browne, a target of a
two-year federal investigation of labor law violations, received
illegal monthly payments totaling more than $ 100,000 from Hvide
Marine during a five-year period in the 1990s, government
prosecutors said Tuesday.

The allegations came in U.S. District Court in Fort Lauderdale,
where Hvide formally pleaded guilty to a single count of making $
60,000 in illicit payments to Browne in violation of the Taft-
Hartley Act in 1995.  Under a plea agreement, the company will
cooperate with the investigation and will teach employees how
to comply with the act when dealing with labor officials.

In turn, the government will recommend that Hvide, which recently
emerged from Chapter 11 bankruptcy protection, pay a $ 60,000
fine. Without the plea deal, the company could have faced a
maximum penalty of $ 500,000, a sum it can ill-afford, said
Washington, D.C., attorney Jane F. Barrett, who represents
management. She appeared in court with Hvide president Eugene
Sweeney.

The final disposition is up to U.S. District Judge William P.
Dimitrouleas, who set sentencing for Aug. 18.

Although Hvide and Port Everglades businessman William J. Coleman
have admitted making illegal payments to Browne, the union leader
has steadfastly denied any wrongdoing. He has not been charged
with a crime.


INACOM CORP: May File for Bankruptcy
------------------------------------
According to a report in the Omaha World/Herald, Inacom Corp.
reported to the SEC that it has come to an agreement with its
lenders for additional time to find a buyer.  And if the
technology services company cannot come up with a buyer after the
deadline passes, it is likely that the company will file
and seek for bankruptcy protection from creditors under Chapter
11.


IRIDIUM: Argues For Acceptance of Castle Harlan's Bid
-----------------------------------------------------
Attorneys for bankrupt Iridium LLC argued yesterday for the
bankruptcy court to accept merchant bank Castle Harlan's bid to
save the company from crashing billions of dollars' worth of
satellites, according to Reuters. Attorneys claim their $50
million offer was the best available option. "They came in at a
time when no other bids were on the table," said Iridium attorney
William Perlstein at a hearing in U.S. Bankruptcy Court in New
York. "The bid is a fraction of what the system cost, but
substantially higher than the individual asset bids." Under the
proposed plan, Castle Harlan would pay $50 million for the
satellite telephone company and 5 percent in equity interest.
Perlstein and Iridium will present Castle Harlan's final bid to
the court on July 21. Neil Forest, a lawyer for Venture Partners,
which made a competing offer for Iridium, objected to a $2
million break-up fee offered by Castle Harlan, saying it unfairly
raised the price for bidders. Perlstein said Venture Partners
failed to provide proof that it could fund its $50 million bid
beyond a $2 million deposit. Bankruptcy Judge Cornelius
Blackshear said he would waive the break-up fee if Venture
Partners could come up with the $50 million within 10 days. Judge
Blackshear scheduled another hearing for July 31 to rule on bids
for Iridium. (ABI 08-June-00)


KITTY HAWK: To Rise From Bankruptcy
-----------------------------------
Distressed Kitty Hawk told creditors that it may emerge from
bankruptcy before the year ends.  It said it's getting rid of its
non-core operations and to give its focus on freight and charter
operations.  Bob Albergotti, representing Kitty Hawk
said that they're scheduled to file for a recovery plan on July
1.  The company is presently operating under a budget of $40
million that came from cash reserves and short-term credit for
its supplies and fuel.


KRANZCO REALTY TRUST: Shareholders Approve Plan and Merger
----------------------------------------------------------
The shareholders of Kranzco Realty Trust (NYSE:KRT) and CV Reit
(NYSE:CVI), at special meetings held today, approved the plan of
reorganization and merger of the two neighborhood shopping center
real estate investment trusts.

The shareholders' actions authorize the tax-free combination of
the two businesses into a new entity, Kramont Realty Trust, an
umbrella partnership real estate investment trust (UPREIT).
Kramont will own and operate 84 shopping centers and manage six
additional centers, totaling 12 million square feet of leasable
space in 16 states.

The company will be headquartered in Plymouth Meeting, PA.
Following an announcement that trading will commence, Kramont's
common stock will trade on the New York Stock Exchange under the
symbol: KRT.

Upon closing of the reorganization and merger, Kranzco and CV
Reit common shareholders will receive one common share of Kramont
in exchange for each of their common shares of Kranzco and CV
Reit. Each Kranzco preferred share will convert into one
preferred share of Kramont, with the same rights.

The merger agreement anticipates initial quarterly cash
distributions of 32.5 cents per common share, or $1.30 per share
on an annualized basis.

Louis P. Meshon, Sr., president and chief executive officer of CV
Reit, will assume the same titles and responsibilities at
Kramont. Addressing the special CV Reit shareholder meeting in
New York, he noted: "CV Reit has demonstrated outstanding success
in the management, leasing and upgrading of properties. The
merger now permits those skills to be applied on a much larger
scale, offering exciting opportunities for growth and increased
profitability. The merger provides CV Reit shareholders with
participation in a company with greater geographic and tenant
diversity, a higher distribution rate and substantially increased
liquidity."

Norman M. Kranzdorf, president and chief executive officer of
Kranzco, will be chairman of the board of Kramont. He told
shareholders at the special meeting in Conshohocken, PA: "During
nearly eight years as a public company, Kranzco has achieved
gratifying growth, developed strong relationships with many of
the nation's leading retailers, and applied state-of-the-art
technology to operating disciplines and for the benefit of
tenants. We are confident that Kramont, with greater financial
and human resources, will be able to expand upon these
achievements."

At the special meetings, shareholders also approved the 2000
Incentive Plan of Kramont Realty Trust.

The Kramont board of trustees will consist of seven members, four
of whom were nominated by CV Reit. Each individual has extensive
experience in the real estate industry and with publicly-traded
companies.

In 1997, CV Reit acquired the properties controlled by Meshon,
Sr., through its subsidiary, Montgomery CV Realty L.P., and he
assumed the positions of president, chief executive officer and
as a director of CV Reit.


LOEWEN: Permission to Investigate Bankers Trust Co. Is Sought
-----------------------------------------------------------------
According to an article in The Wall Street Journal on June 8,
2000,  Loewen Group International Inc. is seeking formal
authorization from U.S. bankruptcy court to investigate Bankers
Trust Co. in connection with $1.1 billion of prepetition secured
debt that actually might not be secured. In a court hearing,
Loewen requested that Bankers Trust, the U.S. unit of Germany's
Deutsche Bank AG, produce within seven days all documents
relating to procedures for formalizing and registering debt
issued by Loewen after a 1996 collateral trust agreement with the
bank.  Loewen disclosed that three series of Loewen notes, with
principal outstanding totaling $800 million, weren't registered
in a collateral trustee's register and that other notes series
had been improperly registered by Bankers Trust. Loewen Group
International is a U.S. unit of Loewen Group Inc., a funeral-
services concern that in June 1999 filed for bankruptcy court
protection in the U.S. and Canada.


MARINER: condensed Consolidated Balance Sheets as of March 31
-------------------------------------------------------------
POST-ACUTE NETWORK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2000 (dollars in thousands, except share amounts)
(unaudited)

ASSETS
Cash and cash equivalents                      $  128,024
     Receivables, net of allowances of $94,796    324,420
     Notes receivable, net                          3,358     
     Supplies                                      20,607
     Prepaid and other current assets              39,361
                                               ----------
     Total current assets                         515,770

Property and equipment,
net of accumulated depreciation of $350,249       458,598

Goodwill, net                                     238,866  
Restricted investments                             51,409  
Other assets, net                                  21,957
                                                ----------
                                               $1,286,600
        
    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
     Accounts payable                                 81,658  
     Accrued compensation                            139,691    
     Other current liabilities                        83,362     
                                                   ----------
        Total current liabilities                    304,711

Liabilities subject to compromise                    2,360,252     
Long-term insurance reserves                            29,425
Other liabilities                                       50,681  
                                                    ----------
        Total liabilities                            2,745,069

Commitments and contingencies

Stockholders' equity (deficit):    Preferred stock, $.01 par
value;
     5,000,000 shares authorized; no shares issued     --    
     Common stock, $.01 par value;
     500,000,000 shares authorized;
         73,688,379 shares issued                737
     Capital surplus                         980,952
     Accumulated deficit                  (2,433,663)
     Accumulated other comprehensive loss     (6,495)
                                           ----------
Total stockholders' equity (deficit)       (1,458,469)
                                             ----------  
                                             $1,286,600  
                                             ==========


MEDIQ INCORPORATED: Moody's Downgrades Ratings
-----------------------------------
Moody's Investors Service downgraded the ratings of MEDIQ Inc.
("MEDIQ") and its operating subsidiary MEDIQ/PRN Life Support
Services, Inc. ("MEDIQ/PRN"). The ratings affected are as
follows:

MEDIQ:

$141 million senior step up discount debentures, due 2009, from
Ca to C

Senior implied rating, from Caa1 to Ca

Senior unsecured issuer rating, from Ca to C

MEDIQ/PRN:

$190 million 11% senior subordinated notes, due 2008, from Caa3
to C

The rating action follows the company's announcement that
MEDIQ/PRN will not make its scheduled June 1, 2000 interest
payment on its $190 million 11% senior subordinated notes due
2008. Banque Nationale de Paris, the agent for the company's
senior credit facility, has issued a payment blockage notice to
the company as a result of the occurrence of defaults under
certain covenants in the credit agreement. MEDIQ/PRN will be
prohibited from making any payments for up to 179 days after the
trustee's receipt of the notice. MEDIQ is currently seeking an
investment bank to assist the company in evaluating strategic
alternatives.

The Caa1 rating on the senior secured credit facilities has been
withdrawn due to the lack of adequate financial information to
monitor the rating.

MEDIQ, headquartered in Pennsauken, NJ, through its subsidiary
MEDIQ/PRN, operates the largest critical care, life support and
other movable medical equipment rental business in the U.S. The
company also sells a variety of disposable products, accessories
and repair parts primarily for use with its rental equipment.  


MICROAGE INC.: Nasdaq Delists Stock
-----------------------------------
The Arizona Republic reports on June 2, 2000 that stocks of
Microage Inc., the Tempe-based computer distributor operating
under chapter 11 bankruptcy court protection, will no longer be
traded on the Nasdaq National Market due to the fact that the
company no longer meets the market's criteria for listing on the
exchange.


SABRATEK: Implementation of Employee Retention Program
------------------------------------------------------
The US Bankruptcy Court for the District of Delaware entered an
order on May 25, 2000 granting the motion of the debtors,
Sabratek Corporation, et al., authorizing an Employee Retention
Program.


SABRATEK: Order Authorizes Sale of CMS Assets
---------------------------------------------
The US Bankruptcy Court for the District of Delaware entered an
order on May 25, 2000 granting the motion of CMS Healthcare Inc.,
one of the debtors, authorizing the debtor to sell the CMS Assets
and assume and assign the Assumed Executory Contracts.


SABRATEK: Order Extends Time To Assume/Reject Leases
----------------------------------------------------
By order of the US Bankruptcy Court for the District of Delaware
entered on May 25, 2000, the deadline of the debtor, Sabratek
Corporation, et al., set by section 365(d)(4) to assume or reject
non-residential real property leases is extended to August 15,
2000.


SERVICE MERCHANDISE: To Employ Grubb; Real Estate Consultant
-------------------------------------------------------------
In the absence of timely objections by March 30, 2000, the
application was approved in all respects.

However, State Street Bank & Trust Co., as Trustee of the Trusts,
filed a Limited Objection on April 3, 2000, the day before the
hearing when the Court Order was entered and considered final.

State Street claims that the Debtors never provided the Trusts
with any notice of the March 7 Application as required in the
Amended Order pursuant to 11 U.S.C. section 102 and 105(a) and
pursuant to Bankruptcy Rules 2002(m) and 9007. As a result, the
Trusts only came to know of the Application on March 30, 2000.

In its Objection, State Street makes it clear that they do not
object to the retention of the Consultants. Rather, State Street
accuses the Debtors of attempting to boot-strap its retention of
its real estate Consultant with authorization to implement its
strategic Subleasing Program without (i) respecting the 15 day
notice as required under the Trusts' Leases and (ii) absolutely
assigning the sublease rents to the Trusts.

State Street explains that annexed to the Application is the Real
Estate Retention Agreement between the Consultant and the
Debtors.  Pursuant to the Agreement, the Debtors seek to retain
the Consultant with respect to the leasing and subleasing of the
Debtors' real property and real estate leases. Identified in
Exhibit A is a list of the Debtors' real property and leased real
estate interest subject to the Agreement, several of which are in
respect of the Assignment of Leases with the Trusts. Part of the
Agreement says that the Debtors retain the sole discretion to
determine "whether or when to present any lease or sublease to
the Bankruptcy Code for approval."  In doing so, State Street
says, the Debtors attempt to end-run the requirements under the
Leases and the Bankruptcy Code to sublease the properties in
exhibit A of the Application without proper bankruptcy court
authorization.

State Street also observes that the Agreement does not provide
for notice to be accorded the Trusts in the event one of the
Trusts' Leases be subleased or assigned. (Service Merchandise
Bankruptcy News Issue 12; Bankruptcy Creditors' Services Inc.)


SIRENA APPAREL: Securities Class Action Plaintiffs Object
---------------------------------------------------------
The Securities Class Action Plaintiffs ("plaintiffs") object to
the adequacy of the Disclosure Statement with respect to the
Chapter 11 plan for the Sirena Apparel Group, Inc. proposed by
the debtor and the Official Committee of Unsecured Creditors.

The plaintiffs claim that the debtor and Committee propose a
Chapter 11 plan that reserves claims, rights, and causes of
action against the former outside auditor, Ernst & Young LLP,
against past directors and officers, against other unnamed
professionals in connection with the services they provided to
the debtor, and against any of the debtor's insurance carriers.  
According to the plaintiffs, the merits of such claims and the
ability to recover on them must be disclosed, but have not been.  
The plaintiffs argue that the Disclosure Statement does not state
what the nature of the claims against Ernst & Young are, or what
the potential damages might be for such claims.  Material
information with respect to the basis of validity of the Ernst &
Young claim is absent from the Disclosure Statement.  The
plaintiffs assert that their claims are covered by insurance
policies of the debtor, but are being used to pay attorneys' fees
of directors and officers.

The securities class action is not subject to the jurisdiction of
the bankruptcy court, as improperly asserted in the Disclosure
Statement.  The plaintiffs claim that the plan precludes the
assertion of any claims or liability against the debtor, and that
the debtor is trying to achieve an underhanded release of
directors and officers.  The plan and the Disclosure Statement
must provide that the claims by the Securities Class Action   
Plaintiffs against former or present officers and directors, and
insurance policy proceeds are carved out in the plan and not
released.

The plaintiffs also assure the debtors that their cases of action
against non-debtors are not extinguished in the bankruptcy.

Finally, the plaintiffs state that the plan imposes an
involuntary release of creditors' and interest holders'
claims in favor of numerous non-debtor insiders and agents
with no corresponding benefit and without the need for
consideration.  Therefore, they assert that the plan is
unconfirmable.


STAGE STORES: Announces New Credit Agreement
--------------------------------------------
Stage Stores Inc. announced a three year $450 million
DIP credit agreement with Citicorp USA Inc. as agent. The
company also announced that the credit agreement was approved by
the U.S. Bankruptcy Court for the Southern District of Texas in
an interim order dated June 2, 2000.  The interim order approved
borrowings of up to $385 million.

Jack Wiesner, chairman, interim chief executive officer and
president, commented, "This new credit agreement provides the
company with significant liquidity to help ensure we can meet all
of our financial obligations in the ordinary course of business."

Stage Stores Inc. brings nationally recognized brand name
apparel, accessories, cosmetics and footwear for the entire
family to small towns and communities throughout the United
States. The company currently operates more than 600 stores in 33
states, primarily under the Stage, Bealls and Palais Royal
names.


STONE & WEBSTER: Files For Bankruptcy Protection
------------------------------------------------
Berman, DeValerio & Pease LLP a Boston law firm that represents
shareholders in class action lawsuits, issued the following press
release:

Stone & Webster, Inc. ("Stone & Webster" or the "Company") (New
York Stock Exchange: SW), a defendant in a shareholder lawsuit,
filed for bankruptcy on Friday, June 2, 2000. As a result, the
shareholder action will be stayed against Stone & Webster but
will continue against the officers named as defendants. The
shareholder class action was filed by Berman, DeValerio & Pease,
LLP. The case alleges violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and was filed on behalf of
all persons and entities who purchased the common stock of Stone
& Webster during the period of April 27, 1999 through and
including April 28, 2000 (the "Class Period") and who suffered
losses on their investments. Named as defendants are Stone &
Webster, H. Kerner Smith and Thomas Langford. The case involves a
manipulation of financial statements in which, among other acts
of deception, defendants knowingly or recklessly overstated S&W's
results of operations, revenues, expenses, net worth and income
for the fiscal year 1999.

If you purchased Stone & Webster common stock during the Class
Period and suffered a loss on your investment, you may wish to
contact the lawyers at Berman, DeValerio & Pease LLP to discuss
your rights and interests:

Michael. M. Sullivan, Esq. Jeffrey C. Block, Esq. Berman,
DeValerio & Pease LLP One Liberty Square Boston, MA 02109 E-Mail:
bdplaw@bermanesq.com. (800) 516-9926


TREESOURCE:  Subsidiary Closes Indefinitely
-------------------------------------------
TreeSource Inc.'s subsidiary, Burke Lumber Co. has stopped
operating for an indefinite time.  About 61 employees lost their
jobs and were sent home to their families.  It was a combination
of high pricing and the lumber market that pushed the company to
shut its doors.  The lumber yard is still up for sale. Its parent
company filed for bankruptcy protection under Chapter 11
in September of the last year.


UNITED ARTISTS: Anschutz's Interest in Entertainment
----------------------------------------------------
According to an AP report on June 2, 2000,  Philip Anschutz, a
businessman man from Denver, paid $65 million for 21 percent of
the face value of the debt owed by United Artists Theatre Corp.  
Anschutz makes a lot of money in oil, railroads, real estate and
telecommunications, and after paying for a percent of the
Arapahoe County-based United's debt he is broadening his
financial hold in entertainment.



VISTA EYECARE: Retains McDonald Investments
-------------------------------------------
Vista Eyecare, Inc. (OTC Bulletin Board: VSTAQ), announced on
June 7, 2000 that it has retained McDonald Investments to assist
the Company in evaluating strategic alternatives during the
Company's Chapter 11 proceedings.  The retention is subject to
the approval of the Bankruptcy Court.  Vista Eyecare, Inc. is one
of the nation's largest retail optical companies.  The Company's
retail operations offer a full line of optical goods including
spectacles, contact lenses, prescription and non-prescription
sunglasses.  In addition, independent Doctors of Optometry are
available adjacent to most store locations.  The Company filed
for protection under Chapter 11 of the bankruptcy laws on April
5, 2000.  Risk factors concerning the Company's business are set
forth in the Company's 10-K for 1999 and 10-Q for the first
quarter of 2000.


                     *********

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
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