/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/000612.MBXT R O U B L E D C O M P A N Y R E P O R T E R Monday, June 12, 2000, Vol. 4, No. 114 Headlines ANALYTICAL SURVEYS: Firm Considers To Sell APBNEWS.COM: Seeks Investors ARM FINANCIAL: Files Plan of Liquidation CANADIAN AIRLINES: Loses 22.35% On News Of Intention To Delist CONSECO: TakeoverTarget.com Re-iterates Recommendation CONTIMORTGAGE HOME: S&P Lowers Ratings of Loan Trust CROWN SIMPLIMATIC: Case Summary and 6 Largest Unsecured Creditors FILENE'S BASEMENT: Chief Executive Retires FRUIT OF THE LOOM: Examines Ex-CEO's Charitable Donations GST TELECOM: Says Shareholders May Not Be Paid HARVARD PILGRIM: Former Employees' Vacation KAISER GROUP: Case Summary and 20 Largest Unsecured Creditors KEMPER MILITARY: College Program Finished LACLEDE STEEL: Decreases Manpower MBA POULTRY: Plan To Re-Open Tecumseh Plant MICROBEST: Files For Chapter 11 Bankruptcy Protection NEW WORLD PASTA: Moody's Lowers Ratings NU-KOTE: Reaches Agreement with Lenders QUALITY VENEER: Closes Plywood Plant ROBERDS: Liquidation Violates Protection Laws SAFELITE GLASS: Case Summary and 20 Largest Unsecured Creditors SAFELITE GLASS: Files Chapter 11 Petition SAFETY-KLEEN: Files For Chapter 11 Bankruptcy Protection SAFETY-KLEEN: Internal Investigation of Accounting Practices SAFETY-KLEEN: S&P Cuts Ratings To Default SANDS HOTEL: Unsecured Creditors Favor Icahn SERVICE MERCHANDISE: Motion To Enhance Employee Retention Program SOGO CO.: Seeks forgiveness of 9.2B yen in loans STAGE STORES: Plans to Shut Down 75 to 100 Stores TOSTEM CORP.: Records group net loss of 14.6B yen UNITED COMPANIES: Files Plan and Disclosure Statement WASTE MANAGEMENT: Subsidiary Sells Nuclear Waste Operations BOND PRICING FOR WEEK OF JUNE 5, 2000 ********* ANALYTICAL SURVEYS: Firm Considers To Sell ------------------------------------------ The Indianapolis Star reports on June 3, 2000 that Analytical Surveys Inc., hired the New York investment firm Brean Murray and Co. to explore finding a buyer or merger partner. Analytical Surveys has suffered two class-action lawsuits from unhappy investors and lay-offs and the outsourcing of work overseas with its present accounting troubles. Revenues sliding downward and a decrease in restated earnings makes the analysts of the company more optimistic about the possible sale or merger. APBNEWS.COM: Seeks Investors ---------------------------- APBNews.com, online news company has run out of cash, according to an AP report on June 5, 2000, and sent home all of its staff. Marshal Davidson, CEO of APBNews.com, did not fail to announce the decision made to the company's 140 employees at a staff meeting. A number of employees are still gonna continue working for a few days as the present negotiations with potential investors go on. The company believes that their product is not bad for investors stopping them in coming on board anytime now. ARM FINANCIAL: Files Plan of Liquidation ---------------------------------------- ARM Financial Group, Inc. (ARMGE.OB) ("ARM") announced on June 8, 2000 that it filed a chapter 11 liquidation plan and related disclosure statement with the United States Bankruptcy Court for the District of Delaware. The Plan provides for the liquidation of all of ARM's remaining assets and the distribution of the liquidation proceeds to its creditors and preferred shareholders. The Plan provides for, among other things, ARM's cancellation of all outstanding shares of its common stock and does not provide for any distribution to common shareholders. Both the Disclosure Statement and Plan remain subject to, among other things, Bankruptcy Court approval. ARM is a debtor in possession under provisions of chapter 11 of the U.S. Bankruptcy Code, and has been in the process of winding down its business and selling its assets since filing a voluntary petition for relief under chapter 11 of the U.S. Bankruptcy Code on December 20, 1999. ARM 's Plan does not provide for any distribution to common shareholders because the proceeds from the wind down and liquidation will not be sufficient to enable any such distribution. The Bankruptcy Court has scheduled a hearing to approve the Disclosure Statement for July 5, 2000. CANADIAN AIRLINES: Loses 22.35% On News Of Intention To Delist -------------------------------------------------------------- EquityAlert.com, an online trader-exclusive community, provides free real time news alerts on a wide range of Toronto Stock Exchange (TSE) stocks. Among the active issues on Thursday, June 8th, was Canadian Airlines Corp. (TSE: CA). The Company lost 22.35% after it announced that it has been advised by The Toronto Stock Exchange (TSE) that it is the present intention of the TSE to stop trading and delist the Company's Common Shares and Non-Voting Common Shares if the Court of Queen's Bench of Alberta issues an order approving the Plan of Compromise and Arrangement of the Company and Canadian Airlines International Ltd., under the Companies' Creditors Arrangement Act. CONSECO: TakeoverTarget.com Re-iterates Recommendation ------------------------------------------------------ The following is being issued by Breider, Moore & Co. a privately held, San Francisco based investment banking firm, and sponsor of TakeoverTarget.com. A member of the National Association of Securities Dealers, CRD number 1641433: There is a high probability that the Conseco Finance unit will be sold by Conseco's annual meeting, which is scheduled for later this month. Breider, Moore & Co. believes that the publicly announced Indication of Interest will lead to a Definitive Agreement by the June 23 meeting. The terms of the deal (assumption of inter-company debt + $750MM and the carried interest in the "new company") should help alleviate current liquidity situation. This will allow the company to refocus on their core Insurance business. The subsequent repair and rebuild of their Insurance operation will lead to a share price in the low to mid teens over the next few months. http:/www.TakeoverTarget.com is a free web site for sophisticated individual investors seeking unbiased, fundamental research on current rumor or "story" stocks. CONTIMORTGAGE HOME: S&P Lowers Ratings of Loan Trust ---------------------------------------------------- On June 9, 2000, Standard & Poor's lowered its rating on ContiMortgage Home Equity Loan Trust's home equity loan pass- through certificates series 1997-3 classes B-1F to triple-'C' from single-'B'. Class B-1F is part of the fixed-rate loan group of this series. The downgrade affects approximately US$9.450 million of rated debt. At the same time, Standard & Poor's affirmed its ratings on the 16 other classes of ContiMortgage Home Equity Loan Trust home equity loan pass-through certificates series 1997-3 (see list). The affirmed certificates represent an outstanding principal balance of approximately US$382.703 million. The downgrade of class B-1F reflects the continued declining trend in the levels of excess interest and overcollateralization needed to cover projected losses. Loss protection has been stressed by monthly losses that have averaged US$1.6 million a month for the past 12 months. In each of the past 12 months, losses have exceeded monthly excess interest and eroded overcollateralization. This trend is likely to continue, due to the amount of delinquent and defaulted loans in the pools. The rating of this certificate class will be adjusted downward as the erosion of credit support continues. The affirmations of the triple-'A', double-'A'-plus, single-'A'- minus and double-'B' ratings are due to either increased or adequate credit support percentages, which reflect the shifting interest feature of the senior subordination structure within the transaction, and the protection provided by overcollateralization and excess interest. The overcollateralization targets of both loan groups have been stepped up as each group has exceeded the loss limit for each year since issuance. The step-up targets are currently 2.40% and 2.65% of the cutoff date principal balance for the fixed- and adjustable-rate loan groups, respectively. Based on the current level of losses, a step-down will not occur in either loan group until at least July 2001. In addition, monthly excess interest in one loan group is available to the other loan group for as long as an overcollateralization deficit exists, Standard & Poor's said.-- CreditWire ContiMortgage Home Equity Loan Trust Series 1997-3 OUTSTANDING RATING LOWERED Rating Class To From B-1F CCC B OUTSTANDING RATINGS AFFIRMED Class Rating A-5, A-6, A-7, A-8, A-9, A-10 AAA A-11IO AAAr M-1A AA+ M-1F AA M-2A, M-2F A- B-1A BB CROWN SIMPLIMATIC: Case Summary and 6 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Crown-Simplimatic Incorporated 3701 Old Forest Road Lynchburg, VA 24506 Petition Date: June 9, 2000 Chapter 11 Court: District of Delaware Bankruptcy Case No.: 00-02255 Debtor's Counsel: James H.M. Sprayregen Kirkland & Ellis 200 East Randolph Drive Chicago, IL 60601 Tel:(302) 861-2000 Laura Davis Jones Pachulski, Stang, Ziehl, Young & Jones PC 919 North Market Street, 16th Floor PO Box 8705 Wilmington, DE 19899-8705 Tel:(302) 652-4100 Total Assets: $ 10 million above Total Debts: $ 50 million above 6 Largest Unsecured Creditors Bank of America 40 East 52nd Street 2nd Floor New York, NY 10022 Richard Levenson Bank Loan $ 20,954,000 GE Capital Corp Capital Funding, Inc. 777 Long Ridge Road Building B, 1st Floor Stamford, CT 06927 Charles Pignatelli, SVP Bank Loan $ 20,175,000 Bank of America NT8SA Antwerp Branch Hennjean House Uitbreidingstraat 180 Box 6 2600 Antwerp BELGUIM Frans Meen Bank Loan $ 9,700,000 First Union Bank Wildener Bldg., 4th Flr 1 South Penn Square Philadelphia, PA 19107 Martin Healy Bank Loan $ 9,671,000 Deutsche Financial Services 3225 Cumberland Blvd Suite 700 Atlanta, GA 30332 Jeff Guldner Bank Loan $ 9,671,000 National Bank of Canada 125 West 55th Street, 23rd Floor New York, NY 10019 Eileen McGovern Bank Loan $ 8,060,000 FILENE'S BASEMENT: Chief Executive Retires ------------------------------------------ Samuel J. Gerson, venerable Filene's Basement Chain's chief executive, is leaving the company he headed for 16 years. He will be succeeded by Alan R. Schlesinger, who most recently headed Lamonts Apparel Inc. of Kirkland, Wash. FRUIT OF THE LOOM: Examines Ex-CEO's Charitable Donations ----------------------------------------- According to reports circulated by Dow Jones Business News on June 8, 2000, Fruit of the Loom Inc., the company, which filed for Chapter 11 bankruptcy protection, is seeking bankruptcy court authorization to conduct discovery under Bankruptcy Rule 2004 of 13 charitable organizations that benefited from donations made by its former chairman and chief executive, William Farley. The apparel maker wants to find out whether Farley may have directed the company to make contributions to charitable organizations to satisfy his or his family's personal obligations under pledge agreements. GST TELECOM: Says Shareholders May Not Be Paid ---------------------------------------------- According to reports circulated in the Dow Jones Business News on June 7, 2000, GST Telecommunications Inc., which filed for Chapter 11 bankruptcy protection last month, said current shareholders are unlikely to recover their investment under any reorganization or liquidation, and that the interest of both secured and unsecured creditors may be substantially impaired, should the planned sale to Time Warner Telecom Inc. be completed. GST said it would sell most of its assets to Time Warner Telecom, a Littleton, Colo.-based local phone company, for $450 million. AT&T Corp., a prospective bidder, is trying to block the sale, arguing that it needs more time to evaluate the assets and put together a bid. In addition, Maui-based MBN Communications Inc. offered to buy GST's assets in Hawaii for $76 million cash. The bankruptcy court must approve all asset sales. GST also said that if its assets sale isn't completed or is substantially delayed, the company will either reorganize its operations and seek discharge from bankruptcy, or a complete liquidation will occur. HARVARD PILGRIM: Former Employees' Vacation ------------------------------------------- The Providence Journal-Bulletin reports on June3, 2000 that about 340 former employees of Harvard Pilgrim Health Care of New England will be receiving surprises upon opening their mail. Checks amounting to $ 1.5 million were mailed as payment for unused vacation time. The former workers had accumulated a number of vacations that were not spent during their stay in Rhode Island's failed HMO, Harvard Pilgrim. KAISER GROUP: Case Summary and 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Kaiser Group International Inc. 9300 Lee Highway Fairfax, VA 22031-1207 Type of Business: Holding company. Petition Date: June 9, 2000 Chapter 11 Court: District of Delaware Bankruptcy Case No.: 00-02263 Debtor's Counsel: Normal L. Pernick Saul, Ewing, Remick & Saul LLP 222 Delaware Avenue, Suite 1200 Wilmington, De 19801 Tel:(302) 421-6876 Total Assets: $ 82,426,000 Total Debts: $ 146,850,000 20 Largest Unsecured Creditors Boston Safe Deposit & Trust Co. c/o Mellon Bank, N.A. Tom Lindgren Three Mellon Bank Center Bond Interest Unit, 36th Floor Pittsburgh, PA 15259 Subordinated Notes Tel:(412) 236-0609 w/accrued interest Fax:(412) 236-1139 1/1/00 - 6/9/00 $ 39,107,498 Bear Stearns Securities Corp. Vincent Marzella One Metrotechn Center Noerth 45h Floor Brooklyn, NY 11201-3862 Subordinated Notes Tel:(212) 272-0302 w/accrued interest Fax:(212) 272-0316 1/1/00 - 6/9/00 $ 17,720,188 State Street Bank - Trust Custody Daivd Paldino 225 Franklin Street, M4 Boston, MA 02110 Subordinated Notes Tel:(617) 654-4915 w/accrued interest Fax:(617) 654-4690 1/1/00 - 6/9/00 $ 12,477,516 Mellon Bank, N.A. Tom Lindgren Three Mellon Bank center Bond Interest Unit, 36th Floor Pittsburgh, PA 15259 Subordinated Notes Tel:(412) 236-0609 w/accrued interest Fax:(412) 236-1139 1/1/00 - 6/9/00 $ 11,618,894 State Street Bank - Trust Custody Michael Rufo 1776 Heritage Drive Global Corporation Action Unit JBAB 5 NW North Quincy, MA 02171 Subordinated Notes Tel:(617) 965-2884 w/accrued interest Fax:(617) 537-6608 1/1/00 - 6/9/00 $ 9,833,975 Investors Bank & Trust/M.F. Custody Jo Anne Lowe Clarendon Street 15th Floor Hancock Tower Boston, MA 02116 Subordinated Notes Tel:(617) 330-6562 w/accrued interest Fax:(617) 330-6549 1/1/00 - 6/9/00 $ 8,432,897 Chase Bank of Texas, N.A. Debbie Lorenzo PO Box 2558 Houston, TX 77252-809 Subordinated Notes Tel:(713) 216-4488 w/accrued interest Fax:(713) 216-6931 1/1/00 - 6/9/00 $ 6,181,657 State Street Bank Trust Michael Rufo 1776 Heritage Drive Global Corporate Action Unit JBAB 5NW North Quincy, MA 02171 Subordinated Notes Tel:(617) 985-2884 w/accrued interest Fax:(617) 537-6608 1/1/00 - 6/9/00 $ 4,991,006 Deutsche Bank Securities Inc. Lou Pagnotta 1251 Avenue of the Americas New York, NY 10020 Subordinated Notes Tel:(212) 474-4844 w/accrued interest Fax:(212) 469-4895 1/1/00 - 6/9/00 $ 3,833,135 Kaiser Group International, Inc. Retirement Plan c/o The Vanguard Group 100 Vanguard Blvd. Malvem, PA 19355 Subordinated Notes Tel: 1-800-662-0 ext.31017 w/accrued interest Fax:(610) 503-1017 1/1/00 - 6/9/00 $ 2,240,000 Sigler & Co. Orma Trim 4 New York Plaza, 13th Floor New York, NY 10004 Subordinated Notes Tel:(212) 623-6174 w/accrued interest Fax:(212) 623-4821 1/1/00 - 6/9/00 $ 2,114,833 Full & Co. c/o State Street Bank 1776 Heritage Drive North Quincy, MA 02171 Subordinated Notes Tel:(617) 985-2884 w/accrued interest Fax:(617) 537-6608 1/1/00 - 6/9/00 $ 2,114,833 Shaw Constructors, Inc. Randy Gregory, Associate Counsel 8545 United Plaza Boulevard Baton rouge, LA 70809 Tel:(225) 932-2561 Fax:(225) 932-2650 Settlement Obligation $ 1,746,000 Firstar Bank, N.A. Ferdinand Caldwell 777 E. Wisconsin Avenue Milwaukee, WI 53202 Subordinated Notes Tel:(414) 765-5135 w/accrued interest Fax:(414) 765-5320 1/1/00 - 6/9/00 $ 1,586,125 IFTC/State Street Bank MMichael Rufo 1776 Heritage Drive Global Corp. Act. Unit JAB 5 NW No. Quincy, MA 02171 Subordinated Notes Tel:(617) 985-6453 w/accrued interest Fax:(617) 537-5004 1/1/00 - 6/9/00 $ 1,533,254 Lewco. Securities James Johnson 34 Exchange Place, 4th Flr Jersey City, NJ 07311-3988 Subordinated Notes Tel:(201) 524-8038 w/accrued interest Fax:(201) 524-8032 1/1/00 - 6/9/00 $ 1,460,292 Deltec Asset Mgmt Corp. c/o ADP Proxy Services 51 Mercedes Way Edgewood, NY 11717 Subordinated Notes Tel:(631) 254-7400 w/accrued interest Fax:(631) 254-7618 1/1/00 - 6/9/00 $ 1,251,981 Chase Manhattan Bank Orma Trim 4 New York Plaza, 13th Flr. New York, NY 1004 Subordinated Notes Tel:(212) 623-6174 w/accrued interest Fax:(212) 623-4821 1/1/00 - 6/9/00 $ 1,163,158 John Hancock Funds Lee Crockett 101 Huntington Avenue Subordinated Notes Boston, MA 02199 w/accrued interest Tel:(617) 375-6869 1/1/00 - 6/9/00 $ 1,057,416 Dean Witter Reynolds, Inc. C.J. Manning 5690 West Cypress Street Tampa, FL 33607 Subordinated Notes Tel:(813) 288-3413 w/accrued interest Fax:(813) 289-8168 1/1/00 - 6/9/00 $ 719,043 KEMPER MILITARY: College Program Finished ----------------------------------------- Kemper Military Academy that filed for bankruptcy reorganization under Chapter 11 ended its program for junior college in order to have money freed up for its middle and high school programs. The decision by the 156-year-old academy's board of trustees was not completely a surprise. The school already had come up with the decision to stop its junior college football program, resulting in no new recruits or enrollees for freshmen for this fall. LACLEDE STEEL: Decreases Manpower --------------------------------- According to an article in the St. Louis Post-Dispatch on June 3, bankrupt Laclede Steel Co. mills in Alton has laid off 200 people for the company to save money. After the lay-off that would save the company between $700,000 to $ 1 million a month, the company's employment was left with 500 employees. Laclede Steel filed for bankruptcy on May 15. MBA POULTRY: Plan To Re-Open Tecumseh Plant ------------------------------------------- Officials at MBA Poultry plan to reopen the innovative air- chilled chicken processing plant Aug. 16, company president Mark Haskins said Thursday. Relaunching the plant is good for Tecumseh, the state and an eight-state region where poultry growers and consumers had a part in the Smart Chicken product, Haskins said. An Omaha-based firm managed by former Inacom Corp. executive Bill Fairfield recently bought the assets of the financially strapped poultry producer in U.S. Bankruptcy Court. Bird Watchers LLC purchased the assets for $4.8 million. Bird Watchers' legal counsel Kevin Siebert said the company might not continue to operate under the MBA name, but a decision had not yet been made. Haskins said he will be retained as president and chief executive officer. Haskins said the purchase means a restart of operations in Tecumseh. The Aug. 16 date corresponds with the 70-day poultry growing cycle. "As a result of the sale, the operation now has the access to capital needed to market the "Smart Chicken" product in our core sales areas," Haskins said. The plant, which employed nearly 300 people, abruptly closed in January after equipment problems forced MBA to file for Chapter 11 bankruptcy protection from creditors. MBA promised to reopen, but had been restructuring its financing plan since filing for Chapter 11. Haskins said a survey of 135 former plant employees found 96 percent willing to return to work there. MBA suffered months of dismal financial reports after it started producing its air-cooled "Smart Chicken" products in a refurbished factory in 1998. The company blamed faulty conveyor belts for curtailing production and setting back sales. The "Smart Chicken" production uses an air-chilling process rather than the traditional method of dumping birds into a large tank of ice and water. Researchers felt everything within that bath potentially could get on all the birds and increase the risk of contamination. Bird Watchers offered the only bid of $2.3 million on MBA's equipment and the only combined bid on both the equipment and the plant's real estate. The Small Business Administration was the only other bidder on the real estate, offering $1.5 million. That was the amount it had loaned to MBA, officials said. The SBA is on a list of four secured creditors who can expect to be repaid, in part or in full, with proceeds from the auction. Heading the debt list, as required by law, are MBA's real-estate property taxes. Also on it are delinquent utility bills owed to the city of Tecumseh and loans from the American National Bank and the Money Store, both of Omaha. MICROBEST: Files For Chapter 11 Bankruptcy Protection ---------------------------------- According to reports circulated in the Dow Jones Business News on June 6, 2000, Microbest, a cultivator of microbial cultures for cleaning systems and substances, has filed for Chapter 11 bankruptcy protection in order to protect its shareholders, vendors, employees and customers from two former insiders who made a hostile bid for Microbest. NEW WORLD PASTA: Moody's Lowers Ratings --------------------------------------- Moody's Investors Service lowered the ratings of New World Pasta Company's (New World) $160 million senior subordinated notes, due 2009, to Caa1 from B2, and its $153 million senior secured credit facility, maturing 2005-2006, to B1 from Ba2. The senior implied rating is B2, the senior unsecured issuer rating is B3, and the rating outlook is negative. The rating action and negative rating outlook reflect Moody's expectation that the sales and earnings of the company will be lower than previously anticipated due to significant dry pasta industry competition, and a decline in consumer consumption of dry pasta products in the U.S. (caused primarily by low carbohydrate diets and a strong economy that leads consumers to eat out more). Moody's expects that New World's revenues and earnings will continue to be negatively affected by competitive factors in the intermediate term. The company's sales and earnings for 2000 are expected by Moody's to be below 1999 levels, leverage is anticipated to be higher and interest coverage weaker. The ratings also continue to take into account the company's high financial leverage, its weak balance sheet, product concentration in pasta, and its reliance on one supplier of its primary raw material requirements of durum/semolina (while recognizing the benefits of the relationship with this supplier). However, the ratings recognize that New World has maintained its position as the leading retail branded dry pasta producer in the U.S. (an approximate 26% market share), despite competitive pressures. The ratings also reflect that in 2000 the company hired experienced new management and plans to lower costs, to differentiate products with a consumer focus, and to expand distribution channels in food service, industrial and private label customers. The company may also add products complementary to dry pasta. The B1 rating of the senior secured credit facility reflects that in a distress situation Moody's believes that the collateral, which consists of a first priority security interest in substantially all tangible and intangible assets and certain stock, would cover the outstanding loans. The Caa1 rating of the subordinated notes reflects their contractual subordination to a substantial amount of senior debt. New World recently obtained an amendment to its senior credit facility that waived or revised certain financial covenants through December 2002, and reduced the revolving credit to $20 million from $50 million. The credit facility is currently unused. The company is privately owned by Joseph Littlejohn and Levy (83.4%) and Miller Pasta (10.6%), which acquired the dry pasta business of Hershey Foods Corporation during the first quarter of 1999 in a recapitalization. Hershey retained a 6% interest. For the quarter ended 4/2/00, EBIT/Interest was low at .8 times, EBITDA/Interest was 1.3 times, and EBITDA-Capex/ Interest was 1.2 times. Depreciation and amortization, though not significant in amount, exceeds capital expenditure requirements. For the LTM ended 4/2/00 leverage was high with Debt/ EBITDA (including one- time charges) of 6.2 times and Debt/ LTM Sales of 86%. Tangible assets do not cover total debt; however, the brand names provide supplemental value. New World Pasta Company, headquartered in Harrisburg, Pennsylvania, is a leading manufacturer and distributor of dry pasta products, including such regional brand names as Ronzoni, San Giorgio, American Beauty, and Skinner. NU-KOTE: Reaches Agreement with Lenders --------------------------------------- Nu-kote Holding, Inc. (OTC Bulletin Board: NKOT) announced on June 9, 2000 that it has successfully reached an agreement with its Lenders. Pursuant to this agreement and the fulfillment of its terms, the Lenders' involvement and participation in Nu- kote's Chapter 11 case will end. The agreement calls for Richmont Capital Partners I, LP, a merchant banking partnership headquartered in Dallas, Texas, to acquire the Lenders' interest in Nu-kote. "I am very pleased that an agreement has been reached with our Lenders," says Pat Howard, Nu-kote's CEO. "We are excited that Nu-kote, with the support of Richmont, will have the necessary financial means to reorganize and realize its full potential." "Nu-kote has successfully met its operational and financial objectives throughout the Chapter 11 process," says Ron Baiocchi, Nu-kote's Senior Vice President and General Manager. "Nu-kote is committed to consummating a successful plan of reorganization and continuing its efforts to improve profitability and customer value." With the amicable resolution of the claims of Nu-kote's Lenders now formalized, a new Plan of Reorganization will be filed which provides for the Company to continue operating as a going concern with its existing products and its current management team. As part of the new plan, it is expected that Nu-kote's existing stock will be extinguished and Nu-kote's existing stockholders will receive nothing in respect to their stockholdings. Nu-kote is America's favorite aftermarket brand of ink jet, fax, ribbons, copier and laser printer supplies. With a commitment to quality, value, innovation and superior service, Nu-kote produces more than 3,000 products for use in more than 30,000 types of imaging devices. Nu-kote is "The Brand of Choice for Quality & Value." QUALITY VENEER: Closes Plywood Plant ---------------------------------- Quality Veneer & Lumber Plywood, the county's largest employer, has announced it is closing its plywood plant on June 16, saying that the company could not afford to lose more money while plywood prices were so low. About 200 workers will be laid off. ROBERDS: Liquidation Violates Protection Laws ---------------------------------------------- According to the Dayton Daily News on June 3, attorneys in Ohio have asked Bankruptcy Court Judge Thomas Waldron to change his decision allowing Roberds Inc.'s liquidators to include merchandise not connected with the failed home furnishing retailer. The attorneys added they are violating Ohio's consumer-protection laws by adding outside merchandise in their liquidation sale. SAFELITE GLASS: Case Summary and 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Safelite Glass Corp. 1105 Schrock Road Columbus, OH 43229 Type of Business: Primarily engaged in the business of automotive glass replacement and repair services. In addition, the Debtor provides claims management and processing services to automobile insurance companies through fully integrated claims management and processing arrangements. The Debtor also operates two automotive glass manufacturing facilities, through which the Debtor supplies a substantial amount of its own glass needs, and operates a wholesale automotive glass business. Petition Date: June 9, 2000 Chapter 11 Court: District of Delaware Bankruptcy Case No.: 00-02252 Judge: Mary F. Walrath Debtor's Counsel: Mark D. Collins Richards, Layont & Finger PO Box 551 Wilmington, DE 19899-0551 Tel:(302) 651-7531 Total Assets: $ 559,200,000 Total Debts: $ 591,400,000 20 Largest Unsecured Creditors State Street Bank & Trust Co. as Indenture Trustee Two International Place Boston, MA 02110 $ 155,000,000 PPG Industries, Inc. PO Box 360129M Pittsburgh, PA 15251-6129 $ 3,014,875 E.I. DuPont de Nemours & Co. Raw Materials PO Box 360708M Pittsburgh, PA 15250 $ 1,943,992 Glass Depot/Harmon/Viracon PO Box 74751 Chicago, IL 60694-4751 $ 1,933,933 SIKA Corporation PO Box 413771 Kansas City, MO 64141 $ 1,824,691 Visteon Automotive Systems Glass Division - Carlite PO Box 70386 Chicago, IL 60673 $ 1,685,494 AFG Industries, Inc. 1400 Lincoln St. Kingsport, TN 37662 Eddie Lumpkin $ 1,042,093 Mygrant Glass Company Inc. PO Box 45608 San Francisco, CA 94145 $ 847,423 Creative Extruded Products 1414 Commerce Dr Tipp City, OH 45371 $ 626,685 Libbey-Owens-Ford c/o FNBC-Chicago 7th Floor Mail Room 525 W. Monroe PO Box 70142 Chicago, IL 60671-0142 LOF-Chicago $ 397,102 PSC Trading TN PO Box 51400 Los Angeles, CA 90051-6400 $ 333,071 Conway Integrated Services PO Box 127 Bedford Park, IL 60499-0127 $ 324,725 Sommer and Maca Industries Inc. 5501 West Ogden Ave. Cicero, IL 60804 Attn: Doris $ 253,603 Binswanger Glass #87/ACI Distribution $ 232,495 Autover Corporation $ 219,788 Town of Enfield $ 216,063 Triumph Auto Glass $ 212,392 Auto Glass Specialists, Inc. $ 203,214 Cottondale Wood Products $ 138,075 Waste Management, Inc. $ 123,512 SAFELITE GLASS: Files Chapter 11 Petition ----------------------------------------- Safelite Glass Corp. announced that, as part of a pre-negotiated plan to restructure its debt, it has filed for protection under Chapter 11 of the Federal bankruptcy laws in the U.S. Bankruptcy Court for the District of Delaware. The company has taken the action as part of its efforts to reorganize its capital structure and preserve value for its creditors. Safelite management has submitted a "pre-negotiated" reorganization plan, and gained agreement to the plan from over 75% of their banks and bondholders. The filing is an administrative action to gain 100% approval from the remaining bank and bondholder creditors. "By going to the court with a pre-negotiated plan, we will be able to move more quickly through the legal process. We expect to emerge from the process in September as a stronger company," said John Barlow, Safelite President and CEO. "This is the final step in the process of reorganizing Safelite to preserve its value, while ensuring continued quality service for our customers," Barlow continued. "We are a profitable company with sufficient cash flow to fund our operations, and this filing will help us emerge with a stronger balance sheet by reducing our debt." The company said it has taken all actions required to gain immediate court approval to permit continuation of all Safelite associate compensation and benefits plans; all customer sales, support, warranties, and service activities; all insurance policies; and payment of funds due to suppliers of essential goods and services. As a third-party administrator of a number of insurance glass programs, Safelite has also ensured its ability to pay independent auto glass shops. The company has also negotiated credit facilities to assist in funding operations during the court process. Safelite has determined it is in the best interest of its customers and financial stakeholders to seek Chapter 11 protection as a way to quickly finalize its pre-negotiated debt restructuring plan. The company expects to emerge from protection in September. "Safelite is proud to be the nation's leading choice for quality automotive glass repair and replacement solutions. Our organization's commitment to be the industry leader has created strong long-term client relationships and high customer satisfaction ratings that we can all take pride in and seek to continue and improve upon," continued Barlow. Additionally, the company plans to move forward with previously announced strategic initiatives. Recently, Safelite embarked on several new initiatives that will propel the company's growth through 2000: Mobile Pro allows Safelite to have business presence in smaller markets; Service AutoGlass provides a wholesale distribution channel for windshield products manufactured by the company's two manufacturing plants, and Repair Medics decreases claim severity for Safelite's insurance clients, while building brand recognition through consumer marketing. Additional updates to this story will be filed this afternoon and thereafter, as more information becomes available. Founded in 1947, Safelite Glass Corp. operates two manufacturing facilities, 80 auto glass warehouses, and more than 500 Safelite(R) AutoGlass service centers in 50 states, employing more than 6,000 associates nationwide. SAFETY-KLEEN: Files For Chapter 11 Bankruptcy Protection -------------------------------------------------------- Dow Jones reports on June 9, 2000 that financially-trapped Safety-Kleen Corp. announced it and 73 of its domestic units filed voluntary petitions seeking bankruptcy protection "with the support and cooperation" of senior secured lenders holding claims of more than $1.6 billion against the company. The company's filing for protection will not affect its customers and employees nor will it interrupt the company's normal operations. The company's operations in Mexico and Canada aren't part of the filing. Safety-Kleen announced it is finalizing arrangements for initial debtor-in-possession, or DIP, financing from a syndicate of banks and financial institutions to support operations during the reorganization process. SAFETY-KLEEN: Internal Investigation of Accounting Practices ------------------------------------------------------------ According to a June 8, 2000 AP report, regulators, an environmental group and the leading debt-rating agency in the U.S. are increasing concerns about the financial health of Safety-Kleen Corp. Ailing Safety-Kleen has been conducting an internal investigation of its accounting practices since March when it suspended three of its top officers, who later resigned. The company said its accounting investigation continues and the U.S. Securities and Exchange Commission, which has subpoenaed the company for information, is waiting for the results of that inquiry. The state Department of Health and Environmental Control last week asked the state Supreme Court to force Safety-Kleen to make payments to a state fund designed to make sure there is enough money to cover future cleanup costs at the company's hazardous waste landfill in Pinewood. SAFETY-KLEEN: S&P Cuts Ratings To Default ----------------------------------------- A leading rating agency on Thursday cut its ratings for Safety- Kleen Services Inc., a unit of Safety-Kleen Corp., the embattled No. 1 U.S. industrial waste service company, to "D," or default. Standard & Poor's cut its ratings on the unit's subordinated debt from single-C and on its bank loans from double-C, respectively its lowest and second lowest ratings other than default. The downgrade came after Columbia, S.C.-based Safety-Kleen said a $43 million principal and interest payment due under a April 3, 1998 senior credit facility was missed, as was a $15 million payment due on 9.25 percent senior subordinated notes maturing June 2008. S&P said Safety-Kleen Services' subordinated debt and bank loan obligations were guaranteed by its parent. In mid-May Safety-Kleen said it would not make a $10.4 million payment on its senior notes, saying it was prohibited from making the payment under an agreement with lenders under which it was to defer certain interest payments until May 30. Following that announcement, S&P cut Safety-Kleen's corporate credit and senior unsecured debt ratings to "D." At the same time, S&P cut the corporate credit rating of Burlington, Ontario-based transport company Laidlaw Inc. , which owns 44 percent of Safety-Kleen's shares, to "D." A competing rating agency, Moody's Investors Service, on March 10 cut its rating on Safety-Kleen Services's credit facility to Caa1, a low junk grade, and on its senior subordinated notes to Ca, its second lowest grade. In Thursday afternoon trading, Safety-Kleen shares traded at 11/16, up 1/16. Its 52-week closing high is 19-1/4, set last July 1. Its 52-week closing low is 5/8, reached in several recent trading sessions. SANDS HOTEL: Unsecured Creditors Favor Icahn -------------------------------------------- Unsecured creditors of bankrupt Sands Hotel & Casino holding about $6.7 million have favored billionaire Carl Icahn by voting to endorse his reorganization plan over competing Park Place Entertainment Corp. But Park Place is not ready to admit defeat. U.S. Bankruptcy Judge Judith Wizmur has scheduled a series of confirmation hearings beginning June 20 to decide whether Icahn or Park Place will control the casino. SERVICE MERCHANDISE: Motion To Enhance Employee Retention Program ----------------------------------------------------------------- The final version of the Employee Retention Program provides that: (1) Any severance payment to Tier I, II and III participants will be payable on the later of (a) 30 calendar days following the termination of such participants' employment and (b) 5 business days following Plan confirmation. (2) Cash distributions to Tier I participants under the Annual Incentive Plan will be without offsets for prior cash distributions under the respective employee contracts and will be determined according to the formula: Entitlement x Cash Multiplier = Cash Award Where Entitlement shall mean the amount based on (a) the "Target" and "Stretch" benchmarks established by the Company after consultation with the Creditors' Committee and (b) the applicable percentage payouts; and Cash Multiplier shall mean a percentage multiplier that is equivalent to 25% at "Target" with 1% increase, up to 100%, for each $100,000, or a fraction of incremental "Continuing EBITDAR" performance that is achieved above "Target" for the 2000 fiscal year. (3) The maximum authorized payments for Tier IV and V participants will be $5,000,000, without prejudice to the Debtors' right to request for the authorization of additional payments. (4) Payment to an employee under the Enhanced Retention Program shall be deemed an allowed administrative expense. (Service Merchandise Bankruptcy News Issue 12; Bankruptcy Creditors' Services Inc.) SOGO CO.: Seeks forgiveness of 9.2B yen in loans ------------------------------------------------ In a revised restructuring plan filed Wednesday, the Sogo Co. is asking Industrial Bank of Japan, its main lender, to forgive 9.2 billion yen more in loans than it would have under an earlier proposal. Overall, 73 banks were asked to waive loans totaling 639 billion yen. Under the new plan, the department store group seeks to reduce the waiver burden on banks other than IBJ by an equivalent 9.2 billion yen amount. Debt-for- equity swaps would lessen the actual loan total to be forgiven by 7.1 billion yen. Under the original plan, IBJ was asked to forgive loan claims against Sogo of just over 180 billion yen, representing about 94 percent of its unsecured loans to the group. IBJ agreed to that proposal, and apparently has decided to accept the newly proposed plan as well. IBJ loan waivers would total 189.3 billion yen, or 99 percent of its oustanding unsecured Sogo loans, under the revised plan. Sogo management had intended to conclude loan negotiations by the end of May, but a majority of its creditor banks did not approve the first plan, citing unclear restructuring strategy and excessive loan waiver amounts. Debt-for-equity swaps are offered to 71 of the banks, though not to IBJ or Shinsei Bank (formerly Long-Term Credit Bank of Japan). Each bank covered by the swap plan would receive 2 million shares of Sogo stock. STAGE STORES: Plans to Shut Down 75 to 100 Stores ----------------------------------------- The Associated Press reports on June 7, 2000 that Stage Stores, which has more than 600 stores in 33 states might close 75 to 100 stores to cut costs, improve its financial health and emerge from bankruptcy protection, said interim chief executive Jack Wiesner. TOSTEM CORP.: Records group net loss of 14.6B yen ------------------------------------------------- Aluminum sash-maker Tostem Corp. recorded a consolidated net loss of 14.61 billion Yen for the fiscal year ended March 31. By comparison, the company posted a profit of almost 4.7 billion yen the previous year. Tostem cited special losses totaling 37.4 billion yen from the write-off of a shortfall in retirement and pension pay assets as a primary cause for the loss. Tostem reported a climb in its group sales of 19 percent to 660 billion yen. Notwithstanding indications of a slowdown of late, the company said housing starts for the recent term remained strong, in large part to a government tax incentive for homebuyers. Additionally, inclusion of sales data of home center operator Tostem Viva Corp. in its group results contributed to its sales growth. Operating profits rose 35 percent to 21.4 billion yen, while pretax profits also gained 43 percent to 21 billion yen. UNITED COMPANIES: Files Plan and Disclosure Statement ----------------------------------------------------- United Companies Financial Corporation (OTC: UCFNQ) announced on June 8, 2000 that it and certain of its subsidiaries filed an amended plan of reorganization and a disclosure statement in connection with their chapter 11 cases which are pending in the United States Bankruptcy Court for the District of Delaware in Wilmington. The amended plan of reorganization follows the Company's announcement on May 30, 2000 that it had entered into definitive purchase agreements with EMC Mortgage Corporation and EMC Mortgage Acquisition Corp., subsidiaries of The Bear Stearns Companies, Inc., for the sale of substantially all of its whole loan portfolio and REO properties, assets related to its mortgage servicing operations, and its interest only and residual interests. A hearing in the Bankruptcy Court on the disclosure statement is scheduled for July 6, 2000. United Companies is a specialty finance company that services non-traditional consumer loan products. WASTE MANAGEMENT: Subsidiary Sells Nuclear Waste Operations ----------------------------------------------------------- Waste Management, Inc. (NYSE:WMI) announced that its wholly-owned subsidiary has completed a previously announced transaction to sell its nuclear waste services operations to GTS Duratek, Inc. (NASDAQ:DRTK). The transaction generated proceeds of $55 million at closing and up to an additional $10 million on the satisfaction of certain post-closing conditions. The sale of these operations stems from the Company's strategy to re-focus on its core North American solid waste operations. The Company intends to use the proceeds from this and the divestitures of its international and other non-core operations primarily to reduce debt and 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. BOND PRICING FOR WEEK OF JUNE 5, 2000 ------------------------------------- DLS Capital Partners, Inc., bond pricing for week of June 5, 2000 Following are indicated prices for selected issues: Acme Metal 10 7/8 '07 12 - 15(f) Advantica 11 1/4 '08 66 - 68 Asia Pulp & Paper 11 3/4 '05 66 - 68 Conseco 9 '06 66 - 68 E & S Holdings 10 3/8 '06 35 - 37 Fruit of the Loom 6 1/2 '03 51 - 53(f) Genesis Health 9 3/4 '05 13 - 15(f) Geneva Steel 11 1/8 '01 15 - 17(f) GST Telecom 13 7/8 '05 48 - 52(f) Iridium 14 '05 4 - 5(f) Loewen 7.20 '03 34 - 36(f) Paging Network 10 1/8 '07 38 - 42(f) Pathmark 115/8 '02 22 - 25(f) Revlon 8 5/8 '08 49 - 51 Rite Aid 6.70 '01 82 - 84 Service Merchandise 9 '04 6 - 8(f) Trump Atlantic 11 1/4 '06 72 - 74 TWA 11 3/8 '06 36 - 40 Vencor 9 7/8 '08 12 - 14(f) ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler, Edem Alfeche and Ronald Ladia, Editors. Copyright 2000. All rights reserved. ISSN 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *