TCR_Public/000613.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R

    Tuesday, June 13, 2000, Vol. 4, No. 115


COMMERCIAL FINANCIAL: Sixth Motion To Extend Exclusivity
CRAGAR INDUSTRIES: Completes Inventory Transaction With PDK, Inc.
CROWN VANTAGE: Dow Chemical Seeks Compensation From Debtor
CROWN VANTAGE: Seeks To Extend Exclusive Periods

DAEWOO MOTOR: Hyundai and 'DaimlerChrysler Possible Purchasers
EAGLE GEOPHYSICAL: First Amended Joint Disclosure Statement
ELDER BEERMAN: Criticizes PPM Plan
FRUIT OF THE LOOM: VF Corp. Wins Approval To Purchase Gitano
GLOBAL OCEAN CARRIERS: Committee Objects to Dismissal

GST TELECOM: Interim Order Authorizing Financing
GST TELECOM: Time Warner Announces Expiration of Letter of Intent
GST TELECOM: Tomen America Objects To Bidding Procedures
KAISER GROUP: ICF Consulting Clarifies Its Independence
KAISER GROUP: To Sell Two Engineering Operating Units For $40 MM

SAFELITE GLASS: Signs Waiver Agreement With Senior Lender
SINGER: Seeks Order Approving Disclosure Statement
STAGE STORES: Despite DIP Financing - Little Hope For Chain
SUN HEALTHCARE: Entry of Bar Date Order
SYSTEM SOFTWARE: Seeks To Reject Certain Unexpired Leases

TELEGEN CORP: Plan of Reorganization
TOBISHIMA CORP.: Posts 22B yen group net loss  
VENCOR: Court Approves Third Extension of Exclusive Periods
WHIRLAWAY FROCKS: Seeks Order Approving Sale of Certain Assets

Meetings, Conferences and Seminars


The Buffalo News reports on June 9, 2000 that Bob and Jay
Gershberg, known to local bagel lovers as the Bagel Brothers,
will soon bake their last bagels under a proposed court
settlement with mega-chain New World Coffee & Bagels.

The Gershbergs, who went from bagel chain founders and owners to
franchisees of the 13 area Manhattan Bagel shops, are expected to
turn over their franchise rights to owner New World in exchange
for a settlement payment of just over $ 1 million.

The settlement plan, which is expected to receive approval from  
Bankruptcy Court Judge Michael Kaplan next week, will not result
in any store closures or layoffs, according to Gershberg. New
York-based New World is expected to find one or more new
franchisees to replace the Gershbergs.

The local bagel battle has its roots in a 1996 decision by the
Gershbergs to merge their then-20-year-old Amherst-based Bagel
Bros. chain with Manhattan Bagel, which was the nation's No. 2
bagel chain at that time. The deal was valued at $ 6 million

But the fast-growing Manhattan Bagel ran into severe fiscal
troubles the following year, forcing it to file for Chapter 11
protection as its balance sheets filled with red ink and stock
prices plummeted from a high of $ 29 a share to less than a

As the court battle waged on, Manhattan Bagel was acquired by
competitor New World, which has been growing by leaps and bounds
through buyouts of smaller and weaker bagel chains.

COMMERCIAL FINANCIAL: Sixth Motion To Extend Exclusivity
Commercial Financial Services, Inc. and CF/SPC NGU, Inc. request
that the court enter an order extending for 60 days the periods
within which each of the debtors has the exclusive right to file
a plan of orderly liquidation and solicit acceptances of such
plan.  Both the Official Committee of Asset-Backed
Securityholders and the Official Committee of Unsecured Creditors
support this motion and the extension s requested.

The debtors states that the need for additional time is not a
result of delay or inattention by the debtors to the business at
hand.  The debtors have endeavored to administer their respective
estates in a timely and thoughtful manner with the best interests
of all creditors and other parties in mind.  The additional time
is needed because the parties will not complete plan settlement
discussions by June 30, 2000.

Because any plan confirmed in these cases will be a plan of
orderly liquidation, the debtors will not receive an advantage by
retaining the exclusive right to file and solicit acceptances of
a plan.  The debtors are simply acting as fiduciaries of their
respective estates in order to promote an orderly plan
negotiation and confirmation process.

The debtor requests that the court enter an order extending the
debtors' exclusive periods for filing a Chapter 11 plan until and
including August 31, 2000; and extending the debtors' exclusive
periods to solicit acceptances of a Chapter 11 plan until and
including October 31, 2000.

CRAGAR INDUSTRIES: Completes Inventory Transaction With PDK, Inc.
CRAGAR Industries, Inc. (OTC Bulletin Board: CRGR) reports that
it has completed a transaction with PDK, Inc. of Merrillville,
Indiana whereby PDK will acquire almost all of CRAGAR's remaining
inventory of custom wheels and wheel accessories.  Under the
terms of the Agreement, PDK Inc. will purchase those products
that had not been previously acquired by Weld Racing, Inc. and
Carlisle Tire & Wheel Company.  Further, PDK, Inc. will serve as
a clearinghouse for all CRAGAR brand one-piece cast aluminum
wheels and certain other CRAGAR products. The other terms of the
transaction were not disclosed.

Michael L. Hartzmark, CRAGAR's CEO, stated, "PDK, Inc. is a
leading warehouse/distributor of custom wheels and wheel
accessories.  Being located in the middle of the United States
puts them in a perfect position to supply retailers and other
warehouse/distributors with 'hard to find' CRAGAR products
and provide information on all CRAGAR products.  This transaction
will enable consumers to continue to purchase wheel products not
currently licensed to Weld Racing, Inc. and Carlisle Tire & Wheel

Phil Potocki, President of PDK, Inc. stated, "CRAGAR's strong
brand equity and reputation for quality products and PDK's
leading position in middle America for distributing aftermarket
wheels is a winning combination.  We are very pleased to work
closely with CRAGAR as we continue to grow our business."

CRAGAR Industries, Inc. is an international licensor of custom
wheels and wheel accessories for cars, trucks, vans, sport
utility vehicles, racing vehicles, and motorcycles.

CROWN VANTAGE: Dow Chemical Seeks Compensation From Debtor
The Dow chemical Company seeks an order requiring Crown Vantage,
Inc. and Crown Paper Co. to compensate Dow for the debtors' use
of Dow's cash collateral by paying Dow $271,645.21 which
represents the contract price for Latex Products sold and shipped
pre-petition by Dow to the debtors and used post-petition by the
debtors to produce and process paper in their St. Francisville
Mill, which paper was then sold by the debtors to their
customers, thereby generating cash collateral.

Dow states that its counsel advised counsel for the debtors that
Dow held a consignment claim and/or a properly perfected, first-
priority, purchase money security interest in the Latex Products
shipped to the debtors' St. Francisville Mill, and requested that
the debtors adequately protect Dow's interest in these Latex

Upon information and belief, the debtors have used the Latex
Products in their post-petition production and processing of
paper at their St. Francisville Mill' in fact , as of this date,
the Latex Products no loner exist in that such Latex Products
were used in the production and processing of paper that has been
sold by the debtors to their customers.  Thus, Dow is not able to
repossess or recover the latex Products.

CROWN VANTAGE: Seeks To Extend Exclusive Periods
The debtor, Crown Vantage Inc. seeks issuance of a court order
extending the debtors' exclusive period in which to file a plan
of reorganization and to solicit acceptances thereof.

The debtors seek to extend their exclusive periods within which
to file a plan of reorganization and solicit acceptances thereof
for approximately 90 days, through and including October 11, 2000
and December 11, 2000, respectively.

Given the early stages of the process, the debtors will need
additional time to negotiate, draft and obtain approval of the
terms of any transaction and Chapter 11 plan.  The debtors claim
that the size and complexity of their cases warrant an extension
of exclusivity.  The debtors have negotiated with potential
acquirers and have been working toward the formulation of a stand
alone business plan.  To promote a consensual plan, t he debtors
have on an ongoing basis provided information to both the
Creditors' Committee and the DIP Lenders.  These cases have
proceeded in an n orderly and productive manner, largely as a
result of the efforts of the debtors to maintain continuity in
their operations and promote the exchange of information and
proposals that may ultimately form the basis of a plan of

A hearing has been scheduled before the Honorable Randall J.
Newsome, US Bankruptcy Court for the Northern District of
California, 1300 Clay Street, Oakland, California on June 20,
2000 at 10:00 AM.

The Wall Street Journal reports on June 12, 2000 that Hyundai
Motor Co. is pressing DaimlerChrysler AG to join it in submitting
a combined offer, and the two companies are discussing it. There
is a deadline of June 26, 2000 for bids offered.

According to the report DaimlerChrysler confirmed in March that
it was in talks about forming a strategic alliance with South
Korea's Hyundai. The two auto makers had become linked through
Japan's Mitsubishi Motors Corp., in which DaimlerChrysler bought
a controlling 34% interest. Mitsubishi holds a small stake in

But Hyundai said last week the alliance talks focused on
Hyundai's desire that DaimlerChrysler join in trying to acquire
the insolvent Daewoo. Hyundai hopes a foreign partner would make
its bid to buy the No. 2 player acceptable to the government,
which has said it doesn't want to create a monopoly.

In March, DaimlerChrysler Chairman Juergen Schrempp said he
wasn't interested in Daewoo, but that a linkup with Hyundai
"would obviously be an interesting case to look at."

One possibility would be a merger of Daewoo with Kia Motors
Corp., another Korean auto maker that Hyundai acquired in 1998.

Meanwhile, General Motors Corp., Detroit, and Ford Motor Co.,
Dearborn, Mich., said they are scrambling to complete their bids
for Daewoo by the June 26 deadline, which they say appears likely
to hold.  Within days of receiving the bids, the committee is to
choose from one to three bidders to enter a round of intense
negotiations. A winner is expected to be selected in September.

EAGLE GEOPHYSICAL: First Amended Joint Disclosure Statement
Eagle Geophysical Inc. and certain of its subsidiaries propose to
reorganize around the land seismic acquisition business in the he
United states and Canada and retain the data library partnership
in Canada.  The multi-client marine data library will be placed
in a liquidating trust or other account for the benefit of
remaining creditors under the plan with an agreement of the trust
to fund certain sums to Eagle through December 31, 20001.  During
the current industry downturn, the land business has operated at
above cash break-even levels.  The land business is expected to
return to profitability as industry demands recover.  Operation
of the land business is expected to provide recovery for
creditors substantially higher than liquidation of the land
assets.  Eagle will liquidate all other assets, primarily the
marine assets, over not longer than a two-year time period.  The
Bankruptcy Court has set June 28, 2000, at 3:00 PM as the time
and date for the hearing to determine whether the plan has been
accepted by the requisite number of creditor and whether the
other requirements for Confirmation of the Plan have been

ELDER BEERMAN: Criticizes PPM Plan
Elder-Beerman Stores Corp. says the company's efforts to explore
its alternatives may be harmed by a shareholder bid to replace
some board members and make changes in management compensation.

PPM America, a major shareholder of the Dayton-based retailer,
has named rival candidates for the board of directors and
proposed a series of changes, including reorganizing the board
and linking senior management's pay with stock performance.

PPM made the proposals Wednesday in a filing with the U.S.
Securities and Exchange Commission.

The filing is the latest volley fired by the Chicago-based
investment management firm, which owns 1.96 million shares, or
13.2 percent of Elder-Beerman's stock.

Elder-Beerman operates 62 department stores in Ohio, West
Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and

In February, Elder-Beerman announced it had hired Wall Street
investment banker Wasserstein Perella & Co. to help it explore
options for increasing the company's stock price, including
possibly selling the company.

''The company may lose employees, customers and vendors, and the
Company's exploration of alternatives may be stalled because of
PPM's filing,'' Elder-Beerman said in a statement released

In its filing, PPM also called for resumption of a share
repurchase plan it says Elder-Beerman has stopped, reduction in
the number of votes needed to alter the retailer's charter, and
elimination of a so-called ''poison pill'' clause to deter
unwanted suitors.

PPM's slate of directors and proposed rule changes will be voted
on at the company's annual meeting Aug. 24, when the terms of
three of 11 existing board members expire.

Since last summer, Elder-Beerman has faced pressure from certain
institutional shareholders such as PPM to increase its stock's
value by buying back shares at a premium price, selling the
company or taking it private.

Excessive inventory and competition forced Elder-Beerman to seek
Chapter 11 bankruptcy protection in October 1995. It emerged from
reorganization Dec. 30, 1997, transforming itself from a family-
run business into an independent, publicly traded company.

In morning trading Friday, Elder-Beerman shares were unchanged at
$4.3125 on the Nasdaq Stock Market.

FRUIT OF THE LOOM: VF Corp. Wins Approval To Purchase Gitano
According to an article in The Wall Street Journal on June 12,
2000, VF Corp. won bankruptcy-court approval Friday to purchase
the assets of New York undergarment maker Fruit of the Loom
Inc.'s Gitano Fashions Ltd. unit for $17.5 million, according to
Fruit of the Loom's counsel.

Luc Despins of Milbank Tweed Hadley & McCloy said VF outbid New
York clothing company One Step Up Inc. and casual-apparel
designer Gloria Vanderbilt at an auction Thursday. Gitano had
agreed to sell its inventory, name and trademark, equipment and
records to One Step Up, subject to higher offers.

VF makes Lee and Wrangler jeans and Vanity Fair intimate apparel.

GLOBAL OCEAN CARRIERS: Committee Objects to Dismissal
The informal committee of holders ("Ad Hoc Committee") of the
debtors' 10.25% Senior Notes due 2007 objects to Arabella
Holdings Inc.'s motions to dismiss the bankruptcy cases of Global
Ocean Carriers Limited and thirteen direct and indirect

The Ad Hoc Committee states that Arabella's motion is fatally
flawed and ill conceived.  As a single dissident creditor holding
$150,000 of the debtors' unsecured debt, the Ad Hoc Committee
states that Arabella seeks to disrupt a process that is not only
fully supported by the law, but also by the holders of
substantially all of the debtors' debt.

The Ad Hoc Committee states that the debtors participate in Unite
States capital markets and have property in the United States,
attempting to support the creditor's jurisdictional complaints.  
The Ad Hoc Committee believes that Arabella purchased its notes
for litigation purposes rather than to maximize its investment
return.  The Ad Hoc Committee states, "It appears that Arabella
has paid more in litigation fees than not only its original
purchase price of the Notes (approximately $55,000), but also the
face amount of the Notes ($150,000).

GST TELECOM: Interim Order Authorizing Financing
An order was entered granting GST Telecom Inc., et al., debtors,
authority to obtain postpetition financing from Heller Financial
Inc. and certain other lender parties. The debtors shall not
borrow under the Agreement such that the outstanding principal
amount thereunder exceeds $30 million in the aggregate prior to a
final hearing on the motion and entry of a final order thereon.

GST TELECOM: Time Warner Announces Expiration of Letter of Intent
Time Warner Telecom Inc. (Nasdaq: TWTC) announced that its
previously announced letter of intent for the purchase of
substantially all of the assets of GST Telecommunications, Inc.
(Nasdaq: GSTXQ) expired by its terms on June 12, 2000 due to the
inability of the parties to reach a definitive agreement.

"Time Warner Telecom had entered into the letter of intent based
on our substantial knowledge of GST's assets.  We believed and
continue to believe that GST's physical assets and people would
have complemented our geographic expansion.  However, we have
been unable to reach agreement with the various constituencies in
the bankruptcy process on terms acceptable to Time Warner
Telecom," said Larissa Herda, Time Warner Telecom's President and
Chief Executive Officer.  Ms. Herda added, "We remain committed
to our previously stated aggressive geographic expansion plans."

GST Telecommunications, Inc. (Nasdaq: GSTXQ), announced that it
intends to proceed with an open auction for substantially all of
its assets.  With the support of the Official Committee of
Unsecured Creditors appointed in its bankruptcy case, the Company
will seek approval today of open bid procedures from the District
Court for the District of Delaware with jurisdiction over the
Company's bankruptcy proceedings.

The Company also announced that, with the support of the Official
Committee of Unsecured Creditors, it will seek authorization from
the District Court to implement an Employee Retention Plan.  The
Company has developed the Plan, with the input of the Committee,
to create an incentive and reward for certain of its employees to
stay with the Company during the Chapter 11 process.

"Given the interest shown by a number of other bidders, the
Committee's commitment to support the Company's efforts to
arrange for financing, and the Committee's support of an open
auction process, we believe we are taking the right step in
proceeding with an open auction," stated Tom Malone, acting chief
executive officer of GST.

GST Telecommunications, Inc., an Integrated Communications
Provider (ICP) headquartered in Vancouver, Wash., provides a
broad range of integrated telecommunications products and
services including enhanced data and Internet services and
comprehensive voice services throughout the United States, with a
significant presence in California and the West.  Visit GST's Web
site at

GST TELECOM: Tomen America Objects To Bidding Procedures
Tomen America, Inc. and TM Communications Hawaii LLC, the largest
secured creditor of two of the debtors, GST Pacific Lightwave,
Inc. and GST Telecom Hawaii, Inc. and their affiliated debtors,
object to the debtors' motion for an order approving bidding
procedures and bidding protections with respect to the proposed
sale of substantially all of the debtors' assets to Time Warner
Telecom Inc. or the highest bidder.

Tomen objects to the motion, filed less than two weeks after
commencement of the cases, and the creditor states that the
approval of bidding procedures would preclude prospective
purchasers from having a  meaningful opportunity to submit and
obtain approval of competitive bids for substantially all of the
debtors' assets.

Tomen objects to the absolute discretion of the debtors alone to
determine who is qualified to submit bids, what information to
give to such "Qualified Bidder" and when the information should
be given; the preclusion of partial sales of assets to multiple
bidders and the requirement that the purchase price must be
entirely in cash.  Tomen objects to payment to Time Warner of
$13.5 million as a break-up fee in the event Time Warner is not
the successful bidder, and $2 million as reimbursement of
expenses incurred by Time Warner.

KAISER GROUP: ICF Consulting Clarifies Its Independence
As a result of the announcement that Kaiser Group International,
Inc. ("Kaiser Engineers") is seeking Chapter 11 bankruptcy
protection from creditors, ICF Consulting is clarifying its
independence from Kaiser Engineers as a result of ICF
Consulting's sale to investors last year.

ICF Consulting was sold by its former parent, then referred to as
"ICF Kaiser," in June 1999 to CM Equity Partners, L.P. (CMEP), an
equity investment firm based in New York City, and to senior
managers within ICF Consulting itself.  After the sale, the
former "ICF Kaiser" became "Kaiser Group International,

KAISER GROUP: To Sell Two Engineering Operating Units For $40 MM
Kaiser Group International, Inc. (OTC Bulletin Board: KSRG)
announced that plans have been finalized for the sale of its two
engineering operating units for a total of approximately $40
million in cash.

Kaiser will sell its infrastructure and facilities business to
Earth Tech Holdings, Inc., a unit of Tyco International, Ltd.
(NYSE: TYC; Berlin) (London: TYI).  Kaiser's metals, mining and
industry business will be sold to The Hatch Group of Canada, a
leading provider of engineering services to the metals and
mining sectors.  Kaiser will retain its Netherlands subsidiary
that performs the contract related to the Nova Hut steel mini-
mill project in the Czech Republic and will be supported by Hatch
in the completion of that project.  Kaiser will also retain its
50% interest in Kaiser-Hill Company, LLC.

These transactions result from a study of strategic alternatives
for the Company's engineering operations undertaken this year in
connection with the ongoing restructuring of Kaiser's debt.
"There is a clear trend toward consolidation in the engineering
and construction business, and that is particularly true as to
companies such as ours that compete for major projects on a
worldwide basis," said James J. Maiwurm, Chairman and Chief
Executive Officer of Kaiser Group International, Inc.  "This was
a difficult decision to reach, but we reluctantly concluded that
the demands of today's marketplace are such that a stand-alone
plan was not in the best interests of our stakeholders going
forward. Earth Tech and Hatch bring the skill sets, critical
mass, and financial strength necessary to ensure growth in the
lines of business that Kaiser operates.  Both of these companies
provide an excellent strategic and operational fit. We are
confident they will provide stability and opportunity for our
valued clients and employees, and extend the legacy of Kaiser
Engineers to a bright new future."

"The acquisition of Kaiser's infrastructure and facilities
business further strengthens Earth Tech's commitment to strategic
growth in the global marketplace," said Diane C. Creel, Earth
Tech's President. "We will leverage Kaiser's expertise and
reputation to better serve our clients with expanded capabilities
in transit and transportation, water/wastewater, facilities
design and construction, and microelectronics and clean

Hatch President and CEO Ron Nolan said, "Kaiser's storied
tradition and name recognition worldwide, as well as the skills
and experience that Kaiser's employees bring to Hatch's existing
capabilities, will strengthen our position as a premier global
player in the metals, mining and industry sectors. The match
between our two companies is excellent as we continue to bring
high- quality and cost-effective engineering services to our

Kaiser expects to complete the two sales through a voluntary
filing of a Chapter 11 reorganization.  Kaiser believes that a
Chapter 11 reorganization is the quickest and most efficient
means to complete both the sales transactions and the related
restructuring of Kaiser's existing indebtedness. Kaiser hopes to
complete the sales before the end of July and to complete its
reorganization by late summer.  Kaiser Engineers, Inc. and
certain of Kaiser's other domestic subsidiaries will be included
in the reorganization filings. Kaiser's foreign subsidiaries
outside of North America and the affiliates that own Kaiser's
interest in Kaiser-Hill Company, LLC will not be included in the

Kaiser plans to retain its 50 percent ownership of Kaiser-Hill
Company, LLC, the contractor for clean up and closure of the
Department of Energy's (DOE's) Rocky Flats site in Colorado.  
Kaiser and its partner, CH2M Hill, will continue to manage the
Kaiser-Hill Company, LLC. Both firms foresee no management,
employee, or operational changes with respect to the Rocky Flats

Maiwurm explained:  "The pre-packaged Chapter 11 reorganization
is supported by the largest holders of our $125 million of Senior
Subordinated Notes and is designed so as not to affect Kaiser-
Hill's performance at Rocky Flats.  We will emerge from the
reorganization as a debt-free company without the burdens of
historical problems. We will be a stronger partner for the DOE
and CH2M Hill, and we will remain committed to supporting the
2006 closure of the Rocky Flats site."

"This filing should not be misinterpreted," emphasized Maiwurm.
"We are proceeding through Chapter 11 as a vehicle to complete
the restructuring begun last year and to conclude the sales of
our engineering operating units. We have the cash on hand and
revenue from ongoing operations to meet Kaiser's operational
needs during the reorganization."

Kaiser will operate its business as usual pending the completion
of the sales transactions.  For example, Kaiser will continue to
perform work under its existing contracts without impacting its
ongoing subcontractor/vendor relationships.  Kaiser expects that
the reorganization will have little effect, if any, on its
ongoing clients, partners, subcontractors and vendors. In
addition, there are not expected to be any changes regarding
wages, salaries and benefits of current employees.

Under the terms of the restructuring agreed to with major holders
of Kaiser's Senior Subordinated Notes, holders of those notes are
expected to receive a combination of preferred and common stock
of a new holding company in exchange for their existing notes.  
The interests of existing common stockholders will be very
substantially diluted.  The precise terms of Kaiser's
revised capital structure will be described in a disclosure
statement to be disseminated following approval of the Federal
Bankruptcy Court in Delaware.

SAFELITE GLASS: Signs Waiver Agreement With Senior Lender
Safelite Glass Corp. filed for Chapter 11 bankruptcy protection
in U.S. Bankruptcy Court in Wilmington, Del. The Columbus, Ohio-
based automotive-glass replacement and repair company listed in
the petition assets of $559.2 million and liabilities of $591.4

Safelite Glass has hired financial advisers Blackstone Group L.P.
and Deloitte & Touche L.L.P to provide professional services
during its bankruptcy proceedings.

The company estimates that it has over 1,000 creditors. The
petition notes that Thomas H. Lee Equity Fund III L.P. and Belron
BV both own or hold at least 5% of the company's voting
securities. The company announced on March 31 that it signed a
waiver agreement with its senior bank lender, waiving through
Friday certain technical defaults under its $388 million bank

Safelite Glass Corp. announced its Chapter 11 filing on June 9,

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.

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
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.

SINGER: Seeks Order Approving Disclosure Statement
The debtors, The Singer Company N.V. et al., seek court approval
of the Disclosure Statement.  The Disclosure Statement Hearing
Date is June 22, 2000 at 10:00 AM.  The Disclosure Statement
Objection Deadline is June 13, 2000 at 4:00 PM  The Solicitation
Procedures Motion Hearing Date is June 22, 2000 at 10:00 AM and
the Solicitation Procedures motion Objection Deadline is June 15,
2000 at 4:00 PM>

STAGE STORES: Despite DIP Financing - Little Hope For Chain
Though Stage Stores Inc. which filed for Chapter 11 on June 1,
obtained a large debtor-in-possession facility of $450 million
from Citicorp, sources believe that may not be enough to bring it
back to health.

The United States Bankruptcy Court for the Southern District of
Texas last week approved the credit agreement, but the news did
not lift Stage's seriously distressed bonds, sources said, as its
$200 million 8.5% senior subordinated notes were trading at 6
cents on the dollar and its $100 million of senior subordinated
9% paper traded at 3 cents.

A distressed analyst who requested anonymity said Stage's
"fundamental problems with the business and the balance sheets
make for a deadly combination." He added, "In the last twenty
years, I can't think of a retailer that has had as many problems
as they had and come back on their feet."

Marie Mendendez, a VP of Moody's Investors Services, said the
company's business prospects and financial health do not look
strong. In its credit report, Moody's said it believed that Stage
would use a significant portion of that DIP facility "to finance
credit card receivables currently financed under an off-balance
sheet vehicle."

The company would not have anything left over to restore vendor
confidence, he added, and if vendors don't start shipping greater
quantities of their merchandise, Stage is in trouble.

An equity analyst who also requested anonymity said that the
company is looking to tackle about $300 million of credit
receivables debt. That only leaves $150 million in working
capital for the company. Whether that is enough to jumpstart
Stage remains to be seen.

"There are lot of questions left," the analyst said, including
the effect of the DIP financing on existing bondholders.

Debbie Downie of Miller Tabak Roberts pointed to Stage's weak
showing in the fourth quarter as to the reason why top vendors
such as Nike Inc. and Levi's Inc. lost confidence in the company
and subsequently limited the quantity of merchandise they shipped
to Stage.

Though the equity analyst acknowledged that Stage now had some
breathing room, it has made poor merchandising decisions in the
past that needed to be rectified. He added that Stage is also a
victim of changes in consumer shopping patterns.

Ron Weunsch, a financial consultant retained by Stage to organize
the company's legal and financial advisory teams, said the
company's primary goal for the DIP is to restore its credibility
among the vendor community.  Weunsch added that the bondholder
committee is in the process of being organized, but did not know
when the process would be finished. He also did not know who
would be chairing the committee.

Moody's has downgraded the debt ratings of Speciality Retailers,
Stage's primary subsidiary. It's $200 million senior guaranteed
notes were to downgraded to Ca and its $100 million senior sub
notes were to C.

SUN HEALTHCARE: Entry of Bar Date Order
On May 2, 2000 the US Bankruptcy Court for the District of
Delaware entered an order establishing June 20, 2000, 5:00 PM as
the Bar Date in the cases of Sun Healthcare Group, Inc., et al.,
debtors.  August 1, 2000 at 5:00 PM was set for the HoMed
Government Bar Date.

SYSTEM SOFTWARE: Seeks To Reject Certain Unexpired Leases
The debtor, System Software Associates, Inc. seeks to reject
certain unexpired leases of nonresidential real property pursuant
to Section 365 of the Bankruptcy Code.  Specifically, the leases
are for office space at the following locations, which are no
loner needed by the debtor:

18400 Von Karman Avenue, Suite 640 , Irvine, California 92612
Hopping Brook Industrial Park, Holliston, Massachusetts 01746
Building 301, Merritt 7 Corporate Park, Norwalk, Connecticut
International Plaza, Suite 415, Hato Rey, Puerto Rico 00917

The debtor no longer occupies the leased properties and has
determined that the leases no longer provide an economic benefit
to the debtor.  It has also been determined that the leases are
of no use to the continuation of the debtor's business and would
be of no value to the estate.

TELEGEN CORP: Plan of Reorganization
As provided in a summary of the plan in the Disclosure Statement
of Telegen Corporation, the Company has completed two private
placements of its common stock with various investors, and raised
a total of $11 million.  The company has also begun one of three
additional planned offerings, and has been informed that
subscriptions of ran additional $7 million have been received.  
Funds from the Offerings are currently being held in escrow.  $7
million will be available to the company when the plan is
confirmed in its current form.  The balance of the funds will be
available upon fulfillment of other conditions of the Offerings,
primarily the effectiveness of a registration statement to be
filed with the SEC.  The funds raised in these private placements
will be used primarily to complete development and set up of
prototype production for the company's HGED flat panel display

In addition, another company, eTraxx Corporation is to become a
subsidiary of the company as a result of a stock-for-stock
exchange to be accomplished as part of the plan.  Another portion
of the proceeds of the private placements and a separate
placement by eTraxx will be used to complete development of
eTraxx's products.

If the plan is confirmed, all holders of Allowed Claims who wish
cash payment may receive full payment of their Allowed Claims in

In the alternative, the Company proposes to issue shares of New
Common Stock on account of most claims and interests under the
plan.  Holders of allowed claims in certain categories may elect
to receive New Common Stock in lieu of cash, and holders of
equity security interests will only be entitled to New Common

Under the plan, Priority employee claims and nonpriority
unsecured claims will receive full cash payment or New Common

Equity security interests will be treated as follows: Existing
common stock will receive a 1:16 reverse split.  Existing
preferred stock and dividends thereon will be converted to New
Common Stock and Subordinated Notes will be rescinded with a
return of New Common Stock.  Holders of rights, options, and
warrants will receive no distribution.

The confirmation hearing will be held on June 28, 2000 at 1:30 PM
before the Honorable Dennis Montali, US Bankruptcy Court, 235
Pine Street, 22d floor, San Francisco, California.

TOBISHIMA CORP.: Posts 22B yen group net loss  
Tobishima Corp. posted a consolidated net loss of 22.1
billion yen for the fiscal year ended March, compared with
a profit of 347 million yen the prior year.

The Japanese general contractor attributed its poor
performance to a special loss totaling nearly 29.4 billion
yen, which included 11.27 billion yen as a loan-loss
reserve, 8.38 billion yen for an appraisal loss of its
securities holdings, and 8.39 billion yen for the appraisal
loss of its real estate holdings.

The company's consolidated operating profit for the year-
ended dropped 15 percent from a year earlier to 12.64
billion yen. The contractor had group sales of 315.65
billion yen, down again from the prior year by 7.9 percent.
Group pretax profit fell 29.2 percent to 4.8 billion yen.

Masatoshi Yamamoto, director of Tobishima, said the company
had decided to record the special items in the last fiscal
year in anticipation of the implementation of even stricter
accounting standards this fiscal year.  

On a positive note, Tobishima cut its consolidated
interest-bearing liabilities by 19 percent in the year to
152.1 billion yen. It anticipates a further cut of the
debts by about 10 billion yen this year.  For this fiscal
year, Tobishima projects a consolidated net profit of 250
million yen and an operating profit of 12.1 billion yen on
sales of 330 billion yen.

VENCOR: Court Approves Third Extension of Exclusive Periods
Judge Walrath entertained the Debtors' request, found that the
Debtors have shown cause for more time, and granted the Debtors an
extension of their exclusive period during which to file a plan of
reorganization through July 18, 2000, together with an extension of
their exclusive period during which to solicit acceptances of that
plan through September 15, 2000. (Vecor Bankruptcy News Issue 13;
Bankruptcy Creditors' Services, Inc.)

WHIRLAWAY FROCKS: Seeks Order Approving Sale of Certain Assets
The debtor, Whirlaway Frocks, Inc. seeks a court order scheduling
a hearing at which the debtor will request entry of an order
authorizing the debtor to sell certain of its assets  and a non-
residential real property lease to Cue Fashions, Inc. or any
higher or better third party bidder.  The sale hearing will b e
held on June 13, 2000 at 3:00 PM.

The debtor still has on hand, and is not selling its accounts
receivable, finished goods and work in process.  The debtor does
not have the financial capability to purchase the piece goods to
fulfill its existing purchase orders which need to be fulfilled
subsequent to June 30, 2000 and which have a face amount of
approximately $2 million or contract to third parties to
manufacture the merchandise required to fulfill these outstanding
purchase orders.  Cue Fashions has agreed to purchase the
Purchased Assets for a purchase price of approximately $42,500.

The debtor seeks to obtain authorization to sell the Purchased
Assets to Cue Fashions as well as to assume and assign the Lease
to Cue Fashions. Cue Fashions shall acquire the following assets
of the debtor:

The debtor's unfilled customer purchase orders in the approximate
aggregate face amount of $2 million, for a consideration of 2% of
the face amount of the merchandise ordered.

All of the debtor's patterns, customer lists, trademarks,
tradenames and goodwill attached thereto for a consideration of

Certain furniture, equipment and miscellaneous personal property
for a consideration of $1,000.

The closing shall take place within 11 days after an order is
entered by the Bankruptcy Court(which must take place no later
than June 15, 2000) reasonably satisfactory to Cue Fashions
approving the transaction including, without limitation, the
Asset Purchase Agreement, and the assumption and assignment of
the Lease.

Meetings, Conferences and Seminars
June 14-17, 2000
      16th Annual Bankruptcy & Restructuring Conference
         Swissotel, Chicago, Illinois
            Contact: 1-541-858-1665 or

June 29-July 2, 2000
      Western Mountains Bankruptcy Law Institute
         Jackson Lake Lodge, Jackson Hole, Wyoming
            Contact: 1-770-535-7722

July 13-16, 2000
      7th Annual Northeast Bankruptcy Conference
         Doubletree Hotel, Newport, Rhode Island
            Contact: 1-703-739-0800
July 21-24, 2000
   National Association of Chapter 13 Trustees
      Annual Seminar
         Adams Mark Hotel, St. Louis, Missouri
            Contact: 1-800-445-8629 or

August 3-5, 2000
      Fundamentals of Bankruptcy Law
         Seaport Hotel and Conference Center,
         Boston, Massachusetts
            Contact: 1-800-CLE-NEWS

August 9-12, 2000
      5th Annual Southeast Bankruptcy Workshop
         Hyatt Regency, Hilton Head Island, South Carolina
            Contact: 1-703-739-0800

August 14-15, 2000
      Advanced Education Workshop
         Loews Vanderbilt Plaza, Nashville, Tennessee
            Contact: 1-312-822-9700 or
August 17-19, 2000
      Banking and Commercial Lending Law -- 2000
         Renaissance Stanford Court
         San Francisco, California
            Contact: 1-800-CLE-NEWS

September 7-8, 2000
   ALI-ABA and The American Law Institute
      Conference on Revised Article 9 of the
      Uniform Commercial Code
         Hilton New York Hotel, New York, New York
            Contact: 1-800-CLE-NEWS

September 12-17, 2000
         Doubletree Resort, Montery, California
            Contact: 1-803-252-5646 or

September 15-16, 2000
      Views From the Bench 2000
         Georgetown University Law Center, Washington, D.C.
            Contact: 1-703-739-0800

September 21-22, 2000
      3rd Annual Conference on Corporate Reorganizations
         The Regal Knickerbocker Hotel, Chicago, Illinois
            Contact: 1-903-592-5169 or   

September 21-23, 2000
      Litigation Skills Symposium
         Emory University School of Law, Atlanta, Georgia
            Contact: 1-703-739-0800

September 21-24, 2000
      8th Annual Southwest Bankruptcy Conference
         The Four Seasons, Las Vegas, Nevada
            Contact: 1-703-739-0800

November 2-6, 2000
      Annual Conference
         Hyatt Regency, Baltimore, Maryland
            Contact: 312-822-9700 or

November 27-28, 2000
      Third Annual Conference on Distressed Investing
         The Plaza Hotel, New York, New York
            Contact: 1-903-592-5169 or   
November 30-December 2, 2000
      Winter Leadership Conference
         Camelback Inn, Scottsdale, Arizona
            Contact: 1-703-739-0800

February 22-24, 2001
      Real Estate Defaults, Workouts, and Reorganizations
         Wyndham Palace Resort, Orlando (Walt Disney
         World), Florida
            Contact: 1-800-CLE-NEWS

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to are encouraged.  


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
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contained herein is obtained from sources believed to be
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The TCR subscription rate is $575 for six months delivered via
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