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/raid1/www/Hosts/bankrupt/TCR_Public/000710.MBXT R O U B L E D C O M P A N Y R E P O R T E R Monday, July 10, 2000, Vol. 4, No. 133 Headlines ACTION INDUSTRIES: Creditors Object To Reorganization Plans AHERF: Hearing To Consider Approval of Disclosure Statement AMERISERVE: Fails To Disclose True Status Before Bond Offering CODA ACQUISITION: Disclosure Statement for Liquidating Plan CYANOTECH: Reports Net Losses of $4.485 Million DAEWOO INT'L: Seeks Extension of Exclusivity DE-VLIEG BULLARD: Extension of Exclusivity FIRST UNION: Ratings Under Review For Possible Downgrade FREEWWWEBB: Notice of Important Hearing Dates GARDEN BOTANIKA: Reports June Comparable Store Sales GENESIS MULTICARE: GHV Applies To Employ Richards, Layton GNI GROUP INC.: Moodys' Downgrades 10.875% Sr Unsecured Notes GOTHIC ENERGY: Chesapeake Buys Rival Energy HAMILTON INSURANCE: Seeks Way To Enhance Finances HARNISCHFEGER: Committee Taps BDO as Financial Advisor HARNISCHFEGER: Joy Mining Workers Meet With Chase Manhattan Bank INNOVATIVE CLINICAL: Substantial Doubt About Going Concern K-TEL: Lays Off More Than 100 Employees LACLEDE STEEL: Higbee Named President and CEO LESLIE FAY: Ex-Financial Chief, Polishan, Found Guilty of Fraud MCA FINANCIAL: Files Chapter 7 In Detroit NEW AMERICAN: Order Approves Counsel to Committee OAKWOOD HOMES: Moody's Lowers Debt Ratings PANDA GLOBAL: Downgraded To 'CCC' By Fitch PATHMARK: Bondholders to Vote on Ownership Transfer POWER PLUS: Reports Pared Down Operations PRISON REALTY: Moody's Downgrades Securities RAYTHEON CO.: Settles Suit Filed by Three Women RELIANCE GROUP: S&P Lowers Ratings SAFETY KLEEN: Applies To Employ Lazard Freres SAFETY-KLEEN: Seeks To Sell 44% Stake in Waste Disposal Company SHONEY'S: NYSE To Suspend Trading of Common Stock SILVER CINEMAS: Committee Taps Milbank, Tweed SITE TECHNOLOGIES: Order Confirms Liquidation Plan SITI-SITES COM: In Early Stages Of Developing Websites STONE & WEBSTER: Shaw Group Wins Bid For Assets TBS SHIPPING: Case Summary and 20 Largest Creditors TBS SHIPPING: Provides For Restructuring of Notes VISTA EYECARE: Seeks Extension To File Schedules and Statements WISER OIL: Shareholders Report Holdings ********* ACTION INDUSTRIES: Creditors Object To Reorganization Plans ----------------------------------------------------------- Action Industries' creditors committee filed an objection to the company's reorganization plan with the U.S. Bankruptcy Court in Manhattan, saying that the company failed to provide enough information in the disclosure statement about key players in the reorganization. The committee also faulted the company's failure to include provisions to sell its General Vision Services unit to the former chairman of Sterling Vision Inc., now Emerging Vision Inc. They claim that the value of the reorganized company's stock would never be able to increase because of a mandatory redemption requirement incorporated into the plan. The committee is advocating its own plan which, it claims, would pay creditors $600,000 more than the $3.2 million offered by GVS on the effective date of the plan. As reported, Action Industries' creditors filed an involuntary Chapter 11 petition on April 16, 1999. The case was converted to a voluntary Chapter 11 on Sept. 9. AHERF: Hearing To Consider Approval of Disclosure Statement ----------------------------------------------------------- A hearing shall be held before the Honorable M. Bruce McCullough, US Bankruptcy /Court for the Western District of Pennsylvania, 600 Grant Street, USX Tower, 54th Floor, Courtroom B, Pittsburgh, Pennsylvania 15222 on August 15, 2000 at 10:00 AM to seek entry of an order approving the Chapter 11 Trustee's Disclosure Statement as containing "adequate information." AMERISERVE: Fails To Disclose True Status Before Bond Offering -------------------------------------------------------------- Dow Jones Business News reports that Ameriserve Food Distribution Inc. was experiencing financial trouble and difficulty dealing with its suppliers and customers months before a $200 million junk-bond offering in September 1999. According to a preliminary report filed with the federal bankruptcy court in Wilmington, Del. by a court-appointed examiner, it seems that the company failed to reveal this situation to its bondholders and that it also appears to back lead underwriter Donaldson, Lufkin & Jenrette Inc.'s insistence that it didn't know about Ameriserve's problems with Burger King Corp., but the report indicates this may have been the result of poor diligence on DLJ's part. CODA ACQUISITION: Disclosure Statement For Liquidating Plan ----------------------------------------------------------- On June 21, 2000, the US Bankruptcy Court fort he Southern District of New York entered an order finding that the Amended Disclosure Statement for the debtor's liquidating plan of reorganization contained "adequate information", authorizing the debtor to solicit acceptances to the debtor's amended liquidating plan of reorganization. The Confirmation Hearing will be held on July 25k, 2o000 at 10:00 AM before the Honorable Burton R. Lifland. The plan will permit the debtor to conclude the liquidation of its estate and make distributions to creditors following acceptance of the plan. There are approximately $10.6 million in general unsecured claims, and the debtors estimate a 10%-15% recovery for allowed claimants. CYANOTECH: Reports Net Losses of $4.485 Million ----------------------------------------------- Cyanotech Corporation is a leader in the development and commercialization of high value products derived from microalgae. Microalgae are a diverse group of over 30,000 species of microscopic plants which have a wide range of physiological and biochemical characteristics and naturally contain high levels of proteins, amino acids, vitamins, pigments and enzymes. The company currently produces natural products from microalgae for the nutritional supplement, aquaculture feed, animal nutrition, and immunological diagnostics markets. Cyanotech cultivates and processes its microalgae products at a 90-acre production facility on the Kona Coast of the Island of Hawaii. Products include BioAstinTM, a natural astaxanthin product for use as a human nutritional supplement; NatuRose(R) natural astaxanthin used worldwide in the aquaculture and animal feed industry; Spirulina Pacifica(R), a nutrient-rich dietary supplement; and phycobili proteins, which are fluorescent pigments used in the immunological diagnositics market. The company reported annual sales for the fiscal year ended March 31, 2000 of $7,398,000 with net losses of $4,485,000. In the 1999 fiscal year company sales were $6,738,000 with resulting net losses of $2,557,000. DAEWOO INT'L: Seeks Extension of Exclusivity -------------------------------------------- The debtor, Daewoo International (America) Corp., seeks to extend its exclusive periods to file a plan of reorganization and solicit acceptances thereto. The debtor seeks to extend the exclusive periods within which the debtor may file a plan of reorganization, and solicit acceptances thereto, to October 13, 2000 and December 12, 2000 respectively. The debtor claims that its business and financial affairs are extremely complex, with liabilities of almost $800 million and creditors in the United States and abroad. A world-wide purchase offer was only recently commenced to non-Korean bank creditors on account of their claims against the Daewoo group, including approximately $335 million in claims held against the debtor. The debtor is cautiously optimistic that the offer will be successful. Korea Asset Management Corporation ("KAMCO"), a statutory juridical entity incorporated in Kor3ea is funding the offer and will ultimately succeed to the ownership of these claims if the offer is successful. Given the pendency of the offer and the significant time and effort it involves, KAMCO has not yet met with the debtor and its attorneys. If the offer is accepted by the requisite number of non-Korean bank creditors and the Global Restructuring Agreement is consummated, KAMCO will control an exceedingly high percentage of the claims asserted against the debtor's estate. The debtor asserts that to attempt to formulate a plan without KAMCO's participation would be a wasteful exercise in futility. As such, the pendency of the offer militates strongly in favor of extending the debtor's exclusivity periods. The debtor also states that it is premature and unreasonable to expect the debtor at this early stage to be in a position to promulgate a plan of reorganization. DE-VLIEG BULLARD: Extension of Exclusivity ------------------------------------------ By order entered on June 28, 2000 by the US Bankruptcy Court, Northern District of Ohio, Eastern Division, the debtor, Devlieg- Bullard, Inc. shall have, up to and including July 31, 2000, the exclusive right to file a plan of reorganization. The debtor shall have up to and including September 30, 2000 the exclusive right to solicit acceptances of its plan of reorganization. FIRST UNION: Ratings Under Review For Possible Downgrade -------------------------------------------------------- Moody's has placed under review for possible downgrade the B2 senior unsecured debt rating and the "b3" cumulative preferred stock rating of First Union Real Estate Equity & Mortgage Investments. These rating reviews reflect the announcement by First Union Real Estate that it has signed a non-binding letter of intent to sell a significant portion of its real estate assets to its business manager, Radiant Partners, for $205 million. Moody's review will focus on the long-term financial and operational impact this asset sale will have on bondholder and preferred shareholder protection. Moody's added that the strategic flux of the REIT, as exemplified by this planned asset sale, creates uncertainty around its capital structure and business plans which could result in a heightened operating risk profile. The following ratings have been placed under review for possible downgrade: First Union Real Estate Equity & Mortgage Investments -- 8.875% Senior Unsecured Notes at B2; senior unsecured debt shelf at (P)B2; 8.4% convertible preferred stock at "b3"; cumulative preferred stock shelf at (P)"b3"; and noncumulative and junior preferred stock shelf at (P)"caa". First Union Real Estate Equity & Mortgage Investments [NYSE: FUR] is a stapled-stock real estate investment trust (REIT) headquartered in New York City, New York, USA. FREEWWWEBB: Notice of Important Hearing Dates --------------------------------------------- The following was released by Law Offices of Douglas T. Tabachnik and Douglas J. Pick & Associates: Pursuant to an order of the United States Bankruptcy Court, Southern District of New York, dated July 5, 2000 entered in the chapter 11 bankruptcy cases of Smart World Technologies, LLC, Freewwwebb, LLC, and Smart World Communications, Inc., two hearings are scheduled by the Bankruptcy Court. Smart World Technologies, LLC, Smart World Communications, Inc. and Freewwweb, LLC (collectively the "Debtors") filed a motion dated July 5, 2000, with the United States Bankruptcy Court for the Southern District of New York, seeking an order, pursuant to Section 105, 363, 365, 1107 and 1146 of Title 11 of the United States Code (the "Bankruptcy Code"), as complemented by Rules 2002, 4001, 6004, 6006, 9007 and 9008 of the Federal Rules of Bankruptcy Procedure, among other things: 1. Authorizing the Debtors to assume and approving, subject to higher or otherwise better offers, a Term Sheet between the Debtors and Juno Online Services, Inc. and/or its successors and assigns ("Juno") and to take all actions reasonably necessary to effectuate the transactions contemplated by the Term Sheet, including but not limited to entering into a Referral Agreement; 2. Authorizing and approving the sale of the Domain Names (as defined in the Motion) and the referral of subscribers to Juno or such higher and better bidder, free and clear of, among other things, any and all mortgages, security interests, conditional sale or other title retention agreements, pledges, liens, judgments, demands, hypothecations, claims, encumbrances or other interests or charges of any kind or nature, but excluding any of the foregoing to the extent the Purchaser agrees to take subject thereto; 3. Finding that the Juno or the successful bidder is a good faith purchaser of the within the meaning of Section 363(m) of the Bankruptcy Code; 4. Declaring that Juno, or any successful bidder, shall have no liability or responsibility for any liability or obligation of the Debtors; 5. Determining that, pursuant to Bankruptcy Code Section 1146(c), the proposed sale is exempt from stamp, transfer, recording or similar taxes; 6. Decreeing that the Debtors are exempt and excused from complying with any state or local bulk transfer laws or any laws or regulations requiring notice to any taxing authority of any jurisdiction or other laws which might directly or indirectly affect consummation of the transaction or the relief requested in the Motion; and 7. Granting such other related relief consistent with the Motion as the Court deems just or proper. Pursuant to an order to show cause dated July 5, 2000, (a) the Bidding Procedures Hearings, at which the Court will establish the procedures pursuant to which other parties may submit competing bids for the Purchased Assets, will be held on July 12, 2000 at 2:00 p.m. before the Honorable Cornelius Blackshear, United States Bankruptcy Judge, in Room 601 of the United States Bankruptcy Court at the address set forth below; and (b) all parties in interest must show cause at a hearing to be held before the Honorable Cornelius Blackshear, United States Bankruptcy Judge, in Room 601 of the United States Bankruptcy Court, One Bowling Green, New York, New York on July 19, 2000 at 2:00 p.m., or as soon thereafter as counsel can be heard, why this Court should not enter an order approving among other things, the Term Sheet and the transactions contemplated thereby, and granting the relief to be sought by the Motion. LAW OFFICES OF DOUGLAS T. TABACHNIK Co-Counsel designate to the Debtors Douglas T. Tabachnik, Esq. (DT 6337) Three Osage Drive Old Bridge, New Jersey 08857-2910 732-360-2112 DOUGLAS J. PICK & ASSOCIATES Co-Counsel designate to the Debtor 750 Third Avenue, 29th Floor New York, New York 10017 212-983-8484 GARDEN BOTANIKA: Reports June Comparable Store Sales ---------------------------------------------------- Garden Botanika, Inc. (OTCBB:GBOTQ.OB) reports comparable store sales for June (the five-week fiscal period ended July 1, 2000). Comparable store sales decreased 7% from sales in June of 1999 for the 108 stores open at least one complete fiscal year. Total sales declined to $4.0 million from $5.2 million in the prior year, primarily due to a decrease in the number of stores from 150 to 109. For the month, combined mail order and Internet sales were $360,000 and commercial sales were $5,000. The Company also recognized $194,000 in revenue from sales of annual memberships in the Company's discount shopping "Garden Club" program, which membership sales are amortized over the course of a year. For the twenty-two weeks ended July 1, 2000, sales decreased to $18.1 million from $31.4 million in the comparable prior period. Included in total sales are mail order and Internet sales of $1.0 million, commercial sales of $1.1 million and the recognition of$999,000 in revenue from sales of annual memberships in the Garden Club program. In other news, Chief Executive Officer Bill Lawrence also announced that Jeffrey M. Hare has been promoted to Senior Vice President -- Operations. Commenting on the promotion, Mr. Lawrence stated, "Jeff Hare has been a valued team member since 1991, and his proven abilities to coordinate the Company's manufacturing, distribution and warehouse functions should be a valued asset as we move ahead." (a) Garden Botanika markets botanically based cosmetic and personal care products through its 109 stores across the U.S., through its own catalog and on the Internet. The Company's headquarters are located at 8624-154th Avenue NE, Redmond, Washington 98052, and its Web site address is www.gardenbotanika.com. GENESIS MULTICARE: GHV Applies To Employ Richards, Layton --------------------------------------------------------- The GHV Debtors seek the Court's authority to employ and retain Richards, Layton & Finger, P.A. as their local counsel. The Debtors tell the Court they have selected Richards Layton as their co-counsel because of the firm's extensive experience and knowledge, in particular its experience in working with the Debtors acquired in connection with the filing of the chapter 11 cases, and also for Richards, Layton's expertise and experience in practicing before the Bankruptcy Court in Delaware, the firm's proximity to the Court and its ability to respond quickly to emergency hearings and other emergency matters in the Court. By separate application, GHV also seeks to employ and retain the law firm of Weil, Gotshal & Manges as co-counsel in these cases. The Debtors submit that WG&M and Richards Layton have discussed a division of responsibilities and will make every effort not to duplicate effort in their representation of the Debtors' chapter 11 cases. GHV desires that Richards Layton will: (1) advise the Debtors of their rights, powers, and duties as debtors and debtors in possession; (2) take all necessary action to protect and preserve the Debtors' estates, including prosecution, defense and other actions, negotiation in disputes and the preparation of objections to claims; (3) prepare motions, applications, answers, orders, reports, and papers in connection with the administration of the Debtors' estates; (4) negotiate and prepare a plan of reorganization and all related documents; and (5) perform necessary legal services in connection with the Debtors' chapter 11 cases. The Debtors agree to pay Richards Layton its customary hourly rates for the principal professionals and paraprofessionals designated to the GHV cases: Mark D. Collins $310 Daniel J. DeFranceschi $260 Deborah E. Spivack $225 Margreta M. Sundelin $130 Laura B. Ahtes $105 Monica A. Molitor $ 95 Prior to the Petition Date, the Debtors paid Richards Layton a $123,840 retainer. The Debtors propose that the portion paid and not expended for prepetition services and disbursements be treated as a retainer for services to be rendered. (Genesis/Multicare Bankruptcy News Issue Number 2; Bankruptcy Creditors' Service Inc.) GNI GROUP INC: Moodys' Downgrades 10.875% Sr Unsecured Notes ------------------------------------------------------------ Moody's Investors Service downgraded to Caa3 from B2, the rating on GNI Group, Inc.'s ("GNI") $75 million issue of 10.875% senior unsecured notes due 2005. The senior implied rating is Caa3 and rating outlook is negative. The downgrade is prompted by the company's disclosure that it will be missing its July 15, 2000 interest payment on its senior notes. Further, the downgrade reflects Moody's concern with GNI's inability to obtain alternative financing and the Moody's belief that the company restructuring is necessary to remain as a "going concern". The GNI Group has been operating under a forbearance agreement with its senior secured lenders, which will expire on July 10, 2000. Inability to obtain an extension on the forbearance agreement would result in default on $12 million senior secured revolving facility and $75 million senior unsecured notes. The current liquidity crisis, heightened by decreasing profitability due to lowered demand for higher margin specialty chemical services and the expansion of lower margin waste management services, suggests that GNI Group, Inc. will not be able to return to profitability in the near term even with appropriate resizing of its debt. Moody's believes that GNI will need to restructure its operations. The GNI Group, Inc., headquartered in Deer Park, Texas, is an operator of commercial deepwells for hazardous and non-hazardous waste in the U.S. and is a manufacturer of specialty chemicals. GOTHIC ENERGY: Chesapeake Buys Rival Energy ------------------------------------------- According to a report in the New York Times on July 1, 2000, Chesapeake Energy Corporation has agreed to buy its rival, Gothic Energy Corporation (GOTHZ: OTCBB) which is based in Tulsa. Oklahoma-based Chesapeake will pay $ 28 million in stock and assume $ 316 million in debt. Chesapeake's purchase will increase its reserves by 25 percent or to 1.6 trillion cubic feet, and will increase its daily production by 22 percent. After the deal Gothic shares were $ 1.50 each. HAMILTON INSURANCE: Seeks Way To Enhance Finances ------------------------------------------------- The Philadelphia Inquirer reports that Hamilton Insurance Co., has been given a deadline "to find a business solution". Spokeswoman Melissa Fox also said that automobile insurer in Fort Washington will face liquidation if they cannot come up with a plan. According to documents filed with the Commonwealth Court that aside from the $ 10 million deficit the company is suffering from last year it has liabilities totaling to $ 36 million, while $ 26 million only for its assets. Carmen J. Cocca Jr. and Charles M. Lederman, both of the Maple Glen section of Horsham Township, Montgomery County, and former Wayne resident Timothy I. McCarthy Sr., who lives in Boca Raton, Fla., owns Hamilton Insurance and are former owners of the Physicians Insurance Co. The insurance company also known as PIC Insurance Group, was declared insolvent in 1998, left losses estimating to $ 320 million by the state guaranty fund that bails out doomed property and casualty companies. HARNISCHFEGER: Committee Taps BDO as Financial Advisor ------------------------------------------------------ The Beloit Committee asks Judge Walsh for permission to retain BDO Seidman to review and analyze financial issues identified by counsel and the Beloit Committee with respect to the Beloit Issues and other related matters. Specifically, BDO will: (1) assist the Beloit Committee in analyzing the claims of the Debtors' creditors and in negotiating with such creditors; (2) assist with the Beloit Committee's identification and analysis of the assets, liabilities and financial condition of the Debtors and of the operation of the Debtors' business; (3) assist the Betoit Committee in its analysis and understanding of inter-company transactions between Beloit and various other Debtor and non-debtor entities; (4) assist the Beloit Committee in its analysis of and negotiations concerning matters related to the terms of plans of reorganization for the Debtors; (5) perform other financial advisory services as may be required and are deemed to be in the interests of the Beloit Committee. Subject to court approval, compensation will be payable to BDO on an hourly basis, plus reimbursement of actual, necessary expenses: Partners and Directors $ 300 - $ 450 Senior Managers $ 225 - $ 325 Managers $ 150 - $ 280 Seniors $ 100 - $ 170 Associates $ 60 - $ 150 The Beloit Committee also agrees to a general retainer for BDO to serve all of the Beloit Committee's purposes because extensive financial advisory services may be necessary in this case, and because the nature and extent of such services are not known at the time of the motion. The Beloit Committee believes that the rates are reasonable standard rates. The Beloit Committee believes that BDO possesses extensive knowledge in the areas of financial analyses relevant to the issues and the employment of BDO is necessary and in the best interests of the Beloit Committee. Accordingly, the Beloit Committee seeks the court's approval for the retention of BDO as financial advisor retroactively to March 31, 2000, the date that BDO commenced doing work on behalf of the Beloit Committee. (Harnischfeger Bankruptcy News Issue 24; Bankruptcy Creditors' Service Inc.) HARNISCHFEGER: Joy Mining Workers Meet With Chase Manhattan Bank ----------------------------------------------------------------- The 73 workers at Joy Mining Machinery in Moss Vale were locked out of their factory more than three months ago over a pay claim and company moves to shut unions out from pay talks. After 12 weeks of protests and rallies, the workers went to Sydney to meet with the heads of the Chase Manhattan Bank which has lent Joy management $750 million to restructure the company. Joy is part of US mining company Harnischfeger Industries, which has filed for Chapter 11 bankruptcy. Australian Manufacturing Workers Union state secretary John Parkin said the delegation today tried to find out more about the restructure from Chase Manhattan, but were thrown out of the bank's Sydney offices. "You think about the kind of money Harnischfeger has got out of this bank, well then why is Joy locking you out for a pittance of pay claim you have got against them for improving an enterprise agreement?" he said. "The guys in this bank are making decision about whether or not to give Harnischfeger $750 million to allow the boss to give them time to lock you out for 12 weeks. "Joy doesn't care about a few week's lost production when they've got that money. All they care about is using the money from this bank to starve you into submission and to starve you out of work." South Coast Labor Council secretary Arthur Rorris said it was appalling that Chase Manhattan was propping up industrial thuggery. The company this week agreed to allow workers to return to work for a four-week trial period. But management threatened workers with another lockout notice if they fail to behave in an appropriate manner or negotiate in good faith. Joy has also sought Supreme Court injunctions against union officials, who were handed subpoenas from the company claiming personal damages of up to $700,000. INNOVATIVE CLINICAL: Substantial Doubt About Going Concern ---------------------------------------------------------- Innovative Clinical Solutions' extensive losses in the past two years, its negative cash flows from operations and its net negative equity, as well as management's assessment that the company will be unable to retire its $100 million 6.75% Convertible Subordinated Debentures due 2003 at maturity raise substantial doubt about its ability to continue as a going concern. The company intends to commence voluntary bankruptcy cases to effect the Recapitalization through a joint prepackaged plan of reorganization of the company and its subsidiaries under chapter 11 of Title 11 of the United States Code. Virtually all of the company's operations are conducted through its subsidiaries. Because the Debentures are guaranteed by certain of the company's subsidiaries and because its operations are conducted through its subsidiaries, Innovative believes it prudent that all of its subsidiaries participate in any bankruptcy proceeding in order to extinguish any guarantor liability under the Debentures and to avoid potential disruption to its businesses. Unless extended, Debentureholders will have until 5:00 p.m. on July 12, 2000 to vote on the Prepackaged Plan. If the company receives the requisite acceptances of the Prepackaged Plan, the company and its subsidiaries intend to commence the bankruptcy cases. The company anticipates that the bankruptcy cases will be commenced before it is in default on the next interest payment on the Debentures which is due on June 15, 2000 and is subject to a 30 day grace period thereafter. However, the commencement of the bankruptcy cases would constitute an event of default under the Indenture governing the Debentures. For the quarter ended April 30, 2000 the company has net revenues of $25,654 with net losses of $7,850. In the same quarter of 1999 net revenues were $60,664 and net losses $11,185. K-TEL: Lays Off More Than 100 Employees --------------------------------------- Music retailer K-Tel International said it fired 123 employees to try to stop growing losses. Of the cuts, 88 were workers in Karben, Germany, who lost their jobs when K-Tel shut down its German subsidiary June 30. The other 35 were at the company's headquarters and warehouse in this Minneapolis suburb. The German division accounted for nearly 21 percent of K-Tel's revenue in the year ended June 30, 1999, but it reported losses of $1.6 million. The company said Thursday that K-Tel now employs 77 people in the United States, down from more than 100. A year ago, the company had 195 workers in the United States and Europe. K-Tel said in a prepared statement that cost savings from the closing, the U.S. layoffs and an earlier consolidation of its London operations should total $4 million in the current fiscal year, which began July 1. Closing the German operations will result in a $950,000 charge in the quarter ending June 30. K-Tel lost $4.6 million on sales of $47.4 million through nine months ended March 31. In May, Nasdaq warned K-Tel that it no longer met the requirements for continued listing on the national market system. A delisting would hurt K-Tel's chances of raising additional money, but the company's stock is not widely traded. More than 40 percent of it is in the hands of its founder, Philip Kives, who got his start selling pots and pans on the fair circuit in Canada in the 1950s. Kives, a pioneer in using television to sell household products such as the Veg-O-Matic and music compilation albums such as "Hooked on Classics", founded K-Tel - short for Kives Television - in Winnipeg in the early 1960s and expanded to the Twin Cities in 1968. The company grew rapidly in the 1970s, but a diversification effort that included oil exploration led to bankruptcy in 1984. When the company announced in April 1998 that it was remaking itself as an Internet retailer, its stock soared. But troubles have followed. Current President Ken Onstad is the third in less than two years. Last July the company sold its Finnish division in order to raise much-needed cash. And K-Tel ended up paying $600,000 to an investor group last year after it backed away from a private stock sale. Music sales slid almost 50 percent in the three months ending March 31. Consumer product sales in the same period fell 18.2 percent, and sales over its Web site fell 23 percent, to $255,000. K-Tel shares were unchanged Friday morning at $1.97 on the Nasdaq, down from a 52-week high of $11.75 last November. LACLEDE STEEL: Higbee Named President and CEO --------------------------------------------- David A. Higbee was named president and chief executive officer of this steel company. He succeeds Thomas Brew Jr. in these positions. Mr. Brew is leaving the company to pursue other interests. In January, Mr. Higbee retired from AK Steel Holding Corp., Middletown, Ohio, where he worked in various management positions, most recently as president of Sawhill Tubular in Sharon, Pa. Laclede Steel is operating under Chapter 11 bankruptcy protection. LESLIE FAY: Ex-Financial Chief, Polishan, Found Guilty of Fraud --------------------------------------------------------------- According to a report in The Wall Street Journal on July 7, 2000, Paul Polishan, former chief financial officer of Leslie Fay Cos., was found guilty of 18 of 21 counts stemming from an accounting scandal that drove the women's apparel maker into bankruptcy- court protection in 1993. Mr. Polishan was convicted of bank fraud, which carries a maximum sentence of 30 years. He also was found guilty of multiple counts of wire and securities fraud. Mr. Polishan, who was indicted in 1996, will be sentenced in October. The criminal investigation began seven years ago, shortly after Leslie Fay disclosed accounting irregularities. The company eventually had to restate earnings, reversing $81 million of erroneously reported profit. In the wake of the accounting irregularities, the company filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. Leslie Fay emerged from bankruptcy-court protection in 1997. Donald Kenia, a former Leslie Fay controller, in 1994 pleaded guilty to making false statements to the Securities and Exchange Commission and agreed to cooperate with the government's investigation. He was a key witness against Mr. Polishan. Mr. Kenia admitted to making some false entries in the company's books beginning in the last quarter of 1991 and continuing through 1992. The false entries related to inflated inventory adjustments and a reduction in cost of goods sold, and as a result, the company reported enhanced profits for those periods. In 1997, top officers and directors at Leslie Fay agreed to pay $34.7 million to settle a consolidated class-action suit filed by shareholders, who had alleged securities fraud. Among other things, the suit charged that the officers' bonuses were bolstered by the inflated earnings. MCA FINANCIAL: Files Chapter 7 In Detroit ----------------------------------------- Detroit Free Press reports that MCA Financial Corp. filed a Chapter 7 liquidation plan with the U.S. Bankruptcy Court in Detroit. Creditors will have a faint sign of getting paid from the millions of unpaid bills they have with MCA. According to Ralph McDowell, "This is a plan to accomplish what we haven't been able to accomplish, [and] it doesn't guarantee all creditors will get paid. I think it's their best opportunity for some recovery," an attorney from Bodman, Longley & Dahling in Detroit. The company may have a total of $ 48.2 million to be distributed if pending lawsuits are settled and $ 7.8 million if worst comes to worst. NEW AMERICAN: Order Approves Counsel to Committee ------------------------------------------------- On June 14, 2000, the US Bankruptcy Court, Middle District of Tennessee entered an order approving the appointment of Garfinkle, McLemore & Walker, PLLC as counsel to the Official Unsecured Creditors Committee of New American Healthcare Corporation et al. OAKWOOD HOMES: Moody's Lowers Debt Ratings ------------------------------------------ Moody's Investors Service downgraded Oakwood Homes Corporation's debt ratings as follows: 7.88% $125 million senior notes due 2004 to Caa2 from B3 8.13% $175 million senior notes due 2009 to Caa2 from B3 8% $17 million reset debentures due 2007 to Caa2 from B3 $175 million secured revolving facility to B3 from B2 Oakwood Homes Corporation's senior implied rating was lowered to Caa1 from B2 and the issuer rating was lowered to Caa2 from B3. The outlook is negative. The downgrades and negative outlook reflect the company's continued difficulties, including: � negative operating income of $22 million for the first six months of fiscal 2000 � weakening credit measures � concerns regarding the company's continued access to funding in part attributable to the near term maturity of its credit facility � continued problems within the company's financial services segment � significant contingent liabilities Moody's maintains two short term concerns about Oakwood's liquidity. The first concern centers on the maturity and future availability of Oakwood's $125 million revolver expiring in November 2000. Moody's notes Oakwood will likely not meet certain covenants in the latest quarter, ending 6/30/00. To date, the banks have waived all covenants through June, should they occur. The second concern is the full usage on the $125 million revolver is not generally available as a result of borrowing base limits, with respect to collateral currently securing the facility, which has drifted around $100 million. Despite the fact at the end of each quarter the revolver demonstrates a low level as a result of the revolver being paid down from the completion of a securitization, on an interim bases, usage is higher. The maximum usage this past quarter was $68 million and the minimum unused availability was $35 million. Oakwood Homes Corporation, headquartered in Greensboro, North Carolina, is engaged primarily in the production, sale, financing, and insuring of manufactured housing throughout the United States. PANDA GLOBAL: Downgraded To 'CCC' By Fitch ------------------------------------------ Fitch has downgraded its rating on Panda Global Energy Co.'s (PGE) $155 million issuance of 12.5 percent senior secured notes (notes) due 2004 to 'CCC' from 'B-'. PGE remains on Watch Negative. Fitch's rating action reflects a heightened level of uncertainty for PGE to meet its debt service obligations under the notes, which were issued in connection with its project to build out a 2x50 MW coal-fired cogeneration facility in Luannan County, Tangshin City, in the People's Republic of China (PRC) (Luannan Project). Although the project is operational, it continues to await the outcome of its tariff application, which has been pending approval for approximately one year. The testing tariff currently being received by the project is significantly less than original forecasts. The uncertainties over the amount of the approved tariff, coupled with significant liquidity constraints that stem from both the depletion of the debt service reserve and the potential for acceleration of principal repayment under a lawsuit filed by noteholders underscore the downgrade and the Watch Negative status. Debt service on the notes is heavily reliant on the Luannan project; the initial, average pro forma cash flows from the Luannan project represented approximately 85 percent of PGE's total projected cash flows over the life of the notes. The remaining 15 percent of PGE's cash flows were earlier forecasted to be derived from the residual distributions from two U.S.-based cogeneration facilities, Panda-Rosemary (rated 'BBB-') and Panda- Brandywine. Importantly, the notes are structurally subordinate to approximately $420 million of project level debt at these two projects, as well as debt at Panda Funding Corp. (PFC), an intermediate special purpose entity and financing node rated 'BB-'. PATHMARK: Bondholders to Vote on Ownership Transfer -------------------------------------------------- According to a report in The Philadelphia Inquirer on July 7, 2000, July 7 is the deadline for Pathmark Stores Inc.'s bondholders to vote on an agreement that would eliminate $ 960 million in bond debt and give them full ownership of the company. If the exchange is approved, the Carteret, N.J., subsidiary of Supermarkets General Holding Corp. will file a prepackaged Chapter 11 bankruptcy and begin transfer of Pathmark to the bondholders, Harvey Gutman, a Pathmark senior vice president, said yesterday. Pathmark then would be a publicly traded company, with virtually all the shares held by the current bondholders. The company still would have another $ 600 million in debt. Gutman said the result of the bondholders' vote would be announced next week, but no layoffs or store closings were expected. Pathmark operates 135 supermarkets in the Philadelphia and New York metropolitan areas. The company's debt load can be traced to a 1987 buyout of the chain by a group led by Merril Lynch & Co. By eliminating the $ 960 million in debt, one analyst claimed that the company is putting itself in a position to be acquired. "The game here is to clean up the balance sheet and find a buyer for the chain in a relatively short period of time," he said. Last year, Pathmark found a white knight -- Royal Ahold, a Dutch supermarket conglomerate that also owns the Giant and Super G stores in the region. Royal Ahold offered to buy the chain for $ 1.75 billion, erasing all of Pathmark's $ 1.5 billion in debt in the process. But the Dutch company backed out after U.S. regulators raised antitrust concerns. Last month, Pathmark officials said they planned to file for bankruptcy protection to reduce the bond debt. The only shares that would not be owned by the bondholders would be those earned by Pathmark executives under a stock option program. POWER PLUS: Reports Pared Down Operations ----------------------------------------- The primary activities of Power Plus Corporation fall into two categories: investing in operating companies; and carrying on business through subsidiary operating companies. Accordingly, the company has been the parent of subsidiaries that hire employees, procured merchandise for resale, purchased or built capital assets and carried on business. Since its inception, the company has invested in specialty retail businesses operating in Canada and the US, primarily selling batteries and battery-related products, wireless telecommunications products and portable fashion electronics. Working through a long-term plan of reorganization, with considerably pared down operations, the company reports fiscal year ended January 31, 2000 net revenues were $23,290 as compared to $585,035 in the prior fiscal year. The net losses for the January 31, 2000 fiscal year were $975,938, whereas in the prior year net losses were $4,541,551. PRISON REALTY: Moody's Downgrades Securities -------------------------------------------- Moody's Investors Service has lowered the senior unsecured debt rating of Prison Realty Trust, Inc., to Caa1 from B2, the senior secured bank facility rating to B3 from B1, and the cumulative preferred stock rating to "ca" from "caa". These ratings, which had been placed under review for downgrade in December 1999, remain under review for further downgrade. These rating actions reflect increased uncertainty regarding Prison Realty's restructuring in light of the REIT's recent agreement to terminate Pacific Life Insurance Company's commitment to backstop a $200 million equity rights offering by Prison Realty. According to Moody's, these rating downgrades broadly reflect the strategic and financial difficulties facing Prison Realty and its largest lessee, Corrections Corporation of America. Aggressive growth during a challenging capital markets environment and weak operating performance led the REIT to breach its bank lending facility covenants, and to fail to satisfy conditions precedent to an agreed-upon equity infusion by an investor consortium that included Fortress Investment Group and The Blackstone Group. Moody's noted that Prison Realty's ability to obtain covenant default waivers from its bank group, along with a restricted- purpose increase of $55 million under its credit facility, reflected positive efforts to alleviate financial pressures on the company; however, the ongoing conditions in the waiver agreement could prove difficult for the REIT to satisfy, particularly without the involvement of Pacific Life in its restructuring plan. Prison Realty's announced intention to proceed with certain elements of its restructuring is a positive step, the rating agency noted, yet the ratings remain under review for downgrade to reflect uncertainty over whether the REIT can restructure in a manner satisfactory to its lender constituencies. In the absence of a successful turn around, the waiver agreement will continue to prove onerous to securityholders. Under that agreement, preferred dividends must be omitted until the REIT completes a sizable equity offering, and the bank group obtains the benefit of additional security for its claims. The following ratings were lowered and remain under review for further downgrade: Prison Realty Trust, Inc. - senior unsecured debt to Caa1, from B2; secured bank facility to B3, from B1; cumulative preferred stock to "ca", from "caa"; senior unsecured debt shelf to (P)Caa1, from (P)B2; and cumulative preferred stock shelf to (P)"ca", from (P)"caa". The noncumulative preferred stock shelf remains rated at (P)"ca", under review for downgrade. Prison Realty Trust, Inc. (NYSE: PZN), headquartered in Nashville, Tennessee, USA, is the largest real estate investment trust investing in correctional facilities. The REIT reported total book assets of $2.7 billion, and equity of $1.4 billion, at December 31, 1999. RAYTHEON CO.: Settles Suit Filed by Three Women ----------------------------------------------- Seattle Post-Intelligencer reports on July 3, 2000 that Raytheon Co. last week agreed to settle a discrimination suit brought by three women employees after a federal agency and an arbitrator both found they were passed over for higher-paying jobs. As reported earlier, the company denied doing such, but agreed to settle when the federal Equal Employment Opportunity Commission and an arbitrator found it violated the 1964 Civil Rights Act. The three women have been awarded with $870,000 by the arbitrator. RELIANCE GROUP: S&P Lowers Ratings ----------------------------------- On July 6, 2000, Standard & Poor's lowered its ratings on Reliance Group Holdings Inc. (Reliance) and the members of the Reliance Insurance Co. Intercompany Pool (see list). These ratings remain on CreditWatch, where they were placed on May 26, 2000, with developing implications. Standard & Poor's lowered these ratings because of increasing concerns that Reliance will fail in its efforts to refinance more than $500 million of debt obligations, which are maturing in August and November of this year. The company continues to divest itself of key businesses, which Standard & Poor's believes weakens the company's ability to generate the necessary liquidity to meet its ongoing obligations. Another important consideration is that Reliance retains the run-off of reserves on the businesses it has sold. Standard & Poor's believes this exposes Reliance to potentially significant adverse loss reserve development. Standard & Poor's believes that this, coupled with the projected negative operating cash flow, creates a significant liquidity strain on the company. As a result, Reliance's ability to meet its various obligations at the operating-company and holding-company levels is weak. The developing outlook reflects the pending completion by Leucadia National Corp. (Leucadia) to acquire 100% of the outstanding shares of Reliance. Leucadia has extended the time frame for completing its due diligence, which Standard & Poor's believes threatens Reliance's ability to maintain adequate business relationships. Combined with the uncertainty surrounding the adequacy of reported loss reserves, Standard & Poor's expects Reliance's financial condition to deteriorate further. Standard & Poor's will continue to monitor the progress of Reliance's discussion with Leucadia. -- CreditWire RATINGS LOWERED AND KEPT ON CREDITWATCH WITH DEVELOPING IMPLICATIONS To From Reliance Group Holdings Inc. Counterparty credit rating CCC BB- Senior debt CCC BB- Subordinated debt CCC BB- MEMBERS OF THE RELIANCE INSURANCE CO. INTERCOMPANY POOL Reliance Insurance Co. of PA Reliance Insurance Co. of Illinois Reliance National Indemnity Co. Reliance National Insurance Co. Reliance Universal Insurance Co. United Pacific Insurance Co. Reliance National Insurance Co. (Europe) Ltd. Counterparty credit rating B BBB- Financial strength rating B BBB- SAFETY KLEEN: Applies To Employ Lazard Freres --------------------------------------------- The Debtors seek the Court's authority to employ Lazard Freres & Co., LLC as their financial advisors and investment bankers in these chapter 11 cases, pursuant to 11 U.S.C. Sec. 327(a). Under the terms of an Engagement Letter dated as of March 30, 2000, in exchange for: (1) a monthly fee of $150,000 per month, beginning July 20, 2000 (reduced from $200,000 per month prior to the Petition Date); (2) a cash fee equal to $8,500,000 upon the completion of the Restructuring (with all monthly fees, beginning with the July 20, 2000 installment, to be credited against this cash fee); and (3) reimbursement for reasonable out-of-pocket expenses, and other fees and expenses, including reasonable expenses of counsel, if any, to the extent described in a separate Indemnification Letter; Lazard will provide the Debtors with: (a) a review and analysis of the Debtors' businesses, operations and financial projections; (b) an evaluation of the Debtors' debt capacity in light of their projected cash flows; (c) assistance in the determination of an appropriate capital structure for the Debtors; (d) a determination of a range of values for the Debtors on a going concern basis and on a liquidation basis; (e) advice with respect to tactics and strategies for negotiating with the Lenders; (f) advice with respect to, and participation in meetings or negotiations with the Lenders in connection with any restructuring, modification, or refinancing of Existing Debt Obligations; (g) advice on the timing, nature, and terms of any new securities, other consideration, or other inducements to be offered pursuant to the Restructuring; (h) assistance in preparing any documentation required in connection with the Restructuring; (i) an assessment of the Debtors' ability to procure new lenders and/or investors to replace, repay, or settle with the Lenders; (j) assistance in arranging financing for the Debtors; (k) advice with respect to, and attendance at, meetings of the Debtors' boards of directors and their committees; (l) the provision of expert testimony, as necessary, in hearings before the Bankruptcy Court; and (m) the provision of other appropriate general restructuring advice. (Safety-Kleen Bankruptcy News Issue 4; Bankruptcy Creditors' Service, Inc.) SAFETY-KLEEN: Seeks To Sell 44% Stake in Waste Disposal Company --------------------------------------------------------------- According to an article in The Wall Street Journal on July 7, 2000, Safety-Kleen Corp. is seeking permission from a Wilmington, Del., federal bankruptcy court to sell its 44% stake in a European waste-disposal company to Electra European Fund LP, its joint-venture partner, for $35.7 million. A Safety-Kleen spokesman said the sale is part of the Columbia, S.C., firm's plan to sell noncore assets in connection with its June 9 petition to reorganize under Chapter 11 of the Bankruptcy Code. The purchase accord stipulates that an order approving the sale be issued no later than July 19. The joint venture, SK Europe Inc., collects, processes and recycles hazardous and industrial waste. Electra has a 44% stake; the venture's management owns 12%. SHONEY'S: NYSE To Suspend Trading of Common Stock ------------------------------------------------- According to an article in The Wall Street Journal on July 7, 2000, The New York Stock Exchange said it will suspend trading of common stock and liquidated yield option notes of Shoney's Inc. because its stock and market capitalization don't meet the Big Board's minimum requirements. The exchange also said it will seek permission from the Securities and Exchange Commission to delist Shoney's. Shoney's had an average closing stock price of less then $1 for 30 consecutive trading days. Shoney's said it plans to trade on the over-the-counter Bulletin Board by Wednesday. SILVER CINEMAS: Committee Taps Milbank, Tweed --------------------------------------------- The Official Committee of Unsecured Creditors of Silver Cinemas International, et al. seeks court approval to retain and employ Milbank, Tweed, Hadley & McCloy LLP as counsel. The firm will charge its customary hourly rates which range from $200 to $600 per hour for attorneys and $115 to $160 for legal assistants. SITE TECHNOLOGIES: Order Confirms Liquidation Plan -------------------------------------------------- On June 15, 2000 the order confirming Site Technologies Inc.'s First Amended Plan of Reorganization was filed with the United States Bankruptcy Court for the Northern District of California, San Jose Division. The Plan calls for the liquidation of all available assets of the debtor, Site Technologies, Inc., and the pro rata distribution of available funds to shareholders of record as of the distribution date, which distributions should occur as soon as practicable after the payment of all creditor claims and expenses of administration, and post-confirmation expenses. After such distribution, if any, all interests of equity security holders shall be extinguished. As of June 15, 2000, there were 8,516,384 shares of issued and outstanding common stock of the debtor. There are no shares reserved for future issuance. SITI-SITES COM: In Early Stages Of Developing Websites ------------------------------------------------------ SITI-Sites.com, Inc., a Delware corporation, and its subsidiary, Tropia, Inc., a Delaware corporation is an Internet media company seeking to establish websites for the marketing of products and services. The company's four current websites and an affiliated website relate entirely to the music industry, and primarily to independent artists not affiliated with major record companies. The company is still in the early stages of developing its music sites and business, and its revenues are negligible. It has written off all development and operating costs. In addition, the company made a $500,000 investment in a music CD custom compilation and promotion company, Volatile Media, Inc., which does business as EZCD.com. The investment has been written off as of March 31, 2000 because of uncertainties in EZCD's financing plans and ability to continue operations. The company also entered a content and technology sharing agreement with EZCD.com pursuant to which they were to share music content and technology, which has not yet been adequately performed by EZCD and which therefore may result in litigation. SITI currently employs a total of 20 employees and consultants, as compared to 2 employees in January, 1999. Figures released by the company for the fiscal year ended March 31, 2000 (reported in 1,000's) show sales of $93 and losses of $1,708. STONE & WEBSTER: Shaw Group Wins Bid For Assets ----------------------------------------------- The Shaw Group Inc. announced on July 7, 2000 that it was the successful bidder in the auction for the business of Stone & Webster, Inc. ("S&W") in a proceeding under Chapter 11 of the U.S. Bankruptcy Code. In the transaction, which is subject to bankruptcy court approval, Shaw will acquire substantially all of the assets and assume certain liabilities of S&W, for a total purchase price of approximately $38 million in cash and approximately 2.5 million shares of Shaw Common Stock. Shaw will also assume liabilities with a book value of approximately $450 million and acquire assets with a book value of approximately $600 million. The combination of S&W's business, with its premier engineering capabilities and 110-year history, and Shaw's business, with its turnkey capabilities and extensive expertise in the worldwide piping industry, will create a unique, new model in the engineering and construction business. Moreover, Shaw's unparalleled experience and S&W's recognized leadership in the worldwide power market will form a dominant new force in the global power industry. The Shaw and S&W businesses had revenues of approximately $1.7 billion in 1999, and will move forward with a total backlog of work exceeding $2.0 billion. J. M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive Officer, stated, "After completion of the financial, operational and legal due diligence, we are very excited to announce that we have made a successful bid for the assets of Stone & Webster. With this combination, we believe that Shaw will be a leader in setting a new paradigm in an industry that has warranted change. Stone & Webster has a recognized name in the industry, and its premier engineering capabilities complement our strategy and recent strengthening in the power market, particularly our announced joint venture with Entergy. We plan to move quickly in closing the transaction, and upon doing so, will focus on integrating core capabilities and divesting non-core assets." Shaw will continue to be headquartered in Baton Rouge, Louisiana, with operating facilities worldwide. The acquisition will initially bring Shaw's total employee count to approximately 13,000 people. Shaw anticipates closing the transaction as early as next week. TBS SHIPPING: Case Summary and 20 Largest Creditors --------------------------------------------------- Debtor: TBS Shipping International Limited c/o U.S. Agent: TBS Shippings Svcs. Inc. 612 East Grassy Sprain Road Yonkers, NY 10710 Type of Business: Deals with ocean transportation services, primarily liner/parcel services. Chapter 11 Petition Date: July 6, 2000 Court: S. District of New York Bankruptcy Case No.: 00-20398 Judge: Adlai S. Hardin, Jr. Debtor's Counsel: Audrey S. Trundle Gibson, Dunn & Crutcher, LLP 200 Park Avenue New York, NY 10166-0193 Tel:(212) 351-3923 Fax:(212) 351-5253 Email: atrundle@gdclaw.com James P. Ricciardi Rosalie W. Gray Gibson, Dunn & Crutcher, LLP 200 Park Avenue New York, NY 10166-0193 Tel:(212) 231-4000 Total Assets: $ 104,973,737 Total Debts: $ 134,458,966 20 Largest Unsecured Creditors United States Trust Guarantee of 10% Ser A First Preferred Ship Mortgage Notes Due 20 [$118,185,995] Shanghai Gd ChangXing Marine Engineering Co., Ltd M&R/Drydocking $132,324 Aboitiz Jebsen Bulk Crew wages & benefits Transport Corp. along w/other related expenses $112,040 Mobil Oil Corp. Lube oil $ 76,179 Sea Star Shipping Corp. Crew wages/Manning Fee $ 60,567 Intermodal Shipping, Crew wages & benefits Inc. along w/other related expenses $ 42,269 Azuma Kako Co., Ltd. M&R/M.E. service $ 37,969 MacKay Communication M&R/Electronic equipment/ Radar radiomat/Service $ 28,715 MacGregor (USA) Inc. M&R/Cranes/Hatchcovers $ 24,692 First Marine Services Inc. M&R $ 13,464 Condor Mar Mgmt Repairs/Rental of Dynanometer $ 12,436 Inchcape Machinery Services M&R/Parts Supplier $ 9,628 Fuji Trading Co., Ltd. M&R/Stores $ 9,450 Unitor Ships Services, Stores/Chemmicals/Fuel Inc. oil analysis $ 6,236 Boyd Steamship Port Agent/Assist vessel while in port $ 6,236 John Crane Marine, USA Repairs $ 5,408 Peck and Hale Stores/Deck general $ 3,968 Japan Radio Co. Ltd. M&R/Electronic equipment/ Radar radio mat/Service $ 3,387 Astoria Travel Center, Inc. Crew travel & others $ 3,146 Kyodo Corporation, USA Shipping and Trade M&R $ 2,431 TBS SHIPPING: Provides For Restructuring of Notes ------------------------------------------------- TBS Shipping International Limited (the "Company") filed a pre-negotiated chapter 11 reorganization case providing for the restructuring of its 10% First Preferred Ship Mortgage Notes Due 2005 (the "Notes"). The restructuring is the result of a previously announced agreement with holders of a substantial majority in principal amount of the Notes. Highlights of the reorganization include the issuance to existing noteholders of $50 million of amended and restated First Preferred Ship Mortgage Notes (with enhanced collateral and guarantor coverage) in addition to preferred stock, common stock and common stock warrants. The restructuring remains subject to definitive documentation and approval of the U.S. Bankruptcy Court, which the Company anticipates occurring in the third quarter of this year. The case, as well as a companion case in Bermuda, covers the Company, its parent and only its vessel-owning direct and indirect subsidiaries, none of which are involved in the operations of TBS Pacific Liner, Ltd., TBS Latin America Liner Ltd., and TBS North America Liner, Ltd. (the "Liner Companies"). The restructuring of the Notes should not negatively impact the business of the Liner Companies, which is continuing on a normal basis. VISTA EYECARE: Seeks Extension To File Schedules and Statements --------------------------------------------------------------- Vista Eyecare, Inc. and its debtor affiliates seek additional time through and including July 14, 2000 to file their schedules and statements of financial affairs. The debtors state that they have been diligently compiling and transcribing the information necessary to complete their schedules and statements of financial affairs, while, at the same time stabilizing and operating their business. WISER OIL: Shareholders Report Holdings --------------------------------------- The following parties and entities hold the listed quantities of the common stock of Wiser Oil Company: William R. Dimeling, Richard R. Schreiber and Steven G. Park, 2,469,600 shares with sole dispositive and shared voting powers, representing 19.1% of the outstanding common stock of the company; Douglas P. Heller, 3,980,730 shares with shared voting power, and 1,511,130 shares with shared dispositive power, 3,980,730 shares in the aggregate representing 30.8% of the outstanding common stock of Wiser Oil; ********* 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. 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