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/raid1/www/Hosts/bankrupt/TCR_Public/000713.MBXT R O U B L E D C O M P A N Y R E P O R T E R Thursday, July 13, 2000, Vol. 4, No. 136 Headlines AEI RESOURCES: Auditors Expresses Concern BARAMI: Announces Sale of Lease BRISTOL HOTEL: In process of Major Modernization CONSECO: Wendt Loses Money on the Deal COSTILLA ENERGY: Court Rules on Exclusivity DECORA INDUSTRIES: Quarter Loss Posted; Default Notice Received FLOORING AMERICA: Announces New CEO and President FRUIT OF THE LOOM: Seeks To Exercise Remedies Against Farley GENESIS/MULTICARE: Applies to Employ Blank Rome GULF STATES: Lays Off Workers As Part Of Cost Reduction Plan HARNISCHFEGER: Australian Workers Go on Strike HARNISCHFEGER: Objects To Rockwell's 59 Proofs of Claim HARRISBURG EAST: Court Approves Sale ILLINOIS HEALTHCARE: State Regulators To Take Over INTEGRATED HEALTH: Motion To Establish Bar Date IPCS: S&P Rates $152 M Senior Discount Notes to CCC+ LAROCHE INDUSTIRES: Committee Taps Pachulski, Stang LASON INC: Future In Question LOEWEN: Court Approves Expanded Scope of Zolfo Cooper Engagement LUMENYTE: Fireman's Fund Objects to Disclosure Statement MASTER GRAPHICS: Case Summary and 20 Largest Unsecured Creditors MAURICE: To Complete Liquidation Sale by September MEMORIAL MEDICAL: Lays Off 57 People NAGASAKIYA CO.: Files for court protection NISSAN MOTOR: In talks to sell 20 affiliates NUTRAMAX: Announces Completion of Financial Transactions PREMIER GRAPHICS: Case Summary and 20 Largest Unsecured Creditors SAFETY-KLEEN: Applies To Employ Arnold As Environmental Counsel SHONEY'S INC: NYSE Suspends Trading, Seeks to Delist SOGO CO.: Files For Bankruptcy SOGO CO.: To ask former chairman to help cover debt TOYSMART: Disney Offers To Buy Customer List TRI-VALLEY GROWERS: Officials Explain Bankruptcy Reorganization URANIUM RESOURCES: Groups Oppose Further Mining VENCOR: Ventas Files $4 Billion Proof of Claim VISKASE COMPANIES: Moody's Downgrades $219m Sr Unsecured Notes ********* AEI RESOURCES: Auditors Expresses Concern ------------------------------------------ According to a report in the Charleston Gazette on July 6, 2000, company auditors expressed their concern about AEI Resources' ability to continue as a "going concern." The Ashland, Ky.-based coal company, might be headed for financial trouble, according to its latest first quarter and 1999 financial report. Addington Enterprises, which changed it name to AEI Resources, blames the recent credit downgrade of Frontier Insurance Co., coal firm's primary reclamation bond provider. Brothers Larry Addington, Robert and Bruce controls the publicly owned AEI Resources and mines in West Virginia, Kentucky, Tennessee, Indiana, Illinois and Colorado. The coal company brags that, in terms of revenue, it is considered as the nation's fourth largest producer of coal for electrical generation and second largest producer of steam coal in Central Appalachia. BARAMI: Announces Sale of Lease ------------------------------- A press release was issued by Arthur Goldstein of the firm of Todtman, Nachamie, Spizz & Johns, providing that a hearing will be held on July 25, 2000 at 9:30 a.m. (the "Hearing") before the Honorable Jeffry H. Gallet, United States Bankruptcy Judge, One Bowling Green, New York, New York 10004, at which time the Court will consider the motion (the "Motion") of Barami Enterprises, Inc., et al., debtors and debtors-in-possession for an order (i) authorizing the Debtors to sell to Khaneh, Ltd., its interest in a certain lease dated June, 1995 between Prospect Resources, Inc., assignee of L&B 57th Street, Inc. ("Landlord") and Barami of 57th Street, Inc. for store premises at 37 West 57th Street, New York, New York (the "Lease") for a purchase price of $ 150,000.00 and providing to the Landlord a cash security deposit or a letter of credit in the amount of $72,000.00 to replace the existing letter of credit held as security under the Lease; or, in the alternative, approving the sale of the Lease to such entity as shall at or prior to the Hearing submit, subject to the conditions set by the Court, a higher and better offer for the Lease. The Debtors will consider higher or better offers for the Lease at or prior to the Hearing with the initial higher or better offer to be not less than $10,000.00 above the purchase price set forth above. In addition, as a condition of making a higher or better offer, such bidder shall be required to tender a deposit of $25,000.00 prior to the Hearing and to provide the Debtors and the Landlord with satisfactory proof of such bidder's ability to provide the Landlord with adequate assurance of future performance. BRISTOL HOTEL: In process of Major Modernization ------------------------------------------------ After almost three decades of revolving ownership, bankruptcy and general disrepair, downtown San Diego's Bristol Hotel is under new ownership and is in the process of a major modernization, according to a newswire report. The hotel was purchased 12 months ago for $6 million by San Francisco's International Hotel Association Hotel Group, which owns several other hotels in California including the Best Western Seven Seas Lodge in Mission Valley, the Union George Hotel in San Francisco and the Creekside in Palo Alto. After the new owners of the Bristol Hotel purchased the property, $3 million was allocated to transform the aging property into a more modern and stylish boutique hotel similar to those found in San Francisco. CONSECO: Wendt Loses Money on the Deal -------------------------------------- According to a report in The Wall Street Journal on July 12, 2000, taking the top job at Conseco Inc. cost Gary C. Wendt $20 million -- even after the $45 million in cash he is getting to assume the position, Mr. Wendt said in an interview. Mr. Wendt said that under a noncompete agreement with his former employer, General Electric Co., he would have received more than $65 million had he remained "in a hammock" an additional 21 months. Instead, Conseco issued a warrant for 10.5 million shares of its common stock to a finance unit of GE to release Mr. Wendt from that agreement. And Wendt forfeited the $20 million or so to give himself an incentive "to really turn this baby around," he says. As to how he plans to do that, Mr. Wendt declined to offer specifics. He said he envisioned a "slimmed-down, streamlined" Conseco. Wendt was quoted as saying that he had no plan yet for repaying nearly $1 billion in Conseco debt coming due in September, "but I'm not panicked." He said he is intent on restoring the company's credit ratings, which have been downgraded in recent months, and on reducing its debt. "One option is to look for a partner in the finance company," he said, but mentioned no names. The article stated that the finance company, a maker of mobile- home loans formerly known as Green Tree Financial Corp., is Conseco's largest problem. Conseco bought the company in 1998 for $6.44 billion, but investors balked at the deal and sent Conseco's stock plummeting. Under Wendt's compensation package, the CEO's annual salary will drop over the next five years to around $1 million a year, which he described as comparable to the salaries received by CEOs of similar companies. COSTILLA ENERGY: Court Rules on Exclusivity ------------------------------------------- The Honorable Ronald King, US Bankruptcy Court, Western District of Texas entered an order on July 5, 2000, providing that if the debtor files a plan of reorganization on or before July 10, 2000, then the deadline for obtaining acceptances to such plan shall be September 8, 2000; provided however, that the court reserves consideration of the limited objection of the creditors' Committee to debtor's motion to extend the period of exclusivity to solicit acceptances of debtor's plan, until the hearings set in this case on July 20, 200 when the court may modify this order based upon the limited objection. DECORA INDUSTRIES: Quarter Loss Posted; Default Notice Received --------------------------------------------------------------- According to a report in The Wall Street Journal on July 12, 2000, Decora Industries Inc., Fort Edward, N.Y., a maker of surface-covering products, said it received a notice of default regarding recent financing and that "management is in discussion with lenders to achieve mutually agreeable accomodations." Decora also said it posted a loss in the fiscal fourth quarter. Company officials declined to comment on the default or the fourth-quarter results. For the quarter ended March 31, the company had a loss of $19.1 million, or $2.49 a share, compared with a profit of $596,000, or seven cents a diluted share, a year earlier. Sales fell 8% to $36.7 million from $39.9 million. Decora said in a release that the loss was affected by unfavorable foreign-currency translation and reduced sales associated with integration of assets bought from Newell Rubbermaid Inc. FLOORING AMERICA: Announces New CEO and President ------------------------------------------------- Flooring America Inc. (NYSE:FRA) announced that, in connection with its Chapter 11 bankruptcy proceeding, it has elected Michael Worrall as its new Chief Executive Officer and President. Mr. Worrall's expertise will provide direction to the Company during its efforts to restructure and reorganize its business. Mr. Worrall's background is primarily in retail restructuring and reorganizing. Recently, Mr. Worrall served as President and Chief Operating Officer of Sports and Recreation Inc. of Tampa, Fla. The Company also announced today that David L. Nichols, formerly Chairman of the Board, Chief Executive Officer and President, and three other officers, Leonard Thill, Jim Frede and Sue Salg, have left the Company. Separately, the Company announced that F.G. "Buck" Rodgers had resigned from its Board of Directors effective June 19, 2000. Located in the Atlanta suburb of Kennesaw, Ga., Flooring America filed for bankruptcy protection on June 15, 2000. FRUIT OF THE LOOM: Seeks To Exercise Remedies Against Farley ------------------------------------------------------------ William Farley interposed his objection to the Debtors' Motion, arguing that he is not a third party beneficiary and the Debtors only have the right to collect interest, not seize collateral. Mr. Farley explains that the Debtors are trying to collect on the $65 million loan more quickly than they are entitled under the clear terms of the Loan Agreement. Fruit of the Loom tells Judge Walsh that they are tired of Mr. Farley's repeated argument, complaining that he's simply repackaging the same issue he's raised before -- and lost. Mr. Farley is simply stalling, Fruit of the Loom says, since time is on Mr. Farley's side and delay is his goal. The Debtors advised the Court that when this timing issue was first raised, Mr. Farley owed $860,000. The amount has risen to $2,000,000 now. "Unless Mr. Nussbaum," counsel to Mr. Farley, "blows me away with a nine-to-nothing Supreme Court decision on all fours, I am going to rule for the Debtors on that issue. . . . The rights Mr. Farley asserts under Section 10 of the Loan Guaranty, to me, would be an illogical reading of the provision." The Debtors are entitled to collect interest payments and seize the collateral securing the loan. (Fruit of the Loom Bankruptcy News Issue 8; Bankruptcy Creditors' Service Inc.) GENESIS/MULTICARE: Applies to Employ Blank Rome ----------------------------------------------- According to an article in Genesis/Multicare Bankruptcy News Issue 2; Bankruptcy Creditors' Service Inc., Genesis and Multicare apply to employ Blank Rome Comisky & McCauley LLP as their Special Corporate Counsel. Prior to the Petition Date, Blank Rome served as full-service corporate counsel. The Debtors believe that Blank Rome is uniquely qualified to represent them in general corporate matters. Blank Rome submits that there will be no conflict of interest in the proposed retention because Blank Rome will not advise or represent either Multicare or Genesis in any matter that pertains to: (i) the GHV management agreement in respect of the Multicare Debtors; (ii) GHV claims against Multicare Debtors; (iii) financings or (iv) other strategic transactions where the interests of Genesis Debtors may differ from those of Multicare Debtors. Such matters, if any, will be handled by the Genesis Debtors' reorganization counsel, Weil, Gotshal and Manges, LLP, and Richards, Layton & Finger or by the Multicare Debtors' reorganization counsel, Willkie Farr & Gallagher and Young, Conaway, Stargatt & Taylor. Under the proposed employment, Blank Rome will render professional services to GHV and Multicare respectively in connection with : * requirements under the Securities and Exchange Act; * regulatory matters; * press releases and public information; * intellectual property; * pre-Filing Date bank financing; * executory contracts and leases for property; * labor matters; and * will work in coordination with the respective reorganization counsels. GHV also specifies that the proposed retention of Blank Rome will cover matters in connection with NYSE market and the Debtors' obligations under the NYSE Rules for continued listing, Omega REIT and the Oklahoma pharmacy joint venture with Peak Medical Corp., license agreement with LandHope Farms Corp., litigation involving Mary C. Denton, wrongfiil discharge litigation involving Princess McKinley, litigation involving Florence K. McGuire, the Bucks County, Pennsylvania condemnation proceedings, certain joint venture, investment agreement and limited liability company with Milford/Dover ALF, LLC and Capital SHL, LLC, management agreement involving Pennrose Ventures, sale for 543 Kingsley Street, Philadelphia, Pennsylvania, litigation by and among Genesis Debtors and Daniel Veloric Tomahawk Holdings, Inc., Tomahawk Capital Investments, Inc., claims in the matter involving USA, ex rel. John Doe I and John Doe, Network Ambulance Services, Inc.. claims relating to Cromwell Nursing Center, litigation involving Antoinette Patterson, certain financing relating to Peninsula Regional Medical Center, Pennsylvania capital stock tax appeals for fiscal years 1992 and 1995, sale of the stock of Network Ambulance Services, Inc., transactions relating to Eldertrust, Suburban Medical (a GHV subsidiary) in litigation with Gracecare, discrete real property matters in connection with NeighborCare leases, the Amsted/Hilltop/Knollwood option and lease negotiations, Rittenhouse Care Center matters, the sale of the Atlantis facility and a certain Columbus, Wisconsin Lease, With respect to Multicare, Blank Rome will specifically render professional services with respect to the Hoosier East bond refinancing, the sale of Heritage at Longwood facility, the sale of real property located at 72 Cold Hill Road, Mendham, NJ, certain litigation involving Joan Hoffinan, the sale of Multicare Debtor facilities in Ohio, contemplated sale of Multicare Debtor facilities in Illinois and Wisconsin. Subject to Court approval, the Debtors agree to pay Blank standard hourly rates of: Stephen E. Luongo $435.00 Norman E. Greenspan $415.00 Arthur Bachman $415.00 Barry F, Bevacqua $390.00 Richard J. McMahon $370.00 Mark Blondman $365.00 Kathleen McDermott $330.00 Matthew J. Comisky $320.00 Gregory B. Hook $290.00 Steven M. Miller $300.00 Dennis P. McCooe $285.00 James B. Dilsheimer $235.00 Jonathan M. Korn $235.00 Sonia Galindo $210.00 Melissa P. Murawsky $200.00 Robert L. Roshkoff $195.00 Christina L. Vigliotti $195.00 Nancy R. Peterson $185.00 Richard S. Swartz $185.00 William V. McGroarty $185.00 Michael J. Smith $175.00 GULF STATES: Lays Off Workers As Part Of Cost Reduction Plan ------------------------------------------------------------ According to a report circulated by The Associated Press on July 7, 2000, Gulf States announces it has laid off 66 salaried workers and 55 hourly workers as part of a cost reduction plan. The company is attempting to reorganize after declaring bankruptcy on July 1 of last year. As reported earlier, members of United Steelworkers Local 2176 approved a five-year contract with the company that called for a $2 per hour raise over four years. The contract takes effect Oct. 1. HARNISCHFEGER: Australian Workers Go on Strike ---------------------------------------------- Australian workers at companies owned by US mining company Harnischfeger Industries have gone on strike for 24-hours. The vote came in support of 73 workers who have been locked out by Harnischfeger subsidiary company Joy Mining Machinery, in the New South Wales southern highlands. The workers were locked out of their Moss Vale factory more than three months ago over a pay claim and company moves to shut unions out of pay talks. An Australian Manufacturing Workers Union (AMWU) spokeswoman said the decision today by Australian workers to strike for 24 hours may lead to international industrial action against the company. Workers at Harnischfeger's subsidiary company P & H Minepro at Mt Thorley in NSW and at Joy Manufacturing in Rockhampton, Queensland, are involved in the strike. Workers at P & H Minepro in Perth are also expected to walk off the job at the end of shift today. The AMWU said workers voted in favour of the strike because of the company's appalling negotiating record with workers. The strike also comes after Joy management last night handed another lock-out notice to the Moss Vale workers. The notice, for an extra five weeks, came after workers refused to accept an offer to return to work for a four-week trial period. AMWU state secretary Paul Bastian said the workers rejected the offer, because management had threatened them with another lockout notice if they failed to behave in an appropriate manner or negotiate in good faith. Joy Mining has refused to comment to media throughout the dispute. Mr Bastian said the company had been using US bullyboy-style tactics and wanted to rid the workers of the right to union negotiations. As well as locking out workers, Joy has sought a Supreme Court injunction against union officials, who were handed subpoenas from the company claiming personal damages of up to $700,000. Meanwhile, unions have pulled together to stage a fundraiser for Joy workers, who have been prevented from collecting social security benefits under the lock-out notice. The Joy fundraiser will be held tonight at the Harbourside Brasserie, in Millers Point, Sydney. HARNISCHFEGER: Objects To Rockwell's 59 Proofs of Claim ------------------------------------------------------- Rockwell International filed 59 proofs of claim against the Debtors' estates: * one $29,631,333.39 claim against Beloit Corporation; * one $29,631,333.39 claim against Joy Technologies, Inc.; * one $32,131,333.39 claim against Harnischfeger Industries, Inc.; and * fifty-six $32,131,333.39 claim against each of the other Debtors. Beloit believes that it owes Rockwell some amount, but nowhere near $1.8 billion. Rockwell's proofs of claim, the Debtors say, fail to provide sufficient detail to explain the basis for the claims. Beloit has asked Rockwell for additional information. Rockwell has not responded. By this Objection, the Debtors ask Judge Walsh to disallow Rockwell's proofs of claim on five bases: (A) Rockwell has failed to comply with Bankruptcy Rule 3001(c), which requires that a creditor supply documentation sufficient to support its claim to meet its burden of proof. (B) The $2.5 million difference between the Beloit and HII claims relates to a purported guarantee by HII for debts incurred by Joy. Assuming that the guarantee is enforceable, the Debtors say, Rockwell does not specify which Joy affiliate benefits from the guarantee. (C) The Rockwell Claims, the Debtors assert, are based on a flawed premise concerning substantive consolidation. It appears to the Debtors that Beloit is the only party liable to Rockwell. There, of course, has been no substantive consolidation of the Debtors, and "[i]t is highly unlikely that the Debtors' cases will be substantively consolidated," the Debtors say, explaining that, "[t]he Debtors have unique product lines, maintain corporate formalities and have separate relationships with their creditors." (D) The Rockwell Claims inappropriately include claims for certain administrative expenses. (E) The Rockwell Claims must be disallowed under 11 U.S.C. Sec. 502(d) until Rockwell disgorges $1,091,386.73 on account of preferential payments by Beloit to Reliance Electric prior to the Petition Date. (Harnischfeger Bankruptcy News Issue 24; Bankruptcy Creditors' Service Inc.) HARRISBURG EAST: Court Approves Sale ------------------------------------ U.S. Bankruptcy Judge Robert Woodside has approved the sale of the 890,000-square-foot Harrisburg East Mall to Uni-Invest Partnership of Port Washington, N.Y., but it's not a done deal yet. The prospective buyer is still arranging financing for the $46.5 million purchase. According to the agreement approved last week, the schedule for the closing of the sale is set for August 3. ILLINOIS HEALTHCARE: State Regulators To Take Over -------------------------------------------------- The Pantagraph reports on July 6, 2000 that state regulators were granted a court order to take over the Bloomington-based health and accident insurer. The Department of Insurance rules the company insolvent and will oversee the company's existing resources and creditors. Liquidation reportedly began on June 30. Chief liquidator, Richard Darling which has started sorting through financial records says, "It's very similar to what would be considered a bankruptcy situation." Under the state law, health insurers should maintain a surplus of $1.5 million to continue operating. The company reported $500,000 in debt. INTEGRATED HEALTH: Motion To Establish Bar Date ----------------------------------------------- Judge Walrath directs that all proofs of claim must be received at Poorman-Douglas by August 29, 2000. IPCS: S&P Rates $152 M Senior Discount Notes to CCC+ ---------------------------------------------------- Standard & Poor's Tuesday assigned its triple-C-plus rating to iPCS Inc.'s $152 million gross proceeds ($300 million maturity value) 14% senior discount notes due July 15, 2010, issued under Rule 144A with registration rights. At the same time, S&P assigned its single-B-minus rating to iPCS's wholly owned subsidiary iPCS Wireless Inc.'s $140 million secured bank facility. S&P also assigned its single-B-minus corporate credit rating to iPCS and iPCS Wireless. The outlook is stable. The senior discount notes are rated only one notch lower than the corporate credit rating because S&P expects the company's priority obligations, including drawdowns under the bank facility, as a percent of total assets to be less than 30%. According to S&P, the bank loan facility is rated the same as the corporate credit rating. This facility is secured by a pledge of 100% of the capital stock of the borrower and its subsidiaries and a perfected first priority lien on all tangible and intangible, present and future assets of the borrower and its direct and indirect subsidiaries. In the event of a default or bankruptcy, based on S&P's simulated default scenario, it is not certain that a distressed enterprise value would be sufficient to cover the entire loan facility. iPCS is the exclusive provider of Sprint PCS services to midsize cities and rural areas in Illinois, Iowa, Michigan, and eastern Nebraska. Proceeds of the notes, together with the bank facility, contributions from equity investors, and expected new equity issuance, will be used to fund the buildout of the personal communications services (PCS) network, to fund certain additional Iowa properties, to repay some debt, to fund working capital and operating losses, and for general corporate purposes, the rating agency said. LAROCHE INDUSTIRES: Committee Taps Pachulski, Stang --------------------------------------------------- The Official Committee of Unsecured Creditors of Laroche Industries, Inc., and Laroche Fortier Inc. seek authority to employ and retain Pachulski, Stang, Ziehl, Young & Jones PC as co-counsel. The firm will charge its customary hourly rates. The principal attorneys and paralegals presently designated to represent the Committee and its current standard hourly rate are: Laura Davis Jones $365 per hour Rachel S. Lowy $175 per hour Christopher J. Luhlier $175 per hour Cheryl Knotts $90 per hour Co-Counsel in this case is the firm of Wachtell, Lipton, Rosen & Katz. LASON INC: Future In Question ----------------------------- According to a report in Crain's Detroit Business on July 10, 2000, the fate of Lason Inc. remained up in the air Friday as the company talked with banks in hopes of reaching a new loan agreement and faced a beefed up class-action lawsuit filed in U.S. District Court in Detroit. The Troy-based data and document management company has reported substantial losses for two quarters and is unable to meet the terms of loans with lenders. A waiver of the company's credit agreement granted in May expires today. A consortium of banks led by Bank One Corp. has retained Southfield-based Jay Alix & Associates for assistance. Lason has retained Arthur Andersen L.L.P.. The complaint, first filed by Mantese Miller Mantese and Shea P.L.L.C. on Dec. 21, is a consolidated lawsuit that stems from a number of suits filed in late December. Mantese lawyers filed their amended complaint June 30. The lawsuits followed a stock price slide from $23.94 on Dec. 17 to $11.44 on Dec. 20. Lason's stock (Nasdaq: LSON) closed at $2.53 on Friday. The suit names Lason's three top officers: Monroe, president and COO John Messinger, former CFO and executive vice president William Rauwerdink, and several investment firms that did stock analysis or consulting for Lason. The suit alleges Lason executives knew their company was in financial trouble more than a year before they warned stockholders of lower than expected earnings on Dec. 17. Lason issued a press release that day saying earnings would be lower than expected - just eight days after saying there was no reason for stockholders to be concerned about falling stock prices. Company executives have consistently said they were not aware of trouble until after their reassuring Dec. 9 press release was issued. The lawsuit also alleges that Lason executives routinely asked managers to report expected revenue early so quarterly earnings would look better. LOEWEN: Court Approves Expanded Scope of Zolfo Cooper Engagement ---------------------------------------------------------------- In the absence of any objections, Judge Walsh approved the Debtors' Application to expand scope of their engagement of Zolfo Cooper, LLC as Special Financial Advisors and Bankruptcy Consultants. Zolfo Cooper will focus on the implementation of the Business Plan, the development of a plan or plans of reorganization, liquidation and claims analyses and related matters. Specifically, the Debtors desire to expand Zolfo Cooper's engagement to include: (1) advising and assisting management in implementing the initiatives outlined in the Business Plan and in identifying other cost reduction opportunities; (2) assisting the Debtors in interfacing with various constituencies and their professionals, including the preparation of financial and operating information required by such parties or the Court; (3) advising and assisting management in analyzing and developing a plan or plans of reorganization, as well as information to be included in the Debtors' disclosure statement, including a liquidation analysis; (4) advising and assisting the Debtors with claims analyses and management of the claims process; (5) rendering expert testimony concerning the feasibility of proposed plans of reorganization; and (6) providing other services as may be required by the Debtors; The Debtors believe that Zolfo Cooper is well equipped to perform these services and further assist the Debtors in their chapter 11 cases. As the services being provided to the Debtors by Wasserstein and KPMG are focused primarily on the Debtors' capital structure, asset valuation, asset dispositions and accounting and auditing functions, Zolfo Cooper's engagement will not duplicate the roles of these other advisors. (Loewen Bankruptcy News Issue 24; Bankruptcy Creditors' Service Inc.) LUMENYTE: Fireman's Fund Objects to Disclosure Statement -------------------------------------------------------- Fireman's Fund objects to the adequacy of the First Amended Disclosure Statement describing the debtors' Chapter 11 First Amended Chapter 11 Plan of Reorganization. Fireman's objects to the fact that Insiders will not only retain their existing equity interest shares in the debtor, but will also be benefited with promises of continuing employment and continuing salary paychecks. Fireman's wants to know the amounts that such Insiders will be paid. Fireman's also wants an extended discussion of the Colorado claim (Fireman's Fund $16 million claim). Fireman's also states that the debtor neglects to disclse that the reservation of rights regarding this $16 million claim was belatedly asserted more than 14 months after the Colorado claim arose, and after notice of the Fireman's Fund $16 million claims was given to Hartford. An Investor may, according to Fireman's, with that information, give different weight to the prospect5 of a claim back by The Hartford against the debtor once the Hartford is compelled to pay on its $6 million policy. The debtor discloses a possibility of a claim in bad faith, but does not provide the amount of such claim. Nor has the debtor, according to Fireman's, disclosed the fact that such bad faith claim against Hartford is premised upon the Hartford's unreasonable refusal to settle a very large and significant claim against the debtor - the Fireman's claim of $16 million - within the carrier's policy limits of $6 million. The debtor has not pointed out that it has a claim against The Hartford for indemnification as to at least the first $6 million of claims by Fireman's Fund against the debtor. The debtor has disclosed that the payment of the Fireman's $16 million claim "may have a substantial impact upon the distribution to general unsecured creditors." Fireman's Fund asserts that this disclosure is inadequate. "Going from an at best 66% distribution to a very possible 4% distribution is not a "substantial impact" it is a total negation of any rights of a creditor." Fireman's states that the debtor unrealistically states that unsecured claims in excess of $1.1 million will be paid 100%. Fireman's contends that this is impossible with $735,000 "pot plan". Fireman's states that the disclosure as to contracts still provides inadequate disclosure, and that the Disclosure Statement still lacks any reasonable or adequate discussion of feasibility. MASTER GRAPHICS: Case Summary and 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Master Graphics, Inc. A Tennessee Corp. 70 Timber Creek Drive, #5 Cordova, TN 38018 Type of Business: General commercial printing Chapter 11 Petition Date: July 7, 2000 Court: District of Delaware Bankruptcy Case No.: 00-02929 Judge: Peter J. Walsh Debtor's Counsel: Mark S. Chehi Skadden, Arps, Slate, Meagher & Flom, LLP One Rodney Square Wilmington, DE 19801 Tel:(302) 651-3000 John Wm. Butler, Jr. Skadden, Arps, Slate, Meagher & Flom, LLP 333 West Wacker Drive, Suite 2100 Chicago, IL 60606 Tel:(312) 407-0700 Total Assets: $ 187,000,000 Total Debts: $ 256,000,000 20 Largest Unsecured Creditors General Electric Capital Corporation 401 Merritt 7, 2nd Fl Norwalk, CT 06856 Patrick M. Walsh Pursuant to loan Steven F. Campbell greement dated David R. Huett March 15, 1999 $ 49,500,000 Mrs. Mary McMullen, executrix for the estate of Mr. Walter P. McMullen 350 South Yates Road Memphis, TN 38120 Seller Note $ 3,750,000 Mr. Allan Bartel 338 West Sibley Park Ridge, IL 60068 Seller Note $ 1,875,000 Mr. Joseph M. Jensen 6917 North Lexington, Al Niles, IL 60714 Seller Note $ 1,875,000 The Cunningham Group c/o Phoenix Comm. 5664 New Peachtree Road Atlanta, GA 30341-2508 Seller Note $ 1,599,813 Mrs. Margaret McQuiddy executrix for the estate of Mr. David L. McQuiddy, Jr. 711 Spence Lane Nashville, TN 37217 Seller Note $ 1,502,948 Mr. Wendell Burns 1907 Crutchfield Street Chattanooga, TN 37406 Seller Note $ 1,215,105 H. Henry Hederman, Jr., Trustee Gail Hederman Wallace, Trustee Zach T. Hederman, Trustee 500 Street Road PO Box 6100 Ridgeland, MS 39158 Seller Note $ 1,200,000 David Sutherland, Ill 525 North Front Street Montezuma, IA 50171 Seller Note $ 1,090,000 Mr. Phil Phillips, Jr. c/o Phillips Litho 807 Old Missouri Road Springdale, AR 72764 Seller Note $ 854,219 Hap Hedermann 500 Steed Road PO Box 6100 Ridgeland, MS 39158 Seller Note $ 607,000 Ms. Lynn H. Harper Mr. Michael G. Harper One Industry Drive PO Drawer 1596 Henderson, NC 27536 Seller Note $ 559,175 Mr. Carey Rosenthal c/o Phoenix Comm. 5664 New Peachtree Rd Atlanta, GA 30341-2508 Seller Note $ 557,750 Mr. Joseph Segal c/o Phoenix Comm. 5664 New Peachtree Rd. Atlanta, GA 30341-2508 Seller Note $ 557,750 Mr. Carl Nelson c/o B&M Printing 2500 Lamar Avenue Memphis, TN 38114 Seller Note $ 500,000 Mr. Scott Diamond c/o Phoenix Comm. 5664 New Peachtree Rd. Atlanta, GA 30341-2508 Seller Note $ 482,089 Mr. Joseph Segal c/o Phoenix Comm. 5664 New Peachtree Rd. Atlanta, GA 30341-2508 Seller Note $ 400,000 Mr. Mendel Segal c/o Phoenix Comm. 5664 New Peachtree Rd. Atlanta, GA 30341-2508 Seller Note $ 295,500 Mr. Bart Knight Seller Note $ 233,545 Mr. Clyde Powell Seller Note $ 157,363 MAURICE: To Complete Liquidation Sale by September -------------------------------------------------- Company lawyer, Kevin J. Walsh announced that the liquidation of all of the shirts, shorts, jeans and other clothing sold by Maurice the Pants Man and Poore Simon's must be completed by September, according to The Telegram & Gazette on July 6, 2000. Another liquidation will begin later this month to sell the leases at each of the company's locations, Mr. Walsh said. As reported, Maurice Corp., the parent company of the brand-name clothing retailers, filed for Chapter 11 bankruptcy protection last month in federal court in Boston, owing $15 million to creditors. MEMORIAL MEDICAL: Lays Off 57 People ------------------------------------- The Buffalo News reports on July 6, 2000 that Memorial Medical Center based in Niagara Falls laid off 57 people. Ever since the proposed merger with Mount St. Mary's Hospital in Lewiston failed, problems erupted. Memorial's debt of $20.5 million with Daughters of Charity, owner of St. Mary's hasn't decreased since the commencement of negotiations. According to CEO, Thomas A. Sy, "We realize our responsibility in paying that, but the economic reality is that we can't pay back anything approximating that," he said. The medical center reduced its management team by four, including some lab technicians and started reducing funds for its different departments. The company will maintain clinics in the city of Niagara Falls and in each of the city's schools. But, the Outreach for Wellness in Niagara and Beeman Child Guidance clinics in Lockport and North Tonawanda will be cut-off of support from the medical center. NAGASAKIYA CO.: Files for court protection ------------------------------------------ Nagasakiya Co. has reported that it has filed for protection from creditors with the Kyoto district court. A Kyoto-based food company, Nagasakiya Co. was showing 10.75 billion yen (US$ 99.6 million) in liabilities as of the end of May. The company has been unsuccessful in obtaining funding to redeem 500 million yen worth of bonds that mature early next month. The confectioner also has been unsuccessful in liquidating plants in Shiga and other prefectures. Nagasakiya says it will continue operating its own stores and shops in department stores. Sales for the company declined from a peak of 16.4 billion yen in the year ended Sept. 30, 1991 to a net 184 million yen loss for the year ended September 1999. The company has suffered five consecutive losing years. Consequently, its liabilities exceed its assets by some 2.6 billion yen as of last September. Members of the board of directors and company president Yasuyuki Yoshioka resigned their posts on Sunday. Yoshioka reported that the company will continue negotiating with companies,including foreign ones, for funds and other support. NISSAN MOTOR: In talks to sell 20 affiliates -------------------------------------------- Nissan Motor reports that it is in talks to sell as many as 20 of its main industrial affiliates only one day after selling its controlling interest in Japan's largest car seat manufacturer. Japan's third-largest automaker and an affiliate of France's Renault, Nissan intends to trim its holdings in more than 300 companies down to only four by the end of March 2003, according to Nissan's manager of investor relations Gerry Spahn. Only Sunday, Johnson Controls, the world's second-largest maker of vehicle seats and interiors, announced it would buy all of Ikeda Bussan -- including Nissan's 38 percent share. Nissan's sales are attracting interest by foreign buyers. The sale of its Ikeda Bussan stake prompted investors to buy shares in other Nissan parts suppliers, including Calsonic Kansei and Tennex, speculating they might be next to be auctioned off. Nissan holds about a third of Calsonic and has been discussing a possible sale with several companies, including Delphi Automotive Systems, the world's largest auto-parts maker. Spahn confirmed that sale of Nissan's stakes in suppliers was part of the company's revival plan to cut the cost of components by an average of 20 percent. It's also calculated to cut costs by increasing competition among suppliers and prodding them to become more international. The shift comes as Nissan is reducing the number of basic platforms it uses to build cars, increasing the size of any parts order. Overall, Nissan's cost-cutting plan is calculated to return the vehicle manufacturer to a profitable status. In May, Nissan reporting posting a 684 billion yen loss. NUTRAMAX: Announces Completion of Financial Transactions -------------------------------------------------------- NutraMax Products, Inc. (BB: NMPC) announced the consummation of certain key financial transactions that are part of its proposed chapter 11 reorganization. The Company and its subsidiaries filed for reorganization under Chapter 11 of the Bankruptcy Code on May 2, 2000 in Wilmington, Delaware. When the Company and its subsidiaries filed for reorganization, their proposed restructuring contemplated certain financial transactions that were subsequently approved by the Bankruptcy Court on June 9, 2000. On June 30, 2000, the Company and its subsidiaries consummated certain of these financial transactions, including a $30 million debtor in possession credit facility with The CIT Group/Business Credit, Inc., and an $18 million junior debtor in possession credit facility with certain of the Company's principal shareholders. The Company also announced that on Thursday, July 6, 2000, the Bankruptcy Court approved the adequacy of the disclosure statement for its proposed first amended joint chapter 11 plan of reorganization. The Official Committee of Unsecured Creditors in the chapter 11 cases of the Company and its subsidiaries has indicated its support for the proposed plan. Richard G. Glass, Chief Executive Officer of NutraMax, said, "We are very pleased that we have reached these key milestones in our reorganization process. Since our filing date on May 2, our employees have worked very hard to implement our restructuring strategy and to continue to meet the needs of our customers. This commitment has resulted in our ability to meet or exceed the projections we had developed for the first 60 days of the reorganization period." Mr. Glass added, "The support that we have received from our customers and suppliers has been very gratifying. It demonstrates that NutraMax has the underlying fundamentals required to successfully reorganize and to regain its position as a leader in the consumer products industry. With the success we have had to date in meeting the key requirements of our restructuring strategy, we are confident that we will emerge from chapter 11 this fall as a stronger and healthier Company." NutraMax is a leading consumer health care products company. In addition, the Company offers a broad range of pharmaceutical manufacturing capabilities to a select group of contract customers. NutraMax products are sold by supermarkets, drug chains, and mass merchandisers under both store brand and control brands, including Powers, Sweet 'n Fresh(R), Pure & Gentle, Fresh 'n Easy, Pro Dental, American White Cross, and NutraMax. PREMIER GRAPHICS: Case Summary and 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Premier Graphics, Inc. A Delaware Corp. 70 Timber Creek Drive, #5 Cordova, TN 38018 Chapter 11 Petition Date: July 7, 2000 Court: District of Delaware Bankruptcy Case No.: 00-02928 Judge: Peter J. Walsh Debtor's Counsel: Mark S. Chehi Skadden, Arps, Slate, Meagher & Flom, LLP One Rodney Square Wilmington, DE 19801 Tel:(302) 651-3000 John Wm. Butler, Jr. Skadden, Arps, Slate, Meagher & Flom, LLP 333 West Wacker Drive, Suite 2100 Chicago, IL 60606 Tel:(312) 407-0700 Total Assets: $ 100 million above Total Debts: $ 100 million above 20 Largest Unsecured Creditors Lehman Brothers 3 World Financial Center, 9th Fl New York, NY 10285 Tel:(212) 526-6840 Fax:(212) 526-1501 Ethan Garber Noteholder $ 45,000,000 Dobbs Management Svcs 1000 Ridgeway Loop Rd Suite 203 Memphis, TN 38120 Tel:(901) 684-1082 Fax:(901) 684-1830 Bill Lawson Noteholder $ 20,000,000 Sun America 175 Water St., 25th Fl New York, NY 10038 Tel:(212) 458-2172 Fax:(212) 458-2241 Kaye Handley Noteholder $ 11,000,000 Morgan Stanley Dean Witter 2 World Trade Center, 72nd Fl New York, NY 10048 Tel:(212) 392-2126 Fax:(212) 392-0094 Francisco Ghiglino Noteholder $ 10,000,000 Delaware Asset Mgmt 2005 Market St., 39th Fl Philadelphia, PA 19103 Tel:(215) 255-8554 Fax:(215) 255-1158 Greg Blackburn Noteholder $ 10,000,000 Oppenheimer 2 World Trade Center, 34th Fl New York, NY 10048 Tel:(212) 323-0856 Fax:(212) 912-6603 Ms. Theresa Kong Noteholder $ 10,000,000 Mitchell Hutchins 51 West 52nd St., 23rd Fl New York, NY 10019 Tel:(212) 882-5304 Fax:(212) 882-5192 David Schwartzman Noteholder $ 10,000,000 Donaldson, Lufkin & Jenrette 277 Park Avenue, 9th Fl New York, NY 10172 Tel:(212) 892-4908 Tel:(212) 892-4057 Evan Rutner Noteholder $ 6,000,000 Bear Stearns 575 Lexington Ave., 10th Fl New York, NY 10022 Tel:(212) 272-8183 Fax:(212) 350-1702 John Eckes Noteholder $ 5,000,000 SanKaty Advisors 2 Copley Place, 7th Fl Boston, MA 02116 Tel:(617) 572-2926 Fax:(617) 572-2134 Frank Fama Noteholder $ 3,000,000 Unisource 6600 Governors Lake Pkwy Norcross, GA 30071 Tel:(770) 734-2167 Fax:(404) 654-1008 Chris Gilmartin Trade Claim $ 1,397,687 Westvaco Corp. 299 Park Avenue New York, NY 10171 Tel:(212) 318-5285 Fax:(212) 318-5070 Bill Beaver Trade Claim $ 1,073,644 Pitman Company 721 Union Blvd. Totowa, NY 07512 Tel:(973) 812-4000 Fax:(973) 812-1630 John Dreyer Trade Claim $ 733,266 Athens Paper Co. 1898 Elm Tree Drive Nashville, TN 37210 Tel:(615) 889-7900 Fax:(615) 872-1710 Harold Sparks Trade Claim $ 638,524 WWF Paper Mid Atlantic 2 Bala Plaza Bala Cynwyd, PA 19004 Tel:(800) 345-1305 x219 Fax:(610) 617-8921 Doug Powell Trade Claim $ 551,652 XPEDX 3900 Spring Garden St. Greensboro, NC 27407 Tel:(336) 834-3418 Fax:(336) 852-8925 Greg Sheehan Trade Claim $ 531,885 Mac Papers Inc. 200 Princeton Parkway West Birmingham, AL 35204 Tel:(404) 691-2255 Fax:(404) 699-4731 Charlie Tarlton Trade Claim $ 290,729 Fliant Ink Corporation Trade Claim $ 249,633 Mail-Well Services Trade Claim $ 184,893 Case Paper Co., Inc. Trade Claim $ 184,003 SAFETY-KLEEN: Applies To Employ Arnold As Environmental Counsel ----------------------------------------------------------------- The Debtors formally retained Arnold & Porter pursuant to an Engagement Letter dated as of April 5, 2000, for: (a) advice regarding the obligations of SKC under federal and state environmental laws and regulations, including the financial assurance requirements of applicable hazardous waste regulations; (b) advice concerning permit compliance; and (c) analysis of exposure to liability for contamination of soil or groundwater at specific sites. By this Application, the Debtors ask Judge Walsh for permission to continue Arnold & Porter's retention as their Special Environmental Counsel during these chapter 11 proceeding. Arnold & Porter's continued retention will be invaluable, Safety-Kleen says, as the Debtors seek to reorganize their operations and financial affairs. The A&P members and counsel presently expected to work on this matter, and their hourly rates, are: Michael Cerrard $485 Thomas H. Milch $465 Jeffrey S. Bromme $380 Elliot Zenick $210 Arnold & Porter received a $155,000 retainer prior to the Petition Date. (Safety-Kleen Bankruptcy News - Issue 4; Bankruptcy Creditors' Service Inc.) SHONEY'S INC: NYSE Suspends Trading, Seeks to Delist ---------------------------------------------------- Trading of stock and liquidated yield option notes of Shoney's Inc. will be suspended by the New York Stock Exchange because the company no longer meets the Big Board's minimum requirements. Moreover, the exchange will seek the U.S. Securities and Exchange Commission's permission to delist Nashvilled-based Shoney's. SOGO CO.: Files For Bankruptcy ------------------------------ Department store chain Sogo Co. Ltd. became Japan's second- largest corporation to file for bankruptcy, according to a Reuters report. The Tokyo-based company filed for protection today, announcing debts of 1.87 trillion yen (US$17.5 billion). The government's announcement last month of a plan to rescue Sogo had whipped up strong public resentment and opened up rifts within Prime Minister Yoshiro Mori's ruling coalition. But Liberal Democratic Party's Shizuka Kamei said the ruling coalition had put no pressure on Sogo to seek court protection, adding it had made the decision alone. IBJ, Sogo's main creditor, has already pledged to support the court-guided rehabilitation of the company. (ABI 12-Jul-00) SOGO CO.: To ask former chairman to help cover debt --------------------------------------------------- Sogo Co said it will ask former chairman Hiroo Mizushimato to donate his personal assets to help cover the company's huge debt. "We will work for an early settlement of the matter related to our request for former chairman Mizushimato's donation of his personal assets," Sogo said in a statement. Mizushima, who was Sogo's president in 1962 and chairman in 1994, led an expansion strategy which caused the company to incur 1.7 trln yen in debt, the company said. He resigned as Sogo's chairman on April 26. Sogo will also set up a committee of outside experts to assess management's responsibility over its current situation, it added. "We will set up an independent committee (on this) investigation comprising several outside experts such as lawyers and certified accountants, " Sogo said. "The purpose of the committee is to clarify responsibility of our company 's executives in terms of their violations of internal rules and to investigate whether they violated civil and criminal laws." (AFX News Limited 10-July-2000) TOYSMART: Disney Offers To Buy Customer List -------------------------------------------- Walt Disney Co., the majority owners of bankrupt online toy retailer Toysmart.com, said yesterday it has offered to purchase the company's customer list to ensure consumers' privacy, according to the Associated Press. The offer came a day after the Federal Trade Commission (FTC) sued Toysmart.com in U.S. District Court in Boston, claiming the company broke its promise to customers that it would never share private information about them. Toysmart ceased operations in May and began soliciting bids for its assets, including customer lists and profiles. Disney said that despite the fact it is not involved in the lawsuit, it is working with the FTC to ensure the list stays confidential. "If the bankruptcy court...allows us to purchase the list, we will do so, and retire the list," Disney said. "If we are not allowed to purchase the list, we will urge the court, as the Federal Trade Commission has, to permit a sale only to a purchaser of all the assets of Toysmart who will maintain the confidentiality of the information contained in the list." Toysmart's decision to solicit bids for its customer lists and profiles drew protests from Internet privacy advocates, who claimed that if Toysmart.com's lists were allowed to sell their lists, it would open the door for other failing dot-com companies to sell their customer lists for cash. The FTC said it was unclear whether any of those lists had been sold. (ABI 12-Jul-00) TRI-VALLEY GROWERS: Officials Explain Bankruptcy Reorganization --------------------------------------------------------------- According to an article in The Record on July 12, 2000, hundreds of farmers and farm managers gathered in Stockton's Scottish Rite Temple on Tuesday to hear Tri Valley Growers officials explain what the struggling cooperative's bankruptcy reorganization would mean to them. Tri Valley proposes to accept 85 percent of the peaches and grapes it would normally have canned, 70 percent of the pears and only 33 percent of the tomatoes. The cooperative has secured a $ 270 million financing package from a consortium of banks, led by Bank of America Business Credit, to allow it to continue to operate. In addition, the cooperative has hired Goldsmith Agio Helms, a private investment-banking firm based in Minneapolis, to help it try to find new investors or to sell off part or all of its assets as part of the restructuring. Tri Valley is among the largest grower-owned cooperatives in the nation, in recent years accounting for up to half of the nation's canned peaches and 10 percent of canned tomato products. It operates seven canneries, producing products under the S&W Fine Foods, Libby and Sacramento Tomato labels among others, and would normally employ 10,500 people at the peak of the harvest and canning season, but this is not a normal year. Officials announced Monday that they would idle two tomato canneries this season. It was reported that the Los Banos plant would likely be one of those idled plants. Tri Valley also operates a tomato cannery in Thornton in northern San Joaquin County and one in New Jersey. It also has a peach cannery in Gridley and four plants in Modesto, including the world's largest cannery, called Plant 7. In recent years, its annual sales have averaged around $ 800 million. URANIUM RESOURCES: Groups Oppose Further Mining ----------------------------------------------- More than 30 protesters came to North Dallas demanding that Uranium Resources, Inc. stop mining operations in New Mexico Navajo communities and parts of South Texas. They believe that the mining operations will cause more contamination to the environment, particularly in the drinking water, and endanger the health of residents near the mines. "We don't need any more devastation," said Kathleen Tsosie, a resident of Crownpoint, N.M., who said that she knows many people who believe uranium mining caused their cancer and other diseases. Dallas-based Uranium Resources, Inc. announced in May that it was running out of money and may file for bankruptcy. VENCOR: Ventas Files $4 Billion Proof of Claim ---------------------------------------------- Ventas Inc. has filed a $ 4 billion proof of claim in the Chapter 11 bankruptcy case of Vencor Inc. The filing, required to preserve the rights of creditors in bankruptcy cases, is primarily accounted for by rent Vencor is committed to pay Ventas over the life of multiyear lease agreements for most of the hospitals and nursing homes that Vencor operates. Ventas Chief Executive Officer Debra Cafaro said filing the proof ''is a step toward Vencor's emergence from bankruptcy as a creditworthy company.'' The Ventas claim is the largest in the Vencor bankruptcy. VISKASE COMPANIES: Moody's Downgrades $219m Sr Unsecured Notes -------------------------------------------------------------- Moody's Investors Service downgraded Viskase Companies, Inc.'s $219 million 10.25% senior unsecured notes, due 2001, to Ca from Caa1. The senior implied rating was lowered to Caa3 from B3. The senior unsecured issuer rating is Ca, and the outlook is negative. The downgrades reflect the continued weak financial condition of the company even after the recently announced sale of its most profitable segment (specialty films) for which $245 million cash proceeds will be used for debt reduction. The rating incorporates Moody's expectation that Viskase's value as a stand-alone business is likely to be insufficient to cover the remaining debt of approximately $300 million consisting of $219 million of senior unsecured notes plus approximately $80 million of sale- lease backs. In our opinion, financial leverage will remain very high (in excess of approximately 18x debt to EBITA and about 6x debt to EBITDA). Reportedly at the close of the transaction, the company should have approximately $60 million in cash. The downgrade of the rating of the senior unsecured notes to Ca from Caa1 reflects the absence of full coverage of interest expense, the increased probability of default and the increased severity of loss in the event of default. Furthermore, the lack of timely and detailed financial disclosure supports the rating. On July 7, 2000, Viskase announced a definitive agreement to sell its plastic barrier and non-barrier shrink film business to Bemis Company (rated A2/ Prime-1), a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products and manufacturing companies worldwide. Viskase intends to use the $245 million cash proceeds to repay debt and for general corporate purposes. Pro-forma for the proposed transaction, Viskase will likely have approximately $300 million of total debt outstanding. Based in Chicago, Viskase Companies, Inc. primarily manufactures cellulosic casings used in the preparation and packaging of processed meats. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler, Edem Alfeche and Ronald Ladia, Editors. Copyright 2000. All rights reserved. ISSN 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *