TCR_Public/000719.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R

   Wednesday, July 19, 2000, Vol. 4, No. 140


AGRIBIOTECH: Idaho Alfalfa Growers May Receive Partial Payment
AMERICAN PAD: Signs Letter of Intent With Saratoga Partners
AMERISERVE: Founder Denies Improperly Pulling Millions
BAPTIST FOUNDATION:  Lawsuit Comeback To Superior Court
CONCENTREX INC: Announces $140 Million Sale

DECORA: Ratings Lowered; Outlook Negative
ENAMELON: Creditors File Involuntary Bankruptcy Petition
FREEWEB: Debtors File Motion Seeking Approval of Co-Counsel
FREEWEB: Notice of Intent to Bid on Assets
FRONTIER INSURANCE: Announces Completion Sale of Regency

FRUIT OF THE LOOM: Motion To Assume and Assign Office Lease
GLOBAL TISSUE: Files for Chapter 11 Bankruptcy Protection
GST TELECOMMUNICATIONS: Extends Dates For Bidding on Assets
HYUNDAI MOTORS: Spinoff Plan Enters Critical Stage
INTEGRATED HEALTH: Motion for Sale of Assets of LTC

LEVITZ FURNITURE: Posts $66.9 Million Net Loss
LIVENT INC: CIBC Faces Lawsuit Against Creditors
LOEWEN: Motion For Approval of Flanagan Family Trust Settlement
MESQUITE STAR: Judge Approves Motion To Postpone Sale

RADIO ONE:  Moody's Assigns Ratings
SAFETY-KLEEN: Motion For More Time To File Schedules & Statements
SEIYO: Japan Suffers Second Major Bankruptcy In A Week
STONE & WEBSTER: Sale to The Shaw Group Inc. Approved
SUN HEALTHCARE: No Air Conditioning For SunBridge Despite Deaths


AGRIBIOTECH: Idaho Alfalfa Growers May Receive Partial Payment
According to an article in The Idaho Statesman on July 12, 2000,
most of the assets of defunct Henderson-based AgriBioTech Inc.
have now been sold at auction, giving Idaho alfalfa seed growers
hope that they will receive at least partial payment for last
year's crop by the end of the year.

The sale of the assets, which included three seed warehouses in
Treasure Valley, also means growers are assured they'll have a
market for this year's seed, which is already growing and will be
harvested later this year. However, the sale of ABT's assets
didn't bring in as much money as farmers had hoped, meaning they
may not receive full payment for the crop.

Idaho alfalfa seed growers have claims against the company for
$ 8 million to $ 9 million for seed they produced last year and
haven't been paid for. Combined with claims from grass seed
growers in North Idaho, the amount owed to Idaho farmers could be
as high as $ 34 million.

The sale brought in about $60 million, well short of the $100
million creditors had hoped for. But there is still an estimated
$5 million to $6 million in other assets set to go on the auction

The downside is that ABT's main lending institution, Bank of
America, is owed around $45 million and growers in other states
have claims against the company. Still, growers are happy that
the seed warehouses will keep operating and their contracts will

"A lot of them are relieved," said Marsing farmer Jim Briggs, the
chairman of the Idaho ABT Growers Committee.

"Now that they're putting the bees on (to pollinate the crop),
they know it's got a home to go to and know the price," Briggs

At the auction:

7 ABT's Allied facility in Nampa, some proprietary seed varieties
and some assets outside Idaho were purchased by Research Seeds
for $ 15.5 million. Research Seeds already operates a seed
operation in Nampa under the name Forage Genetics.

7 Dairyland Seed purchased the ABT seed warehouse in Homedale for
$ 1.6 million.

7 Northwest Seeds bought the ABT-owned Clark Seeds facility in
Nampa for $ 2.7 million.

7 A consortium of three companies, which includes Simplot Turf
and Horticulture, a division of the J.R. Simplot Co., purchased
most of the grass seed assets of ABT for $ 24.5 million. The
companies will not operate together, instead splitting the
various assets between them.

Simplot bid on the assets because they fit in well with the
company's existing turf operations in North Idaho, company
spokesman Fred Zerza said.

As part of the winning bid, Simplot will get seed distribution
centers in Phoenix, Las Vegas and Florence, Ky. and rights to
some of the proprietary seed sold to golf courses, Zerza said.

AMERICAN PAD: Signs Letter of Intent With Saratoga Partners
American Pad & Paper Company (OTCBB:AMPPQ) (AP&P) announced today
that it has signed a Letter of Intent with Saratoga Partners for
the sale of the assets of its Williamhouse division. The sale is
subject to a number of conditions including execution of a
definitive sale agreement and bankruptcy court approval.

As previously announced, AP&P has been pursuing the sale of its
various business assets in order to reduce debt. The sale of
Williamhouse will be the Company's second sale of a major
business asset. On May 9, AP&P concluded the sale of its Chicago-
based Creative Card division to Taylor Corporation. The
Company is also pursuing the sale of its Ampad and Forms

"We are pleased to have a financial buyer of Saratoga's caliber
express its intent to purchase the Williamhouse business," stated
James W. Swent III, chief executive officer. "This transaction
will create a stronger Williamhouse and generate benefits for our
customers, suppliers and employees. Williamhouse has long been a
major force in the marketplace and combined with Saratoga
Partners will have the opportunity to bring its market leadership
to a new level."

"Williamhouse is widely known and respected," stated Christian L.
Oberbeck of Saratoga Partners. "This acquisition fits well with
our strategy of investing, in partnership with management, in
businesses with a strong market share and brand equity. We look
forward to providing the financial strength to ensure
Williamhouse remains the vendor of choice for its customers."

Saratoga Partners, a New York-based Merchant Bank, founded in
1984, has led buyout and private equity investments in 28
companies with an aggregate acquisition value exceeding $3.3
billion. Saratoga's investments have included Koppers Industries,
CapMAC, Formica Corporation and telecommunications related
companies, including EUR Data Center.

American Pad & Paper Co., which invented the legal pad in 1888,
is a leading manufacturer and marketer of paper-based office
products in North America. Product offerings include envelopes,
writing pads, file folders, machine papers, greeting cards and
other office products. The key operating divisions of the
Company are Williamhouse, AMPAD and Forms. AP&P has been
operating under Chapter 11 protection since January 10, 2000 and
has secured debtor-in-possession (DIP) financing adequate for its
operations while in Chapter 11. Company revenues in 1999 were
$573 million, additional information is available on the
Company's Website at

AMERISERVE: Founder Denies Improperly Pulling Millions
The Wall Street Journal reports on July 18, 2000, that AmeriServe
founder and former Chief Executive John Holten, denied an
allegation that he had improperly pulled millions of dollars out
of the food distributor prior to the company's bankruptcy filing
in January.

The allegation was made in a suit AmeriServe filed in May in U.S.
Bankruptcy Court in Wilmington, Del. The response by A, made in a
filing late Friday to the court, is his first formal answer to
that suit.

Mr. Holten is chief executive and controlling shareholder of
Holberg Industries Inc., a closely held Greenwich, Conn., firm
that in turn has a controlling stake in AmeriServe.  In the
response, Holten said his firm put far more money into AmeriServe
than it took out. Further, he said, the transactions occurred
under a longstanding and legitimate agreement between AmeriServe
and its controlling shareholders.

Creditors in this case are expected to take significant losses on
the roughly $2 billion they are owed by the company. And
bondholders are pursuing AmeriServe's underwriter, Donaldson,
Lufkin & Jenrette Inc., for allegedly failing to properly
disclose AmeriServe's troubles when it sold $200 million of
AmeriServe junk bonds in September 1999.

In his response, Mr. Holten said, "to the extent that [the
AmeriServe suit] purports to allege that the defendants illegally
siphoned off funds from [AmeriServe], it grossly mischaracterizes
the business relationships between [AmeriServe] and its parent
entities, and it misrepresents the actual financial transactions
among them."

BAPTIST FOUNDATION:  Lawsuit Comeback To Superior Court
According to the Arizona Republic on July 12, 2000, the three-
month class-action lawsuit of the defunct Baptist Foundation of
Arizona is now back in Maricopa County Superior Court.  Lead
class-action attorney, Andrew Friedman says, "The suit is back
where it belongs, so at least we cleared that obstacle," [and]
"That's good news for the investors because this has been sitting
for 90 days. This will finally get it moving."  The lawsuit that
was filed late last year represented BFA investors, alleging
former foundation officials and Arthur Andersen & Co. of
swindling them out of millions of money.  BFA filed for Chapter
11 in November listing assets of $ 240 million and debts
amounting to $ 590 million to 13,000 investors.

CONCENTREX INC: Announces $140 Million Sale
Concentrex Incorporated (Nasdaq: CCTX) announced on July 17, 2000
that it has reached an agreement with John H. Harland Company
(NYSE: JH) under the terms of which Harland will pay
approximately $140 million for Concentrex, taking into account
the Company's loan obligations and transaction-related expenses.  
The transaction will take the form of a tender offer of $7.00 per
Concentrex share and is expected to close in August.  The closing
is subject to receiving a majority of Concentrex's outstanding
shares in the tender offer, receiving regulatory approval and
other closing conditions.

"There is little overlap between Harland's software division and
Concentrex in terms of products, and we believe this acquisition
provides the best opportunity for our employees and our
customers," said Matt Chapman, Concentrex Chairman and CEO.  
"Concentrex has been under extreme pressure because of
concerns over our financial situation and a transaction of this
type was essential for the Company.  Getting the benefit of
Harland's extremely strong balance sheet and cash generation will
address this financial concern, while providing a material
premium over the current share price for our shareholders."

Concentrex also announced today that its second quarter results
are expected to be substantially below analyst expectations, and,
as a result, it is in default under the loan covenants with its
lenders.  "Our financial position with our lenders is a principal
reason we have chosen to sell the company," added Chapman.  Allen
& Co. was retained by Concentrex to assist it in pursuing
strategic alternatives and served as investment advisor in this

Concentrex Incorporated, based in Portland, Oregon, is a provider
of technology-powered solutions to deliver financial services,
including a broad range of traditional software and services
integrated with leading e-commerce solutions that already enable
its customers to serve more than one million home banking
customers.  Concentrex serves over 5,000 financial institutions
of all types and sizes in the United States.  Concentrex has
major offices in 11 additional cities across the country.  Its
World Wide Web site is

Atlanta-based John H. Harland Company ( is listed
on the New York Stock Exchange under the symbol "JH."  Harland is
a leading provider of checks, financial software and direct
marketing to the financial institution market.  Scantron
Corporation (, a wholly owned subsidiary, is
a leading provider of software services and systems for the
collection, management and interpretation of data to the
financial, commercial and educational markets.

At the time the offer is commenced Harland will file a tender
offer statement with the U.S. Securities and Exchange Commission
(SEC) and Concentrex will file a solicitation/recommendation
statement with respect to the offer.

DECORA: Ratings Lowered; Outlook Negative
According to an article in The Wall Street Journal on                
July 18, 2000, Decora Industries Inc.'s senior secured notes due
2005 were lowered to Caa3 from Caa1 by Moody's Investors Service
Inc., the credit-ratings agency said. Concurrently, the company's
senior implied ratings were lowered to Caa1 from B2 and its
senior issuer ratings fell to Ca from Caa2. The Dun & Bradstreet
Corp. unit also changed its outlook to negative.

Moody's said the downgrade was in response to the Fort Edward,
N.Y., company's "poor operating performance" for the fiscal year
ended March 31, and that it was concerned that Decora, a
manufacturer of surface-covering products, wouldn't be able to
meet its debt-servicing obligations.

Last week, Decora received a notice of default with regard to
recent financing. Moody's also cited "distribution issues in
North America, a weak Eastern European economy and unfavorable
foreign-currency translation" as reasons for "extremely thin
operating margins, inadequate interest coverage and an inability
to reduce a large debt burden." Decora is pursuing a lawsuit
against Rubbermaid Inc., charging that Rubbermaid made false
representation concerning Decora's acquisition of Rubbermaid's
decorative-coverings group.

Robert Hanlon, Decora's chief financial officer, was quoted in
the article as saying, "This is very poor timing, but we believe
the company has a lot of upside. We have regained shelf space and
reacquired significant customers lost during the Rubbermaid

ENAMELON: Creditors File Involuntary Bankruptcy Petition
In the Bankruptcy Court of the District of New Jersey, three
creditors of Enamelon, Inc. filed an involuntary bankruptcy
petition against the company. Enamelon is currently evaluating
its options.

The company tries to find domestic and foreign makers of oral
care products to whom they would entrust the patented
remineralizing technology of their products. Since early June,
the company transferred into smaller offices and there are only
about five full-time employees left after 75% of its work force
was laid off.

FREEWEB: Debtors File Motion Seeking Approval of Co-Counsel
On July 26, 2000, the debtors, Smart World Technologies LLC, et.
Al. will move the court for the authority to retain the law
offices of Douglas J. Tabachnik and Douglas J. Pick & Associates
as co-counsel to the debtors.

The Debtors have filed a motion to approve an agreement with Juno
Online Services, Inc. for the referral of the Debtors'
subscribers and the sale of the Debtors' domain names, subject to
higher and better bids as provided in a Term Sheet. The Debtors
believe that they can promptly formulate and file a liquidation
plan with the Court.

The debtors claim that if they  do not succeed in moving quickly,
the network and business of the Debtors will not be preserved in
sufficient quantity to obtain a reasonable return for creditors.

During the pendency of this chapter 11 case, the Debtors will
require experienced Bankruptcy Counsel to, inter alia:

(a) advise the Debtors with respect to their rights and duties as
a debtors-in-possession;

(b) assist and advise the Debtors in the preparation of their
financial statements, schedules of assets and liabilities,
statement of financial affairs and other reports and
documentation required pursuant to the Bankruptcy Code and the
Bankruptcy Rules;

(c) represent the Debtors at all hearings and other proceedings
relating to their affairs as chapter 11 debtors;

(d) prosecute and defend litigated matters that may arise during
these chapter
11 cases;

(e) assist the Debtors in the formulation and negotiation of
plans of reorganization and all related transactions;

(f) assist the Debtors in connection with the finalization, Court
approval and consummation of either the sale or, alternatively,
refinancing of the Property;

(g) assist the Debtors in analyzing the claims of creditors and
equity interests and in negotiating with such creditors and
interest holders;

(h) prepare any and all necessary motions, applications ,
answers, orders, reports and papers in connection with the
administration and prosecution of the Debtors' chapter 11 cases;

(i) perform such other legal services as may be required and/or
deemed to be in the interest of the Debtors in accordance with
its powers and duties as set forth in the Bankruptcy Code.

Both firms' requested compensation for professional services
rendered to the Debtors shall be based upon the time expended to
render such services and at billing rates commensurate with the
experience of the person performing such services and will be
computed at the hourly billing rate customarily charged by the
respective firms for such services.

Douglas J. Pick and Associates' normal hourly rates are: $285 per
hour and $110.00 per hour for paraprofessionals. Douglas T.
Tabachnik's normal hourly rates are: $288.75 per hour and $110.00
per hour for paraprofessionals.

FREEWEB: Notice of Intent to Bid on Assets
Mr. William M. Parker, CEO and President of, Inc.
a Seattle based "free"Internet service, notified Douglas J. Pick
& Associates and the Law Offices of Douglas T. Tabachnik
that he will appear in United States Bankruptcy Court, on July
19, 2000 at the hearing to be held commencing at 2:00 p.m., for
the purpose of bidding on the assets of FreeWeb and to provide to
the court assurance of financial capacity.

FRONTIER INSURANCE: Announces Completion Sale of Regency
Frontier Insurance Group, Inc. (Frontier) (NYSE-FTR) announced
that it has completed the sale of Regency Insurance Company to
Tomoka Re Holdings, Inc., an affiliate of Tower Hill Insurance
Group, for $7.1 Million.  On the completion of the sale, Harry
Rhulen, Frontier's President and Chief Executive Officer, stated,
"We are pleased to conclude this transaction and continue to
execute our Corrective Action Plan. The proceeds of the sale will
be used for corporate purposes, including repayment of debt."  
Frontier is an insurance holding company which, through its
subsidiaries, is a national underwriter and creator of specialty
insurance products serving the needs of insureds in niche

FRUIT OF THE LOOM: Motion To Assume and Assign Office Lease
Fruit of the Loom Inc., a New York corporation and subsidiary of
Debtor, motions the Court for an order approving the assumption
and assignment of a lease for nonresidential real property to
Inforocket Inc., for $1,300,000 in cash, under the terms of a
June 12, 2000, Letter Agreement.  Inforocket also will pay the
current balance of Debtor's security deposit.

On June 19, 1998, Fruit of the Loom entered into a lease for the
twelfth floor of a building located at 525 Seventh Avenue in New
York City.  Judge Walsh approved two 365(d)(4) motions on
February 28, 2000 and April 19, 2000, to extend the time within
which to assume, assume or assign or reject its unexpired
nonresidential real property leases, including the one at 525
Seventh Avenue.

Fruit of the Loom states that the 525 Seventh Avenue office
exceeds anticipated needs.  Less costly alternative office space
has been identified.  Sale of the lease precludes liability under
Section 502(b)(6) for potential rejection damages that the
landlord may seek.  As a result, sale of the lease substantially
benefits the estate and its creditors.  Fruit of the Loom
estimates moving expenses at approximately $52,000.

The relief requested by Fruit of the Loom includes a provision
that allows acceptance of higher or better offers.  They reserve
the right to conduct an auction for the lease.  Inforocket is
entitled to a breakup fee of $52,000 if its bid is topped by
another offer.  The parties target a closing deadline of July 17,

Fruit of the Loom retained broker Fashion Realty Group Ltd.,
which showed the office to over 30 potential buyers.  Inforocket
brought the highest and best bid. (Fruit of the Loom Bankruptcy
News Issue 8; Bankruptcy Creditors' Service Inc.)

GLOBAL TISSUE: Files for Chapter 11 Bankruptcy Protection
Global Tissue LLC filed for Chapter 11 bankruptcy protection in
U.S. Bankruptcy Court in Delaware. Global Tissue is a paper
products manufacturer and converter for private-label customers
that is based in Memphis, Tenn. The five largest unsecured
creditors are Memphis-based Ponderosa Fibres of America (X.PDF),
the City of Memphis, International Forest Products Ltd. (IFP.A),
Dupont (DD), and Kruger, Inc. Seventy-two per cent of the company
is owned by, Kruger, Inc, a company based in Montreal. The total
assets of Global Tissue are $79.2 million and liabilities total
$93.1 million.

GST TELECOMMUNICATIONS: Extends Dates For Bidding on Assets
GST Telecommunications, Inc., an integrated communications
provider (ICP) in California and the western United States,
announced it is extending the dates originally established for
bidding for substantially all of its assets.  With the support of
the Official Committee of Unsecured Creditors appointed in its
bankruptcy case, the Company has extended the final date for bids
to August 11 (from the original July 31 date) and moved the
auction date to August 22 (from August 4).  A hearing is
scheduled on August 25 in the District Court for the
District of Delaware with jurisdiction over the Company's
bankruptcy proceedings to approve the winning bid.

"Because the earliest hearing date for court approval of the
highest bid is late August, the Company and the committee of
unsecured creditors agreed the time could be well used for
continued due diligence," stated Tom Malone, acting chief
executive officer of GST.  "Extending the dates allows GST to
accommodate companies that have expressed strong interest in the
Company.  To date, over 35 companies have signed confidentiality
agreements with GST in order to begin due diligence.  This
outpouring of interest has confirmed our original belief that
GST's network assets, customer base, and employees together
comprise a highly valued enterprise."

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

For more information, please contact:
GST Telecommunications, Inc.
Investor & Public Relations

HYUNDAI MOTORS: Spinoff Plan Enters Critical Stage
The Hyundai Group's stalled plan to spin off its automotive
business is entering a critical stage in the wake of the
government's offer last week to mediate the group's
escalating family dispute.

Jeon Yun-churl, chairman of the Fair Trade Commission,
demanded Friday that Hyundai founder Chung Ju-yung split
his 9.1-percent stake in Hyundai Motor into 6.1 percent in
preferred stock carrying no voting rights and 3 percent in
common stock to meet the legal requirements for the
automaker's separation.

In what sounded like an ultimatum, Jeon asked Hyundai to
decide on his proposal by the end of this month.  Chung's
over-3 percent stake has been the last obstacle to the
spin-off scheme. In order for Hyundai Motor to be
considered legally independent from the group, Chung and
all other Hyundai Group affiliates must reduce their
shareholding in Hyundai Motor to less than 3 percent,
according to the present law.

Hyundai has not shown any immediate response, but analysts
forecast the embattled conglomerate will have no choice but
to accept the government proposal.  "The ball is now in
Hyundai's court," said an analyst. "Afraid of loss of
confidence from the market, the Chung family may attempt to
end its internal dispute."

Hyundai's crashing image in contrast to rival Samsung
Group's noticeable takeoff of late will also force the
Chung family to bury the hatchet and hasten restructuring
moves, he added.  In this regard, Hyundai said it will
submit a revised plan to spin off Hyundai Motor to the FTC
within this month.

An official of the group's restructuring committee said:
"We are studying various ways to come up with a new
separation plan acceptable by the government and the

Another group executive said that there is no precedent in
which ordinary shares are massively turned into preferred
shares, calling the FTC chairman's proposal "confusing."
"Above all, it is the founder that holds the key to the
protracted dispute," he said, floating the idea of a
gradual stock shift for a period of two to three years.

The separation of Hyundai Motor is part of the government's
greater efforts to reform the largest chaebol's family-
controlled, sprawling empire by breaking it up into five
smaller conglomerates, including electronics, construction,
heavy industries and finance-service business.  However,
many analysts say that the outlook is not bright because of
the Chung family's lingering managerial disputes.

The cause for the delayed spin-off restructuring has often
been traced to the severe sibling feud. The watchers
speculate that the elder Chung's desire to hold strong
managerial influence over Hyundai Motor is actually
intended to eventually drive his eldest son, Chung Mong-
koo, out of his chairmanship. They also predict that in the
wake of Hyundai Motor's failure to separate itself from the
group, the elder Chung's favored son, Chung Mong-hun, is
expected to continue to work to remove his elder brother
from Hyundai Motor's top post.

Indeed, the Mong-koo camp has been steadily expanding its
Hyundai Motor shares in a bid to defend its management
right in a possible equity battle with the Mong-hun camp.
Following a "let's buy our own share" campaign by Hyundai
Motor employees, three parts suppliers to the nation's
largest automaker bought 666,570 shares last week.

In a counter move, the Mong-hun camp is said to be actively
buying Hyundai Motor stock through offshore funds. Mong-koo
is said to be capable of wielding 38.6 percent of voting
rights in Hyundai Motor, including a 4 percent share owned
by himself, a 7.8 percent stake by Hyundai Precision &
Industry, 12 percent by Hyundai Motor employees and 4.8
percent by Mitsubishi Motors. (The Korea Herald  17-July-

INTEGRATED HEALTH: Motion for Sale of Assets of LTC
LTC Laboratories, Inc., IHS's wholly owned subsidiary in the
business of testing blood, urine or other specimens collected at
long-term care facilities, has been running at break-even or at a
slight loss since it was acquired by IHS from HealthSouth on
January 1, 1998. In 1999 LTC had net revenues of $4.4 million and
a net loss of approximately $200,000. The Debtors anticipate that
with continued reductions in Medicare reimbursement rates,
only the largest providers will survive and LTC cannot survive in
such a rate-cutting environment.

The Debtors therefore ask Judge Walrath to authorize the sale of
substantially all of the assets of LTC to National Medical
Financial Services, Inc., pursuant to an Asset Purchase Agreement
which provides for an aggregate purchase price of $325,000, as
well as for National Medical to assume certain of LTC's
liabilities and obligations, and for LTC to retain gross accounts
receivable totaling more than $3,000,000.

The Debtors clarify that the Purchase Agreement does not dictate
the terms of a plan of reorganization, as it does not attempt to
restructure the rights of creditors. The distribution of LTC's
assets, the Debtors iterate, will be managed consistent with the
Bankruptcy Code and pursuant to a plan of reorganization

Specifically, LTC will sell, assign, and transfer to National
Medical substantially all of its property, including physical
plant, equipment, supplies, inventory, and furnishings.

The Agreement also provides for:

    * hiring by National Medical of LTC employees on a
probationary basis subject to terms and conditions in the Asset
Purchase Agreement;

    * the transfer of assets free and clear of Liens, except the
Assumed Liens,

    * the assumption and assignment of executory contracts,

    * the assignment of licenses with respect to LTC's right and
interest in the Clinical Laboratory Improvement Act, Registration
No. 4500861062, and the City of Dallas Alarm Permit, in
accordance with applicable law (the Assigned Licenses).

    * assumption of LTC's liabilities to include only those (i)
under the Assigned Contracts, (ii) for employee vacation benefits
due and accrued through the Closing Date, and (iii) with respect
to the Assumed Liens.

    * exclusion of inventory and supplies disposed of after the
date of the Purchase Agreement and prior to Closing, Medicare and
Medicaid provider agreements and numbers, the State of Texas
Permit for Precursor Chemicals and/or Laboratory Apparatus, and
other governmental licenses and permits other than the Assigned
Licenses, claims and rights under any contracts, leases,
commitments, licenses, and permits relating to periods prior to

The Debtors submit that the terms of the Purchase Agreement are
fair and reasonable and they believe it is sound business
judgment to sell the assets of LTC as soon as possible, given the
business climate and LTC's performance. (Integrated Health
Bankruptcy News Issue 6; Bankruptcy Creditors' Service Inc.)

LEVITZ FURNITURE: Posts $66.9 Million Net Loss
For the first quarter of the fiscal year 2000, Levitz Furniture,
Inc. posted a $66.9 million net loss or $2.22 a share. Net sales
for fiscal 2000 decreased to $535.1 million, or a decrease of
18%. Levitz had a 2.8% increase in store sales for fiscal 2000
compared to the previous years' store sales. Store sales continue
to rise 9.3% in April, 4.7% in May, and 6.4% in June.

Levitz is developing measures to help the company emerge from
Chapter 11. The company plans to obtain additional capital from
current vendors and suppliers and to obtain working capital
financing to replace its current debtor-in-possession credit
facility. It is anticipated that after the company emerges from
bankruptcy, an exit financing of about $95 million would be used
for working capital requirements.

LIVENT INC: CIBC Faces Lawsuit Against Creditors
The Ontario Globe and Mail reports on July 12, 2000 that
unsecured creditors of defunct Livent Inc. filed a lawsuit
against Canadian Imperial Bank of Commerce.  The third lawsuit
was filed at the U.S. Bankruptcy Court in Southern District of
New York alleges CIBC as dishonest and is engaged in illegal
acts.  The suit charges CIBC doing some portrayals such as being
a lender, backdoor lender, underwriter, research firm and sales
office in its long relationship with Livent. "The grossly
fraudulent and inequitable conduct of the CIBC entities created
an unfair advantage for the CIBC
entities and harmed Livent and its creditors by forcing Livent
into bankruptcy."  CIBC refused to comment on this latest

LOEWEN: Motion For Approval of Flanagan Family Trust Settlement
Pursuant to Rule 9019 of the Bankruptcy Rules and sections 363
and 365 of the Bankruptcy Code, five of the Debtors, Loewen Group
International, Inc., The Loewen Group Inc., International
Memorial Society, Inc., Palm Springs Mausoleum, Inc. and Security
Plus Mini & RV Storage, Inc., move the court for an order
authorizing (a) entry into settlement agreement with Honorine T.
Flanagan (Flanagan) and the Flanagan Family Trust (b) entry into
lease amendment and assumption of lease as amended and (c)
deposit of cash security deposit, in the amount of $600,000 to
secure its obligations under the Lease as amended by the
Lease Amendment.

Under a Purchase Agreement entered on July 17, 1995, LGII agreed
to buy and the Trust, Flanagan and John Dillon Flanagan agreed to
sell, all of the issued and outstanding shares of:

(a) International Memorial, d/b/a Palm Springs Mortuary, Palm
Springs Mortuary at Cathedral City and Desert Hot Springs
(b) Palm Springs; and
(c) Security Plus.

By the Purchase Agreement, the Sellers also agreed to convey to
LGII the Mausoleum Parcel of real property.

On July 17, 1995, LGII, as tenant, and the Trust, as lessor,
entered into a Lease. On November 1, 1996, the Trust assigned the
Lease to John Dillon Flanagan and Flanagan, and John Dillon
Flanagan assigned it to Flanagan.

* The base rent under the Lease currently is $480,000 annually;
* The term of the Lease currently expires on July 16, 2000, but
the Lease includes an option for renewal for two additional
consecutive terms of five years each. The base rent under the
Lease for the first year of the renewal term would be $1,200,000;
* Under the Lease, LGII has an option to purchase the Leased
Premises on or before the end of the initial term or before the
end of the second  renewal term.

On July 17, 1995, LGII and Flanagan entered into a Consulting
Agreement and an Employment Agreement. According to the Debtors,
Flanagan had failed to convey the Mausoleum Parcel to LGII.

Honorine T. Flanagan, on the other hand, had complaints against
the Debtors as evidenced in the lawsuit Honorine T. Flanagan v.
Loewen Group International, Inc., The Loewen Group, Inc. and DOES
(individuals related to the case) 1 through 100 commenced in
December 1998 in California.

The lawsuit alleges, among other things, that under the Asset
Purchase Agreement, Loewen convenant that no claims, suits or
proceedings were pending against Loewen. It was based on this,
the lawsuit says, that the Flanagans agreed to enter into the
Share Purchase Agreement which set forth a comprehensive business
agreement by which the Flanagans agreed to sell their mausoleum
and mortuary business assets to Loewen. The Aggregate Purchase
Price was $10,200,000 to be paid $2,400,000 in cash and certain
restricted common stock in TLGI to be of a dollar value equal to

However, as a result of the Gulf National Litigation and the
Provident Litigation that Loewen was facing, the Exchange Shares
do not have a valud equal to the consideration called for in the
Stock Purchase Agreement of $7,800,000, Flanagan alleges.
Flanagan and the Trust have asserted 15 proofs of claim and
administrative expense claims against the Settlement Debtors on
account of among other things, the Purchase Agreement, the
Consulting Agreement, the Lease and the Flanagan Lawsuit.

To resolve the dispute, the parties entered into a Settlement
Agreement which provides for:

(a) Entry Into Lease Amendment and Assumption of Lease as

(b) The Lease Term will be extended for an additional period of
five years commencing on July 17, 2000 and terminating on July
16, 2005.

(c) The rent under the Lease as amended by the Lease Amendment
will be: $600,000 annually for the first year of the extended
lease term, $780,000 for the second and third years of the
extended lease term, $840,000 for the fourth year of the extended
lease term and $900,000 for the fifth year of the extended lease

(d) LGII's option to renew the Lease for two additional five-year
periods has been deleted.

(e) LGII's option to purchase the Leased Premises has been

(f) LGII has agreed to deposit with Flanagan a cash security
deposit of $600,000, subject to a reduction in the amount of
$75,000 on the first day of each of the last six months of the
term of the Lease as amended by the Lease Amendment.

(g) Conveyance of Mausoleum Parcel will be effected immediately
upon the execution of the Settlement Agreement.

(h) LGII and Flanagan acknowledge that the Employment Agreement
expired in accordance with its terms on July 18, 1998 and that
LGII has no liability to Flanagan on account of the Employment

(i) Flanagan will covenant with LGII that Flanagan will not
compete with LGII within a 50 mile radius of the Leased Premises.

(j) Flanagan and the Trust will release the Settlement Debtors
and related persons and entities from claims

(k) There will be mutual release of claims

(l) Flanagan will agree to dismiss with prejudice the Flanagan
Lawsuit, all causes of action or claims asserted therein and any
other lawsuit, or proceeding, previously filed. Flanagan and the
Trust on the one hand and the Settlement Debtors on the other
have covenanted not to commence any lawsuit or proceeding or

(m) Each party to the Flanagan Lawsuit will bear its own
attorneys' fees and costs previously incurred in connection with
that lawsuit.

(n) Flanagan and the Settlement Debtors will agree that the ADR
Notices that the Debtors have sent will be withdrawn, and any
procedures initiated thereby terminated. (Loewen Bankruptcy News
Issue 24; Bankruptcy Creditors' Service Inc.)

MESQUITE STAR: Judge Approves Motion To Postpone Sale
According to the Las Vegas Review-Journal on July 12, 2000, Judge
Michael Douglas granted the motion to postpone the previously
announced foreclosure sale of distressed Mesquite Star.  The
Lawyers representing some of the 276 employees of the hotel-
casino brought forth the motion to the court for the
protection of their clients interests before any sale takes
place.  Employees were somehow swindled from their own money with
health coverages deducted from each paycheck and not able to use
it when needed.  Representing the workers, Attorney Matt
Callister says, the postponement was necessary so he and co-
counsel Richard Dreitzer could get a ruling on a Nevada statute
granting employees a lien against a bankrupt corporation, for
wages that are due.  After opening in July 1998, Mesquite
Star filed for Bankruptcy Protection under Chapter 11 in Dec. 1,
reporting $ 22 million in assets and $23 million in debts.

Debtor: NSC Corp.
        40 Lydecker Street
        Nyack, NY 10960

Type of Business: Asbestos-abatement, demolition & dismantling
and other specialty contracting services.

Chapter 11 Petition Date: July 17, 2000

Court: Southern District of New York

Bankruptcy Case No.: 00-13233

Debtor's Counsel: John Howard Drucker
                  Laurence May
                  Angel & Frankel, P.C.
                  460 Park Avenue
                  New York, NY 10022
                  (212) 752-8000
                  Fax: (212) 752-8393

Total Assets:  $ 37,054,941
Total Debts:   $ 34,653,094

RADIO ONE:  Moody's Assigns Ratings
Moody's Investors Service confirmed the B3 rating of Radio One
Inc.'s $84 million of 12% senior subordinated discount notes due
2004. At the same time, Moody's also assigned a "caa" rating to
Radio One's $310 million of Remarketable Term Income Deferrable
Equity Securities (HIGH TIDES). The senior implied rating and
senior unsecured issuer rating at Radio One Inc. are B1 and B2,
respectively. The outlook for the ratings is stable. The rating
of its existing bank facility has been withdrawn.

Despite the increase in leverage that will result from the
partially debt-financed acquisitions and the HIGH TIDES issuance,
Radio One's ratings are confirmed to reflect the continued
progress in the execution of the company's strategy to become the
preeminent operator of the urban radio format. The transactions
include: the $1.3 billion acquisition of radio stations from
Clear Channel, the $40.0 million acquisition from Shirk and IBL,
the $24.0 million acquisition of stations from Davis
Broadcasting, and the $16.0 million acquisition of KLUV-AM from
Infinity Broadcasting (expected to close in the fourth quarter).
The transactions will be financed with drawdowns under its new
$750 million secured bank facility, its $310 million of proceeds
from the HIGH TIDES issuance, and $505 million of cash proceeds
from its completed follow-on equity offerings.

Although leverage rises in the near term, Radio One is likely to
become a more durable enterprise because it benefits from gains
in cash flow diversification and an improved market presence. The
pending transactions will increase Radio One's portfolio size
from 27 stations to 50 stations while pro-forma EBITDA is
tripled. The company's cash flow will also be diversified across
18 markets, instead of 9, which further insulates the company
from advertising spending downturns in any of its markets.

However, Radio One's ratings continue to be constrained by the
company's high leverage, modest cash flow coverage of interest
and dividends, its aggressive acquisition strategy, and the
exposure associated with being a niche operator.

The ratings also reflect the imbedded event risk and the residual
integration risks of Radio One's ongoing acquisition strategy.
Moody's also notes that Radio One's management depth will have to
be increased.

Radio One's ratings also reflect the potential difficulties of
being a niche operator. Radio One may be exposed to a contraction
in advertising spending targeting the African American community
in a cyclical downturn. Additionally, a decline in the popularity
of the urban radio format, though unlikely, would adversely
impact Radio One.

Radio One's ratings continue to be supported by the clarity and
limits of its acquisition strategy, the company's leading
presence in key African-American markets, the positive
fundamentals associated the African-American market, and the
company's substantial use of equity in the execution of its
growth strategy.

Since its inception, Radio One has articulated and executed a
focused strategy aimed at growing its presence in the top 40
African American markets. This strategy immediately delineates a
group of stations as ideal for Radio One's purposes, thus
minimizing possible acquisition missteps.

Lastly, the "caa" rating of the HIGH TIDES reflects its deep
subordination within the capital structure to present and
potential debt obligations at Radio One. The B3 rating on the
subordinated notes reflects its legal subordination to a
substantial level of bank debt in Radio One's capital structure.
The outstanding senior debt under the bank facility, following
the transactions, is expected to be $550 million.

Radio One, pro forma for the pending transactions, will own
and/or operate 50 radio stations in 19 markets. Forty-nine of the
stations will be located in 18 of the top 40 largest African
American markets in the country. Radio One is headquartered in
Lanham, Maryland.

SAFETY-KLEEN: Motion For More Time To File Schedules & Statements
The Debtors estimate they have tens of thousands of creditors.  
The process of identifying those entities and determining the
nature and amount owed to each creditor by July 10, 2000, is
impossible, the Debtors say.  The Debtors tell Judge Walsh that
they are diligently working to assemble all of the data necessary
to produce coherent schedules of assets and liabilities and
statements of financial affairs in order to comply with the
requirements set forth in 11 U.S.C. Sec. 521.  Reasonably, the
Debtors estimate that process can be completed if granted an
extension, through September 8, 2000, of the time period provided
under Rule 1007 of the Federal Rules of Bankruptcy Procedure.
(Safety-Kleen Bankruptcy News Issue 4; Bankruptcy Creditors'
Service Inc.)

SEIYO: Japan Suffers Second Major Bankruptcy In A Week
Seiyo Corp., a real estate unit of Seibu Department Store Ltd.,
filed for special liquidation with debts of 517.5 billion yen
(US$4.79 billion), according to a newswire report. Tokyo-based
Seiyo follows in the steps of Japanese department store operator
Sogo Co., which last week sought bankruptcy court protection with
debts of 1.87 trillion yen-Japan's second biggest corporate
bankruptcy. A spokesman for Seibu Department Store, the core firm
of the Saison group, said the Saison group and creditor banks had
entered the final stages of talks on spreading the financial
burden of liquidating Seiyo. Of the 30 companies in the Seiyo
Corp group, 23 will be liquidated. Saison and Dai-Ichi Kangyo
Bank Ltd., Saison's main creditor, agreed the Saison Group would
repay between 80 to 90 billion yen to banks over two years.
Saison group firms include consumer financing company Credit
Saison Co., supermarket chain operator Seiyu Ltd., restaurant
chain Seiyo Food Systems Inc. and shopping center operator Parco
Co. (ABI July 18, 2000)

STONE & WEBSTER: Sale to The Shaw Group Inc. Approved
Stone & Webster, Incorporated (OTC Bulletin Board: SWBIQ)
announced on July 17, 2000 that the U.S. Bankruptcy Court for the
District of Delaware approved the sale of substantially all of
the Company's assets to The Shaw Group Inc. (NYSE: SGR) and
the transaction was effectively closed on Friday, July 14, 2000.

The Shaw Group was the successful bidder for Stone & Webster's
assets in a sale proceeding under Chapter 11 of the U.S.
Bankruptcy Code. Accordingly, Stone & Webster's previously
announced asset sale agreement with Jacobs Engineering Group Inc.
(NYSE: JEC) has been terminated. The sale produced a topping bid
evaluated at approximately $147 million over the previous Jacobs
agreement. Jacobs received a breakup fee of $10 million.

Under terms of The Shaw Group's successful bid, Shaw acquired
substantially all of the assets and assumed certain liabilities
of S&W, for a total purchase price of approximately $38 million
in cash and approximately $105.8 million of Shaw Common Stock
(approximately 2.2 million shares). Shaw also assumed liabilities
with a book value of approximately $450 million and acquired
assets with a book value of approximately $600 million. Shaw has
agreed to complete substantially all of Stone & Webster's
contracts for current and future projects.

Stone & Webster filed for court protection under Chapter 11 of
the U.S. Bankruptcy Code on June 2, 2000. As the Company has
previously stated, because the sale of assets is occurring in the
context of a pending Chapter 11 case, it is not possible to
determine at the present time what value, if any, will ultimately
be received by Stone & Webster's stockholders.  Such a
determination can only be made after substantial resolution of
Stone & Webster's Chapter 11 reorganization.

Stone & Webster's Chairman and CEO, H. Kerner Smith, stated: "We
are pleased that the value of the Company's assets was maximized
through the bid process, and we believe that the combination with
The Shaw Group will provide a strong competitor in the markets
served and provide opportunities for growth."

Stone & Webster's common stock is trading as an over-the-counter
("OTC") equity security under the symbol "SWBIQ." Quotation
service is provided by the OTC Bulletin Board and the National
Quotation Bureau, LLC "Pink Sheets." Market makers are providing
orderly trading of the stock. Investors should call their
brokers for daily pricing and volume information.

SUN HEALTHCARE: No Air Conditioning For SunBridge Despite Deaths
Despite a congressman's insistence, a nursing home where three
elderly people died during a blistering heat wave said it will
not install air conditioning.

On July 7, Rep. Tom Lantos, D-San Mateo, asked the company for a
cooling system at the SunBridge Care and Rehabilitation home and
talked about legislation to force installation of air
conditioning at nursing homes.

But on Friday, Greg Johnston, spokesman for Sun Healthcare Group,
the company that acquired SunBridge in 1998, said no.

"Sun Healthcare will not be installing air conditioning in the
SunBridge facility primarily due to excessive costs," Johnston
said. "We are looking at alternatives to some sort of complete
air conditioning that won't be so cost prohibitive."

The cost was estimated at $500,000. SunBridge has been in Chapter
11 bankruptcy since last fall, although officials expect it to be
out of bankruptcy by the end of the year.

Lack of air conditioning is blamed for excessive heat in the home
June 14 and 15 when outside temperatures reached 108 degrees in
the county.

Besides the deaths, five others were treated or hospitalized
during the two days. The state is investigating the 274-bed
facility to decide whether the deaths and hospitalizations were
the result of heat-related illnesses and, if so, if they were
brought on by the lack of air conditioning or the facility's
inability to provide proper care for patients during extreme


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.

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