TCR_Public/000808.MBX             T R O U B L E D   C O M P A N Y   R E P O R T E R

                 Tuesday, August 8, 2000, Vol. 4, No. 154

                               Headlines

AMERICAN ECO: Files Chapter 11 Cases in Delaware & CCAA Application in Ontario
BAYSIDE COMMUNITY: Voters Will Decide Fate of Troubled Hospital on Aug 12
BELTEX CORP: California Underwear Manufacturer Files for Chapter 11 Protection
BREED TECHNOLOGIES: Can't Make Lease-Related Decisions Without Harvard's Input
CAMBRIDGE INDUSTRIES: CFO Says Everybody Will Share in the Sale Proceeds

CHEVAL GOLF: Stockholders Optimistic On Club's Future
CREDIT SUISSE: Fitch Downgrades Multifamily Mortgage Pass-Through Certificates
DATAPOINT CORP: Committee Taps Centerville Advisors as Financial Advisors
DELTA FINANCIAL: Moody's Downgrades Senior Debt Rating From B3 To Caa2  
DELTA FINANCIAL: Announces Agreement to Restructure $150M Notes Due 2004

DIMAC HOLDINGS: Obtains Extension of Exclusive Period to October 4, 2000
ELECTRO-CATHETER: Nearly Out of Assets, Now Exploring Sale of Corporate Shell
FARMLAND INDUSTRIES: Moody's Downgrades Ratings As Liquidity Tightens
FRUIT OF THE LOOM: Committees Oppose Payment of Emergence Bonus To Bookshester
FULCRUM DIRECT: Lowenstein Sandler Retained to Represent Creditors' Committee

GENESIS/MULTICARE: Second Motion for Extension of Time To File Schedules
GENEVA STEEL: Spencer Stuart Hired to Recruit New Technology Officer
GLOBE MANUFACTURING: Bank Lenders Agree to Forbear Remedies through Sept. 15
GOSS GRAPHIC: Announces $147.5 Million Second Quarter New Order Intake
GULF STATES: Union Reject Contract Offer & Bankruptcy Steel Mill to Shutdown

HARNISCHFEGER INDUSTRIES: Beloit To Sell Equity Interest in Beloit Tullins
IMPERIAL HOME: Announces Reorganization Plan to Emerge from Chapter 11
INTEGRATED HEALTH: Motion To Reject Countryside Nursing Home Mgt. Contract
KEY PLASTICS: Plastic Firm Suitors Trimmed Down to Four
KINROSS GOLD: S&P Places Gold Miner & Processor on CreditWatch

KITTY HAWK: Proposes $610,000 Key Employee Retention Program
LAROCHE INDUSTRIES: To Shutter Louisiana Plant Until Market Conditions Improve
LEASING SOLUTIONS: Lease Sale Transaction Cancels Claims & Nets Cash to Estate
LIGHTHOUSE FOODS: Case Summary and 17 Largest Unsecured Creditors
LOCKPORT MEMORIAL: Hospital Cuts Losses; Joint Operation Undergo

LOEWEN GROUP: Asks Court to Okay Concentration of Asset Sale Proceeds
LUMENYTE INTERNATIONAL: Irvine Fiber Optic Company Emerges from Chapter 11
MASTER GRAPHICS: Bankruptcy Court Approves $12MM DIP Financing Agreement
NATIONAL HEALTH: Files Third Amended Plan and Disclosure Statement
NEW AMERICAN HEALTHCARE: Purchase of Puget Sound Completed

NEWCOR INC: Increased Percentage of EXX and Affiliates Stock Ownership
OPTEL, INC.: Asks for Extension of 365(d)(4) Lease Decision Period to Nov. 30
PENN TRAFFIC: Opening Nine New Stores in Vermont and New Hampshire
SAFETY-KLEEN: Obtains Okay to Pay Claims Giving Rise To Contractors' Liens
TOWN & COUNTRY: S&C Banco Pays $2,900,000 to Take Over Insolvent Bank

TRI VALLEY: Files Applications to Employ Core Professionals
U.S. LEATHER: Order Extends Time To Assume & Reject Leases through Sept. 29

Meetings, Conferences and Seminars

                               *********


AMERICAN ECO: Files Chapter 11 Cases in Delaware & CCAA Application in Ontario
------------------------------------------------------------------------------
AMERICAN ECO CORPORATION (NASD-OTC: ECGOE, TSE: ECX) announced that it filed
for protection in the courts in Delaware and Ontario under the relevant
bankruptcy laws.

In the United States, American Eco Holding Corp. filed for protection under
Chapter 11 of the United States Bankruptcy Code along with its affiliates
Chempower, Inc. of Canton, Ohio; The Turner Group, Inc. of Port Arthur, Texas;
United Eco Systems, Inc. of High Point, North Carolina; Separation & Recovery
Systems, Inc. of Irvine, California; MidAtlantic Recycling Technologies, Inc.
of New Jersey; Specialty Management Group, Inc. of Dallas, Texas; NUS, Inc. of
Portland, Oregon; Lake Charles Construction Corporation of Lake Charles,
Louisiana; Cambridge Construction Service Corp. of Dallas, Texas; and AEC
Funding Corp. of Houston, Texas, and their respective subsidiaries.

The Company likewise has applied for protection in Canada under the Companies
Creditors Arrangement Act ("CCAA") for MM Industra Limited of Halifax, Nova
Scotia; CCG Development, Inc. of Toronto, Ontario; and Industra Service
Corporation of Vancouver, British Columbia, and their respective subsidiaries.

The Company also announced the appointment of Thomas Gardner as Interim
President & CEO and Todd Quattlebaum as Chief Operating Officer. Mr. Gardner
was previously Interim President & COO and Mr. Quattlebaum has been a Vice
President of the Company and the operating executive of two American Eco
subsidiaries since January, 2000.

American Eco is a consolidator of outsourcing services to the energy, pulp &
paper, power generation and construction management service industries.


BAYSIDE COMMUNITY: Voters Will Decide Fate of Troubled Hospital on Aug 12
-------------------------------------------------------------------------
The Houston Chronicle reports on the 50-year-old Bayside Community Hospital,
describing it in critical condition due to depleted funds and low Medicare
reimbursements.  Trinity Bay Hospital administrator, Stephen Goode says, Aug.
12 will be the date to decide whether to give the hospital another transfusion
of tax money or let fate decide its future.  If the voters disapproves,
Bayside Community in Texas, will be forced to close its doors by December, Mr.
Goode said.  "What price do you place on human life? We've had mothers whose
children were treated in our emergency room who very likely would have died if
they had to drive 30 miles down the road for help."  Mr. Stephen Goode has
served as hospital administrator for nearly 5 years now.


BELTEX CORP: California Underwear Manufacturer Files for Chapter 11 Protection
------------------------------------------------------------------------------
Beltex Corp., a newly acquired company of JAZ Industries, Inc., filed for
Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Belmont,
California.  The Associated Press reports that the men's underwear
manufacturer had trouble negotiating with some of its creditors so it was
forced to seek protection from the bankruptcy court.  The company's chief
executive and owner of JAZ, Joe Zullo, said that the filing "allows business
to continue as usual so that our customers will see no changes in the quality
and availability of our products."


BREED TECHNOLOGIES: Can't Make Lease-Related Decisions Without Harvard's Input
--------------------------------------------------------------------------
BREED Technologies, Inc., et al., filed a motion to further extend the time
within which it and its debtor-affiliates must assume or reject unexpired
nonresidential real property leases pursuant to Section 365 of the Bankruptcy
Code for an additional ninety days, to November 14, 2000.  A hearing on the
motion has been scheduled for 2:00 p.m. on August 22, 2000, in Delaware.  

BREED asserts that the Company is still not in a position to determine which
leases, if any, should be assumed, assumed and assigned or rejected.  The
Debtors suggest they may not be in a position to make those determinations
until they consummate sales of their assets or are ready to confirm a plan of
reorganization.

BREED management recently accepted a proposal from Harvard Industries, Inc.,
to acquire the debtors and related entities and to fund a plan of
reorganization.  As previously reported in the TCR, The Harvard transaction is
subject to higher and better offers through a competitive bidding process and,
if necessary, a Court-supervised Auction.  BREED indicates that it can't make
final decisions about lease dispositions until it knows what Harvard (or
another acquirer) will want to do.  Further, in the event the Harvard
transaction is not consummated, BREED will proceed with a stand-alone plan,
and that plan would probably embody a different decision matrix.  


CAMBRIDGE INDUSTRIES: CFO Says Everybody Will Share in the Sale Proceeds
------------------------------------------------------------------------
Crain's Detroit Business reports that the U.S. Bankruptcy Court approved a
sale of Cambridge Industries, Inc., assets to Meridian Automotive Systems Inc.
That sale puts Cambridge in the final stage of the Chapter 11 process.  
Cambridge CFO Don Campion says, "It's now just the winding down of the
bankruptcy proceedings," [and] "Everybody will get something, but how much is
something we just don't know yet."  

Cambridge Industries, a Madison Heights, Michigan-based plastic supplier,
filed for Chapter 11 in May, blamed its downfall on the cost of implementing
new programs together with shortage of funds by majority owner and financier
Bain Capital Inc.


CHEVAL GOLF: Stockholders Optimistic On Club's Future
-----------------------------------------------------
The St. Petersburg Times reports that Cheval Golf & Country Club, Inc.,
submitted a Plan of Reorganization to the U.S. Bankruptcy Court.  The Plan
calls for full payment over time to all creditors.  Shareholders retain their
interests and their shares in the club are re-valued at $6,000 apiece.  

Cheval Golf & Country Club filed for Chapter 11 bankruptcy protection in June.
The facility is located in a gated community in Lutz, Florida (near Tampa/St.
Petersburg) and frequented by professional athletes and corporate executives.
Cheval disclosed millions of dollars of debts in its bankruptcy filing,
including $1,700,000 owed to Bank of America.



CREDIT SUISSE: Fitch Downgrades Multifamily Mortgage Pass-Through Certificates
------------------------------------------------------------------------------
Credit Suisse First Boston Mortgage Securities Corporation's, multifamily
mortgage pass-through certificates, series 1995-M1, $2.7 million class D is
downgraded to 'BBB-' from 'BBB' by Fitch. The $5.1 million class E is
downgraded to 'B+' from 'BB'. The $1.5 million class F-1 and the $1.2 million
class F-2 are both downgraded to 'CCC' from 'B-'. The remaining classes are
affirmed as follows: the $41.7 million class A at 'AAA'; the $5.5 million
class B at 'AA'; and the $7.8 million class C certificates at 'A'. Fitch does
not rate classes G-1 and G-2. The rating actions follow Fitch's annual review
of the transaction, which closed in April of 1995.

The transaction had a balance of $68.9 million as of June of 2000, which
reflected a 12% decline from the balance at origination. The collateral was
geographically dispersed, with concentrations in FL (25% of the outstanding
balance), AZ (13%) and GA (12%). Fitch was provided with year-end (YE) 1999
financials for all assets. Based on a comparison of the assets that reported
performance for YE 1998 and YE 1999, the weighted-average debt service
coverage ratio (DSCR) declined to 1.08 times (x) from 1.14x in 1998. As of the
date of this review, one asset, accounting for 3% of the outstanding balance,
was delinquent and in the hands of the special servicer.

The rating actions reflect the continued deterioration in the performance of
the pool. Based on operating results for the YE 1999, nine loans, accounting
for 28% of the outstanding balance, had a DSCR below 1.0x. While there were
more loans with DSCRs below 1.0x during the last Fitch review, in Nov. of
1999, this year DSCRs for loans below 1.0x are much lower, reflecting
declining net operating income (NOI). All nine loans with a DSCR below 1.0x
were assumed to default. The expected loss, based on capitalized NOIs averaged
29%, vs. 18% during the last review. Note, in calculating the expected loss
Fitch took into account the existence of tax credits.

There are mitigating factors to consider. First, despite the underperformance
of the pool, only one asset is currently delinquent. Second, while a
significant number of assets have had a history of low DSCRs, delinquencies
over the last year and a half have not exceeded 7% of the outstanding pool
balance.



DATAPOINT CORP: Committee Taps Centerville Advisors as Financial Advisors
-------------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Datapoint Corporation seeks
an order approving its Application to retain Centerville Advisors, LLC, as its
financial advisor.  Specifically, Centerville will:

      (A) Analyze the debtor's operations, business strategy, and competition
          in each of its relevant markets as well as analyze the industry
          dynamics affecting the debtor;

      (B) Analyze the debtor's financial condition, business plans, operating
          forecasts, management and the prospects of its future performance;

      (C) Prepare a financial valuation of the ongoing operations of the
          debtor;

      (D) Assist the Committee in developing, evaluating, structuring and
          negotiating the terms and conditions of a plan of reorganization,
          including the value of the securities, if any, that may be issued to
          the holders of the debtor's debentures under any restructuring plan;

      (E) Analyze any potential divestitures of the debtor's operations; and

      (F) Perform such additional services and provide additional advice and
          assistance as the Committee may request from time to time.

Centerville will receive $25,000 per month for the services it will render to
the Committee for a maximum of four months commencing July 1, 2000, subject to
further extension approved by order of the Bankruptcy Court overseeing
Datapoint's restructuring.  Centerville will also be entitled to a $50,000
success fee, payable on the Effective Date of any plan, should the general
unsecured creditor class receive a distribution equal to or greater than $34.8
million in the aggregate.


DELTA FINANCIAL: Moody's Downgrades Senior Debt Rating From B3 To Caa2  
----------------------------------------------------------------------
Moody's Investors Service downgraded the senior debt rating of Delta Financial
Corporation to Caa2 from B3. The rating outlook remains negative. Moody's said
that Delta's financial flexibility is severely constrained, because of
negative cash flow from operations.

Delta has sufficient liquid resources over the near term, because of its
recently concluded debt restructuring and certain interim financing measures,
Moody's said. Furthermore, Delta has taken steps to reduce its cost structure,
in response to a sharp decline in originations. However, in Moody's opinion it
is unlikely that these steps will enable the company to generate adequate
levels of cash flow from operations in the intermediate term.

In Moody's opinion, Delta will therefore need additional long-term capital to
repay its senior long-term debt at maturity. The Caa2 rating reflects the
potential severity of the loss that the bondholders may incur, unless the
company obtains a significant capital infusion, Moody's said. The negative
outlook reflects Moody's assessment that the prospects for the company's core
operations could deteriorate over time.

Delta Financial Corporation, based in Woodbury, New York, specializes in non-
conforming home equity loans.


DELTA FINANCIAL: Announces Agreement to Restructure $150M Notes Due 2004
------------------------------------------------------------------------
Delta Financial Corporation (NYSE: DFC) announced an agreement to restructure
its outstanding $150 million 9 1/2% Senior Notes due 2004 and a streamlining
of its operations.

The highlights are as follows:

     *   Delta and the holders of its Senior Notes agreed to restructure the
         Senior Notes, which will provide Delta with greater financial
         flexibility by giving the Company immediate access to cash flows it
         would otherwise have received in the future. Under the terms of the
         agreement, the Company would be able to obtain financing against a
         portion of its residual assets immediately and in the future.

     *   In response to challenges in the marketplace facing the entire
         mortgage banking industry, the Company will streamline its operations
         to improve efficiencies and increase profitability. The streamlining
         includes implementing a workforce reduction, consolidating some of
         its offices and reducing senior management salaries.

With the consent of more than 50% of its Senior Note holders, a negative
covenant in the Senior Notes Indenture that prevented the Company from
encumbering, or otherwise obtaining financing against, any of its residual
assets has been modified. This change will give the Company greater
flexibility in dealing with liquidity needs in funding its operations.

In consideration for the Senior Note holders' consent to modify this
restriction, the Company has agreed to offer current Senior Note holders the
option of exchanging their existing securities for New Senior Notes, to be
secured by at least $165 million of the Company's residual assets and ten-year
warrants to buy approximately 1.6 million shares, at an initial exercise price
of $9.10 per share, subject to upward or downward adjustment in certain
circumstances.

The Company expects that this Exchange Offer will be completed by October 15,
2000. The other terms of the New Notes will be substantially similar to the
Senior Notes.

The Company also announced today a continuation of its efforts to streamline
its operations and increase efficiency in response to economic conditions that
have affected the entire mortgage banking sector. The Company previously
announced the closing of its correspondent division, which had less favorable
cash flow and profitability dynamics than the Company's broker and retail
divisions. The Company also announced today a workforce reduction of
approximately 17% across all areas of the Company and a reduction in the
salaries of senior management (an aggregate of approximately 13%) and other
personnel.

Hugh Miller, President and Chief Executive Officer commented, "The past two
years has been a challenging period for the subprime mortgage industry. We
witnessed the Russian debt crisis that drained the liquidity out of the fixed
income markets for most of the second half of 1998, predatory lending
accusations that dominated headlines since the beginning of 1999, and interest
rates that have risen sharply since the second half of 1999. These factors
have played a key role in reducing liquidity and profitability throughout the
subprime mortgage industry.

"We have not been immune to these events. Our decision to restructure our
Senior Notes and to streamline our operations was in the best interests of the
Company and our stakeholders. The debt restructuring, in effect, permits the
Company to adjust the timing of its cash flows to improve its liquidity
position. The workforce and salary reductions are expected to help improve the
overall performance of the Company by lowering expenses, increasing
efficiencies, and improving profitability.

"While we are saddened by the need to layoff dedicated employees, it was
necessary given the current and anticipated environment in which Delta
operates. The debt restructuring and the expense reductions positions us to
run the Company based on a business model that conforms more to the current
mortgage banking environment," Mr. Miller concluded.

Founded in 1982, Delta Financial Corporation is a Woodbury, NY-based
specialty consumer finance company engaged in originating, acquiring, selling
and servicing non-conforming home equity loans. Delta's loans are primarily
secured by first mortgages on one- to four-family residential properties. The
Company originates home equity loans primarily in 27 states. Loans are
originated through a network of approximately 1,500 brokers and the Company's
Fidelity Mortgage retail offices. As of June 30, 2000, loans were also
purchased through a network of approximately 120 correspondents. Since 1991,
Delta Financial has sold approximately $6.3 billion of its mortgages through
26 AAA rated securitizations. As of March 31, 2000, the Company's servicing
portfolio was approximately $3.7 billion.


DIMAC HOLDINGS: Obtains Extension of Exclusive Period to October 4, 2000
------------------------------------------------------------------------
DIMAC Holdings, Inc., sought and obtained, pursuant to 11 U.S.C. Sec. 1121, a
further extension of its exclusive period to file a plan of reorganization.
Following a hearing on the Company's request, The Honorable Mary F. Walrath
ruled that the Debtor's exclusive period during which to file a plan of
reorganization is extended to and including October 4, 2000.  Additionally,
the Delaware Court ruled, the direct marketing services firm is granted an
extension of its exclusive period during which to solicit creditors'
acceptance of any plan it may propose to and including December 3, 2000.



ELECTRO-CATHETER: Nearly Out of Assets, Now Exploring Sale of Corporate Shell
-----------------------------------------------------------------------------
While Electro-Catheter Corporation continues to liquidate its operating
assets, it has received expressions of interest from third parties who may be
interested in acquiring the debtor's corporate shell.  Such a transaction
would likely be the centerpiece of a plan of reorganization funded by a plan
proponent.  The debtor has recently obtained approval to retain certified
public accountants to prepare audited financial statements for submission to
the SEC and SEC counsel to provide legal advice with respect to SEC compliance
issues and the interplay between public securities and bankruptcy law. The
debtor requires additional time to allow its professionals to finish their
work and to conclude negotiations on a plan of reorganization.

Against that backdrop, Electro-Catheter asks the Bankruptcy Court for a
further extension of its exclusive period within which to file a plan of
reorganization for a period of ninety days, to and including November 13, 2000
and to extend the time to obtain acceptances thereof for an additional sixty
days to and including January 12, 2001.

A hearing will be held on August 14, 2000 commencing at 9:00 AM before the
Honorable Stephen A. Stripp, Bankruptcy Judge, US Bankruptcy Court, 402 East
State Street, Trenton, New Jersey.


FARMLAND INDUSTRIES: Moody's Downgrades Ratings As Liquidity Tightens
---------------------------------------------------------------------
Moody's Investors Service downgraded Farmland Industries' ratings due to
continuing soft operating performance, deteriorating debt protection measures,
tight liquidity, and its increasing reliance on joint ventures with their own
debt for cash flow to service its own debt obligations. The rating spread
between Farmland's senior implied rating and its senior unsecured , industrial
revenue bond, and preferred stock ratings was also widened to reflect the
establishment of a new senior secured credit facility which has superior
position to Farmland's unsecured debt. The outlook for Farmland's ratings
remains negative reflecting the company's tight liquidity situation, as well
as the possibility of continued downturn in other agricultural markets in
which Farmland participates. A failure to improve debt protection measures and
its liquidity situation could result in a further downgrade. Moody's also
assigned a Ba3 rating to Farmland's new secured bank credit facility.

Ratings downgraded are:

               a)  Senior implied rating to Ba3 from Ba1

               b)  Issuer rating to B1 from Ba1

               c)  Senior unsecured shelf to (P)B1 from (P)Ba1

               d)  Guaranteed Industrial Revenue Bonds to B1 from Ba1

               e)  Preferred stock to "b3" from "ba3"

City Of Coffeyville, Kansas Industrial Revenue Bonds downgraded to Baa1 from
A3. This rating is based upon support of indemnity bond provided by Safeco
Insurance Company of America (A1 Financial Strength Rating), as well as a
direct payment obligation from Farmland Industries.

Ratings assigned:

              * Senior secured bank credit facility at Ba3

Farmland's operating performance continues to be weak, reflecting softness in
a number of its operations - particularly its important nitrogen fertilizer
operations -- and higher debt levels incurred in recent years. Its weak debt
protection measures have forced Farmland to replace its $1.1 billion bank
financing with a smaller $800 million senior secured credit facility. The
facility expires in May of 2001, and represents a significant refinancing risk
for the company. Over 50% of Farmland's debt is now short term. Establishment
of the new facility also places unsecured debt within Farmland's capital
structure in an inferior position to the new bank facility.

Over the past few years, Farmland has contributed a number of its significant
operations to Joint Ventures with other agricultural cooperatives. Certain of
these JVs have their own financing, which must be serviced prior to any cash
being upstreamed to service debt at Farmland Industries. Due to Farmland's
current soft operating performance, the cooperative is now more dependent upon
these JV cash flows to service its own debt - magnifying the significance of
the structural subordination that thereby occurs..

The diversity of Farmland's other food and agricultural businesses have
partially offset weakness in its fertilizer operations. In recent years,
Farmland has invested heavily it its downstream food processing operations
such as pork and beef processing, and grain trading. While these too are
businesses impacted by agricultural cycles, their stronger relative
performance has dampened the negative impact that fertilizer markets have had
upon overall debt protection measures.

Farmland's base capital plan enhances the cooperative's financial flexibility
in that it allows its board to vary the level of earnings that are distributed
to its members in the form of cash. In addition, the substantial level of
subordinated debt held by Farmland's membership provides further important
protection for senior debtholders.

Farmland is the largest farmer-owned cooperative in the United States with
FY1999 revenues of $10.7 billion.


FRUIT OF THE LOOM: Committees Oppose Payment of Emergence Bonus To Bookshester
------------------------------------------------------------------------------
The Informal Committee of Senior Secured Creditors of Fruit of the Loom, Inc.,
and its debtor-affiliates objects to the payment of an emergence bonus to
Dennis Bookshester on two bases:

    (A)  The emergence bonus of Mr. Bookshester is reduced by "only 20%" if a
          plan of Reorganization is not confirmed by March 31, 2001.

    (B)  Mr. Bookshester will receive at least $800,000 regardless of when the
          bankruptcy proceedings conclude.

The Informal Committee proposes three modifications:

     (1)  That the emergence bonus will decrease to $600,000 if a
          Reorganization Plan is confirmed between April 1, 2001 and June 30,
          2001;

     (2)  A new emergence bonus will be negotiated if a Reorganization Plan is
          not confirmed by June 30, 2001; and

     (3)  The emergence bonus should be part of any Reorganization Plan filed
          before October 31, 2000.

The Informal Committee suggests that June 30, 2001 is an appropriate "trigger
date" because it parallels the Key Employee Retention Program previously
approved by the Court. The Informal Committee lends its full support to
payment of a $1,000,000 emergence bonus if a Reorganization Plan is confirmed
by March 31, 2001.

The Informal Committee argues that the proposed modifications will truly
incentivize an efficient conclusion to the bankruptcy proceedings while
rewarding Mr. Bookshester for his facilitating role.

The Official Committee of Unsecured Creditors weighs- in with its own
Objection. The $200,000 reduction between emergence dates presents conflict of
interests, the Official Committee says. While Mr. Bookshester could surely use
the extra money, it may be in the estate's best interest, for whatever reason,
to emerge from bankruptcy after the deadlines proposed in this bonus payment
scheme. Because the condition of the estate should be paramount, the Official
Committee reasons that no target date should be set.

The Official Committee disputes the claim of the Informal Committee that the
emergence bonus for the CEO should match that of the Key Employee Retention
Program ("KERP").  The Official Committee sees no similarity. KERP
participants receive no penalty if the June 30, 2001 deadline is not met. They
simply forfeit a bonus of up to 15%.  (Fruit of the Loom Bankruptcy News,
Issue No. 9; Bankruptcy Creditors Service Inc., 609/392- 0900)


FULCRUM DIRECT: Lowenstein Sandler Retained to Represent Creditors' Committee
-----------------------------------------------------------------------------
By order entered on June 28, 2000, the Honorable Mary F. Walrath authorized
the retention Lowenstein Sandler PC as legal counsel to the Official Committee
of Unsecured Creditors of Fulcrum Direct, Inc., Fulcrum West LLC and Equipment
Bond Purchaser, Inc., effective as of February 12, 2000.  Ravin Sarasohn,
Cook, Baumgarten, Fisch & Rosen PC is relieved of its duties and authorized
and directed to withdraw as counsel to the Committee effective as of February
11, 2000.


GENESIS/MULTICARE: Second Motion for Extension of Time To File Schedules
------------------------------------------------------------------------
Genesis Health Ventures, Inc., and MultiCare, Inc., ask the Delaware
Bankruptcy Court to grant a further extension of the time to file Schedules
and Statements through September 22, 2000, and now ask for authority to file
their Schedules and Statements on a partially consolidated basis.

The Debtors tell Judge Walsh that they expect to be able to file their
Schedules and Statement, all in the appropriate formats prescribed by the
Bankruptcy Code, the Bankruptcy Rules, and the Local Bankruptcy Rules of the
District of Delaware by September 22, 2000, provided that they are given the
authority to consolidate Schedules and Statements in instances where
delineation by individual debtor would entail significant administrative
burdens and suggest the need of a significantly longer extension than that
requested.

The Debtors believe that it would be an extremely difficult and onerous task
to compile their Schedules and Statements for each and every debtor-entity,
and absent the authority for partial consolidation, they would need a longer
extension than that requested in the motion.

GHV tells the Judge they have had several conversations with representatives
of the United States Trustee in which they enumerated the specific schedules
and statements which, where feasible, will be filed on an entity-specific
basis and which schedules and statements will be filed on a consolidated
basis, but they do not specify what the attitude of the US Trustee is toward
the request made in the motion.

Multicare tells the Court that they intend to contact and cooperate with the
U.S. Trustee to determine a way to prepare their Schedules in a manner that is
both suitable to the U.S. Trustee and practical from an administrative
standpoint.  (Genesis/Multicare Bankruptcy News, Issue No. 3; Bankruptcy
Creditors Service Inc., 609/392- 0900)


GENEVA STEEL: Spencer Stuart Hired to Recruit New Technology Officer
--------------------------------------------------------------------
Geneva Steel Company asks the Bankruptcy Court in Utah for entry of an order
approving its employment of SSI (US) Inc., doing business as "Spencer Stuart,"
as a professional recruiter to assist Geneva in its search for a Director of
Technology and Information Systems.  The firm's retainer will be a fixed fee
of $60,000.


GLOBE MANUFACTURING: Bank Lenders Agree to Forbear Remedies through Sept. 15
----------------------------------------------------------------------------
Globe Manufacturing, a worldwide maker of Glospan(R) spandex, announced
that it has entered into a forbearance agreement with its existing bank
lenders until September 15, 2000. Under the forbearance agreement, the bank
lenders will not exercise remedies available to them under the bank credit
agreement as a result of Globe's existing violations of the credit agreement,
which include financial covenant defaults and the failure to pay a principal
loan payment.

The Company said that the forbearance agreement offers Globe the financial
flexibility to continue to pay vendors and employees, make deliveries and
serve customers in the normal course of business while it negotiates a
financial restructuring of the Company with its bank lenders and bondholders.
Under the terms of the forbearance agreement, the Company will not make the
interest payment to holders of its Senior Subordinated Notes due on August 1,
2000.

Globe previously announced that it is evaluating strategic options that would
enable it to reduce its long-term debt load. The Company said that it has
sufficient liquidity to meet normal obligations of trade creditors and
employees as a result of cash flow from its operations. Globe has retained the
financial advisory firm of Rothschild Inc. to assist management in analyzing
and developing strategic alternatives related to restructuring its long-term
debt.

The Company is actively involved in discussions with its bank lenders and
bondholders regarding these alternatives. The Company believes that under each
of the scenarios its is considering its trade creditors will be unimpaired.
Established in 1945, Globe Manufacturing Corp. produces Glospan(R) and
Cleerspan(R) Spandex Performance Fibers and is a premier worldwide spandex
fiber supplier. Available in a range of deniers from 20 through 5040 and
various packaging put-ups, Glospan(R) is distributed to over 40 countries
through five major distribution channels. Globe is registered under the
internationally recognized ISO 9000 standard as an ISO 9001 manufacturer.


GOSS GRAPHIC: Announces $147.5 Million Second Quarter New Order Intake
----------------------------------------------------------------------
Goss Holdings, Inc., the parent company of Goss Graphic Systems, Inc.,
announced strong financial results for the second quarter of 2000.
Continued substantial order flow worldwide has helped fuel the company's
recovery with new order intake increasing 95% over the previous year's second
quarter, from $75.7 million to $147.5 million. New orders for the first six
months of 2000 totaled $342.4 million, an increase of $172.2 million from the
comparable 1999 period.

Total backlog increased over the six month period from $409.3 million to $
458.8 million. "We are very pleased with our strong order flow and backlog
strength since it demonstrates the global marketplace's continued confidence
in Goss," stated James P. Sheehan, Goss Chairman, President and CEO. Goss' net
sales for the quarter were $163.0 million compared to $160.6 million for the
1999 quarter. For the first six months of 2000, Goss recorded net sales of
$272.3 million as compared to $309.9 million for the comparable 1999 period.

Gross profit for the second quarter increased by $32.3 million to $30.4
million, representing 18.7% of sales. For the first six months of 2000, gross
profit increased by $30.5 million representing 16.8% of sales.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for
the quarter amounted to $14.3 million, an increase of $37.2 million from the
1999 period (after exclusion of $4.0 million of legal settlement income in
1999). For the first six months of 2000, EBITDA totaled $15.5 million, an
increase of $36.7 million from the comparable 1999 period (after exclusion of
$ 20.0 million and $5.0 million of legal settlement income in 2000 and 1999,
respectively).

"Our improved margins reflect the cost reduction initiatives in our
operations, which are ongoing. The strong earnings performance and focused
working capital management have helped our cash flow from operations to exceed
our plan," Sheehan added.

On July 25, 2000, the U.S. Bankruptcy Court for the District of Delaware
issued a final decree closing the Chapter 11 cases of Goss. The Company will
make the final payment of the amounts due to trade vendors under its plan of
reorganization later this month.

Goss initiated the "pre-arranged" Chapter 11 proceeding last summer to
expedite implementation of its capital restructuring plan. The plan had been
previously approved by a committee of its noteholders, primary lenders under
the company's revolving credit facility and Stonington Partners. The filing
only included Goss' U.S. operations.

Goss Graphic Systems, Inc. is a global leader in the manufacture of advanced
technology web offset press systems for the newspaper and commercial printing
industries. In business since 1885, the company supplies a broad range of
printing press equipment and services to worldwide markets.


GULF STATES: Union Reject Contract Offer & Bankruptcy Steel Mill to Shutdown
----------------------------------------------------------------------------
Gulf States Steel finally decided to do an orderly shutdown of its plant after
members of the United Steelworkers of America repudiated the company's latest
contract offer, the Associated Press reports.  The steel company would have
secured a $130 million federal loan guarantee had the contract been approved.
The notification of the shutdown was filed in the U.S. Bankruptcy Court of
Gadsden, Alabama, and a hearing is scheduled for August 18.  


HARNISCHFEGER INDUSTRIES: Beloit To Sell Equity Interest in Beloit Tullins
--------------------------------------------------------------------------
Beloit Corp., BWRC Inc., BWRC Dutch Holdings seek the Bankruptcy Court's
authority to authorize their indirect subsidiary BOBO 1 SARL, a limited
liability company organized under the laws of France, to sell its shares in
Beloit Tullins (Beloit France), pursuant to a Share Sale Agreement between
Bobo and Fincovest, a joint stock company organized under the laws of
Switzerland, unless a higher and better offer is received at least two days
prior to the Court's hearing on the motion.

The Debtors also ask Judge Walsh in Delaware to authorize Beloit, on behalf of
itself and certain of its non-debtor affiliates, to waive certain claims and
take actions to effectuate the Agreement.

Beloit France must be sold, the Debtors tell Judge Walsh. The financial
situation at Beloit France is precarious. If not sold, Beloit France will have
to be liquidated through French insolvency proceedings. Should this occur,
Beloit and its affiliates would receive little, if anything, on account of
Intercompany Receivables and a French liquidator would press to collect on
Beloit France's Intercompany Receivables. Moreover, under French insolvency
laws, the Debtors may be held liable to France's creditors for any shortfall
from the realization of its assets. Such liability may be asserted by Beloit
France's creditors if Beloit France becomes insolvent, but is time barred
three years from the date of the judgment either approving the debtor's
reorganization or ordering its compulsory liquidation. Such liability may be
in excess of $2,000,000.

To sell Beloit France, Beloit scoured internationally for buyers for this 99%
Bobo owned company which manufactures, sells and services paper machinery in
the European market. Fincovest is the only prospective purchaser that responds
with an offer to buy the shares of Beloit France.  In an exercise of their
business judgment, the Debtors entered into the Share Sale Agreement with
Fincovest, under which:

Fincovest will:

    (a)  pay Bobo $1.00 as consideration for the purchase;

    (b)  set off certain Intercompany Receivables against Intercompany
          Payables of Beloit France or waive such Receivables in the aggregate
          amount of approximately $85,788, estimated as of May 10,2000;

    (c)  subscribe to the increase of the capital of Beloit France in the
          amount of 1.5 million French francs, and

    (d)  use all other means necessary to ensure that Beloit France does not
          fall into "cessation of payments" within 24 months following the
          completion of this transaction.

    (e)  cease using the company name "Beloit" or any name, trade mark or
          intellectual property of the Hamischfeger Group, except for
          Technology of the Site, which according to the Agreement refers to
          "information in non-tangible form that, without the intent to use
          the Harnischfeger Group's or a third party's intellectual property
          for a purpose not permitted by the Agreement, ... is retained in the
          memories of those persons who have had authorized access to such
          intellectual property or industrial property."

Beloit agrees, on behalf of itself and its non-debtor subsidiaries, to:

         waive and release certain Beloit France Intercompany Payables, after
          giving effect to the setoff of the Beloit France Intercompany
          Receivebles, in the aggregate amount of approximately $557,576
          estimated as of May 10, 2000.

The Buyer is purchasing the shares of Beloit France without any
representations or warranties, except as to title. If this Court does not
approve the Agreement by August 31, 2000, the Agreement will become null and
void.

The Debtors believe that the consideration to Bobo proposed under the
Agreement is fair and reasonable, and the Agreement is the product of good
faith, arm's-length negotiations between Beloit and the Buyer.

Accordingly, the Debtors ask the court to issue an order giving authority for:

    (a)  the Moving Debtors to authorize Bobo to sell its shares in Beloit
          France pursuant to the Agreement;

    (b)  Beloit to release, on behalf of itself and its non-debtor affiliates,
          certain claims against Beloit France; and

    (c)  the Moving Debtors to authorize Bobo to sell the shares or assets
          of Beloit France to another third party in the event a bona fide
          binding higher and better offer is received at least two days prior
          to the hearing on the Motion.

(Harnischfeger Bankruptcy News, Issue No. 25; Bankruptcy Creditors Service
Inc., 609/392-0900)


IMPERIAL HOME: Announces Reorganization Plan to Emerge from Chapter 11
----------------------------------------------------------------------
Crain's Cleveland Business reports that Doug Kelly, the CEO of troubled
wallpaper company, has prepared a plan to emerge from bankruptcy.  The chief
executive of Imperial Home Decor Group Inc. will submit a reorganization plan
to the U.S. Bankruptcy Court in Wilmington, Del., by year-end.  The plan will
help Imperial Home raise its revenues, to upgrade the company's web site and
to sell one of the wallpaper manufacturer major subsidiaries.  Imperial Home
got three letters of intent, whose names were not disclosed, showed interest
in buying Vernon Plastics Inc. of Haverhill, Mass.

Imperial Home Decor Group Inc. filed for Chapter 11 bankruptcy protection last
January.  CEO Doug Kelly says he will use the vast power of online marketing
and catalog sales, which were mistakenly neglected in the past.


INTEGRATED HEALTH: Motion To Reject Countryside Nursing Home Mgt. Contract
--------------------------------------------------------------------------
Integrated Health Services, Inc., sought and obtained the Court's approval to
reject the contract between CCA Acquisition I, Inc. and Buchanan/SCC, Inc. for
CCA to manage the Countryside Nursing Home, because the Facility was operating
at a loss of $337,624 in 1999 and is projected for further loss of $441,024 in
2000, and the contract requires that CCA bear all financial burden of a loss.

Moreover, Buchanan has alleged that, as of the Filing Date, CCA is responsible
for the sum of $750,163 with regard to revenue shortfall, and a further
$274,084 for operational improvements to be undertaken. Under section 365 of
the Bankruptcy Code, in order to assume the contract, any cure amounts have to
be determined and paid.

Given the cure amount, and the historical and projected losses associated with
the contract, the Debtors believe that the rejection of the contract is a
proper exercise of business judgment.  (Integrated Health Bankruptcy News,
Issue No. 6; Bankruptcy Creditors Service Inc., 609/392- 0900)


KEY PLASTICS: Plastic Firm Suitors Trimmed Down to Four
-------------------------------------------------------
The Michigan-based, Key Plastics, LLC, Plastic News reports, list of suitors
is now down to four:

    a)  Becker Group LLC of Sterling Heights, Mich.;
    b)  NYX Inc. of Livonia, Mich.;
    c)  Carlyle Group Inc. of Washington;
    d)  Oak Hill Capital Partners, corporate offices in Wilmington, Del.

CEO David C. Benoit said in a telephone interview on July 25, "It's a little
premature yet in terms of where we are.  In about six weeks, we may have a
better idea as to what is happening."  Mr. Benoit would not disclose any
details on the four firms that are interested in Key Plastics.

Automotive Plastic Firm, Key Plastics filed for Chapter 11 in U.S. Bankruptcy
Court in the Eastern District of Michigan last March 23, listing debts of $353
million and assets of $331 million.


KINROSS GOLD: S&P Places Gold Miner & Processor on CreditWatch
--------------------------------------------------------------
Standard & Poor's placed its ratings on Kinross Gold Corp. and its wholly
owned subsidiary, Kinam Gold Inc., on CreditWatch with negative implications.

The CreditWatch placement reflects the impact of the continuing low gold price
on recent and expected operating and financial results.  Standard & Poor's
says it will consider these factors, together with the implications of the
company's recent decision to suspend preferred dividends, to resolve the
CreditWatch.

RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS

                                    RATING
    i)   Kinross Gold Corp.
          Corporate credit rating     BB
          Subordinated debt rating    B+
          Bank loan rating            BB
   
    ii)  Kinam Gold Inc.
          Corporate credit rating     BB
          Preferred stock rating      C


KITTY HAWK: Proposes $610,000 Key Employee Retention Program
------------------------------------------------------------
Kitty Hawk requests that the Bankruptcy Court overseeing its chapter 11
proceedings enter an order authorizing implementation of a key employee
retention program. Kitty Hawk will pay the key employees who retain employment
through the earlier of the effective date of a plan of reorganization or
conversion to Chapter 7, a retention bonus equal to six months salary.

Additionally, the bonus would be payable in six monthly installments
beginning January 1, 2001 if the cases remain in Chapter 11 and a plan of
reorganization is not confirmed by December 31, 2000. If every current
employee were retained by Kitty Hawk through the Effective Date, the maximum
aggregate retention payments due under the Retention Program would total
$610,000.

The debtors are represented by Robert D. Albergotti, John D. Penn, Sarah B.
Foster, of the law firm of Haynes and Boone, LLP.


LAROCHE INDUSTRIES: To Shutter Louisiana Plant Until Market Conditions Improve
------------------------------------------------------------------------------
According to Dow Jones, the bankrupt LaRoche Industries Inc.'s Louisiana plant
will temporarily cease operations in mid-August.  The closure, the Company
indicates, will continue until market conditions improve.  The causes for the
closure of the Gramercy, La.'s chemical producer's plant, according to Dow
Jones, are the rising prices of raw materials, depressed market prices, and
reduced sales volumes.


LEASING SOLUTIONS: Lease Sale Transaction Cancels Claims & Nets Cash to Estate
------------------------------------------------------------------------------
By order entered on July 14, 2000, the Honorable Arthur S. Weissbrodt, US
Bankruptcy Court Northern District of California, San Jose Division, gave his
approval for Leasing Solutions Inc. sell certain equipment leases to MTX, Inc.
The transaction serves as a cornerstone of a Settlement Agreement among the
debtor, MTX, Inc. and the State of California.  The transaction results in the
withdrawal of proofs of claim totaling $2,000,000 and a $1,355,500 cash
payment to the Debtors estate.  


LIGHTHOUSE FOODS: Case Summary and 17 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor:  Lighthouse Foods LLC
          100 SE 1st Avenue
          Clara City MN 56222

Chapter 11 Petition Date:  August 2, 2000

Court:  District of Minnesota

Bankruptcy Case No.:  00-43450

Debtor's Counsel:  John A. Hedback, Esq.
                    Foster, Wentzell, Hedback & Brever
                    Suite 201 Anthony Place 2855
                    Anthony Lane South
                    St. Anthony, MN 55418

Total Assets:  $ 2,100,800
Total Debts:   $ 1,278,494

Largest Unsecured Creditors

Star Of The West Milling         $ 105,915

Chippewa County Treasurer         $ 21,295

PCA-Packaging Corporation         $ 10,482

Buhler Inc.                        $ 8,520

Archer Daniels Midland             $ 7,962

The Work Connection                $ 7,424

Westview Sales Company             $ 6,087

Pac One                            $ 5,961

United Mehadrin Kosher             $ 5,876

G & S Staffing Services            $ 5,858

Massoud Kazemzadeh                 $ 5,433

JMS/Transport Clearings            $ 5,016

Dooleys Petroleum                  $ 4,595

Northern State Power               $ 4,444

Forklift Service                   $ 4,260

Chep USA                           $ 3,778

Sweetener Supply Corp              $ 3,740


LOCKPORT MEMORIAL: Hospital Cuts Losses; Joint Operation Undergo
----------------------------------------------------------------
The 134-bed Lockport Memorial Hospital, The Buffalo News reports, has reduced
its financial losses, according to CEO Clare A. Haar, since it filed for
Chapter 11 in May 1999.  After a year of joint management between Lockport
Memorial and Newfane Inter-Community Memorial Hospital, the CEO explains,
Lockport and Newfane will announce a union sometime this week, under the name
of Eastern Niagara Health System.  Joint documents approved by both hospitals
last year, will be put before a State Supreme Court in Albany for approval.  

Buffalo-based, Lockport Memorial is still seeking refinancing of its $13
million mortgage debt, administered by the state Dormitory Authority and
issued by the Federal Housing Administration, which is part of the Department
of Housing and Urban Development.


LOEWEN GROUP: Asks Court to Okay Concentration of Asset Sale Proceeds
---------------------------------------------------------------------
The Loewen Group, Inc., and its debtor-affiliates tell the Bankruptcy Court in
Delaware that if the proceeds from each separate Asset Sale are deposited into
separate bank accounts, those funds will earn interest at a meager 0-3% per
year.  If, however, all Asset Sale Proceeds are concentrated into a
centralized account, then the return can increase to 6-7% per year.
Additionally, concentration of the funds will lower administrative costs, ease
recordkeeping burdens and provide the Debtors with easier control of the
money.

Against that backdrop, the Debtors seek the Court's approval of Net Asset Sale
Proceeds Procedures with respect to the proceeds of sales consummated
under the Debtors' asset Disposition Program, and a corresponding modification
of the Court's order on the Replacement DIP Facility so as to carve out from
the adequate protection liens and claims granted to certain
prepetition secured lenders under the facility the proceeds of certain
asset sales generated by the Disposition Program and by other sales.
  
                        Net Asset Sale Proceeds Procedures

Under the proposed Procedures, the Debtors will deposit the net proceeds of
asset sales under the Disposition Program into a single, centralized account
maintained by LGII at First Union National Bank, the agent under the
Replacement DIP Facility. These Net Asset Sale Proceeds will be invested by
LGII in a manner consistent with the approved investment guidelines and the
investment limitations set forth in section 7.18 of the Credit Agreement
pending an order of the Court on how the proceeds will be distributed or their
use, if required under the terms of the Credit Agreement, to repay outstanding
balances under the Replacement DIP Facility.

The Debtors assure the Court that under the proposal, all transfers of Net
Asset Sale Proceeds under the Disposition Program to the Net Asset Sale
Proceeds Account will be made subject to the Property Interests. Moreover,
each respective Debtor will have a superpriority claim against LGII on
account of such transfer, with priority subject and subordinate only to:
(a) the priorities, liens, claims and security interests of the Replacement
DIP Facility Lenders; (b) the adequate protection liens and claims granted in
connection with the Replacement DIP Facility; and (c) other valid liens.

                       Amendment to Replacement DIP Facility

To protect the interests of creditors of those Debtors transferring Net Asset
Sale Proceeds to LGII, the Debtors seek an amendment to the Court's
Replacement DIP Facility Order to provide that the adequate protection liens
and claims granted by that order would not extend to proceeds transferred to
the Net Asset Sale Proceeds Account that were not previously encumbered by
those liens and claims. The Debtors also seek approval for this amendment to
apply to Net Asset Sale Proceeds generated from other asset sales in the
course of the chapter 11 cases.

In order that the Adequate Protection Claims and Liens will not extend to
previously unencumbered Net Asset Sale Proceeds transferred to LGII, the
Debtors propose that the Court carve out from the Adequate Protection Liens
and Claims proceeds transferred to the Net Asset Sale Proceeds Account by a
Debtor other than a Pledgor Debtor, whether such transfer relate to the
Disposition Program or other dispositions.

The Debtors submit that the Prepetition Secured Parties and the Prepetition
Collateral Agent will continue to have more than sufficient adequate
protection of their interests in their prepetition collateral, especially
because the Debtors have no net borrowings under the Replacement DIP Facility
and are holding approximately $100 million in cash that has been generated
primarily from operations. (Loewen Bankruptcy News, Issue No. 25; Bankruptcy
Creditors Service Inc., 609/392- 0900)


LUMENYTE INTERNATIONAL: Irvine Fiber Optic Company Emerges from Chapter 11
--------------------------------------------------------------------------
Lumenyte International Corp.'s reorganization plan, filed in May in the
Central District of California, was confirmed last week, according to a
newswire report.  The plan will provide a substantial cash payment to its
creditors.  The Irvine, Calif.-based company filed chapter 11 after its
secured lender, Imperial Bank, declared a default, claiming that LIC tangible
net worth did not increase at the rate called for under Imperials loan
documents. Imperial subsequently moved for the appointment of a state court
receiver that compelled LIC to institute the bankruptcy proceeding. Lumenyte
develops and manufactures plastic fiber optic lighting systems.  (American
Bankruptcy Insitute, 04-Aug-2000)


MASTER GRAPHICS: Bankruptcy Court Approves $12MM DIP Financing Agreement
------------------------------------------------------------------------
Master Graphics, Inc. (OTCBB:MAGRQ) announces that it received interim
approval from the Bankruptcy Court of its $12 million debtor-in-possession
(DIP) financing agreement to fund the Company's operations during its
restructuring process. The Company's prepetition lenders have agreed to extend
up to an additional $12 million in post-petition financing to fund the
Company's ongoing operating needs during its voluntary restructuring under
Chapter 11. The order from the Court permits the Company to borrow up to $4.5
million immediately upon execution of loan agreements with the remaining $7.5
million becoming available upon completion of the Company's operating plan.  
The Order also permits the Company to continue to use the prepetition lenders'
cash collateral under the Company's approximately $55 million prepetition
credit facility.

"We are encouraged by the level of support we have received from our vendors,
many of whom have resumed extending trade credit with respect to goods and
services purchased by our company in the weeks since commencing our
restructuring under Chapter 11," said Chief Executive Officer Michael Bemis.
"With our DIP financing in place, and the support of the vendor community and
our employees, Master Graphics is well-positioned to fund its operations and
to provide its customers with a full array of commercial printing and graphics
needs."

The Court also approved the Company's employee retention program, developed by
Master Graphics to provide an added measure of job and financial security to
employees during its restructuring. The employee retention program includes
additional compensation opportunities for employees who stay with the Company
through the restructuring process as well as incentive based opportunities
based upon meeting certain financial objectives to be set.

"The employee retention program was developed to minimize employee turnover,
retain talent in a tight labor market, and motivate employees throughout the
restructuring process, thereby ensuring that they continue to provide
essential services during this critical period," Mr. Bemis said. He noted that
the Company's ability to maintain its business operations and preserve and
maximize the value for its stakeholders is dependent on the continued
employment, active participation and dedication of employees who possess the
knowledge, experience and skills necessary to support Master Graphics'
business operations.

In other actions, the Court approved the Company's program for treatment of
reclamation claims, authorized the continuation of certain customer furnished
inventory practices and increased the amount permitted to be paid to certain
critical prepetition vendors from $2 million to $ 7.8 million.
Master Graphics, Inc. and its wholly-owned subsidiary, Premier Graphics, Inc.
filed its Chapter 11 case on July 7, 2000 in the U.S. Bankruptcy Court for the
District of Delaware in Wilmington.
Master Graphics provides high-quality, general commercial printing products to
numerous customers throughout the United States. The Cordova, Tennessee-based
company employs approximately 1,900 employees and operates 23 facilities in 14
states.


NATIONAL HEALTH: Files Third Amended Plan and Disclosure Statement
------------------------------------------------------------------
A hearing on the Third Modified Disclosure Statement of National Health &
Safety Corporation is scheduled for August 21, 2000 at 11:00 AM before
the Honorable Diane W. Sigmund, US Bankruptcy Court, 900 Market Street,
Philadelphia, Pa.  Objections to the Third Modified Disclosure Statement must
be filed no later than August 16, 2000.

Since 1993 the debtor has been primarily in the business of developing and
marketing the POWERx Network, a system which provides medical patients access
to medical services at a discount basis and which provides a method for
connecting medical providers willing to provide medical services on a
discount basis with such patients.

As of the Petition Date, the debtor developed a network of over 500,000
medical providers consisting of physicians, hospitals, nursing homes,
dentists, clinics and other medical providers necessary to deliver the POWERx
product to consumers. Unfortunately, the debtor was never successful in
marketing the POWERx product because the debtor never found an adequate
source of financing.

The debtor proposes a plan of reorganization that contemplates asset and cash
contributions to the debtor by KJE I, Ltd. and MedSmart. Under the current
plan, the debtor has focused on reacquiring POWERX now that MedSmart has
completed the technological development of the sales systems for POWERX.

Under the current plan, MedSmart (and POWERX) would become a wholly owned
subsidiary of the Reorganized Debtor. The existing owners of MedSmart will
receive stock in the reorganized debtor in exchange for contributing MedSmart
to the debtor.

In addition, KJE will contribute approximately $600,000 in working capital to
the debtor in exchange for stock in the Reorganized Debtor. The "royalty
stream" resulting from the sale of POWERx to MedSmart is expected to
ultimately exceed $750,000 per year; however, the "royalty interest" retained
by the debtor from the sale of POWERx constitutes only a small fraction of
the total profitability of the POWERx product.

The third amended plan accomplishes the acquisition of MedSmart and the
financial restructure of the debtor. The shareholders of MedSmart will
exchange all their shares in MedSmart for 130,000,000 Common Shares of the
reorganized debtor, making MedSmart a wholly owned subsidiary of the
Reorganized Debtor.

The plan also provides that KJE will contribute $600,000 in cash in exchange
for 45 million shares of the New Common Stock of the Reorganized
Debtor(approximately 18%). Unsecured creditors will receive Series A equity
units in exchange for their claims.

Unsecured Creditors with allowed claims will receive one Series A Equity Unit
for each $1.00 allowed claim. Each Equity Unit consists of one (1) share of
Series A preferred stock and one(1) Class A Warrant. The common stock of the
debtor would need to trade for a price of $.20 per share for the unsecured
creditors to receive payment in full of their claims upon conversion.

After reorganization the Reorganized Debtor will have a restructured balance
sheet taking it form its current stockholder's deficiency of approximately
$4.5 million to a post - reorganization positive net book value of
approximately $2.4 million, while carrying essentially no debt. MedSmart, as
a wholly owned subsidiary of the Reorganized Debtor would have cash equal to
the DIP Facility ($240,000) available for working capital.

According to the debtor, if the plan is not confirmed and the case is
converted to a liquidation case, the sole asset available to creditors will
consist only of the POWERx revenue stream acquired in the POWERx sale. The
fact that POWERx revenues do not have a proven track record makes estimating
the revenue stream even more difficult.


NEW AMERICAN HEALTHCARE: Purchase of Puget Sound Completed
----------------------------------------------------------
The $2.4 million purchase of Puget Sound Hospital by Pierce County from its
bankrupt Tennessee parent New American Healthcare Corp. has been completed,
according to the Associated Press.  The 160-bed private local facility will be
named Puget Sound Behavorial Health.  The renewed company will continue to
specialize in caring for people with psychiatric or drug-dependency problems
but would no longer render medical services.


NEWCOR INC: Increased Percentage of EXX and Affiliates Stock Ownership
----------------------------------------------------------------------
Newcor, Inc. (Amex: NER) announced that it has amended its rights plan to
increase from 15% to 17.5% the percentage that EXX Inc. and its affiliates and
associates can beneficially own of Newcor's common stock before triggering the
distribution of rights, and related consequences, under Newcor's rights plan.

On July 17, 2000, EXX submitted a written proposal to the Board of Directors
of Newcor proposing that EXX purchase newly issued shares of Newcor common
stock in order to increase its beneficial ownership to 34.84% and acquire
effective control of Newcor by controlling three Board seats and having David
A. Segal, Chairman of EXX, become Chairman of the Board and CEO of Newcor.
After careful consideration, the Board of Directors of Newcor rejected such
proposal today as not in the best interest of Newcor shareholders. EXX and Mr.
Segal were encouraged, however, to maintain an open dialogue with the Board
for the purpose of providing constructive suggestions with the goal of
maximizing shareholder value.

According to EXX's public filings, EXX is a Las Vegas, Nevada-based holding
company engaged in the design, production and sale of "impulse toys," watches,
kites, electric motors and cable pressurization equipment with net sales for
the year ended December 31, 1999 of $21.2 million.

Newcor is a leading manufacturer of precision machined components and
assemblies for the automotive, medium- and heavy-duty truck and agricultural
vehicle industries and is a manufacturer of custom rubber and plastic products
primarily for the automotive industry. Newcor is also a supplier of standard
and custom machines and systems primarily for the automotive and appliance
industries.


OPTEL, INC.: Asks for Extension of 365(d)(4) Lease Decision Period to Nov. 30
-----------------------------------------------------------------------------
OpTel, Inc., et al., filed a motion for an order extending the time within
which the debtors must assume, assume and assign or reject unexpired
nonresidential real property leases pursuant to Section 365(d)(4) of the
Bankruptcy Code.

The debtors seek an extension through and including November 30, 2000, so as
to allow them to conduct a further evaluation of the leases so that an
informed decision as to whether an assumption or rejection of the leases is
in the best interests of the debtors' estates.  Additional time is necessary
to accumulate data on the viability of the leased locations to help determine
the ultimate configuration of the reorganized debtors.  This is particularly
important in this case because the debtors are in the process of negotiating
the sale of certain of their assets.  Until the sale transactions are
finalized and approved by the court, it would be improvident for the debtors
to assume leases which may not be needed by the estate of the reorganized
debtors or reject leases which the potential purchaser may desire for itself.

The debtors have been rejecting those leases that are not favorable to the
estates.  However, the debtors require additional time to finalize their
evaluation of the leases and to conclude the negotiations for the sale of
certain of their assets.


PENN TRAFFIC: Opening Nine New Stores in Vermont and New Hampshire
------------------------------------------------------------------
Food retailer, Penn Traffic, the Associated Press reports, announced that it
had regained control of six supermarkets in Vermont and three others in New
Hampshire, which is scheduled to open in Aug. 13. The stores were leased to
The Grand Union Co. for almost 10 years now. President and CEO, Joseph V.
Fisher says, "We are excited about doing business again in Vermont and New
Hampshire. . . .  Our associates are working hard to restock the shelves and
spruce up the stores as soon as possible."

Penn Traffic owns and operates 220 supermarkets in upstate New York, Ohio,
West Virginia, Pennsylvania, Vermont and New Hampshire under the Big Bear, Big
Bear Plus, Bi-Lo, Quality, and P&C names. Penn Traffic reported a loss of
$26.7 million, or $1.33 per share, for the first quarter that ended April 29.
It has now lost nearly $87 million since emerging from bankruptcy
reorganization last June.


SAFETY-KLEEN: Obtains Okay to Pay Claims Giving Rise To Contractors' Liens
--------------------------------------------------------------------------
In the ordinary course of the Debtors' business, the Debtors use numerous
mechanics, tradespersons, and contractors to perform various services for
their Customers that give rise to a right to payment that could become
secured by a mechanic's, materialmen's, or other similar lien on the
Customers' property. For example, the Debtors frequently use Contractors to
supply materials, equipment, tools, and labor in the course of developing
corrective action programs for their Customers, assist in developing solutions
to technical and operational problems that arise in
the course of the Customers' operations, provide data evaluation, testing,
clean-up operations, and independent expertise necessary for such customers'
regulatory compliance, and to supply specially permitted waste handlers and
transporters. The Debtors also employ many Contractors to staff cleanup and
removal projects and perform other essential environmental and remediation
services on Customers' sites.

The Contractors services are a critical component of the services the
Debtors offer their Customers. If the Contractors refused to continue to
provide these services, it would severely compromise the Debtors, ability
to meet many of their obligations to Customers. Indeed, the Debtors believe
that without the Contractors' continued support and performance, the Debtors
and their estates would be irreparably harmed. Further, as a result of
nonpayment, many Contractors can put liens on Customers' property, which would
be in violation of the Debtors' obligations to these Customers.

Already many Customers have expressed concern about the prospect of Liens
and Interests being asserted against their properties by Contractors. Indeed,
some have even suggested that they likely would terminate their relationships
with the Debtors if their properties become burdened by Contractors' Liens and
Interests. Accordingly, to prevent the loss of valuable Customers, and to
facilitate the continued operation of the Debtors' businesses at their current
levels, the Debtors request authority to pay and discharge the repetition
claims of the Contractors described herein (the "Contractor Claims") to the
extent that such Contractor Claims have given, or could give, rise to Liens
and Interests against the Customers' property, regardless of whether the
Contractors have actually perfected their Liens and Interests.

It is critical, the Debtors argue that they be permitted to honor those
prepetition obligations to Contractors that could give rise to Liens and
Interests on Customers' property. As of the Petition Date, many Contractors
had not yet been paid for prepetition goods and services provided to Customers
at the Debtors, behest. The Debtors believe that these Contractors may refuse
to perform ongoing services for the Debtors and/or their Customers absent
payment of the prepetition amounts due them. The Debtors further believe that
many important Customers may terminate their relationships with the Debtors if
the Debtors permit Contractors to put Liens and Interests on their properties
such a loss of Customers could significantly impair the Debtors' cash flow and
revenues and, perhaps, threaten the Debtors' ability to reorganize. In short,
the Debtors' inability to satisfy these Contractor Claims in the ordinary
course of business will have a devastating impact on the Debtors, businesses.

Entertaining the Debtors' request, Judge Walsh Granted the Debtors Motion,
ruling that:

     A.  The Debtors are authorized, but not directed, in their sole and
         absolute discretion, to pay the Contractor Claims on the terms and
         subject to the conditions specified in the Motion, in the ordinary
         course of their businesses.

     B.  Any Contractor who accepts a payment pursuant to this order shall
         be deemed to have accepted the terms of this Order. By accepting
         payment pursuant to this order, the Contractor agrees to continue to
         provide prepetition goods and/or services to the Debtors for the
         benefit of their customers on ordinary and customary trade terms as
         in effect prior to the Petition Date ("Customary Terms").

     C.  If any Contractor accepts payment pursuant to this Order and
         subsequently fails or refuses to continue to provide goods and/or
         services on Customary Terms during the pendency of these Chapter 11
         cases, then (a) any postpetition payment received by such Contractor
         on account of a prepetition Contractor Claim shall be deemed to be a
         postpetition transfer and, accordingly, recoverable by the Debtors in
         cash upon written request, and (h) upon recovery by the Debtors, any
         such prepetition Contractor Claim shall be reinstated as if the
         postpetition payment had not been made; provided, however, that
         nothing in this paragraph shall preclude a Contractor from contesting
         such treatment by making a written request to the Debtors to schedule
         a hearing before this Court, which hearing the Debtors shall set for
         the next regularly-scheduled omnibus hearing date occurring more than
         ten (10) days after the date of such Contractor's request.

     D.  All banks upon which a check, draft, or wire transfer dated prior
         to, on, or after the Petition Date is drawn in payment of Contractor
         Claims are authorized and directed to (a) honor any such checks or
         drafts issued, upon presentation thereof, or any such wire transfer
         instructions, upon receipt thereof, and (h) rely upon the
         representations of the Debtors as to which such checks, drafts, or
         wire transfers are in payment of Contractor Claims under this order.

     E.  Neither this Order, nor any action by the Debtors' in accordance
         herewith, shall be construed as, or be deemed to be an assumption or
         rejection of any executory contract or unexpired lease between the
         Debtors and any creditor, including, but not limited to, the
         contractors, or otherwise affect the Debtorw rights under section 365
         of the Bankruptcy Code to assume or reject any executory contract or
         unexpired lease.

     F.  No payment made in accordance with this order shall be construed as or
         deemed to be an admission as to the nature, extent, or validity of
         any Contractor Claim or a waiver of any rights the Debtors may have
         to subsequently dispute such Contractor Claim on any grounds.

(Safety-Kleen News, Issue No. 5; Bankruptcy Creditors Service Inc., 609/392-
0900)


TOWN & COUNTRY: S&C Banco Pays $2,900,000 to Take Over Insolvent Bank
---------------------------------------------------------------------
S&C Banco, The Milwaukee Journal Sentinel reports, outbid others to take over
the insolvent bank in Almelund, Minn.  S&C Banco paid $2.9 million for the
right to takeover Town and Country Bank's $26.5 million in insured deposits
and $11.1 million in assets from Federal Deposit Insurance Corp.  The FDIC
took receivership of the Almelund bank after it was proclaimed insolvent.
"This is a good little solid bank to take because all those headaches are left
behind with the FDIC, and they had a good core deposit base," FDIC spokesman
David Barr related, who pictured the receivership as "sort of a cleansing
process" for failed banks.

According to S&C CEO, Charles Bullock, "They're in our back yards, so to
speak, and they're also in Minnesota.  It's difficult to enter the banking
market in Minnesota, and this gave us a way to do it more readily."  S&C is a
$300 million bank holding company located in New Richmond, Wisconsin.


TRI VALLEY: Files Applications to Employ Core Professionals
-----------------------------------------------------------
Tri Valley Growers, a California cooperative association, filed Applications
with the Bankruptcy Court to employ:

    (1)   Dorsey & Whitney LLP as general non-bankruptcy corporate counsel.

    (2)   Arthur Andersen LLP as accountants and financial advisors

    (3)   Goldsmith, Agio, Helms & Lynner, Ltd. as investment bankers.


U.S. LEATHER: Order Extends Time To Assume & Reject Leases through Sept. 29
---------------------------------------------------------------------------
An order entered on July 26, 2000 by the US Bankruptcy Court for the Eastern
District of Wisconsin, extends the period, pursuant to 11 U.S.C. Sec.
365(d)(4), within which U.S. Leather may assume, assume and assign, or reject
the non-residential real property leases July 26, 2000 until September 29,
2000.


Meetings, Conferences and Seminars
----------------------------------
August 9-12, 2000
   AMERICAN BANKRUPTCY INSTITUTE
      5th Annual Southeast Bankruptcy Workshop
         Hyatt Regency, Hilton Head Island, South Carolina
            Contact: 1-703-739-0800

August 14-15, 2000
   TURNAROUND MANAGEMENT ASSOCIATION
      Advanced Education Workshop
         Loews Vanderbilt Plaza, Nashville, Tennessee
            Contact: 1-312-822-9700 or info@turnaround.org
         
August 17-19, 2000
   ALI-ABA
      Banking and Commercial Lending Law -- 2000
         Renaissance Stanford Court
         San Francisco, California
            Contact: 1-800-CLE-NEWS

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

September 12-17, 2000
   NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
      Convention
         Doubletree Resort, Montery, California
            Contact: 1-803-252-5646 or info@nabt.com

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

September 20-22, 2000
   RENAISSANCE AMERICAN MANAGEMENT & BEARD GROUP, INC.
      3rd Annual Conference on Corporate Reorganizations
         The Regal Knickerbocker Hotel, Chicago, Illinois
            Contact: 1-903-592-5169 or ram@ballistic.com   

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

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

November 2-6, 2000
   TURNAROUND MANAGEMENT ASSOCIATION
      Annual Conference
         Hyatt Regency, Baltimore, Maryland
            Contact: 312-822-9700 or info@turnaround.org

November 27-28, 2000
   RENAISSANCE AMERICAN MANAGEMENT & BEARD GROUP, INC.
      Third Annual Conference on Distressed Investing
         The Plaza Hotel, New York, New York
            Contact: 1-903-592-5169 or ram@ballistic.com   
   
November 30-December 2, 2000
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Camelback Inn, Scottsdale, Arizona
            Contact: 1-703-739-0800

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

March 28-30, 2001
   RENAISSANCE AMERICAN MANAGEMENT & BEARD GROUP, INC.
      Healthcare Restructurings 2001
         The Regal Knickerbocker Hotel, Chicago, Illinois
            Contact: 1-903-592-5169 or ram@ballistic.com   

July 26-28, 2001
   ALI-ABA
      Chapter 11 Business Reorganizations
         Hotel Loretto, Santa Fe, New Mexico
            Contact: 1-800-CLE-NEWS

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

                               *********

A list of Meetings, Conferences and seminars appears in each Tuesday's edition
of the TCR.  Submissions about insolvency-related conferences are encouraged.

Bond pricing, appearing in each Friday's edition of the TCR, is provided by
DLS Capital Partners in Dallas, Texas.

For copies of court documents filed in the District of Delaware, please
contact Vito at Parcels, Inc., at 302-658-9911.  For bankruptcy documents
filed in cases pending outside the District of Delaware, contact Ken Troubh at
Nationwide Research & Consulting at 207/791-2852.

                               *********

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, Ronald Ladia, Zenar Andal, and Grace Samson,
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 * * *