TCR_Public/000816.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, August 16, 2000, Vol. 4, No. 160

                               Headlines

ABRAXAS PETROLEUM: Production Declines; 2Q Net Loss; EBITDA Positive
ADVANTICA RESTAURANT: Comp-Restaurant Sales Dismal; $19.5MM 2Q Loss
ADVOCAT, INC: Non-Compliance With Debt Covenants Continues
AVIVA AMERICA: Parent Company Discloses Subsidiary's Chapter 11 Filing
BIG SMITH: 2nd Amended Plan Projects 35-50% Recovery for Unsecureds

BUSINESSMALL.COM: Rebukes Employee's Filing of Involuntary Petition
CARMIKE: Moody's Lowers Ratings on 9-3/8% Senior Notes To C
CARMIKE CINEMAS: Organizational Meeting Scheduled for August 23
CODA ACQUISITION: NY Court Confirms Debtor's Amended Liquidating Plan
COHO ENERGY: Texas-based Oil & Gas Producer Reports 2Q Results

EIEIHOME.COM, INC.: Forbears on $718K Note from Ontario Purchasers
EINSTEIN/NOAH: Put Right Ruled an Equity Interest Rather than a Claim
EL PASO: Fitch Rates Utility's Unsecured Pollution Control Bonds BB+
FIRSTCITY FINANCIAL: Debt Defaults and Restructuring Efforts Continue
FOAMEX INTERNATIONAL: Settlement Agreement Resolves Lawsuits

FRUIT OF THE LOOM: Salem Sportswear Lease Nets $875,000 to Estate
GENESIS/MULTICARE: Stipulation With Cardinal Distribution Approved
GENEVA STEEL: Reports $500K Net Income in Second Quarter; $600,000 YTD
GENEVA STEEL: Court to Convene Disclosure Statement Hearing on Aug. 24
GLOBAL FINANCIAL: Files Chapter 11 with Pact to Sell Assets To Burrups

GLOBAL TISSUE: Committee Objects To Use of Cash Collateral
HARNISCHFEGER INDUSTRIES: Look for Plan of Reorganization by Sept. 15
HARNISCHFEGER INDUSTRIES: Moves to Reject Beloit Lease in Otsego, MI
HARTZ FOODS: Liquidating Plan Proposes 67%+ Recovery from Future Rents
HEDSTROM HOLDINGS: Committee Supports New Employee Retention Program

HEDSTROM HOLDINGS: Unable to Cope, Needs Until Nov. 7 to Propose Plan
HERCULES, INC.: Moody's Places Senior Unsecured Debt Under Review
IMC GLOBAL: Moody's Places Long-Term Debt Under Review for Downgrade
INTEGRATED HEALTH: Second Motion To Extend Rule 9027(a) Removal Period
KINETICS GROUP: Fitch Assigns BB- Ratings To Senior Credit Facilities

LAIDLAW: Bondholder-Plaintiff Lawyers Continue to Solicit for Clients
LOEHMANN'S: Plan Projecting 53% Recovery Set for Confirmation Sept. 6
LOEWEN GROUP: Stay Modified to Allow $11MM Collection from Cornerstone
MEDICAL RESOURCES: CEO Whynot Sees Improvement in Company's 2Q Results
MICHAEL PETROLEUM: $107MM Recap Completed & Emerges from Bankruptcy

MOSSIMO INC: Announces Financial Results For 2Q Ended June 30, 2000
PENN TRAFFIC: Reports Comp-Store Sales Up 1.3% With a Huge Footnote
PETSEC ENERGY: Selling Mustang Island Properties for $6,375,000
PHILIP SERVICES: Releases First Set of Post-Emergence Financials
PHONETEL TECHNOLOGIES: 2Q Results Report $4.9MM Loss on $17MM Revenues

PRIME RETAIL: 2Q Results Trigger Non-Compliance with Debt Covenants
RAYTECH CORPORATION: Takes $7.2 Billion Charge for Bankruptcy Costs
RELIANCE GROUP: Announces $500+ Million Net Loss in the Second Quarter
REPUBLIC GROUP: Moody's Places Senior & Senior Sub Debt Under Review
ROYAL MORTGAGE:  Case Summary and 20 Largest Unsecured Creditors

RSL COMM: Senior Debt Remains on Review for Further Moody's Downgrade
SABRATEK: Retains & Employs Experts in Software Licensing Action
SAFETY-KLEEN: Committee Balks at Bid to Pay Prepetition Licensing Fees
SOUTHERN MINERAL: Plan Transfers 78% of New Equity to Debentureholders
TEXFI INDUSTRIES: Hires Mr. Timpson as New CFO for $5,000 a Week

TITANIUM METALS: Revenues Decline 15% and Losses Soar by a Factor of 4
VIEW SYSTEMS: Rubin Investment Group Discloses 29.8% Equity Stake
WESTMORELAND COAL: Turnaround Plan Working as 2Q Net Losses Decline
WESTSTAR CINEMAS: Disclosure Statement Hearing Scheduled for August 30
WSR CORP: Requests Extension of Exclusive Period through October 9

ZETA CONSUMER: iSolve Purchases Inventory from Bankruptcy Auction

                               *********

ABRAXAS PETROLEUM: Production Declines; 2Q Net Loss; EBITDA Positive
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Abraxas Petroleum Corporation (OTC Bulletin Board:AXAS) released
financial and operating results for the second quarter of 2000,
showing significant improvement from the second quarter of 1999.

Bob Watson commented that, "Abraxas is in a long term program to use
its extensive asset base to build a significant oil and gas company,
and we made progress in that direction in the quarter just passed.
Even after the impact of our commodity hedges, which were placed in
effect out of necessity during the downturn of 1998 and 1999, our
realized price per Mcfe increased 58% from 1999 and 17% from the first
quarter of this year.

"We look forward to November when the bulk of our hedges expire, and
we can take full advantage of what we believe is a very healthy
outlook for North American natural gas. The hedge expirations will
enable major increases in revenues, cash flows and earnings. In
addition, we aggressively continue our program to improve operating
results outside of price improvements. Moreover, a promising joint
venture with EOG Resources Inc., involving Abraxas controlled West
Texas acreage, was recently announced, and operations have already
commenced.

"Finally, we believe our common stock is very undervalued based on our
net asset valuation, and last week we announced our coming August 18
listing on the American Stock Exchange under the symbol ABP. The
broader exposure and more efficient trading on the AMEX should allow
us to recognize a valuation more commensurate with our peers in the
natural gas universe."

In the second quarter of 2000, Abraxas posted a loss of $3.6 million,
compared to a loss of $6.7 million in 1999.  Cash flow before changes
in working capital for the second quarter was $5.6 million ($4.2
million recurring) compared to $760,000 last year.  EBITDA was $13.2
million ($11.8 million recurring) this quarter compared to $10.5
million in 1999. Impacting results for the second quarter were hedging
losses of $2.9 million.

Production declined from 8.5 Bcfe in 1999 to 6.6 Bcfe this past
quarter due to property sales since last year's quarter. Natural gas
comprised 78% of the Company's production with 60% of this gas
component coming from the Company's Canadian assets. Overcoming the
production decline, oil and gas sales revenues were up 22%, from $14.2
million to $17.3 million. Price realizations increased from $1.66 per
Mcfe in 1999 to $2.63 this past quarter.

The Company's debt for equity exchange in late 1999 drove down
interest costs from $9.6 million in second quarter of 1999 to $7.6
million in the just completed period, an almost 21% reduction.  The
company's repurchase of $7.1 million of its 11-1/2 % notes during the
quarter will further improve interest expense going forward.  The
Company invested $14.8 million on capital spending in the second
quarter of 2000, all in ongoing exploitation efforts.  This compares
to $5.9 million spent in second quarter of 1999.

Abraxas Petroleum Corporation is a San Antonio-based crude oil and
natural gas exploration and production company that also processes
natural gas.  It operates in Texas, Kansas, Wyoming and western
Canada.


ADVANTICA RESTAURANT: Comp-Restaurant Sales Dismal; $19.5MM 2Q Loss
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Advantica Restaurant Group (fka Flagstar) reports that total revenues
decreased 3.2% to $296.9 million in the second quarter ended June 28,
2000. Comparable-restaurant sales were similarly dismal, F&D Reports'
Scrambled Eggs publication observes, with Denny's restaurants
increasing just 0.6%, while the Coco's and Carrows chains dropped 3.0%
and 2.9%, respectively. The Company says it is divesting the latter
two chains and is "committed to reinvesting capital in (its) Denny's
units." The Company made headway in improving its profitability
picture: Advantica narrowed its net loss to $19.5 million -- a 52.8%
decrease.


ADVOCAT, INC: Non-Compliance With Debt Covenants Continues
----------------------------------------------------------
Advocat Inc. (Nasdaq OTC:AVCA) announced its results for the second
quarter ended June 30, 2000. The Company reported earnings of $73,000,
or $0.01 per diluted share, in the second quarter of 2000 compared
with a loss of $2.6 million, or $0.48 per share, for the same period
in 1999. Results for the second quarter included $263,000 in non-
recurring charges associated with the continuing negotiations with the
Company's lenders and primary lessor.

Net revenues for the second quarter ended June 30, 2000 increased 8.2%
to $48.3 million compared with net revenues of $44.6 million in 1999.
Net revenues increased 7.4% to $36.3 million in U.S. nursing homes
compared with $33.8 million in the second quarter of 1999 and were
primarily due to higher patient revenues related to increased Medicare
utilization and PPS rate increases at several facilities that became
effective April 2000. Net revenues for U.S. assisted living facilities
rose 14.2% to $8.1 million compared with net revenues of $7.1 million
in 1999, and Canadian operations were up 5.1% to $3.9 million compared
with net revenues of $3.7 million in the second quarter of 1999.

Operating expenses decreased 2.3% to $37.2 million in the second
quarter compared with $38.0 million in 1999. The Company continues to
implement cost reductions in response to Medicare reimbursement
changes.

The Company also announced that it has negotiated extensions on two
loans with outstanding balances of $25.5 million at June 30, 2000. The
loans include a working capital line of credit and a bridge loan with
a combined balance outstanding of $14.4 million and an acquisition
line of credit with an outstanding balance of $11.1 million at June
30, 2000. The Company received extensions to August 31, 2000, for the
amounts under the working capital line of credit, bridge loan and the
acquisition line of credit. The Company is negotiating a restructuring
of the working capital line of credit and bridge loan, and negotiating
replacement long-term financing on the acquisition line of credit. At
June 30, 2000, the Company had negative working capital of $55.4
million primarily as result of the classification of a majority of the
Company's debt as current liabilities. The classification of a
majority of the Company's debt as current maturities is due to the
Company's non-compliance with debt covenants in various debt
agreements, including net worth, cash flow and debt-to-equity ratio
requirements. Cross-default or material adverse change provisions
contained in the agreements allow the holders of substantially all of
the Company's debt to demand immediate repayment.

As of this date, the Company had not obtained waivers of the non-
compliance. The Company cannot assure that internally generated cash
flows from earnings and existing cash balances will be sufficient to
fund existing debt obligations on future capital and working capital
requirements through fiscal year 2000.

The Company is currently discussing potential restructuring,
modification and refinancing alternatives with its lenders and primary
lessor. Any demands for repayment by lenders or the inability to
obtain waivers or refinance the related debt would have a material
adverse impact on the financial position, results of operations and
cash flows of the Company. If the Company is unable to generate
sufficient cash flow from its operations or successfully negotiate
debt or lease amendments, it will explore a variety of other options,
including, but not limited to, equity financing from outside
investors, asset dispositions or relief under the United States
bankruptcy code.


AVIVA AMERICA: Parent Company Discloses Subsidiary's Chapter 11 Filing
----------------------------------------------------------------------
Aviva Petroleum Inc. (OTC Bulletin Board: AVVPP.OB) disclosed that its
wholly owned subsidiary Aviva America, Inc., filed a voluntary
petition for reorganization under Chapter 11 of the U.S. Bankruptcy
Code in order to achieve a comprehensive restructuring of its debts.  
API management believes that a successful reorganization of AAI's
debts will improve the liquidity of AAI and the Company through the
reduction or dismissal of certain of AAI's debts.  API management says
it cannot predict with any degree of certainty the amount, if any, of
recorded liabilities that may be reduced or dismissed in connection
with this proceeding or the overall impact that it may have on the
API.

API reported net earnings of $9,300,000 for the six months ended June
30, 2000, compared to a net loss of $813,000 for the corresponding
1999 period.  Included in the first half 2000 results are gains of
$3,452,000 on the transfer of partnership interests to the Company's
senior lender and an extraordinary gain of $4,680,000 on the related
extinguishment of debt.

Oil and gas revenues for the first half of 2000 were $4,313,000
compared to $2,759,000 for the comparable period in 1999 as the effect
of higher oil prices more than offset production declines. Colombian
oil volumes were 130,000 barrels in the first half of 2000 down 68,000
barrels from the first half of 1999 due to an 18,000 barrel decrease
from the transfer of partnership interests and a 50,000 barrel
decrease from production declines. The average price received for
Colombian oil was $27.00 per barrel in the first half of 2000 compared
to $11.76 for the comparable period of 1999.

Aviva Petroleum is engaged in the exploration for and the development
and production of oil and gas in Colombia, offshore in the United
States, and in Papua New Guinea.


BIG SMITH: 2nd Amended Plan Projects 35-50% Recovery for Unsecureds
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Big Smith Brands, Inc., submits its Second Amended Plan of
Reorganization consistent with the agreements made and rulings
delivered in connection with the approval of the Company's Disclosure
Statement given by the U.S.
Bankruptcy Court for the Southern District of Florida.  

Following the Petition Date, the Debtor received a proposal from Walls
Industries, Inc. to acquire the debtor's 60% interest in Big Smith
Holdings, Inc.  The Debtor accepted the proposal, convinced that it is
in the best interest of creditors because it assures creditors of
early payment without the need for additional litigation regarding the
enforcement of Walls' obligation to make payment under certain non-
compete agreements.

The Walls proposal will provide the funding for the debtor's plan of
reorganization without the risk of nonpayment. Walls offered a lump
sum payment to Big Smith Brands, Inc. in the amount of $2.5 million
for the 60% ownership in Big Smith Holdings; assignment of Big Smith
Brands, Inc. of its licensing agreement with Big Smith Holdings;
confirmation that assignments of trademarks have been completed; non-
compete payment considered paid in full; non-compete agreements
between Walls and both Big Smith Brands, Inc. and Peter Lebowitz
remain in force.

Classification and Treatment of Claims:

    Class 1
      Allowed Secured Claims of Jasper County Missouri, Bank of America
       Commercial Finance and Advance Financial Corporation. Each
       loan is secured by the debtor's factory/warehouse in Carthage,
       Missouri with an appraised value of $500,000.
      
      The debtor will auction the real and personal property in
       Carthage or surrender the real property securing this claim to
       these secured creditors by abandonment.

    Class 2
     Allowed secured Claim of United Capital Funding Corporation which
      arises from a loan in the original amount of $115,000. To be paid
      in full from the Walls settlement monies.

    Class 3
     Allowed Secured claim of New Court Leasing Corporation; Community
      Bank; Grabar Financial Services LLC; and Extrabit Industries Inc.

     The secured claim New Court arises from a lease purchase agreement
      of an As computer (alleged value of $5,000) and is secured by a
      lien on the As Computer System. The debtor surrendered Graybar's
      collateral to Grabar.  Extrabit's claim is secured by a lien on a
      computer system. The debtor will abandon the personal property
      secured by Class 3 creditor claims.

    Class 4
     Allowed Unsecured Claims. To be distributed on a pro rata basis -
      the debtor estimates the distribution to be approximately 35% to
      50% depending on the total claims allowed.

    Class 5 - Shareholders who will receive no distribution on account
     of their stock during the term of the plan. This class consists of
     over 600 stockholders with Peter Lebowitz owning 29.5% of the
     outstanding stock.

If the plan is confirmed, the Debtor's operations will continue to be
managed by Peter Lebowitz.  


BUSINESSMALL.COM: Rebukes Employee's Filing of Involuntary Petition
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BusinessMall.Com, Inc. (OTCBB:BMAL) announces that late Friday
afternoon an involuntary petition to place BusinessMall.com into
bankruptcy was filed on behalf of CCC Communications, Forcedmatrix.com
and ITS Billing Services. All three of these entities are managed and
beneficially owned by Damian Freeman, an employee of a subsidiary of
BusinessMall.Com. The Company is in the process of investigating the
conduct of Mr. Freeman.

BusinessMall.Com intends to move vigorously to dismiss the petition
which it believes is filed without merit and which management believes
was filed in bad faith.

"The Bankruptcy courts were not designed to be manipulated by people
like Mr. Freeman who are clearly trying to serve their personal
agendas," said Barry L. Shevlin, CEO of BusinessMall.com. "We believe
that the petition will be dismissed and the Company will take
appropriate action against Mr. Freeman and his related companies,"
said Shevlin.

About the Company and its subsidiaries: BusinessMall.com, a click and
mortar company, integrates powerful high tech applications with
unparalleled human-touch services to help business people successfully
conduct business both online and in their day-to-day real world
business. BusinessMall.com maintains a "satisfaction guaranteed"
universal shopping cart containing the products commonly used by
business professionals and the services generated by small business
and independent professionals. The Company also provides a
comprehensive array of Internet, business and communications services
through its 1,000 seat Call Center, TheYellowPageDirectory.com,
Opus(TM) telephone virtual assistant and vCorp Virtual Corporation.


CARMIKE: Moody's Lowers Ratings on 9-3/8% Senior Notes To C
-----------------------------------------------------------
Moody's Investors Service lowered the debt ratings of Carmike Cinemas,
Inc. (Carmike), taking the former Caa2 rating for $200 million of the
company's 9-3/8% senior subordinated notes to C, and the former B3
rating for $275 million of senior bank credit facilities to Caa2. The
company's senior implied and senior unsecured issuer ratings have also
been lowered, to Caa3 and Ca, respectively. The rating outlook remains
negative.

The downgrades follow the company's announced Chapter 11 bankruptcy
filing, and Moody's subsequently revised estimates of reduced recovery
prospects for its creditors as a direct result thereof. Specifically,
Moody's now believes that holders of the company's senior subordinated
notes are likely to experience material credit losses exceeding 85% of
the notional principal amount owed to this group of creditors.
Additionally, Moody's noted that the bank group may also realize
credit losses of up to 20% as the quicker-than-anticipated bankruptcy
filing effectively precludes their ability to perfect their expected
security interest in certain collateral that was originally promised
in connection with the March 2000 waiver and amendment to the credit
agreement, and facilitates the possibility of their being truly
subordinated to secured claims that may arise out of the bankruptcy
proceedings.

The ongoing negative outlook reflects the fact that the company's
operating performance continues to deteriorate and remains far below
original and even revised expectations, with the potential for further
difficulties over the ensuing periods remaining very high as
heightened competitive and box office risk stemming from its largely
older and lower-screened theater base adversely impact attendance
levels.

Moody's noted that the revised ratings and related credit loss
estimates stem from a number of assumptions with respect to the
ultimate restructuring of Carmike's balance sheet. Moody's suggests
that the bulk (if not all) of subordinated claims against the company
will now need to be converted into equity, a fact supported by the
company's decision to file Chapter 11 in order to comprehensively
address its over-leveraged balance sheet and ensure the survival of
the theater chain going forward. Although a fairly large number of
leases for underperforming theaters can be expected to be rejected
under the bankruptcy proceedings, and thereby stem the current cash
flow losses at the same, the company will probably require some form
of debtor-in-possession financing to bridge anticipated liquidity
shortfalls as such theaters are closed and studios presumably look to
tighten terms and/or demand upfront cash payments in exchange for film
product. The range of the expected credit loss for both classes of
debt reflects uncertainties with regard to the timing of the ultimate
restructuring, the liquidity needs of the company during the
restructuring and through the bankruptcy period, and the amount of
lease rejection claims for underperforming assets.

Carmike Cinemas is one of the country's largest motion picture
exhibitors. The company maintains its headquarters in Columbus,
Georgia.


CARMIKE CINEMAS: Organizational Meeting Scheduled for August 23
---------------------------------------------------------------
The United States Trustee for Region III will convene a meeting of a
largest creditors of Carmike Cinemas and other parties-in-interest in
Wilmington, Delaware, on Wednesday, August 23, 2000, for the purpose
of forming one or more official committees of unsecured creditors in
the Debtors' chapter 11 cases. As reported in the TCR last week,
Carmike filed for chapter 11 protection on August 8, listing $841
million in assets and total debts of $653. District Court Judge Sue L.
Robinson oversees the restructuring effort. For additional information
concerning the Organizational Meeting, contact Frank J. Perch, III,
Esq., an Attorney-Advisor for the Office of the United States Trustee,
at (215) 597-4411.


CODA ACQUISITION: NY Court Confirms Debtor's Amended Liquidating Plan
---------------------------------------------------------------------
By order entered July 25, 2000, Judge Burton R. Lifland, US Bankruptcy
Court for the Southern District of New York, entered an order
confirming the amended liquidating plan of reorganization of Coda
Acquisition Group, Ltd. More than 2/3 in dollar amount and more than
1/2 in number of the holders of Class 3 General Unsecured Claims that
voted on the plan voted to accept.  

Brigid Sternberg is appointed the Responsible Officer of the debtor,
with full power and authority to put into effect and carry out the
plan.  Counsel to the debtor is Kaye, Scholer, Fierman, Hays &
Handler, LLP.


COHO ENERGY: Texas-based Oil & Gas Producer Reports 2Q Results
--------------------------------------------------------------
Coho Energy, Inc. (OTCBB:CHOH) announced its financial and operating
results for the period ended June 30, 2000.

The Company emerged from bankruptcy on March 31, 2000 under the
direction of a new management team and a new board of directors. The
near term emphasis has been to increase production and cash flow to
provide a stable base of future working capital.  Daily barrel of oil
equivalent production ("BOEPD") has increased from a low of 9,581
BOEPD for the three months ended June 30, 1999 to 10,854 BOEPD for the
three months ended June 30, 2000.  Cash flow provided by operating
activities (before working capital adjustments) was $10.2 million for
the current three month period as compared to cash flow used in
operating activities of $6.7 million for the same three month period
in 1999.

For the three months ended June 30, 2000 the Company reported a loss
of $2.3 million, ($0.12 per share) as compared with a loss of $10.1
million ($0.40 per share) in the same period in 1999. For the six
month period ended June 30, 2000 the Company's loss was $16.9 million
($1.73 per share) as compared with a loss of $19.1 million ($0.75 per
share) for the same six month period in 1999. The 2000 losses include
reorganization costs of $682,000 for the three month period and $12.2
million for the six month period. The 2000 loss for the six month
period also includes an extraordinary loss of $4.4 million on the
extinguishment of debt. The 1999 losses include reorganization costs
of $1.5 million for the three month period and $1.8 million for the
six month period.

Operating revenues increased significantly during the six month period
of 2000 as compared to the same period in 1999 as a result of a 118%
increase in the price received for crude oil and a 59% increase in the
price received for natural gas in addition to an increase in
production between the comparable periods. Production expenses
increased during the first half of 2000 compared to the same period in
1999 due to an accelerated well repair program to increase production.
The well repair work represents an accumulation of projects because
the Company had ceased substantially all well repair work in December
1998 and during most of the first half of 1999 due to depressed oil
prices. Although the Company began to repair wells during the last
half of 1999 due to price improvements, spending levels for such
repairs were limited by court order during the pendency of the
bankruptcy. Cost reductions implemented in connection with the
bankruptcy reorganization resulted in lower general and administrative
costs during the six months ended June 30, 2000 as compared to the
same period in 1999. Interest expense for the three and six month
periods in 2000 also includes a noncash charge of $4.0 million
associated with the additional interest feature of its new
subordinated debt which is based on the actual price received for the
Company's crude oil and natural gas production.

Coho Energy, Inc. is a Dallas-based oil and gas producer focusing on
exploitation of underdeveloped oil properties in Oklahoma and
Mississippi.



EIEIHOME.COM, INC.: Forbears on $718K Note from Ontario Purchasers
------------------------------------------------------------------
eieiHome.com Inc., announced that it agreed to forbear and accept
amended repayment terms for the promissory note in the principal
amount of $718,850 which was due from the group of investors (the
"Purchasers") who purchased the Canadian subsidiary, eieiHome.com Inc.
(Ontario) on July 10, 2000 thereby remedying the default. The Company
has agreed to extend the term of the promissory note to December 31,
2000 with interest paid monthly. In addition, the Company is entitled
to receive a forbearance fee in the amount of $11,500 for the month of
August and thereafter 1.5% of the outstanding indebtedness as of the
first day of each month. Accordingly, as long as the amended repayment
schedule is adhered to, the amended promissory note will be in good
standing. The promissory note may be repaid prior to the end of the
term without further penalty.

In accepting the terms of the forbearance agreement, the Company noted
that the Purchaser have been funding the day to day operations of
eieiHome.com (Ontario) since June 26, 2000, the effective date of the
transaction. A partial interest payment was received by the Company on
August 10, 2000.  To facilitate prompt repayment of the promissory
note, the purchasers have given the Company authority to sell, on
behalf of the Purchasers, certain non-operating assets which were
pledged as security. The proceeds from the sale of these assets will
be applied to repayment on the note, thereby reducing the amount of
interest payable monthly and the forbearance obligations. Both the
management of Company and the Purchasers are hopeful that the
promissory note will be repaid in full as soon as possible.

eieiHome.com (Ontario) operates an Internet service, information and
e-commerce web site, providing information and related products and
services for homeowners, home buyers, and home service providers.

eieiHome.com Inc. is a Delaware company whose shares are quoted on the
OTC Bulletin Board under the symbol "EIEI".


EINSTEIN/NOAH: Put Right Ruled an Equity Interest Rather than a Claim
---------------------------------------------------------------------
Einstein/Noah Bagel Corp. and Einstein/Noah Bagel Partners, L.P.,
filed a "Motion for Order Pursuant to Bankruptcy Rule 3013 Determining
Classification Contained in the Debtors' Joint Plan of Reorganization"
on May 10, 2000, with the United States Bankruptcy Court for the
District of Arizona. The Rule 3013 Motion asked for an order finding
that the Debtors properly classified Bagel Store Development Funding's
Unit Rights, which includes Bagel Funding's Put Right, in Class 6a (an
equity class) under the Joint Plan. Simultaneously, the Einstein
Debtors and their Official Committee of Unsecured Creditors objected
to a "Proof of Interest and/or Claim" against both Debtors by Bagel
Funding.

At bottom, the parties put the question before Judge Case as to
whether the "Put Right" granted to Bagel Funding under a Limited
Partnership Agreement gave rise to a claim against, as opposed to an
equity security interest in, either or both Debtors. Bagel Funding,
represented by Richard F. Levy, Esq., Theodore J. Low, Esq., Benjamin
D. Schwartz, Esq., and Brandy A. Sargent, Esq., of Altheimer & Gray,
valiantly argued that the Put Right translated into a $54.4 million
claim against Bagel Partners.  J. Eric Ivester, Esq., John K. Lyons,
Esq., and Alesia Ranney-Marinelli, Esq., at Skadden, Arps, Slate,
Meagher & Flom, representing Einstein/Noah, urged Judge Case to find
that the Put Right is nothing more than an equity interest.

Entertaining the legal and factual arguments, and reducing his
decision to a soon-to-be-published opinion, Judge Case ruled that the
Put Right is a claim, but a claim that is subordinated to the rights
of unsecured creditors pursuant to 11 U.S.C. section 510(b) of the
Bankruptcy Code.

Therefore, the Court granted the Debtors' Rule 3013 Motion and
sustained the Debtors' and Committee's objections to the Proof of
Interest and/or Claim filed by Bagel Funding.


EL PASO: Fitch Rates Utility's Unsecured Pollution Control Bonds BB+
--------------------------------------------------------------------
Fitch rates the $193 million of El Paso Electric Company (EPE)
unsecured pollution control bonds `BB+`. The bonds are being
remarketed with a fixed term of 2 years without the letter of credit
secured by first mortgage bonds, which had previously provided credit
support to the bonds. The remarketing agent is Salomon Smith Barney.
EPE`s first mortgage bonds are affirmed at `BBB-`.

The ratings reflect EPE`s relatively predictable and healthy cashflow
through 2005 resulting from the approval of a rate settlement
agreement and passage of constructive electric restructuring
legislation in 1999, an ongoing debt reduction program that continues
to reduce leverage and interest expense, ongoing cost containment, and
the resolution of litigation of the attempted municipalization by the
city of Las Cruces. The ratings also consider EPE`s high debt level
and the company`s significant concentration of nuclear generating
assets.

The June 1999 rate settlement with the Public Utility Commission of
Texas allowed for continuation of a rate freeze through 2005 and a
modest 5% rate reduction that should provide a predictable revenue
stream from Texas jurisdictional customers, who account for
approximately 80% of retail revenue and 67% of total revenue, and the
continuation of EPE`s aggressive debt reduction program. In addition,
electric industry restructuring legislation specifically excludes the
company from competition in Texas until Aug. 2005 which should permit
EPE to amortize its stranded costs to projected market levels by the
time competition is allowed in 2005.

Because of low capital requirements and the absence of common stock
dividend payments, the company`s internal cash generation has been
sufficient to reduce debt in excess of projections. The debt ratio
declined to under 67% at Dec. 31, 1999 from 71% at year-end 1996 while
the equity ratio increased to 33% from 22% over the same period. The
debt ratio had been as low as 63% at year-end 1998, but increased
following the 1999 repurchase of $136 million of preferred stock with
cash reserves. Importantly, the preferred stock repurchase eliminated
the cash dividend of nearly $15 million per annum, which will be
available, for future debt repurchases.

Fitch expects EPE will continue to have sufficient free cash flow to
reduce debt in an accelerated manner and that projected growth in the
company`s service territory, the resolution of the city of Las Cruces
franchise issues, new wholesale sales and lower interest costs will
improve credit protection measures going forward. While New Mexico
Public Regulation Commission`s decision to review the stranded cost
provisions of EPE`s 1998 rate stipulation, which lowered rates and
provided for stranded cost recovery, causes some uncertainty, there
appears to be little downside credit risk for EPE. EPE`s filing under
The New Mexico Utility Industry Restructuring Act of 1999 provides for
no less stranded cost recovery and potentially greater recovery than
EPE was permitted under the 1998 rate stipulation. Moreover, EPE`s
stranded cost exposure in New Mexico is low due to the small
percentage of operations in New Mexico (20% of retail revenue) and the
revaluation of EPE`s assets to market value upon emergence from
bankruptcy in 1996.

EPE filed, on March 1, and June 1, 2000, its New Mexico transition
plan detailing how the company will offer customer choice in New
Mexico. The New Mexico Commission is expected to act on the filing by
Oct. 2000 and customer choice will be phased in beginning Jan. 1,
2002. EPE plans to separate its operations into four subsidiaries
under a holding company to be formed. The subsidiaries would include a
generation company, a regulated transmission and distribution utility
company, a retail supply company and a service company providing
corporate services to the holding company and its subsidiaries.

Existing debt would be split between the generation company and the
transmission/distribution company. Fitch has viewed this structure as
likely neutral to the credit quality of EPE given the expected
unconditional cross-guaranty and cross-collateralization of the
obligations of the subsidiaries.
EPE is a public utility engaged in the generation, transmission and
distribution of electricity to approximately 301,000 retail customers
in far western Texas and southern New Mexico, including the cities of
El Paso, Texas and Las Cruces, New Mexico. The company also sells
wholesale power to customers in Texas, New Mexico, California and
Mexico.



FIRSTCITY FINANCIAL: Debt Defaults and Restructuring Efforts Continue
---------------------------------------------------------------------
FirstCity Financial Corporation (Nasdaq:FCFC)(Nasdaq:FCFCO) announced
it is in the final stages of closing a major transaction that will
generate significant cash to allow the Company to return to its
emphasis in the Portfolio Asset Acquisition and Resolution business.
FirstCity will sell 49% of its Auto Finance operation to IFA
Incorporated (IFA), a wholly owned subsidiary of Bank of Scotland. The
transaction, anticipated to close this month, will generate $75
million in cash and result in a gain of approximately $10 million.
Simultaneously, Bank of Scotland and the Company will complete a debt
restructure which will result in reduced interest rates and fees,
increased liquidity, and an extended maturity.

                Sale of Interest in Auto Finance Operation

The new entity formed to facilitate the transaction will be called
Drive Financial Services LP ("Drive"). The entity will assume the
entire operations of the former FirstCity Funding platform created and
developed by FirstCity and the Auto Finance management group in
September of 1997. The platform will continue to be headquartered in
Dallas, Texas. Bank of Scotland, through its wholly owned subsidiary
IFA, will purchase 49% of this newly formed entity for $15 million and
provide $60 million in term financing which will be used to repay
indebtedness owed to FirstCity by its Auto Finance unit. Drive will be
owned 49% by IFA, 31% by FirstCity, and the Auto Finance management
group will retain its 20% interest in the platform. Bank of Scotland
will provide a new $100 million warehouse line of credit to Drive.
This new warehouse line is in addition to the current $100 million
warehouse line with an affiliate of the Bank of America. The
additional funding along with improved capital markets execution will
provide the needed liquidity to allow this proven business model to
mature with planned, controlled growth. FirstCity will provide a $4
million guaranty related to the residual assets acquired by Drive,
resulting in a $4 million deferral of the $10 million gain.

James T. Sartain, president and chief operating officer of FirstCity
Financial said, "We are extremely excited about the opportunities that
are presented in this venture with Bank of Scotland. This gives the
Company, Bank of Scotland and the Auto Finance management group the
opportunity to build upon the proven business model established in
1997. As Drive continues to grow and prosper, FirstCity, can again
focus on its established core expertise -- the Portfolio Asset
Acquisition and Resolution business".

                           Restructure of Debt

The indebtedness of FirstCity owed to its senior lenders under its
Senior Revolving Line of Credit, to IFA under its Subordinated Debt
facility and certain other creditors will be reduced from $121 million
to $46 million as a result of the Drive transaction. The remaining
debt will be restructured into a new facility provided solely by Bank
of Scotland and IFA which will provide for a maximum loan amount of
$53 million comprised of a $10 million revolving Line of Credit, a $31
million Term Loan A and a $12 million Term Loan B, with reduced
interest rates and fees and a maturity date of December 31, 2003. IFA
will retain its option to acquire warrants for 1,975,000 shares of the
Company's common stock obtained in the $25 million subordinated debt
transaction reported at year end 1999. The strike price of $2.31 will
remain the same, but the exercise date under the option will be
extended to August 31, 2001.

Dividends on outstanding Preferred Stock of FirstCity will be
restricted until Term Loan B is paid in full. Management of FirstCity
intends to seek shareholder approval prior to year-end 2000 for the
replacement of Term Loan B with a private placement of subordinated
debt provided by certain insiders and other interested investors. If
completed, the elimination of Term Loan B would clear the way for the
Company to begin paying preferred dividends.

During the second quarter, the Portfolio Asset Acquisition and
Resolution group of FirstCity entered into a $17 million loan facility
with a Cargill affiliate. This facility is being used exclusively to
provide equity in new portfolio acquisitions in partnerships with
Cargill related entities. The new liquidity provided by the Cargill
line together with the corporate debt restructure enables the Company
to more aggressively pursue equity investments in portfolios, along
with related fees generated from the servicing of the assets. The
Company continues to see vast opportunities for investment and
servicing in its domestic and international venues.

                  Second quarter 2000 operating results

In the second quarter and in anticipation of the Drive transaction,
the Company reflected a $7 million increase in the valuation allowance
related to the deferred tax asset. Such increase was based on revised
financial projections which took into consideration, among other
things, the impact on future earnings due to the anticipated reduced
ownership interest and less reliance on "gain on sale" accounting for
securitization transactions in the business plan of Drive. In
addition, FirstCity postponed the securitization of its auto finance
receivables, resulting in a marginal operating contribution from the
Auto Finance unit, not taking into account loss provisions. A $5
million provision for loss from discontinued operations was recorded
to reflect accruals necessary to complete the plan of discontinuation
of the home equity segment. The Portfolio Asset Acquisition and
Resolution business reflected a nominal operating contribution before
a provision for impairment on owned real estate. Corporate interest
reflects the cost of higher debt levels, which will be significantly
reduced after the Drive transaction is closed.

FirstCity incurred a loss of $14.0 million from continuing operations
for the quarter ended June 30, 2000. After accruals for losses from
discontinued operations of $5 million and accrued dividends on the
Company's preferred stock, the loss to common shareholders was $19.6
million, or $2.35 per share on a diluted basis.

                             Debt Defaults

As of June 30, 2000 the Company was not in compliance with certain
financial and other covenants in its Senior Revolving Line of Credit
and Subordinated Debt facility.  The Company will obtain formal
approval or waivers from the lenders as a part of the contemplated
debt restructure.

The sale of the Auto Finance operation and restructure of debt are not
final as of the date of this press release. While the Company believes
that the sale of the interest in the Auto Finance operation and the
debt restructure will close, there can be no assurances that the
transaction will close in the event that unforeseen circumstances
arise. In the event the transactions are not closed, the Company will
continue to evaluate its liquidity position giving priority to
assuring adequate funding levels for its two operating entities, but
no assurances can be given that the Company will be able to secure
additional liquidity.


FOAMEX INTERNATIONAL: Settlement Agreement Resolves Lawsuits
------------------------------------------------------------
Foamex International Inc. announces it reached agreements in principle
to settle all lawsuits brought by stockholders of the company during
the past two years in Delaware state court and federal court in New
York City.

The Delaware litigation relates to the unsuccessful attempts by Trace
International Holdings, Inc. to acquire Foamex in 1998 and 1999, as
well as to certain transactions entered into between Trace or Trace's
affiliates and the company. The federal lawsuit alleges that Foamex
and certain of its directors and officers misrepresented and/or
omitted material information about the company's financial condition
between May 1998 and April 1999.

Under the terms of the settlement of the federal court litigation,
members of the class of shareholders who purchased Foamex shares
between May 7, 1998 and April 16, 1999 will receive payments as
defined in the agreement. Payment to class members in the federal
action, along with plaintiffs' lawyers' fees in the federal and
Delaware actions, will be paid by Foamex's insurance carrier on behalf
of the company.

Under the terms of the settlement of the Delaware litigation, Foamex
agreed that a special nominating committee of the Foamex Board of
Directors, consisting of Robert J. Hay as chairman, Stuart J. Hershon,
John G. Johnson, Jr., and John V. Tunney, will nominate two
independent directors to serve on the Foamex Board. The terms of the
settlement also establish the criteria for the independence of the new
directors and require that certain transactions with affiliates be
approved by a majority of the disinterested members of the Foamex
Board.

Both settlements are subject to final documentation and court
approvals, which, if obtained, will resolve all outstanding
shareholder litigation against Foamex and its directors and officers.
The settlements involve no admissions or findings of liability or
wrongdoing by Foamex or any individual. Details about the terms of the
settlements, including estimates of the amounts payable to members of
the class in the federal action, will be mailed to affected
stockholders by this Fall.

Foamex, headquartered in Linwood, Pennsylvania, is the world's leading
producer of comfort cushioning for bedding, furniture, carpet cushion
and automotive markets. The company also manufactures high-performance
polymers for diverse applications in the industrial, aerospace,
electronics and computer industries as well as filtration and
acoustical applications for the home.


FRUIT OF THE LOOM: Salem Sportswear Lease Nets $875,000 to Estate
-----------------------------------------------------------------
Salem Sportswear, a unit of Fruit of the Loom, Inc., previously
reached an agreement with Tymax Financial Resources for assumption and
assignment of the Hudson Lease, subject to higher and better offers.  
Century Park LLC stepped forward and topped Tymax' $650,000 bid.  An
auction followed and Century Park prevailed, agreeing to pay $875,000
to take an assignment of Salem's interest in the Hudson Lease.

Judge Walsh expressed his delight with the Auction process conducted
by the Debtors' attorneys and Granted the Debtors' Motion to Assume
and Assign in all respects.

Salem Sportswear will receive 10,000 square feet of sublease at no
charge.  The parties negotiated a cure amount of $160,000, to be paid
by Salem, to cure all prepetition defaults under the Lease. (Fruit of
the Loom Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


GENESIS/MULTICARE: Stipulation With Cardinal Distribution Approved
------------------------------------------------------------------
Genesis Health Ventures, Inc., and its debtor-affiliates tell the
Bankruptcy Court in Wilmington that Cardinal is their single most
critical vendor. Their essential business entity NeighborCare is
totally dependent on Cardinal for pharmaceutical products. Cardinal is
also the primary wholesaler of pharmaceuticals to pharmacies owned by
GHV. The Debtors also get medical supplies from Cardinal subsidiary
Allegience, pharmacey dispensing machines from Pyxis, and data
processing services from Scriptline. 95% of all of the Debtors'
pharmaceutical supplies come from Cardinal, with value at $9 million
to $12 million each week.

For the Debtors, continued supplies from Cardinal are crucial for the
operations of their business under chapter 11. Considering business
and Cardinal's security interest and legal rights, any discontinuance
in the vendor relationship will mean much greater loss for the Debtors
than for Cardinal.  Accordingly, the Debtors ask Judge Walsh to
approve their stipulation with Cardinal, authorizing them to use cash
collateral and obtain postpetition credit, grant adequate protection
to Cardinal and schedule a final hearing. The Stipulation is well
justified, the Debtors say, considering the severe impact that an
interruption in the pharmaceutical supply relationship would have on
the Debtors' business and the residents in the Debtors' ElderCare
centers, and the rights that Cardinal could assert against
NeighborCare as a vendor with significant reclamation rights and as a
secured creditor.

                            I. NeighborCare

NeighborCare represents the second largest business segment for the
Debtors and provides approximately 50% of their cash flows.
NeighborCare provides critical drugs and supplies for approximately
240,000 elderly patients throughout the United States, roughly 10% of
the total number of patients in nursing centers and assisted living
facilities. The Debtors believe that the strength and size of the
NeighborCare business is the most important distinguishing factor
between GHV and all the other nursing home companies that have
commenced chapter 11 cases.

Under a supply agreement with NeighborCare, Cardinal has provided the
Debtors with significant trade terms. The Debtors owe Cardinal
approximately $46 million.

All the money that NeighborCare owes Cardinal is fully secured by
Pharmaceuticals in the possession of NeighhorCare. Cardinal also has a
security interest in the cash proceeds from the sale of such
Pharmaceuticals.  If NeighborCare fails to make a payment, Cardinal
has the unilateral right to stop shipments. It would be impossible to
replace Cardinal with another supplier of Pharmaceuticals before
irreparable harm occurs to NeighborCare's business, the Debtors tell
the Court. Moreover, any such attempt would threaten the Debtors'
ability to maintain their licenses and comply with regulatory
requirements, GHV adds.

At NeighborCare's request, Cardinal has agreed, subject to terms of
the Stipulation, to:

    (i)   continue to provide Pharmaceuticals to the Debtors during the
          course of their chapter 11 cases;

    (ii)  consent to the use of cash collateral;

    (iii) not enforce its reclamation rights; and

    (iv)  provide the Debtors with up to $39 million of postpetition
          credit.

Such terms provide that, to give Cardinal adequate protection pursuant
to sections 361, 363 and 364 of the Bankruptcy Code, the Debtors will:

    (i)   grant a lien on Pharmaceuticals shipped to them by Cardinal
          after the Commencement Date and

    (ii)  repay the outstanding amounts owed to Cardinal during the
          first several weeks of the case, including a $20 million
          payment ten days after the approval of the Stipulation by the
          Court.

                         II. The Pharmacy Debtors

Pursuant to a Supply Agreement, Cardinal, as the primary wholesaler,
provides pharmaceuticals to the retail and institutional pharmacies
owned, managed, or operated by the Debtors.

In connection with execution of the Supply Agreement, the Debtors
entered into a Security Agreement which provides that the Cardinal
Inventory in the possession of the Debtors and all proceeds from it
secure the obligations of the Pharmacy Debtors to Cardinal. Prior to
the Commencement Date, Cardinal's liens in the Cardinal inventory have
been perfected and are valid and fully enforceable. As of the
Commencement Date, the Cardinal Prepetition Claim on Pharmacy was
$44,857,590. The Debtors estimate that the value of the Cardinal
Inventory exceeds $50,000,000. Therefore, Cardinal is oversecured.

Under the Supply Agreement, Cardinal has the right to "refuse orders"
or "cease its supply relationship," if the Debtors are in default of
payment. In addition, Cardinal may reclaim the goods pursuant to
section 546 of the Bankruptcy Code.

                    III. Allegience, Pyxis and Scriptline

Allegience provides medical supplies to the Debtors. Pyxis leases the
Debtors their pharmacy dispensing machines. Scriptline provides data
processing services to the Debtors. Allegience, Pyxis and Scriptline
are all subsidiaries of Cardinal.

As of the Commencement Date, the aggregate principal amounts
outstanding from the Debtors to each of Allegiance, Pyxis, and
Scriptline was $302,727.74, $301,083, and $22,198, respectively.

                               The Stipulation

Accordingly, the Debtors and Cardinal enter into a Stipulation which
provides for:

    (1) Payments

        The Debtors will pay Cardinal $20 million within 10 days of the
Commencement Date. On each of June 30 and July 7, 2000, the Debtors
will pay Cardinal not less than $12 million, to reduce the Cardinal
Prepetition Claim. On July 14, 2000, the Debtors will pay the
remaining balance of the Cardinal Prepetition Claim, plus any amount
due under the Postpetition Terms. All payments by the Debtors will he
first applied to reduce the Cardinal Prepetition Claim and then to
pay for postpetition product.

    (2) Trade Credit Extension

        Pending the $20 Million Payment, the aggregate amount
outstanding to Cardinal for pre- and post-petition shipments will not
exceed $59 million and following the $20 Million Payment will not
exceed the lesser of:

         (i)   $39 million, or

         (ii)  85% of the Cardinal Inventory. Cardinal will be required
               to extend between 17.5 and 24.5 days credit at all times
               (to be determined at Cardinal's discretion).

    (3) Use of Cash Collateral and Adequate Protection

        The Debtors may use cash collateral of Cardinal and Cardinal
will receive a replacement lien on all Cardinal Inventory to secure
the Cardinal Prepetition Claim.

    (4) Administrative Claim

        Cardinal will receive an administrative expense claim for all
amounts owed by the Debtors for postpetition shipments with priority
over any other administrative expenses of the kind specified in
section 503(b) or 507(b) of the Bankruptcy Code, other than claims of
the post-petition senior secured lenders.

    (5) Termination

        This will occur in a continued Event of Default as defined in
the Debtors' post-petition loan agreement and lenders have refused to
provide funds or declared all amounts due.

    (6) Prepetition Cardinal Claim and Liens

        The Prepetition Cardinal Claim is allowed in the amount of
$44,857,590. The Debtors acknowledge that Cardinal has a valid,
perfected, non-avoidable lien on the Cardinal Inventory.

    (7) Allegiance, Pyxis and Scriptline Claims

        The prepetition claims of Allegiance, Pyxis and Scriptline will
be allowed in the amounts of $302,728, $101,083, and $22,198,
respectively. The Debtors will pay Allegiance in the ordinary course
and such payment will be applied first to reduce Allegiance's
prepetition claim. The Debtors will assume or reject their equipment
lease with Pyxis and their license agreement with Scriptline within
90 days following the Commencement Date.
    
    (8) Reporting

        The Debtors will provide Cardinal with inventory reports
satisfactory to Cardinal.

    (9) Disposition of Pharmacy Location

        In the event the Debtors dispose of a pharmacy, the Debtors
will move any Cardinal Inventory at such pharmacy to another location
operated by the Debtors or pay Cardinal the current cost of such
Cardinal Inventory.

(Genesis/Multicare Bankruptcy News, Issue No. 3; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


GENEVA STEEL: Reports $500K Net Income in Second Quarter; $600,000 YTD
----------------------------------------------------------------------
Geneva Steel reported net income of $0.5 million for the fiscal
quarter ended June 30, 2000.  This compares with a net loss of $29.5
million for the same period last year. The operating income for the
third fiscal quarter was $2.6 million, compared with an operating loss
of $25.3 million during the same period last year.  Sales and tons
shipped during the quarter were $153.9 million and 513,000 tons,
respectively, compared with sales and tons shipped of $87.0 million
and 317,200 tons, respectively, for the same period last year.

For the nine months ended June 30, 2000, the Company reported net
income of $0.6 million.  This compares with a net loss of $121.6
million for the same period last year. The operating income for the
nine months ended June 30, 2000 was $0.3 million, compared with an
operating loss of $101.1 million during the same period last year.

Sales and tons shipped during the nine months were $429.8 million and
1,465,100 tons, respectively, compared with sales and tons shipped of
$225.0 million and 783,800 tons, respectively, for the same period
last year. As of February 1, 1999 (the date of the Company's Chapter
11 filing), the Company discontinued accruing interest on its senior
notes and dividends on its redeemable preferred stock. Contractual
interest on the senior notes for the third fiscal quarter of 2000 was
$8.3 million, which is not included in the Company's financial
statements. Contractual dividends on the redeemable preferred stock
for the third fiscal quarter of 2000 were $3.6 million, which are also
not included in the Company's financial statements. As of June 30,
2000, accrued dividends on the redeemable preferred stock were
approximately $47.2 million, which is $18.8 million in excess of
dividends accrued on the Company's balance sheet.

                          Recent Operating Results

As a result of various trade cases, as well as improved steel markets
in several foreign economies, market conditions for the Company's
products significantly improved in the three months ended June 30,
2000 as compared to the same period in the previous fiscal year,
although well below levels existing prior to the influx of imports.
Average price realization increased despite a product mix shift to
lower-priced sheet. Net sales increased approximately 76.9% primarily
due to increased shipments of approximately 195,800 tons and higher
average selling prices for the three months ended June 30, 2000 as
compared to the same quarter last year. The weighted average sales
price per ton of sheet, plate, pipe and slab products increased by
approximately 20.0%, 8.6%, 19.0% and 32.0%, respectively, during the
third fiscal quarter of 2000 as compared to the third fiscal quarter
last year.

Steel imports into the U.S. and inventory levels have recently
increased and are adversely affecting the Company's order entry and
pricing. Additionally, new plate production capacity is being added in
the domestic market. As a result of the increased supply of imports
and other market conditions, the Company expects that its overall
price realization and shipments will decrease significantly in the
fourth quarter of fiscal 2000 and negatively impact the financial
performance of the Company during the quarter and potentially beyond
that period. Although there can be no assurance, the Company, however
expects market conditions to improve in the first fiscal quarter of
2001.

The Company's operating costs per ton for the three months ended June
30, 2000 decreased as compared to the same quarter last year. The
overall average cost of sales per ton shipped decreased primarily as a
result of production efficiencies associated with returning to a two-
blast furnace operating level and a shift in product mix to lower-cost
coiled products, offset in part by higher natural gas costs. Operating
costs per ton decreased as production volume increased in part because
fixed costs were allocated over more tons.

                                 Liquidity

As of August 11, 2000, the Company's eligible inventories, accounts
receivable and equipment supported access to $10.9 million in
borrowings under the Company's credit facility. As of August 11, 2000,
the Company had $59.3 million available under the credit facility,
with $44.7 million in borrowings and $3.7 million in letters of credit
outstanding. The Company's operations generated positive cash flow
during the first three quarters of fiscal year 2000. The recent
deterioration in market conditions could, however, cause the Company
to experience negative cash flow during the fourth fiscal quarter.
In March 2000, the Company entered into an agreement with Mannesmann
Pipe and Steel to terminate its existing sales representation
agreement. Prior to termination, Mannesmann sold the Company's
products to end customers at the same sales price Mannesmann paid the
Company plus a variable commission. Mannesmann paid the Company in
approximately three days. In addition, the Mannesmann agreement
required Mannesmann to purchase and pay for the Company's finished
goods inventory as soon as it was assigned to or was otherwise
identified with a particular order. As of June 30, 2000, the Company
had received $13.4 million from Mannesmann for the purchase of
finished goods inventory assigned to discrete orders. The arrangement
with Mannesmann was terminated beginning July 1, 2000, with a ninety
day phase out of its liquidity arrangement with Mannesmann. The
Company estimates that termination of the liquidity arrangement will
reduce the liquidity otherwise available to the Company by
approximately $15 million. With the cooperation of Mannesmann, the
Company has employed certain Mannesmann employees currently involved
in marketing the Company's products. While the Company believes that
the Mannesmann arrangement can be terminated without material
disruption to its marketing efforts, there can be no assurance that
the termination will not have a material adverse effect on the
Company's marketing efforts, liquidity position or financial
condition.

                              Capital Expenditures

Capital expenditures were $8.5 million and $7.7 million for the nine
months ended June 30, 2000 and 1999, respectively. Capital
expenditures for fiscal year 2000 are estimated at approximately $15
million, which includes spending on a walking beam furnace, a blast
furnace reline, maintenance items and various projects designed to
reduce costs and increase product quality and throughput. The Company
is continuing to closely monitor its capital spending levels.
Depending on market, operational, liquidity and other factors,
including access to additional financing for the walking beam furnace,
the Company may elect to adjust the design, timing and budgeted
expenditures of its capital plan.



GENEVA STEEL: Court to Convene Disclosure Statement Hearing on Aug. 24
----------------------------------------------------------------------
On July 20, 2000, Geneva Steel filed a proposed plan of reorganization
and Disclosure Statement with the United States Bankruptcy Court for
the District of Utah. The Plan is proposed jointly by the Company and
the Official Committee of Bondholders in the Company's Chapter 11
Case. If approved as currently proposed, the Plan will significantly
reduce the Company's debt burden and provide additional liquidity in
the form of

   (i)   a $25 million capital infusion through the issuance of
         preferred stock convertible into common stock,

   (ii)  a $110 million term loan that will be eighty-five-percent
         guaranteed by the United States government, and

   (iii) a $125 million revolving line of credit.

The Company's prebankruptcy unsecured creditors will receive, in lieu
of cash payments, substantially all of the common stock of the Company
and the right to purchase the preferred stock.  The holders of the
Company's prebankruptcy common and redeemable preferred stock will not
receive a distribution under the Plan and all interests represented by
prebankruptcy common and redeemable preferred stock will be
extinguished. In the event that creditors do not purchase all of the
preferred stock, the Company has entered into a standby purchase
agreement that ensures the full $25 million in new capital will be
raised. The objective of the Plan is to restructure the Company's
balance sheet to

   (i)   significantly strengthen the Company's financial flexibility
         throughout the business cycle;

   (ii)  fund required capital expenditures and working capital needs;
         and

   (iii) fulfill those obligations necessary to facilitate emergence
         from Chapter 11.

The Company, through Citicorp USA, filed an application on January 31,
2000, for a U.S. government loan guarantee under the Emergency Steel
Loan Guarantee Program. The application sought an eighty-five-percent
guarantee for the $110 million term loan incorporated into the Plan.
The Emergency Steel Loan Guarantee Board extended an offer of
guarantee to Citicorp, USA for the Company's term loan on June 30,
2000.

The Bankruptcy Court will conduct a hearing on the adequacy of the
Disclosure Statement on August 24, 2000. Should the Disclosure
Statement be approved, a hearing on confirmation of the Plan has been
scheduled for October 13, 2000.

There can be no assurance at this time that the Plan proposed by the
Company and the Bondholders' Committee will be confirmed by the
Bankruptcy Court either on the schedule set forth above or at all, or
that, if confirmed and consummated, the Plan will achieve the
objectives described above. Similarly, there can be no assurance that
the financings contemplated by the Plan actually can be obtained on
terms favorable to the Company, or at all.

The Plan will materially change certain amounts currently disclosed in
the financial statements. At this time, because of material
uncertainties, pre-petition claims are generally carried at face value
in the Company's financial statements. The statements do not present
the amount that will ultimately be paid to settle liabilities and
contingencies which may be allowed in the Chapter 11 bankruptcy case.
Under the Plan, the rights of pre-petition creditors will be
substantially altered. This will result in such claims being paid in
the Chapter 11 bankruptcy proceedings at substantially less than 100
percent of face value.


GLOBAL FINANCIAL: Files Chapter 11 with Pact to Sell Assets To Burrups
----------------------------------------------------------------------
Global Financial Press Inc., Global Financial Press of South Florida
Inc. and Global Documental Imaging Group Inc., as well as Burrups
Ltd., announced that Global has entered into a letter of intent to
sell substantially of its assets and business to Burrups, according to
a newswire report. In order to implement the acquisition, Global filed
chapter 11 on Friday in the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania in Philadelphia. Burrups, a subsidiary of St.
Ives plc and located in London, recently acquired Packard Press Inc.
Burrups said the acquisition of Global would further develop its
presence in the U.S. financial printing market.  (ABI 14-Aug-2000)


GLOBAL TISSUE: Committee Objects To Use of Cash Collateral
----------------------------------------------------------
The Official Committee of Unsecured Creditors of Global Tissue, LLC
asks the U.S. Bankruptcy Court for the District of Delaware to deny
approval of the Cash Collateral Order. The Committee states that the
Bank Group's role in this case raises issues relating to its control
and domination of the debtor's business, as well as significant
possible equitable subordination claims which must be investigated by
the Committee. The Committee questions whether there is a fiduciary in
place who is accountable to the state to implement the chapter 11
process.

The Committee states that it is impermissible to grant replacement
liens or a superpriority administrative expense claim for cash
collateral expended prepetition, which the Committee argues the debtor
is attempting. The budget attached to the debtor's motion, according
to the committee covers a full week prior to the Petition Date.

The Committee also points out that the replacement lien must be
limited to diminution in cash collateral, not a blanket replacement
lien in all assets of the debtor. The Committee states that
replacement liens may not be used as a means to provide secured
creditors with a larger collateral pool than that which they had on
the Petition Date. And the Committee states that the Order would
improperly grant the Bank Group the right to recover proceeds of
avoidance actions by virtue of the superpriority administrative claim
granted to the Bank Group. The Bank Group claims a lien in all or
substantially all assets to secured its claim of approximately $70
million, while the purchase price in the Asset Purchase Agreement
(before adjustments ) is only $40.5 million.

The Committee claims that this is a situation in which all monies in
the estate or generated by the estate are claimed to be cash
collateral, or subject to the Bank Group's superpriority
administrative claim. And finally, the Committee claims that the
professional carveout for the Committee is insufficient and should be
increased from $25,000 to $75,000.


HARNISCHFEGER INDUSTRIES: Look for Plan of Reorganization by Sept. 15
---------------------------------------------------------------------
"During the past several months," Lindsee P. Granfeield, Esq., and
Kurt A. Mayr, Esq., of Cleary, Gottlieb, Steen & Hamilton,
representing the Official Committee of Unsecured Creditors appointed
in Harnischfeger Industries, Inc.'s chapter 11 cases, told Judge Walsh
Monday afternoon in a hearing convened in Wilmington, Delaware, "the
Committee and the Debtors have negotiated and substantially agreed
upon" the terms of a plan of reorganization under which the company
can emerge from chapter 11 protection. The Committee's lips are sealed
when it comes to talking about the economic aspects or structural
framework of the plan to which they've "substantially agreed." The
Committee also gives not hint about how similarly or differently HPH,
Beloit and Joy creditors may be treated under the draft plan.

Because the Committee and the Debtors are in substantial agreement on
the terms of a plan, the Debtors, at the Committee's behest, reduced
the length of time they requested for an extension of their exclusive
periods. Earlier this month, as reported in the TCR, the Debtors
thought they would need to extend their exclusive period into
December. With the prospect of a consensual plan now in hand,
Harnischfeger sought and obtained, with the support of the Creditors'
Committee, an extension of their exclusive period during which to file
a plan of reorganization through September 15, 2000. Provided that a
plan is filed by that date, Judge Walsh further ordered that the
Debtors will have the exclusive right to solicit acceptances of that
plan through November 14, 2000.

There are only a few remaining plan-related issues for the Committee
and the Debtors to hammer-out, James H.M. Sprayregen, Esq., and Anne
Marrs Huber, Esq., confirmed, and the parties are confident those few
issues can be resolved within the next 30 days.


HARNISCHFEGER INDUSTRIES: Moves to Reject Beloit Lease in Otsego, MI
--------------------------------------------------------------------
In accordance with the terms of the Asset Purchase Agreement under
which Beloit sold substantially all of its assets, Beloit Corporation
seeks the Court's authority in the Harnischfeger Industries, Inc., et
al., chapter 11 proceeding to reject the non-residential real estate
lease between Otsego Machine Shop, Inc. and Beloit Corporation for the
real property and building at 141 North Farmer Street, Otsego,
Michigan. Beloit no longer needs the Otsego Property. Beloit has sold
assets located at the Otsego Property and the Buyer has completed
removal of the assets.  (Harnischfeger Bankruptcy News, Issue No. 25;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


HARTZ FOODS: Liquidating Plan Proposes 67%+ Recovery from Future Rents
----------------------------------------------------------------------
Hartz Foods, Inc. proposes a liquidating plan of reorganization in its
chapter 11 cases pending before the U.S. Bankruptcy Court for the
District of Minnesota.  

The debtor has liquidated all of its inventory and begun the
liquidation of all properties located outside of Thief River Falls,
Minnesota. The debtor has sold its former supermarket properties in
Viking, Minnesota and Beulah, North Dakota. The debtor has obtained
court approval for a lease agreement of its supermarket in Fosston,
Minnesota. Its property in Warren, Minn. is listed for sale with the
proceeds pledged to Rural American Bank of Warren, Minn. The Norland
Plaza Shopping Center produces annual gross rental of $145,000. The
debtor's office building is for sale. The debtor anticipates receipt
of $250,000 from accounts receivable. The debtor has also commenced a
class lawsuit against cigarette manufacturers to recover sums as a
result of alleged price-fixing.

The debtor will pay administrative expenses in cash upon confirmation
of the plan. The debtor will pay priority wage claims in cash upon
confirmation of the plan.  The debtor will pay priority tax claims
over a period of six years.  The debtor will cause payments to be made
to Northern State bank, Untied Hardware Distributing, Inc. and Harley
Kelly as described below. The debtor will continue to lease its
Fosston property, its warehouse facility, its office building and the
Northland Plaza Shopping Center. The debtor will continue its efforts
to sell all real estate. As the debtor is successful in selling
realty, the net proceeds will be paid to Northern State Bank to
reduce the debtor's obligation, with remaining proceeds to be
distributed pro rata to the holders of unsecured claims.

Treatment of Classified Claims and Interests:

    1. Class A Claims - Priority Wage Claims - Allowed claims of
debtor's former employees - approximately $31,500, to be paid in cash
on the Effective Date.

    2. Class B Claims - Secured Claim of Northern State Bank - Allowed
Secured Claim of Northern State Bank, secured by cash, cash
equivalents, inventory, equipment, accounts receivables, general
intangibles and certain mortgages on real estate owned by debtor.

       The debtor has paid certain payments to Northern. The debtor
conducted an auction of its remaining personal property. The net
proceed have further reduced Northern's claim. The debtor also intends
to convey to Northern amounts collected through the collection of
accounts receivable and notes receivable owed to the date or up to the
date of confirmation, less amounts to be paid pursuant to Article II
above and amounts to be paid to Class A creditors. At Confirmation,
the debtor will cause a new Promissory Note, to be issued to the
Northern State Bank for the balance due over a period of 20 years with
monthly payment by the debtor to Northern state Bank. The balance due
will be paid in full through rents received until paid in full.

    3. Class C Claim - Allowed Secured Claim of Rural American Bank
secured by a mortgage on the debtor's property in Warren, Minnesota.
To be paid by the conveyance, by the debtor of the property subject to
the Rural American Bank mortgage in full satisfaction of the Allowed

        Secured Claim of Rural American Bank.

    4. Class D Claim - Allowed Secured Claim of United Hardware
Distributing, Inc. which is secured by a lien on the debtor's accounts
receivable, inventory and equipment.

       The Allowed Secured Claim will be paid in full subsequent to
confirmation of the debtor's plan by paying over to United hardware
Distributing, inc. funds received by the debtor from the collection of
accounts receivable. The Debtor will issue a Note to United Hardware
Distributing, inc. with interest to accrue at the rate of 7% per
annum. The Note will be amortized over five years. The debtor will pay
amounts received from receivable collections to United Hardware until
its allowed secured claim is paid in full.

    5. Class E Claims - Secured Claim of Harley Kelly Allowed Secured
Claim in the amount of $5,000 - to be paid with proceeds from sale of
property securing the claim or the debtor will pay in full on the
Effective Date.

    6. Class F Claims - Unsecured Creditors. The debtors believe that
the approximate amount of such unsecured claims is between $750,000
and $1 million. The debtors will pay the allowed claims through rents
derived from the debtor on its real estate or from net proceeds of the
sale of the real estate. Recoveries will be in the range of $675,000
to $750,000.  Class F is impaired under the plan.

    7. Class G - Patron-Member Interests: Member Interests of patrons
of debtor as of the Effective Date. The Member Interests of the
patrons of the debtor will be retained and unaltered by this plan of
reorganization.

The debtor is represented by Steven B. Nosek, Esq., 701 Fourth Venue
South, Suite 700, Minneapolis, Minnesota.


HEDSTROM HOLDINGS: Committee Supports New Employee Retention Program
--------------------------------------------------------------------
Hedstrom Holdings, Inc., et al., sought approval of a key employee
retention program.  The statutory unsecured creditors committee
objected to the program, and the court declined to approve it at a
hearing on July 7, 2000.

The debtors and Committee have now agreed on a retention program for
approximately 38 management employees through cash payments at certain
time periods. They will receive up to four payments of 7.5% of such
employee's annual salary contingent upon such employee remaining
employed by the debtors on the applicable payment date.

The debtors are modifying their incentive compensation program so that
the 81 Key Employees covered thereunder will be eligible to receive
additional compensation, approximately 17% of aggregate salary,
assuming all financial and personal targets are achieved. The target
financial goals under the Incentive Program as modified are based upon
the debtors achieving $22 million of operating income in fiscal year
2000.

The debtors are also seeking approval of a modified employment
arrangement with their president and CEO.

The aggregate costs to the debtors' estates of the Retention Program,
the Incentive Program and the modified employment arrangement,
assuming full payment under each, is approximately $2.75 million.


HEDSTROM HOLDINGS: Unable to Cope, Needs Until Nov. 7 to Propose Plan
---------------------------------------------------------------------
Hedstrom Holdings, Inc., et al., asks the U.S. Bankruptcy Court for
the District of Delaware for an order extending their exclusive
periods during which to file a Chapter 11 plan and solicit acceptances
from creditors.  A hearing will be held on September 6, 2000 at the US
Bankruptcy Court for the District of Delaware, 824 Market Street,
Wilmington, DE 19801.

The debtors request entry of an order extending the periods to file
and solicit chapter 11 plans for an additional 90 days, to and
including November 7, 200 and January 8, 2001, respectively.

The debtors state that their initial efforts have been focused on the
stabilization of their operations, however, they are working with
their lenders and the statutory creditors' committee.

At this point in time, because of the sheer volume of matters that
have required the debtors' immediate attention, including the
development of a long-term business plan, the commencement of
negotiations with respect to a plan of reorganization has not yet
begun in earnest. The debtor claims that it is simply not possible to
propose a confirmable plan of reorganization before completing the
necessary preliminary steps, nor it is realistic to expect that there
would be meaningful plan negotiations undertaken at this stage of the
cases.


HERCULES, INC.: Moody's Places Senior Unsecured Debt Under Review
-----------------------------------------------------------------
Moody's Investors Service placed the ratings of Hercules Incorporated
(sr. unsecured at Baa3) under review for possible downgrade due to the
continuing short fall in earnings, as a result of a difficult
operating environment, and delays in completing planned asset sales.
Moody's review will focus on management's ability to reduce debt and
improve debt protection measurements over the near- to intermediate-
term. Also, Moody's will examine the impact and timing of assets
sales, as well as the potential for improvements in operating margins
and cash flows.

Ratings under review for possible downgrade:

    i)   Hercules Incorporated - senior unsecured notes, term loans and
                                 revolving credit facility at Baa3;
                               - junior subordinated debentures at Ba2;
                               - senior unsecured shelf at (P)Baa3.

    ii)  Hercules Trust I - preferred Stock at "ba2"

    iii) Hercules Trust II - preferred Stock at "ba2"

    iv)  Hercules Trust VI - preferred Stock at "ba2"

    v)   Hercules Trust III - preferred Stock at "(P)ba2"

    vi)  Hercules Trust IV - preferred Stock at "(P)ba2"

Hercules' balance sheet remains stressed due to debt incurred in the
acquisition of BetzDearborn in 1998 and operating performance that has
remained well below anticipated levels. Hercules has also stated that
planned divestitures have been delayed, and the divestiture of
FiberVisions may be postponed due to the difficult operating
environment. The combination of these events may make it difficult for
Hercules to substantially reduce debt and restore the financial
profile to levels supporting the Baa3 ratings within the near-term.

Moody's review will focus on the extent to which Hercules' management
can reduce debt in the next 12 - 18 months through assets sales and
utilizing excess cash flow from operations. The review will also
incorporate the potential positive impact of continuing cost
reductions, as well as other actions management may implement, which
may improve cash flows in 2001.

Hercules Inc., headquartered in Wilmington, Delaware, is a
manufacturer of specialty chemicals for a variety of markets
worldwide. The company reported sales of $3.2 billion in the year
ending December 31, 1999.


IMC GLOBAL: Moody's Places Long-Term Debt Under Review for Downgrade
--------------------------------------------------------------------
Moody's Investors Service has placed the long-term debt ratings of IMC
Global Inc. (sr. unsecured at Baa2) under review for possible
downgrade following comments by the company that proceeds from
divestitures will be less than previously anticipated, as well as a
difficult operating environment in phosphate fertilizers. Moody's also
placed IMC's Prime-2 rating for commercial paper under review for
possible downgrade. Moody's review will focus on management's ability
to reduce debt and improve debt protection measurements over the near-
to intermediate-term. Also, Moody's will examine the impact and timing
of assets sales, as well as the potential for improvements in
operating margins and cash flows, as a result of higher phosphate
fertilizer prices.

Ratings under review for possible downgrade:

    a) Senior unsecured notes and debentures at Baa2

    b) Senior unsecured credit facility at Baa2

    c) Subordinated convertible notes at Ba1

    d) Rating for commercial paper at Prime-2

IMC's balance sheet remains stressed due to debt incurred in the
acquisition of Harris Chemicals in 1998, delays in completing business
divestitures and the more recent downturn in phosphate fertilizer
profitability. IMC's comments also indicated that the divestiture of
the salt and chemicals businesses may be delayed, as negotiations to
achieve an acceptable offer have been hampered by rising interest
rates and continued poor performance of the chemicals business. The
combination of these events may make it difficult for IMC to
substantially reduce debt and restore the financial profile to levels
supporting the Baa2 and Prime-2 ratings within the near-term.

Moody's review will focus on the extent to which IMC's management can
reduce debt in the next 12 - 18 months through assets sales, and
utilizing excess cash flow from operations. The review will also
incorporate the potential positive impact of higher phosphate
fertilizer prices, and continuing cost reductions, on the company's
cash flow in 2001.

IMC Global Inc., headquartered in Northbrook, Illinois, is a leading
global producer of phosphate and potash fertilizers and animal feed
ingredients. IMC reported revenues $2.4 billion in 1999.


INTEGRATED HEALTH: Second Motion To Extend Rule 9027(a) Removal Period
----------------------------------------------------------------------
At the Debtors' behest, Judge Walrath granted Integrated Health
Services, Inc., and its debtor-affiliates a second extension of the
time within which, pursuant to Rule 9027(a) of the Federal Rules of
Bankruptcy Procedure, they may elect to remove pre-petition lawsuits
pending in courts outside the District of Delaware to the Delaware
Bankruptcy and District Courts for final resolution.   The extension,
Kaye, Scholer, Fierman, Hays & Handler, LLP, lawyers representing
Integrated told Judge Walrath, will enable the Company to make more
fully informed decisions concerning the removal of each pre-petition
action and will assure that the Debtors do not forfeit the valuable
rights under 28 U.S.C. section 1452. (Integrated Health Bankruptcy
News, Issue No. 7; Bankruptcy Creditors' Service, Inc., 609/392-0900)


KINETICS GROUP: Fitch Assigns BB- Ratings To Senior Credit Facilities
---------------------------------------------------------------------
Fitch assigned a 'BB-' rating to the proposed $260 million senior
secured credit facilities for The Kinetics Group, Inc.  The senior
secured credit facilities will be comprised of a $150 million 5.5-year
term loan and a $110 million 5.5-year revolving credit of which $3
million is expected to be drawn at closing. Proceeds from the bank
facilities will primarily be used to acquire Kinetics from US Filter
Corporation for a total consideration of $513.5 million, excluding
fees and expenses. The purchase price represents an 8.3 times (x)
multiple of adjusted EBITDA for the last twelve months ('LTM') ended
June 30, 2000.

In providing a rating for the bank facilities, Fitch considers the
company's leading position in:

    i)   high-purity process piping systems,

    ii)  process equipment and components manufacturing,

    iii) operating services for the electronics,

    iv)  biotechnology and pharmaceutical (biotechnology and
         pharmaceutical together 'biopharm') industries,

    v)   the depth and experience of Kinetics' management team, and
    
    vi)  junior capital support.

The rating is further supported by the Facilities' seniority within
the capital structure and the value of the collateral. Rating concerns
take into account the company's leveraged profile, the cyclical nature
of Kinetics' semiconductor-related business, customer concentration,
and impact of potential future debt-funded acquisitions.

Incorporated in 1973, Kinetics is the leading provider of high-purity
process critical infrastructure to the electronics, biopharm and other
regulated general industries. For the LTM ended June 30, 2000,
Kinetics generated revenue and adjusted EBITDA of $976.7 million and
$61.9 million, respectively.

Kinetics operates along two main business lines:

     1) process equipment and specialty component manufacturing and

         -- Process equipment and component manufacturing, representing
            47% of the company's business mix for the LTM ended June
            30, 2000, relates to contract and independent manufacturing
            of assemblies for capital equipment which govern the flow
            of high-purity water, gases, and chemicals through that
            equipment as part of the manufacturing process.

     2) design and installation ('D&I').

         -- D&I, representing 47% of the company's business mix for the
            LTM ended June 30, 2000, entails engineering and design
            services, the fabrication of process piping assemblies, and
            the installation of process piping systems in the
            manufacturing facility.

In Fitch's opinion, the significant amount of junior capital within
the capital structure is a positive rating factor for the senior
secured credit facilities. At closing, $266.5 million in new common
equity will be contributed of which $155 million will be provided by
DB Capital Partners, Inc. ('DBCP'), $90 million by Behrman Capital and
affiliates, and $21.5 million by CEO and President, David Shimmon and
other senior managers. The $266.5 million equity investment represents
49.4% of the company's total capitalization pro forma for the
acquisition at closing. Additional debt cushion is provided in the
form of $70 million in 6-year senior subordinated notes and a $50
million 6-year PIK seller note. Pro forma for the acquisition, senior
debt to estimated EBITDA for the LTM ended June 30, 2000 is
approximately 2.5x.

Fitch believes that, due to the factors highlighted above, the company
would be a likely candidate for reorganization rather than liquidation
should default occur. Based on Fitch's sensitivity analysis, the
company's enterprise value should provide significant coverage for the
secured facilities in a distressed environment.

Following the acquisition, the company will have a highly leveraged
profile with total debt to LTM ended June 30, 2000 EBITDA of
approximately 3.6x, not including the PIK seller note. Total EBITDA to
interest coverage, excluding the PIK seller debt and pro forma for the
acquisition, is estimated at 2.5x for the LTM ended June 30, 2000. Pro
forma EBITDA to maintenance capital expenditures and interest, for the
LTM ended June 30, 2000 is moderate at 1.9x. Fitch notes that the
revolving credit will be largely undrawn. A drawdown of the revolving
credit could potentially further leverage the company. However,
financial covenants will limit total leverage and senior leverage to
4.5x and 3.5x, respectively, thus initially limiting drawings under
the revolving credit.

A key rating concern is the company's dependence on semiconductor
capital spending which tends to be cyclical with downturns lasting two
to three years and upturns three to four years. For the LTM ended June
30, 2000, approximately 75% of the company's revenues were derived
from the electronics industry (mostly semiconductor manufacturers and
semiconductor original equipment manufacturers). In Fitch's opinion, a
decline in the PC market may negatively impact the company's cash flow
as computers currently represent the largest demand for
semiconductors. The impact of such a decline is decreasing as demand
for semiconductors within the communications market continues to grow
at a faster pace than PCs and represents approximately 22% of the end-
user market in 1999, compared to 25% for PCs. Diversification in the
end-user market should help to lessen the volatility in semiconductor
demand. Fitch also acknowledges the company's efforts to reduce the
impact of an economic downturn through increased sales to the biopharm
and other regulated industries such as aerospace, food/beverage and
cosmetics.  Representing nearly 14% of the company's revenues for the
LTM ended June 30, 2000, the biopharm industry has historically been
more resistant to economic changes.

Fitch views the concentration in the company's revenues as a
significant risk as loss of a single customer has the potential to
have a material adverse effect on operating performance. In addition,
a single customer may have excessive influence on the company's
operating margins. Kinetics expects its top two customers will
represent approximately 38% of estimated revenues for the fiscal year
ended Dec. 31, 2000 with the largest customer comprising 24%. Fitch
favorably views Kinetics' quality reputation with its largest
customer, Applied Materials, Inc. ('AMAT'), which has agreed to
outsource 75% of its gas panel assembly requirements to Kinetics for
two years. Kinetics is currently satisfying approximately 82% of
AMAT's gas panel assembly needs. The company's commitment to foster
strong customer relationships is further demonstrated by the high
percentage of revenues, approximately 75%, derived from recurring
customers. Fitch also understands that there exists a natural
concentration in the company's business, as there are only a limited
number of top tier semiconductor manufacturers.

A final concern is the potential impact of debt-funded acquisitions on
the company's financial profile. Over the past two years, Kinetics has
acquired over 13 companies with an aggregate transaction value of
about $346 million using the equity of US Filter. The company's
management believes that the current market coverage, technology, and
infrastructure, without the benefit of additional acquisitions, are
sufficient to achieve the revenue growth reflected in the company's
projections. Additional acquisitions have the potential of increasing
the company's leveraged profile and pose certain integration risks.
The company will likely continue to make strategic acquisitions;
however, it is constrained to a $35 million aggregate acquisition
limit and a $20 million single acquisition limit under the revolving
credit.


LAIDLAW: Bondholder-Plaintiff Lawyers Continue to Solicit for Clients
---------------------------------------------------------------------
Spector, Roseman & Kodroff, P.C. reminded the public this week that it
filed a class action lawsuit against Laidlaw Inc. (NYSE: LDW, TSE:LDM)
and some of its officers and directors in the United States District
Court of South Carolina. The suit is on behalf of bondholders who
purchased the bonds of Laidlaw, Inc. between October 15, 1997 and
March 13, 2000. The lawsuit alleges that the Company, and some of its
directors and executive officers, issued false and misleading
financial statements contained in filings with the Securities and
Exchange Commission and press releases that, among other things,
overstated the Company's assets, income and earnings per share during
the Class Period.

In a series of announcements beginning on March 6, 2000 and ending on
March 13, 2000, the Company announced that its affiliate, Safety-Kleen
Corp., had placed its top three executive officers on "administrative
leave," because of discovered "accounting irregularities."

These events prompted the Company's auditors, PricewaterhouseCoopers,
LLP, to withdraw their audit opinion on Safety-Kleen (formerly Laidlaw
Environmental Services, Inc.) for the past three fiscal years ending
August 31, 1999, 1998 and 1997. Between October 15, 1997 and March 13,
2000, Safety-Kleen accounted for a significant portion of Laidlaw's
assets, revenues and operating income, and there were overlapping
directors and officers between the companies.

Finally, it was announced that the SEC had begun an investigation of
Safety-Kleen. On this news, the Company's bond rating was cut, and the
value of the bonds plummeted. As of May 16, 2000, the price of Laidlaw
bonds, which had traded as high as $1230 during the class period, had
dropped to trading in the mid-to- low- $200's. On May 18, 2000, the
Company declared an interest payment moratorium on all outstanding
public debt of Laidlaw Inc.

The lawsuit alleges that Laidlaw and some of its directors and
executive officers violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The
lawsuit seeks to recover losses on behalf of all who purchased or
otherwise acquired Laidlaw bonds between October 15, 1997 and March
13, 2000. If you purchased or otherwise acquired Laidlaw bonds during
this period, you may wish to join the lawsuit. In order to do so, you
must meet certain legal requirements and file appropriate papers no
later than 60 days from August 14, 2000.

If you wish to discuss this lawsuit, or have any questions concerning
this notice or your rights or interests, please contact plaintiffs'
counsel Peter W. Baker, Esq., toll-free at 1-888-844-5862 or at
baker@spectorandroseman.com.



LOEHMANN'S: Plan Projecting 53% Recovery Set for Confirmation Sept. 6
---------------------------------------------------------------------
A hearing to consider confirmation of the second amended plan of
reorganization of Loehmann's Inc., as modified, has been set for
September 6, 2000 at 10:30 AM in the U.S. Bankruptcy Court District of
Delaware before the Honorable Mary F. Walrath.

The Creditors' Committee, represented by Kronish Lieb Weiner & Hellman
LLP and Morris, Nichols, Arsht & Tunnell as local counsel and as its
financial advisors, Mahoney Cohen & Company, CPA, PC supports the plan
as the best available means to maximize value for Loehmann's and the
unsecured creditors.

Overview of the Plan:

Administrative Claims in the sum of $4.8 mm are unimpaired and shall
be paid in full.

Priority tax claims in the sum of $1.2mm are unimpaired and shall be
paid in full.

    Class 1 & Class 2
     Other priority claims and other secured claims are unimpaired and
shall be paid in full, if any.

    Class 3
     DIP Financing Claims are unimpaired, in the total sum of $25.8mm
and shall be paid in full.

    Class 4
     Convenience Claims in the amount of $245,000 are impaired and the
estimated recovery is 50%.

    Class 5
     General Unsecured Claims are estimated in the amount of $140.9mm,
are impaired and the estimated recovery is 53%.

     Allowed Claimants will receive a pro rata share of 3,333,333 to
5,000,000 shares of New Common Stock and up to $25,000,000 of New
Senior Notes on the later of the Effective Date and 30 days after the
date on which such Claim becomes an Allowed Claim.

    Class 6
     Equity Interests are impaired - no distribution.

Following the Effective Date of the plan, the Reorganized Debtor's
working capital borrowings and letters of credit requirements are
anticipated to be funded by and New Credit facility, a portion of the
proceeds of which will be used to repay in full the DIP Credit
Facility. Substantially all of the assets of Loehmann's will be
pledged as security under the New Credit Facility. On the Effective
Date, pursuant to the plan, Loehmann's Holdings is authorized to issue
3,333,333 shares of New Common Stock. The New Senior Notes will be
issued in $100 denominations in the aggregate principal amount
of up to $25,000,000 and will be distributed to holders of allowed
general unsecured claims making the Stock/Notes Election or Additional
Notes Election. The debtor is represented by Paul, Weiss, Rifkind,
Wharton & Garrison and Young, Conaway, Stargatt & Taylor, LLP.


LOEWEN GROUP: Stay Modified to Allow $11MM Collection from Cornerstone
----------------------------------------------------------------------
On March 31, 1999, Loewen Group International, Inc., sold the capital
stock of approximately 99 of its direct and indirect subsidiaries to
Cornerstone Family Services, Inc.  This sale transferred to
Cornerstone approximately 124 cemeteries and three funeral homes, most
of which are located in the northeastern United States.  The gross
proceeds of the sale were approximately $193 million.  The Stock
Purchase agreement includes two significant post-closing purchase
price adjustments.  Loewen and Cornerstone disagree on post-closing
purchase price adjustments under the Stock Purchase Agreement.  

LGII -- looking to recover $11 million -- asked the Bankruptcy Court
in Wilmington to modify the automatic stay so as to resolve this issue
through litigation or whatever other process might be necessary.  
Cornerstone objects to that request and asks Judge Walsh for a
competing order compelling the Debtors to assume or reject the Stock
Purchase Agreement.  Loewen and Cornerstone then paid their attorneys
to argue about whether the Agreement is an executory contract.

Listening to protracted arguments on the issue, Judge Walsh concluded
that the Stock Purchase Agreement is not an executory contract, within
the meaning of 11 U.S.C. Sec. 365.  Accordingly the Agreement is not
subject to assumption or rejection.  However, a Transition Agreement,
which the parties entered into at the time of closing of the Stock
Purchase Agreement, and which provides for the mutual performance of
duties and obligations during the transition period post-closing, is a
separate and distinct contract form, and is not integrated with the
Stock Purchase Agreement.

The Court denied Cornerstone's Motion, declining to compel the Debtors
to assume or reject the Stock Purchase Agreement.

Judge Walsh found that cause exists under section 362 of the
Bankruptcy Code to modify the automatic stay and ruled that the
automatic stay under section 362 of the Bankruptcy Code be terminated
to permit Cornerstone and LGII to exercise their respective rights and
remedies under the terms of the Stock Purchase Agreement in any
appropriate forum having jurisdiction.

Judge Walsh took under advisement all matters concerning the
Transition Agreement.

The Court further authorized LGII to pay the costs that it incurs,
including the costs for the retention of accountants and arbitrators
that the Stock Purchase Agreement provides.

The Court's order also provides that until certain Accountant Review
Procedures, a Binding Arbitration and any other proceeding instituted
by either Cornerstone or LGII to enforce the terms of the Stock
Purchase Agreement are completed, neither party may attempt to collect
any monetary award under the procedure or proceeding.  (Loewen
Bankruptcy News, Issue No. 25; Bankruptcy Creditors' Service, Inc.,
609/392-0900)


MEDICAL RESOURCES: CEO Whynot Sees Improvement in Company's 2Q Results
----------------------------------------------------------------------
Medical Resources, Inc. (OTC Bulletin Board: MRIIQ) reported results
for its second quarter 2000.

The Company reported net service revenues of $36.7 million for the
quarter ended June 30, 2000, compared to $40.7 million for the quarter
ended June 30, 1999. The decline in net service revenues from the
second quarter of 1999 was caused by the impact of the sale or closure
of sixteen underperforming imaging centers during the second half of
1999 and the first half of 2000 and a decline in the reimbursement
rates of managed care payors. This decrease was partially offset by an
increase in same-store gross revenues (before contractual allowances)
of 1%.

For the quarter ended June 30, 2000, the Company had an operating loss
(prior to charges related to the sale and closure of centers and other
unusual items) of $0.6 million, compared to operating income (prior to
other unusual items) of $1.7 million for the quarter ended June 30,
1999. The decline in operating results was due to lower net service
revenues described above, offset in part by lower operating costs as a
result of the sale or closure of imaging centers. The Company had a
net loss applicable to common stockholders of $5.0 million, or $0.50
per common share (diluted) for the quarter ended June 30, 2000,
compared to a net loss applicable to common stockholders of $2.2
million, or $0.23 per common share (diluted), for the same period of
1999.

Commenting on the results for the second quarter of 2000, Geoffrey A.
Whynot, the Company's Co-Chief Executive Officer said "The Company
continues to make improvements in a number of areas, including an
aggressive program to replace or upgrade its medical imaging equipment
in a number of our centers, and continued improvement in the billing
and collections area. This improvement in billing and collections has
resulted in a $5 million reduction in the Company's accounts
receivable since the beginning of the year 2000. As of July 31, 2000,
the Company's available cash balance has increased to $7 million."

The Company's net loss applicable to common stockholders for the
second quarter of 2000 includes $0.5 million of charges related to the
sale and closure of centers and $0.8 million of costs associated with
the proceedings under Chapter 11 of the Federal Bankruptcy Code.
Unusual charges for the second quarter of 1999 consisted of $0.4
million associated with the Company's class action litigation that was
settled in August 1999.

As previously announced, during March 2000, the Company entered into
an agreement-in-principle with the holders of its Senior Notes
providing for conversion of the full amount of their $75,000,000 of
debt into approximately 84% of the common equity of the Company. Under
the March 2000 agreement-in-principle, an additional $5,121,000 of
unsecured notes would be converted into approximately 6% of the common
equity of the Company with the remaining equity to be distributed
among junior creditors (including plaintiffs in current lawsuits
pending against the Company) and other claim holders. On April 7,
2000, the Company commenced proceedings under Chapter 11 of the
Federal Bankruptcy Code and filed a Plan of Reorganization reflecting
the terms of the March 2000 agreement-in-principle.

The Plan of Reorganization only applies to the parent company and none
of its operating subsidiaries. Furthermore, physician relationships,
trade credit and employee obligations of the Company have not been
impaired by the proceedings and are being honored in the ordinary
course. The Company continues to proceed with the completion of its
Plan of Reorganization, and expects to emerge from Chapter 11 by the
end of September or early in the fourth quarter of 2000.

Medical Resources specializes in the ownership, operation and
management of fixed-site outpatient medical diagnostic imaging
centers. The Company operates 76 imaging centers in the U.S. and
provides network management services to managed care organizations in
regions where its centers are concentrated.


MICHAEL PETROLEUM: $107MM Recap Completed & Emerges from Bankruptcy
-------------------------------------------------------------------
Houston-based Michael Petroleum Corporation declared its Chapter 11
plan of reorganization effective and the company has emerged from
bankruptcy.  Michael Petroleum filed for protection under Chapter 11
of the United States Bankruptcy code on December 10, 1999, and
obtained confirmation of its plan on July 27, 2000. Under the plan,
Michael Petroleum has been recapitalized with a combination of bank
debt and private equity totaling $107,000,000.

As a result of the recapitalization, Michael Petroleum has a new
ownership group led by MPAC Energy LLC and the Wayland Investment
Fund. MPAC, an entity owned by affiliates of EnCap Investments LLC and
El Paso Energy, and Wayland, an affiliate of Cargill, will own in
excess of 95 percent of the reorganized company. Additionally, Michael
Petroleum has entered into a new $75,000,000 credit facility provided
by Bank One, Banque Paribas, Union Bank of California and Bank of
Scotland.

"I am pleased to announce, that as a result of the recapitalization,
Michael Petroleum Corporation is on the best financial footing in its
17-year history," said Glenn Hart, chief executive officer of Michael
Petroleum. "The company will now accelerate its drilling program and
actively pursue additional acquisition opportunities in the Lobo
Wilcox Trend in Webb and Zapata Counties."

F. Fox Benton, Jr., chairman of the Board of MPAC, will also serve as
chairman of the reorganized company. The remaining board will consist
of Gary R. Petersen and Robert L. Zorich of EnCap Investments, Blake
M. Carlson of Wayland, and Charles M. Strain, a Houston-based industry
consultant.

Michael Petroleum Corporation is a privately held natural gas
exploration and production company with offices in Houston and Laredo.
The company presently operates principally in the Lobo Wilcox Trend in
South Texas.  For more information about Michael Petroleum, visit
http://www.michaelpetroleum.com.


MOSSIMO INC: Announces Financial Results For 2Q Ended June 30, 2000
-------------------------------------------------------------------
Mossimo, Inc. (OTCBB: MGXO.OB) announced financial results for the
second fiscal quarter ended June 30, 2000.

Net sales for the quarter decreased to $6.0 million, compared to $11.4
million for the second quarter of fiscal 1999. The decrease in sales
was primarily due to the termination of all sourcing, production and
sales operations during the second quarter as a result of the Company
entering into a licensing agreement with Target Corporation (NYSE:
TGT). The Company reported a net loss of $2.9 million, or ($0.19) per
diluted share, versus a net loss of $5.5 million, or ($0.36) per
diluted share, in the same period last year.

For the six month period ended June 30, 2000, net sales increased 23%
to $24.1 million versus $19.7 million for the same period last year.
Net loss for the first six months of fiscal 2000 was $11.8 million, or
($0.79) per diluted share, compared to a net loss of $7.0 million, or
($0.47) per diluted share, in the first six months of fiscal 1999.

In March 2000, the Company entered into a major, multi-product
licensing agreement with Target Corporation. Under the terms of the
agreement, Mossimo, Inc. will contribute design services and license
the Mossimo trademark to Target in the U.S., in return for royalties
on Target's sales of Mossimo products with guaranteed minimum
payments. Target will collaborate on design and be responsible for
product development, sourcing, quality control and inventory
management.

Mossimo Giannulli, Chairman, President and Chief Executive Officer of
Mossimo, Inc. commented, "Our restructuring is proceeding as planned,
and we continue to make positive strides with Target. Additional
recent events include the dismissal of the involuntary bankruptcy
petition filed against the Company and the successful renegotiation of
our credit facility."

Due to the restructuring of the Company's business, potential
difficulties in collecting accounts receivable and potential
liabilities associated with disputed markdown reimbursements claimed
by certain customers, available borrowings under the current credit
facility may not be adequate to meet the Company's obligations on a
timely basis. Should the Company experience such shortfalls, efforts
would need to be made to obtain additional funds.

Mr. Giannulli concluded, "Although it has only been a short period of
time, we are optimistic about our future with Target. We are
particularly encouraged that they have quickly embraced the lifestyle
status of Mossimo, and we both realize the potential of this alliance
extends beyond simply apparel and accessories. We look forward to
capitalizing on the many opportunities that lie ahead."

Founded in 1987, Mossimo, Inc., is a designer of men's and women's
sportswear.


PENN TRAFFIC: Reports Comp-Store Sales Up 1.3% With a Huge Footnote
-------------------------------------------------------------------
The Penn Traffic Company (Nasdaq: PNFT) announced that same store
sales for the second quarter ended July 29, 2000 increased 1.3% from
the comparable prior year period. {*}

"We are pleased with the Company's same store sales trends in recent
quarters, but we are by no means completely satisfied," said Joseph V.
Fisher, President and Chief Executive Officer of The Penn Traffic
Company. "To continue this progress, both our management team and our
associates are continuing to working hard to enhance our
merchandising, improve store operations, reduce costs and implement
our capital investment program.

"We believe that our second quarter sales results are an indication of
increased customer satisfaction. We expect to continue to improve our
operations and grow our business, and believe that everyone associated
with Penn Traffic is positioned to enjoy the benefits of our future
growth," said Fisher.

The Company expects to report its second quarter financial results on
September 6, 2000.

The Penn Traffic Company operates 220 supermarkets in Ohio, West
Virginia, Pennsylvania, upstate New York, Vermont and New Hampshire
under the "Big Bear," "Big Bear Plus," "Bi-Lo," "P&C" and "Quality"
trade names. Penn Traffic also operates wholesale food distribution
businesses serving 84 licensed franchises and 66 independent
operators.

The footnote:

      {*} Existing generally accepted accounting principles do not
provide specific guidance on the accounting for sales incentives that
many companies offer to their customers. The FASB Emerging Issues Task
Force (EITF), a group responsible for promulgating changes to
accounting policies and procedures, has issued a new accounting
pronouncement, EITF Issue Number 00-14, "Accounting for Certain Sales
Incentives," which addresses the recognition, measurement and income
statement classification for certain sales incentives offered by
companies in the form of discounts, coupons or rebates. The
implementation of this new accounting pronouncement will require Penn
Traffic to make certain reclassifications between Total Revenues and
Costs and Operating Expenses in the Company's Statement of Operations.
Penn Traffic will implement EITF 00-14 in the fourth quarter of the
Company's current fiscal year (the 53-week period ending February 3,
2000). In accordance with such implementation, Penn Traffic will also
reclassify certain prior period financial statements for comparability
purposes.

Penn Traffic expects that the implementation of EITF 00-14 will result
in an equal decrease to the Company's reported Revenues and Costs and
Operating Expenses. Accordingly, while Penn Traffic is currently
reviewing this pronouncement with its auditors and therefore cannot
quantify the precise effect on reported Revenues, Costs and Operating
Expenses or same store sales results, the Company believes that the
implementation of EITF 00-14 will not have an effect on Penn Traffic's
reported Operating Income, EBITDA or Net Income (Loss). The Company
currently expects that the implementation of this new accounting
pronouncement will result in a reduction to the Company's same store
sales trends for the first two quarters of the Company's current
fiscal year (13-week periods ended April 29, 2000 and July 29, 2000)
from that reported under the Company's existing income statement
classifications due, in part, to the increased promotional allowance
opportunities which the Company's vendors have made available to the
Company in the current fiscal year as compared to the prior year.
Based on current information and Penn Traffic's current interpretation
of EITF 00-14, the Company expects that its second quarter same store
sales will still be greater than the comparable prior year period
after taking into account the reclassifications described above.


PETSEC ENERGY: Selling Mustang Island Properties for $6,375,000
---------------------------------------------------------------
Petsec Energy, Inc., filed an Emergency Motion for authority to sell
Mustang Island properties, located in the shallow waters of the Gulf
of Mexico adjacent to Nueces and Kleburg Counties, Texas.  The
proposed Buyer is LLOG Exploration Offshore, Inc. for an aggregate
purchase price of $6,375,000 subject to certain adjustments.

The assets to be sold include the debtor's right title and interest in
and to seven leases with the State of Texas. Only one lease has a
producing well located thereon with all remaining leases being
classified as exploratory leases without current production. LLOG has
a 66.666% working interest in and operates the debtor's one producing
well in the Mustang Island area and therefore is a natural and
motivated buyer for the assets.

Houlihan, Lokey, Howard & Zukin Capital LP served as the transaction
broker to maximize the value of Petsec's assets for the benefit of its
creditors.  The debtor requests expedited hearing dates for the sale.
Petsec has agreed that in the event LLOG is not the successful bidder
in acquiring the assets, Petsec will pay a break-up fee of $125,000 to
LLOG.


PHILIP SERVICES: Releases First Set of Post-Emergence Financials
----------------------------------------------------------------
Philip Services Corporation (NASDAQ:PSCD) (TSE:PSC) announced its
consolidated financial results for the quarter ended June 30, 2000.  
All currency figures are stated in U.S. dollars. Results have been
presented according to U.S. generally accepted accounting principles.

The consolidated financial results for the six months ended June 30,
2000 include the consolidated financial results for Philip Services
Corp., an Ontario company, (the "Predecessor Company") for the three
months ended March 31, 2000 and the consolidated financial results for
Philip Services Corporation, a Delaware Company, (the "Company") for
the three months ended June 30, 2000. Due to the changes in the
financial structure of the Company and the application of fresh start
reporting as a result of its financial reorganization, as described at
the end of this release, the consolidated financial statements of the
Predecessor Company for periods ending on or prior to March 31, 2000
may not be comparable with the consolidated financial statements of
the Company issued subsequent to March 31, 2000.

"Our second quarter financial results reflect strong performance in
certain of our industrial outsourcing services, specialty and by-
products operations and the impact of a decline in ferrous scrap
prices throughout the quarter," said Anthony Fernandes, President and
Chief Executive Officer. "As the first set of financial results for
the restructured company, they indicate a marked improvement over last
year's second quarter performance. Our focus on building profitability
throughout the Company has resulted in a 1.5% increase in gross margin
and substantial SG & A reductions quarter over quarter. Our near term
objective remains to achieve profitability and solid returns for our
shareholders."

                           Financial Highlights
                (unaudited, millions of $, except EPS)

                 Three Months Ended June 30    Six Months Ended June 30
                   2000           1999           2000*        1999
                               (Predecessor                (Predecessor
                                Company)                    Company)
                 ------------------------------------------------------
Continuing operations:
Revenue           427.4         397.0           914.9        812.6
Gross margin       53.5          44.1           114.7         97.0
SG&A               38.2          50.4            75.3        100.1
Income(loss) from
operations          4.1         (20.0)           15.9        (31.5)
EBITDA**           16.3          (5.6)           50.1         (1.6)
Net earnings
(loss)             (4.9)        (61.7)           (5.9)      (100.6)
Loss per share
(basic and
diluted)          (0.20)        n/a***          n/a***       n/a***
Cash flow from
operating
activities       73.0(X)         (8.7)          65.0(X)          1.5

      * represents the combined consolidated financial results for the
        Predecessor Company for the three months ended March 31, 2000
        and the consolidated financial results for the Company for the
        three months ended June 30, 2000.

     ** Income (loss) before interest, taxes, depreciation and
        amortization, and reorganization costs.

    *** Not applicable as share structure has changed significantly due
        to reorganization.

    (X) Includes receipt of proceeds of $45 million from sale of UK
        Metal business and $21 million of restricted cash released in
        April 2000.

Summary of Results for the Quarter Ended June 30, 2000:

      * Revenue from continuing operations for the second quarter 2000
was $427.4 million compared to revenue from continuing operations of
$397.0 million for the second quarter of 1999. Excluding the effect of
the sale of the UK Metals and other non-core businesses, which
contributed revenue of approximately $32 million in the second quarter
of 1999, this top line performance represented a revenue increase of
$62 million or 17%.

      * Operating income from continuing operations for the second
quarter 2000 was $4.1 million, a $24.1 million improvement over the
same period last year. The net loss from continuing operations for the
second quarter of 2000 was $4.9 million, compared to a net loss of
$61.7 million for the second quarter of 1999, which included $20
million in reorganization costs and professional fees. The net loss in
the second quarter of 2000 was primarily attributed to the sharp
decline in ferrous scrap prices during the quarter, as well as
seasonally lower revenue and profitability for certain of the
Company's industrial services.

      * The gross margin for the second quarter of 2000 was $53.5
million or 12.5% of revenue, compared to $44.1 million or 11% of
revenue for the same period last year. The gross margin percentage
increase reflects the continued consolidation of facilities and the
closure of unprofitable locations.

      * The Company has maintained substantial liquidity, with working
capital as at June 30, 2000 of approximately $220 million, a cash
balance of $47 million and $175 million in working capital financing,
of which $65 million has been used to support letters of credit. The
Company has not needed to draw down cash from its working capital
facility to support its business requirements. In June 2000, the
Company utilized proceeds from the sale of its UK Metals business to
reduce its senior secured debt by $45 million. The improvement in the
Company's cash position was primarily due to lower than expected
capital expenditures and improvements in cash collection activities.

      * SG & A costs for the second quarter of 2000 were $38.2 million
compared to SG & A costs of $50.4 million, for the same period last
year. Excluding reorganization costs of $6 million in the second
quarter of 1999, the Company reduced its SG & A costs by $6.2 million
in the second quarter of 2000 compared to the same period last year,
the result of ongoing overhead cost reduction efforts in all the
business units.

      * The 2000 second quarter financial results also reflected costs
of approximately $1 million of external costs to support The Philip
Way initiative, a program to establish an integrated management system
throughout the Company. Under this initiative, the Company is
implementing uniform procurement, accounting, human resources and
other business processes, which will be delivered through a shared
technology platform. The resulting system will assist the Company to
establish a more competitive cost structure and integrate its business
activities. The Company will incur external costs approaching $6
million during the remainder of 2000 to implement this critical
initiative.


PHONETEL TECHNOLOGIES: 2Q Results Report $4.9MM Loss on $17MM Revenues
----------------------------------------------------------------------
PhoneTel Technologies, Inc. (OTCBB:PHTE) reported financial results
for the three-month and six-month periods ended June 30, 2000.

Revenues for the second quarter were $17.0 million, compared to $20.0
million in the prior year's second quarter. Second quarter EBITDA
(earnings before interest, taxes, depreciation and amortization, and
other unusual charges and contractual settlements) was $2.2 million,
compared to $1.6 million in the prior year's second quarter. The net
loss for the second quarter was $4.9 million, or $0.48 per common
share, compared to a net loss of $9.9 million, or $0.55 per common
share, in the second quarter of 1999.

Revenues for the second quarter 2000 increased $1.0 million when
compared to the first quarter revenue of $16.0 million. Second quarter
EBITDA increased $0.7 million compared to first quarter 2000 EBITDA of
$1.5 million. The net loss for the second quarter improved $0.6
million, or $0.06 per common share, compared to the first quarter 2000
net loss of $5.5 million, or $0.54 per common share.

Revenues for the six months ended June 30, 2000 were $33.0 million,
compared to $39.8 million for the same period in 1999. For the six
months ended June 30, 2000, EBITDA was $3.7 million, compared to $2.2
million for the same period in 1999. The net loss for the six months
ended June 30, 2000, was $10.4 million, or $1.02 per common share,
compared to a net loss of $20.6 million, or $1.14 per common share for
the same period in 1999.

As previously announced, PhoneTel's prepackaged plan of reorganization
(the "Plan") was confirmed by the U.S. Bankruptcy Court for the
Southern District of New York and was consummated on November 17, 1999
to complete the reorganization of the Company. PhoneTel completed the
refinancing of its $46 million secured debt and pursuant to the terms
of the Plan, converted its 12% Senior Notes into approximately 95% of
the reorganized Company's common stock. Former equity holders,
including the former holders of PhoneTel's mandatorily redeemable
preferred stock, received the remaining 5% of the new common stock.
As a result of the above changes in the Company's debt and outstanding
shares, and the adoption of fresh start reporting, the reported net
loss and per share amounts for the current year are not comparable to
the corresponding amounts in 1999. Depreciation and amortization,
interest expense and the number of shares used in determining loss per
share are less than the amounts and number of shares that would have
been reported if the reorganization had not been completed.

PhoneTel Technologies, Inc, is a leading independent provider of pay
telephones and related services with operations in 46 states and the
District of Columbia. PhoneTel serves a wide array of customers
operating in the shopping center, hospitality, health care,
convenience store, university, service station, retail and restaurant
industries.


PRIME RETAIL: 2Q Results Trigger Non-Compliance with Debt Covenants
-------------------------------------------------------------------
Prime Retail, Inc. (NYSE: PRT, PRT.PRA, PRT.PRB) announced its funds
from operations ("FFO") operating results and per diluted share
amounts after allocations to minority interests and preferred
shareholders for the second quarter of 2000, revised FFO expectations
for 2000, and updated the status of (i) its negotiations with Lehman
Brothers concerning the proposed loans which were announced June 21,
2000 and (ii) its compliance with its debt facilities. 2000 Second
Quarter FFO FFO was $3.1 million, or $(0.06) per diluted share after
allocations to minority interests and preferred shareholders, for the
three months ended June 30, 2000 compared to $26.8 million, or $0.39
per diluted share, for the three months ended June 30, 1999. FFO was
$22.1 million, or $0.20 per diluted share, for the six months ended
June 30, 2000 compared to $54.8 million, or $0.77 per diluted share,
for the six months ended June 30, 1999.

The FFO results for the first six months of 2000 include the following
non-recurring items:

    A) a second quarter provision for asset impairment of $8.5 million
       for two of the Company's properties in accordance with the
       requirements of Statement of Financial Accounting Standards No.
       121,
   
    B) severance and other compensation costs aggregating $2.4 million
       ($0.7 million in the second quarter),

    C) second quarter professional fees of $1.5 million, and

    D) a first quarter gain on the sale of outparcel land in Camarillo,
       California, of $2.5 million.

Excluding these non-recurring items, FFO was $13.8 million, or $0.15
per diluted share, for the three months ended June 30, 2000, and $32.0
million, or $0.38 per diluted share, for the six months ended June 30,
2000. The change in FFO and FFO per diluted share for the three and
six months ended June 30, 2000 compared to the same periods in 1999 is
primarily attributable to the following factors:

    A) the loss of net operating income offset by decreased interest
       expense due to the sale of a 70% joint venture interest in Prime
       Outlets at Birch Run in November 1999 and Prime Outlets at
       Williamsburg in February 2000;

    B) reduced occupancy in the outlet center portfolio (91.0% and
       90.7% at June 30, 2000 and March 31, 2000, respectively,
       compared to 92.7% and 93.6% at June 30, 1999 and March 31, 1999,
       respectively);

    C) higher interest expense resulting from increased short-term
       indebtedness and higher financing costs;

    D) increased corporate general and administrative expenses
       primarily the result of:

       (i)   non-recurring severance and other compensation costs,

       (ii)  non-recurring professional fees relating to refinancing
               activities, and

       (iii) lower capitalization of overhead costs due to reduced
               development activities;

    E) the provision for asset impairment for two of the Company's
       properties; and

    F) an increase in the provision for uncollectible accounts
       receivable due to certain tenant bankruptcies and abandonments.

Income (loss) before minority interests (GAAP basis) was $(15.8)
million and $7.7 million for three months ended June 30, 2000 and
1999, respectively, and $(27.4) million and $17.0 million for the six
months ended June 30, 2000 and 1999, respectively.

The GAAP results for the first six months of 2000 include the
following significant items:

    A) a non-recurring loss of $14.3 million related to the previously
       announced discontinuance of the Company's e-commerce
       subsidiary, primeoutlets.com inc., also known as eOutlets.com
       ($1.3 million in the second quarter),

    B) a non-recurring loss of $2.1 million related to the previously
       announced discontinuance of the Company's Designer Connection
       retail outlet stores ($1.0 million in the second quarter),

    C) a second quarter provision for asset impairment of $8.5 million,

    D) severance and other compensation costs aggregating $2.4 million
       ($0.7 million in the second quarter),

    E) second quarter professional fees of $1.5 million and

    F) a first quarter non-recurring gain on the sale of outparcel land
       of $2.5 million.

For the three and six month periods ended June 30, 2000, same-space
sales in outlet centers owned by the Company increased by 2% and 3%,
respectively, compared to the same periods in 1999. "Same-space sales"
is defined as the weighted average sales per square foot reported by
merchants for space opened and occupied since January 1, 1999. For the
three and six month periods ended June 30, 2000, same-store sales
decreased by 3% and 1%, respectively, compared to the same periods in
1999. "Same-store sales" is defined as the weighted average sales per
square foot reported by merchants for stores opened and operated by
the same merchant since January 1, 1999.

For the year ended December 31, 1999, the weighted-average sales per
square foot reported by all merchants was $257. Revised 2000 FFO
Expectations In light of the matters discussed above and the expected
increase in financing costs, the Company now expects its year 2000 FFO
results to be in the range of $0.45 to $0.55 per diluted share.

The Company previously announced on March 31, 2000 that it expected
year 2000 FFO results to be in the range of $0.98 to $1.08 per diluted
share. On July 24, 2000, the Company announced that distributions on
its 10.5% Series A Senior Cumulative Preferred Stock and 8.5% Series B
Cumulative Convertible Preferred Stock would be suspended for the
remainder of 2000. The Company is currently in arrears on those
quarterly preferred stock distributions which were due on February 15,
2000 and May 15, 2000, respectively. Non-payment of the quarterly
preferred distributions due on August 15, 2000 will represent the
third consecutive quarter that such dividends are in arrears. Lehman
Brothers Loan Negotiations and Debt Facility Compliance As previously
announced, the Company expects to close $110.0 million of new loans
from Lehman Brothers. The Company now anticipates closing the loans in
two phases.

The first phase, a $20.0 million first mortgage loan on the recently
opened Prime Outlets of Puerto Rico, is expected to close on or about
September 1, 2000. The second phase, a $90 million mezzanine loan, is
expected to close by the end of the third quarter. The mezzanine loan
will be secured by mortgages on, and pledges of equity interests in,
certain outlet centers. The proceeds from these loans will be used to
repay up to $80 million of short-term debt and for general corporate
purposes, including the funding of programs to attract and retain
tenants through increased marketing and capital improvements. The
closing of these loans is subject to customary conditions as well as
the agreement by certain existing lenders to modify terms of their
loans. There can be no assurance that the loans will close. The
Company also anticipates consummation of the third and final phase of
the Estein & Associates transaction consisting of the sale of a 70.0%
joint venture interest in Prime Outlets at Hagerstown in the third
quarter simultaneously with the closing of the Lehman Brothers
mezzanine loan. The Company expects to receive net proceeds of
approximately $19 million from the sale, which will be used to repay
short-term debt and for general corporate purposes. There can be no
assurance that the sale will close.

In light of its financial results for the second quarter of 2000, the
Company is not in compliance with financial covenants contained in
certain of its debt facilities. Noncompliance with these covenants may
have triggered cross-default provisions with respect to several other
Company debt facilities. Certain of the affected lenders have alleged
that non-compliance with the financial covenants constitutes a default
under their loan documents. The Company has advised these lenders
that, in its opinion, the nature and extent of the non-compliance with
the financial covenants would not permit any lender to accelerate the
maturity of its loan or pursue other remedies under the loan
documents. None of these loans has been accelerated nor has notice of
any lender's intention to accelerate been received by the Company. The
Company is in discussions with the affected lenders regarding either
paying off these loans in their entirety using proceeds from the
Lehman Brothers loans or modifying the terms and financial covenants
so that the Company will be in compliance at the time the Lehman
Brothers loans close. The Company continues to make all of its
regularly scheduled payments under the affected loans; however, there
can be no assurance that one or all of the affected lenders will not
attempt to accelerate the maturity of its loans or pursue other
remedies under their loan documents in a court of law.

In anticipation of closing the Lehman Brothers loans, the Company
obtained short-term extensions of a $20 million subordinated loan to
August 14, 2000 and a $25 million unsecured line of credit to August
30, 2000, or earlier if the Company terminates its efforts to close
the Lehman Brothers loans. The Company is in discussions with the
lenders to obtain additional short-term extensions of the two loans.
The two loans are expected to be retired with the net proceeds from
the Lehman Brothers loans. There can be no assurance that the loans
will be extended. The Company, through affiliates, holds fifty percent
(50%) interests in the owners of the outlet center in Oxnard,
California and phase one of an outlet center in Bellport, New York.
First mortgage loans on the centers have matured and are currently in
default. The Company is exploring all options to resolve these
defaults, including transferring the outlet centers to the lenders.
Such transfers would not be expected to have a material effect on the
Company's results from operations or financial condition. Prime Retail
is a self-administered, self-managed real estate investment trust
engaged in the ownership, development, construction, acquisition,
leasing, marketing and management of outlet centers throughout the
United States and Puerto Rico. As of August 1, 2000, Prime Retail's
outlet center portfolio consisted of 52 outlet centers in 26 states
and Puerto Rico totaling approximately 15.1 million square feet of
GLA.

The Company also owns three community shopping centers totaling
424,000 square feet of GLA and 154,000 square feet of office space. As
of July 31, 2000, Prime Retail's outlet center portfolio was 91%
occupied. Prime Retail has been an owner, operator and a developer of
outlet centers since 1988. For additional information, visit Prime
Retail's web site at http://www.primeoutlets.com.


RAYTECH CORPORATION: Takes $7.2 Billion Charge for Bankruptcy Costs
-------------------------------------------------------------------
Raytech Corporation (NYSE:RAY) announced results for the thirteen-week
period and twenty-six-week period ended July 2, 2000. In addition to
the normal operating results, the Company recorded a charge of $7.2
billion related to the bankruptcy process.  This charge, accounted for
as liabilities subject to compromise, represents an estimate of the
aggregate amount of allowed claims, which will be discharged in the
bankruptcy confirmation process as part of the settlement with its
creditors and equity holders with respect to the plan of
reorganization.  The Plan is expected to be confirmed near the end of
August 2000 with an effective date prior to year-end at which time the
discharge of substantially all the liabilities subject to compromise
will occur in exchange for 90% of stock of reorganized Raytech, while
the current equity holders will retain a 10% ownership position.

Excluding this charge, pretax earnings for the thirteen-week period
ended July 2, 2000 amounted to $6.4 million compared to $7.8 million
in the prior year. Excluding the bankruptcy charge noted above, pretax
earnings for the twenty-six week period ended July 2, 2000 were $15.6
million as compared to $15.4 million in the same period in the prior
year. The improved performance was achieved in the face of a sales
decrease of $4.6 million which is explained below.

The Company recorded a loss for the thirteen-week period ended July 2,
2000 of $7.06 billion or $2,023.70 loss per basic share as compared to
income of $5.3 million or $1.56 per share for the comparable period of
the prior year. For the twenty-six-week period ended July 2, 2000, the
Company recorded a net loss of $7.06 billion or $2,025.12 loss per
basic share as compared to income of $9.8 million or $2.87 income per
basic share for the same period in the prior year.

"Our determination to resolve the bankruptcy issue has brought us near
closure at this time. Other than the recognition of the estimated
amount of allowed claims in connection with the bankruptcy, we
continue to perform at levels equal to 1999. We are very near the end
of the Chapter 11 process and look forward to operating the
reorganized Raytech in the near future in a normal business
environment," said President and Chief Executive Officer Albert A.
Canosa.

                                  Net Sales

Worldwide net sales for the thirteen-week period ended July 2, 2000
were $61.1 million as compared to $65.8 for the same period in the
prior year. Net sales for the 26-week period ended July 2, 2000 of
$128.6 million reflects a decrease of $4.6 million compared to
reported sales of $133.2 million in the corresponding period for 1999.
The reduced sales reflect a slowdown in the Aftermarket which is being
experienced industry wide. In addition, the European dry friction
market continues to be below the prior year amount as the euroland
countries continue slow economic growth.
"We continue to see growth in our U.S. wet friction sales as the
automobile original equipment manufacturers and heavy duty
manufacturers continue to perform well. We consider the slower sales
in the aftermarket to be a temporary situation," continued Canosa.

Raytech Corporation is headquartered in Shelton, Connecticut, with
operations serving world markets for energy absorption and power
transmission products, as well as custom-engineered components.


RELIANCE GROUP: Announces $500+ Million Net Loss in the Second Quarter
----------------------------------------------------------------------
Reliance Group Holdings, Inc. (NYSE: REL) reported a net loss of
$504.5 million, or $4.40 per diluted share, for the second quarter of
2000. The net loss in the quarter included:

    a) An after-tax charge of $288.7 million, or $2.52 per diluted
share, for increasing net loss reserves by $444.2 million pretax;

    b) An after-tax expense of $26.5 million ($40.7 million pretax) or
$.23 per diluted share, for amounts paid to reinsurers as additional
compensation for assuming $64.1 million of pretax losses under various
stop-loss treaties;
  
    c) A charge of $195.6 million, or $1.70 per diluted share, for the
write-off of the company's remaining goodwill;

    d) An after-tax restructuring charge of $48.8 million, or $ .43 per
diluted share, resulting from the consolidation of the company's
operations;

    e) A charge of $178.3 million, or $1.55 per diluted share, for an
increase in the company's deferred tax valuation allowance;

    f) Net realized capital gains of $57.7 million, or $ .50 per
diluted share; and

    g) An after-tax gain of $234.9 million, or $2.05 per diluted share,
resulting from the sale of Reliance's surety and fidelity operations.

On June 30, 2000, Reliance Insurance Company had a statutory surplus
of $1.14 billion, and Reliance Group had shareholders' equity of
$454.8 million, or book value of $3.96 per share. In the second
quarter of 1999, Reliance Group had a net loss of $156.9 million, or
$1.38 per diluted share. Included in these results were:

    1) An after-tax charge of $147.7 million, or $1.30 per diluted
share, for increasing net loss reserves by $227.2 million pretax;

    2) An after-tax expense of $67.1 million, or $ .59 per diluted
share, for amounts paid to reinsurers as additional compensation for
assuming $172.1 million of pretax losses under various stop-loss
treaties;

    3) An after-tax benefit of $55.5 million, or $ .49 per diluted
share, due to a reversal of income tax and related interest expense as
a result of the settlement of various federal income tax matters; and

    4) An after-tax loss on the sales of investments of $2.0 million,
or $.02 per diluted share.

On June 8, 2000, A.M. Best Company downgraded the rating of Reliance
Insurance Company from "A-" (Excellent) to "B++" (Very Good).
Subsequently, on July 14, 2000, A.M. Best further downgraded Reliance
Insurance Company to "B" (Fair).

Among the factors Best cited for its downgrades were high operating
leverage, reduced liquidity, unfavorable underwriting results,
uncertainty related to loss reserve adequacy and Best's belief that
Reliance would not be able to refinance its bank borrowings and senior
notes maturing in 2000.

These ratings downgrades impair Reliance's ability to write many of
its lines of business. As a result, Reliance has entered into
agreements to sell and/or transfer renewal rights of certain property
and casualty businesses. Reliance's current business plan is to
operate its property and casualty insurance business as a run-off
company, paying claims, continuing its efforts to seek buyers for
substantially all of its insurance lines of business and nonrenewing
other lines.

At June 30, 2000, Reliance Group had $735.1 million of debt
outstanding, including $237.5 million of bank borrowings with a
maturity date of August 31, 2000 and $291.7 million of senior notes
due November of 2000. Due to the uncertainty created by the recent
ratings downgrades, Reliance does not expect to be able to obtain
regulatory approval for dividends from Reliance Insurance Company
sufficient to fund the repayment at maturity of the bank debt and the
senior notes. In addition, $171.8 million of senior subordinated
debentures mature in 2003, unless accelerated as a result of an event
of default.

Reliance is in discussions with its creditors and regulators to
develop a comprehensive plan to restructure its outstanding debt.
However, there can be no assurance that its efforts will be
successful. Reliance Group is exploring a full range of alternatives
to restructure its debt. Among the potential alternatives would be for
Reliance Group to seek protection under the Federal Bankruptcy Code,
which could be in conjunction with a negotiated settlement in advance
of filing.

Revenues increased to $1.16 billion in the second quarter of 2000 from
$736 million a year ago, due to a $374.2 million pretax gain on the
sale of Reliance's surety and fidelity operations as well as higher
gains from the sales of equity securities from the company's
investment portfolio.

For the first six months of 2000, Reliance Group had a net loss of
$359.0 million, or $3.13 per diluted share, compared with a net loss
of $172.4 million, or $1.50 per diluted share, for the first six
months of 1999.
Revenues for the first half of 2000 were $2.18 billion, compared with
$1.49 billion for the first half of 1999.


REPUBLIC GROUP: Moody's Places Senior & Senior Sub Debt Under Review
--------------------------------------------------------------------
Moody's Investors Service placed the guaranteed senior secured bank
debt and senior subordinated debt ratings of Republic Group under
review with direction uncertain . These rating actions are prompted by
the announcement that Republic had signed a definitive merger
agreement to be acquired by Premier Construction Products Statutory
Trust, a private statutory trust which is an affiliate of Integrated
Capital Associates. Republic also announced that it had signed a
backup agreement with Centex Construction Products, a building
materials supplier which is approximately 65% owned by Centex
Corporation (long term debt rated Baa2).

    ** Ratings under Review Direction Uncertain

    ** Republic Group Incorporated

    ** Guaranteed senior secured bank debt, currently Ba3

    ** Senior subordinated notes, currently B2

    ** Senior implied rating, B1

Moody's notes that Republic Group, a manufacturer of gypsum wallboard
and wallboard paper, has recently completed construction of two major
projects, one new facility and a significant capacity expansion at an
existing plant, which together have substantially increased its debt
burden at a time when pricing for its products has been sliding. The
rated notes were issued in connection with that capacity construction
and contain a repurchase option of holders in the event of a change of
control. Moody's review will focus on the credit standing of Premier
Construction Products Statutory Trust, and its credit capacity to
assume obligations for any notes which are not offered for repurchase.
Moody's review will also consider the likelihood that the backup offer
will, in fact, ultimately be accepted and that Centex Contruction
Products would be the acquirer of Republic's assets and obligations.

Republic, headquartered in Hutchinson, Kansas, is an integrated
manufacturer of gypsum wallboard and recycled paperboard products.


ROYAL MORTGAGE:  Case Summary and 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor:  Royal Mortgage Partners, L.P.
          701 S. Parker Street, Suite 2000
          Orange, CA 92868

Type of Business:  The Company is a specialized consumer finance     
                    company in the subprime lending industry engaged in
                    purchasing, originating, servicing and selling home
                    equity loans secured primarily by first liens on
                    one to four family residential properties.

Chapter 11 Petition Date:  August 14, 2000

Court:  Southern District Of New York

Bankruptcy Case No:  00-13732

Judge:  Jeffry H. Gallet

Debtor's Counsel:  Albert Togut, Esq.
                    Togut, Segal & Segal LLP
                    One Penn Plaza
                    New York, New York 10119
                    (212) 594-5000

Total Assets:  $ 100 million above
Total Debts :  $ 100 million above

20 Largest Unsecured Creditors

Norwest Bank Minnesota,
  National Association
  Corporate Trust Department
6th Avenue & Marquette Street
Minnesota, MN 55479                     $ 300,000,000

Norwest Bank Minnesota,
  National Association
  Corporate Trust Department
6th Avenue & Marquette Street
Minnesota, MN 55479                     $ 200,000,000


Norwest Bank Minnesota,
  National Association
  Corporate Trust Department
6th Avenue & Marquette Street
Minnesota, MN 55479                     $ 200,000,000

Credit Suisse First Boston
11 Madison Avenue
New York, NY 10010                       $ 35,915,299

Dresdner Bank
75 Wall Street
New York, NY 10005                       $ 35,915,299

The Bank of Nova Scotia
One Liverty Plaza, 26th Flr.
New York, NY 10006                       $ 26,120,030

The Bank of New York
One Wall Street
New York, NY 10268                       $ 23,670,699

Credit Lyonnais
1301 Ave of the Americas
New York, NY 10019                       $ 22,856,311

Bank of America
901 Main Street
51st Floor
PO Box 8301-01
Dallas, TX 75202                         $ 19,594,648

Comerica Bank
500 Woodward Avenue MC 3256
Detroit, MI 48226                        $ 19,588,481

South Trust Bank, National
  Association
112 N. 20th Street
Birmingham, AL 35203                     $ 16,328,874

Societe Generale
1221 Avenue of the Americas
New York, NY 10020                       $ 16,322,706

Silver Oak Capital, L.L.C.
245 Park Avenue
New York, NY 10167                       $ 15,665,852

Credit Agricole Indosuez
520 Madison Avenue
New York, NY 10022                       $ 13,879,542

The Chase Manhattan Bank
270 Park Avenue, 23rd Floor
New York, NY 10017                       $ 13,063,098

Manufacturers and Traders
  Trust Co.
One Fountain Plaza
12th Floor
Buffalo, NY 14203-1495                   $ 13,063,098

The Sumitomo Bank
277 Park Avenue, 6th Floor
New York, NY 10172                       $ 13,058,987

UBS AG, New York Branch
299 Park Avenue
New York, NY 10171                        $ 9,797,324

DG Bank
609 Fifth Avenue
New York, NY 10017                        $ 9,791,157

Deutsche Bank
31 West 52nd Street
New York, NY 10019                        $ 9,791,157


RSL COMM: Senior Debt Remains on Review for Further Moody's Downgrade
---------------------------------------------------------------------
Moody's Investors Service downgraded the debt ratings of RSL
Communications PLC to B3 from B2 and placed those ratings on review
for possible further downgrade. The ratings downgrade reflects the
company's inability to achieve the cash flow growth Moody's had been
expecting. Moody's review for possible further downgrade will focus on
the company's plans to ensure sufficient liquidity for the company.

Moody's notes that RSL has been looking to shed non-core assets in
order to focus on its core business in the US and Europe. However, the
timing and amount of such sales and monetizations are uncertain, and
in the meantime RSL's core operations have underperformed. Further,
the company's plans to expand its service offerings to combat price
pressure in the international long distance market have increased its
capital requirements putting additional pressure on the ratings.

Details of the rated issues are as follows:

    * Guaranteed Senior notes downgraded to B3 from B2:

         a) $172.5 million 12.25% senior notes due 2006

         b) $200 million 9.125% senior notes due 2008

         c) $328 million 10.125% senior discount notes due 2008

         d) DM 296 million 10% senior discount notes due 2008

         e) $100 million 12% senior notes due 2008

         f) $200 million 10.5% senior notes due 2008

         g) $175 million 9.875% senior notes due 2009

         h) Euro 100 million 12.875% senior notes due 2010

         i) $100 million 12.875% senior notes due 2010

RSL has its headquarters in Hamilton, Bermuda and also maintains
executive offices in New York.


SABRATEK: Retains & Employs Experts in Software Licensing Action
----------------------------------------------------------------
Sabratek Corporation, et al., requests permission from the U.S.
Bankruptcy Court for the District of Delaware to employ certain
litigation experts in its
adversary action against Adventist Health System Sunbelt Healthcare
Corporation and HealthMagic, Inc.  The case involves a software
license and
marketing agreement entered between Sabratek and HealthMagic, Inc.
Sabratek paid $10 million in consideration for an exclusive worldwide
license to market, sell and grant sublicenses of the Software and a
percentage of the gross profits on Software sales. The Agreement
required health Magic to deliver marketable Software in the first
quarter of 1999 and to meet a series of technology milestones that
began in the third quarter of 1998, including various upgrades and
enhancements during 1999-2000. None of the technology milestones were
achieved. In fact the Software is still not saleable. As a result,
Sabratek lost its entire $10 million License Fee. In addition,
Sabratek incurred damages associated with preparing to market and sell
the software.

Sabratek filed the adversary proceeding seeking damages for breaches,
fraudulent conduct and tortious interference in connection with the
License Agreement. Sabratek states that to litigate the case, the
debtor will need one or more litigation experts to:

    * Review and analyze the software underlying Sabratek's claims;

    * Analyze the various breach of contract claims; and

    * Formulate damage computations.

The Creditors' Committee has 15 days from the receipt of a notice of
retention to object to the retention of the litigation expert.
Sabratek shall pay reasonable fees and expenses incurred by the expert
monthly. The Committee will also have 15 days after receipt to object
to any payments made. The court will determine the reasonableness and
necessity of fees and expenses in the event of an objection.


SAFETY-KLEEN: Committee Balks at Bid to Pay Prepetition Licensing Fees
----------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Safety-Kleen
Corporation and its debtor-affiliates objects to the Debtors' payment
of Pre-Petition Permit and Licensing Fees.  The doctrine of necessity
requires a debtor to show that payment of pre-petition claims is
critical to the debtor's reorganization.  In re Just For Feet, Inc.,
242 B.R. 821, 826 (Bankr. D. Del. 1999).  The Committee acknowledges
that certain pre-petition expenses may, depending on the
circumstances, be considered necessary to the ongoing viability of the
Debtors.  Safety-Kleen, however, has not satisfied its burden of
demonstrating the necessity of paying Permit and Licensing Fees
totaling $5,000,000.  The Committee also notes that the entities to be
paid are governmental authorities. Why are these payments even
necessary, the Committee questions, in light of the Bankruptcy Code's
prohibition against governmental authorities discriminating against
debtors who have not paid their prepetition debts?

Luc A. Despins, Esq., and Susheel Kirpalani, Esq., of Milbank, Tweed,
Hadley & McCloy, LLP, lead counsel to the Creditors' Committee,
relates that the Committee requested, but has been informed that
Safety-Kleen cannot provide, a breakdown of which portion of the Fee
Payments relate to Fees due and owing for periods prior to the
Petition Date and which portion relates to Fees due and owing for
periods after the Petition Date.  The distinction, the Committee
contends, is crucial because the Committee believes that the amounts
potentially involved as Pre-Petition Fees are not insignificant.

Unless the Committee can learn more about what fees the Debtors plan
to pay and why the Debtors believe those payments are critical, the
Committee tells Judge Walsh that he should deny the Motion and enter
an order declaring that, pursuant to 11 U.S.C. Sec. 525(a), the
Authorities are prohibited from discriminating against Safety-Kleen
for failure to pay the Pre-Petition Fees. (Safety-Kleen Bankruptcy
News, Issue No. 6; Bankruptcy Creditors' Service, Inc., 609/392-0900)


SOUTHERN MINERAL: Plan Transfers 78% of New Equity to Debentureholders
----------------------------------------------------------------------
Southern Mineral Corporation concluded an agreement among all parties
contesting its Plan of Reorganization to support an amendment to its
Plan to emerge from bankruptcy. Among other arrangements, the
amendment will provide for the issuance of common stock to its current
Convertible Subordinated Debentureholders that, when issued, will
represent approximately 78% of the common shares. In addition, a cash
payment of $5 million will be made on a pro rata basis to the
Debentureholders. This agreement replaces the prior filed Plan that
provided for an exchange into convertible preferred stock and a $1.4
million cash payment. The agreement also provides that the current
common shareholders will receive warrants allowing them to increase
their ownership to up to 40%.  The Bankruptcy Court set July 19, 2000
to complete the confirmation hearing on the Plan subject to certain
restrictions. Upon confirmation, a new slate of seven directors takes
office and will be comprised of two members of the company's current
Board and five members selected by the contesting parties.

On July 21, 2000, The United States Bankruptcy Court for the Southern
District of Texas, Victoria Division, entered an order confirming
Southern Mineral Corporation, and certain of its subsidiaries, Second
Amended Plan of Reorganization filed May 2, 2000, as amended. The Plan
was expected to become effective on August 1, 2000.

Southern Mineral Corporation is an oil and gas acquisition,
exploration and production company that owns interests in oil and gas
properties located along the Texas Gulf Coast, Canada and Ecuador. The
company's principal assets include interests in the Big Escambia Creek
field in Alabama and the Pine Creek field in Alberta, Canada.


TEXFI INDUSTRIES: Hires Mr. Timpson as New CFO for $5,000 a Week
----------------------------------------------------------------
The US Bankruptcy Court, Southern District of New York, entered an
order that any party in interest in the case of Texfi Industries, Inc.
may show cause on August 17, 2000 at 10:00 AM why an order should not
be made and entered authorizing the debtor to hire Mr. Timpson as its
Chief Financial Officer/executive vice president.

The debtor filed a motion seeking authorization to hire Timpson to
Replace Robert P. Ambrosini as the debtor's CFO/executive vice-
president nunc pro tunc to August 7, 2000. Ambrosini resigned as of
August 10, 2000. The debtor requires Mr. Timpson's services to manage
the debtor's finances on a day to day basis, negotiate with the
debtor's creditors, proposed lenders and potential investors, and to
assist the debtor's counsel in administering this Chapter 11 case. The
debtor is presently negotiating to obtain long-term postpetition
financing to replace the facility that is due to expire on September
1. In addition, the debtor is negotiating with strategic investors
with the goal of presenting a plan of reorganization to the court as
promptly as possible. The debtor has an extremely lean senior
management team, and the debtor risks irreparable injury unless it can
effect an immediate transition and have Timpson step into the role
performed by Ambrosini. The debtor proposes to hire Timpson as an at-
will employee of Texfi, and to pay him $5,000 per week for his
services. He will not receive any insurance benefits.


TITANIUM METALS: Revenues Decline 15% and Losses Soar by a Factor of 4
----------------------------------------------------------------------
Titanium Metals Corporation reports a loss before restructuring items
for the second quarter of 2000 of $10.1 million compared to a net loss
in the second quarter of 1999 of $2.5 million. The second quarter 2000
results also include net-of-tax restructuring credits of $.6 million
associated with revisions to previous estimates of such costs. Net
loss for the second quarter of 2000 was $9.5 million.

Sales of $108.8 million in the second quarter of 2000 were 15% lower
than the year-ago period. The company indicates this resulted
principally from a 10% decline in average mill product selling prices
offset by a 3% increase in sales volume.

Ingot and slab sales volume increased 34% from year-ago levels, while
average selling prices declined 4%. As compared to the first quarter
of 2000, mill product sales volume in the second quarter of 2000
increased 7%, while average selling prices decreased 6%. Ingot and
slab sales volume in the second quarter of 2000 increased 53% compared
to the first quarter of 2000, while average selling prices decreased
4%. TIMET's backlog at the end of June 2000 was approximately $160
million, compared to $185 million at the end of March 2000. Backlog at
the end of June 1999 was $240 million.

J. Landis Martin, Chairman, President and CEO of TIMET said, "We
believe our business in the second quarter continued to be adversely
impacted by an excess supply of titanium inventory throughout the
aerospace industry supply chain. Although there appears to be signs
that this situation is abating in selected products, the competitive
environment has continued to result in a softening of selling prices.
Current indications are that sales and operating margins, before
special items, will be slightly lower for the balance of 2000 compared
to the first half of this year. We are continuing our efforts to
increase sales and reduce costs wherever possible".

Regarding the company's previously reported lawsuit against The Boeing
Company, Boeing recently filed its answer to TIMET's complaint denying
substantially all of TIMET's allegations and making certain
counterclaims against TIMET. TIMET believes such counterclaims are
without merit and intends to vigorously defend against such claims.
Since April 2000, the company and Boeing have been in discussions to
determine if a settlement can be reached. Those discussions are on-
going; however, no assurance can be given that a settlement will be
achieved.


VIEW SYSTEMS: Rubin Investment Group Discloses 29.8% Equity Stake
-----------------------------------------------------------------
Rubin Investment Group, a private investment firm based in California,
discloses in a regulatory filing with the Securities and Exchange
Commission that it holds 3,213,800 shares of the common stock of View
Systems Inc., representing 29.8% of the outstanding common stock of
that company. The Group holds sole voting and dispositive powers on
the stock.  Personal funds in the amount of $630,000 was used to
purchase the common stock, no part of which was borrowed.  Rubin
Investment Group says it intends to hold the stock solely for
investment purposes and for resale to the public through an effective
registration statement under the Securities Act of 1933.


WESTMORELAND COAL: Turnaround Plan Working as 2Q Net Losses Decline
-------------------------------------------------------------------
Westmoreland Coal Company (Amex: WLB) reported a further reduction in
net losses for the second quarter 2000 of 16.5% compared with first
quarter 2000 and 50.6% compared with second quarter 1999. The
reduction in net losses for the second quarter 2000 compared to second
quarter 1999 were largely due to increased revenue from coal and power
operations and lower general, administrative and heritage costs.
Incurring no significant one-time events, the net loss for second
quarter 2000 improved to $2.1 million, notwithstanding the continuing,
significant negative effect of over $5.2 in retiree related benefit
costs incurred by the Company in the second quarter of 2000. The net
loss was a $0.4 million improvement over first quarter 2000 and a $2.1
million improvement over second quarter 1999, which was also burdened
by costs related to a proxy contest in 1999 initiated unsuccessfully
by a small group of dissident shareholders.

As part of a turnaround strategy, Westmoreland, the oldest independent
coal company in the United States, is aggressively implementing a
growth strategy to overcome the heavy burden of health benefits for
coal industry retirees and their dependents including those federally
mandated by the Coal Industry Retiree Health Benefits Act of 1992.
Annual expenses of over $22 million for those benefits will cause
Westmoreland to post losses until new, profitable operations can be
brought on-line.

                Westmoreland's Growth Strategy

The growth plan, which was first presented in Westmoreland's 1999
Annual Report delivered to shareholders in late spring, calls for
optimizing existing core operations in conjunction with the
exploitation of niche opportunities that can capitalize on the
changing energy marketplace which seeks more, lower-cost power and a
cleaner environment. Relying on its experience and understanding of
the energy business, the Company's acquisition of profitable
businesses in niche markets will allow the Company to utilize its tax
loss carryforwards ("NOLs") of over $200 million to shield the taxable
income of those businesses. This will result in higher rates of return
and generate greater cash flows which will be available for further
investment and growth, operating expenses, and dividends to
shareholders.

The Company is actively pursuing opportunities in coal, oil and gas,
and power production. It recently confirmed that it is engaged in
exclusive negotiations to purchase certain assets of Knife River Coal
Company, an affiliate of Montana-Dakota Utilities.

                Liquidity and Shareholders' Equity

Consolidated cash and cash equivalents at June 30, 2000 totaled $11.1
million, including $7.7 million at Westmoreland Resources, Inc.
("WRI") which is available to the Company through dividends. In
addition, the Company has restricted cash of $19.1 million. The
Company's principal current sources of cash flow include cash
distributions from the independent power projects, dividends from
Westmoreland Resources, Inc. and interest earned on cash reserves.
Other future potential sources of cash that might become available to
the Company include (1) reimbursement of the Company's expenditures to
repair the dragline at WRI, (2) recoveries from Virginia Power in
connection with the ROVA "forced outage" issue, (3) amounts which may
become available in connection with the Contingent Promissory Note
("Note") executed as part of the Company's dismissal from bankruptcy
in 1998, (4) strategic asset sales, (5) overfundings of benefit plans,
(6) cash flow from new investments, and (7) reductions in heritage
costs due to normal attrition and potential prescription drug
legislation.

After recognition for presentation purposes of $0.4 million for unpaid
preferred dividends for the second quarter of 2000, net loss
applicable to common shareholders was $2.5 million compared to a loss
of $4.9 million for the same period in 1999. Common stock dividends
may not be declared until preferred dividends that are accumulated but
unpaid are made current. The Company distributed over $27.8 million to
preferred shareholders in 1999 through two tender offers which reduced
shareholders' equity and cash. In part as a result of the two tenders,
the Company is currently constrained from payment of the accumulated,
but unpaid preferred dividends. The constraints include specific
provisions of Delaware Law that require threshold levels of
shareholders' equity before dividends can be paid, and the need to
remain in compliance with the financial ratio requirements contained
in the Note. Failure to comply with the Note could result in the
forfeit of up to $12 million to the UMWA Benefit Funds. Shareholders'
deficit was $1.5 million at June 30, 2000.

Management Comment - Christopher K. Seglem, Westmoreland's Chairman,
President and CEO said: "The progress we have made with our efforts to
reduce costs and to maximize the income generated from our current
core operations is evidenced by the operating income contributions of
$1.1 million by our coal operations and over $4.1 million by the
independent power operations this quarter. But, as we have previously
pointed out, these efforts alone cannot overcome losses generated by
the federally mandated benefit costs for coal industry retirees and
their dependents. Thus, timely, deliberate execution of our growth
strategy is vital to the Company, and we are making good progress in
this regard. Our plan should unlock the value of the Company's tax
assets leading to greater cash flows and profitability and ultimately,
increase the value of the Company for its stockholders."

First Half 2000 Financial Results - Net loss was $4.6 million for the
first half of 2000 compared with net income of $8.3 million for the
same period in 1999. The 1999 net income was driven by a one-time
$17.0 million gain resulting from the sale of the Rensselaer Project,
offset by certain one-time selling and administrative costs. Excluding
the effect of the Rensselaer earnings and one-time events, first half
2000 net income improved by approximately $1.5 million over 1999. Net
loss applicable to common shareholders was $5.5 million for the first
half of 2000 compared with net income of $7.0 million for the same
period in 1999.

Westmoreland Coal Company, headquartered in Colorado Springs, CO,
emerged from Chapter 11 on January 4, 1999, satisfying all debt
obligations with interest and preserving 100% of its shareholders'
interests. It is now implementing a strategic plan for expansion and
growth through the acquisition and development of opportunities in the
changing energy marketplace. The Company's current core operations are
Powder River Basin coal mining through its 80%-owned subsidiary
Westmoreland Resources, Inc. and independent power production through
its wholly owned subsidiary Westmoreland Energy, Inc. The Company also
holds a 20% interest in Dominion Terminal Associates, a coal shipping
and terminal facility in Newport News, Virginia.


WESTSTAR CINEMAS: Disclosure Statement Hearing Scheduled for August 30
----------------------------------------------------------------------
WestStar Cinemas, Inc. and its debtor affiliates filed a motion for
consideration of approval of its Disclosure Statement at a hearing to
be held before the Honorable Joseph J. Farnan, US Bankruptcy Court,
District of Delaware on August 30, 2000 at 10:00 AM. Any objections to
the Disclosure Statement must be filed with the court so as to be
received on or before 4:00 PM on August 28, 2000 by co-counsel to the
debtors, Hennigan, Bennett Doorman and Young, Conaway Stargatt &
Taylor LLP and Patricia Staiano, US Trustee.
  
The debtors have proposed a plan that recognizes the separation of the
creditors of each Estate. The debtors are not seeking substantive
consolidation of the cases.

On January 12, 2000 the Court approved the sale of the debtors' assets
to WF Cinema for a purchase price of $46,865,000. In addition, the
debtors received from WF on the closing date, a note in the amount of
$45 million, that comes due on October 15, 2000. Interest is accruing
on the WF Note at the rate of 7% and is paid quarterly. Performance of
the WF Note is guaranteed by Viacom, Inc. and Time Warner
Entertainment Company, LP.

Because the debtors received a lump sum for the sale of substantially
all of their assets, it is necessary to allocate the sale proceeds
first among the various estates and second between encumbered and
unencumbered property within each estate.

The debtors have proposed an allocation that values the property held
by Cinemas at $8,500,000. The property was fully encumbered by the
Senior Lenders' Claims. The debtors have allocated $500,l000 to
Colorado Holdings based upon Colorado Holdings' share of the property
sold to WF, which assets were also fully encumbered by the Senior
Lenders' Claim. The remaining sale proceeds have been allocated to
real estate. Within Real Estate, the sale proceeds were further
allocated between encumbered and unencumbered assets.  Both the
debtors and the Committee have alleged throughout the administration
of the se cases, that CIBC and the Senior Lenders were unsecured in
several of the leasehold interests owned by Real Estate. Real Estate
has thus allocated $41 mm of the sale proceeds to encumbered property.

Given the number and complexity of asserted claims (in excess of $128
million), the debtors have not yet completed their review and analysis
of such claims.

The plan provides for two separate distributions to be made to
creditors.  Following the final distribution each of the debtors shall
be dissolved.  The plan divides holders of claims against and holders
of equity interests in the
debtors into 24 classes.

They are divided into four larger classes:

    Class 1 - Claims Against and Equity Interests in Holdings,

    Class 2 - Claims Against and Equity Interests in Cinema;

    Class 3 - Claims Against and Equity Interests in Real Estate and

    Class 4 - Claims against and Equity Interests in Colorado Holdings.

Holders of allowed claims in Classes 1C, 1D, 2A, 2C, 2D, 2E, 3A,
3C, 3D, 4A and 4C are entitled to vote because they are impaired. The
disclosure statement does not provide estimated actual recoveries to
impaired
claimants.


WSR CORP: Requests Extension of Exclusive Period through October 9
------------------------------------------------------------------
WSR Corporation and its debtor affiliates seek court authority to
extend exclusive periods in which to file a Chapter 11 plan and
solicit acceptances thereto.  A hearing on the motion will be held on
August 30, 2000 at 4:00 PM before the Honorable Mary F. Walrath, US
Bankruptcy Court, District of Delaware.

The debtors seek an extension of their Plan Exclusivity Period and
Solicitation Exclusivity Period for approximately sixty days, to and
including October 9, 2000 and December 8, 2000. The requested
extensions are, according to the debtors, necessary to afford the
debtors sufficient time to propose and confirm a Chapter 11 plan or
plans.

The debtors have received comments from the Creditors' Committee with
respect to their draft plan. The debtors continue to work closely with
the Creditors' Committee and intend to provide the Creditors'
Committee with a copy of their disclosure statement shortly. The
debtors submit that cause exists to support a sufficient extension of
the Exclusivity Periods to enable the debtors and the Committee to
finalize the terms of the plan and propose, solicit votes for and
confirm the plan.


ZETA CONSUMER: iSolve Purchases Inventory from Bankruptcy Auction
-----------------------------------------------------------------
iSolve Incorporated(SM), the business-to-business marketplace for
surplus inventory and corporate barter, announced that it has
purchased the new products inventory of defunct Zeta Consumer Products
Corporation for $625,000, following the proceedings of the bankruptcy
court. Zeta Corporation was a manufacturer of plastic and paper
products.

iSolve intends to resell the inventory on its Web site,
www.isolve.com. The company has already sold a large portion of the
inventory to Hudson Salvage, Inc., an extreme value retailer based in
Hattiesburg, Mississippi.

"This purchase is consistent with our objective of becoming an
important player in the liquidation and bankruptcy sale area," said
Randal Blosio, vice president of strategic alliances at iSolve. "We
have been active bidders on the distressed assets of a number of
companies, including ToySmart and others. We can offer financially
challenged companies a lifeline by helping them expeditiously
liquidate slow-moving assets. The ability to deliver sales for these
companies as opposed to just offering listing services represents an
entirely different value proposition."

iSolve is the industry's first full-service B2B marketplace for
surplus goods and excess capacity that offers corporate barter and Web
currencies.

"iSolve works with manufacturers, retailers and dot-coms, taking
principal positions in surplus and distressed inventory, thus
expediting the buy/sell process," said Lance Lundberg, chairman and
chief executive officer at iSolve. "Through our extensive global
relationships and our Web site, we're able to meet the channel
distribution needs of our customers on both an online and off-line
basis. Auction formats are rarely successful in meeting these needs."


                               *********


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
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