TCR_Public/000831.MBX              T R O U B L E D   C O M P A N Y   R E P O R T E R

                 Thursday, August 31, 2000, Vol. 4, No. 171

                                Headlines

ANKER COAL: Says Goodbye to Wilbur in Favor of $6.3MM Foothill Financing
BAPTIST FOUNDATION: Files Negligence Suit Against Arthur Andersen LLP
BOSTON CHICKEN: Plan Trustee Needs Until Oct. 31 to Object to Tax Claims
CERPLEX GROUP: Meeting of Creditors to Convene on Sept. 15 in Wilmington
EINSTEIN/NOAH: Declines to Pursue New World's Third Vague Offer

FEDERATED DEPARTMENT: Moody's Confirms Baa1 Senior Credit Ratings
FRUIT OF THE LOOM: Debtor Reports Second Quarter Operating Results
GRANT GEOPHYSCIAL: PricewaterhouseCoopers Resigns from Audit Engagement
IMPERIAL HOME: Delaware Court Extends Exclusivity to October 18
INTEGRATED HEALTH: Texas Utilities Stipulate to Sec. 366 Adequate Assurance

LAROCHE INDUSTRIES: Committee May Avoid Lenders' Liens up to Confirmation
MARINER POST-ACUTE: Summit's Moves to Sublet Vacant Premises to Glenwood
MARVEL ENTERPRISES: Shareholders to Gather in New York City on Sept. 28
MICROAGE INC.: Arizona Court Extends Exclusive Period to December 13, 2000
MINNESOTA CENTRAL: Railroad Files for Chapter 11 Protection in Wisconsin

NATIONAL HEALTH: Court Approves Debtors' 4th Amended Disclosure Statement
NATIONAL HEALTHCARE: Exiting Florida Markets as Liability Insurance Expires
PC SERVICE: Files for Chapter 11 Protection in Dallas, Texas
PRISON REALTY: Pacific Life Announces Vote On Prison Company's Proposals
PRISON REALTY: Results for Second Quarter Ended June 30, 2000

RANDALL'S ISLAND: Chase Urges Court to Limit or Deny Exclusivity Extension
RELIANT BUILDING: Committee Taps Haynes and Boone, LLP, as Counsel
SABRATEK CORPORATION: Stipulation Grants Co-Exclusivity to November 15
SYSTEM SOFTWARE: Harmonizing U.S. & Argentine Bankruptcy Laws is Impossible
TOKHEIM CORPORATION: Case Summary

UNITED KENO: Ontario Court Extends CCAA Protection to September 27
U.S. CAN: Moody's Gives Lukewarm Reception to $785MM New Debt & Securities
VLASIC FOODS: Senior Lenders Agree to Waive Covenants through Feb. 28, 2001
WAXMAN INDUSTRIES: After Barnett Sale is Completed, Look for Fall Prepack

                                *********

ANKER COAL: Says Goodbye to Wilbur in Favor of $6.3MM Foothill Financing
------------------------------------------------------------------------
Anker Coal Group, Inc. has received a commitment letter from Foothill
Capital Corporation to provide a supplemental term loan in the amount of
$6.3 million. Bruce Sparks, President of the company, stated that "he is
very pleased with Foothill's commitment to provide this supplemental
facility and their continuing cooperation with the company as it implements
its business plan and works to improve its financial performance."

The supplemental term loan will be provided under the company's existing
credit facility with Foothill and others, and will not increase the
maximum borrowing amount of $55 million under that facility. The
supplemental term loan will be amortized over a period of three years and
will be payable in thirty-six monthly installments beginning January 1,
2001. It will bear interest at the same rate as the company's existing term
loan and will be secured by the same collateral securing the company's
senior credit facility. The supplemental term loan will be closed on or
before September 29, 2000, and will be used to fund in part the interest
payment due on October 1, 2000 under the company's senior secured notes.
Closing of the supplemental term loan is subject to conditions contained in
Foothill's commitment letter, including execution of satisfactory
documentation, excess availability of at least the amount of the
supplemental term loan, and other customary closing conditions.

In light of the company's receipt of the commitment letter for the
supplemental term loan, the company has determined not to exercise its
option to sell additional senior secured notes to WLR Recovery Fund L.P.
(successor to Rothschild Recovery Fund, L.P.).


BAPTIST FOUNDATION: Files Negligence Suit Against Arthur Andersen LLP
---------------------------------------------------------------------
Baptist Foundation of Arizona announced that it has filed a lawsuit in the
Arizona Superior Court charging its former auditors, the "Big 5" accounting
firm of Arthur Andersen LLP, with negligence in conducting its annual
audits of BFA's financial statements for a 15-year period beginning in
1984, and culminating in BFA's bankruptcy late last year. Investors have
lost hundreds of millions of dollars as a result of BFA's demise.

The lawsuit alleges that, in conducting its annual audits, Arthur Andersen
ignored numerous "red flags" that should have alerted it to the fact that
BFA had been transformed by its former senior management team from a
legitimate investment vehicle into a "Ponzi Scheme," in which money from
new investors was used to pay off old investors. The massive losses
accumulated by BFA during this period were hidden from investors through
the transfer of non-performing assets from BFA to undisclosed related
entities in a series of highly suspicious, non-arms' length transactions.
Arthur Andersen's failure to investigate these transactions, which were
improper under generally accepted accounting principles, allowed BFA's
undisclosed losses to escalate to hundreds of million of dollars, and
ultimately resulted in its demise.

"The tragedy of BFA is an all too familiar example of accounting
professionals failing to do their job, with innocent investors left holding
the bag once the misconduct is disclosed," according to Alan Schulman of
Bernstein Litowitz Berger & Grossmann LLP, lead counsel for BFA in this
matter. "By filing this lawsuit, we intend to hold Arthur Andersen
responsible for the consequences of its failures."

BFA was founded in 1948 by the Arizona Southern Baptist Convention ("ASBC")
as a "not-for-profit" corporation for the purpose of benefitting Southern
Baptist causes. BFA raised funds through a variety of investment vehicles
that it marketed to Southern Baptist churches, pastors and church members,
among others. By 1999, more than 13,000 individuals had invested
approximately $590 million with BFA. On November 9, 1999, BFA filed a
petition for reorganization under Chapter 11 of the Bankruptcy Code,
following the discovery of accounting improprieties.

BFA is represented in this action by the law firm of Bernstein Litowitz
Berger & Grossmann LLP ("BLB&G"). BLB&G, with offices in California, New
York and New Jersey, specializes in prosecuting actions nationwide on
behalf of institutional and significant individual investors. The firm
recently served as co-lead counsel for the Class in In re Cendant
Corporation Litigation, which resulted in a settlement in excess of $3
billion in cash, including a recovery in excess of $300 million from
Cendant's former auditor, another "Big 5" accounting firm, which is
believed to be the largest recovery ever obtained from an accounting firm
in a securities fraud class action.


BOSTON CHICKEN: Plan Trustee Needs Until Oct. 31 to Object to Tax Claims
------------------------------------------------------------------------
"The magnitude of the administrative details and the large number of
priority claims primarily including prepetition and postpetition tax claims
of hundreds of taxing entities, has made it impossible," Gerald K. Smith,
Esq., of Lewis & Roca LLP in Phoenix, the Plan Trustee appointed pursuant
to Boston Chicken, Inc.'s Third Amended Plan of Reorganization confirmed on
May 15, 2000, tells Judge Case, to object to all secured and priority
claims before the September 23 deadline imposed by the Plan.  "Much
progress has been made, but a continuance of the deadline is essential."  
Mr. Smith suggests that he can settle or object to all secured and priority
claims by October 31, 2000, and, accordingly, requests that the deadline be
extended to that date.  


CERPLEX GROUP: Meeting of Creditors to Convene on Sept. 15 in Wilmington
------------------------------------------------------------------------
On June 20, an involuntary Chapter 11 bankruptcy petition was filed against
The Cerplex Group, Inc.  Cerplex consented to the involuntary petition and,
on July 27, 2000, Cerplex Inc., filed a voluntary petition under Chapter
11.

The United States Trustee for Region III will convene a meeting of
Cerplex's creditors on September 15, 2000 at 11:30 AM, 844 King Street,
Room 2313, Wilmington, Delaware.  

Counsel for the debtors are:

      Norman L. Pernick, Esq.
      Saul, Ewing, Remick & Saul LLP
      222 Delaware Avenue
      PO Box 1266
      Wilmington, DE

      Adam H. Isenberg, Esq.
      Saul, Ewing, Remick & Saul LLP
      1500 Market Street, 40th Floor
      Centre Square West
      Philadelphia, Pa. 19102


EINSTEIN/NOAH: Declines to Pursue New World's Third Vague Offer
---------------------------------------------------------------
In response to inquiries, Einstein/Noah Bagel Corp. (OTC Bulletin Board:
ENBXQ) announced today that it received a copy of an August 28, 2000 letter
from New World Coffee-Manhattan Bagel, Inc., discussing a possible
combination of New World and the Company.  The New World letter was
addressed to the Creditors' Committee in the Company's Chapter 11 case.  
The New World letter, which also references a June 21 proposal that had not
been received by the Company, is incomplete and vague and does not provide
a basis for any meaningful discussions between the Company and New World.
Among other things, the New World letter does not address how such a
combination between the two companies would be financed, what consideration
would be paid by New World or what, if any, distributions are to be made to
Bagel Store Development Funding, L.L.C.  Moreover, the Company is not aware
of the basis for certain assumptions made by New World regarding New
World's projected EBITDA and purported merger synergies.

The Company also announced that New World had made similar vague proposals
on two prior occasions. On both occasions, after considering the viability
of a combination and the benefits to be received by the Company's
stakeholders, the Company's board declined to engage in further discussions
with New World because it did not believe the New World inquiries provided
the basis for a meaningful transaction.

The Company further stated that, by law, it currently has the exclusive
right to propose and solicit acceptances of a plan of reorganization. As
previously reported, the Company expeditiously filed and prosecuted a plan
of reorganization which it believes to be in the best interests of its
stakeholders. The plan was mailed to creditors and other parties in
interest on August 14 and is currently being voted on. The hearing on
confirmation of the plan is scheduled to begin on September 19. The Company
intends to continue its efforts to confirm and consummate its plan and to
emerge from Chapter 11 as soon as possible.

Currently, ENBC, through Bagel Partners, operates 458 retail bagel stores
in 29 states and the District of Columbia operating under the Einstein
Bros. and Noah's New York Bagels brand names. Einstein Bros. and Noah's
stores are unique bagel cafes and bakeries featuring fresh-baked bagels, a
variety of cream cheese spreads, specialty coffee drinks, soups, sandwiches
and salads.

FEDERATED DEPARTMENT: Moody's Confirms Baa1 Senior Credit Ratings
-----------------------------------------------------------------
Moody's Investors Service confirmed the ratings of Federated Department
Stores, Inc., but changed the rating outlook from stable to negative,
following the company's announcement of a new $500 million share repurchase
authorization.  The confirmation of Federated's ratings reflect Moody's
expectation that cash flow generation by the company's department store
business will continue to be strong, and that the asset quality problems at
Fingerhut will not cause a significant deterioration in the company's debt
protection measures. The change in outlook to negative reflects the fact
that Federated may undertake further share repurchases at a time when
corrective actions at Fingerhut are negatively impacting earnings and when
there is still uncertainty about the strength of future Fingerhut sales in
a stricter credit environment.

Ratings confirmed:

    a) Senior bank credit facility and senior unsecured notes at Baa1.

    b) Senior unsecured shelf at (P)Baa1.

    c) Preferred stock shelf at (P)"baa2".

    d) Commercial paper at Prime-2.

The announcement of Federated's new share buyback authorization comes at a
time when the challenges at its Fingerhut subsidiary are already adversely
impacting debt protection measures and could signal a somewhat more
aggressive financial policy than in the past. The authorization is additive
to the approximately $70 million remaining on Federated's existing share
repurchase program as of the end of the second quarter. While its
department store division is expected to continue to generate strong cash
flow, Federated's Baa1 rating could come under downward pressure if
resolving the challenges at Fingerhut and/or aggressive share repurchases
result in significant further deterioration in the company's debt
protection measures.

Delinquencies at Fingerhut have been higher than planned. Consolidated
second quarter EBIT was hurt by larger bad debt reserves to cover
Fingerhut's delinquencies. There is also the possibility that EBIT could be
lowered by an additional $200 to $250 million during the fall season due to
a further increase in reserves for bad debt at Fingerhut, as well as, the
negative impact on sales from tighter credit policies and controls. While
consolidated profitability can clearly absorb such hits -- in fiscal 1999,
Federated's consolidated EBIT was about $1.7 billion -- the projected
reductions in EBIT are still significant.

The factors that led to lower credit quality at Fingerhut include the
conversion to revolving credit and more aggressive credit policies such as
deferred credit for newer customers. Federated has implemented more
conservative credit policies, including lower credit lines and the use of
new credit scoring before adjusting credit lines. Federated has also
increased collections activity, placed Fingerhut's credit operations under
Federated's own Financial and Credit Services Group, and changed customer
invoices to reflect Fingerhut's name as creditor. Such initiatives could
result in improved credit operations at Fingerhut next year.

Moody's cited Federated's traditional department store business as a credit
positive and noted that it remains the major source of earnings and cash
flow for the company. Federated's valuable franchise is geographically
diverse and includes well known national chains like Macy's and
Bloomingdale's. Customer loyalty is bolstered by the company's nine private
brands, that target various customer segments and lifestyles, and its
proprietary credit cards which account for about 40% of revenues. Evidence
of the acceptance of Federated's merchandise assortments can be seen in its
comparable store sales, which have been stronger this year than many of its
competitors'.

With corporate offices in Cincinnati and New York, Federated Department
Stores, Inc. operates more than 400 department stores in 33 states. Its
department stores operate under the names Bloomingdale's, Macy's, The Bon
Marche, Burdines, Goldsmith's, Lazarus, Rich's and Stern's. Federated also
operates a number of direct-to-consumer catalog and electronic commerce
businesses including Fingerhut. Federated's net sales in fiscal year 1999
exceeded $17.7 billion.


FRUIT OF THE LOOM: Debtor Reports Second Quarter Operating Results
------------------------------------------------------------------
Fruit of the Loom, Ltd. (OTC Bulletin Board: FTLAQ), one of the world's
leading marketers and manufacturers of basic family apparel, today reported
operating results for its second quarter.  Dennis Bookshester, Chief
Executive Officer commented, "We have made significant progress in
restructuring the operations of the Company in our effort to emerge from
bankruptcy.

Although our second quarter financial results reflect the carryover of the
costs associated with problems which occurred in the second half of 1999,
we have experienced significant operational and cost improvements in the
first half of 2000 versus 1999." Fruit of the Loom filed a voluntary
petition under Chapter 11 of the U.S. Bankruptcy Code on December 29, 1999
and is currently working through its restructuring in bankruptcy
proceedings.

The Company reported sales of $446.0 million for its second quarter
ended July 1, 2000 compared to $517.7 million for the second quarter of
1999. Loss from continuing operations for the second quarter of 2000 was
$55.9 million ($.83 per share) compared to earnings from continuing
operations of $4.5 million ($.07 per share) for the second quarter of
1999. Including discontinued operations, the net loss for the second
quarter of 2000 was $55.9 million ($.83 per share) compared to a net loss
of $2.3 million ($.03 per share) for the second quarter of 1999.

For the six months ended July 1, 2000, the Company reported sales of $820.9
million compared to $888.3 million for the corresponding period in 1999.
Loss from continuing operations for the six months ended July 1, 2000 was
$135.1 million ($2.02 per share) compared to a loss from continuing
operations of $0.4 million ($.00 per share) for the corresponding period in
1999. Including discontinued operations, the net loss for the six months
ended July 1, 2000 was $137.7 million ($2.06 per share) compared to a net
loss of $11.3 million ($.16 per share) for the corresponding period in
1999.

The Company's earnings before interest, taxes, depreciation, amortization
and restructuring costs ("EBITDAR"), as defined in the Company's debtor-in-
possession credit facility ("DIP"), was $84.1 million compared to $49.4
million during the second quarter of 1999. EBITDAR excludes the Company's
inventory variances (which are additional product costs in excess of
standard costs) capitalized in 1999, gains and losses on nonoperating asset
sales and the restructuring costs associated with the bankruptcy. For the
six months ended July 1, 2000, EBITDAR was $138.0 million compared to $84.6
million during the corresponding period of 1999. The borrowing availability
under the DIP is $338.5 million and there was no usage of the revolver
component of the DIP as of August 17, 2000. Management believes that the
size of the DIP provides the Company adequate financial flexibility and
liquidity to pay its suppliers and meet customer expectations.

The Company reported an operating loss from continuing operations in the
second quarter of $11.4 million compared to $26.6 million in operating
earnings from continuing operations during the same period last year. The
operating loss from continuing operations includes $72.2 million of fourth
quarter 1999 inventory variances which represent actual product costs
incurred in excess of 1999 standard costs. These additional product costs
were incurred in 1999 as a result of the Company's manufacturing and
operating difficulties and were charged to gross earnings as the inventory,
which included such costs, was sold during the second quarter of 2000. The
total impact of the $149.1 million in higher manufacturing costs incurred
during the last six months of 1999 has been recognized in the six months
ended July 1, 2000 and will not affect future periods.

Actual production costs incurred in the first six months of 2000 were
substantially improved and in line with expected operating performance.

Inventory costs in excess of standards for the first six months of 2000
amounted to $24.4 million and will be absorbed in operating results in the
second half of 2000 as the inventory associated with these costs is sold.

                           RESTRUCTURING UPDATE

Dennis Bookshester, Chief Executive Officer commented, "With the changes
that have been implemented in our operations, we have been able to service
our customers at a higher level. The entire organization is focused on
reducing costs, improving product quality and delivering superior value to
our customers. The Company is now benefiting from improved manufacturing
efficiencies associated with higher volume per style and the consolidation
of production into Company owned facilities. The investment we made at the
beginning of the year in improving controls, reengineering standards,
improving planning and production scheduling and reducing the number of
product offerings has resulted in improvements in key reporting metrics
including order fill rates, plant efficiency and material utilization. The
benefits of the improvements have been reflected in product quality and
timeliness of production. At the same time, we have reduced selling,
general and administrative expenses to further improve our cost
competitiveness.

As part of the Company's restructuring we have sold the Gitano business,
closed the Pro Player operations and discontinued non-core products. With
the elimination of non-core businesses and products, the Company is
evaluating production capacities and will adjust production to meet
expected future sales demand. Any reduction in production capacities
may have a material adverse affect on future results of operations due to
the incurrence of one time costs. I am proud of the contributions made by
all of Fruit of the Loom's employees to improve the Company's performance."


GRANT GEOPHYSCIAL: PricewaterhouseCoopers Resigns from Audit Engagement
-----------------------------------------------------------------------
On August 14, 2000, Grant Geophysical, Inc. was informed by
PricewaterhouseCoopers LLP that the firm had resigned as the company's
independent auditors.  The company's Audit Committee did not participate
in, or approve, the decision to change independent auditors as the change
was due to PricewaterhouseCoopers' resignation.


IMPERIAL HOME: Delaware Court Extends Exclusivity to October 18
---------------------------------------------------------------
The Imperial Home Decor Group Inc. said today that the United States
Bankruptcy Court for the District of Delaware has extended the period in
which the company has the exclusive right to file and advance a plan of
reorganization in its chapter 11 case.

IHDG has been granted another 75 days, until October 18, 2000, in which the
company has the exclusive right to file a plan of reorganization. The
company also has the exclusive right for another 60 days after that date,
until December 18, 2000, to solicit creditors to vote for the plan.

As reported to the court, IHDG has reached several critical milestones in
its case that are consistent with the company's goal of emerging from
chapter 11 by the end of the year. They include completing and submitting
the company's three-year business plan, which will become the foundation
for a plan of reorganization, to creditors, and conducting substantive
discussions with creditors regarding the proposed capital structure of the
company following its emergence from chapter 11.

"We are ready to put chapter 11 behind us," said Douglas R. Kelly,
president and chief executive officer of IHDG. "The process is moving
quickly and smoothly. We are confident that we can develop a consensual
plan of reorganization that will conclude the case by the end of the year."
Kelly also noted that the company has made numerous improvements in
operations. "We have wisely used our time in chapter 11, taking the actions
necessary both to stabilize and to improve our business, focus on our
strengths and enhance our position as the world's largest producer of
residential wallcoverings," he said.

Imperial Home Decor Group is the world's largest designer, manufacturer and
distributor of residential wallcovering products. IHDG also markets
commercial wallcoverings and is a premiere supplier of pool liners through
its subsidiary, Vernon Plastics, Inc. Headquartered in Cleveland, Ohio,
IHDG supplies home centers, national chains, independent dealers, mass
merchants, design showrooms and specialty shops. Product lines include the
Imperial, Katzenbach & Warren, Albert Van Luit, Sterling Prints, Imperial
Fine Interiors, Sunworthy and Colorfields. The company was created in 1998
through the merger of Imperial Wallcoverings and Borden Decorative
Products. In 1999, Imperial Home Decor Group had net sales of $411.7
million.


INTEGRATED HEALTH: Texas Utilities Stipulate to Sec. 366 Adequate Assurance
---------------------------------------------------------------------------
Pursuant to the Court's First Day order governing requests for additional
adequate assurance of future payment for post-petition utility service
consumed by Integrated Health Services, Inc., and its debtor-affiliates,
the Debtors and Brownsville, Texas Public Utilities Board agree that the
Debtors will pay BPUB a post-petition Security Deposit of $11,900, which
the Debtors may substitute with a surety bond for $12,525 issued by either
Amwest Surety Insurance Company or a financial institution or insurance
company of equal financial rating and acceptable to BPUB.  BPUB may
terminate utility services to the Debtors if the Bond expires or is
cancelled without valid substitution, or if the Debtors default on payment
of the Security Deposit or the Bond, or default on payment of BPUB's
invoices for post-petition services in the absence of a good faith dispute
and the default is not cured within seven days after written notice.
(Integrated Health Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


LAROCHE INDUSTRIES: Committee May Avoid Lenders' Liens up to Confirmation
-------------------------------------------------------------------------
In connection with Judge Farnan's approval of a Debtor-in-Possession
Financing Facility post-bankruptcy working capital to LaRoche Industries,
Inc., and LaRoche Fortier, Inc., in the course of their chapter 11
restructurings, LaRoche's Official Committee of Unsecured Creditors
negotiated for the ability to challenge the validity, enforceability,
priority or extent of the Pre-Petition Lenders' liens on the Debtors'
assets. The Debtors, the Committee and the Lenders entered into a
Stipulation extending that window of opportunity to July 27, 2000.

Scott K. Charles, Esq., of Wachtell, Lipton, Rosen & Katz, lead counsel to
the Creditors Committee, has led further due diligence by the Creditors'
Committee into the Lenders' liens and mortgages on the Debtors' assets. On
or about July 25, 2000, Mr. Charles told the Lenders that either they would
consent to an extension of the Stipulation or they'd be sued. Marshall S.
Huebner, Esq., of Davis, Polk & Wardwell, counseled his Lender-clients to
sign the extension agreement. Under the new agreement, the Lenders grant
the Committee, until the time of confirmation of a plan of reorganization
in LaRoche's cases, the continued right to challenge the validity,
enforceability, priority or extent of the Lenders' liens.

A Stipulation memorializing this open-ended extension of time, presented to
Judge Farnan in Delaware for his stamp of approval, suggests that the
Committee contests the valdity of the Lenders' liens on the Debtors' (i)
66.67% interest in LII Europe SARL, (ii) copyrights and (iii) trademarks.
Additionally, the Committee hints that the Lenders received voidable
preference when they took liens on five parcels and of real estate and two
promissory notes within the 90-day period prior to LaRoche's Petition Date.


MARINER POST-ACUTE: Summit's Moves to Sublet Vacant Premises to Glenwood
------------------------------------------------------------------------
Summit Institute for Pulmonary Medical and Rehabilitation, Inc. d/b/a
Summit Hospital of Northeast Louisiana, a debtor-affiliate of Mariner Post-
Acute Network, Inc., found a new tenant, Glenwood Regional Medical Center,
for the vacant half of its premises located at its Facility at 6200
Cypress, West Monroe, Louisiana.

Accordingly, Summit sought and obtained the Court's authority to consummate
the lease under Bankruptcy Code section 363(b) and (m), whereby Glenwood
will lease from Summit available space of approximately 13,172 square feet
and all existing hospital room furnishings, including beds located in the
Premises.

Summit is operating a 40-bed long-term acute care facility at approximately
one half of the premises. The other half has been vacant since Summit  
acquired the lease in 1998 and is currently used by Summit as storage  
space.

Glenwood intends to open and operate a Behavioral Health Unit/Program in
the Premises, which will provide psychiatric services to geriatric  
patients.

Summit expects the lease transaction to bring revenue of approximately $
142,000 per annum. Moreover, it will create an opportunity for Summit to
contract with Glenwood for select ancillary services, such as food services
and housekeeping, at the new Behavioral Health Unit/Program. In addition,
the physical improvements that Glenwood intends to make to the Premises in
order to accommodate its patients, along with Glenwood's occupancy of the
Premises, will significantly enhance the value of the Facility. Summit will
also be able to offer a larger variety of services to its patients.

Summit does not believe that a market exists for other competitive leasing
options, due to the somewhat remote location of the premises, Summit's
inability to fund improvements and the limited growth of the medical
community in Northeast Louisiana. Summit tells the Court that Glenwood is
the only health care provider which has shown an interest in and committed
to leasing the premises, being an operator only two miles from the
premises, and interested in expanding its operation by opening the
Behavioral Health/Unit Program. In the circumstance, Summit believes that
the lease transaction is in the best interest of the estates. (Mariner
Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 609/392-
0900)


MARVEL ENTERPRISES: Shareholders to Gather in New York City on Sept. 28
-----------------------------------------------------------------------
The 2000 annual meeting of stockholders of Marvel Enterprises, Inc., a
Delaware corporation, will be held at 10:00 A.M., local time, on Thursday,
September 28, 2000 at the Loews New York Hotel, 2nd Floor, 569 Lexington
Avenue at East 51st Street, New York, New York, for the following purposes:

    1. To consider and vote upon a proposal to approve and adopt an
amendment to Article VIII, Section 8.1 of the company's restated
certificate of incorporation proposed by the company to eliminate the
sentence which provides a fixed number of the size of the Board of
Directors.

    2. To elect ten directors of the company to serve until the
company's next annual meeting of stockholders and until the election and
qualification of their respective successors.

    3. To ratify the appointment of Ernst & Young LLP as the company's
independent accountants for the fiscal year ending December 31, 2000. The
Board of Directors has fixed the close of business on August 25, 2000 as
the record date for determination of stockholders entitled to notice of,
and to vote at, the annual meeting.


MICROAGE INC.: Arizona Court Extends Exclusive Period to December 13, 2000
--------------------------------------------------------------------------
MicroAge Inc. at today's regular monthly hearing received court approval to
extend the period in which the company has the exclusive right to file or
advance a plan of reorganization in its Chapter 11 case.

Today's order extended the exclusivity period to Dec. 13, 2000, and further
extended the company's exclusive right to solicit acceptances of its plan
to Feb. 13, 2001. In approving the order, the court noted that the
extension had received support from the Official Committee of Unsecured
Creditors.

On Aug. 21, 2000, the committee filed its pleading with the court
supporting the extension of the exclusivity period commending MicroAge for
efforts thus far.

In the pleading, the committee noted that MicroAge had "worked
cooperatively and extensively with the Committee" and that the company has
"demonstrated good faith efforts to reorganize in a way that will maximize
the distribution to unsecured creditors."

"The extension of exclusivity will enable the Company to focus its
resources on operating the business," said Chairman and Chief Executive
Officer Jeffrey D. McKeever.

"In addition, in knowing that the Company remains in control of the
restructuring process, we believe that our clients and vendors will have
added confidence in our stability. We are encouraged by the support we have
received from the Creditors' Committee, our clients and the vendor
community at large.

"We believe the support we have received will increase further due to the
extension of the exclusivity period."

The company filed voluntary Chapter 11 petitions in the U.S. Bankruptcy
Court for the District of Arizona in Phoenix on April 13, 2000.

MicroAge Inc. provides B2B technology solutions and infrastructure
services. The corporation is composed of information technology businesses,
delivering ISO 9001-certified, multi-vendor integration services and
solutions to large organizations and computer resellers.  The company does
business in more than 20 countries and offers over 250,000 products from
more than 1,000 suppliers backed by a suite of technical, financial,
logistics and account management services.  More information about MicroAge
is available at http://www.microage.com


MINNESOTA CENTRAL: Railroad Files for Chapter 11 Protection in Wisconsin
------------------------------------------------------------------------
The Milwaukee Journal Sentinel reports that Minnesota Central Railroad Co.,
a small rail carrier with headquarters in Green Bay, Wisconsin, filed for
Chapter 11 bankruptcy protection.  The railroad's bankruptcy petition,
obtained by a Sentinel reporter, reports $100,000 to $500,000 in assets and
$1 million to $10 million in debts owed to 100 to 199 creditors.

The Minnesota Department of Transportation reports that MCRC is a Class III
carrier, operating operates 94 miles of track in Minnesota. Burlington
Northern Santa Fe, by comparison, operates 1,600 miles of track and little-
known Duluth & Northeastern Railroad operates 8 miles of track.


NATIONAL HEALTH: Court Approves Debtors' 4th Amended Disclosure Statement
-------------------------------------------------------------------------
National Health & Safety Corporation (OTC Bulletin Board: NHLT) received on
Bankruptcy Court approval of its Fourth Amended Disclosure Statement With
Respect to the Fourth Amended Joint Plan of Reorganization.

This Court's Order is the result of the hearing held on August 21, and the
final submission of a few minor changes on the same day.  The Order
authorizes the Company to proceed with printing and distribution of these
documents along with voting instructions to Creditors, Shareholders and
other interested parties.  The Disclosure contains a comprehensive business
plan for POWERx/MedSmart as well as detailed financial projections. It is
extremely important that each interested party review these documents in
detail and submit their ballot no later than October 23, 2000 to the
Balloting Agent.

A Confirmation Hearing Date has been set for 11:00 a.m. on November 6, 2000
at which time the Company will seek Confirmation of the Joint
Reorganization Plan.

                    SUMMARY OF THE PROPOSED REORGANIZATION PLAN

      -- MedSmart (including POWERx) will become a wholly owned subsidiary
of National Health & Safety Corp. through a Restricted 144 stock exchange.

      -- MedSmart has greatly improved and developed POWERx at a cost in
excess of $1.4 million and turned POWERx into a turnkey Internet eCommerce
B2B and B2B2C service provider.

      -- KJE (co-proponent) will contribute $600,000 in cash in exchange for
Restricted 144 Common Stock.

      -- Under this proposed Plan the unsecured Creditors will receive
Series A Equity Units in exchange for their claims.  These units consist of
1 share of Preferred Stock that is convertible into 5 shares of free
trading Common Stock.

      -- Existing Common shareholders will continue to own the same number
of shares they presently own since the proposed Plan does not envision a
reverse split as part of the Plan.

Reacquiring of the POWERx business allows National Health to benefit from
both the royalty income from MedSmart as well as the net revenue from
POWERx, which is typically 12.5 times the royalty stream.

After such Reorganization, the Company's balance sheet should change from
its present deficiency of approximately $4.5 million to a post-
reorganization consolidated positive net book value of approximately $2.4
million. This represents a net positive change of about $6.9 million.

The Management of the Company believes that this Proposed Plan represents
an exceptional and viable business opportunity for all interested parties
and an exciting future for National Health & Safety Corp.


NATIONAL HEALTHCARE: Exiting Florida Markets as Liability Insurance Expires
---------------------------------------------------------------------------
The Tampa Bay Business Journal reports that Tennessee-based National
HealthCare Corp. will leave the Florida operations due to the lack of
liability insurance.  The company may cancel management contracts or send
them off to new companies before Sept. 30, which is the scheduled date the
company's liability insurance ends.

National HealthCare manages nursing homes and assisted living facilities,
is working on renewing its current liability insurance, which expires on
Sept. 30 for facilities in several states. But obtaining liability
insurance for nursing homes in Florida posed a special challenge, according
to the company.


PC SERVICE: Files for Chapter 11 Protection in Dallas, Texas
------------------------------------------------------------
PC Service Source, Inc. (Nasdaq: PCSS) announced today that the company has
filed a voluntary petition for protection under Chapter 11 of the
Bankruptcy Code for the company and all of its subsidiaries. The petition
was filed in the federal bankruptcy court for the Northern District of
Texas, Dallas Division.

Due to the significant losses from the company's discontinued parts sales
division, the company filed for Chapter 11 protection to seek a financial
reorganization of its rapid turnaround desktop and notebook repair
business. The company and it subsidiaries will continue to operate the
company's repair business under the protection of the bankruptcy court
while seeking to finalize a plan of reorganization to implement its
anticipated restructuring.

Morti Tenenhaus, the company's president and chief executive officer
commented, "We believe the most effective way to serve our existing
customer base and maximize the future growth of our rapid turnaround
desktop and notebook repair business is to operate in the ordinary course
of business under Chapter 11. We continue to believe the combination of our
customer base, ability to timely perform desktop, notebook and component
repair services, and our dedicated employees give us a unique market
position. As a result, we will also continue to work toward securing a
strategic or financial partner for the repair business to enhance its
growth potential."

PC Service Source also announced today that it expects to be delisted from
Nasdaq later this week because the company is currently not in compliance
with Nasdaq's continued listing requirements. The company anticipates
filing its 10-Q for the three month period ended June 30, 2000 next week.


PRISON REALTY: Pacific Life Announces Vote On Prison Company's Proposals
------------------------------------------------------------------------
Pacific Life Friday announced its intent to vote for the charter
amendments, the merger and related transactions as detailed in Prison
Realty's proxy statement dated July 31, 2000.

Prison Realty has given notice to stockholders to consider and vote upon
proposals to adopt certain amendments to its charter to permit a
restructuring of Prison Realty including not being taxed as a REIT
beginning in year 2000 and to approve the merger of Corrections Corporation
of America and Prison Realty.

Though the proposals are less than perfect, Pacific Life believes that the
merger is a necessary first step to begin the process of stabilizing Prison
Realty.

Founded in 1868, Pacific Life provides life and health insurance products,
individual annuities and group employee benefits and offers to individuals,
businesses and pension plans a variety of investment products and services.
Over the past five years, the company has grown from the 25th to the 16th
largest life insurance company in the nation(1).

The Pacific Life family of companies manages more than $315 billion in
assets, making it one of the largest financial institutions in America, and
currently counts 67 of the 100 largest U.S. companies as clients(2).
Additional information about Pacific Life can be obtained at its Web site,
www.PacificLife.com.


PRISON REALTY: Results for Second Quarter Ended June 30, 2000
-------------------------------------------------------------
Prison Realty Trust, Inc. (NYSE: PZN) announced results for the second
quarter ended June 30, 2000. Prison Realty reported revenues of $17.5
million and a net loss available to common shareholders of $74.3 million,
or ($0.63) per common share for the quarter.

Prison Realty has proposed a comprehensive restructuring, including the
merger of Prison Realty with CCA and its operation as a taxable subchapter
C corporation rather than as a REIT beginning with its 2000 taxable year.

The company's revenues were reduced for the second quarter of 2000 to
reflect a reserve of $72.6 million to offset lease revenues from Prison
Realty's primary tenant, Corrections Corporation of America (CCA), due to
the uncertainty regarding the collectibility of the payments.

The results for the second quarter of 2000 include $4.4 million in write-
offs of amounts under lease agreements related to tenant incentive fees due
CCA on two facilities opened in 2000, $28.1 million reserved for merger
transaction fees related to the termination of previously announced
transactions, and $7.5 million in foreign currency transaction losses as a
result of the strong U.S. dollar against the UK pound arising from
receivables related to the Company's HMP Forrest Bank facility in Salford,
England.

CCA, Prison Realty's primary tenant, had second quarter revenues of $142.4
million and a net loss of $76.8 million. The loss includes gross lease
expenses before amortization of deferred credits of $81.6 million related
to leases with Prison Realty. In addition to CCA, the two service companies
had combined revenues of $72.9 million and combined net income before taxes
of $2.0 million for the quarter. Prison Realty's economic interest in the
two service companies is reported as equity in earnings of subsidiaries.

Systemwide, the three companies doing business as CCA had 64,260 prison and
jail beds in operation at the end of the second quarter of 2000, versus
50,513 beds at June 30, 1999. Occupancy for the quarter was 84.8% this year
compared with 92.7% last year, and compensated mandays for the quarter rose
1.9% to 4.6 million from 4.1 million in the second quarter of 1999.

                              About the Company

Prison Realty's business is the development and ownership of correctional
and detention facilities. Headquartered in Nashville, Tennessee, the
Company provides financing, design, construction and renovation of new and
existing jails and prisons that it leases to both private and governmental
managers. Prison Realty currently owns or is in the process of developing
50 correctional and detention facilities in 17 states, the District of
Columbia, and the United Kingdom.

The companies operating under the "Corrections Corporation of America" name
provide detention and corrections services to governmental agencies. The
companies are the industry leader in private sector corrections with
approximately 70,000 beds in 77 facilities under contract or under
development in the United States, Puerto Rico, Australia, and the United
Kingdom. The companies' full range of services includes design,
construction, renovation and management of new or existing jails and
prisons, as well as long distance inmate transportation services.

Prison Realty has previously announced a proposed restructuring, pursuant
to which, among other things, Prison Realty will merge with Corrections
Corporation of America, its primary tenant, and elect to be taxed as a
subchapter C corporation commencing with its 2000 taxable year. Prison
Realty is seeking stockholder approval of the restructuring at a Special
Meeting scheduled for September 12, 2000. Pending stockholder approval, the
companies intend to complete the restructuring on or before September 15,
2000. Prison Realty has filed definitive proxy materials with respect to
the restructuring with the U.S. Securities and Exchange Commission and has
commenced delivery of such materials to its stockholders. Stockholders are
urged to read these materials carefully as they include important
information with respect to the companies and the proposed restructuring.


RANDALL'S ISLAND: Chase Urges Court to Limit or Deny Exclusivity Extension
--------------------------------------------------------------------------
"[W]hile the Debtors allege that they have been 'working cooperatively with
Chase' in this chapter 11 case, nothing could be further from the truth,"
Richard S. Toder, Esq., of Morgan, Lewis & Bockius LLP says in an objection
filed by The Chase Manhattan Bank, as agent for the pre-petition lenders to
Randall's Island Family Golf Centers, Inc., et al., in Randall's chapter 11
cases.  "Chase has made many requests for financial information from the
Debtors. These requests, until recently, were uniformly ignored and, even
now, are only tardily and partially addressed," Chase charges. "The lack of
information provided has been a serious issue."

Chase directs Chief Judge Bernstein's attention to Randall's latest
operating results: a $50.6 million loss for the 3 months ended June 30,
2000, and a $72 million loss for the 6-month period ending June 30, 2000.
"[While the] Debtors state that they have made progress in formulating a
plan of reorganization, the Debtors have not even formulated a
comprehensive business plan, let alone a plan of reorganization," Chase
observes.

Chase urges the U.S. Bankruptcy Court for the Southern District of New York
to deny Randall's bid for a further extension of its exclusive periods
under 11 U.S.C. Sec. 1121. Alternatively, Chase asks Judge Bernstein to
limit any extension to 45 days.

Mr. Toder encourages Judge Bernstein to consider that "Section 1121 does
not create a deadline for filing a plan. The Debtors may develop and file
their plan or plans as they feel appropriate. The risk that while the
debtors are developing their plan, another party in interest may file a
plan is a risk that Congress intended, so as to preserve the balance
between a debtor's needs and the legitimate interest of creditors," quoting
from In re Southwest Oil Co. of Jourdantown, Inc., 84 B.R. 448 (Bankr. W.D.
Tex. 1987).


RELIANT BUILDING: Committee Taps Haynes and Boone, LLP, as Counsel
------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Reliant Building Products,
Inc., et al. seeks court authority to employ and retain the law firm of
Haynes and Boone, LLP as its legal counsel.  The professional services that
the firm will render to the Committee include, but shall not be limited to:

    a) Providing legal advice with respect to the Committee's powers and
        duties in these cases;

    b) The preparation on behalf of the Committee of all necessary
        applications, answers, orders, reports and other legal papers;

    c) The representation of the Committee in any and all matters involving
        contests with the debtors, alleged secured creditors and other third
        parties;

    d) The negotiation of a plan of reorganization.

The attorneys and paralegal that may be designated to represent the
Committee and their current, standard hourly rates include:

           Robin E. Phelan           (Partner)      $425 per hour
           Mark X. Mullin            (Partner)      $320 per hour
           Eric Terry                (Associate)    $190 per hour
           Linda Breedlove           (Paralegal)    $110 per hour


SABRATEK CORPORATION: Stipulation Grants Co-Exclusivity to November 15
----------------------------------------------------------------------
"[I]n the spirit of continuing cooperation towards the development of a
jointly sponsored plan or a debtor sponsored plan supported by the
Committee, [Sabratek Corporation has] agreed to share with the Committee
the exclusive right to file a plan," James H.M. Sprayregen, Esq., and
Matthew N. Kleiman, Esq., of Kirkland & Ellis, tell the U.S. Bankruptcy
Court for the District of Delaware.

"[I]n reliance upon that agreement," Martin J. Bienenstock, Esq., and
Johnson C. Ng, Esq., of Weil, Gotshal & Manges LLP, tell Judge Walrath,
"the Committee has refrained from filing a motion to terminate exclusivity
. . . and an objection to [Sabratek's] Exclusivity Extension Motion."

Arm-in-arm, counsel for Sabratek and its Official Committee of Unsecured
Creditors present Judge Walrath with a Stipulation agreeing that, through
and including November 15, 2001, both the Debtors and the Committee shall
have the exclusive right to file a chapter 11 plan and, through January 15,
2001, both the Debtors and the Committee shall have the exclusive right to
solicit acceptances of that plan, all without prejudice to the right of
either or both parties to seek a further extension of these periods.

"The Debtors and the Committee shall use their best efforts to cooperate in
developing a chapter 11 plan . . . and obtaining confirmation [of that
plan]; provided, however, that if [they] do not reach a consensus . . .
either party or both may file a chapter 11 plan . . . not supported by the
other party at any time," the attorneys say. The lawyers make it clear to
Judge Walrath that if she does not approve this Stipulation, the Court can
anticipate staunch opposition to the Debtors' request to extend its
exclusive periods at the hearing scheduled on September 8, 2000.


SYSTEM SOFTWARE: Harmonizing U.S. & Argentine Bankruptcy Laws is Impossible
---------------------------------------------------------------------------
Systems Software Associates, Inc., asks the U.S. Bankruptcy Court for the
District of Delaware for authority to effect an orderly liquidation of its
Argentine Assets under Argentine Law. In short, SSA asks for permission to
abandon its Argentine Assets. SSA argues that it has no practical way to
bring its Argentine Assets to the U.S. for distribution under U.S.
bankruptcy law and it has no practical way to subject its Argentine
Creditors to the jurisdiction of the U.S. Bankruptcy Court.

SSA tells Judge Roderick R. McKelvie that it maintains a branch office in
Argentina. Although applicable U.S. law holds that the Argentine Assets are
property of SSA and SSA has liability for all Argentine Debts, applicable
law in Argentina deems branch operations of foreign corporations to have a
separate corporate existence. That means, lawyers at the Argentine law firm
of Abeledo Gottheil Abogados tell SSA, all Argentine Assets must be used to
satisfy the branch's creditors before those assets can be used for the
benefit of U.S. creditors.

The Argentine Assets consist of (a) $200,000 in cash; (b) $50,000 of
furniture and fixtures; and (c) $70,000 to $160,000 of receivables. The
Argentine operation needs to satisfy (x) $400,000 of priority employee
termination claims and (y) $250,000 of administrative claims.

SSA's best idea at this juncture, Janet E. Henderson, Esq., Shalom L. Kohn,
Esq., and Kenneth P. Kansa, Esq., of Sidley & Austin in Chicago, and Laura
Davis Jones, Esq., and Rachel S. Lowy, Esq., of Pachulski, Stang, Ziehl,
Young & Jones, P.C., in Wilmington, say, is to liquidate the Argentine
Assets and let Argentine Creditors line-up in an Argentine insolvency
proceeding.  SSA's U.S. legal team reaches the conclusion that if the
Argentine Creditors think they can make a claim against the U.S. company,
so be it.  It will be impossible, SSA's convinced, to harmonize Argentine
and U.S. bankruptcy, insolvency and commercial laws.  The priority schemes
are too varied and Argentine law is fraught with numerous civil and
criminal penalties.


TOKHEIM CORPORATION: Case Summary
---------------------------------
Debtor:  Tokheim RPS, LLC
          1209 Orange Street
          Wilmington, Delaware 19801

Affiliates: Tokheim Corporation
             10501 Corporate Drive
             Fort Wayne, Indiana 46845

             Tokheim Investment Corporation
             Management Solutions, Inc.
             Gasboy International, Inc.
             Tokheim Services, LLC
             Sunbelt Hose and Petroleum Equipment, Inc.
  
Type of Business: World's largest producer of petroleum dispensing devices,
                   manufacturing and servicing electronic and mechanical
                   petroleum dispensing systems.

Chapter 11 Petition Date:  August 28, 2000

Court: District of Delaware

Bankruptcy Case Nos:  00-03454 through 00-03460

Judge:  Peter J. Walsh

Debtor's Counsel:  Anthony W. Clark, Esq.
                    Skadden, Arps, Slate, Meagher & Flom, LLP
                    One Rodney Square
                    P.O. Box 636
                    Wilmington, DE 19899-0636
                    (302) 651-3000

                    Skadden, Arps, Slate, Meagher & Flom, LLP
                    333 West Wacker Drive
                    Chicago, IL 60606

Post-Petition Lenders:  AmSouth Bank, as Documentation Agent
                         ABN Amro Bank, N.V., as Administrative Agent

Total Assets:  $ 691,000,000
Total Debts :  $ 700,000,000


UNITED KENO: Ontario Court Extends CCAA Protection to September 27
------------------------------------------------------------------
United Keno Hill Mines Limited announced that the Superior Court of Ontario
extended the protection from its creditors granted to United Keno pursuant
to an Order made in Toronto under the Companies' Creditors' Arrangement Act
on February 18, 2000. Under the Order made on Friday, August 25, 2000
protection from proceedings against United Keno has been extended to
September 27, 2000.  Under last week's Order, United Keno has been given
until September 19, 2000 to call meetings of its creditors to implement the
Plan of Arrangement which it filed with the Court on July 7, 2000.


U.S. CAN: Moody's Gives Lukewarm Reception to $785MM New Debt & Securities
--------------------------------------------------------------------------
Moody's Investors Service assigned a (P) B3 rating to United States Can
Company's proposed $150 million senior subordinated notes. The senior
unsecured issuer rating is (P) B2. Moody's assigned a (P) B1 rating to each
tranche of US Can's new $400 million secured credit facility consisting of
a $140 million six year revolver; $80 million tranche A term loan, six
years; and $180 million tranche B term loan, eight years. Moody's placed
the existing 10 1/8% of $235 million senior subordinated notes, due 2006,
at U.S. Can Corporation (non operating parent holding company) on review
for possible downgrade from B2 to (P) Caa1 for non-tendered amounts.
The lower rating would reflect their structural and effective subordination
to debt at the operating company given that all covenants and guarantees
will be released as part of the tender consent. Upon completion of final
documentation for the proposed transactions, the provisional ratings will
be in effect and the senior implied rating will be lowered to B1 from Ba3.
The ratings outlook is stable.

The ratings reflect US Can's increased financial leverage resulting from
the recapitalization, reduced coverage of interest expense, and low
retained cash as a percentage of total debt. Current management (largely
new since 1998) has had success in working through leveraged situations,
and US Can has operated with higher debt levels in the past. Nonetheless,
this is the first time that current management will manage US Can with
significantly higher pro-forma leverage. Margins are susceptible to
increased raw material costs (notably steel, and to a lesser extent plastic
resin costs which are associated with an estimated 5% of the company's
business), the heightened price sensitivity of customers, and the
competitive pricing of industry participants. The combination of these
factors could result in flat to slightly improving operating margins in the
near term. The ratings also reflect certain operating inefficiencies that
are temporarily pressuring margins, notably technical and operating
difficulties in the ramp up of new equipment and skilled labor at certain
plants.

The ratings incorporate US Can's leading market positions in the United
States and Europe, solid returns and solid customer relationships with
significant consumer products companies, most of which are under long term
contracts. Product and geographic diversity serve to temper the effects of
seasonality on working capital, however inventory build up remains
prominent throughout the first half of the year as evidenced by pro-forma
inventory days at LTM 7/2/00 of approximately 60. Meaningful growth
opportunities are most likely offshore, namely in Europe and Latin America
where the company has already improved its market position via acquisition
(May Verpackungen acquired in December 1999) and joint ventures,
respectively. Pro-forma for the May acquisition, approximately 32% of sales
are generated in Europe.

The (P) B1 rating assigned to the secured credit facility reflects the
absence of tangible asset coverage and the fact that, in our opinion, term
amortization is aggressive relative to retained cash. Outstandings are
secured by a first priority lien on all assets and capital stock of the
borrower, United States Can Company, and subsidiaries. Certain designated
foreign subsidiaries may be borrowers under the $75 million multi-currency
sublimit (available in certain currencies including British Pounds, German
Marks, French Francs and Euros). Guarantees from U.S. Can Corporation and
all its domestic subsidiaries support the facility. In addition, the
subsidiaries of the foreign subsidiary borrowers will also guarantee the
loans extended to the foreign subsidiary borrowers. Upon completion of
final documentation, financial covenants will be in place addressing
maximum leverage, minimum interest coverage, minimum fixed charge coverage
and minimum EBITDA.

The (P) B3 rating assigned to the proposed senior subordinated notes
reflects their contractual subordination to senior debt (approximately $337
million at the close of the transactions). Unconditional joint and several
guarantees from U.S. Can Corporation and from USC May Verpackungen Holding,
Inc., the company's only domestic restricted subsidiary, support the notes.
In addition to the proceeds from the proposed transactions, new equity
totaling approximately $160 million will fund the recapitalization which
has an estimated transaction value of $649 million representing 6.1x pro-
forma LTM 7/2/00 EBITDA. Equity will consist of $133 million from Berkshire
Partners LLC in the form of $91 million 10% cash or PIK preferred stock
issued by U.S. Can Corporation with the remaining Berkshire contribution in
common stock. Existing shareholders will rollover equity of approximately
$22 million in the form of preferred and common stock and management will
invest approximately $5 million in common stock. Moody's views the equity
sponsorship and management's investment positively.

Pro-forma for the recapitalization at LTM 7/2/00, financial leverage is
aggressive with total debt of $487 million to EBITA of $74 million at 6.6x
(debt/EBITDA of $106 million at 4.6x). Adjusting for operating leases,
adjusted pro-forma debt to EBITDAR increases to approximately 4.9x. Pro-
forma retained cash (defined as EBITDA less interest expense, taxes, and
capital expenditures) is low at approximately 2% of total debt, thereby
supporting our concern that term loan amortization may be aggressive
initially. Moody's expects capital expenditures to exceed depreciation
throughout the intermediate term as the company will likely reinvest to
fuel its organic growth initiatives, to improve operating efficiencies and
to facilitate its growth through acquisitions (tuck-in type acquisitions
are probable). As with all packaging companies, there is significant lead
time to ramp up new equipment and trained staff which creates a lag between
initial capital investment and EBIT generation - a factor that is
significant given expected debt levels. The fact that US Can currently
benefits from its historically heavy capital spending serves to mitigate
the lag being experienced from the company's on-going capital spending.
Pro-forma coverage of interest expense is modest as LTM 7/2/00 EBITA covers
interest expense 1.4x and EBITDA less capital expenditures coverage
tightens to 1.3x (EBITDA coverage is 2.0x). Moody's anticipates some
improvement in coverage ratios as the operating profits should improve as
the May acquisition accretes and costs continue to be taken out through
initiatives currently in place. However, given the company's acquisitive
nature, meaningful debt reduction could be precluded by further add-ons.
Working capital requirements will likely be met through internally
generated cash. However, liquidity benefits from approximately $90 million
of availability under the revolver at the close of the transactions.

Headquartered in Oak Brook, Illinois, U.S. Can Corporation, through its
wholly owned subsidiary United States Can Company, is a leading
manufacturer of steel containers for personal care, household, automotive,
paint, industrial and specialty products in the United States and Europe,
as well as food cans in Europe and plastic containers in the U.S.


VLASIC FOODS: Senior Lenders Agree to Waive Covenants through Feb. 28, 2001
---------------------------------------------------------------------------
Vlasic Foods International and its senior credit facility bank syndicate
have reached an agreement in principle to extend its existing waiver of
certain covenants of that facility through February 28, 2001, subject to
mutually acceptable documentation.  The credit facility is lead-arranged by
J.P. Morgan Securities Co., and the syndication agent is Chase Securities,
Inc.  Vlasic confirms it is current on all outstanding debt instruments.


WAXMAN INDUSTRIES: After Barnett Sale is Completed, Look for Fall Prepack
-------------------------------------------------------------------------
Waxman Industries, Inc. (OTC Bulletin Board: WAXX), a leading supplier of
specialty plumbing and other products to the U.S. repair and remodeling
market, reported its revenue and earnings for the fourth quarter ended June
30, 2000. The Company accounts for its 44.2% ownership of Barnett Inc.
(Nasdaq: BNTT - news) under the equity method of accounting.

                               Operating Results

Net sales for the Company's wholly-owned operations for the fourth quarter
ended June 30, 2000 amounted to $19.0 million as compared to $19.5 million
in the prior year's comparable period. The prior year fourth quarter
included $1.0 million in net sales for Western American Manufacturing Inc.,
which was sold effective March 31, 2000. Excluding WAMI's results, net
sales increased by $0.5 million for the fiscal 2000 fourth quarter in
comparison to the same period last year.

The pretax loss for the fiscal 2000 fourth quarter amounted to $16.0
million, as compared to a pretax loss of $5.1 million in the same period
last year. Included in the fourth quarter losses for fiscal 2000 and 1999
are equity earnings from Barnett of $1.2 million and $1.7 million,
respectively. The current quarter and fiscal year pretax loss was affected
by certain restructuring, impairment and procurement charges, including:

  * a restructuring charges of $0.6 million related to (i) the closure of
    Consumer Products' Grand Prairie, Texas distribution center, which was
    consolidated into its distribution center near Columbus, Ohio, and (ii)
    the closure of a packaging operation in Tijuana, Mexico, the functions
    of which were transferred to the Company's operations in Taiwan and
    China.

  * the write-off of $1.7 million of packaging material and other inventory
    associated with these closings, which are recorded in cost of sales.

  * an asset impairment charge of $6.7 million related to the write-off of
    goodwill.

  * the loss of $2.0 million on the sale of significantly all of the assets
    of WAMI.

  * the Company will source its faucets from third party suppliers, allowing
    it to close its faucet component manufacturing facility in China.  This          
    action resulted in a restructuring charge of $1.2 million and $0.9
    million in charges that reduced operating income for accounts receivable
    and inventory adjustments.

The Company believes that the sale, consolidation and closure of these
facilities are important to its restructuring effort and will benefit the
Company by preserving cash, streamlining its cost structure and allowing it
to focus on its core business. To that end, the Company was also pleased to
announce the comprehensive debt restructuring agreement reached in July
2000, the pending sale of the Company's entire interest in Barnett and the
resulting reduction of approximately $139 million in debt.

The net loss for the three months ended June 30, 2000 totaled $15.5
million, or $1.28 per basic and diluted share. For the fiscal 1999 fourth
quarter, the net loss amounted to $5.0 million, or $0.42 per basic and
diluted share.

For the fiscal year ended June 30, 2000, net sales for the Company's
wholly-owned operations amounted to $81.4 million, as compared to $99.1
million for fiscal 1999. Excluding the results of U.S. Lock, which was sold
effective January 1, 1999, WAMI, which was sold effective March 31, 2000
and the faucet manufacturing operation closed in June 2000, comparable
net sales for the continuing businesses amounted to $77.8 million and $81.9
million in fiscal 2000 and fiscal 1999, respectively.  The Company reported
a pre-tax loss of $28.9 million for fiscal 2000, as compared to a pre-tax
loss of $6.4 million for fiscal 1999. Included in the pre-tax loss for
fiscal 2000 were the charges incurred in the fourth quarter as described
above, in addition to the $1.3 million charge for the consolidation of
Consumer Products' packaged plumbing products under the Plumbcraftr brand
name and a business procurement charge of $0.65 million. Included in the
pre- tax loss for fiscal 1999 is the net gain of $10.3 million on the sale
of U.S. Lock, $6.7 million in equity earnings from Barnett and $4.5 million
in restructuring and procurement charges, incurred in connection with the
relocation of Consumer Product's warehouse to Groveport, Ohio, and business
procurement charges.

The net loss for fiscal 2000 amounted to $28.8 million, or $2.39 per basic
and diluted share, as compared to a net loss for fiscal 1999 of $7.5
million, or $0.62 per basic and diluted share.

                     Comprehensive Financial Restructuring

During fiscal 2000, the Company initiated discussions with a committee
representing a substantial majority of our 12-3/4% Senior Secured Deferred
Coupon Notes due 2004 and 11-1/8% Senior Notes due 2001. Those discussions
resulted in an agreement, which provides for a process to eliminate nearly
$139 million in debt obligations, including both of those obligations
and nearly $10 million of our working capital bank facility. On July 10,
2000, the Company announced that it reached agreements with the bondholder
committee (the ``Committee''), among others, for the sale of it ownership
in Barnett Inc. common stock and the financial restructuring of Waxman
Industries. These agreements include the Company's agreement to vote in
favor of the acquisition of Barnett Inc. by Wilmar Industries Inc. for
$13.15 per share in cash, which is expected to be completed in the fall of
2000.

Following the anticipated sale of the Company's interest in Barnett, the
Company and the Committee will file a jointly sponsored, prepackaged plan
of reorganization with the United States Bankruptcy Court to effectuate the
terms of the financial restructuring plan. Under the plan of
reorganization, the holders of the Deferred Coupon Notes will be the only
impaired class of creditors; none of the Company's operating subsidiaries
or operating divisions will be included in the filing and they will
continue to pay their trade creditors, employees and other liabilities
under normal conditions. The Company expects to complete this plan by late-
2000.

Waxman Industries, Inc. is a leading supplier of specialty plumbing and
other products to the repair and remodeling market in the United States.
Through its wholly-owned subsidiaries, Consumer Products, Medal of
Pennsylvania, Inc., WAMI Sales and its Orient Group, TWI and CWI, the
Company distributes its products to a wide variety of large national and
regional retailers, other independent retailers and wholesalers in the
United States.


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For copies of court documents filed in the District of Delaware, please
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at Nationwide Research & Consulting at 207/791-2852.

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Copyright 2000. All rights reserved. ISSN 1520-9474.

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