/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/000925.MBX T R O U B L E D C O M P A N Y R E P O R T E R Monday, September 25, 2000, Vol. 4, No. 187 Headlines AMF BOWLING: Doesn't Make Sept. 15 Interest Payment on Sr. Sub. Notes BLOUNTSTOWN HEALTH: Case Summary and 20 Largest Unsecured Creditors BMJ MEDICAL: Obtains Open-Ended Extension of Time to Make Lease Decisions CARMIKE CINEMAS: U.S. Trustee to Convene Meeting of Creditors on October 6 CRIIMI MAE: Court Schedules Confirmation Hearing Scheduled for November 15 CYGNION CORPORATION: Creditors Will Meet in Santa Ana on October 12 DRKOOP.COM: Disagreements Push PricewaterhouseCoopers to Resign ELDER-BEERMAN: Shareholders Approve 11 Resolutions at Annual Meeting EQUALNET COMMUNICATIONS: Ernst & Young Resigns as Company's Auditors FEDERAL-MOGUL: Moody's Places Debt Ratings Under Review for Downgrade FIRSTPLUS FINANCIAL: Announces Ongoing Negotiations To Acquire Nineteenth FRUIT OF THE LOOM: Selling Russell National Trademark To Russell Corp. GENESIS/MULTICARE: Provides Adequate Protection on Dover Mortgage Bonds GLOBAL OCEAN: Files Second Amended Plan and Disclosure Statement GLOBE MANUFACTURING: Forbearance Agreement With Banks Extended Until Dec 31 GST TELECOM: Court Approves Time Warner's $690MM Purchase of GST Assets HARNISCHFEGER: Horsburgh & Scott's Motion To Expunge 2 Scheduled Claims HEILIG-MEYERS: Meeting of Creditors Re-Scheduled to November 13 HVIDE MARINE: Transportation Firm Crosses Its Fingers For Upcoming Year ICG HOLDINGS: Moody's Lowers Debt Rating To Caa1 & Reviewing for Downgrade INNOVATIVE CLINICAL: Bond Restructuring Completed & Releases 2Q Results INTEGRATED HEALTH: HSBC Bank USA to Serve As Successor Indenture Trustee KITTY HAWK: Committee Wants to Consider Alternative Plan of Reorganization LAFAYETTE HEALTH: Case Summary and 20 Largest Unsecured Creditors MERCURY AIR: Acquires Raytheon Aircraft's Fixed Base Operation in Alabama NATIONAL RECORD: Prerecorded Music Retailer Holds Annual Meeting OAKWOOD HOMES: Announces Resignation of CEO and Director W.G. Edwards PENN TRAFFIC: Announces Linda Jones' Promotion To Groceries Vice President PG&E GENERATING: S&P Changes Rating Outlook From Stable to Negative PLAINS ALL: Reaches Agreement to Settle Class Action Lawsuits PREMIER LASER: Obtains Court Authority to Reject CFO's Employment Agreement PRIMARY HEALTH: Seeks Extension of Time To Assume/Reject Leases to Jan. 9 PRIME SUCCESSION: Court Extends 365(d)(4) Deadline through October 9 PRO AIR: Airline's Chapter 11 Filing Lists $30MM Of Unsecured Claims PRO AIR: Case Summary and 19 Largest Unsecured Creditors PRO AIR: Requests NTSB To Review FAA's Allegations to Continue Operations PXRE REINSURANCE: S&P Lowers Courterparty and Financial Strength Ratings RAYTHEON COMPANY: Sir Robert Hayman-Joyce As New Chairman of RSL Subsidiary SAFETY COMPONENTS: Sells Valentec to Management Group for $4.15 Million SFC NEW : Case Summary and 3 Largest Unsecured Creditors SINGER COMPANY: Creditors To Receive 100% of the Equity of Singer N.V. SIZZLER INTERNATIONAL: Completes Acquisition of Oscar's Restaurants SUN HEALTHCARE: Sixth Omnibus Motion To Reject Certain Equipment Leases TOKHEIM CORPORATION: Bankruptcy Court Approves $28MM Interim DIP Borrowing TREND-LINES: Hilco Wins Right to Close 78 Golf Day Stores US WOOD: Asks Judge Robinson to Extend 365(d)(4) Deadline to January 27 VIDEO UPDATE: Delaware Court Approves Video Retailer's "First Day" Motions * Bond pricing for the week of September 25, 2000 ********* AMF BOWLING: Doesn't Make Sept. 15 Interest Payment on Sr. Sub. Notes --------------------------------------------------------------------- On September 15, 2000, AMF Bowling Worldwide, Inc., a wholly owned subsidiary of AMF Bowling Inc., indicated that it did not make the September 15, 2000 interest payment of approximately $13.6 million due on its senior subordinated notes. Bowling Worldwide and AMF Bowling Inc. previously announced that Bowling Worldwide would not make the payment in the August 14, 2000 filings of their quarterly reports for the quarter ended June 30, 2000 with the Securities and Exchange Commission. BLOUNTSTOWN HEALTH: Case Summary and 20 Largest Unsecured Creditors ------------------------------------------------------------------- Debtor: Blountstown Health Investors, LLC 224 Chipola Road Blountstown, FL 32424 Affiliates: Emporia Health Investors, LLC South Boston Health Chapter 11 Petition Date: September 13, 2000 Court: Western District of North Carolina Bankruptcy Case No.: 00-51128 Debtor's Counsel: Albert F. Durham, Esq. 227 W. Trade St., Suite 1200 Charlotte, NC 28202 (704) 334-0891 Total Assets: $ 1 Million Above Total Debts : $ 1 Million Above 20 Largest Unsecured Creditors Colonial Bank P.O. Box 1887 Birmingham, AL 35201 (256) 237-6621 $ 4,232,394 Centennial Healthcare, Inc. 400 Perimeter Center Terrace Suite 650 Atlanta, GA 30346 (770) 698-9040 $ 714,931 Paragon Rehabilitation Joe White 3100 W. End Ave. Suite 470 Nashville, TN 37203 (615) 385-1060 $ 581,372 C&L Bank of Bountstown Trade Debt $ 158,000 Healthsouth Rehab $ 155,869 Calhoun Liberty Hospital $ 57,529 Pharmerica $ 44,387 Centennial PTS/CPR+ $ 18,722 Advanced Nursing Ser $ 18,200 NCS Healthcare Inc. $ 16,428 Medline Industries Inc. $ 8,960 Mutual Wholesale Co. $ 6,521 Option Care Of NW Florida $ 5,119 KCI Therapeutic Service $ 4,712 Red Line Medical Supply $ 4,467 Commercial Supply $ 2,752 Farooqi, Misbah Dr. Ren $ 2,300 Gulf State Chemical $ 2,104 Direct Supply, Inc. $ 1,657 Dairy Fresh Corporation $ 1,536 BMJ MEDICAL: Obtains Open-Ended Extension of Time to Make Lease Decisions ------------------------------------------------------------------------- By order entered on September 12, 2000, the US Bankruptcy Court, District of Delaware entered an order granting the motion of the debtors, BMJ Medical Management, Inc., et al. extending the period within which the debtors may assume or reject the leases to and through the Effective Date of the Plan. CARMIKE CINEMAS: U.S. Trustee to Convene Meeting of Creditors on October 6 -------------------------------------------------------------------------- On August 8, 2000, the debtors, Carmike Cinemas, Inc., et al. filed voluntary petitions for relief under Chapter 11. A meeting of creditors is set for October 6, 2000 at 10:00 AM, Wilmington, DE. Counsel for the debtors are Mark D. Collins of Richard, Layton & Finger, PA, Wilmington and Harvey R. Miller, Weil, Gotshal & Manges LLP, New York. CRIIMI MAE: Court Schedules Confirmation Hearing Scheduled for November 15 -------------------------------------------------------------------------- By order entered on August 24, 2000, the US Bankruptcy Court, District of Maryland, approved the Disclosure Statement of Criimi Mae Inc., et al. The Confirmation Hearing will be held on November 15, 2000 at 10:00 AM, Greenbelt, Md. Under the plan, the company will not pay cash dividends to common and most preferred shareholders while the debt contemplated by the plan is outstanding. However, the cash that otherwise would have been used to pay dividends is intended to be used to reduce debt. The plan also contemplates that preferred shareholders who do not receive cash dividends will receive dividends in common stock. The company has advised the Equity Committee that, due to substantial net operating losses and the payment of convertible preferred stock dividends for the 1999 tax year, the company expects to be able to retain its status as a Real Estate Investment Trust, even though it will not be paying cash dividends to common shareholders in the immediate future. CYGNION CORPORATION: Creditors Will Meet in Santa Ana on October 12 ------------------------------------------------------------------- A chapter 11 bankruptcy case concerning the debtor Cygnion Corporation dba Cybergenie Professional Cordless was filed on August 15,2000. Attorney for the debtor is Evan D. Smiley, Esq., at Albert, Weisland & Golden in Costa Mesa, CA. The Meeting of Creditors is scheduled for October 12, 2000 at 2:00 PM, Ronald Reagan Federal Bldg., Santa Ana, CA. DRKOOP.COM: Disagreements Push PricewaterhouseCoopers to Resign --------------------------------------------------------------- NewsTraders.com reports that PricewaterhouseCoopers, LLP resigned as independent accountants for online health operator Drkoop.com (KOOP), effective September 8, 2000. It was known that Drkoop and PwC had several disagreements, like in June, Drkoop disagreed with PwC's assertion of a material weakness, from an 8-K filing. The independent accountants agreed to continue to serve Drkoop through the completion of the filing of the company's third-quarter financial statements. ELDER-BEERMAN: Shareholders Approve 11 Resolutions at Annual Meeting -------------------------------------------------------------------- The Dayton Bizjournal.com states that about 100 individuals, including shareholders and some former employees of Elder-Beerman Stores Corp. attended the annual meeting held in Dayton Marriott. Chairman and CEO, Fred Mershad conducted the whole meeting, discussing past and recent developents. Its new store, sale of Bee-Gee Shoe business and a $4 million expense reduction. Mershad added, "For all our accomplishments, we were not satisfied with our 1999 performance." Shareholders showed their approval by voting all of the 11 proposed changes in the proxy statement. Some shareholders after the meeting related their hesitations, "It seems like two or three major shareholders have gotten what they wanted," said Ron Catlin, an Elder-Beerman shareholder. "My concern is what do these shareholders want? Do they want to just sell the company?" EQUALNET COMMUNICATIONS: Ernst & Young Resigns as Company's Auditors -------------------------------------------------------------------- The accounting firm of Ernst & Young LLP has resigned as the independent accountant for Equalnet Communications Corp. effective June 21, 2000. Ernst & Young issued reports on the financial statements of the company as of June 30, 1999 and 1998. Such reports were qualified as to the uncertainty that Equalnet will continue as a going concern. The resignation of Ernst & Young occurred without action by the board of directors or the audit committee of Equalnet. The company has not yet engaged an independent accountant as a successor to Ernst & Young. FEDERAL-MOGUL: Moody's Places Debt Ratings Under Review for Downgrade --------------------------------------------------------------------- Moody's Investors Service placed the ratings of Federal-Mogul Corporation under review for possible downgrade. Ratings affected include: (i) the Ba2 ratings on Federal-Mogul's $1.75 billion of senior unsecured bank credit facilities (consisting of a $1 billion revolving credit due 2004, a $400 million ($370 million remaining) term loan A due 2004 and a $350 million ($347 million remaining) term loan B due 2005); (ii) the Ba2 ratings of Federal-Mogul's aggregate $2.325 billion of senior unsecured notes with various maturities; (iii) the B1 rating of Federal-Mogul's $575 million of 7% junior subordinated debentures due 2027 and the corresponding "b1" rating of Federal Mogul's $575 million of guaranteed trust preferred securities; (iv) the "b1" rating of Federal Mogul's preferred stock; (v) the (P)Ba2/(P)B1/(P)"b1" ratings of Federal Mogul's shelf registration for senior debt, subordinated debt and preferred stock, respectively; (vi) the Ba2 senior implied rating; and (vii) the Ba2 senior unsecured issuer rating. The review action reflects Moody's concerns regarding Federal Mogul's series of senior management changeovers including yesterday's resignation of its Chairman and Chief Executive Officer; changes in strategic direction; inability to meet near-term projections; problems effectively integrating its 18 recently-acquired businesses, rationalizing facilities and generating greater operating efficiencies in an expedient manner; higher-than-expected asbestos settlements; and materially negative impacts on earnings and working capital of several market dynamics including the devaluation of the Euro and significant softening of both the North American aftermarket and the heavy-duty truck market. Management now estimates that Federal Mogul will have a $200 million fiscal year 2000 cash flow shortfall, in contrast to the minimum cash-neutral position it estimated in June 2000 and the positive $200 million cash surplus predicted at the outset of the year. More positively, the review action also considers Federal-Mogul's continued significant position in the global marketplace, its notable geographic and product diversity and its reputable brands, as well as the company's plans to immediately curtail non-customer related expenses and capital projects and implement various initiatives to improve operating performance through the acceleration of lean manufacturing techniques, expansion of supply chain management and further consolidation of global operations. It was indicated that the search for a new chief executive will focus on individuals who have proven abilities to execute at the operational level. Federal-Mogul announced that it expects a break-even third quarter ending September 30, 2000 and that fourth quarter earnings will be modestly improved from that level. Earnings per share in 2000 will therefore run materially below management's June 2000 market guidance of $3 per share and initial expectations of $4 per share. Leverage as measured by "total debt/EBITDA" (excluding roughly $420 million in off-balance sheet accounts receivable financing) will approximate 4x for the twelve months ending December 2000 and EBITA coverage of interest and asbestos payments will likely fall below 2x. Federal Mogul's EBITA return on assets is substandard for its rating category at about 9%. Moody's review will consider several factors including our evaluation of the ability of the interim chief executive and Board of Directors to refocus the business on programs that will reduce debt and improve leverage and interest coverage and upgrade the company's ability to forecast results; our confidence that an effective permanent chief executive candidate will be identified in a timely fashion; and refined quantification of the downside remaining in the aftermarket as well as foreign currency exposure. We will additionally look to gain more feedback on the company's expected ongoing liquidity, potential asset sales and conclusions of an updated asbestos actuarial study that will be conducted shortly. Federal-Mogul Corporation, headquartered in Southfield, Michigan, is a global manufacturer and distributor of a broad range of vehicular components for automobiles and light trucks, heavy duty trucks, farm and construction vehicles and industrial products. Customers include both original equipment manufacturers and aftermarket distributors. FIRSTPLUS FINANCIAL: Announces Ongoing Negotiations To Acquire Nineteenth ------------------------------------------------------------------------- Firstplus Financial Group, Inc. (Pink Sheets: FPFX) announced that it is engaged in negotiations to acquire Nineteenth Investment Corporation in a tax free stock-for-stock transaction. The parties to the proposed transaction do not intend to formalize any understanding regarding the acquisition until the various issues surrounding FIRSTPLUS are resolved to the satisfaction of the parties. At that point, the parties anticipate executing a letter of intent that contemplates a definitive agreement, which itself will be subject to various and customary conditions to closing. FIRSTPLUS believes that there is a significant likelihood that the issues may not be resolved and that the transaction will not move forward, in which case, the liquidation of FIRSTPLUS may be necessary. However, because of the existing confusion and speculation in the marketplace regarding the future of FIRSTPLUS, the company considers it prudent to disclose these negotiations at this time. Nineteenth is primarily a real estate acquisition and finance company, which is affiliated with Daniel T. Phillips, the Chairman and CEO of FIRSTPLUS. The value of the acquisition will be based upon a multiple of future cash flow, which will be subject to adjustment based upon actual results. The issuance of FIRSTPLUS shares in the transaction will provide Nineteenth's shareholders with effective control of FIRSTPLUS, which represents substantial dilution to existing shareholders. As previously disclosed, it is unlikely that FIRSTPLUS will reconstitute any of its previous business plans, such as originating mortgage loans, servicing mortgage loan portfolios, or investing in mortgage loan portfolios and Interest Only Strips. Additionally, if the transaction is not consummated, there are no plans to re-list the company's common stock with any major stock exchange. FIRSTPLUS believes that the proposed transaction with Nineteenth represents the only potential opportunity for the company to resume business as an operating entity; and, because of Nineteenth's affiliation with Mr. Phillips, the company believes that Nineteenth is the only entity that would be willing to take the stock of FIRSTPLUS as consideration in an acquisition. If there is a significant adverse market reaction to the proposed acquisition, then the parties may determine not to move forward. Presently, FIRSTPLUS has no operating business and is still confronted with significant issues regarding its viability. These issues include, but are not limited to, liquidity issues, the pending shareholder class action and other litigation, audit and SEC regulatory compliance issues, and the negotiation of liabilities and encumbrances, including the defaulted obligations to its convertible bondholders. As previously disclosed, FIRSTPLUS' main operating subsidiary, FIRSTPLUS Financial, Inc. (FPFI), filed for reorganization under Chapter 11 of the United States Bankruptcy Code on March 5, 1999. On May 10, 2000, the bankruptcy plan (the Plan) for FPFI closed. The Plan, as approved, was initially filed on July 2, 1999 with the United States Bankruptcy Court, Northern District of Texas, Dallas Division. As specified in the Plan, FIRSTPLUS is required to dispose of a substantial portion of its assets and provide the proceeds to the FPFI bankruptcy estate (Bankruptcy Estate) as part of its settlement with the Bankruptcy Estate. The primary assets to be disposed of are owned by Western Interstate Bancorp (WIB) a wholly owned subsidiary of FIRSTPLUS. These assets include contractual servicing rights for mortgage loans serviced by WIB and an FDIC-regulated California Industrial Loan Company (FIRSTPLUS Bank). The previously announced sale of the servicing rights to CountryWide Home Loans, Inc. closed on August 30, 2000, and FIRSTPLUS Bank is currently being marketed for sale. Proceeds from the sales will benefit creditors of FPFI. The Plan provides that FIRSTPLUS will retain its ownership of the common stock of FPFI; however, FPFI and WIB are managed by an independent, court-appointed trustee and the shares may be placed in a voting trust. Consequently, FIRSTPLUS has no control over the assets or operations of FPFI, WIB or FIRSTPLUS Bank. As a result of the Plan settlement, FIRSTPLUS' primary assets are its investments in Interest Only Strips, through its ownership of FPFI. The investments in Interest Only Strips are illiquid (and encumbered) and may not produce cash flow to FPFI for many years, if ever. In any event, the first cash flows from the Interest Only Strips are committed to funding a portion of the monies owed to Plan creditors. Any consummation of the Nineteenth acquisition will be subject to a number of additional conditions, including the following: a) Receipt of all necessary consents and approvals (including approval of an independent special committee of FIRSTPLUS); b) Receipt of a fairness opinion by FIRSTPLUS; c) Absence of pending or threatened litigation regarding the definitive agreement; d) Resolution of all material claims against FIRSTPLUS; e) Preservation of FIRSTPLUS' net operating loss carryforward; and f) Other customary conditions for transactions of this type. FRUIT OF THE LOOM: Selling Russell National Trademark To Russell Corp. ---------------------------------------------------------------------- Union Underwear, a subsidiary of Fruit of the Loom, Inc., is the sole shareholder of Russell Hosiery Mills Inc., a non-debtor subsidiary. Russell Hosiery Mills, Bowling Green, Kentucky, is the owner of the trademark RUSSELL NATIONAL. The registered trademark number is 1,356,767 in the U.S. Patent and Trademark Office and trademark number 201607 in the Canadian Intellectual Property Office. Russell Hosiery Mills sold its hosiery manufacturing and distribution operations several years ago. Since liquidating these operations, Russell Hosiery Mills acts as a licensor of trademarks. On June 16, 1994, Russell Hosiery Mills agreed to refrain from using the Russell trademark on socks. On February 5, 1998, Russell Hosiery Mills entered a trademark license agreement with Costco Wholesale Corporation, Issaquah, Washington, for the advertisement, manufacture and sale of socks bearing the Russell trademark. Costco paid Russell Hosiery Mills $250,000 the first year and pays $50,000 annually on the trademark execution anniversary date. The agreement expires on December 31, 2000. J. Kate Stickles, Esq., representing the Debtors, says that since Union Underwear is the sole shareholder of Russell Hosiery Mills, its capital stock is the property of the Union Underwear estate. Fruit of the Loom solicited and evaluated offers for the Russell trademark from five prospective purchasers. The offer from Russell Corp. was the highest and best. The sale price is $975,000 in cash by wire transfer or certified or official bank check payable in immediately available funds. Within five business days of consummation, Russell Hosiery Mills will file with the Secretary of State of North Carolina an amendment to the Certificate of Incorporation changing its name to a non-derivative of Russell. The proceeds will be applied in accordance with the Post-Petition Financing Order. Ms. Sickles points Judge Walsh's attention to Section 363 (b)(1) citing judicial "unfettered discretion" and "reasonable business judgment." She also emphasizes Smith v. Van Gorkom, 488 A.2d 858, 872 (Del. 1985). "The business judgment rule is a presumption that in making a business decision the directors of a corporation acted on an informed basis, in good faith and in the honest belief that the action was in the best interests of the company." Ms. Stickles continues that under Section 105(a) the Court has expansive and equitable powers to fashion any order or decree that is in the best interests of preserving or protecting the value of the debtors' assets. Chinichian v. Campolongo 784 F.2d 1440, 1443 (9th Cir. 1986). Since Russell Hosiery Mills is not a debtor in these proceedings, its sale of the RUSSELL NATIONAL trademark need not comply with, among others, Section 363. However, Union Underwear's approval may be needed. Therefore, Union Underwear submits that the sale is in the best interests of the Fruit of the Loom estate and it requests the Court's permission to authorize a sale. (Fruit of the Loom Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., 609/392-0900) GENESIS/MULTICARE: Provides Adequate Protection on Dover Mortgage Bonds ----------------------------------------------------------------------- By way of a Stipulation approved by the Court, Dover Health Care Associates, Inc., a debtor-affiliate of Genesis Health Ventures, Inc., agrees to provide First Union National Bank adequate protection of the liens and security interests of the Trustee. As of the Petition Date, Dover, was indebted to First Union on Bonds in the principal amount of $2.155 million plus accrued interest, fees, and costs. The Debtor agrees that the Trustee's security interests in the Bond Collateral have been duly perfected and are in all respects valid and enforceable. Permitting the Trustee, to foreclose on its security interests would cause cessation or disruption of the Debtor as a going concern. Accordingly, the Debtor agrees to make adequate protection payments in an amount equal to nondefault interest payments on the outstanding Indebtedness as stated in the Bond Documents on a timely basis and in the manner required by the Bond Documents. Such payments shall be applied and paid over to the Trustee for the benefit of the holders of the Bonds in accordance with the terms of the Bond Documents. The Debtor is authorized to use Cash Collateral provided that this does not include any cash on deposit with the Trustee. However, to the extent the Trustee wishes to distribute cash on deposit with the Trustee to Bondholders on account of principal, the Trustee shall obtain either the consent of the Debtor or an appropriate order from the Court. In addition, the Debtor shall pay all post-petition real estate taxes, maintain adequate insurance and comply with all other reasonable requirements of the Bond Documents. Background In or about 1993, when the Delaware Economic Development Authority authorized the issuance of $3,430,000 of 7.875% First Mortgage Revenue Refunding Bonds (Dover Health Care Associates, Inc.), Series 1993, due April 1, 2008, pursuant to a Trust Indenture, dated as of February 1, 1993 between the Authority and First Union's predecessor, First Fidelity Bank, National Association, as indenture trustee. Simultaneous with its issuance of the Bonds, the Authority loaned the proceeds of the bonds to Dover pursuant to a Loan Agreement dated as of February 1, 1993 between the Authority and Dover, which the Authority then immediately assigned to the Trustee. As security for payment of all amounts due under the Bonds, the Debtor granted the Trustee a mortgage on the Debtor's facility and a security interest and liens on all of the Debtor's revenues including its accounts receivable and any and all proceeds, rents, products, and profits. All collateral securing the obligations under the Bonds is referred to as the Bond Collateral. Under the Stipulation and Order, (1) The Debtor agrees that, on and after the Petition Date, the Trustee shall have valid, perfected and enforceable Rollover Lien in the assets of the Debtor existing on or after the Petition Date of the same type as the Bond Collateral, whether acquired or arising before or after the Petition Date, to the same extent, validity, perfection, enforceability and priority of the liens and security interests of the Trustee in the Bond Collateral as of the Petition Date. (2) The Debtor agrees that the Rollover Lien is in addition to all asserted security interests, liens, and rights of setoff and/or recoupment existing as of the Petition Date, and shall be valid, perfected, enforceable and effective to the same extent as the pre- petition liens, setoff and/or recoupment rights, without any further action by the Debtor or the Trustee. (3) Upon the request of the Trustee, the Debtor shall execute such documents as may be reasonably requested to evidence and perfect such liens, consistent with the provisions of this Stipulation and Order. (4) The Debtor shall allow the Trustee reasonable access to the premises, officers, and employees of the order to conduct appraisals and/or audits of the Post-Petition Collateral, and to reasonably cooperate in providing any other financial information by the Trustee. (5) The Debtor shall provide the Trustee with its Income Statement. (6) Nothing in Stipulation and Order shall constitute the consent of Trustee to charge its collateral pursuant to Section 506(c) of the Bankruptcy Code. (7) If any or all of the provisions of this Stipulation and Order are, at any time, modified, vacated or stayed, such stay, modification or vacation shall not affect the validity and enforceability of any lien, priority, or other benefit conferred under this Stipulation and Order prior to such stay, modification or vacation. (8) Unless otherwise agreed, the authorization to use Cash Collateral will terminate by written notification to the Debtor from the Trustee, and the Debtor's authorization to use Cash Collateral shall cease immediately without any further action by the Court in the event: (i) the Debtor's fails to make any Adequate Protection Payment; (ii) the Debtor's Chapter 11 case is converted to a proceeding under Chapter 7 of the Bankruptcy Code; (iii) a Chapter 11 trustee is appointed or elected or an examiner with the powers of a trustee is appointed in the Debtor's Chapter 11 case; (iv) the Debtor ceases substantially all of its business operations; (v) the Bankruptcy Court suspends the Debtor's bankruptcy case under Section 305 of the Bankruptcy Code; (vi) the Debtor defaults on any of its obligations in this Stipulation and Order; or (vii) the Debtor's Plan of Reorganization becomes effective. (Genesis/Multicare Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., 609/392-0900) GLOBAL OCEAN: Files Second Amended Plan and Disclosure Statement ---------------------------------------------------------------- Global Ocean Carriers, Ltd. filed a Second Amended Plan of Reorganization and related Disclosure Statement with the U.S. Bankruptcy Court. The Company, which has been operating under Chapter 11 protection since February 14, 2000, also filed a motion seeking Court approval of an extension of the exclusive period during which the Company can file a plan of reorganization and solicit acceptances thereof. The Court scheduled an October 4th hearing to consider the extension motion. (New Generation Research, Inc. 21-Sep-00) GLOBE MANUFACTURING: Forbearance Agreement With Banks Extended Until Dec 31 --------------------------------------------------------------------------- Globe Manufacturing, a worldwide maker of Glospan(R) spandex, announced that it has reached an agreement with its bank lenders to extend its previously announced forbearance agreement until December 31, 2000. Richard Heitmiller, vice chairman, CEO and president of Globe Manufacturing said, "We are working hard and making progress at developing a restructuring plan that will reduce our debt and help us continue to be a top competitor in the fiber industry. The support of our bank lenders and bondholders during this process has been gratifying and we hope to resolve our balance sheet issues quickly and with minimal impact on our operations. During the restructuring process, the company intends to meet all obligations of trade creditors and employees." Under the forbearance agreement, the bank lenders will not exercise remedies available to them as a result of Globe's non-compliance with certain covenants and payment requirements of the bank credit agreement. As previously announced, the Company is actively involved in discussions with its bank lenders and bondholders regarding strategic alternatives that would enable it to reduce its long-term debt. The Company believes that under each of the scenarios it is considering, its trade creditors will be unimpaired. Established in 1945, Globe Manufacturing Corp. produces Glospan(R) and Cleerspan(R) Spandex Performance Fibers and is a premier worldwide spandex fiber supplier. Available in a range of deniers from 20 through 5040 and various packaging put-ups, Glospan(R) is distributed to over 40 countries through five major distribution channels. Globe is registered under the internationally recognized ISO 9000 standard as an ISO 9001 manufacturer. GST TELECOM: Court Approves Time Warner's $690MM Purchase of GST Assets ----------------------------------------------------------------------- Time Warner Telecom Inc. (Nasdaq: TWTC), a leader in delivering converged communications services to businesses over its fiber, facilities-based networks, and GST Telecommunications, Inc., announced they have received approval from the U.S. Bankruptcy Court for the District of Delaware for Time Warner Telecom to purchase substantially all GST assets for $690 million. The court today approved the definitive purchase agreement between GST and Time Warner Telecom following an auction for GST assets that concluded Aug. 25, 2000. "This acquisition significantly expands our footprint into attractive markets in the West," said Larissa Herda, Time Warner Telecom's President and CEO. "By the end of 2001, we expect to grow from 22 to 44 markets. This will include offering services in 14 Tier 1 markets. We expect to close this transaction within 60-90 days, depending upon regulatory and other approvals. Time Warner Telecom and GST teams are already working on the integration planning process." Time Warner Telecom will acquire GST assets that include: over 4,200 miles of local and regional fiber networks in the Western United States; a network operations center in Vancouver, Washington; SS7 networks; voice and data switches; and substantially all other assets, excluding customers and certain assets in Hawaii and certain non-core businesses. "Time Warner Telecom's reputation and track record proves we are a company that executes and delivers on its business plan," Herda said. "Our expertise in managing extensive fiber-optic networks, and more importantly, selling services that ride over these fiber optic networks, should allow us to capitalize on GST's solid infrastructure." "In addition to integrating GST assets, we will continue our strong growth in existing markets and will launch the seven additional markets we previously announced, between now and the end of 2001," Herda said. "We remain focused on our current operations." Time Warner Telecom has also received commitments from its banks to provide $1.2 billion of additional financing for the GST acquisition, capital expenditures, and general working capital purposes. This includes $525 million of secured financing from The Chase Manhattan Bank and Morgan Stanley Dean Witter and a $700 million unsecured bridge financing facility from Morgan Stanley Dean Witter, Lehman Brothers Inc. and The Chase Manhattan Bank. "Our current plans, including the GST acquisition and expansion of its fiber networks, will be fully funded with this financing commitment, operating cash flow and cash on hand," said David Rayner, Time Warner Telecom's Sr. Vice President and CFO. A presentation with additional information is available on the company's Web site at http://www.twtelecom.com. HARNISCHFEGER: Horsburgh & Scott's Motion To Expunge 2 Scheduled Claims ----------------------------------------------------------------------- The Horsburgh & Scott Company, an affiliate of Harnischfeger Industries, Inc., asks the Court to expunge two Scheduled Claims: * No. s8416 for the amount $3,743,952 because H&S has scheduled the claim to Progress Billings; and * No. s2746 for the amount $119,696 because H&S has scheduled the claim to Customer Advances. H&S explains that the Scheduled Debts, listed in the names of "Progress Billings" and "Customer Advances," are not debts to actual creditors. They are account placeholders on H&S's books that represent payments received from H&S's customers pursuant to payment schedules, and are nothing more than an accounting convenience. Under H&S's accounting method, after H&S receives a customer order, typically the purchase price is paid at Interval Payments. When the time comes for the down payment or first Interval Payment, H&S sends a bill to the purchaser, debits Accounts Receivable, and credits either Progress Billings or Customer Advances. When payments are received, H&S debits its Cash Account and credits Accounts Receivable. H&S reasons that if the Scheduled Debts are not expunged, H&S's schedules will be overstated by $3,863,648. (Harnischfeger Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service, Inc., 609/392-0900) HEILIG-MEYERS: Meeting of Creditors Re-Scheduled to November 13 --------------------------------------------------------------- The meeting of creditors of Helig-Meyers Company, et al. has been rescheduled to November 13, 2000 at 11:00 AM and will be held at the US Courthouse, Richmond, Virginia. Counsel for the debtors is H. Slayton Dabney, Jr. of McGuirewoods LLP, Richmond, Virginia and Myron Trepper, Matthew A. Feldman and Paul V. Shaloub of Willkie Farr & Gallagher, New York. HVIDE MARINE: Transportation Firm Crosses Its Fingers For Upcoming Year ----------------------------------------------------------------------- Hvide Marine, The Miami Herald reports, which emerged from bankruptcy in December has hired Gerhard Kurz to help the traumatized company in pulling from its debts. "It's a little more challenging than I expected," said Kurz, who retired as president of Mobil Shipping and Transportation Co. after Mobil's acquisition by Exxon. "I have worked harder the last four months here than any time in my life. As part of the Hvide's reorganization, it still owe more than $500 million. And payments are segregated from $20 to $38 million through 20004. Hvide is still losing money and, Kurz added, "If I get through this year, we've got it made." ICG HOLDINGS: Moody's Lowers Debt Rating To Caa1 & Reviewing for Downgrade -------------------------------------------------------------------------- Moody's Investors Service announced that it has downgraded the senior unsecured debt rating of ICG Holdings, Inc. and ICG Services, Inc. to Caa1 from B3 and will continue its review of ICG Communications, Inc. and subsidiaries' long-term debt ratings for a possible further downgrade. Other ratings affected are detailed below. Moody's actions reflect the negative implications for ICG creditors that result from ICG's August 10th announcement that it had significantly lowered its revenue and EBITDA expectations and its September 18th announcement that it had further lowered these expectations and was seeking to explore strategic options. Moody's continuing review will assess the company's revised business plan, including management's ability to conserve cash while attracting the additional capital needed to fund its capital expenditure program and service its debt obligations. The company announced that, under its revised business plan, it would be in breach of certain covenants under its bank facility, in the absence of obtaining waivers. ICG's financial flexibility is limited by its extensive capital expenditure program and by a complicated capital structure with debt or credit facilities at four different issuer levels. Moreover ICG's two oldest senior discount note issues will begin to require cash servicing next year. On August 10, Moody's placed ICG's ratings on review for a possible downgrade, following management's announcement that it expected EBITDA to reach $105 million in 2000, and $350 million in 2001; levels which were significantly below Moody's expectations at the time. On September 18, the company revised these expectations down further to $17 million and $100- $150 million respectively and indicated that it expected to record an EBITDA loss of $25 million for the second half of 2000. ICG also revised its estimates for the number of net line additions to a level approximately half of that previously expected for this year and next. The company also cited customer service issues in its Internet Remote Access Service, "IRAS" business segment, which may result in contract cancellation by certain principal customers and would likely lead to minimal revenues from IRAS service for the balance of this year from approximately 150,000 installed IRAS lines. Moody's believes that under its present circumstances, ICG has limited access to the public debt and equity markets as well as the bank debt market. The company's financial sponsors, Liberty Media, Hicks Muse Tate & Furst and Gleacher, invested $750 million in ICG in April, 2000 and Moody's considers that the prospect of additional sponsor equity is unlikely. Moreover the company announced that a Liberty Media board appointee, nominated as the new CEO of ICG in August, has since resigned. The ratings affected and remaining on review for a possible further downgrade are: * ICG Communications, Inc. a) Long-term Senior Implied Rating downgraded to B3 from B2 b) Long -term Senior Issuer Rating downgraded to Caa2 from Caa1 * ICG Holdings, Inc. a) 11.625% Senior Discount Notes due 2007 downgraded to Caa1 from B3 b) 12.5% Senior Discount Notes due 2006 downgraded to Caa1 from B3 c) 13.5% Senior Discount Notes due 2005 downgraded to Caa1 from B3 d) 14% Exchangeable Preferred Stock due 2008 remains at "caa" e) 14.25% Exchangeable Preferred Stock due 2007 remains at "caa" * ICG Services, Inc. a) 9.875% Senior Discount Notes due 2008 downgraded to Caa1 from B3 b) 10% Senior Discount Notes due 2008 downgraded to Caa1 from B3 * ICG Equipment, Inc. a) $200 Million Secured Credit Facility downgraded to B2 from B1 * ICG Funding, LLC a) 6.75% Exchangeable Preferred Stock due 2009 remains at "caa" Based in Englewood, Colorado, ICG Communications is a national integrated telecommunications services provider. INNOVATIVE CLINICAL: Bond Restructuring Completed & Releases 2Q Results ----------------------------------------------------------------------- Innovative Clinical Solutions, Ltd. (OTC Bulletin Board: ICSL.OB) announced the completion of its financial restructuring plan and the results for the second quarter and six months ended July 31, 2000. The Company has successfully completed the recapitalization of its $100 million dollar debt into common equity, following confirmation of its restructuring plan by the U.S. Bankruptcy Court on August 25, 2000. The Company has also secured $10 million of exit financing through Ableco Finance LLC. The Company intends to capitalize on its strengthened financial position by expanding and integrating its 3 core businesses, clinical studies, network management and healthcare research. The Company believes that it now has the established capital structure necessary to allow the expansion of its operations and further integration of its business lines. The recapitalization, a key step in the Company's aggressive restructuring plan, should also improve the Company's ability to access capital, and to use its equity for targeted acquisitions and to attract and retain key personnel. Michael Heffernan, President and CEO, commented, "We have made significant progress in completing our restructuring plan over the past 18 months. We are now able to focus all of our energy and attention on executing our growth strategy. We believe we can continue to improve the profitability of our core businesses by growing revenue, integrating our divisions and continuing to aggressively manage overhead expenses." Mr. Heffernan continued, "Our improved financial position will allow us to aggressively implement our growth plans which include expanding service offerings and executing industry consolidation initiatives." Net loss for the quarter ended July 31, 2000 was ($14) million or ($.38) per share as compared to net loss for the quarter ended July 31, 1999 (prior to the extraordinary item) of ($30) million or ($.89) per share. Revenues for the quarter ended July 31, 2000 were $26 million, compared to $50 million during the quarter ended July 31, 1999. Revenue for the Company's continuing operations in its three core businesses increased 14% in the second quarter versus last year. Operating costs and administrative expenses for the quarter ended July 31, 2000 were $38 million (which included $8 million of nonrecurring charges), compared to $77 million during the quarter ended July 31, 1999 (which included $16 million of non recurring charges). Reduced revenue, operating costs and administrative expenses for the current quarter reflect the impact of divestitures of non-core assets and businesses as part of the Company's restructuring plan and improved margins in the core business units. Net loss for the six months ended July 31, 2000 was $(22) million or $(.60) per share as compared to net loss for the six months ended July 31, 1999 (prior to the extraordinary item) of $(41) million, or $(1.22) per share. For the six months ended July 31, 2000, revenues were $51 million, compared to $111 million during the six months ended July 31, 1999. For the six months ended July 31, 2000, operating costs and administrative expenses were $69 million, compared to $146 million during the six months ended July 31, 1999. Again, reductions in revenue, operating costs and administrative expenses reflect the impact of the divestitures of non-core assets and businesses. The second quarter 1999 results included an extraordinary item of $50 million which represents a non-cash charge to write-down the carrying amount of the businesses that were designated as assets held for sale, to their current estimated fair value. Innovative Clinical Solutions, Ltd., headquartered in Providence, Rhode Island, provides services that support the needs of the pharmaceutical and managed care industries. The Company integrates its pharmaceutical services division with its provider network management division to create innovative solutions for its customers. The Company's services include clinical and economic research and disease management, as well as managed care functions for specialty and multi-specialty provider networks including approximately 5,000 providers and over 8 million patients nationwide. The Company's components include ICSL Clinical Studies, ICSL Healthcare Research and ICSL Network Management. INTEGRATED HEALTH: HSBC Bank USA to Serve As Successor Indenture Trustee ------------------------------------------------------------------------ At the Debtors' behest, Judge Walrath approved, prior to the Bar Date, the agreement by and among Integrated Health Services, Inc., the Bank of New York and HSBC Bank USA providing for the resignation of the Bank of New York as Trustee and the appointment of HSBC Bank USA as successor under the 5-3/4% Indenture dated December 15, 1993 with respect to IHS' 5-3/4% Convertible Senior Subordinated Debentures due 2001. IHS informs the Court that the Board of Directors of IHS has authorized the appointment of HSBC as Successor Trustee, as well as Paying Agent and Registrar. IHS' liabilities include several tranches of subordinated indebtedness issued under various indentures. In December 1993, pursuant to the 5-3/4% Indenture, IHS issued the 5-3/4% Debentures in the aggregate principal amount of $ 143.750 million. The 5-3/4% Debentures are subordinated to the 9-5/8% Notes, the 10-3/4% Notes and the 10-1/4% Notes. Because Bank of New York intends to file proofs of claim with respect to the 9-5/8% Notes, the 10-3/4% Notes and the 10-1/4% Notes, the Bank has advised the Debtors that it wishes to resign as Trustee under the 5-3/4% Indenture in advance of the August 29, 2000 Bar Date, so as to avoid any conflict of interest in filing a proof of claim with respect to the 5-3/4% Debentures. (Integrated Health Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 609/392-0900) KITTY HAWK: Committee Wants to Consider Alternative Plan of Reorganization -------------------------------------------------------------------------- The Official Committee of Unsecured Creditors of Kitty Hawk, Inc., et al. filed a motion seeking the hearing of the debtors' Disclosure Statement to be adjourned until the date of the hearing of the plan filed by M. Tom Christopher, former Chairman of the Board and CEO of Kitty Hawk. According to the Committee the debtors' plan provides for general unsecured creditors will receive 15% of the equity in a single entity that will emerge from the debtors' bankruptcy. Under the Christopher plan, general unsecured creditors will receive $15 million cash on the Effective Date plus $15 million payable semi-annually over the two years after the Effective Date, plus additional compensation if the debtors meet certain financial benchmarks. The hearing on the approval of the Christopher plan is set for October 4, 2000. The Committee believes that it will be fair if the plans are judged simultaneously, and that the Committee must attempt to value the equity in the reorganized entity before judging which plan is superior. The valuation of the stock is complex and according to the Committee requires a significant devotion of time and effort on behalf of the Committee's professionals. Co-counsel for the Committee are Daniel J. Weiner, Howard Borin of Schafer & Weiner PC, Bloomfield Hills, Michigan and J. Robert Forshey, Jeff Prostok and Alice Whitten of Forshey & Prostok, LLP of Fort Worth, Texas. LAFAYETTE HEALTH: Case Summary and 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Lafayette Health Investors, LLC Route 3, Box 5 Mayo, FL 32066 Affiliates: Emporia Health Investors, LLC South Boston Health Chapter 11 Petition Date: September 13, 2000 Court: Western District of North Carolina Bankruptcy Case No.: 00-51127 Debtor's Counsel: Albert F. Durham, Esq. 227 W. Trade St., Suite 1200 Charlotte, NC 28202 (704) 334-0891 Total Assets: $ 1 Million Above Total Debts : $ 1 Million Above 20 Largest Unsecured Creditors: Centennial Healthcare, Inc. 400 Perimeter Center Terrac Suite 650 Atlanta, GA 30346 (770) 698-9040 $ 488,692 C&L Bank of Blountstown Clay Whitehead, CEO P.O. Box 534 Blountstown, FL 32424 (850) 674-5900 $ 353,257 Paragon Rehabilitation $ 196,733 Healthsouth Rehab $ 21,335 NCS Pharmacy $ 11,441 Centennial PTS Part B $ 7,128 Mutual Wholesale Co. $ 5,295 Florida Power & Light $ 3,112 Ecolab $ 2,607 J & J Gas Service, Inc. $ 2,480 Florida Healthcare Assoc $ 2,371 North F/A Pharmacy $ 2,317 Medline Industries Inc $ 1,782 Alltell Corp. $ 1,540 Crest Uniform Co. $ 1,431 Bassett's Dairy $ 1,420 Puritan Churchill Chemicals $ 1,236 Direct Supply $ 1,103 First Coast Mobile $ 1,010 Live Oak Publications $ 909 MERCURY AIR: Acquires Raytheon Aircraft's Fixed Base Operation in Alabama ------------------------------------------------------------------------- Mercury Air Group, Inc. (AMEX/PCX: MAX) announced that it has acquired the assets of a fixed base operation (FBO) in Birmingham, Ala. from Raytheon Aircraft Services, a division of Raytheon Co. (NYSE: RTNa), increasing its national FBO chain to 19 locations. Terms of the acquisition were not disclosed. Under the agreement, Mercury Air Group will operate the FBO and also continue to operate the Raytheon Authorized Service Center at Birmingham International Airport for the Bonanza through King Air product lines. The acquisition was completed on August 31, 2000. "The Birmingham acquisition helps us further the continued growth of our Mercury Air Center division," said Joseph A. Czyzyk, President and Chief Executive Officer of Mercury Air Group, Inc., the parent company. "It will continue to improve our national presence for the benefit of our clients and add another authorized aircraft maintenance capability to our existing Jackson, Mississippi, and Fort Wayne, Indiana FBO Authorized Service Centers. Furthermore, this acquisition demonstrates our continuing commitment to general and business aviation as a profitable and futuristic enterprise for the benefit of our shareholders. John L. Enticknap, Vice President and Chief Operating Officer of Mercury Air Centers, said, "This FBO enhances Mercury's network of FBOs across the United States, providing pilot and scheduler convenience in planning cross- country flights as well as adding Raytheon Aircraft maintenance experts to our existing service centers. The facility's General Manager, Paul Powell, is a veteran of the aviation industry, and his many years of experience managing large FBOs with fuel and maintenance services will be a valuable addition to the Mercury team." With the addition of Birmingham, Ala., Mercury Air Centers will operate 19 fixed base operation (FBOs) nationwide, under the name Mercury Air Centers, located in: California (Bakersfield, Burbank, Fresno, Los Angeles, Ontario, Santa Barbara); Georgia (Atlanta Hartsfield and Peachtree); Massachusetts (Bedford); Mississippi (Jackson); Nevada (Reno/Tahoe); Oklahoma (Tulsa); South Carolina (Charleston and Johns Island); Tennessee (Nashville); and Texas (Dallas Addison and Corpus Christi). For complete information visit www.mercuryaircenters.com. Mercury Air Group, Inc. is a worldwide provider of aviation petroleum products, cargo services, aviation information technology and support services to international and domestic commercial airlines, general and business aviation and U.S. government aircraft. Founded in 1956 by three members of the American Volunteer Group in China, better known as the AVG Flying Tigers, Mercury reported fiscal year 1999 net income of over $5.9 million on revenues of over $224 million. For additional information on Mercury Air Group, visit: www.mercuryairgroup.com. Raytheon Aircraft Services operates a network of 16 FBOs providing maintenance and service throughout North America, Chester, United Kingdom and in Toluca, Mexico. NATIONAL RECORD: Prerecorded Music Retailer Holds Annual Meeting ---------------------------------------------------------------- National Record Mart, Inc. (Nasdaq: NRMI) announced at their Annual Meeting that in accordance with the directive of its Board of Directors that it has retained the services of Policano and Manzo in assisting the Company in determining its alternatives and implementing an alternative in terms of its corporate direction. Policano and Manzo is a consulting and investment banking firm with offices in New York and New Jersey and have been intimately involved in the retail music industry. They had previously been retained by Camelot Music to assist in their restructuring and they were instrumental in the acquisition of The Wall Music from W H Smith and Spec's Music, a publicly traded music chain. In addition, they were responsible for the sale of Camelot Music to Trans World Entertainment Corporation. Most recently, they have concluded an engagement on behalf of the Virgin Group of companies relating to the Virgin Music Group both in Europe and the United States. National Record Mart also reported at the National Record Mart Annual Meeting that it is no longer in compliance with the Nasdaq listing qualification requirements in order to be quoted on the Nasdaq exchange. While the Company has appealed the compliance issue, it has also taken steps to seek listing on an alternate over the counter exchange. This action would not preclude the relisting on Nasdaq at some time in the future. The Company reported that it has aggressively taken steps to cut direct overhead and expenses and continues to streamline its operations. These steps include the elimination of positions, reduction of direct expenses and closure of stores where performance does not justify the capital commitment required to maintain the store. The Company added two additional directors at its Annual Meeting, Damian Georgino and David Lang. Mr. Georgino was previously Executive Vice President for US Filter Corporation, a New York Stock Exchange company. Mr. Lang joins us as a past Secretary and Treasurer of NARM (National Association of Recording Merchandisers). Mr. Lang has also been involved in the retail music industry for over 10 years with the base of his operations, Compact Disc World, located in New Jersey. National Record Mart, Inc. is a specialty retailer of prerecorded music and entertainment products and is the nation's fourth largest specialty retailer of prerecorded music, currently operating 174 stores. OAKWOOD HOMES: Announces Resignation of CEO and Director W.G. Edwards --------------------------------------------------------------------- Oakwood Homes Corporation (NYSE: OH) announced the resignation of William G. Edwards as Chairman, Chief Executive Officer and a Director of the Company. Dennis I. Meyer, a current member of the Company's Board of Directors, will assume the position of Chairman. Mr. Meyer has been a member of the Board since 1983 and will also continue as a partner with the law firm, Baker & McKenzie. Acting as spokesperson for the Board, Mr. Meyer stated, "We very much appreciate Bill's leadership and contributions. Bill has led the Company through many difficult decisions during the extremely competitive conditions experienced over the last year. He will continue to act as an advisor to the Board and will remain a significant shareholder. We wish him well in his future endeavors. "Duane D. Daggett, formerly President and Chief Operating Officer, has been named Chief Executive Officer and elected to the Board of Directors. Duane's primary focus will be on the development and implementation of the Company's performance improvement plan. His broad skill set, leadership capability and background in organizational matters will help us meet the challenges of today's marketplace." Prior to joining the Company in July, Mr. Daggett most recently served as Executive in Residence at Appalachian State University's Walker College of Business in North Carolina. He is the former Chairman, President and Chief Executive Officer of Service Systems Corporation, a subsidiary of R.J. Reynolds Industries. Earlier in his career, Mr. Daggett spent 14 years with Beatrice Companies, Inc., where he served in several positions including Executive Vice President - Domestic Grocery Operations and President of Peter Eckrich & Sons, a major meat-processing company. In a separate action, Myles E. Standish, the Company's Executive Vice President, Chief Administrative Officer and General Counsel, also was elected to the Board of Directors. Mr. Standish has been with the Company since 1995. Oakwood Homes Corporation and its subsidiaries are engaged in the production, sale, financing and insuring of manufactured housing throughout the United States. With approximately 378 Company-owned stores and an extensive network of independent retailers, Oakwood Homes is the nation's largest retailer of manufactured housing. PENN TRAFFIC: Announces Linda Jones' Promotion To Groceries Vice President -------------------------------------------------------------------------- The Penn Traffic Company (Nasdaq: PNFT) announced the promotion of Linda Jones to the position of Vice President of Groceries, Frozen and Dairy. Prior to her promotion, Ms. Jones served as Penn Traffic's Vice President of Sales and Advertising. "Linda has been a strong contributor to our company's merchandising operation for more than 20 years," said Joseph V. Fisher, President and Chief Executive Officer of the Syracuse, New York-based Penn Traffic. "Her expertise will be important as we continue to implement our plans to grow our business throughout our marketing areas." Ms. Jones began her career in the Riverside/Bi-Lo division of Penn Traffic. She has held a variety of positions including Buyer/Category Manager, Director of Grocery Procurement and Vice President of Grocery Merchandising for Riverside/Bi-Lo before moving to her most recent corporate position as Penn Traffic's Vice President of Sales and Advertising. During her time with Penn Traffic, Ms. Jones has been a supporter of the company's efforts to increase awareness of juvenile diabetes and breast cancer. 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 78 independent operators. PG&E GENERATING: S&P Changes Rating Outlook From Stable to Negative ------------------------------------------------------------------- Standard & Poor's revised its rating outlook on PG&E Generating Company LLC (PG&E Gen) to negative from stable to reflect the negative outlook placed on both PG&E Corp. and its wholly owned utility subsidiary, Pacific Gas & Electric Co. The outlook change on PG&E Gen reflects the possible weakening of the parent company, which implicitly provides a level of support to PG&E Gen's rating. The negative outlook on PG&E Corp. and Pacific Gas & Electric reflects the unanticipated financial challenges created by the increase in wholesale power prices in California at a time that electric rates charged to consumers are frozen. PG&E Gen, a wholly owned subsidiary of PG&E Corp, has ownership and management responsibilities in 30 power plants in 10 states, representing a capital investment of about $7 billion and a combined generating capacity of nearly 7,700MW. The `BBB+' rating incorporates the following risks: * heavy reliance on cash flow from merchant power sales. USGenNE, an affiliate, contributes 50% of the cash flow to PG&E Gen, and the dependence on merchant power plants increases over time since the development efforts of the company are predominantly merchant in nature; * The $1.1 billion PG&E Gen debt is structurally subordinated to nonrecourse debt at both USGenNE and the independent power projects; * High consolidated leverage at more than 60% when off-balance-sheet obligations are capitalized; * A decline in the credit strength of PG&EGen's parent, PG&E Corp, due to potentially unrecoverable wholesale electricity prices in California could adversely affect the parent's ability to support PG&EGen; and * Refinancing of a bullet maturity in 2003. However, the following strengths mitigate the above risks and support the triple-`B'-plus rating: * A portfolio of operating power projects, of which about 75% of the cash flow contributed by the independent power producer (IPP) projects (roughly 30% of overall cash flow) has investment-grade characteristics; * Investment-grade quality distributions from USGenNE, which represents about 50% of the cash flow over the next five years and is rated triple-`B'-plus by Standard & Poor's; * The ability to continue to service the debt at PG&E Gen even if USGenNE does not dividend any cash; * The financial importance of PG&E Gen as a key source of nonregulated cash flow to PG&E Corp and the continued support of PG&E Corp; * The IPP project portfolio has exhibited adequate cash generating ability and has provided substantial cash to the partners in the past; * Good operating history, with an average five-year availability of 94%; and * Adequate debt protection measures with recourse interest coverage in 1999 at 2.1 times. PG&E Gen used the proceeds of the bank debt to partially finance the acquisition of the New England Electric System's fossil and hydroelectric assets, currently held at USGenNE. PG&E Gen may also use the proceeds for general corporate purposes, which may include funding plant construction or financing buy downs of power purchase agreements (PPAs). OUTLOOK: NEGATIVE The negative outlook reflects the negative outlook placed on PG&E Corp and Pacific Gas & Electric, which provide implicit support to PG&E Gen's ratings. Standard & Poor's expects that PG&E Gen will continue to successfully manage its IPP projects; therefore, a portion of the cash flow stream should continue to be stable and predictable. However, in the near term, the company's increased reliance on operating plants in an untested merchant market that is difficult to predict will limit upgrades. Should PG&E Corp's rating decline, PG&EGen's rating would also likely drop. PLAINS ALL: Reaches Agreement to Settle Class Action Lawsuits ------------------------------------------------------------- Plains All American Pipeline, L.P. and Plains Resources Inc. reached an agreement in principle for the settlement of class action securities suits related to the unauthorized trading loss disclosed in November 1999. For purposes of the settlement, the two classes include all persons who purchased the common limited partnership units of Plains All American Pipeline, L.P. from November 17, 1998, through November 26, 1999, and all persons who purchased the common stock and call options of Plains Resources Inc. from October 29, 1998, through November 26, 1999, in both cases excluding defendants and their affiliates. Aggregate amounts to be paid under the agreement in principle total approximately $29.5 million plus interest through the date actual proceeds are remitted to representatives for the plaintiffs. Taking into account applicable insurance proceeds and existing reserves, it is estimated that the settlement and associated expenses will reduce current quarter net income by up to $0.14 per unit for the partnership and $0.06 to $0.17 per share for the company, depending on the final allocation between the partnership and the company of the settlement amount and related costs. Plains All American and Plains Resources denied the claims in the lawsuits and stated they are entering into this settlement arrangement to eliminate the significant burden and expense of further litigation. The settlement is subject to a number of conditions, including negotiation and finalization of a stipulation and agreement of settlement and related documentation, and approval of the United States District Court. "After taking into account the estimated insurance proceeds, we believe that the settlement arrangement is in the best interests of Plains All American and Plains Resources, as it enables us to avoid a protracted and expensive litigation process," said Greg L. Armstrong, Chief Executive Officer. "Moreover, upon satisfying the conditions of the settlement, we can devote 100% of our attention to continuing the profitable operation and growth of our base businesses." Armstrong noted that upon satisfaction of the conditions of the agreement in principle, the settlement arrangement would dispose of all class action securities claims made following the announcement of the unauthorized trading loss in November 1999. The settlement arrangement does not resolve two outstanding derivative lawsuits filed in Delaware Chancery Court and in Texas which named Plains All American's General Partner, its directors and certain of its officers as defendants alleging they breached their fiduciary duties owed to Plains All American and its unitholders. Plains All American is a nominal defendant in these derivative complaints. Plains Resources is an independent energy company engaged in the exploration, acquisition, development and exploitation of crude oil and natural gas. Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing activities, primarily in California, Texas, Oklahoma, Louisiana and the Gulf of Mexico. Plains All American Inc., a wholly owned subsidiary of Plains Resources Inc., holds an effective 54% interest in the partnership and serves as its general partner. Both the partnership and the company are headquartered in Houston, Texas. PREMIER LASER: Obtains Court Authority to Reject CFO's Employment Agreement --------------------------------------------------------------------------- Effective August 23, 2000, Premier Laser Systems Inc. rejected the employment agreement of Robert Mahoney, Premier's Executive VP of Finance and Chief Financial Officer. PRIMARY HEALTH: Seeks Extension of Time To Assume/Reject Leases to Jan. 9 ------------------------------------------------------------------------- Primary Health Systems, Inc. and its affiliated debtors seek an order extending the time within which the debtors may assume or reject their remaining unexpired leases of nonresidential real property by approximately 120 days, through and including January 9, 2001. The debtor experienced serious problems in attempting to scale down operations at Mt. Sinai-UC and on May 4, 2000 the court approved the sale of the IMC, St. Michael and Mt.Sinai-East. At present the debtors' only remaining operating hospital is Deaconess Hospital. The debtors have not had a sufficient opportunity to determine whether to assume or reject the remaining leases. In fact the process of evaluating the debtors' remaining leases is intertwined with the pending sales of their facilities and requires further study. Additional time to consider the assumption or rejection of the remaining leases in the perspective of the pending auction is necessary and appropriate. PRIME SUCCESSION: Court Extends 365(d)(4) Deadline through October 9 -------------------------------------------------------------------- The US Bankruptcy Court, District of Delaware, entered an order on September 11, 2000 granting the debtors' motion to extend the time to assume or reject the leases pursuant to Section 365(d)(4) under the code for approximately one month through and until October 9, 2000. The debtors are ordered to file a final motion, on or before September 13, 2000 identifying all leases and executory contracts they intend to reject pursuant to Section 365 and schedule such motion for hearing on September 28, 2000 at 2:00 PM. PRO AIR: Airline's Chapter 11 Filing Lists $30MM Of Unsecured Claims -------------------------------------------------------------------- The Chapter 11 filing of Pro Air Inc. in Seattle states that, it owes more than $30 million in unsecured claims to creditors and shows 58 pages to list, according to The Detroit News. President Craig Belmondo said, the filing's purpose was to prevent its three jets from being repossessed during the grounding done by FAA. According to Ted Lopathiewitz, spokesman for the National Transportation Safety Board, Pro Air wasn't able to file an emergency appeal. The airline only had 48 hours to appeal the grounding ordered by Federal Aviation Administration. Taylor automotive supplier, F.X. Coughlin Co., will stop investing more money unless criterias are met, according to spokesman Scott Wardon. "F.X. Coughlin Co. has been working with Pro Air during the last three months to determine if it can assist Pro Air in a recapitalization effort," Mr. Wardon added. PRO AIR: Case Summary and 19 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Pro Air, Inc. 101 Elliot Ave. W., #500 Seattle, WA 98119 Chapter 11 Petition Date: September 18, 2000 Court: Western District of Washington Seattle Bankrupt Case No.: 00-09271 Judge: Karen A. Overstreet Debtor's Counsel: Bradley D. Toney, Esq. Pro Air, Inc. 101 Elliot Ave. W., #500 Seatle, WA 98119 (206) 623-2000 Total Assets: $ 10 Million Above Total Debts : $ 10 Million Above 19 Largest Unsecured Creditors: International Union, UAWsolidarity Frank Musick Solidarity House 8000 East Jefferson Detroit, MI 48214 (313) 826-5000 $ 14,000,000 FX Coughlin Co. Greg Bird 27050 Wick Rd. Taylor, MI 48180 (734) 946-2500 $ 9,268,000 Detroit Investment Fund, LP Peter Welpart 600 Renaissance Center Ste. 1710 Detroit, MI 48243 (313) 259-6368 (313) 259-6393 $ 3,000,000 Mercury Air Group Eric Beelor 5456 McConnell Avenue Los Angeles, CA 90066 (310) 827-2737 ext 10 (310) 827-5510 $ 1,276,720 Delta Airlines Bryan Vroon Pursley, Howell, Lowery & Meeks Suntrust Plaza, Suite 4540 303 Peachtree Street, N.E. Atlanta, GA 3030B (404) 860-7180 (404) 880-7189 $ 1,058,079 Tinco Matt Eaton 623 Radar Rd. Greensborough, NC 27410 (336) 665-4410 $ 445,000 Eisbrenner Public Relations Mary Ellen Rowe 2950 W. Square Lake Road, Suite 100 Troy, MI 48098-5724 (248) 641-1446 (248) 641-1445 $ 288,620 Johnson & Higgens Dan Johnson 1215 Fourth Avenue, Suite 2300 Seattle, WA 98161 (206) 613-2200 (206) 613-2637 $ 270,762 Smitha Industries Aerospace June Milot 14100 Roosevelt Blvd. Clearwater, FL 33762 (727) 538-7567 (727) 532-6665 $ 265,694 United Airlines $ 247,096 Bocing Commercial Airplane Group $ 208,000 Allied Signal Aerospace $ 204,042 America West Airlines $ 159,090 JETSET Aerospace $ 146,500 Jeppeson $ 142,592 Signature Flight Support $ 137,469 MPL2.Com $ 137,390 ITS $ 130,449 AT&T $ 97,178 PRO AIR: Requests NTSB To Review FAA's Allegations to Continue Operations ------------------------------------------------------------------------- Pro Air, Inc. filed a request with the National Transportation Safety Board (NTSB) asking the agency to review the FAA's allegation that an emergency exists regarding the airline's continued operations. In reviewing the emergency determination request, the NTSB must assume that information outlined in the order is true and can only determine if the information presented in the report constitutes an actual emergency. A ruling on this request must be issued within five days. In addition to filing the above request, Pro Air will be filing an appeal that addresses the merits of specific items raised in the FAA order. This order of revocation appeal must be filed by Thursday, Sept. 28. The NTSB has 60 days to issue a ruling. As previously stated, Pro Air asserts that the FAA's claims are based on outdated and erroneous information. The airline believes that the FAA's case is mostly based on disputes over wording in some technical manuals, and that any findings reported to Pro Air were fixed months ago. PXRE REINSURANCE: S&P Lowers Courterparty and Financial Strength Ratings ------------------------------------------------------------------------ Standard & Poor's removed from CreditWatch its ratings on PXRE Reinsurance Co., PXRE Reinsurance Ltd., and PXRE Corp. These ratings had been placed on CreditWatch with negative implications on Aug. 3, 2000. Subsequently, Standard & Poor's lowered its counterparty credit and financial strength ratings on PXRE Reinsurance Co. and PXRE Reinsurance Ltd. to single-'A' from single-'A'-plus. In addition, Standard & Poor's lowered its counterparty credit and preferred stock ratings on PXRE Corp. to triple-'B' and double-'B'-plus, respectively, from triple-'B'-plus and triple-'B'-minus. The outlook is negative. These rating actions reflect all three companies' (collectively referred to as PXRE) reduced operating performance, persistent operating volatility, and remaining uncertainty that new lines of business will grow successfully. Although PXRE is achieving a loss ratio at or below 75% in its noncatastrophe business lines, the performance on its catastrophe business, amplified by additional property exposure written through its Lloyds operation, has contributed to significant underwriting losses in 1999, with adverse development continuing into 2000. Although PXRE will be challenged to return to the operating profitability levels of the last decade in this new environment, it remains extremely well capitalized. With recent purchases of retrocession at much lower attachments, catastrophe losses should be mitigated, and management is expected to take appropriate steps to reduce exposures in its London market portfolio while focusing resources on the direct and international business segments. Major Rating Factors: -- Very strong capital adequacy. Capital adequacy, as measured by standard & Poor's property/casualty model, was 175.7% at year-end 1999 (with adjustment for year-to-date reduction in surplus) and has consistently been above that of the rating range. -- Good strategic direction with diversification. Although success will take time to prove, PXRE's new diversification plan is sound and appears achievable with a narrowed scope. -- Improved risk sharing. PXRE has increased its use of third-party retrocession and has purchased cover at lower attachment points to reduce operating volatility. In addition, its significant quota share property-catastrophe arrangements remain in place. -- Weakened operating performance. PXRE's operating earnings were weak in 1998 and 1999, principally because of catastrophe losses but also because of high expenses in new lines, volatility in the investment portfolio, and modest use of retrocession. Operating performance is expected to improve through increased volume and economies of scale in new lines, prompt exiting of unprofitable businesses, and improved market conditions. -- Limited business review. PXRE's core competency has been limited to property-catastrophe reinsurance, and its franchise has weakened in importance, as that market segment has suffered from difficult competitive conditions. As PXRE builds its capabilities and relationships in direct, international, and finite risk markets, the company's business review is expected to improve. OUTLOOK: NEGATIVE The outlook on PXRE reflects the uncertainty surrounding its ability to attain its growth and profitability objectives. Standard & Poor's expects PXRE's new lines of business to perform at a loss ratio not to exceed 75% and capital adequacy not to fall below the double-'A' rating range. Standard & Poor's expects business diversification to continue to drive growth, but the magnitude of the growth and the containment of expenses remain uncertain.--CreditWire RAYTHEON COMPANY: Sir Robert Hayman-Joyce As New Chairman of RSL Subsidiary --------------------------------------------------------------------------- Raytheon Systems Limited, a subsidiary of Raytheon Company, announced that Sir Robert Hayman-Joyce, KCB CBE DL, has joined the company as chairman. He succeeds Sir Kenneth Macdonald, KCB, who is retiring. Lieutenant General Sir Robert Hayman-Joyce retired from the British Army in January 1999. His last post was Deputy Chief of Defence Procurement (DCDP), Operations, at the Ministry of Defence. He will be based at Raytheon Systems Limited's corporate UK offices in London. Raytheon Systems Limited (RSL) is the UK-based subsidiary of Raytheon Company. With some 2,000 employees working out of nine facilities, RSL services both defence and commercial markets. SAFETY COMPONENTS: Sells Valentec to Management Group for $4.15 Million ----------------------------------------------------------------------- Safety Components International, Inc., a low cost supplier of automotive airbag fabric and cushions in the United States, has sold Valentec Systems, Inc. to an investor group headed by Victor Guadagno, Valentec System's President, for aggregate consideration of approximately $4.15 million in cash. The proceeds from the sale will be used to pay down Safety Components' senior credit facility. The sale was approved by the District Court of the State of Delaware in conjunction with that court's approval of Safety Components' plan of reorganization to emerge from its pre-arranged chapter 11 case. John C. Corey, Safety Components President and Chief Operating Officer, stated, "The sale of Valentec Systems is a part of the previously announced plan to restructure Safety Components' business to focus on its core manufacturing operations. The company has significantly improved its operations over the past few months, increasing productivity and profitability from the core airbag automotive business. The company expects to capitalize on continuing growth opportunities in the airbag automotive business. The sale of Valentec Systems, a defense contractor, is an important step in the company's plan to focus on the automotive markets opportunities. This sale allows both companies to focus their core strengths." SFC NEW : Case Summary and 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: SFC New Holdings, Inc. 520 Lake Cook Road Suite 550 Deerfield, Illinois 60015 Affiliates: Specialty Foods Acquisition Corporation Specialty Foods Corporation SFC Sub, Inc. SFAC New Holdings, Inc. Specialty Foods Finance Corporation GWI, Inc. SFC-SPV Corp. Chapter 11 Petition Date: September 18, 2000 Courts: District of Delaware Bankruptcy Case No.: 00-03652 Judge: Mary F. Walrath Debtor's Counsel: Gregg M. Galardi Skadden, Arps, Slate, Meagher P.O. Box 636 Wilmington, DE 19899 (302) 651-300 Total Assets: $ 100 Million Above Total Debts : $ 100 Million Above 3 Largest Unsecured Creditors: U.S. Trust Company As trustee for 13-1/4% Sr 114 West 47th Street Subordinated Notes due 2003, New York, New York 10032 including but not limited to the following holders $ 202,495,935 Franklin Mutual Advisers, LLC Morgens, Waterfall, Vintiadis & Company, Inc. UBS AG, London Branch Banc of America Securities Continental Casualty Company Magten Asset Management Avenue Special Situations Fund, L.P. U.S Trust Company As trustee for 11-1/4% Sr 114 West 47th Street Notes due 2001, including but New York, New York 10032 not limited to the ff holders $ 170,869,000 PPM America Fund Mgmt GP, Inc. Stuart Lissner 22 West Wacker Dr., Stc 1100A Chicago, IL 60606 Fax: (312) 634-0741 Northeast Investors Bruce Monrad 50 S. Congress Street Boston, MA 02409 Tel: (617) 523 3588 Franklin Advisors Alec Beach 777 Mariners Island Blvd. San Mateo, CA 94404 Fax: (650) 312-3921 U.S Trust Company As trustee for 12-1/8% Sr Notes due 2001, including but not limited to the following holders $ 70,000 SINGER COMPANY: Creditors To Receive 100% of the Equity of Singer N.V. ---------------------------------------------------------------------- As announced on September 15, 2000, The First Amended Joint Plan of Reorganization of The Singer Company N.V. and Its Affiliated Debtors and Debtors In Possession was confirmed by the United States Bankruptcy Court for the Southern District of New York on August 24, 2000, and became effective on September 14, 2000. Pursuant to the Reorganization Plan, a new corporate entity in the Netherlands Antilles, Singer N.V., is now the parent company owning certain of the businesses formerly owned by The Singer Company N.V., including the Singer brand name -- one of the most widely recognized and respected brands in the world. As previously reported, under the Reorganization Plan, holders of allowed general unsecured claims against The Singer Company N.V. will receive 100 percent of the shares of the stock of Singer N.V. and, upon the effectiveness of the Reorganization Plan, all existing shares of stock and any other equity of The Singer Company N.V., including stock formerly trading under the symbol OTC: SEWCQ, were cancelled. The new stock of Singer N.V. has been issued to a creditor trust created under the Reorganization Plan, is not currently trading, and will be distributed by that trust in the future. No distributions have been made or will be made in the future to holders of cancelled stock of The Singer Company N.V. The Singer Company N.V. and forty-four of its subsidiaries and affiliates filed its Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York on September 12 and 13, 1999. SIZZLER INTERNATIONAL: Completes Acquisition of Oscar's Restaurants ------------------------------------------------------------------- On August 30, 2000, Sizzler International, Inc. completed the acquisition of 82% of the membership interests of FFPE, LLC, a Delaware limited liability company, from the sole member of the company for cash and warrants. FFPE, LLC, the successor to S & C Company, Inc., a California corporation, is the owner and operator of nine casual dining restaurants doing business under the name "Oscar's" in the San Diego and Phoenix markets. The seller was FFPE Holding Company, Inc., a Delaware corporation, owned by John Sarkisian and certain Sarkisian family members and partnerships. Sizzler expects that FFPE, LLC will continue to operate the business under the management of John Sarkisian. The acquisition was made pursuant to the terms and conditions of an amended and restated purchase agreement. The agreement provided for a purchase price of $16 million cash, warrants to purchase 1,250,000 shares of Sizzler common stock at $4.00 per share and, subject to future performance of the Oscar's chain, an earn-out of up to $9.1 million. In accordance with the purchase agreement, Sizzler anticipates providing a loan to FFPE, LLC of up to $9.5 million. The source of the cash portion of the purchase price was cash on hand, generated primarily from the sale and leaseback of certain company-owned real estate in Australia. SUN HEALTHCARE: Sixth Omnibus Motion To Reject Certain Equipment Leases ----------------------------------------------------------------------- Pursuant to section 365 of the Bankruptcy Code, the Debtors sought and obtained the Court's authorization to reject 80 Leases for equipment each for one or more reasons for the same reasons as for the previous omnibus motions for rejection of executory contracts. (Sun Healthcare Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service, Inc., 609/392-0900) TOKHEIM CORPORATION: Bankruptcy Court Approves $28MM Interim DIP Borrowing -------------------------------------------------------------------------- Tokheim Corporation (OTCBB:TOKM) announced that, in connection with its previously announced prepackaged financial restructuring plan under Chapter 11, it has received an order from the Court allowing the Company to access the remaining $28 million of its new $48 million debtor-in-possession (DIP) credit facility provided by the Company's lending group. Under the terms of the plan, the DIP credit facility will be replaced by a 5 year revolving $48 million facility upon the Company's emergence from the restructuring. As previously announced, the Court earlier approved the motions filed by the Company to allow it to continue to pay its employees and trade creditors in full in the normal course of business and has set October 4, 2000 as the confirmation hearing date of the Company's prepackaged financial restructuring plan. TREND-LINES: Hilco Wins Right to Close 78 Golf Day Stores --------------------------------------------------------- Hilco Merchant Resources, LLC, was appointed as agent by the Massachusetts Bankruptcy Court to dispose of approximately $49 million at retail of inventory in the remaining 78 Golf Day stores in California, Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, and Pennsylvania Stanley D. Black, Chief Executive Officer of Trend-Lines, Inc., the parent company of Golf Day stores stated that, "When we filed for bankruptcy protection we never envisioned the closing of Golf Day stores. I am very grateful to our employees for all their efforts We had a great Golf Day team." "Although it is a shame that Golf Day was not able to continue as a going concern, it was able to dramatically improve the quality of its inventory," stated Michael Keefe Chief Executive Officer of Hilco Merchant Resources, "therefore, consumers in the east coast and southern California will be able to get great values in the store closing sales starting Friday. Many of the items and best brands are traditionally not discounted in retail stores; this is an unprecedented opportunity for the golfer to obtain some of the best brands at tremendous savings." US WOOD: Asks Judge Robinson to Extend 365(d)(4) Deadline to January 27 ----------------------------------------------------------------------- US Wood Products, Inc. seeks a court order pursuant to Section 365(d)(4) of the Bankruptcy Code extending the debtor's time to assume or reject unexpired leases of nonresidential real property. A hearing on the motion will be convened before the Honorable Sue L. Robinson, Wilmington, DE on September 27, 2000 at 10:00 AM. The debtor claims that it is not presently in a position to decide which of the unexpired leases should be assumed or rejected. The debtor has not yet had an opportunity to fully develop a business plan that will support their plans of reorganization and is now in the process of attempting to sell some of its branches. The debtor seeks a 120-day extension until January 27, 2001. VIDEO UPDATE: Delaware Court Approves Video Retailer's "First Day" Motions -------------------------------------------------------------------------- Video Update, Inc. (OTCBB:VUPDA - news), announced that the United States Bankruptcy Court for the District of Delaware approved all of the Company's "first day" motions. Among other things, the Court authorized Video Update to finance its post-petition operations through an interim "cash collateral" order, to pay any and all outstanding wages and related benefits to its employees. Video Update's Chairman and Chief Executive Officer, Daniel Potter, said "the Court's orders will enable the Company to comfortably finance its operations while we reorganize in Chapter 11. We are particularly pleased that the Court has allowed us to honor our obligations to loyal employees. We also intend to continue our commitment to our millions of Video Update customers - we expect no interruption in service as we continue this process." * Bond pricing for the week of September 25, 2000 ------------------------------------------------- Data is supplied by DLS Capital Partners, Inc. Following are indicated prices for selected issues: AMC Ent 9 1/2 '11 44 - 46 Amresco 9 7/8 '05 34 - 36 Advantica 11 1/4 '08 52 - 58 Asia Pulp & Paper 11 3/4 '05 58 - 60 Carmike Cinema 9 3/8 '09 28 - 30 (f) Conseco 9 '06 63 - 65 Fruit of the Loom 6 1/2 '03 54 - 56 (f) Genesis Health 9 3/4 '05 6 - 8 (f) Globalstar 11 1/4 '04 29 - 31 Loewen 7.20 '03 34 - 36 (f) Oakwood Home 7 7/8 '04 34 - 36 Owens Corning 7 1/2 '05 51 - 53 Paging Network 10 1/8 '07 36 - 38 (f) Pillowtex 10 '06 18 - 20 Revlon 8 5/8 '08 52 - 54 Service Merchandise 9 '04 7 - 9 (f) Trump Atlantic 11 1/4 '06 69 - 71 TWA 11 3/8 '06 42 - 44 ********* Bond pricing, appearing in each Monday's edition of the TCR, is provided by DLS Capital Partners in Dallas, Texas. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles available from Amazon.com -- go to http://www.amazon.com/exec/obidos/ASIN/189312214X/internetbankrupt-- or through your local bookstore. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler, Ronald Ladia, Zenar Andal, and Grace Samson, Editors. Copyright 2000. All rights reserved. ISSN 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *