TCR_Public/001004.MBX              T R O U B L E D   C O M P A N Y   R E P O R T E R

                Wednesday, October 4, 2000, Vol. 4, No. 194
  
                                Headlines

AQUA-CHEM: Sale of Seawater & Industrial Business Raises $1 Million
BIRMINGHAM STEEL: Shareholders to Convene in Atlanta on October 20
BIZNESSONLINE.COM: MCG Finance Grants Continued Covenant Waiver to March 31
CAFFE DIVA: Coffee Vendor Regroups in Effort to Avert Chapter 11 Filing
CENTRAL EUROPEAN: Defaults on Senior Notes due August 2004

CHAMPION ENTERPRISES: S&P Lowers Corporate Credit Rating to BB
CORRECTIONS CORPORATION: Convertible Share Conversion Price Will Be $1.50
CROWN NORTHCORP: Fitch Places Servicer's Ratings on Watch
CROWN VANTAGE: Bankruptcy Court Extends Exclusivity Period to Dec. 25, 2000
EQUALNET COMMUNICATIONS: Auditor Resigned, So Annual Report Will Be Late

EQK REALTY: Shopping Mall Sale to American Realty Generates $2,375,000
FARMERS COOPERATIVE: Judge Flannagan Allows Co-Op To Operate Again
FINE AIR: Bankruptcy Court Approves Interim Cash Collateral Agreement
FINE AIR: Moody's Junks 9.875% Senior Notes & Says Outlook Remains Negative
GLOBE HOLDINGS: Strikes Forbearance Agreement with Bank until December 31

HAMILTON-BIOPHILE: Plan Proposes 100% Pay-Out or Stock Option to Creditors
HARNISCHFEGER: Kelek & Arkadi's Applications For Payment of Admin Claims
ICG COMMUNICATIONS: Randall E. Curran Appointed as Chief Executive Officer
INTEGRATED HEALTH: Buchanan Complains About Professional Fee Allocation
LANESBOROUGH CORPORATION: Case Summary and 10 Largest Unsecured Creditors

LOEWEN: Debtors' Motion To Dismiss 34 Inactive Cases and Disallow Claims
LOEWEN GROUP: Ontario Court Denies Shareholders Series C Conversion
MEMBER SERVICE: Case Summary and 20 Largest Unsecured Creditors
NETTEL COMMUNICATIONS: Telecom Carrier Files for Chapter 11 in Washington
NMT MEDICAL: Appoints John E. Ahern as Chairman, President and CEO

PRECISION AUTO: Announces Refinancing of Senior Debt with First Union
PREMIER LASER: Signs Agreement with SurgiLight for Purchase of Assets
PREMIER MEMBERSHIP: Case Summary and 20 Largest Unsecured Creditors
PRISON REALTY: Merger with Corrections Corporation Effective October 1
SAFELITE GLASS: Auto Glass Company Emerges From Chapter 11

SAFETY-KLEEN: Arter & Hadden to Continue Defending Personal Injury Cases
SERVICEMASTER: Moody's Places Debt Ratings on Review for Possible Downgrade
SIZZLER INTERNATIONAL: Steven R. Selver to Leave CFO Post
STROUDS, INC.: Strategic Restructuring Calls For Reduction of Workforce
TRIAD DISCOUNT: Case Summary and 20 Largest Unsecured Creditors

UNITED KENO: Ontario Superior Court Extends CCAA Protection
USURF AMERICA: Subsidiary, CyberHighway, Faces Involuntary Petition
VALUE AMERICA: Judge Approves On-Line Auction at Bid4Assets.com
VENCOR, INC.: Leasing New Whole-Body CT Scanner and Trading-In Old Equip.
VIDEO UPDATE: South Financial Charges-Off $3.4MM Balance of Loan

WASTEMASTERS: Director Douglas Holsted Resigns Without Stating Reason
WAXMAN INDUSTRIES: Sale of Interest in Barnett Raises $92.5 Million
WAXMAN INDUSTRIES: Plumbing Supplier Files for Chapter 11 in Delaware
WESTMORELAND COAL: Inks Deal to Buy Knife's Coal Operations for $28.8MM

* Meetings, Conferences and Seminars

                                *********

AQUA-CHEM: Sale of Seawater & Industrial Business Raises $1 Million
-------------------------------------------------------------------
On September 14, 2000, Aqua-Chem, Inc. sold to Aquatech International
Corporation certain assets and technology of its Seawater and Industrial
Business for approximately $1 million. The agreement also provides for
potential future payments to Aqua-Chem based upon Aquatech's sales of
certain products during the five years following this transaction. In
conjunction with this transaction, five employees of Aqua-Chem's Seawater
and Industrial Business agreed to become employees of Aquatech.

To complete this transaction, Aqua-Chem amended its Indenture dated June
23, 1998 related to its 11-1/4% Senior Subordinated Notes Due 2008 with the
consent of the holders of a majority of the outstanding Notes.


BIRMINGHAM STEEL: Shareholders to Convene in Atlanta on October 20
------------------------------------------------------------------
The annual meeting of stockholders of Birmingham Steel Corporation) will be
held on Friday, October 20, 2000, at 10:00 A.M., local time, at the Grand
Hyatt Atlanta, Atlanta, Georgia 30305. Stockholders will meet to consider
the following matters:

(1) The election of ten directors, each to serve until the next annual
     meeting of stockholders and until his or her successor has been elected
     and qualified.

(2) To approve the 2000 Management Incentive Plan of the company.

(3) To approve the 2000 Director Stock Option Plan of the company.

(4) To approve the bonus performance goals for the Chief Executive
     Officer.

(5) To approve and ratify the selection of Ernst & Young LLP as the
     independent auditors for the company and it's subsidiaries for the    
     fiscal year ending June 30, 2001.

Only stockholders of record at the close of business on September 12, 2000,
are entitled to notice of and to vote at the meeting.


BIZNESSONLINE.COM: MCG Finance Grants Continued Covenant Waiver to March 31
---------------------------------------------------------------------------
BiznessOnline.com (OTC Bulletin Board: BIZZ) announced that it has reached
agreement in principal with its senior lender, MCG Finance Corporation, to
amend the terms of its existing $15 million credit facility.

MCG has agreed to extend the time for compliance with certain (non-payment
related) financial covenants from September 30, 2000 to March 31, 2001. As
previously announced, the Company expected not to be in compliance with
these covenants as of September 30, 2000 and had requested the extension
granted by MCG. In addition, MCG has agreed repayment of principal under
the loan will not commence until February 2002, extended from May 2001.
Mark E. Munro, CEO of BiznessOnline.com commented, "MCG is a strong
strategic partner, and we value their commitment to our business plan
during these difficult equity capital markets. This restructuring is a
critical component of our plan to continue to raise additional investment
capital, enhance service to our customers and to enhance shareholder
value."

MCG has originated over 200 transactions that have resulted in over $2.0
billion in loans since its inception. MCG has over 30 multi-disciplined
professionals available to serve its customers in "New Economy" sectors of
the Communication, Content and Information Technology industries.

BiznessOnline.com is one of the Northeast's leading integrated
communications providers, and offers customers co-location, e-commerce
development, Web design and hosting services, high-speed Internet access
and local/long distance telco services. Committed to satisfying the
increasing Web and telecommunications needs of businesses,
BiznessOnline.com provides bundled, advanced IP and essential telco
services. Customers' secure broadband and Internet connections are served
via BiznessOnline.com's state-of-the-art Internet Data Centers and fault-
tolerant, fiber-optic backbone network, and are supported by the Company's
24x7 customer care and network monitoring. BiznessOnline.com is focused on
continuing to quickly build its regional presence in the Northeast and
expanding its growing IP and telco network infrastructure. The Company can
be found on the World Wide Web at www.biznessonline.com.


CAFFE DIVA: Coffee Vendor Regroups in Effort to Avert Chapter 11 Filing
-----------------------------------------------------------------------
Caffe Diva Group, Ltd. (OTC:CFDA) announced that its relationship with Ron
Davis, former chairman and CEO of the company, is over.  The major
shareholders of Caffe Diva Group elected to replace Davis as board
chairman.  Ron Brigham, vice president and former operations officer of
Caffe Diva, has been elevated to president, CEO and COO.

Brigham said, "The board of directors has decided to move the headquarters
of Caffe Diva to Los Altos, Calif. from Portland, Ore. citing the need to
consolidate operations and management."

Brigham cited differences of direction and purpose as the reason for
termination of the relationship with Davis and the others who were
displaced by the recent board action. He said, "These moves were deemed
necessary to get Caffe Diva back on track and to curtail the operating
losses which have occurred in recent months under Davis' leadership."

He further noted that, "Caffe Diva is burdened by excessive debt and has
experienced problems involving bond financing it was undertaking. In an
attempt to curtail the losses, Davis had divested its baking operation
Marcie Baking of Portland and Portland Roasting Co., its two coffee
roasting operations.

"It is planning on closing several recently acquired stores. These efforts
may not be enough to prevent the company from filing for reorganization
under Chapter 11 of the Bankruptcy Code."

The Caffe Diva Group is a 5-year-old company who's core business is coffee
vending. The company plans to continue to operate those businesses and will
concentrate its efforts on those businesses. The company sells a variety of
whole beans and fresh ground coffees as well as various brewed coffees,
espresso beverages, Italian sodas and other upscale beverages.


CENTRAL EUROPEAN: Defaults on Senior Notes due August 2004
----------------------------------------------------------
Central European Media Enterprises Ltd., as a result of the previously
announced ongoing dispute in the Czech Republic, has determined to
restructure its bond indebtedness.  Therefore, CEME stated it would not
make the semi-annual interest payment due on August 15, 2000 on its Senior
Notes due August 2004.  An Event of Default has now occurred under the
Indentures governing the Senior Notes.  The company is continuing
discussions with a group of holders of the Senior Notes relating to a
possible consensual restructuring.  CEME broadcasts in Central and Eastern
Europe and is traded on the NASDAQ National Market in the U.S.


CHAMPION ENTERPRISES: S&P Lowers Corporate Credit Rating to BB
--------------------------------------------------------------
Standard & Poor's today lowered its corporate credit rating on Champion
Enterprises Inc. to double-'B' from triple-'B'-minus.

In addition, ratings were lowered on the company's public senior notes.  
The outlook is negative.

The corporate credit rating action reflects deteriorated debt coverage
measures, expectations for continued weak operating performance, reduced
financial flexibility, and ongoing concern regarding weak industry
fundamentals.

The senior notes rating action reflects the potential for structural
subordination relative to the company's bank facility.

Champion climbed to its current position as the largest manufacturer and
third-largest retailer in the industry through its aggressive consolidation
activities over the past five to six years. The growth propelled sales past
$2 billion and enabled rapid expansion in Champion's market share (to about
20%) at both the retail and manufacturing level. However, the widely
reported retail inventory overhang, which continues to negatively affect
most industry participants, is not expected to improve in the near to
medium term and may stretch well into 2001. Industry manufacturing capacity
has contracted materially, and retail inventory levels have moderated;
however, continued constraints at the consumer-lending level are serving to
lengthen the time required to absorb the current oversupply of inventory.
In addition, new-unit sales have and will continue to compete with higher
levels of repossessed units as lenders seek to liquidate a greater number
of defaulted loans.

Champion managed to remain profitable, at both the manufacturing and retail
levels, through the first half of this year, generating comparatively
healthy operating margins. In response to lower overall demand, however,
management recently announced that the company will need to take
successive, moderate restructuring charges in the coming third and fourth
quarters related to the closing or consolidation of several additional
plants and 41 retail centers.

Management has indicated that operating margins should remain positive, but
margins are now expected to drop further to 3% for manufacturing and 1% for
retail. Debt/EBITDA, which has climbed over the past six months to 4.7
times (x) from 2.6x, will weaken further, and EBITDA interest coverage,
which is currently just under 3x, will face compression and will remain at
very low levels for the next year.

The company currently has about $364 million of debt, made up of$140
million in retail floor plan financing and $224 million in longer-term
debt, the bulk of which is unsecured. However, management has been asked by
its largest floor plan lender (Conseco Finance Corp.) to reduce its current
outstandings due to concentration issues. Standard & Poor's expects that
replacement financing will be more costly for Champion and may be difficult
to obtain in the current environment. Management does, however, have access
to a $100 million, five-year revolver, agented by PNC Bank, which matures
in 2003. The one-notch differential between Champion's revised corporate
credit rating and the rating on the existing $200 million of senior
unsecured notes reflects the potential that Standard & Poor's believes
exists for future structural subordination relative to existing lenders, as
well as the potential for higher general usage of the facility than has
historically been the case.

OUTLOOK: NEGATIVE Champion's debt protection measures will remain under
pressure as the company seeks to more aggressively rationalize its
operations in order to lower production and sales levels. In addition,
Champion's large amount of balance sheet goodwill, the by-product of its
aggressive acquisition activity, raises additional concerns regarding the
potential for asset-impairment charges in the future, Standard & Poor's
said.

OUTSTANDING RATINGS LOWERED
Ratings

    * Champion Enterprises Inc. To From

       - Corporate credit rating BB BBB-$200 million 7.625% senior notes     
          due 2009 BB- BBB-$400 million mixed senior, subordinated,
          preferred securities shelf BB-/B+/B BBB-/BB+/BB


CORRECTIONS CORPORATION: Convertible Share Conversion Price Will Be $1.50
-------------------------------------------------------------------------
Corrections Corporation of America, formerly Prison Realty Trust, Inc.
(NYSE: CXW) (formerly PZN). CCA (formerly Prison Realty) announced that the
conversion price of the company's previously issued Series B Cumulative
Convertible Preferred Stock for the initial conversion period has been
established at $1.50. This conversion price is based on the average closing
price of the company's common stock on the NYSE from Monday, September 18,
2000 through Friday, September 29, 2000. As a result of this conversion
price, each share of Series B Preferred Stock is convertible into 16.3
shares of the company's common stock during the initial conversion period
(calculated by dividing the stated price ($24.46) of each share of Series B
Preferred Stock by the conversion price ($1.50)). Holders desiring to
convert their shares of Series B Preferred Stock should contact their
broker or the company's transfer agent, Boston Equiserve/Fleet, at (781)
575-3120, prior to the conclusion of the initial conversion period (Monday,
October 2, 2000 to Friday, October 13, 2000). Additional information
regarding the conversion of the of Series B Preferred Stock may also be
found on the company's investor relations information line at (615) 263-
3990.

The shares of Series B Preferred Stock will also be convertible during the
period beginning on December 7, 2000 and ending on December 20, 2000. The
conversion price for this subsequent conversion period will be set based
upon the average closing price of the company's common stock from
Wednesday, November 22, 2000 to Wednesday, December 6, 2000.

The company is the nation's largest provider of detention and corrections
services to governmental agencies. The company is the industry leader in
private sector corrections with approximately 68,000 beds in 75 facilities
under contract or under development and ownership of 45 facilities in the
United States, Puerto Rico and the United Kingdom. The company's full range
of services includes design, construction, ownership, renovation and
management of new or existing jails and prisons, as well as long distance
inmate transportation services.


CROWN NORTHCORP: Fitch Places Servicer's Ratings on Watch
---------------------------------------------------------
Crown NorthCorp's master servicer rating of 'CMS3', primary servicer rating
of 'CPS2' and special servicer rating of 'CSS2' are placed on Rating Watch
Negative by Fitch. This decision follows disclosure of financial weaknesses
that has led to a significant reduction in staff and affected the
uncertainty as to the future of the company. There are no CMBS transactions
currently rated by Fitch that are serviced by Crown NorthCorp. Fitch places
the company on Rating Watch Negative pending receipt of further information
from the company.

Fitch is an international rating agency that provides global capital market
investors with the highest quality ratings and research. Dual headquartered
in New York and London with a major office in Chicago, Fitch rates entities
in 75 countries and has some 1,100 employees in more than 40 local offices
worldwide. The agency, which is a combination of Fitch IBCA and Duff &
Phelps Credit Rating Co., provides ratings for Financial Institutions,
Insurance, Corporates, Structured Finance, Sovereigns and Public Finance
Markets worldwide.


CROWN VANTAGE: Bankruptcy Court Extends Exclusivity Period to Dec. 25, 2000
---------------------------------------------------------------------------
The U.S. Bankruptcy Court approved Crown Vantage, Inc.'s motion for an
extension of the exclusive period during which the company can file a plan
of reorganization and solicit acceptances thereof until December 25, 2000
and February 26, 2000, respectively. The Company has been operating under
Chapter 11 protection since March 15, 2000. (New Generation Research, Inc.,
02-Oct-00)


EQUALNET COMMUNICATIONS: Auditor Resigned, So Annual Report Will Be Late
------------------------------------------------------------------------
Equalnet Communications Corp. will not be able to file its annual report
for its fiscal year ended June 30, 2000, when due on September 28, 2000,
with the Securities and Exchange Commission. As previously announced the
company's independent auditors resigned in June 2000, and since their
resignation Equalnet has been unable to retain a suitable replacement. In
addition to lacking outside auditors, the company does not, at this time,
have the financial or human resources necessary to prepare and file its
annual report with the Commission. To complete and file the report by its
due date the company would have to incur significant additional costs to
hire outside consultants to compile information ordinarily compiled by
employees of the company. Moreover, the operating budget of the company, as
approved by the bankruptcy court, does not provide for funds to engage
outside consultants to gather information, independent accountants to
prepare the audited financial statements or funds to print and distribute
the annual report to shareholders.

The company has submitted a request for a "no action letter" from the
Commission requesting the company be granted the right to modify its  
periodic reporting requirements under the Securities Exchange Act of 1934,
as amended. Equalnet requested that it be permitted to file with the
Commission the monthly operating reports that will be submitted by
the company to the bankruptcy court in lieu of filing the annual and
quarterly reports required by the Exchange Act. Although there is no
assurance that the Commission will permit the company to modify its  
periodic reporting requirements, Equalnet will not be able to file its
Annual Report with the Commission by September 28, 2000.


EQK REALTY: Shopping Mall Sale to American Realty Generates $2,375,000
----------------------------------------------------------------------
EQK Realty Investors I ("EQK") announced that the previously announced
transactions with American Realty Investors, Inc. ("ARI") and American
Realty Trust, Inc. ("ART") have closed.

Pursuant to those transactions, EQK received $1,125,000 in cash and 125,000
shares Series A Preferred Stock of ARI with a stated value of $10.00 per
share, both of which will be distributed to EQK's creditors. EQK issued an
aggregate of 7,500,000 shares of beneficial interest to ARI and ART in
these transactions. As a result of the cancellation of all of its
previously outstanding shares pursuant to EQK's Modified Amended Joint Plan
of Reorganization (the "EQK Plan"), which was approved by the United States
Bankruptcy Court for the Middle District of Pennsylvania on September 19,
2000, and which became effective October 2, 2000, ARI and ART are now the
sole shareholders of EQK.

The Harrisburg East Mall (the "Mall") has been transferred to The
Prudential Insurance Company of America which, as previously announced, was
the successful bidder with a credit bid of $30 million at the auction of
the Mall held in the bankruptcy court in Harrisburg on September 21, 2000.
Trustees appointed by ARI and ART are replacing EQK's prior trustees who
resigned effective October 2, 2000 in connection with the ARI/ART closing.
EQK's Advisory Agreement with Newleaf Corporation will remain in effect
until completion of the distributions to creditors pursuant to the EQK
Plan.


FARMERS COOPERATIVE: Judge Flannagan Allows Co-Op To Operate Again
------------------------------------------------------------------
The Tribune Business News reports that Farmers Cooperative Assn., got a
green light from Bankruptcy Judge John Flannagan to continue operations and
agricultural products and services. "From Monday morning forward, it's a
normal course of operations," said Don Dumler, the co-op's president and
chief executive officer. "It'll be just as we were before the bank pulled
the plug." Debts prior to the filing will be frozen, awaiting the approval
of the co-op's reorganization plan.


FINE AIR: Bankruptcy Court Approves Interim Cash Collateral Agreement
---------------------------------------------------------------------
Fine Air Services received tentative court approval Friday to access enough
cash to keep its planes in the air and to pay its employees in a chapter 11
bankruptcy reorganization scheduled to be completed by year-end, according
to the Miami Herald. The privately owned Miami cargo carrier filed for
bankruptcy protection late Wednesday, saying it would continue to operate
its 125 weekly flights to Latin America and the Caribbean without
interruption. Fine Air's filing, which includes subsidiary Arrow Air,
listed $265.3 million in assets and $271.2 million in liabilities, with
2,600 unsecured creditors. (ABI 02-Oct-00)


FINE AIR: Moody's Junks 9.875% Senior Notes & Says Outlook Remains Negative
---------------------------------------------------------------------------
Moody's Investors Service downgraded the $190 million 9.875% senior notes
of Fine Air Services Corp. due 2008 to Ca from Caa1, and the $45 million
secured bank facility due November 2000 to B3 from B2, the senior implied
rating to Caa3 from B3, and the Issuer rating to Ca from Caa2 following
Fine Air's decision to seek protection under Chapter 11 of the U.S.
Bankruptcy Code under a filing in the U.S. Bankruptcy Court for the
Southern District of Florida. The rating outlook remains negative.

The Company indicated that efforts to negotiate an out-of-court
comprehensive debt restructuring with the senior noteholders to avoid the
filing had been attempted, but had proven unsuccessful. The Company had
earlier entered into a Restructuring Agreement, effective June 30, 2000,
with the senior noteholders wherein the June 1, 2000 interest payment was
permitted to be made with additional notes rather than cash (the principal
on the senior notes is thus $199.4 million). The Restructuring Agreement
also granted the noteholders liens and security interests in certain assets
and properties of the Company and Subsidiary Guarantors. Arrow Air, Inc.
and Fine/AAA Interair, Inc. were also added as Subsidiary Guarantors at
that time. The Agreement also permitted additional indebtedness by the
Company of $7.6 million to finance the further acquisition of hushkits for
three of its DC-8 aircraft in order to meet Stage III noise standards.

The Company has indicated that it will continue to provide its Fine Air and
Arrow Air (acquired in early 1999) Miami based air cargo flight service to
Latin America and the Caribbean and that it intends to restructure its debt
and has sought authorization from the bankruptcy court for financing of up
to $55 million from Banc of America Commercial Finance Corp. The $55
million new facility will be based on the original $45 million facility
plus $10 million new money. The court approved $5 million new money on
September 29, 2000. The collateral for the new facility will include the
original collateral and all remaining assets of the Company, except three
DC8-62 airplanes deeded to Connecticut Bank of Commerce for the financing
of three hushkits. The Company provides both scheduled cargo service (about
2/3rds of total revenue) and ACMI service (where the Company provides
aircraft, crew, maintenance and insurance while the customer provides fuel,
ground handling, and marketing) and is the largest scheduled cargo carrier
out of Miami. The Company cited the "skyrocketing fuel prices and an
economic downturn in Latin America over the past two years as the major
causes of it present financial situation". In addition, Fine Air was
assessed a criminal fine of $3.5 million in June related to charges of
improper record keeping following an August 1997 aircraft crash. The
Company is also jointly and severally liable for an additional fine of $1.5
million levied by the U.S. Attorney under a separate plea agreement with
Aeromar Airlines, a Florida general partnership, in which the Company and
Aeromar Airlines, Inc. are 50/50 partners.

Fine Air listed $265.3 million in assets and $271.2 million in liabilities
in its bankruptcy filing. The assets consist principally of DC-8 and L-1011
freighter aircraft, hushkits, spare parts and engines. Borrowings under the
$45 million credit facility are collateralized primarily by ten DC-8
aircraft, one L-1011 aircraft, twenty spare engines, and various inventory
items. The rating downgrade on the secured bank facility reflects the
increased uncertainty of collateral value of the aircraft and engines given
the bankruptcy filing and of the timely payment of interest and principal
on the facility.

The Ca rating on the 9.875% senior notes reflects their structural
subordination to the secured bank facility and to any future DIP financing
obtained by the Company. Moody's notes that the Chapter 11 filing took
place 89 days after the effectiveness of the June 30, 2000 Restructuring
Agreement. We therefor believe that the security interest granted the
unsecured senior notes per the Restructuring Agreement has not been
perfected and thus collateral benefit provided by the Agreement will not be
available to the notes. At March 31, 2000 (the most recently filed Form 10-
Q) the Company's assets included, among other assets, $16.3 million of
notes and long-term receivables from customers, $5.4 million of net
deferred debt issuance costs, $4.7 million of Operating Certificate for
Arrow Air, $163.7 million of net Property and Equipment including $9.0
million of aircraft and engine overhauls in process and $8.9 million of
hushkits in production. (The DC-8 hushkits in question are manufactured by
Quiet Technology Venture, Ltd., an entity in which the Company's owners
have a controlling interest and are not available from other sources.)
Given the difficult business environment, the age and limited marketability
of the Company's aircraft, and the intangible nature of some of the assets,
it is Moody's opinion that it is highly unlikely that there is sufficient
asset value to fully support the senior notes after consideration of the
secured bank facility and any DIP financing.

Fine Air Services Corporation, headquartered in Miami, Florida, provides
air cargo services with an operating fleet of 24 DC-8 and 4 L-10ll aircraft
between the United States and Latin America.


GLOBE HOLDINGS: Strikes Forbearance Agreement with Bank until December 31
-------------------------------------------------------------------------
Globe Manufacturing, a worldwide maker of Glospan/R/ spandex, 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.


HAMILTON-BIOPHILE: Plan Proposes 100% Pay-Out or Stock Option to Creditors
--------------------------------------------------------------------------
Hamilton-Biophile Companies ("HCHB"), formerly MEHL/Biophile International
Companies announced that due to the Company's successful revamping of its
products and sales, it has become more profitable, and with the addition of
its new product line, all valid creditors will be paid 100% of their
approved debts (claims). This is now possible due to the increased sales
(of approximately $1,100,000 in the last two months).

Under the plan, creditors will have the option to take cash in payments, or
the Company's stock at slightly above the current trading ($.20 per share
after the 1 for 4 reverse split, or $.05 per share current price) Recent
sales levels allow for this total payment of creditors, and while the
company does not yet obtain good margins, (only approximately 30% after
returns) due to the high cost of product, and lower sales price, it does
provide the basis for the development and introduction of the new lines of
products, already being focus group tested.

This is the first 100% payment plan the company's attorneys have seen in
this type of situation, and it comes from a company which was over $12
million in debt when I Mr. Gilbert took over. It now has less than
$2,000,000 in debt, and most of that is electing to take stock instead of
cash. The Company filed Chapter 11 protection when it was unable to present
audited financial statements due to the extreme costs of accounting for the
activities which took place when Clearwater Funds was forced to protect
itself by filing an involuntary bankruptcy petition.  That bankruptcy was
dismissed when Mr. Gilbert took over the company, and arranged for
Clearwater Funds to take most of the assets and stock.

According to the documents, a central reason for the filing of the Chapter
11 proceedings on January 3rd, 2000, was the inability of the Company's
management to provide an audited accounting due to the stopping of all
operations" (and the approximately $600,000 of accounting costs which would
have been expended, leaving a company with the continued potential problems
caused by payments to related entities and likes.)

With the existing product lines, and no sales, the company began anew,
eliminated its laser business, and focused on other products, including the
obtaining of other companies as subsidiaries.

Uniquely, in order to accomplish this turn-around, the company did not have
to sell shares or borrow funds, other than work with its major supplier,
United Productions, and the help of its sales representatives, Skolnick &
Associates.

"With the exact amount of creditors to be paid, we can file our SEC
filings, and also avoid trying to reconstruct the books, explaining the
difficulties associated with when Mr. Mehl was running the business." Said
Mr. Greg Gilbert, CEO. "And, while we will not have to account for the
payments made to companies by Mr. Mehl, we will be able to offset anything
he was responsible for doing." The plan also provides for bringing suit
against the Mehl estate, and the acquisition of all patents from them due
to "work for hire" rules, and other factors.

"I know that there has been a crisis of belief in our people, but we are a
strong company, and in two days, already over 75% of the creditors have
asked to take shares of common stock in lieu of their payment," reported
Mr. Gilbert. This is partially due to the five year agreement to market a
new line of skin care products, acquired by the Company.

Other aspects of the plan include acquiring Hamilton-Clarke Industries, a
company with many products, as a subsidiary, giving preferred stock
relating only to its success, and $500,000 worth of HiEnergy Microdevices,
a high tech company in Irvine California with a non-invasive neutron beam
technology. In order to reduce the total number of shares, the currently
48,404,829 common shares are being reverse split into 10,351,207. (1 for 4)
and all of the preferred shares are being converted to common at 100 for 1.
In order to "clean up" the company, and take it forward, it was necessary
to file the chapter 11. However, that also meant that the employment
agreements for management have been terminated. Thus, Mr. Gilbert, and the
other officers do not have shares, and will have to submit new employment
agreements to the Board. They have worked since the filing without their
compensation, and as such, it is anticipated that they will receive their
original employment agreement terms. Currently, Mr. Gilbert has 25,000
shares. It is anticipated that after the reorganization, a total of eight
percent (8%) of the company's shares will be issued to the management team,
pro-rata, over three (3) years of work.

"When we started, this company was totally dead, and without sellable
assets. It is only because of the hard work, the sacrifices of our people,
and our conservative spending practices that the company has, and will in
the future, grow. This is a proud moment after much work." Said Mr.
Gilbert.  


HARNISCHFEGER: Kelek & Arkadi's Applications For Payment of Admin Claims
------------------------------------------------------------------------
To resolve a dispute over payment of administrative claims related to
Harnischfeger Industries, Inc.'s disposition of certain Beloit assets, the
Debtors sought and obtained Judge Walsh's stamp of approval on a
Stipulation with Kelek S.A. de C.V. and Arkadi Latina, Inc.

In the Stipulation the Debtors relate how the administrative claims arose.
On July 10, 1990, Beloit Manhattan entered into a Sales Representation
Agreement each with Kelek S.A. de C.V. and with Arkadi Latina, Inc. Under
each of the Agreements, the Debtors are obligated to pay commissions to
Kelek and Arkadi respectively for certain products sold by each respective
party in certain territories.

Kelek has filed administrative claims for payment in the aggregate amount
of $116,170.22 made up of:

                       $63,972.69          (Docket #2871)
                       $10,971.69          (Docket #2870)  
                       $16,250.88          (Docket #4737)
                       $13,475.30          (Docket #4717)
                       $11,499.66          (Docket #5387)

Arkadi has filed an administrative claim for $39,983.65 which is the sum
of:

                        $28,934.70         (Docket #2869)
                        $11,048.95         (Docket #4716)

The parties now agree that no later than seven business days after entry of
this Stipulation, Beloit shall pay Kelek $87,127.67 and shall pay Arkadi
$29,987.74 both by wire transfer of immediately available funds as full and
complete satisfaction of any and all amounts owed to Kelek and Arkadi
respectively under the Kelek Agreement and Arkadi Agreement that arose or
accrued after June 7, 1999.

Kelek and Arkadi will both exchange releases with the Debtors. The
respective releases will cover Kelek and Arkadi and also their respective
officers, directors, employees, agents and attorneys, successors and
assigns, except for Kelek's Proofs of Claim #6184, #6183 and for Arkadi's
Proofs of Claim #6815 provided that these proofs of claim, to the extent
they include any of the claims included in the requests, shall be reduced
to exclude those amounts and Kelek and Arkadi shall not amend the proofs of
claim to include any amounts in addition to the amounts already listed.
(Harnischfeger Bankruptcy News, Issue No. 27; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


ICG COMMUNICATIONS: Randall E. Curran Appointed as Chief Executive Officer
--------------------------------------------------------------------------
ICG Communications, Inc. (NASDAQ: ICGX), a provider of network
infrastructure, facilities and management, announced that a Special
Executive Committee of the Board of Directors, consisting solely of outside
directors, has appointed Randall E. Curran as chief executive officer of
ICG. Curran succeeds Carl E. Vogel, who resigned last week as chairman and
chief executive officer. William S. Beans, Jr. will continue his role as
president and chief operating officer and director of the company.

Curran most recently served as chairman, president and chief executive
officer of Thermadyne Holdings Corporation, which is based in St. Louis. He
had been with Thermadyne since 1987 where he held the positions of chief
operating officer and chief financial officer. Curran began his career with
Arthur Andersen. Next, he served as director of Finance for McGraw Edison
until its acquisition in 1985 by Cooper Industries, and then as vice
president of Finance for Clarke Industries, a division of Cooper
Industries.

"We are fortunate indeed to have been able to attract an executive of Mr.
Curran's caliber," said William J. Laggett, vice chairman of the Board and
chairman of the Special Executive Committee. "Mr. Curran's reputation is
outstanding, and many industry leaders cite his valuable role in the
successful restructuring of Thermadyne."

ICG also announced that it has engaged Wasserstein Perella & Co. as an
independent financial advisor and Zolfo Cooper, LLC, which specializes in
company turnarounds and restructuring, to assist Curran and the Special
Executive Committee.  Under the direction of the committee, the new
advisors -- working in conjunction with management and the company's
existing financial advisor, Gleacher & Co. -- will seek to bring stability
to ICG in the near term and then focus on maximizing the value of the
company.

ICG Communications, Inc. is a fast growing telecommunications company with
a nationwide voice and data network. The company is a competitive local
exchange carrier (CLEC) and broadband data communications company, as well
as a provider of network infrastructure, facilities and management. ICG
delivers products and services to its customer base of Internet service
providers (ISPs), business customers, and interexchange carriers through
its national network. For more information about ICG Communications
(NASDAQ: ICGX), visit the company's Web site at http://www.icgcom.com.


INTEGRATED HEALTH: Buchanan Complains About Professional Fee Allocation
-----------------------------------------------------------------------
Buchanan/SCC, Inc., through its attorneys at Duane, Morris & Heckscher LLP
moves the Court for an order modifying and clarifying the Court's
Administrative Order Establishing Procedures for Interim Compensation and
Reimbursement of Expenses of Professionals.  Specifically, Buchanan points
to the four interim applications made by the law firm of Parker Chapin LLP
for the payment of attorneys fees and expenses.

Buchanan points its finger at Lee W. Stremba, Esq., Parker Chapin LLP and
reminds the Court that Mr. Stremba advised the Court in a hearing that one
or more of the Debtors "do not (allegedly) have any assets." Buchanan
argues that if this is true, those entities do not have funds to pay
administrative or other expenses during the course of their chapter 11
proceedings.

Buchanan notes that apparently Parker Chapin has requested for fees for
services that the law firm rendered to two Debtors CCA Acquisition I, Inc.
and Community Care of America, Inc. in connection with Countryside Health
Center, and argues that if CCAI and CCA do not have assets, then any
payment of the fees will be made out of the assets of other Debtors, which
is improper absent substantive consolidation.

Buchanan argues that the Administrative Order should be modified and
amended to say:

"Absent substantive consolidation of debtor Integrated Health
Services, Inc. (case number 00389) and its wholly owned, related entity
cases into one case, no fees shall be paid to any professional out of any
debtor estate unless those fees were incurred in rendering services to that
particular estate. In addition, no fees shall be paid out of any estate
with assets for the benefit of another estate with no assets.

                        The Debtors' Response

The Debtors point out that Buchanan's request, although in terms of a
request for modification of the Interim Compensation Order, is "nothing
more than a backdoor attempt to coerce payment of its administrative
expense claim," after the claim was rejected by the Court.
The Debtors observe that, pursuant to the Countryside Nursing Home
Management Agreement rejection, Buchanans filed a rejection damage claim
seeking immediate payment by all the Debtors of the sum of $158,232
allegedly due under the Management Agreement. The Court granted
Buchanan's request to the extent of allowing Buchanan an administrative
expense claim in the amount of $50,647 solely as against CCA and determined
it did not have to be paid yet. The Debtors note that

              (i)   only CCA, the Debtor with which Buchanan had the
                    Management Agreement, would be liable for any
                    administrative expense claim,

              (ii)  any claim that Buchanan may have against Community Care,
                    as prepetition guarantor, would be a general unsecured
                    claim, and

              (iii) there was simply no basis, as alleged by Buchanan, for
                    the imposition of a claim of any priority against IHS or
                    any of the other Debtors.

With respect to professionals' fees and expenses, the Debtors contend that
the only basis for reconsideration of the Interim Compensation Order would
be Rule 9024 of the Federal Rules of Bankruptcy Procedure which makes Rule
60(b) of the Federal Rules of Civil Procedure generally applicable to
bankrutpcy cases. In this regard, the Debtors contend that Buchanan has not
demonstrated the presence of fraud, newly discovered evidence, mistake,
inexcusable neglect, or any of the other grounds listed in Bankruptcy Rule
9024. Moreover, as authorized by the Court, each professional employed for
the IHS chapter 11 cases represent all 438 Debtors to the ultimate goal of
restructuring all 438 estates under chapter 11.

According to the Debtors, Buchanan's motion with respect to professional's
interim compensation seems to be nothing more than harrassment. The
Debtors therefore ask that the Court deny the motion and award the Debtors
the costs and expenses incurred in connection with this matter. (Integrated
Health Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc.,
609/392-0900)


LANESBOROUGH CORPORATION: Case Summary and 10 Largest Unsecured Creditors
-------------------------------------------------------------------------
Debtor: Lanesborough Corporation
          100 Lee Street
          Buffalo, NY 14240

Chapter 11 Petition Date: September 29, 2000

Court: District of Delaware

Bankruptcy Case No.: 00-03801

Debtor's Counsel: William P. Bowden, Esq.
                      Ashby & Geddes
                      One Rodney Square
                      P.O. Box 1150
                      Wilmington, DE 19899
                      (302) 654-1888

Total Assets: $ 1 Million Above
Total Debts : $ 10 Million Above

10 Largest Unsecured Creditors

U.S. Bank Trust National Assoc.
  as Indenture Trustee
Scott Strodthoff
U.S. Bank Trust Center
180 East 5th Street, Suite 200
St. Paul, MN 66101
(651) 244-0707
Fax:(651) 244-5847                  Senior Note Secured       $ 39,940,000

FamCo
Kenneth B. Funsten
121 Outrigger Mall
Marina del Rey, CA 90292
(310) 577-7887
Fax:(310) 577-7891                  Senior Note Secure         $ 9,940,000

Buffalo Color Corp.
Edward I. Schultz
100 Lee Street
Buffalo, NY 14240
(716) 827-4534                      Intercompany
Fax:(716) 827-4718                   General Unsecured         $ 2,291,949

319 Holding, Inc.
Armen J. Dekmejian
c/o Buffalo Color Corp.
100 Lee Street
Buffalo, NY 14240
(716) 827-4534                      Intercompany
Fax:(716) 827-4718                   General Unsecured         $ 1,825,548

Sherborne Holding, Inc.
Craig McKibben
135 E. 5th Street, 32nd Floor
New York, NY 10022
(212) 759-6301
Fax:(212) 754-9591                   General Unsecured           $ 466,667

Sherborne Holding, Inc.              General Unsecured           $ 239,583

Lumbermens Mututal Casualty Co.      Promissory Note
                                       Unsecured                  $ 101,236

Lumbermens Mutual Casualty Co.       Promissory Note
                                       Unsecured                  $ 93,850

Sherborne & Company                  General Unsecured           $ 15,000

Newhill Partners                     General Unsecured            $ 5,000


LOEWEN: Debtors' Motion To Dismiss 34 Inactive Cases and Disallow Claims
------------------------------------------------------------------------
At the time that The Loewen Group, Inc., filed for chapter 11 protection in
Delaware, a number of Inactive Debtors were included among the Debtors'
cases to provide for the need to address any unknown claims against these
Inactive Debtors.  None of these Inactive Debtors has any assets.  Most of
these are entities were incorporated prior to the Petition Date by Loewen
Group International, Inc., or one of the other Debtors for the purpose of
acquiring funeral home and cemetery businesses, but the respective
transaction failed to materialize.

The Debtors have identified 34 Inactive Debtors that have not listed any
assets and only three of them have listed liabilities on their respective
Schedules, but each of the liabilities listed was in a de minimis amount of
$50 or less. To minimize the expense of resolving these claims, the Debtors
have paid the Scheduled Claims in full. Moreover, the Debtors believe that
none of the remaining unresolved Asserted Claims relates to a valid claim
against the inactive Debtors' estates.

The Debtors have determined that dismissal of the Inactive Debtors' chapter
11 cases will be beneficial to the Debtors' estates and creditors. First,
this will permit the Debtors to dissolve the Inactive Debtors pursuant to
applicable nonbankruptcy law, thereby reducing the enormous number of
entities that will need to be restructured in the reorganization process
under chapter 11. Second, dismissal of these cases will permit the Debtors
to avoid incurring the respective quarterly fees that otherwise would be
payable to the United States Trustee and other administrative costs.

Accordingly, the Debtors obtained and sought authority, from Judge Walsh,
pursuant to section 1112(b) of the Bankruptcy Code, for

             (i)   dismissing the Inactive Debtors' chapter 11 cases, and
   
             (ii)  disallowing certain proofs of claim asserted against the
                   Inactive Debtors' estates on the ground of no liability.

The Chapter 11 cases dismissed are:

           American Crematory, Inc.                    Case No. 99-1280
           Ashland Acquisition, Inc.                   Case No. 99-1288
           Beth Israel Memorial Chapel, Inc.           Case No. 99-1312
           DFH Acquisition, Inc.                       Case No. 99-1427
           ERMP Cemetery, Inc.                         Case No. 99-1459
           Ford Acquisition, Inc.                      Case No. 99-1481
           Funeral Service Management                  Case No. 99-1501
           HPC Acquisition, Inc.                       Case No. 99-1580
           Harmony Acquisition Corporation             Case No. 99-1551
           Heritage Family Holding Company, Inc.       Case No. 99-1561
           Kuratko Funeral Directors, Inc.             Case No. 99-1630
           Langley Disposition Company, Inc.           Case No. 99-1637
           LGII-AAP, Inc.                              Case No. 99-1647
           Lower Columbia Memorial Association, Inc.   Case No. 99-1690
           Mount Washington Acquisition, Inc.          Case No. 99-1755
           Napier Disposition Company, Inc.            Case No. 99-1763
           Oak Mound Acquisition, Inc.                 Case No. 99-1793
           Pioneer Memorial Cemetery, Inc.             Case No. 99-1839
           REFH Acquisition, Inc.                      Case No. 99-1863
           Ridgewood Funeral Home, Inc.                Case No. 99-1877
           RKL Acquisition. Inc.                       Case No. 99-1883
           S-T Wyoming Branch, Inc.                    Case No. 99-1915
           Sanctuary Acquisition, inc.                 Case No. 99-1917
           Sassaman Acquisition, Inc.                  Case No. 99-1923
           SGFH Acquisition, Inc.                      Case No. 99-1935
           SLG Acquisition. Inc.                       Case No. 99-1949
           Suburban Memorial Gardens, Inc.             Case No. 99-1981
           The Guardian Foundation of Oklahoma, Inc.   Case No. 99-2003
           The Merritt Company                         Case No. 99-2005
           Universal Memorial Centers IV, Inc.         Case No. 99-2025
           Universal Memorial Centers VII, Inc.        Case No. 99-2026
           Woodlawn Cemetery, Inc.                     Case No. 99-2076
           Yakima Funeral Home, Inc.                   Case No. 99-2087
           Zimmerman and Sandeman Funeral Homes, Inc.  Case No. 99-2091
(Loewen Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service, Inc.,
609/392-0900)


LOEWEN GROUP: Ontario Court Denies Shareholders Series C Conversion
-------------------------------------------------------------------
The Loewen Group Inc. (TSE: LWN), announced that the Ontario Supreme Court
of Justice has, on September 29, denied a motion from certain holders of
First Preferred Shares, Series C seeking an order which would allow
conversion of their Series C Preferred Share into common shares.

The Company has been under court protection from creditors since June 1,
1999 when it filed under Chapter 11 of the U.S. Bankruptcy Code and the
Canadian Companies' Creditors Arrangement Act.  On June 1, 1999, the
Ontario Superior Court of Justice issued a stay order which prohibits
parties with agreements with Loewen from exercising their conversion rights
with respect to securities of Loewen.  RBC Dominion Securities Inc.,
Sunrise Partners LLC and Paloma Strategic Fund LP, Series C Preferred Share
holders holding approximately 2,300,000 shares brought the motion for an
order lifting the stay order to enable such holders to exercise their
rights to convert the Series C Preferred Shares into common shares.

There are currently 8,800,000 First Preferred Shares, Series C outstanding.
If the stay order was lifted by the Court and holders of all 8,800,000
Series C Preferred Share were to convert, approximately 80,000,000
additional common shares would have been issued by the Corporation. There
are currently 74,145,466 common shares outstanding.

Loewen is currently engaged in discussions with its principal creditors
concerning the terms of its plan of reorganization. John S. Lacey, Chairman
of the board commented, "I must again re-emphasize that the Loewen Group is
faced with more than US$2.2 billion of debt which, in reorganization, will
rank ahead of the Common and Preferred. It is extremely doubtful that the
reorganization will result in distribution of any consideration to our
current common and preferred shareholders. The Company opposed the motion
as it did not want to create any misleading impressions that there is any
value in the Common or Preferred Shares of the Company."

The Loewen Group Inc. currently owns or operates more than 1,100 funeral
homes and more than 400 cemeteries across the United States, Canada, and
the United Kingdom. The Company employs approximately 12,000 people and
derives approximately 90 percent of its revenue from its U.S. operations.


MEMBER SERVICE: Case Summary and 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Member Service of America, LLC
         350 Camino Gardons Boulevard
         Boca Raton, FL 33432

Affiliates: Triad Discount Buying Service, Inc.
             Orchid Associates, LLC
             Premier Membership Services, LLC

Chapter 11 Petition Date: September 29, 2000

Court: District of Delaware

Bankruptcy Case No.: 00-03804

Debtor's Counsel: Laura Davis Jones, Esq.
                   Pachuiski Stang Zieht Young & Jones PC
                   919 North Market Street, 16th Floor
                   Wilmington, DE 19899-8705 (Courier 19801)
                   (302) 652-4100
                   Fax (302) 652-4400

Total Assets: $ 1 Million Above
Total Debts : $ 10 Million Above

20 Largest Unsecured Creditors

EPX
Laura Souder
One Corporate Commons
100 W Common Blvd #214
New Castle, DE 19720
(888) 798-3133                      Trade Debt             $ 1,555,676

Telebrands
Credit Manager/President
81 Two Bridges
Fairfield, NJ 07004
(973) 277-8777                      Trade Debt               $ 617,666

APAC Teleservices, Inc.
Credit Manager/President
7550 Collections Center Drive
Chicago, IL 60693                   Trade Debt               $ 309,669

Phone Interactive Comm.             Trade Debt               $ 218,997

SAS Group, Inc.                     Trade Debt               $ 206,759

South West Direct                   Trade Debt               $ 156,149

Promotion Marketing Systems         Trade Debt               $ 136,219

Real Marketing Services             Trade Debt               $ 107,363

Ontel Products                      Trade Debt                $ 90,043

Branson Star                        Trade Debt                $ 75,773

Santa Barbara Promotions, Inc.      Trade Debt                $ 74,319

Entertainment America               Trade Debt                $ 73,850

Infocom Marketing, Inc.             Trade Debt                $ 69,066

Remote Response Corp                Trade Debt                $ 56,834

Powertel                            Trade Debt                $ 55,764

Ronco/Popeil Inventions, Inc.       Trade Debt                $ 50,138

Carabella Collections               Trade Debt                $ 48,765

Architectural Concepts Inc.         Trade Debt                $ 47,628

Salton/Maxim                        Trade Debt                $ 47,170

Smartscience Laboratories           Trade Debt                $ 44,162


NETTEL COMMUNICATIONS: Telecom Carrier Files for Chapter 11 in Washington
-------------------------------------------------------------------------
Telecommunications carrier in Washington, filed for bankruptcy protection
under Chapter 11 in a U.S. Bankruptcy Court, The Washington Post relates.
What caused this was when Nettel Communications, Inc., did not raise $ 175
million in an IPO of stock last July.  Williams Communications Group Inc.,
Nortel Networks Corp., and Allied Capital Corp backed Nettel with large
amounts of funding.

It was during the Telecommunications Act of 1996, when Nettel gave birth to
local telephone markets.  A Dun & Bradstreet report reveals that Nettel
employed 472 people in 22 offices in the United States, with 200 in the
D.C. area.  The company's fiber-optic network covers 9,000 miles of the
country, and offers its services to 200 countries.


NMT MEDICAL: Appoints John E. Ahern as Chairman, President and CEO
------------------------------------------------------------------
NMT Medical announces the appointment of Mr. John E. Ahern as President and
Chief Executive Officer for the company. Mr. Ahern will also serve the
company as a Director and as Chairman of the Board.

Mr. Rudy Davis, acting President of NMT Medical said, "John is an eminently
qualified professional with over 30 years of senior management experience
in the medical device business, both in the United States and international
markets. His more recent experience and knowledge of the cardiovascular
field, particularly in building new markets, will be an important asset to
NMT Medical moving forward."

Most recently, Mr. Ahern was Vice President, Emerging Technologies at C.R.
Bard, Inc., where he was responsible for identifying, investing and
managing early-stage emerging technologies and companies. In his 13 years
with Bard, Mr. Ahern also held the senior marketing and strategic planning
positions in three of the company's cardiovascular divisions.

Mr. Ahern's medical device industry experience also includes: IntraSonix,
as Vice President of Sales and Marketing; Abbott Laboratories, where he
served as Area Manager for the Middle East and North Africa: and Becton
Dickinson, where he held positions in sales and marketing.

Commenting on today's announcement, Mr. Ahern said, "The minimally-invasive
treatment of cardiovascular disease is a large, rapidly growing, worldwide
opportunity. NMT Medical has the necessary ingredients to succeed within
that opportunity, including an innovative product portfolio, a strong
product development pipeline, and a highly talented organization." He
concluded by noting, "I look forward to leading NMT in growing the value of
the company and its products across the worldwide cardiovascular
marketplace."

NMT Medical designs, develops and markets innovative medical devices that
utilize advanced technologies and are delivered by minimally invasive
procedures. The company's products are designed to offer alternative
approaches to existing complex treatments, thereby reducing patient trauma,
shortening procedure, hospitalization and recovery times, and lowering
overall treatment costs. The company's medical devices include
self-expanding stents, vena cava filters and septal repair devices.


PRECISION AUTO: Announces Refinancing of Senior Debt with First Union
---------------------------------------------------------------------
Precision Auto Care, Inc. (Nasdaq: PACI) announced that it refinanced its
senior indebtedness with First Union National Bank.  Precision Funding,
LLC, controlled and owned by Arthur Kellar and Mauricio Zambrano, two
members of Precision Auto Care, Inc. Board of Directors, completed the
financing of a loan to the company for $11.25 million, pursuant to the
commitment announced on August 4, 2000. The bulk of the loan was used to
satisfy the company's indebtedness to First Union of approximately $7.3
million, which was to mature on October 5, 2000. The balance will be used
to finance the company's working capital needs. The credit facility will
mature on September 3, 2003.

Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with nearly 564 operating centers. The Company franchises and
operates Precision Tune Auto Care, Precision Auto Wash, and Precision Lube
Express centers around the world, and offers a vertically integrated
organization with manufacturing and distribution subsidiaries.


PREMIER LASER: Signs Agreement with SurgiLight for Purchase of Assets
---------------------------------------------------------------------
Premier Laser Systems, Inc. and SurgiLight, Inc. have signed an agreement
under which SurgiLight will acquire Premier's ophthalmic laser division.
SurgiLight, based in Orlando, Florida, will acquire the intellectual
property and inventory from Premier. Under the terms of the agreement,
SurgiLight will close this transaction prior to the American Academy of
Ophthalmology in the third week of October.

J.T. Lin, Ph. D., Chief Executive Officer of SurgiLight, said "We believe
this is an extremely important milestone in the growth and development of
our company."

Michael J. Quinn, President and Chief Executive Officer of Premier, said
"We are pleased to be selling the ophthalmic laser technology and inventory
to SurgiLight. The sale of the combined assets enables Premier to obtain
optimum value for its stakeholders."

The transaction between the parties is a culmination of a month long series
of negotiations involving two separate suitors for control of Premier's
ophthalmic laser division. The Magnum Group, Inc. of Tiburon, California,
financial advisors to Premier, managed these negotiations. Randy McDonald,
Managing Director for Magnum stated "We are confident that we have
negotiated a deal that maximizes the asset value of Premier' ophthalmic
lasers. In addition, we believe that SurgiLight will maximize these assets
and immediately enter the market with this important technology."

The transaction is subject to customary closing conditions, and approval by
the bankruptcy court in which Premier's Chapter 11 case is pending.

Premier had never formally commercialized Premier's ophthalmic laser
product line. Premier was pursuing approvals to use the technology in the
treatment of glaucoma and cataracts.


PREMIER MEMBERSHIP: Case Summary and 20 Largest Unsecured Creditors
-------------------------------------------------------------------
Debtor: Premier Membership Services, LLC
         350 Camino Gardons Boulevard
         Boca Raton, FL 33432

Affiliates: Orchid Associates, LLC
             Member Service of America, LLC
             Triad Discount Buying Service, Inc.

Chapter 11 Petition Date: September 29, 2000

Court: District of Delaware

Bankruptcy Case No.: 00-03802

Debtor's Counsel: Laura Davis Jones
                    Pachuiski Stang Zieht Young & Jones PC
                    919 North Market Street, 16th Floor
                    Wilmington, DE 19899-8705 (Courier 19801)
                    (302) 652-4100
                    Fax:(302) 652-4400

Total Assets: $ 10 Million Above
Total Debts : $ 10 Million Above

20 Largest Unsecured Creditors

EPX
Laura Bouder/Scott Martin
One Corporate Commons
100 W Commons Blvd # 214
New Castle, DE 19720                 Trade Debt            $ 1,794,467

Genesis Intermedia.com
Gary Hewitt
5805 Sepulveda Blvd 5th Flr
Van Nuys, CA 91411
(818) 902-4344                       Trade Debt              $ 600,000

Ronco/Popeil Inventions, Inc.
Credit Manager/President
21344 Superior Street
Chatsworth, CA 91311
(818) 772-6450                       Trade Debt              $ 597,594

DMI
Credit Manager/President
49 Topsham Fair Mall Road #17
Topsham, ME 04086
(207) 721-0184                       Trade Debt              $ 488,667

Promotion Marketing Systems
Credit Manager/President
53 Robinson Blvd.
Orange, CT 06477
(203) 929-1940                       Trade Debt              $ 467,966

BAS Group, Inc.
Credit Manager/President
220 White Plains Road
Tarrytown, NY 10591
(814) 332-7878                       Trade Debt              $ 387,031

E. Mishan & Son - West
Credit Manager/President
230 5th Avenue #800
New York, NY 10001
(212) 689-9094                       Trade Debt              $ 320,424

Telebrands                           Trade Debt              $ 179,879

Technobrands.com                     Trade Debt              $ 158,960

World Class Marketing                Trade Debt              $ 154,801

Powertel                             Trade Debt              $ 144,288

Salton/Maxim                         Trade Debt              $ 142,632

Quick N Brite                        Trade Debt              $ 124,767

Health Labs of N.A.                  Trade Debt              $ 123,716

West Telemarketing                   Trade Debt              $ 108,572

Ontel Products                       Trade Debt              $ 108,572

Quota Phone, Inc.                    Trade Debt              $ 106,294

Lowell Shoe Company                  Trade Debt              $ 104,153

Carabella Collection                 Trade Debt               $ 99,888

Assoil                               Trade Debt               $ 98,390


PRISON REALTY: Merger with Corrections Corporation Effective October 1
----------------------------------------------------------------------
Prison Realty Trust, Inc. (NYSE: PZN) announced that it completed its
previously announced merger with Corrections Corporation of America (CCA)
as of October 1, 2000. Shareholders of Prison Realty and CCA approved the
merger at special meetings held on September 12, 2000. The combined
companies will operate under the Corrections Corporation of America name,
and its common stock will continue to trade on the New York Stock Exchange
under the ticker symbol "CXW." The company's series A and B preferred
stocks will trade under the symbols "CXW Pr A" and "CXW Pr B",
respectively.

"The merger of Prison Realty and CCA is the first step in streamlining our
corporate structure," stated John D. Ferguson, president and chief
executive officer of the newly combined company. "Shareholders
overwhelmingly supported the need to merge the entities and return our
company to the corporate model that was so successful in the past. The
reconsolidation allows our management team to improve operations, enhance
customer service, and reduce costs."

Ferguson outlined key goals of management to maximize long-term shareholder
value:

    * Increase occupancy through increased utilization of existing
       facilities
  
    * Improve operating margins
   
    * Potential divestiture of non-core assets
   
    * Strengthen capital structure

"Our primary focus will be on maintaining the high quality of our
correctional and detention facilities and building on the strong base we
have established with our customers," continued Ferguson. "We believe our
combined operations will be of greater value for our shareholders to value
and easier to manage as we go forward," concluded Ferguson.

Corrections Corporation of America is the nation's largest provider of
detention and corrections services to governmental agencies. The company is
the industry leader in private sector corrections with approximately 68,000
beds in 75 facilities under contract or under development and ownership of
45 facilities in the United States, Puerto Rico and the United Kingdom. The
company's full range of services include design, construction, ownership,
renovation and management of new or existing jails and prisons, as well as
long distance inmate transportation services.


SAFELITE GLASS: Auto Glass Company Emerges From Chapter 11
----------------------------------------------------------
Safelite Glass Corp. (D.B.A. Safelite AutoGlass) announced that its Plan of
Reorganization became effective late on Friday, September 29, marking the
Company's official emergence from its voluntary Chapter 11 proceeding. The
Company's plan had been approved by more than 95% of its creditors and was
confirmed on September 12 by the U. S. Bankruptcy Court in Delaware.
Reflecting the company's financial restructuring, a new board of directors
that represents the company's new owners has also been named.

"By completing our financial reorganization, Safelite moves forward with
significantly less debt and more cash available to fund improvements to our
operations, such as technology to provide faster, more convenient mobile
service; call center improvements to offer more complete claims solutions
for our insurance and fleet clients; and expansions to our wholesale
business," said John Barlow, Safelite President and CEO. "All of these
changes form a strong foundation for growth as we move to realize our
vision of becoming America's first choice for auto glass repair and
replacement services."

"We are also proud to say that we have been able to continue to provide
excellent service to our customers throughout the restructuring process,"
Barlow continued. "Thanks to the support of our associates and vendors, we
were able to maintain customer satisfaction ratings of better than 98%."
As part of the company's financial restructuring, a new Board of Directors
has also been announced. The new Board represents an important base of
knowledge in the automotive, insurance, manufacturing and retailing
industries that will benefit Safelite as the company continues to grow
market share.

The new Board members include:

      * CHAIRMAN - George T. Haymaker, Jr. of Kaiser Aluminum. The company
is one of the world's leading producers and marketers of aluminum.

      * Wilson C. Cooney, former Deputy CEO of Property and Casualty
Operations for insurance and financial services holding company USAA
(United Services Automobile Association.) USAA provides insurance,
investment, banking and other services.

      * Donald DeFosset, Jr., most recently Executive Vice President and
Chief Operating Officer of Dura Automotive Systems, Inc., a manufacturer of
mechanical assembly systems, components, hardware and cables for the auto
industry.

      * James J. Gaffney, Chairman and President of Vermont Investments Ltd.
Mr. Gaffney was previously President and CEO of General Aquatics. He serves
on several corporate boards as well.

      * Laurie M. Shahon, President and Founder of Wilton Capital since
January 1994. Wilton Capital makes principal investments in later-stage
venture capital companies and medium-sized management buyouts. Ms. Shahon
also serves on the boards of several retail interests.

      * Michael S. Wilder, who will be soon retiring from his position as
Senior Vice President and General Counsel of the Hartford Financial
Services Group. The Hartford offers personal, commercial, specialty and
reinsurance property and casualty coverage as well as life insurance,
employee benefits, and asset management plans.

      * Safelite President and CEO John Barlow;

      * Safelite CFO Doug Herron; and

      * Safelite Senior Vice President Dan Wilson.

Safelite AutoGlass filed a voluntary petition for reorganization under
Chapter 11 of the Bankruptcy Code on June 9, 2000. The Company completed
all of the requirements to emerge from bankruptcy. This implementation of
the court-approved Plan of Reorganization brings to an end Safelite's
financial restructuring process.

Privately held Safelite Glass Corp. is the leader in the $3.2 billion auto
glass repair and replacement industry. Safelite is the only auto glass
company with representation in all 50 states, serving more than 80% of the
US population. The company's 6,200 associates provide auto glass repair and
replacement solutions for more than 3 million customers annually. For more
information, please visit the company's website at www.safelite.com .


SAFETY-KLEEN: Arter & Hadden to Continue Defending Personal Injury Cases
------------------------------------------------------------------------
For nearly three years, Arter & Hadden LLP has represented the Debtors, or
their predecessors, as defendants in various products liability lawsuits.
Currently, Arter & Hadden represents the Debtors in 29 California lawsuits
in which the plaintiffs have alleged injury as a result of their use of the
Debtors' parts washers machines. By this Application, Safety-Kleen sought
and obtained Court authority, pursuant to 11 U.S.C. Secs. 327(e) and 329,
the employ Arter Hadden as special products liability counsel in the course
of their chapter 11 cases.

As previously reported, see prior entry at [00046], the automatic stay has
already been modified to permit Delaluz v. Safety-Kleen, Los Angeles
Superior Court Case No. 2C219902, to go forward. Arter & Hadden serves as
Safety-Kleen's counsel in that litigation. The Debtors will be unduly
prejudiced if Arter & Hadden is not approved as special products liability
counsel and is unable to defend the Debtors' interests.

The members, associates, and paraprofessionals presently expected to work
on Safety-Kleen matters, and their hourly rates, are:

    Name                           Position/Title              Hourly Rate
    ----                           --------------              -----------
    Robert L. Dickson              Senior Partner                $275.00
    Roxanne M. Wilson              Senior Partner                $275.00
    Frederick J. Ufkes             Partner                       $225.00
    Christine 0. Nyhan             Senior Associate              $180.00
    Mollie F. Benedict             Senior Associate              $180.00
    Mark E. Gustafson              Associate                     $150.00
    Vincent Esparza                Paralegal                     $ 95.00
    JoAnn Breen                    Paralegal                     $ 95.00
    Stephanie Greenberg            Paralegal                     $ 95.00
    Ann-Marie Tidwell              Paralegal                     $ 95.00

Frederick J. Ufkes, Esq., a member in Arter & Hadden's Los Angeles office,
tells the Court that, to the beat of his knowledge, his Firm does not
represent any entity in the Debtors' chapter 11 cases except the Debtors
and does not hold or represent any interest adverse to the Debtors' estate.
(Safety-Kleen Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


SERVICEMASTER: Moody's Places Debt Ratings on Review for Possible Downgrade
---------------------------------------------------------------------------
Moody's placed The ServiceMaster Company's senior unsecured debt ratings on
review for possible downgrade reflecting continued weakness in the
company's Landcare business, higher than expected costs across several
other business lines, as well as aggressive share repurchase activity. The
combination of weaker business conditions and aggressive financial policies
are likely to result in weaker debt protection measures.

Ratings placed under review:

    a) Revolving credit facility at Baa2.

    b) Senior unsecured notes at Baa2.

    c) Senior unsecured shelf at (P) Baa2.

    d) Medium Term Notes at Baa2

Moody's will focus on the company's plan to solve the integration issues in
its Landcare business, as well as the timetable for recovery. Additionally,
Moody's review will focus on the company's financial policies regarding
acquisitions and share repurchases in light of the difficult business
environment.

The ServiceMaster Company, headquartered in Downers Grove, Illinois,
provides a range of services to individual consumers, businesses, and
institutions in the United States and over 40 countries worldwide. At year-
end revenues were $5.7 billion.


SIZZLER INTERNATIONAL: Steven R. Selver to Leave CFO Post
---------------------------------------------------------
Sizzler International, Inc. has announced that Steven R. Selcer will resign
his position as Chief Financial Officer effective October 15, 2000 to join
a new company outside the restaurant industry. Sizzler has employed a
search firm to locate possible candidates for the CFO position.

"We wish Steve the best of luck in his new endeavors outside of the
restaurant industry and intend to fill his position with an equally
talented CFO as we continue to expand our operations in the U.S. and
abroad," said Charles Boppell, President and CEO of Sizzler International.

Sizzler International, Inc. operates, franchises or joint ventures 348
Sizzler restaurants worldwide, 102 KFC restaurants in Queensland, Australia
and 9 Oscar's Restaurants in the Southwest.


STROUDS, INC.: Strategic Restructuring Calls For Reduction of Workforce
-----------------------------------------------------------------------
Strouds, Inc., announced that as a component of its strategic
restructuring, it will reduce the workforce at its corporate headquarters
and distribution center by approximately 50 positions.

This action will enable the Company to reduce expenses and increase
operating efficiencies, while bringing its corporate support functions and
distribution center operations in line with the service requirements of its
ongoing stores, said John P. Brincko of Brincko Associates, Inc., the
company's financial restructuring advisors.

On September 7, 2000, to facilitate its capital restructuring initiatives
and to assure the continued flow of merchandise to its stores for the
critical holiday selling season, Strouds filed a voluntary petition for
reorganization under Chapter 11 of the Bankruptcy Code. The Company also
announced its intention to close nine underperforming stores principally
outside its core California market or stores that no longer fit the
Company's strategic direction within 60 to 90 days.

"As the Company moves forward in its voluntary restructuring, management
will continue to make full use of cost-saving opportunities which will
contribute to its long-term survival and maximize the recovery to its
creditors," Mr. Brincko said.

The Company filed its voluntary Chapter 11 petition in the U.S. Bankruptcy
Court for the District of Delaware in Wilmington.

Strouds, Inc., the Linen Experts (R), is a specialty retailer of bed, bath,
tabletop and other home textile products. The Company currently operates 60
stores in five states and also markets its home products through its web
sites, www.linenexperts.com and www.strouds.com.


TRIAD DISCOUNT: Case Summary and 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Triad Discount Buying Service, Inc.
         350 Camino Gardons Boulevard
         Boca Raton, FL 33432

Affiliates: Orchid Associates, LLC
             Member Service of America, LLC
             Premier Membership Services, LLC

Chapter 11 Petition Date: September 29, 2000

Court: District of Delaware

Bankruptcy Case No.: 00-03803

Debtor's Counsel: Laura Davis Jones, Esq.
                    Pachulski Stang Ziehl Young & Jones PC
                    919 North Market Street, 16th Floor
                    Wilmington, DE 19899-8705 (Courier 19801)
                    (302) 652-4100
                    Fax (302) 652-4400

Total Assets: $ 1 Million Above
Total Debts : $ 1 Million Above

20 Largest Unsecured Creditors

Promotion Marketing Systems
Credit Manager/President
53 Robinson Blvd.
Orange, CT 06477
(203) 929-1940                       Trade Debt          $ 330,670

APAC Teleservices, Inc.
Credit Manager/President
7550 Collections Center
Chicago, IL 60693
(319) 886-6675                       Trade Debt          $ 287,983

South West Direct                    Trade Debt           $ 92,333

Berger & Davis, PA                   Trade Debt           $ 82,190

Swidler Berlin Shereff Friedman      Trade Debt           $ 78,883

Quota Phone, Inc.                    Trade Debt           $ 60,493

Intertec Publishing                  Trade Debt           $ 52,614

Interirors by Patrice Cury, Inc.     Trade Debt           $ 30,360

SCP Commercial Printing              Trade Debt           $ 28,272

Walmart Stores, Inc.                 Trade Debt           $ 24,520

Channel Resources                    Trade Debt           $ 18,628

Greenberg Glusker Fields             Trade Debt           $ 18,340

E. Spire Communications, Inc.        Trade Debt           $ 17,009

CompUSA                              Trade Debt           $ 12,233

KForce.com                           Trade Debt           $ 11,306

GEAC Computers                       Trade Debt            $ 9,979

Moody Printing & Mail                Trade Debt            $ 9,358

Kinko's                              Trade Debt            $ 7,609

Hoover Partners                      Trade Debt            $ 7,110

Federal Express                      Trade Debt            $ 6,893


UNITED KENO: Ontario Superior Court Extends CCAA Protection
-----------------------------------------------------------
United Keno Hill Mines Limited ("United Keno") announced that the Superior
Court of Ontario (the "Court") has 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 Thursday, September 28, 2000 protection from proceedings
against United Keno has been extended to October 18, 2000.

Under Thursday's Order, United Keno has been given until October 18, 2000
to call meetings of its creditors to implement the Plan of Arrangement
which it filed with the Court on July 7, 2000.


USURF AMERICA: Subsidiary, CyberHighway, Faces Involuntary Petition
-------------------------------------------------------------------
USURF America, Inc.(AMEX:UAX), a provider of Fixed-Wireless Internet access
products, including Quick-Cell(TM), announced that three alleged creditors
of its ISP subsidiary, CyberHighway, have filed an involuntary bankruptcy
proceeding against CyberHighway on September 29, 2000, in the Idaho Federal
Bankruptcy Court.

The business and operations of USURF America and CyberHighway will continue
unchanged, and the Company will seek the dismissal of the petition
immediately.

USURF America's investment banker, Gruntal & Co., L.L.C., has indicated
that the actions taken against CyberHighway do not, in any way, lessen its
commitment to USURF America and that it will continue its efforts to locate
capital for USURF America's Fixed-Wireless Internet access business
expansion.

The involuntary proceeding was brought by CTC Telecom, Inc., an affiliated
company of Cambridge Telephone Company, an affiliate-ISP in the
CyberHighway network for whom CyberHighway provides Internet access
provider backroom and related services. USURF America's management firmly
believes that this filing has been made in bad faith by CTC Telecom.
USURF's legal advisors are confident that the proceeding will be dismissed
upon appropriate review by the Idaho court system.

For information about USURF America and its Fixed-Wireless Internet access
products, please visit its Web site at www.usurf.com.

                               About USURF America

USURF America has developed "Quick-Cell" one of the most flexible fixed-
wireless Internet access delivery solutions on the market, one which
operates in unlicensed spectrum and can be easily and inexpensively
deployed, often in a matter of hours. Quick-Cell's bandwidth speed is
scalable, up to and including T1-line equivalent, and bandwidth usage by
customers can be monitored and controlled from a single location with USURF
America's proprietary software. Quick-Cell service also has so-called voice
over Internet (VOIP) capability.


VALUE AMERICA: Judge Approves On-Line Auction at Bid4Assets.com
---------------------------------------------------------------
Bid4Assets, the leading online marketplace for buying and selling high-
value, distressed assets, announced that it has been retained to auction
select assets of Value America, Inc., which in August filed for
reorganization under Chapter 11 of the bankruptcy code in the Western
District of Virginia. Judge William Anderson formally approved Bid4Assets
as the auction venue on September 28, 2000. Assets with an original value
of more than $2 million will be included in the sale. Items for auction
include approximately 1,000 units of computer equipment; 350 workstations
from Herman Miller, Open Plan and other manufacturers; hundreds of desk
sets and additional office furniture. The auction will run from Oct. 2 -
Oct. 12 at www.bid4assets.com.

Value America was a pioneer in online retailing, bringing features of
bricks and mortar to Internet commerce in an inventory-less model. On
August 11, 2000 the company filed for reorganization under Chapter 11 of
the bankruptcy code. At that time, the company announced that it had
discontinued its e-retailing operations and undertook a reduction in force
to concentrate on the development of its electronic services business. The
company's electronic services business involves operating an infrastructure
system for third party manufacturers, vendors and distributors to enable
them to fulfill online orders from consumers, arrange for payment and to
deliver goods and products to the consumer, through the use of the
Internet.

Bid4Assets, which has listed more than $1 billion of assets for auction in
the last year, is the Internet's only full-service auction solution that
features distressed assets from four categories: financial instruments,
real estate, intangible property and personal property. Its secure, full-
service Web site gives sellers of assets access to a global pool of
qualified buyers while providing online and offline sales solutions.
Similarly, buyers of distressed assets simplify the acquisition process by
conducting transactions online, saving hours and money formerly spent at
public outcry auctions. According to multiple sources, distressed assets in
the categories offered by Bid4Assets exceeded $240 billion in 1999.
Bid4Assets CEO, Tom Kohn, said, "We provide companies with fast and cost
effective asset recovery methods by leveraging the efficiencies of the
Internet to conduct our sales. Our goal is to bring the highest return back
to the company and investors."

Value America's assets will be available for inspection by appointment at
designated times before the auction closes at 3 p.m. EST on October 12,
2000. All assets available for auction are located in Charlottesville, Va.
Interested buyers can schedule a time to inspect the equipment through
Bid4Assets by sending an email to service@bid4assets.com. Assets will be
sold in lots that will fit the needs of small and medium size businesses.
An online deposit through eDeposit(TM) will be required for all bids over
$20,000.


VENCOR, INC.: Leasing New Whole-Body CT Scanner and Trading-In Old Equip.
-------------------------------------------------------------------------
Vencor, Inc., seeks the Court's authority to enter into a lease for a
HiSpeed DX/I Whole Body Computer Topography Scanner System, and to enter
into the sale by trade-in, free and clear of all liens and encumbrances, of
an older, obsolete and unnecessary Computer Topography Scanner for purposes
of securing a trade-in allowance on the lease.

In the ordinary course of their operations, the Debtors often need to use a
Whole Body Computer Topography Scanner System which is a sophisticated
medical device for full and partial body radiology imaging, often necessary
in the diagnosis and treatment of seriously ill patients. The Old CT
Scanner has been in possession and use by Vencor Louisville since 1982 and
is outdated and obsolete in the face of recent technological and design
advances. Vencor desires to have the CT Scanner for its high speed imaging
and other design advantages for providing high quality health care services
to patients. In economic terms, Vencor believes that the improved and
increased services associated with the CT Scanner will be a profitable use
of Vencor's resources.

Subject to the Court's approval, Vencor Louisville and General Electric
will enter into a standard Master Leaseline Agreement Number 2007 under
which Vencor will lease the CT Scanner from General Electric for 44 months
with advance monthly payments of $10,934.72 plus applicable taxes, for a
total of approximately $481,127.68. Simultaneously, General Electric will
provide Vencor with a $55,000 trade-in allowance in return for the old CT
Scanner. The Trade-In allowance will compensate Vencor for the $55,000 cash
security deposit which Vencor will post at the inception of the CT Scanner
Lease, and which will be applied to the last five monthly payments under
the CT Scanner Lease.

The Debtors believe that the Trade-in Allowance is at least equal to the
fair market value of the Old CT Scanner and no higher offer could have been
received and the Trade-in is a good way to dispose of the obsolete Old CT
Scanner, especially when state certificate of need laws prohibit Vencor
from operating the Old CT Scanner once the new CT Scanner is in place. The
Debtors also tell Judge Walrath that by trading in the Old CT Scanner "as
is - where is," they have avoided the expense of disinstalling, packing,
transporting and storing this sensitive medical equipment.

The Debtors are convinced that the entry into the CT Scanner Lease and the
Trade-In of the old CT Scanner for the amounts and terms agreed represent
sound exercise of business judgment. The Debtors further submit that the
CT Scanner Lease and the Trade-In were negotiated at arms-length and in
good faith. (Vencor Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


VIDEO UPDATE: South Financial Charges-Off $3.4MM Balance of Loan
----------------------------------------------------------------
South Financial Group Inc., says that it will write-off a $3.4 million loan
extended to Minnesota-based Video Update Inc., according to a report
appearing in The American Banker.  Video Update filed for Chapter 11 on
Sept. 18.  South Financial's parent, Carolina First Bank says that the
charge-off is an outstanding balance of a loan to the bankrupt video
retailer.  "Relative to our other chargeoffs, this is a relatively high
level," South Financial's treasurer, Mary M. Gentry said, "But this is an
unusual loan for us."  Ms. Gentry refused to comment on how the charge-off
would affect the company's third quarter earnings.


WASTEMASTERS: Director Douglas Holsted Resigns Without Stating Reason
---------------------------------------------------------------------
On September 18, 2000, Douglas Holsted resigned as a director of
WasteMasters Inc. Mr. Holsted did not provide WasteMasters with a reason
for his resignation.

The resignation was submitted to Mr. Blaser, CEO of WasteMasters and read:
"Please accept this letter as my resignation from the Board of Directors
of WasteMasters, Inc. This in combination with my previous resignation as
an officer of the corporation ends my relationship with the Company in any
officer or director capacity."


WAXMAN INDUSTRIES: Sale of Interest in Barnett Raises $92.5 Million
-------------------------------------------------------------------
Waxman Industries, Inc. (OTC Bulletin Board: WAXX), a holding company for
businesses supplying specialty plumbing and other products to the U.S.
repair and remodeling market, reported it completed the sale of its
remaining interest in Barnett Inc. (Nasdaq: BNTT), raising approximately
$92.5 million, which is being utilized for the comprehensive financial
restructuring of the Company, including the reduction of debt. Earlier this
month, the Company sold 160,723 of its Barnett shares to Barnett, raising
$2.0 million.

The sale proceeds have been used to reduce the Company's bank facility by
approximately $11.0 million, to pay taxes, to redeem the remaining $35.9
million of Waxman USA's 11 1/8% Senior Notes (the ``Senior Notes'') and to
pay interest due on the Waxman Industries' 12 3/4% Deferred Coupon Notes
(the ``Deferred Coupon Notes''). The remaining net proceeds have been
placed in a segregated account, which will be used to satisfy all of the
$99.3 million of Deferred Coupon Notes. The completion of the Barnett Stock
sale was an integral element of the Debt Reduction Agreement entered into
in December 1999 by the Company and an Ad Hoc Committee representing the
holders of approximately 87% of its Deferred Coupon Notes and approximately
65% of the Senior Notes.

In order to more effectively complete the restructuring plan, and to cause
the remaining Deferred Coupon Note holders to accept the same discount as
the committee members, Waxman Industries Inc. will file a pre-negotiated
plan of reorganization with the Bankruptcy Court. This Plan was jointly
developed and will be jointly sponsored by the committee of Deferred Coupon
Note holders, the only impaired class of creditors. The Company believes
that the Joint Plan should proceed quickly because the holders of
approximately 97% of the Deferred Coupon Notes have voted in favor of the
Joint Plan. The Company expects to complete its Plan in calendar 2000.

The restructuring plan does not involve any of the Company's operating
subsidiaries, including Waxman Consumer Products Group, Medal of
Pennsylvania, Inc., WAMI Sales Inc., or the operations in Taiwan and China
(TWI and CWI). The operating subsidiaries, which have their own bank credit
facility, will continue to pay all of their trade creditors, employees and
other liabilities under normal trade conditions.


WAXMAN INDUSTRIES: Plumbing Supplier Files for Chapter 11 in Delaware
---------------------------------------------------------------------
Plumbing supplier, Reuters reports, Waxman Industries, Inc., filed for
bankruptcy protection under Chapter 11 on Oct. 2, listing assets of $33.5
million over debts of $103.1 million. The petition that was filed in U.S.
Bankruptcy Court in Delaware by the Bedford Heights, Ohio-based company had
a $92.8 million as its largest unsecured claim. Melvin, Armand and Laurence
Waxman; Credit Suisse Group unit, Credit Suisse First Boston, Pacific Asset
Management, and Herzog, Heine, Gedule, Inc., owns 5 percent each of the
company voting securities. Waxman will file a joint plan of reorganization
and will not include its subsidiaries, those in Taiwan and China.


WESTMORELAND COAL: Inks Deal to Buy Knife's Coal Operations for $28.8MM
-----------------------------------------------------------------------
Westmoreland Coal Company and Knife River Corporation, a subsidiary of MDU
Resources Group, Inc. reports that Westmoreland has agreed to acquire Knife
River Corporations' coal operations for $28.8 million in cash, excluding
final settlement cost adjustments, and other consideration. Closing of the
transaction is expected to occur by year-end and is subject to board
approval and other contingencies.

Included in the sale are active coal mines in North Dakota and Montana,
coal sales agreements, reserves, mining equipment and certain rights to
the inactive Gascoyne Mine in North Dakota. The operations produce
approximately 3 million tons of coal annually. Current Knife River coal
mining management and employees at the Beulah, North Dakota and Savage,
Montana locations will join Westmoreland.

The Beulah Mine near Beulah, ND supplies lignite under long-term contracts
to the nearby 427 MW Coyote Generating Station operated by Otter Tail Power
and the 100 MW Heskett Station, located near Mandan, ND approximately 74
miles from the mine, owned by Knife River affiliate, Montana-Dakota
Utilities. The Savage Mine located near Sidney, MT supplies the 50 MW
Lewis & Clark Station owned by MDU and an industrial facility owned by
Holly Sugar near Sidney, MT.

Christopher K. Seglem, Westmoreland Coal Company's Chairman, President and
CEO said, "This agreement reflects the on-going implementation of the
strategic plan we outlined to our shareholders in April. We look forward
to long, productive relationships with our employees and our customers, the
local and regional coal-fired generating plants and industrial customers
supplied by these mines. We also look forward to supporting the lignite
industry and communities where our operations are located. We see a bright
future for low cost, environmentally sound coal-fired energy production in
this region and we believe we are positioned well for future growth and
development. We believe these coal operations represent both immediate
value to our shareholders and strategic opportunities for the future."

"Knife River's coal mining roots go back to the early 1900s, so making the
decision to sell our coal operations was not easy," stated Terry D.
Hildestad, President and Chief Executive Officer of Knife River.

"However, with Knife River's growing construction materials operations
providing over 90 percent of Knife River's revenues and earnings, it is
prudent to concentrate on the construction materials operations and take
advantage of Westmoreland's interest in our coal operations. With a primary
focus on coal operations, Westmoreland is in a position to enhance the
long-term viability of the coal mines. We are pleased that we were able
to come to agreement on a deal that is beneficial to the employees of the
mines as well as to the stockholders of both MDU Resources and
Westmoreland."

Westmoreland Coal Company, headquartered in Colorado Springs, is the oldest
independent coal company in the United States. It is implementing a
strategic plan for expansion and growth through the acquisition and
development of opportunities in the changing energy marketplace. The
company recently announced reaching an agreement to acquire Montana Power's
coal business including operations in Montana and Texas. The company's
existing operations include Powder River Basin coal mining through its
80%-owned subsidiary Westmoreland Resources, Inc. and independent power
production through its wholly owned subsidiary Westmoreland Energy, Inc.
The company also holds a 20% interest in Dominion Terminal Associates, a
coal shipping and terminal facility in Newport News, Virginia.

Knife River Corporation, headquartered in Bismarck, North Dakota, mines and
markets aggregates and related value-added construction materials, products
and services in the western United States, including Alaska and Hawaii, and
also currently operates the Beulah, ND and Savage, MT lignite mines. Knife
River is a subsidiary of MDU Resources Group, Inc. MDU Resources provides
energy, value-added natural resource products and related services that
are essential to our country's energy, transportation and communication
infrastructure.

                                *********

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.


* Meetings, Conferences and Seminars
------------------------------------
October 17-18, 2000
     INTERNATIONAL WOMEN'S INSOLVENCY
     AND RESTRUCTURING CONFEDERATION
        Annual Fall Conference
           Somewhere in Boston, Massachusetts
              Contact: bostwick@sherin.com
   
November 2-6, 2000
     TURNAROUND MANAGEMENT ASSOCIATION
        Annual Conference
           Hyatt Regency, Baltimore, Maryland
              Contact: 312-822-9700 or info@turnaround.org

November 13-14, 2000
     FULCRUM INFORMATION SERVICES, INC.
        The 2nd Annual Lending To & Investing In
        Troubled Health Care Companies
           Loews New York Hotel, New York, New York
              Contact: 1-800-869-4302 or www.fulcruminfo.com

November 16-20, 2000
     COMMERCIAL LAW LEAGUE OF AMERICA
        80th Annual New York Conference
           Marriott World Trade Center, New York City
              Contact: CLLAmember@aol.com

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

January 9-14, 2001
     LAW EDUCATION INSTITUTE, INC.
        National CLE Conference on Bankruptcy Law
           Marriott, Vail, Colorado
              Contact: 1-800-926-5895 or www.lawedinstitute.com
     
February 22-23, 2001
     ALI-ABA
        Commercial Real Estate Defaults, Workouts,
        and Reorganizations
           Wyndham Palace Resort, Orlando
           (Walt Disney World), Florida
              Contact: 1-800-CLE-NEWS

February 25-28, 2001
      NORTON INSTITUTES ON BANKRUPTCY LAW
         Norton Bankruptcy Litigation Institute I
            Marriot Hotel, Park City, Utah
               Contact: 770-535-7722 or Nortoninst@aol.com

February 28-March 3, 2001
     TURNAROUND MANAGEMENT ASSOCIATION
        Spring Meeting
           Hotel del Coronado, San Diego, CA
              Contact: 312-822-9700 or info@turnaround.org

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

March 29-April 1, 2001
     NORTON INSTITUTES ON BANKRUPTCY LAW
        Norton Bankruptcy Litigation Institute II
           Flamingo Hilton; Las Vegas, Nevada
              Contact: 1-770-535-7722 or Nortoninst@aol.com

April 19-21, 2001
     ALI-ABA
        Fundamentals of Bankruptcy Law
           Some Hotel in San Francisco, California
              Contact: 1-800-CLE-NEWS

June 28-July 1, 2001
      NORTON INSTITUTES ON BANKRUPTCY LAW
         Western Mountains, Advanced Bankruptcy Law
            Jackson Lake Lodge, Jackson Hole, Wyoming
               Contact:  770-535-7722 or Nortoninst@aol.com

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

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

                                *********

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 * * *