TCR_Public/001006.MBX              T R O U B L E D   C O M P A N Y   R E P O R T E R

                 Friday, October 6, 2000, Vol. 4, No. 196
  
                                Headlines

AGRO PACIFIC: Posts Loss of $3.89 Million and Continues CCAA Restructuring
ALLIED PRODUCTS: Case Summary and 20 Largest Unsecured Creditors
BENEFIT LIFE: Texas Department of Insurance Places Firm into Receivership
BOLIDEN APIRSA: Commences Spanish 'Suspension de Pagos' Proceeding
CAMBIOR, INC.: President Cignac Intends to Complete Asset Sale By 2001

CLARIDGE HOTEL: Casino Commission to Ponder Icahn's $77MM Bid on Oct. 26
CONOR PACIFIC: $11M Debt Owed to Royal Bank Purchased by 157692 Canada
CROWN NORTHCORP: Undergoes Restructuring and Concentrates on Loan Servicing
DICKINSON THEATRES: Judge Robinson Grants Motion To Continue Operations
DIMAC CORPORATION: Preparing For Emergence from Chapter 11

DOBSON COMMUNICATIONS: 13% Preferred Stock Dividend Payable on November 1
DYNEX CAPITAL: California Investment Fund Signs $90MM Letter of Intent
FRUIT OF THE LOOM: Louisiana Employees Can File Class Proof of Claim
GENESIS/MULTICARE: Houlihan Retained Under Modified Terms to Placate UST
GLOBAL TISSUE: Asks Court to Fix November Claims Bar Date

HERCULES, INC.: Moodys Cuts Debt Ratings Noting Weak Operating Environment
ICG COMMUNICATIONS: Shareholders File Class Action Lawsuit
JITNEY JUNGLE: Monthly Results Show $8.1MM Loss on $132.6MM of Sales
KAISER GROUP: Extends Exchange Offer to October 12, 2000
LENOX HEALTHCARE: Obtains Extension of Exclusive Period through Sept. 29

LOEWEN GROUP: Repudiates Unprofitable D.C. Jewish Funeral Service Agreement
NATIONAL FINANCE: Mortgage Lender Says It'll Reopen Within Six Months
NEW VALLEY: States Sue for $8.6M of Unclaimed Pre-Petition Money Orders
OWENS CORNING: Files for Chapter 11 Protection in Wilmington, Delaware
PNC MORTGAGE: S&P Assigns Preliminary Ratings To $1.076 Bln Mortgage Certs

SAFETY-KLEEN: Seeks To Employ Zevnik Horton As Special Insurance Counsel
SUN HEALTHCARE: Andy Turner Faces Disloyalty and Conspiracy Accusations
VENCOR, INC.: Stipulation With Terminated Employee For Relief From Stay
WARNACO GROUP: Moody's Lowers Sr Implied Rating To B1 With Negative Outlook

* BOOK REVIEW: DEBTORS AND CREDITORS IN AMERICA: Insolvency, Imprisonment
                 for Debt, and Bankruptcy 1607-1900

                                *********

AGRO PACIFIC: Posts Loss of $3.89 Million and Continues CCAA Restructuring
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The financial statements for the third quarter ended July 31, 2000, reflect
the company's continuing restructuring process under the Companies'
Creditors Arrangement Act (CCAA).

Agro Pacific recorded a $3.89-million loss, or 51 cents per share, for the
nine-month period, although the loss for the third quarter($0.82-million)
was significantly reduced from that experienced in the second quarter
($1.67-million). Sales were $27.79-million for the quarter compared with
$28.36-million in 1999.

The sale of the crop products division to Terralink Horticulture Inc., a
company established by Triwest Capital Partners Inc. of Calgary, Alta., was
approved by the Supreme Court of British Columbia on Sept. 22, 2000, and is
due to close Oct. 2, 2000. Terralink proposes to continue supplying
fertilizer, seed and other crop products from Coast Agri Fertilizer in
Abbotsford; Richardson Seed in Burnaby; and South Valley Sales in Oliver
and Keremeos. The proceeds of sale will fully repay the operating line debt
to National Bank of Canada and significantly reduce the term debt to Bank
of Montreal.

The next phase of the restructuring plan is a process which will result in
new ownership of the feed division, either through its sale or by way of
fresh investment in Agro Pacific. The objectives of the board are to ensure
the continued operation of the mill as a supplier of quality livestock,
poultry and fish feed to producers in the Fraser Valley and elsewhere in
British Columbia, and to maximize the return to the various stakeholders.
Expressions of interest from a number of parties are being evaluated and it
is hoped that a viable proposal will be settled upon by early November,
2000.


ALLIED PRODUCTS: Case Summary and 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Allied Products Corporation
         1355 East 93rd Street
         Chicago, IL 60619

Type of Business: Manufacturing of large metal-stamping presses

Chapter 11 Petition Date:  October 2, 2000

Court: Northern District of Illinois

Bankruptcy Case No.: 00-28798

Judge: Eugene R. Wedoff

Debtor's Counsel: Melanie Rovner Cohen, Esq.
                   Altheimer & Gray
                   10 South Wacker Drive
                   Suite 4000
                   Chicago, IL 60606-7482
                   (312) 715-4000

Total Assets: $ 137,485,000
Total Debts : $ 61,423,000

20 Largest Unsecured Creditors:

High Production Technology LLC
368 West Elm Street
Wauseon, OH 43567
(419) 335-9230                       Trade Debt         $ 3,467,830

Unico Incorporated
3725 Nicholson Road
Franksville, WI 53126
(262) 886-5678                       Trade Debt         $ 1,138,170

Ray Hedding/Kim Kolb
Daimler Chrysler Corp.
800 Chrysler Drive
Auburn Hills, MI 48326
(248) 576-2955                       Chargebacks          $ 593,423

Belding Walbridge
1275 Aurora Lane
Aurora, IL 60504
(630) 906-6860                       Trade Debt           $ 538,294

Automatic Feed Company
476 East Riverview
Napoleon, OH 43545
(419) 592-0050                       Trade Debt           $ 489,795

Henry W. Coz
10 South Street
Box 282
Grafton, MA 01519                    Deferred
(508) 839-9741                        compensation        $ 450,000

Ingersoll Milling
707 Fulton Avenue
Rockford, IL 61103
(815) 987-6422                       Trade Debt           $ 392,710

Whittman-Hart L.P.
311 S. Wacker Drive
Chicago, IL 60606-6618               Computer
(312) 922-9200                        consulting          $ 310,305

Oilgear Company
2300 South 51 Street
Milwaukee, WI 53219
(414) 328-5341                       Trade Debt           $ 276,325

Horsburg & Scott Company
5114 Hamilton Avenue
Cleveland, OH 44114
(216) 431-3900                       Trade Debt           $ 272,250

Ritter Engineering Co.
4838 W. 128th Place
Alsip, IL 60803
(708) 371-2100                       Trade Debt           $ 263,599

BWX Technologies Inc.                Trade Debt           $ 241,133

Cook County Collector                Property taxes       $ 237,212

A.M. Castle & Co.                    Trade Debt           $ 222,383

Industrial Noise Control             Trade Debt           $ 217,549

Mary Alice Wheelcon                  Judgement debt       $ 210,988

Bantec Automation                    Trade Debt           $ 207,742

Crescent Electric Supply Co.         Trade Debt           $ 186,177

David R. Rubenstein                  Legal Services       $ 184,174

Collier, Shannon & Scott             Legal Services       $ 181,462


BENEFIT LIFE: Texas Department of Insurance Places Firm into Receivership
-------------------------------------------------------------------------
Standard & Poor's today revised its financial strength rating on Benefit
Life Insurance Co. to 'R' from triple-'Cpi' following an announcement by
the Texas Department of Insurance that the company has been placed in
court-ordered receivership.

Judge Jon Wisser of the 353rd District Court in Austin issued the order and
appointed Insurance Commissioner Jose Montemayor as permanent receiver of
Benefit Life. Judge Wisser entered the receivership order in response to a
petition filed by the state's Office of the Attorney General on behalf of
TDI. The state's receivership petition alleged that Benefit Life's
liabilities exceeded its assets by $2 million.

The company's policyholders are protected by the Texas Life, Accident,
Health and Hospital Service Guaranty Association up to the dollar limits
specified by Texas law -- $200,000 per person for health insurance claims,
$300,000 for life insurance death benefits and $100,000 for annuities and
life insurance cash values.

In assigning its 'CCCpi' rating, Standard and Poor's cited the company's
weak capitalization and liquidity levels, an irregular pattern of operating
earnings, high geographic and product line concentration, as well as a
risky investment portfolio.

An insurer rated 'R' is under regulatory supervision owing to its financial
condition. During the pendency of the regulatory supervision, the
regulators may have the power to favor one class of obligations over others
or pay some obligations and not others. The rating does not apply to
insurers subject only to nonfinancial actions such as market conduct
violations.


BOLIDEN APIRSA: Commences Spanish 'Suspension de Pagos' Proceeding
------------------------------------------------------------------
Boliden Apirsa SL, The Globe and Mail reports, filed for 'suspension de
pagos', a Spanish equivalent of a bankruptcy protection under Chapter 11 of
the U.S. Bankruptcy Code. The troubled Spanish mine, subsidiary of metal
producer Boliden Ltd., needs $26.3 million to continue operations on its
third mining pit. Boliden, based in Toronto and Stockholm, won't provide
Apirsa the money, which is a policy 'consistent with [Boliden's] recently
announced capital management program.' The program intends to lessen
production costs that has rocketed sky high. Apirsa will continue to mine
its second pit until the October completion, and would cease operations
unless it finds a buyer. 'The necessary capital expense to go into pit
three . . . that will take around a year of stripping and around $30-
million in costs to get there,' said Petter Traaholt, Toronto-based
executive vice-president and chief financial officer at Boliden.


CAMBIOR, INC.: President Cignac Intends to Complete Asset Sale By 2001
----------------------------------------------------------------------
Cambior Inc.'s President, Reuters reports, announced that the company will
have the completion of its asset sale by the end of next year, "All will be
targeted for completion by 2001." The gold mining company in Montreal races
to reduce its $225 million of debt. "There's no final offer on the table at
this stage and with everything that I've lived through in the last 12
months, until there's a firm offer on the table, it's not worth talking
about," President Louis Cignac told reporters at a Denver-based gold
industry show. After obtaining a one-month extension from its creditors to
submit its restructuring plan, it will reduce its debt to $85 million after
the sale.


CLARIDGE HOTEL: Casino Commission to Ponder Icahn's $77MM Bid on Oct. 26
------------------------------------------------------------------------
Park Place Entertainment Corp. (NYSE:PPE), Reuters reports, bids $ 77
million to acquire the bankrupt Claridge Hotel and Casino in Atlantic City.
Billionaire Carl Icahn, which owns Park Place, also has 42 percent stake on
Claridge. Icahn's attorney, Michael Viscount, Jr., Esq., has dismissed the
bid before, for the purchase will violate a New Jersey law prohibiting any
casino operator from controlling too much of the industry. The New Jersey
Casino Control Commission has set a hearing dated on Oct. 26 to consider
Park Place's bid for Claridge.


CONOR PACIFIC: $11M Debt Owed to Royal Bank Purchased by 157692 Canada
----------------------------------------------------------------------
Conor Pacific Environmental Technologies, Inc., announced  that 157692
Canada Inc., a private company, has now completed the purchase of
approximately $11 million of outstanding indebtedness owed by Conor Pacific
to the Royal Bank of Canada and Royal Bank Ventures Inc.  Terms of the
purchase were not disclosed. 157692 advised that funding for the purchase
of the royal Bank Indebtedness was provided by Van Maren Financial, certain
officers and directors and private investors. 157692 is controlled by
certain directors and officers of Conor Pacific.

Conor Pacific is currently in default of a number of provisions ofthe Royal
Bank Indebtedness. 157692 has agreed to forbear principal and interest for
the 60-day period expiring October 31, 2000. During this period, Conor
Pacific will attempt to reach a settlement or compromise with its unsecured
creditors regarding outstanding indebtedness. 157692 has advised that it
will consider extending the forbearance period if substantial progress has
been made by Conor Pacific in dealing with these matters. The continuing
business of Conor Pacific's subsidiaries, including Conor Pacific
Development Inc., Precision Sampling, EFW, Conor Pacific Construction
Limited Partnership and the Cayman companies will not be affected and will
not be required to restructure any of their arrangements with creditors,
lenders or suppliers. 157692 has advised that its present intention is to
recover a portion of the Royal Bank Indebtedness out of asset sales and
thereafter to convert a portion of the Royal Bank Indebtedness to equity in
Conor Pacific. Accordingly, Conor Pacific has begun negotiations with some
of its major unsecured creditors in an attempt to settle its outstanding
debt obligations. Conor Pacific believes this is the only way value can be
preserved for the benefit of all stakeholders.

Bob Nowack, Conor Pacific's Chairman and Chief Executive Officer, stated:
"The purchase of the Royal Bank Indebtedness by 157692 has provided Conor
Pacific with time to restructure its business. After a careful analysis,
Conor Pacific has concluded that considerable value is locked up in the
separate business units which has not been reflected in the overall
enterprise value. In addition, the combination of the consulting operations
with other business units has resulted in significant overhead expenses
being incurred, which are now in the process of being eliminated on a going
forward basis through the restructuring process. Consequently, Conor
Pacific is exiting the consulting business. Conor Pacific's future business
direction will focus on "real estate revitalization" (sometimes referred to
as "Brownfield development"), site remediation contracting, drilling and
technologies. The consulting assets are in the process of being sold along
with the company's Cayman interests. The proceeds from these sales will be
used to reduce indebtedness."

The restructuring plan has a clear objective. When complete, ConorPacific
wants to emerge from the process with a clean balance sheet. Each remaining
Conor subsidiary will be focused and operate on a stand-alone basis.
Conor Pacific is a provider of strategic and technical environmental
solutions. From offices across North America, we integrate technical
expertise, innovative technologies and business and risk management
solutions to add the greatest possible sustainable and economic value to
clients.


CROWN NORTHCORP: Undergoes Restructuring and Concentrates on Loan Servicing
---------------------------------------------------------------------------
Crown NorthCorp Inc. (OTCBB:ASET) announces a series of moves to
restructure its operations and concentrate its business on specialized loan
servicing activities.

The moves follow the recent decision of Lehman Brothers Holdings, which was
the company's largest customer, to consolidate all of its servicing
relationships in another company. As part of the restructuring, members of
senior management have resigned but are providing assistance to Crown
through a transitional period. The company has also implemented certain
other staff reductions and closed certain offices. Going forward, Crown
will operate through a servicing center in Austin, Texas and an
administrative office in Columbus.

Ronald E. Roark will now serve as chairman and chief executive officer of
Crown. In announcing the restructuring, Roark said, "The steps the company
is undertaking are designed to properly size the company to serve its
clients and to maximize the value of our loan servicing personnel and
systems. We believe this restructuring positions Crown to continue to
provide the specialized loan servicing for which it is known and to be
ready to provide expanded services as market or economic conditions
warrant."


DICKINSON THEATRES: Judge Robinson Grants Motion To Continue Operations
-----------------------------------------------------------------------
Bankruptcy Judge Julie Robinson gave her blessing to troubled Dickinson
Theatres, which recently filed for Chapter 11, to continue its operations,
The Kansas City Star reports. One of the motions that was included in the
approval was to free up money to pay workers and "critical vendors."
Attorney Paul Hoffman states that Judge Robinson, granted motions that was
vital for the company to operate, such as film distributors, concession
suppliers and utilities. Mission Bank will provide the company DIP
financing, if the motion will be granted by Judge Robinson.


DIMAC CORPORATION: Preparing For Emergence from Chapter 11
----------------------------------------------------------
DIMAC Corporation announced that it has filed its Disclosure Statement and
Plan of Reorganization with the U.S. Bankruptcy Court in Wilmington,
Delaware, setting the stage for the Company to formally emerge from Chapter
11. DIMAC and its subsidiaries filed voluntary petitions for reorganization
under Chapter 11 on April 6, 2000, and hope to emerge from Chapter 11 by
the end of the year.

Robert "Kam" Kamerschen, Chairman and Chief Executive Officer, commented:
"In April we voluntarily filed for Chapter 11 protection in order to
reorganize DIMAC's capital structure and operations to facilitate the
continued implementation of our revitalization plan.

"We have reached an important milestone in the recovery and revitalization
of the Company with the filing of our Plan of Reorganization. For this we
have our associates, our customers and our vendors to thank for continuing
to support us during this period.

"Over the past five months, we have enhanced the management team by hiring
key individuals to lead our businesses, taken advantage of opportunities to
consolidate operations, as well as improve profitability and the long-term
prospects for the Company. We made difficult, but necessary, decisions to
streamline the organization by deciding to place five of our non-core
businesses for sale, allowing the management team to focus on the four
remaining business units (DIMAC Direct, DMW Worldwide, MBS/Multimode and
Palm Coast Data), which fit strategically with our clear and compelling
vision. By recruiting key personnel to manage DIMAC at both the holding
company and subsidiary levels, we have solidified top-level leadership.
Further, our new organization will benefit from a 'keiretsu' effect,
through agreements recently signed with new partners.

"When we emerge, we not only will have significantly reduced the Company's
debt level but also improved our capital structure in a way that allows for
the Company's future growth. We will have also improved the operating
structure and practices of the business -- and effectively transformed it -
- into a healthier concern going forward. With this stronger balance sheet,
the Company will be well positioned to be a leader in the direct response
marketing services industry, which is a healthy climate for growth."

The Plan of Reorganization provides for an additional line of credit to be
extended to the Company by its lenders in the form of an eighteen-month
term loan, which will provide sufficient liquidity when the Company emerges
from Chapter 11. Upon confirmation, and after the sale of the non-core
businesses, the Company's total indebtedness will be reduced from
approximately $391 million to $107 million, subject to adjustment for the
actual proceeds of the sale of selected business units. Annual cash
interest expense will be lowered from over $39 million to approximately $9
million.

DIMAC Corporation provides a comprehensive range of integrated and
insightful direct response marketing solutions, which are supported by
creative strategy/agency services, database strategy/management services
and production services and products.


DOBSON COMMUNICATIONS: 13% Preferred Stock Dividend Payable on November 1
-------------------------------------------------------------------------
Dobson Communications Corporation (Nasdaq:DCEL)declared an in-kind dividend
on its outstanding 13% Senior Exchangeable Preferred Stock. The dividend
will be payable on November 1, 2000 to holders of record at the close of
business on October 15, 2000.

Holders of shares of 13% Senior Exchangeable Preferred Stock will receive
0.03322 additional shares of 13% Senior Exchangeable Preferred Stock for
each share held on the record date. The dividend covers the period August
1, 2000 through October 31, 2000. The dividends have an annual rate of 13%
on the $1,000 per share liquidation preference value of the preferred
stock.

Dobson Communications is a leading provider of cellular phone services to
rural markets in the United States. Headquartered in Oklahoma City, the
rapidly growing Company owns or manages wireless operations in 18 states.
For the year ended December 31, 1999, Dobson reported total revenues of
$359.3 million;

EBITDA of $137.9 million; and a net loss of $127.6 million, which included
a loss from discontinued operations and extraordinary expense.


DYNEX CAPITAL: California Investment Fund Signs $90MM Letter of Intent
----------------------------------------------------------------------
California Investment Fund, LLC (CIF), a private real estate company
headquartered in San Diego, California, announced that it has signed a
letter of intent with Dynex Capital, Inc. (NYSE: DX), a Virginia-based
mortgage lending institution, with respect to CIF's proposed acquisition of
100% of the equity of Dynex for a purchase price of $90 million in cash.
CIF currently owns 572,178 shares of the common stock of Dynex,
approximately 5% of the outstanding shares.

The letter of intent provides for a three-week period of exclusivity during
which Dynex will not directly or indirectly engage in or facilitate
discussions or negotiations with any third party concerning an alternative
acquisition transaction. During this period, CIF will also use its best
efforts to obtain necessary financing commitments on terms reasonably
satisfactory to CIF to consummate the acquisition.

Consummation of the proposed transaction is subject to execution of a
definitive merger agreement and to a number of customary conditions.
In connection with the execution of the letter of intent, CIF amended its
Schedule 13D. Additional information regarding the letter of intent can be
found in such amended Schedule 13D.

In the September 27, 2000, edition of the Troubled Company Reporter, we
reported that Dynex Capital, Inc., may follow the path of other finance
firms filing for bankruptcy. At that time, President Thomas H. Potts said
"the company has short-term credit obligations, and even though we're not
in default, we're still on a very short fuse."

California Investment Fund, LLC is a real estate investment company that is
a subsidiary of First Commercial Corporation. First Commercial, a private
real estate investment company based in San Diego, California, is focused
on the acquisition of whole loans and whole loan portfolios secured by
commercial real estate. Founded in 1993 by Michael and Richard Kelly, First
Commercial Corporation specializes in the commercial real estate secondary
market.

Dynex Capital, Inc. is a financial services company that elects to be
treated as a real estate investment trust (REIT) for federal income tax
purposes.


FRUIT OF THE LOOM: Louisiana Employees Can File Class Proof of Claim
--------------------------------------------------------------------
Fruit of the Loom's Martin Mills subsidiary owned four manufacturing
facilities in Louisiana towns of St. Martinville, Abbeville, Jeanrette and
Port Barre. 4,960 employees that were terminated from these facilities
filed lawsuits claiming they were owed vacation benefits, penalty wages,
interest and attorney's fees. Fruit of the Loom distributed $701,943.41 to
the affected employees and held this was sufficient.

In the summer of 1999, Starlet Augustine, et al., Jill Broussard, et al.,
Mary Boutte, et al., and Nedra Andrus, et al., initiated four separate
class action suits against Martin Mills. The Plaintiffs' attorneys engaged
in discovery and asserted that their clients' cases were meritorious and
stood a considerable chance of success in Court. On October 12, 1999, Fruit
of the Loom settled all claims for $7,429,500. The settlement agreement was
signed by class attorney Patrick Wartelle, Esq., of Roy, Bivins, Judice &
Henke, FTL attorney Howard Shapiro, Esq., of McCalla, Thompson, Pyburn &
Hymowitz, and mediator Ronald J. Sholes, Esq., of Adams & Reese. Fruit of
the Loom agreed to post a security bond on or before December 1, 1999 in
the amount specified. On November 22, 1999, Judge Charles Porter certified
the class for settlement purposes. Fruit of the Loom filed for bankruptcy
on December 29, 1999. Fruit of the Loom did not admit to liability but
settled to avoid costly and protracted litigation.

Robert S. Goldman, Esq., of Phillips, Goldman & Spence, asks the Court for
an order allowing the plaintiffs to file a class proof of claim pursuant to
Rule 7023 of the Federal Rules of Bankruptcy Procedure. The claims will be
filed by Mr. Wartelle, as class counsel.

Receiving no objection to the request, Judge Walsh granted the Motion in
all respects. (Fruit of the Loom Bankruptcy News, Issue No. 13; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


GENESIS/MULTICARE: Houlihan Retained Under Modified Terms to Placate UST
------------------------------------------------------------------------
Judge Walsh authorized the employment and retention of Houlihan Lockey
Howard & Zukin, Financial Advisors, Inc., as Financial Advisors to the
Official Committee of Unsecured Creditors of Genesis Health Ventures, Inc.,
nunc pro tunc to July 11, 2000.

With respect to Houlihan Lokey's fees and expenses, Judge Walsh entertained
the query made by the United States Trustee and makes it clear that
notwithstanding anything contrary contained in the Retention Letter, the
fees and expenses will be subject to the Court's approval in accordance
with the applicable provisions of the Bankruptcy Code and Bankruptcy Rules.
Judge Walsh authorized the Transaction Fee, provided that in the event of
an objection, the appropriateness of such fee will be determined by the
Court de novo. In the event the Debtors pay Houlihan Lokey any fees that
are subsequently not approved by the Court, Houlihan Lokey will have to
promptly any such fees to the Debtors.

The Debtors are also authorized to provide indemnification to Houlihan
subject to certain conditions, but Judge Walsh makes it clear that such
indemnification is for any claim arising from or in connection with the
financial advisory services described in the Retention Agreement, but not
for other services unless such services are approved by the Court. The
court order also expressly specifies that such indemnification is not for
any claim or expense arising from Houlihan Lokey's gross negligence or
willful misconduct, or any claim settled prior to a judicial determination
of such gross negligence or willful misconduct. Moreover, such
indemnification during the Debtors' chapter 11 cases is subject to prior
application by Houlihan and subject to the Court's approval.

Judge Walsh also makes it clear that the language in the order will not
set a precedent concerning any other financial advisor's engagement in
these cases or others. (Genesis/Multicare Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


GLOBAL TISSUE: Asks Court to Fix November Claims Bar Date
---------------------------------------------------------
Global Tissue LLC, by and through its counsel, Saul, Ewing, Remick & Saul
LLP seeks entry of an order establishing November 6, 2000 at 4:00 PM as the
last day by which all creditors of the debtor must file a proof of claim in
the debtor's chapter 11 case.

On September 5, 2000, as previously reported in the Troubled Company
Reporter, the Bankruptcy Court, District of Delaware entered an order
approving the sale of substantially all of the debtor's assets to
American Tissue Mills of Tennessee, LLC and such sale closed on September
25, 2000. As the sale of the debtor's assets to ATM has been completed,
the debtor anticipates that its case will move promptly toward a successful
conclusion through a liquidating plan of reorganization.


HERCULES, INC.: Moodys Cuts Debt Ratings Noting Weak Operating Environment
--------------------------------------------------------------------------
Moody's Investors Service downgraded the long term debt ratings of Hercules
Incorporated (senior unsecured at Ba1) due to continuing weakness in the
company's financial profile, as a result of a difficult operating
environment, and delays in completing planned asset sales. Moody's believes
that despite significant efforts by management to improve its financial
profile over the past year, the company will be unable to reduce debt and
improve debt protection measurements to investment grade levels within the
next two years.

Ratings downgraded:

    A) Hercules Incorporated - senior unsecured debt, term loan and
                                revolving credit facilities to Ba1 from
                                Baa3;
                             - junior subordinated debentures at Ba3 from
                                Ba2;
                             - senior unsecured shelf to (P)Ba1 from (P)Baa3

    B) Hercules Trust I - preferred Stock to "ba3" from "ba2"

    C) Hercules Trust II - preferred Stock to "ba3" from "ba2"

    D) Hercules Trust VI - preferred Stock to "ba3" from "ba2"

    E) Hercules Trust III - preferred Stock to (P)"ba3" from (P)"ba2"

    F) Hercules Trust IV - preferred Stock to (P)"ba3" from (P)"ba2"

Ratings issued:

    A) Hercules Incorporated - senior implied rating at Ba1;
                             - senior unsecured issuer rating at Ba1

Hercules Ba1 senior unsecured debt ratings are supported by the company's
leading positions in paper and water treatment chemicals and specialty
resins, which until recently have generated among the highest margins in
the specialty chemicals industry. In 1999 and 2000, operating performance
has been adversely impacted by aggressive price competition in water
treatment chemicals and related services, customer consolidation in the
paper industry and a weak Euro. While operating performance is not likely
to deteriorate further, continuing weakness in the Euro and consolidation
in the paper industry will limit improvement in the financial profile over
the near-term.

Hercules' balance sheet remains stressed due to debt incurred in the
acquisition of BetzDearborn in 1998 and operating performance that has
remained well below previously anticipated levels. While the company has
been able to generate over $165 million of synergies from the acquisition,
these savings have failed to offset declines in operating profits due to
the adverse business environment. Furthermore, the divestiture of
businesses, announced earlier this year, will likely take longer than
initially expected.

Hercules has already received proceeds from the partial sale of the food
gums business and will likely complete the sale of the hydrocarbon resins
business to Eastman chemical before year-end. These divestitures will
enable the company to reduce debt by over $550 million by year-end. In
addition, the company has recently reduced its dividend by roughly $80
million to increase free-cash flow. The divestiture of FiberVisions has
been delayed due to a difficult operating environment and the startup of
new production capacity. Several smaller business divestitures, previously
part of the resins business, will likely occur over the next 6-12 months.
However, proceeds from the smaller divestitures will not significantly
improve the credit profile.

The combination of a weak operating environment and delays in reducing debt
through asset divestitures will leave the company credit profile stressed
over the near- to intermediate term. While Hercules has not violated the
covenants in its credit agreement, management is in the process of
renegotiating their bank agreement to provide more financial flexibility.
The Ba1 ratings on Hercules senior unsecured debt anticipate that these
bonds will remain pari passu with the credit facilities. If significant
changes to the terms of the credit facility are made that would materially
impact existing bondholders, we would notch the senior unsecured ratings
accordingly.

As a result of the reduction in debt from asset sales and the loss of
earnings from divested businesses, we anticipate that interest coverage
will remain above 1.5 times (1.7 times excluding goodwill amortization) and
that cash flow from operations as a percentage of total debt (including
preferred securities) will rise above 10%. Hercules will benefit from the
lower capex required to support the remaining businesses, increasing free
cash flow as a percentage of total debt (including preferred securities) to
over 5%. The outlook on the ratings is stable.

The recent investment by in Hercules stock by International Specialty
Products (Ba1) raises the level of event risk at Hercules over the next 12
- 18 months. However, the potential sale of Hercules may not necessarily
exert negative pressure on the ratings due to the number of higher rated
chemical companies that would be interested in acquiring the company, or
one of its business units.

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


ICG COMMUNICATIONS: Shareholders File Class Action Lawsuit
----------------------------------------------------------
Weinstein Kitchenoff Scarlato & Goldman Ltd. announces that a class action
lawsuit has been commenced on behalf of investors who purchased shares of
the common stock of ICG Communications, Inc. (Nasdaq: ICGX) between
December 20, 1999 and September 18, 2000.  The action was filed in the
United States District Court for the District of Colorado against ICGX, its
former Chairman and CEO, J. Shelby Bryan, and its former president, John
Kane.

Plaintiff alleges that defendants violated the federal securities laws by
issuing materially false and misleading statements about the state of
ICGX's business, specifically regarding ICGX's customer service record, and
the impact undisclosed customer service problems would have on ICGX's
future results and ability to raise capital. Plaintiff further alleges that
the price of ICGX's common stock was artificially inflated during the Class
Period by the false and misleading statements.

If you are interested in learning more about the action or the role of a
Lead Plaintiff, please contact Paul Scarlato, Esquire or Mark Goldman,
Esquire toll free at (888) 545-7201 or by e-mail at pscarlato@wksg.com or
msgoldman@wksg.com.


JITNEY JUNGLE: Monthly Results Show $8.1MM Loss on $132.6MM of Sales
--------------------------------------------------------------------
For the monthly period ended August 12, 2000 (Period 8), Jitney Jungle
(Jackson, MS) showed a loss of $8.1 million on sales of $132.6. From the
report, this week's edition of F&D Reports' Scrambled Eggs publication
reports, it appears the Company is receiving credit terms from
approximately $26.6 million of trade vendors, of which we estimate $20
million to $24 million are from vendors in the Company's Secured Trade
Program. The next payment on Allowed Reclamation Claims to participants in
the Program is the 12.5% payment due in early November, which the Company
expects to make on a timely basis. During Period 8, the Company reported
its excess availability ranged from a low of $2.4 million to a high of
$13.5 million, F&D adds.


KAISER GROUP: Extends Exchange Offer to October 12, 2000
--------------------------------------------------------
Kaiser Government Programs, Inc., a subsidiary of Kaiser Group
International, Inc. (OTC Bulletin Board: KSRG), announced that it has
extended to 5:00 p.m. eastern time on Thursday, October 12, 2000 the
expiration date of its exchange offer of guarantee rights for put rights
relating to Kaiser Group International, Inc.'s $125 million, 12% Senior
Subordinated Notes due 2003.

Kaiser Group filed for bankruptcy protection under Chapter 11 in the
District of Delaware on June 9. The company listed assets amounting to $82  
million and debts of $146 million. Headquartered in Fairfax, Virginia,
Kaiser Group International is one of the United States' leading providers
of engineering, project management, construction management, and program
management services. Its more than 3,000 employees, located in 30 offices
around the world, serve the market areas of transit and transportation;
alumina/aluminum and mining/minerals; facilities and water/wastewater; iron
and steel; and microelectronics and clean technology. Kaiser Group
International, Inc., the parent company of Kaiser Engineers, reported gross
revenue of more than $870 million for the 12 months ended December 31,
1999. All references to Kaiser indicate Kaiser Group International, Inc.
and any of its subsidiaries.


LENOX HEALTHCARE: Obtains Extension of Exclusive Period through Sept. 29
------------------------------------------------------------------------
By order entered on September 13, 2000, the US Bankruptcy Court for the
District of Delaware entered an order further extending the exclusive
periods during which the debtors may file one or more reorganization plans
and solicit acceptances of such plans. The plan proposal period is
extended througth and including September 29, 2000. The Solicitation
period is extended through and including November 30, 2000.


LOEWEN GROUP: Repudiates Unprofitable D.C. Jewish Funeral Service Agreement
---------------------------------------------------------------------------
Loewen Group International, Inc., entered into an agreement with Jewish
Funeral Practices Committee of Greater Washington in 1998 under which the
Debtors agreed to provide funerals and related goods and services for
Jewish congregations and their members in the Washington, D.C. area. Under
the Agreement, LGII collects $895 when it performs a religious or funeral
service and $725 when no service is performed or a body is transported to a
non-Loewen funeral director. Services are provided by Ives-Pearson Funeral
Homes in Falls Church and Arlington, Virginia; Takoma Funeral Home in
Washington, D.C.; and Jefferson Funeral Home in Alexandria, Virginia. The
$895 package includes pick-up within a 40-mile radius of the Washington
Beltway, securing a death certificate, refrigeration as required, an all-
pine rectangular casket, 24-hour access for ritual washing, a muslin
shroud, a custom table, use of chapel facilities, transportation to the
funeral and burial site, all customary paperwork, a guest register and
acknowledgment cards, and one shiva candle.

The Agreement is up for renewal this year, increasing the service fees to
$939 and $761. LGII concludes thhat the burden of continued performance
under the JFPCGW Agreement exceeds the benefits to the Debtors' estates.
LGII says that its costs exceed revenues, cost-cutting is impossible, and
LGII projects future losses under the Agreement. Accordingly, the Debtors
sought and obtained authority from Judge Walsh, pursuant to 11 U.S.C. Sec.
365, to reject the JFPCGW Agreement in all respects without further delay.
(Loewen Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service, Inc.,
609/392-0900)


NATIONAL FINANCE: Mortgage Lender Says It'll Reopen Within Six Months
---------------------------------------------------------------------
President Tony Fisher of National Finance Corp., has been negotiating with
possible investors to provide them with financing to reopen in 6 months,
The Tribune Business News reports. National Finance, which recently filed a
motion to dismiss an involuntary Chapter 7, will use the money to restart
operations and pay its $15 million of debt. Although during press time, no
specifics were mentioned as to who were the potential investors that would
likely help the struggling mortgage lender.


NEW VALLEY: States Sue for $8.6M of Unclaimed Pre-Petition Money Orders
-----------------------------------------------------------------------
Pennsylvania and 42 other states filed suit to force the former issuer of
Western Union money orders to return $8.6 million in uncashed money orders,
State Treasurer Barbara Hafer announced.

"Money orders are frequently used by people who are unable to open bank
accounts or are sending money to relatives in distant places," Hafer said.
"When the money orders go uncashed, the company issuing them has an
obligation to return the money to the purchaser or payee."

The lawsuit was filed in U.S. Bankruptcy Court in New Jersey, against New
Valley Corp. of Miami, FL. It alleges New Valley Corp. failed to notify
more than 31,000 purchasers or payees of $8.6 million in unclaimed money
orders prior to the company's restructuring in a bankruptcy case in Nov.
1991.

The Federal Bankruptcy Code requires the corporation to make a reasonably
diligent effort to ascertain the identity of persons to whom it owed money,
and to give them notice of their claim. Although New Valley has records
with information regarding the senders and the recipients, the company made
no effort whatsoever to determine who was entitled to the unclaimed money
transfers, Hafer charged. And in a general notice to all creditors, New
Valley made no mention whatsoever of the $8.6 million unclaimed money
transfers, Hafer added.

Property that remains unclaimed for seven years is deemed unclaimed
property under state law and should be returned to the states. Because New
Valley never served actual notice of the bankruptcy upon the parties
entitled to unpaid money transfers, it should pay either the money order
payee or purchaser, or the states so they can find the owners, Hafer noted.
The bankruptcy does not free the company from its obligations, the lawsuit
claimed.

"We are asking the Bankruptcy Court to rule that New Valley Corporation
remains obligated to pay the sum due on the money transfers," Hafer said.
"Our ultimate goal is to return the money to the 31,000 individuals to whom
it belongs."


OWENS CORNING: Files for Chapter 11 Protection in Wilmington, Delaware
----------------------------------------------------------------------
Debtor: OWENS CORNING, et al.
         One Owens Corning Parkway
         Toledo, Ohio 43659

Type of Business: Owens Corning, a global company incorporated in Delaware
                   in 1938, serves consumers and industrial customers with
                   building materials systems and composites systems. Owens
                   Corning products are used in such varied applications as
                   residential remodeling and repair, commercial          
                   improvement, new residential and commercial
                   construction, building construction, and automotive,
                   telecommunications, marine, aerospace, energy,
                   appliance, packaging and electronics manufacturing.

Chapter 11 Petition Date: October 5, 2000

Court: District of Delaware

Bankruptcy Case No.: 00-03837

Judge: Mary F. Walrath

Debtor's Counsel: Mark S. Chehi
                   Skadden,Arps,Slate,Meagher & Flom
                   One Rodney Square, P.O. Box 636
                   Wilmington, DE 19899-0636
                   (302) 651-3000

Total Assets: $ 6.988 Billion
Total Debts : $ 5.710 Billion

This morning, Bankruptcy Creditors' Service, Inc., announced publication of
OWENS CORNING BANKRUPTCY NEWS.  Pick-up a free copy of the first issue of
the newsletter, providing additional details about Owen Corning's chapter
11 filings, at http://bankrupt.com/owenscorning.txt


PNC MORTGAGE: S&P Assigns Preliminary Ratings To $1.076 Bln Mortgage Certs
--------------------------------------------------------------------------
Standard & Poor's today assigned its preliminary ratings to PNC Mortgage
Acceptance Corp.'s $1.076 billion commercial mortgage pass-through
certificates series 2000-C2.

The preliminary ratings are based on information as of Oct. 4, 2000.
Subsequent information may result in the assignment of final ratings that
differ from the preliminary ratings.

The preliminary ratings reflect the credit support provided by the
subordinate classes of certificates, the liquidity provided by the trustee,
the economics of the underlying loans, and the geographic and property type
diversity of the loans. Standard & Poor's analysis determined that, on a
weighted average basis, the pool has a debt service coverage ratio of 1.30
times, a beginning loan-to-value ratio (LTV) of 87.0%, and an ending LTV of
76.3%.

A copy of Standard & Poor's complete presale report for this transaction is
available on RatingsDirect, Standard & Poor's Web-based credit analysis
system, at www.ratingsdirect.com. The report is also available on Standard
& Poor's Ratings Services Web site at www.standardandpoors.com/ratings.
Under Presale Reports, select Structured Finance, then Commercial Mortgage-
Backed Securities, Standard & Poor's said.--CreditWire

PRELIMINARY RATINGS ASSIGNED

Class          Rating           Amount ($000s)
A-1            AAA              200,612
A-2            AAA              620,057
X(1)(2)        AAA              1,076,288
B              AA               43,052
C              A                48,433
D              A-               13,453
E(2)           BBB+             13,454
F(2)           BBB              18,835
G(2)           BBB-             16,144
H(2)           BB+              18,836
J(2)           BB               29,597
K(2)           BB-              8,073
L(2)           B+               8,072
M(2)           B                10,763
N(2)           B-               5,381
(2)           N/A              21,526

(1) Interest only.

(2) Privately placed in accordance with rule 144A of the Securities
     Act of 1933.


SAFETY-KLEEN: Seeks To Employ Zevnik Horton As Special Insurance Counsel
------------------------------------------------------------------------
Safety-Kleen Corp. applies to retain, pursuant to 11 U.S.C Secs. 327(e) and
329, Zevnik, Horton, Guibord, McGovern, Palmer & Fognani, L.L.P., as
special insurance litigation counsel to represent the Company in connection
with:

    (a) Recovery efforts related to the insurance recovery project for non-
        product-liability environmental, toxic tort and similar or related
        claims, losses and liabilities; and

    (b) Recovery efforts related to the insurance recovery project for
        product liability toxic tort and similar or related claims, losses
        and liabilities, including:

        (1) analysis and advice in connection with SKC's solvent-related
            product liability suits, claims and losses, and

        (2) efforts to collect from various insurance carriers sums owed to
            SKC under various insurance contracts as a result of sums paid
            or incurred by SKC in connection with product liability toxic
            tort and similar or related claims, losses and liabilities.

Gregory M. Cork, Esq., a member of Zevnik Horton, leads the engagement from
the Firm's Washington, D.C., office.

For the Solvent Product Liability Insurance Recovery Project, Zevnik Horton
will seek compensation for the services of each attorney and
paraprofessional acting on behalf of the Debtors in these chapter 11 cases
at their customary hourly rates:

         Paul A. Zevnik                 $350
         Jonathan L. Osborne            $300
         Michael John Miguel            $275
         John W. Roberts                $275
         James Schad                    $150
         E. Tracy Brown                 $150

However, should settlement efforts with certain American International
Group member insurance carriers, including The Insurance Company of the
State of Pennsylvania, concerning certain product liability toxic tort
litigation be unsuccessful, or should SKC otherwise determine that the
insurance recovery aspects of the Solvent Product Liability Insurance
Recovery Project may be resolved only through litigation and should SKC
further determine that it prefers a contingent or risk-based fee
arrangement, rather than a fee arrangement based solely on hours expended,
then, upon commencement of said litigation and election by SKC, in
conjunction with the solvent product liability insurance recovery project
(i) Zevnik Horton will expect payment only for its expenses and
disbursements, and (ii) legal fees will be payable only in the event SKC
receives a solvent-related product liability insurance recovery in which
case the contingent fee percentage of "recoveries" is 12.5%.

In connection with the Environmental Insurance Recovery Project, legal fees
are payable only in the event SKC receives an environmental insurance
recovery in which case the contingent fee percentage of "recoveries" is
6.25%.

Anticipating resistance to the contingency fee arrangements by the United
States Trustee or some other party-in-interest, David S. Kurtz, Esq., and
J. Gregory St. Clair, Esq., of Skadden, Arps, Slate, Meagher & Flom LLP,
remind the Court that Section 328 of the Bankruptcy Code provides that a
debtor-in-possession may employ a professional person "on any reasonable
terms and conditions of employment, including on a retainer, on an hourly
basis, or on a contingent fee basis." Messrs. Kurtz and St. Clair direct
Judge Walsh's attention to In re Malcon Developers, Inc., 138 B.R. 677
(Bankr. N.D.N.Y. 1992) (permissibility of contingent fee arrangements is
"clearly and unambiguously spelled out" by Bankruptcy Code Sec. 328(a)); In
re Benassi, 72 B.R. 44, 47 (D. Minn. 1987) (noting that section 328(a)
reflects Congressional policy of enabling debtors to obtain competent and
efficient representation). As bankruptcy courts have frequently
recognized, Messrs. Kurtz and St. Clair continue, contingent fee
arrangements are particularly appropriate where it is necessary for the
professional to bear the risk of an adverse result, and where it is
unlikely that any professionals would be willing to be retained in the
absence of a contingent fee arrangement. See Malcon Developers at 680
(noting that where attorney assumed significant financial risk in order to
represent debtor, contingent fee was appropriate). In addition, where a
contingent fee arrangement is approved in advance as fair and reasonable,
it is not necessary that the court perform a quantum meruit or lodestar
analysis prior to awarding the professional its fees. See, e.g., In re
Ross, 94 B.R. 210 (M.D. Ga. 1988) (holding that bankruptcy court erred in
denying attorney contingent fees based on fact that litigation concluded
more quickly then expected; noting that reasonableness of contingent fee is
determined as of the time of retention). (Safety-Kleen Bankruptcy News,
Issue No. 7; Bankruptcy Creditors' Service, Inc., 609/392-0900)


SUN HEALTHCARE: Andy Turner Faces Disloyalty and Conspiracy Accusations
-----------------------------------------------------------------------
Former Chairman and founder, Andrew Turner currently faces disloyalty and
conspiracy accusations from Sun Healthcare Group, The Associated Press
reports. Sun pleaded the bankruptcy judge for Turner not to use former Sun
employees to man his new therapeutic company, EduraCare LLC. Sun also wants
Turner and other employees now working in EduraCare to give back workpay
they got during the forming of EduraCare.

Turner, which got his resignation approved last Aug., conspired with
corporate officers of Sundance Rehabilitation Corp., a Sun Healthcare
subsidiary. The complaint named the executives as president David Kniess of
Plano, Texas; a vice president, Tom Mack of Avon, Conn.; and another vice
president, Gary McGuire of Castle Rock, Colo. Sun Healthcare filed for
bankruptcy protection under Chapter 11 last year.


VENCOR, INC.: Stipulation With Terminated Employee For Relief From Stay
-----------------------------------------------------------------------
The Debtors consent to modification of the automatic stay to permit
Pauletta Lawson to continue prosecution of her lawsuit entitled Pauletta
Lawson v. Vencor Hospital California, Inc. et al., (Case No. BC 140757),
pending before the Superior Court of the State of California for the
County of Los Angeles seeking damages for alleged wrongful termination and
breach of contract. With respect to Defendant Vencor, the modification of
stay is limited to the purpose and effect of liquidating Ms. Lawson's
claims and not for the purpose of enforcing a judgment or collection, if
any. (Vencor Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


WARNACO GROUP: Moody's Lowers Sr Implied Rating To B1 With Negative Outlook
---------------------------------------------------------------------------
Moody's Investors Service lowered the senior implied rating of The Warnaco
Group, Inc. to B1 from Ba2. In addition, Moody's withdrew the Ba2 rating on
the company's $600 million guaranteed unsecured revolving credit facility
due 2002, which the company's management has stated will become part of a
$2.56 billion secured financing facility. The rating outlook is negative.

The affected ratings are:

    a) The Warnaco Group Inc. -- Senior Implied Rating to B1 from Ba2;
                              -- Senior Unsecured Issuer Rating to B2 from
                                  Ba3.

    b) Designer Holdings, Ltd. -- $120 million issue of 6% Convertible
                                   Subordinated Debentures due 2016, to Caa1
                                   from B2.

    c) Designer Finance Trust -- $120 million issue of 6% Convertible Trust
                                  Preferred Securities due 2016, to "caa1"
                                  from "b2".

Moody's downgrade follows the company's press release of September 29,
2000, which includes a revised earnings outlook for the fiscal year 2000,
as well as anticipated third quarter after-tax charges.

Headquartered in New York, The Warnaco Group is a major designer,
manufacturer, and marketer of women's intimate apparel, menswear and
accessories and designer jeans and jeans related sportswear for men, women,
juniors and children under a variety of brand names.


* BOOK REVIEW: DEBTORS AND CREDITORS IN AMERICA: Insolvency, Imprisonment
                 for Debt, and Bankruptcy 1607-1900
-------------------------------------------------------------------------
Author: Peter J. Coleman
Publisher: Beard Books
Softcover: 303 Pages
List Price: $34.95
Order a copy today from Amazon.com at
http://www.amazon.com/exec/obidos/ASIN/189312214X/internetbankrupt

Review by Susan Pannell

Suppose that, three hundred or so years ago, you were in urgent need of a
pig. But you couldn't afford the pig, so you purchased it one credit. (Yes,
there was credit in the woodsy days of this country; it wasn't strictly a
cash and barter economy.) Some tie later, the pig having served the purpose
for which it was intended and hence being no longer recoverable, and you
not being the winner of the lottery you'd relied upon to pay your debt, the
creditor seeks satisfaction.

He could proceed against you in a couple of different ways, but either way,
assuming you still hadn't won that lottery, you went to jail. And there you
rotted, unless you had the means to buy your way out, in which case you
wouldn't be there in the first place. In a notorious perversion of logic, a
debtor, like any prisoner, was expected to feed and clothe himself while
incarcerated. A pauper's grave--the so-called potter's field--awaited the
debtor who died in prison. It could have been worse: under ancient Roman
law, creditors were entitled to chunks of your actual body and--sorry, Will
Shakespeare there was no penalty for hacking off a disproportionate slice.

What changed this nefarious system? Not sentiment (at least not primarily),
but hard economic facts.  For one thing, it was an ineffective arrangement.
The creditor derived malicious satisfaction from watching his debtor fade
away in prison, but that didn't satisfy the debt. For another thing, the
colonies suffered a chronic people shortage. They  needed laborers and
militiamen. Society couldn't afford to lose the prisoner's labor or his
ability to shoulder a musket and defend against Indian attacks. Nor could
society afford to support the innocent wife and children "perishing with
Hunger & Cold" (here's where sentiment entered into the equation).

The system began to be modified in various ways. For some categories of
debtors, commonly single men who owed little, some colonies substituted
indentured service for imprisonment. Another modification, applicable to
petty debts, provided a release from prison and immunity from rearrest if
the debtor swore he was impoverished--presumably a more effective deterrent
centuries ago when there was true shame associated with being a deadbeat. A
third modification put clothing, furniture, eating utensils, and tools
beyond the reach of attachment.

None of this was of any help to the larger defaulters, the businessmen, and
it was for their benefit (economic necessity, again) that colonial
bankruptcy laws began to evolve. Interestingly, the colonies preferred
voluntary proceedings, giving the right of action to the insolvent, in
contrast to English bankruptcy practice, which sided with the creditor.  
Development of bankruptcy relief was by no means smooth as, predictably,
many stern and rockbound colonists took a moral stance against it.
Complicating matters was the requirement that, until the Revolution, a
debtor relief law, like any colonial legislation, had to be approved by the
Crown, in this case the Board of Trade.

The author provides a painstaking region-by-region analysis of the
development of bankruptcy law, and sums up all the history in a concluding
chapter.

Peter J. Coleman, J.D., Ph.D., is Emeritus Professor of History
University of Illinois at Chicago


                                *********

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

A list of Meetings, Conferences and Seminars appears in each Wednesday's
edition of the TCR. Submissions about insolvency-related conferences are
encouraged. Send announcements to conferences@bankrupt.com.

Each Friday's edition of the TCR includes a review about a book of interest
to troubled company professionals. All titles available from Amazon.com --
go to http://www.amazon.com/exec/obidos/ASIN/189312214X/internetbankrupt--  
or through your local bookstore.

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


                               *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter, co-published by Bankruptcy
Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington,
DC. Debra Brennan, Yvonne L. Metzler, Ronald Ladia, Zenar Andal, and Grace
Samson, Editors.

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

This material is copyrighted and any commercial use, resale or publication
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