TCR_Public/001019.MBX              T R O U B L E D   C O M P A N Y   R E P O R T E R

                Thursday, October 19, 2000, Vol. 4, No. 205
  
                                Headlines

AJ CONTRACTING: Case Summary and 20 Largest Unsecured Creditors
CLARIDGE HOTEL: Icahn Intends To Submit New Bid by Nov. 13 Deadline
DRKOOP.COM: Names Dr. Bruce Hensel As Chief Medical Officer & MAB Chairman
EINSTEIN/NOAH: Robert C. Ellis Replaces Manley As Chief Financial Officer
INNOVATIVE GAMING: Completes Initial Closing of Merger with Xertain Inc.

ELDER-BEERMAN: Will Purchase 23.2% of its Shares at $5.00 Each
FEDERATED DEPARTMENT: Moody's Places Credit Ratings on Review for Downgrade
FRUIT OF THE LOOM: Rejecting Aircraft Lease, Saving $1.3 Million per Year
GENESIS/MULTICARE: Eldercare Ex-Employee Asks Relief From Automatic Stay
HARNISCHFEGER INDUSTRIES: Beloit and OCE-USA Agree to Terminate Leases

INNOVATIVE CLINICAL: QSF Advisers Discloses 45% Equity Stake  
INTEGRATED HEALTH: Delaware Court Approves TriAlliance To Handle HQ Sale
KCS ENERGY: Announces Success in North Louisiana Drilling Program
KITTY HAWK: Bankruptcy Court Approves Company's Disclosure Statement
LUBBOCK HOUSING: Fitch Places $9.83MM Refunding Bonds on Rating Watch

NATIONAL PICTURE: Uniek Awaits Judge Houston's Okay of Acquisition Deal
ORIX FINANCIAL: Moody's Expresses Concerns about Execution Risk
OWENS CORNING: Judge Walrath Approves Payment of Prepetition Wages
PACIFICARE HEALTH: Promotes Arnold Paulson to Actuarial Services VP
PAUL HARRIS: Nasdaq Changes Trading Halt Status Awaiting Further Reports

PAUL HARRIS: Women's Apparel Retailer Files For Chapter 11 in Indiana
PLANET HOLLYWOOD: Selling Asian Interests to Star East & Leisure Ventures
RVP INC.: Case Summary and 20 Largest Unsecured Creditors
SAFETY COMPONENTS: Replaces Arthur Andersen with Deloitte & Touche
SAFETY-KLEEN: Company Continues to Battle to Keep Pinewood Facility Open

SALMON OIL: Case Summary
SOLA INTERNATIONAL: Moody's Downgrades Revolver & New Senior Issue to Ba2
STRATOSPHERE CORPORATION: Acquires N. Las Vegas Shopping Center Property
SUN HEALTHCARE: Government Obtains Extension to Nov. 1 to File its Claims
TRI VALLEY: Co-Op Employees Displeased by Key Employee Retension Plan

VENCOR, INC.: Agrees to Lift Stay to Liquidate Wrongful Death Claims
VIDEO UPDATE: Video Retailer Retains Keen Realty To Oversee Liquidation
WEINER'S STORES: Obtains $35 Million DIP Revolving Credit Agreement

                                *********

AJ CONTRACTING: Case Summary and 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: AJ Contracting Company, Inc.
         470 Park Avenue South
         New York, NY 10016

Chapter 11 Petition Date: October 17, 2000

Court: Southern District of New York

Bankruptcy Case No.: 00-14842

Debtor's Counsel: Sherri D. Lydell, Esq.
                    Platzer, Swergold, Karlin, Levine,
                    Goldberg & Jaslow, LLP
                    150 East 52nd Street
                    New York, New York 10022
                    (212) 593-3000

Total Assets: $  6,451,270
Total Debts : $ 11,910,638

20 Largest Unsecured Creditors

Federal Insurance Company
Roberta Goldstein
15 Mountain View Road
Warren, NJ 07061-1615                 Bond Claim             $ 1,421,543

St. Paul Insurance Company
David Hussey
5801 Centennial Way
Baltimore, MD 21209
(410) 205-0315                        Bond Claim               $ 929,966

McDonough Marcus Cohn Tretter
Ken Marcus
3 Park Avenue - 31st Floor
New York, NY 10016                    Attorney Srvices         $ 728,817

H. Weiss Equipment Corp.
Bob
12 Labriola Court
Armonk, NY 10504
(914) 273-440
Fax:(914) 273-4437                    Trade                    $ 600,000


Metro Demolition Contracting
Marissa
5514 Grand Avenue
Maspeth, NY 11378
(718) 326-8450
Fax:(718) 326-0375                    Trade                    $ 326,591

Commercial Electric
102 Commerce Street
Brooklyn, NY 11231
(718) 855-5567                        Trade                    $ 317,2000

Forest Electric Corporation
David/Mary Joe
Two Penn Plaza
New York, NY 10121
(212) 318-1500
Fax:(212) 318-1784                    Trade                    $ 301,855

Rimi Woodcraft
Anthony Rizzo
1185 Commerce Avenue
Bronx, NY 10462                       Trade                    $ 250,000

Show Motion, Inc.                     Trade                    $ 195,000

CIT Vendor Technology, Inc.           Lease Financing          $ 190,931

Hudson Shatz Painting Co., Inc.       Disputed                 $ 189,640

Medway Construction, Inc.             Trade                    $ 185,521

K & R Electric Co., Inc.              Trade                    $ 170,000

Penguin A/C Corp.                     Trade                    $ 167,975

Hartford Fire Insurance Co.           Retro Adjustment         $ 166,959

Curtis Partition Corp.                Trade                    $ 162,981

Allied Coverage Corp.                 Insurance Broker         $ 145,583

A.D. Winston Corp.                    Trade                    $ 138,990

Nordic Interior, Inc.                 Trade                    $ 138,663

S.R.G. Construction                   Trade                    $ 135,000


CLARIDGE HOTEL: Icahn Intends To Submit New Bid by Nov. 13 Deadline
-------------------------------------------------------------------
In the race for the bankrupt Claridge Hotel and Casino Corp., Reuters
reports that Carl Icahn will submit its new bid before the Nov. 13 deadline
set by the Honorable Judge Wizmur. Icahn's  attorney, Ed Weisfelner did not
reveal how much Icahn will be offering. "As a consequence of the amount of
time that will now expire before anyone can own this casino out of
bankruptcy, I understand (GB Holdings) intends to drop the value of its
bid," Weisfelner said.

Claridge Hotel filed voluntary petitions under Chapter 11 of the U.S.
Bankruptcy Code in order to facilitate a financial restructuring. The
Claridge Hotel and Casino Corporation is a closely-held public corporation
and is the issuer of $85 million of 11-3/4% First Mortgage Notes which are
publicly traded on the New York Stock Exchange under the symbol CLAR02.


DRKOOP.COM: Names Dr. Bruce Hensel As Chief Medical Officer & MAB Chairman
--------------------------------------------------------------------------
Drkoop.com, Inc. (Nasdaq: KOOP), a leading Internet health Network with 1.4
million registered members and provider of Internet-enabled application
services for the healthcare industry, announced the appointment of Bruce
Hensel, M.D.; F.A.C.E.P., as the chief medical officer and chairman of the
drkoop.com Medical Advisory Board.

In his expanded role, Dr. Hensel will work closely with the company's
senior management team to plan strategic development.  As chief medical
officer he will oversee the entire content team and is responsible for the
validity and quality of all content on the site.  Dr. Hensel also will
continue in his previous role as chief medical correspondent, providing
personal perspective on daily coverage of breaking health news, writing a
"Medical Minutes" column, answering user questions in the "Ask Dr. Bruce"
column, contributing editorials for the network and assisting on special
projects.

"We are constantly striving to improve drkoop.com and to differentiate
ourselves from the competition," Hensel said.  "I see my expanded role as
an opportunity to ensure the site remains the most credible source for
personal, useful health information and not merely a regurgitation of news
you can find anywhere else."

Covering a wide-range of specialties, from cardiology and cancer to health
care ethics and emergency medicine, the Medical Advisory Board includes
leading experts in each specialty.  The board is charged with maintaining
the high quality of health information, products and services offered
through drkoop.com through thorough reviews of all content, offering advice
and keeping the best interest of the consumers and businesses in mind.

"While the accessibility and privacy of the internet has created new
information resources for health care consumers," said Dr. C. Everett Koop,
former U.S.  Surgeon General and chairman of drkoop.com, "Now more than
ever, it is especially important to insure that information is credible,
reliable and relevant.  Dr. Hensel is one of the best medical journalists
in the country, and I am pleased to have him assume these leadership
roles."

"Dr. Hensel is one of those rare individuals capable of communicating
across a wide variety of mediums," said Richard Rosenblatt, CEO of
drkoop.com.

"Because he is both a physician and a businessman, he offers a unique
perspective and understands the needs of consumers, physicians, healthcare
providers and business.  Dr. Hensel's experience and leadership will play
an important part of our strategy going forward."

One of only a handful of medical journalists across the country to
successfully combine a full-time journalism career with an active medical
practice, Dr. Hensel is an Emmy-award-winning medical, health and science
journalist for Los Angeles' NBC4's "Channel 4 News" and former medical
advisor and chief health contributor for KFWB radio in Los Angeles.

Dr. Hensel graduated from UCLA with a Bachelor of Arts degree in political
theory, studied journalism at UCLA and Columbia University and attended
medical school at Columbia University's College of Physicians and Surgeons.
He received his internship and residency training at Wadsworth Veterans
Administration Hospital and at UCLA.

Board certified in two medical specialties-Internal Medicine and Emergency
Medicine-Dr. Hensel serves as co-director of two emergency rooms in
Southern California, and is an associate clinical professor of medicine at
the University of California Los Angeles (UCLA) where he teaches a course
on medicine and the media to fourth year medical students.  He also is the
chairman of the American Red Cross Medical Advisory Committee for Health
Fair Expo in Southern California and serves on the board of directors for
the Southern California American Heart Association.

The Sept. 25 TCR reported that PricewaterhouseCoopers, LLP resigned as
independent accountants for the online health operator effective September
8, 2000.  It was known that Drkoop and PwC had several disagreements, like
in June, Drkoop disagreed with PwC's assertion of a material weakness, from
an 8-K filing. The independent accountants agreed to continue to serve
Drkoop through the completion of the filing of the company's third-quarter
financial statements.


EINSTEIN/NOAH: Robert C. Ellis Replaces Manley As Chief Financial Officer
-------------------------------------------------------------------------
Einstein/Noah Bagel Corp. announced the appointment of Robert C. Ellis as
interim Chief Financial Officer.  Paula E. Manley resigned as Chief
Financial Officer to become the Chief Financial Officer of Follett Higher
Education Group in Oak Brook, Illinois.

"Paula has been a key member of the senior management team and I will miss
her leadership and presence.  I appreciate the strong contribution she has
made over the last several years and wish her and her family well," said
Bob Hartnett, Chairman, Chief Executive Officer and President of ENBC.

"Rob brings a wealth of experience in financial management, including a
wide range of experience in assisting companies as they emerge from the
reorganization process.  We are extremely pleased to have Rob join our team
at this pivotal time in the Company's development," added Hartnett.

Ellis has served as an independent financial consultant and previously
served with Deloitte and Touche Management Consulting.

Einstein/Noah and the Official Committee of Unsecured Creditors appointed
in the Company's Chapter 11 case announced, As reported in the Sept. 18
TCR, that they have agreed with respect to all outstanding issues regarding
the Company's plan of reorganization. The Committee, which was appointed by
the United States Trustee to represent the interests of unsecured creditors
of the Company and its subsidiary, Einstein/Noah Bagel Partners, L.P.,
consists of unsecured creditors holding in excess of $65 million of the
Company's 7-1/4% Convertible Subordinated Debentures. The Committee
supports the Plan proposed by the Company, although it reserves the right
to challenge the distribution under the Plan to Bagel Store Development
Funding, LLC.

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


INNOVATIVE GAMING: Completes Initial Closing of Merger with Xertain Inc.
------------------------------------------------------------------------
Innovative Gaming Corporation of America (Nasdaq: IGCA) announced that it
has completed the initial closing of the merger with Xertain Inc.  The
general terms of the initial closing include the issuance and a mutual
purchase of 14.9% of the respective companies' common stock, the
termination of the merger of the Company with nMortgage, and the
termination of the sale of the Company's gaming manufacturing assets to
Xertain, Inc. The final closing of the merger is anticipated to occur in
early 2001 subject to shareholder, regulatory and various governmental
agencies approval.

Roland Thomas CEO and Chairman of IGCA provided the following comments: "I
am very pleased with the progress of the merger process and that this
initial and important step has been accomplished in such a short period of
time.  The Company's present products are experiencing excellent earnings
and therefore salability in the markets they are presently offered, and we
are currently expanding their presence and entering into further
jurisdictions.  The upcoming Gaming Expo next week will provide a venue for
access to most of our present and potential customers and we will be there
in force to feature our present and future product lines and demonstrate
the adaptability of our software systems to accomplish our customer's
requirements.  The Company, through our recent restructuring efforts, has
entered into a new process of execution that has been exhibited in the past
few weeks through the accomplishment of these processes, as well as in
other strategic areas of the company."

Xertain is a private Delaware corporation headquartered in Las Vegas,
Nevada, with its primary business predicated on gaming related
technologies, gaming facility development and international high technology
manufacturing.

Innovative Gaming Corporation of America, through its wholly-owned
operating subsidiary, Innovative Gaming, Inc., develops, manufactures and
distributes fast playing, high-entertainment gaming machines.  The Company
distributes its products both directly to the gaming market and through
licensed distributors.


ELDER-BEERMAN: Will Purchase 23.2% of its Shares at $5.00 Each
--------------------------------------------------------------
The Elder-Beerman Stores Corp. announced the final results of its self-
tender offer, which expired at 12:00 midnight, New York City time, on
Thursday October 5, 2000. Elder-Beerman commenced the tender offer on
September 8, 2000 to purchase up to 3,333,333 shares of its common stock at
a price between $4.50 and $6.00 per share, net to the seller in cash,
without interest.

Based on the final count by the depositary for the tender offer,
Elder-Beerman accepted for payment under applicable securities laws
3,462,363 shares, representing approximately 23.2 percent of the
outstanding shares, at a purchase price of $5.00 per share. All shares
properly tendered at or below $5.00 were accepted for payment, and
proration of such shares will not be necessary. Payment for the shares
accepted for purchase and return of all other shares tendered but not
accepted for payment will occur promptly by the depositary. As a result of
completing the tender offer, Elder-Beerman will have approximately
11,437,326 shares of common stock outstanding.

The dealer-manager for the tender offer was Wasserstein Perella & Co.
The nation's ninth largest independent department store chain, The
Elder-Beerman Stores Corp. is headquartered in Dayton, Ohio and operates 62
department stores in Ohio, West Virginia, Indiana, Michigan, Illinois,
Kentucky, Wisconsin and Pennsylvania. Elder-Beerman also operates two
furniture superstores. Elder-Beerman has announced it will open a new
concept store in Jasper, Indiana in November of 2000.


FEDERATED DEPARTMENT: Moody's Places Credit Ratings on Review for Downgrade
---------------------------------------------------------------------------
Moody's Investors Service placed the long- and short-term ratings of
Federated Department Stores, Inc. on review for possible downgrade,
reflecting the asset quality and business challenges that it faces in its
Fingerhut division. Moody's review will focus on the impact of Fingerhut's
challenges on Federated's risk profile, including the plan to resolve
Fingerhut's asset quality problems and to operate with tighter credit
policies given fierce competition for Fingerhut's traditional consumer
base. The review will also assess Federated's financial policy, including
its appetite for share repurchases, given the challenges that it faces at
Fingerhut and the slower sales growth environment in the department store
segment of the retail industry.

Ratings on review for possible downgrade:

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

    b) Senior unsecured shelf at (P)Baa1.

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

    d) Commercial paper at Prime-2.

The August 1999 upgrade of Federated's long-term ratings (senior unsecured
to Baa1) assumed the smooth integration of Fingerhut and the realization of
strategic benefits from this non-traditional acquisition for over $1.7
billion in cash. The expectation was that Fingerhut would complement
Federated's existing retail businesses by providing a platform to enhance
catalog and Internet sales. However, Fingerhut had revised its credit
terms, resulting in higher than expected delinquencies which are adversely
impacting Federated's earnings. Fingerhut subsequently implemented more
conservative credit policies, but it will take time to restore asset
quality and to regain sales growth given the intense competition that
exists to provide credit to Fingerhut's better customers. Federated has
announced that it will take a $740 million pre-tax write-down of goodwill
and other assets related to the Fingerhut acquisition and operation.
Additionally, it has announced a downsizing of Fingerhut's core catalog
operations that will ultimately save about $40 million p.a. beginning in
2001. As a consequence of streamlined operations and tighter credit
policies, Fingerhut's core catalog sales are being downsized from $1.4
billion for all of 1999 to $850 million to $1 billion for the current
fiscal year. The EBIT of the Direct-to-Customer segment is projected
between $25 and $100 million in 2001, including the $40 million in overhead
expense savings.

If Moody's concludes that Federated's plans to resolve the problems at
Fingerhut are likely to be successful in a reasonable period of time, its
Prime-2 rating could be confirmed, even if the long term ratings are not
confirmed. Moody's also noted that Federated continues to maintain a strong
position in the department store channel and that this business generates
the bulk of total company cash flow.

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


FRUIT OF THE LOOM: Rejecting Aircraft Lease, Saving $1.3 Million per Year
-------------------------------------------------------------------------
On June 1, 1996, Fruit of the Loom entered into an aircraft lease
agreement with Fifth Third Leasing Company, a unit of Fifth Third Bancorp,
Cincinnati, Ohio. The lease is held in a trust with First Security Bank,
Salt Lake City Utah, as trustee. Toronto Dominion Bank, Toronto, Canada,
as an agent, has made loans to the trust secured by the trust's interest
in the aircraft. It is a net lease meaning Fruit of the Loom pays
insurance, license fees, and other miscellaneous costs associated with
aircraft ownership.

According to J. Kate Stickles Esq., from Saul, Ewing, Remick & Saul, Fruit
of the Loom proposes to surrender the aircraft to Toronto Dominion Bank,
who will then attempt to sell it. The proceeds will be divided between
the two parties. Fruit of the Loom will reject the lease the day after
the Court authorizes the rejection motion. It will finance the necessary
service, repair, overhaul and maintenance to ready the plane for sale and
will recoup the expenses once a transaction is complete.

The plane is a 1995 Canadair Regional Jet, model CL-600-2B19. The serial
number is 7075 and the registration number is N877SE. Annual lease
payments amount to $1,292,257.

Ms. Stickles argues that rejection of the lease meets the sound exercise
of business judgment test with benefits accruing to the estate and
creditors. The aircraft demands large monthly payments and concomitant
expenses and is not necessary for an effective reorganization. The
Debtors present Judge Walsh with a stipulation memorializing the deal
crafted by Stuart M. Rozen Esq., of Mayer, Brown & Platt on TD's behalf.
(Fruit of the Loom Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


GENESIS/MULTICARE: Eldercare Ex-Employee Asks Relief From Automatic Stay
------------------------------------------------------------------------
Florence K. McGuire asks the Court to lift the automatic stay in the
Genesis Healthcare Ventures, Inc., chapter 11 cases pending before the U.S.
Bankruptcy Court in Wilmington to permit her to proceed with her pre-
petition claim against Genesis Eldercare d/b/a Rittenhouse Pine Center and
GHV, pending before the United States Court of the Eastern District of
Pennsylvania, Case No. 99-cv-3629 in connection with alleged unlawful
termination of her employment as a Registered Nurse Assessment Coordinator
at Rittenhouse Pine Center in violation of the Age Discrimination in
Employment Act, 29 U.S.C. section 621, et seq. (ADEA).

Ms. McGuire submits that the parties have engaged in extensive discovery
and each respective case was close to trial readiness when the Debtors'
chapter 11 cases commenced.

Md. McGuire is represented in that action by the law firm of Anita Alberts
Associates. (Genesis/Multicare Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


HARNISCHFEGER INDUSTRIES: Beloit and OCE-USA Agree to Terminate Leases
----------------------------------------------------------------------
Beloit Corporation, its Millpro Services division, and Beloit Pulping
Group, Inc., are party to four 1997 Equipment Lease Agreements with Oce-
USA, Inc. In May 2000, Beloit surrendered possession of the Millpro and
Pulping Equipment to Oce.

Beloit and Oce present Judge Walsh with a Stipulation for his stamp of
approval providing for (i) termination of the Equipment Leases, (ii)
modification of the stay to extent necessary to ratify the return of the
Equipment to Oce and (iii) an additional 30 days for Oce to amend its
$40,008 proofs of claim to account for rejection damages. (Harnischfeger
Bankruptcy News, Issue No. 28; Bankruptcy Creditors' Service, Inc.,
609/392-0900)


INNOVATIVE CLINICAL: QSF Advisers Discloses 45% Equity Stake  
------------------------------------------------------------
QSF Advisers, Inc. beneficially owns 5,416,740 shares of the common stock
of Innovative Clinical Solutions Ltd, constituting 45.14% of the
outstanding shares of common stock of the company. QSF holds sole voting
and dispositive powers over the stock held. MJ Whitman Advisers, Inc. is
the beneficial owner of 24,300 shares of the company's common stock,
constituting 0.203% of the outstanding shares of common stock. MJ Whitman
Advisers also holds sole voting and dispositive powers over the stock held.
MJ Whitman Management, LLC is the beneficial owner of 243,540 shares of
Innovative's common stock, or 2.0% of the outstanding common stock of the
company, with sole voting and dispositive powers. While Mr Martin J.
Whitman holds no shares personally he may be deemed to have beneficial
ownership of the shares of the company beneficially owned by EQSF by reason
of his control of EQSF. Mr. Whitman disclaims beneficial ownership of such
shares for all other purposes.

EQSF is an investment adviser registered under the Investment Advisers Act
of 1940 and provides investment advisory services to several registered
mutual funds. MJW is a registered investment adviser that provides
investment advisory services to individuals and institutions. MJWM is the
general partner of Agressive Conservative Investment Fund, a hedge fund
investment vehicle. Mr. Whitman, a United States citizen, is the Chairman
of the Board of EQSF and controls, with his adult children, a majority of
the outstanding shares of EQSF common stock. Mr. Whitman is also Chairman
of the Board and Chief Executive Officer of Danielson Holding Corporation,
a Delaware corporation and an insurance holding company, and M.J. Whitman,
Inc., a New York corporation and a registered broker-dealer, both of which
have their principal place of business in New York, New York.

Mr. David M. Barse is the President and Chief Operating Officer and a
director of EQSF, DHC and MJW. Michael Carney is the Treasurer and Chief
Financial Officer of EQSF, DHC and MJW. W. James Hall is the Secretary and
General Counsel of EQSF, DHC and MJW.

The shares reported here were received by the above listed persons and
entities under a plan of reorganization in exchange for certain debentures
of Innovative Clinical Solutions Ltd.


INTEGRATED HEALTH: Delaware Court Approves TriAlliance To Handle HQ Sale
------------------------------------------------------------------------
The Baltimore Sun reports that Integrated Health Services, Inc. obtained
court approval to hire a broker to sell half of its campus in Sparks.  The
funds accumulated from the sale will then be used to help the company
reorganize its debts. IHS asks for TriAlliance Commercial Real Estate
Services LLC of Towson to sell the property the company bought for $6.2
million. It plans to sell 80 out of 150 acres, which 54 can be developed.
Even prior to the Chapter 11 filing in Delaware on February, IHS wanted to
sell a part of its property.


KCS ENERGY: Announces Success in North Louisiana Drilling Program
-----------------------------------------------------------------
KCS Energy, Inc. (NYSE: KCS) announced recent results in its North
Louisiana drilling program.  As previously reported, the Willamette #1
well, in the Mt. Lebanon Field, Bienville Parish, Louisiana began
production in March.  Since then, the well has produced a total of 1.6
billion cubic feet (BCF) from two Hosston aged sands and is currently
producing 6,500 thousand cubic feet gas per day (MCFGPD).

The Company continued its development of the field with the drilling of
two KCS operated, 320-acre offsets in the same Hosston interval.  Both
wells were placed on production in early October.  The LA. Minerals #1
(37.5% KCS working interest) is currently producing at a rate of
approximately 6,650 MCFGPD and 60 barrels of condensate per day (BCPD)
while the Lathan Heirs #1 (23% KCS working interest) is producing 2,740
MCFGPD and 28 BCPD.

Additionally, the fourth well drilled in this field this year, the Sutton
Hunter #1 (41.4% KCS working interest) has recently been logged.  Log
analysis indicates similar Hosston zones should be productive in this well.
Two additional wells are planned in this area in 2000 to further extend the
limits of the productive reservoir.

In Bossier Parish, Louisiana, KCS has been active in the Elm Grove Field.
Earlier in the year KCS completed two producers.  Last week KCS completed
and placed on production the McDade #3 Alt well (100% KCS working interest)
which is producing approximately 1,700 MCFGPD from a Lower Cotton Valley
sandstone interval. KCS plans additional wells in this field in late 2000
or early 2001 as well as several recompletions in its existing wells.

Commenting on the North Louisiana drilling program, James W. Christmas,
President & CEO noted, "These well results, along with other third quarter
drilling success should positively impact fourth quarter production volumes
as well as year-end reserve additions.  Our operational results continue to
confirm the Company's ability to replace reserves and increase value."

As reported in the Sept. 26 TCR, the debtors, KCS Energy, Inc., et al.
filed a motion to implement an employee retention program for the debtors'
employees other than senior management. The hearing on the motion was held
before the Honorable Peter J. Walsh, US Bankruptcy Court, Wilmington, DE on
September 27, 2000 at 4:00 PM. The Retention Program provides employment
continuation incentives for employees who are crucial to the successful
operation and reorganization of the debtors' business. The debtors believe
it imperative to implement the Retention Program to reduce the risk of
losing employees to competitors. Over the last eighteen months, the debtors
have experienced an employee turnover of approximately fifty percent and
the debtors are currently experiencing a turnover rate of approximately six
percent per month.

KCS is an independent energy company engaged in the acquisition,
exploration, development and production of natural gas and crude oil with
operations in the Mid-Continent and Gulf Coast regions.  The Company also
purchases reserves (priority rights to future delivery of oil and gas)
through its Volumetric Production Payment (VPP) program.  For more
information on KCS Energy, Inc., please visit the Company's web site at
http://www.kcsenergy.com


KITTY HAWK: Bankruptcy Court Approves Company's Disclosure Statement
--------------------------------------------------------------------
Kitty Hawk, Inc. (OTC Bulletin Board: KTTEQ) announced that the Bankruptcy
Court presiding in its Chapter 11 Reorganization Case had approved its
Disclosure Statement. Creditors should be receiving the Disclosure
Statement and other materials during the week of October 16.

Tilmon J. Reeves, President and Chief Executive Officer, commented, "This
is a major milestone for the Company." Reeves went on to say, "Since filing
for Chapter 11 relief this past May, the Company has refocused on its core
businesses of scheduled overnight freight service and its Boeing 727 air
freight charter contracts, including its U. S. Postal Service and BAX
Global contracts. These will be the centerpieces of the Company's business
as it exits from Chapter 11. We could not have achieved these remarkable
results without the support of our loyal customer base with whom we have
worked closely during the past five months. With their continued support
and the support of our vendors and other creditors, we expect to emerge
from Chapter 11 as a stronger company in about two more months, which is
the time the Court needs to approve the Company's Reorganization Plan."

Michael Cox of Seabury Group, the Company's financial advisor, noted that
Kitty Hawk had made extraordinarily rapid progress to resolve the issues
that made the bankruptcy filing necessary and had positioned itself well
for the future. Mr. Cox said, "I believe the fact that the Company's
principal creditors have agreed to take a substantial percentage of their
recovery in stock of reorganized Kitty Hawk is a strong indication of the
confidence of the Company's creditors in the Company's future."

Kitty Hawk's plan of reorganization provides for payment in full of its
bank creditors and distribution of all of the stock of the reorganized
Company to Kitty Hawk's unsecured creditors and cancellation of all of the
Company's stock issued prior to the Chapter 11 filing. Kitty Hawk expects
confirmation of its plan in mid-December and to implement its plan
effective January 1, 2001, eight months to the day after its Chapter 11
filing on May 1, 2000.


LUBBOCK HOUSING: Fitch Places $9.83MM Refunding Bonds on Rating Watch
---------------------------------------------------------------------
Fitch places the $9.83 million Lubbock Housing Finance Corporation
multifamily housing revenue refunding bonds, series 1992A on Rating Watch
Negative following its annual review. The series 1992A was originally rated
'BBB'. Fitch did not rate the subordinate $2.20 million series 1992B bonds.
The transaction is secured by three cross-collateralized and cross-
defaulted '80-20' multifamily properties containing 396 units. The
transaction closed Dec. 15, 1992.

The rating action is due to a significant decline in net cash flow. Fitch's
adjusted year-end 1999 debt service coverage ratio (DSCR) is 1.02 times (x)
compared to 1.35x as of year-end 1998 and 1.15x at origination. The
decrease in the DSCR is attributable to an increase in administrative and
operating expenses and a decrease in overall occupancy. The DSCR is based
on an 8.89% constant and audited net operating income adjusted to reflect
$300 per unit for capital reserves. In Sept. 2000 the property management
was changed from Greystar Multifamily Services, LP to Hurt & Stell
Multifamily Management Services. Greystar had taken over management duties
of the properties in March 1999, from Capstone Realty. Year-to-date 8/31/00
net cash flows provided by the borrower shows an 11% increase over cash
flows for the same period in the prior year. Fitch expects to receive year-
end 2000 audited financial statements in July 2001, at which time, if no
improvement is noted, the series may be downgraded.

Additional collateral is represented by a debt service reserve in the
amount of $1,007,500 consisting of a $675,000 LOC from US Bank National
Association (fka Colorado National Bank) and $332,500 held in a Guaranteed
Investment Contract. The debt service reserve is sufficient to fund
approximately 13 months of average debt service.

The properties, built in 1983, are geared toward Texas Tech University
students and young adults/families. Average occupancy of the three
properties, which has been consistently higher than the market, has
decreased to 93% as of year-end 1999 from 95% and 97% at origination and
year-end 1998, respectively.


NATIONAL PICTURE: Uniek Awaits Judge Houston's Okay of Acquisition Deal
-----------------------------------------------------------------------
Judge David Houston, The Associated Press reports, will issue an order
sometime this week on Uniek Inc.'s $19 million acquisition of National
Picture & Frame Co.  Harbortown Industries Inc. dropped its offer of $19.3
million on a hearing held on Sept. 27 paving way for Uniek to have its bid.
Pres. Dennis Gerrard of National said that officials representing Uniek
were present during the hearing ready to sign documents. National Picture
filed for bankruptcy protection under Chapter 11 in July. Uniek then
submitted its letter of intent on Sept. 11 to purchase National for $14.5
million. Waunakee, Wis.-based Uniek sells picture frames, photo albums and
craft products. The company has 300 employees.


ORIX FINANCIAL: Moody's Expresses Concerns about Execution Risk
---------------------------------------------------------------
Moody's Investors Service has revised its rating outlook for ORIX Financial
Services, Inc. (OFS, formerly ORIX Credit Alliance, Inc., Senior debt at
Baa2) to negative from stable. According to Moody's, OFS's core equipment
financing business franchise has come under stress in recent periods. In
response, OFS has broadened its strategic focus to include growth within
several new business segments, subjecting the company to increased
execution risk.

Moody's said that OFS maintains a good franchise in its core equipment
finance segment, which has historically provided the company with steady
results. Additionally, OFS has succeeded in conservatively managing its
financial structure, keeping leverage at reasonable levels and maintaining
funding diversity.

The rating agency notes, however, that competitive pressures are negatively
affecting OFS's financial results, resulting in a significant reduction to
the company's core financing margin. This reduction may be permanent for
OFS's current core business. Additionally, asset quality deterioration at
OFS is leading to rising bad debt provisioning, further pressuring the
firm's current financial results.

In response to these challenges, OFS's management team has elected to
develop new business units within the company in order to provide
diversification of assets and earnings. Moody's believes this goal is
sound, but that the achievement of this goal will provide management with
many challenges.

These challenges include a very competitive environment in the company's
selected markets -- markets where, due to OFS's historic lack of
participation, the company does not have a franchise. Additionally, given
the substantially different nature of the assets that the company intends
to invest in, it will need to establish entirely new front-end sales,
credit and pricing disciplines, as well as back-end asset management
capabilities. OFS has commenced this process, but this entails considerable
execution risk.

Moody's has therefore revised the outlook on the company's ratings to
negative from stable given the deterioration in the company's core
franchise combined with these significant initiatives to extend the
company's activities.

ORIX Financial Services, Inc. is a subsidiary of ORIX Corporation (Senior
at Baa3) of Japan. ORIX Financial Services, Inc., based in Secaucus, NJ, is
a commercial finance company, which reported total assets of approximately
$3.2 billion at June 30, 2000.


OWENS CORNING: Judge Walrath Approves Payment of Prepetition Wages
------------------------------------------------------------------
The Debtors' Employees are vital to daily operations, maintaining positive
employee morale is important, and the reorganization effort will fail if
the Debtors lose their valuable employees. Faced with the need to issue
payroll checks today for wages and salary obligations incurred during the
latest two-week period and because certain employees don't promptly cash
each paycheck they receive, the Debtors sought and obtained emergency
interim order from Judge Walrath authorizing Owens Corning to (A) issue
payroll checks today on account of accrued pre-petition wage and salary
obligations and (B) move money between their bank accounts as necessary to
fund those paychecks. Additionally, Judge Walrath directs each Bank on
which a payroll check is drawn to honor all payroll checks.

The Debtors believe that no single employee is owed more than $4,000.
Nothing in this request, the Debtors make clear and Judge Walrath confirms,
contemplates an assumption nor precludes a rejection of any agreement or
policy that may be considered an executory contract. (Owens-Corning
Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., 609/392-
0900)


PACIFICARE HEALTH: Promotes Arnold Paulson to Actuarial Services VP
-------------------------------------------------------------------
PacifiCare Health Systems, Inc. (Nasdaq: PHSY), announced the promotion of
Arnold Paulson to the position of vice president of Actuarial Services.  
Paulson will be responsible for developing and implementing PacifiCare's
provider contract economic modeling process, producing incurred but not
received (IBNR) reserves and related financial reporting, as well as
pricing and forecasting PacifiCare's prescription drug products.  He will
report to Mitch Goodstein, senior vice president, Health Care Economics,
PacifiCare Health Plans.

"In his ten years with PacifiCare, Arnold has demonstrated outstanding
leadership and analytical abilities," said Goodstein.  "In his new
position, he will lead the organizations responsible for provider network
cost and analysis as well as financial reporting, which will enhance our
information leverage and efficiency."

Paulson began his career with PacifiCare in 1990 as an actuarial analyst
in the Corporate Health Data Analysis department and assumed a broad range
of actuarial responsibilities including pricing, underwriting, financial
reporting, systems development and provider reimbursement.  Prior to his
promotion to vice president, he served as director and health services
actuary in Corporate Health Care Economics where he worked closely with
Network Management, Finance and Prescription Solutions, PacifiCare's
pharmacy benefit management company.

Paulson is an associate of the Society of Actuaries and a member of the
American Academy of Actuaries.  He received his bachelor's degree in
physics from the University of California, Los Angeles.

As published in the Oct. 13 TCR, PacifiCare Health expects to report
results ranging from a loss of up to $0.10 per share to break-even
for the quarter ended September 30, 2000, based on preliminary data showing
higher-than-anticipated commercial and Medicare health care costs. These
costs reflect the impact of providers operating under non-capitated
agreements, and amounts incurred to improve network stability and maintain
member continuity of care. For the quarter ended September 30, 1999, the
company reported earnings of $1.54 per share. Shared-risk contracting
conversions and provider instability are expected to continue at least for
the remainder of the year. As a result, earnings per share for 2000 will
not meet the company's expectations set forth in its previous public
filings.

PacifiCare Health Systems is one of the nation's largest managed health
care services companies.  Primary operations include managed care products
for employer groups and Medicare beneficiaries in nine states and Guam,
serving approximately 4 million members.  Other specialty products and
operations include behavioral health services, life and health insurance,
dental and vision services, pharmacy benefit management and Medicare+Choice
management services.  More information on PacifiCare Health Systems can be
obtained at http://www.pacificare.com.


PAUL HARRIS: Nasdaq Changes Trading Halt Status Awaiting Further Reports
------------------------------------------------------------------------
Upon the filing of women's apparel retailer, Paul Harris Stores, Inc.
(Nasdaq: PAUH), Nasdaq Stock Market has changed its shares status to
"additional information requested", Dow Jones reports. The exchange halted
Paul's shares at 8:30 am Tuesday. Paul Harris is a leading specialty
retailer known for its branded private-label women's apparel and
accessories. The retailer filed for bankruptcy reorganization under Chapter
11 of the U.S. Bankruptcy Court in Indiana, and arranged for the sale of
most of the assets of its wholly owned subsidiary, The J. Peterman Company.


PAUL HARRIS: Women's Apparel Retailer Files For Chapter 11 in Indiana
---------------------------------------------------------------------
Paul Harris Stores, Inc. (Nasdaq: PAUH), a leading specialty retailer known
for its branded private-label women's apparel and accessories, announced it
has voluntarily filed for reorganization under Chapter 11 of the United
States Bankruptcy Code, and arranged for the sale of most of the assets of
its wholly owned subsidiary, The J. Peterman Company.

Paul Harris made its Chapter 11 filing in the United States Bankruptcy
Court for the Southern District of Indiana. Three of the Company's wholly
owned subsidiaries, Paul Harris Retailing, Inc., Paul Harris Merchandising,
Inc., and Paul Harris Distributing, Inc. also filed Chapter 11 petitions.
LaSalle Bank National Association will provide up to $45 million of debtor
in possession financing in connection with the Chapter 11 filing.

Glenn Lyon, president and chief executive officer said, "We commenced the
Chapter 11 proceeding because of our liquidity problems. However, as a
result of the sale of the Peterman assets that yielded an immediate $4.3
million cash infusion and the Chapter 11 financing arranged with LaSalle,
we are optimistic that the Company will achieve positive fourth quarter
results and put itself in position for a successful reorganization. To
accomplish that we will need the continued efforts of our employees and
hope to obtain the assistance and patience from our vendors and landlords."
Richard R. Hettlinger, senior vice president and chief financial officer,
noted that, "This decisive action provides us with the opportunity to
return to financial strength. Although several other alternatives were
considered, we believe that they would have involved a greater risk to all
of our constituencies."

J. Peterman sold its Grand Central Station leasehold interest to an
affiliate of Kenneth Cole Productions Inc. for $2.0 million and its
intellectual property to an affiliate of Schottenstein Bernstein Capital
Group LLC for $0.7 million. In addition, it has entered into an Agency
Agreement with a joint venture lead by Schottenstein to sell its inventory.
Under the Agency Agreement, Peterman received an up-front payment of $1.6
million and expects to receive additional funds after a count of its
inventory is completed.

Paul Harris announced that James T. Morris resigned from its board of
directors. Mr. Lyon said, "We greatly appreciate all that Jim has done for
the Company and understand his resignation in light of his many other
endeavors."

Finally, Paul Harris announced that as part of its cost cutting efforts the
Company and two officers, Sally M. Tassani, Executive Vice President, and
Paul M. Sobol, Senior Vice President of Real Estate, have severed their
employment agreements. Ms. Tassani will continue to serve as a director of
the Company.

Looking forward, Lyon believes that "Our strong management team is
committed to continue building core competencies that better serve our
target customers and enhance the profitability of the company. Our
objective is to fully regain our consumer franchise, capture greater market
share and produce higher sales and margins."


PLANET HOLLYWOOD: Selling Asian Interests to Star East & Leisure Ventures
-------------------------------------------------------------------------
On October 10, 2000, Planet Hollywood International, Inc., announced it had
entered into an agreement to sell its remaining one-third equity interest
in Planet Hollywood (Asia) Pte Ltd. to Star East Holdings Limited, a
company listed on the Stock Exchange of Hong Kong Limited.

On September 29, 2000, the company entered into an agreement with Star
East and Leisure Ventures Pte whereby Star East will acquire approximately
66.67% of the equity interest in PHA presently owned by the company and LV
in exchange for the issuance of 99,141,104 ordinary shares of Star East,
the company and LV each receiving 49,570,552 of those shares. On September
29, 2000, Star East's ordinary shares closed at HK$0.33 per share. The
shares will represent approximately 12% of Star East's issued ordinary
share capital and will be freely tradeable.

In connection with the sale, Star East shall also procure the appointment
of a nominee of each of the company and LV to the board of directors of
Star East. Completion of the agreement is conditional upon the fulfillment
of the following conditions: 1) satisfactory completion of the due
diligence investigation of PHA by Star East; 2) satisfactory completion of
the due diligence investigation of Star East by the company and LV; and 3)
the Stock Exchange of Hong Kong Limited agreeing to grant a listing of and
permission to deal in the shares.

Currently, PHA is owned equally by the company, LV and a wholly-owned
subsidiary of Star East. PHA is principally engaged in investment holding,
sub-franchising of theme restaurants and the provision of management
services in Asia. Star East, the parent corporation to Magnetic Light
Profits Limited, a significant shareholder of the company, is principally
engaged in entertainment-related businesses throughout Asia and the Far
East, including the franchising of entertainment complexes offering live
entertainment and themed cafes, and other merchandising and licensing.


RVP INC.: Case Summary and 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: RVP, Inc.
         6001 Overland Road
         Boise, ID 83709

Chapter 11 Petition Date: October 16, 2000

Court: District of Idaho

Bankruptcy Case No.: 00-02632

Judge: Terry L. Myers

Debtor's Counsel: D. Blair Clark, Esq.
                   Ringert Clark Chartered
                   455 South Third Street
                   P.O. Box 2773
                   Boise, ID 83701-2773
                   (208) 342-4591

Total Assets: $ 1,000,000
Total Debts : $ 1,000,000

20 Largest Unsecured Creditors

Internal Revenue Service                                   $ 173,693

Micro Systems                                              $ 116,581

BlueStar                                                    $ 87,782

Sales Management Systems                                    $ 64,033

Idaho State Tax Commission                                  $ 54,146

Ziff-Davis Publishing Co.                                   $ 36,681

Computer Software Serv.                                     $ 27,579

Corry Publishing, Inc.                                      $ 15,552

Panasonic Comm. Systems                                     $ 14,167

Telper, Inc.                                                $ 13,002

Next Link                                                   $ 12,971

Wells Fargo Bank                                            $ 11,702

NCR Corporation                                             $ 10,388

Rittenhouse                                                  $ 8,938

Mainstay Funds                                               $ 7,725

MicroWorks, Inc.                                             $ 7,502

Kowallis-Thueson                                             $ 7,138

TEC America                                                  $ 7,101

Boss Communications                                          $ 6,507

Stoel Rieves, LLP                                            $ 6,329


SAFETY COMPONENTS: Replaces Arthur Andersen with Deloitte & Touche
------------------------------------------------------------------
On October 5, 2000, Safety Components International, Inc. engaged Deloitte
& Touche, LLP as its independent accountants to audit its consolidated
financial statements commencing with its current fiscal year and to prepare
the corporate tax returns as required by law. Deloitte's engagement will be
effective as of the date of the company's emergence from Chapter 11, which
was expected to occur on October 11, 2000. On October 5, 2000, the company
notified Arthur Andersen LLP, its present independent accountants, that
Arthur Andersen was discharged as the company's independent accountants.

Each of the actions were recommended by the Audit Committee and approved by
the Board of Directors of Safety Components.

The company states that there have been no disagreements between it and
Arthur Andersen on any matter of accounting principles or practices or
financial statement disclosure during the two fiscal years ended March 25,
2000 and March 27, 1999 and during the subsequent interim period through
the date of discharge. The independent accountant's report on the financial
statements of the company for the fiscal year ended March 25, 2000 did
contain a "going concern" opinion.


SAFETY-KLEEN: Company Continues to Battle to Keep Pinewood Facility Open
------------------------------------------------------------------------
On September 22, 2000, The United States Court of Appeals for the Fourth
Circuit denied Pinewood's motion for an injunction pending the appeal and
granted Pinewood's motion to expedite the appeal.

On September 25, 2000 Pinewood filed with DHEC a request for a permit
modification increasing landfill capacity and concurrently filed a request
for temporary authorization to continue waste disposal at the facility
pending a DHEC decision on the requested permit modifications.

At midnight on September 25, 2000, Pinewood suspended waste disposal in
the landfill pending action by DHEC and/or court decision allowing
continued waste disposal.

On September 26, 2000, DHEC denied Pinewood's request for temporary
authorization for continued waste disposal at its Pinewood landfill.

On September 26, 2000, Pinewood petitioned DHEC, pursuant to applicable
law, to institute rulemaking proceedings within thirty days to promulgate
regulations, in precisely the same form as those promulgated by DHEC in
1995, which would allow utilization of various mechanisms, in lieu of a
cash trust fund, to satisfy financial assurance obligations for possible
environmental impairment. Under these regulations, owners or operators of
hazardous waste facilities would have the following options to satisfy
financial assurance for cleanup costs and/or restoration of environmental
impairment: trust fund, surety bond, insurance, letter of credit, and
corporate guaranty upon satisfying a financial test.

If Pinewood does not obtain additional landfill capacity through
administrative or legal proceedings or if Pinewood is required to provide
financial assurance for possible cleanup costs and/or restoration of
environmental impairment in the form of a cash trust fund, the result could
have an adverse impact upon the company's financial position.


SALMON OIL: Case Summary
------------------------
Debtor: Salmon Oil Company, an Idaho Corporation
         500 South Challis
         Salmon, ID 83467

Chapter 11 Petition Date: October 17, 2000

Court: District of Idaho

Bankruptcy Case No.: 00-41753

Judge: Jim D. Pappas

Debtor's Counsel: Brent T. Robinson, Esq.
                   Ling, Nielsen & Robinson
                   P.O. Box 396
                   Rupert, ID 83350-0396
                   (208) 436-4717

Total Assets: $ 1 Million Above
Total Debts : $ 500 Thousand Above


SOLA INTERNATIONAL: Moody's Downgrades Revolver & New Senior Issue to Ba2
-------------------------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured rating of Sola
International ("Sola") to Ba2 and the bank loan rating to Ba2. The rating
action reflects the increasingly competitive environment in which Sola
operates, the high dependence of the company's future performance on the
uncertain success of new product introductions, the pressure on the
company's margins and its currently unfavorable cost structure. The rating
action also recognizes the strong share of the company in the eyeglass lens
market and the magnitude of the turnaround undertaken by the company. The
rating outlook is negative. Further deterioration in free cash flow
generation could put pressure on Sola's ratings. This concludes the review
for possible downgrade initiated on July 13, 2000.

Ratings downgraded:

    a) $270 million revolving credit maturing in 2001, from Baa3 to Ba2

    b) senior unsecured shelf, from (P)Baa3 to (P)Ba2

Sola manufactures and sells eyeglass lenses in North America, Europe and
the Asia-Pacific area. In its main market, the US, the company enjoys a
strong share of around 25%, but behind Essilor at around 30%. Other
companies have market shares of 10% or less. The company has built this
market share in large part thanks to an extensive research and development
program, which has led to many successful new product introductions. As all
participants in the industry, Sola benefits from favorable demographics and
the aging of "baby boomers". In spite of the competition from contact
lenses and laser surgery, glasses continue to be a principal means to
improve vision.

However, the increasing use of polycarbonate as raw material for lenses
brings significant pressure on the company's results. Polycarbonate is
significantly lighter, thinner and shatter-resistant than resin plastic,
with only slightly lower vision-enhancing performance. As a result, the use
of polycarbonate is rapidly increasing to the detriment of resin plastic.
In the last years, Sola did not position itself adequately to take
advantage of this shift and its market position has suffered. Also, while
Sola is ramping up its capacity in polycarbonate, the lower operating
income per eyeglass made in this material means that the shift towards
polycarbonate will put pressure on the company's total operating income in
the coming years.

Sola's performance has also been affected by enhanced competition. The two
largest competitors of the company -- Essilor and Hoya -- have been
strengthening their position through the purchase of independent
laboratories. In the industry, following opticians' orders, labs cut, grind
and polish raw lenses which they source from companies such as Sola. Labs
that have been purchased by companies such as Essilor and Hoya quickly
rebalance their purchases towards their new owners. The currently limited
financial flexibility of Sola prevents it from aggressively following its
competitors in this strategy.

Sola's current turnaround efforts center on introducing successful new
products, improving the company's cost structure and improving working
capital. In the last years, Sola's extensive research and development has
not led to as many successful new products as in the past. Sola is working
on improving the process that brings new products to markets. The cost
position of the company has deteriorated over the last years, affecting its
competitiveness. Sola is undergoing a restructuring which aims at
transfering high-volume production to low-cost locations in Brazil, China
and Mexico. The company is on track to completing its current plan by the
end of the first quarter of calendar year 2001. The company is also
attempting to reduce its inventories and accounts receivable. Whether these
efforts will be sufficient to improve Sola's cost structure and working
capital remains uncertain.

Because of deteriorating profitability and rising levels of debt, the
company's interest coverage-- as measured by EBIT/interest expenses-- has
decreased from 2.49 at the end of the fiscal year ended March 31, 1999 to
2.34 at the end of 12 months ended June 30, 2000. In the meanwhile, debt
has increased from $214 million to $247 million, as the company's free cash
flow was negative during this period.

The company's liquidity is provided by a $300 million revolving credit made
up of two tranches. $30 million Tranche A matures on October 31, 2000 and
$270 million Tranche B matures on May 31, 2001. The company's current
availability under this revolver is of approximately $160 million. While
the company's free cash flow has been negative, on-going availability
should be sufficient until renegotiation of the credit facility. The
company is currently in compliance with its covenants.
Sola International Inc. designs, manufactures and distributes a broad range
of plastic and glass eyeglass lenses.


STRATOSPHERE CORPORATION: Acquires N. Las Vegas Shopping Center Property
------------------------------------------------------------------------
Stratosphere Corporation reports that Stratosphere Leasing LLC, an
affiliate of Stratosphere, has acquired the space comprised of the Tower
Shops, the 59,000 square foot retail component of Stratosphere, a
casino/hotel/entertainment complex located at the north end of the Las
Vegas Strip. The complex is centered around the Stratosphere Tower, the
tallest freestanding observation tower in the United States.

Stratosphere Leasing will assume management and leasing responsibilities
for the Tower Shops immediately and has hired the former Tower Shops
property manager to provide continuity to the facility's operation.


SUN HEALTHCARE: Government Obtains Extension to Nov. 1 to File its Claims
-------------------------------------------------------------------------
The Debtors, on the one hand, and the Department of Health and Human
Services, the Department of Justice and the Equal Employment Opportunity
Commission, on the other hand, have agreed that the last date for these
governmental entities to file a proof of claim against any of the Debtors
is extended to November 1, 2000 without prejudice to the rights of the
parties to agree to further extension.

The extension applies to any claims for the benefit of the governmental
entities relating in any way to the Medicaid program, including the claims
of private persons brought on behalf of the Governmental Entities pursuant
to quitam provisions of the False Claims Act, 31 U.S.C. section 3730(b).
The extension also applies to any claim brought by the Governmental
Entities arising from charge number 220-99-9026. (Sun Healthcare Bankruptcy
News, Issue No. 15; Bankruptcy Creditors' Service, Inc., 609/392-0900)


TRI VALLEY: Co-Op Employees Displeased by Key Employee Retension Plan
---------------------------------------------------------------------
Employees of Tri-Valley Co-Op, a California based company that filed
Chapter 11 in July, are voicing protest over the announced bonus plan the
company is hoping to implement to retain "key employees". Tri-Valley is
asking the bankruptcy court to approve a plan to pay $12 million in bonuses
to more than 400 top employees of the company. The same employees growers
blame for the bankruptcy that has left the co-op more than $400 million in
debt. The American GI Forum, the Stanislaus County Department of Employment
and Teamsters Union Local 748 will host a conference for displaced workers
Wednesday from 10 a.m. to 7 p.m. at the Modesto Centre Plaza. The
conference is intended to help workers learn how to deal with creditors,
find available health services and learn where to go for job training. (New
Generation Research, Inc., 17-Oct-00)


VENCOR, INC.: Agrees to Lift Stay to Liquidate Wrongful Death Claims
--------------------------------------------------------------------
The Debtors consent to modification of the automatic stay to permit Paul
Coumoulos, as Personal Representative of the Estate of Irene Coumoulos to
continue prosecution of claims against the Debtors for negligence and
wrongful death, for the sole purpose of determining issues of liability
and damages, if any, of the Debtors. (Vencor Bankruptcy News, Issue No. 16;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


VIDEO UPDATE: Video Retailer Retains Keen Realty To Oversee Liquidation
-----------------------------------------------------------------------
According to a company press release, Video Update, Inc. the Minnesota-
based video rental chain, has retained Keen Realty, LLC to organize a
bankruptcy auction of the leaseholds on approximately 120 of its retail
sites. Keen Realty is a real estate firm specializing in restructuring
retail real estate and lease portfolios and selling excess assets. Video
Update, Inc. filed for Chapter 11 protection on September 18, 2000. The
auction date and time is to be determined. Available to users and investors
are leaseholds for approximately 120 retail sites (located in Arizona,
Colorado, Georgia, Iowa, Illinois, Indiana, Michigan, Minnesota, Missouri,
North Carolina, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma,
Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington
and Wisconsin). The store sites range in size from 4,000 square feet to
13,000 square feet. (New Generation Research, Inc., 17-Oct-00)


WEINER'S STORES: Obtains $35 Million DIP Revolving Credit Agreement
-------------------------------------------------------------------
Weiner's Stores Inc. (OTCBB:WEIR) announced that it has signed a debtor-in-
possession revolving credit agreement with a $35.0 million working capital
fund, including a $15.0 million sub-facility for the issuance of letters of
credit, with its current lender, The CIT Group/Business Credit Inc. This
agreement is secured by substantially all of the company's assets. The
proceeds may be used solely to fund working capital in the ordinary course
of business and for general corporate purposes. The revolving credit
agreement requires that the company maintain certain financial covenants
and stipulates certain borrowing limitations based on the company's
inventory levels.

Raymond J. Miller, chairman and chief executive officer, stated, "We are
pleased to announce the completion of this agreement, which provides our
vendors the assurances needed to continue to ship inventory for our holiday
and spring seasons. It was fantastic to see the support from our lender to
help us implement the changes we must make in introducing a new product mix
to our stores. We look forward to working with them and our vendors to
secure the future of the company."

The company had previously announced on Oct. 16, 2000, that it had filed
for reorganization under Chapter 11 of the federal bankruptcy code and was
streamlining operations, including the closure of 44 stores. Further, the
company announced the redesign of it merchandising and marketing, scheduled
to take place in early 2001.

Weiner's is a convenient neighborhood family retailer that offers a
complete assortment of branded products for value-conscious consumers.
Currently, approximately 3,750 associates are employed at the 141 stores
that are operated in Texas, Louisiana, Mississippi, Arkansas and Alabama.

                                *********

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.

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