TCR_Public/001020.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 20, 2000, Vol. 4, No. 206
  
                                Headlines

AIR KAZAKSTAN: Prime Minister Orders Government To Aid Troubled Airline
AMERICAN PAD: National Envelope Announces Purchase of Williamhouse Division
AVATEX CORPORATION: Phar-Mor Write-Downs Take Toll on Earnings
CARMIKE CINEMAS: Tejas Securities Announces Coverage of Theater Chain
CROWN VANTAGE: Appoints J.P. AuWerter as Interim Chief Financial Officer

DATAWORLD SOLUTIONS: June 30 Financial Statements Still Delayed
FRUIT OF THE LOOM: CGN'S Seeks Allowance Of Administrative Expense Claim
GENESIS/MULTICARE: Quakertown Ex-Employees Seek Relief from Automatic Stay
GLIMCHER REALTY: S&P Revises Outlook From Stable To Negative
HARNISCHFEGER INDUSTRIES: Stipulation Pays Katten Muchin Contingency Fee

INGRAM MICRO: Moody's Lowers $1.036 Bln Convertible Debentures To Ba2
LIVING.COM: Maynards Industries Wins Bid To Oversee Liquidation Sale
LUBBOCK HOUSING: Fitch Places $9.83MM Refunding Bonds on Rating Watch
MEDIQ, INC.: Continues to Project Short and Long-Term Cash Shortfalls
MEDLAND CONTROLS: Case Summary and 20 Largest Unsecured Creditors

MONARCH DENTAL: Appoints W. Barger Tygart as Interim Board Chairman and CEO
NEWCOR, INC: Posts $6.2 Million Decrease in Third Quarter Sales
PATHMARK STORES: Emerges from Chapter 11 and Closes on $600 Exit Financing
PAYLESS CASHWAYS: New Openings And Store Closures To Lessen $60M Debt
PHC, INC.: Healthcare Provider's Fiscal Year Ends on a Profitable Note

PHYSICIANS RESOURCE: Dallas Court Approves Debtor's Disclosure Statement
PRIME RETAIL: Milberg Weiss Files Class Action Shareholder Complaint
PROPERTY TECHNOLOGIES: Case Summary and 20 Largest Unsecured Creditors
SAFETY-KLEEN: Seeks To Continue Kern County Tax Assessment Contest
SERVICE MERCHANDISE: Obtains Approval to Lease & Sublease Stores To TJX

STATION CASINOS: Moody's Confirms Ratings & Places Ameristar Debt on Watch
SUN HEALTHCARE: Healthcare Accuses Former Chairman Of Stealing Staff
WASTE MANAGEMENT: Announces Electronics Recycling Program With Sony

* BOOK REVIEW: As We Forgive Our Debtors: Bankruptcy and Consumer Credit
                                           in America

                                *********

AIR KAZAKSTAN: Prime Minister Orders Government To Aid Troubled Airline
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The prime minister of former Soviet country Kazakstan has indicated that
the country's airline is on the brink of bankruptcy. Air Kazakstan, which
is state-owned, was created in 1997 to replace Kazaero, the former national
airline, which also went bust. The prime minister has now ordered the
government to take control of the problem and fix it because the airline
would not survive another bankruptcy, according to The Associated Press.
(ABI 18-Oct-00)


AMERICAN PAD: National Envelope Announces Purchase of Williamhouse Division
---------------------------------------------------------------------------
National Envelope Corporation (NEC) and American Pad & Paper Company (AP&P)
announced the acquisition of AP&P's Williamhouse division by NEC.

NEC is the largest privately held envelope manufacturer in the United
States with net sales in 1999 of $365 million. In 1999, Williamhouse
recorded net sales of $292 million. Combined, NEC/Williamhouse will be the
country's largest supplier of franchised proprietary and commodity business
envelopes to the wholesale market.

NEC's offer for Williamhouse and the acceptance by AP&P has been confirmed
in a Final Sales Order approved by the Federal Court overseeing AP&P's
Chapter 11 bankruptcy process. Further, all necessary governmental
regulatory approvals for the sale have been received. As a result, NEC and
AP&P look forward to closing the transaction by the end of October.

"The Williamhouse acquisition represents a major step forward in NEC's
growth strategy and will markedly strengthen our ability to service and
meet all the expectations of our customers," stated William Ungar, NEC's
Chief Executive Officer. "NEC and Williamhouse have each been in business
for almost 50 years and are among our industry's leaders. The synergies
between the two companies' best practices, broad product offerings,
production capacities and experienced employees will allow us to reach our
market with more products, faster and more competitively than anyone else
in the industry."

"Williamhouse has a long and distinguished reputation for quality and
customer service and is a leading suppler of mill branded specialty and
commodity business envelopes," stated James W. Swent III, AP&P's Chief
Executive Officer. "We are pleased that a company of National's stature
will acquire Williamhouse. This combination is good for the industry, good
for our employees and good for our customers. We look forward to concluding
the transaction shortly."

Founded in 1952, National Envelope Corporation has grown to be the largest
privately held envelope manufacturer in the United States, with 11
manufacturing facilities and distribution centers coast-to-coast. Further
information on the company can be found on the company's Web site,
www.nationalenvelope.com.

Williamhouse is among the largest manufacturers of envelopes in North
America. Williamhouse is a franchised proprietary paper converter for over
30 of the world's finest paper makers and is a leading supplier of mill
branded specialty and commodity business envelopes and machine papers to
paper merchants/distributors and jobbers. Further information on
Williamhouse can be found at www.williamhouse.com.


AVATEX CORPORATION: Phar-Mor Write-Downs Take Toll on Earnings
--------------------------------------------------------------
In restated financial statements Avatex Corporation has reported net losses
in the three months ended June 30, 2000 at $6,447 as compared with net
losses of $5,390 in the same three month period of 1999. The restatement of
losses was due to the receipt on September 29, 2000, of news that Phar-Mor
had announced a write-down of one of its investments by $5.5 million. Phar-
Mor stated that it had recently become aware of information that indicated
that the value of one of its investments had suffered an other than
temporary decline in value from its carrying cost of $6.5 million to $1.0
million. Phar-Mor stated that it believed the decline in value occurred
during the three months ended July 1, 2000 and, therefore, it recognized
the $5.5 million additional loss in the fourth quarter of its fiscal year
ended July 1, 2000. Avatex, therefore, restated its financial statements
for the quarterly period ended June 30, 2000 to reflect an additional
equity loss of approximately $2.1 million, which is equal to its 38.4%
ownership interest in the $5.5 million additional loss reported by Phar-
Mor.

Avatex Corporation is a holding company that, along with its subsidiaries,
owns interests in other corporations and partnerships. Through Phar-Mor,
Inc., its 38% owned affiliate, it is involved in operating a chain of
discount retail drugstores. Through Phar-Mor and Chemlink Acquisition
Company, LLC, the company owns approximately 38% of Chemlink Laboratories,
LLC. Chemlink is primarily engaged in the development, manufacture and
distribution of effervescent tablet formulations for consumers and
businesses for use in cleaning, disinfectant and sterilization
applications.


CARMIKE CINEMAS: Tejas Securities Announces Coverage of Theater Chain
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Tejas Securities Group, Inc. issued a research report on Carmike Cinemas,
Inc., authored by Senior Analyst John J. Helms, CFA.  In the report, he
initiates coverage with a SELL rating.

Tejas Securities Group, Inc. is a full service brokerage and investment-
banking firm based in Austin, Texas with branch offices in Atlanta, Georgia
and Houston, Texas.  Tejas is a wholly owned operating subsidiary of
Westech Capital Corporation (OTC Bulletin Board: WSTE).  Further
information can be obtained by calling (800) 846-6803 and speaking with a
Tejas account representative.  Information about Tejas Securities Group,
Inc. and access to research reports can also be obtained through our web
site at http://www.tejassec.com. Tejas Securities Group, Inc. is a member  
of the NASD/SIPC. For further information, contact Jennifer Olsen of Tejas
Securities Group, Inc. at (800) 846-6803.

Columbus, Georgia-based Carmike filed for Chapter 11 on Aug. 8 in the U.S.
Bankruptcy Court of Delaware.  The company posted assets of $841 million
over a $652 million of debts.


CROWN VANTAGE: Appoints J.P. AuWerter as Interim Chief Financial Officer
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Crown Vantage Inc. (OTC Bulletin Board: CVANQ) announces the appointment of
J. P. AuWerter, its current Chief Restructuring Officer, to the additional
position of Interim Chief Financial Officer for the Company. Mr. AuWerter
is employed by Glass & Associates and has been assisting the Company in the
bankruptcy process since the filing on March 15, 2000.

Mr. Kent Bates, Vice President and Controller, has been named Vice
President, Controller and Chief Accounting Officer for Crown Vantage Inc.
Mr. R. Neil Stuart, Chief Financial Officer of Crown Vantage Inc., will
depart the Company on November 3, 2000. Mr. Stuart has been with Crown
Vantage since the Company was created by a spinoff from James River
Corporation in August 1995.

Bob Olah, CEO of Crown Vantage, said, "Neil has been a key contributor
during this difficult period in the history of Crown Vantage. He will be
missed, but his departure is appropriate in view of the sale and
restructuring efforts that are now being executed. We wish him well in his
future endeavors."

Crown Vantage filed for bankruptcy protection under Chapter 11 on March 15,
2000. The company recently got approval from bankruptcy court to file its
reorganization plan and solicit acceptances to Dec. 25, 2000 and Feb. 26,
2001 respectively.


DATAWORLD SOLUTIONS: June 30 Financial Statements Still Delayed
---------------------------------------------------------------
DataWorld Solutions Inc. has requested an extension of time to file its
financial information for the period ended June 30, 2000 with the
Securities & Exchange Commission. The request is said to be occasioned by
"significant transactions" occurring during the last month of that quarter.
The company wishes to finalize these transactions with its accountants.


FRUIT OF THE LOOM: CGN'S Seeks Allowance Of Administrative Expense Claim
------------------------------------------------------------------------
CGN Marketing and Creative Services Inc., is an advertising agency. Pro
Player, a unit of Fruit of the Loom, engaged CGN to create television and
radio commercials. At Pro Player's direction, CGN placed commercials in
various advertising media in select national markets. Pro Player also
independently placed ads created by CGN.

CGN is a Screen Actors Guild union contract signatory, obligating CGN to
use Screen Actors Guild talent in its commercial production. Screen
Actors Guild talent is compensated partly on the repeated airing of their
commercials. In industry parlance, such compensation is known as
residuals and is analogous to royalties.

The advertising industry has a unique operating structure. A firm
independent of the Screen Actors Guild, called a Paymaster, represents
each Guild talent. A Paymaster has three functions. First, they monitor
the airing of television and radio commercials in which the talent
performed. Second, they bill the advertising agency for appropriate
residuals. Third, they remit payment of residuals to the talent.

CGN hired American Residuals & Talent as Paymaster for the Pro Player
account. The commercials aired at the direction of both CGN and Pro
Player. American Residuals & Talent invoiced CGN for the residuals. In
turn, CGN invoiced Pro Player for the residuals and, consistent with
advertising industry practices, marked up the invoice by 17.65%.

According to CGN attorney Michael P. Kelly, Esq., from McCarter & English,
Pro Player directly ordered and aired commercials after filing its
Bankruptcy petition. As a result, CGN was billed post petition for
residuals of $16,119.52. CGN invoiced Pro Player on March 14, 2000, for
the residuals plus markup for a total of $18,964.62. Payment that was due
on April 13, 2000, has not arrived.

Mr. Kelly asks the Court to declare the receivable an administrative
expense. The decision is important to CGN because administrative expenses
are given priority and stand greater chance of payment in full. Mr. Kelly
directs the Court's attention to Section 503(b)(1), which holds, "there
shall be allowed administrative expense.including.the actual, necessary
costs and expenses of preserving the estate, including wages, salaries or
commissions for services rendered after the commencement of the case." In
addition, administrative expense status is granted to claims representing
post petition debts incurred by the debtor to preserve the estate. In re
Keegan Utilities Contractors, Inc., 70 B.R. 87, 89 (Bankr. W.D.N.Y. 1987).
Mr. Kelly assures the Court that Pro Player's airing of the commercials
was beneficial to business operations. Meantime, CGN was burdened with a
debt that remains unpaid.

Don't get your briefs in a bundle CGN, implies Fruit of the Loom counsel,
Ms. Stickles. She makes three assertions to the Court. First, to
minimize post petition commercials, Fruit of the Loom made every attempt
to cancel advertisements once the Pro Player wind down Order was granted.
In accordance with normal practice, advertisements were ordered several
months in advance and confirmed about one month before scheduled airing.
As promptly as possible, Pro Player contacted CGN to cancel outstanding
advertising orders that were revocable.

Second, commercials ordered prepetition but aired post petition do not
constitute a post petition liability. Ms. Stickles asserts that CGN is
not entitled to an administrative expense claim for amounts allegedly owed
based on commercials placed pre-petition. In re Jartran, Inc., 732 F.2d
584, 587 (7th Cir. 1984). In this case, the Seventh Court held that Debtor
did not create a post petition transaction by ordering commercials
prepetition, which were then aired post petition.

Third, she holds that CGN fails, on several counts, to meet the burden of
proof necessary for an administrative expense claim. The motion by CGN
does not indicate when the commercials were ordered or aired and CGN
offers no evidence that the commercials were ordered post petition.

According to Fruit of the Loom records, no commercials were ordered post-
petition. In addition, Ms. Stickles tells Judge Walsh there is no proof
the commercials directly and substantially benefited the estate, because
any transaction that may have occurred benefited Pro Player, which was
being wound down. She highlights for the Court In re Continental
Airlines, 146 B.R. 520, 526 (Bankr. D. Del. 1992), which established that
the burden of proof is on the creditor seeking administrative expense
priority.

CGN gives no indication that there is any urgency or necessity to the
alleged debt. It offers no argument explaining why it should be paid
ahead of other claimants. Most courts postpone similar payment until
confirmation of a plan of reorganization.

Fruit of the Loom asks Judge Walsh to either sustain its objection in
entirety, or allow the administrative expense claim to be paid after
confirmation of a plan of reorganization.

The filing includes a correspondence between Fruit of the Loom and CGN.
Debtor counsel, Craig P. Druehl, Esq., of Milbank, Tweed, Hadley & McCloy
sent a facsimile to CGN offices requesting initiation of discovery in an
attempt to determine if any CGN ads were ordered post petition. CGN
counsel, Maurice J. Ringel Esq., from Ringel Law Group, responded with a
letter to Mr. Druehl. It is dated September 6, 2000. Mr. Ringel writes,
"CGN does not wish to provide your client with the discovery you have
requested in the informal and consensual manner that you have proposed."
(Fruit of the Loom Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


GENESIS/MULTICARE: Quakertown Ex-Employees Seek Relief from Automatic Stay
--------------------------------------------------------------------------
Iris Lang and Lois Hennessy ask the Court to lift the automatic stay in
Genesis Healthcare Ventures, Inc.'s chapter 11 cases to permit them to
proceed with their respective pre-petition claims against GHV and Straus
Quakertown Manor Limited Partnership. Both cases are pending before the
United States Court of the Eastern District of Pennsylvania, in connection
with alleged unlawful termination of employment each as a licenced
practical nurse at The Quakertown Center, in violation of the Age
Discrimination in Employment Act, 29 U.S.C. section 621, et seq. (ADEA).

Ms. Lang (Case No. 99-CV-3478) and Ms. Hennessy (Case No. 99-CV-2762)
separately submit that the parties have engaged in extensive discovery and
each respective case was close to trial readiness when the Debtors'
chapter 11 cases commenced.

Mesdames Land and Hennessy are represented by Steven A. Cotlar, Esq., of
Doylestown, Pennsylvania. (Genesis/Multicare Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


GLIMCHER REALTY: S&P Revises Outlook From Stable To Negative
------------------------------------------------------------
Standard & Poor's revised its outlook on Glimcher Realty Trust to negative
from stable. In addition, existing ratings on the company's corporate
credit and preferred stock were affirmed.

The outlook revision reflects the deterioration in debt coverage measures
expected to take place through 2001, due primarily to higher interest costs
associated with expected near-term refinancings. The company's corporate
credit rating affirmation acknowledges this retail REIT's below-average
business position and its relatively aggressive financial profile. The
company's ratings are supported by a well-occupied and profitable (but
comparatively smaller) portfolio, which generates a stable, predictable
cash flow from a diverse and relatively creditworthy tenant base. However,
these strengths are offset by a sizable amount of variable-rate debt
maturing in the near term, generally higher leverage and bank-line usage,
and a mostly encumbered portfolio.

Columbus, Ohio-based Glimcher is a fully integrated REIT with a retail
property focus. Founded in the 1950s as a family development concern,
Glimcher went public in 1994. The portfolio now includes 114 properties
representing about 31 million square feet of mall, community shopping
center, and stand-alone retail space. However, the company intends to sell
most of its community centers and all of its stand-alone assets by year-end
2001. After the sale, malls will represent about 80% of gross leaseable
area and 90% of total minimum base rents, as opposed to the current 60% and
70%, respectively.

Both the mall portfolio and the community center portfolio remained well-
occupied at 93% and 96%, respectively, as of June 30, 2000. While
corporate-level profitability remains about average, the company's
efficiency measures and operating margins are better than those of most of
its retail peers. Tenant diversity is currently adequate, with the top 10
tenants representing close to 20% of total minimum base rent as of June 30,
2000. The tenant bases of the mall portfolio and the community center
portfolio differ, with the top mall tenants including such names as The
Limited, Foot Locker, J.C. Penney, and The Gap, and the top community
center tenants containing names such as Wal-Mart, Kmart, Kroger, and
Lowe's. The company remains geographically concentrated: 34% of its net
operating income originates from the Midwest, with Ohio alone representing
26% of the total.

Leverage has remained relatively unchanged over the past few years, with a
current debt-to-book value capital ratio close to 70%. After adjustment for
the estimated value of the portfolio in excess of book value, leverage is
probably closer to 60%, which compares with an average of 54% for retail
peers. Historically, bank-line usage has been high, with outstanding
amounts averaging between 60% and 85% of total availability. Usage is
expected to remain higher than desirable, although management expects to
apply asset sale proceeds toward debt reduction. The company's portfolio is
essentially fully encumbered, although management has, to date, been
successful at refinancing its maturing secured debt obligations.

While debt service coverage and fixed-charge coverage have remained
relatively stable at about 2.1 times (x) and 1.6x, respectively, since the
beginning of 1999, Glimcher's cash flow stream has been benefiting from the
subsidy provided by the lower cost of variable-rate debt (about 40% of
total debt currently). This will change, as the variable-rate debt (which
is not repaid with asset sales but is being refinanced in 2001) will be at
higher rates and for longer terms. As a result, debt service coverage and
fixed-charge coverage are expected to decline modestly to about 1.9x and
1.5x, respectively, in 2001.

OUTLOOK: NEGATIVE

About 40% of the company's total debt matures in 2001. While the company's
refinancing plan appears achievable, the weighted average cost of the
refinanced debt as well as that of other existing floating-rate debt is
expected to increase, which will strain debt coverage measures. In
addition, the company's refinancing plan, its debt reduction plans, and its
shift toward a mall-focused strategy are dependent on asset sales, which
have been slower to materialize than initially expected. The negative
outlook will remain appropriate until the portfolio repositioning and 2001
refinancings have been successfully completed. A sharper dip in fixed-
charge coverages would warrant a reduction in ratings, Standard & Poor's
said.


HARNISCHFEGER INDUSTRIES: Stipulation Pays Katten Muchin Contingency Fee
------------------------------------------------------------------------
Under a 1996 Letter Agreement, the law firm of Katten Muchin & Zavis
represented Beloit Corporation and Joy Technologies, Inc., in a proceeding
before the United States Court of International Trade (Case No. 96-05-
01223-01), prosecuted a complaint against the United States to judgment
and obtained a $408,212 refund of Harbor Maintenance Taxes (paid pursuant
to 26 U.S.C. Sec. 2644) in May, 1999. The Government sent Beloit a refund
check in June, in care of KMZ.

KMZ says it is owed $24,423 and won't release the check. KMZ asserts an
Illinois common law retaining lien in reliance on Anthony v. Bitler, 911
F.Supp. 341 (N.D. Ill. 1996), and Upgrade Corp. v. Michigan Carton Co.,
410 N.E.2d 159 (Ill. App. 1980). The Debtors say the refund is property
of their estates and KMZ should file a proof of claim and wait for payment
under a plan of reorganization.

To resolve their dispute and avoid further litigation, the Debtors and KMZ
sought and obtained Judge Walsh's approval of a Stipulation providing
that:

    (A) KMZ will turnover the refund check to the Debtors;

    (B) the Debtors will pay KMZ a flat $18,400 fee for their work;

    (C) KMZ will withdraw all proofs of claim filed against the Debtors.

(Harnischfeger Bankruptcy News, Issue No. 28; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


INGRAM MICRO: Moody's Lowers $1.036 Bln Convertible Debentures To Ba2
---------------------------------------------------------------------
Moody's Investors Service lowered the ratings to Ba2 from Ba1 on Ingram
Micro's $1.036 billion (currently outstanding principal amount at maturity)
zero coupon convertible debentures, due 2018, and to Ba1 from Baa3 on the
company's guaranteed United States, European and Canadian revolving credit
facilities. At the same time, Moody's lowered the company's senior implied
rating to Ba1 from Baa3 and its senior unsecured issuer rating to Ba2 from
Ba1. These rating actions complete a review commenced on May 22, 2000. The
ratings outlook on the company's debt has been revised to stable.

The ratings downgrade is based on Moody's assessment of Ingram Micro's
operating income decline in FY1999 and the uncertain recovery of the
company's margin performance to levels exhibited in prior periods. Although
the company has managed its balance sheet effectively and has maintained an
excellent liquidity position, the heightened 5.6 times debt to cash flow
ratio, reduced free cash flow coverage to 1.7 times fixed charges, and
modest returns on assets and invested capital, based on EBITA plus rentals,
of 3.6% and 7.3%, respectively, for the LTM ended July 1, 2000 are not
consistent with an investment grade ranking, particularly for the company's
characteristically low margin distribution activity.

The ratings additionally take into consideration Ingram's high proportion
of systems sales to corporate resellers who could alternatively engage
vendors directly; the protracted ramp of the company's European, Asian and
Latin American investments as its operations evolve in the face of uneven
information technology growth trajectories overseas; and the company's
propensity to maintain a preponderance of stock keeping units (SKUs). In
rapidly expanding IT environments, these facets of Ingram's business add
considerable leverage to the company's worldwide distribution
infrastructure. However, Ingram Micro's high fixed costs of operations
place it in a less flexible position in an environment with mature
technology platforms and less predictable upgrade cycles, particularly with
respect to the negotiations it must conduct with the formidable OEM vendors
that dominate the IT stage. Additionally, SG&A expense, while having
declined modestly from 4.2% of revenues in FY1997 to 4.0% over the LTM
ended June 30, 2000, does not reflect the economies of scale and benefits
derived from large investments in information systems, warehousing systems
and infrastructure that might be expected from an industry-leading
organization over one-and-a-half times the scale of its nearest competitor.

Moody's believes that Ingram Micro's deliberate approach to decision-making
could impair the company's prospects. Incisive analysis and execution are
critical in a business as dynamic as information technology distribution.
While a capacity for forbearance and strategic planning is appropriate
under certain circumstances, in Moody's opinion Ingram's ability to
formulate and expedite an effective policy response to changing terms and
conditions wrought by systems vendors, and aggressive pricing strategies
initiated by struggling competitors, has not been adequately demonstrated.
Additionally, the learning curve necessitated by turnover at key positions
within Ingram's upper echelons has failed to compensate for the expertise
embedded in veteran management.

Despite the apparent advantages of scale and a highly sophisticated
logistics capability that is now being offered to suppliers who are opting
to contract with the company on a consignment basis, Ingram Micro has only
recently succeeded in persuading its largest vendors to reverse the
aggressive enforcement of terms and conditions that prevailed in recent
quarters. In Moody's opinion, the company's leverage with vendors is
mitigated by the sizable proportion of its sales to corporate resellers,
many of whom maintain or are capable of establishing direct relationships
with the vendors, and who could potentially bypass the channel for
purchases that meet minimum volume thresholds. Additionally, during 1999
the company experienced significant time lags in reconciling the changed
terms and conditions imposed on it, particularly with regard to excess and
obsolete inventory, with the terms and conditions it extends to its
reseller customers.

The ratings, however, are supported by Ingram Micro's solid balance sheet
and ample liquidity. As of June 30, 2000, Ingram's $2.04 billion of debt,
including off balance sheet securitized accounts receivable and the
capitalization of the company's operating leases, comprised 52.4% of
capitalization against $1.85 billion of equity (47.4%), well within the
range sought by the company. Aggregate debt decreased from $2.19 billion as
of July 3, 1999, or by about 7%, but, more importantly, from as high as
56.8% of capitalization. Inventories of $2.55 billion were also down by
$300 million over the year, although sales had climbed 11.5% to $15.1
billion in FY2000H1 from $13.5 billion in FY1999H1, contributing to an
improvement in inventory turnover to 11.2 times over the LTM ended June 30,
2000 from 10.0 times one year earlier. Accounts receivable turnover
increased over this period as well to 10.6 times from 9.8 times one year
earlier. The company had an aggregate borrowing availability of $1.65
billion under its revolving credit facilities, of which $224 million had
been drawn as of FY2000Q2 end, and up to $700 million of commercial paper
which could be issued under the five-year accounts receivable
securitization program.

The ratings are further supported by Ingram Micro's stature as the largest
distributor of information technology products throughout the world with a
revenue run rate in excess of $30 billion, and the company's capacity to
address a changing competitive environment. Within the $67 billion two-tier
United States distribution market, Ingram accounted for 27% of sales,
substantially higher than its principal competitor, Tech Data, which ranks
second with a 17% share. Nevertheless, the consolidation within the US
domestic market among broad line channel distributors has given way to
distribution within specialized niche markets where IT distributors compete
by focusing on discrete product categories where they can provide more
technical product information and support. Ingram is attending to this
market segment by eenhancing its sales and marketing effort through the
establishment of specialized business offerings to better service its
reseller customers.

The ratings are additionally buttressed by Ingram Micro's focus on
electronic commerce to facilitate information technology product sales.
Electronic commerce accounted for 33% of FY2000Q2 US sales, representing a
50% year-over-year increase. The company has benefited as the principal
fulfillment provider to Internet resellers which have emerged among its
largest customers but possess limited, and, frequently, no physical
infrastructure nor logistics capabilities to realize the promise of their
Web based business models. Additionally, Ingram has developed numerous
enhancements for its own Web site which has extended for online use its
real-time pricing and availability, ordering, order status and product
catalog information, as well as several proprietary business-to-business
tools for the technology solutions industry.

These activities have contributed to the significant strides Ingram has
made in FY2000, for which the company deserves recognition, to reverse the
unacceptable 3.67% gross margin recorded in FY1999Q4. A shift in strategy
in FY2000Q1 emphasizing pricing discipline over revenue growth contributed
to sequential gross margin recovery to 4.70% in FY2000Q1 and to 4.96%
FY2000Q2. However, in Moody's opinion, Ingram's restoration of margins and
investment returns to pre-1999 levels will be difficult.

Ingram Micro Inc., headquartered in Santa Ana, California, is the world's
largest wholesale provider of technology products and services, and a
leader in assembly and integration services.


LIVING.COM: Maynards Industries Wins Bid To Oversee Liquidation Sale
--------------------------------------------------------------------
Canadian liquidator Maynards Industries Ltd. beat out two other companies
with a bid of 59.44 percent of the inventory's wholesale value and Monday
was named the liquidator in the Living.com bankruptcy. The bid could be
worth about $4.4 million, based on Living.com's records. Bankruptcy trustee
Lisa Poulin has taken bids on the defunct company's intellectual property,
which includes Living.com's domain name, its customer database and its Web
site, but no one knows whether selling those assets will recoup even the
$22.6 million owed to the company's largest secured creditor, Comdisco Inc.  
(ABI 18-Oct-00)


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.


MEDIQ, INC.: Continues to Project Short and Long-Term Cash Shortfalls
---------------------------------------------------------------------
Mediq, Inc. has reported net losses for the three and nine months ended
June 30, 2000 of $26,678 and $63,870 respectively. These losses compare to
losses of $13,924 and $33,862 for the corresponding three and nine month
periods of 1999.

Mediq/PRN Life Support Services, Inc., a wholly owned subsidiary of the
cmpany, is in default of a number of covenants under its $325 million
Senior ecured Credit Facility, including timely filing of financial
information for fiscal 1999 and fiscal 2000, meeting certain financial
ratios, and the non-payment of certain interest and principal. Potential
additional events of default may also exist. The lenders to the credit
facility have the right to accelerate payment of all amounts outstanding
under the facility as a result of these defaults. Although the lenders have
not yet exercised that right, there can be no assurance that they will not
do so in the future. The company and Mediq/PRN are also in violation of a
number of covenants under the indentures for the company's 13% Senior
Discount Debentures due 2009 and 7.5% Exchangeable Debentures due 2003, and
Mediq/PRN's 11% Senior Subordinated Notes due 2008. The indentures contain
cross default provisions that accelerate debt outstanding under each
instrument in the event that outstanding debt under any other loan
arrangement is in default and thereby accelerated.

In a letter dated May 25, 2000, the lenders to the credit facility sent
notice to the trustee for the 11% notes and the company to effect a payment
blockage on the 11% notes such that the semiannual interest payment of
$10.5 million payable on June 1, 2000 was not made. The indenture to the
11% notes permits the lenders under the credit facility to elect to block
the payment of amounts due and payable with respect to the 11% notes for a
period of up to 180 days. This payment blockage may occur during a period
of default under the credit facility in which the maturity of debt
outstanding thereunder may be accelerated. Any nonpayment of interest on
the 11% notes existing for more than 30 days would be an event of default
under the indenture to the 11% notes. As long as the maturity of the debt
outstanding under the credit facility has not been accelerated, payments
with respect to the 11% notes may be continued after the payment blockage
period expires.

On June 12, 2000 and June 30, 2000, Mediq/PRN made $8.5 million in
payments under the credit facility. Such payments represented normal
interest costs, LIBOR/prime plus the applicable margin, but did not include
default interest of $1.8 million as required under the credit agreement.
Non-payment of such interest constitutes a default under the credit
facility. In addition, Mediq/PRN notified the lenders for the credit
facility that the company intended to defer the principal payment of $3.3
million due June 30, 2000 to $1.1 million payable July 21, 2000; $1.1
million payable August 18, 2000; and $1.1 million payable September 15,
2000. Such deferment constitutes a default under the credit facility.
Mediq/PRN has made all the deferred payments. The company's next
significant payment of principal and interest was due September 30, 2000,
under the terms of the credit facility, and aggregates $11.3 million,
excluding default interest of $1.5 million. On October 2, 2000, Mediq/PRN
paid $8.0 million in normal interest costs, prime plus the applicable
margin, pursuant to such payment. Mediq/PRN has no plans at this time to
pay the principal of $3.3 million or the default interest.

The non-payment of the principal and default interest constitutes defaults
under the credit facility. While the credit facility is in default, the
ultimate disposition of the debt outstanding thereunder, as well as the
debt outstanding under the various indentures, is not under the control of
Mediq Inc. As a result, all outstanding principal under the credit facility
and the indentures at June 30, 2000 was classified by the company as
current liability.

Until a formal agreement relating to the defaults and potential defaults is
reached with the lenders, the company is unable to access the credit
facility and must fund its working capital needs through other sources of
cash. The company's current cash forecast indicates that it has short-term
and long-term cash flow deficiencies for funding timely principal and
interest payments. The company does not have sufficient current assets nor
does it presently have any other available sources of capital to satisfy
the current liability represented by the potential to accelerate amounts
outstanding under the credit facility and indentures. In addition, the
credit facility permits the lenders thereunder the right to liquidate
collateral under the security agreement thereto to satisfy amounts
outstanding. The credit facility is secured by a first priority lien and
security interests in substantially all tangible and intangible assets of
Mediq/PRN and its subsidiaries.

The company has incurred recurring losses from operations, has negative
working capital, and a significant shareholders deficiency. These
conditions plus the foregoing circumstances raise substantial doubt about
the company's ability to continue as a going concern. The company indicates
that it cannot predict at this time what actions may be taken with respect
to its continued existence.


MEDLAND CONTROLS: Case Summary and 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Medland Controls, Inc.
         2393 Newton Avenue Suite B
         San Diego CA 92113

Chapter 11 Petition Date: October 6, 2000

Court: Southern District of California

Bankruptcy Case No.: 00-09820

Judge: John J. Hargrove

Debtor's Counsel: Peter Ito, Esq.
                   Baker & McKenzie
                   101 West Broadway Suite 1200
                   San Diego CA 92101
                   (619) 236-1441
                   Fax (619) 236-0429

Total Assets: $ 1,064,035
Total Debts : $ 2,895,683

20 Largest Unsecured Creditors:

W & O Supply
1635 Coolidge Avenue
National City CA 91950                                       $ 354,574

Internal Revenue Serv.
Fresno CA 93888                                              $ 295,106

Wach Energy Services                                         $ 125,790

Worldwide Labor Support                                      $ 120,868

Aqua-Chem Inc.                                                $ 90,999

Potter Electric                                               $ 70,530

Analysis & Tech.                                              $ 60,000

Toshiba International                                         $ 58,627

Employment Development                                        $ 54,215

Howell Laboratories                                           $ 53,000

Fraser Boiler Co.                                             $ 41,700

Machl Air Services                                            $ 41,464

Boiler Cleaning                                               $ 39,238

Metalico                                                      $ 35,152

JA Moody Equipment                                            $ 31,099

Republic Brass Sales                                          $ 29,938

Best Western                                                  $ 26,605

Integrity Staffing Serv                                       $ 26,031

Delta Seals                                                   $ 25,987

California Marine Clean                                       $ 20,370


MONARCH DENTAL: Appoints W. Barger Tygart as Interim Board Chairman and CEO
---------------------------------------------------------------------------
Monarch Dental Corporation (Nasdaq:MDDS) announced the appointment of W.
Barger Tygart as interim Chairman of the Board and Chief Executive Officer.  
Mr. Tygart, age 65, will succeed Dr. Warren Melamed, D.D.S., age 54, as
Chairman of The Board.  Dr. Melamed will remain on as a Board member. In
addition, Gary Cage has announced his decision to resign as Chief Executive
Officer and Director of the Company.  An executive search firm will be
retained to find a permanent replacement for Mr. Cage.

Mr. Tygart has served on Monarch's Board of Directors since February 1999.
He is currently President and Chief Executive Officer of E-Tygart
Consulting Group, an e-commerce consulting firm.   Prior to this position,
Mr. Tygart spent 38 years at J.C. Penney Company, Inc. where he most
recently served as Vice Chairman of the Board. Mr. Tygart also served as
J.C. Penney's President and Chief Operating Officer from 1995 until his
retirement in 1997.   Mr. Tygart also currently serves on the Board of
Directors of Burlington Industries, Inc. and Piranha, Inc.

Mr. Tygart commented, "I look forward to playing a larger role in the
management of Monarch Dental as we move into a new stage in our  growth
strategy.  Our negotiations with our lenders and efforts to refinance our
credit facility remain on track.  Separately, I would like to thank Gary
Cage for his significant contribution to Monarch Dental over the past four
years and wish him continued success in his future endeavors."

As published in the Sept. 6 edition of the Troubled Company Reporter,
Lenders of Monarch Dental has agreed to extend the time to complete the
process of exploring strategic alternatives, including possible sale or
merger of the company, or the refinancing of its outstanding indebtedness.

Monarch Dental currently manages 190 dental offices serving 20 markets in
14 states.  The Company seeks to build geographically dense networks of
dental providers primarily by expanding within its existing markets, but
also by selectively entering new markets through acquisitions.


NEWCOR, INC: Posts $6.2 Million Decrease in Third Quarter Sales
---------------------------------------------------------------
Newcor, Inc. (Amex: NER) announced that sales for the quarter ended,
September 30, 2000 were $55.0 million; a decrease of $6.2 million or 10%
from sales of $61.2 million for the same period of 1999. The decrease in
sales is primarily attributable to a decline in the company's heavy-duty
truck market segment of 34.7% to $12.9 million in the third quarter of 2000
as compared to $19.8 million in the same quarter of the prior year. In
addition, sales in the automotive market segment of the company were $29.2
million in the quarter ended, September 30, 2000 as compared to $31.8
million in the comparable period of 1999, a decline of 8.1%. These were
partially offset by the agricultural market sales which increased over 94%
from the prior year to $7.8 million in the third quarter of 2000. The
special machines market segment had comparable sales for the prior period.

Gross margin was $7.9 million or 14.3% of sales in the third quarter of
2000; an improvement of $1.2 million as compared to a gross margin of $6.7
million or 11.0% of sales in the third quarter for 1999. The improved
margin in the current year is attributable to company-wide productivity
improvements and cost reduction efforts. In the automotive segment
significant start up problems related to a new product launch were incurred
in the third quarter of 1999 which now have been resolved.

Operating income in the third quarter ended, September 30, 2000 was $3.3
million or 6% of sales as compared to a loss of $(1.2) million in the third
quarter of 1999. This margin improvement reflects the items noted above as
well as aggressive cost cutting efforts at the sales, general and
administrative expense level.

During the quarter ended, September 30, 2000, the company incurred
approximately $900 thousand of professional fees related to advice and
counsel regarding certain exchange offer documents filed with the
Securities and Exchange Commission. In addition, these professional fees
also were required to assist the company in its assessment of a partial
stock purchase offer proposed by a shareholder of the company.

Adjusted earnings before interest, taxes and depreciation (EBITDA) were
$6.1 million prior to incurring the professional fees noted above ($5.2
million after considering such professional fees) for the third quarter of
2000 as compared to $2.0 million for the third quarter of 1999. Adjusted
EBITDA for the nine months ended, September 30, 2000 prior to incurring the
professional fees was $21.3 million ($19.7 million after considering such
professional fees) as compared to $17 million for the same nine months of
1999. As of September 30, 2000 the company had borrowings of approximately
$1.7 million and had $22.3 million of available credit under its revolving
credit agreement.

Net income for the third quarter of 2000 was a loss of $(792) thousand or
$(.16) cents per share as compared to a loss for the three month period
ended, September 30, 1999 of $(3.1) million or $(.63) cents per share. Net
income for the nine month period ended, September 30, 2000 was a loss of
$(716) thousand or $(.14) cents per share compared to a loss of $(2.0)
million or $(.40) cents per share in 1999. Adjusted net income for the nine
months ended, September 30, 2000 without considering the professional fees,
would have been $307 thousand or $.06 cents per share.

"We are pleased to report that even after considering the significant sales
decline of approximately 10% in the third quarter of 2000 as compared to
the same period in 1999 operating margins and EBITDA margins improved
significantly. The product launch problems that we incurred in 1999 are
well behind us as we move forward into 2001," noted James J. Connor,
President and Chief Executive Officer of NEWCOR, Inc. "We continue to
aggressively cut costs, eliminating waste and move towards a lean
manufacturing philosophy within our operations. We will continue to
aggressively reduce costs to offset the softness in the markets that we
service, particularly the heavy- duty truck market which has historically
been one of our most profitable segments." Mr. Connor continued, "In
addition to the heavy-duty truck market, we also see considerable softness
in our capital goods equipment market. The softness of these two markets
will continue through the balance of 2000 and into 2001."

NEWCOR, Inc., headquartered in Bloomfield Hills, Michigan designs and
manufactures precision machine and molded rubber and plastic products as
well as custom machines and manufacturing systems. NEWCOR, Inc. is listed
on the AMEX under the symbol NER.


PATHMARK STORES: Emerges from Chapter 11 and Closes on $600 Exit Financing
--------------------------------------------------------------------------
Pathmark Stores, Inc., has emerged from Chapter 11 bankruptcy protection as
a reorganized public company with its nearly $1 billion in bond
indebtedness eliminated. Pathmark also closed on its previously announced
$600 million exit financing with a group of financial institutions led by
The Chase Manhattan Bank.

Pathmark filed its prepackaged plan of reorganization on July 12, 2000 in
the U.S. Bankruptcy Court in Delaware with the overwhelming support of its
bondholders. The Plan, approved by the Court on September 7, 2000, will
result in Pathmark's bondholders receiving 100% of Pathmark's common stock
and warrants to purchase additional shares. Pathmark's new common stock and
warrants will be listed on the NASDAQ Stock Market under the symbols "PTMK"
and "PTMKW," respectively.

Jim Donald, Chairman, President and CEO said, "We are pleased to have
completed a swift and consensual reorganization and look forward to
operating with a greatly improved financial structure".

Pathmark is a regional supermarket company operating 137 stores primarily
in the New York-New Jersey and Philadelphia metro areas.


PAYLESS CASHWAYS: New Openings And Store Closures To Lessen $60M Debt
---------------------------------------------------------------------
Payless Cashways, Inc. (OTC Bulletin Board: PCSH), a full-line building
materials and finishing products company, announced several initiatives
that will accelerate the ongoing transition of the company's business model
to focus on the professional builder, remodel and repair contractor,
institutional buyer and project-oriented consumer, including the opening of
PCI Builders Resource stores and the closing of a number of other stores.

Five new PCI Builders Resources facilities have opened in Cincinnati, Ohio;
Lake Dallas and Duncanville, Texas; Denver, Colorado; and Kansas City,
Missouri. PCI Builders Resource facilities, one of the Company's new growth
initiatives, are primarily developed, inventoried, staffed, and equipped to
serve the professional homebuilder. Professional homebuilders currently
represent the largest segment of Payless Cashways' professional business.

These new locations will provide for more intense focus and better and more
complete services for the homebuilder, and allow the Company to benefit
from better leverage of resources in a lower cost non-retail facility
capable of higher volume capacity.

Millard Barron, President and CEO commented, "I continue to be pleased with
our developing business model and our improving profit model. These five
new PCI Builders Resource operations represent our commitment to become the
dominant and preeminent supplier for homebuilders in our markets. Our
experienced senior team is comprised of some of the best executives in the
industry, and together we are developing PCI Builders Resource facilities
and Contractor Supply stores, adding to our manufacturing capability,
enhancing and improving our full-line Payless Cashways, Inc. locations, and
strengthening our Company-wide sales organization in a very organized and
efficient manner."

The Company also announced that in coordination with the introduction of
these new outlets, 22 existing retail locations will be closed. As a
result, the Company presently anticipates that its fourth quarter 2000
results will include non-recurring, special charges of approximately $13 to
$15 million, net of taxes, to provide for corporate and store staff
eliminations, lease commitments, and certain fixed asset and inventory
disposal costs associated with the consolidation and closure of these
retail locations.

Mr. Barron continued, "In August, 2000, the Company retained Andersen
Consulting, as well as the Peter J. Solomon Company, a leading investment
banking firm providing financial and strategic advisory services to a
select group of public, private, and institutional clients. These groups
have assisted and partnered with management and the Board in reviewing and
considering the business model, the profit model, and appropriate financial
strategies. In that regard, we will continue to develop and implement
initiatives designed around our mission statement and our target customers,
which are in the best interests of our stockholders. While closing stores
is always a difficult decision, the continuing reallocation and
redeployment of our assets and resources is essential as we reposition our
Company. Additionally, these actions will allow us to significantly improve
our balance sheet through a debt reduction goal of $60 million, and better
position us to attract new investment for growth in the future."

Payless Cashways, Inc. is a full-line building materials and finishing
products company focusing on the professional builder, remodel and repair
contractor, institutional buyer, and project-oriented consumer. The Company
operates 155 stores in 18 states located in the Midwestern, Southwestern,
Pacific Coast and Rocky Mountain areas. The stores operate under the names
Payless Cashways, Furrow, Lumberjack, Hugh M. Woods, Knox Lumber, PCI
Builders Resource and Contractor Supply.


PHC, INC.: Healthcare Provider's Fiscal Year Ends on a Profitable Note
----------------------------------------------------------------------
PHC, Inc., dba Pioneer Behavioral Health, a provider of inpatient and
outpatient behavioral health services, has reported results for the fiscal
year ended June 30, 2000. Income from operations prior to interest, taxes,
depreciation, amortization and Internet expenses rose to $1,139,318 for the
fiscal year ended June 30, 2000 from $932,660 for the prior year. Revenue
for the year rose to $20,378,760 from $19,139,496 for the fiscal year ended
June 30, 1999, a 6.5% increase.

Commenting on the results, Bruce A. Shear, President, stated, "We have
reached another milestone, which was a return to profitability from our
core business, and our operating income was the highest in six years.
Income from operations prior to our Internet company expenses was $749,314
for the fiscal year ended June 30, 2000 compared to a loss of $542,175 for
the prior year, an increase of $1,291,489. On a consolidated basis, PHC,
Inc. reported a net loss of $1,577,145. Included in this net loss are
expenses from our Wellplace.com Internet subsidiary of $520,463 and
$964,474 for dividends on preferred stock."

Shear added, "Occupancy levels at our treatment facilities continue at a
high level for the month of September. We recently announced a number of
new contracts at our Harmony Healthcare and Pioneer Pharmaceutical Research
divisions that are just beginning to generate revenue, and are expected to
contribute greatly to enhancing shareholder value during this current
fiscal year."

Pioneer's Internet subsidiary recently launched its new website and changed
its name to Wellplace.com. "This new site, along with the recently
announced acquisition of TherapyRightNow and the appointment of Joyce
Reitman as Chief Executive Officer, will also contribute greatly to
enhancing shareholder value during this fiscal year. The architecture and
management team is now in place to take Wellplace.com to the next level,"
Shear concluded.

Pioneer Behavioral Health's core business provides inpatient and outpatient
behavioral healthcare services. The company contracts with national
insurance companies, major transportation and gaming companies to provide
behavioral health services. Pioneer also owns and operates WellPlace.com, a
leading Internet-based provider of behavioral health services to consumers
and professionals.


PHYSICIANS RESOURCE: Dallas Court Approves Debtor's Disclosure Statement
-------------------------------------------------------------------------
Physicians Resource Group Inc. (X.PYG) recently won court approval of a
disclosure statement for its amended Chapter 11 plan of liquidation.
According to company counsel Robin Russell of Andrews & Kurth LLP, the
company revised its original plan before the hearing. The amendments
resolved any outstanding objections to the disclosure statement and the
company believes the amended plan will be consensual. The U.S. Bankruptcy
Court in Dallas is scheduled to consider plan confirmation at a Dec. 1
hearing. The amended plan gives certain physicians a one-time option to
participate in a discounted buyout program that would resolve existing
claims under management service agreements between the physicians and
Physicians Resource. To participate in the discounted buyout program,
physicians must opt in within a certain window and vote to accept the plan.  
(New Generation Research, Inc., 18-Oct-00)


PRIME RETAIL: Milberg Weiss Files Class Action Shareholder Complaint
--------------------------------------------------------------------
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a
class action lawsuit was filed on October 13, 2000, on behalf of purchasers
of the securities of Prime Retail, Inc. ("Prime Retail" or the "Company")
(NYSE:PRT) between May 28, 1999 and January 18, 2000, inclusive. A copy of
the complaint filed in this action is available from the Court, or can be
viewed on Milberg Weiss' website at: http://www.milberg.com/primeretail/

The action is pending in the United States District Court for the District
of Maryland, located at 101 W Lombart St. Baltimore, MD 21201, against
defendants Prime Retail, William H. Carpenter (President and Chief
Operating Officer), Abraham Rosenthal (Chief Executive Officer and
Director), Michael W. Reshke (Chairman of the Board), and Robert P.
Mulreaney (Chief Financial Officer).

The complaint charges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder
by issuing a series of material misrepresentations to the market between
May 28, 1999, and January 18, 2000. For example, the complaint alleges that
on May 28, 2000, Prime Retail announced the construction of an outlet
center in Puerto Rico without revealing its lack of financing for the
project, requiring the Company to fund it with cash that it did not have
because-- also unbeknownst to investors--its operations were deteriorating.

Furthermore, the complaint alleges, Prime Retail assured investors
throughout the Class Period that it would issue a dividend in its fourth
quarter of 1999, even though it knew, or recklessly disregarded, that its
deteriorating operations and debt-laden balance sheet would make issuing a
dividend impossible. On January 18, 2000, Prime Retail announced that it
will suspend its common dividend for 2000 because of lowered occupancy
rates and cash shortage. In response to the announcement, Prime Retail's
stock price dropped by 37% from its prior day close.


PROPERTY TECHNOLOGIES: Case Summary and 20 Largest Unsecured Creditors
----------------------------------------------------------------------
Debtor: Property Technologies, Ltd.
         6501 Dickens Place
         Richmond, Virginia 23230

Chapter 11 Petition Date: October 18, 2000

Court: Eastern District of Virginia Richmond Division

Bankruptcy Case No.: 00-61155

Debtor's Counsel: Brett A. Zwerdling, Esq.
                   Zwerdling and Oppleman
                   5020 Monument Avenue
                   Richmond, Virginia 23230

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

20 Largest Unsecured Creditors:

North Supply Company
600 New Century Parkway
New Century, KS 66031
(913) 791-7000                        Trade Debt             $ 483,392

William C. Muller
3148 N.W. 118 Lane
Coral Springs, FL 33065               Stock Purchase         $ 438,406

Alejandro "Alex" Perez
311 Washington Ave.
Lake Mary, FL 32746-3507              Stock Purchase         $ 436,406

Graybar Electric
  Company, Inc.
P.O. Box 6774
Richmond, VA 23230
(804) 354-1300                        Trade Debt             $ 393,723

Hitachi Telecom (USA), Inc.
Drawer C S 198306
Atlanta, GA 30384
(404) 446-8820                        Trade Debt             $ 353,876

Innovation Voice Technologies,
  Inc.                                 Trade Debt             $ 151,862

Mitel, Inc.                           Trade Debt             $ 142,096

Telematrix Equipment, LLC             Trade Debt              $ 74,216

Sprint                                Trade Debt              $ 67,591

Global Telecom Group, Inc.            Trade Debt              $ 62,424

K-Com International, Inc.             Trade Debt              $ 42,653

Xeta Corporation                      Trade Debt              $ 41,640

@Comm Corporation Dept.               Trade Debt              $ 35,964

Tadiran/ECI Telecom                   Trade Debt              $ 34,001

Keiter, Stephens, Hurst, Gary         Professional Serv       $ 33,471

Peterson Electronics                  Trade Debt              $ 31,441

Tel-Star Communications, Inc.         Trade Debt              $ 29,700

Teledex, LLC                          Trade Debt              $ 19,983

Spectralink Corporation               Trade Debt              $ 18,449

Tel Electronics                       Trade Debt              $ 18,049


SAFETY-KLEEN: Seeks To Continue Kern County Tax Assessment Contest
------------------------------------------------------------------
Lawrence V. Gelber, Esq., appearing for Safety-Kleen, sought and obtained
an order from Judge Walsh confirming that the automatic stay applicable in
these cases under 11 U.S.C. Sec. 362(d) allows the Company to continue
prosecuting a case before the Assessment Appeals Board of Kern County,
California. Mr. Gelber related that the Debtors own property located at
2500 W. Lokern Road in Buttonwillow, California, and are contesting a
property assessment.

The Debtors thought the law, taught in St. Croix Condominium Owners v. St.
Croix Hotel Corp., 682 F.2d 446, 448 (3d Cir. 1982), and Carley Cagital
Group v. Fireman's Fund, 889 F.2d 1126, 1127 (D.C. Cir. 1989), made it
clear that a chapter 11 debtor-in-possession could continue pre-petition
property tax appeals if it wanted to. The AAB didn't share that level of
certainty. To remove any doubt about the AAB's right to adjudicate
the Appeal, Judge Walsh entered an order holding that the scope of the
automatic stay does not preclude the AAB from deciding the Appeal or
issuing a refund to the Debtors on account of any reduction in the taxable
value of the Property. (Safety-Kleen Bankruptcy News, Issue No. 8;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


SERVICE MERCHANDISE: Obtains Approval to Lease & Sublease Stores To TJX
-----------------------------------------------------------------------
Pursuant to the downsizing, refurbishing and subletting of their stores as
part of their 2000 Business Plan, the Debtors sought and obtained the
Court's authority, pursuant to 11 U.S.C. section 363 and Rule 6004 of the
Federal Rules of Bankruptcy Procedure, for entry of nineteen separate
orders, to consummate a proposed transaction with TJX whereby TJX will
lease or sublease from the Debtors space at nineteen respective retail
stores. Specifically, to the extent the Debtors own a particular TJX Store
in fee simple, the Debtors will lease a portion of such store to TJX, and
to the extent that the Debtors lease a particular TJX Store, the Debtors
will sublease a portion of such store to TJX.

The Debtors anticipate the transaction to bring in rental revenue of $4.5
million per year for the initial term and to enhance the marketing mix of
the Debtors' stores.

At the Debtors' behest, the Court also approves the non-disturbance and
attornment provisions for such lease or subleases. The Court also orders
that (a) the applicable leases, mortgages and related documents as to which
the Debtors are bound do not prohibit, restrict or otherwise prevent the
leasing or subleasing of the respective portions of the TJX Stores to TJX;
(b) the interests of the parties to such documents will be adequately
protected.

TJX is a leading off-price retailer of apparel and home fashions in the
United States and worldwide, operating over 1,300 stores globally under the
names, T.J. Maxx, Marshalls, HomeGoods and others, with sales of almost $9
billion and over $500 million of record income in fiscal 1999, the Debtors
tell the Court. As of fiscal year end January 29, 2000, TJX had a balance
sheet net worth of over $1 billion.

Under the contemplated arrangement, TJX will use the leased or subleased
store premises for the operation of a Homegoods, Marshalls or T.J. Maxx
store, including the retail sale of men's, women's and childrents apparel,
jewelry, home fashions, furnishings and accessories, linens and domestics,
giftware, cookware and houseware, table top, specialty foods, frames, wall
decor and accent pieces, seasonal holiday merchandise, and any similar or
related retail use. TJX presently intends to utilize most of the TJX Stores
for the sale of home goods.

As part of the refurbishment pursuant to the lease/sublease, the layout of
a typical Store will be converted from the original 30,000 square feet
selling space and 20,000 square feet rear warehouse space, approximately,
to one with bigger front selling space and smaller rear warehouse space.
Substantial improvements will also be made.

Besides reducing the amount of space that the Debtors will occupy, a
Refurbished Store will include a new expanded jewelry department, a revised
hardlines layout, new fixtures and other interior upgrades, and the
installation of a demising wall demarcating the space to be occupied by the
tenant/subtenant.

The Debtors will spend hundreds of thousands of dollars per store in
connection with these improvements and expect that the tenants or
subtenants will spend similar amounts in connection with the improvements
to their portion of the space. In no instance will the landlords or
mortgagees of any leased Refurbished Store be responsible for any cost of
improvements, the Debtors assure.

The agreement with TJX also provides that:

    (1) Each sublease shall be subject and subordinate to the respective
          primary lease;

    (2) TJX, at its sole cost and expense, shall perform and complete all
          necessary alterations and improvements;

    (3) TJX shall cause its work to be performed in a good and workmanlike
          manner, in full compliance with the applicable codes, the
          respective primary lease and all documents recorded against the
          respective stores and in accordance with plans and specifications
          to be approved by Debtors and the respective primary landlord;

    (4) All subsequent alterations must be architecturally harmonious with
          the TJX Store and the shopping center in which it is located and
          may not decrease the rental space or value of, or result in a
          material impairment of the structural integrity of leased
          premises;

    (5) The amount of rent varies under each respective sublease and may
          include percentage rent;

    (6) TJX shall pay its proportionate share of taxes, insurance,
          utilities, common area maintenance and similar costs payable under
          the respective primary lease;

    (7) TJX will assume possession of the subleased premises upon the
          completion of the Debtors' renovation of the space, and no later
          than January 15, 2001;

    (8) TJX commences to pay rent to the Debtors within 150 days after
          taking possession;

    (9) TJX must open a store no later than one year following the
          possession date;

   (10) TJX cannot 'go dark' for more than 180 days unless the 'go dark'
          period under the respective primary lease is shorter;

   (11) TJX has the exclusive right to operate an apparel or home goods
          store within the Debtors' space and Service Merchandise has the
          exclusive right to operate a jewelry store in the space;

   (12) While the Debtors operate in its leased premises, TJX may not assign
          its sublease or sublet its leased premises without the prior
          written consent of the Debtors, which shall not be unreasonably
          withheld or delayed;

   (13) In the event that the Debtors cease to operate in its leased
          premises, the lessor under the sublease no longer has rights to
          consent prior to any assignment or subletting, but may elect to
          terminate the sublease with TJX.

   (14) TJX has the same rights to terminate its sublease in the event of a
          casualty or condemnation as the Debtors under the respective
          primary lease.

   (15) If the termination of the sublease coincides with the termination of
          the respective primary lease, TJX shall restore its leased
          premises to the condition required under the respective primary
          lease.

   (16) In the event of a default, Debtors may terminate and repossess the
          subleased premises and shall use reasonable efforts to relet and
          mitigate its damages.

The nineteen stores included in the proposal are:

           Location of Store                                 Proposed Use
           -----------------                                 ------------
    (1) Woodhill Circle, Lexington, KY                         Homegoods
    (2) Oakland Square, Troy, MI                               Homegoods
    (3) Abercorn Plaza, Savannah, GA                           Homegoods
    (4) Hamilton Crossing, Chattanooga, TN                     Homegoods
    (5) Dunning Farm Shopping Center, Middletown, NY           Homegoods
    (6) Southside Square Shopping Center, Jacksonville, FL     Homegoods
    (7) Oakwood Plaza, Hollywood, FL                           Homegoods
    (8) Village Plaza Shopping Center, Sarasota, FL            Homegoods
    (9) Mansell Crossing Shopping Center, Alpharetta,GA        Homegoods
   (10) Village at Northshore, Slidell, LA                       Apparel
   (11) Ridgewood Court, Jackson, MS                          Homegoods/
                                                                 Apparel
   (12) Snowden Square Shopping Center, Columbia, MD           Homegoods
   (13) Pembroke Lake Regional Center, Pembroke Pines, FL      Homegoods
   (14) 4820 South Broadway Blvd., Tyler, TX                  Homegoods/
                                                                 Apparel
   (15) West Oaks Shopping Center, Novi, MI                    Homegoods
   (16) Westmoreland Mall South, Greensburg, PA                  Apparel
   (17) Berkshire Shopping Center, Danbury, CT                 Homegoods
   (18) West Belt Plaza, Wayne, NJ                             Homegoods
   (19) Bishops Corner East, Paramus, NJ                       Homegoods

                         The Committee's Support

The Unsecured Creditors' Committee filed a Statement with the court
pledging its support of the Debtors' motion. The Committee remarks that the
motion is of critical importance to the implementation of the Debtors' Year
2000 Business Plan, considering the value it will bring to the Subleasing
Program.

The Committee points out that while the landlords might find comfort within
the confines of a section of 365 lease assumption, the adverse impact on
the unsecured creditor body of making the expense of assumption of the 19
leases and subleases that are the subject of the TJX Motion must not be
overlooked and would surely tip the balance of the equities in favor of the
landlords to the detriment of unsecured creditors, which is a result that
is antithetical to the principles of chapter 11.

                             Landlords' Objections

Landlords, who are under immediate impact of the motion, filed responses
and objections with the Court, expressing their views and concerns before
the Court granted the motion. The points raised by the landlords include:

(1) The Debtors attempt to circumvent the provisions of 11 U.S.C. section
       365 by attempting to sublease a portion of the Leased Premisises
       without first assuming the underlying leases;

(2) The Debtor is attempting to grant the subleasee rights to the Leased
       Premises that survive the termination or rejection of the Lease;

(3) The Debtors are attempting to create a free standing sublease and to
       rewrite the primary lease under the auspices of the Bankruptcy
       Court's order;

(4) The Debtor proposes to allow TJX to "go dark" for up to 180 days and
       not pay rent for 150 days, and the landlord is concerned that the
       Debtor could reject the lease the day after the sublease is executed
       and the landlord would have no recourse to recover the unpaid rent;

(5) The rights between the landlord and the tenant/debtors and the landlord
       and the sublessee are strictly a matter of state law; the Debtors
       have no right to demand the landlord's guaranty of non-disturbance
       and attornment to the sublease and the Bankruptcy Court has no
       authority to order the landlord to attorn to the proposed sublease;

(6) The Debtors have to cure any default under the lease or provide
       adequate assurance that the Debtors will promptly cure such default
       before any assumption of the lease;

(7) The landlord's mortgage documents require landlord to first obtain
       mortgagee's consent prior to allowing the proposed sublease, the
       mortgagee will not consent to a sublease of less than the entire
       demised premises and the mortgagee will not consent to the proposed
       Non-disturbance and Attornment Agreement.

                            Debtors' Omnibus Reply

The Debtors point out that no entity challenges the Debtors' exercise of
business judgment, no entity criticizes the proposed transaction for any
inconsistency with the Business Plan and no entity objects to the proposal
of having TJX as a tenant/subtenant for the $4.5 million annual rental
income. The landlords' objections, the Debtors tell Judge Paine, are for
special-interest protections under section 365 because that would result in
the immediate payment of cure amounts to the landlords.

However, the Debtors recognize that they are not required to assume the
leases at this time, and they admit they choose not to in order to defer
the costs of paying cure amounts to the landlords. This, the Debtors
assert, is consistent with their fiduciary duties as debtors-in-possesssion
because this is for the benefit of the estates, although the landlords
would prefer to be paid prepetition cure amounts immediately.

The Debtors contend that the proposed transactions are distinctly subleases
rather than assignments because the Debtors will retain a reversion in rent
as well as a substantial portion of the space that they will continue to
use.

The Debtors mainly draw upon the fundamental principle that chapter 11
debtors may use property in which another party has an interest, pending
assumption or rejection of the underlying lease, so long as adequate
protection is provided. Adequate protection is provided here, the Debtors
contend, in the form of continued rental payments, capital improvements in
the aggregate of $10 million on the properties, enhanced customer traffic
and sales generated at the property or collateral of the landlord or
mortgagee and TJX's obligation to attorn to an NDA Party who may
subsequently obtain the interests of the Debtors in the respective
properties.

The Debtors note that the attornment and non-disturbance portions of the
relief requested are necessary to ensure that the proposed capital
improvements are made and that the subtenant's use and quiet enjoyment of
the subleased premises will not be disturbed by the landlords and others so
long as they continue to receive the benefit of the rental income
associated with the sublease. Drawing analogy upon the case In re 641
Assocs., Ltd., 1993 Bankr. LEXIS 1191 (Bankr. E.D. Pa. Aug. 26, 1993), the
Debtors contend that the balance of interests weighs heavily not only in
favor of the proposed subtenant, TJX, who will invest substantial sums in
the respective properties, but it also weighs in favor of the potential
success of the Debtors' subleasing program and its overall reorganization.

In refute of a landlord's argument that the bankruptcy court lacks the
power to re-write the parties' contract, the Debtors argue that section
365(a) of the Bankruptcy Code provides for a debtor to reject an executory
contract or unexpired lease altogether, which wholly contravenes the
contract or lease as written.

The Debtors assert that the Bankruptcy Court does have authority to approve
the proposed transactions because by means of this motion, the Debtors are
requesting approval of an offer of adequate protection, which is within the
realm of the Bankruptcy Code and supported by applicable law. The request
sought in the motion, as a legal matter, is not barred by the lease
provisions because section 365(b)(2) excuses the Debtors from nonmonetary
obligations, the Debtors contend.

Judge Paine concurred and granted the motion in all respects.  (Service
Merchandise Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


STATION CASINOS: Moody's Confirms Ratings & Places Ameristar Debt on Watch
--------------------------------------------------------------------------
Moody's Investors Service confirmed the debt ratings of Station Casinos,
Inc., and placed the debt ratings of Ameristar Casinos, Inc. on review for
possible downgrade. The rating actions follow the announcement that
Ameristar will purchase Station's properties in Missouri, and will sell its
casino in Henderson, Nevada to Station.

The review of Ameristar's ratings will focus on the financing structure for
the acquisition; on Ameristar's capital structure post-acquisition; the
integration risks inherent in the acquisition; the high level of
competition in the Missouri markets; and the cost, risks, and benefits of
planned development to the St. Charles property in the near future. The
risks of the acquisition are somewhat mitigated by the retention of the
existing management team at the Missouri properties; the historical
performance of the acquired properties; and the benefits of greater
diversification. Ameristar currently has properties in Iowa and
Mississippi. The Henderson, Nevada property has been a weak performer for
Ameristar. Moody's believes the company is selling the property for an
attractive price.

Moody's ratings on Station Casinos had anticipated the sale of the Missouri
property for $475 million. Moody's believes the properties are being sold
to Ameristar for an appropriate price. Proceeds are expected to be deployed
in new construction in the Las Vegas Market in 2001.

The following ratings are affected by these actions:

    I)  Station Casinos - confirmed ratings are:

        a) Senior implied rating of Ba2;

        b) Senior secured bank facility of Ba1;

        c) Senior subordinated rating of B1;

        d) Senior unsecured issuer rating of Ba3.

    II) Ameristar - ratings on review for possible downgrade are:

        a) Senior implied rating of B1;

        b) Senior secured bank facility of Ba3;

        c) Guaranteed senior subordinate notes of B3;

        d) Senior unsecured issuer rating of B2.


SUN HEALTHCARE: Healthcare Accuses Former Chairman Of Stealing Staff
--------------------------------------------------------------------
Win Quigley, writing for the Albuquerque Journal, reports that Sun
Healthcare Group, calling its founder and former chairman Andrew Turner
disloyal and a conspirator, has asked Judge Walrath to stop him from using
some former Sun employees to staff his new therapeutic services company.

Sun asked the court to order Turner and other former employees to return
compensation they earned as Sun employees at the same time they were
forming EnduraCare LLC, identified in court documents as a Texas company.
Sun also demanded unspecified compensatory and punitive damages. Bankruptcy
Judge Mary Walrath heard attorneys' arguments concerning the complaint
Monday in Wilmington, Del., according to Sun spokesman Charlie Leonard.
Walrath did not indicate when she might rule, Leonard said.

Sun claims that while Turner was still its chairman and CEO, he conspired
with executives of SunDance Rehabilitation Corp., a wholly owned subsidiary
of Sun Healthcare, to hire away specific SunDance employees with knowledge
of SunDance customers and prospective customers to create EnduraCare. The
complaint says the SunDance executives were David Kniess of Plano, Texas,
president of SunDance; Tom Mack of Avon, Conn., a SunDance vice president;
and Gary McGuire of Castle Rock, Colo., also a vice president. Sun alleges
the four executives began forming EnduraCare "long before their
resignations (from Sun and SunDance) became effective" and used
confidential SunDance business information to lure employees to EnduraCare.
Sun entered bankruptcy protection Oct. 14, 1999.

Turner's resignation was approved by the court in August 2000. The
SunDance executives resigned effective the end of September 2000, the
complaint says. Sun claims Kniess and Turner solicited approximately 20
SunDance employees to join EnduraCare and that four SunDance regional
directors of operations did so. Those directors are listed as defendants in
the action. Sun charges EnduraCare recruited SunDance employees known to
have proprietary knowledge of existing and potential contracts SunDance
held with customers.

"This issue was addressed directly by Turner," the complaint says.
"Specifically, he offered bonuses based in part on business developed for
EnduraCare. "In addition, when a SunDance employee being recruited by
EnduraCare expressed concerns about how SunDance might react to having a
former senior employee with significant SunDance business information move
business away from that company, Turner told the employee not to worry
about it," the complaint said.

Since leaving Sun, Turner has acted as a consultant to Ballantrae
Healthcare, an Atlanta nursing-home operator that is moving its
headquarters to Albuquerque. Ballantrae is not named in Sun's complaint.
(Sun Healthcare Bankruptcy News, Issue No. 15; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


WASTE MANAGEMENT: Announces Electronics Recycling Program With Sony
-------------------------------------------------------------------
Waste Management Inc. (NYSE:WMI) and Sony Electronics announced that
they are launching an electronics recycling program in the State of
Minnesota.

The statewide program is the first of its kind in the United States.
"The program with Sony Electronics and the State of Minnesota is an
innovative and responsible program that will lead the way to a nationwide
solution for a 21st century problem," said A. Maurice Myers, president and
CEO of Waste Management. "We are working with other major manufacturers of
consumer electronics and personal computer equipment to set up electronic
scrap collection and recycling programs in cities and counties across the
United States."

The "Sony Only" program is a five-year agreement in which residential and
commercial customers are encouraged to bring their old Sony electronic
items to designated drop-off points for recycling at no cost.

The issue of electronics recycling has emerged as a major issue in the U.S.
as the average life span of a computer has rapidly decreased to two years
or less. The estimated stockpile of this equipment is expected to reach
half a billion units by the year 2007.

"We applaud Sony and the State of Minnesota for taking the lead in
addressing this important issue," said Myers. "Now we need to encourage
others to come on board."

Waste Management is the first national solid waste and recycling company to
focus on the recovery of electronic scrap. In the past two years, Waste
Management, through its Asset Recovery Group (ARG), has opened a network of
eight e-scrap facilities across the country that sort and recycle more than
60 million pounds of e-scrap per year.

Waste Management, through its wholly owned subsidiary, Recycle America,
operates more than 160 Material Recovery Facilities (MRFs) across the
United States. In addition, Waste Management's Container Recycling Alliance
operates 12 glass processing facilities in the U.S. Through its extensive
network, Waste Management markets more than five million tons of recycled
materials each year and is uniquely qualified to manage recovery and
recycling on a national scale.

Waste Management Inc. is its industry's leading provider of comprehensive
waste management services. Based in Houston, the Company serves municipal,
commercial, industrial and residential customers throughout North America.


* BOOK REVIEW: As We Forgive Our Debtors: Bankruptcy and Consumer Credit
                                           in America
------------------------------------------------------------------------
Authors: Teresa A. Sullivan, Elizabeth Warren, & Jay Westbrook
Publisher: Beard Books
Softcover: 370 Pages
List Price: $34.95
Order a copy today from Amazon.com at
http://www.amazon.com/exec/obidos/ASIN/1893122158/internetbankrupt

Review by Susan Pannell

So you think you know the profile of the average consumer debtor, either a
deadb eat slouched on a sagging sofa with a three-day growth on his chin or
a crafty lower-middle class type opting for bankruptcy to avoid both
poverty and responsible debt repayment.

Except that it might be a single or divorced female who's the one most
likely to file for personal bankruptcy protection and her petition might be
the last stage of a continuum of crises that began with her job loss or
divorce. Moreover, her dilemma might be attributable in part to a consumer
credit industry that has increased its profitability by relaxing its
standards and extending credit to almost anyone who can scribble his or her
name on an application.

Such are among the unexpected findings in this painstaking study of 2,400
bankruptcy filings in Illinois, Pennsylvania, and Texas during the seven-
year period from 1981 to 1987. Rather than relying on case counts or gross
data collected for a court's administrativve records, as has been done
elsewhere, the authors use data contained in the actual petitions. In so
doing, they offer a unique window into debtors' lives.

The authors conclude that people who file for bankruptcy are, as a rule,
neither impoverished families nor wily manipulators of the system. Instead,
debtors are a cross-section of America. If one demographic segment can be
isolated as particularly debt-prone, it would be women householders, whom
the authors found often live on the edge of financial disaster. Very few
debtors (3.7 percent in the study) were repeat filers who might be viewed
as abusing the system, and most (70 percent in the study) of Chapter 13
cases fail and become Chapter 7s. Accordingly, the authors conclude that
the economic model of behavior--which assumes a petitioner is a
"calculating maximizer" in his decision to seek bankruptcy protection and
his selection of chapter to file under, a profile routinely used to justify
changes in the law--is at variance with the actual debtor profile d4erived
from this study.

A few stereotypes about debtors are, however, borne out. It is less than
surprising to learn, for example, that most debtors are simply not as well
off as the average American or that while bankrupts' mortgage debts are
about average, their consumer debts are off the charts. Petitioners seem
particularly susceptible to the siren song of credit card companies. In the
study sample, creditors were found to have made between 27 percent and 36
percent of their loans to debtors with incomes below $12,500 (although the
loans might have been made before the debtors' income dropped so low). Of
course, the vigor with which consumer credit lenders pursue their goal of
maximizing profits has a corresponding impact on the number of bankruptcy
filings.

The book won the ARA's 1990 Silver Gavel Award. A special 1999 update by
the authors is included exclusively in the Beard Books reprint edition.

Teresa A. Sullivan is Vice President and Graduate Dean, The University of
Texas at Austin, Elizabeth Warren is Lea Gottlieb Professor of Law at
Harvard University; and Jay Lawrence Westbrook is Benno C. Schmidt Chair of
Business Law, The University of Texas at Austin


                                *********


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

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

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

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


                               *********

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

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

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

This material is copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-mailing and
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The TCR subscription rate is $575 for six months delivered via e-mail.
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