TCR_Public/010109.MBX              T R O U B L E D   C O M P A N Y   R E P O R T E R

                 Tuesday, January 9, 2001, Vol. 5, No. 6


ANN & HOPE: Discount Retailer Closing 4 Massachusetts Stores
AMERICAN EQUITIES: Case Summary & 20 Largest Unsecured Creditors
ARMSTRONG WORLD: Creditors Convene in Wilmington on Jan. 27
CENTENNIAL COAL: Committee Taps Bifferato as Counsel
CORAM HEALTHCARE: Seeks Extension of Time to Assume & Reject Leases

FOODLINE.COM INC: Case Summary & List of Creditors
FRUIT OF THE LOOM: Signs Multi-Million Dollar Contract With IBSS
G-I HOLDINGS: Files Chapter 11 Case to Resolve Asbestos Claims
G-I HOLDINGS: Case Summary
GORGES HOLDING: Committee Applies to Retain Akin Gump as Counsel

HARNISCHFEGER: Equity Committee Wants to Continue Goldin's Engagement
HEILIG-MEYERS: Selling $99 Million of Receivables for $32 Million
ICG COMMUNICATIONS: $30K Per Month OK for Ordinary Course Professionals
IMPERIAL HOME: Disclosure Statement Hearing Set for Jan. 31
INTEGRATED HEALTH: Rejects LTC/Symphony Lease for Maine Center

JUMBOSPORTS: Sells Little Rock Property for $1,245,000
LAIDLAW, INC.: Restructuring Will Occur at Parent Company Level
LERNOUT & HAUSPIE: To Lay Off 800 Workers This Week
LERNOUT & HAUSPIE: Luc Despins Tells Court Assets Buyers Have Surfaced
LERNOUT & HAUSPIE: Morris Nichols Serving as Local Delaware Counsel

LIDS CORPORATION: Case Summary & 20 Largest Unsecured Creditors
LOGOATHLETIC: Asks for Extension of Lease Decision Period to May 8
METAL MANAGEMENT: Committee Retains Milbank Tweed as Lead Counsel
MKPP, LLC: Case Dismissed
NY TIMES: Will Cut 69 Jobs at its Internet Unit

OWENS-CORNING: Asbestos Committee Hires Caplin as Lead Counsel
PILLOWTEX: Employs KPMG as Auditors & Tax Advisors
RECYCLING INDUSTRIES: Judge Brooks Enters Order of Dismissal
SAFETY-KLEEN: Assumes & Rejects Agreements with Emmert Development
SCIENTIFIC MEASUREMENT: Seeks Protection Under Chapter 7

SGSM ACQUISITION: Plan Confirmed on December 27
SHAMAN PHARMACEUTICALS: Files Chapter 11 Petition in California
SUN HEALTHCARE: Court Approves Sale of U.K. Unit to Management
SUN HEALTHCARE: Rejecting Six Useless Office Leases
TWA INC.: Filing "Chapter 33" Petition Tomorrow

UNIVERSAL BROADBAND: Extending Time to Assume/Reject Leases by 60 Days
VIDEO UPDATE INC: Seeks Extension of Exclusivity to April 20


ANN & HOPE: Discount Retailer Closing 4 Massachusetts Stores
Discount retailer Ann & Hope Inc. plans to close four of its
Massachusetts stores and lay off 1,400 workers in Massachusetts and
Rhode Island, according to the Associated Press. The company also will
scale back its remaining two stores - in Cumberland, R.I. and Warwick,
R.I. - to transform those locations to outlet-style shopping. Ann & Hope
also runs 13 CFO Fashion Outlet stores, 10 Kid's Outlet stores and two
Curtain & Bath Stores in Rhode Island and Massachusetts. None of those
stores will be affected.

Ann & Hope spokesman Steven Maurano said the company decided to
restructure after years of declining profits, with this year being the
worst. "I think they decided to move now because they didn't see the
trend turning around at all," Maurano said. "They're able to pay all
their suppliers and to take care of their people as best they can
instead of having to declare bankruptcy."

The company maintains plans to open seven additional outlet stores and a
garden shop in the next six months using the proceeds of the sale of its
Massachusetts stores, Maurano said. Eastern Development Co., of Woburn,
Mass., has agreed to buy the properties.  (ABI -5-Jan-2001)

AMERICAN EQUITIES: Case Summary & 20 Largest Unsecured Creditors
Debtors: American Equities Group, L.P.
         American Equities Income Fund, Inc.
         80 East Route 4, Suite 202
         Paramus, NJ 07652

Type of Business: Finance servicing

Chapter 11 Petition Date: January 3, 2001

Bankruptcy Case Nos.: 01-40011-BRL and 01-40012-BRL

Court: Southern District of New York

Judge: Burton R. Lifland

Debtors' Counsel: Warren R. Graham, Esq.
                  Warshaw Burnstein Cohen Schlesinger & Kuh, LLP
                  555 Fifth Avenue
                  New York, NY 10017
                  (212) 984-7708
                  Fax : (212) 972-9150

                            Fund            Group
                            ----            -----
Total Assets:            $9,136,171        $211,147
Total Liabilities:      $13,561,729               0

Fund's 20 Largest Unsecured Creditors:

    Creditor                     Claim Amount
    --------                     ------------
Kathryn C. Cochran                 $200,000
Robert R. Delwiche                 $170,000
Ellsworth McSweeney                $150,166
Marilyn D. Maline Trust            $128,118
Albert W. & Helen Smith            $123,000
Thelma E. Radcliffe                $122,957
Daniel H. & Jean A. Simot          $120,667
William Scott                      $118,000
Harry Schwartz                     $114,871
F. Carlos & Elena L. Batar         $112,443
Lloyd O. Werch                     $100,000
Joaquin Sueiro                     $100,000
Charlie & Toni Perry               $100,000
Harold Parks Rentals, Inc.         $100,000
Mildred Moorehead                  $100,000
Helen N. Fayne Revocable Trust     $100,000
Jack E. Dobrovolny                  $90,000
Terry & Sharon Choate               $80,000
Lynn Krauthamer                     $76,000
Eleanor S. Hudson                   $76,000

ARMSTRONG WORLD: Creditors Convene in Wilmington on Jan. 27
On December 6, 2000, Armstrong World Industries, Inc. and its affiliates
filed voluntary petitions for relief under Chapter 11 of the US Code. A
meeting of creditors will be held on January 26, 2001 at 11:30 a.m. at
the Sheraton Suites, Delaware Ballroom One, 422 Delaware Avenue, 2nd
Floor, Wilmington. Counsel for the debtors are Stephen A. Karotkin,
Esq., Debra A. Dandeneau, Esq., of Weil Gotshal & Manges, LLP (New York
and Miami, respectively) and Mark D. Collins, Esq., of Richards, Layton
& Finger, PA, Wilmington, Delaware.

CENTENNIAL COAL: Committee Taps Bifferato as Counsel
The Official Committee of Unsecured Creditors appointed in Centennial
Coal, Inc.'s chapter 11 cases applies to retain the firm of Bifferato,
Bifferato & Gentilotti as their counsel.  The firm is expected to render
the following legal services:

     * Advising the Committee or Liquidating Agent as to its rights and

     * Investigating the actions of the debtors and the assets and
liabilities of their estates;

     * Performing such services as are in the interests of the debtors'
unsecured creditors and Liquidating Agent; and

     * Filing and serving complaints for avoidance of certain
preferential transfers.

Ian Connor Bifferato, Esq., director of the firm, advises the Court that
the Firm's current standard hourly rates for attorneys and paralegals
range from $250 per hour to $90 per hour.

CORAM HEALTHCARE: Seeks Extension of Time to Assume & Reject Leases
Coram Healthcare Corp. and Coram, Inc., seek an order extending their
time to assume or reject unexpired leases of nonresidential real
property for an additional 120 days, until May 4, 2001.

A hearing on the motion will be convened before the Honorable Mary F.
Walrath, US Bankruptcy Court Judge for the District of Delaware,
Wilmington on January 25, 2001 at 10:30 AM.

The debtors state that this case is a large, complex case involving both
a large number of leases and numerous other pressing matters. The
unexpired leases are an important asset of the estates and would be
central to the debtors' current business plan which is premised upon a
reorganization around the Coram entity.  At the December 28, 2000
hearing, the court ordered a 90-day period where no plan of
reorganization could be proposed by either the debtors or any other
party-in-interest.  The debtors will need time to consider each lease
and its value to the debtors.

FOODLINE.COM INC: Case Summary & List of Creditors
Debtor:, Inc.
        244 West 74th Street
        Apt. 4C
        New York, NY 10023

Type of Business: Provides restaurant information and
                  reservation solutions to consumers

Chapter 7 Petition Date: December 29, 2000

Court: Southern District of New York

Judge: Robert E. Gerber

Debtor's Counsel: Ted A. Berkowitz, Esq.
                  Farrell Fritz, P.C.
                  EAB Plaza
                  14th Floor West Tower
                  Uniondale, NY 11556
                  Fax: 516-227-0777

Estimated Assets: $1,000,001 to $10 million
Estimated Debts: $1,000,001 to $10 million


     Aetna US Healthcareaetna/Middletown
     P.O. Box 70937
     Chicago, IL 60673-0937

     American Express
     Suite 0001
     Chicago, IL 60679-0001

     Boston Bean
     One Bryant Street
     Woburn, Massachusetts 01801

     Cablevision Of Boston
     P.O. Box 9227
     Chelsea, Massachusetts 02150-9227

     Cybersource Corporation
     1295 Charleston Road
     Mountain View, California 94043

FRUIT OF THE LOOM: Signs Multi-Million Dollar Contract With IBSS
Integrated Business Systems & Services, Inc. Columbia, South Carolina,
announced that after a thorough evaluation of manufacturing
technologies, Fruit of the Loom has selected IBSS' Synapse
Manufacturing software for data collection at its manufacturing
locations. Fruit of the Loom expects the implementation of the pilot
location to be completed in the next several months.
"IBSS continues to receive acceptance of its Synapse technology in
the market place," said Harry Langley, President and CEO of IBSS.
"Being selected by Fruit of the Loom further demonstrates the
enormous acceptance of Synapse among major corporations. The new
contract with Fruit of the Loom is a milestone for IBSS as its
entrance into the Fortune 500 market. During this year, IBSS has
announced a series of significant Synapse agreements including Brain
North America, Lifestyle Furnishings International, ASP*n and WilCam
Systems that validate the Synapse technology for the marketplace and
reinforce IBSS' capacity to capture sales from multiple revenue
licensing streams."

IBSS' Synapse software has been applied throughout the manufacturing
industry including the apparel market. Fruit of the Loom is a fully
integrated manufacturer, performing most of its own yarn spinning,
knitting, cloth finishing, cutting, sewing and packaging. (Fruit of the
Loom Bankruptcy News, Issue No. 19; Bankruptcy Creditors' Service, Inc.,

G-I HOLDINGS: Files Chapter 11 Case to Resolve Asbestos Claims
G-I Holdings, Inc., filed a voluntary petition in the U.S. Bankruptcy
Court for the District of New Jersey in Newark, New Jersey on Friday,
January 5, 2001, to resolve asbestos liability claims against the
Company in a reorganization under Chapter 11 of the U.S. Bankruptcy

G-I, the successor to GAF Corporation as a result of a merger, is a
privately-held holding company, and its only operating subsidiary,
Building Materials Corporation of America, is not included in the

G-I's asbestos liability arose in connection with a 1967 acquisition of
Ruberoid Company, which included at the time a small, non-core business
which produced an asbestos insulation product, Calcilite. The United
States Navy requested Ruberoid during World War II to develop this
product for use as an insulation material in its ships. After the United
Stated Public Health Service concluded that Calcilite was safe, Ruberoid
supplied the product to Naval shipyards pursuant to requisition in
accordance with Government specifications, and a substantial portion of
the Company's total Calcilite sales were made to the United States
Government. After publication in the late 60's of medical studies
concerning the dangers of asbestos, the Company closed its Calcilite
operation and has not produced these products for 30 years.

Since the 1970's, G-I has paid out, as a result of the Ruberoid
acquisition, whose asbestos insulation business had profits over a 30-
year period of $1 million and sales of $35 million, in connection with
over 500,000 personal injury claims filed against the Company, more than
$1.5 billion in claims and expenses, a substantial portion of which has
gone to legal fees and people who have had no asbestos-related

Commenting on the announcement, Richard A. Weinberg, Chief Executive
Officer and General Counsel of G-I, said, "Today's action was taken only
after every effort was made by the Company to responsibly resolve its
asbestos liabilities. While our overriding objective has always been to
compensate deserving asbestos victims that have been injured as a result
of Ruberoid's products, there is simply not enough money in the world to
make substantial payments as well as to the almost limitless population
of those who have in the past been exposed to asbestos but who have no
asbestos-related injury. In this latter connection, it has been
estimated that as many as 85% of all current asbestos personal injury
claimants have no asbestos-related impairment."

Mr. Weinberg attributed the necessity of the filing to, "The
sharp, unforeseen increase in the number of claims asserted, the
dramatic escalation in settlement demands, the inability of the tort
system to resolve such claims in a fair and orderly manner, and the
recent rash of asbestos-related bankruptcies which has increased the
pressure on remaining defendants to cover the share of payments formerly
made by bankrupt defendants, together with lower than expected financial
results over the past year from the Company's operating subsidiary."

G-I HOLDINGS: Case Summary
Debtor: G-I Holdings, Inc.
        1361 Alps Road
        Wayne, NJ 07470

Type of Business: G-I is a privately-held holding company and the
                  successor to GAF Corporation, one of the United
                  States' oldest sources for commercial and residential
                  roofing material.  The Company's estimated 3,500
                  employees generate $1.1 billion in annual revenues,
                  according to Forbes Private 500 ranking data.

Chapter 11 Petition Date: January 5, 2001

Bankruptcy Case No.: 01-30135

Court: District of New Jersey (Newark)

Judge: Chief Judge Rosemary Gambardella

Debtor's Counsel: Dennis J. O'Grady, Esq.
                  Riker, Danzig, Scherer, Hyland
                  One Speedwell Ave, HQ Plaza
                  PO Box 1981
                  Morristown, NJ 07962-1981

GORGES HOLDING: Committee Applies to Retain Akin Gump as Counsel
The Official Committee of Unsecured Creditors of Gorges Holding
Corporation and Gorges/Quik-To-Fix Foods, Inc. filed an application for
an order authorizing the retention and employment of Akin, Gump,
Strauss, Hauser & Feld as counsel to the Committee.   The professional
services which Akin Gump may be called upon to render to the Committee

     * Advising the Committee with respect to its rights, obligations,
powers and duties pursuant to the Bankruptcy Code and Bankruptcy Rules;

     * Assisting in the examination of the debtors' affairs and review
of the debtors' assets and operations;

     * Advising the Committee and representing it with respect to all
proposals and pleadings;

     * Assisting the Committee in negotiations and consultations with
the debtors and other parties-in-interest with respect to overall
administration of the debtors' Chapter 11 cases;

     * Advising and representing the Committee with respect to any plans
of reorganization or asset dispositions proposed in these cases;

     * Attending court proceedings, drafting pleadings and generally
advocating positions which further the interest of the creditors
represented by the Committee; and

     * Performing such other services as are requested by the Committee.

The standard hourly rates for the principal attorneys and paralegal
designated to represent the Committee range from $185 per hour to $500
per hour.

The Committee also filed an application for an order approving the
retention of Wilmington-based Cozen & O'Connor as its Local Counsel.

HARNISCHFEGER: Equity Committee Wants to Continue Goldin's Engagement
The Official Committee of Equity Security Holders appointed in
Harnischfeger's chapter 11 cases tells the Court that it needs to
continue to utilize the services of Goldin because based on Goldin's
preliminary valuation analysis which suggests that the enterprise value
of reorganized HII is greater than the Debtors' current estimates of
claims against HII, the Committee believes that is has a fiduciary duty
to Shareholders to oppose confirmation of a plan for HII that would pay
nothing to Shareholders. However, Goldin has not finalized this analysis
due to alleged delays in getting necessary data from HII. If not
extended, Goldin's retention should have expired on December 20, 2000,
pursuant to a three-month retention of Goldin for the limited purpose of
advising the valuation of the reorganized Debtors.

As previously reported, the Equity Committee's initial application for
the employment of Goldin Associates, L.L.C. as its financial adviser met
with objections. The Debtors, the HII Creditors' Committee and the
Beloit Creditors' Committee objected to the application on the ground
that the administrative expense associated with such employment was not
warranted because thy had concluded that there would be insufficient
value in the reorganized Debtors for a distribution to the holders of
equity security holders in HII (the Shareholders) under a plan of

Negotiations followed and the parties agreed and obtained the Court's
approval for the three-month retention of Goldin by the Equity

In this application, the Equity Committee seeks to extend Goldin's
retention through the completion of the plan confirmation proceedings so
that Goldin can:

   (a) finalize its valuation analysis; and

   (b) assist the Equity Committee in

      (i) formulating the terms of an appropriate distribution to
          Shareholders under a plan of reorganization for HII;

      (ii) negotiating with the Debtors and the Creditors' Committees
           to reach a consensus regarding such distribution; and

      (iii) if necessary, preparing for and participating in a
            contested confirmation hearing on valuation issues,
            including providing expert witness testimony by Goldin.

The Equity Committee proposes to pay Goldin, as before, a monthly fee of
$54,000, plus reasonable out of pocket expenses notwithstanding the
expansion in the scope of Goldin's work. Goldin will continue to file
monthly fee applications in accordance with applicable orders in these

The Equity Committee represents that, based on the supplemental
affidavit of Managing Director of Goldin, Seymour Preston, Jr., Goldin
is disinterested with respect to its role as financial advisor to the
Equity Committee, and Goldin does not represent or hold an adverse
interest to the Debtors' estates with respect to such role.

In his supplemental affidavit, Mr. Preston reports on Goldin's prior
connections with the Debtors and other parties in interest in the
Debtors' chapter 11 cases:

     * General Electric and affiliates:

A division of General Electric (Aircraft Engines) is chair of the
creditors committee in the Tower Air bankruptcy. Goldin is financial
advisor to the debtor. In its capacity as trustee in the bankruptcy of
Power Company of America, Goldin enforced General Electric Capital
Corp.'s obligation to contribute additional equity to the estate and has
challenged GECC's assertion that its claim for recovery of its
investment is a creditor's claim rather than an equity stakeholder's;

     * Mayer Brown & Platt:

MBP is counsel to Harrison J. Goldin, the Senior Managing Director of
Goldin, in his capacity as liquidating trustee of the estates of Pegasus
Gold Inc. and Pegasus Gold Corporation;

     * Bank of New York & Citibank and affiliates:

Representatives of these two institutions (BNY as indenture trustee;
Citibank as agent) are the oversight committee to which Goldin reports
Its activities respecting the liquidation of the Pegasus estates;

     * Various banks, including ABN AMRO, Citibank, First Chicago and
others, are beneficiaries of trusts administered by Goldin in connection
with the Pegasus liquidation. These banks, other institutions and
entities listed may also be beneficiaries of other trusts administered
by the firm.

     * Arthur Andersen:

In its capacity as trustee in the bankruptcy case of Power Company of
America, Goldin has hired Arthur Andersen to perform certain tax
accounting work and preparation of tax returns. On the other hand,
Goldin may assert claims against this accounting firm as the former
auditor of Power Company of America. In its capacity as Plan
Administrator for First interregional Advisors, Goldin has retained
Arthur Andersen to provide accounting and tax preparation services.

     * Fleet Bank:

An affiliate of Fleet Bank is a secured lender against and/or lessor of
aircraft and engines of/to Tower Air. Goldin is financial advisor to
Tower Air in its bankruptcy proceeding. Goldin is advisor to a private
manufacturer and its owner; Fleet Financial (a unit of Fleet) is a
senior secured creditor of the Company.

Moreover, Goldin is advisor to a consumer products company which has in
its bank lending group a number of banks which are also in Debtors' bank
lending group.

Mr. Preston covenants that Goldin will not accept any engagement or
perform any service for any entity or person other than the Committee in
these cases. Goldin will, however, continue to provide professional
services to entities or persons that may be parties in interest in these
chapter 11 cases, provided, however, that such services do not relate
to, or have any direct connection with, these chapter 11 cases. Mr.
Preston assures that Goldin will use reasonable efforts to identify any
new relevant facts or relationships which could materially affect the
statements set forth in his Affidavit, and if such facts or
relationships arise, Goldin will promptly file a supplemental affidavit
as Bankruptcy Rule 2014(a) requires. (Harnischfeger Bankruptcy News,
Issue No. 36; Bankruptcy Creditors' Service, Inc., 609/392-0900)

HEILIG-MEYERS: Selling $99 Million of Receivables for $32 Million
Heilig-Meyers Co. (HMYRQ) is seeking bankruptcy court authorization to
sell about $99 million in customer receivables to WCIC Furniture Inc.
for $31.8 million, subject to higher bids. The customer receivables have
suffered a "significant degradation in value" since the petition date,
the home furnishings retailer said. The customer receivables are from
installment sale agreements the home furnishings retailer provided to
certain customers. These receivables were not included among the
installment sale contracts transferred to a securitization master trust
in exchange for various classes of asset-backed certificates, which were
then sold to investors.  (ABI and Federal Filings, Inc. 05-Jan-2001)

ICG COMMUNICATIONS: $30K Per Month OK for Ordinary Course Professionals
ICG Communications sought and obtained an Order authorizing them to
employ and retain professionals utilized by the Debtors in the ordinary
course of their business. The Debtors customarily retain the services of
various attorneys, accountants, tax professionals, and other
professionals to represent them in matters arising in the ordinary
course of their business. These include legislative counsel,
shareholder suits counsel, regulatory counsel, litigation counsel,
database consultants, CA regulatory counsel, tax preparation
consultants, industry organization counsel, tariff and regulatory
compliance consultants, real estate counsel, auditors, immigration
counsel, governmental counsel, public utilities counsel, employment
litigation counsel, systems and database consultants, intercompany lease
advisors, vendor invoice consultants, administrative agencies counsel,
SEC and financial document printers, employee benefits, securities law
and corporate counsel.

By this Motion the Debtors sought authority to retain these
professionals without the necessity of a separate, formal retention
application approved by the Court for each ordinary course professional,
and to compensate the ordinary course professionals for postpetition
services rendered, subject to certain limits, without the necessary of
additional court approval. Consistent with the dimensions of these cases
and the geographic diversity of the Debtors' businesses, the Debtors
also requested that they be permitted to employ and retain the ordinary
course professionals on terms substantially similar to those in effect
prior to the Petition Dates. In addition, the Debtors are required by
state and local laws to retain local counsel wherever they provide
telecommunications services; accordingly the list of ordinary course
professionals contains a large number of professionals who serve as
local regulatory counsel to the Debtors.

The Debtors proposed that they be permitted to pay, without formal
application, all of the interim fees and disbursements to each of the
ordinary course professionals upon the submission to the Debtors of an
appropriate invoice setting forth in in reasonable detail the nature of
the services rendered after the Petition Dates, provided that such
interim fees and disbursements do not exceed a total of $30,000 per
month per ordinary course professional, and no more than $300,000 per
ordinary course professional for the entire case.

However, at this time the Debtors believe that two ordinary course
professionals may exceed the limit of $40,000 per month and $300,000 per
case limit. Dickstein, Shapiro, Morin & Oshinsky is involved in several
major telecommunications regulatory matters which are vital to the
continuation of the Debtors' operations. KPMB LLP provides independent
auditing and accounting services to the Debtors on a semi-annual basis.
The Debtors estimate that the retention of these professionals will
average over $30,000 per month. However, the Debtors asserted that the
services of these professionals are beneficial - indeed critical - to
the Debtors' operations and should be approved subject to separate
monthly and per case limits. Specifically, the Debtors propose that the
ordinary course professionals be subject to a monthly limit of $50,000
and a $500,000 limit for the entire case.

If any particular professional's fees exceeded these limits, payments to
that particular professional would become subject to judicial approval
under an application for an allowance of compensation and reimbursement
of expenses. To meet the Code's requirements of disclosure, the Debtors
proposed that each ordinary course professional who is an attorney be
required to file with the Court and serve upon the United States
Trustee, counsel to any official committees appointed in these cases,
counsel to the Debtors' prepetition and postpetition lenders, and
Skadden Arps an affidavit of proposed professional and disclosure
statements within 30 days of the date of entry of the Order granting
this Motion. (ICG Communications Bankruptcy News, Issue No. 2;
Bankruptcy Creditors' Service., Inc. 609/392-0900)

IMPERIAL HOME: Disclosure Statement Hearing Set for Jan. 31
The Imperial Home Decor Group, Inc., et al. filed a Joint Plan of
Reorganization on December 18, 2000. The debtor seeks approval of its
Disclosure Statement and approval of the procedures for solicitation and
tabulation of votes to accept or reject the plan, including the form of
ballots, and contents of the proposed solicitation procedures. A hearing
to consider the relief will be held before the Honorable Mary F.
Walrath, US Bankruptcy Judge at 2:00 PM on January 31, 2001.

INTEGRATED HEALTH: Rejects LTC/Symphony Lease for Maine Center
Integrated Health Services, Inc., sought and obtained the Court's
authority to reject another of the LTC/Symphony Leases -- the lease
between James G. Dubay and Lori A. Dubay, d/b/a Dubay Rental Properties
and Maine Head Trauma Center, Inc. d/b/a Maine Center for Integrated
Rehab and located at 31 Main Street, Orono, Maine 04473. The basic
monthly rental is $1,850.

The subject property is specially set up for operating a medical office
and/or rehabilitation center. The Debtors do not believe that the level
of business in the surrounding area is sufficient to maintain an office
in that location. Moreover, the Debtors do not believe that the Lease
could be sublet or assigned on advantageous terms. Therefore, the
Debtors have determined that the lease should be rejected.

Mr. Daniel Booth, Vice President in charge of Finance of Integrated
Health Services, Inc., submits in his affidavit that the Debtors have
thoroughly reviewed the Lease and have determined that in the interest
of efficiency and consolidation, the property no longer provides a
benefit to the Debtors. Mr. Booth believes that the rejection of the
Lease is a prudent and proper exercise of business judgment, and is in
the best interests of the Debtors' estates and their creditors.
(Integrated Health Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Service, Inc., 609/392-0900)

JUMBOSPORTS: Sells Little Rock Property for $1,245,000
Judge C. Timothy Corcoran III entered an order on December 22, 2000
approving the sale of certain property located at 6301 S. University
Avenue in the City of Little Rock, Arkansas. The purchase price for the
property is $1,245,000. The purchaser is Landers Auto Sales.

LAIDLAW, INC.: Restructuring Will Occur at Parent Company Level
In a conference call held Friday morning, Laidlaw Inc. (TSE:LDM) advised
investors that its consolidated liquidity is currently in excess of
US$250 million as a result of (A) cash-on-hand, (B) availability of $100
million under the bridge facility established with the Canadian Imperial
Bank of Commerce, as agent, and (C) over $50 million available under the
separate $125 million facility established for Greyhound Lines Inc. with
Foothill Capital Corporation.

In the course of that conference call, the Company said that it could
not discuss a long list of items, including (1) the status of debt
restructuring negotiations with bondholders, (2) the timing for any
filing of an in-court restructuring proceeding, or (3) details about
valuation of the Company. The core operating business, the Company
stressed, are solid, having generated $397 million of EBITDA in fiscal

Steve Cooper explained that the Greyhound Financing and CIBC-led Bridge
Financing Facilities lay the foundation to wall-off the day-to-day
operations from the parent company's liquidity strains and other woes.
That walling-off is designed to preserve stakeholder value, Mr. Cooper
continued, and to permit a restructuring to take place at the parent
company level with a fewer number of stakeholders, without disruption to
the operating entities, and avert a free-fall bankruptcy filing.

Laidlaw Inc. is a holding company for North America's largest provider
of school and intercity bus transportation, municipal transit, patient
transportation and emergency department management services.

LERNOUT & HAUSPIE: To Lay Off 800 Workers This Week
This week, Lernout & Hauspie Speech Products NV (L&H) of Belgium will
immediately lay off 800 of its workers. This is the first phase of a 20
percent cut in its work force. This will save the company and its non-
debtor affiliates nearly $21.9 million in payroll and related expenses.
John Duerden, L&H's chief executive officer said Friday that there was
no other option but to lay off workers since the company had to start
its recovery plan, Reuters reports.

According to court papers obtained by Reuters, L& H's proprietary and
confidential information will be protected by immediately removing
terminated workers from the premises upon notice and protects L&H from
fines, penalties and employee litigation.

On January 5, a Belgian commercial court granted L&H a concordat which
provides it bankruptcy protection similar to that obtained in U.S. court
on November 29, 2000 for L&H and two U.S. units, Dictaphone and Dragon
systems now known as L&H Holdings, Reuters reports. L&H is composed of
70 corporations worldwide, but the majority of its assets and earnings
are in the United States because of last year's acquisition of
Dictaphone and Dragon.

LERNOUT & HAUSPIE: Luc Despins Tells Court Assets Buyers Have Surfaced
An attorney for Lernout & Hauspie Speech Products N.V. told Judge Wizmur
last week that the Belgian developer of voice recognition technology has
received expressions of interest regarding the purchase of certain L&H
assets, according to a Reuters report.  When the judge asked attorney
Luc Despin what the value of the company's assets and liabilities is, he
said he would provide the figures off-the-record, but was reluctant to
do so in open court with a reporter present.  "The problem is that if we
want to sell the businesses," revealing their value would affect L&H's
negotiating strategy, Despin said. He did, however, tell Wizmur that
"L&H has received an expression of interest to acquire Mendez," the
Belgian/French translation subsidiary of L&H which Despin said was
valued at more than $150 million.

Other assets being considered include an unidentified L&H business unit
that Despin said was worth in excess of $150 million and the company's
Medical Solutions Inc. subsidiary, a U.S. holding company for medical
transcription services acquired by L&H in May for about $60 million. A
sale of the Melbourne, Fla., manufacturing plant of L&H's Dictaphone
Corp. subsidiary was also a possibility, Despin said.

Final approval of L&H's proposed $35 million debtor-in-possession (DIP)
facility from General Electric Co.'s GECC financing arm was postponed
until a Jan. 18 hearing at Despin's request.  L&H and two U.S. units,
Dictaphone Corp. and the former Dragon Systems Inc., filed for chapter
11 bankruptcy protection in Delaware on Nov. 29.  (ABI 05-Jan-2001)

LERNOUT & HAUSPIE: Morris Nichols Serving as Local Delaware Counsel
Lernout & Hauspie Speech Products and Dictaphone Corporation obtained
authority from Judge Wizmur to employ the Wilmington, Delaware, law firm
of Morris, Nichols, Arsht & Tunnell to act for these estates as local
counsel. Prior to the commencement of these cases, the Debtors sought
the services of Morris, Nichols, with respect to, among other things,
advice regarding, and the preparation for, the commencement and
prosecution of one or more cases under Chapter 11 of the Bankruptcy Code
concerning the Debtors. The proposed post-petition services of the firm

   (a) Perform all necessary services as the Debtors' counsel,
       including, without limitation, providing the Debtors with
       advice, representing the Debtors, and preparing all necessary
       documents on behalf of the debtors, in the areas of corporate
       law, real estate, employee benefits, business and commercial
       litigation tax, debt restructuring, bankruptcy and asset

   (b) Take all necessary actions to protect and preserve the
       Debtors' estates during the pendency of their Chapter 11 cases,
       including the prosecution of actions by the Debtors, the defense
       of any actions commenced against the Debtors, negotiations
       concerning all litigation in which the Debtors are involved, and
       objecting to claims filed against the estates;

   (c) Prepare on behalf of the Debtors, as debtors in possession,
       all necessary motions, applications, answers, orders, reports
       and papers in connection with the administration of these
       Chapter 11 cases;

   (d) Counsel the Debtors with regard to their rights and
       obligations as debtors in possession; and

   (e) Perform all other necessary legal services.

The attorneys with primary responsibility for appearing in these cases
and their current hourly rates are:

            Robert J. Dehney, Partner       $ 340
            Michael G. Busenkell, Associate $ 190
            Jason W. Staib, Associate       $ 180

These rates are subject to periodic adjustments to reflect economic and
other conditions. Other attorneys and paralegals may from time to time
serve the Debtors in connection with these cases.

Mr. Robert J. Dehney has averred to the Court that neither Morris,
Nichols, any partner, counsel, or associate, nor he represent any
interest adverse to the Debtors, as a Debtor in Possession herein, or to
their estates in the matters upon which the firm is to be engaged. Mr.
Dehney further averred that the firm has not received any payment from
the Debtors during the year prior to the Petition Dates. While the firm
represents parties in interest to these estates such as Centennial
Technologies I, Pitney Bowes, Novell, Inc., Excalibur Technologies N.V.,
and IRIS, none of these representations involve any issue affecting
these estates in bankruptcy.  (L&H/Dictaphone Bankruptcy News, Issue No.
2; Bankruptcy Creditors' Service, Inc. 609/392-0900)

LIDS CORPORATION: Case Summary & 20 Largest Unsecured Creditors
Debtor: Lids Corporation
        60 Glacier Drive
        Westwood, MA 02090

Type of Business: Hat retailing

Chapter 11 Petition Date: January 4, 2001

Court: District of Delaware

Debtor's Counsel: Michael Lastowski, Esq.
                  Duane, Morris & Hecksher
                  1201 Orange Street
                  Suite 1001
                  Wilmington, DE 19801
                  (302) 571-5550

Estimated Assets: $10 to $50 million
Estimated Debts:  $10 to $50 million

20 Largest Unsecured Creditors:

Zephyr Graf-X                    Trade Debt                  $5,484,744
Twins Enterprises, Inc.          Trade Debt                  $3,781,757
New Era Cap Co., Inc.            Trade Debt                  $2,487,309
Logo Athletic Incorp. Headwear   Trade Debt                  $2,436,904
Agron, Inc.                      Trade Debt                  $1,784,348
Nike USA Inc.                    Trade Debt                    $876,131
Nike Team Sports                 Trade Debt                    $576,456
BSW Headworks, Inc.              Trade Debt                    $424,447
Datavantage                      Trade Debt                    $249,132
Interworld Corporation           Trade Debt                    $217,903
Kangol Headwear, Inc.            Trade Debt                    $191,855
Fort Point Partners              Trade Debt                    $142,695
RGIS Inventory Specialists       Trade Debt                    $135,908
Mike Doukas                      Trade Debt                    $120,000
Ontario Store Fixtures           Trade Debt                    $119,280
Perfect Curve, Inc.              Trade Debt                    $100,504
American Needle                  Trade Debt                     $97,974
Agentry Staffing Services, Inc.  Trade Debt                     $84,653
Adcom Express                    Trade Debt                     $83,581
HMS HOST (486)                   Trade Debt                     $80,000

LOGOATHLETIC: Asks for Extension of Lease Decision Period to May 8
LogoAthletic, Inc. f/k/a TKS Acquisition Inc. and LogoAthletic of
Nevada, Inc. d/b/a Collegiate Graphics seeks an order extending time to
assume or reject unexpired leases of nonresidential real property
pursuant to ll USC Section 365(d)(4).

A hearing on the motion will be held before the Honorable Mary F.
Walrath on January 26, 2001.

The debtors seek an order extending the period of time within which they
must assume or reject the unexpired leases until the earlier of May 8,
2001 and the effective date of the plan of reorganization of the
affected debtor.

The debtors state that the case is large and complex, involving a large
number of creditors and numerous more pressing matters. The unexpired
leases are an important asset of the estate and are likely to be central
to any plan of reorganization which provides for the debtors' continued
operation as a going concern. In the event that a plan is not confirmed
effective or if approval of the plan is substantially delayed and the
business of the debtors erodes, the debtors will need time to consider
again each lease and its value to any different plan of reorganization.

METAL MANAGEMENT: Committee Retains Milbank Tweed as Lead Counsel
The Official Committee of Unsecured Creditors of Metal Management, Inc.,
seeks court authority to retain and employ Milbank, Tweed, Hadley &
McCloy LLP as its lead counsel in the Debtors' chapter 11 restructuring.
By separate applications the Committee has also applied to retain
Morris, Nichols, Arsht & Tunnell as its Delaware counsel and CIBC World
Markets as its financial advisor.

Among other services, Milbank will:

     * Advise the Committee with respect to its rights, powers and
duties in these cases;

     * Assist and advise the Committee in its consultations with the
debtors relative to the administration of these cases;

     * Assist the Committee in analyzing the claims of the debtors'
creditors and in negotiating with such creditors;

     * Assist with the Committee's investigation of the acts, conduct,
assets, liabilities and financial condition of the debtors and of the
operation of the debtors' business;

     * Assist the Committee in its analysis of, and negotiations with
the debtors or any third party concerning matters related to, among
other things, the terms of a plan or plans of reorganization for the

     * Assist and advise the Committee with respect to its
communications with the general creditor body regarding significant
matters in these cases;

     * Review and analyze all applications, orders, statements of
operations and schedules filed with the court and advise the Committee
as to their propriety;

     * Assist the Committee in evaluating and pursuing if necessary ,
claims and courses of action against the debtors' prepetition lenders;

     * Assist the Committee in preparing pleadings and applications as
may be necessary in furtherance of the Committee's interests and

     * Represent the Committee at all hearings and other proceedings;

     * Perform such other legal services as may be required and are
deemed to be in the interest of the Committee.

The principal attorneys and paralegals and their standard hourly rates
are as follows:

               Robert Jay Moore     $540 per hour
               Fred Neufeld         $375 per hour
               Mathew McDonald      $330 per hour
               Scott Gautier        $310 per hour
               Patricia Naegely     $145 per hour

MKPP, LLC: Case Dismissed
On December 27, 2000 an order of dismissal was entered by the Honorable
Prudence Carter Beatty in the Chapter 11 case of MKPP, LLC.

MKPP filed for chapter 11 protection in the Southern District of New
York on July 26, 2000, listing $6.7 million in assets and $1.5 million
in debts.

NY TIMES: Will Cut 69 Jobs at its Internet Unit
Due to the slowing growth of online advertising in New York Times' unit,
New York Times Digital, the media company said on Sunday, January 7,
that it will lay off 69 of Digital's employees on January 8, 2001,
Reuters reports.  The cuts will affect workers at all levels in the
online unit's offices in Boston, Cambridge, Mass., Santa Rosa, Calif.,
and New York. The reductions' goal is to make Times Digital profitable
in cash-flow terms by 2002.

The Times Co. is the second big old-media group to outline job
reductions among online workers in four days.

OWENS-CORNING: Asbestos Committee Hires Caplin as Lead Counsel
The Official Committee of Asbestos Claimants of Owens Corning and its
subsidiaries, has applied for judicial authority to employ the
Washington, DC, and New York law firm of Caplin & Drysdale, Chartered,
as their lead attorneys in these Chapter 11 cases and all related
matters retroactively to the Petition Dates to assist the Committee in
carrying out its official functions. The Committee activities and the
services of its counsel in the foreseeable future are expected to
include, inter alia, the following responsibilities:

   (a) Assisting and advising the Committee in its consultations with
       the Debtors and other committees relative to the overall
       administration of the estates;

   (b) Representing the Committee at hearings to be held before this
       Court and communicating with the Committee regarding the matters
       heard and issues raised as well as the decisions and  
       considerations of this Court;

   (c) Assisting and advising the Committee in its examination and
       analysis of the Debtors' conduct and financial affairs;

   (d) Reviewing and analyzing all applications, orders, operating
       reports, schedules and statements of financial affairs filed and
       to be filed with this Court by the Debtors or other interested
       parties in this case;

   (e) Advising the Committee as to the necessity and propriety of the
       foregoing and their impact upon the rights of asbestos-health
       related claimants, and upon the case generally;

   (f) After consultation with and approval of the Committee or its
       designee(s), consenting to appropriate orders on its behalf or
       otherwise objecting thereto;

   (g) Assisting the Committee in preparing appropriate legal pleadings
       and proposed orders as may be required in support of positions
       taken by the Committee and preparing witnesses and reviewing
       documents relevant thereto;

   (h) Coordinating the receipt and dissemination of information
       prepared by and received from the Debtors' independent certified
       accountants or other professionals retained by it as well as
       such information as may be received from independent   
       professionals engaged by the Committee and other committees, as

   (i) Assisting the Committee in the solicitation and filing with the
       Court of acceptances or rejections of any proposed plan or plans
       of reorganization;

   (j) Assisting and advising the Committee with regard to
       communications to the asbestos-related claimants regarding the
       Committee's efforts, progress and recommendations with respect
       to matters arising in the case as well as any proposed plan of
       reorganization; and

   (k) Assisting the Committee generally by providing such other
       services as may be in the best interest of the creditors
       represented by the Committee.

The attorneys and paralegals proposed to represent the Committee, and
their hourly rates, are as follows:

       Elihu Inselbuch             $ 630
       Peter Van N. Lockwood       $ 500
       Julie W. Davis              $ 365
       Trevor W. Swett             $ 360
       Nathan D. Finch             $ 290
       Rita C. Tobin               $ 265
       Kimberly N. Brown           $ 265
       Kris Bess                   $ 160
       Robert C. Spohn (paralegal) $ 135
       Elyssa J. Strug (paralegal) $ 125
       Sean O'Connell (paralegal)  $ 115

This listing is not exclusive, and other professionals may perform
services for the Committee.

The Committee has requested that the firm's employment be authorized
retroactively to the Petition Dates as the firm had to begin work for
the Committee immediately upon the filing. Elihu Inselbuch, on behalf of
Caplin and Drysdale, disclosed that the firm presently represents
Canadian Imperial Bank of Commerce, Citibank, N.A., and Toronto Dominion
Bank, all of which are unsecured creditors of these
Debtors, and Fleet National Bank, a member of the general unsecured
creditors' committee, and other general creditors such as Johnson
Matthey & Co. and ExxonUSA in tax matters unrelated to these Chapter 11
cases, and which therefore create no actual conflict of interest for the
firm or the Committee.  (Owens-Corning Bankruptcy News, Issue No. 7;
Bankruptcy Creditors' Service, Inc., 609/392-0900)

PILLOWTEX: Employs KPMG as Auditors & Tax Advisors
Pillowtex Corporation asks Judge Robinson to authorize its employment of
KPMG LLP, the United States member firm of KPMG LLP International, a
Swiss association, as independent auditors and tax, accounting and
compensation advisors in these Chapter 11 cases retroactively effective
as of the Petition Date. The Debtors and KPMG intend to enter into an
engagement letter which described the services KPMG anticipates
performing for the Debtors, and the terms and conditions of KPMG's
proposed engagement.

Specifically, KPMG will provide these services:

   (a) Independent Auditing and Reporting Services

       (i) auditing and reviewing the Debtors' financial statements
           as may be required from time to time;

       (ii) advising the Debtors regarding the proper accounting
            treatment of postpetition events;

       (iii) assisting with the preparation and filing of the
             Debtors' financial statements and disclosure documents
             required by the Securities and Exchange Commission;

       (iv) assisting with the preparation and filing of the
            Debtors' registration statements required by the Securities
            and Exchange Commission in relation to debt and equity
            offerings; and performing other auditing and reporting
            services as the Debtors may request in these chapter II   

   (b) Tax Advisory Service

       (i) assisting with the preparation and filing of the
           Debtors' tax returns;

       (ii) assisting with the Debtors' tax planning, including
            estimating net operating loss carryforwards, international
            taxes, and state and local taxes;

       (iii) assisting the Debtors with issues related to
             transaction taxes, such as state and local sales and use

       (iv) assisting with tax matters related to the Debtors'
            pension plans;

       (v) assisting the Debtors with issues related to real and
           personal property tax matters;

       (vi) assisting the Debtors with any existing or future IRS,
            state or local tax examinations, and

       (vii) providing other consulting, planning or analysis
             regarding tax issues as the Debtors may request in these
             chapter 11 cases.

   (c) Accounting and Compensation Services

       (i) assisting the Debtors with the preparation of reports or
           filings as required by the United States Trustee or the
           Court, including but not limited to the Schedules of Assets
           and Liabilities, Statements of Financial Affairs and monthly
           operating reports;

       (ii) assisting the Debtors with the preparation of financial
            information for distribution to creditors and other parties
            in interest, including analyses of cash receipts and
            disbursements, financial statement items and proposed
            transactions for which Court approval is sought;

       (iii) assisting the Debtors with the implementation of debtor in
             possession accounting procedures as required by the
             Bankruptcy Code and generally accepted accounting  

       (iv) evaluating and advising on the Debtors' potential employee
            retention and severance plans;

       (v) assisting the Debtors with the preparation of documents
           in connection with confirmation of a plan of reorganization,
           including financial and other information contained in any
           plan of reorganization and disclosure statement;

       (vi) assisting with claims resolution procedures, including
            analysis of creditors' claims by type and entity and
            maintenance of a claims database; and

       (vii) performing such other accounting and compensation
             services as the Debtors may request in these Chapter 11

Prior to the Petition Date, on or about November 10, 2000, the Debtors
paid to KPMG a retainer of $100,000 for services rendered or to be
rendered. The retainer has been and will be applied on account of fees
incurred and to be incurred in providing services to the Debtors in
contemplation of, and in connection with, these Chapter 11 cases. On
November 13, 2000, KPMG applied $100,000 of the retainer as payment for
fees incurred or expected to be incurred for the period through and
including November 13, 2000. Accordingly as of the Petition Date none
of the retainer remains unapplied.

In addition to providing KPMG with the retainer, the Debtors made the
following payments to KPMG during the year immediately preceding the
Petition Date:

            Date of Payment           Amount of Payment
            ---------------           -----------------
              Nov 9, 1999                $ 405,000
              Dec 1999                   $ 254,450
              Jan 2000                   $  86,880
              Feb 2000                   $ 300,000
              Mar 2000                   $ 147,540
              May 2000                   $   2,619
              June 2000                  $  16,700
              Nov 2000                   $ 110,900

Accordingly, including the applied portion of the retainer described
above the Debtors made payments to KPMG aggregating $1,424,089 during
the year immediately preceding the Petition Date on account of fees and
expenses incurred by KPMG on matters relating to the Debtors.

Mr. Thomas D. Bibby, on behalf of KPMG, averred to the Court that the
firm was a disinterested party within the meaning of the Bankruptcy Code
and did not represent any interest adverse to the estate on the matters
upon which employment is sought. However, the following parties having
an interest in these estates were or are clients of KPMG: E. W. Blanch
Holdings, Inc.; Guilford Mills, Inc.; Madden Securities Corporation;
Mercantile Bank and Trust; State Street Bank & Trust Co.; U. S. Bank
Trust, N.A.; Philadelphia Economic Development Financial Authority; The
Industrial Development Board of the City of Phenix City, Alabama; E. I.
DuPont de Nemours & Co.,; Credit Suisse First Boston; J. C. Penney Co.
Inc.; State Farm Insurance Co.; Wal-Mart Stores, Inc., Bank Austria
Creditanstalt Corporate Finance, Inc.; BankBoston, N.A.; Bank One,
Texas, N.A.; Ban, Polska Kasa Opieki, S.A. New York Branch; Bankers
Trust; Chase Manhattan; and others. However, the firm did not and does
not represent these parties in any matters affecting or adverse to the
Debtors or these estates in the matters for which employment approval is

KPMG estimated that the fees for the services described above will be
$475,000, plus out-of-pocket expenses. (Pillowtex Bankruptcy News, Issue
No. 3; Bankruptcy Creditors' Service, Inc., 609/392-0900)

PSINET, INC.: Baird Analyst Sees a Bankruptcy Filing in His Crystal Ball
After overextending its credit and losing money faster than expected,
there is speculation on Wall Street that the web infrastructure company,
PSINet Inc., is headed for bankruptcy, according to a newswire report.
Through the first nine months of 2000, PSINet lost 21 cents per share or
$40.7 million in Ebitda, while its net losses for that period were
nearly $1.8 billion.

"Bankruptcy probably makes the most sense," said Dan Renouard, an
analyst with Robert W. Baird & Co. of Milwaukee. "One of the problems is
that we've gotten indications that their core business is deteriorating
much more rapidly than they probably would have thought. So even selling
assets at this point may be too late."

Robert Leahy, a PSINet spokesman, declined to comment on suggestions the
company may be headed for bankruptcy. The company will announce a
divestiture plan when it releases fourth-quarter financial statements in
February, he said. The Ashburn, Va.-based company's troubles emerged
late in the summer after it paid $2 billion in stock for the consulting
business, Metamor Worldwide Inc. of Houston. The integration of the two
companies was a disaster, and in November PSINet warned investors of a
larger than expected loss for the third quarter. The deal was supposed
to bring in as much as $1 billion in revenues, but instead has cost the
company millions of dollars.  (ABI 05-Jan-2001)

RECYCLING INDUSTRIES: Judge Brooks Enters Order of Dismissal
An order dismissing the chapter 11 cases filed by Recycling Industries,
Inc. aka Alfa Industries, Inc. and Environmental Recovery Systems, Inc.
was entered on December 6, 2000 by Judge Sidney B. Brooks, US Bankruptcy
Court, District of Colorado.

SAFETY-KLEEN: Assumes & Rejects Agreements with Emmert Development
Safety-Kleen Corp. brings a motion before Judge Walsh seeking authority
for SK Systems to: (a) assume a settlement and release agreement dated
November 3, 1999; (b) reject a month-to-month lease of real property
located at 11843 S.W. Highway 212, Clackamas, Oregon with Emmert
Development; and (iii) assume an access agreement dated January 9, 1999.

The Oregon property consists of 3000 square feet of warehouse space,
including 412 square feet of office area and 144 feet of fenced storage
area. The initial lease term was for five years and expired in April of
1993. Upon expiration of the initial lease term, environmental issues
were discovered requiring investigation and potential clean-up. At the
time Emmert stated it expected SK to turn over a "clean" property. SK
Systems agreed to continue leasing the Oregon property on a month-to-
month basis, during which time the Debtors commenced remedial action for
hazardous substance releases allegedly caused by SK Systems.

In 1996 Systems and Emmert entered into an access agreement under which
the Debtors would have access to all of Emmert's property in Clackamas,
including the leased property, to allow the Debtors to conduct
environmental testing, take soil borings, install monitoring wells, and
perform additional remediation as needed.

SK Systems commenced the remedial action at the Oregon property under
the oversight of the Oregon Department of Environmental Quality. In
1998, Emmert individually and as Emmert International filed a lawsuit
against Safety-Kleen Corporation to recover damages arising from an
alleged release of hazardous substances by Corporation onto the Oregon
property. Concurrently, SK Systems requested that the Oregon DEQ issue
a letter of no further action stating that Systems had taken all
necessary remedial action for any hazardous contamination it might have
caused at the Oregon property and determining that any remaining
contamination in the soil and groundwater originated from sources other
than SK Systems. DEQ declined to issue such a letter and concluded that
there was not sufficient information to shift the responsibility away
from Systems to any other party.

In order to reach a global settlement with Emmert and all related
entities, SK Systems and Emmert entered into a Settlement Agreement.
The Settlement Agreement requires that SK Systems perform remedial
action at the Oregon property until DEQ issues a letter of satisfactory
completion of remediation. In order to limit the costs of remediation,
SK Systems and Emmert agreed Emmert would limit the use of the Oregon
property's groundwater to prohibit any use other than to provide
necessary water for lawns, bushes, flowers and trees on the Oregon
property and place a deed restriction on the Oregon property reflecting
that limitation.

In connection with this limitation of use, SK Systems agreed to make
payments in the amount of $240,000 to pay part of the costs of
connecting the property to a public water service, thereby minimizing
the effect of the limitation on water usage and deed restriction by
providing an adequate water supply to the Oregon property for drinking
and other purposes. To date, $45,000 of the $240,000 has been paid. SK
Systems also paid $60,000 when the Emmert lawsuit was dismissed with
prejudice in 1999.

The Debtors proposed to assume the Settlement Agreement, which would
require that the Debtors pay Emmert $95,000 within fifteen days after a
contractor breaks ground for the public service water connection. An
additional $100,000 will be paid to Emmert within fifteen days of
completion of the public water service connection. In turn, Emmert will
place deed restrictions on the Oregon property. Even though the
Settlement Agreement provided that the public water supply had to be in
place by August 31, 2000, the Debtors and Emmert have agreed to extend
that date to April 1, 2001, and Judge Walsh expressly incorporated this
extension in his Order. During this time Emmert must use its best
efforts to have the water service connection completed.

The Debtors advised Judge Walsh that they believe that DEQ will issue a
letter of satisfactory completion when the public service water
connection is completed with subsequent monitoring by the Debtors. The
cost of such monitoring will be approximately $60,000 per year for two
years. Without approval of this agreement, the Debtors believe DEQ will
require continued remediation, which would entail additional monitoring
for ten years, risk assessment to select an appropriate remedial plan,
operation and maintenance of a remedial system, and confirmation
sampling and preparation of closure documents at a cost the Debtors
estimate to be in excess of $1,000,000. In addition, the Debtors would
incur internal administrative expenses associated with regulatory
oversight of the Oregon Property and would continue to incur expenses
associated with supplying drinking and other water to the Oregon

On this basis, the Court found that granting the requested relief was in
the best interests of the Debtors and their estates. (Safety-Kleen
Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc.,

SCIENTIFIC MEASUREMENT: Seeks Protection Under Chapter 7
Scientific Measurement Systems, Inc. announced January 5, 2001 that it
filed for bankruptcy Chapter 7 of the U.S. Bankruptcy Code on December
21, 2000.  On December 18, 2000, the Austin, Texas-based company's Board
of Directors announced that the company has filed for protection from
its creditors under provisions of the Federal Bankruptcy Code.  In all
events, the Company has formally ceased operation and a trustee has been
appointed to liquidate its assets.  At April 30, 2000, the Company's
balance sheet showed $642,000 in assets and $1.3 million in liabilities.

"The Company experienced a very difficult year with very little new
revenue over the most recent quarters," said Tom Prud'homme.  "In fact
the industrial CT industry as a whole appears to have been in a down
turn over the last year," he added.

"Additional efforts to develop a strategic service based relationship
with a new European user for the Company's technology were being
vigorously pursued until mid-November when discussions were suddenly
terminated. This new application seemed to hold considerable promise
with the organization in question, but that large prospective partner
ultimately concluded that it could not commit, invest in, or acquire, a
small Austin-based technology firm."

SMS has been a publicly traded company traded on the OTC Bulletin Board
under the symbol SCMS.

SGSM ACQUISITION: Plan Confirmed on December 27
The Second Amended Chapter 11 plan filed by SGSM Acquisition Company,
LLC was confirmed by order of the US Bankruptcy Court, Eastern
District of Louisiana on December 27, 2000, Thomas M. Brahney III,

SHAMAN PHARMACEUTICALS: Files Chapter 11 Petition in California
Shaman Pharmaceuticals, Inc. (OTCBB:SHPH) has voluntarily filed a
Chapter 11 reorganization petition for protection under Federal
Bankruptcy law in the United States Bankruptcy Court, Northern District
of California.

The San Francisco-based company's decision to seek protection was taken
because the company believes that a bankruptcy reorganization provided
the best means of maximizing the value of its real estate lease and
intellectual property for the benefit of its creditors and shareholders.
During the bankruptcy proceeding, Shaman will continue to operate as a
debtor in possession, and anticipates promptly filing a plan of
reorganization to restructure its debts.

The company has engaged Roth Capital Partners to assist with the sale or
licensing of certain of its key assets, including discontinued
pharmaceutical products.

The timing of the bankruptcy filing was imposed by several factors,
including the need to preserve the value of the company's below-market
lease which may be assigned in bankruptcy to generate substantial funds
for the Company and to provide clear title to buyers or licensees of
certain key intellectual property assets of the company.  

Despite the filing, Shaman will continue to sell its products. Normal
Stool Formula (NSF) will be sold in the near term through General
Nutrition Centers (GNC) under a signed contract with GNC to market NSF
as an anti-diarrheal product to health food and specialty store
channels. NSF and NSF-IB will also continue to be sold through the
Internet at http://www.NSFIB.comand at 800/987-9920, as well as through  
specific retail operations such as The Medicine Shoppe Pharmacies and
other smaller retail pharmacies.

SUN HEALTHCARE: Judge Walrath Approves Sale of U.K. Unit to Management
Sun Healthcare Group Inc., one of several large U.S. health care
providers scrambling to emerge from chapter 11, obtained court approval
last week to sell its British unit, Sun BV, to the subsidiary's own
management in an effort to bypass some $300 million in claims against
the subsidiary, which is also bankrupt, according to a newswire report.
The deal will wipe out an inter-company debt of $27 million that Sun BV
owes the parent company. It also will limit the claims of $261 million
from Principal Healthcare Finance Ltd. and $33 million from Red Mountain
Funding LLC that Sun Healthcare was exposed to as 100 percent owner of
Sun BV.

Judge Mary Walrath approved the sale and also granted the company a 60-
day extension of its deadline to craft a reorganization plan as Sun
Healthcare continues to sell units. The company expects to close the
sale this month of its money-losing medical supply subsidiary for about
$20.1 million in cash and inventory to privately held Medline Industries
Inc. of Mundelein, Ill. Subsidiary SunChoice Medical Supply will be sold
for $6 million in cash, about $7.8 million for its inventory and $6.3
million for accounts receivable.

The Albuquerque-based Sun Healthcare filed for chapter 11 in the U.S.
Bankruptcy Court in Wilmington, Del., on Oct. 14, 1999. At that time,
the company listed $1.8 billion in assets and $2.1 billion in
liabilities.  (ABI 05-Jan-2001)

SUN HEALTHCARE: Rejecting Six Useless Office Leases
Sun Healthcare Group seeks authorization pursuant to section 365(a) of
the Bankruptcy Code to reject six nonresidential real property leases
related to office spaces which have been vacated and for which the keys
were surrendered to the landlords.

After entering into the leases, the Debtors encountered significant
liquidity problems which eventually led to the commencement of the
bankruptcy cases. As a result, the Debtors determined that the leases
are not necessary for their continued operations and do not have
sufficient value to warrant their continuing administrative costs.

After reviewing the terms of the leases and the locations of the leased
premises, contacting local real estate brokers and/or analyzing the
lease terms of comparable premises within the same geographic vicinity,
the Debtors believe that the costs associated with marketing the leases,
in addition to any cure amounts that would be required to be paid
pursuant to section 365(d)(3) of the Bankruptcy Code, would be
significantly greater than any potential value that might be realized by
any future sale or sublease.

By rejecting the leases, the Debtors anticipate that the estates of Sun
will save approximately $307,755 in future rent obligations. The Debtors
estimate that lease rejection damages will amount to approximately

Accordingly, the Debtors have determined in the exercise of their
business judgment that such Leases should be rejected.

The properties related to the leases are:

      Property Address                               Lessor
      ----------------                               ------
      61 Nicholas Road                         Russell F. Doucette
      Framingham, MA                           Trustee of Liberty Trust

      310 N. Wilmot                            Daniel and Rae Ann Jacob
      Suite 312
      Tucson, AZ 85711

      512 Mayfield St.                         Henderson Enterprises
      Summerville, SC 29485

      7263 Sawmill Road                        Millco Properties
      Suite A-1                                Miller Investments
      Dublin, OH

      11552 Knott St.                          D & H Investments
      Garden Grove, CA

      1000 Route 9 1000                        Woodbridge Associates
      Suite 204
      Woodbridge, NJ 08095
(Sun Healthcare Bankruptcy News, Issue No. 17; Bankruptcy Creditors'
Service, Inc., 609/392-0900)

TWA INC.: Filing "Chapter 33" Petition Tomorrow
American Airlines Inc. is said to announce plans to buy financially
troubled Trans World Airlines Inc. At the same time it has reached an
agreement to buy 49 percent of DC Air, the airline being created by
Black Entertainment Television founder Robert Johnson, and is close to a
deal with United Airlines Inc. to jointly operate the US Airways Shuttle
on routes from Washington to New York and Boston. All three deals are
said to be made public on January 10 2001, the Washington Post reports.

The moves, whose cost figures were not available as of January 7, are
part of a deal to address federal antitrust concerns about United's
proposed merger with US Airways Group Inc. and improve American's
position in the United States, the Post said. American's plan to buy TWA
would make its size comparable to that of the United and US Airways
planned merger. The acquisition of TWA's St. Louis operation, one of the
nation's smoothest flowing hubs, will give American a much-needed third
mid-continent hub along with Chicago O'Hare International Airport and
Dallas-Fort Worth International Airport.

St. Louis-based airline TWA, as part of the deal, will file for Chapter
11 bankruptcy protection from its creditors tomorrow, after which,
American will buy all TWA assets and retain the latter's workforce.
American, however, does not intend to use TWA's name. TWA officials
refused to comment on the purchase while other airline industry
officials would not speak for attribution, the Post relates.

UNIVERSAL BROADBAND: Extending Time to Assume/Reject Leases by 60 Days
Universal Broadband Networks, Inc. seeks a 60 day extension of the
deadline for the assumption or rejection of unexpired real property

The debtor believes that cause exists for the extension of time to
assume or reject its unexpired leases. The debtor is in the process of
negotiating a potential sale o fits Salt Lake City operations, and if
successful, the sale would include the leases. However, if the sale
fails to close, then these leases may have no benefit tot he estate.
Therefore, the debtor believes it would be premature a this time to
assume or reject these leases. With respect to the Park Newport Leases,
the debtor believes that it would be premature to assume or reject such
leases in light of continued discussions between the debtor and the
Committee regarding the direction of this case and the extent and scope
of Mr. Sternberg's involvement in connection with the management of the

VIDEO UPDATE INC: Seeks Extension of Exclusivity to April 20
Video Update, Inc., et al. seeks entry of an order extending their
exclusive periods to file a plan of reorganization and solicit
acceptances thereto for approximately 90 days, through and including
April 20, 2001 and June 22,2001, respectively.

Since the Petition Date, the debtors have focused their attention on
stabilizing and streamlining operations, rejecting burdensome leases and
closing underperforming stores. By the end of December 2000, the debtors
will have closed more than 100 unprofitable stores and disposed of a
like number of leases. In addition, the debtors have streamlined
operations, making personnel and other cuts to save $2.4 million
annually. However, the debtors have not yet had a meaningful opportunity
to begin formulating or negotiating the terms of a Chapter 11 plan, and
consequently seek a 90 day extension of their exclusivity periods.


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

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles available
from -- go to
-- 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
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Inc., Washington, DC USA. Debra Brennan, Yvonne L. Metzler, May Guangko,
Aileen Quijano, Peter A. Chapman, Editors.

Copyright 2001.  All rights reserved.  ISSN: 1520-9474.

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