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         T R O U B L E D   C O M P A N Y   R E P O R T E R

              Thursday, April 5, 2001, Vol. 5, No. 67

                            Headlines

ADVANCED RADIO: Looming Bankruptcy Takes Toll On Ratings
ADVOCAT INC.: Reports Fourth Quarter & Year-End Losses
ARMSTRONG WORLD: Century Presses for Assumption of Agreement
BOLDER TECHNOLOGIES: Nasdaq To Kick Out Shares Tomorrow
BOLDER TECHNOLOGIES: Plans to File For Bankruptcy Protection

BORDEN CHEMICALS: Files Chapter 11 Petition in Wilmington
BORDEN CHEMICALS: Chapter 11 Case Summary
BOWATER INC.: Dim Paper Market Prompts Downgrade from Moody's
BRIDGE INFORMATION: Provides Streaming Data For E*TRADE Japan
BURNHAM PACIFIC: Sells 19 Properties To Weingarten Realty

CASCADE PACIFIC: Door & Moldings Maker Files for Bankruptcy
COMDISCO INC.: Fitch Places Debt Ratings On Credit Watch
COMDISCO INC.: Moody's Cuts Senior Debt Rating To Ba2 From Baa2
ESPANOL.COM: Taps Bid4Assets for On-Line Asset Auction
FINOVA GROUP: Asks To Retain & Pay Ordinary Course Professionals

GARDEN.COM: Plan of Liquidation Delivering $0.20 to Stockholders
GENESEE HOSPITAL: Moody's Cuts Bond Rating Drops to Junk Level
GENESIS HEALTH: Exclusive Period Extended To June 21
GLOBALSTAR: May File For Bankruptcy Protection
GOLF TRUST: Liquidating REIT Approves Q1 Dividend

HAMPTON INDUSTRIES: Asking Lenders To Extend Forbearance Period
HARNISCHFEGER: Moves To Estimate USWA Claim At Zero Dollars
HIGHLAND INSURANCE: S&P Lowers Financial Strength Rating to BBpi
IMPERIAL SUGAR: Pacific Sugar Asks Court To Enforce Settlement
INTEGRATED HEALTH: Ventas Seeks Rent Payment Of Birchwood Center

KEVCO, INC.: Selling Duo-Form Division For $5.5 Million
LOEWEN GROUP: Jack & Joyce Williams Seek Relief From Stay
MONTGOMERY WARD: Liquidators Selling All Fixtures & Furniture
OWENS CORNING: 2001 Derivative Review Results in $20 Mil Gain
PILLOWTEX: Names Michael Harmon As New Chief Financial Officer

PRANDIUM: Misses Certain Debt Payments & Considers Bankruptcy
PSINET: Delays Form 10-K Filing & May File For Bankruptcy
REFLEX COMMUNICATIONS: Files for Chapter 7 Bankruptcy Protection
REPUBLIC TECHNOLOGIES: Court Okays $420 Million DIP Financing
SCUDDER WEISEL: Board Of Trustees Adopts Liquidation Plan

SONUS COMMUNICATIONS: Four Units File Chapter 11 Petitions
SONUS COMMNICATIONS: Case Summaries & Large Unsecured Creditors
STELLEX TECHNOLOGIES: Court Approves Bidding Procedures
STROUDS: Universal Capital To Conduct Sales At 3 Closing Outlets
TRANS WORLD: Creditors Seek Temporary Stay On American Buyout

U.S. AGGREGATES: Weak FY 2000 Results Trigger Payment Defaults
UTILITY.COM: Myutility Inc. Buys Web Platform & Hires IT Staff
VLASIC FOODS: Agrees To Sell North American Assets To Hicks Muse
VODAVI TECHNOLOGY: Expects First Quarter Shortfall
WANGS INT'L: Taps Universal Capital For Excess Inventory Sale

WINSTAR COMMUNICATIONS: Moody's Junks Senior Debt Ratings
XEROX CORP.: Can't Produce Audited Financial Statements
ZYMETX: Securities Subject to Possible Delisting From Nasdaq

                            *********

ADVANCED RADIO: Looming Bankruptcy Takes Toll On Ratings
--------------------------------------------------------
Bankruptcy Court-bound Advanced Radio Telecom Corporation took a
further beating Tuesday as several of its bond ratings got
downgraded by Moody's Investors Service.

The rating agency lowered the company's senior unsecured debt
rating to Ca from Caa2, senior implied to Ca from Caa1, and
issuer rating to Ca from Caa2.

These measures were undertaken by Moody's in response to the
company's announcement that it plans to file for Chapter 11
bankruptcy protection. The company recently cited its inability
to secure alternate sources of financing as its reason for
filing the petition.

Advanced Radio currently has $112 million in cash, a $35 million
worth of properties and equipment, and spectrum licenses with a
net value of approximately $368 million.

However, the company also has $120 million in debt balance and
about $62 million in registered commitments. Moody's believe its
bondholders "will not recognize full value in a bankruptcy
scenario."

Advanced Radio Telecom Inc. is headquartered in Bellevue,
Washington.


ADVOCAT INC.: Reports Fourth Quarter & Year-End Losses
------------------------------------------------------
Advocat Inc. (Nasdaq OTC:AVCA) announced its results for the
fourth quarter and year ended December 31, 2000. The Company
reported a net loss after taxes of $4.2 million, or $0.76 per
share, in the fourth quarter of 2000 compared with a loss of
$13.9 million, or $2.55 per share, for the same period in 1999.
Net revenues for the fourth quarter of 2000 increased 8.5% to
$50.1 million compared with $46.2 million in the same period of
1999.

"Advocat made progress in 2000 in stabilizing operations and
benefited from a slight increase in revenues and basically flat
expenses compared with 1999," stated Charles W. Birkett, M.D.,
chairman and chief executive officer of Advocat Inc. "Although
we are showing progress related to our previously announced debt
restructuring, we continue to face uncertainties regarding
industry regulation and skyrocketing professional liability
insurance costs."

"Our fourth quarter and year end financial results were affected
by two central issues, professional liability exposure and GAAP
treatment related to our debt restructuring. GAAP required
Advocat to recognize, as current non-cash expense, future lease
escalators that totaled $260,000 in the fourth quarter and are
expected to be approximately $1 million in 2001. With respect to
professional liability exposure, the entire long term care
profession is experiencing dramatic increases in loss exposure.

As a result, reasonable levels of insurance coverage have become
unattainable. The escalation of loss exposure, as determined
actuarially, required Advocat to significantly increase its
self-insured reserves in the fourth quarter of the year,
reducing fourth quarter income by approximately $1.5 million.

These increased costs caused the Company to violate certain
financial covenants with its lead bank. As a result of the
increased insurance costs and the difficulty in obtaining
adequate coverage and the financial covenant violations, our
independent auditors voiced a going concern issue in the year-
end audit."

Dr. Birkett continued, "It is most disconcerting to be faced
with these issues at a time when the efforts of the company's
management team are beginning to bear fruit. We are in
discussion with our bank regarding the financial covenant issue
and are focused on resolving this in the near future. Failing
resolution, the company may be forced to take significant steps
to protect its interests."

Net revenues for 2000 increased 7.7% to $196.0 million compared
with net revenues of $182.0 million in 1999. Patient revenues
increased to $150.1 million in 2000 from $141.0 million in 1999
as a result of increased Medicare utilization and PPS rate
increases at several facilities effective April 2000. The
increases were offset somewhat by lower occupancy rates and a
facility that was closed in July 2000. Resident revenues
increased to $41.9 million from $37.9 million in 1999 as a
result of three facilities opened in the second quarter of 1999
and rate increases.

Total operating expenses increased 0.7% to $153.7 million in
2000 compared with $152.6 million in 1999. The Company continues
to implement cost reductions in response to the Medicare
reimbursement changes. Operating expenses represented 80.1% of
net patient and resident revenues in 2000 compared with 85.3% in
1999.

The Company reported a net loss after taxes and the cumulative
effect of the change in accounting principle of $3.9 million, or
$0.70 per share, in 2000 compared with a loss of $21.7 million,
or $3.98 per share, for 1999. The net loss for 1999 includes a
$7.6 million tax provision resulting from a $12.8 million
increase in the Company's valuation allowance against Advocat's
deferred tax assets due to the uncertainty surrounding the
realization of the future benefits of those deferred tax assets.

Advocat Inc. operates 120 facilities including 56 assisted
living facilities with 5,425 units and 64 skilled nursing
facilities containing 7,230 licensed beds as of December 31,
2000. The Company operates facilities in 12 states, primarily in
the Southeast, and four provinces in Canada.


ARMSTRONG WORLD: Century Presses for Assumption of Agreement
------------------------------------------------------------
In February 2000 Armstrong World Industries, Inc. and Century
Indemnity Company entered into an Agreement of Compromise,
Settlement, and Release. Because the Agreement is subject to
strict confidentiality provisions, the agreement has been filed
with the Court under seal. The Agreement resolved certain
disputes among the parties concerning, inter alia, insurance
coverage for asbestos-related bodily injury claims. The
Agreement provides that Century would make periodic payments to
Armstrong, and that Armstrong would provide Century with certain
releases and ongoing indemnification. A payment from Century was
due in January 2001; however, as a precondition Century insists
that Armstrong assume the Agreement.

Through Curtis J. Crowther and Linda M. Carmichael of the
Wilmington firm of White & Williams LLP, together with Leonard
P. Goldberger of Philadelphia, Pennsylvania, Century told Judge
Farnan it has not sought to repudiate its obligations under the
Agreement, but has sought to ensure its rights as a non-
bankruptcy party to an executory contract and insisted that
Armstrong remain bound by its reciprocal obligations under the
Agreement, as well as to provide Century with adequate
protection of its interests under the Agreement. Subsequent
negotiations have not produced an agreement, and the Debtor,
through its counsel, Weil Gotshal & Manges LLP, has threatened
Century with sanctions for violation of the automatic stay if
the payments were not made. A copy of the letter embodying this
has been filed under seal. As a result of this, Century told
Judge Farnan it must now seek through litigation what it
previously attempted to achieve through negotiation.

             Response by Center for Claims Resolution

The Center for Claims Resolution is a non-profit corporation
that serves as an agent for the resolution of claims of
asbestos-related personal injuries on behalf of asbestos
litigation defendants who are members of the CCR. The CCR
analyzes, administers, litigates and settles asbestos-related
personal injury claims on behalf of its members. Prior to the
Petition Date, Armstrong was a member.

Certain settlements of asbestos-related personal injury claims
negotiated by the CCR on behalf of Armstrong involve deferred
payments. As these deferred payments come due, the CCR bills the
members, and the members are required to provide to the CCR the
funds necessary to pay the deferred payment settlement
obligations, as well as other obligations. The CCR then
distributes the payments to the applicable settlement plaintiffs
and other recipients. Prior to the Petition Date, Armstrong and
other members agreed to provide various types of security to CCR
to assure that they would fund the deferred payment settlements
as they came due.

In February 2000 Armstrong entered into an Agreement or
Compromise, Settlement and Release among Armstrong, ACandS,
Inc., and Century. Armstrong also entered into a Century
Indemnity Coverage Settlement Trust Agreement with Armstrong,
ACandS, and Chase Bank of Texas as trustee. The trustee was
established to receive periodic payments from Century, including
the payment which was due in January 2001, and which has not
been made.

One of the ways in which Armstrong provided assurance of payment
of its deferred payment settlement obligations was to enter into
a letter agreement in August 2000 between Armstrong and CCR.
This letter agreement made Joseph Jordan, CCR's Chief Financial
Officer, an "authorized person" of Armstrong with respect to the
trust. In that capacity, Mr. Jordan is entitled to "request and
authorize the Trustee to release funds in the Armstrong
Subaccount of the Trust Fund directly to the CCR to pay Deferred
Payment Settlement Obligations." Under the Agreement between
Armstrong and ACandS, Armstrong and ACandS each receive a
portion of the total amount that Century pays into the Trust,
which is allocated between an Armstrong Subaccount and an ACandS
subaccount. Mr. Jordan is an authorized person only with respect
to Armstrong's funds. In addition, Armstrong restricted its own
rights to withdraw funds from the Trust until its deferred
payment settlement obligations have been paid in full.

The CCR has rights to the funds that Century was required to pay
into the Trust in January 2001, as well as funds that Century is
required to pay into the Trust in the future under the
Settlement Agreement. CCR, through its counsel Laurie Selber
Silverstein and William A. Hazeltine of the Wilmington firm of
Potter Anderson & Corroon LLP, joined by Richard L. Wasserman,
Stephen E. Leach, and Darek S. Bushnaq of the Baltimore firm of
Venable, Baetjer and Howard LLP, told Judge Farnan that under
any reading of the Settlement Agreement, Century has an
obligation to make the payment at issue into the Trust. Whether
or not the Settlement Agreement is an executory contract,
Century is required to pay the money that was due in January
2001 into the Trust even if Armstrong does not immediately
assume the Settlement Agreement as an executory contract.

The Settlement Agreement does not require Armstrong to do
anything at this time to be entitled to the Century payment. The
CCR believes that Century has never made a claim for
indemnification under the Settlement Agreement and that no party
has made a claim against Century that would trigger Century's
indemnification rights under the Settlement Agreement. Its
obligation to make the January 2001 payment is clear and
unconditional. The CCR therefore requests that Judge Farnan
direct that Century immediately make the payment into the Trust,
together with interest from and after January 5.

CCR further told Judge Farnan that the Settlement Agreement may
not be an executory contract because, among other reasons, the
release and indemnification provisions are not obligations such
that Armstrong's failure to perform them would excuse Century's
performance. Further, CCR pointed out that Century has not
alleged, nor does there appear to be, any performance currently
due by Armstrong, and there may never be any such unfulfilled
performance. If the Settlement Agreement is not executory,
Century's obligation is simply an asset of Armstrong's
bankruptcy case. As such, CCR suggested that Century should be
required to fund the Trust immediately, together with interest
from the date on which Century was required to pay the funds at
issue into the Trust.

                     Armstrong's Response

Through its counsel Armstrong noted that under the Settlement
Agreement Century was given the right to stretch out payment of
the substantial sums owing under the Settlement Agreement over
four installments: February 8, 2000, January 5, 2001, January 5,
2002, and January 5, 2003. These payments are to be made into
the Trust as stated by the CCR.

Armstrong told Judge Farnan that, in consideration of Century's
agreement to make the payments required by the Settlement
Agreement, Armstrong released Century from all asbestos-related
liability under the Century insurance policies. The only
"obligation" of Armstrong remaining under the Settlement
Agreement is an ongoing contingent obligation to indemnify
Century against asbestos-related bodily injury claims that might
be asserted directly against Century and that would have been
covered under the Century policies. Armstrong does not believe
any claims have been asserted or threatened against Century,
and Century has never requested indemnification.

Armstrong's response is simple: the Settlement Agreement is not
an executory contract which it must assume or reject, and
Century has violated the bankruptcy stay by withholding an asset
of the estate. Even if the Settlement Agreement were an
executory contract, no purpose would be served by compelling
Armstrong to accept or reject it at this early stage in its
Chapter 11 case. Further, even a formal rejection of the
Settlement Agreement by the Debtor would not excuse Century from
its obligation to continue to make payments into the Trust.
Therefore, there is no benefit to Century if the Debtor was
ordered to assume or reject the Settlement Agreement at this
time. Accordingly, the Debtors asked that Century be ordered to
make the payment obligations, and that all relief requested by
Century be denied. (Armstrong Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


BOLDER TECHNOLOGIES: Nasdaq To Kick Out Shares Tomorrow
-------------------------------------------------------
Bolder Technologies Corporation (Nasdaq: BOLD) has been notified
by The Nasdaq Stock Market that its common stock will be
delisted from trading on the Nasdaq National Market at the
opening of business on April 6, 2001.

Bolder expects that the trading halt announced by the Nasdaq
Stock Market on March 9, 2001 will remain in place until its
common stock is delisted on April 6, 2001. Bolder's common stock
will not be listed on the Over the Counter Bulletin Board and,
therefore, there may be no trading market or liquidity available
for the stock.


BOLDER TECHNOLOGIES: Plans to File For Bankruptcy Protection
------------------------------------------------------------
Bolder Technologies Corporation (Nasdaq: BOLD) disclosed that it
is continuing to work with its outside advisors to develop
strategic alternatives. The Company has been unsuccessful in
attracting additional financing and it does not expect to secure
any additional financing; therefore, the Company has focused its
efforts on effecting the sale of the Company to a strategic
buyer. However, there are no assurances that the Company will be
able to conclude a sale, merger or other strategic alternative
and, even if it is able to conclude such a transaction, the
Company believes that at present it is unlikely that the terms
of any such transaction would return any value to the Company's
stockholders.

Although Bolder has no definitive plans at this time, the
Company believes that it will seek protection under the United
States Bankruptcy Code in the near future, regardless of whether
it is able to conclude a sale, merger or other strategic
alternative.

Bolder Technologies Corporation, headquartered in Golden,
Colorado, manufactures and markets advanced, high-power spiral
wound rechargeable batteries based on its patented Thin Metal
Film ("TMF(R)") technology. The Company is developing and
commercializing consumer and OEM battery products with the
TMF(R) technology, including the SecureStart(TM) Portable Jump
Starter (which the Company began shipping to retailers in
September 1999), that use proven lead-acid electrochemistry in a
proprietary configuration with a higher power density than any
commercially available rechargeable battery. The TMF(R)
technology offers numerous advantages over existing batteries
for current and future applications, including near-term
opportunities in the marine and auto after markets for 12V
primary starting batteries. Bolder's website is
www.boldertech.com .

Bolder's TMF(R) technology also has possible future applications
in the pending auto industry conversion from 12V to 36V systems,
both directly through vendor sales and indirectly through a
license agreement with Johnson Controls, Inc. ("JCI").


BORDEN CHEMICALS: Files Chapter 11 Petition in Wilmington
---------------------------------------------------------
Borden Chemicals and Plastics Operating Limited Partnership
(BCP) and its subsidiary, BCP Finance Corporation, filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware, according to an announcement by BCP
Management, Inc. (BCPM), the general partner of BCP.

BCPM and Borden Chemicals and Plastics Limited Partnership
(BCPLP) (NYSE:BCU), the limited partner of BCP, were not
included in the filings. (Two other separate and distinct
entities, Borden, Inc., and its subsidiary, Borden Chemical,
Inc., are not related to the filings.)

BCP, a producer of polyvinyl chloride (PVC) resins, elected to
seek bankruptcy court protection to develop and implement a
financial reorganization because, despite management's
continuing efforts to reduce BCP's exposure to natural gas,
depressed resin prices and demand converged with sharply
increased energy costs in the first quarter to create a critical
debt and liquidity situation. BCP believes that it will continue
operating normally during the anticipated reorganization
process.

"BCP, with an estimated 9% of the North American PVC market,
remains a focused PVC player in an industry that, we believe,
will recover and have long-term growth prospects," said Mark J.
Schneider, president and chief executive officer, BCPM.
Schneider added, "We previously announced that we would be
exploring strategic alternatives, including a potential merger,
joint venture or asset sales. We will continue to explore those
alternatives in an orderly way during our Chapter 11
reorganization. Unfortunately, at the present time it appears
unlikely that holders of BCPLP's publicly traded units would
receive any distribution in connection with such a transaction
or that the units would have any value following resolution of
the Chapter 11 process."

In January 2001, the New York Stock Exchange notified BCPLP that
the units did not meet the continued listing standard of a
minimum share price of $1.00 over a 30 trading-day period. In
light of the Chapter 11 filings and the likelihood that the
units would have no value following resolution of the Chapter 11
process, there is a substantial likelihood that the units will
be delisted.

BCP also announced that it is seeking immediate bankruptcy court
approval of a $100 million debtor-in-possession (DIP) credit
facility, which will provide up to approximately $20 million of
new availability, to be provided by a group of lenders led by
Fleet Capital Corporation. Subject to certain terms and
conditions, BCP anticipates that the DIP financing would be used
for employee salaries and certain benefits, materials and
services from vendors, ongoing operations and other working-
capital needs.

"During the reorganization period, BCP intends to maintain its
current operations and will strive to continue to satisfy
customers," Schneider said. "We intend to fulfill our commitment
to our employees, taking the steps necessary to ensure that they
continue receiving their compensation as usual while we operate
under court protection."

Schneider said BCP had recently taken a number of steps,
beginning last year, in an effort to help offset a depressed PVC
market and generally worsened economic conditions. These
included:

      --  Reducing BCP's overall exposure to foreign competition
and domestic raw materials, such as natural gas, by exiting non-
PVC operations through the sale of formaldehyde assets in July,
2000 and the shut down of the methanol and nitrogen products
operations as of January 1, 2001.

      --  Finalizing a company-wide internal restructuring to
become streamlined and focused on PVC, with projected annualized
savings of approximately $5 million.

      --  Targeting discretionary general and administrative
spending for reduction by several million dollars; with some of
these targeted reductions beginning to be implemented.

Schneider added, "While we had hoped for a modest improvement in
resin demand and prices, the extent of the recovery has been
slower than we anticipated and remains highly dependent on
general economic conditions, which continue to be poor. The
outlook for natural gas prices continues to be volatile and
strongly influences BCP's energy and raw material costs, even
after the reduction of gas consumption to the level required to
supply only basic energy needs of the facilities. Like other PVC
producers, BCP has been hampered by dramatic increases in
natural gas prices that climbed steadily through January 2001,
and have only moderated slightly since then."

BCP produces PVC resins at its facilities in Geismar, La., also
the site of its headquarters. BCP has additional PVC operations
in Addis, La., and Illiopolis, Ill.


BORDEN CHEMICALS: Chapter 11 Case Summary
-----------------------------------------
Lead Debtor: Borden Chemicals And Plastics
              Operating Limited Partner
              Highway 73 P.O. Box 427
              Geismar, LA 70734

Debtor affiliate filing separate chapter 11 petition:

              BCP Finance Corporation, A Delaware Corporation

Type of Business: Producer of PVC resins

Chapter 11 Petition Date: April 3, 2001

Court: District of Delaware

Bankruptcy Case Nos.: 01-01268 and 01-01269

Judge: Hon. Mary F. Walrath

Debtors' Counsel: Michael Lastowski, Esq.
                   Duane, Morris, & Hecksher
                   1100 North Market Street
                   Suite 1200
                   Wilmington, DE 19801-1246
                   (302) 657-4942


BOWATER INC.: Dim Paper Market Prompts Downgrade from Moody's
-------------------------------------------------------------
Moody's Investors Service sees a negative outlook for Bowater,
Inc. after it announced recently its intention to acquire
Alliance Forest Products, Inc.

The bond rating agency says the acquisition, which will cost the
company $770 million, is bound to increase Bowater's debt to
approximately $530 million.

Moody's believes that the company's market and core business
(pulp and lumber) has been generally on the downward path over
the last six to nine months.

The rating agency says there is high probability that Bowater's
cash generation to pay its near-term debts will seriously be
imperiled this year, particularly if the U.S. economy slips into
recession.

As a result, the bond rating agency is projecting this early
that the current rating of the company may be up for
downgrading.

Such measure, however, can be avoided if the company "refrains
additional acquisitions over the near term, and utilizes free
cash flow for debt reductions until financial flexibility has
improved," Moody's said.

Meanwhile, Moody's confirmed the following bond ratings of the
company:

Bowater Incorporated:

      -- Senior unsecured notes, debentures, pollution control
         and industrial revenue bonds; Baa3

      -- Senior unsecured bank debt; Baa3

Bowater Pulp and Paper Canada:

      -- Senior unsecured notes; Ba1

      -- Senior unsecured shelf registration; (P)Ba1

Bowater Incorporated, headquartered in Greenville, S.C. is a
global leader in newsprint, with additional operations in coated
and uncoated groundwood papers, bleached kraft pulp, and lumber
products.


BRIDGE INFORMATION: Provides Streaming Data For E*TRADE Japan
-------------------------------------------------------------
Bridge Information Systems, Inc. (BRIDGE(R)), one of the world's
leading providers of financial information services, announced a
new partnership with E*TRADE Japan to launch Power E*TRADE, an
innovative program designed to target the needs of active online
investors in Japan.

Leveraging BRIDGE's premium content and world class technology,
E*TRADE Japan will offer the following online services to its
investors:

      -- Real-time streaming prices for Japanese & US equities
         with real time data for options and foreign exchange
         markets.

      -- Up-to-the-second information on all trades placed on the
         market including last sales, time and size data.

      -- Fundamental financial data and ratios on shares for the
         last 5 years. Select from 50 fundamental and technical
         studies.

      -- Advanced technical charts including intra-day, daily,
         weekly for up to 20 years.

      -- Portfolios of any combination of Japanese equities,
         indices, FX, and options including the ability to trace
         profit/loss in real time and manage up to 20
         personalized portfolios.

      -- Real time scrolling Japanese language news from
         BridgeNews.

"Bridge Internet Solutions is key to our Power E*TRADE
initiative," said Taro Izuchi, President, E*TRADE Japan. "With
the ability to view comprehensive data, news, charting,
analytics and research in real-time, our customers in Japan may
now make highly relevant investment decisions, just like the
professionals."

"The quality and accessibility of market information are two
critical factors investors use to drive crucial investment
decisions in today's financial environment," added Fumio Matsuo,
President of Bridge Japan. "We are very pleased to partner with
E*TRADE to provide its investors in Japan with streaming quotes,
news and trade information."

The partnership with E*TRADE Japan reinforces BRIDGE's strategic
relationship with E*TRADE following the recent launch of Power
E*TRADE in Canada, Norway, Sweden and the UK while strengthening
the existing arrangement in the United States in which BRIDGE
powers E*TRADE Group, Inc.'s The Pulse premium service. These
arrangements enable E*TRADE, E*TRADE Canada, E*TRADE Norway,
E*TRADE UK, E*TRADE Sweden and now E*TRADE Japan to provide a
dynamic, real-time market command center with the most
comprehensive, critical information available today, powered
by BRIDGE.

Bridge Internet Solutions is a world leader in financial
website architecture. It currently provides Internet solutions
to over 100 major clients worldwide including the top five
online brokerages in North America. The company develops, hosts,
and designs Internet solutions, in addition to supplying online
content to blue chip investment and financial institutions
globally. Bridge Internet Solutions include the delivery and
display of financial data and services over the Internet, the
creation and maintenance of information, Web Design, Web Hosting
and Network services. Local language capabilities and innovative
investment tools such as research-on-demand are part of the
BRIDGE solution. (Bridge Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


BURNHAM PACIFIC: Sells 19 Properties To Weingarten Realty
---------------------------------------------------------
Burnham Pacific Properties, Inc. (NYSE: BPP) has closed on the
sale of 19 properties to Weingarten Realty Investors for
approximately $145.5 million in cash and the assumption of
mortgage debt of approximately $143 million. The 19 properties,
which combined total approximately 2.5 million square feet, are
all grocery-anchored shopping centers located in California. The
Company used approximately $126 million to redeem all of the
Company's preferred equity and approximately $15 million to
reduce outstanding indebtedness under the Company's line of
credit.

Scott C. Verges, Burnham's President and Chief Executive
Officer, stated, "The sale of this portfolio demonstrates our
ability to execute our plan of liquidation through portfolio
sales, which are often more cost effective than individual asset
sales. Since we first announced our intention to adopt a plan of
liquidation for the Company, we have sold our interests in 28
properties for a total of approximately $498 million. We remain
focused on an orderly liquidation of the remaining properties in
the Company's portfolio by pursuing transactions that are
expected to result in favorable net proceeds to the Company."

Burnham Pacific Properties, Inc. is a real estate investment
trust (REIT) that focuses on retail real estate. More
information on Burnham may be obtained by visiting the Company's
web site at www.burnhampacific.com.


CASCADE PACIFIC: Door & Moldings Maker Files for Bankruptcy
-----------------------------------------------------------
Cascade Pacific, the manufacturing company that makes doors and
moldings, treats wood with fire retardant and does custom
cutting and kiln drying, earlier this week sought chapter 11
bankruptcy protection, according to The Register-Guard. The
Eugene, Ore.-based company listed unsecured debt of $2.1 million
and total debt of between $1 million and $10 million. The
company said its assets are valued at between $1 million and $10
million. A Cascade Pacific employee said some portions of the
plant in Springfield, Ore., were closed a week ago. A laid-off
employee said the U.S. Bankruptcy Court in Eugene froze Cascade
Pacific's bank accounts, so the company hasn't been able to
issue checks for wages. Cascade Pacific had $16.7 million in
sales last year. (ABI World, April 3, 2001)


COMDISCO INC.: Fitch Places Debt Ratings On Credit Watch
--------------------------------------------------------
Fitch has placed Comdisco, Inc.'s `BBB' senior debt and `F2'
commercial paper ratings on Rating Watch Negative. Approximately
$4.3 billion of securities are affected by this action.

Fitch's rating action follows Comdisco's announcement that it
has retained Goldman, Sachs & Co. and McKinsey & Company, Inc.
as advisors in exploring strategic alternatives, including an
outright sale of the company.

In conjunction with this announcement, the company drew down
nearly $880 million of committed loan facilities, largely to
retire approximately $825 million of commercial paper
obligations coming due over the near-term.

In Fitch's view, these actions have placed significant pressure
on the company's `new management team' to execute on strategic
alternatives as well as constrained Comdisco's financial
flexibility over the longer-term.

The resolution of the Rating Watch status will be based on
Fitch's assessment of Comdisco's proposed strategic alternatives
as well as their ultimate impact on the company's liquidity and
operating profile as well as 'franchise value' going forward.


COMDISCO INC.: Moody's Cuts Senior Debt Rating To Ba2 From Baa2
---------------------------------------------------------------
Moody's believes a recent announcement made by Comdisco, Inc.
inadvertently bared its financial difficulties and challenges in
executing its business plan.

That announcement gave enough hint to merit a downgrade by
Moody's Investors Service on the company's senior debt rating,
which now stands at Ba2 from Baa2. The company's short-term debt
is now rated Not-Prime from Prime-2. These ratings are under
review for further downgrades.

Moody's believes the company has a sharply reduced financial
flexibility as evidenced by its announcement that it has hired
advisors to assist it in exploring strategic alternatives. Also,
the firm admitted in the same bulletin that it has now
substantially drawn down its committed bank facilities.

"We believe this announcement reflects increasing challenges the
company faces in executing its business plan, particularly in
its venture leasing portfolio," Moody's said.

According to Moody's, a successful strategic transition under
present market conditions would be very challenging, hence
further downgrades on the long-term ratings of the company are
being contemplated.

Moody's is scheduled to further review Comdisco, focusing on its
ability to execute timely strategic plans and the company's
current ability to meet its obligation given its financial
conditions.

Below is the complete list of the downgraded ratings:

Comdisco, Inc.:

      -- Short Term to Not-Prime from Prime-2
      -- Long Term Issuer to Ba2 from Baa2
      -- Senior to Ba2 from Baa2

Comdisco Finance (Nederland) B.V. - guaranteed by Comdisco,
Inc.:

      -- Short Term to Not-Prime from Prime-2
      -- Senior to Ba2 from Baa2

Comdisco, Inc., headquartered in Rosemont, Illinois, is a
technology services provider and technology equipment lessor.


ESPANOL.COM: Taps Bid4Assets for On-Line Asset Auction
------------------------------------------------------
Bid4Assets, a leading asset disposition and advisory services
company, announced that it will auction assets from Internet
portal Espanol.com. The sale will include 88 Spanish language
domain names. The online auction will run Apr. 10 - 24 on
www.bid4assets.com.

Wakefield, Mass.-based Espanol.com was founded in 1999 as an
Internet portal that targeted Web savvy, Spanish-speaking
people. The company ceased operations last summer after it was
unable to obtain additional funding. In addition to Espanol.com,
the sale includes the domain names Portugues.com,
EspanolLibros.com, Espanolvideos.com and many others.

Espanol.com filed for Chapter 7 bankruptcy protection September
22, 2000. Case no. 00-16356-CJK is pending in the United States
Bankruptcy Court for the District of Massachusetts.

Interested buyers can contact Bid4Assets with any questions by
sending an email to service@bid4assets.com.

"Spanish-speaking people are among the fastest growing ethnic
groups in the United States. This is a great opportunity for
entrepreneurs who want to target that exploding market online,"
said Bid4Assets CEO Tom Kohn.


FINOVA GROUP: Asks To Retain & Pay Ordinary Course Professionals
----------------------------------------------------------------
Prior to the petition date, The FINOVA Group, Inc. employed
hundreds of professionals in the ordinary course of business.
These services provided include documentation of financing
transactions, asset acquisition activities, construction
monitoring, servicing of loans and leases and preservation of
collateral and owned assets. The professionals will be required
throughout the Chapter 11 proceedings. The amount of fees and
expenses incurred by such professionals represents only a small
fraction of the value of the estates, while their work, even
though ordinary course, is directly related to the preservation
of such value. Pursuant to 11 U.S.C. Secs. 105(a) and 327,
FINOVA seeks authorization to retain and compensate ordinary
course professionals without the necessity of formal retention
motions and fee applications.

It would severely hinder the administration of the estate if
FINOVA were required to submit applications, affidavits and
retentions for each ordinary course professional, wait until the
order is approved and then, withhold payment until the
professionals comply with reimbursement procedures applicable to
Chapter 11 professionals. There is a risk that some
professionals would suspend services under such conditions. In
addition, the process would burden the related offices of the
bankruptcy establishment that FINOVA must answer to.

Mark D. Collins Esq., at Richards, Layton & Finger, said that in
many instances it is not clear who qualifies as a professional."
It uses a host of service providers that perform jobs including
environmental assessment, title, escrow, survey, architecture,
auditors, translators, IT service providers, sales and leasing
agents, appraisers, public relations firms and the like. The
sheer number of service providers presents problems. FINOVA
asked that if it is unclear whether any is considered an
ordinary course professional, they be retained and paid in the
ordinary course of business.

FINOVA provided the Court with lists of those Ordinary Course
Professionals likely to bill in excess of $10,000 per month:

Ordinary Course Professionals billing up to $20,000 per month:

      * Brent I Kugman & Associates;
      * Mesirov, Gelman, Jaffe, Cramer & Jameson;
      * Paul, Hastings, Janofsky & Walker;
      * William C. Boston & Associates

Ordinary Course Professionals billing up to $50,000 per month:

      * Abernathy MacGregor Group;
      * Aikins, Macaulay & Thorvaldson;
      * Aircraft Information Services;
      * Aircraft Systems Inc.;
      * Akin, Gump, Strauss, Hauer & Feld;
      * Aldav Engineering;
      * Altheimer & Gray;
      * Aviation Specialists Group;
      * Baer, Marks & Upham;
      * Boult, Cummings, Conners & Perry;
      * CFC;
      * Eagle One;
      * Enviro Rail Inc.;
      * Executive Aircraft Services;
      * FAA;
      * Fennemoer Craig;
      * Fraser, Milner;
      * Gruen, Charles;
      * Henry Knight Aviation Consultants;
      * Hewitt Associates;
      * Hughes & Luce;
      * Julie Heller;
      * Katten, Muchin & Zavis;
      * Kelley, Drye & Warren;
      * Latham & Watkins;
      * LeClair, Ryan, Epps & Framme;
      * LLI Technologies;
      * Macafee & Taft;
      * PK Trading Ltd;
      * Quarles, Brady, Sueich & Lang;
      * Ruskin, Evans, Moscou & Farhnichek;
      * Secured Capital Corporation;
      * Severson & Warren;
      * Sweeney Maintenance Consulting;
      * Technical Consultants Inc.;
      * Western Air Crews Int'l;

Ordinary Course Professionals billing up to $75,000 per month:

      * Deconcini, McDonald & Yetwin;
      * Evans, Zable & Bishop;
      * Garrut Aviation Division;
      * Gammuge & Burnham;
      * Katten, Muchin & Zavis;
      * Piper, Marbury, Rudnick & Wolfe;
      * Pro Tech Advisors;
      * Severson & Werson;
      * Todd & Levi;
      * Winick & Rich.

FINOVA recognizes that the requested limitation amounts exceed
those approved in other cases, but states that this case is
unique, in that it is one of the largest filed in the history of
the United States. However, such procedures are not unusual
given the size of FINOVA's estates and the magnitude of its
business. Similar relief has been granted in other large
bankruptcy cases around the country. (Finova Bankruptcy News,
Issue No. 3; Bankruptcy Creditors' Service, Inc., 609/392-0900)


GARDEN.COM: Plan of Liquidation Delivering $0.20 to Stockholders
----------------------------------------------------------------
In accordance with its previously announced Plan of Liquidation
and Dissolution, Garden.com (OTC Bulletin Board: GDENZ)
announced its intent to make a partial distribution of its
assets to its stockholders. The Company anticipates making the
distribution on or about June 15, 2001.

Stockholders of record of the common stock as of the close of
business on February 2, 2001 will be entitled to receive the
liquidating distribution. Having succeeded in selling
significant portions of its assets to various third parties and
paying off the majority of its known liabilities, the Company
announced its intent to pay $0.20 per outstanding share held.

The aggregate distribution of $3,547,969.00 represents the
Company's current cash available less reserves for estimated
taxes, outstanding liabilities, contingencies, professional
services, independent contractors and other dissolution related
expenses. The amount to be distributed is within the range
previously estimated by Garden.com of between $0.10 and $0.25
per share.

The amount to be distributed does not include proceeds from a
sale of the Company's Green Cheetah subsidiary, which develops
software designed to enhance database performance, or its
Trellis virtual supply chain software. The Company continues to
negotiate with various third parties concerning the sale of
these assets. While the Company hopes to successfully complete
the possible sale of these assets, no assurance can be given
with respect to the likelihood of a sale of either Green Cheetah
or Trellis or the ultimate amount of proceeds to be received
from such sales. The amount of any subsequent distribution will
depend on various factors, including, without limitation, the
amount of proceeds received, if any, from the sale of its
remaining assets, the satisfaction of remaining liabilities and
the adequacy of the reserves noted above.


GENESEE HOSPITAL: Moody's Cuts Bond Rating Drops to Junk Level
--------------------------------------------------------------
A recent announcement of an impending shutdown of the hospital
caused the downgrading by Moody's of Genesee Hospital's bond
rating.

The bond rating now stands at Caa2 from B3, affecting the $15.3
million Series 1991A tax-exempt bonds and the $17.2 million
Series 1991B taxable bonds. These bonds, however, are secured by
a mortgage on a parking garage and a medical office building.

According to Moody's, the rating measure was triggered by an
announcement made recently by parent company ViaHealth that the
hospital will be closed within 90 days. ViaHealth had said that
the shutdown is due to the escalating operating losses of the
hospital.

Except for 1997 when it had a breakeven operation, the hospital
has since recorded substantial losses -- $15 million (1998), $6
million (1999), $18.5 million (2000).

In addition, the hospital also reported a non-recurring loss of
about $26 million last year related to restructuring and prior
period adjustments. Moody's estimates the hospital's fund
balance to be negative $6 million.

With parent company ViaHealth holding no significant assets,
support from it is not forthcoming. Moody's said in the absence
of such support, "it appears that Genesee bondholders will
recover considerably less than their outstanding principal."


GENESIS HEALTH: Exclusive Period Extended To June 21
----------------------------------------------------
Genesis Health Ventures, Inc. & The Multicare Companies, Inc.
sought and obtained the Court's approval for a further extension
of the period during which they have the exclusive right to file
a chapter 11 plan of reorganization through and including June
21, 2001 and a concomitant extension of the Exclusive
Solicitation Period within which they can solicit acceptances of
the plan filed through and including August 20, 2001, pursuant
to section 1121(d) of the Bankruptcy Code, without prejudice to
their right to seek additional extensions.

In their previous motion, the GHV Debtors requested for an
extension of the Exclusive Filing Period and the Exclusive
Solicitation Period through and including March 23, 2001 and May
22, 2001 respectively. That motion has been granted. The
Multicare Debtors previously sought and obtained an extension
of their Exclusive Filing Period and Exclusive Solicitation
Period to March 26, 2001 and May 25, 2001, respectively.

The Debtors submitted that they meet the requirement for
extension because:

      (a) their cases are large and complex;

      (b) they have made substantial progress towards
          rehabilitation and development of a consensual plan;

      (c) they are not seeking to use exclusivity to pressure
          creditors into accepting a plan they find unacceptable;

      (d) they are making required postpetition payments and
          effectively managing their businesses;

The Debtors recapitulated that they have made considerable
progress in, inter alia:

      (1) filing their schedules of assets and liabilities,
          schedules of executory contracts and unexpired leases,
          and statements of financial affairs;

      (2) establishing a bar date for the filing of claims
          against the Debtors as well as reviewing and analyzing
          the over 5,600 proofs of claim filed by creditors;

      (3) compromising and settling claims with ElderTrust, a
          real estate investment trust which owns a substantial
          portion of the Debtors' leased eldercare centers;

      (4) compromising and settling claims with CareFirst and its
          affiliates, one of the largest health insurance payers
          in the Debtors' "Chesapeake Region" market, and
          restructuring a long term contract among the Parties;
          (The Debtors have filed the motion and related
          documents with the Court under seal and the Court has
          entered an order granting the motion under seal.)

      (5) formulating a five-year projection of operations which
          forms the basis of the Debtors' plan of reorganization;

      (6) commencing negotiations with the steering committee of
          the prepetition institutional lenders and postpetition
          lenders as well as the Creditors' Committee;

      (7) analyzing their real estate portfolio secured by
          mortgage debt and commencing negotiations with the
          secured lenders;

      (8) attempting to reconcile and settle other major claims
          against their estates; and

      (9) analyzing their leased portfolio, executory contracts,
          and asset structure with the result of the assumption
          of some leases and rejection of some others.

     (10) disposing nonprofitable, noncore assets which have been
          a financial burden on the Debtors' estates.

The Debtors asserted that they have taken numerous affirmative
steps towards a successful rehabilitation of their businesses
since the Commencement Date. The Debtors believe that they have
more than sufficient resources to meet all required postpetition
payment obligations and have been doing so. No outstanding or
overdue borrowings under their postpetition financing
arrangements as at the beginning of March, 2001, the Debtors
advised the Court.

The Debtors told the Court that they are now in the process of
negotiating with numerous parties concerning lease assumptions
and rejections, mortgage renegotiations, and other matters that
will have a significant impact on any plan of reorganization.

Overall, the Debtors believe they have made substantial progress
in the prosecution of their chapter 11 cases. They expect that
the current proposals being negotiated by the various
constituencies will form the basis of a consensual plan of
reorganization. A further extension of exclusivity, they
believe, will enable them to harmonize the diverse and competing
interests that exist and seek to resolve any conflict in a
reasoned and balanced manner. (Genesis/Multicare Bankruptcy
News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 609/392-
0900)


GLOBALSTAR: May File For Bankruptcy Protection
----------------------------------------------
Mobile satellite telephone service provider Globalstar
Telecommunications Ltd. said it might file for bankruptcy even
though it is currently developing a restructuring plan,
according to Reuters. In its annual report filed with the
Securities and Exchange Commission, the company noted that it
may not be able to execute a restructuring plan if it conflicts
with certain restrictions under existing agreements or if an
agreement cannot be reached with its creditors. The company also
said that it recorded a $2.9 billion non-cash charge in the
fourth quarter. (ABI World, April 3, 2001)


GOLF TRUST: Liquidating REIT Approves Q1 Dividend
-------------------------------------------------
Golf Trust of America, Inc. (AMEX:GTA), said its Board approved
its quarterly dividend of $0.25 per common share, payable on
April 30, 2001 to shareholders of record on April 16, 2001.

W. Bradley Blair, II, president and chief executive officer,
stated, "Our first quarter dividend reflects the board of
directors' evaluation of several factors, including, the
Company's recent announcement that its plan of liquidation will
be presented for stockholder's approval at a special meeting to
be held on May 22, 2001, and the continued focus on the
Company's financial condition and compliance with REIT
requirements."

The special meeting of stockholders will be held at Charleston
Place Hotel, 205 Meeting Street, Charleston, South Carolina.

Golf Trust of America, Inc. is a real estate investment trust
involved in the ownership of high-quality golf courses in the
United States. The Company currently owns an interest in 42
(eighteen-hole equivalent) golf courses.


HAMPTON INDUSTRIES: Asking Lenders To Extend Forbearance Period
---------------------------------------------------------------
Hampton Industries, Inc. (Amex: HAI) that it is in default under
its senior credit facility and that it is operating under a
Forbearance Agreement with its senior creditors which expires on
April 13, 2001. Hampton is currently negotiating with its senior
creditors to extend such forbearance period beyond April 13,
2001.

Hampton also said that its board of directors is currently
considering various strategic alternatives, including a possible
sale of all or some portion of its assets, and has recently
hired Phoenix Management Services, Inc. to assist in this
process.

Hampton also reported that it filed a Notification of Late
Filing on Form 12b-25 with the Securities and Exchange
Commission on April 2, 2001 in which Hampton stated that it
anticipated that its pre-tax loss for the fiscal year ended
December 30, 2000 would be a minimum of $29,000,000, as compared
to a pre-tax loss in the prior year of $7,200,000. Hampton also
stated on such Form that it had not yet obtained all information
required to complete its financial statements and that it was
still gathering such information and preparing additional
analysis, including its analysis of asset impairment issues.

Until such review has been completed, Hampton's actual results
and financial condition cannot be determined with certainty and
could differ materially from that stated above. Until such
review has been completed, Hampton said it would have no further
comment on this matter.

Hampton further reported that it has entered into a mutual
agreement with Nautica Enterprises, Inc. (Nasdaq: NAUT) to
terminate Hampton's license from Nautica to market childrenswear
under the Nautica label, effective April 2, 2001. Under the
terms of the Agreement, Nautica will also purchase inventory and
certain other assets related to Hampton's Nautica business.
Additionally, Nautica has agreed to forgive specific royalties
and other expenses associated with the terminated license. To
facilitate a seamless transition, Hampton will continue to
perform distribution and logistics functions for Nautica for a
period of time.


HARNISCHFEGER: Moves To Estimate USWA Claim At Zero Dollars
-----------------------------------------------------------
United Steelworkers of America (USWA) filed Claim No. 12011
against Harnischfeger Corporation (P&H) for grievances filed
under the collective agreement between P&H and the USWA. The
Claim began as two grievances filed pursuant to a collective
bargaining agreement on April 30, 1998.

The grievances arise out of the 1998 sale of P&H's material
handling business to Morris. On January 28, 1998, P&H and
certain of its affiliates reached an agreement with MHE
Investments, Inc., a newly-formed affiliate of Chartwell
Investments Inc., for the sale of approximately 80 percent
common ownership interest in the MHE Business. Pursuant to this
agreement, the P&H Parties effected a number of transactions
that resulted in MMH Holdings, Inc., a pre-existing company
within the MHE Business, acquiring, through its wholly-owned
subsidiary, Morris, the equity interests of all of the P&H
operating entities engaged in the MHE Business that were
previously owned by the P&H Parties. This was accomplished by a
sale of stock so stock ownership changed, but the ongoing
business did not. The Transactions were accounted for as a
recapitalization for financial reporting purposes.

This Motion solely relates to grievance #s98-37 and 98-36. The
employees represented by USWA and involved in the grievances
designated as #98-36 and #98-37 were employed by a subsidiary
corporation affiliated with P&H.

The USWA alleged that the Transactions had to constitute either
layoffs or terminations vis-a-vis P&H irrespective of the fact
that the employees continued to work without interruption as
employees of the P&H subsidiary that was the subject of stock
sale. Under the collective bargaining agreement, in certain
circumstances, a true layoff of employees would result in two
additional years of pension service credits and a true
termination would result in severance pay.

The USWA asserted that union employees of P&H are entitled to
either $2.2 million in severance pay or $1.6 million for two
additional years of pension credits.

On May 19, 1998, P&H denied both grievances in writing.

The grievances went to a "second stage grievance meeting" on May
21, 1998, at which time P&H again denied the grievances. During
collective bargaining later in 1998, the parties sought to
settle the claim voluntarily, but that attempt was not
successful.

The union, the Debtors told Judge Walsh, has never taken these
grievances to an arbitration hearing nor commenced any action to
compel arbitration pursuant to the collective bargaining
agreement. P&H maintains it has neither the obligation nor the
duty to arbitrate the grievances, because it was not the
"employer," as that term is defined for labor law purposes, at
the time of the Transactions.

The Debtors indicated that before the hearing on this Motion,
they will submit affidavit(s) in support of the statemen that no
union employees, however, were laid off or terminated in
connection with the Transactions. Instead, the Debtors asserted,
Morris adopted the collective bargaining agreement and continued
the employment of the employees covered by the collective
bargaining agreement. There was a continuity of employment
without interruption and the employees also continued to enjoy
all rights of seniority within the employing unit. No employee
experienced any reduction of wage rate or benefits as a result
of the Transactions.

Thus, the Claim has no merit, the Debtors asserted.

                Basis for Reserving Zero for the Claim

P&H requested that the Court authorize P&H to reserve "zero" for
the Claim.

In this respect, the Debtors drew Judge Walsh's attention to
Section 502(c)(l) of the Bankruptcy Code which provides that any
contingent or unliquidated claim shall be estimated if the
liquidation of such claim would unduly delay the administration
of the case.

First, the Debtors asserted that the Claim is contingent and
unliquidated because it is not subject to "ready determination"
or "capable of ascertainment by reference to an agreement or by
simple computation."

Second, the Debtors asserted that although the term "undue
delay" is not defined by the Bankruptcy Code, the liquidation of
the Claim would unduly delay administration of the case because
the Claim is for approximately $2.2 million if the Transactions
caused terminations or $l.6 million if they caused layoffs - a
substantial amount. An asserted claim of this size, the Debtors
observe, will delay administration by requiring an establishment
and handling of large reserves under the Section XI(G) of the
Plan, no matter how meritless the claim is.

The Debtors then reiterated that the Claim is meritless because
the union employees have not been terminated, nor were they laid
off by P&H.

Therefore, P&H requested that the Claim No. 12011 be reserved at
zero.

The Debtors added that the Claim, however, can be resolved in
another forum if the grievances are arbitrable. The USWA could
seek an order requiring arbitration because such an order to
arbitrate is properly within the jurisdiction of the Federal
District Court. If the other forum determines that the Claim has
merit, then the Claim will be an allowed Claim under the Plan.
The Bankruptcy Court, however, does not need to get involved in
the dispute. To reserve any amount for the Claim would unjustly
harm P&H's other creditors because the Claim has no merit, the
Debtors asserted.

By this Motion, P&H requested that the Court approve P&H
reserving "zero" for Claim No. 12011 filed by USWA.
(Harnischfeger Bankruptcy News, Issue No. 39; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


HIGHLAND INSURANCE: S&P Lowers Financial Strength Rating to BBpi
----------------------------------------------------------------
Standard & Poor's lowered its financial strength ratings on
Highlands Insurance Co., Highlands Underwriters Insurance Co.,
Highlands Casualty Co., Aberdeen Insurance Co., Highlands Lloyds
and Northwestern National Casualty Co., all members of the
Highlands Insurance Group, to double-'Bpi' from triple-'Bpi'.

The rating action reflects uncertainty regarding the adequacy of
Highlands Insurance Group's loss reserves, especially those on
the group's commercial multiple peril and workers' compensation
business.

This uncertainty, though not reflected in the third-quarter
capitalization and liquidity, will further pressure the ratings
into weaker categories depending on the severity of reserve
developments in the near term.

As of third-quarter 2000, Highlands Insurance Co.'s estimated
capitalization and liquidity fell below the level considered
secure.

This drop in liquidity and capitalization can be attributed
partially to a $12 million dividend to the holding company,
Highlands Insurance Group, and also to the growth in liabilities
proportionally outpacing the growth in assets.

Uncertainty regarding the adequacy of Highlands Insurance
Group's loss reserves will further weaken the companies' ability
to service debt at the holding company level, which currently
makes up 38% of total equity.

Ratings with a 'pi' subscript are insurer financial strength
ratings based on an analysis of an insurer's published financial
information and additional information in the public domain.
These ratings are reviewed annually based on a new year's
financial statements, but may be reviewed on an interim basis if
a major event that may affect the insurer's financial security
occurs.


IMPERIAL SUGAR: Pacific Sugar Asks Court To Enforce Settlement
--------------------------------------------------------------
Pacific Northwest Sugar Company, LLC, asked Judge Robinson to
approve and enforce its settlement with Imperial Sugar Company
and to direct that the escrowed settlement documents, being held
in escrow by the Debtors' counsel, be released.

John D. Demmy, at Stevens & Lee P.C. in Delaware, contends that
Pacific Sugar and CoBank ACB, by its predecessor, St. Paul Bank
for Cooperatives, are parties to a (i) Financing Agreement for
Permanent Project Funding, and (ii) Financing Agreement for
Project Development Loan, pursuant to which loans were made to
Pacific Sugar. CoBank and Pacific Sugar also entered into Loan
Agreements for a United States Department of Agriculture
Guaranteed Loan, Seasonal Loan and Restructuring of Existing
Loans, under which CoBank agreed to make loans to Pacific Sugar
for the purpose of financing Pacific Sugar's operation of a
facility for sugar been processing.

Pacific Sugar, Mr. Demmy admitted, is in default of its
approximately $160,000,000 obligations under the CoBank
Financing and CoBank loan agreements, which obligations are
secured by liens against all of Pacific Sugar's assets. Pacific
Sugar estimates that its assets are worth approximately
$10,000,000.

Mr. Demmy revealed that Pacific Sugar and the Debtor Imperial
Holly Corp. entered into a Loan Security Agreement which
provided, among other things, for Imperial to make a loan to
Pacific Sugar to assist in the financing of the construction of
a facility in Moses Lake, Washington, as a sugar beet processing
factory. In accordance with the Loan and Security Agreement,
Pacific Sugar executed and delivered a promissory note to
Imperial in the face amount of $5,600,000. As of January 8,
2001, the principal balance of the obligation under the Note
was approximately $5,700,000. To secure payment of the
promissory note, Pacific Sugar:

      (a) Executed and delivered to Imperial a Deed of Trust and
Security Agreement with Assignment of Rents which was recorded
with the Grant County, Washington, Auditor; and

      (b) Granted Imperial liens against Pacific Sugar's personal
property and fixtures at the processing facility, which liens
are subordinate to those of CoBank by an inter-creditor
agreement between Imperial and CoBank.

Pacific Sugar sells sugar to Imperial on a "running" or "open"
account basis. As of January 8, 2001, Imperial was indebted to
Pacific Sugar in the amount of $360,500.60 for sugar delivered
by Pacific Sugar. Prior to the bankruptcy filing, Pacific Sugar
and Imperial had entered into the settlement agreement to
resolve their various and respective rights and obligations
under the Loan Agreement, the Note and the Deed of Trust and the
receivable due from Imperial, providing that:

      (a) Imperial agreed to cancel the Note and write off the
indebtedness evidenced by the Note;

      (b) Imperial agreed to release all liens securing the
obligations evidenced by the Note; and

      (c) Pacific Sugar would cancel and write off the $360,500
receivable due from Imperial.

Pacific Sugar's counsel wrote to Mr. William Schwer, Imperial's
general counsel, to confirm the terms of the settlement
agreement and to forward the instruments necessary to document
the agreement. Mr. Schwer wrote to counsel in Washington, with a
copy to Pacific Sugar's counsel, to confirm the terms of the
settlement agreement and to request that counsel hold the
settlement documents, which had been executed by Imperial, in
escrow until the conditions to the settlement agreement had been
satisfied.

The settlement agreement required the consent of CoBank and the
Department of Agriculture to the transactions contemplated by
Pacific Sugar and Imperial. After the exchange of correspondence
between Pacific Sugar's counsel and Imperial's general counsel,
nothing more remained for Imperial to do to perfect the
settlement agreement. Mr. Demmy submitted that the settlement
agreement has been finalized, the settlement documents are
executed, and are being held in escrow, and no other action or
consent by Imperial is required under the settlement agreement.
The consent of CoBank and the Department of Agriculture having
been obtained, the settlement agreement can now proceed to
consummation.

Mr. Demmy believes that the settlement agreement should be
approved and enforced. The settlement agreement, which was
agreed to by Imperial prior to the commencement of these
bankruptcy cases, is beneficial to the Debtors and is in the
best interests of the Debtors' estates. In exchange for the
release of its $360,000 account payable to Pacific Sugar, a
claim which under the Debtors' proposed reorganization plan is
to be paid in full, all that Imperial has agreed to do and which
it already has evidenced by its execution and depositing into
escrow of the settlement documents, is to cancel an indebtedness
that is inherently uncollectable and release liens that are
worthless. (Imperial Sugar Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


INTEGRATED HEALTH: Ventas Seeks Rent Payment Of Birchwood Center
----------------------------------------------------------------
Ventas, Inc. and its affiliate, Ventas Realty, Limited
Partnership (VRLP), as lessor, alleged that Integrated Health
Services, Inc. assumed a "non-payment and non-responsive
approach" with respect to the Birchwood Lease, related to a 239-
bed facility known as the Birchwood Care Center, located in
Maine, Michigan.

Accordingly, Ventas asked the Court to compel the Debtors to
comply with postpetition obligations under the Birchwood Lease
and section 365(d)(3) of the Bankruptcy Code; and to allow the
Ventas Entities an administrative rent claim for rent and other
charges due and payable under the Birchwood Lease in the total
amount of $249,137.90.

           Parties Related to the Birchwood Lease

The original lease was entered by and between HH Holding Co., as
lessor, and Health Enterprises of Michigan (HEM), as lessee (as
amended, modified and assigned. Subsequently, First Healthcare
Corporation (FHC) became successor- in-interest to HH Holding
and Horizon Healthcare Corporation succeeded HEM by assignment.
With the consent of FHC, Horizon subsequently assigned the Lease
to IHS Acquisition No. 151, Inc. pursuant to an Agreement and
Consent to Assignment of Lease among FHC, Horizon, IHS and IHS
151. Under the Assignment Agreement, IHS agreed to guarantee all
of IHS 151's obligations under the Birchwood Lease.

                     About Ventas

The Ventas Entities are the successor-in-interest to FHC. Ventas
submitted that it is a Delaware corporation that has qualified
as a real estate investment trust and conducts substantially all
of its business through VRLP. The Ventas Entities became the
successor in interest to FHC pursuant to the spin-off
transaction involving Vencor, Inc. (Debtor-in-Possession in
another jointly administered case 99-3199 pending before the
same Court). Ventas asserted that one of the Ventas Entities
undisputedly holds title to the property leased by the Debtors,
but at this time it is not entirely clear which Ventas Entity is
in direct contractual privity with the Debtors. Records relating
to the property and the Birchwood Lease under which the Debtors
occupy the property, Ventas said, are in the custody of Vencor.

                  Ventas' Allegations

Ventas told the Court that the term of the Birchwood Lease is
twenty years. Rent on the Birchwood Lease is currently
$36,827.58 per month falling due is due on the first day of each
calendar month. In addition, the Lease requires IHS 151 to pay
all Impositions (i.e., all taxes, assessments, ground rents,
water and sewer rents of every character in respect of the
Birchwood Lease and/or the Rent). IHS 151 is required to pay
$13,000 per month for the Impositions. If the Rent or
Impositions are not paid within 10 days of the due date, the
failure to pay constitutes an Event of Default under the
Birchwood Lease.

As previously reported, on July 18, 2000, the Debtors filed
their Motion For An Order Authorizing The Rejection Of Eight
Unexpired Leases Of Non- Residential Real Property Relating To
Certain Skilled Nursing Facilities and the Birchwood Lease was
included as one of the eight leases to be rejected. By Order,
dated August 10,2000, the hearing on the Birchwood Rejection
Motion was adjourned to September 22, 2000. Thereafter, the
Debtors and Ventas Entities agreed to adjourn, sine die, the
Birchwood Rejection Motion. On February 2,2001, the Debtors
filed a Notice Of Hearing whereby the Debtors set February
22,2001 as the hearing date for the Birchwood Rejection Motion.
The Ventas Entities were later advised that the hearing date for
the Birchwood Rejection Motion had been adjourned to March 6,
2001. At the request of the Debtors, the Ventas Entities, by a
letter from counsel dated February 26, 2001, consented to the
adjournment of the rejection motion until March 22, 2001.

Following the adjournment of the Birchwood Rejection Motion, the
Debtors paid Rent and Impositions for the month of October 2000.
However, the Debtors did not pay Rent or Impositions for the
month of November and December 2000. Ventas complains to the
Court that their efforts to determine why Rent and Imposition
payments had not been made and when they might resume were
unavailing. Ventas further tells the Court that, on or about
December 11, 2000, an employee of the Debtors told the Ventas
Entities that the Debtors had decided to stop paying rent under
the Birchwood Facility.

Ventas informed the Court that the Debtors continue to retain
possession of the Birchwood Facility. Ventas asserted that the
Debtors are obligated to perform the Birchwood Lease's
obligations until the Court orders the rejection of the
Birchwood Lease. Rent and Impositions for the months of November
and December, 2000 and January, February and March 2001 in the
aggregate amount of $249,137.90 are due and owing under the
Birchwood Leases, Ventas alleged. (Integrated Health Bankruptcy
News, Issue No. 15; Bankruptcy Creditors' Service, Inc.,
609/392-0900)


KEVCO, INC.: Selling Duo-Form Division For $5.5 Million
-------------------------------------------------------
Kevco, Inc. said that in connection with the Company's plans to
sell certain operating units, it has reached an agreement in
principle to sell its Duo-Form Division to Duo-Form Acquisition,
Inc., owned in part and managed by senior management of the Duo-
Form Division, for an aggregate purchase price of $5.5 million.

The Company has filed motions with the United States Bankruptcy
Court in Fort Worth seeking approval for the sale as well as
associated bidding procedures. The Company will seek Court
consideration of the bid procedures as promptly as possible. The
bid procedures, if approved by the Court, will include a break-
up fee to Duo-Form Acquisition in the event the Company elects
to consummate a transaction providing a higher bid. The bid
procedures will also provide for minimum bidding increments that
must be met before the Company could entertain higher bids. The
Company anticipates a hearing on the sale in late April.

Kevco filed voluntary petitions for reorganization under Chapter
11 of the United States Bankruptcy Code. The petitions were
filed in the United States Bankruptcy Court for the Northern
District of Texas on February 5, 2001.

Kevco, headquartered in Fort Worth, Texas, is a wholesale
distributor and manufacturer of building products for the
manufactured housing and recreational vehicle industries.


LOEWEN GROUP: Jack & Joyce Williams Seek Relief From Stay
---------------------------------------------------------
Jack W. Williams and Joyce W. Williams, by and through their
attorneys, Kathleen P. Makowski at Klett Rooney Lieber &
Schorling, and Bradley E. Pearce, Esquire and Jennifer A. Merlo,
Esquire at Moore & Van Allen, PLLC, moved the Court for an order
granting relief from the automatic stay pursuant to 11 U.S.C.
Section 362(d).

The Williams argued that they should be granted relief from the
automatic stay because:

      (1) The Loewen Group, Inc. Debtors have failed to provide
them with adequate protection of their interests;

      (2) the funeral home properties are not essential to the
Debtors' reorganization, and denial of relief from the automatic
stay will cause irreparable harm to the Williams but will not
substantially harm the Debtors or their reorganization;

      (3) the Debtors' proposed rejection of the unexpired lease
with Jack W. Williams would wrongly harm the Williams by
diminishing the consideration that was agreed to be paid to the
Williams in connection with the sale of their funeral home and
cemetery businesses.

The Williams told Judge Walsh that when the Debtors' bankruptcy
cases commenced, they were owed:

      (a) $1,647,345.00, for pre-petition secured debt arising
from the sale of the Williams' funeral home and cemetery
businesses;

      (b) $23,989.00 by the Loewen Group International, Inc.
(LGI) or its assignee for post-petition rent of the Williams
Dearborn Funeral Home; and

      (c) an amount in excess of $57,000 for repair of the
Williams Dearborn Home that the Debtors have abandoned.

After the commencement of the Debtors' chapter 11 cases, no
payments have been received by them from the Debtors, except
certain post-petition rent and other de minimis payments,
Williams alleges. The property securing the Debtor's obligations
to the Williams has an estimated value of $1,787,050.00,
Williams asserted. Therefore, Williams said, the Debtors have
little or no equity in the Williams' collateral.

To support their argument, the Williams detailed matters related
to the LGI Acquisition and asserted further amounts owed to
them. In detailing the matters and development of events, the
Williams tried to show that the amounts owed to them are part of
the overall consideration under the LGI Acquisition, that the
Debtors have attempted to deprive them of benefits due them
under the LGI Acquisition and that they will suffer irreparable
harm if the automatic stay is not lifted.

                     The LGI Acquisition

Prior to their involvement with LGI, the Williams owned and
operated several funeral homes and cemeteries in the vicinity of
Charlotte, North Carolina.

In 1992, LGI approached the Williams and their daughter,
proposing to acquire their funeral home and cemetery businesses
from them, and the Williams agreed to convey substantially all
of their funeral home business assets, including those of Forest
Lawn West, Hankins Whittington Williams Dearborn Funeral Home
and MeEwen Funeral Home, to LGI or one or more of its
subsidiaries. (The daughter of Jack and Joyce Williams, Carolyn
Adams, formerly Carolyn Dearborn, has resolved her claims
against the Debtors and is not represented by the same attorneys
in the bankruptcy cases.)

The agreement was set forth in that certain More Formal Purchase
Agreement and other agreements and documents, each dated as of
July 31, 1992. These agreements are part of a single, integrated
transaction (the LGI Acquisition), the Williams asserted.

As previously reported, Mr. Williams leased the Williams
Dearborn Funeral Home to LGI under the terms of the "Triple Net"
Lease Agreement, dated July 31, 1992 by and between Mr. Williams
(as lessor) and LGI (as lessee).

As part of the consideration given for the LGI Acquisition, LGI
executed a promissory note, dated July 31, 1992, in favor of Mr.
Williams in the original principal amount of $772,560.00 with a
maturity date of July 31, 2007, and interest at the rate of 9%
per annum. The Williams alleged that as of the Petition Date,
principal of $551,949.00 was outstanding on the Mr. Williams
Note.

As additional part of the consideration, LGI executed a
promissory note, dated July 31, 1992 in favor of Mrs. Williams
in the original principal amount of $200,040.00 with a maturity
date of July 31, 2007 and interest accrues at the rate of 9% per
annum. As of the Petition Date, the Williams alleged, principal
of $142,917.00 was outstanding on the Mrs. Williams Note.

Also as part of the LGI Acquisition, Mr. and Mrs. Williams each
entered into a 10 mile radius Non Competition Agreements with
LGI, each dated as of July 31, 1992, pursuant to which LGI
agreed to pay Mr. Williams a total of $1,448,548.00 in monthly
installments of $12,071.24 and to pay Mrs. Williams a total of
$375,075.60 in monthly installments of $3,125.63, in each
instance without interest. Mr. Williams' Non Competition
Agreement was later amended to extend the payment period and
reduce the monthly payments to $7,642.00, and Mrs. Williams' Non
Competition Agreement was later amended to extend the payment
period and reduce the monthly payments to $1,979.00. The
Williams asserted that payments due to them under the Non
Competition Agreements were primarily part of the total purchase
price to be paid for the LGI acquisition, rather than
consideration for the Williams' covenant to not compete. As of
the Petition Date, the Williams allege, LGI owed Mr. Williams
payments totaling $756,558.00 and Mrs. Williams payments
totaling $195,921.00 under the Non Competition Agreements.

In addition, the Loewen Group, Inc. executed a Guaranty
Agreement dated as of July 30, 1992, for an unconditional
guarantee of the payment of all amounts owed to the Williams
under any of the Purchase Agreement, the Mr. Williams Note, the
Mrs. Williams Note, the Non Competition Agreements, the Lease
Agreement and the other Purchase Documents.

As security for all amounts owed to the Williams under the
Purchase Documents, LGI executed the Deed of Trust, Assignment
of Rents and Leases and Security Agreement, dated as of July 31,
1992, granting the Sellers a security interest in McEwen Funeral
Home property located in Union County, North Carolina (the Deed
of Trust Collateral).

As of 1999, the Deed of Trust Collateral has a tax value of
$246,340.00, the Williams told the Court. The Deed of Trust, the
Williams say, was properly recorded with the Union County, North
Carolina, Register of Deeds on August 6, 1992 in Book 573, Page
312.

As additional security, LGI executed that certain Leasehold Deed
of Trust, Assignment of Rents and Leases and Security Agreement,
dated as of July 31, 1992, granting the Sellers a lien on the
leasehold interest of LGI in the Williams Dearborn Funeral Home.
The Leasehold Deed of Trust was properly recorded with the Union
County, North Carolina, Register of Deeds on August 6, 1992 in
Book 573, Page 274. As of 1999, the Leasehold Collateral has a
tax value of $461,660.00, the Williams told the Court.

Additionally, LGI and the Williams entered into that certain
Escrow Agreement, dated July 31, 1992, which provided for the
execution and delivery to an escrow agent of a North Carolina
General Warranty Deed conveying a certain tract of real property
known as Forest Lawn West Cemetery to the Williams (the Escrow
Collateral, and together with the Deed of Trust Collateral and
the Leasehold Collateral, the Collateral). Under the Escrow
Agreement, the escrow agent is obligated to deliver the deed for
the Escrow Collateral to the Williams if an Event of Default
occurs under the Escrow Agreement. The Events of Default
include, among other occurrences, payment and other material
defaults under any of the Purchase Documents, including the
Lease Agreement. As of 1999, the Escrow Collateral has a tax
value of $1,079,050.00, the Williams advised.

The Williams contend that as a result of the LGI Acquisition,
they sold or otherwise disposed of substantially all of their
funeral home businesses and associated assets and retired from
the funeral home business. The LGI Acquisition, the Williams
told the Court, was intended by the parties to constitute a
single, economically integrated transaction, and all amounts
due under any of the Purchase Documents were primarily intended
to consideration for the purchase of the Williams' businesses.

The Williams asserted that they are entitled to relief from the
automatic stay because:

      * their interest in the Collateral is not adequately
protected;

      * the Debtors have continued to use the Collateral without
making any payment and without providing the Williams with any
adequate protection;

      * the Debtors are in default under the Lease Agreement and
are in violation of Section 365(d)(3);

      * the Debtors have allowed the Leased Property's condition
to deteriorate significantly, abandoned the Leased Property, and
failed to prevent waste to the Leased Property, in violation of
the Lease Agreement; and

      * the Debtors have sought to reject the Lease Agreement,
which would deprive the Williams of part of the consideration
that they otherwise could receive under the LGI Acquisition.

      * the Debtors have twice attempted to wrongly deprive the
Williams of benefits due them under the LGI Acquisition - the
first attempt was in the motion for rejecting the Williams' Non
Competition Agreements which was denied by the Court stating
that "it appeared that payments due to former funeral home
owners under the Non Competition Agreements were part of the
purchase price" and the second attempt was in filing the motion
for rejection of the Lease Agreement, which would sever the
relationship between the obligations owed by the Debtors and the
security granted in the Collateral as part of the LGI
Acquisition.

The Williams contend that if LGI were to reject the Lease
Agreement and the Williams were not granted relief from the
stay, the Williams would have essentially no ability to convert
the Williams Dearborn Funeral Home into cash or a working
property. The Williams Dearborn Funeral Home, the Williams
explain, has no embalming facilities, and is usable as a funeral
home only in connection with the McEwen Funeral Home which is
subject to the Deed of Trust and which secures the Debtors'
obligations to the Williams. Moreover, the Williams-Dearborn
Funeral Home is unique property which is not readily usable for
purposes other than as a limited-service funeral home, the
Williams told the Court. The Williams contend that these
limitations compelled the collateralization of the various
obligations of LGI and its subsidiaries by liens on essentially
all assets conveyed wider the LGI Acquisition.

The Williams argued that provisions related to the put option in
the lease clearly evidence "the parties' intentions to make the
payments due under the Lease Agreement part of the overall
consideration to be paid to the Williams for the LGI
Acquisition."

The Williams reiterated that they entered into the LGI
Acquisition on the understanding and belief that they would be
able to exercise creditor's remedies on the Collateral with
respect to all obligations owed to them by LGI and its
successors upon any default under any of the Purchase Documents.

Relief from the automatic stay is warranted, the Williams
conclude, because the Debtors have not provided adequate
protection to them for their security interests, while at the
same time attempting to break apart the integrated agreements of
the LGI Acquisition and violating the Lease Agreement. (Loewen
Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


MONTGOMERY WARD: Liquidators Selling All Fixtures & Furniture
-------------------------------------------------------------
After 126 years in business, Montgomery Ward has finally closed
its doors. Starting as a mail-order catalog business in 1872,
the company grew to be one of the largest, privately owned
retailers in the United States. Efforts to reformat stores and
revitalize merchandise were not enough to beat sluggish sales,
forcing Wards to finally succumb to the fierce competition.

The liquidation of Montgomery Ward will continue on a daily
basis throughout the month of April with the sale of retail
stores, warehouse distribution centers and product service
outlets. In addition to the remaining (150) retail store
locations that are now being auctioned, this massive liquidation
will include over (500) forklifts, literally miles of warehouse
racking, plus office furnishings and computer equipment.

Also being offered will be the contents of the Ward's Corporate
Tower in downtown Chicago. This auction will feature 24-floors
loaded with exquisite office furnishings, satellite
communications system, and an enormous amount of 19th century
memorabilia and collectibles.

"This is a huge event -- a marathon auction run in which
everything will be sold to the bare walls by the end of April,"
said Richard Reese, President of Rabin Worldwide. "Within the
past 18 months, Ward's completely renovated over (100) retail
store locations at a cost of approximately $2 million dollars
per store. Retailers and brokers who will participating in the
upcoming auctions will find like new store furnishings and
fixtures being sold at pennies on the dollar of their original
cost."

To find out when the Wards closest to you will be auctioned,
please go to http://www.rabin.comfor details. Serving business
and industry for over 50 years, Rabin Worldwide is renowned as
the leader in B2B equipment auctions around the world. Rabin is
working in conjunction with Capital Recovery Group based out of
Connecticut and a nationwide network of other auctioneers.


OWENS CORNING: 2001 Derivative Review Results in $20 Mil Gain
-------------------------------------------------------------
Owens Corning said that a reassessment of its derivatives
position in accordance with a recent Financial Accounting
Standards Board rule resulted in a $20 million gain in net
income as of Jan. 1, according to its annual report with the
Securities and Exchange Commission. The company adopted the
Financial Accounting Standard 133 on Jan. 1. The rule requires
companies to report the fair market value of their holdings in
derivative instruments on their balance sheets and mark the
values to market by adjusting the value of the securities to
reflect the prevailing market value on the reporting date. Owens
Corning warned in the SEC filing that there are additional
interpretations under review by the board that could change the
accounting treatment and classification of the affected
instruments resulting only in an immaterial gain in net income.
(ABI World, April 3, 2001)


PILLOWTEX: Names Michael Harmon As New Chief Financial Officer
--------------------------------------------------------------
Pillowtex Corporation has named Michael R. Harmon as Chief
Financial Officer.

The designation of Mr. Harmon as CFO completes the reformation
of a new management team to help guide the Company as it
develops a plan of reorganization. In November of last year,
Pillowtex launched a financial restructuring and filed for
protection under Chapter 11 of the U.S. Bankruptcy Code. The
Company reported that the restructuring is proceeding as
planned.

Mr. Harmon has more than thirty years of experience within the
textile industry, most recently having served as Executive Vice
President and Chief Financial Officer for Galey & Lord, Inc., a
Greensboro, NC textile manufacturer. Mr. Harmon began his career
at Burlington Industries, Inc. Mr. Harmon offers broad knowledge
of corporate financial issues, as well as the integration and
implementation of modern operational systems within the textile
industry.

Pillowtex has also named Henry T. Pollock as Vice President and
Treasurer filling the vacancy created by the resignation of
Jaime Vasquez in March of this year. Mr. Pollock previously
served as an independent consultant to Pillowtex, and has more
than twenty years of diverse financial experience. Mr. Pollack
will assume responsibility for all investor relations activity.

Tony Williams, President and COO, commented, "Bringing Michael
Harmon on as CFO and Henry Pollock on as Treasurer at this
critical juncture in the company's history, allows us to round
out our management team, and provides us with the financial
skills and expertise required to successfully complete our
restructuring as efficiently and quickly as possible. This is a
wonderful addition for Pillowtex that will support our efforts
to ensure a successful future for our Company."


PRANDIUM: Misses Certain Debt Payments & Considers Bankruptcy
-------------------------------------------------------------
Prandium Inc., the troubled restaurant company that owns the Koo
Koo Roo, Chi Chi's and Hamburger Hamlet chains in Irvine,
Calif., recently missed several interest payments on its debt
and may have to consider a bankruptcy filing, according to the
Orange County Register. The company said that it would try to
renegotiate the debt terms with its bondholders and bankers, but
acknowledges that it is in default and could be subject to
penalties at any time. "Even if the company does reach an
agreement with its creditors, the filing of a chapter 11 case
may become necessary to implement the terms of the agreement," a
company spokesperson said. The company said that it has about
$238 million in debt. It paid some debt off with cash from the
sale of its El Torito chain last year, but industry watchers
believe bankruptcy may be Prandium's best move. (ABI World,
April 3, 2001)


PSINET: Delays Form 10-K Filing & May File For Bankruptcy
---------------------------------------------------------
PSINet Inc. (NASDAQ:PSIX) filed a Form 12b-25 with the
Securities and Exchange Commission indicating that, due to
rapidly changing circumstances impacting the Company, its 2000
financial statements are not yet finalized and therefore it will
not be able to file its Form 10-K for the year ended December
31, 2000 within the prescribed time period.

The Company has engaged outside consultants to prepare an
independent valuation of certain potentially impaired assets in
order to enable it to finalize its financial statements. The
Company took restructuring and impairment charges during the
first nine months of 2000 and believes that additional
restructuring and impairment charges, which may be significant,
will be incurred during the fourth quarter of 2000. The Company
anticipates that the valuation will be completed so that it will
be able to finalize its financial statements and file its Form
10-K within the applicable 15 calendar day extension period.

The Company also announced that, in conjunction with the audit
of its financial statements for the year ended December 31,
2000, it expects to receive a going concern qualification in its
audit opinion from PricewaterhouseCoopers LLP. As of March 30,
2001, the Company had cash, cash equivalents, short-term
investments and marketable securities held in financial
institutions of approximately $254 million, of which
approximately $27 million secures obligations under letters of
credit and similar obligations.

The Company's cash, cash equivalents, short-term investments,
marketable securities and cash generated by the expected
proceeds from asset sales are not expected to be sufficient to
meet the Company's anticipated cash needs absent successful
implementation of one or more financial or strategic
alternatives currently under consideration by the Company. Even
if one or more of such alternatives is successfully implemented
by the Company, there can be no assurance that the Company will
not run out of cash.

As the Company has announced previously, the Company has engaged
Goldman, Sachs & Co. to assist it in analyzing and considering
various financial and strategic alternatives available to the
Company, including a strategic alliance or the possible sale of
all or a portion of the Company. The Company has also engaged
Dresdner Kleinwort Wasserstein as a financial advisor to explore
alternatives to restructure the Company's obligations to its
bondholders and other creditors.

Dresdner Kleinwort Wasserstein's activities are being undertaken
in conjunction with the ongoing activities of Goldman, Sachs.
The Company cannot provide any assurance that it will be
successful in restructuring its obligations or completing any of
these strategic alternatives.

These efforts are likely to involve the Company's reorganization
under the federal bankruptcy code. Even if the Company were
successful in any of these efforts, it is likely that the
Company's common stock will have no value, and that the
Company's indebtedness will be worth significantly less than
face value.

The Company believes that it may not continue to satisfy the
capital requirements for continued listing of its common stock
and Series C preferred stock on The Nasdaq National Market and
cannot provide any assurance that the common stock and Series C
preferred stock will continue to be listed.

Headquartered in Ashburn, Virginia, PSINet Inc. is a leading
provider of Internet and IT solutions offering flex hosting
solutions, global eCommerce infrastructure, end-to-end IT
solutions and a full suite of retail and wholesale Internet
services through wholly-owned PSINet subsidiaries.
Services are provided on PSINet-owned and operated fiber, web
hosting and switching facilities, currently providing direct
access in more than 900 metropolitan areas in 27 countries on
five continents. PSINet information can be obtained by e-mail at
info@psi.com or by calling in the U.S. 800/799-0676


REFLEX COMMUNICATIONS: Files for Chapter 7 Bankruptcy Protection
----------------------------------------------------------------
ReFlex Communications has filed for chapter 7 bankruptcy
liquidation, leaving as many as 10,000 customers without
Internet access, according to LocalBusiness.com. The filing
comes a little more than a week after the Seattle-based company
announced it had laid off most of its staff. Phone calls to the
company, its attorney and trustee were not returned. A
bankruptcy court clerk did confirm, however, that the first
meeting of creditors would take place on May 3.

ReFlex had sales offices in Atlanta, Chicago, Dallas, Denver,
northern and southern California, Orlando, Portland, Phoenix and
the eastern seaboard. Additionally, the company was rolling out
service in Cleveland, Detroit, Minneapolis, Houston, San
Francisco, San Jose, Sacramento, Los Angeles, Orange County, San
Diego, Miami, Tampa, Tucson, Tempe, Washington, D.C., Boston,
New York, and Pittsburgh. It is not known what will happen to
those customers.

ReFlex also recently implemented movies-on-demand in association
with Blockbuster Inc. and Enron Broadband Services, a wholly-
owned subsidiary of Enron Corp. to subscribers in Portland and
Seattle. Blockbuster spokesperson, Liz Greene, said the
bankruptcy filing would have no "material impact" on the
entertainment giant. (ABI World, April 3, 2001)


REPUBLIC TECHNOLOGIES: Court Okays $420 Million DIP Financing
-------------------------------------------------------------
Republic Technologies International, LLC, the nation's largest
producer of special bar quality steel, has secured U.S.
Bankruptcy Court approval for $420 million in debtor-in-
possession financing.

The financing from a consortium of banks led by Fleet Capital,
based in Boston, will enable Republic to continue normal
operations after the company's filing Monday under Chapter 11 of
the U.S. Bankruptcy Code.

Republic also secured court approval to continue its existing
wage and benefit programs for current employees.

"Securing debtor-in-possession financing in place is the first
major step in our reorganization process," said Joseph F.
Lapinsky, Republic's president and chief executive officer. "We
are pleased by today's court ruling, and by the initial support
of our customers, employees and suppliers following the news of
our Chapter 11 filing. We look forward to serving our customers
without disruption as we build a more valuable business."

Republic Technologies International, based in Fairlawn, Ohio, is
the nation's largest producer of high-quality steel bars. With
4,600 employees and 2000 sales of nearly $1.3 billion, Republic
was included in Forbes magazine's 2000 and 1999 lists of the
largest U.S. private companies. Republic operates plants in
Canton, Massillon, and Lorain, Ohio; Beaver Falls, Pa.; Chicago
and Harvey, Ill.; Gary, Ind.; Lackawanna, N.Y.; Cartersville,
Ga.; Willimantic, Conn; and Hamilton, Ont. The company's
products are used in demanding applications in the automotive,
agricultural, aerospace, off-highway, industrial machinery and
energy industries.


SCUDDER WEISEL: Board Of Trustees Adopts Liquidation Plan
---------------------------------------------------------
Scudder Weisel Capital Entrepreneurs Fund, a closed-end
management investment company managed by Scudder Weisel Capital
LLC, announced that the Board of Trustees of the Fund has
adopted a plan of liquidation and dissolution pursuant to which
the Fund will make an income distribution to shareholders on or
about April 24, 2001, followed by a final distribution to
shareholders in complete liquidation of the Fund on or about
April 30, 2001.

Shareholders of the Fund will receive their pro rata interest in
the Fund as a result of the liquidation and dissolution, plus
any additional amount necessary to compensate shareholders for
sales commissions paid in connection with the purchase of Fund
shares. Zurich Scudder Investments, Inc., an affiliate of
Scudder Weisel Capital LLC, will provide administrative
assistance necessary to achieve the orderly liquidation and
dissolution of the Fund.


SONUS COMMUNICATIONS: Four Units File Chapter 11 Petitions
----------------------------------------------------------
Sonus Communication Holdings Inc.'s board of directors voted
last week to file chapter 11 petitions on behalf of its four
wholly-owned subsidiaries, according to Dow Jones. Sonus units
Empire One Telecommunications Inc., Sonus Communications Inc.,
EOT Telecommunications of Canada Inc. and Empire One Power Inc.
filed chapter 11 petitions Monday. Sonus, based in New York,
provides telecommunications services aimed at ethnic markets.
(ABI World, April 3, 2001)


SONUS COMMNICATIONS: Case Summaries & Large Unsecured Creditors
---------------------------------------------------------------
Lead Debtor: Empire One Telecommunications, Inc.
              55 John Street
              New York, NY 10038

Debtor affiliates filing separate Chapter 11 petitions:

         Sonus Communications, Inc.
         EOT Communications of Canada, Inc.
         Empire One Power, Inc.

Type of Business: The debtors provide a diverse range of
                   wholesale and retail integrated communications
                   services, including standard voice
                   telecommunications (local and long distance),
                   dial-up and dedicated Internet access and
                   specialized data services for commercial
                   subscribers.

Chapter 11 Petition Date: April 2, 2001

Court: Southern District of New York

Bankruptcy Case Nos.: 01-11894 and 01-11896 through 01-11898

Judge: Hon. Arthur J. Gonzalez

Debtors' Counsel: Timothy W. Walsh, Esq.
                   LeBoeuf, Lamb, Greene and MacRae, LLP
                   125 West 55th Street
                   New York, NY 10019-5389
                   Phone:(212)424-8564
                   Fax:(212)424-8500
                   Email: bankrupt@llgm.com

Debtors' reported financial condition on March 30, 2001:

                                       Total Assets  Total Debts
                                       ------------  -----------
Empire One Telecommunications, Inc.     $2,081,998   $4,826,565
Sonus Communications, Inc.                 527,221      854,500
EOT Communications of Canada, Inc.               0            0
Empire One Power, Inc.                           0            0


Consolidated list of the Debtors' 25 largest unsecured
creditors:

Entity                            Claim Amount
------                            ------------
Teleglobe                           $ 682,336
Lock Box #7595
Collection Center Drive
Chicago, IL 606
Phone:(703)755-2000
Fax:(703)755-2809

Universal Service Admin. Co.        $ 472,624
P.O. Box 371719
Pittsburgh, PA 15251-7719
(973)984-8173

Global Crossing/Frontier            $ 428,488
Global Crossing Bandwidth, Inc.
20 Oak Hollow Ste. 300
Southfield, MI 48034
Phone:(800)520-1730 ext. 4265
Attention: Eric Kinnslow

V Local NY                          $ 239,784

V North PICC                        $ 143,983

ATC Teleport, Inc.                  $ 105,000

MCI WorldCom                         $ 74,481

Swisscom                             $ 67,375

Delta Three                          $ 66,775

McGuire, Woods, Battle & Booth       $ 63,080

V B&C                                $ 53,737

FCI                                  $ 50,793

Nevada/Stentor                       $ 50,427

V Local NJ                           $ 44,240

Inteisat                             $ 38,979

Comsat                               $ 36,167

Barry Nathanson Associates           $ 32,332

SK Productions                       $ 31,100

UUNet Technologies, Inc.             $ 29,766

Kingston TLI                         $ 26,418

Global Advertising Solutions         $ 25,558

TELE DANMARK                         $ 25,529

A.I. Credit Corp.                    $ 23,108

WJ-NY                                $ 22,805

NX Networks, Inc.                    $ 21,394


STELLEX TECHNOLOGIES: Court Approves Bidding Procedures
-------------------------------------------------------
According to documents obtained by BankruptcyData.com, the U.S.
Bankruptcy Court approved Stellex Technologies, Inc.'s motion
for (1) bid procedures and setting a hearing on the sale of
substantially all of the assets of Stellex Aerostructures, Inc.;
Stellex Monitor Aerospace, Inc.; Stellex Precision Machining,
Inc.; Stellex Aerospace, Inc.; General Inspection Laboratories,
Inc.; Stellex Paragon Precision, Inc.; Stellex Bandy Machining,
Inc.; and Scanning Electron Analysis Laboratories, Inc.; (2)
approving payment of break-up fee, termination fee and expense
reimbursement in connection therewith; (3) scheduling date, time
and place for auction; and (4) approving form of notice of the
bid procedures, sale hearing, and auction. The Company has been
operating under Chapter 11 protection since September 12, 2000.
(New Generation Research, April 3, 2001)


STROUDS: Universal Capital To Conduct Sales At 3 Closing Outlets
----------------------------------------------------------------
Universal Capital Partners, LLC ("UCP"), a Minneapolis-based
retail consulting and liquidation firm, confirmed that it
submitted the winning bid in the bankruptcy court to conduct
sales and liquidate all merchandise for three Strouds retail
stores in California including locations in Santa Monica, Irvine
and Escondido.

Strouds, Inc., founded in 1979 with a single store in Pasadena,
California, is a specialty retailer of bed, bath, tabletop and
other home textile products, and offers an extensive selection
of high quality, brand name linens for the home at low prices.
At its peak, the Company operated as many as 68 retail outlets
and employed more than 1,600 associates. Strouds began
restructuring its operations in 1998 and on September 7, 2000,
Stroud's filed for voluntary bankruptcy protection under Chapter
11 of Title 11 of the United States Code.

Mike Catain, UCP President and Chief Executive Officer, said,
"It's unfortunate when a retailer like Strouds, with a long and
successful history spanning more than 20 years, has to close
some of its stores. We're pleased, however, to have submitted
the winning bid to assist them with these store closings. Our
management team, with years of merchandising experience, has
strong capabilities in valuing and liquidating inventory in a
very cost-effective manner. We have a particular expertise with
linen and home fashion liquidations, having conducted going out
of business sales in the past for both Pacific Linen and 3D Bed
and Bath."

Shoppers can expect huge discounts on top quality merchandise
including: bath accessories, rugs, towels, fashion bedding,
pillows, blankets, home decor, table linens window coverings and
more! Spring is upon us, and whether you're looking to spruce up
your bathroom or makeover an entire room, look no further than
your local Strouds. Stroud's carries practically every top brand
name in home fashions, including Wamsutta, Martex, Regal,
Croscill, Fieldcrest, Royal Velvet, Guess and Esprit. The sale
won't last long so shoppers should come early for the best
selection.

                       Store Sale Details

Sales have already started at the stores to be closed and
include the following locations:

    STORE ADDRESS                      CITY                  ST
    -------------                      ----                  ---
    1266 F Auto Park Way               Escondido             CA
    107 Technology Way (Home Compass)  Irvine                CA
    3202 Wilshire Blvd.                Santa Monica          CA

Questions concerning Stroud's, Inc., the remaining locations and
corporate information should be directed to Strouds. Telephone
numbers and other information can be found on their website at
www.strouds.com.

Universal Capital Partners, LLC is a full-service, retail
consultant serving both retail management and asset-based
lenders. Headquartered in Minneapolis, Universal Capital employs
75 people and has offices in New York and Greensboro, N.C.
Universal Capital provides a variety of services including
strategic store analyses, inventory evaluation, real estate
restructuring, collateral monitoring and inventory liquidations.
The company also maintains a credit facility in excess of $100
million to assist lenders and businesses with their funding and
liquidity needs. Universal Capital has conducted liquidations in
hundreds of locations throughout the United States, representing
more than $400 million in retail inventory. The company's retail
client list includes Jay Jacobs, Just for Feet, Pacific Linen,
Sun Television and Appliances, MJDesigns, Three D Bed & Bath,
West Lumber, Wang's International, Carolina Pottery and LOT$OFF.


TRANS WORLD: Creditors Seek Temporary Stay On American Buyout
-------------------------------------------------------------
Trans World Airlines, Inc.'s official committee of unsecured
creditors filed a motion seeking an U.S. District Court order
for a temporary stay for the plan for AMR Corp.'s proposed
purchase of Company assets. The committee is seeking expedited
consideration of the appeal. The committee's motion asserted,
"It is undisputed that unsecured creditors whose claims are not
being paid by American are likely to receive zero distribution
if the sale closes." TWA has been operating under Chapter 11
protection since January 10, 2001. (New Generation Research,
April 3, 2001)


U.S. AGGREGATES: Weak FY 2000 Results Trigger Payment Defaults
--------------------------------------------------------------
U.S Aggregates, Inc. (NYSE: AGA) reported preliminary financial
results for the fourth quarter and twelve months ended December
31, 2000.

The Company reported fourth quarter sales of $60.7 million and a
net loss before extraordinary items of approximately $16.5
million, or $1.11 per diluted share. The loss results from a
number of factors, including, but not limited to, the negative
impact of rising fuel costs and a decline in sales volumes, a
write down of assets held for sale of approximately $8.4
million, or $0.37 per diluted share, and a restructuring charge
of $2.2 million, or $0.10 per diluted share for closing certain
of its operations in Nevada and Eastern Idaho. The write down of
assets held for sale includes a write down of $6.4 million for
the sale of certain construction materials operations in Utah as
discussed below.

The Company will restate its earnings for the first three
quarters of 2000. For the first quarter, the Company will
restate its net loss of $2.6 million, or $0.17 per diluted
share, to a net loss of $5.1 million, or $0.34 per diluted
share. For the second quarter, the Company will restate its net
income of $6.8 million, or $0.45 per diluted share, to net
income of $3.1 million, or $0.20 per diluted share. For the
third quarter, the Company will restate its net income of $5.5
million, or $0.36 per diluted share, to net income of $1.7
million, or $0.11 per diluted share. The restatement relates
primarily to the reclassification of certain capitalized items
to operating expenses, the recognition of certain additional
operating expenses, and the establishment of a reserve for self-
insurance claims.

Sales for the twelve months ended December 31, 2000, were $291.7
million. The net loss before extraordinary items for the twelve
months ended December 31, 2000, totaled approximately $16.8
million, or $1.13 per diluted share.

For the 1999 fourth quarter and full year, the Company reported
sales of $80.0 million and $308.6 million, respectively, and net
income before extraordinary item of $3.0 million, or $0.20 per
diluted share, and $14.2 million, or $1.16 per diluted share,
respectively.

Reported sales for 2000 and 1999 include the effect of adopting
EITF 00-10, which requires that amounts billed to customers
related to shipping and handling be classified as revenue and
that the related costs be included in costs of goods sold.

       Reaches Interim Agreement with Senior Secured Lenders

As a result of the fiscal year 2000 financial performance, the
Company is in default of certain financial covenants required by
the terms of the senior secured credit facility and the
subordinate debt agreement. The Company has reached an agreement
with its senior secured lenders to waive all defaults under its
Credit Facility through April 13, 2001. The Company is in
discussions with its Senior Lenders and subordinated debt holder
to reach a longer-term solution.

                    Delays Filing Form 10-K for 2000

The Company intends to file the Annual Report on Form 10-K for
the year ended December 31, 2000 and to amend its Form 10-Q
filings for the fiscal quarters ended March 31, 2000, June 30,
2000, and September 30, 2000, on or before April 15, 2001.
Immediately after filing the 2000 Form 10-K, U.S. Aggregates
expects to schedule a conference call to discuss fourth quarter
and 2000 year-end results.

       Sells Certain Construction Materials Operations in Utah

The Company announced that it has sold certain of its
construction materials operations in Northern Utah to Oldcastle
Materials, Inc., a subsidiary of CRH plc (Nasdaq: CRHCY), one of
the largest producers of aggregates and ready mix in the United
States. The operations sold represent less than 15% of the
Company's 2000 revenues.

Founded in 1994, U.S. Aggregates, Inc. ("USAI") is a leading
producer of aggregates. Aggregates consist of crushed stone,
sand and gravel. The Company's products are used primarily for
construction and maintenance of highways and other
infrastructure projects as well as for commercial and
residential construction. USAI serves local markets in nine
states in two fast growing regions of the U.S., the Mountain
states and the Southeast.


UTILITY.COM: Myutility Inc. Buys Web Platform & Hires IT Staff
--------------------------------------------------------------
Myutility Inc., a venture backed energy information and energy
efficiency services company, has acquired the technology and
intellectual assets including the highly acclaimed
UtilityOne(TM) Web Platform from Utility.com, which is in
liquidation.

The platform delivers online customer acquisition, customer
service and data exchange for utilities, energy providers,
marketers, ISOs and service organizations. Simultaneous with the
purchase of the UtilityOne(TM) platform, Myutility hired the
former Utility.com IT employees who were responsible for the
creative design, IT infrastructure and development of the
millions of lines of code supporting the platform's
functionality.

The strategy behind UtilityOne(TM) was to build a platform that
would provide Internet-based customer interaction for utilities
on an ASP or licensed basis, allowing utilities to serve their
customers online with a private label or co-branded site without
having to invest many millions of dollars in internal software
development costs. Myutility plans to continue the development
of the platform and increase marketing efforts to investor owned
utilities, municipals, energy coops and service organizations.

The UtilityOne(TM) platform has extensive database and data
exchange functionality, an attractive and easily customized web
interface and has application for any large service organization
that wants to migrate its customer interaction to a robust
Internet-based platform. Myutility plans to modify the
UtilityOne(TM) offerings to also include energy efficiency
information, energy solutions and Internet based interval
metering solutions for utilities and energy companies as a
private branded ASP service for their customers.

Raymond G. Saleeby, Myutility's president and CEO, said, "The
acquisition of this award winning Internet platform and the
hiring of the expert IT staff that built it is a major step
forward for Myutility. Since December, when we acquired Teldata
Solutions from National Grid, we have been moving rapidly to
bring energy information services and energy efficiency
solutions to the marketplace. Myutility is committed to
delivering actionable energy information to customers nationwide
and to delivering the turnkey energy efficiency solutions that
permanently and significantly reduce utility costs."

Saleeby continued, "As we have seen from the continuing energy
crisis in California and the escalation of natural gas and
electric costs nationwide, energy efficiency, energy management,
distributed generation and demand response to energy price
signals are essential ingredients in our future energy mix.
Teldata's interval metering devices allow for the creation of
large-scale demand response programs with validation of the
reductions achieved by each customer. With the UtilityOne(TM)
platform, we will be able to rapidly scale our energy
information services using interval meter data and our turnkey
energy efficiency upgrades to have a material impact on customer
energy costs. Commercial energy users in California and the rest
of the country need to know when and how much they are spending
on energy and how to use that knowledge to make the operational
and efficiency upgrade choices to reduce their utility bills.
Our services will deliver those results."

Teldata Solutions provides data acquisition and data management
solutions for electric, water and gas meters. Its solutions
include AMR, interval meter data collection, MDMA data
management, energy information services and secure Internet
presentation. It is a certified provider of meter installation
and meter data management services. The company is a wholly
owned subsidiary of Myutility, Inc. and is a leading provider of
meter data acquisition solutions in the United States.
Founded in early 1999, Myutility Inc. is privately held and
based in New York City with offices in Oakland, Portland,
Chicago, Los Angeles and Houston. Myutility manufactures
interval meter data units, provides energy information services,
licenses energy related software to utilities and delivers cost
saving energy efficiency solutions for its commercial and
industrial customers.


VLASIC FOODS: Agrees To Sell North American Assets To Hicks Muse
----------------------------------------------------------------
Vlasic Foods International (OTC Bulletin Board: VLFIQ) has
reached an agreement to sell the assets of all of its North
American businesses -- "Swanson" frozen foods, "Open Pit"
barbecue sauce and its namesake "Vlasic" pickles and condiments
-- to Hicks, Muse, Tate & Furst (HMTF) for $370 million plus
warrants to purchase 15% of the common stock of the acquiring
entity and additional consideration.

Vlasic commenced bankruptcy proceedings on January 29, 2001 to
effect the terms of an earlier agreement to sell the "Vlasic"
pickles and condiments and "Open Pit" barbecue sauce businesses
to H.J. Heinz Company for an adjusted price of approximately
$174 to $179 million. Today the company said that the Heinz
agreement had been terminated according to its terms in order to
permit implementation of the HMTF agreement.

The HMTF agreement is subject to approval of the U.S. Bankruptcy
Court at a hearing scheduled for May 9, 2001. The agreement has
the support of Vlasic's senior lenders and its official
committee of unsecured creditors. The Bankruptcy Court also set
a hearing date of April 17, 2001 to approve procedures under
which competing bids for the businesses may be considered. Under
the proposed procedures, competing bids must be received by the
company no later than May 3, 2001.

David Pauker, managing director of Goldin Associates, a
nationally recognized turnaround manager retained by Vlasic
Foods to oversee the implementation of a financial
restructuring, said, "The agreement with HMTF for the sale of
our North American businesses should enable us to pay our senior
lenders in full and make a substantial distribution to our
bondholders and other unsecured creditors. It will enable the
businesses to remain independent and our management team and
employees to continue to work together to grow our brands.

"With C. Dean Metropoulos, HMTF's partner in food acquisitions,
and the outstanding talent at Vlasic Foods, the `Swanson,' `Open
Pit,' and `Vlasic' businesses should now be in a position to
truly flourish," added Pauker. "HMTF has the resources to make
additional food acquisitions to complement and leverage the
strengths of our existing brands."

The three businesses being sold to HMTF have combined sales of
approximately $750 million. The businesses have four
manufacturing facilities: frozen food plants in Omaha, Neb., and
Fayetteville, Ark.; and pickle and condiment plants in
Millsboro, Del., and Imlay City, Mich. The businesses have
approximately 2,700 full-time and 550 seasonal employees,
including approximately 170 at its headquarters in Cherry Hill,
NJ.

Previously, Vlasic Foods announced its agreement to sell its two
businesses in the United Kingdom -- "Freshbake" frozen foods and
"SonA" canned and jarred fruits, vegetables and beans -- to
separate parties. The Court is expected to approve those sales
this week.


VODAVI TECHNOLOGY: Expects First Quarter Shortfall
--------------------------------------------------
Vodavi Technology Inc. (Nasdaq:VTEK) announced that its net
sales and earnings for the first quarter of 2001 will fall
significantly below sales and earnings for the comparable
quarter of 2000.

The company estimates a decline in net sales for the first
quarter of approximately 35 percent from net sales in the
comparable quarter of 2000. As a result, the company anticipates
that its first quarter net loss will exceed $0.25 per share,
excluding any special charges.

The reduction in sales can be attributed to the company's
wholesale distribution channel, which represented approximately
66 percent of net sales in 2000. Consistent with overall
industry trends, the company reported that its distributors
experienced an estimated 20 percent reduction in sales of the
company's products during the first quarter.

In addition, the company's top six distributors further reduced
their purchases from the company in order to bring down their
inventory levels by approximately $3.5 million. The decline in
sales through the wholesale channel was somewhat offset by a 7.5
percent increase in sales from the company's growing dealer
direct channel.

Vodavi also announced that it is out of compliance with one of
its loan covenants under its revolving credit facility related
to inventory levels. In response, the company has made
arrangements with its major suppliers to curtail incoming
shipments to bring inventory in-line with its current sales
levels.

The company is also in discussions with its principal commercial
lender to obtain relief from the loan covenant and anticipates a
resolution by the time it reports its actual first quarter
results on May 15, 2001.

The company's financial position remains strong with excess
borrowing capacity of $3.7 million at March 31, 2001. During the
quarter, the company reduced its outstanding borrowings from
$6.3 million at year-end to $5.6 million to end the first
quarter of 2001.

The company has implemented its previously announced plans to
reduce its operating costs by approximately 15 to 20 percent. In
light of current economic and industry conditions, the company
will continue to review its operating cost structure and explore
additional cost savings.

Vodavi Technology Inc. is headquartered in Scottsdale. The
company designs, develops, markets, and supports a broad range
of business telecommunications solutions.


WANGS INT'L: Taps Universal Capital For Excess Inventory Sale
-------------------------------------------------------------
Universal Capital Partners, LLC ("UCP"), a Minneapolis-based
retail consulting and liquidation firm, confirmed that it is
managing the excess inventory liquidation sale for approximately
$30 million of merchandise located at the Wang's International
Memphis, Tennessee warehouse. The sale is open to all retailers
and wholesalers, who can shop through the website at
www.wangs.com or by calling 1-800-829-2647 to place orders and
receive catalogues and additional information.

Wang's International, Inc., established in 1976, maintains a
557,000 square foot distribution facility located 4250 E. Shelby
Dr., Memphis, TN 38118, and is a specialty wholesaler of
pottery, home decor, candles, crafts, baskets, silk florals,
party supplies, and garden items. Last December, Wang's filed
for voluntary bankruptcy protection under Chapter 11 of Title 11
of the United States Code to allow it the time to restructure
its operations.

Mike Catain, UCP President and Chief Executive Officer, said,
"We're pleased to manage Wang's excess inventory liquidation.
Our management team, with years of merchandising experience, has
strong capabilities in valuing and liquidating inventory in a
very cost-effective manner. This isn't our first home decor
liquidation, we also handled the liquidation of several
MJDesigns outlets in 1999 and know the kinds of bargains that
will attract wholesalers and retailers, alike!"

Questions concerning Wang's International, Inc., the remaining
locations and corporate information should be directed to Wang's
International. Telephone numbers and other information can be
found on their website at www.wangs.com.

Universal Capital Partners, LLC is a full-service, retail
consultant serving both retail management and asset-based
lenders. Headquartered in Minneapolis, Universal Capital employs
75 people and has offices in New York and Greensboro, N.C.
Universal Capital provides a variety of services including
strategic store analyses, inventory evaluation, real estate
restructuring, collateral monitoring and inventory liquidations.
The company also maintains a credit facility in excess of $100
million to assist lenders and businesses with their funding and
liquidity needs. Universal Capital has conducted liquidations in
hundreds of locations throughout the United States, representing
more than $400 million in retail inventory. The company's retail
client list includes Jay Jacobs, Just for Feet, Pacific Linen,
Sun Television and Appliances, MJDesigns, Three D Bed & Bath,
West Lumber, Carolina Pottery, Strouds and LOT$OFF.


WINSTAR COMMUNICATIONS: Moody's Junks Senior Debt Ratings
---------------------------------------------------------
In the absence of additional funding, Winstar Communications
Inc. may not be able to operate well beyond this year. Its
outlook is negative.

This was the projection made by Moody's Investors Service
Tuesday as it lowered several notes of Winstar to C levels.

The bond rating agency says the financial sources of the company
are almost dry making its current liquidity position unable to
provide funding for its operations substantially beyond 2001.
At present, the New York-based Winstar only has $315 million in
cash and liquid assets and about $800 million available under
vendor financing and leasing facilities.

These vendor-financing facilities, however, can only be drawn in
connection with equipment purchases and related services.

The only remaining source for operational funds would have been
a bank credit facility that is worth $1.35 billion. But this,
too, is almost fully drawn.

According to Moody's, given investor sentiment, it is unlikely
that Winstar can access public debt or equity markets in the
near term.

Hence, Moody's says that the recover prospects of all its debt
holders, particularly the unsecured noteholders, are poor in a
distress scenario.

Moody's gave the following ratings on Winstar's notes:

      -- senior unsecured debt, to Ca from B3
      -- senior secured debt, to Caa3 from B2
      -- senior implied rating, to Caa3 from B2
      -- preferred stock, to C from Caa


XEROX CORP.: Can't Produce Audited Financial Statements
-------------------------------------------------------
In a regulatory filing this week, Xerox Corporation says that it
can't file its annual report with the SEC because it "does not
at the present time have audited financial statements for 2000."
Vice President and Controller Gregory B. Tayler says that Xerox
has been advised by its auditors, KPMG, that "a fuller audit
review than previously contemplated is needed for it to satisfy
its auditing responsibilities in connection with completing its
audit of Registrant's 2000 financial statements. In furtherance
of this fuller review, Registrant's Audit Committee has begun an
internal review, in cooperation with KPMG, which will address
matters for further review. The Audit Committee has engaged
counsel to assist it in the review. Registrant and its Audit
Committee believe that Registrant's accounting policies and
procedures are appropriate and consistent with generally
accepted accounting principles. However, in light of the
previously disclosed Securities and Exchange Commission
investigation, the Audit Committee and Registrant's auditors
agreed that a fuller review is appropriate. The Audit Committee
and its counsel, together with KPMG, intend to work together to
complete the review as quickly as possible, although no fixed
time frame has been set."


ZYMETX: Securities Subject to Possible Delisting From Nasdaq
------------------------------------------------------------
ZymeTx, Inc. (Nasdaq:ZMTX) received a Nasdaq Staff Determination
on March 27, 2001, indicating that the Company fails to comply
with the net tangible asset requirement for continued listing
set forth in Marketplace Rule 4450(a)(3), and that its
securities are, therefore, subject to delisting from the Nasdaq
National Market.

The Company has requested a hearing before a Nasdaq Listing
Qualifications Panel to review the Staff determination. There
can be no assurance that such Panel will grant the Company's
request for continued listing. In the event the Panel does not
grant the Company's request, the Company will seek to have its
securities included on the Nasdaq SmallCap Market.

                     About ZymeTx, Inc.

ZymeTx, Inc. is a biotechnology company engaged in the
development of technology to produce products for the diagnosis
and treatment of viral disease, viral management and disease
surveillance. The Company developed ZstatFlu, the world's first
rapid point-of-care test capable of detecting both Influenza A
and B, and the National Flu Surveillance Network(TM) (NFSN), a
network of physician sites across the country that use ZstatFlu
to track influenza in their communities and practices. The
common stock of ZymeTx, Inc. is traded on The Nasdaq National
Market under the symbol "ZMTX". Additional information on ZymeTx
and NFSN can be obtained by accessing the web sites at
www.zymetx.com and www.fluwatch.com.

                            *********

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 are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.

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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Group, Inc., Washington, DC USA. Debra Brennan, Yvonne L.
Metzler, Larri-Nil Veloso, Aileen Quijano and Peter A. Chapman,
Editors.

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

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                      *** End of Transmission ***