/raid1/www/Hosts/bankrupt/TCR_Public/010725.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, July 25, 2001, Vol. 5, No. 144
Headlines
ACCUMED: No Word on Whether Ampersand Rescue Merger Closed
AMF BOWLING: Court Modifies Sec. 345 Investment Guidelines
AML COMMUNICATIONS: Shares Subject To Nasdaq Delisting
AMPERSAND MEDICAL: Tucker Anthony Hired to Explore Alternatives
AMRESCO INC.: Discloses Credit Line Extension & Nasdaq Delisting
ARCH WIRELESS: Withdraws Exchange Offer Due To Weak Q2 Results
BETHLEHEM STEEL: 2nd Quarter Conference Call Today at 2:00 p.m.
BRIDGE INFORMATION: GECC Seeks Relief From Automatic Stay
CENTRAL EUROPEAN: Robert Burke Is New Chief Operating Officer
COMDISCO INC.: Selling Availability Solutions Division
DANKA BUSINESS: Raises $290 Mil From Unit Sale To Pitney Bowes
DICOM IMAGING: Enters Into Loan & Security Pact With Torchmark
EXCALIBER TUBULAR: Files Chapter 11 Petition in St. Louis, Mo.
EXCALIBER TUBULAR: Chapter 11 Case Summary
GLENEX INDUSTRIES: Board Endorses Liquidation Plan
GUNTHER INTERNATIONAL: Recapitalization Agreement Eases Struggle
HARNISCHFEGER: Beloit Settles Preference Claim for 10% Payment
HORIZON PHARMACIES: Files Chapter 11 Petition in N.D. Texas
HORIZON PHARMACIES: Chapter 11 Case Summary
HUDSON RESPIRATORY: S&P Downgrades Credit Ratings To B & CCC+
IMPERIAL SUGAR: Committee Objects To 37 Claims By US Trust Co.
INTEGRATED HEALTH: Ventas Demands Payment Of Administrative Rent
INTERPOOL INC.: Fitch Cuts Senior Debt Ratings To Low-B's
JAM JOE: Case Summary & List of Largest Creditors
LAIDLAW INC.: Paying Prepetition Trust Fund Taxes
LUCENT: EBITDA & Net Worth Covenants Need Renegotiation
MARINER POST-ACUTE: Moves To Transfer Monterey, Arizona Facility
McCLENDON TRANSPORTATION: Losses Raise Going Concern Doubts
NETEASE.COM: Nasdaq Plans To Delist American Depositary Shares
OWENS CORNING: Moves To Pay Certain Prepetition Ohio Taxes
PACIFIC GAS: Hiring Skadden Arps As Special Counsel
PAYLESS CASHWAYS: Court Okays $160 Million DIP Financing
PHASE2MEDIA: Case Summary & 20 Largest Unsecured Creditors
PLANVISTA CORPORATION: Reports Financial Results for 2nd Quarter
PLAY-BY-PLAY: Warner Bros. Terminates Two Licensing Agreements
PLIANT SYSTEMS: Ends Sale Negotiations With mPhase Technologies
PRIME RETAIL: Shareholders To Convene in Baltimore On August 21
PRIVATE MORTGAGE: Files for Chapter 11 Protection
PSINET INC.: Creditors' Committee Retains Wachtell As Counsel
RELIANCE GROUP: Committees Tap PwC as Financial Advisor
SAFETY-KLEEN: Systems Inks EPA Consent Pact re Dolton Facility
TOKHEIM CORPORATION: Reports Improved Q2 Financial Results
TRANS WORLD: Has Until July 31 to Calculate & Make Payments
U.S. MINERAL: Case Summary & 20 Largest Unsecured Creditors
USG CORP: US Trustee Appoints Asbestos Injury Claimant Committee
VLASIC FOODS: Stipulation Resolves U.S. Cold Storage Assumption
W.R. GRACE: Asbestos Committees Want Document Depository Set Up
WARNACO GROUP: Rejecting Net Lease With AMB Property
WELLCARE MANAGEMENT: Auditors Doubt Going Concern Ability
WINSTAR COMM: Asks To Employ & Pay Ordinary Course Professionals
ZANY BRAINY: Will File Plan Within 60 Days After Asset Transfer
ZCONNEXX: Fails to Agree With G&V Financial, Officers Resign
* Meetings, Conferences and Seminars
*********
ACCUMED: No Word on Whether Ampersand Rescue Merger Closed
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AccuMed International, Inc., has incurred, and continues to
incur, losses from operations and has a working capital
deficiency. For the years ended December 31, 2000, 1999, and
1998, AccuMed incurred net losses from continuing operations of
$3,098,000, $6,803,000, and $10,360,000, respectively. At
December 31, 2000, AccuMed had a working capital deficiency of
$812,000, and its available resources are not presently
sufficient to fund its expected cash requirements through the
end of 2001. These conditions raise substantial doubt about
AccuMed's ability to continue as a going concern.
In 2000 and early 2001, management of AccuMed implemented
strategies to reduce losses from operations and cash used in
operating activities. These strategies have included a reduction
in personnel, curtailment of certain research and development
efforts, and cutting of discretionary expenditures.
In February, AccuMed announced that it signed a definitive
agreement to be acquired by Ampersand Medical Corporation (OTC
Bulletin Board: AMPM). The terms of the agreement had been
approved by the directors of both companies. The transaction
was subject to final approval by AccuMed shareholders. The
Companies expected to close the transaction during the second
quarter of 2001. As a result of the signing of the merger
agreement with Ampersand, AccuMed $695,000 in advances from
Ampersand to be used for working capital purposes. The merger
agreement required additional advances of $225,000 per month
from Ampersand in April and May 2001. AccuMed indicated in
regulatory filings that if it did not consummate the merger
agreement with Ampersand, AccuMed would be required to pursue
other strategies to maintain its liquidity. These strategies,
AccuMed said, would include substantially curtailing its
development and marketing efforts, liquidating its inventories
and technology portfolio or ceasing operations . . . all having
a materially and adversely affect AccuMed's business, financial
condition, results of operations, and cash flows.
"The acquisition of AccuMed is on track although the regulatory
details are taking longer than we would like. The two companies
already are working together closely. Once the transaction is
closed, the combined net worth and subsequent return to
shareholders will help propel Ampersand's development," Peter
Gombrich, chairman and chief executive officer of Ampersand
Medical, said in May.
AMF BOWLING: Court Modifies Sec. 345 Investment Guidelines
----------------------------------------------------------
Certain of AMF Bowling Worldwide, Inc.'s assets are cash and
cash equivalents. Before the Petition Date, the Debtors invested
the Funds in accordance with conservative guidelines with the
primary goal of protecting principal and the secondary goal of
maximizing yield and liquidity. Specifically, prior to the
Petition Date, the Debtors invested excess Funds generated by
their domestic operations in overnight commercial paper, short-
term repurchase agreements, mutual funds and overnight bank
deposits with Citibank, N.A., First Union National Bank, Calvert
Asset Management Company, and other depository institutions.
Similarly, excess monies generated by the Debtors' foreign
operations, which are periodically wired to concentration
accounts maintained by AMF's Foreign Subsidiaries in the United
Kingdom and/or a concentration account maintained by WINC in the
United States, are invested in overnight investment accounts at
various substantial and established financial institutions,
including, but not limited to, First Union National Bank.
To maximize the assets of the Debtors' estates, Stephen E. Hare,
Executive Vice President and Chief Financial Officer for AMF
Bowling Worldwide, Inc., says, it is desirable to maintain the
Funds in income-producing investments to the fullest extent
possible. Because of the need for liquidity in the operation of
the Debtors' businesses, however, these investments must be
primarily short-term in nature and generally only overnight.
Section 345 of the Bankruptcy Code governs a chapter 11 debtor's
deposit and investment of cash. Section 345(a) of the Bankruptcy
Code authorizes deposits or investments of money as "will yield
the maximum reasonable net return on such money, taking into
account the safety of such deposit or investment." 11 U.S.C.
Sec. 345(a). For deposits or investments that are not "insured
or guaranteed by the United States or by a department, agency or
instrumentality of the United States or backed by the full faith
and credit of the United States," section 345(b) of the
Bankruptcy Code provides that the estate must require from the
entity with which the money is deposited or invested a bond in
favor of the United States, secured by the undertaking of an
adequate corporate surety, unless the Court for cause orders
otherwise. 11 U.S.C. Sec. 345(b). In the alternative, the estate
may require that the entity deposit governmental securities
pursuant to 31 U.S.C. Sec. 9303.
By this motion and pursuant to section 345(b) of the Bankruptcy
Code, the Debtors seek authority to invest their cash in their
sole discretion in:
a. securities issued or directly and fully guaranteed by
the United States government or any agency thereof;
b. commercial paper of domestic corporations rated "A-2"
or higher by Standard & Poor's Corporation or rated "P
-2" or higher by Moody's Investor Services, Inc.;
c. interest-bearing certificates of deposit, time
deposits, bankers' acceptances, or overnight bank
deposits with a domestic commercial bank or other
financial institution having a combined capital and
surplus in excess of $100,000,000 and a long-term debt
rating on securities issued by them of A (or
equivalent), as listed by either Standard & Poor's or
Moody's;
d. repurchase agreements subject to the same requirements
of any of the foregoing; and
e. any funds (such as a mutual fund) investing in the
above described securities or commercial paper to the
extent that the fund holds investments in excess of
$100,000,000 and to the extent that the Debtors'
aggregate investment in such fund is less than 10% of
the total amount invested in that fund.
The proposed Investment Guidelines, Rachel Strickland, Esq., at
Willkie Farr & Gallagher, asserts, and the authority to continue
foreign investment practices, will enable the Debtors to
maintain the security of their investments, as required by
section 345 of the Bankruptcy Code, while at the same time
provide the Debtors with the flexibility they require to
maximize the yield on the investment and deposit of the Funds.
The Motion is well taken, Judge Tice finds, and it is granted in
all respects. (AMF Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service, Inc., 609/392-0900)
AML COMMUNICATIONS: Shares Subject To Nasdaq Delisting
------------------------------------------------------
AML Communications Inc. (Nasdaq:AMLJ) received notification of a
Nasdaq Staff Determination indicating that the Company had
failed to comply with the minimum public float market value
requirement for continued listing as required by Marketplace
Rule 4450(a)(2), and that its securities are therefore subject
to delisting from The Nasdaq National Market.
As permitted by Nasdaq rules, the Company has requested a
hearing before the Nasdaq Listings Qualifications Panel to
review the Staff's determination. A hearing date has not yet
been scheduled. The Company's securities will continue to be
listed pending the Panel's decision. However, there can be no
assurance that the Panel will grant the Company's request for
continued listing.
AML Communications is a designer, manufacturer and marketer of
amplifiers and related products that address the wireless,
defense microwave and optical communications markets. The
Company's Web site is located at http://www.amlj.com
AMPERSAND MEDICAL: Tucker Anthony Hired to Explore Alternatives
---------------------------------------------------------------
Ampersand Medical Corp. (OTC BB:AMPM), a developer of innovative
cancer-screening systems, announced it has retained Tucker
Anthony Sutro Capital Markets as its financial advisor.
Under the terms of the agreement, the full-service investment-
banking firm will furnish Ampersand with financial advisory
services including assistance in exploring financing
alternatives, strategic alliances and partnerships as well as
merger and acquisition-related initiatives.
"We are impressed with Ampersand's technologies and enthusiastic
about its progress to date," said Roger Kahn, Co-Head of Tucker
Anthony Sutro's healthcare practice. "We believe the company is
well positioned and has an excellent opportunity to serve a
large and virtually untapped international market. Tucker
Anthony Sutro is committed to helping innovative biotechnology
companies, like Ampersand, realize their financial objectives."
"Tucker Anthony Sutro is a major player in the biotechnology
space and an experienced partner leading capital market
activities for fast growing companies like Ampersand," said
Peter Gombrich, Ampersand chairman and chief executive officer.
"The firm's counsel will be invaluable in extending access to
potential partners and enable Ampersand to take advantage of
upcoming initiatives, including our prospective listing on the
American Stock Exchange. The addition of Tucker Anthony Sutro's
strategic perspective and advice complete another critical step
toward achieving our objective to bring cost-effective, highly
accurate screening for cervical and other cancers to the
worldwide market."
Among other roles, Tucker Anthony Sutro will identify and
introduce potential strategic and financial partners to
Ampersand and assist in structuring and negotiating any
transactions. It will also explore marketing and distribution
partners for Ampersand's unique technologies, including the
company's InPath(TM) System of using bio-molecular markers and
fluorescence to screen for cervical cancer.
Clinical trials of the InPath(TM) System are underway and the
company has said it is on track to begin to generate revenue
outside the U.S. by the end of the year. The company also has
issued its strategy for securing U.S. Food and Drug
Administration clearance through a series of product
submissions.
Ampersand Medical Corporation develops cost-effective, point-of-
care screening systems to assist in the early detection of
cervical, gastrointestinal and other cancers. The InPath(TM)
System is being developed to provide medical practitioners with
a highly accurate, low-cost, point-of-care cervical cancer
screening system. Other products include AIM 2000, an automated
system facilitating the analysis of medical samples and
SAMBA(TM) software suites used for medical image processing,
database and multimedia case management, telepathology and
teleradiology.
AMRESCO INC.: Discloses Credit Line Extension & Nasdaq Delisting
----------------------------------------------------------------
AMRESCO, INC. (Nasdaq: AMMBQ) has reached agreement with
Prudential Securities Credit Corporation to extend the maturity
date of its warehouse line to August 10, 2001.
In addition, the company has been informed by The Nasdaq Stock
Market, Inc. that the continued listing of the company's
securities is no longer warranted due to (i) concerns regarding
the residual equity interest of the existing and prospective
listed securities holders, (ii) the company's bankruptcy filing,
which raises public interest concerns under Marketplace Rules
4330(a)(1) and 4330(a)(3) related to the protection of
investors; and (iii) the company's failure to demonstrate its
ability to sustain compliance with all requirements for
continued listing on The Nasdaq National Market. Accordingly,
the Nasdaq Staff has determined to delist the company's
securities from The Nasdaq Stock Market at the opening of
business on July 26, 2001.
AMRESCO, INC. is a small and middle market business lending
company. Based in Dallas, AMRESCO has offices nationwide. For
more information about AMRESCO, visit the website at
http://www.amresco.com.
ARCH WIRELESS: Withdraws Exchange Offer Due To Weak Q2 Results
--------------------------------------------------------------
Arch Wireless, Inc. (OTC Bulletin Board: ARCH), one of the
leading wireless Internet messaging and mobile information
providers in the United States, announced the withdrawal of its
previously announced proposal to restructure its outstanding
debt and improve its liquidity through an exchange offer with
the holders of senior notes issued by Arch and its subsidiary,
Arch Wireless Communications, Inc., and the concurrent amendment
to its bank debt.
Arch cited lower than expected operating results during the
quarter ended June 30, 2001 as the reason for the withdrawal of
the proposal. The company said unexpected customer losses and
bad debt expense associated with Paging Network, Inc., which
Arch acquired in November 2000, was the primary reason for the
lower than expected operating results. Arch said it expects to
report a decline of 936,000 one-way units for the second quarter
that will negatively affect projected revenue and liquidity
through the remainder of 2001. The company said it expects to
report two-way net additions of 61,000 for the second quarter.
The company also said it expects to report net revenues of
approximately $292 million and Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) of approximately $78
million for the second quarter ended June 30, 2001, compared to
$316 million and $89.5 million, respectively, for the quarter
ended March 31, 2001. Arch expects to report second quarter
operating results on August 7th.
"Given the lower than expected operating results and their
impact on year- end liquidity, the proposed restructuring is not
feasible," said C. Edward Baker, Jr., chairman and chief
executive officer. "Accordingly," Baker added, "we have elected
to withdraw the registration statement which describes our
exchange offer and have discontinued the use of the financial
projections contained in the registration statement and those
disclosed in previous discussions with investors, including our
conference call with financial analysts held on May 1, 2001."
Arch is updating its business plan and projections to take into
account second quarter results. The company also will evaluate
its restructuring options when this update is complete. As
previously reported, Arch's financial results and lack of
additional sources of liquidity indicate that it may not be able
to continue as a going concern. Furthermore, as previously
reported, Arch expects to be in default under its secured credit
facility and under some series of its senior notes no later than
August 1, 2001, due to nonpayment of approximately $8.3 million
of interest on July 2, 2001, and the lenders under the secured
credit facility have notified Arch that they believe that Arch
is already in default for that reason. Arch's business and
prospects remain subject to the risks outlined in the withdrawn
registration statement, as well as in other reports filed with
the Securities and Exchange Commission.
About Arch Wireless
Arch Wireless, Inc., headquartered in Westborough, Mass., is a
leading two-way wireless Internet messaging and mobile
information company with operations throughout the United
States. The company offers a full range of wireless services to
both business and retail customers, including wireless e- mail,
two-way wireless messaging and mobile data, and paging through
five regional divisions. Arch's Business Solutions Group designs
wireless enterprise solutions for companies nationwide, while
the National Retail Group distributes Arch products and services
through leading U.S. retailers. Arch provides wireless services
to customers in all 50 states, the District of Columbia, Puerto
Rico, Canada, Mexico and in the Caribbean. Additional
information on Arch Wireless is available on the Internet at
http://www.arch.com.
BETHLEHEM STEEL: 2nd Quarter Conference Call Today at 2:00 p.m.
---------------------------------------------------------------
Bethlehem Steel (NYSE: BS) advises interested stockholders,
investors and others may listen to the company's second-quarter
conference call on Wednesday, July 25 at 2:00 p.m. EDT. The
call will follow the company's planned release of earnings that
same day and will cover second-quarter financial results and its
business outlook.
Duane Dunham, chairman, president and chief executive officer,
and Gary Millenbruch, vice chairman and chief financial officer,
will host the call.
Interested parties can visit the company's website at
http://www.bethsteel.comand click on the "Investor
Relations/Financial" button and then the "Quarterly Earnings
Conference Call" button.
Replays of the conference call will be available on Bethlehem
Steel's website for two weeks after the live broadcast.
Financial information, including earnings releases and other
investor-related material, is also available on the site.
Bethlehem Steel Corporation is the nation's second-largest
integrated steel producer, with revenues of about $4 billion and
shipments of nine million tons of steel products. Bethlehem's
13,300 employees work primarily in three major divisions --
Burns Harbor, Ind., Sparrows Point, Md. (with plate mills in
Coatesville and Conshohocken, Pa.), and Pennsylvania Steel
Technologies, Steelton, Pa. The corporation is a leading
supplier to the North American automotive and construction
industries, and is the largest supplier of plate products on the
continent.
Bethlehem Steel's first-quarter 2001 loss was $118 million on
$900 million of sales, eroding shareholder equity on the balance
sheet to $990.9 million at March 31, 2001.
BRIDGE INFORMATION: GECC Seeks Relief From Automatic Stay
---------------------------------------------------------
General Electric Capital Corporation asks Judge McDonald to
grant relief from the automatic stay or, in the alternative, for
adequate protection.
David A. Warfield, Esq., at Husch & Eppenberger, LLC, in St.
Louis, Missouri, relates that GECC is agent for the following
participants: Transamerica Equipment Financial Services
Corporation (Transamerica), Heller Financial Leasing, Inc.
(Heller), First Bank (First Bank), and Pilgrim Prime Rate Trust
(Pilgrim), called the Lessor Group.
The Lessor Group, according to Mr. Warfield, holds secured
claims against some of the Debtors. Under the Master Lease
Agreement dated March 1999, the Debtors owe the Lessor Group, as
of the Petition Date:
GECC $20,936,558
Transamerica 5,471,016
Heller 3,075,082
First Bank 3,435,081
Pilgrim 4,058,802
-----------
$36,976,539
To secure repayment, Mr. Warfield notes, the Lessor Group holds
a valid perfected first priority lien on:
(i) certain computer and other high technology equipment,
including servers and other similar type equipment, which is
indispensable to the Debtors' day-to-day operations, and
(ii) an assignment of Bridge Information America's
interest in a Sublease Agreement dated February 18, 2000 by and
between Savvis Communications Corp. and Bridge Information
America, including the right to receive all rental and other
payments.
Bridge does not contest the amount owed or challenge the
validity, extent or priority of the Lessor Group's liens.
Mr. Warfield contends that the Lessor Group's interests in the
Collateral are not adequately protected because since Petition
Date, the Debtors have made no payments to the Lessor Group nor
offered them adequate protection for their interest in the
Collateral. When the Debtors have solicited bids for the sale
of substantially all of their assets, Mr. Warfield notes, they
did not inform the Lessor Group of the portion of the purchase
price that will be allocated to them.
The Lessor Group believes the Collateral is not necessary to an
effective reorganization, since the Debtors are now selling
their assets.
For these reasons, the Lessor Group requests the Court to enter
an order:
(a) granting the Lessor Group relief from the automatic
stay, thereby allowing the Lessor Group to exercise its
rights and remedies as secured creditors under the
Master Lease Agreement;
(b) directing that the Debtors surrender immediate
possession of the Lessor Group Collateral to the Lessor
Group;
(c) stating that no part of the costs of this proceeding be
charged against the Lessor Group or against the Lessor
Group Collateral;
(d) authorizing the Lessor Group to apply the proceeds from
any sale of the Lessor Group Collateral, plus attorney's
fees and expenses incurred to the date of such sale, to
its claim, and ordering that the Lessor Group's claim be
allowed against Debtors in the amount of any
deficiencies; and
(e) granting the Lessor Group such other and further relief
as may be necessary to protect its interests in the
Lessor Group Collateral.
But if Judge McDonald refuses to grant them relief from
automatic stay, the Lessor Group seeks adequate protection
equivalent of its interests in the Collateral on the Petition
Date.
Mr. Warfield states that Bridge still has possession of the
Lessor Collateral and even uses it in its day-to-day business
operations. Meanwhile, the Collateral will depreciate in value
by the mere passage of time thereby adversely affecting the
Lessor Group's interests.
Because of this, the Lessor Group requests Judge McDonald to
enter an order requiring that:
(a) the Debtors pay to the Lessor Group such amounts and
take such other steps as will adequately protect the
Lessor Group against the decline in value of the Lessor
Group Collateral during the pendency of the automatic
stay;
(b) the Debtors obtain and keep in force adequate insurance
of the Collateral, with the Lessor Group named as the
loss payee thereof, evidence of which shall be provided
to the Lessor Group;
(c) the Debtors cooperate and provide assistance to enable
the Lessor Group to inspect the Collateral and the
Debtors' books and records at any time and from time to
time as the Lessor Group shall reasonably elect to
insure compliance with this Court's order; and
(d) if the Debtors fail to comply with respect to any order
of this Court relating to the Lessor Group Collateral,
the Lessor Group shall immediately have all the rights
and remedies granted to it by its loan documents, and
such other and further relief as will provide the Lessor
Group with the indubitable equivalent of its interests
in the Lessor Group Collateral.
The Debtors Object
The Debtors ask Judge McDonald to deny GECC's Motion for relief
from automatic stay.
Gregory D. Willard, Esq., at Bryan Cave LLP, in St. Louis,
Missouri, relates that the DIP Order provides for the adequate
protection of the Lessors' interests. However, Mr. Willard
says, the DIP Order does not contemplate the making of payments
to either of the Lessors or other secured lenders.
Mr. Willard reminds Judge McDonald that Debtors conducted an
auction for the sale of its businesses, where Reuters emerged as
highest bidder. Although the Lessor Group submitted credit bids
for the equipment, Mr. Willard tells Judge McDonald, their bids
were rejected in favor of accepting Reuters' bid. Another
reason for the rejection was the Lessor Group's non-compliance
with the credit requirements of Standing Order #4, Mr. Willard
adds.
Mr. Willard discloses that the Debtors intend to segregate a
portion of the Reuters' sale proceeds in the amount of the
Lessors' combined asserted secured claim. This, Mr. Willard
says, should adequately protect the Lessors.
Contrary to the Lessor Group's claim, Mr. Willard contends that
the equipment is necessary to the Debtors' plan of
reorganization because a liquidation of assets can constitute a
reorganization. Without the inclusion of the equipment, Mr.
Willard notes, the auction's principal bidders would not have
valued the remaining assets as highly as they did. (Bridge
Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service,
Inc., 609/392-0900)
CENTRAL EUROPEAN: Robert Burke Is New Chief Operating Officer
-------------------------------------------------------------
Central European Media Enterprises Ltd. (CME) (OTCBB:CETVF.OB)
has appointed Robert E. Burke as Chief Operating Officer. Mr.
Burke, who has over 20 years of experience in managing
international TV operations, spent the bulk of his career at the
Worldwide Television News (WTN) division of ABC, Inc. He will
oversee the day to day operations of CME's broadcasting group,
which spans Romania, Slovenia, Slovakia and Ukraine.
Fred T. Klinkhammer, CME's President and Chief Executive
Officer, stated: "Robert Burke is a perfect fit for CME and he
joins us at an optimal time. We have developed a highly
efficient broadcasting group, with all of our stations posting
positive cash flow results during the past year. With our
leading market shares, there can no longer be any doubt that we
are the leader in these emerging markets. Given our operational
and financial progress, we believed it was time to strengthen
our management team to capitalize on the strength of our
stations. CME will benefit from Robert's unique leadership in
managing profitable international TV operations in developing
markets. We look forward to working with Robert, in finding ways
to capitalize on the enormous value of our partner stations'
news gathering capabilities, programming libraries ad impressive
production skills."
Mr. Burke commented, "CME is a very unique vehicle with a
portfolio of assets that can not be duplicated easily.
Management has succeeded in transitioning each of the company's
stations to profitability during a difficult economic period
across Central and Eastern Europe. As market leaders, CME's
stations are positioned to benefit over the long-term as
advertisers seek to penetrate these developing regions. I am
excited about the opportunity to participate in the continued
growth of the company and to bring high quality content to
millions of viewers in these young commercial TV markets."
Mr. Burke, 49, served in various capacities at the Worldwide
Television News Division of ABC, Inc., including: President and
CEO from 1995-1998, President and COO from 1992-1994, Executive
Vice President from 1989-1992 and Vice President, News from
1985-1989. Until its sale in 1998, WTN was the leading and only
profitable international television news group, serving
customers in 125 countries. Mr. Burke was instrumental in
successfully expanding and diversifying WTN's
operations, including establishing WTN as the top-ranked news
programming provider in Central and Eastern Europe following
media deregulation. Mr. Burke began his career in 1980 as a
reporter and producer with ABC News.
Central European Media Enterprises Ltd. (CME) is a TV
broadcasting company with leading stations located in Romania,
Slovenia, Slovakia and Ukraine. CME is traded on the Over the
Counter Bulletin Board under the ticker symbol "CETVF.OB".
COMDISCO INC.: Selling Availability Solutions Division
------------------------------------------------------
Comdisco, Inc.'s technology services division -- referred to as
the Availability Solutions Business -- is one of the world's
largest providers of business continuity and availability
services, developing and implementing plans designed to keep
businesses running through any kind of disruption. The
Availability Solutions Business is predominately an "insurance"
type of business. The Debtors provide disaster recovery
services, data storage services and other services necessary to
insure that a company can operate and have access to all
necessary data and technology. The Availability Solutions
Business maintains 46 Technology Service Centers worldwide, has
more than 3,000 customers and more than 8,000 contracts, with
operations throughout the world including in the U.S. and
France. While the Availability Solutions Business is a
fundamentally strong business, Comdisco CEO Norman P. Blake,
Jr., explains, Comdisco's overall financial condition has caused
some concern among customers who depend on the Company's
critical services and has hampered the growth prospects of this
business unit.
While the Availability Solutions Business remains a worldwide
industry leader, Mr. Blake says, Comdisco's current financial
condition has put a strain on future growth. In light of the
critical nature of the services provided, the Company concludes
that a prompt sale of the business is necessary to avoid value
erosion. A sale to a solid, financially strong party, the
Company suggests, will provide some stability to prevent
business deterioration during this process, the overall value of
the Availability Solutions Business will be maintained, and that
value will be maximized for the benefit of Comdisco and its
creditors.
Jack Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom,
argues that a sale of substantially all of a debtor's assets
should be authorized pursuant to 11 U.S.C. Sec. 363 if a sound
business purpose exists for doing so. The Debtors have sound
business justifications for selling the Availability Solutions
Business at this time. The immediate consummation of the Sale
is the best way to preserve the enterprise value of the
Availability Solutions Business, and maximize the Debtors'
estates for the benefit of all constituencies. Delaying the
Sale of the Availability Solutions Business undoubtedly will
result in a loss of value of the Availability Solutions
Business. Preservation of enterprise value is a compelling
circumstance and maximization of asset value for the benefit of
all creditors is a sound business purpose, warranting
authorization of the Sale.
Accordingly, by this Motion, Comdisco seeks approval of its
business decision to sell the Availability Solutions unit to the
Purchaser advancing the highest and best offer in a competitive
bidding process.
The Debtors note that, as part of the Sale Motion, they will
seek authority to assume and assign various Assumed Contracts to
the Successful Bidder. With respect to the Assumed Contracts,
the Debtors intend to file a list of those Assumed Contract a
the relevant cure amount with the Court prior to the Sale
Hearing and serve notice on each know party to an Assumed
Contract. The Debtors indicate that they will present facts at
the Sale Hearing to show the financial credibility, the
willingness, and the ability of the Purchaser perform under the
Assumed Contracts. (Comdisco Bankruptcy News, Issue No. 2;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
DANKA BUSINESS: Raises $290 Mil From Unit Sale To Pitney Bowes
--------------------------------------------------------------
Danka Business Systems PLC completed the sale of Danka Services
International to Pitney Bowes Inc. for $290 million in cash. $5
million of this amount was set aside in an escrow account to be
paid as a post-closing adjustment to either the Company or
Pitney Bowes following the preparation of an audited balance
sheet of DSI within 90 days of June 29, 2001 to determine DSI's
net assets as of the closing date. The Company's shareholders
approved the sale at an Extraordinary General Meeting on June
29, 2001. DSI was the Company's facilities management and
outsourcing business. The Company and Pitney Bowes also entered
into agreements for the Company to provide services and supplies
to Pitney Bowes on a worldwide basis for an initial term of two
years. The sale of DSI was made pursuant to an asset purchase
agreement dated April 9, 2001.
DICOM IMAGING: Enters Into Loan & Security Pact With Torchmark
--------------------------------------------------------------
Dicom Imaging Systems, Inc. (OTCBB: DCIM) has pledged
substantially all of its assets in return for receiving
additional funding and a restructuring of previous loans from
the company's principal shareholder, Torchmark Holdings Ltd. The
terms of the loan include additional funding of $100,000 and a
restructuring of a series of previous loans totaling $906,105.
This brings the total indebtedness of the Company to Torchmark
to $1,006,105. Concurrent with the loan and the restructuring of
old debt, Dicom has purchased the source code and other assets
related to its dental imaging software products, which it
previously licensed from Torchmark, for 5,032,653 shares of
Dicom common stock. As a result, Torchmark now owns
approximately 51% of Dicom's voting securities.
Commenting on the loan, David Gane, Dicom's Chief Executive
Officer, said "Obtaining sufficient cash flow to sustain our
operations for the summer and restructuring our old debt is a
significant development for Dicom. This loan enables us to
continue our operations until September and gives us additional
time to seek additional financing, or locate a strategic partner
with which to move our business plans forward. Though the loan
is short-term and due for repayment on September 3, 2001, we are
pleased about this additional commitment from Torchmark.
"Similarly, we feel that acquiring the source code and its
related intellectual property was the correct strategic decision
and opens up additional options for the Company. Given the
difficult financial circumstances surrounding Dicom, the Board
has determined that these transactions with Torchmark are the
best way to attempt to maximize shareholder value. In the event
that Dicom is unable to achieve its business goals in a timely
fashion the Board will be forced to review its available
options."
Dicom Imaging Systems, Inc. is a provider of DICOM (Digital
Imaging Communications in Medicine) compliant imaging software
to the dental industry. Dicom intends to set the standard of
DICOM compliance in the dental arena by selling copies of its
Dental Imaging Suite to dental professionals, laboratories,
educational facilities and dental equipment manufacturer and
dealers, through direct mail and through partnering
arrangements. For more information, visit Dicom's web site at
http://www.dicom-image.com
EXCALIBER TUBULAR: Files Chapter 11 Petition in St. Louis, Mo.
--------------------------------------------------------------
Excaliber Tubular Corp., a Ballwin, Missouri-based steel-pipe
company filed for chapter 11 bankruptcy protection on Wednesday
in the U.S. Bankruptcy Court in St. Louis, according to the St.
Louis Post-Dispatch. The company, which wants to sell its
businesses to pay off its creditors, blames the fall in steel
prices for the filing. Excaliber reported up to $100 million in
total liabilities, surpassing the estimated liquidation value of
about $42 million for the companies. Judge Barry Schermer set a
hearing date of Aug. 30 to consider approving sales of the
companies.
Two of the larger creditors are Jackson Tube Service of Piqua,
Ohio, which is owed $1.5 million and Worthington Steel Co. of
Charlotte, N.C., which is owed $524,330. One local creditor is
Penske Truck Leasing Co. of Chesterfield, Mo., which is owed
$110,688. (ABI World, July 23, 2001)
EXCALIBER TUBULAR: Chapter 11 Case Summary
------------------------------------------
Lead Debtor: Excaliber Tubular Corporation
15480 Clayton Road
Suite 300
St. Louis, MO 63011
Debtor affiliates filing separate chapter 11 petitions:
Excaliber Holding Corporation, et al.
Cambridge Metals & Plastics, Inc.
Excaliber Transportation Company, L.L.C.
Excaliber Tubular-Seymour Division, LLC.
Form Tech Steel Company, L.L.C.
Metal Prep Company, L.L.C.
National Tube Form Company, L.L.C.
Chapter 11 Petition Date: July 18, 2001
Court: Eastern District of Missouri (St. Louis)
Bankruptcy Case Nos.: 01-47943 through 01-47950
Judge: Barry S. Schermer
Debtors' Counsel: Gregory D. Willard, Esq.
Bryan Cave, Esq.
One Metropolitan Sq.
211 N. Broadway, Ste. 3600
St. Louis, MO 63102-2750
314-259-2000
GLENEX INDUSTRIES: Board Endorses Liquidation Plan
--------------------------------------------------
The board of directors of Glenex Industries Inc. will be
recommending to the members at the Annual and Special Meeting of
the Company called for September 28, 2001 that the Company be
voluntarily liquidated and wound-up pursuant to Section 267 of
the BC Company Act. The Company was designated an "Inactive
Issuer" by the Canadian Venture Exchange in July 2000.
The Company has a significant shareholder and it is the opinion
of the directors that the support of this shareholder is
required to carry any special resolution needed to effect a
reactivation of the Company. Over the past eighteen months
management and the directors have considered a number of new
business opportunities for the Company, none of which has
received the support of this shareholder. The shareholder has
indicated to management that it will support a resolution
calling for the liquidation of the Company. Accordingly, the
directors believe such action to be in the best interests of all
the shareholders.
For the fiscal year ended March 31, 2001, the Company reports a
net loss of $158,469 (2000 - loss of $1,361,612). As at March
31, 2001, shareholders' equity was approximately $4.2 million.
Total debt aggregated $100,228 and cash and highly liquid
marketable securities aggregated approximately $3.15
million.
GUNTHER INTERNATIONAL: Recapitalization Agreement Eases Struggle
----------------------------------------------------------------
Gunther International Ltd.'s net loss for fiscal year 2001 was
$(284,000), compared to $(759,000), for fiscal year 2000.
Operating income for fiscal year 2001 was $574,000, compared to
an operating loss of $(168,000) for fiscal year 2000.
For fiscal 2001 and 2000, the Company incurred net losses of
$(284,076) and $(758,883), respectively. For fiscal year 2001,
cash of $744,304 was provided by operations while in fiscal year
2000 cash used for operations was $1,083,901. At March 31, 2001,
the Company had a deficiency in working capital of $519,049 and
a stockholders' deficit of $3,254,827. At March 31, 2001,
backlog for high-speed assembly system and upgrade orders,
consisting of total contract price less revenue recognized to
date for all signed orders on hand, was $1.3 million as compared
to $4.2 million at March 31, 2000.
The Company's primary need for liquidity is to fund operations
while it endeavors to increase sales and achieve consistent
profitability. Historically, the Company has derived liquidity
through systems and maintenance sales (including customer
deposits), financing arrangements with banks and other third
parties and, from time to time, sales of its equity securities.
In June 2001, the Company entered into the Recapitalization
Agreement. The Recapitalization Agreement provides that the
Company will effectuate a registered public offering ("Rights
Offering") of up to 16,000,000 shares of its common stock to its
existing stockholders by subscription right on a pro-rata basis
at a subscription price of $0.50 per share. The net proceeds of
the Rights Offering (a minimum of $7 million less offering
expenses), will be used to repay in full the notes payable to
Gunther Partners LLC ($4.5 million) and to the Stockholder and
Director ($500,000), to purchase all notes payable to the Estate
for a total of $500,000 and to purchase 919,568 shares of the
Company's common stock held by the Estate for $137,935. The
balance of the net proceeds from the Rights Offering will be
used for general working capital purposes.
On a going forward basis, management believes that the working
capital provided by the Rights Offering and cash generated from
operations will be sufficient to meet the Company's cash flow
needs for the next fiscal year. The Company's cash needs may be
affected by a number of factors, however, many of which are
beyond the control of management. Thus, there can be no
assurance that the Company will not need significantly more cash
than is presently forecasted by management or that the Company's
current and expected sources of cash will be sufficient to fund
the Company's ongoing operations.
HARNISCHFEGER: Beloit Settles Preference Claim for 10% Payment
--------------------------------------------------------------
Beloit Corporation has a claim to avoid transfers pursuant to 11
U.S.C. section 547, and to recover property transferred pursuant
to 11 U.S.C. section 550 against The Relocation Center
(Creditor) in the gross amount of $892,950.46. A dispute exists
over this Preference Claim. Also, Creditor has filed claims
against the Debtors seeking amounts allegedly owed to it by the
Debtors before the petition date of June 7, 1999. These pre-
petition claims were the subject of the Debtors' Eighty-Sixth
Omnibus Objection to Claims.
To resolve the Preference Claim and the Pre-petition claims,
Creditor and Debtor have reached a Settlement Agreement under
which Creditor will pay $89,941.41 to Beloit as Settlement
Payment.
Specifically about the Preference Claim, the Creditor argues
that approximately $691,000 of the initial gross demand made
upon it are not preferential transfers within the meaning of
section 547, but represent monies transferred to Creditor as a
mere conduit to a separate third party, and that with respect to
these monies, Creditor may not be an "initial transferee" as
defined in section 550 of the Code. In light of this, the
Debtor's initial demand is reduced to approximately $200,000.00.
With respect to the remaining dollar value demanded, Creditor
has asserted an ordinary course defense. In light of this and
the financial statements of Creditor, as well as the affidavit
filed by the President of Creditor, Mr. Paul Haislmaier,
substantiating Creditor's claims of economic duress, the Debtor
believes that the Settlement Payment is both fair and
reasonable. (Harnischfeger Bankruptcy News, Issue No. 45;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
HORIZON PHARMACIES: Files Chapter 11 Petition in N.D. Texas
-----------------------------------------------------------
HORIZON Pharmacies, Inc. (Amex: HZP) (Frankfurt: HPZ) has filed
a voluntary petition for Chapter 11 relief in the United States
Bankruptcy Court for Northern District of Texas, Dallas
Division. Voluntary petitions and requests for joint
administration were also filed on behalf of three subsidiaries
of the Company, Horizon Home Care, Inc., HorizonScripts.com,
Inc. and Jones Low Priced Drugs, Inc. The Company also announced
that concurrent with the Chapter 11 filing, it had closed a $2
million debtor-in-possession (DIP) line of credit with its
senior lender, McKesson HBOC, Inc.
The Company intends to utilize the Chapter 11 process to conduct
an orderly sale of its retail pharmacy operations. Motions are
being filed with the Bankruptcy Court to seek a schedule of
bidding and an auction process. HORIZON expects cooperation from
its major creditors, McKesson HBOC, Inc. and AmeriSource
Corporation in order to ensure continued operations of all
of HORIZON pharmacies until a sale or sales are approved and
confirmed by the Bankruptcy Court. HORIZON will continue to
provide its unique prescription and front-end store services to
its customers in its 43 retail locations pending action by the
Bankruptcy Court.
HORIZON is a consolidator of independent pharmacies located in
small towns that was intended to amass sufficient size so that
such pharmacies could enjoy pricing and technology systems of
larger pharmacy chains. Failure to achieve critical mass in its
consolidation of independent pharmacies, system integration
issues, and a liquidity crisis culminated in the Company being
forced to seek bankruptcy protection.
HORIZON is a "brick and click" pharmacy company with over one
million customers that owns and operates 43 retail pharmacies in
16 states, 16 home medical equipment locations, five closed-door
institutional pharmacies, seven intravenous (IV) operations, one
Internet pharmacy and mail order pharmacy at
http://www.horizonscripts.com
HORIZON PHARMACIES: Chapter 11 Case Summary
-------------------------------------------
Lead Debtor: Horizon Pharmacies, Inc.
531 W. Main St.
Denison, TX 75020
Debtor affiliates filing separate chapter 11 petitions:
Horizon Home Care, Inc.
Horizonscripts.com, Inc.
Jones Low Priced Drugs, Inc.
Chapter 11 Petition Date: July 23, 2001
Court: Northern District of Texas (Dallas)
Bankruptcy Case Nos.: 01-35987, 01-35990, 01-35992 and 01-35993
Judge: Robert C. McGuire
Debtors' Counsel: I. Richard Levy, Esq.
Gerard, Singer & Levick
16200 Addison Rd., Suite 140
Addison, TX 75001
972-380-5533
HUDSON RESPIRATORY: S&P Downgrades Credit Ratings To B & CCC+
-------------------------------------------------------------
Standard & Poor's lowered its ratings on Hudson Respiratory Care
Inc. (see list below). All ratings remain on CreditWatch with
negative implications, where they were placed Sept. 20, 2000,
following Hudson's announcement that it would acquire the
Sheridan line of endotracheal tubes from Tyco International Ltd.
This acquisition put additional constraints on the company's
financial flexibility.
The downgrade and continued CreditWatch listing reflect Standard
& Poor's heightened concern relating to Hudson's ability to
improve its financial flexibility. While Hudson has made its
April 2001 subordinated bond interest payment, the company's
financial performance has suffered due to difficulties
implementing and integrating an Enterprise Resource Planning
computer system. Moreover, Hudson has not yet filed its 10-K for
the year ended Dec. 31, 2000, as a result of these
implementation issues.
Temecula, Calif.-based Hudson is a leading manufacturer of niche
disposable respiratory-care and anesthesia products. Standard &
Poor's will monitor developments and will meet with management
to review the company's plans for bolstering its credit profile
before taking further rating action.
Ratings Lowered and Remaining on Creditwatch
With Negative Implications
To From
-- ----
Hudson Respiratory Care Inc.
Corporate credit rating B B+
Subordinated debt CCC+ B-
Bank loan B B+
IMPERIAL SUGAR: Committee Objects To 37 Claims By US Trust Co.
--------------------------------------------------------------
The Official Committee of Equity Security Holders of Imperial
Distributing, Inc. and the other Debtors, represented by Ian
Connor Bifferato of the Wilmington firm of Bifferato, Bifferato
& Gentilotti, objects to 37 proofs of claim filed by The United
States Trust Company of New York as successor indenture trustee.
The Committee asserts that each of these 37 claims are
identical, each seeking an amount of $264,286,457, including
prepetition interest. The stated basis for these claims is a
1997 guarantee of 9-3/4% Senior Subordinated Notes Due 2007.
Each of these claims are duplicates of the other and should be
disallowed.
Further, the claims should be disallowed as being unenforceable
against the Debtors. The Equity Committee is informed and
believes that Lehman Brothers, a member of the Ad Hoc
Bondholders' Committee, and the current chairman of the Official
Unsecured Creditors' Committee in these cases, purchased over
$90 million of these notes in face value at a deep discount
prior to May 31, 2000. The Equity Committee has not been able
to determine the exact amount of debt held by Lehman Brothers
or the exact amount paid because neither the Unsecured
Creditors' Committee, Lehman Brothers, nor the Ad Hoc
Bondholders' Committee has responded to formal and informal
discovery requests for this information.
Lehman Brothers purchased its claim against Imperial at a deep
discount while one of its partners, Jack Lentz, sat on
Imperial's Board of Directors. The Committee says that
applicable case law requires disallowance of a claim based on
such a purchase, citing In re Papercraft Corp., 160 F.3d 982
(3rd Cir. 1998), Kohls v. Duthie, 2000 WL 1041219 (Del Chapter
2000), and Brown v. Presbyterian Ministers, 484 F.3d 382 (3rd
Cir. 1998), holding generally that the opportunity to purchase
corporate debt of an insolvent entity is a corporate opportunity
of which a director may not avail itself without breaching its
fiduciary duties. Thus, to the extent that the claims are
asserted on behalf of Lehman Brothers, they should be disallowed
because the portion of the claims attributable to Lehman
Brothers' notes is unenforceable against the Debtors under
applicable law.
The Indenture Trustee bears the burden of putting forth evidence
sufficient to support its claims. Although the Indenture Trustee
has disclosed a total figure for its claims and stated that the
figure includes prepetition interest, it has not disclosed the
total principal amount due, the total prepetition interest due,
and how these amounts were calculated. Accordingly, the
Indenture Trustee has failed to meet its burden and its claims
should be disallowed on this basis.
The claims should also be disallowed because under Fed R Bankr
Pro 2019, every indenture trustee must file a "verified
statement" setting out the facts relevant to the claims and the
basis for the Indenture Trustee's authority to act. As of the
date of the objection, the Indenture Trustee has filed no such
statement. Either on its own motion, or on the motion of a
party, the Court may determine whether the indenture trustee has
complied with Fed R Bankr Pro 2019, and may hold invalid any
authority, acceptance, rejection or objection given, procured,
or received by the indenture trustee. Since the Indenture
Trustee's authority to file these claims is invalid, the claims
should be disallowed.
The Equity Committee's objections to these claims is not a
waiver of any of the Committee's other bases for objection to
the claims, and the Committee expressly reserves the right to
amend this objection and assert other grounds for objection as
may be appropriate. (Imperial Sugar Bankruptcy News, Issue No.
7; Bankruptcy Creditors' Service, Inc., 609/392-0900)
INTEGRATED HEALTH: Ventas Demands Payment Of Administrative Rent
----------------------------------------------------------------
Ventas, Inc. and its affiliate, Ventas Realty, Limited
Partnership seek the Court's order pursuant to section 365 of
the Bankruptcy Code
(1) compelling Integrated Health Services, Inc. to comply with
their postpetition obligations under the Shadow Mountain
Lease and section 365(d)(3) of the Bankruptcy Code; and
(2) allowing the Ventas Entities an administrative rent claim
for rent and other charges due and payable under the Lease
for the Shadow Mountain Nursing Home located at 5659 Duncan
Drive, Las Vegas, Nevada, in an amount currently totaling
$296,497.68, plus late fees and other charges accruing after
May 11, 2001.
Ventas tells the Court that one of the entities obligated to pay
rent on the Shadow Mountain Facility is IHS Naples. Ventas
complains that the Debtors have changed course with regard to
whether IHS Naples is a debtor in such a way as to avoid paying
rent under the Shadow Mountain Lease. When Ventas sought
administrative rent in the IHS chapter 11 cases, they said IHS
Naples is not a Debtor in these proceedings but when Ventas took
IHS Naples to the Nevada State District Court of Clark County,
they said IHS Naples was entitled to protection of the automatic
stay, the movant complains.
Whether IHS Naples is a debtor in these proceedings or not, the
IHS Debtors are liable to Ventas Entities for their use and
benefit of the Shadow Mountain Facility, Ventas asserts. Since
the Debtors control IHS Naples and have ignored its corporate
form in their dealings with the Ventas Entities, and caused IHS
Naples to default on the Shadow Mountain Lease rent obligations,
the Debtors are liable to the Ventas Entities for IHS Naples'
debts, Ventas represents. By treating IHS Naples as a mere
instrumentality, and ignoring and manipulating the corporate
form in order to hinder and delay creditors of IRS Naples,
Ventas argues, the Debtors are liable for the lease obligations
of IHS Naples.
Background
(A) About the Lease
The Shadow Mountain Lease was entered by Hillhaven, Inc. (as
landlord) and Toomey Corporation (as tenant).
Subsequently, Hillhaven, Inc. transferred title of the Facility
by deed to First Healthcare Corporation ("FHC"). On the tenant's
side, Toomey Corporation amended its articles of incorporation
to change its name to Shadow Mountain Transitional Care Center
and Rehabilitation (the "Shadow Mountain Corporation").
Later, IHS Naples assumed the rights and obligations of Shadow
Mountain Corporation under the Shadow Mountain Lease, pursuant
to a Landlord Consent and Agreement. The Shadow Mountain
Corporation remained primarily liable on the lease.
Finally, in September 1998, FHC transferred its interest in the
Facility to Ventas by deed, and Ventas transferred its newly
acquired interest in the Facility to VRLP with Ventas as its
sole general partner.
The base term of the Shadow Mountain Lease is fifteen years.
Current Base Rent is $28,515.63 per month. Additional rent
includes "impositions, taxes, liens, charges or expenses ... in
connection with the ownership and operation" of the Facility,
and fine, penalty, interest, expense and cost which may result
from non-payment or late payment of such items.
(B) Is IHS Naples an IHS Debtor?
According to Ventas, "Initially, the Debtors took the
position that the Shadow Mountain Lease was with a Debtor
entity, and sought to reject the lease under section 365. [They
then] retreated from that position when the Ventas Entities
raised questions regarding the propriety of the rejection.
Indeed, [they] then took the position that IHS Naples is not a
debtor in these proceedings. Now, after the Ventas Entities
filed suit against IHS Naples in Nevada seeking damages for IHS
Naples' failure to pay rent, Debtors have reversed course again
and take the position that the automatic stay prevents any
further proceedings in the Nevada litigation. Despite the
earlier inconsistent representations by the Debtors regarding
IHS Naples' status, the Ventas Entities are willing to accept
IHS Naples' newly asserted role as a debtor in these
proceedings. As such, Debtors have an obligation to pay
administrative rent on the Shadow Mountain Facility."
Prior to September 2000, Debtors paid rent on the Shadow
Mountain Facility using checks drawn on accounts held in IHS
Inc.'s name, but since September 2000 they have stopped paying
rent on the Facility, Ventas tells the Court. As revealed by a
fax received from counsel for Debtors, Debtors simply decided to
take a "non-payment and non-responsive approach" to the Ventas
Entities' inquiries regarding the payment of rent on the Shadow
Mountain Facility, the landlord complains.
Ventas further informs the Court that the Debtors indeed removed
the patients from the Shadow Mountain Facility without notice to
the Ventas Entities; this was discovered when an officer of
Ventas made a visit to the Shadow Mountain Facility on March 15,
2001.
* * *
Ventas asserts that:
-- in any event, by now claiming the protections afforded
by the Bankruptcy Code with respect to the Shadow Mountain
Facility, the Debtors are obligated to perform under the Shadow
Mountain Lease until its rejection as may be authorized by the
Court.
-- the Ventas Entities are entitled to payment of all
postpetition rent and other charges due under the Shadow
Mountain Lease and the Debtors should be compelled to pay all
such amounts and to comply with all lease obligations under
Section 365(d)(3).
-- The rent and imposition payments for the months of
September, October, November, and December 2000 and January,
February, March, April and May 2001 are now overdue.
Thus, the Ventas Entities assert that they are entitled to
administrative rent in the amount of $296,497.68 plus late fees
and other charges accruing after May 11, 2001. The movant
accordingly ask the Court to direct the Debtors to pay such
claim within 10 days of the Court's order. (Integrated Health
Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service,
Inc., 609/392-0900)
INTERPOOL INC.: Fitch Cuts Senior Debt Ratings To Low-B's
---------------------------------------------------------
Interpool, Inc.'s senior secured bank loan, senior unsecured
debt, and preferred stock ratings were lowered to 'BBB', 'BBB-'
and 'BB+' from 'BBB+', 'BBB' and 'BBB-', respectively, by Fitch.
The preferred stock was issued by Interpool Capital Trust and is
guaranteed by Interpool. Approximately $672 million of public
securities and bank debt are affected by Fitch's actions. With
these rating actions, Interpool's ratings are removed from
Rating Watch Negative, where they were placed on July 28, 2000
following the company's announcement that it would purchase
Transamerica Finance Corp.'s (TFC) North American Intermodal
business for approximately $672 million in cash. The Rating
Outlook is Stable.
The rating changes were principally driven by Fitch's concern
that the evolution of the company's capital structure has
resulted in a heightened level of risk to unsecured bondholders.
Specifically, the proportion of unsecured debt and capital, as a
percentage of total capital has declined to 33.36% at Dec. 31,
2000 from 52.95% at Dec. 31, 1998. In a stable equipment price
environment, the mix between secured and unsecured debt would be
less of a concern. However, given the continued decline in new
container prices since 1996, unsecured debtholders may be
disadvantaged relative to secured lenders.
Interpool's financial leverage, defined as on-balance sheet debt
plus securitizations divided by adjusted equity, going forward
is expected to approximate 3.00x times (x), the high end of the
company's historic range of 2.50x-3.00x. Given the expansion of
Interpool's operating lease business since 1997 and moderate
capital formation, leverage in the low end of the targeted range
is more appropriate prior to the anticipated upswing in
container lease renewals commencing in 2002.
In addition to leverage, Fitch remains concerned about
Interpool's moderate profitability and the general operating
trends in the company's two principal business lines. Rating
strengths center on the company's improved market position and
balance in its container and chassis businesses, consistent cash
flow, acceptable capitalization, and demonstrated ability to
operate through several economic cycles.
The acquisition of the TFC business was a watershed transaction
for Interpool as it increased the company's size by nearly 23%
after asset divestitures. More importantly, however, was the
impact it had on strengthening Interpool's market position in
the domestic chassis sector, improving the balance in the
company's business and revenue mix, and providing additional
diversity in its customer base.
Tracing it roots to 1968 and based in Princeton, N.J.,
Interpool, Inc. through its subsidiaries is the largest lessor
of domestic chassis and the third largest lessor of marine
containers in the world.
JAM JOE: Case Summary & List of Largest Creditors
-------------------------------------------------
Lead Debtor: Jam Joe, L.L.C
3801 Kennett Pike
Wilmington, DE 19807
Debtor affiliates filing separate chapter 11 petitions:
Allle, L.L.C.
Dietz Enterprises, Inc.
Chapter 11 Petition Date: July 23, 2001
Court: District of Delaware
Bankruptcy Case Nos.: 01-02472 through 01-02474
Debtors' Counsel: Christopher S. Sontchi, Esq.
Ashby & Geddes
222 Delaware Ave., 17th Floor
Wilmington, DE 19801
(302) 654-1888
Debtor's Consolidated List of Creditors Holding Largest Claims:
Entity Nature Of Claim
------ ---------------
Commerce Bank, NA Secured Lender
Francis Testa $1,744,468
Cherry Hill, NJ
Dietz Enterprises Lender
David Dietz $250,000
3801 Kennett Pike
Wilmington, DE 19807
Cahill Electric Contractor
SPI Contractors Contractor
Financial Pacific Equipment Lease
Leasing
Lantford Sysco Equipment and Food
Wilmington Local Secured Lender
Development Corporation
United Capital Leasing Equipment Lease
Corp.
Brew Pub Group Investor Buy-out
Polar Mechanical Contractor
Childs Electric Contractor
Network Capital Alliance Equipment Lease
Shure-Line Electric Contractor
Connective Power Utilities
GE Corporate Plus Lender
Food Equipment Service Contractor
Universal Atlantic Systems Alarm Systems
Advanta Leasing Services Equipment Lease
GE Capital/Pacific Leasing Equipment Lease
Edward Don & Co. Small Ware
Leveraged Leasing Equipment Lease
LAIDLAW INC.: Paying Prepetition Trust Fund Taxes
-------------------------------------------------
Laidlaw Inc. sought and obtained an Order from Judge Kaplan
authorizing them, in their sole discretion, to pay up to
$1,500,000 of prepetition trust fund taxes. In the ordinary
course of their business, the Debtors collect certain taxes
which might be considered trust fund taxes, such as sales and
use taxes, which the Debtors hold for a period of time before
remitting them, as required, to appropriate taxing authorities.
The Debtors ask for Judge Kaplan's authorization to pay these
trust fund taxes collected prior to the Petition Date, but not
yet remitted by the Debtors to the applicable taxing authority,
to avoid serious disruption to their reorganization efforts that
would result from the nonpayment of such taxes, including the
distractions that would occur from liability for nonpayment
imposed on the Debtors' officers and directors.
The Debtors argue that the prepetition trust fund taxes that
have been collected are trust funds held in trust for third
parties, and as such are not property of the bankruptcy estate.
The Canadian debtors advise they are also seeking authorization
from the Canadian court to likewise pay the same types of
prepetition trust fund taxes. Because these funds are not
property of the bankruptcy estate, they will not otherwise be
available to the Debtors' estates or their creditors. Thus,
payment of the prepetition trust fund taxes will not adversely
affect the Debtors estates or their creditors, and the relief
requested is warranted.
In addition, many state and local taxing authorities impose
personal liability on the officers and directors of entities
responsible for collecting trust fund taxes to the extent that
such taxes are collected and not remitted. Thus, if any
prepetition taxes remain unpaid, the Debtors' officers and
directors may be subject to lawsuits or even criminal
prosecution on account of such nonpayment during the pendency of
these chapter 11 cases. Such lawsuits or proceedings obviously
would constitute a significant distraction for such officers and
directors at a time when they should be focused on the Debtors'
efforts to stabilize their postpetition business operations, and
develop and implement a successful plan of reorganization. The
Debtors advise Judge Kaplan they also believe that some of the
taxing authorities may cause the Debtors to be audited if the
prepetition trust fund taxes are not promptly paid. Such audit
would further divert attention and resources from the
reorganization process.
The Debtors advise they do not believe that they have any
outstanding and unpaid prepetition trust fund taxes, but file
this motion out of an abundance of caution, in view of the
importance of the relief requested, and ask for authority to pay
up to $1.5 million if owed. The Debtors represent that they have
sufficient cash reserves, together with their anticipated DIP
financing, to pay promptly any and all of their respective
remaining obligations for the prepetition trust fund taxes in
the ordinary course of their business.
Judge Kaplan agrees, and grants the Motion authorizing the
Debtors, in their sole discretion, to pay up to $1.5 million in
prepetition trust fund taxes if such appear to be owed. (Laidlaw
Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service,
Inc., 609/392-0900)
LUCENT: EBITDA & Net Worth Covenants Need Renegotiation
-------------------------------------------------------
Lucent Technologies (NYSE: LU) released third quarter results
yesterday -- $5.82 billion in revenue and a $1.89 billion loss.
Lecent is cutting costs. The work force has been reduced by
roughy 19,000 since January and another 15,000 to 20,000 workers
are slated for lay-off. Another 5,500 contractor positions have
been eliminated since January to further reduce spending. Lucent
is contracting its CapEx budget. Other cost-cutting measures
project reductions in annual operating expenses by an additional
$2 billion. Lucent's management sees a $7 billion to $9 billion
restructuring charge in the fourth fiscal quarter of 2001 related
to the headcount reductions, product rationalizations and the
associated asset write-offs. Approximately $2 billion of that
charge will be cash-related. That causes a problem.
Lucent's Bank Credit Agreements contain two negative covenants:
(1) Lucent covenants with its Bank Lenders that Consolidated
Net Worth will not drop below $23 billion at any point in
time; and
(2) Lucent covenants with the Bank Lenders that Consolidated
EBITDA will be no lower than the amount indicated in the
period indicated:
Minimum
Testing Period Consolidated EBITDA
-------------- -------------------
January 1, 2001 - March 31, 2001 -$1,525,000,000
January 1, 2001 -June 30, 2001 -$2,350,000,000
January 1, 2001 - September 30, 2001 -$2,350,000,000
July 1, 2001 - December 31, 2001 $ 335,000,000
July 1, 2001 - March 31, 2002 $ 75,000,000
July 1, 2001 - June 30, 2002 $1,400,000,000
October 1, 2001 - September 30, 2002 $2,200,000,000
January 1, 2002 - December 31, 2002 $2,600,000,000
The planned fourth quarter $7 to $9 billion restructuring charge
pushes Lucent over the edge. Accordingly, Lucent says, the
restructuring actions are "subject to amending certain portions of
the credit facilities secured in February." The time, date and
place for those conversations, no doubt, is already scheduled.
The Chase Manhattan Bank, is a lender under the Bank Credit
Facilities and serves as the Administrative Agent for syndicate
members drummed-up by Salomon Smith Barney Inc., in its role as
Syndication Agent.
MARINER POST-ACUTE: Moves To Transfer Monterey, Arizona Facility
----------------------------------------------------------------
Mariner Post-Acute Network, Inc. seeks to transfer operations of
the Monterey Care nursing home facility located at 3293 North
Civic Center Blvd., Scottsdale, Arizona 85251 by seeking the
Court's approval for:
(1) the Settlement Agreement by and between Yanke
Investment Partnership (the Landlord) and Debtor LCRM, as
current operator and tenant;
(2) the Operations Transfer Agreement by and among the
Landlord, the Replacement Operator, Monterey Care, Inc. and
LCRM;
(3) the rejection of certain executory contracts related to
the Facility;
(4) the assumption and assignment to Monterey of the
Medicare provider agreement (no. 03-5059) between LCRM and the
Health Care Financing Administration (HCFA).
The Lease between the Landlord and LCRM have been rejected by
operation of law puruant to section 365(d)(4) of the Bankruptcy
Code. The Debtors seek the relief requested in this motion to
enable the parties to conduct an orderly transition of
operations at the Facility, thereby minimizing the Landlord's
damages and the costs of exiting the Facility, while at the same
time minimizing or avoiding any disruption in patient care.
The Settlement Agreement
The material provisions of the proposed Settlement Agreement
will generally provide for:
(a) Payment of all rent and real property taxes (including
penalties and interest) due under the Lease from the Petition
Date through April 30, 2001; provided, however, that such
payments will thereafter be only $1.00 per month until July
31, 2001;
(b) If the transfer of operations at the Facility has not
occurred by July 31, 2001, or a later date mutually agreed upon,
then LCRM may proceed to close the Facility in accordance with
applicable law, and no administrative rent will be payable
during this period so long as LCRM is diligently pursuing
closure of the Facility; and
(c) A waiver of any and all other claims of the Landlord
against LCRM.
The Operations Transfer Agreement
The material provisions of this provide for:
(a) The transfer to the New Operator of the furniture,
fixtures, equipment including, to the extent owned, computer
hardware and software to the Landlord, and the supplies, the
name "Monterey Nursing Center" to Monterey, free and clear of
liens and encumbrances, for and in consideration of $24,000 paid
by Landlord;
(b) The orderly transfer of Patient Trust Fund accounts;
(c) The coordination of final cost reports;
(d) The employment by the New Operator of at least two-
thirds of LCRM's employees at the Facility as of the Closing
Date, thereby avoiding any WARN Act and severance claims which
might otherwise be asserted if the Facility were to cease
operations;
(e) The assumption by Monterey of certain group health care
obligations;
(f) The reconciliation of future amounts received from the
collection of accounts receivable;
(g) The assumption by Monterey of claims of employees for
earned vacation time and sick pay as a result of the payment of
such amounts to Monterey by LCRM;
(h) Prorations as of the Closing Date;
(i) The transfer of patient records and financial data; and
(j) The assumption or rejection of certain executory
contracts.
Assumption And Assignment Of
The Medicare Provider Agreement
As part of the Operations Transfer Agreement, LCRM proposed to
assume and assign to the New Operator the Medicare Provider
Agreement between LCRM and HCFA relating to the Facility on
terms substantially similarly to those for the Arden Facility.
Rejection of the Service Contracts
Because LCRM intends to cease doing business at the Facility,
the service contracts related to the Facility will be
unnecessary and burdensome to LCRM's estate upon the Closing
Date. LCRM and the Landlord have agreed that LCRM is not and
will not be obligated to assume or assign the Service Contracts,
except as designated by Monterey. (Mariner Bankruptcy News,
Issue No. 15; Bankruptcy Creditors' Service, Inc., 609/392-0900)
McCLENDON TRANSPORTATION: Losses Raise Going Concern Doubts
-----------------------------------------------------------
Robinson, Grimes & Company PC, auditors for McClendon
Transportation Group, Inc. have issued a "going concern"
statement regarding the Company. In saying that the Company has
experienced recurring operating losses resulting in significant
negative stockholders' equity the auditors indicate that these
conditions raise substantial doubt about McClendon
Transportation's ability to continue as a going concern.
Management is said to be working with its primary lenders to
monitor the status of its indebtedness and is currently
evaluating methods to reduce costs and improve operating
results. In addition, the Company has renegotiated certain debt
obligations with Navistar Financial Corporation and Columbus
Bank & Trust Company, that are expected to further reduce its
outstanding indebtedness through a combination of forgiveness
and equity conversion.
If the Company is unsuccessful in its efforts, it may be
necessary to undertake such other actions as may be appropriate
to preserve asset value. In the years ending December 31, 2000,
1999, and 1998, respectively, the Company had revenues of
$40,324,396, $48,671,565, and $61,748,800. On those revenues, in
each of the three years respectively, the net losses were
$(2,020,324), $(592,699), and $(3,131,753).
NETEASE.COM: Nasdaq Plans To Delist American Depositary Shares
--------------------------------------------------------------
NetEase.com, Inc. (NASDAQ: NTESE), a leading Internet technology
provider in China, said that on July 19, 2001, it received
notice from The Nasdaq Stock Market (Nasdaq) that Nasdaq intends
to delist the company's American Depositary Shares from the
Nasdaq National Market at the opening of business on July 27,
2001. In the notice, Nasdaq asserted that NetEase.com is in
violation of Nasdaq Marketplace Rule 4310(c)(14) because it has
not yet filed with Nasdaq and the U.S. Securities and Exchange
Commission its Annual
Report on Form 20-F.
NetEase.com intends to request a hearing on this matter prior to
July 27, 2001. The hearing will stay the delisting of
NetEase.com's shares, pending a decision by the Nasdaq Listing
Qualifications Panel.
The filing of NetEase.com's Annual Report has been delayed by
the company to allow it to finish, in as complete and accurate a
manner as possible, its internal investigation regarding
possible incorrect reporting within NetEase.com's internal
departments. This internal investigation was previously
announced by NetEase.com on May 8, 2001 and July 11, 2001. The
company's Audit Committee, which is leading the investigation
with the assistance of the independent auditors and outside
legal counsel, is working to finish the investigation and file
the Annual Report in the near future.
There can be no assurance as to when the Nasdaq Listing
Qualifications Panel will reach its decision, or that such
decision will be favorable to the company. An unfavorable
decision would result in immediate delisting of the company's
American Depositary Shares from the Nasdaq National Market
irrespective of the company's ability to appeal the decision.
NetEase.com also reported that, based on the results thus far of
its internal investigation, the public is cautioned not to rely
on the company's published audited financial statements for the
year 2000.
About NetEase.com
NetEase.com, Inc. is a leading China-based Internet technology
company and pioneered the development of applications, services
and other technologies for the Internet in China. The
NetEase.com Web sites, operated by its affiliate, organize and
provide access to 18 content channels through content
distribution arrangements with over 150 international and
domestic content providers. In addition, the NetEase.com Web
sites contain over 1,029,000 personal home pages created and
maintained by users that enable users to express themselves,
share items, interests and areas of expertise and to publish
personal content accessible by other Chinese Internet users.
The NetEase.com Web sites also offer online interactive
community services through 200 community forums and over 115,000
personal community forums created by registered users. At the
end of June 2001, the number of simultaneous chat room
participants reached 45,056 during peak hours, and the number of
registered users of the NetEase.com Web sites reached 24.1
million. Further, the average number of daily page views was
over 124.7 million in June 2001.
NetEase.com also offers auction and online mall technology
services, which provide opportunities for e-commerce and
traditional businesses to establish an online e-commerce
presence on the NetEase.com Web sites.
OWENS CORNING: Moves To Pay Certain Prepetition Ohio Taxes
----------------------------------------------------------
Owens Corning asks Judge Fitzgerald for her authority to pay
prepetition, ad valorem taxes to the City of Newark, Ohio, and
taxing authorities in Licking County, Ohio, for the year 2000.
The City of Newark and the County of Licking, Ohio, have
established commercial/industrial real and personal property tax
abatement programs in order to encourage development in the
City/County and to maintain and/or enhance the commercial and
industrial economic and employment base of the City/County.
Owens owns approximately 32 real estate parcels located within
the City/County, and operates various aspects of its
manufacturing operations from these locations, including a
manufacturing facility in Newark, Ohio, called the Owens Corning
Newark Facility, which has been an integral land important part
of the Newark community and local economy for over 65 years. Due
to the timing of its bankruptcy filing, which occurred prior to
its payment of certain prepetition taxes, Owens is delinquent on
certain prepetition ad valorem real and personal property taxes
owed to the City/County on behalf of a number of taxing
jurisdictions.
In the time period since its bankruptcy filing, Owens has
engaged in discussions with the City/County regarding the tax
abatement program. Pursuant to these discussions, Owens would
expand and renovate its facilities in the City/County and retain
most of the jobs at such sites. The City/County has informed
Owens that it is ready to assist it in obtaining the benefits of
the tax abatement program, which will abate up to 100% of Owens'
ad valorem real and personal property taxes relating to the
additional personal property and the improvements made to the
parcels. Taken together, the parties believe that the tax
abatements may amount to as much as a $14 million savings over
the next twelve years.
The City/County have informed Owens, however, that they will not
permit Owens to successfully participate in the tax abatement
program unless Owens pays the delinquent taxes owed to the
taxing authorities. The Debtors have determined that it is in
the best interest of the Debtors and their creditors that Owens
becomes current on its ad valorem property tax obligations to
the taxing authorities in order to be eligible to participate in
the tax abatement program. The Debtors accordingly seek, by this
Motion, authority under the Bankruptcy Code for Owens to pay the
prepetition ad valorem property taxes at issue to the taxing
authorities for the year 2000. The amount of the taxes to
be paid is:
(a) $320,772.96 on account of real estate property taxes;
and
(b) $931,276.06 on account of personal property taxes.
The Debtors argue that payment of these taxes should be
authorized under the Court's general equity powers to carry out
the intent and purposes of the Bankruptcy Code. Numerous courts
have used these equitable powers under the "necessity of
payment" doctrine to authorize payment of a debtor's prepetition
obligations where, as here, such payment is necessary to
effectuate the paramount purpose of chapter 11 reorganization,
which is to prevent the debtor from going into liquidation and
to preserve the debtor's potential for rehabilitation.
This doctrine has also been invoked if nonpayment of a
prepetition obligation would trigger a withholding of goods or
services essential to a debtor's business reorganization plan.
The payment of these taxes is necessary and essential to the
Debtors' reorganization efforts for multiple reasons. If the
taxes remain unpaid, Owens will be unable to enter into the tax
abatement program. This program will allow for a tax savings of
up to $14 million over the next 12 years. The Debtors believe
that the tax savings over the coming years outweighs the monies
paid now to the taxing authority to bring the taxes current.
Additionally, such savings will facilitate the reorganization of
the Debtors.
Separate and apart from these reasons, the Debtors advise that
the taxes are most likely entitled to "priority" status under
the Bankruptcy Code. Thus, Owens' proposed payment of the taxes
now will, in all likelihood, affect only the timing of the
payment and not the amount to be received by the taxing
authorities. Other creditors and parties-in-interest therefore
will not be prejudiced if the relief sought in this Motion is
granted. For all of these reasons, the Debtors believe that
granting the relief requested is appropriate and provides the
best means for maximizing value for the Debtors, their estates,
shareholders an creditors. (Owens Corning Bankruptcy News, Issue
No. 13; Bankruptcy Creditors' Service, Inc., 609/392-0900)
PACIFIC GAS: Hiring Skadden Arps As Special Counsel
---------------------------------------------------
Pacific Gas and Electric Company asks the Court for permission
to employ Skadden, Arps, Slate, Meagher & Flom LLP as its
special regulatory counsel during the course of its chapter 11
case. Roger J. R_____, the Debtor's Senior Vice President and
General Counsel, tells Judge Montali that PG&E wants Skadden to:
(a) advise the Debtor with respect to the potential
reorganization of its transmission business;
(b) assist the Debtor in such potential reorganization and
any related FERC regulatory matters; and
(c) represent the Debtor in other regulatory matters
before the FERC primarily related to the Debtor's role
as a transmission owner and the rates it charges to
customers for transmission and ancillary services.
Clifford M. Maeve, Esq., John Moot, Esq., and Jeffery Christie,
Esq., in Skadden's Los Angeles office, are the partners
principally responsible for this engagement.
During the year prior to the Petition Date, PG&E paid Skadden
$526,700 in for services rendered. Skadden held a $116,000
retainer at the Petition Date. For post-petition services,
Skadden will bill its customary hourly rates using its bundled
rate structure:
Partners $415 to $625
Counsel and Special Counsel $390
Associates $215 to $380
Legal Assistants $75 to $125
Mr. Moot discloses that, as one of the world's largest law
firms, Skadden represents many financial institutions, utility
companies and creditors of the Debtor's estate. Mr. Moot
assures Judge Montali that Skadden does not represent any entity
other than PG&E in PG&E's chapter 11 case. Further, Mr. Moot
discloses, Skadden works with virtually every other professional
retained in PG&E's chapter 11 case in some other litigation or
business matter. Those connections are unavoidable, Mr. Moot
suggests, and regardless of those relationships, Skadden show
undivided loyalty to PG&E in all matters related to PG&E's
chapter 11 restructuring. (Pacific Gas Bankruptcy News, Issue
No. 10; Bankruptcy Creditors' Service, Inc., 609/392-0900)
PAYLESS CASHWAYS: Court Okays $160 Million DIP Financing
--------------------------------------------------------
Payless Cashways Inc. received court approval for the company's
debtor-in-possession (DIP) financing with Congress Financial
Corp. and Hilco Capital LP, according to Dow Jones. The Kansas
City, Mo.-based Payless Cashways said it would receive a credit
line of up to $160 million. However, the line will be reduced to
$140 million in 60 days, to $130 million in 120 days, staying at
that level for the rest of the one-year term, because the
company will be closing stores and downsizing its cash needs.
Payless Cashways is a building materials and finishing products
company. (ABI World, July 23, 2001)
PHASE2MEDIA: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Phase2Media, Inc.
425 Lexington Avenue
New York, NY 10170
aka CKG Media.Com, Inc.
Type of Business: Sales representation firm for advertising on
the Internet sites of Web publisher.
Chapter 11 Petition Date: July 18, 2001
Court: Southern District of New York (Manhattan)
Bankruptcy Case No.: 01-14020-alg
Judge: Allan L. Gropper
Debtor's Counsel: Garrett L. Gray, Esq.
Zukerman Gore & Brandeis, LLP
900 Third Avenue
New York, NY 10022
Tel: (212) 223-6700
Fax: (212) 223-6433
Email: ggray@zgbllp.com
Harold D. Jones, Esq.
Gersten Savage & Kaplowitz, LLP
101 East 52nd Street
New York, NY 10022
(212) 752-9700
Total Assets: $18,057,000
Total Debts: $19,672,000
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature Of Claim Claim Amount
------ --------------- ------------
Sports Illustrated Trade Debt $1,122,000
Victor Sauerhoff
135 West 5oth Street
New York, NY 100201393
(212) 522-1124
NHL Interactive Cyber Trade Debt $1,035,000
Enterprises, LLC.
Kenny Nova
1251 Avenue of the America
New York, NY 10020
(212) 789-2692
SLG Graybar Sublease, LLC Trade Debt $875,000
Steven Dorels
Lexington Avenue
New York, NY 10170
(212) 216-1617
Decision Consultants, Inc. Trade Debt $816,000
Frank Jemeycic
28411 Northwestern Highway
Suite 325, Southfield, MI 48034
(248) 352-8650
PlasmaNet, Inc. Trade Debt $699,000
Kevin Aronin
420 Lexington Avenue
New York, NY 10170
(212) 931-6760
Hachette Filipacci Trade Debt $671,000
Interactions S.A.
Francois Jarry
149 rue Anatole France
92534 Levellois-Perred
Cedex, France
Britannica.com, Inc. Trade Debt $401,000
Richard Anderson
310 South Michigan Avenue,
Chicago, IL 60605
Priceline.com Trade Debt $313,000
Evan Seivman
800 Connecticut Avenue
Norwalk, CT 06854
(203) 299-8670
Zuckerman Gore & Trade Debt $265,080
Brandeis, LLP
Clifford A. Brandeis, Esq.
900 Third Avenue
New York, NY 10022
(212) 223-6700
Fullbright & Jaworski, LLP Trade Debt $250,000
Steven Suzzanm Esq.
666 Fifth Avenue
New York, NY 10103
(212) 318-3092
DoubleClick, Inc. Trade Debt $212,000
MaxmNet, Inc. Trade Debt $183,000
American Greetings Trade Debt $175,000
MySimon, Inc. Trade Debt $156,000
Xerox Corporation Trade Debt $138,000
Lifeminders Trade Debt $134,000
Delia's f/k/a ITurf, Inc. Trade Debt $133,000
eUniverse Trade Debt $129,000
Erst & Young Trade Debt $125,000
Crane Communications Trade Debt $125,000
PLANVISTA CORPORATION: Reports Financial Results for 2nd Quarter
----------------------------------------------------------------
PlanVista Corporation (NYSE: PVC) announced its financial
results for the quarter ended June 30, 2001.
Financial Results
The Company reported revenues from continuing operations of $8.9
million, compared to $6.7 million in the second quarter of 2000,
or a 33% increase, and $7.9 million in the first quarter of
2001, or a 13 % increase. Second quarter loss from continuing
operations totaled $1.3 million, including a $2.5 million pre-
tax loss connected with the sale of certain investment holdings.
Excluding such investment losses, second quarter income from
continuing operations was $0.1 million. By comparison, the
Company recorded $1.7 million in losses during the second
quarter of 2000. Income per share from continuing operations for
the second quarter was $0.01 before the referenced investment
loss and $(0.10) afterwards, compared to $(0.12) during the
second quarter of 2000.
Operating income (defined as revenue less operating expenses
before the allocation of corporate overhead, interest,
depreciation and amortization, and taxes) for the second quarter
totaled $3.9 million, compared to $3.2 million in the second
quarter of 2000. 2001 first quarter operating income was $3.5
million. EBITDA (defined as operating income less allocable
corporate overhead) for the second quarter was $3.1 million,
compared to $2.6 million for the second quarter of 2000 and $2.8
for the first quarter of 2001.
Operational Activities
PlanVista established a new quarterly revenue record in the
second quarter, as well as a new monthly revenue record in May.
The Company also achieved a claim processing record of 258,000
claims in May, which exceeded the previous record by
approximately 13,000. Included in this total were approximately
45,000 claims processed over the internet on the new ClaimPassXL
system, which represents a 275% increase over the monthly
average prior to the implementation of the new internet
repricing system. Revenue from ClaimPassXL now exceeds $6
million on an annualized basis.
PlanVista signed new business in the quarter that is expected to
generate $5.2 million in new revenue in 2001 and $8.5 million on
an annualized basis. Included in signed new business is the
Company's previously announced global healthcare program, which
incorporates network access as well as administrative services
from the company's new PayerServ business unit. Expected revenue
from the global healthcare program is projected to be $2 million
in 2001.
In addition to the signed new business, PlanVista has signed an
agreement with Resource Information Management Systems, Inc.
("RIMS"), a member of the Trizetto Group of Companies, to
provide claims repricing services to RIMS clients using the RIMS
ClaimsExchange routing services. RIMS users can now utilize EDI
connectivity to access the NPPN network product for claims
repricing without having to send the claim, resulting in
increased time and economic efficiencies.
Divestitures
The Company has completed the strategic divestiture plan it
initiated in June 2000. On June 18, 2001, PlanVista announced
that it had consummated the sale of its Third Party
Administration and Managing General Underwriter business units
to HealthPlan Holdings, Inc., an affiliate of Sun Capital
Partners, Inc. The Third Party Administration business includes
the Small Group Business operations and its associated data
processing facilities operating under the name HealthPlan
Services, Inc., based in Tampa, Florida, as well as the Taft-
Hartley businesses that operate under the names American Benefit
Plan Administrators and Southern Nevada Administrators, based in
El Monte, California, and Las Vegas, Nevada, respectively. The
Managing General Underwriter business is Philadelphia-based
Montgomery Management Corporation. In connection with the non-
cash transaction, Sun Capital's affiliate assumed approximately
$40 million in working capital deficit of the acquired
businesses, $5 million of which was offset by a long-term
convertible subordinated note from PlanVista. In addition, PVC
has issued $5 million of its own shares to Sun Capital's
affiliate at a deemed price of $8.20 per share to offset an
additional $5 million of the assumed deficit, as well as an
additional 75,000 shares associated with certain pre-closing
obligations. The divestiture generated approximately $25.4
million in tax loss benefits, which are expected to
substantially reduce the Company's federal income tax payment
obligations during the next 18 to 36 months. This transaction
resulted in an after-tax loss of $60.7 million, which included
goodwill impairment of $80.3 million.
Outlook
The Company's 2001-2002 strategy is to expand its business
through internal growth, continued technology development, and a
further diversification of product offerings. As revenues
increased in the first and second quarters, the Company likewise
expects increases in the second half of 2001. During the third
quarter, the Company will move aggressively to reduce and
restructure its bank debt. In connection therewith, management
has engaged the Chicago-based investment banking firm of William
Blair & Company.
* * *
PlanVista is a leading health care technology and product
development company, providing medical cost containment for
health care payers and providers through PlanVista Solutions,
one of the nation's largest independently owned full-service
preferred provider organizations. PlanVista Solutions provides
network access, electronic claims repricing, and claims and data
management services to health care payers and provider networks
throughout the United States. Visit the company's website at
WWW.PLANVISTA.COM.
PLAY-BY-PLAY: Warner Bros. Terminates Two Licensing Agreements
--------------------------------------------------------------
Play-By-Play Toys & Novelties, Inc. (OTC Bulletin Board: PBYP)
received notices of termination from Warner Bros. Consumer
Products for two entertainment character licensing agreements
due to the non-payment by the Company of scheduled royalties due
June 30, 2001 totaling approximately $1.2 million, and as a
result of the court-ordered cancellation of existing surety
bonds securing payment of the guaranteed royalty obligations
totaling $10.8 million under the two licensing agreements. On
June 7, 2001, the issuer of the surety bonds, Amwest Surety
Insurance Company ("ASIC") became the subject of an Order of
Liquidation, Declaration of Insolvency, and Injunction by the
District Court of Lancaster County, Nebraska. The court
appointed a liquidator who was authorized to take possession and
control of all assets of ASIC and administer them under the
general supervision of the court. Further, the Order of
Liquidation provided for the cancellation of bonds issued by
ASIC effective July 6, 2001.
Of the two agreements subject to the termination notices, one
provided licensing rights for Looney Tunes and other characters
for amusement and retail distribution channels in Europe, Middle
East and Africa ("EMEA") and the other agreement provided
worldwide licensing rights for Baby Looney Tunes ("BLT")
characters for mass-market retail distribution. Sales of
merchandise under the EMEA and BLT agreements for the nine-
months ended April 30, 2001 totaled $7.4 million and $1.7
million, respectively.
Since the inception of the agreements and through the amended
and extended terms of the agreements, revenues under both
agreements have been insufficient to allow the Company to earn
out the guaranteed royalty commitments. As a result, over the
past two years, the Company has recorded significant charges to
write-off significant portions of the guaranteed minimum
royalties on these two licensing agreements. Additionally, over
the past two years, the Company has engaged in discussions with
Warner Bros. relative to restructuring the minimum guaranteed
royalty obligations under these two licensing agreements. While
the Company has succeeded in securing extensions of the terms
and the periods for the payment of the minimum guaranteed
royalty obligations under the two licensing agreements, it has
not succeeded in securing any reductions of the royalty
obligations from the licensor.
The Company currently does not have sufficient cash or borrowing
availability under its credit facilities to satisfy these past
due obligations. If the Company is not able to restructure or
modify the terms of these material licensing agreements and the
licensor elects not to continue to provide licensing rights to
the Company pursuant to these licensing agreements, this would
have an immediate and material adverse impact on the Company.
The Company is in discussions with prospective buyers interested
in purchasing the Company's Fun Services Franchise business. Due
to the Company's financial condition and as a result of defaults
existing under its senior debt and subordinated debentures, the
Company has not been able to fund letters of credit to purchase
merchandise for its Fun Services 2001 Christmas Season orders.
As a result, the Company has determined to sell the business and
related assets, consisting principally of inventory and accounts
receivable. Absent the ability to fund its purchasing
requirements for the upcoming season or the sale of the
business, the Company may be forced to release its franchisees
from their franchise agreements and purchasing commitments
resulting in the loss of $4 million to $5 million of revenues
for the upcoming Christmas season. The Company's Fun Services
division had sales of $6.5 million during FY 2000. There can be
no assurance that the Company will be able to complete a
transaction to sell the Fun Services business in a timely
manner.
The Company is currently pursuing other strategic alternatives
including the sale of its European and Puerto Rican business
units and certain real estate holdings in an effort to reduce
debt levels and provide working capital to fund the Company's
core operations. Similar to its Fun Services business, the
Company faces financing issues with respect to its Puerto Rican
business unit and currently does not have available funding to
open letters of credit for the 2001 Christmas season funding.
The Company is currently evaluating proposals from third-party
financial firms concerning representing the Company in any such
sale or other disposition of these two business units.
On a related note, on June 15, 2001, the Company completed the
sale of Val Verde Vending, its amusement game machine division,
to Game Vendors of San Antonio, Texas.
Play-By-Play Toys & Novelties, Inc. designs, develops, markets
and distributes a broad line of quality stuffed toys, novelties
and consumer electronics based on its licenses for popular
children's entertainment characters, professional sports team
logos and corporate trademarks. The Company also designs,
develops and distributes electronic toys and non-licensed
stuffed toys, and markets and distributes a broad line of non-
licensed novelty items. Play-By-Play has license agreements with
major corporations engaged in the children's entertainment
character business.
PLIANT SYSTEMS: Ends Sale Negotiations With mPhase Technologies
---------------------------------------------------------------
Pliant Systems, Inc. (OTC Bulletin Board: PLNS) announced that
negotiations for mPhase Technologies, Inc. (OTC Bulletin Board:
XDSL), to purchase substantially all the assets of Pliant have
terminated. At this point no other potential buyer has bid on
the assets of Pliant. Pliant also laid off approximately forty
additional employees on July 20th in light of the termination of
negotiations.
According to mPhase, the proposed transaction, pursuant to the
term sheet entered into by the parties on July 2, 2001, which
called for mPhase to acquire substantially all of Pliant's
assets for approximately $3.6 million, comprised of $2.4 million
in cash and $1.2 in collected accounts receivables, was rejected
by Pliant's creditor's committee, represented by the Loomis Bond
Fund. The creditor committee of Pliant submitted a
counterproposal to mPhase which would have required that the
Company pay in excess of $4.0 million in cash for Pliant's
assets; mPhase has rejected the counterproposal.
"We are disappointed that the Pliant Creditor Committee was
unwilling to accept mPhase's proposal to acquire the subject
assets of Pliant," said mPhase president and CEO Ronald A.
Durando. "We obviously feel that both the remaining employees of
Pliant and mPhase's shareholders would have been well-served by
such a transaction. mPhase will continue on course to execute
its strategic plan and our ability to do so remains unaffected
by the termination of the Pliant transaction."
On May 1, 2001 Pliant Systems, Inc. filed a voluntary petition
under Chapter 11 of the United States Bankruptcy Code. The
company has continued to operate the business and manage its
assets as a debtor in possession and no trustee or examiner has
been appointed in the case. The company sought Chapter 11
protection in order to facilitate an orderly sale of it business
and assets to a third party.
The company intends to request approval from the Bankruptcy
Court to commence an orderly liquidation of the company's assets
under Chapter 11 of the Bankruptcy Code. A small group of
company employees will undertake this process when approved by
the Bankruptcy Court.
About Pliant Systems
Pliant Systems Inc. designs, manufactures and markets integrated
multi- service access platforms for the telecommunications
industry. The company provides competitive local exchange
carriers and incumbent local exchange carriers with integrated
access systems capable of delivering voice, data and video
services over diverse network topologies. The company's primary
product, the Pliant 3000 Integrated Access Platform, is designed
to relieve the strain on digital loop carrier systems caused by
the Internet explosion, utilizing a distributed architecture to
deliver traditional telephony and merging high-bandwidth
services deep into the access network. The company's web site is
http://www.pliantsystems.com
PRIME RETAIL: Shareholders To Convene in Baltimore On August 21
---------------------------------------------------------------
The Annual Meeting of Stockholders of Prime Retail, Inc., a
Maryland corporation, will be held at the Baltimore World Trade
Center, 21st Floor, 401 East Pratt Street, Baltimore, Maryland,
on August 21, 2001 at 11:00 a.m., local time, to consider and
vote on the following matters:
(i) To consider and approve an amendment to the Company's
Charter to:
(a) effect a reverse stock split whereby each ten (10)
outstanding shares of common stock, par value $0.01
per share, would be automatically converted into
one share of outstanding Common Stock and
(b) reduce in the same proportion as the outstanding
shares are reduced by the reverse stock split, the
number of authorized shares of Common Stock from
150,000,000 to 15,000,000;
(ii) To elect three Directors;
(iii) To ratify the appointment of Ernst & Young LLP as
independent auditors of the Company for the fiscal year
ending December 31, 2001; and
(iv) To transact such other business as may properly come
before the Meeting or any adjournment(s) or
postponement(s) thereof.
Holders of record of the Company's Common Stock, $0.01 par value
per share, at the close of business on July 6, 2001 shall be
entitled to notice of, and to vote with respect to all matters
to be acted upon at, the Meeting.
PRIVATE MORTGAGE: Files for Chapter 11 Protection
-------------------------------------------------
Private Mortgage Investment Services Inc. filed for chapter 11
bankruptcy protection on Friday in the U.S. Bankruptcy Court in
Albany, N.Y., with the effort to prevent the sale of a portfolio
of mortgage loans that is co-owned by East Lansing, Mich.-based
First National Acceptance Co. of North America Inc., the Times
Union reported. Because First National has come under scrutiny
by federal banking regulators, it is trying to sell the
portfolio in a hurry instead of determining the fair market
value. First National also canceled Private Mortgage's $16
million line of credit and incorrectly put the loan into
default.
The Malta, N.Y.-based Private Mortgage buys and sells private
mortgages (those held by individuals, not institutions). The
company's bankruptcy petition listed about $16.9 million in
liabilities and about $19.2 million in assets. (ABI World, July
23, 2001)
PSINET INC.: Creditors' Committee Retains Wachtell As Counsel
-------------------------------------------------------------
At a meeting held on June 8, 2001, the Official Committee of
Unsecured Committee in PSINet, Inc.'s chapter 11 cases voted to
retain the law firm of Wachtell, Lipton, Rosen & Katz as its
counsel. Immediately upon its retention on June 8, 2001,
Wachtell, Lipton commenced work on several matters requiring
immediate attention in connection with the Debtors' cases,
including reviewing on the Debtors' first day motions and
orders, reviewing and analyzing the Debtors' proposed sale of
certain of its assets and reviewing and commenting on the
Debtors' proposed employee retention program.
Accordingly, the Committee sought and obtained the Court's
approval, pursuant to Bankruptcy Code Sections 1103 and 328 and
Bankruptcy Rule 2014, to retain Wachtell as counsel, nunc pro
tunc to June 8, 2001.
The Committee believes that it is necessary to employ attorneys
to render it with professional services in connection with its
evaluation of the activities of the Debtors and its
participation in the negotiation, promulgation, and evaluation
of a plan or plans of reorganization.
The members of the Committee based the selection of Wachtell,
Lipton as Committee counsel on the firm's extensive experience
and knowledge in the field of bankruptcy and creditors' rights,
and in the other fields of law that are expected to be involved
in these cases as well as on said firm's familiarity with the
case due to its representation, as of March 23, 2001, of the
Unofficial Senior Noteholders' Committee.
Specifically, the Committee charges Wachtell, Lipton with:
(1) advising the Committee and representing it with respect to
proposals and pleadings submitted by the Debtors or others
to the Court or the Committee;
(2) representing the Committee with respect to any plans of
reorganization or disposition of assets proposed in the
PSINet chapter 11 case;
(3) attending hearings, drafting pleadings and generally
advocating positions which further the interests of the
creditors represented by the Committee;
(4) assisting in the examination of the Debtors' affairs and
review of the Debtors' operations;
(5) advising the Committee as to the progress of the chapter 11
proceedings; and
(6) performing such other professional services as are in the
interests of those represented by the Committee, including,
without limitation, those set forth in Bankruptcy Code
Section 1103(c).
Wachtell Lipton's current hourly rates for work of this nature
range from:
$90-$125 for paralegals;
$130-$395 for associates; and
$400-$675 for members
Prior to the commencement of these cases and in connection with
its representation of the Unofficial Committee, Wachtell
received a $100,000 retainer from the Debtors. To the extent
that the fees and expenses of Wachtell, Lipton for the
representation of the Unofficial Committee were less than
$100,000, Wachtell will, subject to the Court's approval, apply
the balance to its allowed fees and expenses as counsel to the
Committee.
Chaim J. Fortgang, Esq., assures the Court that Wachtell does
not hold or represent any interest adverse to the Debtors'
estates or the Committee or the creditors the Committee
represents. (PSINet Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., 609/392-0900)
RELIANCE GROUP: Committees Tap PwC as Financial Advisor
-------------------------------------------------------
Mr. Thomas Dinneen at Chase Manhattan Bank, serving as Chairman
of the Bank Committee, relates that the members of the Bank
Committee voted to hire PricewaterhouseCoopers as its financial
advisors. The Bank Committee and the Official Unsecured
Creditors Committee in Reliance Group Holdings, Inc.'s chapter
11 cases want to share PwC's services and are currently working
out the precise terms of that retention. (Reliance Bankruptcy
News, Issue No. 4; Bankruptcy Creditors' Service, Inc., 609/392-
0900)
SAFETY-KLEEN: Systems Inks EPA Consent Pact re Dolton Facility
--------------------------------------------------------------
Safety-Kleen Systems, Inc., asks Judge Walsh for his approval of
a settlement agreement with the United States Environmental
Protection Agency, and tells him that this settlement resolves
certain alleged violations asserted by the EPA in a complaint
filed in September 1998 in connection with a recycling center
operated by Systems in Dolton, Illinois.
Prior to the Petition Date, the EPA filed the Complaint against
Safety-Kleen in connection with alleged violations of certain
federal and state environmental regulations at the Dolton
Facility. Since the petition Date, Systems has continued to
cooperate with the EPA's investigation of the Dolton Facility,
and the EPA and Systems have met and/or conferred on numerous
occasions to negotiate a consensual resolution of the issues
raised in the complaint or arising therefrom. In the course of
these negotiations, the parties also agreed to terms for
resolving additional EPA claims that could have been made as a
result of RCRA Section 3007 information requests issued by the
EPA prior to the petition Date regarding storage practices at
the Dolton facility.
The Consent Agreement reflects the mutual agreement of the EPA
and Systems as to the resolution of the issues raised in the
Complaint and arising from the RCRA Section 3007 information
requests, and serves as a final compromise and settlement of the
allegations raised in the Complaint and those that could have
been raised as a result of the RCRA Section 3007 information
requests. Buy its terms, the consent Agreement requires
bankruptcy court approval.
Terms of the Consent Agreement
Within 60 days of its effective date, Systems must conduct
certain waste determinations. Based on the results of those
waste determinations, Systems may be obligated to mitigate
certain environmental harms, if any, caused by its conduct.
The Consent Agreement also requires Systems to modify its
activities at the Dolton Facility until such time as Systems
obtains certain permits for its operations at that facility. In
addition, the Consent Agreement requires Safety-Kleen to perform
certain supplemental environmental projects. The total cost of
implementing the SEPs is slightly in excess of $1 million.
Finally, the Consent Agreement calls for the payment of a civil
penalty by Safety-Kleen in the amount of $310,000. The civil
penalty is deemed to be an allowed general, unsecured claim in
the Safety-Kleen chapter 11 case and is to be satisfied in the
same manner as other general, unsecured claims are satisfied in
any plan of reorganization for Safety-Kleen.
In October 2000, this Court entered an Order approving a consent
agreement between certain Debtors and the EPA. Under that
Consent Agreement Order, this Court approved a consent
agreement, dated August 2000, between the EPA, Safety-Kleen, and
27 debtors and debtors-in- possession in these chapter 11 cases.
Under the terms of that Global Consent Decree, the Debtors are
precluded from discharging or impairing certain environmental
claims in these bankruptcy cases, including claims of the type
asserted by the EPA in the instant Complaint and the claims that
could have been raised as a result of the RCRA requests.
Accordingly, the EPA's actions under the Complaint, as well as
the claims arising from the information requests, were not
subject to the automatic stay.
Approval is Critical!
The Debtors join Systems in insisting that approval of the
Consent Agreement is critically important to the continued
operation of the Dolton Facility, one of the Debtors' major
recycling centers. In the Complaint, EPA sought an order that
would have required Safety-Kleen to cease operations at the
Dolton Facility until certain RCRA permits were obtained. The
Consent Agreement will allow Safety-Kleen to continue operations
at the Dolton Facility while the final permits are being
secured. The Consent Agreement also will resolve a long-standing
dispute between EPA and Safety-Kleen regarding the need for
certain permits and will assure that treatment and storage
operations can continue at the Dolton Facility in the future.
The financial aspects of the settlement are fair and reasonable
for Safety-Kleen. In the original complaint, EPA sought a
penalty of approximately $2.4 million for the alleged claims.
The EPA later amended the original complaint to add additional
claims. The Consent Agreement resolves the original claims along
with the additional claims, and claims that could have been
added as a result of the EPA's further RCRA information
requests. In exchange, Safety-Kleen is assessed a penalty, which
is to be treated as a general, unsecured claim, and is required
to perform the SEPs. The SEPs to be implemented will result in
more efficient operations at the Dolton Facility, and will do so
in a manner that exceeds all applicable regulatory requirements.
Judge Walsh grants an Order awarding all relief requested by
this Motion, and further orders that its terms shall be
immediately effective. (Safety-Kleen Bankruptcy News, Issue No.
18; Bankruptcy Creditors' Service, Inc., 609/392-0900)
TOKHEIM CORPORATION: Reports Improved Q2 Financial Results
----------------------------------------------------------
Tokheim Corporation (OTCBB:THMC) reported that its earnings
before merger and acquisition costs and other unusual items,
interest, depreciation and amortization (EBITDA) for the second
quarter of 2001 increased to $7.6 million from $5.3 million in
the comparable 2000 quarter, despite a reduction in sales
revenues.
After the Company's completion of its Chapter 11 restructuring
and adoption of "fresh start" accounting as of October 31, 2000,
its capital structure was substantially changed. As a result, in
fiscal 2001, depreciation and amortization expense is
substantially higher and interest expense substantially lower
than in fiscal 2000. As a result, the financial results for the
second quarter of 2001 are not directly comparable to those of
prior periods.
Sales in the second quarter of 2001 were $121.8 million as
compared to $134.8 million in the second quarter of 2000.
Continuing weakness in the value of the Euro accounted for $7.6
million or 58% of the reduction. The operating loss for the
quarter was $3.8 million as compared to a loss of $4.7 million
in the prior year quarter. Net loss for the quarter reduced to
$13.0 million from $17.4 million in the 2000 quarter. Because of
the substantial changes to the capital structure of the Company
resulting from the restructuring, a comparison of earnings per
share for the current and prior year quarters is not meaningful.
George Helland, acting Chairman and Chief Executive Officer of
Tokheim Corporation, said: "The results for this quarter are
very similar to those of the first quarter. Despite a reduction
in sales revenues and increased investment in engineering to
support the development and roll-out of new products, we were
able to increase EBITDA through our continued focus on increased
efficiencies and reduced operating costs. The reduction in sales
volumes is entirely in the U.S. and reflects an industry-wide
weakness, particularly in the distributor and jobber channels.
Sales in Europe and Africa in local currencies remain stable."
Tokheim Corporation, based in Fort Wayne, Indiana, is the
world's largest producer of petroleum dispensing devices.
Tokheim Corporation manufactures and services electronic and
mechanical petroleum dispensing systems. These systems include
petroleum dispensers and pumps, retail automation systems (such
as point-of-sale systems), dispenser payment or "pay-at-the-
pump" terminals, replacement parts, and upgrade kits.
TRANS WORLD: Has Until July 31 to Calculate & Make Payments
-----------------------------------------------------------
Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington,
Del. granted Trans World Airlines Inc. (TWA) an extension on the
time it has to make undisputed payments regarding assumed and
rejected executory contracts, Dow Jones reported. The bankrupt
airline now has until July 31 to make the payments. The company
will make the payments from a $128 million escrow account, set
up specifically for that purpose. TWA was supposed to have paid
the amount by May 24.
TWA told Judge Walsh it needed the extension for various
reasons. First, it lacked documentation to support some of the
cure amounts. Second, the cure amounts didn't consistently
account for payments made by TWA since its petition date, with
respect to the assumed contracts. Finally, the cure amounts only
included amounts through Feb. 28, not April 9 - the time of the
assumption and assignment of the contracts. Payment for the cure
amounts stems from TWA's sale of its assets to AMR Corp.'s
American Airlines Inc. in April for $742 million in cash and the
assumption of $3.5 billion in liabilities. (ABI World, July 23,
2001)
U.S. MINERAL: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: United States Mineral Products Company
d/b/a Isolatek International
41 Furnace Street
Stanhope, NJ 07874
Type of Business: The Company manufactures and sells spray-
applied fire resistive material to the
constructions industry in North America and
South America.
Chapter 11 Petition Date: July 23, 2001
Court: District of Delaware
Bankruptcy Case Nos.: 01-2471
Debtor's Counsel: Harry DeWerth-Jaffe, Esq.
Pepper Hamilton LLP
300 Two Logan Swuare,
Eighteenth and Arch Streets
Philadelphia, PA 19103-2799
(215) 981-4000
Total Assets: $23,773,000
Total Debts: $13,864,000
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature Of Claim Claim Amount
------ --------------- ------------
Therm O Rock Industries Trade Debt $353,801
6732 W. Willis Road
Chandler, AZ 85226
Sloss Industries Trade Debt $125,814
The Levy Company Trade Debt $96,569
Celanese, Ltd. Trade Debt $63,750
G-P Gypsum Corporation Trade Debt $59,057
Citizens Gas & Coke Utility Trade Debt $53,048
Stone Container Corporation Trade Debt $48,148
Lone Star Industries Inc. Trade Debt $43,508
America Vermiculite Corp. Trade Debt $39,447
Superior Packaging Prod. Inc. Trade Debt $39,252
Thermafiber LLC Trade Debt $37,338
Ulrich Chemical Corp. Trade Debt $34,350
REX International Incorp. Trade Debt $33,932
Cellulose Filler Factory Trade Debt $28,566
Hickman Williams and Company Trade Debt $18,735
Suzorite Mica Products Inc. Trade Debt $17,213
CK Wilco Corporation Trade Debt $17,108
C.H. Robinson Trade Debt $15,478
Ruan Transportation Trade Debt $12,159
Penreco/Penn Drake Trade Debt $9,867
USG CORP: US Trustee Appoints Asbestos Injury Claimant Committee
----------------------------------------------------------------
The United States Trustee appoints these eleven claimants to
serve on an Committee of Asbestos Personal Injury Claimants in
USG Corporation's chapter 11 cases:
Erich Spangenburg
12136 St. Andrews Drive
Rancho Mirage, CA 92270
Ph: 760-328-3408
Fax: 760-674-9797
Gerald Frederick Vogt
c/o Baron & Budd, P.C.
Attn: Russell W. Budd, Esq.
The Centrum
3102 Oak Lawn Ave., Suite 1100
Dallas, TX 75219-4281
Ph: 214-523-6265
Fax 214-523-9157
Betty Bise
Executrix for William Bise
c/o Goldberg, Persky, Jennings & White, P.C.
Attn: Theodore Goldberg, Esq.
1030 Fifth Ave.
Pittsburgh. PA 15219
Ph: 412-471-8308
Fax: 412-471-8308
Jose Luis DelRosario
C/o Jaques Admiralty Law Firm
Attn: Alan Kellman, Esq.
1530 Chestnut St., Suite 604
Philadelphia, PA 19102
Ph: 215-567-1333
Fax: 215-567-2099
Edward Walley
c/o Jacobs & Crumplar
Attn: Maria Eskin, Esq.
2 E 7th St.
P.O. Box 1271
Wilmington, DE 19899
Ph: 302-656-5445
Fax: 302-656-5875
Charles Brincat
c/o Levy Phillips & Konigsberg, LLP
Attn: Robert Komitor, Esq.
520 Madison Ave. 4th Floor
New York, NY 10038
Ph: 212-605-6200
Fax: 212-605-6290
Nicholas Ferrante
c/o Weitz & Luxenburg, P.C.
Attn: Sanders McNew, Esq.
180 Maiden Lane, 17th Floor
New York, NY 10038
Ph: 212-558-5550
Fax: 212-605-6290
Virgie Lee Toliver
c/o Silber Pearlman, LLP
Attn: Steven T. Baron, Esq.
2711 N Haskell Ave, 5th Floor-LB 32
Dallas, TX 75204
Ph: 214-874-7000
Fax: 214-824-8100
Judith Williams
c/o Cooney & Conway
Attn: John D. Cooney, Esq.
120 N. LaSalle St., 30th Floor
Chicago, IL 60602
Ph: 312-236-6166
Fax: 312-236-3029
Michael Abbot
c/o Kazan, McClain, Edises, Simon & Abrams
Attn: Steven Kazan, Esq.
171 12th St. 3rd Floor
Oakland, CA 94607
Ph: 510-465-7728
Fax: 510-835-4913
Donald R. Boyer
c/o Early, Ludwick $ Sweeney, LLC
Attn: James F. Early, Esq.
265 Church St., 11th Floor
New Haven, CT 06510
Ph: 203-777-7799
Fax: 203-785-1671
Frank J. Perch, III, Esq. (302-573-6491, Fax: 212-622-4834) is
the attorney for the United States Trustee assigned to monitor
USG's chapter 11 proceedings. (USG Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
VLASIC FOODS: Stipulation Resolves U.S. Cold Storage Assumption
---------------------------------------------------------------
Vlasic Foods International, Inc. asks Judge Walrath to approve
the stipulation among Vlasic Foods International Inc., Pinnacle
Foods Corporation (formerly known as HMTF Foods Acquisition
Corp.) and United States Cold Storage regarding the assumption
and assignment of certain leases.
Robert A. Weber, Esq., at Skadden Arps Slate Meagher & Flom, in
Wilmington, Delaware, relates that the Debtors and U.S. Cold
Storage entered into a lease agreement for a storage facility in
Sarpy County, Nebraska on November 1998. Both parties later
entered into handling equipment and charging system lease on
June 2000 for certain warehouse equipment, Mr. Weber adds.
When the Debtors agreed to sell substantially all its assets to
Pinnacle, they also sought to assume and assign the warehouse
leases to the Pinnacle. This prompted U.S. Cold Storage to
object, Mr. Weber explains. U.S. Cold Storage asserted that the
Debtors still owe them $232,440.11 in damages. Mr. Weber admits
that some warehouse doors, handling equipment, and storage racks
have been damaged during the time the Debtors were leasing U.S
Cold Storage's facility and equipment.
To resolve this objection, the Debtors, Pinnacle and U.S. Cold
Storage entered into a stipulation that:
(1) Within 3 days of the Court's approval of the
stipulation, the Debtors shall pay to US Cold Storage
the sum of $90,000.00 in full satisfaction of all its
liabilities under the Warehouse Leases for all damages
to the Facility and Equipment as of May 22, 2001, other
than for damages to the storage racks.
(2) In full satisfaction of the Debtors' liability for all
damages to the storage racks as of May 22, 2001 under
the Warehouse Leases, Purchaser shall assume all of the
repair obligations under and as provided for in the
Facility Lease for the damages to the storage racks,
whether such damages arose prior to, on, or arise after
May 22, 2001; provided that (x) US Cold Storage agrees
and acknowledge that the amount of such damages as of
May 22, 2001 does not exceed $142,000, and (y) such
assumption is conditional upon Debtors' timely
performance of the payment obligation set forth in
paragraph 3, below.
(3) Within 3 days of the Court's approval of the
Stipulation, the Debtors shall pay to the Purchaser the
sum of $50,000 in consideration of Purchaser's
assumption of the obligations set forth in paragraph 2,
above. The obligation to make such payment shall not be
subject to setoff.
According to Mr. Weber, the Debtors promise to pay $140,000 in
full satisfaction of all cure obligations to U.S. Cold Storage.
Without the stipulation, Mr. Weber notes, the Debtors are likely
to contest the $232,440 cure claim of U.S. Cold Storage. And
there would be no assurance that the Court will grant U.S. Cold
Storage a cure amount less than $140,000, Mr. Weber adds.
(Vlasic Foods Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service, Inc., 609/392-0900)
W.R. GRACE: Asbestos Committees Want Document Depository Set Up
---------------------------------------------------------------
The Official Committee of Asbestos Personal Injury Claimants and
the Official Committee of Asbestos Property Damage Claimants
move the Court for an order compelling W.R. Grace & Co. to
identify, retain, collect and organize all relevant documents
and to make those documents available in a central repository.
The Asbestos Committees tell the Court that W.R. Grace is
historically uncooperative in producing documents necessary for
litigation of their constituencies' claims.
The Asbestos Committees' Motion, the Debtors suggest, is
virtually moot. Upon receipt of the Motion, David Siegel,
Grace's Senior Vice President and Chief Restructuring Officer,
issued a comprehensive corporate freeze directive to the
Debtors' employees unequivocally ordering all employees that no
document related to:
* asbestos;
* asbestos-containing products or materials;
* vermiculite;
* vermiculite-containing products or materials;
* vermiculite-related licensing and distribution
agreements;
* materials concerning trade associations and
organizations; or
* the Fresenius or Sealed Air Transactions;
is to be destroyed or discarded. That directive is clear, broad
and immediate. It preserves any documents the Asbestos
Committees want.
The Debtors realize that this won't get the Asbestos Committees
everything they want. Unfortunately, David M. Bernick, Esq., at
Kirkland & Ellis, points-out, no provision contained in the
Bankruptcy Code, the Rule 2004 of the Federal Rules of
Bankruptcy Procedure or any other rule of civil procedure
provides for "discovery by depository." If the Asbestos
Committees need documents, they know how to obtain them through
proper legal procedures -- this request isn't it. Moreover, the
Debtors tell Judge Farnan, two huge document depositories were
set-up in Boston some 18 years ago after Grace scoured every
square inch of its manufacturing facilities, expansion plants,
corporate offices, sales offices and district offices. Those
depositories are continuously updated as the Debtors learn about
new litigation theories developed by the plaintiffs' bar.
Tell the Asbestos Committees to quit calling the 1998 Sealed Air
Transaction one of the "Fraudulent Conveyance Transactions,"
Sealed Air Corporation pleads with Judge Farnan. While it might
seem like nit-picking, Shelia L. Birnbaum, Esq., at Skadden,
Arps, Slate, Meagher & Flom says, Sealed Air isn't comfortable
seeing any Court order that labels the transaction as
fraudulent. Please use the plain-vanilla "Sealed Air
Transaction" instead, Ms. Birnbaum suggests. (W.R. Grace
Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service,
Inc., 609/392-0900)
WARNACO GROUP: Rejecting Net Lease With AMB Property
----------------------------------------------------
The Warnaco Group, Inc. seeks a Court order:
(i) Approving and authorizing Calvin Klein Jeanswear (CKJ)
to reject the lease of a 326,500 square-foot warehouse
Building located at 100 Porete Avenue in North
Arlington, Bergen County, New Jersey, with AMB
Property; and
(ii) To the extent necessary, approving and authorizing CKJ
to reject the Sublease of the leased premises with AM
Cosmetics.
Ms. McColm explains that neither CKJ nor any of the other
Debtors need the leased premises, and AM Cosmetics is already
behind its obligations to CKJ under the sublease. Ms. McColm
adds AM Cosmetics has also admitted it can no longer continue
paying for its ongoing obligations, including the obligations to
pay rent and real property taxes, under the sublease. Besides,
Ms. McColm notes, the leased premises are in need of structural
repairs, which neither the lessor nor the subleasee have
undertaken.
According to Ms. McColm, the immediate rejection of the lease
and the termination of the sublease will save the Debtors'
estates approximately $158,600 per month in administrative
expenses, including monthly rent of $132,484.35 and quarterly
property taxes in the amount of $78,315 or $26,105 per month, as
well as additional amounts for insurance premiums, utility costs
and other charges under the lease. (Warnaco Bankruptcy News,
Issue No. 4; Bankruptcy Creditors' Service, Inc., 609/392-0900)
WELLCARE MANAGEMENT: Auditors Doubt Going Concern Ability
---------------------------------------------------------
For the three months ended March 31, 2001 WellCare Management
Group Inc. had total revenue of $24,047, as compared to the
comparable three month period of 2000 when total revenue was
$19,174. Net income for the March 31, 2001 three months was
$301, while in the 2000 same period net income was $475.
The Company's financial statements were prepared assuming that
the Company will continue as a going concern. The auditors'
report on the Company's 2000 financial statements states that
"the Company's recurring losses from operations, working capital
deficit, shareholders' deficiency, failure to achieve the
minimum statutory equity requirements of the State of New York
Insurance Department and failure to maintain the minimum risk
based capital requirements of the State of Connecticut Insurance
Department raise substantial doubt about its ability to continue
as a going concern."
WINSTAR COMM: Asks To Employ & Pay Ordinary Course Professionals
----------------------------------------------------------------
To avoid any disruption in their day-to-day operations, Winstar
Communications, Inc. seeks the Court's authority to continue the
retention of various professionals utilized by the Debtors in
the ordinary course of their business:
a) Betancourt, Van Hemmen & Greco
b) Clifford Chance
c) Collier Jacob & Mills
d) Coudert Brothers
e) Deloitte & Touche LLP
f) Dilworth & Barrese LLP
g) Dold, Spath & McKelvie P.C.
h) Donovan & Yee
i) Geary, Porter & Donovan
j) Grau & Bassett P.C.
k) Greenberg Traurig
l) Holland & Hart
m) James & Franklin
n) Kane Russell Coleman & Logan P.C.
o) Larkin, Hoffman, Daly & Lindgren, Ltd.
p) LeBoeuf, Lamb, Greene & MacRae LLP
q) Lewis & Roca LLP
r) McShea/Tecce P.C.
s) Morgan, Lewis & Bockius LLP
t) Morrison & Foerster LLP (New York)
u) Morrison & Foerster LLP (California)
v) Obermayer Rebmann Maxwell & Hippel
w) O'Melveny & Myers LLP
x) Orrick Herrington & Sutcliffe
y) Osler Hoskin & Harcourt
z) Paul, Weiss, Rifkind, Wharton & Garrison
aa) Preston Gates Ellis LLP
bb) Salans Hertzfeld Heilbronn Christy & Viener
cc) Schwartz Hannum P.C.
dd) Schottenstein, Zox & Dunn
ee) Seyfarth Shaw
ff) Stevens & Lee
The Debtors also ask Judge Farnan for authority to pay each
ordinary course professional, on an interim basis and without an
application to the Court by such professional, 100% of fees and
disbursements incurred.
But, Pauline K. Morgan, Esq., at Young Conaway Stargatt &
Taylor, in Wilmington, Delaware, emphasizes that such payments
would only be made after appropriate invoices detailing the
nature of the services rendered and the disbursements actually
incurred are submitted to and approved by the Debtors. However,
subject to further order of the Court:
(i) The Debtors shall not pay to any individual ordinary
course professional aggregate amounts in excess of
$50,000 for post-petition compensation and reimbursement
of post-petition expenses relating to any one-month
period;
(ii) All payments to the ordinary course professionals in
the aggregate shall not exceed $300,000 in any given
month; and
(iii) The Debtors shall not pay to any individual ordinary
course professional aggregate amounts in excess of
$200,000 for the period of these chapter 11 cases.
If necessary, Ms. Morgan notes, the Debtors may retain more
ordinary course professionals from time to time. A copy of the
supplemental list will be furnished to the Court, the Office of
the United States Trustee, counsel for the Debtors' pre-petition
secured bank lenders, counsel for the Debtors' post-petition
secured lenders, and counsel for the Creditors' Committee. If
there are no objections within 10 days after service, the
supplemental list will be considered approved without a hearing.
Each ordinary course professional is required to:
(i) file with the Court an affidavit disclosing their
relationship with the Debtors (including unpaid pre-petition
services), creditors and equity security holders of the Debtors
and other parties-in- interest in these cases, and
(ii) serve copies thereof on the Debtors, the Office of the
United States Trustee, counsel to the Creditors' Committee,
counsel to the Pre-Petition Lenders, counsel to the DIP Lenders,
and those parties who have requested notice, prior or together
with the submission to the Debtors of invoices accompanying a
request of compensation.
Ms. Morgan emphasizes that each any ordinary course professional
must follow these procedures or the Debtors refuse to pay them.
(Winstar Bankruptcy News, Issue No. 8; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
ZANY BRAINY: Will File Plan Within 60 Days After Asset Transfer
---------------------------------------------------------------
Bankrupt toy retailer Zany Brainy Inc. plans to file a
reorganization plan and disclosure statement no later than 60
days after the closing date of a proposed asset transfer with
Waterton Management LLC, Dow Jones reported. Zany Brainy said
the plan would provide for an effective date of no earlier than
Jan. 2 and no later than Feb. 17, 2002. A hearing to finalize
the agreement is set for Aug. 10 in the U.S. Bankruptcy Court in
Wilmington, Del. Approval would enable Zany Brainy to pay its
debts, shore up its operating capital and cover the costs of
inventory at the retailer's stores.
Last week, the company announced that Waterton, a privately held
investment firm in Los Angeles, would acquire Zany Brainy for
$115 million. Court papers outline a proposal in which Zany
Brainy's assets would be transferred to a newly formed limited
liability company called Subco, where 100 percent of the
membership interests of Subco would be collectively owned by the
debtors. Under the deal, Subco would enter a secured loan
agreement with parties controlled or affiliated with Waterton.
The lenders will give Subco $68 million, plus $15 million more
to provide working capital for the holding company. The loan
structure also provides for another $12.1 million described as a
closing contribution.
Zany Brainy and five of its subsidiaries filed for chapter 11
bankruptcy protection on May 15 and listed consolidated assets
of about $242.1 million and debts of about $137.9 million as of
March 3. (ABI World, July 23, 2001)
ZCONNEXX: Fails to Agree With G&V Financial, Officers Resign
------------------------------------------------------------
Zconnexx Corporation (CDNX: ZXX) says it could not reach an
agreement with its new secured creditor, G&V Financial LLC. The
long-term budget is needed to accommodate operations at a
satisfactory level to support the current customer base of
approximately 4,000 subscribers.
The Company also reported that all of the directors and officers
of Zconnexx Corporation have resigned and the President,
Secretary and Director of Zconnexx America, Inc., the Company's
wholly-owned Delaware subsidiary, has also resigned.
* Meetings, Conferences and Seminars
------------------------------------
June 30 through July 5, 2001
National Association of Chapter 13 Trustees
Annual Seminar
Marriott Hotel and Marina, San Diego, California
Contact: 1-800-445-8629 or http://www.nactt.com
July 12-15, 2001
American Bankruptcy Institute
Northeast Bankruptcy Conference
Stoweflake Resort, Stowe, Vermont
Contact: 1-703-739-0800 or http://www.abiworld.org
July 17-20, 2001
INSOL International
6th World Congress
London, England
Contact: tina@insol.ision.co.uk or
http://www.insol2001.com
July 19, 2001
International Women's Insolvency and Restructuring
Confederation (IWIRC)
Latest Events in Chapter 11 Practice
The Princeton Club, New York, NY
Contact: 212-481-4369
July 25, 2001
Practising Law Institute (PLI)
How to Handle Consumer Bankruptcy Cases:
A Practical Step-by-Step Guide
Practising Law Institute (PLI), 810 Seventh Avenue,
New York, New York
Contact: 1-800-260-4PLI or http://www.pli.edu
July 26-28, 2001
ALI-ABA
Chapter 11 Business Reorganizations
Hotel Loretto, Santa Fe, New Mexico
Contact: 1-800-CLE-NEWS or http://www.ali-aba.org
August 1-4, 2001
American Bankruptcy Institute
Southeast Bankruptcy Conference
The Ritz-Carlton, Amelia Island, Florida
Contact: 1-703-739-0800 or http://www.abiworld.org
August 10-11, 2001
Association of Insolvency and Restructuring Advisors
Distressed M&A Conference
Ocean Place Conference Resort, Long Branch, New Jersey
Contact: aira@airacira.org
September 6-9, 2001
American Bankruptcy Institute
Southwest Bankruptcy Conference
The Four Seasons Hotel, Las Vegas, Nevada
Contact: 1-703-739-0800 or http://www.abiworld.org
September 7-11, 2001
National Association of Bankruptcy Trustees
Annual Conference
Sanibel Harbor Resort, Ft. Myers, Florida
Contact: 1-800-445-8629 or http://www.nabt.com
September 10-11, 2001
RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP
Fourth Annual Conference on Corporate Reorganizations
The Knickerbocker Hotel, Chicago, IL
Contact 1-903-592-5169 or ram@ballistic.com
September 13-14, 2001
ALI-ABA
Corporate Mergers and Acquisitions
Washington Monarch, Washington, D. C.
Contact: 1-800-CLE-NEWS or http://www.ali-aba.org
September 14-15, 2001
American Bankruptcy Institute
ABI/Georgetown Program "Views from the Bench"
Georgetown University Law Center, Washington, D.C.
Contact: 1-703-739-0800 or http://www.abiworld.org
October 3-6, 2001
American Bankruptcy Institute
Litigation Skills Symposium
Emory University School of Law, Atlanta, Georgia
Contact: 1-703-739-0800 or http://www.abiworld.org
October 12-16, 2001
TURNAROUND MANAGEMENT ASSOCIATION
2001 Annual Conference
The Breakers, Palm Beach, FL
Contact: 312-822-9700 or info@turnaround.org
October 16-17, 2001
International Women's Insolvency and Restructuring
Confederation (IWIRC)
Annual Fall Conference
Somewhere in Orlando, Florida
Contact: 703-449-1316 or
http://www.inetresults.com/iwirc
October 28 - November 2, 2001
IBA Business Law International Conference
Including Insolvency and Creditors Rights Sessions
Cancun, Mexico
Contact: +44 (0) 20 7629 1206
http://www.ibanet.org/cancun
November 26-27, 2001
RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP
Seventh Annual Conference on Distressed Investing
The Plaza Hotel, New York City
Contact 1-903-592-5169 or ram@ballistic.com
November 29-December 1, 2001
American Bankruptcy Institute
Winter Leadership Conference
La Costa Resort & Spa, Carlsbad, California
Contact: 1-703-739-0800 or http://www.abiworld.org
January 31 - February 2, 2002
American Bankruptcy Institute
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colorado
Contact: 1-703-739-0800 or http://www.abiworld.org
January 11-16, 2002
Law Education Institute, Inc
National CLE Conference(R) - Bankruptcy Law
Steamboat Grand Resort, Steamboat Springs, Colorado
Contact: 1-800-926-5895 or
http://www.lawedinstitute.com
February 28-March 1, 2002
ALI-ABA
Corporate Mergers and Acquisitions
Renaissance Stanford Court, San Francisco, California
Contact: 1-800-CLE-NEWS or http://www.ali-aba.org
March 3-6, 2002 (tentative)
NORTON INSTITUTES ON BANKRUPTCY LAW
Norton Bankruptcy Litigation Institute I
Park City Marriott Hotel, Park City, Utah
Contact: 770-535-7722 or Nortoninst@aol.com
March 15, 2002 (Tentative)
American Bankruptcy Institute
Bankruptcy Battleground West
Century Plaza Hotel, Los Angeles, California
Contact: 1-703-739-0800 or http://www.abiworld.org
March 20-23, 2002
TURNAROUND MANAGEMENT ASSOCIATION
Spring Meeting
Sheraton El Conquistador Resort & Country Club
Tucson, Arizona
Contact: 312-822-9700 or info@turnaround.org
April 10-13, 2002 (tentative)
NORTON INSTITUTES ON BANKRUPTCY LAW
Norton Bankruptcy Litigation Institute II
Flamingo Hilton, Las Vegas, Nevada
Contact: 770-535-7722 or Nortoninst@aol.com
April 18-21, 2002
American Bankruptcy Institute
Annual Spring Meeting
J.W. Marriott, Washington, D.C.
Contact: 1-703-739-0800 or http://www.abiworld.org
May 13, 2002 (Tentative)
American Bankruptcy Institute
New York City Bankruptcy Conference
Association of the Bar of the City of New York
New York, New York
Contact: 1-703-739-0800 or http://www.abiworld.org
June 6-9, 2002
American Bankruptcy Institute
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Michigan
Contact: 1-703-739-0800 or http://www.abiworld.org
June 27-30, 2002
NORTON INSTITUTES ON BANKRUPTCY LAW
Western Mountains, Advanced Bankruptcy Law
Jackson Lake Lodge, Jackson Hole, Wyoming
Contact: 770-535-7722 or Nortoninst@aol.com
June __, 2002
American Bankruptcy Institute
Delaware Bankruptcy Conference
Hotel Dupont, Wilmington, Delaware
Contact: 1-703-739-0800 or http://www.abiworld.org
October 9-11, 2002
INSOL International
Annual Regional Conference
Beijing, China
Contact: tina@insol.ision.co.uk or
http://www.insol.org
October 24-28, 2002
TURNAROUND MANAGEMENT ASSOCIATION
Annual Conference
The Broadmoor, Colorado Springs, Colorado
Contact: 312-822-9700 or info@turnaround.org
December 5-8, 2002
American Bankruptcy Institute
Winter Leadership Conference
The Westin, La Plaoma, Tucson, Arizona
Contact: 1-703-739-0800 or http://www.abiworld.org
April 10-13, 2003
American Bankruptcy Institute
Annual Spring Meeting
Grand Hyatt, Washington, D.C.
Contact: 1-703-739-0800 or http://www.abiworld.org
December 5-8, 2003
American Bankruptcy Institute
Winter Leadership Conference
La Quinta, La Quinta, California
Contact: 1-703-739-0800 or http://www.abiworld.org
April 15-18, 2004
American Bankruptcy Institute
Annual Spring Meeting
J.W. Marriott, Washington, D.C.
Contact: 1-703-739-0800 or http://www.abiworld.org
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via
e-mail to conferences@bankrupt.com are encouraged.
*********
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
Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard
Group, Inc., Washington, DC USA. Debra Brennan, Yvonne L.
Metzler, Bernadette de Roda, Aileen Quijano and Peter A.
Chapman, Editors.
Copyright 2001. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers. Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.
The TCR subscription rate is $575 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 301/951-6400.
*** End of Transmission ***