TCR_Public/020218.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

            Monday, February 18, 2001, Vol. 6, No. 34

                           Headlines

AMC ENTERTAINMENT: Registers 9 Million Shares of Common Stock
AMF BOWLING: S&P Ups Rating to B After Emergence from Bankruptcy
BANYAN STRATEGIC: Amends CEO Schafran's Employment Contract
BURNHAM PACIFIC: Liquidating Distribution Record Date is Feb. 28
COMDISCO INC: Net Loss Narrows to $12 Mill. in December Quarter

COMDISCO INC: Exclusive Period Extended through April 15
COMPOSITE SOLUTIONS: Needs More Funds to Continue Operations
CONTINENTAL AIRLINES: Vanguard Windsor Holds 8.96% Equity Stake
CRESCENT OPERATING: CEI Inks Pact to Fund Prepackaged Bankruptcy
CROWN CORK: Reports Losses for Fourth Quarter and Full-Year 2001

DELTA AIR LINES: Vanguard PRIMECAP Holds 8.11% Equity Interest
ELEC COMMUNICATIONS: Nasdaq Denies Request for Continued Listing
ENRON CORP: Texas Seeks Appointment of Retirees' Committee
ENRON CORP: Former Employees Win Place at Bankruptcy Table
ENVIRO-RECOVERY: "Concerned Shareholders" Set Special Meeting

ENVIRO-RECOVERY: Involuntary Case Summary
EXODUS COMMUNICATION: Settles $7.9M Dispute With StorageNetworks
FEDERATED DEPT: Shareholders Balk at Fingerhut's Liquidation
FLAG TELECOM: Fitch Places Low-B Rating on Watch Negative
FUELNATION: Moore Stephens Replaces Sellers as Accountants

GLOBAL CROSSING: UST Appoints Unsecured Creditors' Committee
GLOBALSTAR L.P.: Files for Chapter 11 Reorganization in Delaware
GLOBALSTAR L.P.: Case Summary & Largest Unsecured Creditors
GLOBIX CORP.: Filing For Chapter 11 With Prepack Plan This Week
GLOBIX CORP: EBITDA Loss Slides-Down to $11 Million in Q1 2002

HA-LO INDUSTRIES: Seeks Okay to Hire Arthur Andersen as Auditors
HARBISON-WALKER: Chapter 11 Case Summary
HARBISON-WALKER: TRO Halts Asbestos Claims against Halliburton
INTERACTIVE NETWORK: Shareholders to Convene on March 21 in L.A.
IT GROUP: Bringing-In Zolfo Cooper As Bankruptcy Consultant

INTEGRATED HEALTH: Court Confirms Rotech Plan Of Reorganization
INT'L FIBERCOM: Files for Chapter 11 Protection in Arizona
INT'L FIBERCOM: Case Summary & 20 Largest Unsecured Creditors
KAISER ALUMINUM: Blocking Enforcement of Senior Debt Guarantees
KAISER ALUMINUM: S&P Drops Ratings to D After Chapter 11 Filing

KC ACQUISITION: Fails to Pay $1.7 Million Security Assoc. Debt
KMART CORPORATION: Paying Pre-Petition Foreign Vendor Claims
LUBY'S INC.: Dimensional Fund Reports 7% Equity Stake
MAGNUM HUNTER: Special Stockholders' Meeting Set For March 13
MARINER POST-ACUTE: Confirmation Hearing Set for March 25, 2002

MCLEODUSA INC: Taps Houlihan Lokey as Financial Advisor
MEDICALOGIC: Bankruptcy Filing Prompts Nasdaq Delisting
NATIONSRENT INC: Committee Retains Bayard Firm as Co-Counsel
OPEN PLAN: Royce and Associates Discloses 9.99% Equity Stake
PINNACLE ENTERTAINMENT: S&P Ratchets Ratings Down One Notch

POLYPORE: S&P Assigns B+ Rating to New $160 Million Term Loan
PSINET INC: Selling Foliofn Securities For $1.5 Million Cash
ROADHOUSE GRILL: Asks Court to Dismiss Involuntary Petition
SOFTWARE LOGISTICS: Synnex Overbids Zomax by $4MM & Wins Assets
SPALDING HOLDINGS: S&P Drops Rating to D After Missing Payment

SUN HEALTHCARE: Reorganized Debtors' Board of Directors
TOWER AUTOMOTIVE: American Express Discloses 5.3% Equity Stake
TREESOURCE INDUSTRIES: Will Go Private After Bankruptcy Exit
WHX CORPORATION: Using Wheeling Downs Sale Proceeds To Cut Debts
WILLIAMS CONTROLS: David S. Eberly Joins Board of Directors

XO COMMS: Posts Lower EBITDA Losses in 2001 Fourth Quarter

* PENTA Advisory Services Hires Claybrook to Lead New DE Office

* BOND PRICING: For the week of February 18 - 22, 2002

                           *********

AMC ENTERTAINMENT: Registers 9 Million Shares of Common Stock
-------------------------------------------------------------
AMC Entertainment Inc. is selling 9,000,000 shares of its common
stock. The Company has granted the underwriters an option to
purchase up to 1,350,000 additional shares of common stock to
cover over-allotments. AMC's common stock is listed on the
American Stock Exchange under the symbol "AEN." The last
reported sale price of the common stock on the American Stock
Exchange on January 29, 2002, was $11.25 per share.

AMC's common stock has one vote per share. Its Class B Stock has
ten votes per share. Holders of its common stock generally vote
as a class with holders of its Class B Stock and holders of its
Series A Convertible Preferred Stock (other than the original
purchasers of its Series A Convertible Preferred Stock and their
affiliates) on an as converted basis, on all matters other than
the election of directors. Holders of AMC's common stock
generally have the right to elect two of the eight members of
the Board of Directors.

AMC is the largest movie exhibitor in the U.S. based on
revenueand the second-largest based on screen count. It has one
of theindustry's most modern theater circuits due to its
rapidexpansion and consistent disposition activity since 1995.
At September 27, 2001, the company reported a working capital
deficit of over $93 million.


AMF BOWLING: S&P Ups Rating to B After Emergence from Bankruptcy
----------------------------------------------------------------
Standard & Poor's raised its corporate credit rating on bowling
center operator AMF Bowling Worldwide Inc. to single-'B' from
'D' following the approval of Richmond, Virginia-based AMF
Bowling's bankruptcy reorganization and proposed new capital
structure.

Standard & Poor's also said it was assigning its single-'B' bank
loan rating to the company's proposed $350 million senior
secured bank facility, and that all previous issue ratings on
the company have been withdrawn. The new issue consists of a $75
million revolving credit facility due in 2007 and a $275 million
term loan due in 2008. The current outlook is stable.

The new funding should be finalized when the company completes
its bankruptcy reorganization within the next six weeks. The
loan facility is expected to be used to help fund cash
distributions required under the company's reorganization plan
and to fund the operating company's working capital and letter
of credit needs.

Standard & Poor's credit analyst Alyse Michaelson said "Standard
& Poor's ratings incorporate the expectation that the company's
management will moderate its financial policies, and that the
company will generate sufficient cash flow to manage its capital
structure and gradually improve financial flexibility over the
near term."

AMF is the world's largest owner and operator of retail bowling
centers in a highly fragmented industry. The company is also one
of the two major manufacturers of bowling equipment, which is
sold to independent operators.

Standard & Poor's said that its ratings reflect AMF's strong
position in the bowling center and equipment industries, a
degree of business diversity, and the company's significantly
reduced debt burden and amortization requirements following the
recapitalization. These factors are offset by the secular
decline in the U.S. bowling center industry and considerable
contraction in demand for bowling products that could hamper
cash flow growth and improvement in key credit ratios over the
near term.

DebtTraders reports that AMF Bowling Worldwide's 12.250% bonds
due 2006 (AMBW2) are trading between 2.5 and 3.5. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=AMBW2for  
real-time bond pricing.


BANYAN STRATEGIC: Amends CEO Schafran's Employment Contract
-----------------------------------------------------------
Banyan Strategic Realty Trust (Nasdaq: BSRTS) executed an
amendment to the employment contract between the Trust and L.G.
Schafran, the Trust's Chairman, Interim President and Chief
Executive Officer. The original contract expired on February 13,
2002.

The Term of the amendment is from February 13, 2002 until the
final liquidation and dissolution of the Trust in accordance
with the Plan of Termination and Liquidation, adopted January 5,
2001.

Under the terms of the amendment, Schafran will no longer be
paid an annual salary, but will instead bill the Trust on an
hourly basis for services rendered at the rate of $300.00 per
hour. His reasonable business expenses (including health
insurance premiums) will also be reimbursed.

Mr. Schafran will continue to serve as Chairman of the Board of
Trustees in addition to Interim President and CEO. Under the
terms of the Trust's declaration, Mr. Schafran, as an officer,
is deemed not to be an independent trustee and is not entitled
to any compensation for serving as a trustee. The Trust's board
remains comprised of three independent trustees and Mr.
Schafran.

In other news, the Trust announced that at the annual meeting of
shareholders held on January 30, 2002, current trustees Walter
E. Auch, Sr., Daniel Levinson, Steven Peck and L.G. Schafran
were re-elected to an additional term.

Following the annual meeting, the Trust's board of trustees
approved terminating the Trust's Stock Option Program. Under the
Program, each independent trustee is granted options to purchase
2,000 shares of the Trust's shares of beneficial interest ten
days following his or her re-election as a trustee. In
connection with terminating the Program, each trustee
surrendered any unexercised vested options, which were granted
under the Program in consideration for a cash payment equal to
the surrender value of the options. As a result, Mr. Auch
received $5,375.00 in exchange for his vested options; Mr.
Levinson received $2,125.00, Mr. Peck received $2,125.00
and Mr. Schafran (who had received options under the Program
prior to his appointment as Chief Executive Officer and Interim
President) received $1,125.00.

Banyan Strategic Realty Trust is an equity Real Estate
Investment Trust (REIT) which, on January 5, 2001, adopted a
Plan of Termination and Liquidation. On May 17, 2001, the Trust
sold approximately 85% of its portfolio in a single transaction
and now owns interests in three (3) real estate properties
located in Atlanta, Georgia; Huntsville, Alabama; and
Louisville, Kentucky. As of this date the Trust has 15,496,806
shares of beneficial interest outstanding.


BURNHAM PACIFIC: Liquidating Distribution Record Date is Feb. 28
----------------------------------------------------------------
Burnham Pacific Properties, Inc. (NYSE: BPP) announced that its
Board of Directors has fixed the close of business on February
28, 2002 as the record date for determining stockholders
entitled to receive a liquidating distribution out of proceeds
from the pending sale of two of the Company's California retail
assets to Developers Diversified Realty Corporation (DDR),
which is tentatively scheduled to close not later than February
28, 2002.

Under the purchase agreement with DDR, the two assets are
expected to be sold for an aggregate of approximately $65.4
million, of which at least $15.1 million is to be paid in cash.
At DDR's option, any or all of the remaining balance may be paid
in cash or, subject to certain conditions, by the issuance of
DDR common shares to the Company.

The specific amount and form (i.e., cash and/or DDR common
shares) of the liquidating distribution, as well as its payment
date, will be announced by the Company in a subsequent press
release to be issued only when and if the sale of the assets to
DDR is consummated. There can be no assurance that the closing
of the transaction with DDR will occur on its current terms,
when currently anticipated, or at all. As a result, there can be
no assurance as to the amount or form of the liquidating
distribution, the timing thereof, or that the liquidating
distribution will be made at all.

Because the liquidating distribution is conditioned on the
closing of the transaction with DDR, the NYSE has informed the
Company that normal "ex-dividend" procedures will be deferred
and due-bills will be used. As a result, a seller of Burnham's
common stock during the period beginning on the second business
day prior to the record date until a subsequent "ex-dividend"
date established by the NYSE will be required to assign the
right to the liquidating distribution to the purchaser of such
shares. Investors are encouraged to consult their brokers for
more information regarding these procedures.

The announcement of this conditional liquidating distribution
and the NYSE's modified procedures will have no effect on the
Company's previously announced liquidating distribution of cash
in the amount of $0.45 per common share, which is payable on
February 22, 2002 to stockholders of record as of the close of
business on February 14, 2002.

Under the purchase agreement with DDR, DDR has agreed to
purchase the Company's owned portion of 1000 Van Ness, which is
a mixed-use property in downtown San Francisco containing
123,000 square feet of gross leaseable area. DDR has also agreed
to purchase Hilltop Plaza Shopping Center, a 245,000 square foot
open-air community shopping center, located along Interstate 80
in Richmond, California.

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


COMDISCO INC: Net Loss Narrows to $12 Mill. in December Quarter
---------------------------------------------------------------
Comdisco, Inc., (NYSE:CDO) reported operating results for its
fiscal first quarter ended December 31, 2001.

                   Operating Results

For the fiscal first quarter, Comdisco reported a loss from
continuing operations of $216 million as compared with earnings
of $86 million, for the year earlier period. These results
exclude Comdisco's Availability Solutions business, which has
been recorded as a discontinued operation following the sale of
the business to SunGard (NYSE:SDS) on November 15, 2001. The
decrease in fiscal 2002 compared to the first quarter of fiscal
2001 was primarily the result of losses from Comdisco Ventures
and a pretax charge of $250 million ($189 million after-tax or
$1.25 per common share) to reduce cost in excess of fair value
related to the sale of the company's Electronics and Laboratory
and Scientific assets.

Net earnings from discontinued operations was $204 million, or
$1.36 per common share, for the three months ended December 31,
2001 compared to $0 million in the year earlier period.
Approximately $199 million (or $1.32 per share) of the net
earnings within discontinued operations for the current year
period relates to the gain on the sale of the Availability
Solutions business.

Overall, the company had a net loss for the first quarter of $12
million, compared to net earnings of $88 million for the prior
year period. Total revenue for the three months ended December
31, 2001, was $496 million, compared to $788 million for the
prior year quarter. The decrease in total revenue in the current
year compared to the year earlier period is due to lower
revenues from the sale of equity securities in Comdisco
Ventures' portfolio, and lower leasing and remarketing revenues.

             Leasing Sales Evaluation Process

On January 25, 2002, Comdisco announced that the U.S. Bankruptcy
Court for the Northern District of Illinois approved the sale of
the company's Electronics and Laboratory & Scientific Leasing
businesses to GE Capital's Commercial Equipment Financing unit.
Under the terms of the agreement, GE Capital Equipment Financing
will pay Comdisco approximately $665 million, plus future
contingent payments based on portfolio performance. The
consideration includes the assumption of approximately $250
million of related secured debt. The sales are expected to close
no later than March 31, 2002. Not including proceeds from this
sale, Comdisco's cash position as of February 14, 2002 was
approximately $1.8 billion.

On February 5, 2002, the company announced it had completed the
Bankruptcy Court supervised sales evaluation process for its
remaining leasing businesses--North American IT Leasing,
Telecommunications and Healthcare--without completing a
transaction and intends to retain those businesses. The company
said it would now focus on its plan of reorganization.

Comdisco, Inc. and 50 domestic U.S. subsidiaries filed voluntary
petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code in the U.S. Bankruptcy Court for the Northern District of
Illinois on July 16, 2001. The filing allows the company to
provide for an orderly sale of some of its businesses, while
resolving short-term liquidity issues and enabling the company
to reorganize on a sound financial basis to support its
continuing businesses.

Comdisco's operations located outside of the United States were
not included in the Chapter 11 reorganization cases. All of
Comdisco's businesses, including those that filed for Chapter
11, are conducting normal operations. The company has targeted
emergence from Chapter 11 during the first half of 2002.

Comdisco -- http://www.comdisco.com-- provides technology  
services worldwide to help its customers maximize technology
functionality, while freeing them from the complexity of
managing their technology. The Rosemont (IL) company offers
leasing to key vertical industries, including semiconductor
manufacturing and electronic assembly, healthcare,
telecommunications, pharmaceutical, and biotechnology. Through
its Ventures division, Comdisco provides equipment leasing and
other financing and services to venture capital backed
companies.


COMDISCO INC: Exclusive Period Extended through April 15
--------------------------------------------------------
Comdisco, Inc., (NYSE:CDO) announced that the U.S. Bankruptcy
Court for the Northern District of Illinois approved the
company's request for an extension of the exclusive periods
during which only Comdisco may file a plan of reorganization and
solicit acceptances for that plan. These periods, which had been
scheduled to expire on March 15, 2002, and May 15, 2002, have
now been extended to April 15, 2002 and June 15, 2002,
respectively.

The company announced on February 5, 2002, that it had completed
the U.S. Bankruptcy Court-supervised sales evaluation process
for its remaining leasing businesses--North American Information
Technology (IT) Leasing, Telecommunications and Healthcare--
without completing a transaction and that it intends to retain
those businesses. Comdisco said that it would now focus on
filing its plan of reorganization.

Comdisco also announced that the Court has approved the sale of
substantially all of the Company's North American IT CAP
(Information Technology Control and Predictability) Services
contracts to Lisle-IL based T-Systems, Inc. The sale is expected
to close no later than February 28, 2002. T-Systems plans to
offer employment to about 30, or substantially all, of
Comdisco's North American IT CAP employees.

Comdisco, Inc., and 50 domestic U.S. subsidiaries filed
voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the Northern
District of Illinois on July 16, 2001. The filing allows the
company to provide for an orderly sale of some of its
businesses, while resolving short-term liquidity issues and
enabling the company to reorganize on a sound financial basis to
support its continuing businesses.

Comdisco's operations located outside of the United States were
not included in the Chapter 11 reorganization cases. All of
Comdisco's businesses, including those that filed for Chapter
11, are conducting normal operations. The company has targeted
emergence from Chapter 11 during the first half of 2002.

Comdisco -- http://www.comdisco.com-- provides technology  
services worldwide to help its customers maximize technology
functionality, while freeing them from the complexity of
managing their technology. The Rosemont (IL) company offers
leasing to key vertical industries, including semiconductor
manufacturing and electronic assembly, healthcare,
telecommunications, pharmaceutical, and biotechnology. Through
its Ventures division, Comdisco provides equipment leasing and
other financing and services to venture capital backed
companies.


COMPOSITE SOLUTIONS: Needs More Funds to Continue Operations
------------------------------------------------------------
Composite Solutions Inc., formerly JS Business Works, Inc., was
incorporated in the state of Florida on October 20, 1997. The
Company has two wholly owned subsidiaries: Composite Solutions
Inc., incorporated in the state of Nevada on December 8, 1998,
and Trans-Science Corporation, incorporated in the state of
California on September 15, 1980. During the period August 16,
2000 to March 31, 2001, the company had another wholly owned
subsidiary, Penultimo, Inc. dba Anchor Reinforcements which was
incorporated in the state of California on January 13, 1992.
Composite Solutions Inc. and subsidiaries were organized to
develop, manufacture and market high technology products and
processes to be utilized in key areas of existing and new
construction.

The Company is in the development stage and its efforts through
September 30, 2001 have been principally devoted to raising
additional capital and negotiating with potential key personnel
and leasing facilities. There is no assurance that any benefit
will result from such activities. The Company will continue to
incur expenses and losses as it pursues its development efforts.

The Company's financial position and operating results raise
substantial doubt about its ability to continue as a going
concern, as reflected by the net loss of $1,367,322 for the year
ended September 30, 2001 and losses of $3,045,080 accumulated
from October 20, 1997 (Inception) to September 30, 2001. In
addition the Company's current liabilities exceeds current
assets by $1,035,403 at September 30, 2001. The ability of the
Company to continue as a going concern is dependent upon
commencing operations, developing sales and obtaining additional
capital and financing.


CONTINENTAL AIRLINES: Vanguard Windsor Holds 8.96% Equity Stake
----------------------------------------------------------------
Vanguard Windsor Funds-Windsor Fund beneficially owns 8.96% of
the outstanding common stock of Continental Airlines. The Funds
hold sole power to vote, and shared power to dispose of the
4,964,700 shares beneficially held.

Continental breakfast? It's available on Continental Airlines,
which serves more than 135 US cities and more than 95 cities.
The #5 US carrier (trailing United, American, Delta, and
Northwest) has hubs in Cleveland, Houston, and Newark, New
Jersey. Continental Micronesia serves the western Pacific from
Guam, and regional carrier Continental Express serves 70 US
cities. Continental code-shares with airlines such as Air
France, Alitalia, and Virgin Atlantic. It has a major alliance
with Northwest Airlines, which includes code-sharing as well as
shared frequent-flyer programs. In the wake of terrorist attacks
in Sept. 2001, the airline is paring down flights and laying off
more than 21% of its workforce.


CRESCENT OPERATING: CEI Inks Pact to Fund Prepackaged Bankruptcy
----------------------------------------------------------------
Crescent Operating, Inc. (OTCBB: COPI.OB) has executed an
agreement with Crescent Real Estate Equities Company (NYSE:CEI),
which provides, among other things, the basis for Crescent
Operating to file a prepackaged bankruptcy plan that the Company
believes will provide for a limited recovery to its
stockholders. In summary, the Agreement provides the following:

     -- CEI will assist and provide funding to Crescent
Operating for the implementation of a prepackaged bankruptcy of
Crescent Operating, which funding is expected to provide for the
settlement or satisfaction of all of the Company's known
creditors.

     -- Crescent Operating will immediately transfer to CEI
assets related to its hospitality business and will permit CEI
to foreclose on the Company's equity interests in its
residential land development and related entities. In connection
with the transfer and foreclosure, CEI will cancel and
extinguish indebtedness and lease obligations aggregating
approximately $63.7 million.

     -- The Agreement provides for the issuance of CEI common
shares to Crescent Operating stockholders, following
confirmation of Crescent Operating's bankruptcy plan. CEI has
agreed to provide approximately $14.0 million to Crescent
Operating in the form of cash and common shares of CEI to fund
costs, claims and expenses relating to the bankruptcy and
related transactions, and to provide for the distribution of CEI
common shares to the Crescent Operating stockholders. As part of
the bankruptcy, it is expected that the balance of the
indebtedness and lease obligations of Crescent Operating to CEI
will be canceled. The number of CEI common shares to be issued
to the Company stockholders will be based upon the aggregate
claims, costs and expenses incurred by CEI and Crescent
Operating in connection with the Company's bankruptcy and
related transactions. The Company anticipates that the value of
the CEI common shares issued (which is part of the $14.0 million
consideration previously mentioned) will be approximately $5.0
to $8.0 million, or approximately $0.46 to $0.74 per share of
Crescent Operating common stock. The final amount, which will
not be determined until the confirmation of Crescent Operating's
bankruptcy plan, could vary substantially from this estimate.

     -- The Agreement calls for the proposed bankruptcy plan to
be submitted to the Company's stockholders for approval. CEI
will not be obligated to issue its shares to the Company's
stockholders unless the holders of two-thirds of the shares that
are voted at the meeting approve the bankruptcy plan. The
Company is not required, however, to have stockholder approval
to file for bankruptcy protection, and will do so whether or not
approval is obtained. The Company believes that if it is
required to file for bankruptcy protection without the prior
stockholder approval of the bankruptcy plan, the stockholders
will receive nothing in the bankruptcy, as the Company's debts
far exceed its assets, and its creditors, including CEI, will
not be paid in full.

     -- Crescent Operating will further agree to sell its
interest in the tenant of the AmeriCold temperature controlled
logistics properties to a new entity that will be owned by the
CEI shareholders. The proceeds of the sale are to be applied by
the Company to the repayment of the Company's $15 million
obligation to Bank of America.

Prior to execution of the Settlement Agreement, all of the
members of the board of directors other than Jeffrey L. Stevens
resigned from the board of directors, and John Goff resigned as
president and chief executive officer due to the conflict of
interest between CEI and Crescent Operating. Jeffrey L. Stevens
will assume that position through completion of the bankruptcy
proceedings.

                   Important Information

Crescent Operating filed a preliminary proxy statement with the
Securities and Exchange Commission on February 14, 2002 in
connection with the proposals to be voted upon at a Special
Meeting of Stockholders of Crescent Operating to be held as soon
as practicable. In connection with the proposed transaction, CEI
will file an exchange offer prospectus and a registration
statement with the Commission. It is anticipated that the
definitive joint proxy statement/prospectus will be mailed in
April 2002 to each Crescent Operating stockholder of record on
the record date, subject to clearance from the Commission.
Crescent Operating and CEI and their respective officers and
directors may be considered participants in the solicitation of
proxies in favor of the proposal to be voted upon at the Special
Meeting. Information regarding their positions and security
holdings is available in the public filings of Crescent
Operating and CEI, which are available at the Commission's web
site at http://www.sec.gov Stockholders of Crescent Operating  
may obtain additional information regarding the interests of the
participants and additional information by reading the
definitive joint proxy statement/prospectus when it becomes
available.

Investors and stockholders may obtain a free copy of the
exchange offer prospectus, the proxy statement and related
documents from the Commission's web site at http://www.sec.gov.  
Free copies of these documents may also be obtained from CEI by
directing a request to Crescent Real Estate Equities Company,
Investor Relations, 777 Main Street, Suite 2100, Fort Worth,
Texas 76102, (817) 321-1412 or from Crescent Operating by
directing a request to Crescent Operating, Inc., Investor
Relations, 777 Taylor Street, Suite 1050, Fort Worth, Texas
76102, (817) 339-2200.


CROWN CORK: Reports Losses for Fourth Quarter and Full-Year 2001
----------------------------------------------------------------
Crown Cork & Seal Company, Inc. (NYSE: CCK) announced its
results for the fourth quarter and year ended December 31, 2001.  

Net sales of $7.2 billion for 2001 and $1.7 billion for the
fourth quarter were 1.4% below and 1.8% higher, respectively,
compared to prior year same period results.  Excluding negative
foreign currency translation effects of $147 million, net sales
would have been slightly higher in 2001 compared to 2000.

Operating income continued to be affected by depressed pricing
across many product lines.  Despite improved volumes across most
major product lines, fourth quarter operating income in 2001,
before charges, was also affected by the following factors
compared to the prior year: (i) the write-off of $8 million of
working capital associated with the closure of seven plants in
the U.S. and Europe, (ii) negative variances of $25 million on
lower overall production activity as the Company reduced
inventories by $426 million, or 33% from year-end 2000 levels,
and (iii) a liquidation of LIFO inventory layers carried at
higher costs which prevailed in prior years, the effect of which
was to increase cost of products sold by $10 million.

In 2001, cash flow from operations was $426 million before
capital expenditures of $168 million and asbestos-related
payments of $118 million. The improvement in cash flow from
operations of $60 million compared to 2000 is primarily due to
the previously announced working capital reduction initiative.  
Interest expense for the year was $455 million and $104 million
in the fourth quarter, increases of $62 million and $2 million,
respectively, over the prior year periods.  The increases
reflect higher average borrowing rates and debt outstanding
during the year.  Year-end net debt, net of cash of $456
million, was $4,869 million at December 31, 2001 compared to
$4,967 million at December 31, 2000, net of $382 million of
cash.  Outstanding receivable securitizations were $110 million
and $162 million at December 31, 2001 and 2000, respectively.

John W. Conway, Chairman and Chief Executive Officer, commented,
"In 2001, we made significant progress restructuring and
streamlining operations; we brought down inventories, lowered
our working capital requirements and have taken actions to
reduce excess capacity.  Late in the year, we also experienced a
more rational pricing environment.  Looking ahead, the Company
is focused on continuing to increase our operating efficiencies
and delevering.  We expect to benefit from the improving pricing
levels in 2002. However, we also anticipate those gains to be
partially offset by lower non- cash pension income."

                      Additional Charges

As previously announced, the Company, in the fourth quarter,
recorded $211 million and $47 million, respectively, related to
the pending divestitures of certain interests in Africa and the
closure of seven plants in the U.S. and Europe.  Consistent with
Statement of Financial Accounting Standards Board Opinion 109
("SFAS 109"), the Company also took a charge of $510 million or
$4.06 per share, during the fourth quarter, to record an
increase in the valuation allowance for net U.S. deferred tax
assets.

The Company has net operating loss carryforwards for tax
purposes ("NOLs") and other deferred tax benefits that are
available to offset future taxable income.  Only a portion of
the NOLs and deferred tax benefits are attributable to operating
activities with the remainder being attributable to U.S. tax
deductions related to asbestos-related payments and pension fund
contributions.  When viewed in the context of the applicable
accounting literature the losses generated for U.S. tax purposes
the last several years and the lack of projected U.S. taxable
income in the next two years, requires the Company to offset the
loss carryforward by a valuation allowance.  After the charge,
at December 31, 2001, the Company's net U.S. deferred tax assets
have now been fully offset by a valuation allowance.  In
accordance with SFAS 109, the Company will continue to assess
the valuation allowance and, to the extent it is determined that
such allowance is no longer required, the tax benefit of these
net deferred tax assets will be recognized to income in the
future.

In the fourth quarter, the Company recorded a net charge of $51
million ($0.41 per diluted share) to increase its asbestos
reserve.  In the quarter, the asbestos reserves were adjusted
because the year-old report of the Company's independent medical
demographic expert was updated to reflect 2001 data, and the
Commonwealth of Pennsylvania enacted legislation to limit
asbestos liabilities of a Pennsylvania corporation that were
inherited in a merger.  Based on the independent report, the
Company's own review and the views of counsel concerning the
possible effects of the legislation, the Company estimates that
its asbestos liability for pending and future asbestos claims
will range between $340 million to $580 million.  The charge of
$51 million increases the Company's reserve to the low end of
this range.

                    Review by Major Division

The Americas Division generated net sales of $853 million in the
fourth quarter and $3,666 million in 2001 compared to $850
million and $3,742 million in the same prior year periods.  
Throughout the Division, beverage can unit volumes increased
4.0% and 2.6% for the fourth quarter and full year,
respectively.  Demand in North America was strong for the year
2001 with the Company shipping 21.8 billion cans, up 2% from the
21.4 billion cans shipped in 2000.  In the seasonally slow
fourth quarter, North American beverage can shipments were up
5.4% over the 2000 fourth quarter.  Food can shipments in North
America were up 12.7% while aerosol can volumes were off 2.7%
compared to the prior year fourth quarter.

Sales unit volumes continued to be strong throughout the
Divisions' plastics operations.  Single-serve PET beverage
bottle volumes increased 8.3% in the fourth quarter and 6.9% for
the year while custom PET bottles and beverage and specialty
closures all reported double-digit volume growth in the fourth
quarter and for the year.

The European Division generated net sales of $733 million in the
fourth quarter and $3,200 million for the year compared to $713
million and $3,239 million for the respective 2000 periods.  
Unfavorable currency translation reduced net sales by $112
million in 2001 compared to 2000.  Excluding the impact of
currency translation, net sales increased 2.3% for the full year
compared to 2000 and were level in the fourth quarter.

Demand for all major product groups remained strong throughout
the Division.  Food can unit volumes, up 4.9% in the fourth
quarter and 2.3% for the year, benefited from strong
performances in Central and Eastern Europe, Greece and West
Africa.  Beverage can unit volumes were up 7.1% in the fourth
quarter and 3.9% overall for the year with gains reported
throughout most operations, most notably Spain.  Aerosol can
shipments, up 2.2% over last year's fourth quarter and 4.5% for
the year, continued to benefit from strong performances
throughout all operations.  The plastics sector had a very
strong 2001 with volume growth reported across most operations,
including PET preforms and bottles and the entire health and
beauty care packaging business.

The Asia-Pacific Division generated net sales and operating
income of $321 million and $27 million, respectively, in 2001,
compared to $308 million and $22 million, respectively, in 2000.  
Operating income improved to 8.4% of net sales for the year as
sales unit volumes were up in each major product category.  
Beverage can sales unit volume growth was reported throughout
the Division with strong performances in Southeast Asia.  
Increased unit volume shipments of food cans and plastic
beverage closures were also noted throughout the Division.

                   Conference Call Replay

The Company held a conference call on February 14, 2002 to
discuss earnings.  A replay of the conference call is available
for a one-week period ending at midnight on Thursday, February
21.  The telephone numbers for the replay are (402) 998-0482 or
toll free (800) 759-4661 and the access code is 4846.  

Crown Cork & Seal is a leading supplier of packaging products to
consumer marketing companies around the world.  World
headquarters are located in Philadelphia, Pennsylvania.

DebtTraders reports that Crown Cork & Seal's 8.375% bonds due
2005 (CCK7) are trading between 61 and 63. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=CCK7for  
real-time bond pricing.


DELTA AIR LINES: Vanguard PRIMECAP Holds 8.11% Equity Interest
--------------------------------------------------------------
Vanguard PRIMECAP Fund owns 8.11% of Delta Air Lines, Inc. by
virtue of the beneficial ownership of 9,990,800 shares of
Delta's common stock. The fund holds sole power to vote or
direct the voting of the shares. The Fund is a business trust
organized under the laws of the Commonwealth of Delaware.

Delta Air Lines, the #3 US carrier (behind UAL's United and
AMR's American), is expanding its US regional operations while
building a global alliance. With hubs in Atlanta, Dallas/Fort
Worth, Cincinnati, New York City (Kennedy), and Salt Lake City,
Delta flies to 205 US cities and about 45 foreign destinations.
It also serves more than 220 US cities and nearly 120
destinations abroad through code-sharing agreements. In the US,
Delta owns regional carriers Delta Express, Atlantic Southeast,
and COMAIR. Internationally, it has formed the SkyTeam alliance
with Air France, AeroMexico, and Korean Air Lines to compete
with rival alliances Star and Oneworld. Delta also owns 40% of
computer reservation service WORLDSPAN.


As reported in the September 25, 2001, edition of the Troubled
Company Reported, Standard & Poor's lowered its corporate
credit, senior secured debt and senior unsecured debt ratings on
Delta Air Lines Inc., to the low-B level, and were placed on
CreditWatch with negative implications.

The downgrades, S&P said, reflected the severe impact of sharply
reduced air traffic since the September 11 terrorist attacks in
New York City and Washington, D.C., with expectations for only a
slow recovery in the coming months. This worsens significantly
an already grim airline industry outlook, with depressed
business travel and higher labor costs.

The extent of the downgrades was determined principally by:

    * The risk of a downward rating action prior to the current
      crisis, and thus how much credit "cushion" was available
      within those ratings;

    * The cash and bank lines available to Delta Air Lines Inc.,
      as well as the amount of owned, unsecured aircraft that
      could be used in secured debt or sale-leasebacks to raise
      further funds; and

    * The ability of Delta Air Lines to reduce cash operating
      expenses and commitments for capital spending.

DebtTraders reports that Delta Air Lines' 9.750% bonds due 2021
(DELAIR4) are trading between 87.5 and 90. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=DELAIR4for  
real-time bond pricing.


ELEC COMMUNICATIONS: Nasdaq Denies Request for Continued Listing
----------------------------------------------------------------
eLEC Communications Corp. (Nasdaq:ELEC) received notice from
Nasdaq Stock Market, Inc. indicating that pursuant to the
January 31, 2002 oral hearing before a Nasdaq Listing
Qualifications Panel, a determination has been made
to deny eLEC's request for continued inclusion on The Nasdaq
SmallCap Market.

The company fails to comply with the net tangible
assets/shareholders' equity/market capitalization/net income
requirement, as set forth in Marketplace Rule 4310(c)(2).

The company will meet the eligibility criteria to have its
common stock quoted on the OTC Bulletin Board (OTCBB). The OTCBB
is a regulated quotation service that displays real-time quotes,
last-sale prices and volume information in over-the-counter
securities. Information regarding the OTCBB can be found on the
Internet at http://www.otcbb.com

eLEC Communications Corp. is a competitive local exchange
carrier that is taking advantage of the convergence of the
current and future competitive technological and regulatory
developments in the Internet and telecommunications markets.
eLEC provides an integrated suite of communications services to
small and medium-sized business customers, including local phone
service, long distance, dial-up access, dedicated access, xDSL,
and Web site design and hosting. For further information, visit
the eLEC Web site at http://www.elec.net


ENRON CORP: Texas Seeks Appointment of Retirees' Committee
----------------------------------------------------------
The Office of the Attorney General of the State of Texas, on
behalf of Texas state agency creditors, asks Judge Gonzalez to
appoint an Official Committee of Former and Retired Employees.

Jeffrey S. Boyd, Deputy Attorney General for Litigation,
recounts that Enron Corporation fired about 4,400 of its 7,500
employees in Houston, Texas shortly after the Petition Date.

"Many of these employees lost not only their jobs but also their
life savings in 401(k) retirement plans due to the erosion in
value of Enron stock resulting from the accelerated financial
collapse of its corporate empire," Mr. Boyd relates.

As of January 25, 2002, Mr. Boyd informs Judge Gonzalez that the
Texas Workforce Commission -- a state agency charged with the
responsibility for administering Texas' unemployment law --
processed 3,153 claims from former Enron employees for state
unemployment benefits. The Commission expects more claims to be
filed.

Early this year, Mr. Boyd says, the Attorney General of Texas
wrote United States Trustee Carolyn Schwartz for the Southern
District of New York to express the State's concern about the
apparent absence of representation in Enron's bankruptcy case
for the Debtors' recently discharged employees -- almost all of
whom reside in the Houston area.

The U.S. Trustee is still considering the request. But in the
event that the U.S. Trustee decides not to appoint a committee,
Mr. Boyd says, the Court will still be able to address the
issue. But if the U.S. Trustee grants the request, Mr. Boyd
says, the Office of the Texas Attorney General will promptly
withdraw this motion.

According to Mr. Boyd, the Official Creditors' Committee cannot
properly represent the thousands of former employees as well as
the thousands of retirees because their interests vastly differ.
Though there is one representative unconnected to a well funded
financial institution, Mr. Michael P. Moran -- a former general
counsel of certain of the Debtor entities -- Mr. Boyd points out
that Mr. Moran can be easily outnumbered. The 15-member
Creditors' Committee is dominated by institutional lenders, Mr.
Boyd observes.

With Enron's recent history of terminating employees, Mr. Boyd
says, it is not unlikely that the Debtor's representatives may
next seek to decrease expenses by terminating or modifying the
Debtor's pre-petition retiree benefits plan. Thus, the Attorney
General of Texas asserts that an additional Committee of Former
and Retired Employees must immediately be put in place. (Enron
Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


ENRON CORP: Former Employees Win Place at Bankruptcy Table
----------------------------------------------------------
U.S. Trustee Carolyn Schwartz has informed attorneys for the
Severed Enron Employees Coalition (SEEC) that she has decided to
appoint an "official committee to focus on the issues relating
to (Enron) employees."  Her decision comes just 16 days after
SEEC formally requested the appointment of such a committee.

"What can I say?  We're thrilled," says bankruptcy attorney
Scott Baena, who filed the first motion calling for the
appointment of an official Employees' Committee.  At the time,
Mr. Baena said, "These Chapter 11 cases have the potential to
tear the fabric of the nation's employee retirement system.  
Undoubtedly, and by no choice of their own, the severed
employees are at the forefront of a battle likely to rage in the
courts and in Congress for a long time.  The Severed Employees
are entitled to full and complete representation in every forum
where their fate is being decided."

Currently, there is a single former employee on a 15-member
Official Committee of Unsecured Creditors.  The remainder of the
committee is comprised of five banks, three indenture trustees,
two investment management companies, three trade creditors and
one insurance company.  That former employee worked for Enron as
an in-house attorney.

In a letter to Mr. Baena, Trustee Schwartz articulated her
concern for the interests of former Enron (OTC: ENRNQ) employees
saying, "Because of issues peculiar to these cases, including
the facts that there are more than 20,000 participants in the
Debtors' employee benefits plans and many suits brought relating
to the Debtors' 401(k) plan, I have determined that separate
representation is appropriate."

Ms. Schwartz has invited SEEC attorneys to make recommendations
concerning the specific composition of the new Employees
Committee.  A similar invitation has been made to Texas Attorney
General John Cornyn.  Attorneys on behalf of SEEC intend to
immediately respond to her request.

The SEEC legal team is made up of the following attorneys and
law firms:

   - George Whittenburg, Whittenburg Whittenburg & Schachter,
     P.C.

   - Randy McClanahan and Scott Clearman, McClanahan & Clearman,
     L.L.P.

   - Martin Dies, III and Richard Hile, Dies & Hile, L.L.P.

   - Broadus Spivey, Spivey & Ainsworth, P.C.

   - Scott Baena, Bilzin Sumberg Dunn Baena Price & Axelrod LLP

For further information about this latest Enron development,
please contact attorney Scott Baena at 305-607-3753 or attorney
Martin Dies at 409-882-1732.  Or, contact Mike Androvett at 800-
559-4534 or by paging Mike at 800-943-1502.


ENVIRO-RECOVERY: "Concerned Shareholders" Set Special Meeting
-------------------------------------------------------------
A group designating themselves as "Concerned Shareholders" of
Enviro-Recovery Inc. is inviting Company shareholders to be
present, or represented by proxy, at a Special Meeting of
Shareholders at the Cheqamegon Hotel, 101 Lake Shore Drive West,
Ashland, Wisconsin, on ________ __, 2002, (date not yet
specified) at 10:00 a.m. Central time, to remove Jeffrey
Schwartz, Bruce Nesmith and David "Caz" Neitzke as directors of
the Company and to elect David "Caz" Neitzke, John K. Tull and
Jack Lowry as directors.

This Special Meeting of Shareholders is being called by the
shareholders consisting of at least 30 percent of all the shares
entitled to vote at the special meeting in accordance with the
Company's By-Laws. Shareholders of record at the close of
business , 2002 (date not yet supplied) are entitled to vote at
the Special Meeting of Shareholders and all adjournments
thereof. Since a majority of the outstanding shares of the
Company's stock must be represented at the meeting in order to
constitute a quorum, the "Concerned Shareholders" are urging all
shareholders either to attend the meeting or to be represented
by proxy. The meeting is being called by the Concerned
Shareholders in that there has not been an annual meeting of
shareholders since March 24, 1999. For additional information
why the Concerned Shareholders feel the need for a Special
Meeting, see Related Party Transactions, "Ashland Action" in the
proxy statement which is accompanying the notice of the Special
Meeting being mailed to shareholders.

On January 25, 2002, several creditors of Enviro-Recovery, Inc.
and Superior Water Logged Lumber Company, Inc. filed involuntary
petitions against each company under Chapter 11 of the United
States Bankruptcy Code. The actions were filed at the United
States Bankruptcy Court in the Western District of Wisconsin,
located in Eau Claire, Wisconsin, Case Numbers 02-10456-11
(Enviro) and 92-10457-11 (Superior).

The Company is engaged primarily in the production of lumber and
wood products from old growth forest timber recovered from the
bottom of the lakes and rivers of North America. Lumber sales
are made to customers located mainly in the upper Midwestern
region of the United States.


ENVIRO-RECOVERY: Involuntary Case Summary
-----------------------------------------
Alleged Debtor: Enviro-Recovery, Inc.
                2200 E Lake Street
                Ashland, WI 54806
              
Involuntary Petition Date: January 25, 2002

Case Number: 1-02-10456-tsu       Chapter: 11

Court: Western District of Wisconsin (Eau Claire)

Judge: Thomas S. Utschig

Petitioner's Counsel: Timothy J. Peyton, Esq.
                      Suite 202
                      634 West Main Street
                      Madison, WI 53703
                      Tel: (608) 257-5424

Petitioning Creditors and Amount of Claim:

Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
Martin Hardwood, Co. Inc.   Advances              $13,343
1 Columbia Dr.
Niagara Falls, NY 14305

Security Insurance and      _____                  _____
   Financial Services, Inc.
12725 S. Moreland Road
New Berlin, WI 53151

Schenck Business            _____                  _____
   Solutions, S.C.  
200 East Washington Street
Appleton, WI 54913


EXODUS COMMUNICATION: Settles $7.9M Dispute With StorageNetworks
----------------------------------------------------------------
Exodus Communications, Inc. sought and obtained approval of a
stipulation with StorageNetworks Inc. to settle their legal
disputes arising under their Master Services Agreement, Joint
Marketing Services Agreement and Assignment Agreements.

Mark S. Chehi, Esq., at Skadden Arps Meagher & Flom LLP in
Wilmington, Delaware, relates that the services agreements were
entered by the parties at different times between 1999 to 2000.
StorageNetworks, on September 24, 2001, offset $2,063,292 it
owed to the Debtors against amounts owed by the Debtors for pre-
petition services and, the next day, filed suit against the
Debtors in the Chancery Court of Delaware seeking a declaratory
judgment, injunctive relief and monetary damages of at least
$7,900,000.

With this stipulation and order, the Debtors and StorageNetworks
agree that:

A. The Master Services Agreement, Joint Marketing Services
        Agreement and Assignment Agreements are assumed by the
        Debtor.

B. The Master Services Agreement and Joint Marketing Services
        Agreement are modified as provided in the Settlement
        Agreement.

C. The Debtors shall timely pay StorageNetworks amounts due
        it under the Joint Marketing Services Agreement
        for services provided on and after the Petition Date.
        All amounts owed by the Debtors to StorageNetworks under
        the terms of the Joint Marketing Services Agreement on
        or after September 27, 2001 shall be made and allowed as
        administrative expenses.

D. The September 24, 2001 setoff was proper and is not subject
        to further challenge.

E. On the effective date of the Debtor's reorganization plans,
        StorageNetworks shall be paid all amounts owed under the
        Joint Marketing Services Agreement before the Petition
        Date. The cure amount shall be equal to all sums
        invoiced $7,427,423 less the sum of the amounts
        specified under the Settlement Agreement and shall be
        treated as an administrative expense.

F. Both the Debtors and StorageNetworks shall devote the
        necessary, knowledgeable personnel and resources to
        determine what portion of the disputed $1,054,000
        between the parties is owed by StorageNetworks to the
        Debtor for floor space for the period prior to the
        Petition Date.

G. StorageNetworks shall provide to the Debtors by November 10,
        2002 a detailed analysis of the invoices received to
        date from the Debtors, StorageNetworks' payments against
        such invoice and a description of reasons for any short
        payments. Thereafter, Both parties shall meet and review
        and attempt to determine in good faith how much of the
        said amount is owed to the Debtors.

H. If the Debtor's plan of reorganization is not confirmed and
        effective within 12 months of the Petition Date, then
        the Debtor shall pay StorageNetworks the cure amount in
        six, equal monthly installments beginning November 15,
        2002. But if the reorganization plan is confirmed, the
        Debtor shall pay any remaining cure amount on the date
        that such reorganization plan becomes effective. In any
        case, if the Debtors assign, sell or transfer  the
        Marketing Services Agreement to a third party, the
        Debtors shall pay to StorageNetworks any remaining cure
        amount upon the closing of such assignment, sale or
        transfer.

I. The automatic stay is modified to the extent necessary to
        permit StorageNetworks to setoff immediately against the
        cure amount any additional, undisputed amounts the
        parties have agreed that StorageNetworks owes to the
        Debtor for floor space prior to the Petition Date under
        the Marketing Services Agreement and setoff any amounts
        owed by StorageNetworks against any amounts invoiced by
        StorageNetworks to the Debtor for services rendered
        under the Joint Marketing Services Agreement pre-
        petition.

J. Exodus shall not prevent or interfere with StorageNetworks'
        access to its equipment and facilities or for it to
        discontinue its services to StorageNetworks at its
        facilities, unless StorageNetworks has failed to pay an
        undisputed amount owed to Exodus or materially breached
        the Marketing Services Agreement and the Debtor has
        given StorageNetworks thirty days' written notice of
        such failure and opportunity to pay or cure such breach.

I. Each party shall waive and release the other party of any
        claims arising under the Master Services Agreement,
        Joint Marketing Services Agreement and Assignment
        Agreements.

J. This stipulation and agreement shall not be deemed to modify
       the parties' rights and does not prejudice the right of
       the Debtors to seek to assign the contracts to one or
       more third parties, or the rights of StorageNetworks to
       object such assignment.

K. The automatic stay is modified to permit StorageNetworks
        to have the Chancery Court Action dismissed sans
        prejudice.

L. The automatic stay is modified to the extent necessary to
        permit StorageNetworks to terminate the Master Services
        Agreement, Joint Marketing Services Agreement and
        Assignment Agreements if the Debtors materially
        breaches any of the agreements and such default remains
        uncured 30 days after notification.

Mr. Chehi assures the Court that the Settlement Agreement was
negotiated in good faith at arm's length and that it is fair and
equitable and in the best interest of the Debtors and their
estates.  Exodus also recognizes that StorageNetworks' data
storage and management services that are provided to the Debtors
are actual and necessary costs to preserving the Debtors'
estate. The benefits of the Settlement Agreement, Mr. Chehi
submits, outweigh the costs, expense and risk to the estate of
potential litigation. (Exodus Bankruptcy News, Issue No. 13;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


FEDERATED DEPT: Shareholders Balk at Fingerhut's Liquidation
------------------------------------------------------------
Shareholders of Federated Department Stores, Inc., filed a
lawsuit in Minnesota state court against top executives and
board members for allegedly taking steps to liquidate its
Fingerhut subsidiary without a good faith effort to sell it as
an operational company. The suit charges the defendants with
breaching their fiduciary duties to stockholders since
Fingerhut, a sizeable corporate asset, is worth much more to
buyers intact.

"By making plans to liquidate Fingerhut without even considering
offers for the company, Federated executives acted irresponsibly
and betrayed the best interests of their shareholders. Now that
such offers have been made, shareholders will insist that all
options are pursued that could keep the company alive," said
William Lerach, a lead attorney for the plaintiffs and partner
at Milberg Weiss Bershad Hynes & Lerach LLP.

Federated Department Stores purchased Fingerhut in 1999 for $1.7
billion. The suit charges Federated executives and board members
with "gross mismanagement" that resulted in the deterioration of
the company's value. According to the complaint, liquidating
Fingerhut would enable executives to hide losses and spread them
out over four quarters.

On January 16, 2002, Federated Department Stores announced it
would liquidate Fingerhut without any prior announcement that
Fingerhut was for sale. Since then, Federated has sent layoff
notices to nearly 70 percent of Fingerhut's 6,000 employees.
Fingerhut has significantly reduced its inventory and has
stopped opening new customer credit accounts.

The lawsuit claims that liquidating Fingerhut would decrease its
value by hundreds of millions of dollars because the majority of
its worth is based on money owed to Fingerhut by current
customers, many of whom rely on Fingerhut's policy of providing
credit to low income and elderly individuals without credit
cards. The complaint states that these customers will have
little incentive to pay their credit debt once the company is
discontinued, and since most credit amounts are relatively small
there will be no cost-effective way to collect these
receivables.

The shareholder derivative suit against Federated is part of a
broader trend of shareholders -- as the owners of corporations -
- holding directors and executives accountable for actions that
undercut a company's best interest.

The lawsuit requests injunctive relief to halt the liquidation
process and force the defendants to solicit buyers and fairly
consider offers for the company. Unless the court intervenes,
the current plans for liquidation will diminish Fingerhut's
value, according to the complaint.

"I believed in the company enough to use my own money to buy
Federated stock. As an employee at Fingerhut and a shareholder,
I can't sit by and watch the executives liquidate a once
profitable company instead of asking for a fair purchase price
that would keep our doors open," said the plaintiff Nick
Wesenberg, an employee for 17 years in Fingerhut's receivables
department and a Federated shareholder.

The complaint alleges that Federated executives failed to:

     * Take adequate and thorough steps to determine if a better
price was available for potential bidders to buy Fingerhut as an
operational company;

     * Conduct an auction of Fingerhut to determine the highest
possible price it might obtain; or

     * Negotiate with prospective bidders in a manner designed
to maximize interest in Fingerhut.

Defendants named in the suit include James Zimmerman (CEO of
Federated and Chairman of the Board), Terry Lundgren (President
and Chief Merchandising Officer of Federated and a director of
the company), Ronald Tysoe (Vice Chairman, Finance and Real
Estate of Federated and a director of the company), as well as
other Federated directors. Fingerhut executives Michael Sherman
(President and CEO), Steven Lightman (Vice President,
Operations), and Nils Ytterbo (Senior Vice President and CFO),
all of whom live in Minnesota, are also named in the suit.
Defendants Sherman, Lightman, and Ytterbo have all been promised
substantial severance payment to help Federated officers and
directors liquidate Fingerhut rather than sell it as an ongoing
business.


FLAG TELECOM: Fitch Places Low-B Rating on Watch Negative
---------------------------------------------------------
Fitch Ratings has placed Flag Telecom Holdings Limited (FTHL)
'B+' rating and Flag Limited's 'BB+' rating on Rating Watch
Negative following announcements made Wednesday by the company
in its preliminary fourth quarter and full year financial
results statement. Specifically, management has indicated that
they are reviewing their business in light of deteriorating
market conditions. Concerns have been raised about their
liquidity position beginning 2003 given the current operating
environment, and particularly that of the capital markets
generally for operators in their sector.

In making specific reference to the Flag Europe-Asia cable
network, operated by Flag Limited, the company has said it is
reviewing this network, including the likelihood that it will
generate sufficient cash to repay the US$430 million of senior
notes currently outstanding at maturity in 2008. Management has
indicated that depending on the outcome of this review, it may
be necessary to recognize an impairment as at December 31st,
2001.

In its review, Fitch will be evaluating the proposed steps
management is undertaking, including any restructuring and
refinancing alternatives being considered and the potential
impact on secured and unsecured creditors alike. Further
comments will be made to the market as details of Wednesday's
announcement and Fitch's assessment of management's options
under consideration become clearer.


FUELNATION: Moore Stephens Replaces Sellers as Accountants
----------------------------------------------------------
On February 7, 2002, Sellers & Associates, P.C., FuelNation,
Inc.'s independent accountant for the Company's most recent
fiscal year, resigned. The Company's financial statements for
the last fiscal year prepared by Sellers & Associates, P.C.
contained a going concern opinion.

Also on February 7, 2002, FuelNation engaged the accounting firm
of Moore Stephens P.C. independent public accountants, to audit
its fiscal year ended December 31, 2001 and 2000, as well as
future financial statements, to replace the firm of Sellers &
Associates, P.C. This change in independent accountants was
approved by the Board of Directors of FuelNation.


GLOBAL CROSSING: UST Appoints Unsecured Creditors' Committee
------------------------------------------------------------
Pursuant to Section 1102(a) and 1102(b) of the Bankruptcy Code,
the U.S. Trustee appoints these creditors to the Official
Committee of Unsecured Creditors in Global Crossing Ltd.'s
chapter 11 cases, effective February 7, 2002:

      A. Alcatel and affiliates
         15540 North Lombard Street, Portland, OR 97203-6428
         Attention: Mr. Richard Nilsson, President
         Phone: (503) 240-4010

      B. Aegon USA Investment Management, LLC
         4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499
         Attention: Mr. Brian Elliott
         Phone: (319) 398-8988  Telecopier: (319) 369-2009

      C. The Bank of New York as Indenture Trustee
         5 Penn Plaza, 13th Floor, New York, New York 10001
         Attention: Mr. Gary Bush, Vice President
         Phone: (212) 896-7260  Telecopier: (212) 328-7302

      D. DuPont Capital Management
         One Righter Parkway, Suite 3200, Wilmington, DE 19803
         Attention: Mr. Ming Shao, Senior Portfolio Manager
         Phone: (302) 477-6070  Telecopier: (302) 677-6370

      E. Hartford Investment Management Company
         55 Farrington Avenue, 10th Floor, Hartford, CT 06105
         Attention: Mr. Mark Niland
         Phone: (860) 297-6175  Telecopier: (860) 297-8885

      F. Lucent Technologies Inc.
         600 Mountain Avenue, Murray Hill, New Jersey 07974-0636
         Attention: Mr. Rob Slater, Managing Director
         Phone: (908) 582-6687  Telecopier: (908) 582-6069

      G. Morgan Stanley Investment Management
         One Tower Bridge, West Conshohocken, PA 19428-2881
         Attention: Ms. Deanna L. Loughnane, Executive Director
         Phone: (610) 940-5000  Telecopier: (610) 260-7088

      H. Nationwide Insurance
         One Nationwide Plaza, Columbus, OH 43216
         Attention: Mr. Jeffrey Golbus, Manager, Public Bonds
         Phone: (614) 249-7513  Telecopier: (614) 249-4698

      I. The Northwestern Mutual Life Insurance Company
         720 East Wisconsin Ave.,
         Milwaukee, Wisconsin 53202-4797
         Attention: Mr. Steve Martinie, Assistant Secretary
         Phone: (414) 271-1444  Telecopier: (414) 625-1841

      J. PPM America
         225 West Wacker, Suite 1200, Chicago, IL 60606
         Attention: Mr. Joel Klein, Senior Managing Director
         Phone: (312) 634-2559  Telecopier: (312) 634-0728

      K. Teachers Insurance and Annuity Association of America
         730 Third Avenue, New York, New York 10017-3206
         Attention: Mr. Roi G. Chandy, Director
         Phone: (212) 916-6139  Telecopier: (212) 916-6140

      L. U.S. Trust Company
         499 Washington Blvd, Jersey City, New Jersey 07310
         Attention: Mr. Corwin Chen, Senior Vice President
         Phone: (201) 533-6875  Telecopier: (212) 597-0160

      M. Verizon Communications, Inc. c/o William Cummings
         1095 Avenue of the Americas, New York, New York 10036
         Phone: (212) 395-0802  Telecopier: (212) 302-9177
         (Global Crossing Bankruptcy News, Issue No. 3;
         Bankruptcy Creditors' Service, Inc., 609/392-0900)


GLOBALSTAR L.P.: Files for Chapter 11 Reorganization in Delaware
----------------------------------------------------------------
Globalstar L.P. has reached agreement with several of its major
creditors to restructure the company's debt and, in order to
facilitate the timely completion of the restructuring, has filed
a voluntary petition under Chapter 11 of the U.S. Bankruptcy
Code in the U.S. Bankruptcy Court in Delaware.

Normal company operations and customer support will continue
uninterrupted while Globalstar operates under Chapter 11
protection, and the company intends to continue providing its
telecommunications services in the normal course.

This announcement follows a November 14, 2001, regulatory filing
in which Globalstar disclosed the likelihood of a Chapter 11
filing, pointing out that demand for the company's service has
continued to grow but that the cost of servicing the company's
debt had outpaced Globalstar's revenues.

"This filing is an important first step in establishing a new
Globalstar with renewed credibility, enabling it to address new
business opportunities and to further broaden our customer
base," said Olof Lundberg, chairman and CEO of Globalstar.

"Potential customers have told us that we need to demonstrate
financial viability and a commitment to the future. Now with
this step, we're ready to begin. Our major creditors are on
board, and we hope to complete the restructuring process
rapidly, returning to expanding the use of both our current
voice and data satellite services and, with new partners,
develop new products.

"I want to assure our 66,000 customers that Globalstar remains
very much open for business. With the cooperation of our gateway
operators and local service providers, customers can expect
normal operations and our usual high quality of service as we
progress through the reorganization process," Mr. Lundberg
added.

The proposed restructuring plan, which will be submitted for
Court approval, calls for the establishment of a new Globalstar
company which will take ownership of all of Globalstar L.P.'s
existing assets, including its satellite constellation and
related operations. In addition, the new company will acquire
all equity stakes in three of its service providers - Globalstar
USA, Globalstar Caribbean, and Globalstar Canada - that were
originally held by Vodafone Group Plc and Loral Space &
Communications. Acquisition of equity in Globalstar USA and
Globalstar Caribbean are subject to FCC and other regulatory
approvals.

Under this plan, the new company will initially be owned by
Globalstar L.P.'s existing bondholders and other unsecured
creditors, with the option later to issue additional shares for
sale to gateway operators outside of the U.S. and Canada who may
wish to invest in the new company.

The reorganization plan also calls for the cancellation of all
existing partnership interests in Globalstar L.P., including
partnership interests held by the publicly traded Globalstar
Telecommunications Limited (GTL). As the company has cautioned
earlier in public announcements and SEC filings, this action
will likely leave shares in GTL with very little or no value.
The restructuring plan also contemplates a rights offering to
common shareholders in GTL and to GLP creditors which could give
them the option to purchase shares in the new company. There can
be no assurance at this time whether such a rights offering can
be achieved, and it would in any case be subject to review and
approval by Globalstar's creditors and the bankruptcy court.

As part of the agreement with its major creditors, Globalstar
said it will begin implementing a new business model, which will
broaden its business opportunities and accelerate the
acquisition of new customers. Initial steps of the new business
plan include:

     -- Aggressively priced service, using existing system
capacity and phone inventories to build cash flow. Service
packages will be aimed in particular at volume usage and
multiple phone units, covering both voice and data services.

     -- Consolidation of selected gateways into the new
Globalstar company, allowing Globalstar to assume responsibility
for marketing and operations in several of its largest markets.
Globalstar L.P. had already initiated this process by agreeing
in December 2001 to acquire most of Vodafone Group Plc's North
American Globalstar-related assets, which will now be
transferred to the new company. This will create greater
operating efficiencies, lowering the overall cost of delivering
service to customers, and avoiding duplication of functions at
each service provider while at the same time allowing Globalstar
to capture the full retail revenue stream in these markets.

     -- Marketing efforts that will be focused on high-potential
countries and customer segments, primarily enterprise customers,
and with particular attention to aviation, maritime and
government services. Recent events have highlighted the utility
and value of mobile satellite telephony, not only in crisis
situations but also in day-to-day applications relating to
security, defense, and civil emergency preparedness.

     -- Use of new 2GHz radio spectrum recently granted to
Globalstar by the U.S. Federal Communications Commission (FCC).
The company will explore opportunities to utilize this valuable
asset in both existing and new applications and in terms of
evolution to a second generation system.

     -- Pursuit of new business opportunities that will evolve
out of more flexible spectrum utilization rules following a
favorable outcome of the FCC's current Notice of Proposed
Rulemaking (NPRM) proceedings relating to air traffic control.

As part of Globalstar's work to develop its restructuring plan
over the past several months, it has substantially reduced its
operating expenses. As a result, the company today has
approximately $46 million of cash on hand, significantly more
than its original projections from a year earlier. The final
restructuring will likely require some new investment to provide
enough funds to carry the company through to a cash flow
breakeven point, although the company's new lower cost structure
calls for substantially less additional funding than would have
been necessary under the company's earlier business model. The
company is currently in discussions with possible investors to
meet this investment requirement, although there can be no
assurance as to the timing, likelihood or amount of any such
investment.

In the meantime, Globalstar continues to make progress in
strengthening and expanding its business and customer base to
create a firm foundation for the new, restructured company.
Recent achievements include:

     -- Expansion of service coverage throughout Central Asia,
including Afghanistan. Globalstar service is already being used
extensively in this region to support medical and humanitarian
programs.

     -- Finalization of plans to ship and construct a second
gateway in China. Upon completion, the new Lanzhou gateway,
together with the existing Beijing gateway, will provide service
coverage across over 80% of the country.

     -- Sale of over 1,000 phones to the U.S. government for use
in domestic security, including communications support at the
2002 Winter Olympics in Salt Lake City.

Globalstar's Chapter 11 filing and business model announcement
result from an extended business review begun in January 2001,
when the company announced that it was suspending payments of
interest and principal on all of its funded debt, including its
credit facilities, vendor financing agreements and Senior Notes,
as well as dividend payments on its preferred stock, and that it
had engaged The Blackstone Group to assist it in exploring
strategic alternatives.

The Company's informational filings with the Court are available
to the public at the office of the Clerk of the Bankruptcy
Court, 824 Market Street, Wilmington, DE 19801 (tel: 1-888-667-
5530). The filings will also be available electronically, for a
fee, through the Court's Internet Web site at
http://www.deb.uscourts.gov(Case Nos. 02-010499, 02-010501, 02-
010503, 02-010504).

DebtTraders reports that Globalstar Capital Corporation's (with
Globalstar as underlying issuer) 11.500% bonds due 2005 (GSTAR4)
are trading between 9 and 10. For real-time bond pricing, see
http://www.debttraders.com/price.cfm?dt_sec_ticker=GSTAR4


GLOBALSTAR, L.P.: Case Summary & Largest Unsecured Creditors
------------------------------------------------------------
Lead Debtor: Globalstar, L.P.
             3200 Zanker Road
             San Jose, CA 95134

Bankruptcy Case No.: 02-10504-PJW

Debtor affiliates filing separate chapter 11 petitions:

Entity                               Case No.
------                               --------
Globalstar Capital Corporation       02-10499-PJW
Globalstar Services Company, Inc.    02-10501-PJW
Globalstar, L.L.C.                   02-10503-PJW

Type of Business: Globalstar. L.P. operates a worldwide low-
                  earth orbit satellite-based digital
                  telecommunications system and provides a
                  satellite communications and communication-
                  related service.

Chapter 11 Petition Date: February 15, 2002

Court: District of Delaware

Judge: Peter J. Walsh

Debtors' Counsel: Paul Leake, Esq.
                  John J. Rapisardi, Esq.
                  Jones, Day, Deavis & Pogue
                  599 Lexington Avenue
                  New York, NY 10022-6030
                  Tel: 212 326-3839
                  Fax: 212 755 7306

                        -and-

                  Brendan Linehan Shannon, Esq.
                  Young Conoway Stargatt & Taylor LLP
                  The Brandywine Building
                  1000 West Street, 17 Floor
                  PO Box 391
                  Wilmington, DE 19899-0391
                  Tel: 302 571 6600
                  Fax: 302 571 1253

Total Assets: $573,431,000

Total Debts: $3,325,553,000

Debtor's Largest Unsecured Creditors:

Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
Bank of New York            11.375% Senior       $1,450,000,000
as Indenture Trustee        Notes/Bonds
5 Penn Plaza, 13th Floor
New York, NY 10001          10.75% Senior
Fax: 212 328 7302           Notes/Bonds
Max Volmar
Corporate Trust             11.25% Senior
   Administrator            Notes/Bonds
Tel: 212 328 7302
Daniel H. Golden, Esq.      11.50% Senior
Akin, Gump, Strauss,        Notes/Bonds
   Hauer & Field
590 Madison Avenue
20th Floor
New York, NY 10022
Tel: 212 872 1000
Fax: 212 672 1002

Loral Space &               Term Loan A,           $500,000,000
   Communications, Ltd      Term Loan B &          
600 Third Avenue            Revolver               
36th Floor
New York, NY 10016          Note Payable            $51,309,686
Fax: 212 338 5350
Mr. Avi Katz                Accrued Liability          $736,762
General Counsel             & Accrued Payable
Tel: 212 338 5340
Marc Abrams, Esq.           Accounts Payable (GSCI)     $29,580
Wilkie Farr & Gallagher    
The Equitable Center        Accounts Payable (GLLC)      $4,857
787 Seventh Avenue
New York, NY 10019-6099
Tel: 212 726 8000
Fax: 212 728 8111

Space Systems/Loral, Inc.   Accounts Payable,     $207,058,430
600 Third Avenue            Vendor Financing &
36th Floor                  Acrued Liability
New York, NY 10016
Fax: 212 338 5340
    -and-
3825 Fablan Way
M/S Z02
Palo Alto, CA 94303
Fax: 650 852 6414
Contact Persons:
Mr. Avi Katz
General Counsel
Tel: 212 338 5340
Julie Bannerman, Esq.       Notes Payable          $11,650,000
Tel: 650 852 5474
Marc Abrams. Esq.
Tel: 212 728 8000
Fax: 212 728 8111

Qualcomm Incorporated     Vendor Financing,        $514,297,552
5775 Morehouse Drive      Accrued Liabilities &
Bldg R-143E               Accounts Payable
San Diego, CA 92121
Fax: 858 651 6045
       -or-
6455 Lusk Blvd.           Note Payable            $21,925,000
San Diego, CA 92121
Fax: 858 658 1550         Accounts Payable (GSCI)     $86,346
Suzanne Reynolds
Tel: 858 578 1121
   Partnership, LP

Globalstar do Brasil       Accounts Payable           $138,177
Prala do Flamengo 200
19 Ander (parte)
22210-060                  Accounts Payable (GSCI)    $108,356
Rio de Janiero-RJ
Brazil
Fax: 55 21 2555 8894       Accrued Liability          $900,192
Mr. Michael Vahrenkamp
Tel: 55 21 2555 8811

Loral Qualcomm            Accrued Management Fees     $105,481

Loal Cyberstar            Account Payable              $85,950

Lockhead Martin           Notes Payable &         $150,006,397
   Corporation            Accounts Payable
3200 Zanker Road
Building 220
San Jose, CA 95134
      -or-
Lockhead Martin
Space Operations
   Enterprise Solutions
PO Box 48587
Fax: 281 218 2677
Douglas Ericsson
Tel: 408 473 4547

Ericsson Mobile           Contract Claim           $54,235,420
   Communications (UK)
   Limited
Sony Ericsson Mobile
   Communications
Sony Ericsson House
202 Hammersmith Road
London W6 7DN
United Kingdom
Mr. Cyrus Allen
Tel: 44 208 762 5869

Vodafone Satellite        Accounts Payable &         $2,114,785
   Services Ltd. (UK)     Accrued Liability
Jeff Bloszles
The Courtyard             Accounts Payable &           $199,210
2-4 London Road           Accrued Liability
Newburry, Berkshire       (GSCI)
RG14 1JL
United Kingdom
Tel: 925 210 3808

DASA Globalstar Limited   Notes Payable             $10,125,000
   Partner, Inc.
Dr. Jurgen Koffler
c/o Daimler Chrysler
   Aerospace AG
RBD (Spce Ops)
PO Box 801169
8163 Munich, Germany
Fax: 49 89 607 22630
Tel: 49 89 607 34240

Eslacom s.p.a.           Accrued Payable &           $2,849,778
Michael Yates            Accrued Liability
Via de Settebagnal, 390  
Rome 00138
Italy
Tel: 39 06 872 75 637
Fax: 39 06 87275 301

TESAM                    Accrued Liability &         $2,107,645
Stan Haverlik            Accounts Payable
8-16 Rue Paul Couturier           
Malakoff Codex 92245     Accrued Liability             $180,333
France                   Site Mgmt. (GSCI)
Fax: 33 1 55 22 33 19
Tel: 33 1 55 22 33 03

Saudi Globalstar         Accrued Liabiltiy &         $1,246,117
   Operations            Accounts Payable
Dr. Ahmed Sindi
New Akarya Bldg.
Silten Street, Mdez
Tower #3
Floor 8
Office 8304
Riyadh 11476
Kingdom of Saudi Arabia
Fax: 966 1 47 60250
Tel: 956 1 477 5560

Segal Company            Accrued Pension             $1,095,539
Doron Scharf             Liabilities
1 Park Avenue
New York, NY 10016
Fax: 212 251 5490

Globalstar Northern      Accounts Payable               $11,924
   Europe                Accounts Payable (GSCI)       $226,603


Santa Clara County      Accrued Property              $265,959
   Tax Collection       Tax Liability
Madelyn Murphy
70 W. Hedding St.
East Wing
San Jose, CA 95110
Fax: 408 286 5275
Tel: 408 808 7949

DACOM                   Accrued Liability            $145,883

Office Depot            Accounts Payable              $14,003

Agllent Financial       Accounts Payable              $12,094
   Services

Xerox Corporation       Accounts Payable               $6,683

Corporate Express       Accounts Payable               $6,244

Pinkerton               Accounts Payable               $5,249

Federal Express Corp.   Accounts Payable               $2,856

Sodexto Marriott        Accounts Payable               $2,788
   Services

All Pro Building Svcs   Accounts Payable               $2,721

DHL Worldwide Express   Accounts Payable               $2,399

ICS Electronics Ltd.    Accounts Payable                 $850    

Leadership Directories  Accounts Payable                 $850


GLOBIX CORP.: Filing For Chapter 11 With Prepack Plan This Week
---------------------------------------------------------------
Globix Corporation (Nasdaq: GBIX) has received, pursuant to its
consent solicitation for the acceptance of its plan of
reorganization, the required acceptances from holders of its
senior notes and preferred stock for acceptance of the plan
under Chapter 11 of the U.S. Bankruptcy Code.  The plan was
accepted by holders of senior notes representing approximately
97.5% of the $500 million principal amount of senior notes that
actually voted and 97% in number of holders that actually voted.  
In addition, 100% of the preferred shareholders voted to accept
the plan.  The Company intends to commence Chapter 11
proceedings and file the plan under the Bankruptcy Code during
the week of February 19, 2002, and expects to exit from
bankruptcy by the end of March 2002, or as soon as practicable
thereafter.

The financial restructuring under the plan will reduce
significantly the principal amount of the Company's outstanding
indebtedness by approximately $480 million by converting a
substantial portion of the Company's indebtedness into new
common stock.  The Company's bondholders will exchange the
currently outstanding $600 million principal amount of senior
notes for $120 million in new senior secured notes and
approximately 85% of the reorganized Company's new common stock.  
Current holders of the Company's preferred stock will receive
approximately 14% of the new common stock.  Current holders of
the Company's common stock, and certain claims in respect
thereof, will receive approximately 1% of the new common stock.  
All currently existing securities of the Company will be
cancelled upon consummation of the plan.

Moreover, the new debt to be issued under the plan will permit
Globix to satisfy interest payments in kind for at least two
years and, at the discretion of the Company's board of
directors, up to four years, thereby eliminating a liquidity
concern arising from current debt service obligations. The
Company believes that the restructuring will substantially
reduce uncertainty with respect to its future and better
position it to attract and maintain new customers.

The Company intends to continue operating in Chapter 11 in the
ordinary course of business.  It intends to seek the necessary
relief from the Bankruptcy Court to pay its employees, trade,
and certain other creditors in full and on time, regardless of
whether such claims arise prior to or after the Chapter 11
filing.

Peter Herzig, Chief Executive Officer, said, "We are pleased to
have received such overwhelming support from both our
bondholders and preferred shareholders to proceed with the plan.  
As we take these steps to secure the Company's financial
position, I am confident that we are doing all that is necessary
to ensure a bright future for Globix.  The successful execution
of this plan will allow us to focus on developing Globix to its
fullest potential as an industry-leading provider of hosting and
advanced Internet services for enterprise businesses."


GLOBIX CORP: EBITDA Loss Slides-Down to $11 Million in Q1 2002
--------------------------------------------------------------
Globix Corporation (Nasdaq: GBIX) reports financial results for
its fiscal first quarter 2002 ended December 31, 2001.

Revenue for the first quarter of fiscal 2002 was $23.4 million
compared to $26.2 million in the prior year quarter.

EBITDA loss (loss before net interest, income taxes,
depreciation and amortization and restructuring charges) was
$11.0 million for the first quarter of 2002 compared to $15.2
million in the same quarter last year.

During the first quarter of fiscal 2001, the Company recorded a
restructuring charge of $38.1 million related to the
modification of Internet data center expansion plans, and $2.3
million from the cumulative effect of a change in accounting
principle.

For the fiscal first quarter of 2002, net loss attributable to
common stockholders was $43.5 million, or $1.11 per share based
on 38.9 million common shares.  Net loss for the prior year
quarter was $75.0 million, or $2.01 per share based on 37.3
million common shares, inclusive of the restructuring charge and
the cumulative effect of the change in accounting principle.

As part of the Company's continued effort to reduce expenses and
work towards reaching the important goal of turning cash flow
positive, the Company also reported that in recent weeks it has
terminated approximately 30% of its workforce.  The majority of
those employees terminated performed functions related to
providing internal services, peripheral client services and
other functions not directly related to the Company's core
business.

Globix is a leading provider of advanced Internet hosting,
network and applications solutions for business.  Globix
delivers services via its secure state-of-the-art Internet Data
Centers, its high-performance global backbone and content
delivery network, and its world-class technical professionals.
Globix provides businesses with cutting-edge Internet resources
and the ability to deploy, manage and scale mission-critical
Internet operations for optimum performance and cost efficiency.


HA-LO INDUSTRIES: Seeks Okay to Hire Arthur Andersen as Auditors
----------------------------------------------------------------
Ha-Lo Industries, Inc. and its debtor-affiliates seek permission
from the U.S. Bankruptcy Court for the District of Delaware to
employ Arthur Andersen LLP as accountants nunc pro tunc to the
Petition Date.

The Debtors want to employ and retain Andersen to audit the
financial statement as of December 31, 2001 for the year then
ending, which they expect will be complete by March 31, 2002.

The professional services that Andersen will render to the
Debtors, include:

    a) auditing the Debtors' financial statement for the year
ending December 31, 2001;

    b) providing an auditor's report in connection with the
financial statements;

    c) examining evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles
used and evaluating the overall financial statements
presentation;

    d) making specific inquiries of management and others about
the representations embodied in the financial statements and the
effectiveness of internal control;

    e) bringing to the attention of Debtors any information
under professional standards of which Andersen becomes aware
during its audit; and

    f) bringing to the attention of the Debtors misstatements
and any fraudulent or illegal acts of which Andersen becomes
aware during its audit.

Andersen will charge the Debtors their customary hourly rates in
effect on the date services are rendered, plus all reasonable
and necessary expenses. Andersen anticipates that the Ongoing
Services will be approximately $250,000. In addition to the
Ongoing Services, the Debtors and Andersen agreed a $100,000
payment for the Rendered Services.

The Debtors tell the Court that they did not intend to delay
asking for approval of Andersen's employment.  Rather, they say,
the delay was unavoidable.  In addition, the Debtors believe
that employing another auditor will just add expenses greater
than they're paying Andersen.  The say that they're enjoying
significant discounts with Andersen for these type of services.

HA-LO Industries, Inc. and subsidiaries Lee Wayne Corporation
and Starbelly.com, Inc., provide full service, innovative brand
marketing in the custom and promotional products industry. The
Company filed for Chapter 11 Petition on July 30, 2001. Adam G.
Landis, Eric Lopez Schnabel, Mary Caloway at Klett Rooney Lieber
& Schorling represent the Debtors in their restructuring
efforts.


HARBISON-WALKER: Chapter 11 Case Summary
----------------------------------------
Lead Debtor: Harbison-Walker Refractories Company
             USX Tower, 51st Floor
             600 Grant Street
             Pittsburgh, PA 15219

Bankruptcy Case No.: 02-21627

Debtor affiliates filing separate chapter 11 petitions:

Entity                                     Case No.
------                                     --------
Global Industrial Technologies, Inc.       02-21626
Indresco International, Ltd.               02-21628
Harbison-Walker Refractories Europe, Ltd   02-21629  
Harbison-Walker International              02-21630
   Refractories, Inc.
Global Industrial Technologies             02-21631
   Services, Company
GPX Corp.                                  02-21632
GIX Foreign Sales Corp.                    02-21633
Global Processing Systems, Inc.            02-21634
TMPSC, Inc.                                02-21635
GPX Forge, Inc.                            02-21636
GPX Forge-Acquisition, Inc.                02-21637
GPX Forge-U, Inc.                          02-21638
A.P. Green Industries, Inc.                02-21639
A.P. Green Services, Inc.                  02-21640
APG Development Corp.                      02-21641
Detrick Refractory Fibers, Inc.            02-21642

Chapter 11 Petition Date: February 14, 2002

Court: Western District of Pennsylvania (Pittsburgh)

Judge: Judith K. Fitzgerald

Debtors' Counsel: Paul M. Singer, Esq.
                  Reed Smith
                  435 Sixth Avenue
                  Pittsburgh, PA 15219
                  Tel: 412-288-3114


HARBISON-WALKER: TRO Halts Asbestos Claims against Halliburton
--------------------------------------------------------------
Halliburton Company (NYSE: HAL) announced that a U.S. Bankruptcy
Court has issued a temporary restraining order staying more than
200,000 pending asbestos claims against its subsidiary Dresser
Industries, Inc.  The ruling came in connection with the filing
of a voluntary petition for reorganization under Chapter 11 of
the U.S. Bankruptcy Code by Harbison-Walker Refractories
Company.

Harbison-Walker, which faces a large number of asbestos-related
claims, said it would seek to reorganize its finances in Chapter
11 aided by a trust responsible for resolving all pending and
future asbestos-related claims asserted against it.  The stay is
temporary until the bankruptcy court holds a hearing, which is
expected during the next two weeks.

The stayed claims represent a majority of the pending asbestos
claims against all Halliburton Company subsidiaries.  
Approximately 132,000 of the stayed claims are refractory claims
that Harbison-Walker agreed to be responsible for when it was
spun-off from Dresser Industries in 1992.

The balance of the stayed claims are pre-1992 refractory claims
and other asbestos claims against Dresser Industries that are
covered in whole or in part by the same insurance coverage.

Chief Judge Judith Fitzgerald of the U.S. Bankruptcy Court,
Western District of Pennsylvania, issued the order at the
request of Harbison-Walker in the interest of protecting a
significant asset of the bankrupt company, namely, the insurance
held by Dresser Industries to cover the asbestos-related
liabilities associated with Harbison-Walker.  In its filing,
Harbison-Walker informed the bankruptcy court that it, its
parent RHI Refractories Holding Company, and Dresser Industries
have agreed to work cooperatively in an attempt to utilize the
special provisions of Sections 524(g) and 105 of the Bankruptcy
Code to propose and have confirmed a plan of reorganization that
will provide for distributions to the legitimate asbestos
claimants.  If such a plan of reorganization were approved, all
pending and future Harbison- Walker-related lawsuits against the
debtor and Dresser Industries would be channeled to a Section
524(g)/105 trust for resolution and payment.  The U.S.
Bankruptcy Code allows the creation of such a trust provided
seventy-five percent of asbestos plaintiffs approve its
creation.

The bankruptcy court also will be asked to approve $35 million
in debtor- in-protection (DIP) financing by Dresser Industries
to Harbison-Walker so that Harbison-Walker can continue
operations during the pendency of the Chapter 11 proceeding and
emerge from bankruptcy as a viable company.  Dresser Industries
also agreed to pay $40 million to RHI Refractories Holding
Company to facilitate the Chapter 11 filing.  Dresser Industries
will pay RHI an additional $35 million if an acceptable plan of
reorganization is filed with the bankruptcy court and another
$85 million if an acceptable plan and trust are ultimately
approved and confirmed by the court.

In 1992 Dresser Industries spun-off its Harbison-Walker
operations and certain other operations to its shareholders in
the form of the stock of INDRESCO, Inc.  As part of that spin-
off, INDRESCO, which subsequently changed its name to Harbison-
Walker, contractually assumed responsibility for all of the
asbestos-related claims associated with the Harbison-Walker
business filed after the spin-off.  Harbison-Walker also agreed
to indemnify Dresser Industries against all costs associated
with post spin-off claim.

Dresser Industries granted Harbison-Walker access to its
insurance policies to pay defense and settlement costs.  Even
though Dresser Industries and Harbison-Walker have accessed that
insurance for almost a decade since the spin-off, as of last
week's bankruptcy filing by Harbison-Walker, the available
products liability limits of that insurance is approximately
$2.1 billion. Since December 31, 1999, Harbison-Walker (which is
a wholly owned subsidiary of Global Industrial Technologies,
Inc.) has been part of the United States operations of Austrian-
based RHI AG.

Global, its subsidiary A.P. Green Industries Inc. and North
American Refractories Company (NARCO), another subsidiary of RHI
Refractories Holding Company, also have filed for protection
under Chapter 11 in the same court -- NARCO on January 4, 2002,
and Global and A.P. Green on February 14, 2002.

Halliburton, founded in 1919, is one of the world's largest
providers of products and services to the petroleum and energy
industries.  The company serves its customers with a broad range
of products and services through its Energy Services Group and
Engineering and Construction Group business segments.  The
company's World Wide Web site can be accessed at
http://www.halliburton.com


INTERACTIVE NETWORK: Shareholders to Convene on March 21 in L.A.
----------------------------------------------------------------
The special meeting of shareholders of Interactive Network, Inc.
will be held at 10:30 a.m., Pacific time, on Thursday, March 21,
2002, at Sofitel Hotel, 8555 Beverly Blvd., Los Angeles,
California 90048.

At the special meeting, shareholders will be asked to approve
the merger of Interactive Network, Inc. into Two Way TV (US)
Inc. (formerly known as TWIN Entertainment, Inc.), the joint
venture formed by Interactive Network and Two Way TV Limited. As
a result of the merger, shareholders of Interactive Network will
become shareholders of Two Way TV (US). After the merger, the
former shareholders of Interactive Network will own
approximately 48% of the outstanding shares of Two Way TV (US)
and 55% on a fully-diluted basis, and Two Way TV Limited will
own approximately 52% of the outstanding shares of Two Way TV
(US) and 45% on a fully-diluted basis.

In the merger, shareholders of Interactive Network will receive
one share of Two Way TV (US) for each share of Interactive
Network that they own. Therefore, Two Way TV (US) will be
issuing 43,019,277 shares in the merger to Interactive Network's
shareholders. Interactive Network's common stock currently is
quoted on The Over-the-Counter Bulletin Board under the symbol
"INNN.OB." On February 6, 2002, the closing sale price of its
common stock was $0.31 per share. Two Way TV (US)'s common stock
is privately held by its two shareholders and therefore
Interactive Network shareholders will be unable to determine the
market value of Two Way TV (US)'s shares they will receive in
the merger.


IT GROUP: Bringing-In Zolfo Cooper As Bankruptcy Consultant
-----------------------------------------------------------
The IT Group, Inc. seeks entry of an order under section 327 of
the Bankruptcy Code authorizing them to employ and retain Zolfo
Cooper LLC as bankruptcy consultant and special financial
advisor to the Debtors during these chapter 11 cases.

James M. Redwine, the Debtors' Vice President and Senior
Corporate Counsel, tells the Court that the Debtors require the
services of experienced Bankruptcy Consultants and Special
Financial Advisors to assist them in restructuring their
business and developing, negotiating and confirming a plan of
reorganization. Because of Zolfo Cooper's expertise and
experience at a national level in providing reorganization,
accounting and a broad range of consulting services to debtors
and other parties in interest in financially complex troubled
situations, the Debtors have requested that Zolfo Cooper provide
such services to them.

Mr. Redwine explains that the Debtors selected Zolfo Cooper
because of the Firm's experience at a national level in matters
of this character and its exemplary qualifications to perform
the services required in this case. Zolfo Cooper is well
qualified to serve as Bankruptcy Consultants and Special
Financial Advisors to the Debtors as the firm specializes in
assisting and advising debtors, creditors, investors and court-
appointed officials in bankruptcy proceedings and out-of-court
workouts. Its services have included assistance in
developing/analyzing and evaluating, negotiating and confirming
plans of reorganization and testifying regarding debt
restructuring, feasibility and other relevant issues.

Specifically, Zolfor Cooper will:

A. Advise and assist management in organizing the Debtors'
       resources and activities so as to effectively and
       efficiently plan, coordinate and manage the chapter 11
       process and communicate with customers, lenders,
       suppliers, employees, shareholders and other parties in
       interest;

B. Assist management in designing and implementing programs to
       manage or divest assets, improve operations, reduce costs
       and restructure as necessary with the objective of
       rehabilitating the business;

C. Advise the Debtors concerning interfacing with Official
       Committees, other constituencies and their professionals,
       including the preparation of financial and operating
       information required by such parties and/or the
       Bankruptcy Court;

D. Advise and assist management in the development of a Plan of
       Reorganization and underlying Business Plan, including
       the related assumptions and rationale, along with other
       information to be included in the Disclosure Statement;

E. Advise and assist the Debtors in forecasting, planning,
       controlling and other aspects of managing cash and, if
       necessary, obtaining DIP and/or Exit financing;

F. Advise the Debtors with respect disputes and otherwise
       managing process;

G. Advise and assist the Debtors i Plan of Reorganization with
       the for and other constituencies;

Salvatore Lobiondo, Jr., a member of the firm of Zolfo Cooper
LLP, assures the Court that the firm is not related to or
connected with and neither holds nor represents any interest
adverse to the Debtors, their respective estates, their
creditors or any other party in interest herein or their
respective attorneys or the United States Trustee or anyone
employed in the Office of the United States Trustee in the
matters for which the firm is proposed to be retained, except
that Zolfo Cooper is connected with the Debtors by virtue of
this engagement, Zolfo Cooper's prior engagement of December 14,
2001, and Zolfo Cooper may represent or have represented certain
of the Debtors' creditors or other parties in interest herein,
or interests adverse to such creditors or other parties in
interest herein, in matters unrelated to these chapter 11 cases.
Consequently, Zolfo Cooper is a "disinterested person," as that
term is defined in section 101(14) of the Bankruptcy Code and as
required by section 327(a) of the Bankruptcy Code.

The relationships with parties-in-interests in matters unrelated
to these cases include:

A. Indenture Trustee - Bank of New York.

B. Secured Creditors - Angelo Gordon & Co., Allstate Life
       Insurance Co., Banco Espirito, Bank of Nova Scotia, Bank
       Polska Kasa Opieki, BHF, Citibank, Comerica Bank, Credit
       Lyonnais, Eaton Vance, First Union National Bank, Fleet
       National Bank, Goldman Sachs, IBJ Witehall, ING Capital,
       Key Bank, Lehman Bros. Inc., Merrill Lynch, Mitsubishi,
       National City, Pilgrim Investments Inc., PNC Bank, Royal
       Bank of Canada, Sanwa Bank Ltd., Societe Generale, Sun
       America, UBS and Union Bank of California.

C. Bondholders - ABN Amro, Bank One, Bankers Trust, Bear
       Stearns, Brown Brothers Harriman, Canadian Imperial Bank
       of Commerce, City National Bank, Credit Suisse First
       Boston, Donaldson Lufkin & Jenerette, Dreyfus, JP Morgan
       Chase, Legg Mason Inc., Mercantile Bank, Morgan Stanley,
       Northern Trust Co., Prudential, Salomon Smith Barney, US
       Bank, Union Bank, Wachovia Securities, and Wells Fargo
       Bank.

D. Unsecured Creditors - AFCO, Bank of America, Stone & Webster,
       Sumitomo Heavy, and Xerox Corporation.

E. Professionals - Jones Day Reavis & Pogue, Logan & Co.,
       Shearman & Sterling, Skadden Arps Slate Meagher & Flom
       LLP, Weil Gotshal & Manges.

Mr. Lobiondo submits that it is the firm's intention to seek
compensation for its services in accordance with its customary
practices and charges its clients only for reasonably incurred,
out-of-pocket expenses associated with an assignment. Zolfo
Cooper charges fees based on actual hours expended to perform
its services at standard hourly rates established for each
member, principal and employee, as adjusted semi-annually. It is
also the customary practice of the Firm to bill clients for
travel time consistent with the guidelines of the jurisdiction.

Zolfo's hourly billing rates for professionals who may be
assigned to this engagement, in effect as of January 1, 2002,
are:

      Principals/Members      $500 - $675
      Professional Staff      $225 - $495
      Support Personnel       $ 75 - $200

Mr. Lobiondi adds that if the Debtors succeed in obtaining a
consensual restructuring, compromise and extinguishment of a
substantial amount of its existing indebtedness or a final
judicial order approving a plan of reorganization under chapter
11 or a sale of substantially all of the Debtors' assets under
section 363 of the Bankruptcy Code, then, upon the consummation
of such restructuring or sale, Zolfo Cooper will seek to be paid
a consummation fee of $1,500,000. Zolfo Cooper reserves the
right to seek court approval for additional compensation in
circumstances where extraordinary results may warrant such
additional compensation.

Mr. Lobiondi informs the Court that Zolfo Cooper has received a
retainer from the Debtors in the amount of $500,000, less
application of any outstanding prepetition fees and expenses.
The balance is to be held subject to further order by the
Bankruptcy Court. (IT Group Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc., 609/392-0900)  


INTEGRATED HEALTH: Court Confirms Rotech Plan Of Reorganization
---------------------------------------------------------------
At a Confirmation Hearing on Wednesday, February 13, 2001,
Integrated Health Services, Inc.'s lawyers from Young Conway
Stargatt & Taylor, LLP presented their case on behalf of the
Rotech Debtors as to why the Rotech Plan should be confirmed.  
Judge Walrath concurred that the Rotech Plan of Reorganization
satisfies the requirements for confirmation set forth in section
1129 of the Bankruptcy Code.

At the conclusion of the hearing, Judge Walrath issued her order
confirming the Plan (as modified by the Second Amended Plan)
under section 1129 of the Bankruptcy Code.  The terms of the
Plan, the Plan Supplement and the Plan Documents are
incorporated by reference into and are an integral part of the
Plan and the Confirmation Order.

The Court finds that the Plan complies with applicable
provisions of the Bankruptcy Code thereby satisfying 11 U.S.C.
Sec. 1129(a)(1).

Among other things, the Court is satisfied that the Plan
complies with:

*  Provision re Acceptance by Certain Classes. 11 U.S.C. Sec.
    1129(a)(8).

    Classes 1 and 8 of the Plan are Classes of unimpaired Claims
    that are conclusively presumed to have accepted the Plan
    under section 1126(f) of the Bankruptcy Code. Classes 3, 4,
    5 and 6 and certain holders of Other Secured Claims in Class
    2 (each of which is considered to be in a separate subclass
    of Class 2), have voted to accept the Plan in accordance
    with section 1126(c) and (d) of the Bankruptcy Code. Certain
    holders of Other Secured Claims in Class 2 (each of which is
    considered to be in a separate subclass of Class 2) have
    voted to reject the Plan. Classes 7 and 9 are not entitled
    to receive or retain any property under the Plan and,
    therefore, are deemed to have rejected the Plan pursuant to
    section 1126(g) of the Bankruptcy Code. Although section
    1129(a)(8) has not been satisfied with respect to the deemed
    rejecting Classes (Classes 7 and 9) or with respect to any
    separate subclasses in Class 2 that voted to reject the
    Plan), the Court concurs with the Debtors' professionals
    that the Plan is confirmable because the Plan satisfied
    section 1129(b) of the Bankruptcy Code with respect to such
    deemed rejecting Classes (and with respect to any rejecting
    subclass in Class 2).

    Section 1129(b) of the Bankruptcy Code provides a mechanism
    (known colloquially as "cram down" for confirmation of a
    plan of reorganization in circumstances where the plan is
    not accepted by all impaired classes of claims or interests.
    Under section 1129(b), the court may cram down a plan over
    the dissenting vote of an impaired class or classes of
    claims or interests as long as the plan does not
    "discriminate unfairly" and is "fair and equitable" with
    respect to such dissenting class or classes.

    Section 1129(b)(1) does not prohibit discrimination between
    classes. Rather, it prohibits discrimination that is unfair.
    Attorneys at Young, Conway represent that the Plan, which
    provides that no property will be distributed to the holders
    of allowed Claims in Class 7 (Punitive Damage Claims), does
    not discriminate unfairly because Punitive Damage Claims are
    dissimilar from other non-priority unsecured claims. General
    Unsecured Claims in Class 5 (including litigation claims)
    are claims based upon actual compensatory loss but Punitive
    Damage Claims in Class 7 are intended to punish or make an
    example of a wrongdoer. Class 9 is comprised of Rotech
    Equity Interests. The attorneys argue that inasmuch as there
    are non other Classes of Rotech Equity Interests, the Plan
    does not discriminate unfairly against Class 9. The
    attorneys also represent that the Plan is fair and
    equitable. First, no creditor or equity interest holder
    junior in right of priority to holders of Punitive Damage
    Claims (Class 7) will receive or retain any property on
    account of their Claims or Equity Interests. Accordingly,
    the requirements of section 1129(b)(2)(B) are satisfied with
    respect to Class 7, the attorneys represent. Second, no
    equity interest holder other than holders of Claims against
    the Rotech Debtors (Class 9) will receive or retain property
    under the Plan on account of their equity interests. The
    Plan therefore satisfies the absolute priority rule of
    section 1129(b)(2)(C) of the Bankruptcy Code, the attorneys
    argue.

*  Payment of Fees (11 U.S.C. Sec. 1129(a)(12)).

    The Court notes that all fees payable under section 1930 of
    title 28 of the United States Code (the UST Fees), as
    determined by the Bankruptcy Court, have been paid or will
    be paid pursuant to Section 12.1 of the Plan by the Rotech
    Debtors on or before the Effective Date.

    The Rotech Debtors and the UST have agreed as follows:

    (a) On or before the Effective Date, the Rotech Debtors
        shall pay the sum of $1,377,000 reflecting the estimated
        amount of UST Fees for the Rotech Debtors through the
        end of the 4th quarter of 2001, as well as any other UST
        Fees which accrue through the Effective Date.

    (b) The Rotech Debtors reserve all rights with respect to
        all UST Fees paid by them at any time during the Rotech
        Reorganization Cases, including, without limitation, the
        right to a refund of any payments of UST fees determined
        by a final non-appealable order to be overpayments. The
        Rotech Debtors, the Reorganized Rotech Debtors and New
        Rotech and the UST consent to the jurisdiction of the
        Bankruptcy Court and, if applicable, any appellate
        court, for, a final determination with respect to the
        UST Fees.

    (c) All Debtors, including the Rotech Debtors, shall submit
        the Monthly Operating Reports for the months of October
        2001 through January 2002 on or within 30 calendar days
        of the entry of the Confirmation Order, but in no event
        later than March 25, 2002. All of the Debtors shall
        provide disbursement information per Debtor for the 2nd
        through 4th quarters of 2001, which reports shall
        include the quarterly reports of disbursements by
        individual Debtor entity as had been done through the
        first quarter of 2001, on or within 30 calendar days of
        the entry of the Confirmation Order.

    (d) Subject to the Debtors' compliance with subparagraphs
        (a) and (c) above, the UST withdraws its objection to
        Confirmation of the Plan.

The Court concurs that substantive consolidation of the Rotech
Reorganization Cases for Plan purposes will benefit all
creditors of the Rotech Debtors and no creditor of any of the
Rotech Debtors will be prejudiced by the substantive
consolidation. According to the Debtors, the deemed
consolidation necessary to effectuate equitable distributions,
avoid the calculation, resolution and classification of
intercompany claims (which are collateral securing the Senior
Lender Claims), and reduce the administrative burden of
tabulating votes in respect of 159 separate chapter 11 cases, to
avoid adverse tax consequences that a permanent consolidation
could entail, and to promote judicial economy.

* IHS-Rotech Settlement.

The compromise and settlement between the IHS Debtors and the
Rotech Debtors, incorporated into the Plan, is approved by the
Court pursuant to Bankruptcy Rule 9019 as a fair, prudent, and
reasonable compromise of the controversies resolved by such
settlement and is binding upon all entities affected thereby.

* United States Settlement Agreement.

The Court also approved the compromise and settlement between
the Rotech Debtors and the holders of United States Claims,
incorporated into the Plan, as a fair, prudent, and reasonable
compromise of the controversies resolved by such settlement and
is binding upon all entities affected thereby.

* Plan Supplement

Without need for further order or authorization of the
Bankruptcy Court, the Rotech Debtors, the Reorganized Rotech
Debtors and New Rotech are authorized and empowered to make any
and all modifications to any and all documents included as part
of the Plan Supplement or to any other Plan Documents that do
not materially modify the terms of such documents and are
consistent with the Plan. The Rotech Debtors are authorized to
implement the Stock Option Plan without the necessity of
shareholder approval required under any applicable law,
including, without limitation, Sections 162(m) and 422(b)(l) of
the Internal Revenue Code.

* Bar Date for Rejection Damage Claims

Pursuant to Section 8.3 of the Plan, the bar date for filing
proofs of claim for damages arising from any rejection of an
executory contract or unexpired lease by any of the Rotech
Debtors pursuant to Section 8.1 of the Plan is 30 days after (a)
in the case of an executory contract or unexpired lease that was
terminated or expired by its terms prior to the Confirmation  
Date, the Confirmation Date, (b) in the ease of an executory
contract or unexpired lease rejected by any Rotech Debtor, the
entry of the order of the Bankruptcy Court authorizing such
rejection, or (e) in the case of an executory contract or
unexpired lease that is deemed rejected pursuant to Section 8.1
of the Plan and the Confirmation Order, the Confirmation Date.

* Exemption from Certain Taxes

Pursuant to section 1146(c) of the Bankruptcy Code, the
issuance, transfer or exchange of notes or equity securities
under the Plan, the creation of any mortgage, deed of trust, or
other security interest, the making or assignment of any lease
or sublease, or the making or delivery of any deed or other
instrument of transfer under, in furtherance of, or in
connection with the Plan, shall not be subject to any stamp,
real estate transfer, sales, use, mortgage recording or other
similar tax.

* IHS Noteholder Settlement

(a) As of the Effective Date, the holders of Allowed Senior
     Lender Claims shall be deemed to have agreed to the
     settlement terms set forth in Section 4.3(i) of the Plan
     with the IHS Noteholders.

(b) On the Effective Date, the Rotech Debtors will deposit the
     IHS Noteholder Payment into the IHS Noteholder Escrow
     Account. On the IHS Noteholder Payment Date, the IHS
     Noteholder Escrow Agent will pay the IHS Noteholder
     Payment, plus all interest and earnings thereon, (i) first
     to Majority Noteholder Counsel in an amount equal to such
     Majority Noteholder Counsel's fees and expenses not in
     excess of $200,000 (it being understood and agreed that
     Majority Noteholder Counsel need not file any fee
     application in respect thereof with the Bankruptcy Court),
     (ii) then to reimburse the Indenture Trustee for its
     reasonable fees and expenses to the extent permitted by the
     IHS Indentures, and (iii) then to the IHS Noteholders as
     their respective interests may appear.

(c) As between the IHS Noteholders and the holders of Senior
     Lender Claims, the payment described in subparagraph (b)
     above will be in full and complete satisfaction of all
     claims of IHS Noteholders against the Debtors under or in
     respect of the IHS Notes or the IHS Indentures; provided,
     however, that upon the occurrence of such payment, the
     holders of Senior Lender Claims shall he subrogated to, and
     entitled to assert, the entire amount of the claims of the
     IHS Noteholders against the Debtors pursuant to the terms
     and provisions in each IHS Note Indenture concerning the
     subordination of the IHS Noteholders' claims to the Senior
     Lender Claims, as if no such payment and satisfaction had
     occurred.

(d) The payment described in subparagraph (b) above is subject
     to the condition that the Majority Noteholders will (i)
     subject to the satisfaction of section 1125 of the
     Bankruptcy Code, vote their IHS Note Claims to accept an
     Acceptable IHS Plan and (ii) neither file or prosecute, nor
     authorize or direct the IHS Indenture Trustee to file or
     prosecute, with the Bankruptcy Court (x) an objection to an
     Acceptable IHS Plan or (y) a motion seeking the appointment
     of a Chapter 11 trustee for IHS or the conversion of the
     IHS Reorganization Cases to a case under Chapter 7 of the
     Bankruptcy Code (it being understood and agreed that this
     paragraph shall not be deemed to refer to any such
     objection or motion filed or prosecuted by the Creditors'
     Committee (with or without the Majority Noteholders'
     support)).

* Final Fee Applications

Pursuant to Section 2.2 of the Plan, all entities seeking an
award by the Bankruptcy Court of compensation for services
rendered or reimbursement of expenses incurred through and
including the Confirmation Date under sections 503(b)(2),
503(b)(3), 503(h)(4), or 503(b)(5) of the Bankruptcy Code (a)
shall file their respective final applications for allowance of
compensation for services rendered and reimbursement of expenses
incurred by the date that is 45 days after the Effective Date
and (b) shall be paid in full in Cash in such amounts as are
allowed by the Bankruptcy Court (i) upon the later of (x) the
Effective Date and (y) the date upon which the order relating to
the allowance of any such Administrative Expense Claim is
entered or (ii) upon such other terms as may be mutually agreed
upon between the holder of such an Administrative Expense Claim
and the Rotech Debtors or, on and after the Effective Date, the
Reorganized Rotech Debtors and New Rotech. The Rotech Debtors
are authorized to pay compensation for services rendered or
reimbursement of expenses incurred after the Confirmation Date
and until the Effective Date in the ordinary course and without
the need for Bankruptcy Court approval.

* Discharge of Claims and Termination of Equity Interests

Except as provided in the Plan and the Confirmation Order, on
the Effective Date, all existing Claims against and Equity
Interests in the Rotech Debtors, shall be, and shall be deemed
to be, discharged, satisfied, released and terminated in full,
and all holders of Claims and Equity Interests shall be
precluded and enjoined from asserting against the Reorganized
Rotech Debtors and New Rotech, their successors and assigns, or
any of their respective assets or properties, any other or
further Claim or Equity Interest based upon any act or omission,
transaction, or other activity of any kind or nature that
occurred prior to the Effective Date, whether or not such holder
has filed a proof of claim or proof of equity interest and
whether or not the facts or legal bases were known or existed
prior to the Effective Date.

The Plan shall not be deemed to extinguish, waive or otherwise
prejudice the rights of any party under section 553 of the
Bankruptcy Code in respect of pre-Commencement Date indebtedness
owed by any such party to the Rotech Debtors.

* Discharge of Rotech Debtors and New Rotech.

Pursuant to Section 10.3 of the Plan, upon the Effective Date
and in consideration of the distributions to be made under the
Plan, except as otherwise expressly provided therein, each
holder (as well as any trustee or agent on behalf of such
holder) of a Claim or Equity Interest and any affiliate of such
holder shall be deemed to have forever waived, released, and
discharged the Rotech Debtors and New Rotech, to the fullest
extent permitted by section 1141 of the Bankruptcy Code, of and
from any and all Claims, Equity Interests, rights, and
liabilities that arose prior to the Effective Date. Upon the
Effective Date, all such persons shall be forever precluded and
enjoined, pursuant to section 524 of the Bankruptcy Code, from
prosecuting or asserting any such discharged Claim against or
terminated Equity Interest in the Rotech Debtors or New Rotcch.

* Termination of Injunctions and Automatic Stay.

Except as otherwise provided in the Plan or the Confirmation
Order, all injunctions or stays arising under or entered during
the Rotech Reorganization Cases under sections 105 or 362 of the
Bankruptcy Code or otherwise, and in existence on the
Confirmation Date, shall remain in full force and effect until
the later of the Effective Date and the date indicated in such
order. Except as otherwise may be expressly set forth in the
Plan, the Plan Documents or the Confirmation Order, all
injunctions or stays arising under or entered into during the
IHS Reorganization Cases under sections 105 or 362 of the
Bankruptcy Code or otherwise shall remain in full force and
effect in favor of the IHS Debtors and any other beneficiaries
thereof.

* Cancellation of Existing Securities and Agreements.

Pursuant to Section 5.9 of the Plan, except for purposes of
evidencing a right to distributions under the Plan or as
otherwise provided in the Plan, on the Effective Date all
agreements and other documents evidencing Claims or rights of
any holder of a Claim against any of the Rotech Debtors,
including all indentures and notes evidencing such Claims, shall
be canceled and deemed null and void and of no force and effect
as against the Rotech Debtors, the Reorganized Rotech Debtors
and New Rotech. Except as expressly provided in Section 5.1 of
the Plan or in the Confirmation Order, nothing contained in the
Plan or in the Confirmation Order shall affect any such
agreements or documents to the extent they evidence Claims
against any of the IHS Debtors or any other entity.

* Section 10.6 (Exculpation) of the Plan shall be, and is,
   amended in its entirety to read as follows:

        Neither the Rotech Debtors, Alvarez & Marsal, Inc., any
        Disbursing Agent, the Creditors' Committee, the
        Unofficial Senior Lenders' Working Group, IHS, nor any
        of their respective members, officers, directors,
        employees, agents, counsel, or other professionals shall
        have or incur any liability to any holder of any Claim
        or Equity Interest or any other entity for any act or
        omission in connection with, or arising out of the
        Rotech Reorganization Cases, the formulation,
        dissemination, implementation or confirmation of the
        Plan of Reorganization, the consummation of the Plan of
        Reorganization, or any other act or omission as of the
        date of confirmation in connection with the Plan of
        Reorganization, the Disclosure Statement, or any
        contract, instrument, release or other document or
        agreement related thereto, provided, however, that the
        foregoing shall not aftect the liability of any person
        that otherwise would result from any such act or
        omission to the extent such act or omission is
        determined by a Final Order to have constituted gross
        negligence or willful misconduct. Any of the foregoing
        parties in all respects shall be entitled to rely on the
        advice of counsel with respect to their duties and
        responsibilities in connection with the Plan of
        Reorganization.

* Section 11 (Retention of Jurisdiction) of the Plan is modified
   to delete the word "exclusive" in the second line thereof.
   (The original version says: On and after the Effective Date,
    the Bankruptcy Court shall retain and have exclusive
    jurisdiction...)

* Objections

The Court ordered that all Objections that have not been
withdrawn, waived, or settled, and all reservations of rights
pertaining to confirmation of the Plan included therein, are
overruled on the merits.

(a) With respect to the Objection of Edward S. Poduzesak and
     Rose Podsuzcsak, the Rotech Debtors have agreed that
     Podsuzesak's secured claim, to the extent allowed, shall be
     treated in accordance with Section 4.2 of the Plan by
     payment in full of such allowed secured claim as soon as
     practicable after the later of (1) the Effective Date and
     (2) the first Business Day that is 30 Calendar Days after
     the date such secured claim becomes an allowed secured
     claim. However, the Court makes it clear that this shall he
     deemed to allow Podsuzcsak's claim, and the right of the
     Rotech Debtors and the Reorganized Rotech Debtors to object
     to the allowance of such claim shall be preserved. Until
     Podsuzcsak's allowed secured claim is paid in full,
     Podsuzesak will retain their lien, if any, in their
     collateral, if any.

(b) With respect to the Objection of Blount Memorial Hospital,
     Inc., nothing contained in the Plan or the Confirmation
     Order shall be deemed to reduce, prejudice or otherwise
     effect the rights and defenses of Blount in, or expand or
     reduce the Bankruptcy Court's jurisdiction over, that
     certain adversary proceeding styled Rotech Medical
     Corporation et al v. Blount Memorial Hospital, Inc. et al,
     Adv. Proc. No. 00-1145 (MFW).

(c) With respect to the Objection of Daphne Richardson, the
     definition of "Administrative Expense Claims" set forth in
     the Plan shall be deemed to include Daphne Richardson's
     alleged postpetition personal injury claim; provided, that
     nothing contained in the Confirmation Order shall be deemed
     to allow such claim, and the right of the Rotech Debtors
     and the Reorganized Rotech Debtors to object to the
     allowance of such claim shall be preserved.

(d) With respect to the Objections filed by a number of taxing
     authorities, the Rotech Debtors have agreed that

     -- the interest rate to be paid on all Priority Tax Claims
        under Section 2.3 of the Plan shall be as follows:

        (1) with respect to holders of Allowed Priority Tax
            Claims, other than the Internal Revenue Service
            (IRS) and the Texas Comptroller of Public
            Accountants and Texas Workforce Commission
            (collectively, the Texas Comptroller and Workforce
            Commission"), the greater of (x) 6% per annum, and
            (y) a fixed annual rate equal to the rate applicable
            to underpayments of federal income tax on the
            Effective Date (determined pursuant to section 6621
            of the Internal Revenue Code of 1986, as amended  
            (the Internal Revenue Code), without regard to
            subsection (e) thereof), but in no event greater
            than 8% per annum

        (2) with respect to the IRS, 7% per annum, provided that
            notwithstanding anything to the contrary contained
            in the Plan, all payments made under Section 2.3(ii)
            of the Plan to the IRS shall be made on a quarterly
            basis;

        (3) with respect to the Texas Comptroller and Workforce
            Commission, the greater of (x) 7% per annum and (y)
            an annual rate equal to the interest rate provided
            to holders of Allowed Other Secured Claims pursuant
            to Section 4.2 of the Plan plus 1%, but in no event
            greater than 8% per annum.

     -- the Debtors have agreed to clarify Sections 10.5
        (Injunction Against Interference With Plan) and 10.6
        (Exculpation) of the Plan as follows: (i) Section 10.5
        of the Plan shall not be deemed to enjoin actions by
        holders of Priority Tax Claims to the extent that such
        holders are not being timely paid in accordance with
        Section 2.3 of the Plan; and (ii) Section 10.6 of the
        Plan shall not be deemed to encompass acts or omissions
        solely related to the ordinary course conduct of the
        Rotech Debtors' businesses during the pendency of the
        Rotech Reorganization Cases nor shall Section 10.6 of
        the Plan (or any other provision of the Plan) operate as
        a release or discharge of any claims the objecting
        taxing authorities hold against any nondebtor third-
        parties, including but not limited to the officers and
        directors of the Rotech Debtors.

     -- all allowed and enforceable liens securing allowed
        claims of ad valorem property tax and other tax
        obligations, whether arising prepetition or
        postpetition, shall remain in full force and effect
        notwithstanding anything to the contrary contained in
        the Plan until the allowed secured claims secured by
        such liens have been paid in full in accordance with the
        Plan.

     -- the Priority Tax Claim filed by Georgia shall be treated
        in accordance with the consent order between the Rotech
        Debtors and Georgia to be entered by the Bankruptcy
        Court substantially contemporaneous with the
        Confirmation Order.

(e)     With respect to the Objection of the Texas Comptroller
     and Workforce Commission, the Plan shall de deemed amended
     to provide as follows:

              A failure by the Rotech Debtors or the Reorganized
        Rotech Debtors to make timely payments under the Plan on
        account of allowed claims of the Texas Comptroller and
        Workforce Commission after the allowance of such claims
        shall constitute an event of default (a Texas Default).
        If the Rotech Debtors or the Reorganized Rotech Debtors
        fail to cure a Texas Default within 30 days after notice
        of such Texas Default has been received by the Rotech
        Debtors or the Reorganized Rotech Debtors, the Texas
        Comptroller and Workforce Commission may (a) enforce the
        entire amount of its allowed claim under Texas law; (b)
        exercise any and all of its rights and remedies under
        Texas law; and/or (c) seek such relief as may be
        appropriate in this Bankruptcy Court.

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


INT'L FIBERCOM: Files for Chapter 11 Protection in Arizona
----------------------------------------------------------
International FiberCom Inc. (Nasdaq:IFCI) and its subsidiaries
filed for reorganization under Chapter 11 of the Federal
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
Arizona on Feb. 13, 2002.

The filing is part of the company's plan, as a debtor-in-
possession and subject to the supervision and orders of the
court, to deal with its obligations, manage and operate its
business, service its customers and sell assets and businesses
in a strategic, orderly manner.

As previously disclosed, the company had received a number of
responsive bids for the purchase of its assets from interested
parties on Feb. 8. After careful consideration of these bids,
the board of directors has authorized management to pursue
discussions with several of the bidders.

International FiberCom, operating through its subsidiaries, is
an end-to-end solutions provider for the telecommunications
industry, offering a broad range of engineering-based solutions
designed to enable and enhance voice, data and video
communications through fixed and wireless networks. The company
designs, deploys, and manages internal and external networks
infrastructure for leading wireline, wireless and broadband
telecommunications providers in the United States.


INT'L FIBERCOM: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: International Fibercom, Inc.
             aka International Environmental Holdings, Inc.
             aka Hospitality Capital Corp.
             aka Miller Technology & Communications Corp.
             aka Miller Education & Communications Corp.
             aka Miller Investments, Inc.
             3230 E. Broadway Rd., #200
             Phoenix, AZ 85040

Bankruptcy Case No.: 02-02143-RJH

Debtor affiliates filing separate chapter 11 petitions:

             Entity                        Case No.
             ------                        --------
International Fibercom - KL, Inc.          02-02144-RJH
International Fibercom - RC, Inc.          02-02145-RJH
International Fibercom - CON, Inc.         02-02146-RJH
International Fibercom - EDG, Inc.         02-02147-RJH
International Fibercom - COM, Inc.         02-02148-RJH
International Fibercom - WAY, Inc.         02-02149-RJH
Aerocomm, Inc.                             02-02150-RJH
International Fibercom - AST, Inc.         02-02151-RJH
International Fibercom - WDS, Inc.         02-02152-RJH
All Star Telecom Nevada Inc.               02-02153-RJH
Beecroft Trenching Inc.                    02-02154-RJH
International Fibercom - NYA, Inc.         02-02155-RJH
Ifc Leasing, Inc.                          02-02156-RJH
Aerocomm Research, Inc.                    02-02157-RJH
International Fibercom - PREM, Inc.        02-02158-RJH
International Fibercom - QT, Inc.          02-02159-RJH
International Fibercom - DEN, Inc.         02-02160-RJH
International Fibercom - NEW, Inc.         02-02161-RJH
International Fibercom - NS, Inc.          02-02162-RJH
Anacom Systems Corp.                       02-02163-RJH

Type of Business: The company resells used, refurbished
                  communications equipment, including fiber-
                  optic cables. It also designs, develops, and
                  installs networks for communications carriers
                  such as cable TV operators, telecom
                  companies, and ISPs. Other services include
                  broadband design engineering, premises
                  wiring, systems integration, and installation
                  of Internet equipment. International FiberCom
                  also develops and installs proprietary
                  products to enhance wireless communications.

Chapter 11 Petition Date: February 13, 2002

Court: District of Arizona (Phoenix)

Judge: Randolph J. Haines

Debtor's Counsel: Robert J. Miller, Esq.
                  Bryan Cave, LLP
                  Two N. Central, Suite 2200
                  Phoenix, AZ 85004
                  Tel: 602-364-7000
                  Fax: 602-364-7070

Total Assets: $13,446,470

Total Debts: $19,428,328

Debtor's 20 Largest Unsecured Creditors:

Entity                                Claim Amount
------                                ------------
Ernst & Young LLP                     $350,160
LA98564 File #98594
Los Angeles CA 90074-8594

Continental Airlines                  $206,840

Premiun Specialists Inc.               $42,306

Allen & Caron, Inc.                    $41,026

American Express - Travel              $39,308

Semple & Cooper                        $30,655

The Nasdaq Stock Market, Inc.          $26,208

Kruse Associates PC                    $19,749

Brunetti Dec                           $17,500

BDO Seidman LLP                        $16,455

The Louderback Law Firm                $16,312

Neil D. Kugel C.P.A                    $12,726

Daniel's Moving and Storage Inc.        $9,930

Insight                                 $9,964

Seyfarth Shaw Attorneys                 $9,100

Jamcracker                              $9,049

Worldcom Payment Processing             6,154

Complink                                $5,892

American Express                        $4,932

Global Crossing Conferencing            $4,549


KAISER ALUMINUM: Blocking Enforcement of Senior Debt Guarantees
---------------------------------------------------------------
State Street Bank and Trust Company and U.S. Bank Trust National
Association serve as the indenture trustees for four public
issues of Kaiser Aluminum Corporation's bonds:

      (a) $400,000,000 of 12-3/4% Senior Subordinated Notes due
           2003;

      (b) $225,000,000 of 9-7/8% Senior Notes due 2002;

      (c) $175,000,000 of 10-7/8% Series B Senior Notes due
           2006; and

      (d) $50,000,000 of 10-7/8% Series D Senior Notes due
           2006.

Alpart Jamaica, Inc. and Kaiser Jamaica Corporation guarantee
Kaiser Aluminum & Chemical Corporation's obligations to repay
the $850 million of senior debt.  Moreover, Kaiser agrees, under
the explicit terms of each indenture, that in the event the
Company files for bankruptcy, the Indenture Trustees can take
whatever steps they think appropriate to enforce and collect on
those guarantees.

Kaiser says that AJI and KJC can't pay, but it makes no sense
for those companies to file for bankruptcy or commence other
insolvency proceedings.  By way of this Adversary Proceeding,
the Debtors ask Judge Walsh to issue a temporary restraining
order and put a preliminary injunction in place that bars the
Indenture Trustees from enforcing the guarantees under U.S.,
Jamaican or other applicable law.

Ian Connor Bifferato, Esq., at Bifferato, Bifferato & Gentilotti
in Wilmington, Delaware, argue that the TRO and injunction are
necessary to preserve the value of AJI and KJC, which are
significant assets of the Debtors' estates.  By preserving the
value of these two non-debtor entities, Kaiser's overall
reorganization has a higher probability of success.

A bankruptcy filing by either AJI or KJC, Mr. Bifferato
continues, would create substantial uncertainty under Delaware
law and could materially and adversely affect the value of the
Debtors' estates by precluding the Debtors from continuing to
realize the benefits of the Debtors' investment in Alpart and a
balanced raw material system both in terms of the cost of raw
material needed to supply the Debtors' partially owned smelters
in Ghana and Wales, as well as the loss of revenue from third
party sales of alumina.  Under Delaware partnership law, a
bankruptcy filing by or against a partner causes the
dissociation of the partner from the partnership. A partner's
dissociation effectively terminates the partner's right to
participate in the management and conduct of the partnership
business.

Under Jamaican law, State Street and U.S. Bank, because of
Kaiser's bankruptcy filing, can now apply to the Supreme Court
to obtain a Mareva injunction, so named after the case which
introduced it into English law, Mareva Compania Naviera S.A. v.
International Burk Calliers S.A., 1975 2 Lloyds 509.  In its
usual scope, such an order restrains the defendant, in this
case, AJI and KJC, from removing from the jurisdiction or in any
way disposing or dealing with or diminishing the value of any of
his assets in the jurisdiction, in this case Jamaica, whether in
the name of the defendant or not and whether solely or partly
owned, until trial of action.  AJI and KJC's assets that would
be subject to the injunction would be any assets in Jamaica
owned beneficially by AJI or KJC solely and AJI's and KJC's
share of the assets held as tenants-in-common with Hydro
Aluminum Jamaica a.s., as partners for Alpart.  Alpart's assets
are liable to execution to satisfy AJI and KJC's non-partnership
debts.  In addition to, or as an alternative to executing
against the partner's share of the assets, a judgment creditor
is entitled to seek the appointment of a Receiver of the
partner's share of the profits and of any monies due him under
the partnership.

Although the creditors in this case would probably encounter
some difficulty establishing the risk of dissipation since most
of the assets of AJI and KJC in the jurisdiction are held as
tenants-in-common with others, there would, however, be free
assets of AJI and KJC in Jamaica such as bank accounts and their
share of bauxite or alumina products delivered to them for
shipment out of Jamaica, etc., which might more easily be
transferred or sold or charged, and the risk of the dissipation
hurdle might be more easily met in relation to such assets.

If the noteholders obtained a Mareva injunction, the Debtors
warn that Alpart could be precluded from making payroll and
paying other operational costs and could be shut down.  If
Alpart ceased operating, the Debtors' supply of alumina from
Alpart would be effectively cut off, which, in turn, would:

     (a) shut down the Debtors' partially owned smelters in
         Ghana and Wales, which are unable to store more than a
         short-term supply of alumina;

     (b) expose those smelters to substantial costs associated
         with the shut down and restart of equipment;

     (c) deny the Debtors access to alumina necessary to meet
         customer needs, resulting in a loss of significant
         revenue and damage to the Debtors' business; and

     (d) cause available alumina at Alpart to be rendered
         unusable due to chemical deterioration (alumina cannot
         be effectively stored or stockpiled).

Similarly, if for any reason, Alpart is unable to distribute
alumina to AJI and KJC, Alpart, without the ability to store
alumina, would be forced to shut down or curtail operations.
Further, as another consequence of that injunction, AJI and KJC
would be precluded from meeting their obligations in respect to
a power plant they manage and other obligations under a mining
lease with the Government of Jamaica.  Because of this
widespread impact, entry of a Mareva injunction would
substantially impair the ability of the Debtors to reorganize.

The way to avert these problems, the Debtors tell Judge Walsh,
is to tie the Indenture Trustees' hands by issuing the TRO and
preliminary injunction and preventing them from enforcing the
guarantees. (Kaiser Bankruptcy News, Issue No. 1; Bankruptcy
Creditors' Service, Inc., 609/392-0900)   


KAISER ALUMINUM: S&P Drops Ratings to D After Chapter 11 Filing
---------------------------------------------------------------
Standard & Poor's said that it was lowering its senior unsecured
debt rating on Houston, Texas-based Kaiser Aluminum & Chemical
Corp. to 'D' from double-'C' following the company's
announcement that it has filed for Chapter 11 bankruptcy
protection.

Standard & Poor's also said that it was removing its ratings on
Kaiser from CreditWatch but that its ratings on Kaiser's parent,
MAXXAM Inc., as well as MAXXAM subsidiary Pacific Lumber Co.
remain on CreditWatch with negative implications. Total debt at
Kaiser was a little more than $900 million.

Standard & Poor's credit analyst Thomas Watters said, "Kaiser's
financial profile deteriorated as a result of weak aluminum
demand and prices as a result of the economic recession. In
addition, increased asbestos litigation expenses and rising
retiree medical and pension costs have negatively affected
Kaiser's cash flow and impaired its financial flexibility.
Kaiser is seeking Chapter 11 protection so that it can attempt
to reorganize its financial structure."

Standard & Poor's said that it had recently lowered Kaiser's
corporate credit rating and senior subordinated debt ratings to
'D' when the company missed its $25.5 million interest payment
on its 12-3/4% senior subordinated notes. Standard & Poor's
ratings on Maxxam Inc. and Pacific Lumber Co. were placed on
CreditWatch on January 15, 2002, due to ongoing concerns about
whether or not Maxxam will face financial obligations in respect
to Kaiser as well as concerns regarding the poor wood product
market conditions that are affecting Pacific Lumber.

DebtTraders reports that Kaiser Aluminum & Chemicals' 12.750%
bonds due 2003 (KAISER2) are trading between 33 and 36. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=KAISER2for  
real-time bond pricing.


KC ACQUISITION: Fails to Pay $1.7 Million Security Assoc. Debt
--------------------------------------------------------------
Security Associates International, Inc. (Amex: SAI), one of the
largest wholesale security alarm monitoring companies in the
United States, announced the failure by KC Acquisition
Corp/Monitoring Acquisition Corporation to pay a $1.725 million
note receivable when due on December 31, 2001.

Security Associates obtained the note, which was issued by
Monitoring Acquisition Corporation, an affiliate of KC
Acquisition Corp, from SecurityVillage.com Inc. on August 6,
2001 in connection with the purchase of assets of
SecurityVillage.com by Security Associates. On January 2002,
the note was declared in default and KC Acquisition has made
claims relating to the termination of the proposed merger
between Security Associates and KC Acquisition some of which KC
Acquisition Corp. believes nullify the note receivable. Security
Associates believes that all issues surrounding the failed
merger were previously settled and that the note receivable is a
valid obligation. Security Associates intends to vigorously
pursue collection of the note.

Security Associates provides security alarm monitoring services
to residences and businesses, including more than 350,000
subscribers, through a nationwide network of 2,500+ independent
security alarm installing and servicing dealers; the largest
independent dealer network in the country.


KMART CORPORATION: Paying Pre-Petition Foreign Vendor Claims
------------------------------------------------------------
Kmart Corporation sought and obtained the Court's authority to
pay pre-petition claims owing to certain Foreign Vendors. The
Debtors estimate that the amount of the pre-petition Foreign
Vendor Claims is approximately $43,200,000.

The Court further requires banks to honor any pre-petition
checks drawn or fund transfer requests made for payment of
claims owing to Foreign Vendors.

J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom,
in Chicago, Illinois relates that the Debtors often buy goods
from sources located outside the United States. As a result, Mr.
Ivester notes, the Debtors incurred certain pre-petition
obligations necessary to obtain possession of critical imported
merchandise that has not yet been delivered to them. "Many of
these goods in transit are subject to the Debtors' planned
advertising programs," Mr. Ivester explains.

The Debtors has convinced Judge Sonderby that a delay in the
availability of these goods might frustrate customers. "It will
result in the loss of customer goodwill and it will undoubtedly
be detrimental to the Debtors' reorganization efforts," Mr.
Ivester points out.

With the Court's consent to pay the claims of Foreign Vendors,
the Debtors expect lesser disruptions in their retail
operations. (Kmart Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service, Inc., 609/392-0900)   


LUBY'S INC.: Dimensional Fund Reports 7% Equity Stake
-----------------------------------------------------
Dimensional Fund Advisors Inc. hold 1,577,200 shares of the
common stock of Luby's, Inc. This amount represents 7.033849173%
of the outstanding common stock of Luby's. Dimensional Fund
Advisors exercise sole power to vote or direct the vote of, and
sole power to dispose of, or direct the dispostion of the
shares.

Dimensional Fund Advisors Inc., an investment advisor, furnishes
investment advice to four investment companies registered under
the Investment Company Act of 1940, and serves as investment
manager to certain other commingled group trusts and separate
accounts. These investment companies, trusts and accounts are
the "Funds". In its role as investment advisor or manager,
Dimensional possesses voting and/or investment power over Luby's
securities held by the Funds. All securities reported here are
owned by the Funds. Dimensional disclaims beneficial ownership
of such securities.


MAGNUM HUNTER: Special Stockholders' Meeting Set For March 13
-------------------------------------------------------------
A special meeting of the stockholders of Magnum Hunter
Resources, Inc. is to be held on March 13, 2002 at 9:00 a.m.,
local time, at the Omni Park West Hotel, 1590 LBJ Freeway,
Dallas, Texas 75234, to consider and vote upon proposals to
approve the issuance of Magnum Hunter common stock to the
stockholders of Prize Energy Corp. in accordance with the merger
agreement, to approve an amendment to the articles of
incorporation of Magnum Hunter to increase its authorized number
of shares of common stock to 200,000,000, and to transact other
business as may properly come before the special meeting.

Pursuant to the merger agreement Prize will merge with and into
a wholly owned subsidiary of Magnum Hunter and each share of
Prize common stock will be converted into 2.5 shares of Magnum
Hunter common stock plus a cash payment ranging from $0.25 to
$5.25 per share, based on the price of Magnum Hunter common
stock before the merger. The cash portion of the merger
consideration will be sufficient to cause the total value of the
consideration to equal $24.00 per share provided that the value
of Magnum Hunter shares as determined in the merger agreement is
between $7.50 and $9.50 per share, inclusive.

At the special meeting, as stated, the stockholders will vote on
two separate proposals. The first proposal is to approve the
issuance of Magnum Hunter common stock to the stockholders of
Prize pursuant to the merger agreement. The second proposal is
to approve an amendment to the articles of incorporation to
increase the authorized number of shares of Magnum Hunter common
stock to 200,000,000. The merger will not take place unless the
first proposal is approved by the stockholders.

Holders of record of Magnum Hunter common stock and one class of
preferred stock at the close of business on February 7, 2002 are
entitled to notice of, and to vote at, the special meeting and
any adjournment or postponement of the meeting.

The approval of the first proposal, to approve the issuance of
Magnum Hunter common stock to the stockholders of Prize pursuant
to the merger agreement, will require the affirmative vote of
the holders of a majority of the shares of Magnum Hunter stock
entitled to vote and present, in person or by proxy, at the
special meeting. The approval of the second proposal will
require the affirmative vote of the holders of a majority of the
outstanding shares of Magnum Hunter stock entitled to vote.


MARINER POST-ACUTE: Confirmation Hearing Set for March 25, 2002
---------------------------------------------------------------
             IN THE UNITED STATES BANKRUPTCY COURT
                  FOR THE DISTRICT OF DELAWARE

In re                           ) Chapter 11
MARINER POST-ACUTE              ) Case No. 00-00113 (MFW)
NETWORK, INC.,                  ) (Jointly Administered
A Delaware corporation, et al., ) Case Nos. 00-00113 (MFW)
           Debtors.             ) through 00-00214 (MFW)
                                ) inclusive)
                                )
In re                           ) Chapter 11
MARINER HEALTH GROUP, INC.,     ) Case No. 00-00215 (MFW)
A Delaware Corporation, et al., ) (Jointly Administered
           Debtors.             ) Case Nos. 00-00215 (MFW)
                                ) through 00-00301 (MFW)
                                ) inclusive)
                                )

   NOTICE OF ENTRY OF ORDER (I) APPROVING DEBTORS' DISCLOSURE   
STATEMNET; (II) SCHEDULING HEARING TO CONSIDER CONFIRMATION OF
     DEBTORS' JOINT CHAPTER 11 PLAN; AND (III) ESTABLISHING   
    PROCEDURES AND DEADLINE FOR VOTING ON THE DEBTORS' PLAN
          --------------------------------------------

   PLEASE TAKE NOTICE THAT the above-captioned debtors and
debtors in possession (collectively, the "Debtors") have
previously filed with the United States Bankruptcy court for the
District of Delaware (the "Bankruptcy court"), the "Second
Amended Joint Plan of Reorganization for Mariner Post-Acute
Network, Inc. mariner Health Group, Inc., and Their Respective
Debtor Affiliates Dated February 1, 2002 (the "Plan") and
"Disclosure Statement for the Second Amended Joint Plan of
Reorganization for Mariner Post-Acute Network, Inc., Mariner
Health Group, Inc., and Their Respective Debtor Affiliates Dated
February 1, 2002 (the "Disclosure Statement"), pursuant to
chapter 11 of the Bankruptcy Code.  By order dated February
approval or rejection of the Debtors' Plan.  If you would like a
copy of the Disclosure Statement (which copy will include the
Plan as an Annex), you may download a copy from the Debtor's Web
site, http://www.mpan.com,request a copy in writing from  
Poorman-Douglas Company (the "Balloting Agent"), PO Box 4390,
Portland, Oregon 97206-4390, (503) 350-6230 (facsimile).

   PLEASE TAKE FURTHER NOTICE THAT if you hold a Claim against
one of the Debtors that entitles you to vote to accept or reject
the Plan, you should receive a Ballot and voting instructions.  
For your vote to be counted, you must strictly comply with the
instructions included with your Ballot, including returning you
Ballot so that it is received on or before March 5, 2002 at 5:00
p.m. (Prevailing Pacific Time).

   PLEASE TAKE FURTHER NOTICE THAT holder of (i) unimpaired
Claims or (ii) impaired Claims or Equity interest that will
receive no distribution under the Plan are not entitled to vote
on the Plan.  If you do not receive a Ballot form, the Debtors
believe that you are not entitled to vote on the Plan.  If you
disagree with the Debtors' classification or amount of your
Claim for voting purposes, contact the Balloting Agent.  If,
after contacting the Balloting Agent, you still disagree with
the Debtors' classification or amount of your Claim, then you
must file with the Bankruptcy Court and serve on the undersigned
counsel a motion for an order pursuant to Rule 3018(a) Motions
must be filed with and received by the Bankruptcy Court and
served upon and received by the undersigned counsel, together
with proof of service, not later than February 19, 2002 at 4:00
p.m. (Prevailing Eastern Time).  Inc accordance with Bankruptcy
Rule 3018, as to any creditor filing a Rule 3018(a) Motion, such
creditor's Ballot will not be counted unless temporarily allowed
by the Court for voting purposes, after notice and a hearing
Creditors may contact the Balloting Agent to receive a Ballot
for any Claim for which a Rule 3018(a) Motion has been timely
filed.  Rule 3018(a) Motions that are not timely filed and
served in the manner set forth above shall not be considered.

  PLEASE TAKE FURTHER NOTICE THAT unless either (i) you are the
holder of a Claim that is scheduled in the Debtors' Schedules of
Liabilities dated May 2, 2000, as amended on July 14, 2000, and
again on June 28, 2001 (collectively, the "Schedules"), in a
liquidated, noncontingent, and undisputed amount greater than
zero, or (ii) you timely filed a proof of claim, which Claim has
not been withdrawn or disallowed by the Bankruptcy Court, you
shall not be treated as a creditor of the Debtors for all
purposes including, but not limited to, (a) receiving notices
regarding, or distributions under, the Plan, and (b) voting on
the Plan.

   PLEASE TAKE FURTHER NOTICE THAT a hearing to consider
confirmation of the plan and any objections or proposed
amendments or modifications thereto will be held before the
Honorable Mary F. Walrath, United States Bankruptcy Jude, 824
Market Street, Sixth floor, Wilmington, Delaware 19801 on March
25, 2002 at 9:00 a.m. Prevailing Eastern Time, or as soon
thereafter as counsel may be heard (the "confirmation Hearing").  
The Confirmation Hearing may be adjourned from time to time
without further notice other than an announcement of the
adjourned date or dates at the previously scheduled Confirmation
Hearing.

   PLEASE TAKE FURTHER NOTICE THAT any objections to the Plan
must (a) be in writing; (b) comply with the Bankruptcy Rules and
the local rules and orders the Bankruptcy Court; (c) state the
name of the objector and the nature and amount of its Claim
against or Equity Interest in the Debtors; (d) state the nature
of the objection and the legal basis therefore; (e) reference
with specificity the text of the Plan to which the objection is
made; (f) provide proposed language changes or insertions to the
Plan to resolve such objection; and (g) be filed with and
received by the Bankruptcy Court an served upon and received by
the undersigned counsel, together with proof of service, no
later than March 5, 2002 at 4:00 p.m. (Prevailing Eastern Time).

   PLEASE TAKE FURTHER NOTICE THAT the Disclosure Statement and
plan are on file with and may be examined by interested parties
at the Office of the Clerk of the Bankruptcy Court, 824 Market
Street, fifth Floor, Wilmington, Delaware, 19801 during regular
business hours.  In addition, copies may be obtained upon
written request to the Balloting Agent Poorman-Douglas
Corporation, PO Box 4390, Portland, Oregon 97206-4390 (503) 350-
5230 (facsimile).

   PLEASE TAKE FURTHER NOTICE THAT Sections IX.E and IX.F of the
Plan contain provisions that set forth the standard of liability
for various persons and entities in connection with the Chapter
11 Cases.  These provisions will affect all creditors, equity
security holders, and other parties.  In addition, Section V.L
of the Plan contains provisions that will release certain claims
of the Debtors and of all parties claiming through the Debtors
(including derivative actions).  Interested parties are
encouraged to read in their entirety these Plan sections, which
are also summarized in the Disclosure Statement.

   PLEASE TAKE FURTHER NOTICE THAT parties desiring more
information about the solicitation procedures or the contents of
the Plan may contact the undersigned counsel at (213) 251-5268.

                         ISAAC M. PACHULSKI (CAL. 62337),
                         JEFFREY H. DAVIDSON (CAL 73980),
                         K. JOHN SHAFFER (CAL 153729), and
                         MARGRETA M. SUNDELIN (DEL 3873),
                         Members of
                         STUTMAN, TREISTER & GLATT
                         PROFESSIONAL CORPORATION
                         3699 Wilshire Boulevard, Suite 900
                         Los Angeles, California 90010

                         MARK D. COLLINGS (DEL 2981),
                         RUSSELL C. SILBERGLIED (DEL 3462),
                         REBECCA BOOTH (DEL 4031),
                         RICHARDS, LAYTON & FINGER, P.A.
                         One Rodney Square
                         PO Box 551
                         Wilmington, Delaware 19899


MCLEODUSA INC: Taps Houlihan Lokey as Financial Advisor
-------------------------------------------------------
McLeodUSA Inc. asks the Court for an Order to employ Houlihan,
Lokey, Howard & Zukin Capital as its Financial Advisor in this
Chapter 11 case.

Randall Rings, McLeodUSA's Group Vice President, Secretary and
General Counsel, says the Debtor needs Houlihan's broad range of
corporate advisory services, including:

    (i)   general financial advice;

    (ii)  advice regarding capital restructuring and financing
          alternatives; and

    (iii) advice regarding mergers, acquisitions, and
          divestitures.

Mr. Rings tells Judge Katz that (i) Houlihan and its senior
professionals have an excellent reputation for providing high
quality financial advisory services to debtor and creditors in
bankruptcy reorganizations and other debt restructurings, (ii)
Houlihan has extensive knowledge of the Debtor's financial and
business operations, its financial history and the industry in
which it operates and (iii) Houlihan assisted the Debtor in
formulating the restructuring that resulted in the formulation
of the Plan and Disclosure Statement.

Houlihan has participated in many troubled company situations,
including, among others, Paging Network, ICG Communications,
Pathmark, Ameriserve, AEI Resources, United Artists, Northpoint.
This experience strengthens the belief of Debtor that Houlihan
is well qualified to perform the work required of it in its
Chapter 11 case.

Specifically, Houlihan will:

    a. advise the Debtor generally of available capital
       restructuring and financing alternatives, including
       recommendations of specific courses of action and assist
       the Debtor with the design of alternative Transaction
       structures and any debt and equity securities to be
       issued in connection with a Transaction;

    b. assist the Debtor with the development, negotiation and
       implementation of a Transaction, including participation
       as a representative of the Debtor in negotiations with
       creditors and other parties involved in a Transaction;

    c. assist the Debtor in valuing the Debtor and/or, as
       appropriate, valuing the Debtor's assets or operations;
       provided that any real estate or fixed asset appraisals
       needed would be executed by outside appraisers;

    d. provide expert advice and testimony relating to financial
       matters related to a Transaction, including the
       feasibility of any Transaction, the valuation of any
       securities issued in connection with a Transaction, and
       any other matter as to which Houlihan Lokey is rendering
       services hereunder;

    e. generally advise the Debtor as to potential mergers or
       acquisitions, and the sale or other disposition of any of
       the Debtor's assets or business and, in particular,
       advise the Debtor as to the execution of a merger,
       acquisition, sale or other disposition in the context of  
       a reorganization or restructuring of the Debtor's capital
       structure;

    f. advise the Debtor as to any potential financings, either
       debt or equity;

    g. prepare proposals to creditors, employees, shareholders
       and other parties-in-interest in connection with an
       Transaction;

    h. assist the Debtor's management with presentations made to
       the Debtor's board of directors regarding the transaction
       and/or other issues related to the Debtor's contemplated
       reorganization; and

    i. render such other financial advisory and services as may
       be mutually agreed upon by Houlihan Lokey and the Debtor.

On McLeodUSA's behalf, Skadden Arps initially retained Houlihan
on October 19, 2001 under the terms of an Engagement Agreement.
Pursuant to that Engagement Agreement, the Debtor paid Houlihan
$819,967 prior to the Petition Date.

                          Compensation

While in chapter 11, the Debtor agrees to pay Houlihan:

    a. A Monthly Fee of $200,000, due and payable in advance of
       the 19th day of each month;

    b. A Transaction Fee equal to fifty one hundredths of a
       percent (.50%) of the principal amount and all accrued
       interest or accreted principal of the Company Bond
       obligations restructured, modified, amended, compromised
       or forgiven. The Transaction Fee will be reduced by the
       amount of the Monthly Fee paid to and received by
       Houlihan beginning with the fourth Monthly Fee paid to
       and received by Houlihan and each Monthy Fee paid to and
       received by Houlihan thereafter.

Houlihan will also be reimbursed for out-of-pocket expenses
incurred in connection with the engagement, including, but not
limited to, travel and lodging, direct identifiable data
processing and communication charges, courier services and other
necessary expenditures.

                 Disinterested of Professionals

Jonathan B. Cleveland, a Director for Houlihan Lokey Howard &
Zukin Financial Advisors, Inc., attests to his Firm's
disinterestness within the meaning of 11 U.S.C. Sec. 101(14).
(McLeodUSA Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service, Inc., 609/392-0900)  


MEDICALOGIC: Bankruptcy Filing Prompts Nasdaq Delisting
-------------------------------------------------------
MedicaLogic (Nasdaq:MDLIQ), a leading provider of electronic
medical records, announced that it will be delisted from the
Nasdaq National Market effective as of the opening of markets on
February 15, 2002.

The delisting is a result of the Company's recently announced
bankruptcy filing. Under Marketplace Rule 4330(a)(1) and
4450(f), Nasdaq may terminate the inclusion of a security if an
issuer files for protection under any provision of the federal
bankruptcy laws.

MedicaLogic's common stock is currently eligible to trade on the
OTC Bulletin Board electronic quotation system.

MedicaLogic/Medscape, Inc. (MedicaLogic) (Nasdaq:MDLIQ) is a
leading provider of digital health records. The core of
MedicaLogic's product portfolio is the industry-leading Digital
Health Record (DHR). DHR applications and services are an
integral part of the practice of medicine and are used every day
by physicians across the country.

MedicaLogic's DHR enables physicians to access patient
information, share data with existing systems, communicate among
physician practice group members and capture and store
quantifiable data for patient-by-patient or population-based
studies. The DHR also enables practice sites to interact with
their patients electronically to answer questions, schedule
appointments and address personal health concerns. More than 16
million patients now have digital records hosted on MedicaLogic
systems. More information about MedicaLogic's products and
services is available on the Web at http://www.medicalogic.com


NATIONSRENT INC: Committee Retains Bayard Firm as Co-Counsel
------------------------------------------------------------
The Official Committee of Unsecured Creditors asks the Court to
approve its employment and retention of The Bayard Firm as co-
counsel to Lowenstein in NationsRent Inc.'s Chapter 11 cases,
nunc pro tunc to January 4, 2002.

According to Committee chairman James K. Schaeffer, the Bayard
Firm was chosen because of the absence of any conflict of
interest as well as the experience and knowledge of the firm's
attorneys.

The Bayard Firm will render these services:

A. Providing legal advice with respect to the Committee's powers
       and duties;

B. Assisting in the investigation of the Debtors' acts, conduct,
       assets, liabilities and financial condition, the
       operation of the Debtors' business and any other matters
       relevant to these cases or to the formulation of a plan
       of reorganization or liquidation;

C. Preparing, in behalf of the Committee, necessary
       applications, motions, complaints, answers, orders
       agreements and other legal papers;

D. Reviewing, analyzing and responding to all pleadings filed by
       the Debtors and appearing in Court to present necessary
       motion, applications and pleadings and otherwise protect
       the Committee's interests; and

E. Performing all other legal services for the Committee may be
       necessary.

Neil B. Glassman, Esq., a partner at The Bayard Firm, relates
that the firm had made an appearance in behalf of a creditor,
Lloyd Wells Trustee, Lloyd Wells Family Trust, Wells Ceco L.P.,
and related entities to these Chapter 11 cases in connection
with the first day hearings and specifically concerning the
terms and conditions of the proposed financing order. The firm
negotiated revisions to proposed financing order, which were
beneficial to and consistent with the interests of the general
body of unsecured creditors. The Bayard firm also represented
the Lloyd Wells with respect to its appointment to the Committee
but has since been substituted by another counsel.

Mr. Glassman states that aside from reimbursing it for
reasonable out-of-pocket expenses, the Debtors have agreed to
pay these hourly rates to The Bayard Firm:

           Directors         $350 to $440
           Associates        $190 to $300
           Paralegals         $75 to $125
           Assistants         $75 to $125

Mr. Glassman informs the Court that The Bayard Firm has
represented or currently represents creditors in matters
unrelated to these cases, including Bank of America, The Bank of
New York, Citicorp, First Union Bank affiliates First Union
Trust Company N.A. and Delaware Trust Capital Management, Fleet
Capital Corp., General Electric Capital Corp., Heller Financial
Leasing, ICX Corporation, LaSalle National Bank and Textron
Financial. The Firm also represented parties in matters adverse
to The Bank of America, Bank of New York, CIT Group/Commercial
Services Inc., General Electric Capital Corporation and
affiliates and LaSalle National Bank in matters unrelated to
these cases. (NationsRent Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


OPEN PLAN: Royce and Associates Discloses 9.99% Equity Stake
------------------------------------------------------------
Royce and Associates, Inc., located on the Avenue of the
Americas in New York City, beneficially own 433,400 shares of
the common stock of Open Plan Systems Inc. with sole powers to
vote or dispose of the stock. The amount held represents 9.99%
of the outstanding common stock of Open Plan. Royce and
Associates is an investment adviser firm.


PINNACLE ENTERTAINMENT: S&P Ratchets Ratings Down One Notch
-----------------------------------------------------------
Standard & Poor's said it lowered its corporate credit and
senior secured bank loan ratings on Pinnacle Entertainment Inc.
to single-'B' from single-'B'-plus. Standard & Poor's also
lowered its subordinated debt rating on the company to triple-
'C'-plus from single-'B'-minus.

The actions follow Glendale, California-based Pinnacle's lower-
than-expected 2001 operating results, further deterioration of
credit measures, and Standard & Poor's expectation that near-
term debt leverage will remain high on continued competitive
pressures for the owner and operator of casino facilities.

The outlook is negative.

Total debt outstanding is approximately $497 million. "Pinnacle
faces substantial near-term competitive pressures in many
markets it serves," said credit analyst Michael Scerbo. The
company has facilities in Reno, Nev.; New Orleans and Bossier
City, La.; Biloxi, Miss.; and Switzerland County, Ind., and it
operates casino facilities in Argentina.

Pinnacle facilities in southern Indiana, Bossier City, and
Biloxi were negatively affected in 2001 by competitive market
conditions. The declines at these properties overshadowed the
continued solid performance at the company's Boomtown New
Orleans and Boomtown Reno properties. While a lower cost
structure in southern Indiana and expansion in Bossier City
should help to somewhat improve operations at these facilities,
the expansion of Native American gaming in California could
affect Reno.

Mr. Scerbo noted that Pinnacle has adequate near-term liquidity,
but he said that "a planned Lake Charles, La., project could use
much of Pinnacle's financial flexibility, depending upon
financing methods. Failure to improve operating performance and
credit protection measures could result in a further downgrade."


POLYPORE: S&P Assigns B+ Rating to New $160 Million Term Loan
-------------------------------------------------------------
Standard & Poor's assigned its single-'B'-plus rating to
Polypore Inc.'s new $160 million, five-year term loan "C" which
is an add-on to the company's current bank credit facility.
Proceeds from the new term loan are expected to be used to
purchase a German membrane manufacturer.

At the same time, Standard & Poor's affirmed its single-'B'-plus
corporate credit rating on the Burlinton, Massachusetts-based
Polypore, a supplier of battery separators. Total rated debt as
of September 30, 2001, was around $175 million. The outlook is
stable.

"The ratings on Polypore reflect the company's good positions in
small niche markets, combined with an aggressive financial
profile," said Standard & Poor's credit analyst Eric Ballantine.

Polypore's pending transaction will help to improve the
company's market position within the microporous membrane
market, specifically in the hemodialysis and blood oxygen
markets. Upon closing of the transaction, Polypore is expected
to become the number-one worldwide supplier of hemodialysis
membranes. Pro forma sales for the company are expected to be
around $350 million, with operating income in excess of $80
million.

Polypore is the world's leading supplier of lead acid battery
separators used in the manufacture of both automotive and
industrial batteries. Polypore is also the leading supplier of
lithium ion battery separators, which are mainly used in high
tech devices such as cell phones. Additionally, Polypore
continues to focus on specialty separator markets, such as blood
oxygen membranes.

Relatively favorable growth prospects and solid niche market
positions limit downside risk. An aggressive growth appetite,
combined with potential integration challenges and limited
financial flexibility, restrict upside potential.


PSINET INC: Selling Foliofn Securities For $1.5 Million Cash
------------------------------------------------------------
PSINet Inc. and PSINet Strategic Investments, Inc. seek to
liquidate their respective investment securities in Foliofn,
Inc. by sale of such securities back to Folio (or a designated
affiliate) that would fetch them $1,500,000 cash.

Folio, http://www.foliofn.com,is a privately-held Virginia  
corporation, founded in 1998, with its headquarters in Vienna,
Virginia. Folio is in the business of providing online
investment, brokerage and portfolio management services to
individual investors.

Beginning on or about November 12, 1998, PSINet made a series of
investments in, and loans to, Folio. PSINet also provided
services to Folio for equity (in contrast to services for money
payment). PSINet and Folio are also parties to several internet
service and investment agreements. These investments, loans and
services provided by PSINet amount to approximately $21.25
million. In exchange, Folio issued PSINet the Securities. Except
for certain service for equity warrant rights, it appears that
none of the Securities are due and payable or in default. The
Securities represent approximately 18% of the voting power of
the outstanding voting securities of Folio, as of the date of
this Motion.

The value of the Securities has declined since they were
acquired by PSINet and Strategic. The consideration from the
proposed sale is less than the amount of the Debtors' investment
in, loans to and services provided to Folio. Nevertheless, under
the circumstances, the Debtors believe that the Sale provides
the maximum return for the Securities. The Debtors do not
believe that the Securities are likely to appreciate within a
time frame that is practical in light of the Debtors'
reorganization efforts. Moreover, the Sale of the Securities is
part of the Debtors' broader effort, begun last fall, to
liquidate their investment portfolios. With respect to this
transaction, the Committee has been closely involved in the
negotiation of the Purchase Price and supports the Sale, the
Debtors tell the Court.

The parties have entered into a Letter Agreement pursuant to
which Folio will purchase from PSINet and Strategic the
following securities and make the $1,500,000 payment in cash in
return:

Securities                                         Holder
----------                                         ------
10% Senior Secured Subordinated Convertible Note   PSINet Inc.
due 2004, dated November 12, 1998, as amended

10% Senior Secured Subordinated Convertible Note   PSINet Inc.
due 2005, dated August 27, 1999, as amended

6,246,246 shares of FOLIOfn, Inc. Series B         Strategic
Preferred Stock

Warrant No. 1 to Purchase Common Stock of          PSINet Inc.
FolioTrade LLC, dated November 12, 1998

Warrant No. __ to Purchase Common Stock of         PSINet Inc.
Folio Trade LLC, dated August 27, 1999

Warrant No. __ to Purchase Common Stock of         PSINet Inc.  
FOLIOfn, Inc., dated February 29, 2000

Because Folio's ability to seek additional capital is related to
the proposed sale, the closing of the transaction is subject to
Court approval of the Sale on or before February 22, 2002.
However, the parties anticipate exchanging the Securities and
Purchase Price (the Consideration Exchange) and closing into
escrow before approval is granted, but subject to obtaining
approval. After the Consideration Exchange and until the earlier
of (a) Court approval of the Sale and (b) the passage of the
Approval Deadline, PSINet will hold the Purchase Price in escrow
for the benefit of Folio and Folio will hold the Securities in
escrow for the benefit of PSINet and Strategic. If Court
approval is not granted before the Approval Deadline, the
Securities and Purchase Price will be returned. The parties have
agreed that if approval is obtained by the Approval Deadline and
the escrows are released, then the transaction will be deemed
closed as of the date of the Consideration Exchange.

The Debtors submit that the decision to sell the Securities
pursuant to the Letter Agreement is an exercise of their
reasonable business judgment.

The Debtors have attempted to market their investment portfolio
as a whole but the interest receives was low despite extensive
marketing with the assistance of their financial advisors.
Therefore, the Debtors have determined that selling the
Securities independently would maximize the value of that
portfolio. Throughout last fall, the Debtors and/or their
financial advisors approached the issuers of all of the
investment securities and debt instruments the Debtors hold,
plus all additional persons thought to be potential buyers.
Responding to this effort, in December 2001 Folio approached
PSINet about buying back the Securities. Subsequent to that
contact, PSINet and the Committee and their respective financial
advisors investigated the value of the Securities and negotiated
the Purchase Price. These efforts resulted in a 100 percent
increase over the purchase price Folio first offered.

The Debtors submit that the sale price is fair and reasonable
and the transaction was negotiated and proposed in good faith.

The Debtors tell the Court that they examined Folio's business
and financial statements and concluded that the Purchase Price
reflects a reasonable valuation of the Securities. This Purchase
Price is the highest and best offer that the Debtors received
and was subject to higher and better offer before the Debtors
presented the motion on January 30, 2002. The Debtors explain
that because they had conducted a thorough marketing campaign
before presenting the motion, they did not further solicit
prospective buyers, but the proposed sale was subject to bona
fide and higher and better offer.

The Debtors represent that the proposed transaction is eligible
for exemption from Transfer Taxes under Section 1146(c) of the
Bankruptcy Code because the Sale is essential to the
consummation of a plan and therefore should be deemed to be
"under a plan."

Further, the Debtors request that the Court eliminate or reduce
the 10-Day stay under Rule 6004(g) of the Federal Rules of
Bankruptcy Procedure because if the Sale is delayed, there will
be no certainty that the Securities will appreciate above the
Purchase Price (and they might decline).

In presenting the motion, the Debtors request entry of an order
approving the liquidation by PSINet and PSINet Strategic
Investments, Inc. of the securities by selling back to Folio
pursuant to the letter agreement, and request that such order be
issued on or before February 22, 2002. (PSINet Bankruptcy News,
Issue No. 14; Bankruptcy Creditors' Service, Inc., 609/392-0900)   


ROADHOUSE GRILL: Asks Court to Dismiss Involuntary Petition
-----------------------------------------------------------
On February 7, 2002, Roadhouse Grill, Inc. filed a motion for
abstention pursuant to Section 305(a)(1) of the United States
Bankruptcy Code, seeking an order dismissing or suspending all
proceedings under the petition for involuntary bankruptcy of the
Company under Chapter 11 of the United States Bankruptcy Code
which was filed by certain of the Company's creditors with the
United States Bankruptcy Court for the Southern District of
Florida on January 18, 2002.


SOFTWARE LOGISTICS: Synnex Overbids Zomax by $4MM & Wins Assets
---------------------------------------------------------------
Having conducted an open and fair auction, Bradley D. Sharp,
Chapter 11 trustee of Software Logistics Corporation, believes
that the proposed sale of substantially all of the Debtors'
assets to Synnex Information Technologies, Inc. is fair and
reasonable and wants the Court to approve that transaction.

On December, the Trustee signed a letter of intent with Zomax
Incorporated and estimated the total purchase price at
approximately $39 million.  Based upon the fluctuations in the
amount of inventory and the accounts receivable, Zomax's
purchase price is now down to $29.5 million.

Synnex posted a $3.9 million cash deposit, was qualified to
participate, and submitted the highest bid.  The Trustee
calculates that the winning price increases approximately $4.25
million as compared to Zomax's asset purchase agreement.

The Trustee also seeks the Court to overrule omnibus objections
to the Sale Motion filed by Altres Inc., Aspect Communications,
Comerica Bank, Compaq Financial Services Corporation, General
Electric Capital Corporation, Miami RPFIV Airport Corp Center
Associates, SAP America, Spring Branch School District, U.S.
Bancorp-Oliver Allen Technology Leasing, the Unsecured Creditors
Committee and Xerox Corporation. For a complete copy of the
Trustee's report of the auction and omnibus response to
objections, go to
http://www.researcharchives.com/bin/download?id=020210204808

Software Logistics Corporation doing business as iLogistix,
provides supply chain services to leading technology companies,
including procurement, inventory management, assembly,
fulfillment, e-commerce, and distribution services. ILogistix
has operating facilities in the United States, The Netherlands,
Singapore, Taiwan, Mexico, and Brazil.


SPALDING HOLDINGS: S&P Drops Rating to D After Missing Payment
--------------------------------------------------------------
Standard & Poor's lowered its corporate credit rating on
sporting goods manufacturer Spalding Holdings Corp. to 'D' from
double-'C'. Spalding elected not to make its October 1, 2001,
interest payment on its $200 senior subordinated notes.

Additionally, the rating is removed from CreditWatch, where it
was placed May 31, 2001. The rating action affects about $570
million in rated debt.

"On January 28, 2002, Spalding agreed in principle with
noteholders to exchange the subordinated notes for $100 million
in PIK senior notes and about 89% of the shares of common stock
of the company," commented Standard & Poor's credit analyst Ron
Neysmith.

Chicopee, Massachusetts-based Spalding is a leading manufacturer
and licensor of branded consumer products in the global golf and
sporting goods markets.


SUN HEALTHCARE: Reorganized Debtors' Board of Directors
-------------------------------------------------------
On the Effective Date of the Joint Plan of Reorganization, the
executive officers and members of the Board of Directors of Sun
Healthcare Group, Inc. will be:

    Name                              Position
------------                 ----------------------
Richard K. Matros            Chairman of the Board and Chief
                              Executive Officer

Wallace E. Boston, Jr.       Chief Financial Officer

Warren C. Schelling          Senior Vice President of Ancillary
                              Services

Robert F. Murphy             General Counsel and Secretary

Chauncey Hunker              Corporate Compliance Officer

Robert K. Schneider          Vice President and Treasurer

Jennifer Botter              Vice President and Corporate
                              Controller

John F. Nickoll              Director

Sanjay H. Patel              Director

John W. Adams                Director

Charles W. McQueary          Director

Milton J. Walters            Director

Bruce C. Bladeck             Director

Gregory S. Anderson          Director

Steven L. Volla              Director

(Sun Healthcare Bankruptcy News, Issue No. 32; Bankruptcy
Creditors' Service, Inc., 609/392-0900)   


TOWER AUTOMOTIVE: American Express Discloses 5.3% Equity Stake
--------------------------------------------------------------
American Express Financial Corporation beneficially owns
2,535,588 shares of the common stock of Tower Automotive Inc.,
representing 5.3% of the outstanding common stock of Tower. The
financial corporation shares voting power on 537,000 shares and
shares dispositive power over the entire 2,535,588 shares.

American Express Financial Corporation, a Delaware Corporation,
is a parent holding company and is registered as investment
advisor. The relevant subsidiaries and/or advised accounts are:
Investment companies registered under section 8 of the
Investment Company Act of 1940; IDS Life Insurance Company and
American Express Asset Management Group Inc., an investment
advisor registered under section 203 of the Investment Advisors
Act of 1940.

Tower Automotive, Inc., produces a broad range of assemblies and
modules for vehicle structures and suspension systems for the
automotive manufacturers, including Ford, DaimlerChrysler, GM,
Honda, Toyota, Nissan, Fiat, Kia, Hyundai, BMW and Volkswagen.
Products include body structural assemblies such as pillars and
package trays, control arms, suspension links, engine cradles
and full frame assemblies. At September 30, 2001, the company
reported a working capital deficit of $249 million.


TREESOURCE INDUSTRIES: Will Go Private After Bankruptcy Exit
------------------------------------------------------------
TreeSource Industries, Inc. has filed a Form 15 with the SEC to
change its status from a public to a private corporation.  

As a result of the Company's previously announced successful
reorganization as of January 31, 2002, TreeSource Acquisition
Company LLC now owns all of the equity of TreeSource Industries,
Inc.  The Company continues to operate four sawmills in Oregon
and Washington with approximately 500 employees. TreeSource
Acquisition Company LLC ("TAC"), an investor group led by Jim
Schueler, Greg Service, and Harold Mildenberger purchased the
pre-petition secured debt of the Company last year with the
intent of reorganizing TreeSource around a core group of
profitable sawmills.  Prior to TAC's purchase of the pre-
petition secured debt the Company was in the process of selling
all of its assets.

"We are pleased with TreeSource's emergence after languishing
for more than two years in bankruptcy and excited about the
future.  The Company operates some good mills and has great
employees.  Our focus is to continue to build upon the success
that has been achieved at the operating mills and serving our
customers," stated Mr. Service.  He continued, "emerging from
bankruptcy on a solid financial footing is important to
TreeSource's customers, suppliers, employees, and TAC.  
Remaining a public company though at this point does not provide
any benefit as the company is closely held and not publicly
traded."

TreeSource filed for bankruptcy in 1999 due to a high level of
debt, a downturn in lumber prices, and continued operation of
uncompetitive sawmills. In the spring of 2001 the Company placed
itself up for sale in a process of orderly liquidation.  TAC
purchased TreeSource's pre-petition secured debt in July of 2001
with the intention of reorganizing and operating the Company.
Mr. Schueler, a TAC principal, commented "The Company had a
history of operating both competitive and uncompetitive mills
and the uncompetitive mills continually weakened the balance
sheet.  Our strategy is to focus on operating proven facilities
with a de-leveraged balance sheet and serving our customers."


WHX CORPORATION: Using Wheeling Downs Sale Proceeds To Cut Debts
----------------------------------------------------------------
WHX Corporation (NYSE: WHX) announced that it had applied
certain net proceeds from the sale of its interest in the
Wheeling Downs Racetrack to a reduction of a subsidiary's
indebtedness and the purchase of certain of its 10-1/2% Senior
Notes in the open market.  This application satisfies the use of
proceeds provisions for the 90 day period following an asset
sale contained in the Indenture governing its 10-1/2% Senior
Notes.

WHX is a holding company that has been structured to invest in
and/or acquire a diverse group of businesses on a decentralized
basis.  WHX's primary businesses currently are: Handy & Harman,
a diversified manufacturing company whose strategic business
segments encompass, among others, specialty wire, tubing, and
fasteners, and precious metals plating and fabrication; and
Unimast Incorporated, a leading manufacturer of steel framing,
vinyl trim and other products for commercial and residential
construction.  WHX's other business consists of the WPC Group, a
vertically integrated manufacturer of value-added and flat
rolled steel products, which filed a petition for relief under
Chapter 11 of the Bankruptcy Code on November 16, 2000.


WILLIAMS CONTROLS: David S. Eberly Joins Board of Directors
-----------------------------------------------------------
The Board of Directors of Williams Controls, Inc. has elected
David S. Eberly to the Board, effective January 24, 2002. Mr.
Eberly is a managing Director and co-founder of GMA Capital, a
private equity and investment banking firm representing a
variety of key suppliers in the automotive and truck markets.
Mr. Eberly has a wide range of experience in corporate
acquisitions, divestitures, joint ventures and private
financings, and is a founding shareholder and was a member of
the Board of Directors of European Gateway Acquisition Corp.
Eberly, 38, graduated from Miami University (Ohio) in 1985 with
a B.S. in Finance and Management.

Williams Controls' biggest business is making electronic
throttles, exhaust brakes, and pneumatic controls for trucks and
other heavy equipment. Other operations include microcircuits,
cable assemblies (Aptek Williams), and global positioning
systems (GeoFocus -- which Williams Controls is selling). The
company also makes plastic parts (Premier Plastic Technologies,
which is being sold) and compressed natural gas conversion kits
for cars (NESC Williams). Major customers include Freightliner,
Navistar, and Volvo. At June 30, 2001, the company had an
upside-down balance sheet showing a total shareholders' equity
deficit of about $8 million.


XO COMMS: Posts Lower EBITDA Losses in 2001 Fourth Quarter
----------------------------------------------------------
XO Communications, Inc. (OTCBB:XOXO), announced financial
results for the quarter and year ended December 31, 2001.

Total revenue grew to $343.0 million in the fourth quarter of
2001, a 36 percent increase over revenue reported in the fourth
quarter of 2000. Annual revenue for 2001 increased 74 percent to
$1,258.6 million compared to $723.8 million in 2000. Of the
total revenue reported in the fourth quarter of 2001, $166.5
million was derived from voice services revenue, including
revenue from local, long distance voice and other enhanced voice
services, and $152.8 million was attributable to data services,
which includes Internet access, network access, and web hosting.

Fourth quarter 2001 revenue from integrated voice and data
service totaled $23.5 million and other revenue for the fourth
quarter of 2001 was $0.2 million.

EBITDA loss totaled $39.5 million in the fourth quarter of 2001,
compared to an EBITDA loss of $53.5 million in the third quarter
of 2001, and an $88.7 million EBITDA loss in the fourth quarter
of 2000. The company's annual EBITDA loss in 2001 totaled $240.8
million compared to an EBITDA loss of $309.4 million in 2000.

Voice Grade Equivalents (VGE, 64 Kpbs capacity), a measure used
by XO to evaluate the utilization of its network, grew to 21.2
million in the fourth quarter of 2001, a 13 percent increase
from the third quarter of 2001 and a 89 percent increase from
the fourth quarter of 2000.

On January 16, 2002, XO announced that it had entered into a
definitive agreement with Forstmann Little & Co. and Telefonos
de Mexico S.A. de C.V. (TELMEX) on the terms of their intention
to invest $400 million each in XO in exchange for new equity in
the company, originally announced on November 29, 2001.

The agreement is subject to a number of conditions, including XO
successfully completing a restructuring of its existing balance
sheet on terms set forth in the definitive agreement with
Forstmann Little and TELMEX, and receipt of regulatory
approvals.

Upon completion of the proposed investment and the related
restructuring, it is expected that substantially all of the
equity of the restructured company other than the equity
allocated to the company's employees will be held by Forstmann
Little, TELMEX and the holders of the company's senior unsecured
notes.

Consequently, current holders of the company's equity securities
are expected to lose all of the value of their investment as a
result of the restructuring.

On January 16, 2002, XO also announced that it had reached a
forbearance agreement with the lenders under its secured credit
facility in which the lenders have agreed, subject to certain
conditions, not to exercise their remedies under the credit
facility with respect to certain cross default events and to the
covenant in the credit facility relating to XO's fourth quarter
minimum revenues.

The agreement contemplates that the lenders' forbearance will
continue until April 15, 2002 in order to provide the company
with an opportunity to reach agreement with its creditors
regarding the terms of the proposed balance sheet restructuring.

XO Communications is one of the nation's fastest growing
providers of broadband communications services offering a
complete set of communications services, including: local and
long distance voice, Internet access, Virtual Private Networking
(VPN), Ethernet, Wavelength, Web Hosting and Integrated voice
and data services.

XO has assembled an unrivaled set of facilities-based broadband
networks and Tier One Internet peering relationships in the
United States. XO currently offers facilities-based broadband
communications services in 63 markets throughout the United
States.

The Company is also one of North America's largest holders of
fixed broadband wireless spectrum, with licenses covering 95
percent of the population of the 30 largest U.S. cities.

DebtTraders reports that XO Communications Inc.'s 10.750% bonds
due 2009 (XOXO7) are trading between 13.5 and 15. See
http://www.debttraders.com/price.cfm?DT_SEC_TICKER=xoxo7for  
real-time bond pricing.


* PENTA Advisory Services Hires Claybrook to Lead New DE Office
---------------------------------------------------------------
Navigant Consulting, Inc. (NYSE: NCI) said that its PENTA
Advisory Services (PENTA) business unit has opened a new office
in Wilmington, Delaware, and has hired Montague S. Claybrook to
head the office.  Mr. Claybrook, a Chapter 7 Panel Trustee in
the U.S. Bankruptcy Courts in the District of Delaware
(Wilmington) and the Eastern District of Pennsylvania
(Philadelphia), specializes in providing bankruptcy and
restructuring accounting and consulting services to businesses
in reorganization, the legal community, creditors committees and
trustees. Mr. Claybrook has more than 20 years accounting and
financial consulting experience, including Big 5 accounting and
auditing experience, in the areas of insolvency, fraud
investigations and litigation support services.

Prior to joining PENTA, Mr. Claybrook managed the Wilmington,
Delaware office of a regional accounting and consulting firm
where he served troubled and bankrupt clients.  Prior thereto,
he founded and directed his own firm that specialized in
bankruptcy and litigation consulting engagements.  Mr. Claybrook
earned his Masters degree from the Lutheran Theological Seminary
at Philadelphia and his BS degree from Cheyney University of
Pennsylvania.  He is a Certified Public Accountant.

According to Mr. Claybrook: "PENTA comprises a talented group of
professionals who specialize in providing assistance to clients
in troubled situations.  I am looking forward to the ability to
call upon the full resources of the Navigant Consulting
organization to assemble management consultants, banking
professionals, accountants and professionals in litigation
consulting, taxation and valuation with experience in virtually
every industry.  The depth of that experience, coupled with
Navigant's network of over 40 offices across the United States,
will enable me to maximize successful outcomes for my clients,
their lenders and other stakeholders."

Charles Goldstein, the Director in charge of PENTA's
Restructuring and Insolvency Services practice, stated: "PENTA
is a leading provider of accounting and financial consulting
services to troubled companies and companies in bankruptcy, or
their creditors.  The bankruptcy court in Wilmington, Delaware
represents the district where more major bankruptcies are filed
than any other court in the United States.

By combining PENTA's significant troubled company consulting
experience with the opening of a Wilmington office and the
addition of Monty Claybrook, an experienced bankruptcy trustee,
PENTA has enhanced the professional services it will provide to
both debtors and creditors."

Mr. Claybrook will be leading the new PENTA office in
Wilmington, Delaware.  Currently, Mr. Claybrook is representing
a creditors' committee of a nursing home, has been retained by
counsel for several defendants in a preference and fraudulent
transfer action, and is serving as the Chapter 7 Trustee in
numerous Delaware and Pennsylvania bankruptcy matters.  Mr.
Claybrook can be reached at (302) 661-1600.

Navigant Consulting, Inc. - http://www.navigantconsulting.com-   
is a globally focused management consulting firm providing
consulting services to Fortune 500 companies, government
agencies, law firms, and regulated and network industries.  The
Company is comprised of two business units -- Financial & Claims
and Energy & Water.  The Financial & Claims unit, consisting of
Peterson Consulting, The Barrington Consulting Group, Chambers
Associates, Inc., and PENTA Advisory Services, provides
consultation to clients facing the challenges of litigation,
bankruptcy, claims, regulation and change in analyzing complex
accounting, finance, economic, engineering, system and
information management and retrieval, outsourcing and technology
issues.  The Energy & Water practice provides consulting
services to the energy and electric, gas, and water utility
industries, focusing on M&A/divestiture financial advisory
services, IT strategies, reliability regulatory and optimization
reviews, electric generation and transmission assessments,
including energy market assessments, and energy regulatory-
related litigation support.  "Navigant" is a service mark of
Navigant International, Inc.  Navigant Consulting, Inc. (NCI) is
not affiliated, associated, or in any way connected with
Navigant International, Inc. and NCI's use of "Navigant" is made
under license from Navigant International, Inc.


* BOND PRICING: For the week of February 18 - 22, 2002
------------------------------------------------------
Following are indicated prices for selected issues:

Amresco 9 7/8 '05              25 - 27(f)
AMR 9 '12                      93 - 94
Asia Pulp & Paper 11 3/4 '05   24 - 27(f)
Bethlehem Steel 10 3/8 '03     13 - 16(f)
Chiquita 9 5/8 '04             87 - 89(f)
Enron 9 5/8 '03                12 - 14(f)
Global Crossing 9 1/8 '04       3 - 4(f)
Level III 9 1/8 '04            36 - 38
Kmart 9 3/8 '06                42 - 44(f)
McLeod 11 3/8 '09              22 - 24(f)
NWA 8.70 '07                   87 - 89
Owens Corning 7 1/2 '05        38 - 40(f)
Revlon 8 5/8 '08               40 - 42
Royal Caribbean 7 1/4 '06      84 - 86
Trump AC 11 1/4 '06            66 - 68
USG 9 1/4 '01                  84 - 86(f)
Westpoint 7 3/4 '05            28 - 31
Xerox 5 1/4 '03                91 - 92

                           *********


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.

Bond pricing, appearing in each Thursday's edition of the TCR,
is provided by DebtTraders in New York. DebtTraders is a
specialist in global high yield securities, providing clients
unparalleled services in the identification, assessment, and
sourcing of attractive high yield debt investments. For more
information on institutional services, contact Scott Johnson at
1-212-247-5300. To view our research and find out about private
client accounts, contact Peter Fitzpatrick at 1-212-247-3800.
Real-time pricing available at http://www.debttraders.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. Yvonne L. Metzler, Bernadette
de Roda, Aileen Quijano and Peter A. Chapman, Editors.

Copyright 2002.  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 240/629-3300.


                  *** End of Transmission ***