TCR_Public/020226.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

           Tuesday, February 26, 2001, Vol. 6, No. 40

                           Headlines

ALLIS-CHALMERS: Board Approves New Series of Preferred Stock
AMERICAN ENERGY: Hires Chisholm & Associates As New Accountants
AMF BOWLING: Seeks Approval Of Tax Return Filing Agreement
ANC RENTAL: Moves For Sanctions Against Hertz And Avis
ASHFORD.COM: Violates Nasdaq's Minimum Bid Price Requirement

ASSET SECURITIZATION: Fitch Puts Low-B Ratings On Watch Negative
BURLINGTON INDUSTRIES: Wants To Assume Carpet Co-op License Pact
CHIQUITA BRANDS: Reorganized Debtor's Value Pegged At $1.28B
COMDISCO INC: Paying Due Diligence Fees To Exit Lenders
CYBERCASH: Crawford Acquires Commission Junction Stake For $2.3M

EEX CORPORATION: Talking To Lenders To Amend Debt Covenants
ENRON CORPORATION: Energy Merchants Want Separate Committee
ENRON CANADA: Role in Hydro Privatization Deal Questioned
GALEY & LORD: Seeking Court Nod to Maintain Severance Program
GALEY & LORD: Court Okays Altman's Employment as Balloting Agent

GETGO INC: Receives Delisting Notice From Nasdaq
GLOBAL CROSSING: Employs Swidler Berlin As Special Counsel
GLOBAL CROSSING: Offers US Workers Voluntary Separation Package
GLOBALSTAR L.P.: Obtains Approval of All "First Day Motions"
HALLIBURTON: Court Extends Stay on Asbestos Claims Through Apr 4

IMP INC: Negotiates With Lenders To Cure Debt Defaults
IMPERIAL SUGAR: Suspended Nasdaq Trading To Resume Today
IMPSAT FIBER: Misses $20.6MM Interest Payment On Senior Notes
INT'L TOTAL: Agrees To Provide Direct Pre-Board Screening To FAA
IT GROUP: Courts Extends Schedule Filing Deadline to March 22

KAISER ALUMINUM: Obtains Authority to Pay Customer Obligations
KELLSTROM INDUSTRIES: Seeks Nod to Keep Cash Management System
KEY ENERGY: S&P Rates Proposed $100MM Sr. Unsecured Notes At BB-
KMART CORPORATION: Proposes Vendor Return Program
KMART CORPORATION: Retaining Ernst & Young As Financial Advisor

LAIDLAW INC: Executives' Equity Stakes And Compensation
LODGIAN INC: Engages Arthur Andersen As Accountants
LTV STEEL: Hourly Retiree Benefits to End March 31
MATLACK SYSTEMS: Wants To Stretch Removal Period Through Apr. 12
MCLEODUSA: Seeks Okay To Retain Ordinary Course Professionals

MUTUAL RISK: Fitch Junks Convertible Subordinated Debt Rating
MUTUAL RISK: S&P Cuts Credit Ratings To Lower-B Levels
NEWCOR INC: Files for Chapter 11 Reorganization in Wilmington
NEWCOR INC: Case Summary & 20 Largest Unsecured Creditors
NEWPOWER HOLDINGS: Auditors Doubt Going Concern Ability

NEWPOWER HOLDINGS: Centrica to Acquire Company for $130 Million
NEWPOWER HOLDINGS: Falls Short Of NYSE's Listing Standards
NII HOLDINGS: Argentina Subsidiaries Fail To Make $8.3MM Payment
OPTICAL DATACOM: Committee Taps Parente Randolph as Accountants
OPTIO SOFTWARE: Fails To Comply With Nasdaq's Minimum Bid Rule

PANTRY INC.: S&P Lowers Corporate Credit Rating To B+ From BB-
PENN NATIONAL: S&P Rates Senior Subordinated Notes At B-
PENN NAT'L: Enters Into Purchase Deal With Merrill Lynch, et al.
POLYMER GROUP: Restructuring Talks With Lenders Continue
PRECISION SPECIALTY: Has Until May 14, 2002 to Decide on Leases

PSINET INC: Enters Into Settlement Agreement With The Ravens
RECREATION USA: Falls Short of Nasdaq's Listing Requirements
ROYAL PRECISION: Shares Trade On OTCBB After Nasdaq Delisting
SKYNET TELEMATICS: Commences Voluntary Liquidation Proceedings
STARTEC GLOBAL: Trustee Appoints Unsecured Creditors Committee

STATIA TERMINALS: Shareholders Approve Sale of Assets To Kaneb
SUNSHINE MINING: Needs More Funds To Continue Operations
SUPREMA SPECIALTIES: Case Summary & Largest Unsecured Creditors
SWEET FACTORY: Court Fixes Claims Bar Date on April 1, 2002
SWEET FACTORY: Committee Taps BDO Seidman as Financial Advisors

TALK AMERICA: Commences Exchange Offer for Convertible Sub Notes
VIATEL INC.: Court Extends Exclusive Period Through March 30

* Claims Resolution Launches New Asbestos e-Claims Service


                           *********

ALLIS-CHALMERS: Board Approves New Series of Preferred Stock
------------------------------------------------------------
Allis-Chalmers Corporation, a corporation organized and existing
under the General Corporation Law of the State of Delaware,
reports the adoption of a resolution by the Board of Directors
of the Company to create a series of preferred stock, par value
$.01 per share.

Under the authority granted to and vested in the Board of
Directors of the Company in accordance with the provisions of
the Restated Certificate of Incorporation of the Company, the
Board of Directors has created this series of preferred stock.
The shares of the series will be designated as the "Series A 10%
Cumulative Convertible Preferred Stock, par value $0.01 per
share and the number of shares constituting the series will be
4,200,000. The number of shares may be increased from time to
time by resolution of the Board of Directors to the extent
dividends on the Series A Preferred Stock are paid in shares of
Series A Preferred Stock or may be decreased from time to time
by resolution of the Board of Directors; provided, however, that
the number may not be decreased below the number of then
currently outstanding shares of Series A Preferred Stock.


AMERICAN ENERGY: Hires Chisholm & Associates As New Accountants
---------------------------------------------------------------
On February 14, 2002, The American Energy Group, Ltd. dismissed
HJ & Associates LLC as its independent public accountants. The
Company has engaged Chisholm & Associates, PC as its new
independent public accountants. The decision to change the
Company's accounting firm was recommended and approved by the
Company's Board of Directors.

The report of HJ on the financial statements of the Company for
each of the past three fiscal years ended June 30, 1999, 2000
and 2001 contained the report of HJ as to the uncertainty
related to the Company's ability to continue as a going concern.


AMF BOWLING: Seeks Approval Of Tax Return Filing Agreement
----------------------------------------------------------
AMF Bowling Worldwide, Inc. seeks the Court's approval of a Tax
Return Filing Agreement between AMF Bowling Inc. and AMF Group
Holdings Inc.

Currently, Dion W. Hayes, Esq., at McGuireWoods LLP in Richmond,
Virginia, relates that AMF Bowling Inc. is the common parent of
an affiliated group of corporations that files consolidated tax
returns for purposes of United States federal income taxes while
AMF Group Holdings Inc. and AMF Bowling Worldwide, Inc., are
currently members of the Affiliated Group. Under the terms of
the Debtors' Plan, Holdings will be dissolved and will no longer
exist as a legal entity while it is contemplated that the
Parent's bankruptcy case will result in the dissolution of the
Parent, and, like Holdings, will no longer exist as a legal
entity. As a result, the most senior corporate entity in the
Affiliated Group that is expected to survive the Parent's and
the Debtors' bankruptcy cases is Worldwide. In contemplation of
this result, the Parent, Holdings and Worldwide desire that
Worldwide assume the obligations of filing the consolidated
federal income tax returns on behalf of the Affiliated Group for
any tax year in which Worldwide is or was a member of the
Affiliated Group.

According to Mr. Hayes, on December 18, 2001, the Debtors and
the Parent entered into a Tax Return Filing Agreement which
provides for Worldwide's assumption of the obligation to file a
consolidated federal income tax return on behalf of the
Affiliated Group. On December 21, 2001, the Debtors filed their
Stipulation, Motion and Order Authorizing Debtors to Enter into
Tax Return Filing Agreement.

Following execution of the Agreement, Mr. Hayes states that the
Debtors and the Parent agreed to terms for a revised Tax Return
Filing Agreement and signed a revised agreement. The purpose of
the revisions to the Agreement is to make clear that Worldwide
shall assume the obligations to file a consolidated federal
income tax return on behalf of the Affiliated Group except for
any tax year of the Affiliated Group that begins after Worldwide
is no longer a member of the Affiliated Group and to make clear
that the Revised Agreement is conditioned only on approval of
the Bankruptcy Court.

Mr. Hayes believes that entry into the Revised Agreement is in
the Debtors' best business judgment. If the Parent dissolves as
contemplated, there will be no legally authorized entity to file
a consolidated federal income tax return on behalf of the
Affiliated Group. Since Holdings will also be dissolved, the
Parent and the Debtors agree that as long as Worldwide remains a
member of the Affiliated Group, Worldwide is in the best
position to file a consolidated federal income tax return on
behalf of the Affiliated Group. Thus, Mr. Hayes concludes that
the Revised Agreement, which will transfer the obligation to
file a consolidated federal income tax return on behalf of the
Affiliated Group to Worldwide for those tax years in which
Worldwide is or was a member of the Affiliated Group, is a
sensible, logical solution to the problem posed by the Parent
and Holdings' potential dissolution and should therefore, be
approved. (AMF Bankruptcy News, Issue No. 17; Bankruptcy
Creditors' Service, Inc., 609/392-0900)   


ANC RENTAL: Moves For Sanctions Against Hertz And Avis
------------------------------------------------------
ANC Rental Corporation asks the Court to impose sanctions on
Hertz Corporation and Avis Rent-A-Car System for willful
violations of the automatic stay and impose a Temporary
Restraining Order on them. In addition, the Debtors ask the
Court to enforce its order on the Debtors' motion on the Alamo
Lease and Alamo concession agreement and cite Hertz and Avis in
contempt.

Bonnie Glantz Fatell, Esq., at Blank Rome Comisky & McCauley LLP
in Wilmington, Delaware, tells Judge Walrath that after she
approved ANC's motion to reject the Alamo Lease and Alamo
Concession Agreement on January 25, 2002, both Hertz and Avis
modified their respective complaints for injunctive relief
pending in the Kentucky District Court against the Kentucky
Airport Board and added requests that directly violated the
Bankruptcy Court's Order. Hertz and Avis then proceeded with an
emergency hearing on their motions where both companies argued
that the Board should be enjoined from permitting ANC to operate
on a consolidated basis at the Cincinnati Airport.

Although the two parties were unsuccessful in convincing the
district court to issue a temporary restraining order
prohibiting the Board from allowing the consolidation of the
Debtors' operations at the airport, they were able to convince
the district court to preserve the status quo and disallowed the
Board from executing the concession agreements with the Debtors.
"Of course, Judge Bertelsman's Order does not affect the
assumption and assignment of the Cincinnati agreement, but one
can be confident that Hertz and Avis will continue to challenge
that issue in subsequent pleadings and hearings in the Kentucky
Court," Ms. Fatell says of Hertz and Avis' action.

Hertz and Avis are acting as if they are above the law and the
Orders of the Court and not only do their actions directly
violate the Court's Order, they also blatantly ignore the most
fundamental tenet of the Bankruptcy Code's automatic stay.
"Unquestionably, Hertz and Avis are attempting to collaterally
attack the Court's Order. They are in violation of the automatic
stay and they should be sanctioned under Section 362(h) and held
in contempt of this Court's Order," Ms. Fatell adds.

Ms. Fatell narrates that by their own admission at the January
25 hearing, Hertz and Avis continues to contact 50 to 60
airports throughout the country and threatened them with
lawsuits if they cooperate with the Debtors in their
consolidation program. The tacit message in the letter,
according to her, is that either the airports side with Hertz
and oppose the Debtors or be faced with litigation just like the
Kenton County Board. These are acts that directly interfere with
the Debtor's property rights by attempting to exercise control
over the Debtors' contractual relationships with the airports.

Ms. Fatell suggests that Hertz and Avis are engaged in
continuing violations of the automatic stay in that they have
collaterally attacked this Court's Order by proceeding in the
Kentucky District Court with their amended complaints that seek
to undo the Bankruptcy Court's Order.  They also continue to
interfere with the Debtors' existing and prospective contract
rights.

Ms. Fatell points out that the actions of Hertz and Avis in the
Kentucky District Court fall squarely within the elements of
civil contempt. The Debtors will suffer irreparable harm if the
request for Temporary Restraining Order, preventing Hertz and
Avis from continuing their well-planned campaign to interfere
with the Debtors' contract rights at airports throughout the
country, is denied.

"The nationwide campaign of Hertz and Avis to interfere with the
Debtors' contractual relationships with airports is a blatant
attempt to undermine the reorganization of these Debtor
companies and prevent ANC from emerging from bankruptcy as a
viable competitor. To a debtor-in-possession, there can be no
greater irreparable harm," Ms. Fatell states. No harm will
befall on Hertz and Avis, meanwhile, if the Temporary
Restraining Order is granted. Hertz and Avis remain financially
healthy, viable entities, operating throughout the country as
car rental companies. Together they represent the majority share
of the on-airport car rental industry.

"It is undoubtedly in the public interest to grant the
injunctive relief requested because of the overriding interest
in facilitating the Debtors' reorganization under Chapter 11.
The public policy underlying the Bankruptcy Code is to provide a
debtor with a fresh start," Ms. Fatell states. (ANC Rental
Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


ASHFORD.COM: Violates Nasdaq's Minimum Bid Price Requirement
------------------------------------------------------------
Ashford.com (Nasdaq: ASFD), a leading e-commerce destination
offering luxury goods to individuals and corporate clients,
announced it has received a letter from the Nasdaq National
Market indicating that the company no longer complies with the
$1.00 minimum bid price requirement stated in Marketplace Rule
4450 (a)(5).

Ashford.com has until May 15, 2002, ninety calendar days, to
regain compliance with this rule, which would require the
company's stock to achieve a bid price of $1.00 or more for a
minimum of 10 consecutive days during that period.  If
Ashford.com fails to meet this requirement, it will become
subject to delisting from the Nasdaq National Market, at which
time the company can appeal the delisting to a Nasdaq Listing
Qualifications Panel.

A special meeting of the stockholders of Ashford.com will be
held at 9:00 a.m. on March 14, 2002.  At the special meeting,
stockholders will be asked to approve the merger agreement among
Ashford.com, Global Sports, Inc. and Ruby Acquisition Corp., a
wholly owned subsidiary of Global Sports, Inc. Assuming that the
stockholders of Ashford.com approve the transaction at the
meeting, Global Sports, Inc. and Ashford.com expect to close the
acquisition promptly after the meeting.

Additional Information and Where to Find It:

Investors and security holders of Ashford.com are urged to read
the Registration Statement and Prospectus/Proxy Statement
carefully.  The Registration Statement and the Prospectus/Proxy
Statement will contain important information about Global
Sports, Ashford.com, the acquisition and related matters.  
Investors and security holders may obtain free copies of these
documents through the Web site maintained by the U.S. Securities
and Exchange Commission at http://www.sec.gov  

Free copies of the Prospectus/Proxy Statement and these other
documents may also be obtained from Ashford.com by directing a
request through the Ashford.com Web site at
http://www.ashford.com or by mail to Ashford.com at  
Ashford.com, Inc., Attention: Investor Relations Department,
3800 Buffalo Speedway, Suite 400, Houston, TX 77098.

Interests of Certain Persons in the Acquisition:

The directors and executive officers of Global Sports and
Ashford.com have interests in the acquisition, some of which may
differ from, or may be in addition to, those of Ashford.com's
stockholders generally.  A description of the interests that
Global Sports' and Ashford.com's directors and executive
officers have in the acquisition is contained in the
Prospectus/Proxy Statement.

Solicitation of Proxies:

Ashford.com, its directors, executive officers and certain other
members of Ashford.com's management and employees may be
soliciting proxies from Ashford.com's stockholders in favor of
the acquisition.  The directors and officers of Global Sports
may be deemed to be participants in Ashford.com's solicitation
of proxies.  Information concerning the participants is set
forth in the Prospectus/Proxy Statement.

                     About Ashford.com

Ashford.com is the leading e-commerce destination for corporate
and personal gifts and rewards.  The company's two e-commerce
sites, www.ashford.com and www.ashfordcorporategifts.com , offer
12,000 attractive gifts and rewards, including watches, jewelry,
fragrances, leather accessories, diamonds, sunglasses, and
writing instruments from 300 leading brands.  Dedicated to
creating an exceptional luxury shopping experience, Ashford.com
provides overnight shipping on nearly all items, gift packaging,
and a 30-day money-back guarantee on all merchandise.  In
addition, the company also guarantees customer privacy and site
security.  Ashford.com is headquartered in Houston, Texas.


ASSET SECURITIZATION: Fitch Puts Low-B Ratings On Watch Negative
----------------------------------------------------------------
Asset Securitization Corporation's commercial mortgage pass-
through certificates, series 1996-MD VI $35.8 million class B-1
and $1,000 class B-1H, both currently rated 'BB-', are placed on
Rating Watch Negative by Fitch Ratings. In addition, the $44.8
million class A-4 certificates are affirmed at 'A'; the $22.4
million class A-5 at 'A-'; the $49.2 million class A-6 at 'BBB';
and the $71.6 million class A-7 at 'BBB-'. The $31.6 million
class A-1A, $333.5 million class A-1B, $172.0 million class A-
1C, $35.8 million class A-2, $35.8 million class A-3 and the
interest only classes CS-1, CS-2 and CS-3 are not rated by
Fitch. The rating actions follow Fitch's annual review of the
transaction, which closed in December of 1996.

Fitch Ratings placed classes B-1 and B-1H on Rating Watch
Negative because it is concerned with the continued
deterioration in the operating performance of the Horizon II and
Prime Retail II properties and the outlook of the properties
securing the Columbia Sussex II loan. Together, these three
loans make up 67% of the transaction's unpaid principal balance.
The properties securing these three loans experienced
significant year-to-year declines in operating performance.
Fitch will make a determination as to the status of classes B-1
and B-1H once year-end 2001 operating performance is available.
Fitch will also rely on the sales trends for the properties in
the Horizon II and Prime Retail II loans.

The certificates are collateralized by five mortgage loans on 37
assets. The properties consist of 20 factory outlet centers (53%
by principal balance), 16 hotels (43%), and one mixed-use
development (4%). As of the January 2002 distribution date, the
pool's aggregate certificate balance has decreased by 7.0%, to
$832.5 million from $895.2 million at closing.

As part of its review, Fitch analyzed the performance of each
loan. The overall pool performance is on a downward trend. The
weighted-average (WA) Fitch stressed debt service coverage ratio
(DSCR) for the trailing 12 months (TTM) ended 9/30/01 decreased
to 1.95 times from 2.10x for the TTM ended 9/30/00. Despite the
year-to-year decline, the latest WA DSCR was still ahead of the
Fitch-underwritten WA DSCR of 1.69x at closing.

The Horizon loan, representing 12% of the pool, is
Collateralized by five factory outlets, which are located in
three states. Adjusted NCF for TTM 9/30/01 has declined by 6%
from TTM 9/30/00 and 21% from the Fitch-underwritten at
origination. The corresponding stressed DSCR, based on a 10.09%
hypothetical mortgage constant, is at 1.26x compared to 1.33x
for the prior year and 1.56x at closing. Average occupancy, at
91%, is down slightly from 94% for the previous year. Fitch
Ratings was not able to obtain updated sales information at the
time of the review. With the exception of the Chesapeake Village
property, the four remaining properties securing the loan have
been experiencing steady year-to-year declines in net operating
income since 1998.

Prime Retail II is the largest loan, representing 41% of the
pool. The loan is currently collateralized by 15 factory outlets
concentrated in nine states. Adjusted net cash flow (NCF) for
TTM 9/30/01 has declined by 8% from TTM 9/30/00 but still shows
an increase of 7% from the Fitch-underwritten NCF at
origination. The corresponding stressed DSCR, based on a 10.09%
hypothetical mortgage constant, is at 1.65x compared to 1.77x
for the prior year and 1.66x at closing. Note, the lower current
stressed DSCR compared to that at origination is the result of a
larger current unpaid principal balance compared to that at
origination. At origination, the loan had an outstanding
principal balance of $318.7 million, as of 9/30/01, the amount
outstanding was $343.6 million. This increase is due to the
drawing of the $40.0 million expansion escrow. The expansion
escrow was drawn on during 1998 and 1999, at those times, the
stressed DSCRs, including the effect of the additional
principal, where higher than the stressed DSCR at origination.
Average occupancy has declined slightly to 88% as of 9/30/01
from 91% for the prior year. Fitch Ratings was not able to
obtain updated sales information at the time of the review. The
declining performance generally reflects increased competition.

The Columbia Sussex II loan -- representing 14% of the pool --
is collateralized by 12 full-service hotels concentrated in
eight states. Fitch's adjusted NCF for TTM 9/30/01 declined by
23% from TTM 9/30/00 but is still 25% ahead of the Fitch-
underwritten NCF at origination. The stressed DSCR, using a
10.48% constant, is at 2.23x compared to 2.82x for the prior
year and 1.60x at closing. RevPAR for the TTM 9/30/01 was 16%
lower than the prior year. Weak year-to-year performance was
mainly attributed to weak corporate demand in 2001. This was
exacerbated by the events of Sept. 11.

The MHP II loan, representing 29% of the pool, is collateralized
by four full-service hotels, which are located in three states.
Adjusted TTM 9/01 NCF declined 4% from TTM 9/30/00 but is still
24% ahead of the Fitch-underwritten NCF at origination. The
stressed DSCR, using a 10.48% constant, is at 2.45x, compared to
2.48x for the prior year and 1.80 at closing. Revenue per
available room (RevPAR) for the TTM 8/30/01 was 21% lower than
the prior year. The slight year-to-year decline in performance
was attributed to weak customer demand for the two Northern
California properties. One property in particular, the Santa
Clara, CA, property experienced a 28% year-to-year drop in NOI.
This property saw its occupancy drop to 50% from 78% during the
prior year and its RevPar drop to $79 from $135 during the prior
year.

The Palmer Square loan, representing 4% of the aggregate pool's
principal balance, is secured by a mortgage encumbering parcels
of land and six buildings comprising a full service hotel, three
mixed-use office and retail buildings, and two parking
facilities. The development is located in Princeton, New Jersey.
The adjusted NCF for TTM 9/30/01 declined 5% from TTM 9/30/00
but is still 33% ahead of the Fitch-underwritten NCF at
origination. Fitch's stressed DSCR, based on a hypothetical
9.80% mortgage constant, is at 2.56x compared to 2.64x for the
prior year and 1.79x at closing. The hotel portion's TTM 9/30/01
RevPAR, at $97, was flat with the prior year. Occupancy remains
strong for the retail and office portions at 99% and 100%,
respectively, as of 9/30/01.

Fitch Ratings will review this transaction when year-end 2001
operating information and sales information for the two outlet
shopping center loans is available. Contact: Eduardo Hernandez
1-212-908-0721 or Ray Garafola 1-212-908-0694, New York.


BURLINGTON INDUSTRIES: Wants To Assume Carpet Co-op License Pact
----------------------------------------------------------------
Burlington Industries, Inc. seeks the Court's authority to
assume a Trademark License Agreement with Carpet Co-op of
America Association, also known as Carpet One.

The Debtors license certain trademarks to:

     -- Carpet One;
     -- certain of Carpet One's subsidiaries and affiliates; and
     -- Carpet One's Members.

Under the License Agreement, Daniel J. DeFranceschi, Esq., at
Richards, Layton & Finger, in Wilmington, Delaware, explains,
the Licensees are permitted to:

     (i) use the Licensed Trademarks to brand specified types of
         residential carpet that are manufactured for and sold
         by the Licensees; and

    (ii) hold themselves and certain affiliates out as
         authorized dealers of the brands that comprise the
         Licensed Trademarks.

Mr. DeFranceschi further states that the term of the Trademark
Agreement has yet to expire on February 28, 2009 with scheduled
royalties under the remaining term of the agreement totaling
approximately $4,950,000.

"The Trademark Agreement is an integral part of the Debtors'
restructuring efforts and will provide a steady stream of
revenue," Mr. DeFranceschi asserts.

Carpet One has expressed concern about expending funds while the
Trademark Agreement remains subject to rejection. Accordingly,
Mr. DeFranceschi assures Carpet One that the assumption of the
Trademark Agreement at this time is warranted. (Burlington
Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service,
Inc., 609/392-0900)   


CHIQUITA BRANDS: Reorganized Debtor's Value Pegged At $1.28B
------------------------------------------------------------
In conjunction with the allocation of distributions under the
Plan, Chiquita Brands International, Inc. determined that it was
necessary to estimate post-confirmation reorganization values of
the equity of Reorganized Debtor to provide for equitable
distribution among Classes of Claims and Equity Interests.
Accordingly, Chiquita Brands International Senior Vice-President
Robert W. Olson relates that The Blackstone Group -- as the
Debtor's financial advisor -- was tasked to prepare a valuation
analysis of Reorganized Debtor.

In order to assess the value of Reorganized Debtor --
specifically the reorganization value of the New Common Stock to
be distributed under the Plan -- Mr. Olson informs the Court
that the Debtor and Blackstone developed a set of financial
projections. In addition, the Debtor and Blackstone have
developed a recovery analysis describing the estimated
recoveries to Holders of certain Allowed Claims and Allowed
Equity Interests.

Mr. Olson assures the Court that the Projections were prepared
in good faith based on estimates and hypothetical assumptions
made by the Debtor's management. These include, but are not
limited to estimates and assumptions with respect to:

    (a) product sales volume and pricing by market,

    (b) product sourcing,

    (c) foreign exchange rates,

    (d) production costs,

    (e) logistics costs, and

    (f) capital spending and working capital levels.

Mr. Olson adds that the Projections were developed in March 2001
in connection with negotiations with the Pre-petition Noteholder
Committees and subsequently updated in May 2001 to reflect
estimated cost reductions expected to result from the reform of
the EU banana import regime.

Although the Debtor has not prepared a full, five-year update of
the EBITDA projection, Chiquita believes that, as a result of
current business, economic, competitive, regulatory, market and
financial conditions, EBITDA before reorganization costs, fresh
start adjustments, and other unusual items for 2001 may be in
the range of $155,000,000 to $165,000,000.

Mr. Olson also explains that Blackstone used two methodologies
to derive the reorganization value of Debtor based on the
Projections:

    (a) the application of public market valuation multiples to
        Debtor's historical and projected financial results --
        the Comparable Analysis, and

    (b) a calculation of the present value of the free cash
        flows under the Projections, including an assumption for
        a terminal value -- the DCF Analysis.

The Comparable Analysis involves identifying a group of publicly
traded companies whose businesses or product lines are
comparable to those of Debtor as a whole or significant portions
of Debtor's operations, and then calculating ratios of various
financial results to the public market values of these
companies. The ranges of ratios derived are then applied to
Debtor's historical and projected financial results to derive an
implied reorganization value of Reorganized Debtor.

On the other hand, the DCF Analysis involves deriving the
unlevered free cash flows that Debtor would generate assuming
the Projections were realized. These cash flows and an estimated
value of the Company at the end of the projected period were
discounted to December 31, 2001 at Debtor's estimated post-
restructuring weighted average cost of capital to determine the
reorganization value of Reorganized Debtor at that date.

Based upon these methods, Blackstone concludes that the
estimated reorganization value for Reorganized Debtor is
approximately $1,280,000,000. After deducting from Reorganized
Debtor's reorganization value the estimated long-term
indebtedness of Reorganized Debtor at the hypothetical Effective
Date of December 31, 2001, Blackstone reports that the total
equity value of the Reorganized Debtor is approximately
$617,000,000, consisting of:

      (i) $250,000,000 of New Notes and

     (ii) an estimated $413,000,000 of net subsidiary debt.

To derive the reorganization value of the New Common Stock, Mr.
Olson explains, the estimated value of the New Warrants is
deducted.  Using the Black-Scholes option pricing method, Debtor
has estimated the value of the new Securities will be:

     Security Type        Total Value         Value per share
     -------------        -----------         ---------------
     New Warrants         $41,000,000            $3.10

     New Common Stock    $576,000,000           $14.39
     (40,000,000)

According to Mr. Olson, the Debtor shall continue to exist as
Reorganized Debtor after the Effective Date as a separate
corporate entity, with all the powers of a corporation and
without prejudice to any right to alter or terminate such
existence under applicable state law. (Chiquita Bankruptcy News,
Issue No. 6; Bankruptcy Creditors' Service, Inc., 609/392-0900)   

DebtTraders reports that Chiquita Brands' 10.250% bonds due
November 1, 2006 (CQB4) are trading between 86 and 87.5. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=CQB4for  
real-time bond pricing


COMDISCO INC: Paying Due Diligence Fees To Exit Lenders
-------------------------------------------------------
Comdisco, Inc. sought and obtained the Court's authority to pay
certain due diligence fees and expenses, including work fees
cost and expenses incurred by auditors and appraisers, legal
expenses and filing and search fees in connection with potential
exit financing.

George N. Panagakis, Esq., at Skadden, Arps, Slate, Meagher &
Flom, in Chicago Illinois, tells Judge Barliant that the Debtors
have recently concluded the evaluative sale process of their
Leasing business. Mr. Panagakis reports that the Debtors have
decided not to sell the 3 segments - IT Leasing, Healthcare and
Telecommunications. However, Mr. Panagakis says, the Debtors are
continuing to evaluate whether to wind-down these segments or
reorganize around them. Accordingly, Mr. Panagakis relates that
the Debtors must determine on what terms financing would be
available to the reorganized businesses.

Mr. Panagakis informs the Court that the Debtors have contacted
several financial institutions to determine the terms these
financial institutions would provide. So far, Mr. Panagakis
notes, several financial institutions have expressed their
interest in providing the financing pending the result of their
due diligence with respect to the Debtors' Leasing portfolio.
However, Mr. Pangakis explains that these financial institutions
will not conduct the necessary due diligence unless the Debtors
agree to reimburse them for the reasonable fees and expenses
incurred during the process.

The Debtors contend that reimbursing these financial
institutions for their reasonable fees and expenses incurred in
conducting due diligence regarding potential financing is
appropriate.

Mr. Panagakis asserts that understanding the terms on which
financing will be available for their reorganized businesses is
important in evaluating this potential strategic alternative of
retaining the remaining segments of the Leasing business.
(Comdisco Bankruptcy News, Issue No. 21; Bankruptcy Creditors'
Service, Inc., 609/392-0900)   


CYBERCASH: Crawford Acquires Commission Junction Stake For $2.3M
----------------------------------------------------------------
On January 25, 2002, CYCH, Inc., f.k.a. CyberCash, Inc.
consummated the sale of its investment in Commission Junction,
Inc. to Crawford Capital Partners, LLC and The Marcellus P.
Knoblach Revocable Trust pursuant to a securities purchase
agreement dated December 18, 2001 between CYCH and the
purchasers. In re: CYCH, Inc., f.k.a. CyberCash, Inc., et al,
Case No. 01-0622 (MFW) (Bankr. D. Del.) March 2, 2001.

Pursuant to the CJI Purchase Agreement, CYCH sold (1) 939,791
shares of common stock of CJI and (2)the right to subscribe for
and purchase up to 20,000 shares of Series A Preferred Stock of
CJI pursuant to a certain Series A Preferred Stock Warrant
Agreement dated October 12, 2000. Purchasers paid $2,349,477.50,
or $2.50 per share, in cash pursuant to the CJI Purchase
Agreement. The Purchase Price was held in escrow until February
7, 2002.


EEX CORPORATION: Talking To Lenders To Amend Debt Covenants
-----------------------------------------------------------
EEX Corporation (NYSE:EEX) reported preliminary results of a
$168 million loss for the fourth quarter ending December 31,
2001, compared to net income of $6 million for the same period a
year ago. For the year ended December 31, 2001, EEX reported
preliminary results of a net loss of $160 million compared to a
net loss of $10 million in 2000. The results are subject to
completion of the annual audit.

Year-end onshore U.S. reserves, including minority interest,
reviewed by EEX's independent reserve auditors, were
approximately 417 billion cubic feet of natural gas equivalent
("Bcfe"), an increase of 12% over year-end 2000. Reserve
additions of 111 Bcfe and downward revisions of 13 Bcfe due to
lower product prices, compared to 2001 production of 46 Bcfe,
represents a replacement rate of 213%. The Company invested a
total of approximately $109 million onshore U.S. during the year
resulting in a finding and development cost of $1.11/Mcfe.

Results without unusual items were a loss of $8 million for the
fourth quarter and $5 million for 2001.

In the fourth quarter, the Company's Cooper Floating Production
System ("FPS") and pipelines were written down to a fair market
valuation based on competitive factors for processing and
transportation facilities in the Llano area and the values
management believes could be received in an orderly sale of the
assets. Certain onshore U.S. oil and gas properties were
impaired a total of $29 million of which $23 million was
attributable to the production payment resulting from the
Encogen obligation. The Company's Indonesian assets were
impaired to reflect the bid of a potential purchaser with whom
the Company is currently negotiating. The fourth quarter results
also include a loss on sale of $18 million from the January
exercise of a previously described option to repurchase a
portion of the production payment resulting from the Encogen
obligation and a reduction in the net realizable value of the
deferred tax asset in accordance with FAS 109. The Company
realized an extraordinary post-tax gain from the repurchase of a
portion of the notes related to the FPS and pipelines.

Revenues for the fourth quarter were $47 million or
approximately 36% lower than the $73 million reported for the
fourth quarter a year ago. Lower revenues were primarily the
result of lower average oil and natural gas prices and lower
volumes of natural gas related to the offshore shelf properties
sold in December 2000. Total expenses for the quarter, excluding
loss from asset sales and impairments, were $54 million in 2001,
unchanged from 2000. A $3 million bad debt expense was offset by
lower depreciation expenses related primarily to lower overall
production volumes.

Revenues for the year 2001 were $207 million or approximately
21% lower than the $262 million reported for 2000. Lower
revenues this year were primarily the result of lower natural
gas and oil production due to the sale of the offshore shelf
properties and lower average oil prices. Total expenses for
2001, excluding the gain from asset sales and impairments, were
$193 million, compared to $204 million for the twelve months of
2000. Lower depreciation expenses related primarily to lower
overall production volumes were partially offset by increased
exploration expense due to costs associated with the stacking of
the Arctic I rig and recognition of the net cost associated with
the assignment of the Arctic I rig contract and increased taxes
other than income. Excluding the bad debt expense recorded in
the fourth quarter, general, administrative and other expenses
were down approximately 18% for the year.

At year-end, the Company's debt to capital ratio under its
revolving credit agreement is greater than the agreement's limit
of 60% because of the decrease in equity resulting from the
above-described losses and increases in outstanding borrowings.
The lenders have agreed to amend the loan agreement to increase
the ratio to 72% and waive the covenant breach; the amendment
and waiver will expire April 30, 2002. The current revolving
credit agreement terminates June 27, 2002. If the Company is not
able to effect a new credit agreement or obtain additional
waivers, it will be in default under the current revolving
credit agreement. The Company is negotiating with its lenders
for a new credit agreement with a maturity of June 2003. At
present, most of the lenders have approved the general terms of
the new agreement that will require the Company to provide a
security interest in all of its U.S. proved reserves and other
assets.

The Company's planned capital expenditures in 2002 are
approximately $50 million. Actual capital expenditures will
depend on cash flow, which, in turn, depends principally on
realized natural gas prices during the year.

EEX Corporation is an oil and natural gas exploration and
production company with activities currently focused in Texas,
Louisiana, the Gulf of Mexico and Indonesia.

For additional information, call 1-888-EEX-NEWS, or visit our
Web site at http://www.eex.com


ENRON CORPORATION: Energy Merchants Want Separate Committee
-----------------------------------------------------------
An Ad Hoc Committee of Energy Merchants tells the Court that it
formed to protect the interests of certain creditors on Enron
Corporation's energy trading business in the absence of any
official body having undivided loyalties.  And that Ad Hoc
Committee asks the Court to direct the United States Trustee for
the Southern District of New York to appoint an additional
committee comprised of energy merchants that are creditors of
the Debtors, which are engaged in the trading business.

John S. Willems, Esq., at White & Case LLP, in New York, tells
the Court that fundamental and irreconcilable conflicts of
interest have emerged between the estates of the Debtors that
are engaged in the commodity and financial product trading
business and the estates of the other Debtors, including in
particular, Enron Corporation:

-- The Debtors that conduct the Trading Business have been, and
    continue to be, the Debtors' primary source of cash flow,
    and hold substantial separate assets, including:

    (a) the "book" of complex and diverse trading contracts
        relating to:

          (i) the physical delivery or receipt of various fuel
              and energy-related commodities, and

         (ii) hundreds of different financial derivatives
              hereof, which are used by the energy trading
              community to hedge or "cover" risk, and

    (b) the physical assets, intellectual property and personnel
        that comprise and operate the Trading Business.

    Within the year before the Petition Date, the Trading
    Business generated $90,000,000,000 in revenues and
    $3,000,000,000 in gross margin.

-- In contrast, the other Debtors, which are burdened with the
    vast majority of Enron's overall debt, have little or no
    positive cash flow, and are short on assets (other than
    equity interests in other debtor and non-debtor entities).

    During the 12-month period immediately preceding the
    Petition Date, the other Debtors produced only
    $10,000,000,000 in revenues, and generated as yet
    unquantified losses.

-- The creditors of the Trading Debtors are largely separate and
    distinct from the creditors of the other Debtors.

    The Trading Debtors' creditor population comprised of
    $4,000,000,000 to $5,000,000,000 in debt financing and about
    $8,000,000,000 in trading liabilities.  The other Enron
    Debtors have over $30,000,000,000 in debt, substantially all
    of which is held by financial institutions.  Although
    creditors the Trading Debtors generally have guarantees from
    Enron Corporation, the creditors of Enron Corporation and
    the other Debtors do not have any right to recovery from the
    Trading Debtors.

-- Despite these circumstances, a single committee has been
    appointed in these large and complex cases, comprised
    predominantly of creditors of the other Debtors.

-- The Debtors have taken actions to:

    (a) invade the liquidity of the Trading Debtors, and

    (b) dispose of the Trading Desk.

-- As a consequence of the Debtors' actions:

    (a) the assets of the Trading Debtors are now burdened with
        blanket liens,

    (b) hundreds of millions of dollars of Trading Debtors cash
        flow have been consumed by the other Debtors, and

    (c) the Trading Desk has been sold on terms that:

          (i) sacrifice a modest return to the Trading Debtors'
              estates in apparent hopes of hitting a "home run"
              that will provide a recovery to other Debtors, and

         (ii) will likely impair the value of the Trading Book.

-- These actions have been taken without meaningful consultation
    with, or advance disclosure to, the creditors of the Trading
    Debtors.

-- The Official Committee has supported the Debtors' actions,
    including the exclusion of the Trading Debtors' creditors
    from participating in the process.

    Of the 15-member Official Creditors' Committee, 11 are
    institutional creditors who hold debt that is unsecured and
    largely isolated at the Debtors' parent, Enron Corporation.

-- These events have caused creditors of the Trading Debtors to
    believe that the Official Committee suffers from divided
    loyalties and is not adequately representing the interests
    of the Trading Debtors' creditors.

-- As a consequence, creditors of the Trading Debtors have been
    forced to take up litigation and defense of their interests
    -- frequently, if not always, opposed by both the Debtors
    and the Official Committee -- and at their own expense
    (which has been substantial because of the Debtors' refusal
    to cooperate even in the disclosure of relevant
    information).

Thus, Mr. Willems asserts, a single committee in these cases,
regardless of composition, cannot possibly serve as a fiduciary
with undivided loyalty to the inherently conflicting interests
of the creditors of the Trading Debtors and the creditors of the
other Debtors.  "Simply put, what is good for one constituency
is bad for the other," Mr. Willems says.

Furthermore, Mr. Willems points out that the sheer size and
complexity of these cases alone make it impracticable for a
single committee, regardless of its composition, to adequately
represent the Debtors' conflicting creditor constituencies.

Moreover, Mr. Willems informs Judge Gonzalez that the Energy
Merchants are experts in a highly complex industry on the
cutting edge of technical and financial creativity, an expertise
that is lacking a meaningful voice on the Official Committee.

The Ad Hoc Committee already anticipates that the Debtors and
the Official Committee will stand together complaining that the
additional committee will add undue administrative costs to the
estates.  But Mr. Willems argues that any such asserting will be
the epitome of hypocrisy since both the Debtors and the Official
Committee have already sought to retain numerous law firms and
financial advisors -- who are among the most expensive
professionals in the country.  "The Court should not listen to
such whining," Mr. Willems suggests.

To level the playing field, the Ad Hoc Committee insists that a
separate committee of Energy Merchants that are creditors of the
Trading Debtors should be appointed. (Enron Bankruptcy News,
Issue No. 14; Bankruptcy Creditors' Service, Inc., 609/392-0900)


ENRON CANADA: Role in Hydro Privatization Deal Questioned
---------------------------------------------------------
Howard Hampton is demanding the government immediately disclose
the full extent of its dealings with Enron and the influence the
company may have peddled in developing the Conservatives' 'dirty
deal' of Ontario hydro privatization.

"Enron had an influential role in shaping the government's
privatized, deregulated electricity program and also gave more
than $15,000 to the Conservative Party and Energy Minister Jim
Wilson while helping the government write the rules," Hampton
said. "Did Enron influence Ontario policy the way they
influenced Bush and Cheney? I think the Conservative dirty deal
of hydro privatization just got dirtier."

Hampton called on Premier Mike Harris to disclose every contact
he, his cabinet ministers and the Ontario Energy Board (OEB)
have had with Enron, the only non-Canadian representative on the
handpicked advisory groups, and a questionable selection in the
NDP Leader's view.

Aleck Dadson, former Director of Government Affairs for Enron
Capital & Trade Resources Canada Corp., sat on key government
committees charged with designing the rules and framework of the
Tories' hydro privatization scheme.

Enron had a seat on the board of the Independent Market
Operator, the Market Design Committee and the IMO's Technical
Panel. At the same time, Enron was giving money to the Tories.

Enron Canada gave $500 to Wilson's Simcoe-Grey riding in 1999.
Dadson personally donated $195 in 1998. Azurix, an Enron
subsidiary, donated $675 to the Tory by-election fund in Parry
Sound-Muskoka, the riding of former finance minister Ernie Eves.
Enron's various donations to the Conservatives jumped to $7,500
in 2001 from $6,205 in 1999 and $621.94 in 1997. Enron Capital
also donated $800 to the Ontario Liberals in 1999.

Dadson is on the Ontario Lobbyist Registry as an Enron lobbyist
to the Ministry of Energy Science and Technology, the Minister
of Finance, The Premier's Office, Cabinet Office and the Ontario
Energy Board on policies and decisions relating to the
restructuring of the Ontario electricity markets and its
implementation. He left Enron about a year ago.

"Ontario consumers need to know that the same Enron corporation
that was the spiritual leader behind the disastrous deregulation
and privatization of electricity in places like California, the
same Enron that gouged its consumers, investors and workers
alike in the United States, the same Enron that is now
destroying documents and trying to avoid accountability before
the U.S. Senate has a very cozy relationship with the Ontario
Conservative government and took part throughout the scheme to
sell-off and deregulate Ontario's electricity system," Hampton
said.


GALEY & LORD: Seeking Court Nod to Maintain Severance Program
-------------------------------------------------------------
Galey & Lord, Inc., together with its debtor-affiliates, seek
authority from the U.S. Bankruptcy Court for the Southern
District of New York to maintain their Severance Programs and to
pay their post-petition severance obligations when they come due
including the continued payment of their severance obligations
to those employees who were terminated before the Petition Date.

The Debtors believe that paying these Severance Obligations is a
sound exercise of management's reasoned business judgment. This
act, the Debtors assert, will achieve a sound business purpose,
and will aid in the Debtors' reorganization efforts.

Payment of the Severance Obligations is necessary to maintain
employee confidence, loyalty, and morale and to demonstrate the
Debtors' commitment to all of their employees and programs, the
Debtors point out. The detrimental effect on the Debtors'
relationships with their employees and the erosion of employee
morale and confidence could have a negative impact on the
Debtors' on-going operations.

The Debtors also believe that paying the relatively small
amounts due under the Severance Plans would cost the Debtors
less than not making such payments, which may lead to further
unnecessary and costly litigation. The individual benefit
amounts that are presently due are relatively small, the highest
being $54,000, and the majority being under $15,000.  The
Debtors estimate their post-petition obligations under the
Severance Programs for employees terminated pre-petition will
approximate $986,000 to a total of 72 former employees.  The
estimated monthly post-petition payments to these employees will
be $142,000 in February, $225,000 in March, $185,000 in April,
$142,000 in May, $116,000 in June, and an aggregate of
approximately $177,000 from June 2002 to October 2002.

G&L, a leading global manufacturer of textiles for sportswear,
including cotton casuals, denim, and corduroy, and is a major
international manufacturer of workwear fabrics, filed for
chapter 11 protection on February 19, 2002 together with its
affiliates. Joel H. Levitin, Esq., Henry P. Baer, Jr., Esq.,
Anna C. Palazzolo, Esq. at Dechert represent the Debtors in
their restructuring efforts. When the Company filed for
protection from its creditors, it listed $694,362,000 in total
assets and $715,093,000 in total debts.


GALEY & LORD: Court Okays Altman's Employment as Balloting Agent
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approves the application of Galey & Lord, Inc., and its debtor-
affiliates to retain and employ The Altman Group, Inc. as notice
and balloting agent in these chapter 11 cases.

The Debtors are convinced that the Office of the Clerk is not
equipped to serve notice efficiently and effectively on
approximately 25,800 creditors and potential creditors and the
most efficient way is to employ a third party to act as agent of
the Court.

At the request of the Debtors or the Clerk's Office, the
professional services that the Debtors anticipate that Altman
will perform are:

    (a) mail a commencement of case notice to all creditors,
        security holders, and other interested parties,
        undertake the placement of notice advertisements,
        complete notice mailings to groups of claimants, and
        forward notices to beneficial owners of debt and
        equity securities, as required;

    (b) provide assistance to the Debtors and their counsel  
        regarding all aspects of a vote on any plan of
        reorganization, including timing issues, voting and
        tabulation procedures, and documents needed for the
        vote;

    (c) review the voting portions of any related disclosure
        statement and ballots, particularly as they may relate
        to beneficial owners of holders of the Debtors'
        securities;

    (d) work with the Debtors to request appropriate
        information from the trustee for the Notes, the
        transfer agent, and The Depository Trust Company;

    (e) mail any voting documents to creditors and the
        registered record holders of securities;

    (f) coordinate the distribution of any voting and/or non-
        voting documents to street name holders of securities
        by forwarding the appropriate documents to the banks
        and brokerage firms holding the securities (or their
        agents);

    (g) distribute any copies of the master ballots to
        appropriate banks and brokerage firms (or their agent)
        so that firms may cast votes on behalf of beneficial
        owners of securities;

    (h) prepare a certificate of service for filing with the
        Court, if necessary;

    (i) handle any requests for voting documents from any party
        who requests them, including brokerage firms and bank
        back-offices, institutional holders, and any other
        party who may have an interest in the matter;

    (j) respond to telephone inquiries from creditors and
        holders of securities regarding administrative matters
        relating to any disclosure statement, plan, and
        corresponding voting procedures;

    (k) if requested to do so, make telephone calls to a
        defined group of creditors or interest holders to
        confirm that they have received any plan documents and
        to respond to any questions they may have about the
        administration of voting procedures;

    (l) if requested to do so, assist with an effort to
        identify beneficial owners of any Note;

    (m) receive and examine any ballots and master ballots cast
        by creditors and Note holders and date and time-stamp
        the originals of all such ballots and master ballots
        upon receipt; and

    (n) tabulate any ballots and master ballots received prior
        to a voting deadline in accordance with established
        procedures, and prepare a vote certification for filing
        with the Court.

G&L, a leading global manufacturer of textiles for sportswear,
including cotton casuals, denim, and corduroy, and is a major
international manufacturer of workwear fabrics, filed for
chapter 11 protection on February 19, 2002 together with its
affiliates. Joel H. Levitin, Esq., Henry P. Baer, Jr., Esq.,
Anna C. Palazzolo, Esq. at Dechert represent the Debtors in
their restructuring efforts. When the Company filed for
protection from its creditors, it listed $694,362,000 in total
assets and $715,093,000 in total debts.


GETGO INC: Receives Delisting Notice From Nasdaq
------------------------------------------------
GETGO Inc., formerly GETGO Mail.com Inc. (Nasdaq:GTGO),
announced that it has received a Nasdaq Staff Determination
indicating that the Company fails to meet the $2,000,000 minimum
net tangible assets or the minimum $2,500,000 stockholders'
equity requirements for continued listing set forth in Market
Place Rule 4310c(2)(B) and that the Company's common stock is,
therefore, subject to delisting from The Nasdaq Small Cap Market
at the opening of business on February 25, 2002.

The Nasdaq Staff Determination also cited the Company's failure
to hold an annual shareholders meeting for the year ended
December 31, 2000, as required by Market Place Rules 4350(e) and
4350(g) and an additional reason for delisting. The Company has
requested a hearing before the Nasdaq Listing Qualifications
Panel to review the Staff's determination. There can be no
assurance that the Panel will grant the Company's request for
continued listing. The Company's request for a hearing with the
Panel will stay the delisting of the Company's common stock
pending the Panel's decision.

The hearing with Nasdaq is expected to occur within 45 days of
the Company's request, but could occur later. At the hearing,
GETGO hopes to show that it will be able to comply with the
minimum net tangible assets and minimum stockholders' equity
requirements of the Market Place Rules. If Nasdaq denies the
Company's appeal, shares of the Company's common stock may be
traded on the Over-the-Counter Bulletin Board (OTCBB).

For more information on GETGO or any of its subsidiaries, please
log on to http://www.getgocorp.comor contact Kristin Johnston  
at 303/771-3850 or kjohnston@getgocorp.com.


GLOBAL CROSSING: Employs Swidler Berlin As Special Counsel
----------------------------------------------------------
Global Crossing Ltd. seeks to employ and retain Swidler Berlin
Shereff Friedman, LLP as their special regulatory counsel
pursuant to sections 327(e) and 328(a) of the Bankruptcy
Code.

Mitchell C. Sussis, the Debtors' Corporate Secretary, explains
that as a telecommunications provider, the Debtors are subject
to supervision and regulation by federal and state
telecommunications regulators in the United States and foreign
telecommunications regulators. A bankruptcy filing will require
an ongoing review and analysis of such rules and regulations and
therefore, the Debtors will need counsel well versed in the
federal and state regulatory laws of the United States.

The Debtors seek to retain Swidler to:

A. advise them as to telecommunications regulatory requirements
       arising from a filing under the Bankruptcy Code;

B. represent the Debtors as needed before telecommunications
       regulatory agencies;

C. advise the Debtors on telecommunications regulatory issues
       involved with sales of assets or transfer of control by
       the Debtors, if required, and the Debtors' reorganization
       plan, including making any required regulatory filings,
       seeking required regulatory approvals, ensuring continued
       ability of the Debtors and, if applicable, purchasers, to
       obtain telecommunications services from unrelated
       telecommunications vendors, and any other activities
       required to implement the asset sales and/or
       reorganization plan or to consummate any transactions
       contemplated thereby; and

D. any other necessary legal services and advice related to the
       matters described above.

Since November 1998, Mr. Sussis submits that Swidler and certain
of its members and associates have rendered legal services to
the Debtors in connection with various matters. Swidler's
services have primarily related to counseling the Debtors on
state, federal, and international telecommunications regulatory
issues arising from the Debtors' construction, installation,
operation and acquisition of telecommunications networks and
their provision of telecommunications services, as well as
related corporate, tax structuring, and transactional matters.
Swidler has also represented Asia Global Crossing Ltd. and its
affiliates and subsidiaries on telecommunications regulatory and
related matters since that company's formation.

As a consequence of the breadth of its representation of the
Debtors for the past 4 years, Mr. Sussis contends that Swidler
is intimately familiar with the complex legal issues that have
arisen and are likely to arise in connection with the Debtors'
business and operations, their restructuring, and their  
strategic and transactional goals. The Debtors believe that both
the interruption and the duplicative cost involved in obtaining
substitute counsel to replace Swidler's unique role at this
juncture would be extremely harmful to the Debtors and their
estates and creditors. Were the Debtors required to retain
counsel other than Swidler in connection with the specific and
limited matters upon which Swidler's advice is sought, the
Debtors, their estates and all parties in interest would be
unduly prejudiced by the time and expense necessary to replicate
Swidler's ready familiarity with the intricacies of the Debtors'
business operations, corporate and capital structure, and
strategic prospects.

The Debtors submit that Swidler is well qualified and uniquely
able to provide the specialized advice sought by the Debtors on
a going forward basis. Mr. Sussis claims that Swidler's
telecommunications practice group is widely recognized for its
telecommunications regulatory expertise. Swidler handles matters
in virtually every aspect of telecommunications law, including
local, long distance and international telephone common
carriage; Internet services and technologies; conventional and
emerging wireless services; satellite services; broadcasting;
competitive video services; and telecommunications equipment
manufacturing and other high technology applications. The firm
counsels telecommunications and technology clients in
transactional, securities, international, litigation,
legislative and land use issues. The firm's practice includes
advising clients on matters related to their operations at the
U.S. federal level, all 50 states, U.S. territories, and many
international markets. Mr. Sussis adds that Swidler also has
represented numerous U.S. telecommunications carriers in
reorganization and liquidation proceedings. Therefore, given
Swidler's familiarity with the Debtors' business and operations
and Swidler's expertise in the telecommunications field, the
Debtors believe Swidler will be an efficient provider of legal
services with respect to matters of regulatory law.

Andrew D. Lipman, a member of the firm of Swidler Berlin Shereff
Friedman LLP, assures the Court that the firm do not represent
or hold any interest adverse to the Debtors and their estates
with respect to the matters on which Swidler is to be retained
in these cases and have no connection to the Debtors, the
Debtors' creditors or any other party in interest, or their
respective attorneys and accountants, the United States Trustee,
or any person employed in the Office of the United States
Trustee that would affect Swidler's ability to represent the
Debtors in these cases. The firm, however, has current or
previous engagements in unrelated matters with several parties-
in-interests in these cases including:

A. Professionals: The Pacific Capital Group, Simpson, Thacher &
       Bartlett.

B. Strategic Partners: Nortel Networks, Exodus Communications,
       Lucent Technologies.

C. Claimants: Exodus Communications, Inc., Qwest Communications
       Corporation, 360networks Inc., Citizens Communications
       Company, Ericsson UK, Level (3) Communications, LLC, MCI
       WorldCom Network Services, Inc., Net2000 Communications,
       RCI Long Distance, Southern California Edison.

D. Potential Adverse Parties: ABN Amro Bank N.V., Alliance,
       Capital Management, American Express Asset Management,
       Bank of America, Bank of Hawaii, Bank of New York,
       Barclays, Bennett Management, BHF, CIBC Oppenheimer,
       Citibank, City National Bank, Credit Lyonnais, Credit
       Suisse Asset Management, First Union, Fleet BankBoston,
       Deutsche Bank, General Electric Capital Corporation,
       Goldman Sachs & Co., Banque Indosuez, ING Capital
       Advisors, Invesco, JP Morgan Chase, Merrill Lynch Asset
       Management, Merrill Lynch, Morgan Stanley Dean Witter,
       Oppenheimer Funds, Textron Financial Corporation, UBS
       Warburg, Banc One, Chase Manhattan Bank, Credit Suisse
       First Boston, American Express, Avaya, Anixter, Bestel Sa
       De Cv, Comsat, Equant, Exodus Internet Limited, Gts
       Carrier Services, Impsat S.A., Kajima, KPN, KPN Qwest,
       Lucent Technologies, Nortel Networks, Pacific Century
       Cyberworks, Reach Networks Hong Kong Limited, Siemens,
       Telia, Impsat Comunicacaoes LTDA, and Impsat Peru S.A.

D. Underwriters: Deutsche Bank AG, CIBC Inc., Canadian Imperial
       Bank of Commerce, Goldman Sachs Credit Partners L.P.,
       Citicorp USA, Inc., Merrill Lynch Capital Corporation,
       Salomon Smith Barney, Inc., CIBC World Markets Corp.,
       Deutsche Bank Securities, Inc., and Chase Securities,
       Inc.

E. Major Stockholders: Pacific Capital Group, Inc., and Gary
       Winnick.

Subject to Court approval under section 330(a) of the Bankruptcy
Code, Mr. Lipman relates that compensation will be payable to
Swidler on an hourly basis, plus reimbursement of actual,
necessary expenses and other charges incurred by Swidler. The
hourly rates charged by Swidler's attorneys that are currently
expected to work on this matter are:

      Partners             $325-$425
      Attorneys            $150-$325
      Legal Assistants     $110-$150

The partners, counsel, associates, and staff attorneys currently
expected to work on these matters are:

      Andrew Lipman           $425/hour
      Jean Kiddoo             $400/hour
      Helen Disenhaus         $380/hour
      Troy Tanner             $320/hour
      Paul Gagnier            $300/hour
      Jeanne Stockman         $260/hour
      Michael Donahue         $245/hour
      Raquel Bierzwinsky      $175/hour

In the past 12 months, Mr. Lipman informs the Court that the
Debtors paid Swidler approximately $650,000 for pre-petition
services. Swidler also is holding $150,000 as a retainer for
post-petition services to be rendered to the Debtors and for
post-petition expenses to be incurred for such services.

The Debtors' seek approval of the Application on an interim
basis in order to provide parties an opportunity to object to
the relief requested herein. If the Court approves the
Application, and no objections are timely filed, the Debtors'
request that the Application be deemed granted on a final basis
without further notice or hearing.

                               * * *

Judge Gerber entered an interim order approving Swidler's
employment, with objections due by February 22, 2002 and a
hearing on March 1, 2002. If no objections are filed, Judge
Gerber orders that this interim order shall be deemed a final
order. (Global Crossing Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


GLOBAL CROSSING: Offers US Workers Voluntary Separation Package
---------------------------------------------------------------
Global Crossing announced a program that offers incentives to
employees based in the United States who voluntarily leave the
company's payroll as part of an overall expense reduction
effort.  Employees who volunteer to leave and are accepted into
the program will receive a cash payment based on their salary
grade and length of service, as well as a period of continued
benefits.

The company said the total number of people who leave under the
program would be determined by the needs of individual groups
within the company and the effect of other expense reduction
programs.  Employees who are considered essential to the
company's operations will not be accepted into the program. The
program is also closed to certain other employees, such as those
who have already submitted resignations, who have already
received separation notices or who are contract employees.

Employees will be able to apply for the program between February
22 and February 27, 2002.  Those accepted will be informed on
March 4 and March 5, 2002 and their last day of employment will
be March 8.

                        ABOUT GLOBAL CROSSING

Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.  
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services.  Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing (NYSE: AX).

On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated
proceedings in the Supreme Court of Bermuda.

Please visit http://www.globalcrossing.com or  
http://www.asiaglobalcrossing.com for more information about  
Global Crossing and Asia Global Crossing.


GLOBALSTAR L.P.: Obtains Approval of All "First Day Motions"
------------------------------------------------------------
Globalstar, the global mobile satellite telephone service,
announced that the U.S. Bankruptcy Court in Delaware has
approved all of the company's first day motions, allowing
Globalstar to continue normal course operations and, with the
support of the Company's service providers, further assuring
uninterrupted telecommunications service for its customers.

The Court approval, which was granted on February 21, follows
Globalstar's filing on February 15 of a voluntary petition under
Chapter 11 of the U.S. Bankruptcy Code with the same court.

Globalstar will conduct business as usual with respect to
customers, employees and most suppliers. This includes payment
of employee salaries and benefits and payment for goods and
services provided after February 15, 2002.

As a result, Globalstar will continue its work on finalizing and
implementing its new business plan as outlined in last week's
announcement, and the company expects to file a complete plan of
restructuring with the Court in the coming weeks.

Globalstar is a provider of global mobile satellite
telecommunications services, offering both voice and data
services from virtually anywhere in over 100 countries around
the world. For more information, visit Globalstar's Web site at
http://www.globalstar.com

DebtTraders reports that Globalstar Capital Corporation's 11.5%
bonds due 2005 (GSTAR4) (with Globalstar Telecommunications as
underlying issuer) are trading between 6 and 7. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=GSTAR4for  
real-time bond pricing.


HALLIBURTON: Court Extends Stay on Asbestos Claims Through Apr 4
----------------------------------------------------------------
Halliburton Company (NYSE: HAL) announced that on Thursday,
February 21, 2002, the U.S. Bankruptcy Court that issued a
temporary restraining order on February 14, 2002 staying more
than 200,000 pending asbestos claims against Halliburton's
subsidiary Dresser Industries, Inc. has extended the time period
of such stay until April 4, 2002.  On April 4, the Court will
hold a hearing to decide if the stay will continue in place or
be modified.  For more details on the stay entered by the Court
on February 14, 2002, Halliburton refers to its earlier press
release of the same date.

Founded in 1919, Halliburton 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 business segments.  The company's
World Wide Web can be accessed at http://www.halliburton.com

DebtTraders reports that Halliburton Company's 6% bonds due
August 1, 2006 (HAL4) are trading between 86 and 88. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=HAL4for  
real-time bond pricing.


IMP INC: Negotiates With Lenders To Cure Debt Defaults
------------------------------------------------------
IMP, Inc. has minimal financial resources and its operating
needs are funded principally from the collection of accounts
receivable and from the sale of common stock and convertible
debentures to Teamasia in fiscal year 2001 and the sale of
common stock to Subba Mok in fiscal year 2002. The Company
continues to focus on restructuring its operations to conserve
cash.

Excluding the two previous quarters, the Company has reported
operating losses and total negative cash flow from its operating
activities since the second quarter of fiscal 1997. Unless a
trend of increasing revenue is achieved or the Company is able
to sustain a lower break-even point, the Company may continue to
report losses and negative cash flows in the future.

The Company sells its products to distributors and manufacturers
in Southeast Asia, which is currently experiencing an economic
downturn. Sales in this region accounted for 25% of the
Company's net revenues in fiscal year 2001 and approximately 30%
for the nine months ended December 31, 2001. If the region is
not able to overcome its economic problems, there is no
assurance that the Company's results of operations will not be
adversely affected.

As a result of the severe downturn in the semiconductor market,
the Company experienced a significant decrease in sales in the
fourth quarter of fiscal year 2001, and the trend continued in
the subsequent nine months ended December 31, 2001. The downturn
in the semiconductor market is expected to continue for the
foreseeable future and could compound the Company's liquidity
issues.

During the quarter ended December 31, 2001, the Company
generated net revenues of $5.45 million compared to $9.3 million
for the same period of the prior year. The decrease in net
revenues was due to decreased demand for the Company's foundry
and power management products. The decreased demand for the
Company's products reflects the industry wide slow down in
demand for semiconductor products. Foundry product sales
accounted for 65% of net revenues in the quarter ended December
31, 2001 and power management product sales accounted for 35% of
net revenues in the quarter ended December 31, 2001. The sale of
standard products are slowly increasing as percentage of the
sales and IMP expects the trend to continue in the near future.

For the three months ended December 31, 2001, the Company's
largest customers were Linfinity Microelectronics, National
Semiconductor and International Rectifier, which accounted for
approximately 31%, 17% and 7% of net revenues and 3%, 0%, and 7%
of net accounts receivable at December 31, 2001, respectively.
Revenues from National Semiconductor resulted from the one time
sale of work-in-process inventory. The Company expects no
revenue from National Semiconductor in the near future.

The Company generated net income of $17,000 for the three months
ended December 31, 2001, representing no earnings per share for
either basic or diluted compared to a net loss of $1.2 million
in the quarter ended December 24, 2000, or $.68 per share (both
basic and diluted). Management has taken a number of actions
that are designed to enable the Company to achieve profitable
results at much lower revenue levels. Scaled down operations,
cost control and improvements in its manufacturing efficiency
are the major drivers of the Company's return to profitability.

Net revenues for the nine months ended December 31, 2001
decreased 25.2% to $19.6 million compared to $26.2 million for
the same period of the prior year. Foundry product sales
decreased 19.0% and accounted for 72% of net revenues in the
first nine months of fiscal 2002, versus 67% in the first nine
months of fiscal 2001. Standard product and design engineering
sales decreased by 25.0%.

For the nine months ended December 31, 2001, the Company's
largest customers were Linfinity Microelectronics, National
Semiconductor and International Rectifier which accounted for
approximately 23%, 16% and 8% of net revenues and 3%, 0%, and 7%
of net receivables at December 31, 2001, respectively.

The Company generated net income of $449,000 for the nine months
ended December 31, 2001. This represents earnings per basic and
diluted common share of $0.09. For the corresponding period of
the prior year, the Company generated a net loss of $5.4 million
or $3.64 per share. The net income for the nine months ended
December 31, 2001 resulted from cost cutting measures taken by
the Company.

On May 10, 2001, the Company entered into an agreement with
Subba Mok whereby Subba Mok agreed to acquire 72% of the equity
of the Company for $6.0 million. Of this amount, $2.5 million
was received in June 2001, $3.4 million was received in July
2001 and the remaining $100,000 was received in the quarter
ended December 31, 2001. The proceeds were used to pay down
certain borrowings and past due obligations.

In April 1999, the Company entered into an agreement with The
CIT Group for a $9.5 million loan facility. Included in the
facility were secured term loans for up to $2.0 million for
equipment purchases and a revolving credit facility that allowed
the Company to borrow up to $7.5 million based on qualifying
accounts receivable and inventory balances at 1.5% over prime.
On July 10, 2001, the CIT Group gave notice of termination and
acceleration and demand for repayment for the revolving credit
facility, including the equipment term loans. All amounts due to
CIT were repaid in August 2001. Management is actively
negotiating with several lenders to replace the CIT Group
revolving credit facility.

The Company has been unable to meet its obligations under debt
agreements and certain of its capital lease obligations. These
instances of non-payment put the Company in default of these
agreements.

The Company is currently delinquent in payments for federal and
state withholding taxes in the amount of $841,000. The Company
is working out a payment plan with appropriate agencies to pay
off the amount. Additionally, a number of vendors and suppliers
have filed suit against the Company for non-payment.

Management has been actively negotiating with the Company's
creditors. As a result of these negotiations, and by using
proceeds from sales of stock in June 2000 and convertible
debentures in November and December 2000 to Teamasia totaling
$7,430,000, as well as additional proceeds from Subba Mok in
June and July 2001 totaling $6.0 million, the Company has been
able to bring current, pay off, or refinance certain of its debt
obligations. The Company continues to be in default on all
capital lease obligations.

As of December 31, 2001, the Company's short-term portion of
debt and capital lease obligations totaled $5.6 million, which
is comprised of (i) $3.5 million of convertible debentures due
in May 2002, net of a discount of $582,000, (ii) $2.0 million of
capital lease obligations and (iii) $675,000 of other debt
obligations. The capital lease obligations are comprised of five
individual leases, all of which are past due.


IMPERIAL SUGAR: Suspended Nasdaq Trading To Resume Today
--------------------------------------------------------
Imperial Sugar Company (OTCBB: IPSU) announced that the NASDAQ
suspended trading in its common stock as a result of confusion
in the market concerning a distribution of stock reported as a
stock dividend.

On January 16, 2002 the United States Bankruptcy Court approved
a settlement among Imperial, the Official Committee of Equity
Security Holders and Lehman Brothers, Inc. concerning Lehman's
bankruptcy claims. Pursuant to the settlement, 70,000 shares of
reorganized Imperial's New Common Stock which otherwise were
distributable to Lehman, are being distributed to former holders
of Old Common Stock. As a result, former holders of Old Common
Stock who received stock in the initial post-bankruptcy
distribution on September 26, 2001, are receiving an additional
.35 shares of New Common Stock for each share of New Common
Stock received in the initial distribution.

This distribution does not increase the total number of shares
outstanding, it reallocates 70,000 shares from Lehman to former
holders of Old Common Stock. NASDAQ indicated that they expect
trading to resume by Tuesday, February 26, 2002.

Imperial Sugar Company is the largest processor and marketer of
refined sugar in the United States and a major distributor to
the food service market.


IMPSAT FIBER: Misses $20.6MM Interest Payment On Senior Notes
-------------------------------------------------------------
IMPSAT Fiber Networks, Inc. failed to make its US$20.6 million
interest payment due on February 15, 2002 on its $300 million
principal amount of 13-3/4% Senior Notes due 2005. Under the
terms of the Notes due 2005, the Company has another 30 days to
make the payment in order to avoid default consequences.
In addition, the Company received a notice from the Nasdaq
National Market warning that the Company's stock may be delisted
because its common stock has failed to maintain a minimum bid
price of $3 over the last 30 consecutive trading days and failed
to maintain a minimum market value of public float of
$15,000,000. In accordance with Nasdaq's Marketplace Rules, the
Company is provided 90 calendar days, or until May 15, 2002, to
regain compliance.


INT'L TOTAL: Agrees To Provide Direct Pre-Board Screening To FAA
----------------------------------------------------------------
On February 15, 2002, the United States Bankruptcy Court in the
Eastern District of New York approved an agreement between
International Total Services, Inc. and the Federal Aviation
Administration pursuant to which the Company will provide pre-
board screening services directly for the FAA, instead of for
the various airlines. The agreement expires in sixty days,
during which time the Company and the FAA will attempt to
negotiate an agreement to cover the period of time through
November 17, 2002, at which time the federal government is to
provide pre-board screening services utilizing its own
employees. The agreement is under seal pursuant to an order of
the Bankruptcy Court.


IT GROUP: Courts Extends Schedule Filing Deadline to March 22
-------------------------------------------------------------
The IT Group, Inc. sought and obtained an order giving them more
time to file their schedules of assets and liabilities,
schedules of executory contracts and unexpired leases, and
statements of financial affairs. The documents are due March 22,
2002.

Marion M. Quirk, Esq., at Skadden Arps Slate Meagher & Flom LLP
in Wilmington, Delaware, tells the Court that due to the
complexity and diversity of their operations, the Debtors need
more time to compile the necessary information from their books,
records and documents relating to a multitude of transactions at
numerous locations. Collection of the necessary information
requires an expenditure of substantial time and effort on the
part of the Debtors' employees. Given the significant burdens
already imposed on the Debtors' management by the commencement
of these chapter 11 cases, the Debtors request additional time
to complete and file the required Schedules and Statements.

Mr. Quirk assures the Court that the Debtors have mobilized
their employees and professionals to work diligently on the
assembly of the necessary information.

Judge Walrath will convene a hearing on the Debtors' request at
a hearing on March 7, 2002. By application of Local Bankruptcy
Rule 9006-2, the deadline by which the Debtors must file their
Schedules & Statements is automatically extended through the
conclusion of that hearing. (IT Group Bankruptcy News, Issue No.
5; Bankruptcy Creditors' Service, Inc., 609/392-0900)  


KAISER ALUMINUM: Obtains Authority to Pay Customer Obligations
--------------------------------------------------------------
Kaiser Aluminum Corporation moved the Court for the entry of an
order authorizing the Debtors, in their sole discretion, to
honor or pay prepetition obligations to their customers in the
ordinary course of business.

In the ordinary course of their businesses, Joseph Bonn, the
Debtors' Executive Vice President, relates that the Debtors
engage in marketing, sales and other customer-targeted practices
to develop and sustain positive reputations of their products in
the marketplace. These customer-targeted practices and
promotional efforts include:

A. Credits: The Debtors utilize various practices designed to
       attract new customers for the Debtors' products and to
       enhance product loyalty among the Debtors' existing
       customer base, including rebates, discount programs,
       refunds, credits and other adjustments relating to sales.
       As of the Petition Date, the Debtors owed Credits to
       various customers on account of goods or services
       delivered or provided to customers prepetition.

B. Deposits: The Debtors typically receive deposits or
       prepayments from certain customers for goods and services
       not yet delivered or provided to such customers in full
       or in part. The Debtors generally apply the Deposits
       towards the customers' accounts and then subsequently
       deliver or provide the goods or services in accordance
       with the terms of the parties' agreement. As of the
       Petition Date, the Debtors held Deposits for goods or
       services not yet delivered or provided to customers.

C. Warranty Claims: In addition, the Debtors offer and extend
       certain warranties, including raw materials replacement
       and indemnification warranties, to cover products sold to
       their customers. Although these warranties may vary based
       on the product or the particular customer, they generally
       impose an obligation on the Debtors to replace products
       that are defective, nonconforming or otherwise
       unacceptable to the Debtors' customers. As of the
       Petition Date, the Debtors had outstanding obligations on
       account of Warranty  Claims.

Although the Debtors are unable to estimate with any degree of
certainty the aggregate sum of the Credits, Deposits, and
Warranty Claims that may be outstanding as of the Petition Date,
they would note that these items typically aggregate on an
annual basis approximately one and a half to two percent of net
sales. Based on fiscal year 2001 net sales of $1,700,000,000,
Mr. Bonn estimates that Customer Obligations would aggregate
approximately $25,000,000 to $35,000,000 per year or
approximately $2,000,000 to $3,000,000 per month.

Daniel J. DeFranceschi, Esq., at Richards Layton & Finger in
Wilmington, Delaware, contends that the success and viability of
the Debtors' businesses are dependent upon the loyalty and
confidence of their customers. The continued support of this
constituency is absolutely essential to the survival of the
Debtors' businesses and the Debtors' ability to reorganize. Any
delay in honoring or paying various Customer Obligations will
severely and irreparably impair the Debtors' customer relations
at a time when the loyalty of those customers is extremely
critical. By contrast, Mr. DeFranceschi points out that honoring
these prepetition obligations will require minimal expenditure
of estate funds and will assist the Debtors in preserving key
customer relationships to the benefit of all stakeholders.
Accordingly, to preserve the value of their estates, the Debtors
must be permitted, in the Debtors' sole discretion, to continue
honoring or paying all Customer Obligations without interruption
or modification. In addition, to provide necessary assurances to
the Debtors' customers on a going-forward basis, the Debtors
request authority to continue honoring or paying all obligations
to customers that arise from and after the Petition Date in the
ordinary course of the Debtors' businesses.

Mr. DeFranceschi assures the Court that the Debtors have
sufficient cash reserves, together with anticipated access to
sufficient debtor in possession financing, to pay all Customer
Obligations, to the extent described herein, as such amounts
come due in the ordinary course of their businesses.

                           *   *   *

Finding good and sufficient cause, Judge Katz issues an interim
order granting the relief requested provided that to the extent
that the Debtors decide to pay any warranty claim in the amount
of over $1,000,000, the Debtors shall first give notice to their
largest unsecured creditors.  If any written objection is served
within a 3-day period, the Debtors will not be authorized to pay
the objectionable claim until further order of the Court.
(Kaiser Bankruptcy News, Issue No. 2; Bankruptcy Creditors'
Service, Inc., 609/392-0900)   


KELLSTROM INDUSTRIES: Seeks Nod to Keep Cash Management System
--------------------------------------------------------------
Kellstrom Industries, Inc., along with debtor-affiliates, moves
that the U.S. Bankruptcy Court for the District of Delaware may
permit them to use its existing bank accounts, without notice
and hearing.

To provide a clear line of demarcation between pre-petition and
post-petition transactions and operations and to prevent the
inadvertent post-petition payment of pre-petition claims, the
U.S. Trustee requires that the Debtors close all existing bank
accounts and open new DIP bank accounts.

The Debtors assert that their businesses are complex. Their cash
management system primarily operates through 8 bank accounts
where collections are deposited into 3 separate Bank Accounts.
The Debtors assure the Court that their existing cash management
system allows them to effectively and efficiently run their
businesses.

The Debtors believe their existing cash management practices are
essential to their ability to meet their post-Petition Date
obligations in the ordinary course and to obtain the goods and
services needed for continued operations. The Debtors point out
that introducing a new cash management system will greatly
disrupt operations.

Kellstrom Industries, Inc., a leader in the aviation inventory
management industry filed for chapter 11 protection on February
20, 2002. Domenic E. Pacitti, Esq. at Saul Ewing LLP represents
the Debtors in their restructuring efforts. When the Company
filed for protection from its creditors, it listed $371,249,106
in total assets and $402,400,477 in total debts.


KEY ENERGY: S&P Rates Proposed $100MM Sr. Unsecured Notes At BB-
----------------------------------------------------------------
Standard & Poor's assigned its double-'B'-minus rating to Key
Energy Services Inc.'s proposed $100 million 8 3/8% senior
unsecured notes due 2008. The Midland, Texas-based Key Energy
provides oilfield services to the North American onshore
petroleum industry and has about $400 million of debt
outstanding. The outlook is stable.

"The transaction should allow the company to better manage its
near-term maturities, as well as provide a measure of improved
financial flexibility," said Standard & Poor's credit analyst
Daniel Volpi. Key Energy is expected to apply approximately $63
million to fully repay its bank credit facility, with the
remaining proceeds reserved for future debt retirement.

The ratings reflect Key Energy's leading market position in the
highly cyclical U.S. onshore oilfield services market, its
moderately leveraged capital structure, and its improved ability
to weather cyclical industry downturns. Over the past three
years, the company has since followed through on a more
conservative financial strategy intended to improve the
company's ability to sustain cyclical industry downturns.

The stable outlook reflects expectations that Key will continue
to prudently manage its financial profile.


KMART CORPORATION: Proposes Vendor Return Program
-------------------------------------------------
Kmart Corporation asks the Court to:

    (a) authorize the implementation of a Program for the return
        of good to their vendors who extend the Debtors post-
        petition trade terms, reasonably acceptable to the
        Debtors in their sole discretion, for a credit against
        such vendors' pre-petition claims, and

    (b) confirm that the Debtors may continue to return
        merchandise to all vendors in the ordinary course of
        business for a credit against the Debtors' ongoing post-
        petition obligations to such vendors to the extent that
        vendors do not wish to participate in or do not qualify
        for the Program.

J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom,
in Chicago, Illinois, relates that the Debtors have historically
enjoyed customary trade terms with their vendors as well as the
right to return goods to vendors for credit against current and
future invoices.

But the Debtors fear that the recent reports about their
financial stress may weaken the vendors' continuing support for
them.  Thus, Mr. Ivester asserts, there is a need to normalize
vendor relations, confidence and loyalty -- as a key first-step
in their restructuring efforts.

According to Mr. Ivester, the establishment of post-petition
trade terms with the Debtors' vendors is essential to the
success of the Debtors' business as well as their
reorganization.  "Such Post-petition Terms not only enable the
Debtors to be more flexible in stocking inventory, but they also
contribute to the Debtors' overall liquidity," Mr. Ivester
explains.

The Debtors propose that return of goods received by the Debtors
before the Petition Date would offset such vendors' pre-petition
claims to the extent that the Debtors' vendors agree to extend
Post-Petition Terms acceptable to the Debtors.  In most
instances, Mr. Ivester says, the Debtors would expect to receive
goods on Post-Petition Terms equivalent to several times the
cost of the goods returned.  In addition, Mr. Ivester continues,
except under unusual circumstances -- the Debtors would not make
returns under the Program to any vendor that applied any past
cash-in-advance payment to any antecedent debt owed by the
Debtors until such vendor eliminated such CIA Deficiency by
means of a cash payment to the Debtors or delivery of goods
acceptable to the Debtors.

If a vendor participates in the Program, and the Debtors and the
vendor agree to acceptable Post-Petition Terms, Mr. Ivester
tells the Court that the amount by which a particular vendor's
pre-petition claim could be reduced would be limited to the
lesser of:

    (a) the amount of the vendor's pre-petition claim, and

    (b) the cost of the goods received by the Debtors from such
        vendor before the Petition Date.

Usually, Mr. Ivester notes, the return of goods by the Debtors
have not exceeded $100,000,000 per month.

If a return of goods received before the Petition Date exceeds
the amount of a vendor's pre-petition claim, Mr. Ivester states,
any credit would next be applied to any post-petition claim of
the vendor.  "If any balance of the cost of the returned goods
still remained, the Debtors would be entitled to a cash refund
of such balance," Mr. Ivester explains.

Mr. Ivester emphasizes that any vendor's participation in the
Program would be voluntary.  "If a vendor chooses not to extend
Post-petition Terms to the Debtors, the Debtors seek
confirmation that they remain authorized -- in the ordinary
course of business -- to return goods for credit against current
or future post- petition invoices, consistent with industry
practice and their agreements with vendors," Mr. Ivester
clarifies. (Kmart Bankruptcy News, Issue No. 4; Bankruptcy
Creditors' Service, Inc., 609/392-0900)   


KMART CORPORATION: Retaining Ernst & Young As Financial Advisor
---------------------------------------------------------------
Kmart Corporation (NYSE: KM) has filed a motion in the United
States Bankruptcy Court for the Northern District of Illinois
seeking approval to retain Ernst & Young Corporate Finance LLC
as the Company's financial advisor.  The motion is scheduled to
be heard by Chief Judge Susan Pierson Sonderby on March 6, 2002.

Upon court approval, Ernst & Young will provide Kmart with a
variety of financial advisory services related to its pending
reorganization cases. These services could include assistance in
the preparation of financial disclosures required by the court
such as monthly operating reports; assistance with the
identification of executory contracts and leases and performance
of cost/benefit evaluations with respect to the affirmation or
rejection of each; and assistance regarding the evaluation of
the present level of operations and identification of areas of
potential cost savings. These services had previously been
provided by PricewaterhouseCoopers LLP, which will continue to
serve as Kmart's independent auditors and tax advisors.

James B. Adamson, Chairman of Kmart's Board of Directors, said,
"The decision to retain Ernst & Young Corporate Finance as the
Company's financial advisor was unanimously approved by the
Kmart Board.  The Board believes that in today's corporate
environment it was prudent to make this change.  We appreciate
the dedication and hard work performed by the Business Recovery
Services Group of PricewaterhouseCoopers LLP.  They have been
instrumental in guiding us through to this point in our
reorganization.  This change certainly does not reflect upon the
quality of the services and advice they have provided to us."


LAIDLAW INC: Executives' Equity Stakes And Compensation
-------------------------------------------------------
As of January 15, 2002, Laidlaw, Inc., discloses that
325,927,870 common shares are outstanding, each carrying the
right to one vote per share. To the Debtor's knowledge, no
person or company beneficially owns, directly or indirectly,
more than 10% of the common shares of the Company.

The current directors and their shareholdings in Laidlaw are:

Name                  Position                    Shared owned
----                  --------                    ------------
Peter Widdrington     Corporate Director          28,750 common

John R. Grainger      President and CEO           none
                       (Laidlaw, Inc)

Stephen F. Cooper     Managing Partner            none

William P. Cooper     President and CEO           15,997 common
                       (Cooper Construction)

Jack Edwards          President and CEO           31,918 Common
                       (American Medical Response)

William A. Farlinger  Chairman (Ontario Power     800 common
                       Generation, Inc.)

Donald M. Green       President and CEO           7,638 Common
                       (Greenfleet Ltd)

Martha O. Hesse       President                   12,318 Common
                       (Hesse Gas Company)

Wilfred G. Lewitt     Chairman (MDS, Inc.)        56,774 Common

Gordon Ritchie        Chairman, Public Affairs    9,385 Common
                       (Hill & Knowlton Canada)

Stella Thompson       Principal                   none
                       (Governance West, Inc.)

As of August 31, 2001, the five most compensated executive
officers of Laidlaw for 2001 are:

                          Annual         Annual        Other
Name and Position         Salary         Bonus      Compensation
-----------------         ------         ------     ------------
John Grainger             $610,000       $210,000      $8,951
President and CEO

Ivan R. Cairns             320,000        171,200       8,793
SVP and General Counsel

Wayne R. Bishop            230,198        112,000      11,009
VP and Controller

Jeffrey Cassell            228,787         72,000      11,471
VP-Risk Management

D. Geoffrey Mann           193,867         67,000       8,008
VP-Treasury

No named executive was granted the option to purchase common
shares for the year 2001.

As part of its Key Employee Retention Program, these people
received retention benefit payments:

Employee        Retention Benefit               Payment Schedule
--------        -----------------               ----------------
J.R. Grainger   12 months' base salary            25% - 10/31/00
                                                  25% - 05/01/01
                                                  50% - 10/31/01

W. Bishop       75% of 18 months' base salary     25% - 10/31/00
J. Cassell      75% of 18 months' base salary     25% - 05/01/01
D.G. Mann       75% of 18 months' base salary     50% - 10/31/01

And additional amounts will be paid for service rendered from
November 1, 2001 until the confirmation of the Plan of
Reorganization:

W. Bishop           50% of monthly base salary
J. Cassell          50% of monthly base salary
D.G. Mann           50% of monthly base salary
I.R. Cairns         50% of monthly base salary

If the Debtors do not have a confirmed plan of reorganization by
June 1, 2002, the participants of the Key Employee Retention
Program will receive 25% of the retention bonus payable by that
date. (Laidlaw Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., 609/392-0900)  


LODGIAN INC: Engages Arthur Andersen As Accountants
---------------------------------------------------
Lodgian, Inc. asks the Court for authority to employ and retain
Arthur Andersen LLP as their auditors and accountants, nunc pro
tunc to December 20, 2001.

Gregory M. Petrick, Esq., at Cadwalader Wickersham & Taft in New
York, assures the Court that the Debtors have reviewed the scope
of Arthur Andersen's and PwC's retention to ensure that each
accounting firm will not render duplicative services to the
Debtors ad believes that the allocation of responsibilities
between the firms is efficient and will ensure that these
services will maximize the value of the Debtors' estates.

The auditing and accounting services that the firm will render
to the Debtors include:

A. perform financial audits and related audit and accounting
       services, including, assisting with the preparation of
       Forms 10-Q, 10-K and other forms as may be required to
       file with the SEC;

B. research, analyze and advise with regard to a variety of
       audit, accounting and regulatory compliance issues; and

C. provide temporary loan staff services to assist the Debtors
       in completing certain accounting and regulatory reporting
       tasks on a timely basis.

Steven Surbaugh, a Partner of Arthur Andersen LLP, relates that
the firm will be seeking compensation based on the current
hourly billing rates of its professionals rendering the service
plus reimbursement of out-of-pocket expenses incurred in
connection with the engagement. For the audit of the company's
financial statement for the year ending December 31, 2001, the
firm will charge the Debtors 90% of their normal hourly billing
rates and for interim reviews of the company's unaudited
financial statements, the firm will charge 80% of their normal
hourly billing rates. The firm's current hourly rates are as
follows:

     Consultation Partners                          $900 - 1,000
     Engagement, Concurring & Advisory Partners     $465 -   598
     Consultation Managers                          $750
     Engagement Managers                            $366 -   588
     Engagement Seniors                             $242 -   299
     Engagement Experienced Staff                   $185 -   207
     Engagement Staff                               $134 -   150
     Engagement Intern                              $ 67 -    75

Mr. Surbaugh assures the Court that the firm does not have any
connection with the Debtors, their creditors, or any other party
in interest and is a "disinterested person" as defined in the
Bankruptcy Code. The firm is in the process of conducting a
conflict search and will promptly file supplemental disclosures,
as appropriate. (Lodgian Bankruptcy News, Issue No. 5;
Bankruptcy Creditors' Service, Inc., 609/392-0900)  


LTV STEEL: Hourly Retiree Benefits to End March 31
--------------------------------------------------
LTV Steel has informed the union that the Voluntary Employee
Beneficiary Association (VEBA) trust -- which has paid for part
or all of retired Steelworkers' healthcare and life insurance
benefits since June 2001 -- will not be able to assure payment
of health-care claims past March 31, 2002, and all LTV hourly
retiree healthcare and life insurance benefits will end on that
date, the United Steelworkers of America announced.

"It's come much sooner than we expected, but this is a day we've
all known was coming," said USWA International President Leo W.
Gerard.  "And, sooner or later, the same day will come for
retirees at every steel company in the United States unless our
government acts quickly and decisively to end unfair trade in
steel, grant maximum tariff relief to give the industry time to
recover from the damage caused by illegal imports, and level the
playing field with relief for the industry's legacy costs.

"That won't happen unless we make it happen," Gerard continued.  
"Every Steelworker, every retiree -- not just those from LTV --
needs to get involved in the campaign to save our steel industry
and preserve retiree healthcare. Call, write and email President
Bush -- urge him to impose maximum tariff relief from illegal
steel imports and to support federal legislation to fund retiree
healthcare."

"LTV retirees and surviving spouses have now become the latest
victims of the steel crisis -- aided and abetted by the bad
former management of LTV Steel," said Dave McCall, USWA District
1 director and the union's chief negotiator with LTV.

In December, LTV requested and the Bankruptcy Court approved an
order to end the company's obligation to pay for hourly retiree
benefits when VEBA funds were exhausted.  Pension payments will
not be affected by this order. Under federal law, retired
Steelworkers and surviving spouses have the option to continue
coverage for a limited time by paying the premium for this
"COBRA" coverage, which is named for the federal act which
guarantees continued coverage.  Full details about LTV retiree
healthcare, and about obtaining COBRA coverage will be mailed to
all LTV hourly retirees and surviving spouses in March.


MATLACK SYSTEMS: Wants To Stretch Removal Period Through Apr. 12
----------------------------------------------------------------
Matlack Systems, Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to extend their
time to file notices of removal of Pre-Petition civil actions
through April 12, 2002.

To protect their right, the Debtors claim that it is prudent to
seek a fourth extension of their Removal Period.  The extension
sought will afford the Debtors an additional opportunity to make
fully informed decisions with on the removal of the Pre-Petition
Actions and will ensure that the Debtors do not forfeit valuable
rights.

A hearing will be held on March 18, 2002 if any objections to
the Debtors' motion are filed with the Court.

Matlack, North America's No. 3 tank truck company, provides
liquid and dry bulk transportation, primarily for the chemicals
industry.  The company filed for chapter 11 protection last
March 29, 2001 and is represented by Richard Scott Cobb, Esq.,
at Klett Rooney Lieber & Schorling.  Matlack's 10Q Report, filed
with the Securities and Exchange Commission on March 31, 2001,
lists assets of $81,160,000 and liabilities of $89,986,000.


MCLEODUSA: Seeks Okay To Retain Ordinary Course Professionals
-------------------------------------------------------------
Saying that it customarily retains the services of attorneys,
accountants, tax professionals and others in the ordinary course
of business, McLeodUSA Inc. seeks from the Court authorization:

    (a) to retain the Ordinary Course Professionals under
        Bankruptcy Code sections 105 (a) and 327 without the
        necessity of a separate, formal retention application
        approved by the Court for each ordinary Course
        Professional, and

    (b) to compensate the ordinary Course Professionals for
        post-petition services rendered, subject to certain
        limits, without the necessity of additional Court
        approval.

Randall Rings, McLeodUSA's Group Vice President, Secretary and
General Counsel, says the Debtor will file individual retention
applications for any professionals that the Debtor seeks to
employ in connection with the conduct of its Chapter 11 case.

                  Payment of fees and expenses

David Kurtz, Esq., at Skadden, Arps, Slate Meagher & Flom
(Illinois), proposes:

    (a) that the Debtor be permitted to pay, without formal
        application to the Court by any Ordinary Course
        Professional, 100% of the interim fees and disbursements
        to each of the Ordinary Course Professionals upon the
        submission to the Debtor of an appropriate invoice
        setting forth in reasonable detail the nature of the
        services rendered after the Petition Date, provided that
        such interim fees and disbursements do not exceed a
        total of $25,000 per month per Ordinary Course
        Professional;

    (b) that payments to a particular professional would become
        subject to Court approval pursuant to an application for
        an allowance of compensation and reimbursement of
        expenses under Bankruptcy Code sections 330 and 331 if
        such payments exceed $25,000 per month for that Ordinary
        Course Professional.

                Submission of Rule 2014 Affidavits

Mr. Kurtz requests that all Ordinary Course Professionals be
excused from submitting separate applications for proposed
retention.

Recognizing, however, the importance of providing the Court and
the United States Trustee information about each ordinary Course
Professional who is an attorney, Mr. Kurtz proposes that while
the Debtor be permitted to continue to employ, retain, and
compensate all Ordinary Course Professionals, each Ordinary
Course Professional who is an attorney be required to file with
the Court and serve upon the United States Trustee, counsel to
any statutory committee appointed in the Case, counsel to the
Debtor's Pre-Petition Secured Lenders and the counsel to the
Debtor, an Affidavit of Proposed Professional within 10 days of
the date of service of an Order granting this Motion.

Mr. Kurtz also requests that the United States Trustee, the
Committee and the Pre-Petition Secured Lenders be given 10 days
from the date of service of a Professional's affidavit to object
to the retention of such Professional. Objections, if any, shall
be served upon:

    (a) the Ordinary Course Professional,
    (b) the United States Trustee,
    (c) counsel to the Committee(s),
    (d) counsel to the Pre-Petition Secured Lenders, and
    (e) counsel to the Debtor

If any such objection cannot be resolved within 10 days, the
matter will be scheduled for hearing before the Court at the
next regularly-scheduled omnibus hearing or other date otherwise
agreeable to the Ordinary Course Professional, the Debtor and
the United States Trustee, the Committee or the Pre-Petition
Secured Lenders (whichever objected to the retention of the
Ordinary Course Professional).

If no objection is submitted on or before the Objection
Deadline, or if any objection submitted is timely resolved, the
Mr. Kurtz requests that, without further Order of the Court, the
employment, retention and compensation of the ordinary Course
Professional be deemed approved.

             Additional Ordinary Course Professionals

The Debtor further requests to be authorized to employ
additional Ordinary Course Professionals as necessary, in the
ordinary course of its business without the need to file
individual retention applications and without the need for any
further hearing or notice to any other party, by filing with the
Court a supplement.

Mr. Kurtz says retaining Ordinary Course Professionals with whom
the Debtor had previous dealings with is in the best interest of
the Debtor's estate, adding that losing their expertise and
services will lead to the estate incurring significant and
unnecessary expenses, as the Debtor will be forced to retain
other professionals without similar background and expertise.
(McLeodUSA Bankruptcy News, Issue No. 3; Bankruptcy Creditors'
Service, Inc., 609/392-0900)  


MUTUAL RISK: Fitch Junks Convertible Subordinated Debt Rating
-------------------------------------------------------------
Fitch Ratings has assigned a 'CC' rating to Mutual Risk
Management Ltd.'s (MM) existing convertible exchangeable
subordinated debt. Fitch also assigned a 'CCC-' long-term issuer
rating to MM, which provides an indication of MM's credit
quality at a senior unsecured level. The ratings have been
initiated on Rating Watch Evolving.

The ratings, which imply a high degree of default risk, are
based on Fitch's view that MM faces significant near-term
challenges tied to both its operating and financial profile.
Barring extraordinary actions by management, the success of
which are largely outside of management's control, Fitch
believes it is possible that MM will be unable to meet certain
of its debt and other fixed income security obligations.

The rating actions follow MM's fourth quarter earnings
announcement, which disclosed a number of charges and
transactions. Most importantly, MM reported the establishment of
a $63 million valuation reserve against its U.S. net deferred
tax asset. The establishment of this reserve implies a great
uncertainty as to MM's ability to generate future taxable income
in the U.S. In Fitch's view, the inability to generate future
income puts MM's viability in doubt.

MM also reported a $38.3 million loss reserve increase, a $12.4
million increase in bad debt reserves for reinsurance
recoverables, a $10.8 million charge from the commutation of
reinsurance contracts and a $10.4 million investment write-down.
A $20.8 million gain on the sale of MM's Tremont Advisors
business partially offsets these charges. The fourth quarter
charges follow a series of previously recognized reserve
increases and reinsurance disputes that Fitch believes resulted
from MM's expansion of its former program business in a period
of soft market conditions.

MM announced the pending sale of Hemisphere Management
(Hemisphere), the fund administration business that comprises
the majority of its financial services business segment. The
sale is contingent on approvals from various creditors of MM,
and would be expected to raise $110 million of cash proceeds.
Fitch believes such a sale of a key asset is reflective of the
very limited financial flexibility currently available to MM,
and would come at a cost to future earnings and cash flow.
However, if successful, it would help improve MM's near-term
liquidity and capital position, and could lead to an improvement
in MM's ratings.

Fitch estimates MM's financial leverage to be 57% (debt-to-total
capital) at Dec. 31, 2001. Successful completion of the
Hemisphere sale at the terms announced would reduce financial
leverage to 49%. Even at this reduced level, Fitch considers
financial leverage to be very high.

Fourth quarter results put MM in violation of certain debt
covenants. MM previously breached a negative covenant at Sept.
30, 2001. That covenant required MM's U.S. subsidiaries to have
a statutory combined ratio at the end of each fiscal quarter of
no more than 125% for the previous 12 months. MM sought, and
successfully obtained, waivers from its bank lenders and
debenture holders. MM is negotiating to obtain additional
waivers and covenant amendments.

Following the earnings announcement, MM received ratings
downgrades from the two rating agencies that had previously
maintained financial strength ratings on certain of its
insurance company subsidiaries. Standard & Poor's lowered its
ratings on the Legion companies to BBB from A-, and A.M. Best
lowered its ratings on Legion to B from A- and IPC Group to B+
from A-. Fitch believes that it will be extremely difficult for
MM to compete effectively at these ratings levels in its core
business lines. Fitch has not previously maintained any ratings
on MM or its insurance company subsidiaries.

Due to diminished marketplace perceptions of MM's financial
condition, Fitch expects MM to experience declining revenues in
all four of its business segments. Fitch further notes that
deterioration in an insurer's financial condition often exposes
the insurer to greater risk of adverse selection and reinsurance
disputes.

The Evolving Rating Watch indicates Fitch's belief that there is
a high likelihood that the rating could be upgraded or
downgraded in the future. MM management indicates they are
exploring a number of strategic alternatives, in addition to the
proposed Hemisphere sale, to improve the company's financial
condition. A successful closing of the Hemisphere sale, or
another major transaction, could have a potentially positive
effect on the ratings. Conversely, if MM is unable to complete a
transaction, or its financial condition deteriorates further,
the ratings may be lowered.

The ratings assigned on Rating Watch Evolving:

Entity/Issue/Type Action Rating/Watch

Mutual Risk Management Ltd.

     --Long-term issuer Assign 'CCC-'/Evolving;
     --Conv. Exch. Sub. Debt Assign 'CC'/Evolving.


MUTUAL RISK: S&P Cuts Credit Ratings To Lower-B Levels
------------------------------------------------------
Standard & Poor's lowered to double-'B' from triple-'B' its
counterparty credit and financial strength ratings on Mutual
Risk Management Ltd.'s operating companies: Legion Insurance
Co., Legion Indemnity Co., and Villanova Insurance Co. At the
same time, Standard & Poor's lowered its counterparty credit and
subordinated debt ratings on Mutual Risk (NYSE:MM) to single-'B'
and single-'B'-minus, respectively, from double-'B' and double-
'B'-minus. These ratings remain on CreditWatch, where they were
placed on Dec. 19, 2001, with negative implications.

This rating action reflects Standard & Poor's opinion that
Mutual Risk's core corporate risk management and program
business might no longer be viable as a going concern. Although
management is pursuing strategic alternatives to preserve its
franchise, Standard & Poor's does not have information to
suggest that its efforts will be successful.

The losses Mutual Risk announced on Feb. 19, 2001, cite the
emergence of further deterioration in the business platform. In
addition, the announced changes in the valuation of deferred
taxes has triggered new breaches in financial covenants, which
raise increased doubt about Mutual Risk's continued viability.
The hardening reinsurance market reduces prospects in its
traditional fronting role when reinsurance capacity is
inexpensive. As a result, there is considerable uncertainty
about Mutual Risk's ability to accept increasing levels of risk
as planned since 2001.

Standard & Poor's believes the announcement of the preliminary
sale of the fund administration business, though raising
additional cash, also suggests further deterioration in the
business franchise, which would affect future earnings power.
The revised ratings also reflect management's disclosure that a
qualified audit opinion could be provided as of Dec. 31, 2001,
which will heighten the difficulty of raising new capital and
limit strategic alternatives.

Standard & Poor's expects to resolve the CreditWatch status of
these ratings following meetings with management and an
assessment of the expected actions of the debt holders. Once the
review is complete, the ratings could be affirmed or lowered
again by up to a full rating category.


NEWCOR INC: Files for Chapter 11 Reorganization in Wilmington
-------------------------------------------------------------
Newcor, Inc. (Amex: NER) announced that it had filed voluntary
petitions for reorganization and protection under Chapter 11 of
the United States Bankruptcy Code.  In its filing in the U.S.
Bankruptcy Court in Wilmington, Delaware, the Company indicated
that it will reorganize and has targeted emergence from chapter
11 in late 2002.  The Company said its decision to seek judicial
reorganization was based on a combination of factors, including
the need to reduce debt levels which were severely impacting the
company's ability to return to profitability, and the benefits
that come with converting debt to equity.  The company indicated
that it had obtained interim financing, and said that the
bankruptcy filing should not impair its ability to deliver parts
to customers or interrupt payment of wages and benefits to its
1,400 employees.

David A. Segal and James J. Connor, co-Chief Executive Officers
of Newcor said in a joint statement: "We are committed and
determined to return Newcor to profitability and this means
working through this reorganization as quickly and smoothly as
possible.  Newcor is a company that has taken a number of cost
reduction steps and consolidations and therefore is well
positioned operationally.  We needed to take this step to change
the capital structure in order for us to return to
profitability.  The debt level, given the revenue generated in
our business, is simply too large even after considering the
streamlined cost structure.  We deeply regret any adverse effect
today's action will have on our employees, customers, vendors,
and shareholders. After considering a wide range of
alternatives, however, it became clear that this course of
action was the only way to truly resolve the Company's most
challenging problems."

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


NEWCOR INC: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Lead Debtor: Newcor, Inc.
             43252 Woodward Avenue, Suite 240
             Bloomfield Hills, Michigan 4832  

Bankruptcy Case No.: 02-10575

Debtor affiliates filing separate chapter 11 petitions:

     Entity                                     Case No.
     ------                                     --------
     Deco International, Inc.                   02-10577
     Deco Technologies, Inc.                    02-10578
     ENC Corporation                            02-10580
     Grand Machining Company                    02-10581
     Newcor Foreign Sales Corporation           02-10583
     Newcor M-T-L, Inc.                         02-10882
     Plastronics Plus, Inc.                     02-10585
     Rochester Gear, Inc.                       02-10586
     Turn-Matic, Inc.                           02-10587

Type of Business: Newcor, Inc., is organized into three
                  operating segments: Precision Machined
                  Tools, Rubber and Plastic and Special
                  Machines. The Precision Machined Products
                  segment produces transmission, powertrain
                  and engine components and assemblies
                  primarily for the automotive , medium and
                  heavy-duty truck, and agricultural vehicle
                  industries. The Rubber and Plastic segment
                  produces cosmetic and functional seals and
                  boots and functional engine compartment
                  products primarily for the automotive
                  industry. The Special Machines segment
                  designs and manufactures welding, assembly,
                  forming, heat treating machinery and
                  equipment for the automotive, appliance and
                  other industries.

Chapter 11 Petition Date: February 25, 2002

Court: District of Delaware

Judge: Mary F. Walrath

Debtors' Counsel: Laura Davis Jones, Esq.
                  Pachulski, Stang, Ziehl Young & Jones P.C.
                  919 North Marker Street, 16th Floor
                  P.O. Box 8705
                  Wilmington, DE 19899-8705 (Courier 19801)
                  Telephone: (302) 652-4100
                  Facsimile: (302) 652-1400  

Total Assets: $141,000,000

Total Debts: $181,000,000

Debtor's 20 Largest Unsecured Creditors:

Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
U.S. Bank National          Series A and B        $125,000,000
Association                 Sr. Sub. Notes
Attn: Lawrence J. Bell       Dec 2008  
1420 Fifth Avenue
7th Floor
WWH1022
Seattle, WA 98101
Phone: 206-344-4654
Fax: 206-344-4630

Kyocera Ind. Ceramics Co.    Trade Debt               $534,875
P.O. Box 100926
Atlanta, GA 30384-0926
Phone: (708) 981-9494
Fax: (708) 981-9495

Grede Foundaries, Inc.       Trade Debt               $492,095
Contact: Jo Tyrn
2700 E. Plum Street
New Castle, IN 47362
Phone: (765) 593-3223
Fax: (765) 593-3202

Pro Old & Die                Trade Debt               $377,711
55 Chancellor Drive
Roselle, IL 60172
Phone: (630) 893-3594
Fax: (630) 893-4773

V.C.S.T., Inc.               Trade Debt               $361,581  
11677 South Wayne Rd.
Suite 102
Wayne, MI 48174   

Deutsch Dragan Ltd.          Trade Debt               $304,638
2 Haofe Street South
Industrial Zone
Ashkelon, Israel 78150
Phone: 972-7-7611841

M.S.M.                       Trade Debt               $304,638
Purchasing
390 Hanlan Road
Woolbridge, Ontario L41 3p6
Phone: (905) 851-6791
Fax: (905) 851-5286

Macsteel                     Trade Debt               $269,366
Purchasing
One Jackson Square                 
Suite 500
Jackson, MI 49201
Phone: (800) 876-7833
Fax: (517) 782-8736

Laclede Steel Co.            Trade Debt               $204,556

GKN Sinter Metals            Trade Debt               $192,882

LDG Detroit                  Trade Debt               $174,573

Lacy Tool Company            Trade Debt               $169,493

WCC of Michigan              Trade Debt               $163,599

Chemionics Corporation       Trade Debt               $141,422    

Federal-Mogul Corp.          Trade Debt               $131,420

Deco Tool Supply             Trade Debt               $125,829

Waupaca Foundry, Inc.        Trade Debt               $119,890

Detroit Edison               Trade Debt               $112,054

Site Temporaries, Inc.       Trade Debt               $110,195

Wellmark Blue Cross and      Trade Debt               $107,482
Blue Shield            


NEWPOWER HOLDINGS: Auditors Doubt Going Concern Ability
-------------------------------------------------------
NewPower Holdings, Inc. (NYSE:NPW), parent of The New Power
Company, reported a net loss of $212.8 million for the full year
2001 calculated before non-recurring charges.

Revenues for the full year 2001 were $369.9 million. The Company
reported a fourth quarter 2001 net loss of $39.9 million, again
before non-recurring items. This compares to a net loss of $57.5
million or $1.02 per basic and diluted share for the fourth
quarter of 2000.

"NewPower made tremendous strides during 2001 in establishing
its position as the first nationwide retail energy marketer,"
said H. Eugene Lockhart, Chairman and Chief Executive Officer of
The New Power Company. "Our customer marketing programs
particularly in Texas and Georgia have been highly successful
for both the residential and small commercial sectors,
demonstrated by growth of more than 117 percent in overall
customer count. In addition we have consolidated call centers
and billing operations from portfolio acquisitions leveraging
knowledge and significant benefits of scale."

Customer count at the end of December 2001 increased to over
800,000 customers (including pending accounts), compared to the
fourth quarter 2000 customer base of 368,000. Included in this
total are more than 45,000 small business customers.

Fourth quarter revenues were $124.6 million, an increase of 92
percent compared with the fourth quarter of 2000. The increase
relates primarily to the growth in customer base.

NewPower reported a gross margin contribution of $6.8 million
for the fourth quarter of 2001, compared to $2.2 million for the
same period a year ago. The increase reflects an improvement in
the profitability of energy delivered to our growing customer
base as well as profits relating to the company's trading
activities. The gross margin contribution per flowing customer
per month averaged $3.06 in the fourth quarter of 2001.

Selling, general and administrative (SG&A) expenses, which
include marketing expenditures and customer care costs totaled
$43.1 million, representing a decrease in expenditures of 36
percent compared to the fourth quarter of 2000. The reduction
primarily reflects decreased expenditures in systems
development, marketing, and professional fees partly offset by
increased customer care costs directly related to the growth in
customers.

Non-recurring items

NewPower reported non-recurring items in the fourth quarter of
2001 totaling $114.6 million. The charges include $90 million
related to the cancellation of the Company's commodity supply
and forward contracts following Enron's bankruptcy, $12.9
million related to an impairment in value of the Company's
interactive marketing agreement with AOL Time Warner, and $11.7
million for employee severance, lease commitments and
improvements, and other restructuring costs.

Cash and Liquidity

NewPower also stated that its cash and cash equivalents position
at the end of 2001, which includes both restricted and
unrestricted cash, and inventory and imbalances totaled
approximately $163.4 million, of which $26.4 million was
unrestricted cash. The Company believes that it has adequate
liquidity to continue operations without additional financing
into the third quarter of 2002, assuming a broadly stable
commodity price environment. As a consequence of NewPower's
prior disclosures on cash and liquidity, the company's auditors
have indicated that their report on the company's financial
statements will state that there is substantial doubt about
NewPower's ability to continue as a going concern.


               About NewPower Holdings, Inc.

NewPower Holdings, Inc. (NYSE:NPW), through its subsidiary, The
New Power Company, is the first national provider of electricity
and natural gas to residential and small commercial customers in
the United States. The Company offers consumers in restructured
retail energy markets competitive energy prices, pricing
choices, improved customer service and other innovative
products, services and incentives.


NEWPOWER HOLDINGS: Centrica to Acquire Company for $130 Million
---------------------------------------------------------------
Centrica announced that it has signed an agreement to acquire
NewPower Holdings, Inc. (NYSE:NPW) through a tender offer for
all of NewPower's outstanding shares, for $1.05 per share in
cash which in total amounts to approximately $130 million (87
million UK pounds), subject to adjustment as explained below.
The acquisition is expected to add approximately 650,000
customers to Centrica's North American customer base.

NewPower is the leading retailer of gas and electricity in
deregulated U.S. markets, serving residential and small business
customers in states including Georgia, New Jersey, Ohio,
Pennsylvania and Texas.

This acquisition, which is a further key step in Centrica's
North American strategy, follows the January 28th announcement
that Centrica has agreed to acquire Enbridge Services Inc. with
1.3 million home and business services customers in Canada.
After both transactions are completed, and after the Ontario
electricity market opens as scheduled in May, Centrica will have
around 4.3 million customer relationships with North American
households.

The combined business provides a strengthened platform for
further growth in Centrica's key target markets, including
Texas, Michigan, Ohio and Georgia and significantly enhances
Centrica's market analysis and entry capabilities in other U.S.
states. Centrica's focus on the provision of excellent value and
service to its customers will also be further supported by its
position as the leading energy retailer in deregulated North
American markets.

Centrica's Chief Executive, Roy Gardner, said: "We are very
pleased to have reached this agreement with NewPower, which
helps us achieve critical mass in our target markets in the U.S.
This is a tremendous opportunity to combine our sales and
marketing skills with the expertise that NewPower brings and we
believe there are significant operational and cost synergies to
be gained. This transaction, together with our agreement to
acquire Enbridge Services Inc. in Canada and the business of
Enron Direct Limited in the UK, demonstrates Centrica's ability
to leverage its considerable financial strengths to gain market
leadership and seize profitable growth opportunities as they
arise."

NewPower reported revenues of $369.9 million and net losses of
$212.8 million before non-recurring items for the year ended
December 31, 2001 and net assets of $246 million as at December
31, 2001. NewPower's net losses in part reflect the early stage
of its business development, as operating expenses and
infrastructure investments have substantially exceeded gross
profits. NewPower's performance was also adversely affected in
2001 by operational and switching delays in the Texas market
which, combined with volatile energy trading conditions, left
NewPower with commitments to purchase commodity at prices well
in excess of subsequent market levels. The volatility also
reduced the credit available to NewPower in the market.

NewPower's key strengths include its marketing, customer billing
and care operations and its strong regulatory relationships in
key markets.

As part of Centrica, the profitability of the NewPower business
is expected to improve due to energy market volatility risk
mitigation measures to be undertaken by Centrica, substantially
reduced infrastructure investment, a focus on profitable
customer relationships and the realisation of synergies believed
by Centrica's management to be in excess of $25 million per
annum. Centrica expects the acquisition to be slightly dilutive
to EPS and cash flow in 2002 and 2003 and to contribute to EPS
and cash flow in 2004.

NewPower Chairman and Chief Executive Officer, H. Eugene
Lockhart, said: "NewPower was formed to capitalise on the long-
term opportunity presented by energy deregulation in the U.S.,
and we have made great strides in doing so. We are delighted
that Centrica recognizes the market potential which we can now
pursue together to serve our customers from a position of far
greater stability and financial strength."

Centrica expects to commence a tender offer within one week to
acquire all of the outstanding shares of NewPower. The boards of
directors of both Centrica and NewPower have approved the
transaction. Centrica has more than 50% of the fully diluted
shares of NewPower committed to acceptance under contractually
binding Stockholders' Agreements but, in the case of the Enron
interests, this is subject to bankruptcy court approval.

The transaction is also subject to customary conditions,
including with respect to the Hart Scott Rodino Anti-Trust Act,
approvals by the Federal Energy Regulatory Commission and
certain other regulatory agencies, and approval of the
bankruptcy court overseeing Enron's Chapter 11 bankruptcy
proceedings of the settlement of certain liabilities between
NewPower and Enron, the termination of inter company agreements
and the issuance of an injunction restraining third parties from
making claims against NewPower in respect of Enron-related
liabilities.

The price per share that will ultimately be paid to NewPower
shareholders is subject to a price adjustment mechanism based on
changes in the projected forward price curves for electricity
and gas between the signing of the merger agreement and the date
upon which the tender offer price is fixed, in order to offset
any changes in the value of NewPower's commodity position.
Following such price adjustment, if the calculated price falls
outside the range $0.80 to $1.30 per share, then Centrica and
NewPower have certain predefined rights not to complete the
transaction. In addition to the equity consideration described
above, Centrica and NewPower will also pay transaction costs of
$13 million and other related costs totalling approximately $65
million as described below. These costs are expected to be
largely offset by the anticipated restricted and unrestricted
cash balances that will be held by NewPower on completion of the
transaction.

                         About Centrica

Since its formation in 1997, Centrica has developed into a
leading provider of energy and other essential services. In the
UK, Centrica offers energy supply and related products under the
British Gas brand, roadside and financial services from the AA,
telecoms products and services through One.Tel and British Gas
and financial services from Goldfish.

The group's strategy of international expansion took a
significant step forward in August 2000 with the acquisition of
Toronto based Direct Energy, North America's largest unregulated
retailer of natural gas at that time. Centrica is also active in
six states in the U.S. through the Energy America brand, which
it acquired in January 2001.

Centrica currently supplies gas to 1.3 million customers across
North America under the Direct Energy and Energy America brands,
making it the largest unregulated energy supplier. In addition,
600,000 customers have already signed up with Direct Energy in
anticipation of the opening of the Ontario electricity market
scheduled in May 2002.

In June 2001, Centrica also assumed full ownership of
GreenSource Limited, a company providing access to a network of
private gas servicing and installation contracting firms in
Ontario. This was followed in January 2002 by the announcement
that it had reached agreement to acquire Enbridge Services Inc.
which more than doubled the customer base of Centrica's Canadian
business.


NEWPOWER HOLDINGS: Falls Short Of NYSE's Listing Standards
----------------------------------------------------------
NewPower Holdings, Inc. (NYSE:NPW) received notification from
the New York Stock Exchange (NYSE) that the company is not in
compliance with the continued listing standards of the NYSE
because NewPower's average closing share price has been less
than $1.00 over a consecutive 30-day trading period. The company
has up to six months to bring its share price and 30-day average
closing price above $1.00. In the event that these requirements
are not met, NewPower would be subject to NYSE trading
suspension and delisting.


NII HOLDINGS: Argentina Subsidiaries Fail To Make $8.3MM Payment
----------------------------------------------------------------
NII Holdings, Inc. announced that its operating subsidiaries in
Argentina failed to make a December 31, 2001 scheduled payment
of $8.3 million in principal to a group of banks under its
Argentine credit facility.  However NII did make a $2.4 million
interest payment under this credit facility and entered into a
forbearance agreement with over 51% of the lenders of this
facility pursuant to which these lenders have agreed to refrain
from enforcing their respective rights to principal repayments
under this facility until January 22, 2002. NII also signed a
similar forbearance agreement with Motorola Credit Corporation
pursuant to which Motorola Credit Corporation has agreed to
refrain from  enforcing any rights to principal repayments as
lender under vendor  financing facilities with NII due to a
cross-default caused by the failure  to make the Argentine
principal payment until January 22, 2002. As of December 31,
2001, the aggregate principal balance outstanding under the
Argentine facility was approximately $108 million and the
aggregate principal balance outstanding under the vendor
financing facilities was approximately $382 million. NII is
currently in discussions with its lenders under these facilities
regarding restructuring these obligations.

NII also has retained Houlihan Lokey Howard & Zukin Capital as
financial advisor to assist in studying NII's strategic
alternatives.  NII is in discussions with representatives of the
holders of its 13% Senior Redeemable Discount Notes due 2007,
12.125% Senior Serial Redeemable Discount Notes due 2008 and
12.75% Senior Serial Redeemable Notes due 2010, regarding the
restructuring of those obligations. There is no assurance
that NII will be able to successfully restructure any of its
obligations.  NII may be required to sell strategic assets,
reorganize under Chapter 11 of the U.S. Bankruptcy Code or take
other measures.


OPTICAL DATACOM: Committee Taps Parente Randolph as Accountants
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of Optical
Datacomm, LLC's chapter 11 cases wins an order from the U.S.
Bankruptcy Court for the District of Delaware approving the
employment and retention of Parente Randolph LLC as Accountants
and Financial Advisors.

The general nature of professional services that Parente
Randolph will render to the Committee are:

      i) assist the Committee in analyzing the current financial
         position of the Debtor;

     ii) assist the Committee in analyzing the Debtor's
         liquidation plan and analyses, cash flow projections,
         asset auction and sale procedures, and other reports or
         analyses prepared by the Debtor or its professionals;

    iii) assist the Committee in analyzing the financial
         ramifications of the proposed transactions for which
         the Debtor seek Bankruptcy Court approval including DIP
         financing, assumption/rejection of executory,
         management compensation, retention and severance plans;

     iv) assist and advise the Committee and its counsel in the
         development, evaluation and documentation of any plan
         of reorganization or strategic transactions, including
         developing, structuring and negotiating the terms and
         conditions of potential plan or strategic transactions
         and the value of consideration that is to be provided
         to unsecured creditors;

      v) attend and advise at meetings with the Committee and
         its counsel and representatives of the Debtors;

     vi) render expert testimony on the Committee's behalf;

    vii) prepare hypothetical orderly or forced liquidation
         analyses; and

   viii) provide such other services, as more specifically
         delineated in the Cohen Statement and as requested by
         the Committee and agreed by Parente Randolph.

Parente Randolph shall charge its regular hourly rate (actual
rates not disclosed) for its professional services and seek
reimbursement of actual and necessary out-of-pocket expenses.


OPTIO SOFTWARE: Fails To Comply With Nasdaq's Minimum Bid Rule
--------------------------------------------------------------
Optio Software, Inc. (Nasdaq NM: OPTO), a leading provider of
software that captures, transforms and delivers information and
data to allow automated processes, received a letter from the
Nasdaq Stock Market indicating that the Company fails to comply
with the minimum bid price requirement of the Nasdaq Marketplace
Rule 4450(a)(5), which requires that the minimum bid price for
the Company's common stock be at least $1.00 per share.

The letter, dated February 14, 2002, provides Optio with 90
calendar days, or until May 15, 2002, to come into compliance
with this rule, which would require the Company's common stock
to maintain a minimum bid price of $1.00 for a minimum of 10
consecutive trading days during that period. If Optio fails to
meet this requirement, it will become subject to delisting from
The Nasdaq National Market, at which the time the Company can
appeal the delisting to the Nasdaq Listing Qualifications Panel.
In addition, the Company also has the option of applying to
transfer its common stock to The Nasdaq SmallCap Market, where
it also would have to satisfy continued inclusion requirements
for that market.

If at some future date the Company's common stock should cease
to be listed on the Nasdaq National Market or SmallCap Market,
the common stock may trade on the OTC-Bulletin Board.


PANTRY INC.: S&P Lowers Corporate Credit Rating To B+ From BB-
--------------------------------------------------------------
Standard & Poor's said that it lowered its corporate credit
rating on The Pantry Inc., a leading convenience store operator
in the Southeast, to single-'B'-plus from double-'B'-minus based
on a decline in credit measures in the first quarter of fiscal
2002 and in the full fiscal year of 2001. Standard & Poor's also
removed the ratings from CreditWatch, where they had been placed
on Jan. 24, 2002. The outlook is stable.

"The decline in operating performance has resulted primarily
from gasoline price volatility and weakened economic conditions
in key markets, which has affected both gasoline and non-fuel
sales," Standard & Poor's credit analyst Patrick Jeffrey said.
"Should these trends continue, we expect the company will be
challenged to improve operating performance significantly over
the next two years."

The Pantry has $635 million in total rated debt. Standard &
Poor's said it expects the Sanford, N.C.-based company will be
challenged to improve operations significantly in a weakening
U.S. economy. However, the company's leading market position in
the Southeast and expected reduced acquisition activity over the
next two years should allow it to focus on improving its
existing store base and reducing debt levels to maintain credit
measures in line with the rating.

Lease-adjusted EBITDA coverage of interest is trending at 1.9
times. Total debt to EBITDA is in the low-5x area but could
improve to the mid-4x area over the next two years as reduced
acquisition activity should allow free cash flow to pay down
debt. Financial flexibility is provided by a $45 million
revolving credit facility.


PENN NATIONAL: S&P Rates Senior Subordinated Notes At B-
--------------------------------------------------------
Standard & Poor's said that it assigned its single-'B'-minus
rating to Penn National Gaming Inc.'s $175 million 8.875% senior
subordinated notes due March 15, 2010.

At the same time, Standard & Poor's affirmed its single-'B'-plus
corporate credit and its subordinated debt ratings on the
Wyomissing, Pa.-based company. Proceeds from the notes will be
used for debt repayment. The outlook remains stable.

Total debt outstanding is about $360 million.

Standard & Poor's also said it expects to raise its rating on
Penn National's $75 million senior secured revolving credit
facility due 2005 to double-'B'-minus from single-'B'-plus when
the new note offering closes and the term loans are repaid.
Based on Standard & Poor's simulated default scenario, a
distressed enterprise value would cover the entire loan
facility.

Standard & Poor's credit analyst Michael Scerbo said, "Given
Penn National's aggressive growth strategy, Standard & Poor's
does not expect the company to operate with credit measures at
these levels over time." He said, "Penn National's acquisition
strategy and capital spending plans are expected to utilize
additional debt financing and bring temporarily strong financial
measures more in-line with recent ratios."

Mr. Scerbo added, "Standard & Poor's does expect that Penn
National's casino properties will continue to generate a
relatively stable source of cash flow over the intermediate
term.

Penn National Gaming owns and operates gaming facilities in Bay
St. Louis and Biloxi, Miss.; Baton Rouge, La.; and Charles Town,
W.Va. The company also operates off-track wagering (OTW)
facilities and racetracks in Pennsylvania and New Jersey and
manages a gaming facility in Ontario, Canada.

The expected addition of 500 slot machines and a parking garage
in mid 2002 at the Charles Town complex should further enhance
near-term operations there. Completion of a 300-room hotel in
Bay St. Louis in June 2002 should advance that property's
competitive position. The OTW's and Ontario management contract
are expected to be stable sources of cash flow.

A complete list of ratings is available on RatingsDirect,
Standard & Poor's on-line credit research service, or by calling
the Standard & Poor's ratings desk at (212) 438-2400.


PENN NAT'L: Enters Into Purchase Deal With Merrill Lynch, et al.
----------------------------------------------------------------
On February 13, 2002, Penn National Gaming, Inc. and The Carlino
Family Trust entered into a Purchase Agreement with Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Bear, Stearns & Co. Inc., CIBC World Markets Corp., Deutsche
Banc Alex. Brown Inc. and Lehman Brothers Inc., as
representatives of the several underwriters named therein
providing for the underwritten public offering of 4,000,000
shares of common stock, par value $.01 per share, of the Company
at a public offering price of $30.50 before underwriting
discount. Under the Purchase Agreement, the Company and the
Selling Shareholder will sell 2,750,000 shares and 1,250,000
shares, respectively, to the Underwriters. The Company also has
granted the Underwriters a 30-day option to purchase up to an
additional 600,000 shares at the Public Offering Price to cover
over-allotments. On February 19, 2002, the Underwriters gave
notice to the Company of their intent to exercise this option.

The sale of the Securities (including the option securities)
will result in net proceeds after underwriter's discount but
before expenses to the Company of approximately $96.8 million.

The Company will not receive any proceeds relating to the sale
of Securities by the Selling Shareholder. The Securities that
are being offered and sold have been registered on Form S-3
(Registration No. 333-63780) relating to the registration of the
Shares and certain other securities of the Company, filed by the
Company with the United States Securities and Exchange
Commission pursuant to the Securities Act of 1933, as amended,
on June 25, 2001, Amendment No. 1 thereto, as filed by the
Company with the Commission under the Securities Act on July 10,
2001 and Amendment No. 2 thereto, as filed by
the Company under the Securities Act of July 23, 2001.


POLYMER GROUP: Restructuring Talks With Lenders Continue
--------------------------------------------------------
Polymer Group, Inc. (NYSE: PGI) believes it has satisfied all of
the remaining conditions required to be satisfied by February
22, 2002, contained in the amended Forbearance Agreement entered
into with its senior lending group.  Consequently, the
forbearance period with its senior lending group will remain in
effect until March 29, 2002, but could end sooner upon the
occurrence of certain events, such as the exercise of any
remedies by the holders of the outstanding Senior Subordinated
Notes.  As previously announced, Polymer Group is continuing in
negotiations with a third party that the Company believes will
lead to a comprehensive financial restructuring, and is
optimistic that it will be in a position to make an announcement
of a definitive transaction in the near future.

Polymer Group, Inc., the world's third largest producer of
nonwovens, is a global, technology-driven developer, producer
and marketer of engineered materials.  With the broadest range
of process technologies in the nonwovens industry, PGI is a
global supplier to leading consumer and industrial product
manufacturers.  The Company employs approximately 4,000 people
and operates 25 manufacturing facilities throughout the world.  
Polymer Group, Inc. is the exclusive manufacturer of Miratec(R)
fabrics, produced using the Company's proprietary advanced
APEX(R) laser and fabric forming technologies.  The Company
believes that Miratec(R) has the potential to replace
traditionally woven and knit textiles in a wide range of
applications.  APEX(R) and Miratec(R) are registered trademarks
of Polymer Group, Inc.


PRECISION SPECIALTY: Has Until May 14, 2002 to Decide on Leases
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended
the time within which Precision Specialty Metals, Inc. must
decide whether to assume, assume and assign, or reject unexpired
leases of nonresidential real property.  The new deadline,
granted by the Honorable Judge Mary F. Walrath, is May 14, 2002.

Precision Specialty Metals is a specialty steel conversion mill
engaged in re-rolling, slitting, cutting and polishing stainless
steel and high-performance alloy hot band into standard or
customized finished thin-gauge strip and sheet product. The
Company filed for Chapter 11 petition on June 16, 2001 in the
U.S. Bankruptcy Court for the District of Delaware. Laura Davis
Jones, Esq. at Pachulski, Stang, Ziebl, Young & Jones P.C.
represents the Debtor on its restructuring efforts.


PSINET INC: Enters Into Settlement Agreement With The Ravens
------------------------------------------------------------
PSINet Stadium is the name of the Stadium of the Ravens (the
National Football League team) located in the Camden Yards
Sports Complex in Baltimore, Maryland, pursuant to a Stadium
Naming Rights Agreement that PSINet and The Ravens entered into
in early 1999. The Stadium Naming Rights Agreement relates
essentially to naming of the Stadium as PSINet Stadium, and the
associated promotional presentation of the Stadium name (e.g.,
by architectural and road signage as well as use of the full
Stadium name in Ravens media material).

In addition, PSINet is the primary sponsor of the stadium
pursuant to the Sponsorship Agreement which essentially relates
to a comprehensive print, radio and television advertising
program for PSINet. A Private Suite License Agreement grants
PSINet a license for the use of two private suites at the
Stadium. These three Stadium Agreements (the Stadium Naming
Rights Agreement, the Sponsorship Agreement and the Private
Suite License Agreement) are referred to as the Stadium
Agreements.

In addition, PSINet and the Ravens are parties to an ISP
Agreement with an effective date of April 17, 1999, relating to
the provision of internet services to the Ravens.

The Debtors determined shortly after the Petition Date that none
of the three Stadium Agreements has a place in their business.
The Debtors also determined that the ISP Agreement has no place
in the scope of the Debtors' contemplated future operations and
its initial term expires very shortly, in April, 2002 (subject
to renewal). The Debtors further determined that the Suite
Agreement, the Sponsorship Agreement and the ISP Agreements are
not marketable and has no value for the PSINet debtors' estates.

The Debtors believe that of the Agreements, only the Naming
Rights Agreement has market value. However, they were unable to
obtain a buyer that was willing to take the litigation risk
inherent in the assignment of this Agreement upon the rejection
of the Sponsorship Agreement and Suite Agreement by PSINet due
to a cross-termination provision. Specifically, on rejection of
the Sponsorship Agreement, as intended by PSINet, a deemed
breach of the agreement arising prior to the Petition Date will
result. 11 U.S.C. Sec. 502(g) (1993). Should the Ravens seek to
exercise their right to terminate the Sponsorship Agreement on
the basis of this deemed breach, that termination is an event
giving rise to a potential right of cross-termination of the
Naming Rights Agreement. The presence of this potential right of
termination, which could be exercised at any time after the
rejection of the Sponsorship Agreement, prevents assumption and
assignment of the Naming Rights Agreement.

PSINet has elected an advance Present Value Payment for the
Naming Rights Agreement, paying $9,250,000 on or about February
1, 1999. The total remaining scheduled payments for the
Sponsorship Agreement and Suite Agreement for a twenty-year
period are approximately $67 million and $9.3 million,
respectively. PSINet last made a payment in March, 2001, in the
amount of $378,560 and $2,407,040 under the Suite and
Sponsorship Agreements, respectively. While these payments were
within the 90-day preference period prior to the Petition Date,
PSINet will not seek to recover them pursuant to Section 547 of
the Bankruptcy Code, because of the global settlement with the
Ravens.

                  The Settlement Agreement

In the exercise of their business judgment, the Debtors have
determined to enter into a Settlement Agreement with the Ravens
which provides in its essential terms the following, subject to
approval of the Court:

The Ravens shall:

(a) pay $5,900,000.00 to the Debtors, and

(b) waive all payments due from PSINet under the Sponsorship
     Agreement and the Suite License Agreement,

(c) grant a general release to PSINet, including

     (i)  from all rejection damage claims assertable by the
          Ravens, including claims in excess of $76 million
          arising under two agreements (the Sponsorship and
          Suite Agreements, described below), and

     (ii) from responsibility for removing PSINet signage at the
          Ravens' home Stadium (defined and described below),

In exchange, PSINet would

(1) reject all of its agreements with the Ravens, and

(2) grant a general release to the Ravens and will not undertake
     litigation against the Ravens relating to the
     assignability, independent of the other agreements between
     the parties, of PSINet's Stadium naming rights,

Pursuant to the Settlement Agreement, the Naming Rights
Agreement will be rejected as of the Effective Date defined in
the Agreement. However, if the Ravens fail to make the $5.9
million payment required by the Agreement, the Naming Rights
Agreement will not be rejected, but will be deemed amended to
clarify its terms (including that it can be freely sold and
assigned free of any cross-termination provision), and the
Ravens will not interfere with the assumption and assignment of
the Naming Rights Agreement.

To avoid any dispute regarding any potential administrative
claim, the Agreement disclaims that any aspect of the Agreement
constitutes an assumption of any of the agreements or the
entitlement to an administrative claim.

In their business judgment, the Debtors have determined that the
Settlement Agreement is fair and equitable, is in the best
interests of their creditors and estates, and represents the
most efficient resolution of these matters and recovery of funds
for the benefit of the Debtors' estates.

The Debtors tell Judge Gerber that the Settlement falls well
within the range of reasonableness in view of the value to the
PSINet estate of the $5.9 million payment, the waiver of
rejection claims totaling potentially over $76 million, and the
avoidance of litigation risk, delay and expense.

Therefore, the Debtors request entry of an order,

(a) approving the Settlement Agreement,

(b) approving the rejection of the Stadium and ISP Agreements
     pursuant to Section 365(a) of the Bankruptcy Code on the
     terms set forth in the Agreement, and

(c) granting such other and further relief as is just and proper
     under the circumstances.

The Debtors tell Judge Gerber they have reviewed the principal
terms of the Agreement with counsel to the Committee, and have
been informed that the Committee does not oppose the relief
sought in this Motion. (PSINet Bankruptcy News, Issue No. 15;
Bankruptcy Creditors' Service, Inc., 609/392-0900)   


RECREATION USA: Falls Short of Nasdaq's Listing Requirements
------------------------------------------------------------
Holiday RV Superstores, Inc. (Nasdaq: RVEE), a recreational
vehicle dealership chain doing business as Recreation USA,
announced that it has received a letter from The Nasdaq Stock
Market, Inc. indicating that Holiday has failed to comply with
the minimum $15 million market value of publicly held shares and
the minimum $3.00 bid price-per-share requirements of Nasdaq
Marketplace Rules 4450(b)(3) and 4450(b)(4).

If Holiday does not regain compliance on or before May 15, 2002,
its common stock will be subject to delisting from the Nasdaq
National Market. Until May 15, 2002, Holiday's common stock will
continue to trade on the Nasdaq National Market.  If its
securities are delisted, Holiday may request a hearing before a
Nasdaq Listing Qualifications Panel to review the staff
determination, or it may apply to transfer its common stock to
the Nasdaq SmallCap Market.  If Holiday chooses to appeal the
staff determination, there can be no assurance that the appeal
will be successful, nor can there be any assurance that its
securities will be approved for listing on the Nasdaq SmallCap
Market if it applies for a transfer.

                    About Recreation USA

Recreation USA operates retail stores in California, Florida,
Kentucky, New Mexico, South Carolina, Virginia and West
Virginia.  Recreation USA, the nation's only publicly traded
national retailer of recreational vehicles and boats, sells,
services and finances more than 90 RV and 13 boat brands.


ROYAL PRECISION: Shares Trade On OTCBB After Nasdaq Delisting
-------------------------------------------------------------
Royal Precision, Inc. (Nasdaq: RIFL) received a Nasdaq Staff
Determination dated February 15, 2002.  The letter indicates
that the Company did not comply with either the minimum net
tangible assets or minimum stockholders' equity set forth in
Marketplace Rule 4450(a)(3).

The Company would not appeal the Staff Determination as the
Company does not anticipate that it would meet the above
referenced Nasdaq National Market standards or the applicable
Nasdaq SmallCap market value of publicly held shares ("MVPHS")
standard within the times required.  As such, the Company's
common stock were delisted from The Nasdaq National Market at
the opening of business on February 25, 2002.  However, the
Company intends to pursue one or more market makers to quote its
common stock on the OTC Bulletin Board commencing with the
opening of business on February 25, 2001 under the ticker symbol
(OTC.BB: RIFL).  The OTC Bulletin Board is a regulated quotation
service that displays real-time quotes, last-sales prices, and
volume information in over-the-counter securities.  Information
regarding the OTC Bulletin Board can be found on the Internet at
www.otcbb.com

Royal Precision, Inc. is a leading designer, manufacturer and
distributor of high-quality innovative golf club shafts,
including the Rifle shaft featuring the Company's "Frequency
Coefficient Matching" technology, or "FCM," designed to provide
consistent flex characteristics to all the clubs in a golfer's
bag.  Royal Precision, Inc. is also a designer and distributor
of Royal Grip(R) golf club grips offering a wide variety of
standard and custom models, all of which feature durability and
a distinctive feel and appearance.


SKYNET TELEMATICS: Commences Voluntary Liquidation Proceedings
--------------------------------------------------------------
Skynet Telematics, Inc. (OTCBB symbol: SKYI) announced that it
has commenced voluntary liquidation proceedings for its wholly-
owned UK subsidiary, Skynet Telematics Ltd.

Skynet Telematics Ltd. marketed and sold integrated modular
advanced automotive telematic systems for the automotive
business in the United Kingdom and Europe under the brand name
Skamp.  The products sold were essentially a box containing a
GPS engine, a GSM chipset or module, microprocessor and
software.  These items were assembled in the box and mounted on
printed circuit boards. Skynet also provided monitoring and
information services through monitoring service centers in
London, England and Banska Bystrica, Slovakia.  The products
sold by Skynet could only be monitored by a Skynet monitoring
service center or a service provider who entered into a
monitoring agreement with Skynet. Skynet charged a fee for the
product and also charged additional monthly or annual monitoring
fees, varying depending upon the services the customer selected.


STARTEC GLOBAL: Trustee Appoints Unsecured Creditors Committee
--------------------------------------------------------------
The United States Trustee appoints these creditors to serve on
the Official Committee of Unsecured Creditors in Startec Global
Communications Corporation and its debtor-affiliates' chapter 11
cases:

      A. Interim Chair, First Union National Bank
         Corporate Trust c/o Patricia Welling
         800 E. Main Street - VA3279
         Richmond, Virginia 23219
         Tel: 804 343 6067         Fax: 804 343 6699

      B. Romulus Holdings, Inc. c/o Gary Singer
         25 Coligni Avenue
         New Rochelle, New York 10801
         Tel: 914 235 8800         Fax: 914 235 8849

      C. Videsh Sanchar Nigam Ltd. c/o Paul John
         Videsh Sanchar Dhaven
         Mahatma Gandhi Road, Mumbai - 400 001, India
         Tel: +91 22 262 40 87     Fax: +91 22 269 60 52

      D. Genuity Solutions, Inc. c/o Nicole Morkun
         2510 West Dunlap Avenue, Suite 500
         Phoenix, Arizona 85021         
         Tel: 602 749 6385         Fax: 602 749 6110

      E. Concert Communications c/o Scott Christensen
         N490-W004, 412 Mt. Kemble Ave.
         Morristown, NJ 07962
         Tel: 973 644 1284         Fax: 973 644 1033

      F. Nortel Networks c/o Trevor Jones
         8200 Dixie Road, Suite 100
         Brampton, Ontario, Canada L6T 5P6
         Tel: 905 863 4342         Fax: 905 863 8262

      G. TTI Team telecommunications c/o Ami Reshef
         2 Hudson Place, 6th Floor
         Hoboken, NJ 07030
         Tel: 201 795 3883         Fax: 201 795 0840

Startec Global Communications Corporation, provides
international phone service to ethnic customers in emerging
economies. Together with two of its affiliates, the Company
filed for chapter 11 protection on December 14, 2001 in the U.S.
Bankruptcy Court for the District of Maryland. Philip D. Anker,
Esq. represent the Debtors in their restructuring efforts.


STATIA TERMINALS: Shareholders Approve Sale of Assets To Kaneb
--------------------------------------------------------------
Statia Terminals Group N.V. (Nasdaq:STNV) relates that its
shareholders have approved (i) the sale of substantially all of
the assets of the Company consisting of the stock of its three
subsidiaries (Statia Terminals International N.V., Statia
Technology, Inc., and Statia Marine, Inc.) to Kaneb Pipe Line
Operating Partnership, L.P., a limited partnership which is
affiliated with Kaneb Pipe Line Partners, L.P. (NYSE:KPP), (ii)
an amendment to the Company's Articles of Incorporation
implementing a distribution mechanism for the proceeds of the
sale, and (iii) the subsequent liquidation of the Company. It is
anticipated that the sale transaction will close on or about
February 28, 2002, and that distributions will be paid shortly
after closing to shareholders of record on the date of the
closing of the sale. Statia's class A common shares will be
delisted from the Nasdaq National Market and Statia's transfer
agent will cease recording transfers of the shares at the end of
trading on the day that the sale transaction is closed.

Statia provides storage, blending, processing, and other marine
terminaling services for crude oil, refined products, and other
bulk liquids to crude oil producers, integrated oil companies,
traders, refiners, petrochemical companies, and others at its
facilities located on the island of St. Eustatius, Netherlands
Antilles, and at Point Tupper, Nova Scotia, Canada. The
Company's facilities, with their deep-water ports, can
accommodate substantially all of the world's largest oil
tankers. In connection with its terminaling activities, Statia
also provides value-added services, including delivery of bunker
fuels to vessels, other petroleum product sales, emergency and
spill response services, and ship services. The Company is
headquartered in Curacao, Netherlands Antilles, and maintains an
administrative office in Deerfield Beach, Florida.


SUNSHINE MINING: Needs More Funds To Continue Operations
--------------------------------------------------------
Sunshine Mining and Refining Company (OTCBB:SSMR) announced the
substantial completion of the mothballing and securing of its
Sunshine Mine in northern Idaho and the placing of the Pirquitas
Mine in northern Argentina on reduced care and maintenance.

As a result of continued depressed silver prices, Sunshine was
unable to recommence any of its operations at its Idaho or
Argentine properties and used proceeds of its credit facility to
secure the properties and place them in a position for future
reopening or sale to third parties.

As of October 3, 2001, Sunshine had borrowed the full $6.5
million commitment under its credit facility. Since that time,
Sunshine's only source of funds has been from the sale of assets
released from its lenders' security interest and from optional
advances from its lenders. Debt to its secured lenders is now
approximately $7.4 million and Sunshine has no income from
operations.

Sunshine's employees have been reduced to six full-time and
three part-time persons, most of whom are involved in providing
security at the mine properties and administrative functions. It
is expected that the Company's employees will be reduced further
and that there may not be any full-time employees if it does not
obtain additional financing in the near future.

The Company was named a defendant in a purported class action in
Idaho against the Company, its mining subsidiary and other
mining companies in the Coeur d'Alene mining district in which
the plaintiffs seek to have the mining companies fund and
administer a blood level monitoring program for citizens in the
Coeur d'Alene basin and for damages for an alleged trespass to
property due to the depositing of minerals from mining
operations into the environment. The Company believes the suit
to be without merit and that the alleged claims were discharged
by the Company's bankruptcy effective February 5, 2001.

The Company expects to be able to continue in this severely
curtailed state only if its lenders continue to make optional
advances or if silver prices rise to such levels that other
financing alternatives would become available to the Company or
if its Argentina and Idaho properties are sold to a third party.

Sunshine Mining news releases and information can be accessed on
the Internet at http://www.sunshinemining.com


SUPREMA SPECIALTIES: Case Summary & Largest Unsecured Creditors
---------------------------------------------------------------
Lead Debtor: Suprema Specialties, Inc.
             510 East 35th Street
             Paterson, NJ 07543

Bankruptcy Case No.: 02-10823

Debtor affiliates filing separate chapter 11 petitions:

Entity                                     Case No.
------                                     --------
Suprema Specialties West, Inc.             02-10824
Suprema Specialties Northeast, Inc.        02-10825
Suprema Specialties Northwest Inc.         02-10826

Type of Business: The Debtor, together with its
                  petitioning subsidiaries (collectively,
                  the "Debtors"), manufacture and market
                  gourmet, all natural Italian cheeses.
                  The Debtors' product lines consist primarily
                  of mozzarella, ricotta, parmesan, romano and
                  provolone cheeses, which are produced
                  domestically, as well as parmesan and
                  pecorino romano cheeses, which are imported.

Chapter 11 Petition Date: February 24, 2002

Court: Southern District of New York

Debtors' Counsel: Andrew B. Eckstein, Esq.
                  Blank Rome Tenzer Greenblatt LLP
                  405 Lexington Avenue
                  New York, NY 10174
                  (212) 885-5000
                  Fax : (212) 885-5002

                  Michael Z. Brownstein, Esq.
                  Blank Rome Tenzer Greenblatt LLP
                  405 Lexington Avenue
                  New York, NY 10174
                  (212) 885-5000
    
Total Assets: $203,132,000 (book value)

Total Debts: $146,647,000

Debtor's 20 Largest Unsecured Creditors:

Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
Albion Alliance LLC         Subordinated debt      $8,500,000
Attn: William Gobbo, Jr.
135 W. 50th St., 6th Fl.
New York, NY 10020

St. Charles Trading, Inc.   Trade debt             $2,307,150
19 Hawk Ridge Circle
Lake St. Louis, MO 63366


Equitable Life Ins. Soc.    Subordinated debt      $2,000,000
of US
c/o Alliance Capital Mgmt, LP
1345 Ave of Americas, 41st Fl.
New York, NY 10105


California Milk Market      Trade debt             $1,818,775
1429 Stanislaus Street
Escalon, CA 95320

Northco Milk Sales          Trade debt             $1,678,430
49 Jameson Road
Canton, NY 13617

Irish Dairy Board, Inc.     Trade debt             $1,201,585
825 Green Bay Road
Wilmette, IL 60091

Refrig-It                   Warehouse rental         $716,633
Bldg 8- River Terminal
Hackensack Ave.
Kearny, NJ 07032

Whitehall Specialties       Trade debt               $346,275
36120 Owen Street
Whitehall, WI 54773


Cryovac Sealed Air          Trade debt               $304,682
Corporation
P.O. Box 406450
Atlanta, GA 30384-6450

Jim Aartman, Inc.           Trade debt               $142,405

Williamette Industries,     Trade debt               $135,424
Inc.

Alliance Shippers, Inc.     Trade debt               $123,472

PNC Leasing, LLC            Lease                     $79,638

Rhodia, Inc.                Trade debt                $73,851

BDO Seidman                 Services                  $72,065

Aries Tek, Ltd.             Trade debt                $68,191

Shepard Bros.               Trade debt                $63,047

Airlite Plastics Company    Trade debt                $53,782

Vista International Ins.    Pre-paid workers          $52,229
Brks.                       compensation

CIT Financial               Interest - Capital        $49,407
                             leases


SWEET FACTORY: Court Fixes Claims Bar Date on April 1, 2002
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware fixes
April 1, 2002 as the deadline for filing proofs of claim against
Sweet Factory Group, Inc. and its debtor-affiliates.  Each
person or entity and governmental units, wishing to assert pre-
petition claims against the Debtors shall file a written proof
of claim not later than 4:00 p.m. on April 1, 2002 and submit it
to:

         Robert Berger & Associates, LLC
         Agent for the U.S. Bankruptcy Court
         re: Sweet Factory Group, Inc.
         10351 Santa Monica Boulevard, Suite 101A
         PMB 1018, Los Angels
         California 90025

Entities failing to file proofs of claims on or before the
Claims Bar Date shall be forever barred from asserting any claim
against the Debtors or their estates.

Sweet Factory Group Inc. filed for chapter 11 protection on
November 15, 2001 in the U.S. Bankruptcy Court for the District
of Delaware. Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl
Young & Jones, represents the Debtors in their restructuring
efforts.


SWEET FACTORY: Committee Taps BDO Seidman as Financial Advisors
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
the retention of BDO Seidman, LLP as the Financial Advisor for
the Official Committee of Unsecured Creditors appointed in Sweet
Factory Group, Inc.'s chapter 11 cases.  

The Committee says that employing BDO as its financial advisors
will minimize fees by benefiting in the firm's experienced and
knowledgeable personnel.

The professional services that BDO shall render to the Committee
are:

    a) analyze the current financial position of the Debtor;

    b) analyze the Debtor's business plans, cash flow
       projections, restructuring programs and other reports or
       analyses prepared by the Debtor or its professional in
       order to advise the Committee on the viability of the
       continuing restructuring programs and other reports or
       analyses prepared by the Debtor or its professionals in
       order to advise the Committee on the viability of the
       continuing operations and the reasonableness of
       projections and underlying assumptions;

    c) analyze the financial ramifications of proposed
       transactions for which the Debtors seeks bankruptcy Court
       approval including DIP, financing, assumption/rejection
       of leases, management compensation/retention plans;

    d) analyze the Debtor's internally prepared financial
       statements and related documentation, including store
       level operating results, in order to evaluate the
       performance of the Debtor as compared to its projected
       results;

    e) attend and advise at meetings with the Committee, its
       counsel and representative of the Debtor;

    f) assist and advise the Committee and its counsel in the
       development, evaluation and documentation of any plan of      
       reorganization or strategic transactions;

    g) render expert testimony on behalf of the Committee; and

    h) provide such other services, as requested by the
       Committee and agreed by BDO.

Sweet Factory Group Inc. filed for chapter 11 protection on
November 15, 2001 in the U.S. Bankruptcy Court for the District
of Delaware. Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl
Young & Jones, represents the Debtors in their restructuring
efforts.


TALK AMERICA: Commences Exchange Offer for Convertible Sub Notes
----------------------------------------------------------------
Talk America (NASDAQ: TALK), an integrated communications
provider, announced that it is offering to exchange up to $61.8
million principal amount of its currently outstanding 4 1/2%
Convertible Subordinated Notes due September 2002 and up to
$18.1 million principal amount of its currently outstanding 5%
Convertible Subordinated Notes due December 2004.

In conjunction with the exchange offers, the company is also
soliciting holders to consent to the proposed amendment to the
indenture governing the existing notes.

"As we have stated before, our primary goal is to restructure
our outstanding obligations and provide a stable capital
structure," stated Gabe Battista, Chairman and CEO of Talk
America. "We purchased $5.0 million of the 4 1/2% Convertible
Subordinated Notes in privately negotiated transactions in
December 2001 and through these exchange offers we are seeking
to further restructure our debt. These exchange offers should
reduce our outstanding short-term liabilities and expand the
range of financing alternatives available to the company."

Under the terms of the 4 1/2% Convertible Subordinated Notes
exchange offer, Talk America is offering two exchange options:

     --  $1,000 in principal amount of new 10% Senior
Subordinated Notes due August 2007 in exchange for each $1,000
principal amount of the existing 4.5% Convertible Subordinated
Notes due September 2002 that are tendered; or

     --  $600 in principal amount of new 8% Convertible Senior
Subordinated Notes due August 2007, convertible into common
stock, at $5.00 per share, and $100 in cash, in exchange for
each $1,000 in principal amount of the existing 4 1/2%
Convertible Subordinated Notes due September 2002 that are
tendered.

Under the terms of the 5% Convertible Subordinated Notes
exchange offer, Talk America is offering:

     --  $1,000 in principal amount of the new 10% Senior
Subordinated Notes due August 2007 in exchange for each $1,000
principal amount of the existing 5% Convertible Subordinated
Notes due December 2004.

The Company intends to pay accrued interest on the exchanged
securities in cash upon completion of the exchange offers.

As part of the exchange offers, Talk America is soliciting
consents from current note holders to proposed amendments to the
existing indentures to remove the obligation to repurchase the
notes on the occurrence of certain designated events.

Under both exchange offers, a holder's tender of existing notes
for exchange will constitute a consent to the proposed
amendment. You may also consent without tendering any existing
notes for exchange.

The Company must receive consents from holders of more than 50%
in total principal amount outstanding of an issue of the
existing notes in order to amend the indentures for such issue.

Holders of the Talk America 4 1/2% Convertible Subordinated
Notes due September 2002 and the 5% Convertible Subordinated
Notes due December 2004 will receive an offering circular
outlining the details of the exchange by mail. If you hold your
existing notes through a broker/dealer, you must contact the
broker/dealer if you desire to tender your existing notes.

If you hold the notes yourself, you must complete and sign the
Letter of Transmittal and Consent included in the offering
circular. The exchange offers are expected to expire at 5:00
P.M., New York City Time, on March 21, 2002, unless extended or
earlier terminated, and to close promptly after such expiration
date.

Talk America may terminate the exchange offers at any time.
Holders of the above listed securities may call Georgeson
Shareholder, the information agent, at (866) 649-8026 for
additional information.

The exchange offers are subject to a number of customary
conditions, some of which Talk America may waive, are
independent of each other and are not conditioned upon the
exchange of a minimum principal amount of existing notes.

                   About Talk America

Talk America is an integrated communications provider marketing
a bundle of local and long distance services to residential and
small business customers utilizing its proprietary "real-time"
online billing and customer service platform. Talk America has
added local service to its offerings, after ten years as a long
distance provider.

The Company delivers value in the form of savings, simplicity
and quality service to its customers based on the efficiency of
its low-cost, nationwide network and the effectiveness of its
systems that interface electronically with the Bell Operating
Companies. For further information, visit the Company online at
http://www.talk.com.


VIATEL INC.: Court Extends Exclusive Period Through March 30
------------------------------------------------------------
To assist Viatel Inc. in its efforts to reorganize or maximize
the value of its estate, the U.S. Bankruptcy Court for the
District of Delaware extended the Debtors' exclusive periods to
file a plan through March 30, 2002 and granted an extension of
the Company's solicitation period through May 29, 2002.

Viatel, through its domestic and foreign subsidiaries, is the
builder, owner and operator of a state-of-the-art, pan-European,
trans-Atlantic and metropolitan fiber-optic network and a
provider of advanced telecommunications products and services to
corporations, carriers, Internet service providers, and
applications service providers in Europe and North America. The
Company filed for chapter 11 protection on May 2, 2001. Gregg M.
Galardi, Esq. and D. J. Baker, Esq. at Skadden, Arps, Slate,
Meagher & Flom LLP represent the Debtors in their restructuring
effort. When the Company filed for protection from its
creditors, it listed $2,124,000,000 in assets and $2,683,000,000
in debts.


* Claims Resolution Launches New Asbestos e-Claims Service
----------------------------------------------------------
Claims Resolution Management Corporation (CRMC), a pioneer in
asbestos claims resolution, unveiled e-Claims(TM), the first
interactive, Web-based tool to provide business intelligence and
electronic claims handling services to resolve the growing
number of asbestos-related injury claims.

e-Claims allows corporations, trusts and law firms to more
easily, accurately and cost-effectively navigate all stages of
the time-consuming and complex asbestos claims process and to
help victims receive settlements in a timely manner.

"We are happy to offer our wealth of experience and data to
defendants and law firms struggling with asbestos claims
litigation, which is exploding," said David Austern, CRMC's
President and General Counsel as well as a widely quoted
asbestos claims expert. "Our unparalleled expertise, coupled
with the unique e-Claims system, allows us to process more
claims more affordably and effectively than anyone else."

A subsidiary of the Manville Personal Injury Settlement Trust,
CRMC has unique experience guiding corporations, trusts and law
firms through the entire claims resolution process, having
administered more than half a million asbestos claims and paid
claimants over $2.7 billion.

Staffed mainly by former Manville Trust employees, most of whom
have over a decade of experience, CRMC provides claims
processing and alternative dispute resolution services for
clients including the PACOR, Eagle-Picher and UNR trusts.

CRMC also sells claims data and analysis to asbestos defendants,
claimants, and financial institutions and insurance companies
interested in tracking asbestos claims issues. CRMC's profits
are channeled back into the Trust and go to asbestos victims.

e-Claims solutions allow CRMC's clients to optimize cash flow,
reduce the costs of claims processing and payments, and manage
assets and liabilities effectively, a critical issue to ensure
funds continue to be available for all victims entitled to
compensation.

e-Claims is not only administratively less expensive than a
paper-based claims system, but it is also faster and permits
audit of an almost limitless number of claims.

Services include automated online claims processing, advisory
services, alternative dispute resolution, business intelligence,
seminars, claims matching services, bulk claims processing,
forecasting, treasury services and access to CRMC's data.

With a growing number of companies, including more than 20
Fortune 500 corporations, threatened by bankruptcy due to toxic
tort litigation, and with forecasters estimating more than a
million asbestos claims to come, CRMC's services are
increasingly necessary and valuable.

According to the American Academy of Actuaries, estimates of
personal injury-related costs from asbestos exposure of the U.S.
population range from $200 to $275 billion. At year-end 2000,
U.S. insurers and reinsurers had paid approximately $22 billion
for this liability.

e-Claims is also available for other settlements involving
thousands of victims, whether in the securities industry or
other toxic torts similar to asbestos.

CRMC and actuarial and management consulting firm Tillinghast-
Towers Perrin will address the asbestos crisis with a one-day
seminar, "The $200 Billion Question: Understanding the Financial
Impacts of Asbestos Litigation," to be held March 26 in New York
City. For more information, please contact Angela A. Alexander
at 623-856-5145 or alexana@towers.com.

        About Claims Resolution Management Corporation

Claims Resolution Management Corporation, a pioneer in asbestos
claims processing, guides trusts and law firms through all
stages of the claims resolution process for asbestos and other
toxic tort personal injury claims, contribution claims, and
indemnity claims. CRMC has processed more than a half-million
claims and has paid claimants over $2.7 billion.

e-Claims(TM) is the first interactive, Web-based tool to provide
business intelligence and electronic claims handling services,
which encompass everything from litigation and structuring of a
trust to injury categorizations, claims forecasting and
financial management.

CRMC was created in 1999 as a separate entity to handle claims
processing for the Manville Personal Injury Settlement Trust
(the Trust), formed in 1989 after the bankruptcy of the Johns-
Manville Corporation, the largest asbestos producer in the
United States.

Staffed by former Trust employees, CRMC provides clients such as
the PACOR, Eagle-Picher and UNR trusts with the knowledge,
expertise, extensive data and solutions gained from 14 years'
experience processing asbestos claims. CRMC's profits are
channeled back into the Trust and go to asbestos victims. For
more information, see http://www.claimsres.com



                           *********

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

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

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

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Copyright 2002.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
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                  *** End of Transmission ***