TCR_Public/020307.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

             Thursday, March 7, 2002, Vol. 6, No. 47     

                          Headlines

ANC RENTAL: 6th Cash Collateral Order Runs through April 5
AMAZON.COM: CFO Warren Jenson Set to Resign Later This Year
ARMSTRONG HOLDINGS: Taps Four Asbestos Property Damage Experts
AUTHORISZOR INC: Falls Short of Nasdaq Listing Requirements
AUDIO VISUAL SERVICES: Emerges from Chapter 11 Restructuring

BRIGHTSTAR INFORMATION: Going-After New Long-Term Financing
CJF HOLDINGS: Trustee Appoints McShane as Liquidation Consultant
CARIBBEAN PETROLEUM: Panel Taps Mahoney Cohen as Fin'l Advisors
CHIQUITA BRANDS: Court OKs Ernst & Young for Auditing Services
CLASSIC COMMS: Court Okays Petrie Parkman as Panel's Advisors

COLONIAL ADVISORY: S&P Downgrades Class B Notes Rating to B-
CONDOR TECHNOLOGY: Full-Year 2001 EBITDA Loss Reduced to $400K
CONOCO CANADA: Wins Consents to Amend Senior Note Indentures
ELECTRIC LIGHTWAVE: Pinnacle Assoc. Discloses 5.09% Equity Stake
ENRON CORP: Seeks Approval of $5.6MM Break-Up Fee for GE Power

FEDERAL-MOGUL: Court Okays E.D. Green as Future Claimants' Rep.
FISHER COMMS: George Fisher Warren Jr. Discloses 9% Equity Stake
GARDENBURGER INC: Posts Improved Results for 2002 First Quarter
GAYLORD CONTAINER: Temple-Inland Deal Forces S&P's 'SD' Rating
GENERAL BINDING: S&P Affirms B+ Rating with Negative Outlook

GLOBAL CROSSING: Court Allows Debtor to Pay Prepetition Taxes
GLOBIX CORP: Intends to Pay Prepetition Employee Obligations
GUILFORD MILLS: Will File Chapter 11 to Restructure $370MM Debt
HCC INDUSTRIES: Feeble Financial Profile Spurs S&P's Junk Rating
HAYES LEMMERZ: Intends to Implement Employee Retention Plan

IKS CORP: Court Fixes April 1 Bar Date for Proofs of Claim
INTEGRATED HEALTH: Premiere Committee Taps Baynard as Co-Counsel
ITEX CORPORATION: Posts Improved Q2 Results After Restructuring
KAISER ALUMINUM: UST Appoints Unsecured Creditors' Committee
KITTY HAWK: Seeking Approval of Plan & Disclosure Statement

KMART CORP: Standard Federal Pushing For $18-Million Set-Off
LENNAR CORPORATION: S&P Affirms BB+ Corporate Credit Rating
MCMS: Committee Wins Nod to Employ Walsh Monzack as Co-Counsel
MARCHFIRST: Selling Sequoia Interest to Champion for $1.9 Mill.
MEDCOMSOFT INC: Reduces Cash Burn Rate through Temporary Layoffs

METALS USA: Committee Members May Continue Securities Trading
NATIONAL STEEL: Files For Chapter 11 Protection In N.D. Illinois
NATIONAL STEEL: Case Summary & 50 Largest Unsecured Creditors
NETIA HOLDINGS: Reaches Agreement on Debt Restructuring Terms
NETIA HOLDINGS: Shareholders' Meeting Will Resume Tuesday

NOVO NETWORKS: DE Court Confirms Chapter 11 Liquidating Plan
OWENS CORNING: Court Extends Lease Decision Period to June 4
PACIFIC GAS: Wants to Appeal Express Preemption Immediately
PHARMCHEM INC: Violates Nasdaq Continued Listing Requirements
PILLOWTEX: Committee Has Until March 15 to Challenge Obligations

RENCO STEEL: KPMG Raises Going Concern Question After Losses
SAFETY-KLEEN: Committee Balks at Andersen's Engagement Expansion
SERVICE MERCHANDISE: Selling Store Lease Designation Rights
SHILOH INDUSTRIES: Continuing Initiatives to 'Right-Size' Ops.
STEEL DYNAMICS: S&P Rates Corporate Credit Rating at BB-

STELLAR FUNDING: S&P Hatchets CBO's Ratings to Junk Level
SUN HEALTHCARE: Resolves THCI's Concerns Re Secured Claims
SWAN TRANSPORTATION: Engages Reed Smith as Bankruptcy Co-Counsel
TAUBMAN CENTERS: Fitch Concerned About Leasing & Financing Risks
TELESYSTEM INT'L: Swings-Up Q4 2001 EBITDA Results to $38 Mill.

VM LABS INC: Genesis Microchip Pitches Highest Bid for Assets
VECTOUR: Selling Perkiomen Assets to Longacre for $1.5 Million
W.R. GRACE: Exclusive Period Stretched to August 1, 2002
WABASH NATIONAL: Enters Pact to Refinance Revolver & Sr. Notes
WEIRTON STEEL: S&P Revises 'SD' Corporate Credit Rating to 'D'

WINSTAR COMMS: Trustee Seeks Approval of Employment Agreements
WIRELESS WEBCONNECT: Homemark, et. al., Disclose Equity Stake

* DebtTraders' Real-Time Bond Pricing

                          *********

ANC RENTAL: 6th Cash Collateral Order Runs through April 5
----------------------------------------------------------
Lehman Brothers Inc. and Lehman Brothers Commercial Paper Inc.,
renews its objection to ANC Rental Corporation and its debtor-
affiliates' continued use of cash collateral.

William P. Bowden, Esq., Ashby & Geddes LLP in Wilmington,
Delaware, states that Lehman is objecting to the Debtors' motion
for many reasons not the least of which is that the Debtors can
no longer demonstrate adequate protection of Lehman's security
interests.

Lehman tells the Court that it delivered discovery requests to
the Debtors about other pending motions.  The Debtors have
consistently failed to comply with Lehman's discovery requests.
If those motions are approved, they will have profound
detrimental economic consequences on Lehman's cash collateral.
Further, Lehman complains, the Debtors have failed to deliver a
detailed business plan and an analysis of the airport
consolidation strategy . . . which is critical to Lehman's
ability to analyze the Debtors' economic future.

"Lehman requires that the Debtors provide Lehman with something
more substantive than mere projections to demonstrate that
Lehman is adequately protected," Mr. Bowden says.

Lehman is also troubled because it understands that the Debtors
have failed -- for weeks now -- to develop acquisition interests
expressed by others or solicit additional parties who may be
interested in some sort of acquisition process involving all or
part of the Debtors' businesses.  "Although the cases are more
than three months old, the Debtors have yet to demonstrate that
they have a viable business and have failed to pursue avenues
that Lehman believes will result in the maximization of value
for all interested parties," Mr. Bowden says.

                Congress Seeks Greater Protection

Congress Financial Corporation, as Administrative Agent, asks
the Court to grant the Debtors only a few more weeks to continue
using cash collateral, pending discovery of how well the Debtors
can provide adequate protection to their Lenders.

Mark Collins, Esq., at Richards Layton & Finger PA in
Wilmington, Delaware, tells the Court that Congress questions
the Debtors' assertions that the Lenders are adequately
protected against diminution in the value of their collateral.  
Congress fears that the equity cushion the Debtors point to may
evaporate quickly.

Congress sees that the Debtors accounts receivable and other
collateral items are rapidly deteriorating in value.  If the
Court permits this trend to continue in accordance with the
Debtors' own financial projections, without requiring them to
provide additional protection, it may ultimately result in
reduction of the Lenders' claims from an oversecured position to
an undersecured claim.

The most recent reports Congress received reveal that the
aggregate amount of the Debtors' accounts receivable has
deteriorated approximately $189,000,000 since the Petition Date.
Congress projects this will degenerate further because the
Debtors' representatives have testified before the Court that
the next several months will be the slowest time of the car
rental industry in terms of revenue generation.

Simply put, Mr. Collins says, Congress believes that the Debtors
cannot adequately protect its interests.  He continues that the
Debtors' modest adequate protection measures -- the cash
collateral balances' equity cushion and the payment of current
and quarterly fees charged under the Borrowing Base Facility --
are simply inadequate. This is especially true when the Debtors'
own financial reporting reflects substantial deterioration in
accounts receivable since the Petition Date.

Mr. Collins points out that Congress has already suggested to
the Debtors ways that they could adequately protect the Lenders'
interests.  These include pledging cash collateral to the
Administrative Agent for the benefit of the Lenders, in an
amount sufficient to fully collateralize the Debtors'
obligations in accordance with the terms and the formulae in the
Debtors' pre-petition financing agreements.

                  The Debtors Get the Money

Determining that the Debtors have a continuing compelling need
to use the Lenders' cash collateral, Judge Walrath entered a
Sixth Cash Collateral Orders granting ANC continued interim
authority to use their Secured Lenders' cash collateral and
granting those lenders postpetition dollar-for-dollar
replacement liens through April 5, 2002. (ANC Rental Bankruptcy
News, Issue No. 9; Bankruptcy Creditors' Service, Inc., 609/392-
0900)


AMAZON.COM: CFO Warren Jenson Set to Resign Later This Year
-----------------------------------------------------------
Amazon.com, Inc. (Nasdaq:AMZN) announced that Warren Jenson,
Amazon.com's Chief Financial Officer, intends to resign later
this year.

Mr. Jenson has served as the Company's CFO since September 1999.

"Warren was instrumental in helping the company surpass its
fourth quarter objectives, and we thank him for his leadership,"
said Jeff Bezos, Amazon.com founder and CEO. "He has also
assembled a world-class finance team and has worked to establish
a clear path for our Company to reach our 2002 objective of
generating positive operating cash flow -- and possibly even
free cash flow -- for the year. All of us at Amazon have enjoyed
working with Warren, and we will miss him when he leaves."

Mr. Jenson added, "I took this position with the objective of
working with Jeff and the management team to bring Amazon.com to
profitability. While the decision to leave is a difficult one--
it's the appropriate time for me to move on to a new set of
challenges. I am grateful to Jeff and the entire Amazon.com
family for a wonderful opportunity and experience."

Mr. Jenson has agreed to continue in his duties for several
months and to assist Amazon.com in recruiting his successor.

Amazon.com opened its virtual doors on the World Wide Web in
July 1995 and today offers Earth's Biggest Selection. Amazon.com
seeks to be the world's most customer-centric company, where
customers can find and discover anything they might want to buy
online. Amazon.com and sellers list millions of unique new and
used items in categories such as electronics, computers, kitchen
and housewares, books, music, DVDs, videos, camera and photo
items, toys, baby and baby registry, software, computer and
video games, cell phones and service, tools and hardware, travel
services, magazine subscriptions and outdoor living products.
Through Amazon Marketplace, zShops and Auctions, any business or
individual can sell virtually anything to Amazon.com's millions
of customers, and with Amazon.com Payments, sellers can accept
credit card transactions, avoiding the hassles of offline
payments. Amazon.com also offers the Amazon Credit Account, the
online equivalent of a department store credit card, which
provides shoppers the opportunity to buy now and pay later when
shopping at Amazon.com.

Amazon.com operates four international Web sites:
www.amazon.co.uk, www.amazon.de, www.amazon.fr and
www.amazon.co.jp. It also operates the Internet Movie Database
(www.imdb.com), the Web's comprehensive and authoritative source
of information on more than 300,000 movies and entertainment
titles and 1 million cast and crew members dating from the birth
of film.

                         *   *   *

Amazon's balance sheet at December 31, 2001, shows that the
company is insolvent, with liabilities exceeding assets by $1.4
billion.  

Amazon's 4.75% Convertible Subordinated Notes due 2009
(convertible into the Company's common stock at the holders'
option at a conversion price of $78.0275 per share, subject to
adjustment in certain events) continue to trade in the high-20's
and low-30's.  DebtTraders reports that Amazon.com Inc.'s 6.875%
convertible bonds due 2010 (AMZN10USN1) are trading between 50
and 55. The 6.875% Notes are Euro-demonimated PEACS (a formerly-
trademarked acronym meaning PrEmium Adjustable Convertible
Securities), convertible into the Company's common stock at a
conversion price of 84.883 Euros per share.  See
http://www.debttraders.com/price.cfm?dt_sec_ticker=AMZN10USN1
for real-time bond pricing.  


ARMSTRONG HOLDINGS: Taps Four Asbestos Property Damage Experts
--------------------------------------------------------------
Walter T. Gangi, Armstrong's Assistant Secretary and Deputy-
General, and Counsel for Corporate and Intellectual Property,
asks Judge Randall J. Newsome for his approval and authorization
for AWI to employ four asbestos property damage experts.

AWI reminds Judge Newsome that in December 2000, the United
States Trustee for the District of Delaware appointed the
Official Committee of Unsecured Creditors and the Official
Committee of Asbestos Claimants.  In addition, in July 2001, the
Trustee appointed an Official Committee of Asbestos Property
Damage Claimants.

In December 2001, the PD Committee filed its application to
employ eight consultants in order to prove the scientific basis
and the epidemiological foundations of claims for asbestos
property damage from non-friable resilient flooring products.  
The Debtors opposed that application on various grounds.  As of
this date, no ruling has been issued on this Application,
although Judge Newsome has stated he would consider granting
this Application subject to budgetary considerations.

AWI continues to believe that the historical record speaks for
itself and that the PD Committee consultants are entirely
unnecessary.  In summary, AWI says the record shows that,
despite 20 years of property damage lawsuits, litigated
nationwide during intensive scientific investigation by federal
health agencies, resilient flooring products have never been
found to be a reason for serious health concerns, let alone the
cause of property damage.  Steadfast in its attempt to create
a constituency of claims that never existed prior to these
chapter 11 cases, the PD Committee "simply pretends that the
historical record does not exist," Mr. Gangi tells Judge
Newsome.  Indeed, the PD Committee has gone so far as to suggest
that resilient flooring property damage claims are completely
novel, having sprung forth postpetition because AWI's flooring
is no longer in good condition, but is significantly degraded
and damaged.  Hyperbole aside, the PD Committee essentially
wants the Court to believe that an epidemic of property damage
claims has laid dormant for decades, escaping the purview of the
plaintiffs' bar, the realty management industry, real estate
developers, lending institutions, property insurers, and
commercial building owners - not to mention scientists and
regulatory agencies concerned with occupational and
environmental health.  What's lacking and is needed now, as the
PD Committee acknowledges, is the "epidemiological foundations"
for such claims.  Mr. Gangi says "this is not science but is
claim shopping at the Debtors' expense".

Thus AWI continues to oppose the PD Committee's postpetition
efforts to manufacturer a scientific case of property damage and
believe that the 8 consultants selected by the PD Committee will
add little, if any, relevant and admissible information to the
existing scientific and regulatory record.  The Debtors,
however, understand that, consistent with the law that governs
resilient flooring property damage claims, Judge Newsome may
authorize the PD Committee to retain consultants for the purpose
of presenting evidence that AWI's resilient flooring products
have actually caused property damage to buildings at issue by
releasing harmful levels of asbestos into the air.

In response to the work to be performed by the PD Committee's
consultants, including any opinions that may be expressed based
on that work, the Debtors seek to retain their own experts in
order to be prepared to assist Judge Newsome in his assessment
and resolution of the alleged asbestos property damage claims.

                      1. Fowler Associates

Douglas  P. Fowler, Ph.D., C.I.H., is the owner and principal
consultant of Fowler Associates.  Dr. Fowler has been certified
since 1978 in the comprehensive practice of industrial hygiene
by the American Board of Industrial Hygiene.  He is a Fellow of
the American Industrial Hygiene Association, and has taught
numerous courses as a visiting lecturer and course director at
the University of California at Berkeley in the area of
industrial hygiene and issues related to asbestos.  Dr. Fowler
is a member of the American Society of Testing and Materials D22
Committee on Atmospheric Sampling and Analysis, and has served
on the California OSHA Advisory Committee on Asbestos.  He is a
registered Environmental Health Specialist as well as a
registered Environmental Assessor and Certified Asbestos
Consultant in California.

Dr. Fowler has previously been retained on AWI's behalf to
provide consultation and expert advice in asbestos property
damage cases involving resilient floor covering products.  Dr.
Fowler's duties include testimony concerning matters within the
scope of his expertise as related to the subject of exposure to
asbestos from AWI's resilient floor covering products, as well
as matters that may arise based on the work of or opinions
expressed by consultants retained by the PD Committee, asbestos
property damage claimants, and/or counsel for the putative class
action claimants.  Specifically, Dr. Fowler will be prepared to
observe and monitor whatever field work or laboratory
experiments any such consultants may conduct and will be
prepared to collect relevant environmental samples associates
with such work or experiments.  Dr. Fowlers will also be
prepared to inspect and report on the environmental conditions
of the buildings for which claimants allege asbestos property
damage.  Finally, Dr. Fowler will be prepared to address matters
uniquely within the scope of his asbestos expertise that may
relate to the estimation of asbestos property damage claims.  
Mr. Fowler's current hourly billing rate is $300.  In the normal
course of business the asbestos property damage experts revise
their regular hourly rates to reflect changes in
responsibilities, increased experience and increased costs of
doing business.  Accordingly, AWI asks that the rates of these
experts be revised to the regular hourly rates that will be in
effect at that time.  Changes in the asbestos property damage
experts' regular hourly rates will be noted on the invoice for
the first time period in which a revised rate becomes effective.

Douglas P. Fowler, owner and principal consultant of Fowler
Associates of Richmond, California, avers to Judge Newsome that
he is disinterested and neither holds nor represents any
interest adverse to the estates in the matters on which his
company is to be employed.  He is not a creditor of the Debtors,
nor does he hold any shares of the Debtors' stock.  Mr. Fowler
discloses that within one year before the commencement of these
cases, the Debtors paid Fowler Associates the sum of $2,690.03.

                     2. Price Associates, Inc.

Dr. Bertram Price is the president of Price Associates.  For
more than 20 years, he has analyzed environmental regulatory
issues, conducted studies and published articles concerning
environmental risk and risk management relating to a variety of
subjects, including asbestos in buildings.  For the United
States Environmental Protection Agency, he has designed studies
and interpreted data concerning asbestos exposure, risk
management, sampling of bulk materials, air monitoring and
clearance testing.  At EPA's request, he has served as a peer
reviewer for many EPA studies.  He was a principal author of the
report commissioned by the City of New York's Department of
Environmental Protection on the subjects of exposure and risk of
asbestos-containing materials in buildings.  He has testified
before OSHA in connection with its asbestos construction
standard regulatory revisions.  Dr. Price is a member of the
American Society of Testing and Materials Committee D11 on
Atmospheric Sampling and Analysis.

Dr. Price has previously testified as an expert witness on
behalf of AWI in asbestos property damage cases involving
resilient floor covering products.  AWI anticipates that Dr.
Price will be prepared to testify concerning matters within the
scope of his expertise as related to the subject of exposure to
asbestos from AWI's resilient floor covering products, as well
as matters that may arise based on the work of or opinions
expressed by consultants retained by the PD Committee, asbestos
property damage claimants, and/or counsel for the putative class
action claimants.  Dr. Price also will be prepared to address
matters uniquely within the scope of his asbestos expertise that
may relate to the estimation of asbestos property damage claims.

Mr. Price's standard and current hourly rate is $250.  In the
normal course of business the asbestos property damage experts
revise their regular hourly rates to reflect changes in
responsibilities, increased experience and increased costs of
doing business.  Accordingly, AWI asks that the rates of these
experts be revised to the regular hourly rates that will be in
effect at that time.  Changes in the asbestos property damage
experts' regular hourly rates will be noted on the invoice for
the first time period in which a revised rate becomes effective.

Bertram Price, Ph.D., the president of Price Associates of White
Plains, New York, tells Judge Newsome that he is disinterested
and neither holds nor represents any interest adverse to the
estates in the matters on which his company is to be employed.  
He is not a creditor of the Debtors, nor does he hold any shares
of the Debtors' stock.  Mr. Price discloses that within one year
before the commencement of these cases, the Debtors paid Price
Associates the sum of $12,190.58.

                        3. Dyanki, Inc.

Roger G. Morse is President and Technical Director of Dyanki,
Inc., which provides consulting services in the fields of
architecture, indoor air quality, forensic investigations, and
environmental issues in buildings, including specific services
relative to asbestos, toxic materials, indoor air, industrial
hygiene, environmental management and analytical laboratory
needs.

Mr. Morse has been involved in the specialized area of asbestos
evaluation and control since the late 1970s.  He received
training in asbestos at the Page and William Back Post-Graduate
School of Medicine of the Mt. Sinai School of Medicine and the
National Asbestos Training Center at the University of Kansas
and Georgia Institute of Technology and holds accreditations in
asbestos inspection, management planning and abatement design.  
Because of his expertise with respect to asbestos in buildings,
he has served in a number of unique positions and on several
professional committees and panels concerned with asbestos
issues.

With respect to the subject of asbestos in buildings, Mr. Morse
was appointed to serve as the representative of the
architectural community on the national committee of experts who
negotiated the drafting of the EPA's asbestos regulations
promulgated under the 1986 Asbestos Hazard Emergency Response
Act.  He is the principal author of the National Institute of
Building Sciences' "Asbestos Abatement and Management in
Buildings, Model Guide Specification".  Mr. Morse is a member of
the American Society for Testing Materials D22 Committee on  
Sampling and Analysis of Atmospheres and is the Chairman of the
Committee's work group responsible for developing a guidance
document covering, among other things, proper use of the
standard test method for sampling settled asbestos dust.

Mr. Morse has previously been retained on behalf of AWI in
asbestos property damage cases involving resilient floor
covering products to provide consultation and expert advice in
asbestos bodily injury and asbestos property damage cases.  AWI
anticipates that Mr. Morse will be prepared to testify
concerning matters within the scope of his expertise as related
to the subject of exposure to asbestos from AWI's resilient
floor covering products, as well as matters that may arise
based on the work of or opinions expressed by consultants
retained by the PD Committee, asbestos property damage
claimants, and/or counsel for the putative class action
claimants.  Mr. Morse also will be prepared to inspect and
report on the environmental conditions of the buildings for
which claimants allege asbestos property damage. Finally, Mr.
Morse will address matters uniquely within the scope of his
asbestos expertise that may relate to the estimation of asbestos
property damage claims.

Mr. Roger G. Morse's standard and current hourly rate is $175.  
In the normal course of business the asbestos property damage
experts revise their regular hourly rates to reflect changes in
responsibilities, increased experience and increased costs of
doing business. Accordingly, AWI asks that the rates of these
experts be revised to the regular hourly rates that will be in
effect at that time.  Changes in the asbestos property damage
experts' regular hourly rates will be noted on the invoice for
the first time period in which a revised rate becomes effective.

Mr. Morse, President and Technical Director of Dyanki of
Poestenkill, New York, advises Judge Newsome that he is
disinterested and neither holds nor represents any interest
adverse to the estates in the matters on which his company is to
be employed.  He is not a creditor of the Debtors, nor does he
hold any shares of the Debtors' stock.  Mr. Morse discloses that
within one year before the commencement of these cases, the
Debtors paid Dyanki the sum of $41,124.21

                     4. Dr. William E. Hughson

Dr. William E. Hughson, M.D., Ph.D., is Director of the
University of California at San Diego Center for Occupational
and Environmental Medicine and is a clinical professor of
medicine at the UCSD School of Medicine.  He also serves as the
Medical  Director for the UCSD Employee Health Program and is an
associate professor in the Division of Occupational and  
Environmental Health at the  San Diego State University Graduate
School of Public Health.  His areas of expertise include
epidemiology and internal, pulmonary and occupational medicine.
He is board certified in internal, pulmonary and occupational
medicine. Based on his medical training and professional
experience, he is familiar with the medical and scientific  
literature related to asbestos exposure, as well as reports
addressing the subject of asbestos exposure from asbestos-
containing materials in buildings, including resilient floor
covering products.

Dr. Hughes has previously testified as an expert witness on
behalf of AWI in asbestos property damage cases involving
resilient floor covering products.  AWI anticipates that Dr.
Hughson will be prepared to testify concerning matters within
the scope of his expertise as related to the subject of exposure
to asbestos from AWI's resilient floor covering products, as
well as matters that may arise based on the work of or opinions
expressed by consultants retained by the PD Committee, asbestos
property damage claimants, and/or counsel for the putative class
action claimants.  Dr. Hughson also will be prepared to address
matters within the scope of his expertise that may relate to the
estimation of asbestos property damage claims.

Dr. Hughson's hourly rate is $500.  He received no payments from
AWI within the twelve months preceding the Petition Date.

Dr. William B. Hughson advises Judge Newsome that he is
disinterested and neither holds nor represents any interest
adverse to the estates in the matters on which his company is to
be employed.  He is not a creditor of the Debtors, nor does he
hold any shares of the Debtors' stock. (Armstrong Bankruptcy
News, Issue No. 18; Bankruptcy Creditors' Service, Inc.,
609/392-0900)   


AUTHORISZOR INC: Falls Short of Nasdaq Listing Requirements
-----------------------------------------------------------
Authoriszor Inc. (Nasdaq:AUTH), a provider of full service
technology consulting and secure Internet access solutions,
announced that it received a Nasdaq Compliance Notice indicating
that it fails to comply with the minimum net tangible assets and
minimum stockholders' equity requirements for continued listing
on the NASDAQ National Market, set forth in Marketplace Rule
4450(a)(3).

The Compliance Notice also points out that Authoriszor is not in
compliance with the $1 per share minimum closing bid standard
and the $5 million minimum market value public float
requirement.

The Compliance Notice from NASDAQ indicates that given
Authoriszor's failure to satisfy either the net tangible assets
or stockholder's equity standards, the NASDAQ staff is reviewing
Authoriszor's eligibility for continued listing on the NASDAQ
National Market. The NASDAQ staff has requested that Authoriszor
provide, on or before March 5, 2002, a specific plan to achieve
and sustain compliance with all NASDAQ National Market listing
requirements, including the minimum net assets and stockholders
equity requirements of $4 million and $10 million, respectively.
The Compliance Notice indicates that if, after the conclusion of
its review, the NASDAQ staff determines that the Company has not
presented a definitive plan to achieve compliance in the short
term and sustain compliance in the long term, the NASDAQ staff
will provide written notification to Authoriszor that its
securities will be delisted.

Authoriszor Inc., has notified the NASDAQ staff that while the
Company is currently exploring various strategic alternatives
for the Company, including, among other things, obtaining
additional financing, the Company does not have at this time a
definitive plan involving a transaction that will remedy the
Company's net tangible assets and stockholders equity
deficiencies. The NASDAQ staff has advised the Company that in
light of the absence of a definitive plan to achieve compliance
with NASDAQ listing requirements, NASDAQ is sending a written
notification to the Company that its securities will be delisted
from NASDAQ on March 14, 2002, subject to the right of the
Company to appeal the delisting of its securities from NASDAQ.

Authoriszor Inc., is primarily a provider of technology
consulting services and integrated securities solutions, to a
wide range of organizations in the e-commerce, security and
workflow sections of the information technology industry
internationally. Authoriszor also provides a patent-pending
suite of security software products. With respect to our
technology consulting services unit, Authoriszor, through its
subsidiaries WRDC Ltd. and Logsys Solutions Ltd., seeks to
discover the competitive advantages that are available in an
increasingly competitive and rapidly changing world for its
customers. For more information about Authoriszor, visit
http://www.authoriszor.com


AUDIO VISUAL SERVICES: Emerges from Chapter 11 Restructuring
------------------------------------------------------------
Audio Visual Services Corporation(TM) (OTC Bulletin Board: AVSV)
announced that the Company and its domestic subsidiaries have
emerged from the prenegotiated Chapter 11 cases that were
commenced on December 17, 2001, in the United States Bankruptcy
Court for the Southern District of New York, Case No. 01-16272
(AJG). The Court confirmed the Company's Plan of Reorganization
at the confirmation hearing held on February 20, 2002, and the
Company's Plan of Reorganization is now effective. The Company
has been reorganized as a private company and all of its
outstanding shares of common stock that traded on the OTC
Bulletin Board under the symbol AVSV have been cancelled.

Robert Ellis, Chairman and CEO of the Company commented: "The
Company had struggled with excessive levels of debt which built
up as a consequence of the acquisition strategy pursued in the
late 1990's. The Plan of Reorganization provides for an
appropriate capital structure, sufficient cash to fund
operations and the ability to access capital to fund new growth
initiatives. Most importantly, the Company's financial
reorganization did not affect our operations, customers,
suppliers or employees."

The Company also announced that it has entered into agreements
with a syndicate of financial institutions led by JP Morgan
Chase for an aggregate of $136 million in new debt financing.

AVSC is a leading provider of audiovisual equipment rentals,
staging services and related technical support services to
hotels, event production companies, trade associations,
convention centers and corporations in the United States. In
addition to its United States operations, the Company has
operations in Canada, Mexico, the United Kingdom, Belgium, and
the Caribbean.


BRIGHTSTAR INFORMATION: Going-After New Long-Term Financing
-----------------------------------------------------------
BrightStar Information Technology Group, Inc. (OTC Bulletin
Board: BTSR), a leading provider of information technology
services for Global 2000, mid-market and public sector clients,
reported its financial results for the fourth quarter and full
year ended December 31, 2001.

Fourth Quarter Financial Highlights:

     -- Revenue of $3.4 million

     -- Gross margin of 32%

     -- Positive cash flow from operations of $0.2 million

     -- Reduction of indebtedness owed to our legacy creditors
        resulting in an extraordinary gain of $1.7 million

     -- Adjusted EBITDA loss of $0.1 million compared to the
        reported EBITDA loss of $1.0 million

     -- Net adjustments of $0.9 million to reported EBITDA           
        reflect the debt reduction to legacy creditors of $1.7
        million and the following non-recurring items:

          -- $1.7 million in restructuring expenses resulting
             primarily from employee severance, excess fixed      
             asset write-off, and premature termination charges
             on facility and equipment leases

          -- $0.9 million in other charges, primarily resulting
             from increases in the Company's legacy liabilities,
             including a $0.6 million accrual for a state sales
             tax assessment

          -- Reported net loss of $1.4 million, including the
             net impact of the adjustments noted above.

"We are very pleased with the improvements we made to our
financial health in the fourth quarter," said Joe Wagda,
Chairman and CEO.  "BrightStar achieved a fourth consecutive
quarter of positive cash generation from operations.  We also
settled or restructured approximately $2.8 million of legacy
liabilities in the last quarter through a combination of
restructured debt agreements, cash settlements, and a successful
lawsuit mediation, resulting in the settlement or restructuring
of legacy liabilities for the full year totaling $3.1 million.

"On the operating front, we sold a small and unprofitable web
hosting operation, terminated several troubled custom
development projects, and generally down-sized our overall cost
infrastructure to more properly match our current and projected
revenue levels," continued Wagda.  "Like most other IT
consultancies, BrightStar experienced a very challenging last
quarter of 2001.  While there is still work to be done, we
believe the actions we took late last year have set the
foundation for financial stability and resumed growth in 2002."

Legacy Liabilities:

BrightStar started the fourth quarter with approximately $3.4
million of past-due legacy or non-mission critical liabilities.  
Of this total, the Company was able to eliminate about $1.8
million from its balance sheet through agreements with creditors
in the fourth quarter.

However, BrightStar also incurred some increases in legacy
liabilities that totaled approximately $1.2 million.  This was
due primarily to $0.4 million of accelerated lease obligations
on vacated facilities and a $7 million sales tax assessment for
prior years that is estimated by the Company to result in a
liability of approximately $0.6 million.  Both of these
additional liabilities were incurred by a subsidiary of
BrightStar that is insolvent and ceased operations in the fourth
quarter as a result of the bankruptcy of its largest and last
client.

By the end of 2001, the legacy liability total on BrightStar's
consolidated balance sheet was approximately $2.8 million,
including approximately $1.5 million belonging to the insolvent
subsidiary.  Of the remaining $1.3 million, The Company has
entered into agreements which will further reduce this total by
$0.9 million or convert it to stock or long-term notes due in
2005.  Excluding the liabilities of the insolvent subsidiary,
this leaves approximately $0.4 million of past-due and un-
restructured legacy liabilities to be resolved with 7 creditors.  
For 2001, excluding the insolvent subsidiary, we reached
agreement or settlement with 26 out of a total of 33 legacy
creditors.

Full Year Financial Comparisons:

For the year ended December 31, 2001, revenues were $19.5
million, compared to $44.3 million from continuing U.S.
operations for the prior year 2000 excluding $17.3 million of
revenue from BrightStar's former Australian subsidiary.  The
adjusted EBITDA loss for 2001 was $0.2 million (excluding mostly
non-cash items of $2.0 million in restructuring charges, other
non-recurring costs of $0.5 million, and $1.8 million in
extraordinary gains), compared to an adjusted EBITDA loss of
$6.2 million in the previous year (for continuing U.S.
operations and excluding the $2.0 million operating loss of
BrightStar's former Australian subsidiary, and excluding mostly
non-cash charges of $45.7 million for restructuring, impairment
of goodwill, and other non-recurring items).  The net loss for
2001 was $2.7 million compared to a net loss of $59.1 million in
the prior year.

Business Discussion:

2001 was a year of retrenchment and stabilization for BrightStar
in response to a rapidly deteriorating services market as a
result of weakness in the national economy and the tragic events
of September 11.  In response, BrightStar took a series of cost-
saving measures and is now focused primarily on its four key
industry markets:  healthcare, energy, technology, and state and
local government.  The Company continues to have a number of
blue-chip customers that form a foundation for BrightStar's
revenue base in these markets.  At present, the Company has a
revenue backlog of approximately $8.3 million for all of 2002.  
While not all of this amount is contractually obligated, the
Company's estimate is based on existing contracts, past
practice, and customer projections for BrightStar's services.

Capital Requirements:

Comerica Bank, BrightStar's current working capital lender, has
agreed to extend the expiration date of the Company's credit
line from January 26, 2002 to June 30, 2002.  The Company is
seeking a longer term working capital credit facility, and is
also continuing to pursue additional long term financing.
BrightStar's failure to find a satisfactory replacement line of
credit could result in the Company being unable to continue
operations if no other long term financing is obtained.

Stock and Stock Option Grants:

The compensation committee of the board of directors recently
voted to take actions that resulted in the repricing of 0.9
million existing stock options and the awarding of approximately
1.1 million new options with respect to active participants
under the Company's long-term incentive plans.  The exercise
price of all affected options is $0.05 per share, which was
based on fair market value.  In addition, the compensation
committee voted to take actions that resulted in restricted
stock grants totaling 2.0 million shares.

Guidance:

"We are reaffirming our standing guidance of planning a return
to EBITDA profitability during the first half of 2002," said Mr.
Wagda.  "The BrightStar management team remains confident in the
ability of BrightStar to overcome the market's softness, resolve
its remaining legacy liability issues, and re-establish long-
term revenue momentum.  Assuming anticipated improvements in our
sales pipeline, the continued cooperation of our remaining
legacy creditors and a new or extended credit facility in June,
we expect to be financially stable for the balance of 2002 and
are planning to achieve positive EBITDA profitability for the
full year. "

BrightStar Information Technology Group, Inc. is a leading
provider of information technology services for Global 2000,
mid-market and public sector clients.  We help companies
maximize their competitive advantage through the implementation
and/or management of leading edge enterprise level applications
and business processes, including enterprise resource planning,
customer relationship management, and business process
management software solutions. BrightStar has established a
strong vertical business presence in healthcare, energy,
technology, and state and local government.  BrightStar has its
headquarters in the San Francisco Bay Area with field offices in
Dallas, Texas, and Quincy, Massachusetts, and can be reached via
the company's Web site  at http://www.brightstar.com  

Brightstar's unaudited consolidated balance sheet, as of
December 31, 2001, showed that the company's total current
liabilities exceeded its total current assets by a little over
$2 million.


CJF HOLDINGS: Trustee Appoints McShane as Liquidation Consultant
----------------------------------------------------------------
Mr. Michael B. Joseph, the Interim chapter 7 trustee of
overseeing CJF Holdings and its affiliated debtors' liquidation,
wants the U.S. Bankruptcy Court for the District of Delaware to
approve his employment of McShane Group as a liquidation
consultant, nunc pro tunc to February 22, 2002.

The Chapter 7 Trustee selected McShane because of its experience
and knowledge and because of the absence of any conflict of
interest.

As Liquidation Consultant to the Chapter 7 Trustee, McShane is
expected to:

     a) gather the Debtors' books and record and arrange for           
        transfer for same to a site to be designated/agreed upon
        by the Chapter 7 Trustee;

     b) inventory the Debtors' books and records;

     c) ascertain the status of the Debtors' books and records,
        i.e., the months through which the books have been
        closed;

     d) inventory the Debtors' fixed assets;

     e) meet with and advise the Chapter 7 Trustee/Counsel on
        matters concerning case administration that require
        their specific view;

     f) render such other assistance as the Chapter 7
        Trustee/his Counsel may deem appropriate;

     g) perform preference analyses and any other analyses as
        required by the Chapter 7 Trustee;

     h) research, pursue and collect funds owed to the Debtors;

     i) arrange for contingency audits on worker's compensation
        insurance policies and sales tax, to the extent
        feasible;

     j) administer and handle the claims process; and

     k) assist with any other matters the Chapter 7 Trustee, in
        his discretion, deems appropriate.

The Chapter 7 Trustee will pay McShane's hourly rates which
range from:

          Managing Directors          $225 per hour
          Senior Analysts             $175 to $200 per hour
          Administrative Support      $50 per hour

CJF Holdings, Inc., filed for voluntary chapter 11 protection on
November 28, 2001 and received Court approval to convert these
cases to chapter 7 liquidation proceedings on February 8, 2002.
Donna L. Harris, Esq., at Morris, Nichols, Arsht & Tunnell,
represents the Company.  When the company filed for protection
from its creditors, it listed an estimated assets and debts of
$10 million to $50 million.


CARIBBEAN PETROLEUM: Panel Taps Mahoney Cohen as Fin'l Advisors
---------------------------------------------------------------
The Official Committee of Unsecured Creditors in the chapter 11
cases of Caribbean Petroleum LP and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ Mahoney Cohen & Company, CPA, PC as their
accountants and financial advisors, nunc pro tunc to January 8,
2002.

The Committee seeks to retain MCC because the Firm is
particularly well-suited for the type of representation required
by the Committee. MCC has its offices in New York, and has
experience in all aspects of accounting and finance that may
arise in these chapter 11 cases.  In particular, MCC has
substantial reorganization an insolvency expertise with respect
to the retail and fuel industries.

MCC will render services to the Committee as needed throughout
the course of these chapter 11 cases regarding financial
implications of the reorganization and insolvency issues. In
particular, MCC is expected to:

    a) analyze the financial operations of the corporation from
       the date of the filing of the petition under chapter 11;

    b) analyze the financial information of the corporation
       prior to the date of the filing of the petition under
       Chapter 11;

    c) prepare and submit a report to the Committee of Creditors
       to aid them in evaluating any proposed plan of
       reorganization;

    d) verification of the physical inventory of merchandise,
       supplies, and equipment and other material assets and
       liabilities, if necessary;

    e) assist the Committee in its review of monthly operating
       reports;

    f) assist the Committee in its evaluation of cash flow or
       other projections prepared by Debtors;

    g) review and analyze cash disbursements on an ongoing basis
       for the period subsequent to the Petition Date;

    h) analyze transactions with insiders, related/affiliated
       companies;

    i) analyze transactions with Debtor's financing
       institutions;

    j) assist the Committee in its review of the financial
       aspects of a plan of reorganization, or in arriving at a
       proposed plan of reorganization;

    k) attend meetings of creditors and confer with
       representatives of the creditor groups and their counsel;
       and

    l) perform all other services for the Committee which may be
       necessary and proper in these cases.

MCC will bill for its work on an hourly basis at its customary
rates:

     Partners and Principals          $265 to $420 per hour
     Managers and Senior Managers     $180 to $340 per hour
     Senior Accountants and Staff     $105 to $190 per hour

The MCC professionals who will be primarily responsible for
these cases are:

     * Mr. Herman Serrano, $285 per hour; and
     * Mr. Jeffrey T. Sutton, $420 per hour.

Caribbean Petroleum L.P. distributes petroleum products and
owns/leases real property on which service stations selling
petroleum products are stored and sold to retail customers. The
Company filed for chapter 11 protection on December 17, 2001.
Michael Lastowski, Esq., and William Kevin Harrington, Esq., at
Duane, Morris & Heckscher LLP represent the Debtors in their
restructuring efforts.


CHIQUITA BRANDS: Court OKs Ernst & Young for Auditing Services
--------------------------------------------------------------
Chiquita Brands International, Inc. sought and obtained
permission to employ Ernst & Young LLP as its accountants,
auditors and tax service providers.

Senior Vice President and Chief Finance Officer James B. Riley
relates that Ernst & Young is very well suited for the type of
services required by the Debtor considering that it is one of
the largest professional service firms in the United States.
Further, Mr. Riley says, Ernst & Young also has extensive
experience in chapter 11 cases and has a familiarity with the
Debtor's operation, because the firm has been providing audit
and tax services to the Debtor since 1976.

E&Y partner Thomas E. Schoenbaechler says that he and his firm
will take responsibility for:

    (a) auditing the Debtor's consolidated financial statements
        for the year ending December 31, 2001;

    (b) advising the Debtor regarding specific tax problems it
        may encounter;

    (c) advising the Debtor regarding specific tax planning
        issues;

    (d) researching and advising the Debtor on special
        bankruptcy issues and "fresh start" accounting issues;
        and

    (e) such other related services to be provided by Ernst &
        Young and its affiliates as may be required by the
        Debtor and agreed to by Ernst & Young.

Chiquita will pay Ernst & Young:

(1) For auditing services:

     Position                      Hourly Rate
     --------                      -----------
     Partners and Principals        $500-535
     Senior Managers                 294-436
     Managers                        245-285
     Senior Accountants              156-195
     Staff                           114-135

(2) For tax services:

     Position                      Hourly Rate
     --------                      -----------
     Partners and Principals        $510-600
     Senior Managers                 465-495
     Managers                        347-360
     Senior accountants              235-258
     Staff and Associates             75-174

Mr. Schoenbaechler assures Judge Aug that Ernst & Young:

    -- does not have connections with the Debtor, its creditors,
       or any other party in interest, or its respective
       attorneys or accountants;

    -- is not a creditor or an insider of the Debtor

    -- is "disinterested" as defined in section 101(14) of
       the Bankruptcy Code, as modified by section 1107(b) of
       the Bankruptcy Code; and

    -- does not hold or represent an interest adverse to the
       estate except that Ernst & Young also represents:

       (a) American Financial Group, Inc. and its subsidiaries,

       (b) American Financial Corporation, and

       (c) Provident Financial Group, Inc.

Some of the Debtor's shareholders are also shareholders in these
companies.  However, Mr. Schoenbaechler asserts that the
relationship will not affect Ernst & Young's ability to perform
objectively.  Further, Mr. Schoenbaechler assures the Court that
there will be no commonality of professionals on the teams that
serve these companies. (Chiquita Bankruptcy News, Issue No. 7;
Bankruptcy Creditors' Service, Inc., 609/392-0900)   


CLASSIC COMMS: Court Okays Petrie Parkman as Panel's Advisors
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approves
the application of the Committee of Unsecured Creditors in the
chapter 11 cases of Classic Communications, Inc. and its debtor-
affiliates, to employ and retain Petrie Parkman & Co., Inc., as
financial advisors, nunc pro tunc to December 5, 2001.

Petrie Parkman will:

   a) meet with the Committee to develop an understanding of
      the Committee's objectives;

   b) meet with Debtors' management to develop an understanding
      of Debtors' operational and financial objectives;

   c) meet with Debtors' management and Debtors' financial
      advisors to gain a thorough understanding of the Debtors'
      assets;

   d) review Debtors' historical financial and operating
      statements to develop a perspective on the Debtors'
      performance;

   e) review Debtors' business plan and capital budget to
      develop a perspective on Debtors' business prospects;

   f) assist the Committee in developing a perspective on
      Debtors' assets and operations;

   g) assist the Committee in formulating, considering and
      proposing various transaction structures to achieve the
      Committee's objectives with respect to the
      reorganization;

   h) develop a preliminary analysis indicating potential
      reference values of Debtors, if requested;

   i) assist the Committee in assessing the likely reaction of
      the capital markets to the reorganization;

   k) advise and assist the Committee in developing a
      negotiating strategy;

   l) advise and assist the Committee in the course of its
      negotiations during the reorganization and participate in
      such meetings; and

   m) render other advisory services as may be reasonably
      requested by the Committee.

Petrie Parkman is requesting a monthly advisory fee of $100,000
due the first day of each month beginning January 1, 2002
throughout the term of the engagement.  In connection with its
role as financial advisor to the Committee, Petrie Parkman has
retained Communication Technology Advisors, Inc. as an
independent contractor.  CTA's monthly pay is payable from the
$100,000 monthly fee that is due to Petrie Parkman.

Classic Communications, Inc., a cable operator focused on non-
metropolitan markets in the United States, filed for Chapter 11
petition on November 13, 2001 along with its subsidiaries.
Brendan Linehan Shannon, Esq. at Young, Conaway, Stargatt &
Taylor represents the Debtors in their restructuring efforts.
When the Company filed for protection from its creditors, it
listed $711,346,000 in total assets and $641,869,000 in total
debts.


COLONIAL ADVISORY: S&P Downgrades Class B Notes Rating to B-
------------------------------------------------------------
Standard & Poor's lowered its rating on the class B notes issued
by Colonial Advisory Services CBO I Ltd. and co-issued by
Colonial Advisory Services CBO I Corp. to single-'B'-minus from
triple-'B'-minus.

Concurrently, the double-'A'-minus rating on the class A notes
is affirmed. In addition, the ratings on the class A and B notes
are removed from CreditWatch with negative implications, where
they were placed on Jan. 29, 2002.

The lowered rating on the class B notes reflects the continuing
deterioration in the collateral pool credit quality and an
additional $65 million of new defaults since the rating on the
class B notes was lowered to triple-'B'-minus from single-'A' on
June 29, 2001.

Since the closing of the transaction, a number of defaulted
securities and credit risk securities have been sold at low
price levels, contributing to the par erosion in the collateral
pool. Furthermore, according to the Feb. 20, 2002 trustee
report, a total of $74 million (or approximately 17.7% of the
total collateral pool) is in default. In addition, the issuer
credit rating on one bond (approximately $1.88 million), listed
as a performing asset on the February 2002 trustee report, was
lowered to 'D' on Jan. 3, 2002.

The obligors with issuer credit ratings in the triple-'C' range
comprise more than 7.6% of the performing collateral pool.
Furthermore, approximately 15.7% of the obligors in the
performing collateral pool have ratings that are currently on
CreditWatch negative, of which 3% are rated in the triple-'C'
range.

The new defaults and the par loss from the sale of credit risk
securities have resulted in the continued breaching of all of
the overcollateralization tests. The class A
overcollateralization test (currently 122.1% versus the required
minimum of 140%), the class B overcollateralization test
(currently 100.7% versus the required minimum of 118%), and the
total overcollateralization test (currently 85.3% versus the
required minimum of 107%) have been in violation since July
2001, May 2001, and December 1999, respectively. On the previous
four payment dates, more than $23 million in principal was paid
to the class A noteholders because of the mandatory redemption
triggered by the overcollateralization test failures. The
improvement to the overcollateralization ratios from the
redemption has been offset by the subsequent increase in
defaulted assets.

The current weighted average coupon, 9.25%, is below its
required minimum of 9.55%, while the weighted average spread
test, 83.1 basis points (bps), is still passing its required
minimum of 75 bps.

As a part of its analysis, Standard & Poor's reviewed the
results of recent cash flow model runs. These runs stressed
various parameters that are instrumental in the performance of
this transaction, and are used to determine its ability to
withstand various levels of default. The stressed performance of
the transaction was then compared to the projected default
performance of the current collateral pool. Standard & Poor's
found that the projected performance of the class B notes, given
the current quality of the collateral pool, was not consistent
with its prior rating. Consequently, Standard & Poor's has
lowered its rating on the class B notes to its new level. On the
other hand, the projected performance of the class A notes was
still consistent with its double-'A'-minus rating.

Standard & Poor's will continue to monitor its ratings on the
class A and B notes.

     Rating Lowered And Removed From CreditWatch Negative

          Colonial Advisory Services CBO I Ltd./
          Colonial Advisory Services CBO I Corp.

               Class       Rating

                       To          From

               B       B-          BBB-/Watch Neg

     Rating Affirmed And Removed From CreditWatch Negative

          Colonial Advisory Services CBO I Ltd./
          Colonial Advisory Services CBO I Corp.

               Class       Rating

                       To          From

               A       AA-         AA-/Watch Neg


CONDOR TECHNOLOGY: Full-Year 2001 EBITDA Loss Reduced to $400K
--------------------------------------------------------------
Condor Technology Solutions Inc. (OTC Pink Sheets: CTSI), a
leading provider of technology and communications services,
reported continued improvement in financial results for the
fourth quarter and twelve months ended Dec. 31, 2001.

On fourth quarter revenues of $12.9 million, the company
reported earnings before interest, taxes, depreciation,
amortization and impairment of long-lived assets (EBITDA) of
$461,000, compared to an EBITDA loss of $6.1 million in the
fourth quarter of 2000. The Company had a fourth quarter 2001
net loss of $10.1 million versus $16.2 million for the fourth
quarter of 2000.

Included in the company's net loss was impairment of long-lived
assets of $13.9 million in the fourth quarter of 2001 versus
$5.4 million in 2000. The company also recorded a $4.1 million
extraordinary gain on the extinguishment of debt.

Cash generated from operations in the fourth quarter 2001 was
$1.7 million.

For the year 2001, the EBITDA loss was reduced to $0.4 million
compared to $1.5 million in the prior year. In addition, Condor
had a net loss of $26.3 million in 2001 after extraordinary
items, on total revenues of $68.3 million. Net loss for fiscal
year 2000 was $20.2 million.

"Fourth quarter EBITDA improved more than $6.5 million over the
fourth quarter in the previous year", said Jim Huitt, Condor
president and CEO. "In addition, the company has cut selling,
general and administrative costs from $10.3 million in the
fourth quarter of 2000 to $2.9 million in 2001, which represents
a decrease from 47.5% to 22.9% of revenue from year to year.
Revenues year-to-year declined as a result of the company's
decision to sell off business units in 2001 that were under
performing or not in line with Condor's core business."

Condor previously announced stockholder approval of a debt
restructuring in which approximately $12 million of debt was
converted into equity in the company. "This was a major
accomplishment in 2001 and vote of confidence from our banks,"
said Huitt.

Condor Technology Solutions is a technology and communications
company specializing in the organization, analysis and creative
distribution of business information. The company's business
practices include Web development, business intelligence,
contact center services, infrastructure support and marketing
communications.

Condor Technology Solutions was founded in 1998. It is
headquartered in Baltimore, Maryland, with offices and
operations throughout the MidAtlantic Region. The company's Web
site is http://www.cndr.com


CONOCO CANADA: Wins Consents to Amend Senior Note Indentures
------------------------------------------------------------
Conoco Canada Resources Limited, a subsidiary of Conoco Inc.
(NYSE: COC), announced the successful completion of its consent
solicitation with respect to its US$8.1 million in outstanding
8.375 percent senior notes due 2005 and its US$3.9 million in
outstanding 8.35 percent senior notes due 2006, effectively
eliminating the Corporation's financial reporting obligations
under these notes.

For each of the series of notes, the requisite noteholder
consents were obtained and, as a result, the notes and the trust
indentures under which they were issued are to be amended to
eliminate the contractual requirement of the Corporation to file
periodic reports with the Alberta Securities Commission or
provide equivalent financial information to the noteholders.

The Corporation also announced that it was extending the consent
solicitation with respect to its US$8.2 million in outstanding
8.25 percent senior notes due 2017 until 5:00 p.m. EST, on March
8, 2002, unless further extended.  Conoco Inc. has irrevocably
guaranteed the Corporation's payment obligations on all three
series of notes and has agreed to provide the trustee for the
notes with copies of Conoco Inc.'s required U.S. SEC filings.

Conoco Canada Resources Limited is a Canadian-based exploration
and production company with primary operations in Western
Canada, Indonesia, the Netherlands and Ecuador.  Conoco Inc. is
a major, integrated energy company active in more than 40
countries.


ELECTRIC LIGHTWAVE: Pinnacle Assoc. Discloses 5.09% Equity Stake
----------------------------------------------------------------
Pinnacle Associates, Ltd., investment advisers, beneficially own
5.09% of the outstanding common stock of Electric Lightwave,
Inc.  With sole power to vote and/or dispose of the shares,
Pinnacle Associates benefically owns 494,000 shares of Electric
Lightwave's common stock.

Pinnacle Associates, Ltd., furnishes investment advice on a
discretionary basis to its clients. In its role as investment
adviser, Pinnacle possesses voting and/or investment power over
the securities.

Part of the swell of integrated communications providers,
Electric Lightwave's (ELI) long-haul fiber-optic network rolls
across the western US. The CLEC (competitive local-exchange
carrier) provides local phone and long-distance voice service
and broadband data services to large and midsized businesses in
seven metropolitan markets. ELI also offers wholesale long-
distance and data services throughout the US to telecom carriers
over its network and leased transmission facilities.
Connecticut's Citizens Communications (formerly Citizens
Utilities) owns 85% of ELI. Citizens has announced plans to
integrate its own telecom operations more closely with those of
ELI. The company's Sept. 30, 2001, balance sheet showed a total
shareholders' equity deficit of about $200 million, and a
working capital deficiency of $57 million.


ENRON CORP: Seeks Approval of $5.6MM Break-Up Fee for GE Power
--------------------------------------------------------------
In the event that the Enron Corporation, and its debtor-
affiliates:

  (1) with respect to any transaction of any nature, receive and
      accept an offer or offers for the Transferred Assets that
      the Bankruptcy Court determines to be higher and better
      than the sale transaction contemplated by the Agreement,
      and consummates such higher and better offer(s), or

  (2) withdraw or elect not to proceed with the transactions
      contemplated by the Agreement and obtain Bankruptcy Court
      approval for a transaction or series of transactions,
      within six months following the date of the entry of an
      order approving the a sale of the Wind Power Assets, that
      actually results in the sale, liquidation or other
      disposition of a material portion of the Transferred
      Assets,

-- the Debtors ask the Court to approve the payment to GE Power
Systems a Break-Up Fee in an amount equal to $5,625,000.

Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP, in New
York, New York, asserts that the proposed Break-Up Fee is fair
and reasonable in light of the time, cost and expense that GE
Power has incurred in negotiating the Agreement.  "The Break-Up
Fee is reasonable if GE Power's proposal attracts competing
offers for the Enron Wind Business, facilitates the sale of the
same, and because the Buyer has accepted the risk that its offer
may be rejected if higher or better offers are made based upon
the Agreement," Mr. Rosen contends.

According to Mr. Rosen, the Break-Up Fee was the subject of
extensive negotiations among Buyer, the Debtor Sellers, the
Creditors' Committee and their various professionals.

Furthermore, Mr. Rosen points out that the Break-Up Fee -- which
is equal to two-and-a-half percent of the Preliminary Purchase
Price under the Agreement -- is reasonable relative to the
proposed purchase price. (Enron Bankruptcy News, Issue No. 15;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


FEDERAL-MOGUL: Court Okays E.D. Green as Future Claimants' Rep.
---------------------------------------------------------------
Federal-Mogul Corporation, its debtor-affiliates, and the
Official Committee of Asbestos Claimants obtained Court approval
to appoint a Legal Representative for Future Asbestos Claimants
in these chapter 11 cases. Thus, the Court approved the
appointment of Professor Eric D. Green as the Asbestos
Claimants' Committee's representative.

Mr. O'Neill informed the Court that that both Debtors and the
Asbestos Committee agreed to recommend Professor Green as
the most qualified candidate for Futures Representative.
Professor Green is a nationally-recognized mediator, arbitrator
and neutral, having co-founded two leading ADR firms, Endispute
and Resolution LLC, and having written about the field of ADR
for over 20 years.

The appointment of Professor Green as Futures Representative
hinges on these terms and conditions:

A. Standing - The Futures Representative shall stand to be heard
    as a party-in-interest in every matter relevant to the
    interests of Future Claimants in the Debtors' Chapter 11
    cases, whether in the Bankruptcy Court or the District
    Court, including participating in the claims objection,
    estimation and plan negotiation processes and applying to
    the Court for an order seeking clarification or expansion
    of his authority or duties;

B. Engagement of Professionals - Attorneys and other
    professionals may be retained by the Futures Representative
    with approval from the court consistent with the treatment
    afforded to other professionals in these cases;

C. Compensation - Compensation, including professional fees and
    reimbursement of expenses, shall be payable to the Futures
    Representative and his professionals from the Debtors'
    estates, subject to court approval, consistent with the
    treatment afforded to other professionals in these cases;

D. Removal - The Futures Representative may be removed or
    replaced at any time by a court order, either on its own
    motion or on a motion of any party-in-interest;

E. Liability - The Futures Representative shall not be liable
    for any damages, or have any obligations other than the
    duties prescribed in the order of appointment. He, however,
    shall not be spared from liability arising out of his
    willful misconduct or gross negligence. Any action or
    omission taken in good faith shall not be taken against him.

    Professor Green has indicated that he will not accept the
    offer as Futures Representative unless the Debtors, at
    their own cost, provide him with appropriate and
    acceptable liability insurance coverage. The Debtors thus
    seek By this motion the Court's authority to obtain
    Futures Representative Liability Insurance and pay the
    premiums necessary to maintain such.

F. Effective Date of Appointment - Once the Debtors have
    obtained the Futures Representative Liability Insurance and
    in form and substance and from a carrier satisfactory to
    Professor Green, he shall file a certificate of acceptance
    before the Court at which time his appointment is deemed to
    be effective as of the date of entry of the order approving
    this motion.

In addition, Mr. O'Neill stated that, since the Futures
Representative would be a fiduciary to a distinct but unknown
constituency, the Debtors are seeking for Professor Green to be
allowed to participate in the formulation of the reorganization
plan, much like the powers and duties delegated to official
committees in these cases. (Federal-Mogul Bankruptcy News, Issue
No. 12; Bankruptcy Creditors' Service, Inc., 609/392-0900)


FISHER COMMS: George Fisher Warren Jr. Discloses 9% Equity Stake
----------------------------------------------------------------
George Fisher Warren, Jr. beneficially owns 770,289 shares of
the common stock of Fisher Communications, Inc., representing
9.0% of the outstanding common stock of the Company.  He shares
voting and dispositive powers over the shares:  over 450,345
shares in his capacity as Trustee of Lula Fisher Warren Trust;
over 319,944 shares in his capacity with Warren Investment
Company.

Fisher Communications, Inc. is a Seattle-based communications
and media company focused on creating, aggregating, and
distributing information and entertainment to a broad range of
audiences* In addition to its stations, Fisher offers satellite
communication services and has real estate holdings in the
Seattle area. The Fisher family controls nearly 40% of the
company.

Fisher has executed commitment letters to refinance its eight-
year senior secured credit facility used to finance the
acquisition of television stations, and its unsecured revolving
line of credit used to finance construction of Fisher Plaza and
for other corporate purposes. As part of its refinancing, the
company intends to repay its unsecured bank lines of credit
available for working capital purposes. Upon completion of the
refinancing, current defaults of financial covenants under the
company's credit facilities will be eliminated. Also, with
completion of the refinancing, the company expects to write off
approximately $3.5 million of unamortized fees incurred in
connection with the eight-year senior secured credit facility.
The company expects to finalize agreements for these
transactions during the first quarter of 2002.


GARDENBURGER INC: Posts Improved Results for 2002 First Quarter
---------------------------------------------------------------
Gardenburger, Inc.'s net sales decreased slightly to $12.5
million for the quarter ended December 31, 2001 (herein referred
to as the first quarter of fiscal 2002) from 12.6 million for
the quarter ended December 31, 2000 (herein referred to as the
first quarter of fiscal 2001). First quarter fiscal 2002 sales
included approximately $800,000 from sales of new products.
These new products are representative of the Company's offerings
of meat alternative products beyond veggie burgers. The Company
plans additional expansion into this growing part of the meat
alternative market.

Gross margin was $5.9 million, or 46.8 percent of net sales, for
the first quarter of fiscal 2002 and $5.9 million, or 47.2
percent of net sales, for the first quarter of fiscal 2001. This
comparable margin for the two quarters was achieved with similar
production levels.

Net loss available for common shareholders decreased to $1.2
million for the first quarter of fiscal 2002 compared to $2.7
million for the first quarter of fiscal 2001 due to the lower
operating expenses and interest expense in the first quarter of
fiscal 2002.

At December 31, 2001 working capital was $9.3 million, including
$2.3 million of cash and cash equivalents. In the first quarter
of fiscal 2002, working capital decreased by $544,000 compared
to September 30, 2001 and the current ratio decreased to 2.7:1
from 2.9:1.

Founded in 1985 by GardenChef Paul Wenner, Gardenburger, Inc. is
an innovator in meatless, low-fat products. The Company
distributes its flagship Gardenburger veggie patty to more than
35,000 food service outlets throughout the United States and
Canada. Retail customers include more than 30,000 grocery,
natural food and club stores. Based in Portland, Oregon, the
Company currently employs approximately 180 people. At September
30, 2001, the company reported an upside-down balance sheet
showing a total shareholders' equity deficit of $0.6 million.


GAYLORD CONTAINER: Temple-Inland Deal Forces S&P's 'SD' Rating
--------------------------------------------------------------
On March 4, 2002, Standard & Poor's lowered its corporate credit
rating on Deerfield, Illinois-based Gaylord Container Corp., to
'SD', or selective default. The action followed the announcement
that Temple-Inland Inc., had funded its purchase of Gaylord
Container's public debt and common stock. At the same time
Standard & Poor's lowered its senior unsecured and subordinated
debt ratings on the company to 'D'.

The transaction involves Temple-Inland acquiring Gaylord by
tendering for its public debt at materially less than par. In
Standard & Poor's view, funding of this transaction is
tantamount to a default on Gaylord's public debt.

Standard & Poor's noted that selective default reflects the fact
that Gaylord has not defaulted on, and is not expected to
default on its bank debt.


GENERAL BINDING: S&P Affirms B+ Rating with Negative Outlook
------------------------------------------------------------
Standard & Poor's affirmed its B+ rating on General Binding
Corp. on March 4, 2002.

General Binding's corporate credit rating is based on the
company's leveraged financial profile, mitigated by its service
revenues, and leading worldwide positions in office products
(including the GBC and Quartet brands), office equipment, and
thermal laminating films.

Northbrook, Illinois-based General Binding has refocused its
strategy and restructured its operations. New management,
including a recently hired chairman and chief financial officer,
is focused on restoring profitability to the levels of the mid-
1990s through operational excellence with an emphasis on
marketing. In 2001, General Binding took a $16.7 million charge
related to these efficiency efforts, and expects another $23
million charge spread over 2002 and 2003. As a result of the
cost saving measures, the company anticipates profit improvement
of $7-$9 million in 2002, and $20-$25 million yearly going
forward.

The company's lower cost structure has allowed it to maintain
profitability despite a very weak market. While falling sales
volume reduced EBITDA 20.0% (adjusted for non-recurring items),
the EBITDA margin declined only 0.8%. Cost savings from supply
chain efficiencies and lower operating expenses in Europe were
offset by pricing pressures, planned lower sales of shredders,
lower shipments of visual communications equipment, and higher
prices for raw materials.

EBITDA coverage of interest expense, adjusted for non-recurring
charges, was 2.1 times in 2001, about the same as the previous
year. Although the company has reduced debt by about $100
million since 1998, it remains highly leveraged, with total debt
to EBITDA of 5.5x, versus 4.4x in 2000. However, $60 million of
cash at year-end Dec. 31, 2001, provides additional financial
flexibility. Discretionary cash flow was $33.0 million in 2001,
versus $55.4 million in 2000, as the decline in funds from
operations was partly mitigated by better working capital
management and lower capital spending.

Standard & Poor's expects a 10%-12% increase in EBITDA from the
continuing restructuring program, and improved cash flow from
better working capital management. These benefits will be
offset, however, by increased interest rates on General
Binding's credit facility amended in January of 2002. As a
result, Standard & Poor's expects that credit protection ratios
for 2002 will be approximately 2.0x, similar to the past few
years. Working capital financing will be provided by the newly
amended, $290 million multicurrency revolving credit facility.

                         Outlook

Industry sales of office products are under significant
pressure. Should market conditions result in further
deterioration of General Binding's credit ratios, ratings could
be lowered.


GLOBAL CROSSING: Court Allows Debtor to Pay Prepetition Taxes
-------------------------------------------------------------
Global Crossing Ltd., and its debtor-affiliates sought and
obtained authorization from the Court to pay all prepetition
Sales and Use Taxes and Regulatory Fees owed to the Taxing or
Regulatory Authorities, including all Sales and Use Taxes and
Regulatory Fees subsequently determined upon audit to be owed
for periods prior to the Commencement Date.

In connection with the normal operation of their businesses,
Michael F. Walsh, Esq., at Weil Gotshal & Manges LLP in New
York, informs the Court that the Debtors collect and remit an
assortment of taxes to various federal, state, and local taxing
authorities and also pay various regulatory fees to federal,
state, and local regulatory authorities. The taxes are more
particularly described as follows:

A. Sales Taxes: In the normal course of their business, the
     Debtors sell international, interstate and intrastate
     telecommunication services and equipment to their customers
     and in connection with such sales, the Debtors collect and
     remit an assortment of sales, local gross receipts and
     utility users taxes to the Taxing Authorities. On a
     periodic basis, the Debtors remit the Sales Taxes collected
     during the preceding month to the Taxing Authorities.

B. Use Taxes: The Debtors also are responsible for the payment
     of use taxes when they purchase any tangible personal
     property, including switches, routers, and other
     telecommunication-related equipment from vendors. Use Taxes
     arise when the Debtors purchase equipment from a vendor in
     a state in which the vendor has no business operations.
     Without such nexus, the vendor is not obligated to charge
     or remit sales taxes for sales to parties within the state.
     Nevertheless, the purchaser, in this case the Debtors, are
     obligated to self assess and pay the Use Taxes. The Debtors
     remit the Use Taxes to the Taxing Authorities on a monthly
     basis.

C. Federal Excise Taxes: The Debtors pay a 3% federal excise tax
     on most intrastate and interstate telecommunication
     services. A Federal Excise Tax return is filed with the
     Taxing Authorities quarterly. The Debtors remit payment for
     such taxes twice a month.

     The Debtors estimate that they owe approximately $9.29
     million in Sales, Use, and Federal Excise Taxes to the
     Taxing Authorities for periods prior to and including
     January 31, 2002.

D. Gross Receipts Taxes: New York, Louisiana, Maryland, North
     Dakota, Ohio, Pennsylvania, and Rhode Island impose a gross
     receipts tax on the Debtors' telecommunication services.
     The Gross Receipts Tax is assessed at a rate between 2% and
     5% of the cost of the service, and the Debtors pass along
     this expense to its customers in the form of a surcharge.
     The Gross Receipts Tax is assessed annually on a calendar
     year basis, but paid quarterly through estimated payments
     due March 15th, June 15th, September 15th and December
     15th. An estimated $2,300,000 in Gross Receipts will come
     due on March 15, 2002 for the period of January 1, 2002
     through December 31, 2002. In addition, as of December 31,
     2001, the Debtors still owed $475,000 in Gross Receipts
     Taxes for 2001, which will be payable between February and
     May 2002, depending on the payment requirement of the
     specific Domestic Taxing and Regulatory Authority.

E. Michigan Single Business Tax: The Debtors pay a state income
     tax in Michigan called the Michigan Single Business Tax.
     Michigan law imposes personal liability on the directors
     and officers of a corporation if that corporation fails to
     pay the MSB Taxes. The Debtors believe that there are no
     prepetition MSB Taxes owed, but seek authority to pay any
     amounts that might be subsequently determined upon audit to
     be owed for periods prior to the Commencement Date.

F. Business License Fees: Many municipal and county governments
     require the Debtors to obtain a business license and to pay
     corresponding business license fees. The criteria requiring
     a company to obtain a business license and the manner that
     the business license fees are computed vary greatly
     according to the local tax laws. Some business license fees
     are based upon gross receipts derived from the local
     jurisdiction. Other business license fees are based on a
     flat fee or upon the number of employees working in the
     jurisdiction. The Debtors estimate that they pay
     approximately $78,000 annually in Business License Fees to
     the Taxing Authorities.

G. Regulatory Fees and Universal Service Fees: The Debtors also
     pay regulatory fees and universal service fees to the
     Regulatory Authorities. The Regulatory Fees and Universal
     Service Fees are assessed as a percentage of the Debtors'
     revenues derived from the provision of telecommunication
     services within the jurisdiction of the relevant Regulatory
     Authority and remitted on a periodic basis depending on the
     payment requirements of the various Regulatory Authorities.
     The Regulatory Fees are used to fund various federal and
     state agencies, while the Universal Service Fees are used
     to subsidize the high cost of local telecommunications
     services and other governmental program obligations such as
     telecommunications relay services. The Debtors estimate
     that they owe approximately $3,950,000 in Regulatory Fees
     and Universal Service Fees to the Regulatory Authorities
     for periods prior to the Commencement Date.

Mr. Walsh submits that Sales, Use, Federal Excise, and Gross
Receipts Taxes are afforded priority status under section
507(a)(8) of the Bankruptcy Code and as priority claims, Sales,
Use, Gross Receipts and Federal Excise Taxes must be paid in
full before any general unsecured obligations of a Debtor may be
satisfied. The Debtors submit that sufficient assets exist to
pay all prepetition Sales, Use, Gross Receipts and Federal
Excise Taxes in full under any plan or reorganization that may
ultimately be proposed and confirmed by this Court. Accordingly,
the relief will only affect the timing of the payment of the
prepetition Sales, Use, Gross Receipts, and Federal Excise
Taxes, and therefore, will not prejudice the rights of general
unsecured creditors or other parties in interest.

Mr. Walsh points out that many federal and state statutes hold
officers and directors of collecting entities personally liable
for certain taxes owed by those entities. To the extent that any
Sales, Use, Federal Excise, and MSB Taxes remain unpaid by the
Debtors, the Debtors' directors and officers may be subject to
lawsuits or criminal prosecution during the pendency of these
chapter 11 cases. Any such lawsuit or criminal prosecution would
distract the Debtors and their officers and directors from their
attempt to implement a successful reorganization strategy, to
the detriment of all parties in interest in these chapter 11
cases.

Mr. Walsh contends that payment of the Business License Fees and
the Regulatory Fees is critical to the Debtors' operations. If
the prepetition Business License Fees and Regulatory Fees are
not paid, the Taxing or Regulatory Authorities could potentially
challenge the applicability of the automatic stay with
concomitant expense to the Debtors' estate. In light of the de
minimis amounts of Business License Fees and Regulatory Fees
owed, the benefit to the Debtors for making these payments far
outweighs their cost. Failing to pay all prepetition Business
License Fees and Regulatory Fees harms the Debtors to the
detriment of the Debtors' estates, creditors, and all parties in
interest.

The Court further orders that all applicable Banks be authorized
and directed, when requested by the Debtors in their sole
discretion, to receive, process, honor, and pay any and all
Checks or Electronic Transfers drawn on the Debtors' accounts to
pay all prepetition Sales and Use Taxes and Regulatory Fees owed
to the Taxing or Regulatory Authorities whether those Checks
were presented prior to or after the Commencement Date, and to
make other transfers provided that sufficient funds are
available in the applicable accounts to make such payments. The
Debtors represent that each of these Checks or transfers can be
readily identified as relating directly to the authorized
payment of prepetition Sales and Use Taxes and Regulatory Fees.
Accordingly, the Debtors believe that Checks and transfers other
than those relating to authorized payments will not be honored
inadvertently. (Global Crossing Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


GLOBIX CORP: Intends to Pay Prepetition Employee Obligations
------------------------------------------------------------
Globix Corporation and its debtor-subsidiaries seeks authority
from the U.S. Bankruptcy Court to honor all Prepetition Employee
Obligations, including amounts owed for prepetition wages,
salaries, and employee benefits.  The Debtors argue that it is
in the best interest of their estates for the Court to authorize
these payments.  If Globix loses its workforce, there's no
business left to rehabilitate.  

The Debtors also seek authority to pay in full all obligations
owed to terminated Employees to the Worker Adjustment and
Retraining Notification Act (WARN) together with associated
insurance benefits owed to such Employees, whether such
obligations constitute prepetition or postpetition obligations.

On or about February 13, 2002, the Debtors implemented a
reduction in force affecting more than 100 employees, including
about 85 employees whose termination triggered obligations under
the WARN Act. To preserve the morale of the remaining employees
during this very difficult period and to avoid severe hardship
on the terminated Employees, the Debtors are seeking
authorization to pay to such terminated Employees all
obligations arising under the WARN Act, and to continue all
insurance benefits in full, whether such benefits constitute
prepetition or postpetition obligations.

As of the Petition Date, the Debtors had more than 430
Employees. The Prepetition Employee Obligations that the Debtors
owe their Employees include

     a) unpaid prepetition wages, salaries, bonuses, commissions
        and expense reimbursements;

     b) accrued vacation, sick, holiday and excused leave days;
        and

     c) Employee Benefits.

The Debtors estimate that, as of the Petition Date, accrued but
unpaid wages, salaries, commissions, severance, other
compensation and withholding taxes total approximately
$1,650,000, and that accrued vacation, sick, holiday and excused
leave pay total not more than $200,000.

The Debtors estimate that the aggregate total wages to be paid
to the terminated Employees for the period from the Petition
Date to April 15, 2002 are approximately $1 million.

Certain employees also have incurred expenses that, consistent
with ordinary practice, are reimbursable by the Debtors
estimated to be less than $10,000. On the other hand, accrued,
unpaid amount of Employee Benefits total to less than $100,000.

If Globix doesn't pay these prepetition benefit, compensation
and reimbursement amounts, employee morale will erode and
relations between management and employees will be strained.  
Those would adversely affect the likelihood of a successful
reorganization.

Globix Corporation, a leading full-service provider of Internet
solutions to businesses, filed for chapter 11 protection on
March 1, 2002.  Jay Goffman, Esq., and Gregg M. Galardi, Esq.,
at Skadden, Arps, Slate, Meagher & Flom LLP represent the
Debtors in their restructuring efforts.  When the Company filed
for protection from its creditors, it listed $524,149,000 in
total assets and $715,681,000 in total debts.


GUILFORD MILLS: Will File Chapter 11 to Restructure $370MM Debt
---------------------------------------------------------------
Guilford Mills, Inc. (OTC Bulletin Board: GFDM) said that it has
reached an agreement in principle with its senior lenders on a
restructuring of the Company's approximately $270 million senior
indebtedness.  Under the restructuring, the Company's
outstanding senior debt will be reduced to approximately $145
million.  Under the plan, the Company's unsecured trade
creditors will be paid in full.

John A. Emrich, the Company's President and Chief Executive
Officer, said, "We are extremely pleased to reach an agreement
in principle with our senior lenders which will significantly
de-leverage the Company's balance sheet.  Our substantially
completed operational restructuring, together with the financial
restructuring announced [Tues]day, will help to ensure the
financial stability of the Company and allow the Company to
focus on growing its core operations - the worldwide automotive
business which is a critical supplier to the OEMs, an industrial
fabric business which has a portfolio of exciting new products,
and a strategic apparel operation in Mexico."

Mr. Emrich added, "The agreement in principle with our senior
lenders will allow the Company to reduce its debt to acceptable
levels and positions the Company for success and continued
growth in its core operations.  We are gratified that our senior
lenders have confidence in our business plan and have agreed to
support the Company in effecting a successful recapitalization."

To conclude the restructuring as quickly as possible, the
Company will file a pre-arranged reorganization proceeding under
Chapter 11 of the Bankruptcy Code.  Certain of the Company's
senior lenders will provide to the Company an approximately $30
million debtor-in-possession revolving credit facility, subject
to their borrowing base due diligence.  Under the reorganization
plan, all of the Company's currently outstanding common stock
will be cancelled, and the Company will then immediately issue
to its current senior lenders and to its existing stockholders
shares of Company common stock representing 90% and 10%,
respectively, of the Company's total outstanding common stock.  
The Company's Board of Directors will be reconstituted to
reflect the new equity ownership. For the one year period
commencing on the date of the plan's confirmation, the Company
will not sell all or any substantial part of its assets or enter
into any other business combination transaction without the
unanimous approval of the Board of Directors.

Upon confirmation of the Company's restructuring plan by the
Bankruptcy Court, the Company's debt structure will consist of a
three-year revolving credit facility and a three-year term loan
totaling $145 million.  Both the revolver and term loan, like
the Company's current senior debt facilities, will be secured by
substantially all of the Company's domestic assets and certain
shares of stock the Company holds in its foreign subsidiaries.

The Company will transfer the assets of its discontinued
operations to a trust or similar vehicle from which the senior
lenders will receive the liquidation proceeds.  Up to $10
million of a deficiency, if any, between the amount realized and
$70 million will be guaranteed by the Company.  In addition, the
Company has agreed to transfer certain stock the Company holds
in a Mexican subsidiary in order to further secure the
obligations of the trust.

The agreement in principle remains subject to, among other
conditions, the formal credit approval of the senior lenders and
the execution of definitive documentation.  The Company expects
to file its pre-arranged Chapter 11 case within the next few
weeks and to emerge with a confirmed Chapter 11 plan by early
Summer.

Mr. Emrich noted that, "The reorganization will preserve a
portion of the Company's equity for our current shareholders and
protect our unsecured trade creditors.  With a successful
operational restructuring completed and the Company on the verge
of concluding a recapitalization, Guilford and its associates
can look forward to a bright future."

Rothschild Inc., is serving as a financial advisor to the
Company in connection with the reorganization.

Guilford Mills is an integrated designer and producer of value-
added fabrics using a broad range of technologies.  The Company
is one of the largest warp knitters in the world and is a leader
in technological advances in textiles, including microdenier
warp knits and wide width circular knits of cotton blended with
LYCRA(R).  Guilford Mills serves a diversified customer base in
the apparel, automotive and industrial markets.


HCC INDUSTRIES: Feeble Financial Profile Spurs S&P's Junk Rating
----------------------------------------------------------------
On March 4, 2002, Standard & Poor's lowered its corporate credit
rating on HCC Industries Inc., to 'CCC' primarily due to the
company's very limited financial flexibility and its heightened
financial risk.

The rating action reflects HCC's current weak financial profile,
combined with its more modest revenue base and significantly
reduced liquidity position during a very challenging economic
environment.

The company stated in its most recent 10-Q filing that it will
not renew its contract with its largest customer Special Devices
Inc., which represented about 25% of total sales. In addition,
the company has entered into a new $8 million credit facility,
replacing its $20 million revolving credit facility which had
been scheduled to expire in May 2002. These events increase
HCC's financial stress and raise concerns about the company's
viability during a very difficult economic environment.

Rosemead, California-based HCC manufactures hermetically sealed,
electronic connection devices for a variety of cyclical end
markets. The ratings on the company reflect a very weak
financial profile and limited financial flexibility, which
largely offsets HCC's leading position in small niche markets.

HCC's financial flexibility is very limited with its unused $8
million revolving credit facility and $8.0 million in cash at
Dec. 29, 2001. In addition, availability under the revolver is
restricted by a borrowing base. Liquidity will remain
constrained due to the company's semi-annual $4.3 million
interest payment on its 10.75% subordinated notes, annual debt
maturities of about $1.9 million, working capital needs, and
restrictive financial covenants.

Sales declined 14% during the first nine months of fiscal 2002
ended Dec. 29, 2001, compared with the same period in the
previous year, with sales declining 32% and EBITDA declining
about 25% in its most recent quarter ended Dec. 29, 2001,
compared with the same period in the previous year. HCC's poor
operating performance is due to the slow economy and the
significant decline in demand from most of its end markets,
which include the automotive, telecommunications and aerospace
industries. Sales to these end markets account for nearly 70% of
the company's total revenues and are expected to remain weak
over the next few quarters. In addition, HCC will be very
challenged to replace its lost revenues from SDI.

HCC's poor operating performance has led to weaker credit
measures with EBITDA to interest coverage of about 1.9 times and
total debt to EBITDA of about 4.8x as of Dec. 29, 2001. Due to
an expected continuation of weakness in its end markets, credit
measures are anticipated to deteriorate further during the
current quarter and first few quarters of fiscal 2003.

                        Outlook

Further deterioration in HCC's end markets and failure to
improve its operations in the near term could lead to further
constrained liquidity, increased financial stress, and potential
bank covenant violations, resulting in lower ratings.


HAYES LEMMERZ: Intends to Implement Employee Retention Plan
-----------------------------------------------------------
Grenville R. Day, Esq., at Skadden, Arps, Slate, Meagher & Flom
in Wilmington, Delaware, relates that Hayes Lemmerz
International, Inc.'s management is composed of highly regarded
industry veterans who have significant knowledge of the debtors'
operations and of the key factors for success in the automotive
supply market.  These managers, who make the day-to-day
decisions that ultimately determine the Debtors' operating
profitability, are an extremely valuable commodity event to the
Debtors competitors and other manufacturing companies for
playing a key role in ensuring that the Debtors' manufacturing
facilities maintain quality and productivity, and that the
Debtors meet all supply requirements to their customers.  Mr.
Days stresses that a breakdown or even a slow down, in
manufacturing could prove disastrous on the Debtors' ability to
meet the stringent delivery requirements.

The Debtors believe that the market for talented managers is
always competitive.  Due to the complex nature of the Debtors'
manufacturing techniques and management processes, these skills
currently make the Debtors' managers highly marketable to other
manufacturing companies.  Therefore, these managers are being
well-compensated though competitive salaries and benefit
programs for their contribution to the business.

However, recent predicaments have affected the Debtors' ability
to retain their staff. These include:

A. the fall of the Debtors' stock price, which led to the
     decline of the several managers' net worth and negation of
     the effectiveness of the Debtors' stock-based retention
     plans;

B. the commencement of the Debtors' cases creating a concern
     among the employees that a possible downsizing or change in
     control may occur;

C. the managers held significant additional duties in order to
     meet the operating guidelines and disclosure requirements
     of the bankruptcy code and rules.

Mr. Day claims that these events expose the Debtors to a
heightened risk that other companies may pirate their top
management.  Therefore, the Debtors decided to adopt a Critical
Employee Retention Plan designed to retain the knowledge,
experience and loyalty of these valuable personnel, reduce
management turnover, maintain the managerial consistency and
save the Debtors' quality and profitability in such a highly
complex manufacturing and sales operation.

Mr. Day points out that the plan may also cut additional
expenses entailed in recruiting new management personnel.  Using
an executive search firm can incur about 30% of the employee's
first-year cash compensation considering that a company under a
reorganization case needs lucrative offers to attract competent
managers, which can be significant considering that there are
about 86 mission-critical managers in the operation.  These
managers have been an investment such that their loss would mean
the loss of institutional knowledge, employee and existing
customer-relations, which a new recruit cannot immediately fill
in.

Mr. Day relates that, prior to Petition Date, the Debtors
consulted with Arthur Andersen, LLP for assistance in developing
and evaluating an efficient and cost-sensitive employee
retention program.  The Debtors studied their existing programs
as well as those of 55 other companies under chapter 11 cases.

Based on this benchmarking analysis and with additional
consultation from Arthur Andersen, Lazard Freres & Co. LLC, and
Skadden, Arps, Slate, Meagher & Flom, LLP, Mr. Day states that
the Debtors structured an overall retention plan as one
component of the Debtors' over-all program to keep their
employees during these chapter 11 cases.  Aside from the plan,
the Debtors' boards of directors want to continue giving
industry competitive wages and salaries and maintain their
Existing Bonus Plans such as the incentive compensation plan,
the Hayes Lemmerz International, Inc. Annual Performance Plan,
and other prepetition local gainsharing incentive plans and
recognition awards.

The salient terms of the Critical Employee Retention Plan are:

A. Eligibility: The Critical Employee Retention Plan is composed
       of two tiers:

       *  The Tier One Participants consist of:

          -- the Debtors' Chief Executive Officer,

          -- 11 officer that report directly to the CEO and

          -- the Vice President of Sales for the Debtors'
             European Wheels business.

       * Tier Two Participants cover about:

          -- 21 plant managers,

          -- 42 director level employees, and

          -- 10 junior manager level employees.

B. Retention Bonuses: The Critical Employee Retention Plan
     awards retention bonuses to these critical employees who
     remain employed during and throughout these chapter 11
     cases.

     a. For Tier Two participants, the bonus is equal to between
          42% to 80% of their base salary;

     b. between 80% to 120% of the base salary for Tier One
          employees except the CEO; and

     c. 200% for the CEO.

   Retention bonuses will be paid within a reasonable amount
     of time after the effective date of the substantial
     consummation of a reorganization plan or by the closing of
     a sale of all or considerably all of the Debtors' assets
     minus any retention bonus that a participant will receive
     for the same period pursuant to a Sign-In Bonus. However,
     40% of the said bonus will be paid on September 1, 2002 if
     the effective date of Restructuring has not occurred as of
     that date. The maximum possible aggregate amount of the
     bonus is about $8,500,000 excluding the reductions for
     Sign-In retention bonuses.

C. Restructuring Performance Bonuses: These are designed to
     replace the stock options that Tier One Participants ought
     to receive from the original incentive plan and to
     encourage Tier One Participants to generate increased
     EBITDA alongside an increase in the Debtors' enterprise
     value. The total amount of the Restructuring Bonus for Tier
     One Employees would be 32 percent of the amount in excess
     of the Debtors' last 12 months EBITDA as of Effective date
     and the last 12 months EBITDA as of the period ended
     November 30, 2001.

     The performance bonuses will be given to Tier One
     participants as soon as the Debtors deem practicable after
     the Effective Date provided that the amount of the
     performance bonus shall be reduced by the retention bonus
     amount received by or owed to the Critical Employee, and
     by the retention bonus amount the employee receives, which
     covers the same period pursuant to the Sign-In agreement.

D. Equity Conversion Option: On the Effective Date, the Tier One
     Employee can opt to convert up to one half of his
     Restructuring Performance Bonus into restricted shares or
     purchase options of the Debtors' common stocks that is
     issued pursuant to a confirmed reorganization plan. In this
     case, the Restructuring Performance Bonus amount is reduced
     by the estimated value of the restricted shares or options
     distributed to the critical employee as determined by the
     Debtors' investment advisors. This option is not applicable
     to Tier One participants terminated before the Effective
     Date.

E. Termination: Any participant terminated for Cause or
     voluntarily leaves employment without valid reason
     automatically forfeits his rights to payment of any amount
     under the Retention Plan. In such event, the Debtors shall
     pay:

     a. a pro-rated amount of the Employees Retention Bonus at
          termination, minus 50 percent of the amount that
          employee will get under the severance plan or any
          other severance arrangements, provided that he will be
          entitled to get at least 50% of his pro-rated
          Retention Bonus;

     b. if he is a Tier One Employee, as soon as practicable, a
          pro-rated share of his Restructuring Performance
          Bonus, if any.

     The amount intended to be paid to the terminated Critical
     Employee under the proposed Retention Plan will be returned
     to the Debtors' estates to be divided among the Debtors'
     secured and unsecured creditors. Unpaid retention or
     restructuring performance bonuses shall be considered as
     administrative expense and given priority. (Hayes Lemmerz
     Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
     Service, Inc., 609/392-0900)


IKS CORP: Court Fixes April 1 Bar Date for Proofs of Claim
----------------------------------------------------------
              IN THE UNITED STATES BANKRUPTCY COURT
                   FOR THE DISTRICT OF DELAWARE

In re:                           :     Chapter 11
IKS CORPORATION and,             :     Case No.: 01-10510 (SLR)
INTERNATIONAL KNIFE & SAW, INC.  :     Jointly Administered
           Debtors.              :

           NOTICE OF BAR DATE TO FILE PROOFS OF CLAIM

   PLEASE TAKE NOTICE THAT:

   The United States Bankruptcy court for the district of
Delaware (the "Bankruptcy Court"), has entered an Order
establishing April 1, 2002 (the "Bar Date"), as the last date to
file proofs of claim for the purpose of asserting claims against
either of the above-captioned debtors (the "Debtors") that arose
before September 24, 2001 (the "Petition Date").

   If you own or hold any of the Debtors' stock or other equity
securities, you need not file a proof of interest solely on
account of your ownership interest or possession of such equity
securities.  The trustee for IKS Corp's 12% Junior Subordinated
Notes and for IKS Inc.'s 11-3/8 % Senior Subordinated Notes,
respectively, can file a proof of claim on behalf of all holders
of each such bond.

   The deadline to submit a claim arising from the Debtors'
rejection during these chapter 11 cases of an executory contract
or unexpired lease has been set by previous order of the
bankruptcy court, and the deadline to submit a claim for amounts
due under an assumed executory contract or unexpired lease has
been set by operation of the Debtors' confirmed plan of
reorganization and has been noticed separately.  Any other
claims arising before the plan of reorganization and has been
noticed separately.  Any other claims arising before the plan of
reorganization and has been noticed separately.  Any other
claims arising before the Petition Date respecting any leases or
contracts of the Debtors must be filed by the Bar Date.

   You should not file a proof of claim if you do not have a
claim against either of the Debtors.  The Debtors or their
attorneys cannot tell you whether you have such a claim or
whether you should file a proof of claim.

   If you decide to file a proof of claim, you must complete a
proof of claim form and deliver it by mail, hand delivery or
overnight courier, together with any supporting documentation
for your claim to the Claims Agent at the following address:  
THE GARDEN CITY GROUP, INC., IKS Corporation Claims Agent, PO
Box 8842, Melville, NY 11747-8842.  If you have any questions,
please contact the Claims Agent at 631-470-6802,

   If you wish to assert claims against more than one Debtor,
you must file a separate proof of claim in the case of each
Debtor against which you believe you hold a claim.  You may
request additional proof of claim forms from the Claims Agent at
the above address.

   Each signed original proof of claim form must be ACTUALLY
RECEIVED by the Claims Agent on or before 4:00 p.m. (EST) on the
Bar Date.  The Claims Agent shall reject any facsimile or
electronic submissions.

   If you are required to submit a proof of claim to preserve
your claim against nay of the Debtors and the Claims Agent does
not actually receive your original proof of claim in the manner
described above on or before the Bar Date or other applicable
deadline, you shall be forever barred from asserting any such
claim against any of the Debtors or their successors or assigns,
and you will be barred from receiving any distribution made
during these chapter 11 cases by the Debtors to their creditors.

                              Joel H. Levitin
                              Henry P. Baer, Jr.
                              Anna C. Palazzolo
                              Dechert
                              30 Rockefeller Plaza
                              New York, New York 10112

                              Michael L. Vild
                              Christopher A. Ward
                              The Bayard Firm
                              222 Delaware Avenue
                              Suite 900
                              PO Box 25130
                              Wilmington, Delaware 19899


INTEGRATED HEALTH: Premiere Committee Taps Baynard as Co-Counsel
----------------------------------------------------------------
The Premiere Committee in the chapter 11 cases of Integrated
Health Services, Inc., and its debtor-affiliates applies to the
Court for an order, under sections 328(a) and 1103 of the
Bankruptcy Code and Rules 2014(a) and 2016(b) of the Bankruptcy
Rules approving the appointment and retention of The Bayard Firm
as co-counsel, nunc pro tunc to January 8, 2002.

The Premiere Committee draws the Court's attention to Section
328(a) of the Bankruptcy Code which empowers a committee
appointed under section 1102 of the Bankruptcy Code, with the
Court's approval, to employ attorneys under section 1103 of the
Bankruptcy Code on any reasonable terms and conditions of
employment.

Specifically, The Bayard Firm will be:

(a) providing legal advice with respect to its powers and
    official committee appointed under section 1102 of the
    Bankruptcy Code;

(b) assisting in the investigation of the Debtors' acts,
    conduct, assets, liabilities, and financial condition, the
    operation of the Debtors' businesses, and any other matters
    relevant to these cases or to the formulation of a plan of
    reorganization or liquidation;

(c) preparing on behalf of the Premiere Committee necessary
    applications, motions, complaints, orders, agreements and
    other legal papers;

(d) reviewing, analyzing and responding to all pleadings filed
    by the Debtors and appearing in court to present necessary
    motions, applications and pleadings and to otherwise protect
    the interests of the Premiere Committee; and

(e) performing all other legal services for the Premiere be
    necessary and proper in these proceedings.

The Premiere Committee has selected The Bayard Firm because of
its attorneys' experience and knowledge and because of the
absence of any conflict of interest.

The Bayard Firm has advised the Premiere Committee that the
Firm, its directors, counsel, and associates do not hold or
represent any other entity having an adverse interest in
connection with the Debtors' cases. The Bayard Firm told the
Premiere Committee that it has represented other entities in
connection with the Debtors' cases but that such representations
have ceased. The Firm has advised the Premiere Committee that it
may have in the past represented or opposed, may currently
represent or oppose, and may in the future represent or oppose,
in matters totally unrelated to the Debtors' pending chapter 11
cases, entities that are claimants of the Debtors or other
parties in interest in the IHS chapter 11 cases. The Bayard Firm
submits that it has not and will not represent any such parties,
or any of their affiliates or subsidiaries, in relation to the
Premiere Committee, the Debtors, or their chapter 11 cases. The
Premiere Committee believes that The Bayard Firm is qualified to
represent the Premiere Committee in the Debtors' chapter 11
cases.

The Premiere Committee requests that The Bayard Firm be
compensated on an hourly basis, plus reimbursement of the actual
and necessary expenses that The Bayard Firm incurs, in
accordance with the ordinary and customary rates that are in
effect on the date the services are rendered

The Bayard Firm has advised the Premiere Committee that The
Bayard Firm's hourly rates range from $350 to $440 per hour for
directors, from $190 to $300 per hour for associates and from
$75 to $125 per hour for paralegals and paralegal assistants.
(Integrated Health Bankruptcy News, Issue No. 30; Bankruptcy
Creditors' Service, Inc., 609/392-0900)   


ITEX CORPORATION: Posts Improved Q2 Results After Restructuring
---------------------------------------------------------------
ITEX Corporation, (OTC Bulletin Board: ITEX) a trading and
business services company announced the operating results for
its second fiscal quarter ending January 31, 2002. The results
reflect the initial outcome of the corporate restructuring plan
as announced by the company in November 2001. At that time, the
company also announced a refocusing of its business model, along
with the appointment of a new Chief Executive Officer and Chief
Operating Officer.

             Second Quarter Results (unaudited)

For the second fiscal quarter ended January 31, 2002, ITEX
Corporation reported a net loss of $155,000 compared to a net
loss of $842,000 for the same period last year. Earnings before
interest, taxes, depreciation, and amortization (EBITDA) were
$28,000 for this quarter compared to an EBITDA loss of $408,000
for the same period last year.
  
                   Operational Highlights

     -- Wages and salaries decreased $370,000, or 38%, from
first fiscal quarter 2002, representing more than $1,400,000 in
projected annual savings. The decrease was primarily the result
of the elimination of 27 non-essential positions.

     -- A loss of $160,000 was incurred due to the cancellation
of the purchase agreement on the 3400 Cottage Way property. The
company negotiated an 18-month lease for the corporate
headquarters to remain at that property. The net result was a
$1,800,000 reduction in liabilities on the balance sheet and the
avoidance of significant litigation.

     -- Net profits were favorably affected by $283,000 due to
the sale of corporate regional offices to ITEX Independent
Brokers. After the conclusion of the sale, approximately 35% of
the total revenues from the same operations are retained by ITEX
Corporation.

     -- The promissory note to Network Commerce related to the
purchase of Ubarter.com Canada was paid off using operational
cash flows.

     -- Settlement agreements were reached in several
significant litigation matters previously reported, including
Martin Kagan and IBTEX proceedings.

     -- Ten new ITEX Brokers were recruited and trained to
increase the number of Brokers to 88 in the U.S. and Canada.
  
Lewis "Spike" Humer, ITEX President and Chief Executive Officer
stated, "We're pleased, but not surprised, by the progress we've
made. Our strategy was designed to accomplish operational
profitability within ninety days of the corporate restructuring
by introducing a culture of total fiscal responsibility with an
emphasis on increased efficiency, productivity, and service to
our brokers and members. We have significantly reduced our
recurring operating expenses making us operationally profitable.
Having achieved this milestone, we expect to show a profit in
the third fiscal quarter, barring any unforeseen circumstances."

Daniela C. Calvitti, ITEX Chief Financial Officer explained,
"The Company's cost cutting measures within the second fiscal
quarter 2002 have resulted in expected annual savings of
approximately $2,000,000. The company also has absorbed several
significant, non-recurring events in this quarter. These events
included, but were not limited to, $289,000 in legal costs for
current litigation and contingent liability reserves management
believes adequately cover potential matters of litigation. This
additional expense has been partially offset by $115,000 due to
the favorable settlement of a litigation matter."

Continuing to comment, Humer said, "The number of Independent
Brokers joining the ITEX system has been increasing due to
expanded broker recruitment programs. We are also increasing our
emphasis on broker development and support systems." He
continued, "The number of new members joining the ITEX
Retail Trade Exchange in recent months has also been growing.
Our goal is to further elevate the number of members
participating in the ITEX system through the rollout of newly
developed marketing programs and continuing the employee and
broker training programs launched in January of this year.
Finally, we are committed to improving our member retention and
trade revenue per member through enhanced customer service and
increasing trade opportunities. This commitment reflects our
philosophy that future profitability can be further enhanced by
increased top line growth."

Humer concluded by stating, "Our progress to date has been a
direct result of a more effective management team and an
increased level of accountability for everyone in the
organization. Our independent broker network has been
instrumental in helping the trade exchange continue to grow
through a difficult and challenging period of time. Lastly, our
Board of Directors have provided strong corporate governance in
support of the restructuring including their decision to
significantly reduce their cash compensation in exchange for
shares of ITEX Corporation stock."
  
At January 31, 2002, the company's balance sheet showed a total
shareholders' equity deficit of $218,000, and a working capital
deficiency of about $2 million.
  
Founded in 1982, ITEX Corporation -- http://www.itex.com-- is a  
trading and business services company with domestic and
international operations. ITEX has established itself as the
leader among the roughly 450 trade exchanges in the U.S. by
facilitating barter transactions between member businesses of
its Retail Trade Exchange. At the retail, corporate and
international levels, modern barter business enjoys expanding
sophistication, credibility, and acceptance. ITEX helps its
member businesses improve sales and liquidity, reduce cash
expenses, open new markets and utilize the full business
capacity of their enterprises by providing an alternative
channel of distribution through a network of four company
offices and 85 licensees worldwide.


KAISER ALUMINUM: UST Appoints Unsecured Creditors' Committee
------------------------------------------------------------
Pursuant to Section 1102(a)(1) of the Bankruptcy Code, Donald F.
Walton, Acting U.S. Trustee appoints these eight creditors to
serve on the Official Committee of Unsecured Creditors in
Kaiser Aluminum Corporation's chapter 11 cases:

    A. Los Angeles Scrap Iron & Metal Corp.,
       Attn: Sergio Alvarez
       1910 E. Olympic Blvd., Los Angeles, CA 90021-2420
       Phone: (213) 622-5744     Fax: (213) 622-8501

    B. Glencore AG
       Attn: David Porter
       Three Stamford Plaza, Stamford, CT 06901-3244
       Phone: (203) 353-2700     Fax: (203) 978-2607

    B. Merrill Lynch Bond Fund Inc., High Income Portfolio
       Attn: Philip J. Brendel/MikeBrown
       800 Scudders Mill Road, Area 1B, Plainsboro, NJ 08536
       Phone: (609) 282-0143     Fax: (609) 282-2756

    C. Bank One Trust Company, N.A. as Indenture Trustee
       Attn: Donna J. Parisi
       P.O. Box 710181, Columbus, OH 43271-0181
       Phone: (614) 217-2881     Fax: (614) 248-5195

    D. State Street Bank and Trust Company, as Indenture Trustee
       Attn: Laura L. Moran
       2 Avenue de Lafayette, Boston, MA 02111
       Phone: (617) 662-1753     Fax: (617) 662-1456

    E. Trust Company of the West
       Attn: Nick Tell/Louis Kim
       11100 Santa Monica Blvd., Los Angeles, CA 90025
       Phone: (310) 235-5915     Fax: (310) 235-5965

    F. U.S. Bank National Association, As Indenture Trustee
       Attn: Timothy J. Sandell
       180 East 5th Street, St. Paul, MN 55101
       Phone: (651) 244-0713     Fax: (651) 244-5847

    G. United Steelworkers of America
       Attn: Richard M. Seltzer, Esquire
       Five Gateway Center, Pittsburgh, PA 15222
       Phone: (412) 562-2400     Fax: (412) 562-2574

    H. Pension Benefit Guaranty Corp.
       Attn: Hector Banda
       1200 K Street, N.W., Washington DC 20005
       Phone: (202) 326-4070     Fax: (202) 326-4112
       (Kaiser Bankruptcy News, Issue No. 3; Bankruptcy
       Creditors' Service, Inc., 609/392-0900)   


KITTY HAWK: Seeking Approval of Plan & Disclosure Statement
-----------------------------------------------------------
Kitty Hawk Inc.'s Plan and Disclosure Statement provides for
distribution of all the capital stock of the reorganized company
to the Company's creditors, accompanied by the simultaneous
cancellation of all capital stock of the Company issued prior to
the Chapter 11 filing. The Company must obtain the approval of
the Bankruptcy Court before the Plan can be implemented.

As an alternative to the Plan, the Company is also examining the
possibility of an amendment to the Plan to accommodate a third-
party investment in the Company. While the Company has engaged
in preliminary discussions with several parties, no transaction
terms have been reached, and there can be no assurance that the
pending discussions will eventually lead to the consummation of
a transaction.

Kitty Hawk is one of the worlds largest non-integrated freight
carriers and the leading U.S. provider of air logistics.

DebtTraders reports that Kitty Hawk Inc.'s 9.950% bonds due 2004
(KHAWK1) are trading between 15 and 20. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=KHAWK1for  
real-time bond pricing.


KMART CORP: Standard Federal Pushing For $18-Million Set-Off
------------------------------------------------------------
Standard Federal Bank N.A., as successor in interest to Michigan
National Bank, and Kmart Corporation and its debtor-affiliates
are parties to that certain Three Year Credit Agreement dated
December 6, 1999 with Bank of America as "Syndication Agent",
Bank Boston N.A. and Bank of New York as "Co-Documentation
Agents", Chase Securities as "Lead Arranger and Book Manager",
and The Chase Manhattan Bank as "Administrative Agent".

Standard Federal is also one of the banks party to that certain
364 Day Credit Agreement dated November 13, 2001 among Kmart,
subsidiaries of Kmart as "Borrowers", Credit Suisse First
Boston, Fleet National Bank and The Bank of New York as "Co-
Syndication Agents", The Chase Manhattan Bank as "Administrative
Bank, and JP Morgan Securities Inc. as "Advisor, Arranger and
Bookrunner".

Susan Barnes de Resendiz, Esq., explains that the filing of a
petition under Chapter 11 of the Bankruptcy Code constitutes as
an event of default and automatically accelerates all
outstanding obligations under the Credit Agreements.  As of
Petition Date, Ms. De Resendiz says, Kmart owes over $21,500,000
to Standard Federal.

According to Ms. De Resendiz, Kmart Corporation has two store
deposit accounts with Standard Federal with a total pre-petition
balance of $18,128,827.

Thus, Standard Federal seeks relief from the automatic stay in
order to offset the $18,128,827 it holds in the Bank Accounts
against the $21,566,101 debt due and owing under the Credit
Agreements. (Kmart Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., 609/392-0900)   


LENNAR CORPORATION: S&P Affirms BB+ Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's revised its ratings outlook for Lennar Corp.
to positive from stable. At the same time, the company's double-
'B'-plus corporate credit rating is affirmed. The ratings and
outlook acknowledge Lennar's solid market position, highly
profitable operations, successful integration of the U.S. Home
Corp. acquisition, and sound financial position. These strengths
are tempered by its likely pursuit of sizable acquisitions, and
to a lesser extent, its investment in moderately leveraged land
development ventures, a strategy also pursued by many of its
peers, and a higher than average proportion of zero-coupon debt
within its capital structure.

Miami-based Lennar markets homes to first-time, move-up and
active adult buyers. The company, which maintains operations in
10 markets, including California, Florida, and Texas, has been
in business for more than 45 years and has a long track record
of operating successfully through a number of housing cycles.
With $6.0 billion in fiscal 2001 homebuilding revenues (over
23,000 units closed), Lennar is one of the largest homebuilders
in the country. Its market position has been bolstered in recent
years by its aggressive expansion efforts, including the 2000
acquisition of U.S. Home Corp. (previously rated double-'B'-
plus), which was roughly 70% of the size of Lennar prior to the
merger, and, more recently, the smaller-scale acquisitions of
unrated Patriot Homes and the Carolina operations of unrated
Fortress Homes in 2001. Lennar has very successfully integrated
U.S. Home while deleveraging its balance sheet. The company has
effectively managed its broadened business, with fiscal year
2001 performance benefiting from a dramatic increase in unit
deliveries (23% year over year) and a more moderate (3%)
increase in average selling prices. Lennar's strong homebuilding
gross and operating margins at 23% and 13%, respectively,
compare very favorably with those of other, larger national
homebuilders.

The company's financial position is very strong for the current
rating but is expected to moderate somewhat, as Lennar will
likely pursue additional acquisitions. Leverage at fiscal
2001year-end was 48% debt-to-book capitalization or 29% net of a
sizable level ($824 million) of cash and equivalents. The
company does have off-balance-sheet land financing joint
ventures with an estimated $1.2 billion in total capitalization,
which is roughly half the size of Lennar's current on-balance-
sheet inventory position. However, because the leverage for
these ventures is comparable to that of Lennar, even full
consolidation results in only a modest increase in leverage to a
still acceptable 49% and 30%, respectively. The debt maturity
schedule is very manageable, and Lennar's weighted average debt
maturity (roughly nine years) appropriately matches its longer
land position. Lennar has made more aggressive use of zero-
coupon convertible debt than its peers, with roughly 32% of
total debt represented by converts that could be put back to the
company beginning in 2003 and 2006. The company's solid cash
flow, however, produced EBITDA/interest coverage of 5.5 times
and homebuilder debt to EBITDA of 2.09 (x), both of which are
well above average. In addition to this strong internal cash
flow and Lennar's substantial cash on hand flexibility is
further enhanced by access to a $1 billion unsecured credit
facility, which was unused at fiscal year-end.

                    Outlook: Positive

Lennar has performed solidly during the past year. With
substantial internal and external liquidity, a highly talented
management team, and a strong track record of integration,
Lennar is well positioned to pursue other acquisitions. Ratings
would be poised to improve longer term should Lennar continue to
outperform its peers and/or pursue acquisitions that provide a
clear strategic benefit to the company, while maintaining a
solid financial profile.


MCMS: Committee Wins Nod to Employ Walsh Monzack as Co-Counsel
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approves
the retention of Walsh, Monzack and Monaco as Co-Counsel to the
Official Committee of Unsecured Creditors during the course of
the chapter 11 cases involving MCMS, Inc., nunc pro tunc to
October 1, 2001.

At the request of the Committee, WM&M has rendered services from
October 1, 2001 to represent it as its co-counsel. As the
Committee's co-counsel, WM&M is expected to:

     a) generally attend hearings pertaining to the cases, as
        necessary;

     b) periodically review applications and motions filed in
        connection with the cases;

     c) communicate with CH&S, the Committee's lead counsel, as
        necessary;

     d) communicate with and advise the Committee and
        periodically attend meetings of the Committee, as
        necessary;

     e) provide expertise on the substantial law of the State of
        Delaware and procedural rules and regulations applicable
        to these cases; and

     f) perform all other services for the Committee that are
        necessary for the co-counsel to perform in these cases.

The customary hourly compensation that the Committee will pay to
WM&M are:

          Francis A. Monaco, Jr.      $325 per hour
          Joseph J. Bodnar            $225 per hour
          Kevin J. Mangan             $220 per hour
          Heidi Sasso                 $100 per hour

MCMS, Inc., a global leading provider of advanced electronics
manufacturing services to original equipment manufacturers,
filed for Chapter 11 protection on September 18, 2001.  Eric D.
Schwartz, Esq. and Donna L. Harris, Esq. at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
effort.  When the company filed for protection from its
creditors, it listed $173,406,000 in assets and $343,511,000 in
debt.


MARCHFIRST: Selling Sequoia Interest to Champion for $1.9 Mill.
---------------------------------------------------------------
Andrew Maxwell, the chapter 7 trustee for the bankruptcy estate
of marchFIRST, INC. asks the U.S. Bankruptcy Court for the
Northern District of Illinois to authorize and approve a sale
and transfer of marchFIRST's limited partnership interest in
Sequoia Capital X, L.P. to Champion Ventures for about
$1,975,000.  A hearing on the motion is scheduled for March 21,
2002.

Although the Trustee has no knowledge of any liens, claims or
encumbrances asserted against the LP Interest, he requests that
any liens, claims or encumbrances that may exist with respect to
the LP Interest be transferred to and attach to the net proceeds
from the sale received by the Trustee, subject to the any
rights, claims, defenses, and objections.

The Trustee asserts that time is of the essence because further
delays might require marchFIRST to make additional capital calls
to Sequoia in order to maintain its limited partnership
interest. Such additional capital calls would lessen valuable
resources of the estate. Therefore, the Trustee requests that
the Court approve the proposed sale without further marketing or
a public auction.

marchFIRST had made capital contributions to Sequoia X of
$1,975,000. An additional $1,175,000 of capital calls have been
made by Sequoia X, but not paid by marchFIRST, which has put
marchFIRST in technical, but undeclared, default under the
Subscription Agreement. The value of marchFIRST's capital as of
December 31, 2001 was $1,478,611, representing a paper loss of
almost $500,000.

After extensive arm's-length negotiations with the Trustee,
Champion has offered to purchase marchFIRST's LP Interest for
$1,975,000, minus any interest or penalties that marchFIRST may
have incurred as a result of its failure to make certain capital
calls. On its acquisition of the LP Interest, Champion would
make marchFIRST's outstanding capital calls and succeed to all
of marchFIRST's rights and interests under the Subscription
Agreement. The Trustee believes that Champion's offer represents
substantial value to the estate given that Champion would be
paying 100 percent of marchFIRST's capital contribution.

In the Trustee's business judgment, the benefit of being able to
liquidate the estate's capital stake in Sequoia X far outweighs
any prospective advantage to further marketing and auctioning
the LP Interest to what would be a relatively limited potential
pool of prospective purchasers.


MEDCOMSOFT INC: Reduces Cash Burn Rate through Temporary Layoffs
----------------------------------------------------------------
MedcomSoft Inc. (TSE - MSF): MedcomSoft announced a substantial
reduction of its cash burn rate through temporary layoffs of a
large number of employees in both of its Canadian and US
operations and the implementation of severe cost reduction
measures in an effort to maintain an adequate operation in all
departments, align expenditures to current sale levels and
preserve cash.

Faced by a sluggish market after the tragic events of September
11th and longer than expected sale cycles, and after the
completion of the latest release of its flagship product
MedcomSoft(R) Record version 1.2, MedcomSoft decided to tailor
its operation to current market conditions and eventually re-
grow the Company as sales start to materialize at a faster pace.  
In addition, MedcomSoft has engaged several financial advisors
and interested institutions in the United States to help secure
additional financing for future growth.  

"Throughout our recent and intensive marketing campaign that
included many seminars to physicians across the United States,
MedcomSoft(R) Record has created a consistent and considerable
interest from all healthcare providers and organizations and
produced hundreds of active leads " said Dr. Sami Aita, Chairman
and CEO of MedcomSoft." We believe that our product continues to
demonstrate a superior lead in technology and solution to
current regulations; however the development of numerous US
reference sites, from already sold units, will play a key factor
in reducing the current sale cycles and accelerating revenues.  
Our new plan will avert any major difficulties in the short term
and will provide MedcomSoft with a second opportunity to
consolidate and grow again " continued Dr. Aita.  

MedcomSoft new layoffs will affect 90 employees in Canada and in
the US and a targeted burn rate reduction of over 80%.

MedcomSoft Inc. develops and markets software solutions that are
changing the way the healthcare industry captures, manages and
exchanges patient information.  Through its powerful suite of
products, MedcomSoft provides important tools that enable
healthcare professionals to fully automate their practices at
the point of care and more efficiently and effectively connect
with patients, researchers, pharmacies, medical equipment
suppliers, insurance and pharmaceutical companies. As a result
of MedcomSoft innovations, physicians and managed care
organizations can now: easily and securely build and exchange
complete, structured, codified electronic patient medical
records powered by the world's largest medical vocabulary;
rapidly analyze all clinical and practice management data, for a
patient or a population; build their own electronic protocols of
care and dynamically connect these protocols to best practice
guidelines and built-in clinical decision support systems;
electronically track outcomes of care and trends in disease;
reduce practice management costs; and, comply with emerging
healthcare legislation. With a growing network of customers and
resellers, and strong competitive advantages, MedcomSoft is
positioned to play an important role in improving the quality
and delivery of patient care worldwide.

At February 28, 2002, the company's total current liabilities
exceed its total current assets by about $500,000.


METALS USA: Committee Members May Continue Securities Trading
-------------------------------------------------------------
The Official Joint Committee of Unsecured Bondholders and
Creditors of Metals USA, Inc., and its debtor-affiliates won
permission from the U.S. Bankruptcy Court in Houston to allow
Committee members that are Securities Traders to trade in the
Debtors' stock, notes, bonds, debentures or participate in any
of the Debtors' debt obligations. The Committee also obtained
the Court's decree that by trading the Debtors' securities (i)
the trading-member will not violate their duties as Committee
members, provided they effectively implement information
blocking policies and procedures or Screening Wall procedures to
keep non-public information obtained through their activities as
Committee members away from people making actual trading
decisions and (ii) their claims will not be subject to possible
disallowance, subordination or other adverse treatment. (Metals
USA Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service,
Inc., 609/392-0900)


NATIONAL STEEL: Files For Chapter 11 Protection In N.D. Illinois
----------------------------------------------------------------
To facilitate a restructuring of its operations and balance
sheet and ensure sufficient liquidity to continue to grow its
business, National Steel Corporation (NYSE: NS) filed voluntary
petitions for reorganization under Chapter 11 of the Bankruptcy
Code.  

The Company also announced that it has reached an agreement in
principle for up to $450 million in debtor-in-possession (DIP)
financing with the existing senior secured bank group subject to
court approval which, combined with other actions, the Company
believes will provide sufficient liquidity to fund post-petition
operating expenses.  The Chapter 11 filing will also provide
National Steel with the necessary time to stabilize the
Company's finances and to develop a plan of reorganization to
return the Company to sustained profitability.

National Steel's Chairman and Chief Executive Officer Hisashi
Tanaka emphasized that the Chapter 11 process will have no
impact on the Company's abilities to fulfill its obligations to
its customers.  "Daily operations of our facilities will
continue as usual, and our employees will continue to be paid
and receive benefits without interruption," Mr. Tanaka said.

He added, "During the restructuring period and beyond, we are
committed to providing the high-quality products and services
that our customers have come to expect and do not anticipate
missing any deliveries to our customers as a result of these
actions.  Going forward, we will continue to meet the needs of
our existing customers and expect to obtain new business.

"Our vendors will be paid for all goods and services provided
after the filing date.  With our DIP financing and the
protections provided under the Bankruptcy Code for post-petition
purchases, we are confident our suppliers will continue to
support us while we complete our restructuring."

Mr. Tanaka said that the continued depressed selling prices
realized by the Company on many of its products during the last
two years, coupled with the weak overall United States economy
and the record levels of steel imports, have negatively impacted
the Company's operating results.

"While our core business is operationally sound, historically
low steel prices and a weak economy have impeded the Company's
ability to service its debt and make investments in the business
necessary for continued growth.  Our employees have been
diligent in reducing costs during these difficult times. In 2001
alone we reduced our costs by approximately $150 million
compared to the prior year, our manpower reductions totaled
about 1,000, and inventory reductions exceeded $130 million.  
These are not new actions.  We have a continuous improvement
philosophy with regard to our cost structure.  However, I am
very disappointed that all of these efforts have not been enough
to overcome the injury to us and the steel industry caused by
the lingering effects of the record levels of unfairly traded
steel imports and the downturn in the economy that have
depressed steel prices," Mr. Tanaka said.

National Steel is the latest of more than 28 American steel
companies to seek bankruptcy protection since late 1997, as the
U.S. industry fights to survive what it terms an onslaught of
inexpensive imported steel.  During the Chapter 11 process,
National Steel expects to continue to discuss a potential merger
agreement with U.S. Steel, as well as to look at other
alternatives that may be available through the restructuring
process.

National Steel and its wholly-owned subsidiaries voluntarily
filed petitions for reorganization under Chapter 11 in the
United States Bankruptcy Court for the Northern District of
Illinois.

                About National Steel

Headquartered in Mishawaka, Indiana, National Steel Corporation
is one of the nation's largest producers of carbon flat-rolled
steel products, with annual shipments of approximately six
million tons.  National Steel employs approximately 8,400
employees.  For more information about the company, its products
and its facilities, please visit the National Steel's web site
at www.nationalsteel.com .


NATIONAL STEEL: Case Summary & 50 Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: National Steel Corporation
             4100 Edison Lakes Parkway
             Mishawaka, Indiana 46545-3440  

Bankruptcy Case No.: 02-08699

Debtor affiliates filing separate chapter 11 petitions:

Entity                                     Case No.
------                                     --------
Granite City Steel Company                 02-08697
National Materials Procurement Corporation 02-08698
American Steel Corporation                 02-08700
Mid Coast Minerals Corporation             02-08701
National Casting Corporation               02-08702
National Steel Pellet Company              02-08703
D W Pipeline Company                       02-08704
Midwest Steel Corporation                  02-08705
National Coal Mining Company               02-08706
Natland Corporation                        02-08708
Granite Intake Corporation                 02-08707
National Coating Limited Corporation       02-08709
NS Holdings Corporation                    02-08710
Great Lakes Steel Corporation              02-08713
Peter White Coal Mining Corp               02-08712
National Coating Line Corporation          02-08711
NS Land Company                            02-08714
The Hanna Furnace Corporation              02-08715
National Mines Corporation                 02-08716
Procoil Corporation                        02-08718
NS Technologies Inc                        02-08717
Hanna Ore Mining Company                   02-08719
National Ontario Corporation               02-08720
NSC Realty Corporation                     02-08721
Puritan Mining Company                     02-08722
Ingleside Channel & Dock CO                02-08723
NSL Inc                                    02-08726
National Ontario II Limited                02-08724
Rostraver Corporation                      02-08727
Ingleside Holdings L P                     02-08728
Natcoal Inc                                02-08729
National Pickle Line Corporation           02-08725
Skar-Ore Steamship Corporation             02-08730
Ingleside Point Corporation                02-08731
National Acquisition Corporation           02-08732
National Steel Funding Corporation         02-08733
The Teal Lake Iron Mining Company          02-08734
National Caster Acquisition Corp           02-08735
National Caster Operating Corp             02-08736
Liberty Pipe And Tube Inc                  02-08737
National Steel Corporation [a New York Corporation] 02-08738

Type of Business: National Steel Corporation, a Delaware
                  corporation, is one of the largest integrated
                  steel producers in the United States and is
                  engaged in the manufacture and sale of a wide
                  variety of flat rolled carbon steel products,
                  including hot-rolled, cold-rolled,
                  galvanized, tin and chrome plated steels.
                  National Steel targets high value-added
                  applications of flat rolled carbon steel for
                  sale primarily to the automotive,
                  construction and container markets.

Chapter 11 Petition Date: March 6, 2002

Court: Northern District of Illinois Eastern Division

Judge: John H. Squires

Debtors' Counsel: Mark A. Berkoff, Esq.
                  Piper Marbury Rudnick & Wolfe
                  203 North La Salle Street, Suite 1800
                  Chicago, IL 60601-1293
                  (312) 368-4000
                  
                  and

                  David N. Missner, Esq.
                  Piper Marbury Rudnick & Wolfe
                  203 North La Salle Street, Suite 1800
                  Chicago, IL 60601-1293
                  (312) 368-4000


Total Assets: $2,307,600,000

Total Debts: $2,618,300,000

Debtor's 50 Largest Unsecured Creditors:

Entity                      Nature Of Claim       Claim Amount
------                      ---------------       ------------
HSBC Bank USA, as Trustee      Notes              $300,000,000
Under Eleventh Supplemental
Indenture to Indenture of
Mortgage and Deed of Trust
(9 7/8% Series due 2009)
Russ Paladino
452 Fifth Avenue
New York, NY 10018
Phone: (212) 525-1324
Fax: (212) 658-5973

Mitsubishi Corporation and    Project Financing    $76,024,000
Marubeni Corporation as
Lenders for Granite City
Continuous Center Loan

Mitsubishi Corporation
Attn: Richard Prescott
520 Madison Avenue, 20th Floor
New York, NY 10022
Phone: (212) 605-2655
Fax: (212) 605-4708

Marubeni Corporation
Attn: Soichi Yamamoto
450 Lexington Avenue
New York, NY 10017
Phone: (212) 450-0403
Fax: (212) 450-0755

HSBC Bank USA, as Trustee      Notes              $60,000,000
under Ninth Supplemental
Indenture to Indenture of
Mortgage and Deed of Trust
(8 3/8% Series due 2006)
Attn: Russ Paladino
452 Fifth Avenue
New York, NY 10018
Phone: (212) 525-1324
Fax: (212) 658-5973

Mitsubishi Corporation and    Project Financing   $55,849,000
Marubeni Corporation as
Lenders for Pickle Line
Loan

Mitsubishi Corporation
Attn: Masakazu Sakakida
520 Madison Avenue, 20th Floor
New York, NY 10022
Phone: (212) 605-2194
Fax: (212) 605-4708

Marubeni Corporation
Attn: Soichi Yamamoto
450 Lexington Avenue
New York, NY 10017
Phone: (212) 450-0403
Fax: (212) 450-0755

EES Coke Battery Co. Inc.     Trade               $23,162,898
Attn: Legal Department
425 Main Street
Suite 201
PO Box 8614
Ann Arbor, MI 48104
Phone: (734) 302-4810
Fax: (734) 994-5849

JP Morgan Chase as Indenture    Notes             $10,500,000
Trustee for Pollution
Control Bonds
Attn: Jim Freeman
450 West 33rd Street
15th Floor
New York, NY 10001
Phone: (212) 946-3067
Fax: (212) 946-8158

Jewel Coal & Coke Co. Inc.    Trade                $6,011,238
Attn: Dale Walker
U.S. Route 460 West
Vansant, VA 24656
Phone: (865) 558-3206
Fax: (865) 558-3280

Tube City, Inc.               Trade                $2,900,000
Attn: Joe Curtin
12 Monongahela Avenue
P.O. Box 2000
Glassport, PA 15045
Phone: (412) 678-6141
Fax: (412) 678-2210

Praxair Inc.                  Trade                $1,646,378
Attn: Legal Department
39 Old Ridgebury Road
Danbury, CT 06810
Phone: (800) 772-9247
Fax: (800) 772-9985

Air Products Manufacturing    Trade                $1,504,258
Corp.
Attn: Robert Cratin
7201 Hamilton Boulevard
Allentown, PA 18195
Phone: (313) 849-4204
Fax: (313) 849-4330

Metal Building Components LP   Trade              $1,502,948
c/o Doublecote
Attn: Robert Medlook
P.O. Box 84036
Dallas, TX 75284-0326
Phone: (281) 897-7788
Fax: (281) 477-9675

Sloss Ind. Corp               Trade               $1,189,447
Attn: Legal Department
3500 35th Avenue N
P.O. Box 5327
Birmingham, AL 35207
Phone: (205) 808-7916
Fax: (205) 808-7715

Bearing Headquarters Co.      Trade               $1,189,447
Attn: Legal Department
2550 South 25th Avenue
Broadview, IL 60155
Phone: (708) 681-4400
Fax: (708) 681-4462

PCI Enterprises Co.           Trade                 $980,412
DTE Energy
Attn: Kent MacCarger
425 S. Main Street
PO Box 8614
Ann Arbor, MI 48104
Phone: (734) 913-2090
Fax: (734) 994-5849

Spectra Resources             Trade                 $905,202
Attn: Louis J. Huber
1 Middlebrook Dr.
St. Louis, MO 63141
Phone: (314) 872-3471
Fax: (314) 872-3016

Portside Energy               Trade                 $722,922
Attn: Legal Department
8407 Virginia Street
Southlake Complex
Merriville, IN 46410
Phone: (219) 763-7426
Fax: (219) 647-6341

ESM II LLP                    Trade                 $722,922
Attn: Charles F Wright
300 Corporate Parkway
216N
Amherst, NY 14226
Phone: (716) 446-8900
Fax: (716) 446-8911

Noble Metal Processing
Attn: Rick Attonen
20530 Hoover Road
Detroit, MI 48205
Phone: (313) 839-0104
Fax: (313) 245-4841

Edward C. Levy Co.            Trade                 $676,352
Attn: Legal Department
8800 Dix Avenue
Detroit, MI 48209
Phone: (313) 843-7200
Fax: (313) 849-9444

Roll Coaster, Inc.            Trade                 $627,838
Attn: Don Eber
4502 Freedom Way
Weirton, WV 26062
Phone: (304) 794-3001
Fax: (304) 794-3002

Reference Metals Co. Inc.     Trade                 $537,686
Attn: Paul Dimtoff
100 Old Pond Road
Bridgeville, PA 15017
Phone: (800) 646-2486
Fax: (412) 221-7355

Quality Rolls Inc.            Trade                 $537,686
Attn: Steven J. Markovitz
1101 Muriel Street
Pittsburgh, PA 15203-1151
Phone: (724) 431-8250 ext. 0022
Fax: (412) 431-9017

VitalSi                       Trade                 $472,018
Attn: Gregory G. Meta
15200 Huron Street
Taylor, MI 48180
Phone: (734) 246-8250
Fax: (734) 246-8209

Caterpillar World Trading     Trade                 $472,018
Corp
Attn: Legal Department
100 NE Adams Street Lt. 6321
Peoria, IL 61629-6321
Phone: (309) 494-0516
Fax: (734) 479-1299

B&D Machine Works             Trade                 $463,875
Attn: Legal Department
307Pickneyville Road
Marissa, IL 62257
Phone: (618) 295-2112
Fax: (618) 295-2465
  
Great Lakes Service           Trade                 $451,229
& Sales Inc.
Attn: Legal Department
12525 Hale Street
Riverview, MI 48192
Phone: (734) 281-6787
Fax: (313) 281-6834

Vesuvius USA                  Trade                 $411,884  
Attn: Connie Warfel
1404 Newton Drive
Champaign, IL 61824
Phone: (217) 351-8402
Fax: (217) 351-8477

Cognex Corp.                  Trade                 $411,234
Department 05867
Attn: Mark Cornell   
P.O. Box 39000
San Francisco, CA
94139-5867
Phone: (570) 876-6740
Fax: (570) 876-3742


BSI Alloys Inc.               Trade                 $393,300
Attn: Legal Department
4955 Steubenville Pike
Pittsburgh, PA 15264-3191
Phone: (412) 471-7972
Fax: (412) 787-4727


Detroit Lime Co.              Trade                 $393,287     
Attn: Legal Department
125 South Dix Street
Detroit, MI 48217
Phone: (313) 849-9268
Fax: (313) 849-9444

Monarch Welding & Energy      Trade                 $390,711
Inc.
Attn: Charles Long
23538 Piewood
Warren, MI 48091
Phone: (313) 841-7373
Fax: (810) 849-9088

Heraeus Electro-Nite Co.      Trade                 $375,247
Attn: Bob Kuball
9901 Bluegrass Road
Philadelphia, PA 19114
Phone: (215) 464-4200
Fax: (215) 698-7793

Fleetwood Peter Co. Inc.      Trade                 $370,694
Attn: Dan Abrell
2222 Windsor Court
Addison, IL 60101
Phone: (630) 268-9999
Fax: (630) 268-9919

Philip Metals Inc.            Trade                 $369,920
  Luria Brothers
Attn: Don Forioni
9700 Higgins Road Suite 750
Rosemont, IL 60018
Phone: (216) 752-4000
Fax: (216) 752-9562

H&P Technologies Inc.         Trade                 $366,793
Attn: Anthony E. Lesha Jr.
21251 Ryan Road
Phone: (586) 758-0100
Fax: (586) 758-0589

DA Stuart Co.                 Trade                 $359,919  
Attn: Brad Donat
4580 Weaver parkway
Warrenville, IL 60555
Phone: (630) 393-0833
Fax: (630) 393-0834

DTE Smith Branch LLC          Trade                 $335,155
Attn: Barry Markowitz
414 S. Main
Suite 600
Ann Arbor, MI 48104
Phone: (734) 302-4810
Fax: (734) 668-8647

Safety Today Inc.             Trade                 $329,265
Attn: Gary LaForrest
6999 Metroplex
Romulus, MI 48174-0708
Phone: (734) 302-4810
Fax: (734) 668-8647

Stand Up for Steel            Trade                 $323,050
Coalition
Attn: Margaret Ayres
Davis, Polk & Wardell
1300 I Street N.W.
Washington, DC 20005
Phone: (202) 962-7142
Fax: (202) 962-7111

Lenhardt Tool & Die Co.       Trade                 $319,389
Attn: Marcia York
3100 East Broadway
PO Box 279
Alton, IL 62002
Phone: (618) 462-1075
Fax: (618) 462-0493

Lehigh Heavy Forge Corp.       Trade                $303,600
Attn: Al Robertson
1275 Daly Avenue
Bethlehem, PA 18016-7699
Phone: (610) 694-4125
Fax: (610) 694-5357

DTE Coal Inc.                 Trade                 $299,497
Attn: Barry Markowitz
414 S. Main
Suite 600
Ann Arbor, MI 48104
Phone: (734) 302-4810
Fax: (734) 668-8647

Arch Coal Inc.                Trade                 $294,949
Attn: Sam Louis
City Place One Suite 350
St. Louis, MO 63141
Phone: (314) 994-2803
Fax: (314) 944-2719

Premier Elkhorn Coal          Trade                 $288,222
Company
Attn: Legal Department
3597 Antilles Drive
Lexington, KY 40509
Phone: (606) 639-3154
Fax: (606) 523-4250

Eramet                        Trade                 $287,777
Attn: Angela Parise
PO Box 400449
Pittsburgh, PA 15268-0449
Phone: (412) 262-8747
Fax: (412) 262-8762

Stein Steel Mill              Trade                 $282,159
Services, Inc.
Attn: John Russo
PO Box 470548
Cleveland, OH 44101-2199
Phone: (440) 526-9301
Fax: (440) 526-9230

Pyro Industrial Services      Trade                  $281,195
Inc.
Attn: Ben Houser
6610 Shepherd Avenue
PO Box 237
Portage, IN 46368
Phone: (219) 787-5700
Fax: (219) 787-0700

Pointe Energy Ltd.            Trade                 $280,588
Attn: Robert D. Galeota
18530 Mack Avenue Suite 296
Gross Pointe farms, MI 48236
Phone: (313) 884-2679
Fax: (313) 884-1055

Renold Inc.                   Trade                 $280,028
Attn: Janice Northrop
100 Bourne Street Suite 2
Westfield, NY 14787-9706
Phone: (716) 326-3121
Fax: (716) 326-6121

Mississippi Lime Co           Trade                 $274,269
Attn: Legal Department
7 Alby Street
PO Box 2247
Alton, IL 62002
Phone: (618) 465-7741
Fax: (618) 465-7786


NETIA HOLDINGS: Reaches Agreement on Debt Restructuring Terms
-------------------------------------------------------------
Netia Holdings S.A. (Nasdaq: NTIA) (WSE: NET), Poland's largest
alternative provider of fixed-line telecommunications services,
announced that Netia, an Ad Hoc Committee of its Noteholders,
certain financial creditors, and Telia AB and the Warburg Pincus
entities that own its shares, each acting separately as Netia's
largest shareholders, have agreed to implement a restructuring
plan designed to strengthen Netia's capital structure.

A Restructuring Agreement will be signed today by Netia, Telia
and the Warburg Pincus Entities, and it is also expected that
the first of the Noteholders will sign the Restructuring
Agreement Tuesday. The Company has been informed that the
Extraordinary General Meeting of Netia's Shareholders scheduled
for today will be proposed to be adjourned for one week in order
to allow the Ad Hoc Committee and other Noteholders to sign the
Restructuring Agreement.

Subject to the consent of 95% of Noteholders and the completion
of definitive legal documentation by all parties, the
restructuring will involve the issuance of new shares and debt
by Netia in exchange for the outstanding Notes held by its
Noteholders and the claims of the other financial creditors.

Pursuant to the proposed restructuring, the Noteholders and
certain financial creditors will receive new shares in the
Company representing 91% of the Company's post-restructuring
share capital. Those creditors will also receive in aggregate
EUR 50 million of new Senior Secured Notes issued by a Dutch
finance subsidiary of the Company and guaranteed by the Company
and its significant subsidiaries.

The Company's existing shareholders will be issued two and three
year freely transferable and assignable warrants, with each
tranche covering 7.5%, together, totaling 15%, of the post-
restructuring share capital of the Company (after the provision
of 5% of the issued ordinary share capital to the Company for a
management option plan as described below). The warrants will be
listed on the Warsaw Stock Exchange. The strike price applicable
to warrants in each tranche will correspond with the volume
weighted average share price for the 30 trading days beginning
31 days following the successful closing of the restructuring.

Netia will seek to pay its trade creditors in full as their
claims become due and payable. Following these repayments, it is
anticipated that the only remaining material funded indebtedness
of the Company will be the new Senior Secured Notes. The Company
will also establish a key employee incentive plan and a stock
option plan covering up to 5% of the post-restructuring share
capital of the Company before the issuance of the warrants. The
restructuring will be effected by means of an exchange offer
within the court-based plans of arrangement in both the
Netherlands and Poland.

Kjell-Ove Blom, Netia's acting CEO and Chief Operating Officer,
commented: "We are very pleased to announce this agreement for
the financial restructuring of Netia. The restructuring will
allow us to establish a solid capital structure and foundation
to enable Netia's healthy future development. Netia's management
and employees can now focus on improving its operations."

Avi Hochman, Netia's Chief Financial Officer and Vice President,
Finance, stated: "We are happy to have reached this agreement
with all parties involved, which is designed to give Netia a new
capital structure and a strong balance sheet with only the EUR
50 million of new Senior Secured Notes. The implementation of
the restructuring steps outlined in the agreement will greatly
improve the Company's balance sheet and give Netia a strong
basis for growth and development in the Polish telecom market."

Netia is the leading alternative fixed-line telecommunications
provider in Poland. Netia provides a broad range of
telecommunications services including voice, data and Internet-
access and commercial network services. Netia's American
Depositary Shares are listed on the Nasdaq National Market
(NTIA), and the Company's ordinary shares are listed on the
Warsaw Stock Exchange. Netia owns, operates and continues to
build a state-of-the-art fiber-optic network that, as at
December 31, 2001, had connected 343,802 active subscriber
lines, including 97,994 business lines. Netia currently provides
voice telephone services in 24 territories throughout Poland,
including in six of Poland's ten largest cities.

DebtTraders reports that Netia Holdings SA's 13.500% bonds due
2009 (NETH09PON2) are trading between 18 and 20. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=NETH09PON2
for real-time bond pricing.


NETIA HOLDINGS: Shareholders' Meeting Will Resume Tuesday
---------------------------------------------------------
Netia Holdings S.A. (Nasdaq: NTIA, WSE: NET) announced that the
Extraordinary General Meeting of Shareholders of the Company
held on February 19, 2002 and previously adjourned until March
5, 2002, approved a one-week adjournment of the meeting until
March 12, 2002 at 12:00 p.m. CET. No substantive resolutions
were voted upon at today's meeting.

As announced, a Restructuring Agreement to implement a
restructuring plan designed to strengthen Netia's capital
structure will be signed today by Netia, Telia and the Warburg
Pincus entities. The adjournment was adopted in order to allow
the Ad Hoc Committee of Noteholders and other Noteholders to
sign the Restructuring Agreement. In addition, Netia announced
today that it has convened another Extraordinary General Meeting
of its Shareholders on March 27, 2002, to increase conditionally
the Company's share capital by up to PLN 141,386,274 through the
issuance of ordinary bearer series "J" shares, with an aim to
facilitate the issuance of warrants to existing shareholders and
to propose a stock option plan for Netia's key employees.

These proposed resolutions are resulting from the agreed terms
of the restructuring, as announced previously and are subject to
the approval of the Supervisory Board. Prior to the
Shareholders' Meeting on March 27, 2002, Netia's Management
Board will announce the final text of the proposed resolutions
and will also present a recommendation of the Supervisory Board
on these issues.

Netia is the leading alternative fixed-line telecommunications
provider in Poland. Netia provides a broad range of
telecommunications services including voice, data and Internet-
access and commercial network services. Netia's American
Depositary Shares are listed on the Nasdaq National Market, and
the Company's ordinary shares are listed on the Warsaw Stock
Exchange. Netia owns, operates and continues to build a state-
of-the-art fiber-optic network that, as at December 31, 2001,
had connected 343,802 active subscriber lines, including 97,994
business lines. Netia currently provides voice telephone
services in 24 territories throughout Poland, including in six
of Poland's ten largest cities.


NOVO NETWORKS: DE Court Confirms Chapter 11 Liquidating Plan
------------------------------------------------------------
Novo Networks, Inc. (OTCBB:NVNW) said that the Chapter 11
liquidation plan for certain of the Company's operating
subsidiaries - including Novo Networks Operating Corp., AxisTel
Communications, Inc. and e.Volve Technology Group, Inc. - was
confirmed by the U.S. Bankruptcy Court for the District of
Delaware on March 1, 2002.

Certain aspects of the plan, including various sales of the
subsidiaries' assets, are currently in process and will be
substantially complete within the next 60 days. Other aspects of
the plan, including the establishment of a litigation trust and
the prosecution of various third-party claims, will continue for
an indefinite period of time. In connection with the
confirmation, the Company also announced that it agreed to
extend the amount and maturity date of its subsidiaries' debtor-
in-possession credit facility.

As previously announced, the Company continues to explore
opportunities in the financial services industry and other
business sectors.


OWENS CORNING: Court Extends Lease Decision Period to June 4
------------------------------------------------------------
Owens Corning and its debtor-affiliates obtained a third
extension of the time within which they must decide whether to
assume, assume and assign, or reject unexpired leases of
nonresidential real property, to June 4, 2002. The extension
order is subject to the rights of each lessor under an Unexpired
Lease to request, upon appropriate notice and motion, that the
Court shorten the Extension Period and specify a period of time
in which the Debtors must determine whether to assume or reject
an Unexpired Lease.


PACIFIC GAS: Wants to Appeal Express Preemption Immediately
-----------------------------------------------------------
Based upon the provisions in the Court's Memorandum Decision
Regarding Preemption and Sovereign Immunity, Pacific Gas and
Electric Company requests that the Court certify an order
disapproving the latest filed version of the Disclosure
Statement on express preemption grounds alone to permit an
immediate appeal pursuant to Rule 54(b).

In the alternative, if the Court determines that Rule 54(b) does
not apply here, PG&E requests that it issue a separate order
disapproving the latest filed version of the Disclosure
Statement on express preemption grounds alone and that the order
include findings supporting an immediate appeal by PG&E of the
express preemption ruling to the District Court under 28 U.S.C.
Sec. l58(a)(3).  28 U.S.C. Sec. l58(a)(3), unlike its civil law
counterpart 28 U.S.C. Sec. 1292(b), does not require the trial
level court (i.e., the bankruptcy court) to provide findings as
a prerequisite to discretionary appeal. PG&E recognizes this and
requests that the Bankruptcy Court provide such findings for the
benefit of the District Court.

PG&E seeks only to appeal from the express preemption decision
articulated by the Court in its Memorandum Decision and does not
intend to seek an immediate appeal from either the sovereign
immunity or the implied preemption aspects of this Court's
decision. PG&E recognizes that factual questions remain to be
resolved with respect to both of these issues, and further, that
the Court's ruling on these issues is not final. The Court's
decision on express preemption, by contrast, involves a pure
issue of law-specifically, statutory interpretation-and the
Court has conclusively resolved that issue. PG&E notes that the
express preemption decision is distinct from the implied
preemption and sovereign immunity issues, and an immediate
appeal of that issue poses no risk of overlapping or duplicative
proceedings in this Court and/or the appellate court(s).

Rule 54(b) of the Federal Rules of Civil Procedure governs entry
of judgments with respect to appealable orders that do not
resolve all claims or the claims of all parties in a case. Rule
58 governs judgments and final orders in situations not covered
by Rule 54(b). These rules are incorporated into the Bankruptcy
Rules by Federal Rules of Bankruptcy Procedure 7054, 9014 and
9021.

Under Rule 54(b), a trial or bankruptcy court may certify for
immediate appeal a decision that resolves fewer than all claims
or the claims of fewer than all parties in a case.

PG&E believes that the Court's decision regarding express
preemption is appealable and thus appropriate for certification.

First, courts addressing the finality of rulings denying plan
confirmation have held that such rulings are not final orders
within the first category of appealability as of right discussed
above.

PG&E also tells the Court it intends to propose an alternative
plan that does not depend on express preemption, but it is
possible that the alternative plan will not meet the evidentiary
burden to justify implied preemption of any law or regulation.
Delay in resolution, via appeal, of the express preemption issue
until after the confirmation hearing on the alternative plan
could thus delay confirmation, which would not be in the best
interest of either the Debtor or the creditors. A prompt
resolution of the appeal by the District Court, by contrast,
could facilitate confirmation by determining, in advance of the
confirmation hearing, whether PG&E must meet the higher standard
for implied preemption.

Further, the loss of the right to appeal such rulings late in
the game, after another plan has been proposed, voted on and
confirmed is what accounts for the liberal grant of
discretionary review by district courts and B.A.P.s in cases
such as this case, PG&E represents. PG&E notes that if it is
forced to proceed under the implied preemption standard and is
prevented from immediately appealing the express preemption
ruling, it will be denied the opportunity to propose and obtain
confirmation based on express preemption and the Court's express
preemption ruling will be effectively unreviewable.

Moreover, discretionary review is also appropriate here, as in
Nicholes and other precedent cases, where the issue is a pure
issue of law - whether the Bankruptcy Code expressly preempts
state and local laws that would preclude transactions called for
in a proposed reorganization plan - and it is the subject of
conflicting judicial opinions.

Further, the issue of express preemption under Section 1123(a)
is "marginally final" within the meaning of the practical
finality test in that the Court's decision on the issue will not
affect the issues that remain pending in the case (other than by
mooting the need for an implied preemption showing), and express
preemption under the Bankruptcy Code is an issue of national
significance.

For these reasons, PG&E requests that the Court enter the
proposed Final Judgment and Order. (Pacific Gas Bankruptcy News,
Issue No. 25; Bankruptcy Creditors' Service, Inc., 609/392-0900)   


PACKAGED ICE: T. Rowe Price Associates Reports 7.7% Equity Stake
----------------------------------------------------------------
T. Rowe Price Associates, Inc. owns 1,563,700 shares of the
common stock of Packaged Ice, Inc., which represents 7.7% of the
outstanding common stock of Packaged Ice.  The investment firm
holds sole voting power over 628,700 shares, and sole
dispositive power over the entire 1,563,700 shares. The ultimate
power to direct the receipt of dividends paid with respect to,
and the proceeds from the sale of, such securities, is vested in
the individual and institutional clients which Price Associates
serves as investment adviser.  Any and all discretionary
authority which has been delegated to Price Associates may be
revoked in whole or in part at any time.

Packaged Ice is the largest manufacturer and distributor of
packaged ice in the United States and currently serves over
76,000 customer locations in 31 states and the District of
Columbia. At September 30, 2001, the company recorded a working
capital deficit of $46 million.


PHARMCHEM INC: Violates Nasdaq Continued Listing Requirements
-------------------------------------------------------------
PharmChem Inc. (Nasdaq:PCHM) announced that it has received a
letter from The Nasdaq Stock Market, Inc. indicating that the
Company is out of compliance with the $5 million minimum market
value requirement for its publicly held shares, as stated in
Marketplace Rule 4450(a)(2). Publicly held shares exclude shares
held directly or indirectly by any officer or director of the
Company and by any person who is the beneficial owner of more
than 10% of the total shares outstanding.

The letter provides PharmChem with 90 calendar days, or until
May 15, 2002, to come into compliance with this rule, which
would require the company's publicly held shares to maintain a
minimum market value of $5 million for a minimum of 10
consecutive trading days during that period. If PharmChem 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 securities to The Nasdaq SmallCap Market, where
it also would have to satisfy continued inclusion requirements
for that market. Market value of publicly held shares on The
Nasdaq SmallCap Market must be $1 million or more.

PharmChem is a leader in the field of providing services to
clients seeking to detect and deter the use of illegal drugs.
PharmChem operates forensic drug testing laboratories in Haltom
City, Texas and London, England.


PILLOWTEX: Committee Has Until March 15 to Challenge Obligations
----------------------------------------------------------------
In a stipulation presented to the Court and approved by Judge
Robinson, the Pre-petition Secured Lenders and the Official
Committee of Unsecured Creditors in the chapter 11 cases of
Pillowtex Corporation and its debtor-affiliates agree to extend
the Committee's deadline for filing challenges to the Lenders'
pre-petition obligations to March 15, 2002 at 4:00 p.m. Eastern
Time.

Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, acted in behalf of the Committee, while
John H. Knight, Esq., at Richards, Layton & Finger, P.A.
represented the Pre-petition Secured Lenders in this matter.
(Pillowtex Bankruptcy News, Issue No. 23; Bankruptcy Creditors'
Service, Inc., 609/392-0900)    


RENCO STEEL: KPMG Raises Going Concern Question After Losses
------------------------------------------------------------
Renco Steel Holdings, Inc. is a holding company incorporated in
Ohio on January 20, 1998 and is a wholly owned subsidiary of The
Renco Group, Inc. On January 29, 1998, Renco contributed to
Renco Steel its interest in its wholly owned subsidiary, WCI
Steel, Inc.

WCI, a niche oriented integrated producer of value-added, custom
steel products, was incorporated in Ohio in 1988 and commenced
operations on September 1, 1988. WCI's primary facility covers
approximately 1,100 acres in Warren, Ohio, with additional
facilities owned by subsidiaries located in Niles and
Youngstown, Ohio, all of which are situated between Cleveland
and Pittsburgh. WCI currently produces approximately 185 grades
of flat rolled custom and commodity steel products. Total
shipments were 1,041,209 tons in fiscal 2001 and 1,265,895 tons
in fiscal 2000. Custom flat rolled products, which include high
carbon, alloy, ultra high strength, silicon electrical and heavy
gauge galvanize steel, constituted approximately 51.5% of net
tons shipped during fiscal 2001 and 52.1% during fiscal 2000.
Major users of WCI products are steel converters, steel service
centers, construction product companies, electrical equipment
manufacturers and, to a lesser extent, automobile and automotive
parts manufacturers.

Renco Steel did not make the interest payment that was due on
February 1, 2002 on its $120 million 10-7/8% Senior Secured
Notes due 2005 due to insufficient liquidity. Renco Steel
anticipates that Renco will provide adequate funds to enable
Renco Steel to pay such interest on outstanding Senior Secured
Notes not owned by Renco by March 1, 2002. Renco has waived its
right to receive the interest payment that was due on February
1, 2002 on the Senior Secured Notes it owns ($59,320,000 face
value). Renco continues to seek additional Senior Secured Notes
to purchase.

The Company's independent auditor, KPMG LLP, issued its report
dated February 6, 2002 with respect to its audit of the
consolidated balance sheets of Renco Steel Holdings, Inc., and
subsidiaries as of October 31, 2001 and 2000, and the related
consolidated statements of operations, shareholder's deficit,
and cash flows for each of the years in the three-year period
ended October 31, 2001. KPMG's report refers to the Company's
recurring losses from operations and net capital deficiency that
raise substantial doubt about the Company's ability to continue
as a going concern.

               Fiscal 2001 Compared to Fiscal 2000

Net sales in 2001 were $413.1 million on 1,041,209 tons shipped
($105.7 million and 284,503 tons shipped for the fourth
quarter), representing a 26.3% decrease in net sales and a 17.7%
decrease in tons shipped compared to 2000. Shipping volume for
the 2001 period was lower due primarily to lower customer demand
resulting from a general slowing in the U.S. economy coupled
with high levels of imported steel. Net sales per ton shipped
decreased 10.4% to $397 in 2001 compared to $443 in 2000, with
net selling prices down 12.2% offset somewhat by changes in
product mix. Shipments of custom carbon, alloy and electrical
steels accounted for 51.5% of total shipments in 2001 compared
to 52.1% in 2000. Net sales per ton shipped for the fourth
quarter of 2001 were $371 compared to $395 for the third quarter
of 2001 and $436 for the fourth quarter of 2000. The decrease in
net sales per ton for the fourth quarter compared to the third
quarter resulted primarily from changes in product mix. On
October 31, 2001, WCI's order backlog was approximately 135,000
net tons compared to approximately 144,000 net tons at October
31, 2000.

Gross margin loss (sales less cost of products sold) was $17.6
million in 2001 compared to gross margin of $73.5 million in
2000. The decrease in gross margin reflects the lower shipping
volume and transaction prices discussed above and higher per ton
production costs resulting from significantly lower production
volume and its effect on fixed operating costs per ton.
Production volume in 2001 was approximately 74% of operating
capacity compared to approximately 89% in 2000. In addition, the
Company recorded inventory valuation charges totaling $2.6
million in the fourth quarter of 2001 compared to $1.2 million
in the fourth quarter of 2000.

Operating loss was $64.7 million, or $62 per ton, in 2001
compared to operating income of $30.8 million, or $24 per ton,
in 2000. The decrease in operating income for the 2001 period
reflects the lower gross margin discussed above along with a
charge of $3.9 million associated with YSC's indefinite idling
of its operating facility on July 15, 2001, a charge of $2.1
million to establish a reserve for amounts due from a
financially distressed steel company and a charge of $1.7
million to write-off costs incurred in an unsuccessful attempt
to acquire another steel maker, Acme Metals, Inc. Excluding
these charges, the operating loss was $57.0 million, or $55 per
ton for fiscal year 2001.

As a result of the items discussed above, the Company had a loss
before taxes of $128.8 million in 2001 compared to a loss before
taxes of $4.5 million in 2000.


SAFETY-KLEEN: Committee Balks at Andersen's Engagement Expansion
----------------------------------------------------------------
The Official Committee of Unsecured Creditors objects to Safety-
Kleen Corp., and its debtor-affiliates' Application [to expand
the scope of their engagement of Arthur Andersen as auditors],
telling Judge Walsh that despite the tens of millions of dollars
that have already been incurred by these estates to pay
Andersen's fees, the Debtors now request authority to spend
millions more to expand further the scope of Andersen's
retention.  The Committee believes that much of this relates to
work Andersen should already have completed.  Moreover, Susheel
Kirpalani, Esq., at Milbank Tweed Hadley & McCloy LLP argues,
"to the extent that Andersen's services are allegedly required
to address the Debtors' internal operating needs, the Committee
believes that the Debtors should not need a Big Five to staff
triage 20 months into these cases".

Even more disturbing to the Committee than the expansion of
Andersen's already broad mandate, the Debtors request
compensation under a section of the Bankruptcy Code which is
intended, presumably, to shield Andersen from creditors' later
questioning whether the fees generated are reasonable in light
of the benefit conferred.  However, as professionals retained in
these cases, Andersen's fees should be and remain subject to the
reasonableness test.

The Committee is not convinced that the expanded scope of
Andersen's retention is necessary at this stage of this case.  
The additional fees requested are substantial -- exceeding $16.5
million.  The Debtors have not sufficiently demonstrated how
these additional services will provide a benefit to the estates
commensurate with the magnitude of the estimated fees that will
be incurred.  The proposed extra fees a re "staggering
considering they will be paid in addition to the tens of
millions of dollars the Debtors have already paid," Mr.
Kirpalani says. The Committee is not convinced that these
services could not be more effectively provided through existing
or future employees of the Debtors at a fraction of the cost.

                         *   *   *

As previously reported, Safety-Kleen Corporation and its related
and subsidiary Debtors brought a second Application for an Order
further modifying and expanding the Debtors' employment and
retention of Arthur Andersen LLP as auditors, accountants and
tax advisors to these chapter 11 estates, nunc pro tunc to June
29, 2000, and authorizing Andersen to be compensated
retroactively for these additional services.  

In May 2001 the Debtors brought their first Application for an
Order expanding and modifying the scope of employment of
Andersen as auditors, accounting and tax advisors to the
Debtors.  By this Application, the Debtors sought to encompass
the additional services identified in six engagement letters
attached to the Application. These additional services included
(i) a review of the processes and supporting systems for the
Debtors' various finance, accounting and administrative
functions; (ii) development of recommendations for the
improvement of these functions; (iii) assistance to the Debtors'
staff, as needed, with the implementation of such
recommendations; (iv) audit of the Debtors' consolidated balance
sheet as of August 31, 2001, together with the related
consolidated statements of income and cash flows for the year
then ending; (v) review of the quarterly financial information
to be included in the Debtors' reports filed with the Securities
& Exchange Commission; (vi) providing personnel to assist the
Debtors' accounting staff in accumulating and analyzing
information required for the completion of the financial
statements; (vii) providing personnel to assist the Debtors with
various tax-related matters; and (viii) assistance with the
preparation of income and property tax returns to be filed in
Puerto Rico.  On July 19, 2001, Judge Walsh entered his Order
granting this Application nunc pro tunc, and declared that
Andersen was to be compensated for the additional services in
accordance with the terms of the various engagement letters.
(Safety-Kleen Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., 609/392-0900)    


SERVICE MERCHANDISE: Selling Store Lease Designation Rights
-----------------------------------------------------------
John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom, in Chicago, Illinois, tells Judge Paine that Service
Merchandise Company, Inc., and its debtor-affiliates own 70
properties in fee simple and are parties to 150 unexpired real
estate leases.  To maximize creditor recoveries in these cases,
Mr. Butler explains that the Debtors must efficiently and timely
dispose of these real estate assets.  Prolonging the disposition
will only bring added expenses to the Debtors, Mr. Butler
anticipates.

Mr. Butler relates that the Debtors extensively sought proposals
from potential buyers and signed confidentiality agreements with
38 entities and individuals who wanted to see the Company's real
estate portfolios. To date, Mr. Butler reports, the Debtors have
received 25 Letters of Intent for small package and "one-off"
property purchases.

After thorough evaluation of the proposals, the Debtors
determined that selling all of their so-called Designation
Rights -- the exclusive right to select, identify and designate
which properties will be conveyed and which leases will be
assumed and assigned to whom -- in one transaction is more
advantageous than a piecemeal sale because:

  (a) it will reduce the Debtors' administrative charges for
      the disposition of the Properties,

  (b) no party in interest is prejudiced by the bulk sale
      as the Properties are available to be purchased from
      the asset rights Purchaser,

  (c) the Purchaser is under fewer constraints than the Debtors,
      and

  (d) the Purchaser is likely to pay more for these rights
      than the Debtors can realize on the Properties through
      a piecemeal auction under current circumstances.

The Debtors ask the Court to included provisions in a Sale
Order:

  (a) that a property sold or assigned to a Designee will be
      allowed to remain "dark" for 9 months after the sale or an
      assignment to enable the Designee to move into a site, and

  (b) that a Designee will be allowed to remodel and make
      changes and to replace and modify existing signage for
      the Designee's proposed use of the Property contained in
      the Designee Notice.

                        Objections

(1) DDR and Community Centers One

The Debtors are leasing stores from:

Lessor                  Store Location
------                  --------------
DDR Downreit, LLC       Store No. 0057
                         Glenway Crossing, Cincinnati, Ohio

                         Store No. 0308
                         North Pointe Plaza, N. Charleston, SC

Community Centers       Store No. 0355
One, Inc.               Woodfield Village, Schumburg, Illinois

                         Store No. 0331
                         Carillon Place, Naples, Florida

John A. Gleason, Esq., at Benesch, Friedlander, Coplan &
Aronoff, LLP in Columbus, Ohio, notes that Section 541 of Title
11 of the Bankruptcy Code does not include anything called
Designation Rights as among those defined as "property of the
estate."  The right of a debtor to assume or reject a lease of a
non-residential real property is a conferred by the Bankruptcy
Code, any are not property classified as property of the
debtors' estate, Mr. Gleason asserts.  Accordingly, Mr. Gleason
contends, the Debtors cannot sell these Designation Rights
pursuant to section 363(b)(1) of the Bankruptcy Code, because
that section only allows the Debtors to sell "property of the
estate."

Mr. Gleason argues that the sale of designation rights under
section 363 of the Bankruptcy Code is contrary to the Bankruptcy
Code's balancing policy and is likely an attempt to circumvent
the requirements of section 365.

Furthermore, Mr. Gleason notes that the proposed Order would
constitute an unlawful taking of Property without just
compensation, violating the Fifth Amendment of the United States
Constitution.

(2) TJX and Marshall

The TJX Companies, Inc. and its affiliate, Marshall of MA, Inc.,
sublessees of the Debtors in 22 leased properties, complain that
the Debtors' motion fails to disclose the effect of the sale to
the subleasee.

Edwin M. Walker, Esq., at Garfinkle, McLemore & Walker, PLLC in
Nashville, Tennessee, recalls that a previous Court order
prohibits and binds Service Merchandise's landlords and lenders
from disturbing TJX's tenancy.

Thus, TJX and Marshall ask Judge Paine that any grant of
designation rights to be made should:

  -- preserve TJX's and its affiliates' rights under the
     Subleases, and

  -- provide that TJX and Marshall are entitled to prior
     notice and an opportunity to be heard regarding any
     proposed sale of Debtors' fee properties or the assumption
     and assignment of any of the Debtors' leasehold interest
     with respect to any property under the Sublease.

                    It's Been Done Before

Service Merchandise isn't proposing something new here, Mr.
Butler tells Judge Paine, reminding him that he's already
approved a sale of designation rights once before in these
cases. See Doc. 932.

A debtor's Designation Rights, like any other right, chose,
claim or interest, Mr. Butler explains, are things that can be
bought and sold.  Bankruptcy policy revolves around maximizing
the value of a debtor's estate for the benefit of creditors.  
Selling Designation Rights does that.  The only issues are
getting the highest price and doing the deal quickly.  This
motion raises no Constitution issue for the Court to ponder.
(Service Merchandise Bankruptcy News, Issue No. 27; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


SHILOH INDUSTRIES: Continuing Initiatives to 'Right-Size' Ops.
--------------------------------------------------------------
Shiloh Industries, Inc. (Nasdaq: SHLO), a leading manufacturer
of engineered welded blanks, first operation blanks, stamped
components and modular assemblies for the automotive and heavy
truck industries, reported results for its first quarter ended
January 31, 2002.

Revenues for the first quarter of fiscal 2002 decreased 12.2% to
$146.0 million, from revenues of $166.2 million for the first
quarter of fiscal 2001. The decrease in revenue is primarily a
result of the loss of revenue due to the sale of Valley City
Steel and the closure of Romulus Blanking, as well as lower
volumes on certain programs from General Motors, Ford and in
heavy truck.

Operating loss was $3.4 million for the first quarter of fiscal
2002 compared to operating income of $6.2 million for the first
quarter of fiscal 2001. The decrease is a result of reduced
revenues not absorbing related fixed costs.  Net loss for the
first quarter of fiscal 2002 was $4.8 million, compared with net
income of $0.6 million, for the first quarter of fiscal 2001.

"Results were disappointing but consistent with our
expectations.  The Company is now refocused on the basics;
conserving and generating cash, optimizing operational
efficiencies, improving quality and delivery, reducing waste
costs and improving capacity utilization," Theodore E. Zampetis,
President and CEO, said.

"Our long-term marketing strategy is to differentiate ourselves
from our competitors by offering product innovation through new
technology.  The driving forces in this strategy are Leadership,
Technology and Process Ownership."

Mr. Zampetis added, "The Company is continuing to 'right-size'
operations through its strategic restructuring initiatives.  
During the first quarter the Company ceased operations at
Romulus Blanking and Canton Die and moved tooling operations at
the Wellington Die facility to the Wellington Stamping facility.
These moves will help to consolidate our operations and reduce
costs."

Headquartered in Cleveland, Shiloh Industries is a leading
manufacturer of engineered welded blanks, first operation
blanks, stamped components and modular assemblies for the
automotive and heavy truck industries. The Company has 16 wholly
owned subsidiaries at locations in Ohio, Georgia, Michigan,
Tennessee and Mexico, and employs approximately 3,000.

                         *  *  *

As reported in the Feb. 12, 2002 edition of the Troubled Company
Reporter, the international rating agency, Standard & Poor's
lowered its ratings on Shiloh Industries Inc. At the same time,
the ratings remain on CreditWatch with negative implications,
where they had been placed December 12, 2001.

According to the report, the rating actions reflect Standard &
Poor's increased concern over the company's near-term operating
outlook and the belief that the company's financial flexibility
has become quite constrained.

     Ratings Lowered; Remain on CreditWatch Negative

     Shiloh Industries Inc.             TO      FROM
       Corporate credit rating          B-      BB-
       Senior secured debt              B-      BB-


STEEL DYNAMICS: S&P Rates Corporate Credit Rating at BB-
--------------------------------------------------------
On March 5, 2002, Standard & Poor's assigned a 'BB-' corporate
credit rating to Fort Wayne, Indiana-based steel minimill Steel
Dynamics Inc. It assigned ratings to Steel Dynamic's $350
million senior secured bank credit facility and to the company's
proposed $200 million senior unsecured notes due 2009, which
will be sold pursuant to Rule 144A with registration rights.

Borrowing under the new credit facility together with proceeds
from the proposed notes will be used to refinance existing debt.
Pro forma for the deal, Steel Dynamics total debt will total
approximately $570 million.

The $350 million senior secured bank credit facility is rated
the same as the corporate credit rating. The facility, which
consists of a $100 million term loan A due 2007, a $175 million
term loan B due 2008 and a $75 million revolving credit facility
due 2007, is secured by substantially all of the company's
assets. The facility is also guaranteed on a senior secured
basis by the company's subsidiaries. However, based on Standard
& Poor's simulated default scenario, it is not clear that a
distressed enterprise value would be sufficient to cover the
entire loan facility. Pricing on the bank facility is based upon
a leverage grid. Morgan Stanley is the sole lead arranger and JP
Morgan is acting as administration agent.

The ratings reflect Steel Dynamic's low-cost position in the
highly competitive minimill segment of the domestic steel
industry and its aggressive financial policy. The company
benefits from a low-cost production base, a somewhat diverse
product mix, and its close proximity to its customers and
suppliers.

The company has continued its policy of growth through internal
expansion and is currently constructing a 1.3 million ton steel
structural and rail manufacturing facility in Whitley, Ind. at
an estimated cost of $350 million. There are inherent start-up
risks associated with such large projects, however, Steel
Dynamic's management has been successful in bringing its
facilities on line quickly and relatively cheaply. Although the
company is at a disadvantage in that most of its sales are to
the volatile spot market, which typically experiences wider
swings in volumes and prices, the company has maintained higher-
than-average industry volumes and capacity levels because of its
strategic location and lower gauge product, which can be used in
higher margin, specialty applications. Steel Dynamics is also
well-positioned to take market share from some of its struggling
competitors, as customers are switching to healthier suppliers.
Competition remains intense from other efficient competitors in
traditional minimill products and from imports. Owing to global
overcapacity and the recession, steel prices in 2000 and 2001
were at their lowest levels in decades. Following several
quarters of capacity and inventory reductions, combined with
efforts by the U.S. government to stem the flood of imports, the
U.S. steel industry has recently passed-through a 10% price
increase in sheet products. Additional price increases are being
considered but the economy will need to continue to strengthen
for them to be realized.

In contrast to the integrated steel producers, minimills such as
Steel Dynamics benefit from a non union workforce, a lack of
legacy costs, and a less capital-intensive production process.
Steel Dynamics debt leverage is currently very high for the
ratings, with debt to EBITDA of almost 6 times, as a result of
its aggressive expansion program. With its structural mill now
near completion, spending levels at Steel Dynamics should
decline significantly for the next couple of years and preclude
further debt increases. Expected improvements in profitability
from an enhanced product mix and higher capacity utilization,
mainly due to the start-up of its new structural facility,
should help strengthen debt to EBITDA to a more appropriate 3.5x
in the next few years. Financial flexibility is aided by full
availability under its $75 million revolving bank credit
facility and a manageable debt maturity schedule.

                       Outlook

Although steel market conditions remain challenging and debt
leverage is high, expected improvements in profitability and
lower capital spending levels should enable Steel Dynamics to
bring its financial profile in line with its ratings in the
intermediate term.


STELLAR FUNDING: S&P Hatchets CBO's Ratings to Junk Level
---------------------------------------------------------
Standard & Poor's lowered its ratings on the class A-3 and A-4
notes issued by Stellar Funding Ltd. and co-issued by Stellar
Funding CBO Corp. Concurrently, both ratings are removed from
CreditWatch with negative implications, where they were placed
on Jan. 17, 2002.

The lowered ratings reflect the continuing deterioration in the
collateral pool credit quality and an additional $20.25 million
of new defaults since the ratings were lowered on April 25,
2001. The rating on the class A-3 notes was previously lowered
to single-'A'-minus from triple-'A' on Feb. 13, 2001, and was
lowered again on April 25, 2001 to triple-'B'-minus from single-
'A'-minus. Additionally, the rating on the class A-4 notes was
previously lowered to double-'B' from single-'A' on Feb. 13,
2001, and was then lowered to single- 'B' from double-'B' on
April 25, 2001.

According to the Feb. 8, 2002 trustee report, a total of $32.75
million (or approximately 14.35% of the total collateral pool)
is in default.

Since the closing of the transaction, approximately $44.9
million of defaulted securities have been sold or exchanged at a
weighted average recovery rate of approximately 15.6%.
Furthermore, the transaction experienced additional par loss due
to the sale of several credit risk securities at low price
levels.

The current performing pool has an aggregate par value of $195.5
million, compared to the effective date's required collateral
amount of $300 million. In contrast, only $33.8 million of the
principal amount of the liability has been paid down due to
special redemptions since the transaction's inception.

Due to the significant credit deterioration in the collateral
pool, the transaction is currently failing three out of four
categories in Standard & Poor's issuer rating distribution test.
The obligors with issuer credit ratings in the triple-'C' and
double-'C' range comprise more than 24.7% of the performing
collateral pool. Furthermore, approximately 22.1% of the
obligors in the performing collateral pool have ratings that are
currently on CreditWatch negative, of which 11.13% are rated in
the triple-'C' and double-'C' range.

One of the causes of the dramatic credit migration and par
erosion in the collateral pool has been the higher-than-average
exposure in several issuers whose credit ratings have migrated
downward significantly or who have defaulted in recent months.

The new defaults have resulted in the continued breaching of the
overcollateralization test, where defaults are immediately
excluded from the collateral pool for the purpose of calculating
the overcollateralization ratio. The overcollateralization test
(currently 75.86% versus the required minimum of 101.5%) has
been out of compliance since May 2000. Consequently, during the
previous four payment dates, including Jan. 15, 2002, a total of
$33.8 million in principal was paid to the class A-2 and A-3
noteholders. However, the improvement to the
overcollateralization ratio resulting from these special
redemptions was not sufficient to bring the
overcollateralization test back into compliance.

As a part of its analysis, Standard & Poor's reviewed the
results of recent cash flow model runs. These runs stressed
various parameters that are instrumental in the performance of
this transaction, and are used to determine its ability to
withstand various levels of default. The stressed performance of
the transaction was then compared to the projected default
performance of the current collateral pool. Standard & Poor's
found that the projected performances of the class A-3 and A-4
notes, given the current quality of the collateral pool, were
not consistent with their prior ratings. Consequently, Standard
& Poor's has lowered its ratings on these notes to their new
levels.

Standard & Poor's noted that Stellar Funding Ltd. is one of
three transactions originally managed by Northstar Investment
Management Corp.

The other two transactions, Northstar CBO 1997-1 Ltd. and
Northstar CBO 1997-2 Ltd., had also experienced substantial
credit deterioration due to par erosion and credit migration in
their respective collateral pools.

Standard & Poor's will continue to monitor its ratings on the
class A-3 and A-4 notes.

     Ratings Lowered and Removed From Creditwatch Negative

        Stellar Funding Ltd./ Stellar Funding CBO Corp.

                                   Rating

              Class    To          From

              A-3      CCC         BBB-/Watch Neg
     
              A-4      CCC-        B/Watch Neg


SUN HEALTHCARE: Resolves THCI's Concerns Re Secured Claims
----------------------------------------------------------
Sun Healthcare Group, Inc., and debtor-affiliates own 4
healthcare properties subject to mortgages in favor of THCI
Mortgage. The properties are located at:

    (1) East Boston, Massachusetts;
    (2) Brookline, Massachusetts;
    (3) Denver, Colorado; and
    (4) Stamford, Connecticut.

In the Debtors' Plan of Reorganization, THCI objected to the
treatment of claims secured by the Mortgaged Properties. To
settle their disputes, both parties agree that:

  1. The Debtors shall amend the Plan to reflect the terms set
     forth in this Stipulation;

  2. Neither THCI Company nor THCI Mortgage shall object to the
     Plan. THCI Mortgage shall be deemed to have voted all
     claims in subclasses B-3, B-4, B-5 and B-6 in favor of the
     Plan;

  3. With respect to the East Boston Property:

     (a) The Debtors shall surrender possession of and title to
         the East Boston Property to THCI Mortgage. THCI
         Mortgage shall have the right to secure such possession
         and title, at its option, either by foreclosing on the
         mortgage secured by the East Boston Property or by
         requesting that the Debtors execute a Deed in Lieu of
         Foreclosure Agreement in form and substance reasonably
         acceptable to the Debtors and THCI Mortgage. Such
         surrender of possession and title shall occur
         immediately after the discharge of the final resident
         from and the closure of the East Boston Facility;

     (b) As part of the closure process, the Debtors shall
         petition the Massachusetts Department of Public Health
         for permission to take all licensed nursing home beds
         in the East Boston Facility out of service for a
         minimum of 1 year. The Debtors shall use commercially
         reasonable efforts to transfer all of their right,
         title, and interest with respect to the licensure and
         operation of the East Boston Beds to THCI Mortgage or
         its designee; provided, however, there can be no
         assurances that the Department of Public Health will
         grant the Debtors request with respect to the East
         Boston Beds or that the Debtors will, as a matter of
         law, be entitled to transfer any right, title and
         interest in and to the East Boston Beds to THCI
         Mortgage; and

     (c) The Debtors shall proceed to close the East Boston
         Facility in accordance with the requirements of
         applicable law. Until such closure or transfer, THCI
         Mortgage authorizes the Debtors to continue operating
         the East Boston Property. The Debtors shall be
         responsible for all operating losses at the East Boston
         Property until closure;

  4. With respect to the Brookline Property:

     (a) The Debtors shall surrender possession of and title to
         the Brookline Property to THCI Mortgage. THCI Mortgage
         shall have the right to secure such possession and
         title, at its option, either by foreclosure on the
         mortgage secured by the Brookline Property or by
         requesting that the Debtors execute a Deed in Lieu of
         Foreclosure Agreement in form and substance reasonably
         acceptable to the Debtors and THCI Mortgage. Such
         surrender of possession and title shall occur, either:

           (i) immediately after the discharge of the final
               resident from and the closure of the Brookline
               Facility, or

          (ii) immediately prior to the transfer of operational
               and financial responsibility for the Brookline
               Facility to a new operator identified by TCHI
               Mortgage;

     (b) The Debtors shall make a monthly payment of $50,000 per
         month for the next 90 days for occupancy of the
         Brookline Property;

     (c) The Debtors shall use commercially reasonable efforts
         to facilitate the transfer of operations at the
         Brookline Facility to a new operator identified by
         THCI Mortgage. If the transfer contemplated by this
         paragraph has not occurred within 270 days after
         February 4, 2002, the Debtors shall be authorized, upon
         written notice to THCI Mortgage, to commence closure of
         the Brookline Facility;

     (d) Until such closure or transfer, THCI Mortgage
         authorizes the Debtors to continue operating the
         Brookline Facility. Prior to transfer, the Debtors
         shall be responsible for any operating losses at the
         Brookline Facility for a 90-day period after February
         4, 2002. Thereafter, THCI Mortgage shall be responsible
         for all operating losses;

  5. With respect to the Stamford Property:

     (a) The Debtors shall have the option to either:

         (i) surrender the Stamford Property to THCI Mortgage
             and transfer operations of the Stamford Facility to
             a new operator designated by THCI Mortgage, or

        (ii) surrender the Stamford Property to THCI Mortgage
             and lease the Stamford Property back from THCI
             Mortgage;

         The Debtors shall notify THCI Mortgage of their
         election of option (i) or (ii) by March 6, 2002. If the
         Debtors elect option (i) but the Parties are unable to
         conclude any proceedings necessary to accomplish a
         transfer of operations within 60 days after February 4,
         2002, then the Debtors shall lease back the Stamford
         Property, unless the Parties agree otherwise;

     (b) The Debtors shall surrender possession of and title to
         the Stamford Property to THCI Mortgage. THCI Mortgage
         shall have the right to secure such possession and
         title, at its option, either by foreclosing on the
         mortgage secured by the Stamford Property or by
         requesting that the Debtors execute a Deed in Lieu of
         Foreclosure Agreement in form and substance reasonably
         acceptable to the Debtors and THCI Mortgage. Such
         surrender of possession and title shall occur, as
         applicable, either:

         (i) immediately after the discharge of the final
             resident from and the closure of the Stamford
             Facility, or

        (ii) immediately prior to the transfer of operational
             and financial responsibility of the Stamford
             Facility to a new operator identified by THCI
             Mortgage;

     (c) If the Debtors advise THCI Mortgage of their intention
         to transfer the operations of the Stanford Property
         back to THCI Mortgage, then:

         (i) the Debtors shall transfer operations at the
             Stamford Property to a new operator identified by
             THI Mortgage on a basis that permits the new
             operator to obtain all regulatory approvals
             necessary to operate the Stamford Facility;

        (ii) if the transfer contemplated by this paragraph has
             not occurred within 270 days February 4, 2002, the
             Debtors shall be authorized, upon written notice to
             THCI Mortgage, to commence closure of the Stamford
             Property, provided, however, that nothing herein
             shall require the Debtors to close the Stamford
             Facility if not permitted to do so under any
             applicable agreement or applicable law;

       (iii) the Debtors shall make monthly payments to THCI
             Mortgage in the amount of $125,000 per month for a
             90 day period after entry of this Order for
             occupancy of the Stamford Property, and the Debtors
             shall pay the $125,000 during the 30-day notice
             period referred to supra; and

        (iv) until such closure or transfer, THCI Mortgage
             authorizes the Debtors to continue operating the
             Stamford Facility. Prior to transfer, the Debtors
             shall be responsible for any operating losses at
             the Stamford Property for a 90-day period after
             February 4, 2002. Thereafter, THCI Mortgage shall
             be responsible for all operating losses. The
             Parties shall mutually cooperate in all efforts to
             transfer operations a the Stamford Facility to a
             new operator;

     (d) If the Debtors advise THCI Mortgage of their intention
         to have THCI Mortgage lease back the Stamford Facility
         to the Debtors, then:

         (i) the lease shall be a "New Lease"; and

        (ii) the rent for the New Lease for the Stamford
             Property shall be $125,000 per month, which is
             $1,500,000 per annum;

  6. With respect to the Denver Property:

     (a) The Debtors shall surrender possession of and title to
         the Denver Property to THCI Mortgage. THCI Mortgage
         shall have the right to secure such possession and
         title, at its option, either by foreclosing on the
         mortgage secured by the Denver Property or by
         requesting that the Debtors execute a Deed in Lieu of
         Foreclosure Agreement in form and substance reasonably
         acceptable to the Debtors and THCI Mortgage. Such
         surrender of possession and title shall occur
         immediately prior to the commencement of the term of
         the New Lease;

     (b) THCI Mortgage shall lease back the Denver Property to
         the Debtors. The lease shall be a "New Lease"; and

     (c) The rent for the New Lease for the Denver Property
         shall be $1,200,000 per annum;

  7. The transfers of operations contemplated by this
     Stipulation shall be accomplished in accordance with state
     and federal law;

  8. The Debtors are obligated to pay all costs associated with
     closure of the East Boston Facility. IF either the
     Brookline or Stamford Facilities are closed, the Debtors
     shall pay closure costs subject to reimbursement of
     operating losses by THCI Mortgage as set forth herein.
     Nothing shall require THCI Mortgage to reimburse any
     closure cost incurred within the 90-day periods;

  9. Any transfer of these facilities shall be accomplished
     pursuant to the Debtors' court-approved Operations Transfer
     Agreement, as modified to the extent necessary to conform
     to the terms of this Stipulation or as otherwise agreed to
     by the Parties. The Debtors shall have no obligation to
     obtain any agreement from federal or state regulators
     regarding successor liability under the Medicare or
     Medicaid programs in connection with any transfer of
     operations at the Mortgaged Properties. The Debtors agree
     that with respect to these facilities, in the event that
     THCI Mortgage or its designee takes by assignment the
     Medicare or Medicaid provider agreements, then the Debtors
     shall indemnify THCI Mortgage for any successor liability
     imposed on account of the Debtors' pre-transfer operations.
     With respect to any of the Mortgaged Properties transferred
     to a new operator, THCI shall indemnify the Debtors from
     and against any post-transfer liabilities they incur on
     account of the assumption of contracts, except with respect
     to Medicare and Medicaid contracts, related to such
     facilities;

10. During any period in which the Debtors continue to operate
     the Mortgaged Properties and THCI Mortgage is responsible,
     in whole or in part, for operating losses hereunder, the
     Debtors will submit to THCI Mortgage profit and loss
     statements prepared based on the accrual basis of
     accounting for the immediately preceding month within 30
     days after the end of each month during such period. In
     the event that any Facility Statement for any month shows
     a net operating loss for any period for which THCI Mortgage
     is responsible hereunder, THCI Mortgage will reimburse the
     Debtors for such operating loss within ten business days
     after its receipt of the Facility Statement;

11. As to the Leased Facility located at Randolph,
     Massachusetts. The Parties agree that:

     (a) The Debtors shall assume the lease for the Randolph
         Facility. The Parties agree that the lease for the
         Randolph Facility shall be terminated upon execution
         of a new lease for the Randolph Facility. The new
         Randolph lease shall be a "New Lease";

     (b) The Debtors are authorized to sublease the Randolph
         Facility to a new operator. THCI hereby consents to the
         sublease of the Randolph Facility. No such sublease
         shall release any of the Debtors from the terms of
         their obligations under the Randolph lease or lease
         guaranty. THCI shall not be entitled to any proceeds
         from or rentals under the sublease;

     (c) The rent of the New Lease for the Randolph Facility
         shall be $1,344,178 per annum; (Sun Healthcare  
         Bankruptcy News, Issue No. 33; Bankruptcy Creditors'
         Service, Inc., 609/392-0900)   


SWAN TRANSPORTATION: Engages Reed Smith as Bankruptcy Co-Counsel
----------------------------------------------------------------
Swan Transportation Company obtained approval from U.S.
Bankruptcy Court for the District of Delaware to employ Reed
Smith LLP as its co-counsel effective as of the Petition Date.

As Debtor's co-counsel, Reed Smith is expected to:

     a) provide legal advise with respect to the Debtor's powers
        and duties as debtor-in-possession in the continued
        operation of its business and management of its      
        property;

     b) prepare on behalf of the Debtor all necessary
        application, motions, answers, orders, reports, and
        other legal papers;

     c) appear in court to protect the interests of the Debtor
        in its estate;

     d) advise on local practices and procedures and
        determinative case law within the jurisdiction; and

     e) such other tasks and duties that the Debtor requests
        that are reasonable, not duplicative of the services
        provided by Neligan, Tarpley, Stricklin, Andrews & Foley
        L.L.P. and are both economically and more effeciently
        performed by local counsel.

The professionals that are presently assigned to the Debtor's
case and their customary hourly rates are :

   Paralegal     Kelly Gordon                 $145 per hour
   Paralegal     John Lord                    $145 per hour
   Associate     Jan A.T. van Amerongen, Jr.  $260 per hour
   Partner       Tobey M. Daluz               $365 per hour
   Partner       Kurt F. Gwynne               $365 per hour

Swan Transportation Company filed for chapter 11 protection on
December 20, 2001.  Tobey Marie Daluz, Esq., Kurt F. Gwynne,
Esq. at Reed Smith LLP and Samuel M. Stricklin, Esq. at Neligan,
Tarpley, Stricklin, Andrews & Folley, LLP represent the Debtor
in its restructuring efforts.  When the Company filed for
protection from its creditors, it listed estimated assets and
debts of more than $100 million.


TAUBMAN CENTERS: Fitch Concerned About Leasing & Financing Risks
----------------------------------------------------------------
Fitch Ratings has placed its 'BB' preferred stock rating for
Taubman Centers, Inc. on Rating Watch Negative. The rating watch
affects approximately $300 million of outstanding securities,
including $200 million series A 8.30% cumulative redeemable
preferred stock, $75 million series C 9% cumulative redeemable
preferred units, and $25 million series D 9% cumulative
redeemable preferred units.

Fitch's rating action is precipitated by concerns regarding the
company's $1.3 billion development pipeline and related leasing
and financing risks. Taubman Centers' high exposure to variable
rate construction financing, and the slower than anticipated
lease-up and stabilization of its five unstabilized development
properties are growing rating concerns. Higher vacancies and
lower percentage rents for the company's stabilized properties,
which has the potential to stress operating margins and fixed
charge coverage levels, are also credit negatives. Additionally,
capacity for refinancing of construction loans could be impaired
by rising interest rates, less favorable CMBS markets, and lower
mall valuations. When Taubman is finally able to stabilize the
development pipeline and term out its floating-rate exposure,
which is currently approximately 46% of total debt, refinancings
may have a negative impact on interest and fixed charge coverage
levels. These negative rating factors are magnified by an
economic concentration of the portfolio into 20 assets, the use
of joint ventures, and a fully encumbered portfolio. Fitch is
watching Taubman Centers' performance for evidence of asset
stabilization on its development pipeline, a reduction of
floating interest rate exposure, and a return of fixed charge
coverage and operating margins to historical levels.

Fitch's ratings also recognizes the quality of Taubman's mall
assets, which represent a formidable portfolio generating
industry leading productivity, as well as the company's proven
development expertise, which spans multiple retail cycles. Fitch
believes that Taubman's favorable market demographics, long
lease terms and lower ratio of percentage rents bolsters
revenues and enhances the stability of earnings in the core
portfolio.

Public since 1992, Taubman Centers, Inc. is a $3.4 billion
(market capitalization) developer and owner of upscale shopping
centers. The company currently has an interest in 20 shopping
centers, 12 of which are fully consolidated and five of which
are in stabilization. Currently 55% leveraged to market
capitalization, the portfolio is fully encumbered with
approximately 1.2 times fixed charge coverage. The common equity
of Taubman Centers, Inc. is approximately 35% owned by members
of the Taubman family.


TELESYSTEM INT'L: Swings-Up Q4 2001 EBITDA Results to $38 Mill.
---------------------------------------------------------------
Telesystem International Wireless Inc. (TSE:TIW) (Nasdaq:TIWI)
reported its results for the fourth quarter and year ended
December 31, 2001.

Consolidated operating income before depreciation and
amortization (EBITDA) was $37.7 million for the fourth quarter
of 2001 compared to negative EBITDA of $14.0 million for the
same 2000 period. For 2001, EBITDA was $121.6 million compared
to $5.4 million for 2000. The healthy EBITDA improvement in 2001
was driven by the strong performance of the Company's cellular
operations in Romania - which achieved record subscriber growth
and positive operating income for both the fourth quarter and
2001 - and the narrowing start-up losses of its fast growing
cellular operations in the Czech Republic.

With 566,200 net additions for the fourth quarter, TIW's total
cellular subscribers increased 95% to 2,936,000 as of December
31, 2001 compared to 1,508,900 subscribers at the end of 2000.
The Company's proportionate subscribers nearly doubled to
673,200 in 2001 - after taking into account the issuance of
Units during the year which reduced TIW's economic interest in
ClearWave from 100% to 45.5% - compared to 344,000 subscribers
at the end of 2000 on a comparable basis. On a pro-forma basis,
after giving effect to the February 2002 recapitalization by
which TIW increased its economic interest in ClearWave to 85.6%,
TIW's proportionate subscribers at year-end 2001 totaled
1,261,000.

"Our 2001 results in Romania are truly exceptional with a strong
financial performance and the net addition of over 831,800
subscribers for 2001, including a quarterly record of 380,900
net new subscribers for the fourth quarter. In the Czech
Republic, we are rapidly growing market share and approaching
EBITDA break-even on a quarterly basis less than two years after
commercial launch," said Bruno Ducharme, President and Chief
Executive Officer of TIW. "During the past year, we have also
taken the necessary steps to significantly de-leverage our
balance sheet and thereby protect the value of TIW's assets for
the benefit of all stakeholders."

Results of operations and other operating data for 2001 and 2000
exclude those of the Company's Brazilian minority-owned
affiliates which are now accounted for as discontinued
operations.

             Impact of Recapitalization on Balance Sheet
                       and Income Statement

On February 28, 2002, TIW successfully completed a comprehensive
financial restructuring and recapitalization which began in
2001. This recapitalization resulted in a reduction in the
amount of senior debt and convertible debentures of nearly $700
million and in a significant increase in TIW's economic
ownership in ClearWave N.V., through which the Company controls
cellular operations in Romania and the Czech Republic. The
Company also raised gross proceeds of $66.7 million from the
issuance of new equity. As a result of this recapitalization,
TIW has strengthened its financial position and asset base.

On a pro-forma basis, after giving retroactive effect to the
increase of the Company's equity ownership in ClearWave from
45.5% to 85.6% as if it had occurred at the beginning of 2001,
TIW's proportionate revenues from continuing operations would
have been $237.3 million which is more than 80% higher than
actual proportionate results for 2001. On the same pro-forma
basis, proportionate EBITDA for the year would have been $73.1
million as compared to actual proportionate results of $27.9
million and proportionate net debt would have amounted to $445.9
million as of December 31, 2002.

           Appointments to the Board of Directors

The Company also announces changes to its Board of Directors,
which comprises eight members effective Tuesday, March 5, 2002.
The directors are Daniel Cyr, Jacques A. Drouin, Martin Fafard,
Michael R. Hannon, C. Kent Jespersen, Eva Lee Kwok, Jonathan
Meggs and Charles Sirois, who continues as Chairman of the
Board.

                    Results of Operations

Consolidated service revenues for the fourth quarter of 2001
increased 50.0% to $144.7 million compared to $96.5 million for
the same 2000 period. EBITDA improved to $37.7 million compared
to negative EBITDA of $14.0 million for the fourth quarter last
year. This improvement reflects higher EBITDA in Romania,
reduced negative EBITDA in the Czech Republic and a reduction in
unallocated corporate overhead. Operating income was $2.7
million compared to an operating loss of $39.7 million for the
fourth quarter of 2000, while loss from continuing operations
was $15.9 million compared to a loss of $28.2 million. Net loss
for the fourth quarter was $68.1 million with most of such loss
attributable to loss from discontinued operations in Brazil and
Western Europe amounting to $52.2 million. Net loss for the
corresponding quarter in 2000 was 68% higher at $114.2 million
or $7.70 per share and included a loss of $86.0 million from
discontinued operations.

For 2001, consolidated service revenues increased 48.9% to
$495.2 million compared to $332.5 million for 2000. EBITDA
improved to $121.6 million compared to $5.4 million for last
year, reflecting the strong performance in Romania and lower
negative EBITDA in the Czech Republic. Operating loss was $0.4
million compared to an operating loss of $85.0 million for 2000,
while income from continuing operations was $162.4 million
compared to a loss from continuing operations of $19.7 million
in 2000. Income from continuing operations for 2001 includes a
$238.9 million gain arising from the Company's successful
exchange offer to holders of its 13.25% and 10.5% senior
discount notes due 2007. Income for 2001 also includes a loss on
investment of $10.7 million as compared to a gain of $85.7
million in 2000. The loss on investment for 2001 excludes the
$106.1 million gain on the sale of the Company's B-Band
affiliates reported earlier in 2001 as the amount has been
reclassified to loss from discontinued operations. Total loss
from discontinued operations was $416.1 million for 2001 as
compared to $335.7 million for 2000 and accounted for most of
the Company's net loss for both periods. Net loss for 2001
amounted to $253.7 million as compared to $355.4 million in
2000.

                         Segmented Results

MobiFon S.A. - Romania

MobiFon added 380,900 net subscribers for the fourth quarter to
surpass the two-million milestone, ending 2001 with 2,003,600
customers. This compares to the net addition of 171,700
subscribers for the fourth quarter of 2000 to reach 1,171,800
subscribers at the end of the year. The pre-paid/post-paid mix
at the end of 2001 was 63/37 and the average monthly churn rate
for the year was 1.7%. At the end of 2001, the Company estimates
MobiFon held a 53% share of the wireless market in Romania.

Service revenues increased 21% for the fourth quarter to $99.2
million compared to $81.8 million for the same period last year.
SG&A expenses were stable at $27.9 million compared to $27.6
million but declined to 28% of service revenues compared to 34%
in the fourth quarter of 2000. EBITDA was $47.5 million, up 40%
compared to $33.8 million for the same quarter last year.
Operating income rose 31% to $24.7 million compared to $18.8
million for the fourth quarter of 2000.

For 2001, service revenues totaled $359.9 million, or 20% higher
than $299.5 million for the previous year. SG&A expenses
decreased to $88.8 million, or 25% of service revenues, from
$96.7 million, or 32% of service revenues for 2000. EBITDA
increased 43% to $186.4 million compared to $130.1 million, and
EBITDA margin improved to 52%. Operating income was up 69% to
$108.6 million compared to $64.2 million for the previous year.

Cesky Mobil a.s. - Czech Republic

Cesky Mobil added 178,100 net subscribers in the fourth quarter
of 2001 to end the year with 858,400 customers, a 185% increase
compared to 301,700 subscribers at the end of 2000. The company
gained momentum throughout 2001, reflecting the strong awareness
achieved by its Oskar brand, launched less than two years ago.

Cesky Mobil estimates it accounted for approximately 21% of net
additions in the Czech Republic for the year and the company
estimates it held a 12% share of the national cellular market at
the end of 2001, compared to 7% for 2000. Strong growth was
achieved in post-paid subscribers and they accounted for 28.5%
of the total customer base at the end of the year.

Service revenues increased to $43.3 million compared to $11.9
million for the fourth quarter of last year. Negative EBITDA was
reduced to $5.5 million for the quarter compared to negative
$28.6 million for the corresponding period in 2000. This strong
improvement reflects the revenue impact of rapid subscriber
growth and lower SG&A expenses which declined to $19.0 million,
or 44% of service revenues, compared to $21.8 million, or 183%
of service revenues, in the fourth quarter of 2000. Operating
loss declined to $17.6 million compared to $38.5 million a year
ago.

For 2001, service revenues increased to $125.9 million compared
to $21.5 million for 2000, reflecting rapid subscriber growth
and the fact that the commercial service roll-out occurred in
March 2000. SG&A expenses of $65.9 million represented 52% of
2001 service revenues compared to $63.4 million or 295% of 2000
service revenues. Negative EBITDA was reduced by 49% to $41.6
million compared to $82.0 million last year.

Brazil

The sale of the Company's two Brazilian B-Band operations in the
first quarter of 2001, the abandonment of its Western European
SMR and ESMR operations in the second quarter and the recently
completed issuer bid for ClearWave Units has emphasized the
relative strategic value for TIW of its Central and Eastern
European operations (CEE). Pro-forma for the recent increase in
ownership of ClearWave fourth quarter 2001 proportionate net
subscriber additions in CEE represented 94.6% of total
proportionate net additions of all of the Company's cellular
affiliates in the fourth quarter 2001. As it relates to its two
remaining minority investments in Brazilian A-Band operations,
Telemig Celular and Tele Norte Celular, TIW has been reviewing
its strategic alternatives for several months. On March 5, 2002,
TIW has formally adopted a plan to dispose of its Brazilian
operations by way of a sale of its equity interests within the
next twelve months.

As a result of the adoption of the plan, assets, liabilities and
results of operations of the Brazilian cellular joint venture
operations have been reported in the Company's consolidated
financial statements prepared under Canadian GAAP as
discontinued operations for all periods presented.

                         Corporate and Other

The Company's wireless operations in India and Mexico, and
corporate activities recorded negative EBITDA of $4.2 million
for the fourth quarter and $23.3 million for 2001, compared to
negative EBITDA of $19.2 million and $42.8 million,
respectively, for the corresponding 2000 periods. Unallocated
corporate overhead accounted for most of the EBITDA loss for
both 2001 and 2000.

                    Liquidity and Capital Resources

As of December 31, 2001, the Company held cash and cash
equivalents of $85.5 million, including $30.1 million held at
the corporate level. Total consolidated indebtedness as of
December 31, 2001 was $ 912.2 million, including $ 290.7 million
at the corporate level, $261.2 million at MobiFon and $360.3
million at Cesky Mobil. As of December 31, 2001, corporate level
indebtedness included $83.5 million due under the Company's bank
facility and $203.1 million in 14% senior guaranteed notes and
accrued interest thereon.

Investing activities for the fourth quarter used cash of $141.8
million, mainly related to the acquisitions of capital assets in
Romania and the Czech Republic. For 2001, investing activities
used cash of $303.7 million, reflecting investments in the
Company's cellular networks in Central/Eastern Europe.

Financing activities for the fourth quarter provided cash of $
119.3 million, including $91.6 million in reversal to cash of
amounts which were reported as restricted cash at the end of the
third quarter and net proceeds of $14.5 million from a private
placement of 24.5 million Special Warrants each convertible into
one Subordinate Voting Share or one non-voting preferred share.
The private placement was made pursuant to the terms of an
agreement between the Company and certain stakeholders entered
into during the fourth quarter of 2001 and which led to the
successful recapitalization of the Company in February 2002. For
2001, financing activities provided cash of $332.6 million,
which includes the net proceeds of $248.6 million from the issue
of Units in the first quarter of the year.

In February 2002, the Company completed an issuer bid for its
CDN $150 million 7% Equity Subordinated Debentures, converted
all of its $300 million 7.75% Convertible Debentures into
shares, raised $51.7 million in gross proceeds and acquired 33.7
million Units from the issuance of equity securities and
converted all of its outstanding Multiple Voting Shares into
Subordinate Voting Shares.

The Company was successful in retiring CDN $145 million in
principal amount of ESDs with the issuance of 37.7 million
Subordinate Voting Shares, 3.7 million warrants to purchase
Subordinate Voting Shares at a price of CDN $1.61 on or before
September 30, 2002, 2.5 million warrants to purchase Subordinate
Voting Shares at a price of CDN $1.61 on or before March 31,
2003 and the payment of CDN $6.8 million ($4.2 million). Terms
of the remaining ESDs were amended to extend their maturity to
December 2006, reduce their conversion price to CDN $4.40 per
share and reduce the amount of principal to CDN $1.25 million
($0.8 million).

The Company converted all of the $300 million CDs and the
accrued and unpaid interest thereon into 154.5 million
Subordinate Voting Shares and has undertaken to issue to certain
holders warrants to purchase up to 15 million shares at a price
of $1.00 on or before September 30, 2002.

In connection with the Company's exchange offer to the holders
of Units and the financing commitments under the Agreement, the
Company acquired 33.7 million Units each including one
subordinate voting share of ClearWave N.V. and raised $51.7
million in gross proceeds from the issuance of an aggregate of
269.2 million Subordinate Voting Shares and Special Warrants,
4.8 million warrants to purchase Subordinate Voting Shares at a
price of $1.00 on or before March 31, 2003 and 8.5 million
warrants to purchase Subordinate Voting Shares at a price of CDN
$1.59 on or before March 31, 2003. The acquisition of Units
resulted in an increase in TIW equity and voting interest in
ClearWave to 85.6% and 94.9% respectively.

As of February 28, 2002 and following the recapitalization, the
number of shares and share equivalents outstanding was 502.2
million. With all options and warrants exercised and all
convertible securities converted, total number of shares issued
would be 539.8 million.

Also in February 2002 and as part of its recapitalization plan,
the Company reduced the amount owing under its corporate credit
facility by $8.5 million to $75.0 million and amended the terms
of the facility to allow for extensions of its maturity to up to
December 15, 2002. Considering the short term maturity of the
corporate credit facility, committed cash obligations of the
Company for the upcoming 12 months exceed its committed sources
of funds and cash on hand.

TIW is a global mobile communications operator with over 2.9
million total subscribers worldwide. The Company's shares are
listed on the Toronto Stock Exchange ("TIW") and NASDAQ
("TIWI").


VM LABS INC: Genesis Microchip Pitches Highest Bid for Assets
-------------------------------------------------------------
Genesis Microchip Inc. (Nasdaq:GNSS), a world leader in the
development of display technologies, announced that it had won
an auction in bankruptcy court to acquire substantially all of
the assets of VM Labs Inc., including all patents, trademarks
and intellectual property for $13.6 million in cash. The
transaction is expected to close within 30 days, and is subject
to the satisfaction of customary conditions. Amnon Fisher,
Genesis Microchip's President and Chief Executive Officer said,
"With the combination of VM Labs MPEG decoder technology and
Genesis portfolio of consumer electronics display technologies,
we believe that we would be well-positioned to effectively
compete in the high growth DVD market."

Mr. Fisher further stated that, "Through this acquisition
Genesis expects to expand its product offering in the consumer
electronics market. We believe the combination of VM Labs's DVD
decoding solutions with our Faroudja DCDi progressive scan
technology provides the building blocks for the next generation
of integrated system on a chip solutions."

VM Labs is a fabless semiconductor company focused on the
rapidly growing DVD market. The company's "NUON" branded
semiconductors and software have been used in DVD players and
networked set-top boxes from leading companies such as Toshiba,
Samsung and Motorola. VM Labs's NUON technology is based upon a
highly programmable 128-bit multimedia processor, designed to
address the proliferation of new features.

Genesis Microchip is a leading supplier of cost-effective
integrated circuits and software solutions, which are at the
core of all display systems. Flat-panel displays, digital
televisions, and consumer video products all benefit from
Genesis technology, which connects and formats any kind of
source content to be displayed with the highest image quality on
any type of display. All leading brand-name monitor vendors use
"Genesis Display Perfection" components. Founded in 1987,
Genesis has offices in San Jose and Sunnyvale, Calif.; Toronto,
Canada; Bangalore, India; Taipei, Taiwan; Seoul, Korea; and
Shenzhen, China. Further information is available at
http://www.genesis-microchip.com


VECTOUR: Selling Perkiomen Assets to Longacre for $1.5 Million
--------------------------------------------------------------
VecTour Inc. and its affiliated debtors ask the U.S. Bankruptcy
Court for the District of Delaware to authorize and approve the
sale of substantially all assets of Perkiomen Valley Bus Company
d/b/a Perkiomen Tours & Travel free and clear of liens,
encumbrances, and interests to Longacre Acquisition, LLC for
approximately $1.5 million in cash.

All competing bids, in order to qualify, must exceed the
Purchaser's price by at least $75,000.  An Auction is currently
scheduled to take place on March 12, 2002 at 12:00 Noon EST.

The Asset Purchase Agreement effective February 20, 2002,
provides for a sale of substantially all the Business assets of
Debtor Perkiomen Valley Bus Company:

     (a) vehicles, including buses;

     (b) inventory, permits, licenses, and other personal
         property;

     (c) leases and executory contracts;

     (d) miscellaneous assets, including telephone and fax
         numbers, e-mail addresses, books and records, customer
         lists, trademarks, trade names, service marks, prepaid
         expenses and deposits; and

     (e) accounts receivable, except for intercompany, fuel tax
         and insurance settlement receivables.

The principal purchase price to be paid by Purchaser for the
Purchased Assets is $1.5 million, including a $40,000 deposit.
Other important consideration which will be provided by the
purchaser are:

     (a) The purchase price shall be increased or decreased
         based on working capital at closing.

     (b) Purchaser will assume and pay certain liabilities.

     (c) Purchaser will offer employment to all Sellers'
         employees.

The Purchaser is entitled to a $45,000 break-up fee in the event
that the Purchased Assets are sold to a third party, or if the
Debtor withdraws or adversely modifies the proposed sale to
Purchaser.

The Debtor believes that a sale of Seller's business assets as a
going concern will yield the best price being able to negotiate
the strongest possible transaction with Purchaser.

VecTour, Inc. is a leading nationwide provider of ground
transportation for sightseeing, tour, transit, specialized
transportation, entertainers on tour, airport transportation and
charter services. The Company filed for chapter 11 protection on
October 16, 2001. David B. Stratton, Esq. and David M. Fournier,
Esq. at Pepper Hamilton LLP represent the Debtors in their
restructuring effort.


W.R. GRACE: Exclusive Period Stretched to August 1, 2002
--------------------------------------------------------
U.S. Bankruptcy Judge Fitzgerald extends W. R. Grace & Co., and
its debtor-affiliates' exclusive period during which only
the Debtors may file a plan of reorganization to and including
August 1, 2002.  At the same time, Judge Fitzgerald extends the
Debtors' exclusive period to solicit acceptances of that plan to
and including October 1, 2002.  The extensions, as requested by
the Debtors, are granted without prejudice to the Company's
right to seek additional extensions of the exclusivity filing
and solicitation periods.


WABASH NATIONAL: Enters Pact to Refinance Revolver & Sr. Notes
--------------------------------------------------------------
Wabash National Corporation (NYSE: WNC) announced results for
the three and twelve months ended December 31, 2001.  Net sales
for the fourth quarter were $166.6 million compared to $274.8
million for the same period last year. Net loss for the quarter
was $134.9 million, compared to a loss of $28.4 million for the
same period last year.  For the year ended December 31, 2001,
net sales were $863.4 million compared to $1.3 billion for 2000.  
Net loss for fiscal year 2001 totaled $232.2 million, compared
to a net loss of $6.7 million in 2000. These results are subject
to the completion of discussions between the Company and its
lenders before March 31, 2002, as discussed therein.

Commenting on these results, Mark R. Holden, Senior Vice
President-Chief Financial Officer and Member of the Office of
the Chief Executive Officer, stated, "Results for the fourth
quarter reflect 1) substantial charges associated with the
completion of the Company's previously announced restructuring
activities, including the divestiture of international
operations, accelerated sales efforts to normalize used trailer
inventory levels and significant reductions in headcount; 2)
certain charges associated with the Company's expectation that
it would not be in compliance with regard to its credit
facilities at year end; 3) the impact on business and economic
fundamentals during the fourth quarter as a result of the events
of September 11, 2001, the ongoing economic recession and the
resultant industry-wide downturn; and 4) charges associated with
the continued effects of past legacy business practices."

In addition, Holden stated, "I am pleased to announce the
Company has recently reached an agreement in principle with its
banks and senior noteholders to refinance its revolving line of
credit and senior notes.  The refinancing will provide the
Company with a new two year commitment on its debt and is
expected to provide additional capital resources for continued
operations.  We are extremely pleased with the support we have
received from our financial partners in agreeing in principle to
a new two year financial package in what is a very difficult
capital market and an extremely depressed trailer market.  We
believe this reflects the underlying strength of Wabash National
Corporation.  As previously announced, we were not in compliance
with our credit facility financial covenants at year-end.  Our
minimum net worth and debt-to-capital covenants required
approximately $250 million in net worth and a debt-to-
capitalization ratio of not greater than 60%.  Our actual
results reflect a net worth of approximately $131 million and a
74% debt-to-capitalization ratio as of December 31, 2001.  As
part of the refinancing package, these covenant defaults will be
waived.  However, the refinancing is subject to formal lender
approval and documentation.  While we anticipate closing will
occur prior to March 31, 2002, in the event closing does not
occur, there will be a profound impact on the balance sheet as
of December 31, 2001 as a result of the need to record certain
lease and other finance transactions, totaling approximately
$100 million, as current liabilities on the year end balance
sheet in addition to the indebtedness presently reflected on the
December 31, 2001 balance sheet that totals approximately $346
million.  These lease and finance transactions are described in
our financial statement footnotes.  The impact of reflecting
these transactions on the balance sheet is not expected to have
a profound impact on the Company's Income Statement for the
twelve months ended December 31, 2001.  However, it would likely
have an effect on our future operating results because the
Company would be constrained from a liquidity perspective and
customer and supplier relationships would likely be disrupted.  
We are optimistic that this will be avoided by the timely
closing of the refinancing package."

Wabash National Corporation designs, manufactures, and markets
standard and customized truck trailers under the Wabash(TM) and
Fruehauf(R) brands. The Company believes it is the world's
largest manufacturer of truck trailers, the leading manufacturer
of composite trailers and through its RoadRailer(R) products,
the leading manufacturer of bimodal vehicles.  The Company's
wholly owned subsidiary, North American Trailer Centers(TM), is
one of the leading retail distributors of new and used trailers
and aftermarket parts, including its Fruehauf(R) and Pro-Par(R)
brand products with approximately 50 locations throughout the
U.S. and Canada.


WEIRTON STEEL: S&P Revises 'SD' Corporate Credit Rating to 'D'
--------------------------------------------------------------
On March 4, 2002, Standard & Poor's revised its corporate credit
rating on Weirton Steel Corp. from SD (selective default) to D
and lowered its rating on Weirton's 8-5/8% pollution control
revenue refunding bond series following the company's
announcement that it will exchange these bonds for new bonds
with a lower value. The bond rating will be lowered to 'D' once
the exchange offer is complete.

Standard & Poor's plans to meet with management upon a
successful completion of the exchange offer and will review
Weirton's restructuring plans as well as assign a rating to the
new bonds.

DebtTraders reports that Weirton Steel Corporation's 11.375%
bonds due 2004 (WEIRT2) are trading between 9 and 12. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=WEIRT2for  
real-time bond pricing.


WINSTAR COMMS: Trustee Seeks Approval of Employment Agreements
--------------------------------------------------------------
Christine Shubert, the Chapter 7 Trustee for Winstar
Communications, Inc.'s estate, moves for the entry of an order:

A. authorizing the Debtors to enter into employment agreements
     with Kenneth Zinghini, Donald Schneider, Charles Persing,
     and Paul Lang; and

B. expanding the Carve-Out under the Debtors' Second Amended
     and Restated Senior Secured Super-Priority DIP Credit
     Agreement dated July 6, 2001.

According to Michael J. Menkowitz, Esq., at Fox Rothschild
O'Brein & Frankel LLP in Wilmington, Delaware, in connection
with the Sale of the Debtors assets to IDT, the Debtors entered
into a Management Agreement pursuant to which, among other
things, IDT agreed to employ all employees of the Debtors,
subject to the Debtor's right to retain a reasonable number of
employees to assist in the continued administration of the
Debtors' estate and an orderly completion of the Cases. The
Debtors wish to retain the employment services of Messrs.
Zinghini, Schneider, Persing and Lang for this purpose upon the
terms and subject to the conditions contained in the Employment
Agreements described below.

Mr. Menkowitz submits that the Debtors have negotiated the terms
and conditions of the Employment Agreements containing retention
and severance elements to induce each Employee to remain in the
Debtors' employ to assist in the continued administration of the
Debtors' estate and an orderly completion of the Cases. The
Employment Agreements, which are subject to Bankruptcy Court
approval, cover the following individuals, each of whom is
currently employed by the Debtors in the following capacity:

      Name                          Title
      ----                          -----
      Kenneth Zinghini      SVP and Corporate Counsel
      Donald Schneider      SVP, Human Resources &
                                 Administration
      Charles Persing       VP, Corporate Development
      Paul Lang             VP, Finance

In summary, the Employment Agreements provide that:

A. The Debtors and the Employees will commit to an initial
     employment term of three months, with an "at-will"
     employment relationship thereafter;

B. The Employees will report to Impala Partners, the Debtors'
     restructuring advisors, or such other designee as the Court
     deems appropriate;

C. The Employees' base salaries will continue at current levels,
     for an aggregate cost of approximately $70,000 per month;

D. Each Employee is entitled to severance pay equal to six
     months of his base salary if his employment is terminated
     by the Debtors, for an aggregate cost of approximately
     $415,000;

E. Each Employee's accrued and unused paid time off for 2001
     will carry over and be paid to the Employee following the
     Bankruptcy Court's approval of the Employment Agreements,
     for an aggregate cost of approximately $50,000;

F. The Employees are entitled to continued employee benefits and
     expense reimbursement consistent with the Debtors' prior
     practices and policy.

In order to support the Debtors' obligations to pay all amounts
due to the Employees under the Employment Agreements and the
allowed amounts due to the Debtor's Professionals and the
Interim Trustee Group, Mr. Menkowitz relates that the Trustee
has negotiated with the lenders under the DIP Credit Agreement
to create a "carve-out" from the collateral securing such DIP
Lenders' loans which requires that in the event the Debtors do
not pay any amount due and payable under the Employment
Agreements and amounts due to the Debtor's Professionals and the
Interim Trustee Group, those parties shall obtain the allowed
benefits of such "carve-out." The Trustee submits that each
Employee is a highly qualified, experienced professional who is
proficient in their respective areas of employment. The Trustee
believes that each Employee has the skills necessary to assist
the Debtors in completing these Chapter 7 cases.

Mr. Menkowitz informs the Court that the DIP Lenders have agreed
to expand the Carve-Out as provided herein, which the Trustee
believes is necessary to ensure that services necessary to the
administration of the Debtors' estates will continue to be
provided by the Employees, the Debtors' Professionals and the
Interim Trustee Group.

                     TrizecHahn Objects

Lisa C. McLaughlin, Esq., at Phillips Goldman & Spence, P.A., in
Wilmington, Delaware, believes the Debtors' estates are
administratively insolvent and it remains unclear whether any
funds will exist to pay the administrative claims of TrizecHahn
and Mack-Cali.  As such, TrizecHahn and Mack-Cali submit this
Limited Objection to any increase in the carve out amount and
any payments thereunder, unless the carve-out is increased to
include all administrative claims and afford same equal
treatment. (Winstar Bankruptcy News, Issue No. 24; Bankruptcy
Creditors' Service, Inc., 609/392-0900)  


WIRELESS WEBCONNECT: Homemark, et. al., Disclose Equity Stake
-------------------------------------------------------------
This report relates to shares of common stock, $0.01 par value
per share of Wireless WebConnect, Inc., a Delaware corporation,
acquired by E-Home.com, Inc., d/b/a HomeMark, a Texas
corporation. The parties reporting beneficial ownership of the
common stock of Wireless WebConnect are HomeMark, Joseph Harker,
Roger Klotz and Pierce Hollingsworth.

HomeMark is a Texas corporation principally engaged in the
business of auctioning real estate over the Internet. Mr. Harker
serves as the Chairman and Chief Executive Officer of HomeMark.  
Mr. Klotz serves as a Director and President of HomeMark.  Mr.
Hollingsworth serves as a Director of HomeMark, he is also
president of the Hollingsworth Group, Inc. and the editor and
publisher of RealEstateProfiles.com, a web magazine for real
estate professionals.

On February 1, 2002, Wireless WebConnect, HomeMark and Wireless
WebConnect!, Inc., a Florida corporation and wholly-owned
subsidiary of Wireless WebConnect entered into a Stock Purchase
and Exchange Agreement, under which Wireless WebConnect sold all
of the stock of the Subsidiary to HomeMark, in exchange for
$20,000. In turn, HomeMark exchanged the stock of Subsidiary
with certain of Wireless WebConnect's shareholders (the "Former
Shareholders") for 20,494,959 shares of Wireless WebConnect's
common stock held by the Former Shareholders. Under the Purchase
Agreement, Wireless WebConnect received an option from HomeMark
to purchase the shares from HomeMark for $20,000. The option
expires August 1, 2002. HomeMark funded the purchase of the
shares from the Former Shareholders from its available cash.

Upon consummation of the transactions under the Purchase
Agreement, all directors of the Corporation designated by the
Former Shareholders have resigned from the Wireless WebConnect
Board of Directors, leaving William O. Hunt, John J. McDonald
and Richard F. Dahlson as the remaining directors.

As a result of this transaction, Wireless WebConnect currently
has no operations. HomeMark has been advised that it is the
intent of the remaining directors to restructure and/or settle
the debt owed by Wireless WebConnect and to look for an
attractive reverse merger candidate and that Wireless
WebConnect's major creditor, Banca Del Gottardo has indicated
that it would be willing to convert all or some portion of its
debt upon the satisfaction of certain conditions, including a
satisfactory reduction and/or elimination of other debt of
Wireless WebConnect and satisfaction with the merger candidate
and the terms and conditions of such reverse merger.

HomeMark is in the process of acquiring an on-line home auction
company. It is contemplated that HomeMark will be the reverse
merger candidate. However, the terms of any such transaction
have not been finalized.

Wireless WebConnect! (WWC) provides high-speed wireless data
solutions. At September 30, 2001, the company had a working
capital deficit of about $8 million, and a total shareholders'
equity deficit of about $10 million.


* DebtTraders' Real-Time Bond Pricing
-------------------------------------

Issuer               Coupon   Maturity   Bid - Ask Weekly change
------               ------   --------   --------- -------------
Crown Cork & Seal     7.125%  due 2002    84 - 86       +2
Federal-Mogul         7.5%    due 2004    13 - 15     +0.5
Finova Group          7.5%    due 2009  37.5 - 38.5   +3.5
Freeport-McMoran      7.5%    due 2006    80 - 83        0
Global Crossing Hldgs 9.5%    due 2009   3.5 - 4.5    +1.5
Globalstar            11.375% due 2004     5 - 7      +0.5
Lucent Technologies   6.45%   due 2029    65 - 67     +3.5
Polaroid Corporation  6.75%   due 2002     4 - 6        -2
Terra Industries      10.5%   due 2005    84 - 87        0
Westpoint Stevens     7.875%  due 2005    33 - 36       -2
Xerox Corporation     8.0%    due 2027    55 - 57       +1

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/

                          *********

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

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

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

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                          *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard
Group, Inc., Washington, DC USA. Yvonne L. Metzler, Bernadette
C. de Roda, Donnabel C. Salcedo, Ronald P. Villavelez and Peter
A. Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
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mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each.  For subscription information, contact Christopher
Beard at 240/629-3300.

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