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 25, 2004, Vol. 8, No. 60 Headlines AADCO AUTOMOTIVE: Inks Preferred Supplier Pact with Collision Care ADELPHIA COMMS: Sells Excess Assets to 24 Buyers for $1.4 Million AIR CANADA: Welcomes Reduction in Canadian Security Charges ALPHA VIRTUAL: Backham Kirkland Cuts Off Professional Ties AMCAST INDUSTRIAL: February 2004 Equity Deficit Tops $42 Million AMKOR TECHNOLOGY: Inks Wafer-level Packaging Agreement with Casio AMERICAN SEAFOODS: Extends Senior Note Tender Offer to April 12 APARTMENT INVESTMENT: Redeeming Class P Pref. Stock on April 21 ATSI COMMS: Annual Shareholders' Meeting Set for May 6 in Texas BARNEYS NEW YORK: Reports Revenue Increases in Q4 & FY 2004 BIOVAIL CORP: Renews $400 Million Revolving Term Credit Facility BMC INDUSTRIES: Receives Bank Waiver Extension through May 14 BOYD: Names Thomas Roberts Gen. Manager of Sam's Town Shreveport BUDGET GROUP: Court Sets Plan Confirmation Hearing for April 7 BUDGET GROUP: Discloses Plan Administrator's Responsibilities BUFFALO RUN LLC: Case Summary & 9 Largest Unsecured Creditors CALPINE: Closes $2.4B CalGen Secured Term Loans & Notes Offering CALYPTE: At Last -- No Going Concern Qualification in 2003 Report CASEY'S BAR-B-Q: Case Summary & 20 Largest Unsecured Creditors CHESAPEAKE ENERGY: Acquiring $100 Million Producing Properties CHESAPEAKE ENERGY: Offering $255MM Convertible Preferred Stock COMMERCIAL PRINTING: Case Summary & Largest Unsecured Creditors CORBAN COMMS: U.S. Trustee to Meet With Creditors on April 15 COVANTA ENERGY: Obtains Go-Ahead to Buy Run-Off Insurance Program DETROIT MEDICAL: Fitch Affirms B Rating on $569 Million MI Bonds DII INDUSTRIES: Reaches Settlement of Federal-Mogul Claims Dispute DOMAN IND: Western Pulp Unit Will Up Kraft Pulp Prices on April 1 DOMAN INDUSTRIES: KPMG Files Special Restructuring Report ENRON CORP: Proposes Election Protocol for Non-Voting Creditors FAIRFAX: Will Commence Debt Exchange Offering to Deleverage Debt FAIRFAX FINANCIAL: S&P Affirm Ratings & Assigns Stable Outlook FEDERAL FORGE: U.S. Trustee to Meet with Creditors Today GAP INC: Declares Quarterly Dividend Payable on June 7, 2004 GEO SPECIALTY: Has Until May 17 to File Bankruptcy Schedules GERDAU AMERISTEEL: Reaches Tentative Pact with Steelworkers' Union HA2003: Illinois Court Sets April 12 Admin. Claims Bar Date HALE-HALSELL CO: Case Summary & 20 Largest Unsecured Creditors HARRAH'S ENTERTAINMENT: Jerry Boone Named Sr VP -- Human Resources HASBRO INC: Will Webcast First Quarter Results on April 19 at 9 AM HAVENS STEEL: Section 341(a) Meeting Scheduled for April 27 HAYES LEMMERZ: Settles 20 Avoidance Action Claims for $2.7 Mill. HIGH VOLTAGE: US Trustee Appoints Official Creditors' Committee IMC GLOBAL: Sells Remaining Discontinued IMC Chemicals Operations INTERNATIONAL WIRE: Files Chapter 11 Petition in S.D. New York INTERNATIONAL WIRE: Case Summary & 30 Largest Unsecured Creditors INTERPOOL: Plans to Reapply for NYSE Listing after Filing Reports ITC DELTACOM: Withdraws Sr. Debt Offering on Weak Market Condition IVACO INC: Canadian Court Extends CCAA Protection Until May 21 IVACO INC: Reports 2003 Year-End Financial Results KAISER ALUMINUM: Court Orders Alpart Stake Auction on April 20 KB HOME: Will Broadcast 2004 Investor Conference Live Today LES BOUTIQUES: Board Committee Awards Broader Mandate to Richter LES BOUTIQUES: Retains PricewaterhouseCoopers as Financial Advisor LTV CORP: Objects to National Steel's $1.4 Mil. Reclamation Claim MAGELLAN HEALTH: Asks Court to Expunge David McLane's $3MM Claim MERRILL LYNCH: S&P Puts Class E Notes' Rating on Watch Negative MIDLAND ACADEMY: Voluntary Chapter 11 Case Summary MIRANT CORP: Rockland Demands Payment of $62.3MM Ad Valorem Tax MORGAN STANLEY: Fitch Ups Low-B Ratings on 3 Series 1997-WF1 Notes NATIONAL BENEVOLENT: Gets Nod to Hire Cain Brothers as Advisor NATIONAL CENTURY: HSBC Bank USA Serving as Successor Trustee NET PERCEPTIONS: Stockholders Fail to Approve Liquidation Plan NORSKE SKOG: Closes Consent Solicitation for New Purchase Offer NORSKE SKOG: Completes Sale of $250M Principal Amount of Sr. Notes NORTEL NETWORKS: Responds to FCC's Call for Industry Support OWENS CORNING: Moves to Dismiss Kensington's State Ct. D&O Lawsuit PACIFIC GAS: Plan's Effective Date Can Be as Late as May 15, 2004 PARADIGM MEDICAL: Names Aziz Mohabbat as New COO PARMALAT: Court Declares Utility Companies are Adequately Assured PENTHOUSE: Acquires Internet Billing Company for $23.5 Million PILLOWTEX CORP: Gets Clearance for Season Release Agreement RELIANCE: Liquidator Asks Court to Affirm Contract Recommendations REMEDENT USA: Liquidity Problems Spur Going Concern Uncertainty RIVERBEND DEVELOPMENT: Voluntary Chapter 11 Case Summary RUBINCON VENTURES: Shoos Away Sellers & Taps Madson as New Auditor SOLECTRON: Selling Sensor Products Business to Schneider Electric STRATUS SERVICES: Ability to Continue Operations is in Doubt TELETECH: Inks Multiyear Pact With Professional Services Firm UNITED AIRLINES: Proposes Pact Settling $290M+ Kreditanstalt Claim US AIRWAYS: JPMorgan Trust Agrees to Reduce Claim to $1.1 Million VIASYSTEMS: S&P Affirms Low-B & Junk Ratings Following IPO Filing WESPOINT STEVENS: Signs New Licensing Agreement with Avanti Linens WHITEHALL JEWELLERS: Posts $7M Loss in Year Ended Jan. 31, 2004 WORLDCOM INC: Teleserve Wants Class 6A Pre-Merger Status Confirmed ********* AADCO AUTOMOTIVE: Inks Preferred Supplier Pact with Collision Care ------------------------------------------------------------------ AADCO Automotive Inc., a leading supplier of like, kind and quality (LKQ) used auto parts, signed a Preferred Supplier Agreement for LKQ and aftermarket parts with Collision Care Canada Inc. ("CCC") on March 19, 2004. The Preferred Supplier Agreement is to take effect April 1, 2004. CCC Inc. consists of 10 premier corporately owned collision repair facilities in the greater Toronto area operating under the Imperial and Oaktown banners. This agreement will assist CCC in their vision to become increasingly more efficient and responsive in the servicing of its customers and insurance companies in their quest for a greater use of LKQ parts in the repair process. The goal of CCC and AADCO is for the very best in customer service, savings in the repair process and a reduction in the number of days a customer is in a rental vehicle. The accomplishment of these three goals will assist the insurance companies in reducing motor vehicle insurance premiums. "The CCC agreement is another important element in our strategy to increase AADCO's revenues by maximizing the yield of both body and mechanical parts from every vehicle dismantled," said Charles Hodgkinson, CEO AADCO Automotive Inc. Tony Canade, President of CCC Inc., adds "We are pleased to be entering into this relationship with AADCO as it assists us in maintaining a leadership position in meeting the changes and challenges facing our industry. AADCO's growth strategy and service excellence is mutually aligned with ours, as we see the need for vendor alliances and greater industry consolidation." The CCC Inc. agreement is the latest announcement as AADCO builds out its business model. In December 2003, AADCO announced the signing of a Strategic Alliance with Dave's Part Mart of Ottawa with an option to acquire. On March 2, 2004 AADCO announced the signing of a Letter of Intent for a Master Distribution Agreement with United International Business of Canada, which should see AADCO parts being sold in China before the end of 2004. On March 9, 2004 AADCO announced the signing of a Letter of Intent to acquire Coreline, the third largest automotive core and materials business in Canada and on March 16, 2004, AADCO announced a preferred supplier agreement with the 24-shop Collision Solutions Network. AADCO Automotive Inc. is a rapidly growing, Canadian public company committed to complete vehicle dismantling and the providing of quality used parts and core from insurance salvage. AADCO serves over 5000 mechanical and body shop clients across Ontario through its LKQ parts division. AADCO maintains the largest unbolted inventory of quality used OEM parts in Canada at its 118,000 sq. ft. facility in Brampton, Ontario and is the only auto recycler to have been awarded the Ecologo for environmental stewardship. The company's December 31, 2003, balance sheet discloses a total shareholders' deficiency of $3,674,102. ADELPHIA COMMS: Sells Excess Assets to 24 Buyers for $1.4 Million ---------------------------------------------------------------- Pursuant to the Court-approved Excess Assets Sale Procedures, the Adelphia Communications Debtors inform Judge Gerber that they are selling these properties: 1. Property: One Tower situated in Great Lot #71, Poland Township, Ohio Purchaser: Donald Zimmerman Agent: None Amount: $10 Deposit: None Appraised Value: No appraisal was made in connection with the sale 2. Property: Parcels of Real Property situated at 122 East Second Street, in Coudersport, Pennsylvania Purchaser: Thomas A. and Kathleen M. Majot Agent: God's Country Real Estate, Inc. Amount: $120,000 Deposit: $1,000 Appraised Value: $112,500 3. Property: Real Property situated at 106 Cartree Street, in Coudersport, Pennsylvania Purchaser: Margaret Grady Agent: Hartman Real Estate, Inc. Amount: $165,900 Deposit: $2,000 Appraised Value: $156,500 4. Property: Real property located at 11011 East Peakview, in Englewood, Colorado Purchaser: Associated Tele-Networking, Inc. Agent: None Amount: $85,000 Deposit: None Appraised Value: No appraisal was made in connection with the sale 5. Property: Equipment located at 11011 East Peakview, in Englewood, Colorado Purchaser: Battery Solutions, Inc. Agent: None Amount: $178,000 Deposit: None Appraised Value: No appraisal was made in connection with the sale 6. Property: Telecommunications equipment located at 1207C Harris Street, in Charlottesville, Virginia and at 3909A Carolina Avenue, in Richmond, Virginia Purchaser: Diversitec, LLC Agent: None Amount: $10,765 Deposit: None Appraised Value: No appraisal was made in connection with the sale 7. Property: Real Property situated in 102 Allegany Avenue, in Coudersport, Pennsylvania Purchaser: Myles and Loretta Meers Agent: Four Season Real Estate, Inc. Amount: $28,620 Deposit: $1,000 Appraised Value: $27,000 8. Property: Real Property situated at 714 North West, in Coudersport, Pennsylvania Purchaser: Cindy Capatch Agent: God's Country Real Estate, Inc. Amount: $80,000 Deposit: $1,000 Appraised Value: $80,000 9. Property: Telecommunications equipment located at 4256 Ridgelea Road, Suite 102, in Amherst, New York; 1207C Harris Street, in Charlottesville, Virginia; and 3909A Carolina Avenue, in Richmond, Virginia Purchaser: Associated Tele-Networking, Inc. Agent: None Amount: $68,435 Deposit: None Appraised Value: No appraisal was made in connection with the sale 10. Property: Telecommunications equipment located at 4256 Ridgelea Road, Suite 102, in Amherst, New York; 1207C Harris Street, in Charlottesville, Virginia; and 3909A Carolina Avenue, in Richmond, Virginia Purchaser: TelWorx, Inc. Agent: None Amount: $11,350 Deposit: None Appraised Value: No appraisal was made in connection with the sale 11. Property: Real property situated at 1011 South Main Street, in Coudersport, Pennsylvania Purchaser: Jennifer Freeman Agent: Four Seasons Real Estate, Inc. Amount: $76,000 Deposit: 1,000 Appraised Value: $76,000 12. Property: Golf course construction materials and equipment located at 506 Bank Street and Mill Street, in Coudersport, Pennsylvania Purchaser: LeHigh Acres LLC Agent: None Amount: LeHigh will pay the agreed per-unit prices when the items are removed from the Debtors' estate Escrow Amount: $275,000 Appraised Value: No appraisal was made in connection with the sale 13. Property: Real property situated at 104 Chestnut Street, 105 West Maple Street, and 204 Vine Street, in Coudersport, Pennsylvania Purchaser: Stanley Goodwin Agent: God's Country Real Estate, Inc. Amount: $124,000 Deposit: $1,000 Appraised Value: $124,000 14. Property: Real property situated at 125 Gross Hollow Road, Coudersport, Pennsylvania Purchaser: Timothy and Wendy Hann Agent: God's Country Real Estate, Inc. Amount: $95,745 Deposit: $1,000 Appraised Value: $90,000 15. Property: Real Property situated at 450 Center Park, Coudersport, Pennsylvania Purchaser: Shirlee Leete Agent: Four Seasons Real Estate, Inc. Amount: $77,000 Deposit: $1,000 Appraised Value: $77,000 16. Property: Personal property consisting of 48 vehicles Purchaser: State Line Auto Auction Agent: None Amount: $35,022 Deposit: None Appraised Value: No appraisal was made in connection with the sale 17. Property: Personal property consisting of 53 vehicles Purchaser: Corporate Fleet Management Agent: None Amount: $31,150 Deposit: None Appraised Value: No appraisal was made in connection with the sale 18. Property: Personal property consisting of 81 vehicles Purchaser: State Line Auto Auction Agent: None Amount: $85,605 Deposit: None Appraised Value: No appraisal was made in connection with the sale 19. Property: Personal property consisting of 76 vehicles Purchaser: The Asset Disposal Group Agent: None Amount: $49,950 Deposit: None Appraised Value: No appraisal was made in connection with the sale 20. Property: Personal property consisting of 55 vehicles Purchaser: Western Fleet Resources Agent: None Amount: $41,850 Deposit: None Appraised Value: No appraisal was made in connection with the sale 21. Property: Personal property consisting of 26 vehicles Purchaser: The Asset Disposal Group Agent: None Amount: $14,650 Deposit: None Appraised Value: No appraisal was made in connection with the sale 22. Property: Real property situated at 201 North West Street, in Coudersport, Pennsylvania Purchaser: Ludwig Holdings, LLC Agent: God's Country Real Estate, Inc. Amount: $83,000 Deposit: $1,000 Appraised Value: $83,000 23. Property: Telecommunications equipment located at 1120 Pike Street, in Huntingdon, Pennsylvania Purchaser: Friendship Cable of Texas, Inc., doing business as Correctional Cable TV Agent: None Amount: $57,500 Deposit: None Appraised Value: No appraisal was made in connection with the sale 24. Property: Real property situated at 419 Route 6 West, in Coudersport, Pennsylvania Purchaser: E & G Realty Agent: Field & Stream Real Estate, Inc. Amount: $68,500 Deposit: $1,000 Appraised Value: $68,500 25. Property: Real property located at 25 Clearview Drive, in Coudersport, Pennsylvania Purchaser: Eric and Tricia Duffy Agent: God's Country Real Estate, Inc. Amount: $146,000 Deposit: $1,000 Appraised Value: $146,000 26. Property: Real property situated at 5 North West Street, in Coudersport, Pennsylvania Purchaser: Craig B. Maestle Agent: God's Country Real Estate, Inc. Amount: $52,000 Deposit: $1,000 Appraised Value: $52,000 (Adelphia Bankruptcy News, Issue No. 54; Bankruptcy Creditors' Service, Inc., 215/945-7000) AIR CANADA: Welcomes Reduction in Canadian Security Charges ----------------------------------------------------------- Air Canada welcomed the Canadian federal government's decision to reduce its Air Travellers Security Charge, and encouraged all governments and authorities to examine ways to participate in the reduction of taxes and surcharges on airlines faced by the consumer when purchasing air travel. The federal budget was announced on March 23, and includes a reduction in the Air Travellers Security Charge. This reduction, effective April 1, 2004, represents $2 off round trip domestic flights (from $14 to $12), $2 off round trip U.S. transborder flights (from $12 to $10), and $4 off round trip international flights (from $24 to $20). "We are pleased that the federal government recognizes the impact of the current security surcharge as a disincentive to travel and has seen fit to further reduce it," said Robert Milton, President and Chief Executive Officer. "This initiative is a positive step in the right direction and we commend the government for its action." "In keeping with [Tues]day's announcement, we encourage government-created natural monopolies, including airport authorities and Nav Canada, to adopt a realistic approach to the airline industry's financial predicament and to work with us as partners in the development of sustainable air services," he concluded. Headquartered in Saint-Laurent, Quebec Canada, Air Canada -- http://www.aircanada.ca/-- represents Canada's only major domestic and international network airline, providing scheduled and charter air transportation for passengers and cargo. The Company filed for CCAA protection on April 1, 2003 (Ontario Superior Court of Justice, Case No. 03-4932) and Section 304 petition with the U.S. Bankruptcy Court for the Southern District of New York (Case No. 03-11971). Matthew A. Feldman, Esq., and Elizabeth Crispino, Esq., at Willkie Farr & Gallagher serve as the Debtors' U.S. Counsel. When the Debtors filed for protection from its creditors, they listed C$7,816,000,000 in assets and 9,704,000,000 in liabilities. ALPHA VIRTUAL: Backham Kirkland Cuts Off Professional Ties ---------------------------------------------------------- On December 12, 2003, Beckman Kirkland & Whitney informed Alpha Virtual Inc. that it was resigning as the Company's independent accountant due to recent filings made by the Company with the Securities and Exchange Commission without prior review by Beckman. Alpha Virtual conducted a series of discussions with Beckman urging Beckman to reconsider its resignation. After several discussions, Beckman did not indicate a consent to withdraw its resignation. For this reason, on February 11, 2004, Alpha Virtual retained AJ. Robbins, PC as it new independent accountants. The reports of Beckman on the financial statements of the Company for the past two fiscal years contained a qualification that there was substantial doubt about Alpha Virtual's ability to continue as a going concern. Other than the foregoing, the reports contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle. On February 11, 2004, Alpha Virtual's Board of Directors retained AJ. Robbins, PC as its new independent accountants. AMCAST INDUSTRIAL: February 2004 Equity Deficit Tops $42 Million ---------------------------------------------------------------- Amcast Industrial Corporation, (OTCBB:AICO) reported financial results for its fiscal 2004 second quarter ended February 29, 2004. Sales of $94.4 million in the second quarter were 4.7% lower than the prior year quarter sales of $99.1 million. Operating income in the second quarter of $2.4 million was up by almost 31% over the prior-year quarter. The operating income improvement was the result of an improved gross margin due to reduced manufacturing costs and lower selling, general and administrative costs. The profit improvement at the operating level was much more dramatic than the after-tax level because tax benefits were significantly higher in the prior year. The net loss of $1.2 million, or $0.13 per share, improved by 6.7% over the net loss from continuing operations in last year's quarter of $1.3 million, or $0.15 per share. The quarterly sales decline resulted from lower aluminum components sales, primarily in the gravity-cast operations. This decline was partly offset by strong demand for plumbing products and pistons for automotive air conditioning compressors. By segment, Flow Control sales grew by over 18%, but Engineered Components sales fell by almost 15%. During the second quarter last year, the Company recorded a loss on the sale of Speedline, its European wheel business. Accordingly, Speedline was classified as a discontinued operation. The after-tax loss in fiscal 2003 from discontinued operations was $54.6 million, or $6.17 per share, for the second quarter and $56.7 million, or $6.82 per share, for the first six months. Year-to-date sales were $207.4 million, down by 1.9% versus the prior year. Sales in the Flow Control segment were up by 14%, while Engineered Components sales declined by 8%. Year-to-date operating income of $7.3 million grew from $2.7 million last year, or by 165%. Both an improved gross margin and lower selling, general and administrative expenses contributed to the increase. Year to date, the Company's net loss from continuing operations was $0.2 million, or $0.02 per share, compared with a net loss from continuing operations of $3.2 million, or $0.36 per share, in the prior year. Joseph R. Grewe, President and Chief Executive Officer, said, "The operating income increase reflects better manufacturing performance, and it is important to recognize that operating income increased during a period of declining sales. We are still, however, turning the corner to profitability at the net income line. Management has continued to focus on lower spending. During the quarter selling, general and administrative expenses decreased by almost 7%, and fell to 9.1% of sales from 9.3% of sales in the prior-year quarter. Year-to-date selling, general and administrative expenses were 8.1% of sales. Productivity increased over last year by almost 14% year to date as measured by sales per full-time-equivalent employee. Continued implementation of lean manufacturing concepts as well as internal quality improvements helped improve performance." Byron Pond, Chairman, commented, "Amcast's balance sheet continued to improve in the quarter. Net operating assets decreased by 1% during the quarter as capital spending was held to 34% of depreciation. Amcast also reduced debt by $3 million in the quarter, and debt has been lowered by over $5 million year to date." Mr. Grewe concluded, "Amcast just missed net income break-even for the first six months. However, this was the Company's ninth consecutive quarter of positive operating income. Traditionally, the second quarter is our most difficult quarter, and this year was no exception. Clearly, the Amcast Production System, and our relentless efforts to reduce costs are producing operating and financial benefits. Our plans are to continue these successful programs as well as focus on process improvements, better quality, and improved customer service." At February 29, 2004, Amcast Industrial's balance sheet shows a shareholders' equity deficit of $42,005,000 compared to $41,935,000 at August 31, 2003. Amcast Industrial Corporation is a leading manufacturer of technology-intensive metal products. Its two business segments are brand name Flow Control Products marketed through national distribution channels and Engineered Components for original equipment manufacturers. The company serves the automotive, construction, and industrial sectors of the economy. AMKOR TECHNOLOGY: Inks Wafer-level Packaging Agreement with Casio ----------------------------------------------------------------- Amkor Technology, Inc., Casio Computer Co., Ltd. and Casio Micronics Co., Ltd. jointly announced that they have established business and technology licensing agreements for assembly and test of wafer-level semiconductor packages, commonly known as WLP. The agreements link CASIO's expertise in the processing technologies used in wafer-level packaging with Amkor's proficiency in semiconductor assembly and test. Wafer-level packages are created by building the package interconnects directly on the surface of the wafer. CASIO's WLP technology improves electrical performance with copper routing and post. This structure, along with the screen printing encapsulation process, provides a high level of reliability and can be used with up to 300mm (12 inch) wafers. Wafer level packages are used with logic, memory, and RF devices primarily in consumer electronic products, including cell phone handsets and other wireless applications, digital cameras and other handheld devices. As part of the collaboration, Amkor will undertake sales and marketing of this WLP product. CASIO MICRONICS will provide wafer level processing and Amkor will conduct final test, singulation and inspection of the WLP devices. Amkor also has the option to enter into a technology license with CASIO under which Amkor would have the ability to install and use CASIO's WLP technology in Amkor's factories. "This collaboration builds on our existing wafer-level packaging capability with the addition of CASIO's outstanding WLP technology," said Bruce Freyman, Amkor's president and chief operating officer. "We have already identified several business opportunities with Japanese semiconductor companies. While we do not expect this joint effort to result in significant revenue during 2004, we do anticipate growing adoption of wafer-level packaging in Japan and elsewhere. We have the added flexibility of installing CASIO's WLP technology in our factories as customer demand reaches a critical mass." "CASIO and CASIO MICRONICS look forward to partnering with Amkor's production capability, packaging experience, and worldwide sales force. This agreement represents an important step in accelerating the standardization of WLP packaging and expanding its adoption by semiconductor suppliers and electric device manufacturers," said Yukio Kashio, CASIO's executive vice president. About CASIO COMPUTER CO., LTD. CASIO COMPUTER CO., LTD. is one of the leading consumer electronics companies in the world. Since its establishment in 1957, it has been active in the development of a range of consumer electronic products such as electronic calculators, timepieces, musical instruments, digital cameras and mobile phones. In recent years, CASIO has also focused on technologies for compact LCDs, LSI chip mounting processes and other electronic devices. More information on CASIO is available at: http://world.casio.com/ About Amkor Amkor Technology, Inc. (Nasdaq: AMKR) is a leading provider of contract semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. More information on Amkor is available from the company's SEC filings and on Amkor's web site: http://www.amkor.com/ * * * As reported in the Troubled Company Reporter's March 11, 2004 edition, Standard & Poor's Ratings Services assigned its 'B' rating to Amkor Technolgy Inc.'s $250 million senior unsecured notes due 2014 and affirmed its 'B' corporate credit on the company and its other ratings. West Chester, Pa.-based Amkor is expected to use the proceeds of the notes issue in part to repay its $170 million term loan and to bolster cash balances. The outlook is stable. "Although improvements in operating profits should improve debt-protection measures, debt balances are expected to remain high as Amkor implements its capital spending program in 2004," said Standard & Poor's credit analyst Emile Courtney. "However, sustained improvements in operating profitability, combined with reduced debt balances and adequate liquidity, could result in a positive outlook over the intermediate-term." AMERICAN SEAFOODS: Extends Senior Note Tender Offer to April 12 --------------------------------------------------------------- American Seafoods Group LLC and American Seafoods Finance, Inc. announced that, as part of their previously announced tender offer and consent solicitation for their outstanding 10 1/8% Senior Subordinated Notes due 2010, they are extending the tender offer expiration date. The tender offer, which had been set to expire at 5:00 p.m., New York City time, on March 22, 2004, will be extended to 5:00 p.m., New York City time, on Monday, April 12, 2004, unless extended by American Seafoods. The closing of the initial public offering and the other financing transactions contemplated by the registration statement on Form S- 1 (Registration No. 333-105499) is a condition precedent to the consummation of the tender offer. On February 19, 2004 American Seafoods filed Amendment No. 3 to its registration statement on Form S-1 with the Securities and Exchange Commission. The consent expiration date was 5:00 p.m., New York City time, on September 26, 2003. Holders who desired to receive the consent payment and the tender offer consideration must have both validly consented to the proposed amendments and validly tendered their Notes pursuant to the offer on or prior to the consent expiration date. Holders who validly tender their Notes after the consent expiration date will receive the tender offer consideration, which is $1,170.00 per $1,000 principal amount of Notes, but not the consent payment. As of the close of business on September 26, 2003, which was the consent expiration date and the last day on which validly tendered Notes could have been withdrawn, American Seafoods had received the requisite consents to the proposed amendments to the Indenture governing the Notes. Consequently, the proposed amendments were incorporated in the Third Supplemental Indenture, which was executed and delivered on September 26, 2003, by and among American Seafoods Group LLC, American Seafoods Finance, Inc., the guarantors listed on Schedule A thereto and Wells Fargo Bank Minnesota, National Association, as trustee. The proposed amendments to the Indenture, which will not become operative unless and until the Notes are accepted for purchase by American Seafoods, will eliminate substantially all of the restrictive covenants, certain repurchase rights and certain events of default and related provisions contained in such indenture. As of March 22, 2004, all of the company's existing senior subordinated notes had been validly and irrevocably tendered. Consummation of the offer is subject to certain conditions, including consummation of certain financing transactions contemplated by the registration statement on Form S-1 filed with the Securities and Exchange Commission by American Seafoods Corporation. Subject to applicable law, American Seafoods Group LLC and American Seafoods Finance, Inc. may, in their sole discretion, waive or amend any condition to the offer or solicitation, or extend, terminate or otherwise amend the offer or solicitation. Credit Suisse First Boston, or CSFB, is the dealer manager for the offer and the solicitation agent for the solicitation. MacKenzie Partners, Inc. is the information agent and Wells Fargo Bank Minnesota, National Association is the depositary in connection with the offer and solicitation. American Seafoods, headquartered in Seattle, Washington, is the largest harvester and at-sea processor of pollock and hake and the largest processor of catfish in the United States. APARTMENT INVESTMENT: Redeeming Class P Pref. Stock on April 21 --------------------------------------------------------------- Apartment Investment and Management Company (Aimco) (NYSE: AIV) announced it will redeem all shares outstanding of its 9.0% Class P Convertible Cumulative Preferred Stock (NYSE: AIVPrP; CUSIP: 03748R-86-1). Redemptions will occur on April 21, 2004 at $25 per share plus an amount equal to accrued and unpaid dividends from April 15, 2004 up to and including the redemption date of $0.0375 per share. The total redemption price of $25.0375 per share is payable only in cash. After the redemption date, the Class P no longer will be outstanding and holders of Class P will have only the right to receive payment of the redemption price in exchange for their Class P certificates. Prior to 5:00 p.m. eastern time on Tuesday, April 20, 2004, each holder of the Class P has the option to convert such shares into Aimco's Class A Common Stock at a conversion price of $56 per share. Aimco previously announced a quarterly cash dividend of $0.5625 per share on the Class P, which will be paid on April 15, 2004 to holders of record on April 1, 2004. Proceeds from the Class U Cumulative Preferred Stock, (see Prospectus Supplement filed with the Securities and Exchange Commission dated March 17, 2004), will be applied to redemption of the Class P. Full redemption of the Class P is included in Aimco's previously provided projected earnings range for 2004. The Class P redemption is expected to result in negligible redemption charges (per EITF Topic D-42). Equiserve Trust Company N.A. is acting as redemption agent for the Class P and may be contacted regarding the redemption by calling 800-730-6001. Additional information on the Class U Preferred Stock is available in the Prospectus filed with the Securities and Exchange Commission and is available by calling Aimco Investor Relations at 303-691-4350 or at Aimco's Website at http://www.aimco.com/about/Financial/SECFilings/1378T06_CNB.PDF Aimco (Fitch, BB+ Preferred Share Rating, Negative) is a real estate investment trust headquartered in Denver, Colorado owning and operating a geographically diversified portfolio of apartment communities through 19 regional operating centers. Aimco, through its subsidiaries, operates approximately 1,629 properties, including approximately 288,000 apartment units, and serves approximately one million residents each year. Aimco's properties are located in 47 states, the District of Columbia and Puerto Rico. Aimco common shares are included in the S&P 500. ATSI COMMS: Annual Shareholders' Meeting Set for May 6 in Texas --------------------------------------------------------------- ATSI Communications, Inc. (OTC: ATSC) announced that its 2004 Annual Meeting of Stockholders will be held at 10:00 AM CST on May 6, 2004, at the conference hall of the Dr. Burton E. Grossman International Conference Center, University of the Incarnate Word, 4301 Broadway, San Antonio, Texas. All persons owning shares of the company's common stock or the series A convertible preferred stock on record as of March 25, 2004, are entitled to notice and to vote at the annual meeting. The Company expects to commence mailing of its Annual Report and Proxy Statement to shareholders on March 31, 2004. As previously announced, ATSI plans to reincorporate in Nevada upon shareholder approval. This will provide the company with greater flexibility, simplicity in corporate transactions, reduced taxes, and the reduction of various costs of doing business. The reincorporation will also change the Company's capital structure by reducing the number of shares of common stock outstanding, thus improving the Company's ability to raise capital and pursue strategic transactions. The most frequently asked questions and answers concerning ATSI's restructuring and reincorporation plan have been filed with the SEC and are being provided to shareholders via ATSI's website at http://www.atsi.net/ ATSI Communications, Inc. is an emerging international carrier serving the rapidly expanding niche markets in and between Latin America and the United States, primarily Mexico. ATSI believes that it has clear advantages over its competition through its unique concession license in Mexico, interconnection and service agreements, and strategic partnerships with established carriers and network operators in Mexico. As reported in the Troubled Company Reporter's January 15, 2004 edition, the company's ex-auditors', Tanner + Co., report on the financial statements for the years ended July 31, 2002 and 2003 contained a qualification reflecting the uncertainty regarding the ability of the Company to continued as a going concern due to the financial difficulties faced by the Company during the audited periods. ATSI Communications filed for Chapter 11 protection on February 4, 2003 in the U.S. Bankruptcy Court for the Western District of Texas (San Antonio) (Lead Bankr. Case No. 03-50753). Martin Warren Seidler, Esq., represents the Debtors in these cases. At the time of filing, the Debtors listed estimated assets of between $10 and $50 Million and estimated debts of between $1 and $10 Million. BARNEYS NEW YORK: Reports Revenue Increases in Q4 & FY 2004 ----------------------------------------------------------- Barneys New York, Inc. announced results for the fourth quarter and fiscal year ended January 31, 2004. Net sales for the fourth quarter increased 10.9% to $117.5 million from $106 million in the corresponding period last year. Comparable store sales increased 9.6%. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 19.6% to $13.4 million in the fourth quarter of 2003 compared to $11.2 million in the prior year period. Net income increased 13.7% to $6.3 million, or 44 cents per diluted share, for the fourth quarter, compared with $5.6 million, or 40 cents per share, in the year ago period. For the fiscal year ended January 31, 2004, net sales increased 6.8% to $409.5 million from $383.4 million for the fiscal year ended February 1, 2003. Comparable store sales increased 6.2%. EBITDA increased 11.8% to $34.5 million in the fiscal year ended January 31, 2004 compared to $30.9 million in the prior year. Net income was $7.1 million, or 50 cents per diluted share, for the fiscal year ended January 31, 2004, compared with $8.5 million, or 61 cents per share, in the prior year. As compared to the prior year comparable periods, net income for the fourth quarter ended January 31, 2004 includes higher interest expense of $1.4 million and net income for the fiscal year ended January 31, 2004 includes higher interest expense of $4.1 million, principally related to the Company's senior secured notes issued on April 1, 2003. "Strong sales in the last three quarters of fiscal year 2003 were the cornerstone of our successful year," stated Howard Socol, Chairman, President and Chief Executive Officer. "Improved full price selling in the fourth quarter helped increase total sales and sustain our gross margin. Our solid top-line growth coupled with disciplined expense controls, contributed to the Company's double-digit increases in operating income and EBITDA for both the fourth quarter and fiscal year. While the senior debt refinancing completed in the first quarter of 2003 increased our interest expense and impacted our net income throughout most of the year, the refinancing was clearly an important step towards strengthening the Company's financial condition." Mr. Socol continued, "Significant remodeling and expansion projects will be completed in 2004 at our Madison Avenue and Beverly Hills flagship stores intensifying our luxury business in those markets. Barneys' ongoing contemporary Co-Op business expansion in existing and new stores is broadening both our reach as we enter new markets, and our client base by targeting the younger designer customer. The Company is committed to maximizing productivity in its existing stores, expanding in a disciplined manner, providing exceptional customer service and executing key merchandising initiatives. Our strategic focus should enable us to capitalize on the current momentum in luxury retailing and on the Company's future growth prospects." Barneys New York is a luxury retailer with flagship stores in New York City, Beverly Hills and Chicago. In addition, the Company operates three regional full price stores, three CO-OP Barneys New York stores, twelve outlet stores and two semi-annual warehouse sale events. The Company also maintains corporate offices in New York City, an administrative and distribution center in Lyndhurst, New Jersey and has approximately 1,400 employees. On January 10, 1996, Barney's, Inc. and subsidiaries filed voluntary petitions for reorganization under chapter 11 of the United States Bankruptcy Code. The Predecessor company's plan of reorganization was confirmed on December 21, 1998, by the U.S. Bankruptcy Court for the Southern District of New York, and became effective on January 28, 1999. As previously reported, Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Barneys New York Inc. Standard & Poor's also assigned its 'B-' rating to Barneys Inc.'s proposed $100 million senior secured notes due in 2008. The outlook is stable. BIOVAIL CORP: Renews $400 Million Revolving Term Credit Facility ---------------------------------------------------------------- Biovail Corporation (NYSE:BVF)(TSX:BVF) announced that it has successfully renewed its Revolving Term Credit Facility with its syndicate of Canadian and American banks. Biovail identified its cash flow expectations and capital requirements for 2004 along with its strategy to focus its business development activities on out-licensing, not acquisitions, and therefore has renewed the Credit Facility at $400 million (USD). The agreement is for renewable one year terms with a one year term out option for Biovail. The interest rates charged under the facility remain the same in this renewed facility, as do the financial covenants. "We are pleased at the confidence demonstrated in this company by the support from this excellent group of banks," said Biovail's CEO & Chairman Eugene Melnyk. The Administrative Agent for the Revolving Term Credit Facility is Scotia Bank and The Syndication Agent is Bank of Montreal. Canadian Lead Managers include The Royal Bank of Canada, and HSBC Bank Canada. American Lead Managers include Citibank NA, Credit Suisse First Boston, UBS LLC and J.P. Morgan. There is currently $300 million drawn on the Revolving Term Credit Facility and the Company has $175 million in cash on hand. The Company anticipates paying down the facility with $100 million of the available cash such that an estimated $200 million will likely be drawn under the credit facility as of March 31, 2004, leaving availability of $200 million. The Company's operating cash flow estimate for the year is $300 to $350 million. Biovail Corporation is a full-service pharmaceutical company, engaged in the formulation, clinical testing, registration, manufacture, sale and promotion of pharmaceutical products utilizing advanced drug delivery technologies. As reported in the Troubled Company Reporter's March 11, 2004 edition, Standard & Poor's Ratings Services revised the outlook on pharmaceutical company Biovail Corp. to negative from stable. At the same time, the ratings on Mississauga, Ontario-based Biovail, including the 'BB+' long-term corporate credit rating, were affirmed. The action is in response to the company's lower 2004 earnings guidance. BMC INDUSTRIES: Receives Bank Waiver Extension through May 14 ------------------------------------------------------------- BMC Industries, Inc. (OTCBB:BMMI) announced that its bank group has granted the company an additional waiver of certain covenants and other obligations under its credit agreement. The company has been operating under a series of waivers from its banks since June 30, 2003. The waiver also extends the time period for BMC to make certain scheduled principal and fee payments, and defers interest payment obligations of approximately $0.6 million until May 14, 2004, the termination date of both this waiver extension and the current credit agreement. The deferral of these payments are subject, however, to the company's continuing obligation to remit the net proceeds of any asset sales and certain other cash flows to its lenders in partial repayment of interest and principal obligations. Since June 30, 2003, the company has incurred and paid $5.7 million in interest obligations. As in previous waivers, the banks and the company have agreed that no additional borrowings will be extended during the waiver period. Discussions continue between BMC, the company's advisors, and its banks regarding the financing and capitalization of the Company after May 14, 2004. About BMC Industries BMC Industries Inc., founded in 1907, is comprised of two business segments: Optical Products and Buckbee-Mears. The Optical Products group, operating under the Vision-Ease Lens trade name, is a leading designer, manufacturer and distributor of polycarbonate and glass eyewear lenses. Vision-Ease Lens also distributes plastic eyewear lenses. Vision-Ease Lens is a technology and a market share leader in the polycarbonate lens segment of the market. Polycarbonate lenses are thinner and lighter than lenses made of other materials, while providing inherent ultraviolet (UV) filtering and impact resistant characteristics. The Buckbee-Mears group, the only North American supplier of television aperture masks, has announced its plans to wind down its operations by June 2004. For more information about BMC Industries, visit the company's Web site at http://www.bmcind.com/ BOYD: Names Thomas Roberts Gen. Manager of Sam's Town Shreveport ---------------------------------------------------------------- Boyd Gaming Corporation named Thomas A. Roberts, CPM as General Manager of its Sam's Town Shreveport facility, pending the close of its acquisition. The $190 million acquisition is expected to close in the second quarter 2004. Thomas Roberts commented on the announcement, "I am especially pleased about joining Boyd Gaming and the fact that I will be working with the same team members that have helped to make this property such a success over the last few years. We have a great team here that provides some of the best service in the market, and I am excited and proud to be able to stay with the property and to remain in the Shreveport community." Roberts has been the leader of the Shreveport property since late 1999 and previously served as Vice President of Development and Leasing for Rio Suite Hotel & Casino in Las Vegas, Nevada. Roberts was also the Founding General Manager of the famous Forum Shops at Caesars Palace in Las Vegas. Las Vegas-based Boyd Gaming said they were delighted that Roberts accepted their offer to stay at the casino he has helped make so successful. "We know customers have been happy with their experiences at this property, and other than a name change, we don't anticipate they will see a difference," said Keith Smith, Executive Vice President and Chief Operating Officer for Boyd Gaming. Boyd Gaming plans to begin operations as Sam's Town Shreveport immediately following regulatory approval. Boyd Gaming currently operates two other properties under the popular Sam's Town brand in Tunica, Mississippi and Las Vegas, and the Company also has two other Louisiana properties: Delta Downs Racetrack and Casino in Vinton and Treasure Chest Casino in Kenner. Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 13 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana. Boyd Gaming recently opened Borgata Hotel, Casino and Spa at Renaissance Pointe (AOL keyword: borgata or http://www.theborgata.com/), a $1.1 billion entertainment destination hotel in Atlantic City, through a joint venture with MGM MIRAGE. In February, the Company reached a definitive agreement to merge with Coast Casinos, Inc. The $1.3 billion merger is expected to be completed in mid 2004. More information on Boyd Gaming is at http://www.boydgaming.com/ * * * As reported in the Feb. 12, 2004, issue of the Troubled Company Reporter, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit and 'B+' subordinated debt ratings for Boyd Gaming Corp. Concurrently, the ratings were removed from CreditWatch where they were placed on Feb. 9, 2004. These rating actions clarify Standard & Poor's intention in its press release dated Feb. 9, 2004. In that press release, both the corporate credit and subordinated debt ratings of Boyd were placed on CreditWatch with negative implications. "Given Standard & Poor's expectation to affirm the corporate credit rating, those ratings should not have been placed on CreditWatch," said Standard & Poor's credit analyst Michael Scerbo. "However, the company's 'BB+' senior secured and 'BB-' senior unsecured debt ratings remain on CreditWatch with negative implications given the uncertainty about the final capital structure and the possible impact on notching," Mr. Scerbo added. The outlook is stable. Pro forma for its merger with Coast Casinos Inc., Boyd Gaming is expected to have approximately $2.3 billion debt outstanding. BUDGET GROUP: Court Sets Plan Confirmation Hearing for April 7 -------------------------------------------------------------- On February 4, 2004, the U.S. Bankruptcy Court for the District of Delaware approved the Budget Group, Inc. and its debtor- affiliates' Disclosure Statement with respect to their Second Amended Joint Chapter 11 Liquidating Plan. The Court found that the Disclosure Statement contained the right kind and amount of information to enable creditors to make informed decisions whether to accept or reject the Debtors' Plan. The Honorable Charles G. Case, II, will convene a confirmation hearing in Wilmington, Delaware, to the merits of the Debtors' Liquidating Plan on April 7, 2004, at 9:30 a.m. (Eastern Time). Headquartered in Daytona Beach, Florida, Budget Group, Inc., operates under the Budget Rent a Car and Ryder names -- is the world's third largest car and truck rental company. The Company filed for chapter 11 protection on July 29, 2002 (Bankr. Del. Case No. 02-12152). Lawrence J. Nyhan, Esq., and James F. Conlan, Esq., at Sidley Austin Brown & Wood and Robert S. Brady, Esq., and Edward J. Kosmowski, Esq., at Young, Conaway, Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. When the Company filed for protection from their creditors, they listed $4,047,207,133 in assets and $4,333,611,997 in liabilities. BUDGET GROUP: Discloses Plan Administrator's Responsibilities ------------------------------------------------------------- Robert L. Aprati, Executive Vice President and General Counsel of BRAC Group, Inc. (formerly Budget Group Inc.), informs the Court that the Plan Administrator's responsibilities include: (1) calculating and paying all distributions to be made under the Plan, the Plan Administration Agreement and other Bankruptcy Court orders to the Holders of Allowed U.S. Debtor Group Administrative Claims, Allowed U.S. Debtor Group Priority Tax Claims, Allowed Class 1A Claims, Allowed Class 2A Claims, Allowed Class 4A Claims, Allowed Class 5A Claims and Allowed Class 6A Claims; (2) employing, supervising and compensating professionals retained to represent the interests of and serve on behalf of Reorganized BGI; and (3) seeking estimation of contingent or unliquidated claims under Section 502(c) of the Bankruptcy Code for claims filed against the estates of the U.S. Debtor Group other than Class 3A Claims. The Plan Administrator will provide monthly reports to the Plan Committee summarizing the activities of the Plan Administrator and Reorganized BGI during the immediately preceding month. The Plan Administrator will be compensated from Reorganized BGI's Operating Reserve pursuant to the terms of the Plan Administration Agreement. Any professionals retained by the Plan Administrator will be entitled to reasonable compensation for services rendered and reimbursement of expenses incurred from Reorganized BGI's Operating Reserve. The payment of the fees and expenses of the Plan Administrator and its retained professionals will be made in the ordinary course of business and will not be subject to Bankruptcy Court approval. Before the Effective Date: (1) the U.S. Debtor Group will be primarily responsible for the reconciliation and allowance of general unsecured, administrative, priority and secured claims, other than Cherokee Assumed Liability Claims, provided that the U.S. Debtor Group will consult, in good faith, with the Official Committee of Unsecured Creditors with respect to the reconciliation and allowance of the claims; and (2) the Creditors Committee will fulfill the responsibilities assigned to it under the Allocation Settlement Agreement. From and after the Effective Date and subject to the requirements of Section 4.7(c) of the Plan: (1) The Plan Administrator will be primarily responsible for the claims reconciliation process with respect to the allowance and payment of general unsecured, administrative, priority or secured claims, other than Cherokee Assumed Liability Claims and will be authorized: (a) to object to any Claims, other than Cherokee Assumed Liability Claims, or interests filed against any of the estates of the U.S. Debtor Group; and (b) pursuant to Rule 9019(b) of the Federal Rules of Bankruptcy Procedure and Section 105(a) of the Bankruptcy Code, to compromise and settle Disputed Claims other than Cherokee Assumed Liability Claims; and (2) The Plan Committee will fulfill the responsibilities assigned to it under the Allocation Settlement Agreement. Upon approval by the Plan Committee, the Plan Administrator will be authorized and empowered to settle any Disputed Claim, other than Cherokee Assumed Liability Claims, for less than $250,000 and execute any documentation necessary in connection with the settlement without any further Court order. Notwithstanding, the U.S. Trustee will continue to have standing after the Effective Date to object to the fee applications filed by Chapter 11 professionals. Committee and the Plan Committee The Creditors Committee will continue in existence until the Effective Date to exercise those powers and perform those duties specified in Section 1103. On the Effective Date, the Creditors Committee will be dissolved and its members will be deemed released of all their duties, responsibilities and obligations in connection with the Chapter 11 Cases or the Plan and its implementation, and the retention or employment of the Committee's attorneys, accountants and other agents will terminate. All expenses of the Committee members and the fees and expenses of their professionals through the Effective Date will be paid in accordance with the terms and conditions of the Fee Order. On the Effective Date, the Plan Committee will be formed and constituted. The Plan Committee will consist of at least one but no more than three members who will be selected by the Creditors Committee and whose identities will be disclosed to the Bankruptcy Court at the Confirmation Hearing. The Plan Committee will: (1) be responsible for: (a) instructing and supervising the Plan Administrator with respect to its responsibilities under the Plan and the Plan Administration Agreement; (b) reviewing the prosecution of the U.S. Debtor Group Litigation Claims, including any proposed settlements; (c) reviewing objections to and proposed settlements of Disputed Claims asserted against one of more Debtors in the U.S. Debtor Group; (d) exercising powers and performing duties assigned to the Committee under the Allocation Settlement Agreement; and (e) performing other duties that are necessary and proper to assist the Plan Administrator and its retained professionals; and (2) remain in existence until the time as the final distributions under the Plan have been made by Reorganized BGI. The Plan Committee members will serve without compensation for their performance of services as members of the Plan Committee, except that they will be entitled to reimbursement of reasonable expenses by Reorganized BGI. Reorganized BGI and the Estates of the U.S. Debtor Group will, to the fullest extent permitted by the laws of the State of Delaware, indemnify and hold harmless the Plan Administrator, the Plan Committee and the Plan Administrator's, Plan Committee's and Reorganized BGI's agents, representatives, professionals and employees from and against and with respect to any and all liabilities, losses, damages, claims, costs and expenses, including but not limited to attorney's fees, arising out of or due to their actions or omissions, or consequences of the actions or omissions, other than actions or omissions resulting from the BGI Indemnified Party's willful misconduct or gross negligence with respect to Reorganized BGI and the Estates of the U.S. Debtor Group or the implementation or administration of the Plan and the Plan Administration Agreement. To the extent Reorganized BGI and the Estates of the U.S. Debtor Group indemnify and hold harmless the BGI Indemnified Parties, the legal fees and related costs incurred by the counsel to the Plan Administrator or Plan Committee in monitoring and participating in the defense of the claims giving rise to the right of indemnification will be paid out of Reorganized BGI's Operating Reserve it maintained and funded. The indemnification provisions of the Plan Administration Agreement will remain available to and be binding on any former Plan Administrator or member of the Plan Committee and will survive the terminations of the Plan Administration Agreement. Headquartered in Daytona Beach, Florida, Budget Group, Inc., operates under the Budget Rent a Car and Ryder names -- is the world's third largest car and truck rental company. The Company filed for chapter 11 protection on July 29, 2002 (Bankr. Del. Case No. 02-12152). Lawrence J. Nyhan, Esq., and James F. Conlan, Esq., at Sidley Austin Brown & Wood and Robert S. Brady, Esq., and Edward J. Kosmowski, Esq., at Young, Conaway, Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. When the Company filed for protection from their creditors, they listed $4,047,207,133 in assets and $4,333,611,997 in liabilities. (Budget Group Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) BUFFALO RUN LLC: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Buffalo Run, LLC 50 North East 26th Avenue, Suite 201 Pompano Beach, Florida 33062 Bankruptcy Case No.: 04-24106 Chapter 11 Petition Date: March 16, 2004 Court: District of Utah (Salt Lake City) Judge: William T. Thurman Debtor's Counsel: Robert B. Lochhead, Esq. Parr Waddoups Brown Gee & Loveless 185 South State Street, Suite 1300 Salt Lake City, UT 84111-1536 Tel: 801-532-7840 Estimated Assets: $10 Million to $50 Million Estimated Debts: $1 Million to $10 Million Debtor's 9 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Amerigas-Heber City Gas Services Unknown 1212 Beck Street Salt Lake City UT 84116-1298 All West Communications Phone Services Unknown Wasatch County Waste Services Unknown Solid Waste Disposal Waste Services Unknown Utah Power Utilities Unknown Peak Alarm Alarm Services Unknown Pegasus Satellite Satellite Services Unknown Loomis Company Products & Services Unknown Mike Crittenden Services Unknown CALPINE: Closes $2.4B CalGen Secured Term Loans & Notes Offering ---------------------------------------------------------------- Calpine Corporation (NYSE: CPN) (S&P, CCC+ Senior Unsecured Convertible Note and B Second Priority Senior Secured Note Ratings, Negative Outlook), announced that its wholly owned subsidiary Calpine Generating Company, LLC, formerly Calpine Construction Finance Company II, LLC, has received funding on its $2.4 billion secured term loans and secured notes offering. The offering was comprised of the following: -- $600 million of First Priority Secured Floating Rate Term Loans Due 2009 priced at Libor plus 375 basis points, with a Libor floor of 125 basis points; -- $235 million of First Priority Secured Floating Rate Notes Due 2009 priced at Libor plus 375 basis points, with a Libor floor of 125 basis points; -- $100 million of Second Priority Secured Floating Rate Term Loans Due 2010 offered at 98.5% of par and priced at Libor plus 575 basis points, with a Libor floor of 125 basis points; -- $640 million of Second Priority Secured Floating Rate Notes Due 2010 offered at 98.5% of par and priced at Libor plus 575 basis points, with a Libor floor of 125 basis points; -- $680 million of Third Priority Secured Floating Rate Notes Due 2011 priced at Libor plus 900 basis points, with a Libor floor of 125 basis points; and -- $150 million of Third Priority Secured Fixed Rate Notes Due 2011 priced at 11.50%. The secured term loans and notes described above will in each case be secured through a combination of direct and indirect stock pledges and asset liens, by CalGen's 14 power generating facilities and related assets located throughout the United States, and the lenders' recourse will be limited to such security. None of the indebtedness will be guaranteed by Calpine Corporation. Net proceeds from the offering totaled approximately $2.3 billion after deducting fees and expenses associated with the refinancing. These proceeds were used to repay in full approximately $2.3 billion in borrowings outstanding under the original $2.5 billion CCFC II revolving credit facility, which was scheduled to mature in November 2004. Concurrent with the completion of this offering, CalGen entered into an agreement for a $200 million revolving credit facility with a group of banks led by The Bank of Nova Scotia. This three- year facility will be available for specified CalGen working capital purposes and for letters of credit. All amounts outstanding under this $200 million revolving credit facility will bear interest at either (i) the Base Rate plus 250 basis points, or (ii) at Libor plus 350 basis points. The secured institutional term loans will be placed in the institutional term loan market. The secured notes will be offered in a private placement under Rule 144A, have not been registered under the Securities Act of 1933, and may not be offered in the United States absent registration or an applicable exemption from registration requirements. CALYPTE: At Last -- No Going Concern Qualification in 2003 Report ----------------------------------------------------------------- Calypte Biomedical Corporation (OTC Bulletin Board: CYPT) announces its financial results for the fourth quarter and year ended December 31, 2003. Calypte is currently engaged in developing rapid tests for HIV diagnosis and is the developer and marketer of the only two FDA-approved HIV-1 antibody tests that can be used on urine samples, as well as an FDA-approved serum HIV-1 antibody Western Blot supplemental test. For the fourth quarter ended December 31, 2003, Calypte recorded revenues of $1,037,000, compared with $809,000 in the fourth quarter of 2002. The net loss attributable to common stockholders for the quarter was approximately $4.9 million, or $0.04 per common share, compared with a net loss attributable to common stockholders of $6.3 million, or $1.54 per common share, for the three months ended December 31, 2002. Net loss for the quarter includes non-cash expenses of $1.5 million in 2003 and $3.4 million in 2002. For the year-ended December 31, 2003, Calypte reported revenues of $3.5 million, compared with $3.7 million in 2002. The net loss attributable to common stockholders for 2003 was $26.5 million, or $0.47 per common share, compared with a net loss attributable to common stockholders of $13.4 million, or $5.18 per common share, for the year ended December 31, 2002. Net loss for the year includes non-cash expenses of $14.3 million for 2003 and $5.4 million for 2002. These non-cash charges for the quarter and year were primarily related to the grants of common stock and options and warrants as compensation for services and non-cash interest expense related primarily to the accounting for Calypte's convertible debt financing instruments. Richard George, President and CEO commented, "We continue to become more efficient and believe that the dedicated staff as well as our proprietary sciences have shown to be resilient and will continue into the future. We expect to drive additional efficiencies as we complete the consolidation of our domestic manufacturing operations into our Rockville, Maryland facility." On March 19, 2004, the Agreement for Commitment to Purchase Aggregate of $10,000,000 of 5% Promissory Notes dated November 13, 2003 between Calypte and Marr Technologies BV ("MTBV") was amended. The amended Agreement increases the MTBV loan commitment to $15 million and will terminate on May 31, 2005. In conjunction with the amended Agreement, Calypte granted a warrant to purchase 400,000 shares of its stock on March 19, 2004. The warrant is exercisable for two years from the date of grant at an exercise price of $0.46 per share. Commenting on the amended Agreement, Tony Cataldo, Calypte's Executive Chairman stated, "This amendment reflects another level of confidence from MTBV. This credit facility allows Calypte to support its aggressive business plan as it continues to move forward in the development and testing of its rapid products." Mr. Cataldo added, "Included in the initial agreement was a requirement that Calypte be listed on an exchange in order to activate the credit facility. The amended Agreement does not include any reference to that prerequisite, but we continue to aggressively pursue that possibility. Another milestone to achieve that listing status is evidenced by the auditors' issuance of an opinion that does not include a 'going concern' qualification." Recent Highlights Following are Calypte's most significant milestones since the last quarterly release, together with the progress made in the development of its rapid HIV products and the strengthening of its balance sheet: * Calypte has significantly strengthened its financial position with the receipt of an aggregate of $12.5 million in new investment financing in two third-quarter 2003 transactions and the $15 million loan commitment by MTBV. For the first time in the Company's history, it no longer has a "going concern" opinion qualification. * Calypte continues to implement the consolidation of its manufacturing operations into a single facility at its Rockville, Maryland location. The Company is manufacturing additional inventory at its Alameda site to ensure an adequate supply of the Company's current screening tests during the transition. The consolidation of Calypte's manufacturing operations, when completed, is expected to eliminate approximately $1 million of annual expense, including approximately $500,000 in annual occupancy costs, and thus create a more efficient and cost effective manufacturing structure. Calypte expects to complete the Alameda facility wind-down by June 30, 2004. * Calypte is committed to and focused on completing the development and commercialization of one or more rapid HIV- 1/2 diagnostic tests into the international market as the Company's primary new product offering. * Calypte has begun international field trials of its developmental stage urine and blood rapid tests in Thailand. The evaluation of field results is an iterative process. The results gained from these field trials are the catalyst to initiate formal clinical trials and international manufacturing operations which will be significant milestones in achieving the commercialization of our rapid products. The Company may elect to proceed with the commercialization of one of the tests while continuing to evaluate and modify the other. * Calypte will continue to distribute its products in international markets through resident diagnostic product distributors, where appropriate, and will also seek to widen its horizons via new distribution platforms. * The international AIDS community believes that northern Africa, Russia, China and India represent the "next wave" of HIV epidemic regions. Calypte's initial international focus for its anticipated rapid HIV-1/2 diagnostic tests will be China and Russia. The Company is also planning to pursue additional international distribution opportunities in key African countries as funding from the federal government's AIDS initiatives and related humanitarian organization financing provides funds for testing in lesser-developed countries where the HIV infection is epidemic. At December 31, 2003, Calypte Biomedical Corporation's balance sheet shows a recovery of shareholder equity at $917,000. At December 31, 2002, the company reported a total stockholders' equity deficit of $7,494,000 About Calypte Biomedical Calypte Biomedical Corporation, headquartered in Alameda, California, is a public healthcare company dedicated to the development and commercialization of in vitro diagnostic tests, primarily for the detection of antibodies to Human Immunodeficiency Virus (HIV), and other sexually transmitted and infectious diseases. Calypte's currently marketed laboratory-based tests include an enzyme immunoassay (EIA) HIV-1 antibody screening test and an HIV-1 antibody western blot supplemental test, the only two FDA-approved HIV-1 antibody tests for use on urine samples, as well as an FDA-approved serum HIV-1 antibody western blot supplemental test. Calypte is actively engaged in developing new test products for the rapid detection of HIV and other infectious diseases. Calypte believes that there is a significant need for rapid detection of such diseases globally to control their proliferation, particularly in lesser-developed countries which lack the medical infrastructure to support laboratory-based testing. Calypte believes that testing for HIV and other infectious diseases may make important contributions to public health. CASEY'S BAR-B-Q: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Lead Debtor: Casey's Bar-B-Q, Inc. 327 East Nakoma San Antonio, Texas 78216 Bankruptcy Case No.: 04-51403 Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Casey's Bar-B-Q II, Inc. 04-51402 Type of Business: The Debtor owns a Bar-B-Q Restaurant Chapter 11 Petition Date: March 4, 2004 Court: Western District of Texas (San Antonio) Judge: Leif M. Clark Debtors' Counsel: Dean William Greer, Esq. 2929 Mossrock, Suite 105 San Antonio, TX 78230 Tel: 210-342-7100 Total Assets Total Debts ------------ ----------- Casey's Bar-B-Q., Inc. $1,010,920 $1,453,072 Casey's Bar-B-Q. II, Inc. $133,908 $1,445,774 Debtors' 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ IBC Bank Supplies $850,000 130 E. Travis San Antonio, TX 78205 Sysco Foods Supplies $412,000 P. O. Box 18364 San Antonio, TX 78218 State Comptroller of Public Taxes $410,000 Ac 111 E. 17th Street Austin, TX 78774-0100 Sylvia S. Romo Property Taxes $217,000 Estate of Lamae Valick Loan $125,000 Wells Fargo Bank Texas Loan $90,000 Santa Barbara Bank & Trust Lease $82,062 Republic Leasing Lease $40,870 Pawnee Leasing Forklift $35,752 G.E. Credit Corp. Credit $15,000 Metalmorphosis Supplies $11,452 American Express Credit Card $8,000 Judson, ISD Taxes $6,000 Aetna Healthcare Insurance $4,600 Zurich Insurance Insurance $4,000 Flowers Buttercrust Bakery, Supplies $3,589 L.L.C. Gill Services Services $3,500 Unicyn Funding Group Insurance $3,161 Mission Restaurant Supply Supplies $2,825 Elmer E. Anderson Loan $1,400 CHESAPEAKE ENERGY: Acquiring $100 Million Producing Properties -------------------------------------------------------------- Chesapeake Energy Corporation (NYSE: CHK) has entered into or is completing agreements to acquire $100 million of Mid-Continent, Permian Basin and Texas Gulf Coast oil and natural gas assets in four separate transactions. Through these agreements, Chesapeake anticipates acquiring an internally estimated 68 billion cubic feet of gas equivalent proved reserves (bcfe), 39 bcfe of probable and possible reserves and current production of 15 million cubic feet of natural gas equivalent production (mmcfe) per day. Pro forma for these acquisitions, Chesapeake's anticipated March 31, 2004 proved oil and natural gas reserves are expected to be approximately 3.6 trillion cubic feet of natural gas equivalent (tcfe). After allocating $16 million of the purchase price to unevaluated leasehold, probable and possible reserves, and other assets, Chesapeake's acquisition cost per thousand cubic feet of gas equivalent (mcfe) of proved reserves associated with these transactions will be $1.24. Including unevaluated leasehold and anticipated future drilling costs for fully developing the proved, probable and possible reserves, the company estimates that its all-in acquisition cost for the 107 bcfe of estimated reserves will be $1.39 per mcfe. The proved reserves have a reserves-to- production index of 12.5 years, are 66% oil and are 74% proved developed. Two of the acquisitions are expected to close on April 1, 2004 and two are expected to close on May 1, 2004. All acquisitions are subject to customary closing conditions with no single closing conditioned on the closing of any other acquisition. The company intends to finance the acquisitions with proceeds from a new private issue of cumulative convertible preferred stock. Chesapeake Increases 2004 Production Guidance and Announces New Hedges for Oil and Natural Gas Production To Be Acquired Chesapeake is increasing its 2004 production forecast by 7.0 bcfe (2.1%) from a range of 323-329 bcfe (891 mmcfe per day at the mid- point) to a range of 330-336 (910 mmcfe per day at the mid-point). Approximately 3.8 bcfe of this 7.0 bcfe increase is attributable to today's announced acquisitions while 3.2 bcfe is attributable to better than expected recent drilling results. The company's 2004 production is expected to be 89% natural gas and 11% oil and natural gas liquids. Last week, Chesapeake hedged the anticipated production of 1,600 barrels of oil per day and 5,000 mcf of natural gas per day expected from the new acquisitions at attractive prices for April 2004 through December 2005. The hedged prices averaged $33.11 per barrel of oil and $5.78 per mcf of natural gas. Depending on changes in oil and natural gas futures markets and management's view of underlying oil and natural gas supply and demand trends, Chesapeake may either increase or decrease its hedging positions at any time in the future without notice. Management Comments Aubrey K. McClendon, Chesapeake's Chief Executive Officer, commented, "The announcements provide additional confirmation that Chesapeake continues to be successful in identifying opportunities to further strengthen its proved reserve base and enhance its production profile through the ongoing consolidation of high- quality oil and natural gas assets in our operating areas. These transactions are consistent with Chesapeake's balanced business strategy of creating value by delivering profitable organic growth from our developmental and exploratory drilling programs complemented by acquiring and developing long-lived, under-exploited oil and natural gas assets. "In addition, we have locked-in accretive returns from these acquisitions by hedging virtually 100% of the anticipated oil and natural gas production volumes for April 2004 through December 2005 at prices well above the price decks we used to evaluate the acquired properties. In this time of strong oil and natural gas markets, we believe unusually attractive returns to Chesapeake's shareholders can be generated from focused acquisitions and by hedging the acquired production volumes. We believe our ongoing consolidation of high-quality properties, followed by opportunistic hedging, and combined with our value-added drilling programs will continue to be a winning formula for our shareholders in the years ahead." Chesapeake Energy Corporation (Fitch, BB- Senior Note and B Preferred Share Ratings, Positive) is one of the five largest independent U.S. natural gas producers. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and producing property acquisitions in the Mid-Continent, Permian Basin, South Texas and Texas Gulf Coast regions of the United States. The company's Internet address is http://www.chkenergy.com/ CHESAPEAKE ENERGY: Offering $255MM Convertible Preferred Stock -------------------------------------------------------------- Chesapeake Energy Corporation (NYSE: CHK) announced that it intends to commence a private placement offering to eligible purchasers of $255 million of a new series of its cumulative convertible preferred stock with a stated value of $1,000 per share. The offering is expected to be eligible for resale under Rule 144A. The private offering, which is subject to market and other conditions, will be made within the United States only to qualified institutional buyers, and outside the United States only to non-U.S. investors. Chesapeake intends to use the net proceeds of the offering to repay debt under its bank credit facility and to fund approximately $100 million of pending acquisitions of oil and gas properties, or in the event the acquisitions are not consummated, excess proceeds will be used for general corporate purposes including possible future acquisitions. The chief executive officer and chief operating officer of Chesapeake intend to purchase at the offering price an aggregate of $20 million stated value in additional shares of the preferred stock directly from the Company at closing of the offering. The company also intends to grant a 30-day option to purchase a maximum of $38.25 million stated value in additional shares of convertible preferred stock to cover any over-allotments in the offering. Chesapeake Energy Corporation (Fitch, BB- Senior Note and B Preferred Share Ratings, Positive) is one of the five largest independent U.S. natural gas producers. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and producing property acquisitions in the Mid-Continent, Permian Basin, South Texas and Texas Gulf Coast regions of the United States. The company's Internet address is http://www.chkenergy.com/ COMMERCIAL PRINTING: Case Summary & Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Commercial Printing Express, Inc. dba Print World 900 Magoffin El Paso, Texas 79901 Bankruptcy Case No.: 04-30614 Type of Business: The Debtor provides printing services. Chapter 11 Petition Date: March 11, 2004 Court: Western District of Texas (El Paso) Judge: Larry E. Kelly Debtor's Counsel: Wiley France James, III, Esq. James, Goldman & Haugland, P.C. P.O. Box 1770 El Paso, TX 79949-1770 Tel: 915-532-3911 Estimated Assets: $1 Million to $10 Million Estimated Debts: $500,000 to $1 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Sun World Investments, L.P. Unpaid Rent $71,087 Casablanca Convertors, Inc. Vendor $57,903 International Corp. Vendor $55,332 Prime Papers Vendor $46,434 Konica Minolta Graphic Vendor $15,202 Imaging USA, Inc. Texas Converting, Inc. Vendor $11,078 US Ink Vendor $6,173 Jayco, Inc. Vendor $3,878 Bixler & Co. Vendor $3,519 El Paso Litho Plate Co, Inc. Vendor $3,499 Spectrum Paper Co., Inc. Vendor $3,074 Xpedx Stores Division Vendor $2,669 Guynes Printing Co. of TX, Vendor $2,520 Inc. Ryder Trans. Services Vendor $2,474 American Litho, Inc. Vendor $2,183 Assured Compliance Solutions, Vendor $1,560 Inc. Franklin Estimating Sytems Vendor $1,399 Safety Kleen Vendor $1,311 AA Industrial Control Vendor $1,237 Specialist American Express TRS Vendor $1,236 CORBAN COMMS: U.S. Trustee to Meet With Creditors on April 15 ------------------------------------------------------------- The United States Trustee will convene a meeting of Corban Communications, Inc.'s creditors at 10:00 a.m., on April 15, 2004, in Room 976 at the Office of the U.S. Trustee, 1100 Commerce Street, Dallas, Texas 75242. This is the first meeting of creditors required under 11 U.S.C. Sec. 341(a) in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Plano, Texas, Corban Communications, Inc. -- http://corbancom.com/-- is a carrier-neutral network services provider with products such as, Point to Point Interconnect and Transport for TDM and IP networks. The Company filed for chapter 11 protection on March 11, 2004 (Bankr. D\N.D. Tex. Case No. 04- 32972). Judith Weaver Ross, Esq., at Baker Botts LLP represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed both estimated debts and assets of over $10 million. COVANTA ENERGY: Obtains Go-Ahead to Buy Run-Off Insurance Program ----------------------------------------------------------------- At the outset of these Chapter 11 cases, the Covanta Energy Debtors sought and obtained the Court's authority to make certain payments necessary to maintain certain insurance coverage, bonds and related administration procedures. Deborah M. Buell, Esq., at Cleary Gottlieb Steen & Hamilton, in New York, relates that the Court, in its Insurance Maintenance Order, specifically authorized the Debtors to continue paying their prepetition insurance arrangements, including with respect to run-off director & officer and fiduciary liability obligations. Among the insurance policies covered by the Insurance Maintenance Order was the prepetition form of the D&O and fiduciary liability insurance program, pursuant to which the Debtors, at the inception of the coverage, established an insurance structure for their D&O and fiduciary liabilities. The Existing Insurance Program is comprised of "claims made" insurance policies. Thus, it only provides insurance coverage for certain claims that are asserted during the term of the policies contained in the Existing Insurance Program. Under the Second Plans, many of the Debtors' officers and employees will continue to serve in their capacities after the Effective Date. These Continuing Officers and Employees, as well as those individuals who served as employees, officers or directors prior to the Debtors' emergence from Chapter 11, will have the benefit of indemnification agreements that are being assumed under the Second Plans. Therefore, any claim for indemnification of employees, officers and directors for pre-emergence conduct will need to be met by the Reorganized Debtors. In order to induce the Continuing Officers and Employees to remain with the Reorganized Debtors and in order to provide the departing officers and directors with sufficient time to assert claims under the claims made policy, the Debtors want to purchase the Run-Off Insurance Program. Ms. Buell contends that without the extension of coverage provided by the Run-Off Insurance Program, no coverage would be provided under the Existing Insurance Program for claims that are made after the policy period. Consistent with its ordinary course practice, after having investigated and negotiated with several potential insurance providers the most cost effective structure for such insurance, Covanta intends to agree to the terms of the proposed Run-Off Insurance Program. According to the Debtors' insurance broker, Willis of New York, the salient terms of the Run-Off Insurance Program are: A. It will be effective from the date of Covanta's emergence from Chapter 11 for 72 months. B. As with the Existing Insurance Program, there will be three insurance carriers: * Chubb Specialty Insurance, an affiliate of Federal Insurance Company; * XL Specialty Insurance Company; and * Corporate Officers and Directors Assurance Ltd., an affiliate of Ace Bermuda. C. The total coverage under the Run-Off Insurance Program will be $75,000,000 in the aggregate for D&O liability and $25,000,000 in the aggregate for fiduciary liability. Of the $75,000,000 total coverage for D&O liability, Chubb and XL will provide coverage for both corporate and direct reimbursement obligations, while CODA will provide coverage only for non- indemnifiable reimbursement obligations. D. Covanta will not be required to provide collateral. E. There is no deductible for the direct reimbursement portion of the D&O policy, and deductibles of up to $5,000,000 per occurrence will apply to each corporate reimbursement claim under the D&O policy. Deductibles of up to $250,000 per indemnified occurrence will apply to each claim under the fiduciary liability policy. F. The total premium due and payable under the Run-Off Insurance Program will not exceed $4,625,000, comprising a maximum of $4,125,000 for D&O liability coverage and a maximum of $500,000 for fiduciary liability coverage. G. The terms of the Run-Off Insurance Program are contingent on Covanta's making a lump-sum premium payment upon its emergence from Chapter 11 and in any event no later than March 31, 2004. At the Debtors' request, Judge Blackshear authorizes Covanta to purchase the Run-Off Insurance Program and make premium payments. Headquartered in Fairfield, New Jersey, Covanta Energy Corporation -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develop, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. The Company filed for Chapter 11 protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826). Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary, Gottlieb, Steen & Hamilton represent the Debtors in their restructuring efforts. When the Debtors filed for protection from its creditors, they listed $3,280,378,000 in assets and $3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No. 51; Bankruptcy Creditors' Service, Inc., 215/945-7000) DETROIT MEDICAL: Fitch Affirms B Rating on $569 Million MI Bonds ---------------------------------------------------------------- Fitch Ratings has affirmed the 'B' rating on Detroit Medical Center's approximately $569 million of outstanding bonds. In addition, the bonds have been removed from Rating Watch Negative. The Rating Outlook is Negative. DMC has released its full fiscal year 2004 budget with a net income of negative $52.3 million (including $23.8 million of public subsidy), which is a $60.5 million improvement from the previous year. Fitch believes the budget is aggressive given large historical operating losses and the level of indigent care provided. However, financial performance has been ahead of budget for the first two months of the year. DMC implemented a series of expense reductions in the latter half of fiscal 2003, which is being realized in DMC's current financial performance. For the month of January 2004, DMC's net income was negative $6.975 million, which was $4.738 million favorable to budget. Including the public subsidy, January's bottom line was negative $1.8 million. Management has indicated that February's performance was similar and March is on the same track. Major expense reduction items include staff reductions of 342 FTEs, savings from supply and vendor contracts, and decrease in physician subsidies. In addition, there are further expense reductions and revenue enhancement opportunities identified from the current Huron engagement that have not been incorporated into the 2004 budget. Management continues to seek various options for the struggling hospitals in its portfolio, namely, Harper-Hutzel-Karmanos and Detroit Receiving. The system has benefited from a $50 million governmental subsidy that is available over a 10-month period (started October 2003); however, additional support past this year is unknown. To date, all debt service payments have been paid on time and the debt service reserve funds remain fully funded. In addition, management expects its GE line of credit that expires at the end of June 2004 to be renewed. The negative rating outlook is due to Fitch's belief that DMC's financial situation remains fragile and that fu