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InterNet Bankruptcy Library - News for July 30, 1997







Bankruptcy News For July 30, 1997




        
  1. Bankruptcy Judge Suggests Plan to
            Liquidate Silicone Breast Implant Claims Against Dow
            Corning; District Court to Make Binding Decision on
            Liquidation of Claims

  2.     
  3. Court Issues Opinion That Common Issue
            Causation Trials Should Resolve Legal Debate on Breast
            Implants, Announces Dow Corning Corporation

  4.     
  5. Interline Resources Corp.
            Announcement

  6.     
  7. AccuLase Licenses Worldwide Marketing
            Rights to its TMR Cardiovascular Technology

  8.     
  9. Court Approves NOXSO Interim Financing
            Plan

  10.     
  11. Today's Man Files Amended Plan of
            Reorganization and Disclosure Statement






Bankruptcy Judge Suggests Plan to Liquidate Silicone Breast
Implant Claims Against Dow Corning; District
Court to Make Binding Decision on Liquidation of Claims



WASHINGTON, DC - July 30, 1997 - Judge Arthur Spector, the
bankruptcy judge who supervises the Dow
Corning
case, issued a report outlining his recommendations
for liquidating the tort claims in the Dow Corning bankruptcy.
His views on liquidation are suggestions to the District Court,
which will make the decision on the procedure for liquidating
these claims.



Judge Spector also issued two binding rulings. One denied Dow
Corning's request for the appointment of a science panel under
his supervision. There is already a science panel underway in
Federal District Court in Birmingham, Alabama. It is expected to
have bearing on the silicone breast implant cases.



The second of Judge Spector's rulings rejected each side's
proposal for a procedure to estimate the value of personal injury
claims.



In his non-binding opinion, Judge Spector suggested:



- the establishment of separate procedures to liquidate
thousands of non-disease claims; and -- endorsement of a common
issue causation trial to determine whether silicone can cause
disease.



The report suggests that sample trials could follow the common
issue trial, if it is found that silicone can cause disease.



"We believe it is a mistake not to go immediately to a
range of sample trials," said Ralph Knowles, a member of the
tort claimants committee. This would allow the variety and range
of health problems to be considered in a number of trials, an
approach proposed by the committee representing the tort
claimants.



"We expect that the District Court will understand that
putting everyone together in one - or even a few trials - is a
mistake," said Ralph Knowles.



"It doesn't make sense to try to handle this in a common
issue trial, when there are so many different women, with
different health problems and different levels of injury. The
reality and the science are just too complex," said Knowles.



Just last month, the Supreme Court acknowledged the need to
accommodate the divergent interests of different claimants when
it threw out a global settlement for asbestos workers in Anchem
Products v. Windsor.



Instead of a common issue trial in this case, the women with
implants and their lawyers have proposed that a limited number of
randomly chosen cases should go to trial. The results would be
averaged together to reach a representative conclusion. This
approach is known as random sampling.



"We think this is the fairest way to go about dealing
with the hundreds and thousands of claims. It balances the need
to be efficient, with the need to insure justice and due process
for the many women who have a broad range of health problems from
their implants," said Knowles.



The trend of legal decisions over recent years shows that
single issue causation trials to resolve mass tort litigation -
suits involving injuries to many people - are decreasing in
favor. Instead, several courts around the country have endorsed
random sampling in order to account for the diversity of the
claims.



The bankruptcy court has directed Dow Corning to file an
amended bankruptcy plan within twenty-one days from yesterday.



SOURCE Command Trust Network /CONTACT: Linda Ricci or Suzanne
Turner, 202-822-5200 for the Command Trust Network/






Court Issues Opinion That Common Issue Causation Trials Should
Resolve Legal Debate on Breast Implants, Announces Dow
Corning Corporation



BAY CITY, Mich., July 30, 1997 - Judge Arthur J. Spector,
United States Bankruptcy Court, Eastern District of Michigan,
today issued an opinion that common issue causation trials in href="chap11.dow.html">Dow Corning's Chapter 11 case should
resolve the threshold question of whether the scientific evidence
supports claims that breast implants cause disease.



In today's opinion, Judge Spector clearly stated that a
consensual plan agreed to by all parties remains the best way to
resolve Dow Corning's Chapter 11 case. The disputed issue common
to thousands of claims in Dow Corning's case is whether the
evidence sufficiently supports claims that breast implants cause
disease. In his opinion today, Judge Spector said that he will
recommend common issue causation trials if that issue is not
resolved up-front either through a consensual plan or through
rulings on other pending motions now before the court.



"We are delighted with this ruling and opinion,"
commented Gary Anderson, Dow Corning President. "The message
in Judge Spector's decision is clear. A consensual plan is the
best approach to resolving this case. We are committed to
continuing negotiations and hopefully achieving a resolution
acceptable to all parties. We are also committed to compensating
legitimate claims in our case based on implant rupture or
problems caused by our products. But we continue to believe that
sound scientific evidence should be the basis for resolving those
claims. Today's opinion directly supports that goal. If we cannot
settle the central debate in this case through a consensual plan
or through other pending rulings, an up-front causation trial is
a fair way to resolve this question."



Judge Spector's ruling responded to estimation motions filed
in March 1996 by several parties in Dow Corning's Chapter 11
case. Dow Corning's estimation motion called for a
court-appointed panel of scientific experts to assist the
bankruptcy court in estimating claims in its case and suggested
that the panel could be used in a common issue causation trial.
Judge Spector's ruling today denied the estimation motions that
had been filed, but his opinion adopted the procedure of a common
issue causation trial as a means for directly resolving claims
based on their scientific merit. His recommendation also stated
that court-appointed experts should be involved with the
causation trial. Copies of today's ruling can be obtained by
calling Neetz Printing Incorporated, 517-684-4620.



Dow Corning Corporation, a global leader in silicon-based
materials, is a Michigan corporation with shares equally owned by
The Dow Chemical Company (NYSE: DOW) and Corning, Incorporated
(NYSE: GLW). More that half of Dow Corning's sales are outside
the U.S.



SOURCE Dow Corning Corporation /CONTACT: T. Michael Jackson,
517-496-6443, or Kevin Wiggins, 517-496-8835, both of Dow
Corning/






Interline Resources Corp. Announcement



ALPINE, Utah--July 30, 1997--Interline
Resources Corp.
(AMEX:IRC.EC) (the "company")
announced that on July 29, 1997, a petition for involuntary
bankruptcy ("petition") under Chapter 7 of federal
bankruptcy law was filed against the company and its
subsidiaries.



The two companies which filed the petition (the
"petitioners") are currently involved in litigation
with the company on contractual matters unrelated to the
bankruptcy proceeding.



The company intends to vigorously contest the involuntary
bankruptcy proceeding. The company has been informed that the
petitioners will seek the appointment of a trustee to manage the
company. The company will also vigorously contest the appointment
of a trustee.



One of the petitioners, Genesis Petroleum Inc., a subsidiary
of Quaker State Resources, has obtained a judgment against the
company for the company's failure to pay under an agreement in
which the company agreed to purchase Genesis' interests in a used
oil refinery.



The purchase agreement required the company to pay the
purchase price in full at the closing of the sale. The required
cash payment was approximately $2.3 million. When the company
failed to complete the closing, Genesis filed a lawsuit against
the company. The litigation and settlement discussions have been
ongoing during the last 10 months.



Although the judgment has been entered against the company,
the court has not determined the amount of damages which is to be
awarded to Genesis. The court has ordered the company to provide
evidence of the value of the plant so that damages can be
determined by the court.



Despite the entry of the judgment, the company and Genesis had
been negotiating the terms of a modified purchase agreement which
would have called for the purchase price to be paid over a
several year period.



The execution of the modified agreement would have terminated
the litigation. While the company was still in the process of
reviewing the modified purchase agreement and related sales
documents, Genesis joined the other petitioner in the bankruptcy
petition.



Even after the petition was filed, the company and Genesis
have discussed other alternatives of resolving the used oil
refinery matter. Genesis is currently a shareholder of the
company. In the petition, Genesis claims it is owed $2.7 million
by the company.



The other petitioner is Petroleum Systems Inc.
("PSI"). In 1993, the company acquired a license from
PSI for certain used oil refining technology. Subsequently, the
company acquired patent rights for the technology from PSI in
exchange for 1.5 million shares of the company's common stock and
a continuing royalty for sales of petroleum products derived from
processes using the technology.



The company and PSI have been involved in a dispute over
royalties, and the matter has been the subject of an ongoing
arbitration proceeding. PSI claims that it is owed royalties and
that the company has failed to comply with the terms of the
Assignment of Patent Agreement. On July 29, 1997, PSI filed a
lawsuit seeking a termination of the Assignment of Patent
Agreement, demanding the reassignment of the patent rights and
seeking damages.



The use of the technology is a substantial part of the
company's used oil refinery operations, and the loss of the
technology could have a significant adverse effect on the
company. The company disputes PSI's claims and will vigorously
defend the lawsuit.



Subsequent to filing its lawsuit on July 29, 1997, PSI joined
Genesis, also on July 29, 1997, as a petitioner in the
involuntary bankruptcy petition. In the petition, PSI claims that
it is owed $6,000 for a truck that the company
"converted" for its own use from PSI.



The truck was part of other equipment of PSI in the possession
of the company. The company has on at least two occasions
requested that PSI remove the truck and its other property from
the company's premises, but PSI failed to do so.



PSI did not claim in the petition that it was owed any
royalties by the company but only claimed the $6,000 value of the
truck. The lawsuit filed by PSI immediately prior to the
bankruptcy petition made no claim for the $6,000 truck. PSI, and
the individual shareholders of PSI, are shareholders of the
company. PSI previously threatened the company with shareholder
litigation if the company did not acquiesce to PSI's claim for
royalties.



The company will vigorously oppose the involuntary bankruptcy
petition and the PSI litigation.



CONTACT: Interline Resources Corp., Alpine Mark Fredrickson,
801/756-3031






AccuLase Licenses Worldwide Marketing Rights
to its TMR Cardiovascular Technology



ORLANDO, Fla.--July 30, 1997--



AccuLase receives $1.55 million from agreements



Laser Photonics Inc. (OTC BB:LSPT) announced Wednesday that
its majority-owned subsidiary, AccuLase Inc., has entered into a
series of agreements with Baxter Healthcare Corp. These
agreements provide for a grant to Baxter of an exclusive
worldwide license for AccuLase's excimer laser and laser delivery
system for cardiovascular and vascular applications.



AccuLase will receive $1,550,000 from Baxter as part of the
agreements. In addition, AccuLase will supply Baxter with lasers
and receive a royalty on sales of disposable devices. Baxter will
also assume the responsibility for funding and managing the
process of obtaining all needed regulatory approvals as well as
the marketing and sales efforts for the AccuLase excimer laser
system, including the current efforts in transmyocardial
revascularization ("TMR"). AccuLase believes it has
developed a unique system to perform the TMR procedure.



The agreements grant a security interest in AccuLase's assets
to secure its performance, and are conditioned upon subordination
of an existing lien on AccuLase assets held by Helionetics Inc.,
Laser Photonics' principal shareholder. The Helionetics
subordination must be approved by the Bankruptcy Court because
Helionetics is currently subject to the Court's jurisdiction. -0-



Certain of the above statements may be forward looking
statements that involve risks and uncertainties. In such
instances, actual results could differ materially as a result of
a variety of factors, including competitive developments and risk
factors listed from time to time in the company's SEC reports.



CONTACT: Laser Photonics Inc. Chaim Markheim, 619/455-7030 or
ACC Communications LLC Paul Keil or Joseph Edwards, 714/487-1990






Court Approves NOXSO Interim Financing
Plan



BETHEL PARK, Pa., July 30, 1997 - NOXSO Corporation (Nasdaq:
NOXOQ) announced today the United States Bankruptcy Court for the
Eastern District of Tennessee approved NOXSO's debtor-in-
possession (DIP) financing request to borrow up to $600,000. The
approval process included the court's review of the Company's
operating budget. To date, NOXSO has received subscriptions for
$400,000 of the approved amount. The Company will use this loan
to continue pursuing its plan to reorganize and emerge from
Chapter 11.



One key component of NOXSO's reorganization plan is to sell
its sulfur dioxide production facility in Charleston, TN, which
NOXSO built under contract for Olin Corporation (NYSE: OLN).
NOXSO has been working with Olin to provide potential buyers with
site access and plant operating data. The plant is currently
producing sulfur dioxide at the throughput levels required under
NOXSO's contract with Olin. NOXSO has received expressions of
interest from several potential buyers and is currently working
to obtain a definitive sales agreement for the facility.



Another component of NOXSO's reorganization plan is to secure
a new host site for the commercial demonstration of NOXSO's
advanced, no waste SO2/NOX control technology. NOXSO is in the
final stages of negotiating a host site agreement with a major
utility in the Northeast and expects to have this agreement in
place by the end of August.



NOTE: SO2/NOX in the last paragraph, the 2 and X are
subscript.



SOURCE NOXSO Corporation /CONTACT: Rita E. Bolli of NOXSO,
412-854-1200/






Today's Man Files Amended Plan of
Reorganization and Disclosure Statement



MOORESTOWN, N.J., July 30, 1997 - Today's
Man, Inc.
(Nasdaq: TMANQ) announced today that it has filed
with the United States Bankruptcy Court in Delaware an amendment
to its disclosure statement. The Company believes that the
amended plan, which provides creditors with 100% recovery of
allowed claims, ensures an equitable treatment of all of the
Company's stakeholders.



The amended plan proposes to satisfy allowed claims through a
combination of cash and $15 million in equity to certain
creditors. The cash component of the amended plan remains
unchanged:



- $42.5 million from Foothill Capital in the form of a $12.5
million term



note and a $30 million revolving credit facility. -- $10
million cash on hand. -- $16 million in proceeds from an equity
offering to existing shareholders and an investment group led by
Chairman and CEO David Feld.



The Bankruptcy Court has set a hearing date of August 21, 1997
on the amended disclosure statement.



Today's Man, Inc., which currently operates 25 menswear
superstores in the greater Philadelphia, New York and Washington
markets, is a men's apparel superstore retailer offering a wide
selection of tailored clothing, furnishings, sportswear and shoes
at everyday low prices.



SOURCE Today's Man Inc. /CONTACT: Michael Kempner,
mkempnermww.com, or Carreen Winters, cwintersmww.com, both of
MWW/Strategic Communications, Inc., 201- 507-9500, for Today's
Man Inc./