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/raid1/www/Hosts/bankrupt/TCR_Public/971104.MBXT R O U B L E D C O M P A N Y R E P O R T E R Tuesday, November 4, 1997 Vol. 1, No. 51 Headlines ALLIANCE ENTERTAINMENT: Seeks To Extend Exclusivity Period CINCINNATI MICROWAVE: Assets for Sale GUY ATKINSON: Names Bankruptcy Brass KIA MOTORS: Workers Resume Work MIDCON OFFSHORE: USA Opposes Trustee’s Motion PARTY WORLD: Seeks Employee Incentive Programs PARTY WORLD: Seeks To Extend Exclusivity STRAWBERRIES: Hearing to Extend Exclusivity UNITED HEALTHCARE: Court Approves Sale WESTERN PACIFIC: Order For Use of Cash Collateral WESTERN PACIFIC: Auction Set For 2 Boeing Aircrafts Meetings, Conferences and Seminars ---------- ALLIANCE ENTERTAINMENT: Seeks To Extend Exclusivity Period ---------------------------------------------------------- The debtor, Alliance Entertainment Corp. is seeking to extend the exclusive period during which each debtor may file a plan of reorganization from November 12, 1997 through March 31, 1998 and the exclusive period during which each debtor may solicit acceptances of such plan of reorganization from January 12, 1998 through June 1, 1998. A hearing will be held on November 12, 1997. CINCINNATI MICROWAVE: Assets for Sale ---------------------------------------- Several companies are expected to bid for some of Cincinnati Microwave's Surelink I cordless telephone technology at a bankruptcy court hearing next month. A federal bankruptcy judge approved bidding procedures for the sale. A Microwave attorney said it has changed its proposed deal with Disposition Services Group, lowering the price from $285,000 to $242,500. Earlier Wednesday, the company that bought Microwave's Surelink II technology withdrew an objection to the sale. While there is still no licensing agreement between purchasers of the two technologies, the sale should proceed, the attorney said. GUY ATKINSON: Names Bankruptcy Brass ------------------------------------ Guy F. Atkinson Co. of California has named two executives to guide the construction and engineering company through Bankruptcy Court. John F. Whitsett, 57, was elected chairman and chief executive and Stephen R. Grant, 57, was elected vice chairman. Together with Jack J. Agresti, 60, Atkinson president since 1991, they will form the newly created Office of the Chairman. Atkinson filed for protection under Chapter 11 of the U.S. Bankruptcy Code in August after it was unable to secure new lines of credit to replace those that had expired June 30. KIA MOTORS: Workers Resume Work --------------------------------- Thousands of workers at South Korea's second-largest carmaker resumed work today, ending a 13-day strike over the government's decision to put their company under court receivership. Some 15,000 workers of Kia Motors Corp. went on strike on Oct. 21, demanding that the government retract the decision. They claimed that court receivership was an attempt to sell their company to a third party. The government denied the claim and promised that it will turn Kia into a state firm and take over its management. "We resumed work because the government promised to nationalize Kia, rather than sell it to a third party," Choi Ji-byong, a union leader, said. "The government also promised financial support for the company. If the government breaks the promise, we'll start a strike again," he said. There have been widespread reports that Samsung, the nation's largest conglomerate, which has just branched out into automaking, is interested in taking over Kia. Kia's problems began in July when it defaulted on bills. The car maker, which produced 780,000 cars last year, owes more than $10 billion to banks and others. MIDCON OFFSHORE: USA Opposes Trustee’s Motion --------------------------------------------- The United States of America, on behalf of the U.S. Department of the Interior, Minerals Management Service filed its Opposition to the Trustee’s Motion to Sell Substantially All of the Debtor’s Assets. The United States specifically opposes the calculation of the amounts required to cure Midcon’s defaults on its Federal Outer Continental shelf leases. The United States argues that the Trustee must cure in full Midcon’s existing default or provide adequate assurance of prompt cure in order to assume, assign, and sell its lease interests. PARTY WORLD: Seeks Employee Incentive Programs ---------------------------------------------- On November 18, 1997, Party World, Inc. and Party America Inc., will seek an order authorizing implementation of a senior management incentive program and an employee incentive retention program. The debtor claims that the Incentive Programs will increase the debtor’s ability to retain its senior management and other key employees by authorizing the debtor to provide such employees with some measure of financial protection. The debtor would be authorized to use up to $100,000 of estate funds to pay retention bonuses to certain key employees if they do not resign earlier than June 30, 1998. In addition, certain members of senior management would receive severance compensation, (four months’ salary) and certain shareholders have agreed to relinquish ten percent of any consideration they receive in this case to specified members of debtor’s management under certain terms and conditions. The Chief Executive Officer, Martin Allen and the Vice President of Merchandising, Alice Tang would each receive one year’s salary, in severance pay, subject to the conditions of the Severance Benefits. The debtor claims that it has already lost several key employees and that the morale and productivity of the debtor’s employees have been adversely affected. PARTY WORLD: Seeks To Extend Exclusivity ---------------------------------------- The debtors, Party World, Inc. and Party America, Inc. seek a Court order extending the plan exclusivity periods through and including February 28,1998 and April 29,1998. Plan exclusivity for filing a plan currently expires on November 4, 1997 and exclusivity to solicit and obtain votes expires on January 3, 1998. The debtors claim that good cause exists for such extension since the debtors have made substantial progress towards stabilizing operations thereby enabling them to begin focusing their attention on preparing a business plan and exit strategy for these cases. The debtors claim that any reorganization plan will depend on the debtors’ performance during the fourth quarter which has historically been the debtors’ most profitable quarter. STRAWBERRIES: Hearing to Extend Exclusivity ------------------------------------------- The debtors, Strawberries Inc., and Strawberries Holding, Inc., have filed a third motion for an order extending the debtors’ exclusive periods in which to file a plan or plans of reorganization and solicit acceptances thereof. The debtors claim that they have cause for the extension due to the fact that since the entry of the Sale Order, on September 30, 1997, the debtors and their professionals have been required to focus their energies upon completing the myriad tasks necessary to consummate the purchase agreement. Further, the debtors claim that they are not yet in a position to file a liquidating plan of reorganization since less than three weeks have elapsed since the Purchase Agreement was closed. The debtors seek to extend the exclusive filing period to and including February 10,1998 and the exclusive solicitation period to and including April 10, 1998. A hearing on the motion will be held on November 13, 1997. UNITED HEALTHCARE: Court Approves Sale --------------------------------------- On October 28, 1997, the United States Bankruptcy Court, District of New Jersey, approved the sale of certain assets from United Healthcare System, Inc. debtor to Saint Barnabas Corporation d/b/a Saint Barnabas Health Care System. WESTERN PACIFIC: Order For Use of Cash Collateral ------------------------------------------------- The Court entered an Order in the Western Pacific Airlines, Inc. Chapter 11 case, stating that Western Pacific and the City and County of Denver shall determine the amount of Passenger Facility Charges collected by Western Pacific and required to be paid to Denver for the months of August and September, 1997. The PFC Amount shall be paid in four equal installments during October and November, 1997. WESTERN PACIFIC: Auction Set For 2 Boeing Aircrafts --------------------------------------------------- Western Pacific Airlines, Inc. is seeking an order of the court authorizing Western Pacific to assume and assign the purchase agreement relating to two new Boeing 737-300 aircraft under contract with the Boeing Company, one for delivery in December 1997 and one for delivery in November 1998. Bidding will be at open outcry auction commencing on November 10, 1997 in the United States Bankruptcy Court for the District of Colorado. Meetings, Conferences and Seminars ---------------------------------- November 13-14, 1997 MID-SOUTH COMMERCIAL LAW INSTITUTE "The Changing Landscape for the Commercial Law Practitioner" Hermitage Hotel, Nashville, Tennessee Contact 1-615-259-1450 November 17-18, 1997 BANKING LAW INSTITUTE, BANK LENDING INSTITUTE, and EXECUTIVE ENTERPRISES Commercial Loan Workouts Chicago, Illinois Contact 1-800-831-8333 November 19, 1997 NASSAU COUNTY BAR ASSOCIATION and SUFFOLK COUNTY BAR ASSOCIATION, jointly with SUFFOLK ACADEMY OF LAW 1997 Annual Bankruptcy Law Update Suffolk County Bar Center, Hauppauge, New York Contact 1-516-747-4464 November 21-24, 1997 COMMERCIAL LAW LEAGUE OF AMERICA 77th Eastern District Meeting New York Marriott World Trade Center, New York December 3-4, 1997 STRATEGIC RESEARCH INSTITUTE 4th Annual Conference on Distressed Debt Crowne Plaza Hotel, New York, New York Contact 1-800-599-4950 December 4-6, 1997 AMERICAN BANKRUPTCY INSTITUTE Winter leadership Conference La Costa Resort & Spa, Carlsbad, California Contact 1-703-739-1060 December 5-6, 1997 STETSON UNIVERSITY COLLEGE OF LAW 22nd Annual Bankruptcy Seminar DoubleTree Surfside Resort Hotel, Clearwater Beach, Florida Contact 1-813-562-7830 DECEMBER 10-11, 1997 INSTITUTE FOR INVESTMENT RESEARCH Investment Opportunities in Workouts & Turnarounds Downtown Conference Center, New York, New York Contact 1-212-661-3500 December 11-13, 1997 AMERICAN LAW INSTITUTE--AMERICAN BAR ASSOCIATION 9th Annual Advanced Court of Study, The Emerged and Emerging New Uniform Commerical Code Sheraton New York Hotel, New York, New York Contact 1-800-CLE-NEWS, ext. 1630 December 15-16, 1997 PRACTISING LAW INSTITUTE Basics of Bankruptcy and Reorganization PLI Conference Center, New York, New York Contact 1-800-260-4PLI or http://www.pli.edu January 29-February 1, 1998 COMMERCIAL LAW LEAGUE OF AMERICA 37th Southern District Annual Meeting Plaza San Antonio, San Antonio, Texas Contact 1-972-285-0391 February 22-25, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW 12th Annual Norton Bankruptcy Litigation Institute I Olympia Park Hotel, Park City, Utah Contact 1-770-535-7722 March 26-29, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW 10th Annual Norton Bankruptcy Litigation Institute II Flamingo Hilton, Las Vegas, Nevada Contact 1-770-535-7722 May 22-25, 1998 COMMERICAL LAW LEAGUE OF AMERICA 50th New England District Annual Meeting Ocean Edge Resort & Golf Club, Cape Cod, Massachusetts Contact 1-617-720-1355 July 2-5, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact 1-770-535-7722 The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. --------- A listing of meetings, conferences and seminars appears every Tuesday. Bond pricing, appearing each Friday, is supplied by DLS Capital Partners, Dallas, Texas. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Princeton, NJ, and Beard Group, Inc., Washington DC. Debra Brennan and Rebecca A. Porter, Editors. Copyright 1997. All rights reserved. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re- mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *