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/raid1/www/Hosts/bankrupt/TCR_Public/980202.MBX T R O U B L E D C O M P A N Y R E P O R T E R Monday, February 2, 1998, Vol. 2, No. 22 Headlines BIG RIVERS ELECTRIC: Responds to Arbitration Motion CHERRY COMM. INC.: Gains Approval for Switches CINCINNATI MICROWAVE: Order Confirms Liquidation Plan EATON'S STORES: Closes Three Locations across Canada ERD WASTE: Applies for Continued Use of Cash Collateral FLEXEL: Court Approval for Settlement with PBGC L.A. GEAR: Worthless Stocks Attractive to Investors MAIN ST. BREWING: Nears End of Bankruptcy MARVEL ENTERTAINMENT: Trustee Loses Bid to Employ Counsel MOUNTAIN AIR: Keeps Four Planes NAMCO CYBERTAINMENT: Files for Chapter 11 Protection NEWMONT MINING: Tumbling Gold Prices Lead to Layoffs PETRIE RETAIL INC.: Receives Go-ahead to Amend DIP Pact RICKEL HOME CENTERS: More Time to Decide on Leases SA TELECOMMUNICATIONS: Management Agreement in the Works SA TELECOMMUNICATIONS: WorldCom Wants Trustee Appointed SOUTHEAST BANKING: Creditors to Get $150 Million Settlement TAL WIRELESS: Files 8-K Disclosure US ONE COMMUNICATIONS: Taps Special Regulatory Counsel WESTERN FIDELITY FUNDING: Order Modifying Bar Date WESTMORELAND COAL: Retirees Want Statutory Premiums Paid ******* BIG RIVERS ELECTRIC: Responds to Arbitration Motion ---------------------------------------------------- In the bankruptcy proceeding of Big Rivers Electric Corporation, debtor, PacifiCorp Power Marketing, Inc. (PPM) filed a proof of claim based upon a Power Marketing Agreement, which claim was allowed by the Bankruptcy Court on January 12, 1998. The Power Marketing Agreement contained an arbitration clause. PPM also filed two amendments to the original allowed proof of claim, which amendments totaled $1,881,243. PPM moved the court to refer the amended claims to arbitration. Big Rivers is objecting to the amendments on a timeliness issue, and the debtor argues that if the court finds that the amendments were not filed in a timely manner, then there will be no issue for arbitration. Big Rivers argues that the court must refuse to enforce the arbitration clause if there exists an inherent conflict between arbitration and the bankruptcy code. Big Rivers claims that the inherent conflict is an actual conflict and exists regarding the core proceeding of the disallowance or allowance of a claim against the estate. Big Rivers makes the distinction between this being a core proceeding, and that prior case law would not apply wherein the inherent conflict involved a core proceeding. CHERRY COMM. INC.: Gains Approval for Switches ---------------------------------------------- Federal Filings reports on January 29, 1998, that Cherry Communications has received court approval to purchase two refurbished Northern Telecom switches from World Access Inc. for about $10.2 million. The telecommunications wholesaler said the switches, to be placed in Los Angeles and Dallas, are necessary to increase long distance telephone capacity for customers, long distance phone companies, over Cherry's worldwide network of switches and lines. CINCINNATI MICROWAVE: Order Confirms Liquidation Plan ----------------------------------------------------- On January 13, 1998 an order confirming the plan of liquidation for Cincinnati Microwave, Inc. was entered by the United States Bankruptcy Court for the Southern District of Ohio, Western Division. The plan calls for the liquidation of all of the assets of the Debtor and the distribution of the proceeds from such liquidation to creditors and interest-holders in accordance with the distributive provisions of the Bankruptcy Code. As stated in a Form 8-K filed with the SEC on January 13, in order to effectuate the plan, a liquidating trustee will be appointed, whose primary responsibility is to assemble and, to the extent necessary, liquidate the Distributable Assets. Under the plan, as confirmed, all shares of the registrant will be cancelled as of the Effective Date (as defined in the plan) and the plan does not provide for the reservation or future reservation of any such shares or the issuance of any new shares. The Plan provides for the payment of Administrative Expense Claims and divides Claims and Interests that are subject to classification into seven Classes and sets forth the treatment afforded to each Class under the Plan as follows: Class Type of Claim Treatment ----- ------------- --------- 1 Secured Claim of Unimpaired -- paid in full, Foothill Capital in cash, on the Effective Coporation Date, from the proceeds of the sale of the property securing the Foothill Secured Claim. 2 Secured Claim of Unimpaired -- If not First Data Merchant previously terminated, on the Services Corp. Effective Date the Sales Agreement between the Debtor and First Data will be terminated. At the option of the Debtor, either (i) on the Effective Date, the holder of the First Data Secured Claim will be paid the amount of the First Data Secured Claim, as Allowed, in full, in cash; or (ii) on the Effective Date, the holder of the First Data Secured Claim will be permitted to set off the Allowed amount of the First Data Secured Claim against the reserve. 3 Priority Unsecured Unimpaired -- On the Claims Effective Date, the holders of Class 3 Claims that are allowed will receive cash. Each holder of a Class 3 Disputed Claim will receive cash. 4 Other Unsecured Impaired -- will receive its Claims Pro Rata share of the Net Distributable Assets that remain. 5 Unsecured Claims Impaired -- Each holder of a for any damages, Class 5 Claim that is an fines, or penalties Allowed Claim as of the Effective Date will receive its Pro Rata share of the Net Distributable Assets. 6 Claims of Class Impaired -- Class 6 Claims Action Claimants are subordinated to all Claims in Classes 1 through 5 and will have the same priority as Class 7 Interests. The holders of Allowed Class 6 Claims will receive on account of such Claims that portion of the Net Distributable Assets. 7 Equity Interest Impaired -- All Interests in Holders the Debtor will be canceled. The holders of Allowed Class 7 Interests will receive on account of such Interests any Net Distributable Assets which remain available after payment in full of Allowed Claims in Class 5 and will be shared Pro Rata with the holders of Allowed Class 6 Claims. EATON'S STORES: Closes Three Locations across Canada ---------------------------------------------------- The Associated Press reports Eaton's is closing three more stores across the country and making other cuts affecting 1,200 jobs as it struggles to return to profitability after emerging from bankruptcy protection last fall. The Toronto- based retailer announced Thursday it will shut down stores in Charlottetown, Huntsville, Ontario, and Vernon, British Columbia, by May 1. It will also cut the number of non- selling positions in its stores as well as support and management staff at head office. ERD WASTE: Applies for Continued Use of Cash Collateral ------------------------------------------------------- ERD Waste Corp., et al, debtors, are seeking the entry of an order authorizing the debtors' continued use of cash collateral and financing. The debtors' authorization to use cash collateral expires on January 31, 1998. The debtors have not been able to pay down the post-petition advance balance as required by the terms of the DIP facility primarily because collections have fallen substantially below the projected levels. The current post-petition advance balance remains at $915,000. The debtors state that they have an ongoing need for immediate funds in order to continue their operations. The debtors have no ability to pay current operating expenses including payroll without the ability to use Chase's cash collateral after January 31, 1998. The debtors ask that their authorization to use cash collateral be extended through February 14, 1998. Without this authorization, the debtors state that they will have no choice but to immediately discontinue operations and to liquidate their assets. A hearing will be held on February 2, 1998. FLEXEL: Court Approval for Settlement with PBGC ----------------------------------------------- Flexel,Inc. a/k/a Flexel Sales, Inc., debtor, received court approval of a settlement of the claims against the debtor of the Pension Benefit Guaranty Corporation. Prior to filing a petition in bankruptcy, the debtor established two defined benefit pension plans for the benefit of its employees. The two plans were involuntarily terminated, and the PBGC filed administrative and priority proofs of claim relating to the underfunded status of both pension plans. With respect to one plan the PBGC filed an administrative expense priority tax claim in the amount of $9,798,500 and a claim for minimum funding contributions allegedly due and owing in the amount of $192,204 with $166,125 asserted as an administrative expense priority claims. With respect to the other pension plan, the PBGC filed an administrative expense priority tax claim for all unfunded benefit liabilities in the amount of $1,711,500 and a claim for minimum funding contributions allegedly due and owing in the amount of $251,993 with $163,257 asserted as an administrative expense priority claim. The settlement agreed to by the parties, and approved by the bankruptcy court provides that the PBGC will have an allowed unsecured claim against the debtor of $11.5 million. The PBGC will be paid a pro rata share of $300,000 plus interest being held in escrow by on of the debtor's subsidiaries until all unsecured creditors including PBGC have received 10% on the principal amount of their claim. The PBGC shall receive a pro rata distribution with all other unsecured creditors calculated as if the PBGC claim was limited to $8 million, and after all unsecured creditors have received a distribution of 10% (as if the PBGC claim were $8 million), the PBGC shall receive a pro rata distribution with all other unsecured creditors calculated by a formula based on the full PBGC claim amount. L.A. GEAR: Worthless Stocks Attractive to Investors --------------------------------------------------- The Chicago Sun-Times reports on January 29, 1998, that investors are purchasing the common stock of bankrupt L.A. Gear Inc. at 15 cents a share. The new common stock that L.A. Gear would issue if the court approves the reorganization plan would go to current owners of the Santa Monica, Calif.-based company's preferred stock. "Your guess is as good as ours" why anyone would be buying the existing common stock now, an L.A. Gear spokesman said. On Wednesday, volume was listed as 182,400 shares traded on the Nasdaq Bulletin Board, an unregulated electronic marketplace. On Jan. 14, a total of 1.27 million shares changed hands. The closing price that day: 10 cents a share. The Sun-Times says it's tough to imagine that small investors - the principal players on the Nasdaq Bulletin Board - would have a good sense of the court's probable decision. There are, however, three East Coast brokerages trading the stock on the bulletin board, thus facilitating individual investors' purchases and sales. MAIN ST. BREWING: Nears End of Bankruptcy ----------------------------------------- The Worcester Telegram & Gazette reported on 01/28/98 that a year and a half after financial collapse, and with its successor, The Irish Times Pub, securely ensconced in its place, the final chapter of the Main Street Brewing Co. Inc. debacle is being written at U.S. Bankruptcy Court. Lawyers for the defunct Main Street Brewing have filed an updated reorganization plan that, if confirmed by U.S. Bankruptcy Court, will see Main Street Brewing re-emerge as The Irish Times Pub, the reorganized debtor. While operating as a pub, the Irish Times Pub is not yet brewing beer because federal approval is still pending. The reorganization plan was filed Monday by Marba Corp., the company that owns the real estate. The company is controlled by a group of Irish investors headed by Aiden J. Hughes of Boston. The Hughes group stepped in last year to take over the interests of the bankrupt Main Street Brewing. Separately, a reorganization plan also was filed for Marba. The Main Street Brewing reorganization plan identifies 14 classes of claims, many of them covering lease companies. There's also a class for the unsecured creditors and one class covering bank loans. Of the $700,000 they are owed, unsecured creditors will be asked to write off 50 percent as bad debt. For the other 50 percent, they will get a combination of money and coupons that can be redeemed for food or beer at the pub, according to David M. Nickless, a Fitchburg lawyer who prepared the reorganization plan. The $1.1 million in bank loans - upped to $1.2 million after U.S. Bankruptcy Court Judge James F. Queenan determined the real estate's value should be at a higher figure - will be paid in full. The note had been held by BankBoston, but was acquired by Moon Penny LLC of Cohasset, a rival group that tried to take over the bankrupt Main Street Brewing before the Aiden Hughes group beat it to the punch. As part of the reorganization plan, an immediate payment of $100,000 will be made on the mortgage note through the Main Street Brewing reorganization plan and another $100,000 through the Marba reorganization plan with the remainder to be paid over a period of years. Existing loan guarantees by the city of Worcester for $430,000 and the U.S. Small Business Administration for $420,000 will remain in force. Payments also have to be made for $250,000 owed in federal and state taxes. A confirmation hearing is scheduled for 11:30 a.m. April 13 at U.S. Bankruptcy Court. MARVEL ENTERTAINMENT: Trustee Loses Bid to Employ Counsel --------------------------------------------------------- Federal Filings reports on January 29, 1998, that the Chapter 11 Trustee of Marvel Entertainment Group Inc. lost a bid to employ his firm as counsel due to the law firm's representation of Marvel lender The Chase Manhattan Bank in unrelated matters. The firm, Gibbons Del Deo Dolan Griffinger & Vecchione, argued that Marvel's case is not related to any matter in which the firm represented Chase. Even though the lender waived all potential conflicts, the court determined that "Gibbons Del Deo's representation of Chase taints the image of objectivity that the trustee and his counsel should possess." MOUNTAIN AIR: Keeps Four Planes ------------------------------- The Rocky Mountain News reports on January 6, 1998, that Mountain Air Express will keep its four planes after making more than $720,000 in back rent payments, said Susan Martineau, attorney for lessor Dornier Aviation North America. Monday was the deadline for the Denver-hubbed commuter airline to bring leases current or risk repossession of the fleet. MAX, reorganizing under Chapter 11 bankruptcy, must surrender a fifth aircraft Thursday after Bankruptcy Court Judge Sidney Brooks ordered the Dornier 328 prop plane returned. NAMCO CYBERTAINMENT: Files for Chapter 11 Protection ---------------------------------------------------- On January 29, 1998, Namco Cybertainment Inc. filed a voluntary petition in Chapter 11. The company is an operator of family amusement centers located principally in enclosed shopping malls. The company also operates games on a revenue sharing basis in theaters, malls and casinos. The law firm of Mayer, Brown & Platt of Chicgo, Illinois is employed under a general retainer as attorneys for the company. The twenty largest unsecured creditors of the debtor are as follows: Vendor Amount Atlantic Mutual $302,000 Pyramid Company of Holyok. $77,449 Pyramid Crossgates Co. $63,955 Senpike Mall Company $51,145 SunValley Associates $47,571 Pyramid Co. of Buffalo $46,390 Crystal Run Company LP $43,103 Forest City Management $42,980 Sunrise Mall Ltd. Partners $41,391 Yuba Plaza Associates Ltd $40,456 Stratford Square Ltd Prts $40,210 CPI Church Street $40,000 Carson Madrona Co $39,990 Rolling Acres Mall $39,902 Rouse Mgmt Serv. Corp. of Colorado Inc/The Citadel $39,033 JMB Property Management $38,218 Carousel Center Co. LP $36,569 Equitable-Rosedale Center $36,435 Poughkeepsie Galleria Co $35,931 Gator Forest Partners Ltd $34,704 NEWMONT MINING: Tumbling Gold Prices Lead to Layoffs ---------------------------------------------------- The Las Vegas Review-Journal reported on January 29, 1998 that Newmont Mining Co., North America's largest gold producer, laid off 11 percent of its U.S. work force Wednesday, citing flagging gold prices. The layoffs, affecting nearly 500 workers in California, Nevada and Denver, took effect immediately, said Newmont spokesman Doug Hock. They are part of an overall plan to cut spending by $250 million this year. "Part of it does flow from the merger and the synergies we've obtained," Hock said. "We had an excellent year in '97. In order to sustain our success, given the low gold price, it was necessary to make some cost reductions." The announcement came as Newmont, which owns 94 percent of Newmont Gold Co., reported an 80 percent increase in fourth-quarter net income. In the past several months, several mining companies have taken cost-cutting measures in wake of gold prices that began to plummet last year because of uncertainty over gold supplies held by world governments. Gold hovered around $300 an ounce Wednesday, down from a high of more than $400 an ounce a year ago. "Very simply, they're in a survival mode," said mining industry analyst Catherine Gignac of Deacon Capital Corp. "It's considered to be prudent on the part of the mining companies that they are not wasting their cash. "Newmont actually is in very good shape compared to its peers." Hock said Newmont laid off 300 workers in Nevada, 125 at its Imperial County, Calif., mine and 50 employees at its Denver headquarters. "We need to be pro-active, given the outlook for gold right now," Hock said. "It is your hope that it would bounce back and we would be able to expand what we're doing." In a statement, Newmont said its cost-reduction plan also includes eliminating $175 million in capital and exploration expenditures and $15 million in administrative expenses. The Denver-based mining giant also reported fourth-quarter net income of $38.6 million, or 25 cents a share, up 80 percent from the 1996 fourth-quarter income of $21.5 million, 14 cents a share. Revenues totaled $412.2 million, up from $305.5 million in the fourth quarter of 1996. For the year, Newmont Mining had net income of $68.3 million, or 44 cents a share, on revenues of $1.57 billion, compared with net income of $98.6 million, or 63 cents a share, on revenues of $1.1 billion in 1996. For the year, Newmont reported a pre-tax charge of $21.8 million stemming from severance costs and other expenses. In 1997, Newmont Mining merged with Santa Fe Pacific Gold to become North America's biggest gold producer. In January, three mining companies announced cost-cutting measures blamed on lackluster gold prices. Homestake Mining Co. of San Francisco announced plans to close its 121-year- old underground gold mine in Lead, S.D., laying off most of its 850 workers. Echo Bay Mines of Denver said it would lay off 650 employees, close a gold mine in Canada and reduce operations at another. Pegasus Gold Inc. of Spokane, Wash., which operates mines in Nevada and Montana, filed for Chapter 11 bankruptcy protection Jan. 16. PETRIE RETAIL INC.: Receives Go-ahead to Amend DIP Pact ------------------------------------------------------- Federal Filings reports on January 29, 1998, that Petrie Retail received approval to amend its $103 million debtor- in-possession financing agreement with The Chase Manhattan Bank and junior participation agreement with Warburg Pincus Ventures L.P. pursuant to a reorganization plan term sheet. With the ailing retailer suffering from liquidity problems under the DIP agreement and facing an imminent default, Petrie, Warburg, and the creditors' committee formulated the term sheet calling for the sale of Petrie's G & G Shops Inc. unit as well as modifications to the DIP agreement. RICKEL HOME CENTERS: More Time to Decide on Leases -------------------------------------------------- Rickel Home Centers, Inc., debtor is seeking an extension of time within which to assume or reject certain unexpired leases of nonresidential real property. The debtor is requesting an extension of an additional 120 days, until June 3, 1998. The debtor is currently a party to 53 leases, including the debtor's headquarters lease and a distribution center lease. The debtor has previously assumed 10 leases. The debtor received a stalking horse bid, from Rickel Ralty,LLC for the leases, the debtor's principal asset of value. Two high bidders for the debtors' leases, in addition to the staliking horse bid, are being negotiated with Staples, Inc. and Starwood Ceruzzi. The two bidders each offered in excess of $35 million. However, to date the debtor has been unable to present either transaction to the court as a completely negotiated deal. The debtor is therefore not now in a position to assume or reject the remaining leases until it has finalized its agreement with one of the purchasers, or until it accepts the stalking horse bid. The court imposed February 3, 1998 as the deadline for the finalization of any such purchase. The debtor claims that the requested extension is critical to the creditors. Even with the agreement on a purchaser, there remain leases which the potential purchasers do not know whether to assume or reject. The debtor states that these leases, falling into a "gray area" must still be evaluated by the potential purchasers, and the 120 day extension is necessary for the determination with respect to those leases. SA TELECOMMUNICATIONS: Management Agreement in the Works -------------------------------------------------------- SA Telecommunications, Inc. and certain of its subsidiaries seek approval of the execution by debtors of a certain management agreement between the debtors, EqualNet Corporation (the "Buyer") and EqualNet Holding Corp. By the terms of the managing agreement the Buyer, in order to facilitate the transfer of certain assets would act as an agent of the debtors in connection with certain contracts relating to the debtors' network facilities. For various technical and operating reasons, the EqualNet Parties and the debtor anticipate that the Buyer will be unable to transfer the Subscribers from the debtors' Network Facilities to its own network of switching and transmission facilities by the closing date of the purchase agreement. In order to facilitate the transfer, the debtor and the EqualNet Parties have agreed to enter into this management agreement whereby from the Closing Date to the conclusion of the Transfer Period, the debtor will continue to perform under the Specified Network Contracts and the Buyer will provide management services to the debtors. To the extent the assets are sold to another entity as a result of the auction process, the debtors anticipate entering into a similar agreement with such purchaser. The auction is currently scheduled for February 6, 1998 and the court's decision regarding the sale of the assets either to the Buyer or to another highest bidder at the auction is currently scheduled for February 9, 1998. SA TELECOMMUNICATIONS: WorldCom Wants Trustee Appointed ------------------------------------------------------- In the case of SA Telecoomunications, Inc., Addtel Communications, Inc., Long Distance Network, Inc., North American Telecommunication Corporation, Uniquest Communications, Inc., US Communications, Inc. and Southwestern Long Distance Network, Inc.,WorldCom, Inc. f/k/a LDDS Communications Inc. and WorldCom Network Services, Inc., f/k/a WilTel, Inc. filed an expeditied motion for an order appointing a Chapter 11 Trustee for Addtel Communications, Inc. and disqualifying White & Case LLP from representing Addtel's Estate. A hearing on the motion will be held on February 6, 1998. WorldCom claims that the debtors are "woefully insolvent." All of the debtors' assets are insufficient to pay all of their creditors' claims in full. The WorldCom Entities state that they constitute approximately ninety five percent of the unsecured creditors of Addtel. Thus the Addtel bankruptcy case is substantially the WorldCom Entities' money at issue. WorldCom states that cause exists for the court to appoint a Trustee because there are actual conflicts between the interests of Adddtel's estate and the interest of the other debtors' estates. WorldCom states that it has no confidence in Addtel's stewardship. In addition WrorldCom argues that White & Case should be disqualified from representing Addtel because of the conflicts of interest between Addtel and the other debtors. WorldCom states that conflicts arise where each debtor will seek to limit the other debtors' recovery of sale proceeds while increasing the other debtors' share of the expenses. For WorldCom, the significant potential conflicts between the debtors' estates are likely to become actual. WorldCom does not want the Addtel estate jointly administered with the other debtors' estates in the case. SOUTHEAST BANKING: Creditors to Get $150 Million Settlement ----------------------------------------------------------- Florida Today reported on 01/29/98 that a federal bankruptcy court has approved a settlement with the Federal Deposit Insurance Corp. that is expected to yield more than $150 million to creditors and bondholders of defunct Southeast Banking Corp. "This settlement proves what I have been saying all along - that we would recover enough money to pay all creditors in full," said William A. Brandt Jr., the bankruptcy trustee, who helped negotiate the settlement. "I see no reason why we can't pay out $100 million or more to creditors over the next few months." Under the settlement, Brandt will elect a successor to the FDIC to take control of about $125 million in cash in the receivership created by the federal seizure of the bank. In addition, the FDIC will relinquish its claim to an $18 million tax refund and a $5 million to $10 million surplus in the Southeast Pension Plan. It will also free up more than $25 million in other cash previously received from the FDIC and placed in a reserve account. The settlement had previously been approved by the FDIC's Board of Directors and brings an end to more than six years of claims and litigation from the seizure of the bank in 1991. The trustee had earlier recovered $162 million, which has been distributed to creditors and bondholders in the bankruptcy claim. Hilarie Bass, who headed the trustee's trial team, said the key issue in the litigation was the payment of interest owed on the alleged $7.6 billion claim filed against Southeast Bank receivership by the FDIC. "It was only after the District Court set a firm and inflexible trial date last August that we were able to persuade the FDIC to relinquish its claim to almost $84 million in additional interest, and return to us all the remaining cash and other assets in the receivership," Bass said. TAL WIRELESS: Files 8-K Disclosure ---------------------------------- For the month ending December 31, 1997, TAL Wireless Networks Inc. reports a loss of $78,000 on revenues of $4,000. TAL says that it plans to liquidate assets and review the claims of its various creditors. The company asserts that it is unclear at this time whether there will be any funds available for distribution to shareholders. Once this information has been determined, the company may file a Plan of Reorganization with the Bankruptcy Court. US ONE COMMUNICATIONS: Taps Special Regulatory Counsel ------------------------------------------------------ US ONE COMMUNICATIONS CORP., et al, filed an application for an order authorizing the employment of Swidler & Berlin Chartered as special regulatory counsel for the debtors. In October of 1997 the court approved the emergency sale of the debtors to WinStar Switch Acquisition Corp. The sale realized a purchase price of $100 million, with $80 million payable upon closing in cash, less amounts held in an escrow. Following the sale, the debtors continue to lease space for Switch Sites in five cities, office space in Dallas and also rent collection sites in various locations. The debtors continue to manage their remaining assets. The debtors request that the court approve the employment of Swidler as special counsel to perform certain regulatory legal work during the remainder of these cases. The debtors say that the firm is needed specifically for various regulatory certifications relating to the debtors' former telecommunications network that were to be transferred to WinStar or its designee. Swidler will charge its customary hourly rates for services rendered. WESTERN FIDELITY FUNDING: Order Modifying Bar Date -------------------------------------------------- Judge Roland J. Brumbaugh entered an order granting the debtor's motion requesting that the bar date be modified for those creditors who did not previously receive notice of the bar date. The bar date for filing proofs of claim in the case of Western Fidelity Funding, Inc. is February 20, 1998. WESTMORELAND COAL: Retirees Want Statutory Premiums Paid -------------------------------------------------------- This case is characterized by the Trustees of UMWA Combined Benefit fund as a struggle by Westmoreland's current shareholders to obtain a windfall at the expense of the retirees. The retirees claim that if Westmoreland does not pay its premiums in full, health benefits for retirees and their dependents will be cut. "Bankruptcy law does not require this draconian result," claim the retirees. They allege that Westmoreland has a scheme for evading future Coal Act obligations by arguing that they are pre- petition. The retirees argue that the premiums are post- petition obligations, and are entitled to administrative priority either as non-tax legal obligations, as taxes, or as retiree benefits under section 1114 of the Bankruptcy Code. They buttress their argument with both Constitutional and Federal Statute support, seeking an order for the ongoing payment of the premiums. BOND PRICING: DLS CAPITAL Reports Major Change ------------------------------------------------ A major change in pricing from Friday morning's report: Bruno's 10 1/2 '05 currently 34 - 37 ------ 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 Lexy Mueller, Editors. Copyright 1998. 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. 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