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/raid1/www/Hosts/bankrupt/TCR_Public/980522.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, May 22, 1998, Vol. 2, No. 102 Headlines 2CONNECT EXPRESS: Significant Developments in Case ABL: Women's Basketball Seeks $30 Million Investment AL TECH: Committee to Retain Special Environmental Counsel ALLIANCE ENTERTAINMENT: Files Disclosure Statement and Plan BIGGER.NET: Is Bigger.Net Better? BUILDERS TRANSPORT: Files For Reorganization CAMBEX CORP: Notification of Late Filing COLUMBIA/HCA HEALTHCARE: To Sell 22 Hospitals CONSOLIDATED STAINLESS: Seeks Time to Assume/Reject Leases DONG AH GROUP: One of First Big Rescue Packages HUNGARIAN BROADCASTING: Company Update JAY JACOBS: Starts Its Own Credit Card KTN: Placed Under Receivership LOT$OFF: Able to Reduce Debt on Judge's Ruling MONTGOMERY WARD: Trims Loss in First Quarter NISSAN: Broken-down Nissan Seeks Foreign Partner PAN AM: To Retain Banmiller as Consultant SCHWEITZER MOUNTAIN: Developer Files for Bankruptcy SEARCH FINANCIAL: Court Approves Andrews & Kurth SEARCH FINANCIAL: US Trustee Seeks To Keep Equity Committee STEINBERG'S: Notice of Extended Bar Date WESTERN FIDELITY: Debtor Terminates Counsel's Employment DLS CAPITAL PARTNERS: Bond Pricing for Week of May 18, 1998 ********* 2CONNECT EXPRESS: Significant Developments in Case -------------------------------------------------- 2CONNECT EXPRESS, INC. filed a Form 8-K with the SEC. A full-text copy of the filing is available via the Internet at: http://www.sec.gov/Archives/edgar/data/[filename].txt The company listed significant developments occurring between April 5, 1998 and May 2, 1998. 1. The Company closed three additional stores, leaving one remaining store open as of May 2, 1998. 2. Held two court approved auctions liquidating all remaining inventory of the Company with the exception of inventory in the one open store. 3. Moved the Corporate Headquarters office to the following address reducing monthly rent expense by approximately $5,000: 2Connect Express, Inc. 3500 Gateway Drive, Suite 101 Pompano Beach, FL 33069 4.On April 14, 1998, the Company filed a Plan of Reorganization and Disclosure Statement with the Bankruptcy court. 5.Reduced workforce to skeleton levels. 6.Continued negotiations for the sale of remaining assets, merger agreement with Bobby Allison Cellular Systems of Florida, Inc. ("BAC"), and a Management Agreement with BAC whereby that Company would assume management of the 2Connect Coral Square Mall Store and all expenses related thereto. ABL: Women's Basketball Seeks $30 Million Investment ---------------------------------------------------- The American Basketball League has engaged Salomon Smith Barney Holdings Inc. to help find an investor willing to risk $30 million for a noncontrolling interest in the women's basketball league, according to sources close to the league. ABL CEO and co-founder Gary Cavalli acknowledged hiring the investment-banking firm but wouldn't say how much the league hopes to raise. Cavalli did, however, say any money raised would be spent on marketing the league and securing a television deal. "If there's one thing we learned this year, it's how important TV is to these players," Cavalli said. Most of this year's top draft-eligible prospects shunned the ABL in favor of the rival Women's National Basketball Association. The WNBA, in contrast, had its games broadcast games on NBC and ESPN. Two and one-half hours of air time on a major cable network would cost $100,000 to $350,000, depending on the network and the time. The ABL would pick up the $30,000 to $60,000 in production costs for each game as well. "They would never get their money back," said one cable television executive. Should the ABL file for bankruptcy protection down the road, the bondholder would be toward the front of the line of creditors. "The concern I had is that there are two competing leagues," said David Moross, managing partner of the IMG Chase Sports Capital leveraged-buyout fund, which was approached to invest in the ABL. That does raise some very interesting issues, especially when one of those leagues is run by the NBA," he said. "The NBA is a very powerful institution." Moross also said he was put off by the lack of control the investment would bring. (Business First Columbus-05/15/98) AL TECH: Committee to Retain Special Environmental Counsel ---------------------------------------------------------- The Official Committee of Unsecured Creditors of Al Tech Specialty Steel Corporation seeks entry of an order to retain Thelen, Marrin, Johnson & Bridges as special environmental counsel to the Committee. The firm would handle the Al Tech claim in the Sunbeam/Allegheny International bankruptcy, and further, the New York Department of Environmental Compliance filed an administrative claim in the Al Tech case in the sum of $15,55,000. The firm charges on an hourly basis, at rates in the range of up to $375 per hour for partners and $120 to $250 per hour for associates. ALLIANCE ENTERTAINMENT: Files Disclosure Statement and Plan ----------------------------------------------------------- Less than a year after filing Chapter 11, Alliance Entertainment Corp. announced that it has filed its Disclosure Statement and Plan of Reorganization with the Bankruptcy Court in the Southern District of New York. Following a hearing expected to occur in late June on the adequacy of the Disclosure Statement, Alliance will commence the solicitation of votes for approval of its Plan of Reorganization. "The Company has worked very hard over the last 10 months to bring this process to a timely and successful conclusion. We have made the hard decisions and taken the necessary steps to consolidate our operations and return the Company to profitability. We have met the operating goals set forth in our long-range business plan and expect to continue to do so. We have positioned the Company to take advantage of the current rebound in the conventional retail music market, and the growth of new emerging channels of distribution, most significantly the Internet. We are confident that with creditor approval and confirmation of the plan, we will emerge from Chapter 11 by the end of the summer a smaller, but considerably stronger operation with a bright, new future," said Eric Weisman, Alliance's president and chief executive officer. The newly reorganized Alliance Entertainment will become a private corporation, with nearly all equity in the Company to be held by a syndicate of banks led by The Chase Manhattan Bank, as agent. Under the terms of the Plan, the Company's existing common stock will be canceled and shareholders in the Old Alliance Entertainment will receive no distribution, either in cash or common stock in the new Company. Alliance Entertainment Corp. is the largest wholesaler of prerecorded music and related products. Alliance Entertainment Corp. and certain of its subsidiaries voluntarily filed to reorganize under Chapter 11 on July 14, 1997. The Company currently employs approximately 800 people in the United States and Canada and maintains headquarters in Coral Springs, Fla. BIGGER.NET: Is Bigger.Net Better? --------------------------------- Internet service provider Bigger.net (the company writes its name as @bigger.net) fell into bankruptcy last year after offering the cheapest Web service yet. But it's now pitching for new subscribers. Starting May 21, the company will sell its service in Southern California. It hopes to begin marketing on the East Coast later this year. Bigger.net received much publicity in late '96 when it became the first ISP to offer unlimited Web service for only a one-time fee of $59.95. But in December, the company filed for protection under Chapter 11 reorganization of the U.S. Bankruptcy Code. The company listed more than $1 million in debts. It has kept operating with its limited number of subscribers, all near its home base of San Jose, Calif. Bigger.net's resumed sales come thanks to some private investors, whom the company won't identify. But they also come thanks to new partners Cisco Systems Inc. and Canada's Global Telecommunication Solutions Inc. They're providing hardware and phone-line connections for the expansion. Bigger.net's strategy is the same. It will offer the lowest-priced ISP service. It will make money by selling ads on its Web site and by selling data on its users' surfing habits. At least one other company is trying the same business model. Smart World Technologies in Danbury, Conn., offers free Internet service for a one-time fee of $199.95. Its FreeWeb service also is supported by advertising. (Investors Business Daily - 05/21/98) BUILDERS TRANSPORT: Files For Reorganization -------------------------------------------- Builders Transport Inc. announced it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court for the Northern District of Georgia, in Atlanta. Under Chapter 11, the company will operate under **court** protection from creditors while developing a plan of reorganization. The company, which has been experiencing a period of financial difficulty, chose this course of action as the best means of returning the company to profitability. Concurrent with the filing, Builders Transport said it has an agreement in principal with its existing lender, CIT Group/Business Credit, Inc., for use of cash collateral to fund ongoing operations. Based in Camden, S.C., Builders Transport is a truckload carrier that transports a wide range of commodities in both intrastate and interstate commerce. The company provides dedicated contract carriage, dry van and flatbed service for shippers of a variety of products in medium, short-haul and regional markets. The company's stock is traded over the counter under symbol TRUK. CAMBEX CORP: Notification of Late Filing ---------------------------------------- Cambex Corporation notified the SEC of a late filing of its quarterly report, Form 10-Q for the period ended April 4, 1998. The company stated that The Form 10-Q for the period ended April 4, 1998 cannot be filed within the prescribed time period because additional time is required to complete the annual audit and Form 10-K. Revenues are anticipated to be down approximately 70% from the period ended March 29, 1997. Although revenues are expected to be lower than the previous period, the net loss is not expected to be significantly different than in the period ended March 29, 1997 due to lower operating costs. COLUMBIA/HCA HEALTHCARE: To Sell 22 Hospitals --------------------------------------------- Columbia/HCA Healthcare Corp. on Tuesday announced plans to sell 22 hospitals in Tennessee, North Carolina, Kentucky and Alabama to a nonprofit consortium for $1.2 billion as part of efforts to get smaller and concentrate on improving patient care. David Cyganowski and Fred Hessler of the Health Care Finance Group at Salomon Smith Barney called the transaction the largest purchase ever of hospitals by not- for-profit health care organizations. Salomon Smith Barney helped broker the deal. The sale involves 22 hospitals, one ambulatory surgery center and office buildings for all 23 facilities. All are part of Columbia's 45-hospital Atlantic Group. The buyers are Alliant Health Care System of Louisville, Ky.; Baptist Health of Montgomery, Ala.; Duke University Health System of Durham, N.C.; New Hanover Regional Medical Center of Wilmington, N.C.; Novant Health of Winston-Salem, N.C.; and Pitt County Memorial Hospital of Greenville, N.C.; Eliza Coffee Memorial Hospital of Florence, Ala.; and Johnson City Medical Center Hospital of Johnson City, Tenn. CONSOLIDATED STAINLESS: Seeks Time to Assume/Reject Leases ---------------------------------------------------------- Consolidated Stainless, Inc., debtor, seeks an order granting it a further extension of time to and including October 11, 1998 to assume or reject unexpired leases of nonresidential real property. The debtor seeks the extension because the debtor has been consumed with operating its business in a chapter 11 environment and has devoted significant time to stabilizing and improving its business operations. I t has spent considerable time in assisting its investment bankers in the marketing of its manufacturing facilities. The debtor was also busy completing a preliminary business plan which is premised upon the continuation of its distribution business subsequent to the disposition of its manufacturing operations. The debtor has also spent time responding to motions for appointment of a trustee. The debtor believes that most of the remaining leases will be assumed, but the debtor has not had sufficient time to complete an analysis of its remaining leases. DONG AH GROUP: One of First Big Rescue Packages ----------------------------------------------- A bailout of the Dong Ah group, South Korea's 10th largest conglomerate, was necessary to prevent a collapse of the country's financial system, the chairman of the Financial Supervisory Commission said on Thursday. "The impact of Dong Ah group's fallout would be 10 trillion to 15 trillion won ($6.9 billion to $10.3 billion)," Lee Hun-jai, commission chairman, told foreign correspondents. The group's core company, Dong Ah Construction Industrial Ltd, has hundreds of subcontractors and owes money to 53 financial institutions. "If you take the worst case, (Dong Ah's collapse) may cause the total collapse of the financial system," Lee said. The group's creditors on Thursday agreed to give Dong Ah 600 billion won in emergency loans with one-year maturity and to roll over existing loans The two sides were still haggling over the interest rate on some of those loans, said Shin Bok-young, president of Seoulbank, Dong Ah's single-biggest creditor. Dong Ah chairman Choi Won-suk was required to relinquish all management control of the company and the group has to sell off its non-core units as part of the conditions for the bailout. "Dong Ah is not saved as a group. It will be broken up totally," Lee said. "It's not the same as bankruptcy, but it comes close. We have to weigh the social costs of a bankruptcy" against keeping the company going, he added. "Bankruptcy is not the only way to break up a chaebol (conglomerate)," he said. Under Thursday's debt rescheduling plan, creditors also agreed to convert some of their loans into equity. Creditors are seeking key concessions from the government as part of the deal, Seoulbank's Shin said. They are asking state-owned Korea Land Management Corp to buy 134.9 billion won worth of unsold real estate on the company's books. They are also proposing the government buy some 12 million square metres (130 million square feet) of reclaimed land from the sea in the northern port of Inchon, the proceeds of which would be used to retire debt. Dong Ah Construction, whose overseas projects include a $6.18-billion irrigation project in Libya and the mothballed Bakun hydroelectric plant in Malaysia, has estimated debts of $3.7 billion. A slumping economy has left Dong Ah with a huge inventory of unsold residential and commercial units. The deal is one of the first big rescue packages for one of South Korea's highly-leveraged conglomerates since Seoul was forced to turn to the International Monetary Fund for a 58.35 billion bailout. (Reuters; 05/21/98) HUNGARIAN BROADCASTING: Company Update -------------------------------------- In May 1998, the Company purchased 44% ownership in Galaxie TV Networks in the Czech Republic. Galaxie has a regional terrestrial license broadcasting to 200,000 television households and a national satellite-to-cable license. The Company's revenues are derived primarily from the sale of television advertising to international, national and local advertisers. The Company's direct customers are generally fewer than a dozen international advertising agencies that arrange the broadcast of commercials for their clients. The primary expenses incurred in operating a broadcasting station are programming costs (buying, producing and editing), employee salaries, broadcast transmission expenses and selling, general and administrative expenses. The Company is currently operating with expenses (excluding non-cash items such as: depreciation, barter expense, amortization of intangibles and foreign exchange gains or losses) of approximately $600,000 per month and anticipates this approximate level of expenses to continue for at least the next six months. Revenues from the two Company stations are currently averaging $200,000 to $300,000 per month. Since MSAT was relaunched in April 1996, revenues grew rapidly. Revenues of nine million forints in May 1996 have risen to 39 million forints in November 1996 and to 72 million forints ($360,000) in October 1997. Two new private stations entered the market in October 1997, increasing competition for both audience and advertising. The Company's revenues increased by $135,263 or 24% to $708,778 in the quarter ended March 31, 1998 from $573,515 in the quarter ended March 31, 1997. The increase is primarily attributable to the operation of two stations versus one station in the prior year. Revenues in the first quarter of 1998 were reduced by the increased competition in the Hungarian market due to the Fall 1997 launch of two new national stations into this market and the resulting increase in competition. JAY JACOBS: Starts Its Own Credit Card -------------------------------------- Credit card offers are a dime a dozen, but Jay Jacobs Inc. is introducing its own plastic to a market of credit-hungry shoppers. The Seattle-based clothing retailer will offer the Jay Jacobs charge card across the country as part of its revamped marketing strategy targeting college graduates. The May 20 launch of the private label card marks the first time Jay Jacobs has had marketing dollars to spend since the retailer emerged from Chapter 11 bankruptcy protection in 1995. Targeting 18-to-25-year-olds looking for a new job and a new wardrobe, Jay Jacobs figures these are consumers with little or no established credit. A Jay Jacobs charge plate is a way for them to build a credit line, and of course, a means to buy that interview suit. Such green borrowers raise the specter of payment delinquency, something Jay Jacobs can't afford considering the state of the company's own finances. Jay Jacobs posted a loss in 1997 of $1.3 million. But the chain isn't assuming any of the risk. Instead, the company recruited private-label card specialist, SPS Payment Systems, to handle the program. As such, SPS receives the benefit from the interest charges, and carries the risk from bad accounts. The initial annual percentage rate will be 21 percent to 22 percent, steep but standard for department store cards. Lawrence said consumers don't focus much on the percentage rate, but rather on the minimum payment - the smaller the better. The company's new card will have a $20 minimum, or 1/24 of the total balance. (Puget Sound Business Journal - 05/15/98) KTN: Placed Under Receivership ------------------------------ Kenya's ostensibly first private and commercial television broadcasting station is set to close shop. Last week, KTN itself was the first to break the news that the station had been placed under receivership. Assurance was given by the receiver/manager, Andrew Gregory of KMPMG Peat Marwick that it was in the interest of the owners to safeguard KTN's core broadcasting business. He also let be known that a "majority" of staff would retain their jobs. That was Tuesday but by Wednesday, 21 workers had already been declared redundant and others "deployed to a sister station". The truth is KTN staff have been sold off to The East African Standard. KTN was not so much put on the market for sale, but changed hands in a boardroom, between a group of political and business bedfellows. If the change were to literary mean "sold", the exchange did not meet such criteria. Briefly, a contestant to ownership, Jared Kangwana, had taken co- directors to court for either re-acquisition of the station or payment in lieu of investment lost. Somehow, a deal was made outside court for Transnational Bank to acquire KTN and buy out Kangwana. This was done with such speed that no sooner had Transnational acquired KTN than it was "sold" to The East African Standard Ltd, last December. Kangwana understandably, is back in court claiming that Transnational Bank has not made good on due payments to him. The issue here is not whether the multiple transfers of KTN in such a spectacular short time was a plot to cover up some past misdeeds, though this has a telling effect, if it is true, on the transparency of those involved. It has been variously claimed that KTN owes the government Sh1.2 billion in rent arrears for use of Nyayo House. The owners have denied this only saying effort is being made to "regularise" any money owed. So far, KTN is not saying how much is in the arrears, when and how it will be paid. We may also not know how many other creditors are stalking KTN. But we know KTN owes The Kenya Revenue Authority (KRA) Sh138 million. The Economic Review's account was frozen for less. There are many other questions that the declaration of insolvency does not answer. This has resulted in heated speculation that there is intention to sweep away some irritating dirt. Further, it may now be clear why attempts to buy KTN by other entrepreneurs were nipped in the bud. Initially, it was assumed that KTN would not be sold to anti- establishment firms for political reasons. But the way things are being fixed, it seems some legal loopholes are being exploited in an attempt to hide embarrassing revelations. By playing blind, the government may be accused of being part of the conspiracy and manipulation. Still, the possible closure of KTN will be a big blow for the media industry and its liberalisation process. KTN was the first commercial broadcaster in independent Kenya. Though under establishment control, it sometimes showed glitter and pointed to just how free media can be of use to an information- hungry populace. It allowed talents to emerge and shine. It took on KBC and made the latter to think about the audience. The media scene is just beginning to thaw and the demise of KTN will send a wrong signal to entrepreneurs and thousands who have staked a career on journalism. The best is to tell us the truth about KTN's insolvency and let it survive. (Africa News Service - 05/11/98) LOT$OFF: Able to Reduce Debt on Judge's Ruling ---------------------------------------------- San Antonio-based LotsOff Corp. said Monday it will not have to pay an estimated $5.9 million worth of late claims - money creditors are seeking in the company's Chapter 11 bankruptcy reorganization - because federal bankruptcy judge Leif Clark has denied such claims. Company president Charles "Hop" Fuhrmann said the judge's ruling is important because it reduced the amount of claims the company must pay with cash or stock. MONTGOMERY WARD: Trims Loss in First Quarter -------------------------------------------- Montgomery Ward reported a first-quarter loss of $110 million, compared with $144 million in the year-ago period. Overall revenue dropped 25 percent to $991 million, as the chain recorded a 31 percent drop in merchandise sales and a 4 percent increase in revenue at the Signature Group, its direct-marketing subsidiary. Sales in stores open at least a year fell 6 percent. NISSAN: Broken-down Nissan Seeks Foreign Partner ------------------------------------------------ NISSAN, Japan's second-largest vehicle maker, grabbed the headlines last week with its plan to sell a stake in its truck offshoot to Daimler-Benz. But it may be ready to go further: Tokyo is alive with stories that the company may link its core cars operation with a foreign partner. Last week, Nissan's president Yoshikazu Hanawa hinted that his company was negotiating with Daimler-Benz in more areas than trucks, and that it was in touch with other foreign car firms. "We're holding talks with other car makers, too. It's just that the Daimler- Benz talks became public," Hanawa told reporters. A Nissan spokesman refused to elaborate on Hanawa's remarks. He said the company's plans for dealing with its financial problems would be revealed on May 27, when it reports its 1997 results. Analysts estimate it has a debt burden of about Pounds 11 billion. But Hanawa's comments set off speculation in the Japanese media about who might become a partner for Nissan. Volkswagen and Ford were top of the list. Hanawa hinted that an announcement will be made before the company's annual meeting at the end of June. British interest will centre on the implications for Nissan's factory near Sunderland, the first of the Japanese car "transplants" in Britain and now the most efficient car plant in west Europe. Nissan is Japan's second-largest car manufacturer after Toyota and the fifth largest in the world. But although Nissan is Japan's largest car exporter it has been losing market share to its rival Toyota for more than 30 years. "I don't think there's anything appreciably wrong with Nissan's distribution system," says Fuyuki Fujiwara, motor- industry analyst at Salomon Smith Barney in Tokyo. "But the company was slow in picking up on the boom in recreational vehicles. Also, Nissan has a brand image problem in the United States, where its vehicles sell for about $1,000 less than Toyota's." The Nissan empire is crumbling. Four straight years of losses have piled up the company's debt to crushing levels. Nissan was just beginning to turn things around last year, announcing its first profit in five years, when Japan was hit by a slump in consumer spending and car sales took a nosedive Last month the company estimated a group net profit of just Y16 billion (Pounds 73m) for the fiscal year 1997, down nearly 80% from the previous year. The decline was partly blamed on a fall in Japan's stock market, which resulted in a loss on marketable securities of about Y50 billion (Pounds 230m). Fujiwara estimates that the company's debt now amounts to 1.88 times the value of its equity. "Its ability to pay that off is in question," says Fujiwara. "The other problem is that Nissan's banking links are with some of the weakest banks in Japan. They are members of the Fuyou group, Fuji Bank and IBJ (the Industrial Bank of Japan). In the past Nissan's debt has not been priced at a premium. I think that will change, because the debt market has to get more efficient." In other words, Nissan's debt is not only growing but the cost of servicing it will increase. "Nissan doesn't look as though it's getting more competitive but there's no imminent bankruptcy," says Fujiwara. "I don't think that's a reasonable possibility. If the time came to make a move, I think the government would step in." (Sunday Times London - 05/17/98) PAN AM: To Retain Banmiller as Consultant ----------------------------------------- David Banmiller was the President of the substantively consolidated debtors, Pan American Airways Corp, since November 22, 1997. he tendered his resignation on April 21, 1998. Banmiller has offered to act as a consultant to Pan Am and the company believes that it is in the debtors' best interest to use Banmiller as a consultant for up to three months. The total cost of the debtors is not expected to exceed $5,000 per month. SCHWEITZER MOUNTAIN: Developer Files for Bankruptcy --------------------------------------------------- A prominent Honolulu developer who had planned to bankroll a takeover of the bankrupt Schweitzer Mountain Resort is himself bankrupt. Bruce Stark pledged to help Bobbie Huguenin and her mother, Jean Brown, regain control of the once family-owned ski resort. The resort, about $28 million in debt, is being run by a court-appointed trustee. Brown and Huguenin filed for bankruptcy last year to stop Schweitzer from being sold. The mother-daughter duo submitted a plan to the court saying they could pay creditors and operate the resort. They were getting help and about $30 million from Stark. But this week, nearly all those owed money by Schweitzer formally objected to Brown's and Huguenin's plan. Those opposing it include Huguenin's three sisters, U.S. Bank, Bonner County and a committee of creditors. U.S. Bank is owed about $21 million and the county has outstanding bills of about $2 million for taxes and road construction to the resort. The other Brown family members said they never were consulted about filing for bankruptcy and are not authorizing Huguenin and Brown to give away ownership in the resort. Next week a judge will review plans to keep operating the resort. A Seattle firm, Harbor Properties, has made a bid to buy the ski resort for $18 million. The offer initially was accepted, but Brown and Huguenin pulled out of the deal, claiming the mountain was worth $66 million. (Idaho Statesman - 05/09/98) SEARCH FINANCIAL: Court Approves Andrews & Kurth ------------------------------------------------ The court entered an order in the case of Search Financial Services Acceptance Corp., MS Financial, Inc., Search Funding Corp., and Search Financial Services, Inc., approving the employment of Andrews & Kurth LLP as its bankruptcy counsel on a final basis. SEARCH FINANCIAL: US Trustee Seeks To Keep Equity Committee ----------------------------------------------------------- In the case of Search Financial Services Acceptance Corp., and its affiliated companies, the US Trustee filed a motion to show cause why the Committee of Equity Security Holders Should Not Be Dissolved. The US Trustee believes that equity on a balance sheet basis has essentially disappeared as a result of the MS Financial transaction, but there is still the possibility that value may be preserved for preferred stockholders through, for example, profitable operation of the debtors' remaining business. Accordingly the US Trustee is not disposed to unilaterally dissolve the equity committee at this time. If the members of the equity committee believe that the value of their future contribution to their constituency in this case can realistically be expected to exceed the cost and expense of maintaining the committee, they should be permitted the opportunity to convince the court of that fact. If the expense of an equity committee results in a dollar for dollar reduction in the return on unsecured creditor claims, then the US Trustee states that maintenance of the equity committee is no longer in the best interest of the estate or its creditors. STEINBERG'S: Notice of Extended Bar Date ---------------------------------------- On May 11, 1998, the court in the case of Steinberg's Inc. set June 19, 1998 as the date by which all persons or entities holding prepetition claims against the debtor's estate , being any claims arising prior to September 23, 1997 must file proofs of claim. WESTERN FIDELITY: Debtor Terminates Counsel's Employment -------------------------------------------------------- The Official Unsecured Creditors' Committee in the case of Western Fidelity Funding, Inc. files an objection to the Amended Disclosure Statement filed by the debtor on April 15, 1998. According to the Committee, they were informed that the employment of debtor's counsel, Katch, Sender & Wasserman, was terminated and that substitute counsel would be engaged by the debtor. The Committee states that this turn of events completely undermines any pending negotiations and presumably, means that the debtor does not intend to proceed with the amended plan and amended disclosure statement. The Committee points out that the debtor's plan is unconfirmable on its face, in its treatment of Class 14 interest holders, violating the absolute priority rule. The Committee believes that if the debtor's negotiation strategy is to curtail negotiations with the Committee, it is in the best interests of all creditors to proceed with the liquidation of the debtor's assets. Any further negotiations with the debtor are unwarranted. DLS CAPITAL PARTNERS: Bond Pricing for Week of May 18, 1998 ----------------------------------------------------------- Following are indicated prices for selected issues: Amer Telecasting 0/14 1/2 '04 23 - 25 APS 11 7/8 '06 14 - 16 (f) Asia Pulp & Paper 11 3/4 '05 88 - 90 Boston Chicken 7 3/4 '04 31 - 32 Brunos 10 1/2 '05 21 - 23 (f) CAI Wireless 12 1/4 '02 22 - 23 Cityscape 12 3/4 '04 42 - 43 (f) E&S Holdings 10 3/8 '06 68 - 72 Grand Union 12 '04 58 - 59 (f) Harrah's Jazz 14 1/4 '01 33 - 35 (f) Hechinger 9.45 '12 76 - 78 Hills 12 1/2 '03 97 - 98 Levitz 9 5/8 '03 51 - 53 (f) Liggett 11 1/2 '99 72 - 74 Mobilemedia 9 3/8 '07 21 - 24 (f) Penn Traffic 9 5/8 '05 44 - 45 Royal Oak 11 '06 88 - 91 Speedy Muffler 10 7/8 '06 88 - 90 Trump Castle 11 3/4 '03 91 - 93 Zenith 6 1/4 '11 25 - 27 ********* The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. 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. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *