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/raid1/www/Hosts/bankrupt/TCR_Public/980528.MBXT R O U B L E D C O M P A N Y R E P O R T E R Thursday, May 28, 1998, Vol. 2, No. 105 Headlines ABERCROMBIE & FITCH: Sets Annual Meeting ADVANTICA RESTAURANT: Asst. General Counsel Opinion AMERICA WEST AIRLINES: New Organizational Structure APPLIANCE RECYCLING: First Quarter Results BARRY'S JEWELERS: Hearing on Exit Financing CAMINO REAL: Starwood to Pursue Mexico Hotel Chain CONSOLIDATED STAINLESS: Financial Difficulties Increase COUNTRY STAR: Reports Decrease of Revenue DHA HOME: Crown Crafts Enters Agreement With Calvin Klein ENTERGY: Ed Lupberger Announces Retirement GST TELECOMMUNICATIONS: Proceeds of Notes for New Equipment GIBSON'S HOLDING: Hearing Set for Disclosure Statement GRAND UNION: Launches Solicitation of Consents HARVARD INDUSTRIES: Announces Framework for Plan Ready INTEGRAL PERIPHERALS: Bar Date Set for August 18, 1998 KELLER FINANCIAL: Managers Pocketed Money LAZZY LEGS: Back in Business After Court Battle MARVEL ENTERTAINMENT: Trustee Seeks Approval for Sale NAMCO CYBERTAINMENT: Disclosure Statement Needs More Time SMITH TECHNOLOGY: Credit Panel Renews Bid To Sue Lenders TOWN & COUNTRY: Court Approves Plan TSUMEB CORP: Announces Liquidation - Government Shocked UNIROYAL TECHNOLOGY: Giant Rebound from 1991 Bankruptcy VOICE POWERED TECHNOLOGY: First Quarter Results WASTE RECOVERY: First Quarter Results WESTERN FIDELITY FUNDING: Substitution of Counsel ********* ABERCROMBIE & FITCH: Sets Annual Meeting ---------------------------------------- The first annual meeting of stockholders for Abercrombie & Fitch Co. since it separated from The Limited Inc. will be held July 16 at A&F's offices, Four Limited Parkway, Reynoldsburg. The record date has been set for May 27, 1998. At the end of April, A&F operated 158 stores. ADVANTICA RESTAURANT: Asst. General Counsel Opinion --------------------------------------------------- In a Form S-8 filed with the SEC, Advantica Restaurant Group, Inc. (formerly Flagstar Companies Inc.) filed a letter written by the company's Assistant General Counsel, J. Scott Melton stating as follows: Ladies and Gentlemen: As Assistant General Counsel of Advantica Restaurant Group, Inc., I am familiar with the Registration Statement to be filed by Advantica, on or about May 19, 1998, with the Securities and Exchange Commission with respect to the 4,888,888 shares of Advantica $.01 par value common stock issuable under the Advantica Restaurant Group Stock Option Plan. It is my opinion that the Advantica $.01 par value common stock to be registered, when sold or issued hereafter upon the exercise of stock options in accordance with the provisions of said plan and upon payment of the consideration for such shares as contemplated by said plan, will be validly issued, fully paid and non assessable. I hereby consent to the use of this opinion as Exhibit 5(a) to the above mentioned Registration Statement. Sincerely, J. Scott Melton Assistant General Counsel AMERICA WEST AIRLINES: New Organizational Structure --------------------------------------------------- In a Form S-3 Registration Statement filed with the SEC, America West Airlines, Inc. announced a holding company form of organizational structure. The holding company reorganization was effected pursuant to an Agreement and Plan of Merger among AWA, America West Holdings Corporation, a Delaware corporation, and AWA Merger, Inc., a Delaware corporation and wholly owned subsidiary of Holdings which provided for, among other things, the merger of AWA Merger, Inc. with and into AWA, with AWA as the surviving corporation. Stockholder approval was not required for the merger. APPLIANCE RECYCLING: First Quarter Results ------------------------------------------ Appliance Recycling Centers of America, Inc. filed a Form 10-Q, its quarterly report for the quarterly period ending April 4, 1998, with the SEC. Total revenues for the three months ended April 4, 1998 were $2,635,000 compared to $3,243,000 for the three months ended March 29, 1997, a decrease of 19%, mainly as a result of a decrease in recycling revenue. Retail revenues for the three months ended April 4, 1998 were $1,512,000 compared to $938,000 for the three months ended March 29, 1997, an increase of 61%. Same-store retail sales increased 65% (a sales comparison of thirteen stores that were open the entire first three months of 1998 and 1997). The increase in retail sales was primarily due to increased sales of Whirlpool product. Currently, the Company has 13 retail locations and does not plan to open any additional new stores in 1998. BARRY'S JEWELERS: Hearing on Exit Financing ------------------------------------------- The court has scheduled a hearing on the approval of Barry's Jewelers Inc.'s commitment letter for $50 million in exit financing with Foothill Capital Corp. for today. The company said that although the financing would not occur until after plan confirmation and would involve the reorganized company, various terms of the commitment affect the company currently. The company noted that entry into the commitment letter is necessary to "facilitate an expeditious Plan confirmation process...allowing the Debtor to proceed...confident that the Plan Financing is available." (Federal Filings Inc. 27-May-98) CAMINO REAL: Starwood to Pursue Mexico Hotel Chain -------------------------------------------------- Starwood Hotels & Resorts Inc. said it plans to bid for Mexico's Camino Real luxury hotel chain. "We would participate" in the auction of the hotel chain, said Juergen Bartels, chief executive of Starwood Hotels & Resorts, without giving any further details. "There are all these others who are participating and would like to know the precise nature" of the company's plans to bid, he said at a news conference in Mexico City. Mexico's government is in the process of setting out the auction rules for the sale of the Camino Real chain, which has 16 luxury hotels, 15 in Mexico and one in the United States. The chain's assets are now in the hands of the state- owned Banking Deposit and Insurance Agency. The Camino Real chain was formerly operated by Real Turismo SA. Real Turismo fell into bankruptcy owing money to Mexican banks and the government, which took over banks' bad loans in the 1995 recession, seized its assets. CONSOLIDATED STAINLESS: Financial Difficulties Increase ------------------------------------------------------- The financial difficulties are intensifying for Consolidated Stainless Inc. The Orlando company, which has been operating under Chapter 11 of the U.S. Bankruptcy Code, announced a loss of $2.4 million for the first quarter. Total sales dropped 53 percent to $6.2 million. Ronald Adams, Consolidated's president, attributed the quarterly loss to a decline in sales, the cost of bankruptcy proceedings and higher per-unit manufacturing costs, among other things. To make matters worse, the company's creditors and the federal government have filed motions in the bankruptcy case asking that a trustee be appointed to operate Consolidated's business. (Orlando Business Journal; 05/22/98) COUNTRY STAR: Reports Decrease of Revenue ----------------------------------------- In its quarterly report filed with the SEC, Country Star Restaurants Inc. reported that total revenues decreased to $889 thousand for the three months ended March 31, 1998, compared with $2.264 million for the three months ended March 31, 1997, a decrease of $1.375 million or 60%, partially due to the closing of Country Star Atlanta. The Company will need to raise additional capital before it can attain profitability from operations. Management believes it can raise this capital through private placements of equity and the granting by lenders of discretionary advances under outstanding lines of credit. On March 10, 1998 the NASD delisted the Company's securities from the NASDAQ National Market because of the Company's failure to meet listing requirements concerning minimum bid price and market value of public float. DHA HOME: Crown Crafts Enters Agreement With Calvin Klein --------------------------------------------------------- Crown Crafts, Inc. announced that it has entered into a long-term international licensing agreement with Calvin Klein, Inc. to manufacture and distribute soft home furnishings, including the Calvin Klein Home bed, bath and table linen collections, and the new Home Khakis line. Territory covered under the license includes the Americas, Europe and the Middle East. Under the agreement, Calvin Klein, Inc. has licensed the use of its trademark to Crown Crafts Designer, Inc., a wholly-owned subsidiary of Crown Crafts, Inc., which will be responsible for manufacturing and distribution. Design and marketing activities, including advertising and public relations, will continue to be the responsibility of Calvin Klein, Inc., administered through its studios and offices in New York and Milan. Crown Crafts, Inc. and DHA Home, Inc., which held the license for the Calvin Klein home products line since May 1994, are presently negotiating the terms of an agreement for Crown Crafts, Inc. to acquire DHA's Calvin Klein assets, and to arrange for an orderly transition of the business. The arrangements under discussion would provide for transfer of inventory, personnel, supplier arrangements, and certain operating leases. Meanwhile, Crown Crafts, Inc. and Calvin Klein, Inc. have authorized DHA Home, Inc. to continue manufacturing, shipping and product development work while negotiations are pending. Since DHA Home, Inc. is under the protection of the bankruptcy court, any final agreement will be subject to court approval. ENTERGY: Ed Lupberger Announces Retirement ------------------------------------------ Entergy Chairman and Chief Executive Officer Ed Lupberger announced Tuesday that he will begin a transition to retirement by relinquishing his duties as chairman and CEO and acting in a consulting role to the leadership team. Bob Luft, an Entergy director since 1992 and chairman of the Finance Committee of the Board, will serve as chairman and acting CEO pending selection of a successor. It is anticipated that a CEO will be selected by year end. Lupberger is credited with leading Entergy from the brink of bankruptcy in the 1980s to become one of the leading electric companies in the world. Under his tenure, the company consolidated its original operating subsidiaries and acquired Gulf States Utilities to become the third largest electric utility in the nation in both generation capacity and megawatt-hour sales. Lupberger led the company's expansion into overseas markets, acquiring CitiPower, the electric distribution company in Melbourne, Australia in 1996. In early 1997 Entergy bought London Electricity, increasing its customer base to five million. GST TELECOMMUNICATIONS: Proceeds of Notes for New Equipment ----------------------------------------------------------- In a Form 8-K filed with the SEC, GST Telecommunications, Inc and GST USA, Inc. reported that on May 4, 1998, GST Telecommunications, Inc. issued a press release announcing that GST Network Funding, Inc., an indirect wholly owned subsidiary of the Company and a wholly owned subsidiary of GST USA, Inc., had completed a private placement of $500.0 million principal amount at maturity of 10 1/2% Senior Secured Discount Notes due 2008. The Notes will fully accrete to face value on May 1, 2003. From and after May 1, 2003, the Notes will bear interest payable in cash, at the rate of 10 1/2% per annum on each May 1 and November 1, commencing November 1, 2003. The Notes will be unconditionally and irrevocably assumed by GST USA, and guaranteed by the Company, on May 1, 2003, or earlier if permitted under the terms of GST USA's and the Company's outstanding indebtedness. Neither GST USA nor the Company will be liable on the Notes until they are assumed. The Notes are initially secured by a first priority security interest in United States government securities purchased with the proceeds from the offering. GST Network intends to use the net proceeds from the offering, aggregating approximately $288.5 million, to purchase telecommunications equipment for the continued expansion of the Company's infrastructure, including the development and construction of additional networks and longhaul fiber optic facilities. The Notes will also be secured by a first priority security interest in all equipment purchased by GST Network. GIBSON'S HOLDING: Hearing Set for Disclosure Statement ------------------------------------------------------ The debtors, Gibson's Holding Company, Gibson's Discount Centers, Inc. and Gibson Franchise Corp., filed their Disclosure Statement and seek the entry of an order approving the Disclosure Statement as containing "adequate information." A hearing is set for June 22, 1998. GRAND UNION: Launches Solicitation of Consents ---------------------------------------------- The Grand Union Company announced today that on May 22 it commenced the solicitation of consents of its Senior Noteholders and preferred shareholders. Assuming receipt of the required consents, the Company intends to commence a voluntary prepackaged Chapter 11 bankruptcy to be filed on or about June 24, 1998. In order for their votes to be counted, ballots from holders of the Company's Senior Notes and preferred stock must be received no later than June 22, 1998. The Company's proposed restructuring plan reflects the agreed upon terms between an unofficial committee of Senior Noteholders holding $275 million of the Company's $595 million in outstanding Senior Notes and by the Company's preferred shareholders. The plan provides that trade and business creditors will be unimpaired and will continue to be paid in the ordinary course of business. The restructuring plan further provides that: The Company's Senior Notes will be cancelled and exchanged for all of the reorganized Company's common stock; The Company's existing common stock will be cancelled and exchanged for five-year warrants to purchase approximately 1.5% of the new common stock at an exercise price of $19.82 per share, and The Company's preferred stock will be cancelled and exchanged for five-year warrants to purchase approximately 10.5% of the new common stock at an exercise price of $19.82 per share and 2.5% of the new common stock at an exercise price of $23.15 per share. The preferred shareholders will also receive four-year warrants to purchase approximately 1% of the new common stock at an exercise price of $12.32 per share. As previously announced, the Company has signed a firm underwritten commitment letter from Swiss Bank Corporation and Lehman Commercial Paper Inc. for a $300 million credit facility. HARVARD INDUSTRIES: Announces Framework for Plan Ready ------------------------------------------------------ Harvard Industries Inc., which plans to file a reorganization plan by June 2, said that while it and its creditors' committee have a "framework" for a consensual reorganization plan, it was nonetheless seeking to extend its exclusive period to file a reorganization plan "[o]ut of an abundance of caution." Harvard is seeking to extend its exclusive periods to file a reorganization plan and solicit acceptances to the plan to Aug. 1 and Sept. 30, respectively. The court has scheduled a hearing for today. Exclusivity is currently set to expire on June 2. (Federal Filings Inc. 27-May-98) INTEGRAL PERIPHERALS: Bar Date Set for August 18, 1998 ------------------------------------------------------ The US Bankruptcy Court for the District of Colorado entered its "Order Setting Claims bar Date regarding Integral Peripherals, Inc. Creditors with claims against the debtor must file a proof of claim by August 18, 1998. KELLER FINANCIAL: Managers Pocketed Money ----------------------------------------- A bankruptcy court hearing in Tampa, Fla. last week for Keller Financial Services revealed that just before and after filing for protection from creditors, managers transferred millions of dollars out of the group of car finance companies' accounts, some of it into their pockets, The St. Petersburg Times reported. The U.S. Trustee's office says the transfers are evidence of "fraud, dishonesty, incompetence or gross mismanagement" and has requested the appointment of a trustee or examiner to run the companies. Companies that are part of the bankruptcy filing have a geographic location as part of their names: Florida, Tampa Bay, Pinellas, North Florida, West Florida, Mid Florida, Central Florida, Suncoast, St. Petersburg and Clearwater, which also serves as the headquarters. Keller officials announced a preliminary reorganization plan that would offer investors the choice of accepting the loss of 85 to 90 percent of their investments or taking stock in a reorganized company, which would be publicly traded. Many of the 400 investors in attendance were displeased with both the management's handling of funds and the options offered at the hearing, which was held at the Tampa Convention Center in order to accommodate the crowd. (ABI; 27-May-98) LAZZY LEGS: Back in Business After Court Battle ----------------------------------------------- After a long and crippling court battle, Joachim Stix and Judy Delfabro are attempting to resurrect the Temecula sports equipment firm that catered to the inline skating crowd. The pair, and a new partner, acquired the company's trademark from U.S. Bankruptcy Court in January for about $10,000 and are now preparing to reintroduce a revitalized Lazzy Legs to sporting goods retailers at the giant National Sporting Goods Association Show in Chicago in July. The new company is not liable for the hundreds of thousands of dollars owed creditors of the original Lazzy Legs, which filed for Chapter 7 liquidation in April 1997. But Delfabro said new ownership is trying to work with suppliers and customers caught up in the bankruptcy filing. At the time, the company reported assets of $435,972 and liabilities of $1.3 million. Lazzy Legs once was a high flier in the inline skating business, employing as many as 90 workers and racking up sales of $2.5 million a year. The company now operates from 3,800 square feet and employs eight. Sales of inline and wheel sports dropped to an estimated $503 million in 1997 from $608.1 million in 1995, according to the National Sporting Goods Association, a trade group. (Press Enterprise Riverside - 05/22/98) MARVEL ENTERTAINMENT: Trustee Seeks Approval for Sale ----------------------------------------------------- Marvel Entertainment Group Inc.'s chapter 11 trustee is seeking approval of sale procedures for the confection business of Marvel's Fleer Corp. unit, including a $260,000 breakup fee for Concord Confections Inc. Concord previously bid $8.25 million plus the assumption of certain liabilities, but recently increased its offer to $13 million plus assumed liabilities. The trustee's financial advisors, Houlihan Lokey Howard & Zukin Capital, preliminarily assessed the fair market value of the confections division's operations, excluding those in Europe, and "the consideration to be paid by Concord comports with the valuation reported thereby." Marvel has aggressively marketed the business for several years. While the bulk of Fleer's business is comprised of trading cards, a smaller part consists of manufacturing "chunk" or "ball" chewing gum products. A hearing on the sale procedures is set for May 26 and a hearing on the proposed sale is scheduled for June 9. (Federal Filings, Inc. 26-May-1998) NAMCO CYBERTAINMENT: Disclosure Statement Needs More Time --------------------------------------------------------- Namco Cybertainment Inc., debtor, is seeking additional time to file its disclosure statement. The debtor states that based on negotiations with the Committee, the debtor intends to file an amended plan of reorganization by the end of the month, thus the debtor will not be in a position to complete the accompanying disclosure statement until the terms of the revised plan are finalized. SMITH TECHNOLOGY: Credit Panel Renews Bid To Sue Lenders -------------------------------------------------------- Smith Technology Corp.'s refusal to pursue avoidance, recovery, and preservation actions against lenders The Chase Manhattan Bank and BTM Capital Corp. is "patently unjustified" and a forfeiture of fiduciary responsibility to creditors, the official creditors' committee charged. Renewing its bid for authorization to sue the pre and postpetition lenders, the panel said: "The various causes of actions that the Committee seeks to pursue on behalf of the respective estates constitute substantial and meaningful recoveries for the estates and will greatly benefit unsecured creditors, who would likely receive virtually nothing if these claims are not pursued." (Federal Filings Inc. 27-May-98) TOWN & COUNTRY: Court Approves Plan ----------------------------------- Town & Country Corporation, the international jewelry manufacturer, today announced that its pending Chapter 11 Plan has been approved by the Bankruptcy Court. The Plan was accepted by an overwhelming majority of voting creditors. Court approval of the Plan paves the way for Town & Country Corporation to emerge from Chapter 11 on the effective date of the Plan, scheduled for May 29, 1998. The Chapter 11 Plan provides for most of the publicly-held bonds issued by Town & Country Corporation to be converted into equity of a new holding company for Town & Country Corporation. The new holding company will also receive an $8 million convertible note of Town & Country Corporation. "I expect the debt restructuring, in conjunction with the new financing facility, to provide us with the financial stability required to successfully compete in the fine jewelry marketplace," said Interim CEO Ron Stengel. "We are now in a position to better focus on our business and to bring added value to our customers." Town & Country Corporation, through its subsidiaries, is an international manufacturer of fine jewelry with facilities in Massachusetts, New York, Texas, Hong Kong and Thailand. TSUMEB CORP: Announces Liquidation - Government Shocked ------------------------------------------------------- The shock announcement on Friday that Tsumeb Corporation Limited had stopped production and would this week seek to sequestrate the company has been slammed by Mines Minister Andimba Toivo ya Toivo and the Mineworkers' Union of Namibia. MUN General Secretary Peter Naholo yesterday issued a virulent statement saying the union would oppose the liquidation of TCL. But, Naholo added, the move by TCL holding company Gold Fields Namibia "to abandon the Namibian mines is on the other hand a golden opportunity for the Government to nationalise and establish a sound and economically viable mining operation at the three 'peoples mines'." Energy Minister Toivo ya Toivo charged that Gold Fields Namibia "has been dishonest with us all along" and said he had learned of the closure only by chance late on Thursday. Saying the news of the intended liquidation had been received with "shock and dismay" and that he was "taken aback by this surprise", Ya Toivo hit out at the Gold Fields Namibia management for the way in which the mines' closure had been announced. He said, "It is inconceivable that Gold Fields South Africa could have been oblivious of the impending closure of its operations in Namibia. I therefore hold them responsible for what has happened here." The Mines Ministry was aware of "numerous problems" which had dogged TCL, Ya Toivo said, mentioning the six-week strike in 1996 that forced a temporary stop in all mining operations. Ya Toivo closed with "a stern warning to current and future mining investors in Namibia that my Ministry will no longer tolerate this kind of behaviour by mine management". With the liquidation of a company due to bankruptcy, Ya Toivo said, the mineral rights reverted back to the state. The TCL mines possess "sufficient proven ore reserves that would enable other investors to continue mining operations and further development. I will therefore ensure that the next owners absorb the current work force." In the MUN's strongly-worded reaction, Naholo termed it "unbelievable that a company such as TCL-Gold Fields which he accused of brutally exploiting Namibia's human and mineral resources for decades could claim to be bankrupt and move for liquidation in an abrupt manner without timely informing other stakeholders". "The fact that the company is bankrupt (if this is true) is mainly because of mismanagement. Since its inception TCL has been run by apartheid managers, which history shows are generally incompetent and corrupt," he claimed. Instead of allowing TCL to be liquidated, the Gold Fields Namibia Board of Directors should be investigated in terms of the Companies Act, said Naholo, "for recklessly dealing with the company's affairs. If found liable they should be apprehended and locked up for sabotage of the Namibian economy." (Misanet-The Namibian - Africa News Service - 04/20/98) UNIROYAL TECHNOLOGY: Giant Rebound from 1991 Bankruptcy ------------------------------------------------------- Shares in Uniroyal Technology Corp., whose plastics and chemicals are used in such things as bullet-proof acrylics and aircraft interiors, have more than tripled in the past year as cost-cutting and product streamlining efforts take hold. Its shares have jumped to 9 5/8 from 3 1/16 since May 22, 1997. That gain eclipsed the 33 percent return for the Nasdaq Composite Index and the 22 percent return for the Nasdaq Industrial Index during that time. The Sarasota-based company has rebounded from its 1991 Chapter 11 bankruptcy, sought largely because of its inability to pay pension and medical retiree benefits. Uniroyal Technology has since shed unprofitable businesses, refinanced its debt and focused on its more lucrative products. The company brought in new two new executives in 1992 to lead its turnaround. Robert Soran, formerly president and chief executive at Tropicana Products Inc., was hired as president and chief operating officer, and George Zulanas, also a former Tropicana executive, was brought in as chief financial officer. Uniroyal Technology, with customers such as General Motors Corp., Boeing Co. and Hewlett-Packard Co., earned $379,000, or 3 cents a diluted share, on sales of $209 million in the fiscal year ended September 1997. That compares with a loss of about $2 million, or 20 cents, on sales of $173 million in fiscal 1993. (South Bend Tribune - 05/23/98) VOICE POWERED TECHNOLOGY: First Quarter Results ----------------------------------------------- Voice Powered Technology International, Inc. reported a net loss totaling $417,000, or $0.03 per share (excluding new shares to be issued as a result of the Company's reorganization as described below), on sales totaling $303,000 for the quarter ended March 31, 1998. Comparable figures for the quarter ended March 31, 1997 were a net loss totaling $1,386,000, or $0.10 per share, on sales of $1,341,000. The Company's Amended Plan of Reorganization and Disclosure Statement was confirmed by the United States Bankruptcy Court, Central District of California on April 29, 1998 and became effective as of May 12, 1998. In accordance with the provisions of the Plan, the Company reserved for issuance 74,196,288 shares of its common stock consisting of: 1) 2,000,000 shares to be issued as a result of holders of convertible preferred stock being deemed to have exercised their right to convert such stock to common shares in complete satisfaction of their rights under such preferred stock and; 2) 72,196,288 to be issued to Franklin Electronic Publishers, Inc. in exchange for its pre-petition secured claim of $1.73 million, which will give Franklin an eighty percent (80%) equity interest in the Company (on a fully diluted basis following conversion of all of the Company's outstanding convertible preferred stock into common stock). The Company also announced the formation of a new Board of Directors comprised of three executive officers of Franklin including Michael R. Strange, currently a Director and Executive Vice President of Franklin, Gregory J. Winsky, Senior Vice President of Franklin, and Kenneth H. Lind, Vice President and Treasurer of Franklin. The Company's new Board of Directors has appointed Michael R. Strange to the position of Chairman of the Board and Chief Executive Officer, and Mitchell B. Rubin, former President and CEO, to the position of President, Chief Operating Officer, and Chief Financial Officer. Mr. Rubin was also appointed to serve on the Board of Directors of the Company. The Company also announced its intention to maintain its current operations located near Los Angeles, California, as it begins the process of rebuilding markets for the Company's IQ..VOICE(TM) Organizer products as well as its VoiceLogic(TM) voice recognition technology. WASTE RECOVERY: First Quarter Results ------------------------------------- Waste Recovery, Inc., the leading American processor of scrap tires and producer of tire-derived fuel, held its Annual Meeting on May 18, at which time it announced the results of its operations for the first quarter of 1998. During the first quarter ended March 31, 1998, revenues totaled $6,111,134, up 4% from $5,854,458 for the comparable period in 1997. The Company incurred a net loss in the amount of $1,510,562, or $.09 per share, compared with a loss of $654,862 or $.04 per share for the 1997 comparable period. Subsequent to the Annual Meeting, Waste Recovery held a meeting of its Board of Directors, at which meeting the Board approved the rebuilding of the Marseilles facility, the cure of certain defaults and two new bond issues. WESTERN FIDELITY FUNDING: Substitution of Counsel ------------------------------------------------- The court entered an order allowing the law firm of Katch, Sender & Wasserman PC to withdraw its appearance as counsel for the debtor, Western Fidelity Funding, Inc., and allowing the law firm of Gelt, Fleishman & Sterling PC to enter its appearance for the debtor. ********* 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 * * *