/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/980602.MBXT R O U B L E D C O M P A N Y R E P O R T E R Tuesday, June 2, 1998, Vol. 2, No. 107 Headlines AVATEX: Phar-Mor Reports Stock Purchase AVIATION GROUP: Hires Consultant to Boost Investments BANK OF TOKYO: Moody's Issues Warning to Japan's Banks BANK CENTRAL ASIA: Indonesia's Central Bank Extends Help GRAND UNION: Sees Reorganization Value of $730M HAROLD'S FURNITURE: Unusual Proposal by Lawyers HARRAH'S JAZZ: Judge Denies Motion to Liquidate Assets HARVARD INDUSTRIES: Exclusivity Extended KIA: Quick Resolution Seen as Key to Korea's Problems KIA MOTORS: Union Goes on Strike KICHEN WORK: Files for Bankruptcy Protection MIDOPA: Possible Tax Evasion MONTGOMERY WARD: Intermec Technologies Receives Contract MONTGOMERY WARD: Files 10-Q Reporting First Quarter Loss OXFORD HEALTH PLANS: Proposes Annual Meeting PETRO UNION: Announces Annual Meeting QUALITY CARE: Case Summary STRAWBERRIES INC: Seeks To Extend Exclusivity TOWN & COUNTRY: Wider 1998 Operating, Net Losses USMX OF ALASKA: Case Summary & 20 Largest Creditors VORKUTAUGOL: To Go Bankrupt If Railway Picketing Continues WINCOM: Files Bankruptcy Papers WINWARD: State Hospital Chain Closes Doors XINEX: Nearing Bankruptcy Meetings, Conferences and Seminars ********* AVATEX: Phar-Mor Reports Stock Purchase --------------------------------------- In a Form 13D filed with the SEC by Avatex Corporation, Phar-Mor Inc. reports purchasing a total of 174,600 Common Shares between May 6, 1998 and May 27, 1998. The aggregate number of Common Shares beneficially owned by Phar- Mor is 1,366,300 shares, constituting 9.90% of the Issuer's Common Shares issued and outstanding (based on 13,806,375 Common Shares outstanding based upon the Issuer's Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission on February 4, 1998.) Phar-Mor has the sole power to vote, to direct the vote of, and to dispose and to direct the disposition of, 1,366,300 Common Shares of the Issuer. AVIATION GROUP: Hires Consultant to Boost Investments ----------------------------------------------------- Newly public Aviation Group Inc. has hired a Florida consultant to boost its sagging stock price by promoting the Dallas-based company to investors. The price of over- the-counter stock in Aviation Group, which services the aircraft industry, has fallen nearly 70% since the firm went public last August. Aviation Group has hired Continental Capital & Equity Corp. in Longwood, Fla., to launch a comprehensive, 24-month "investor awareness campaign." But experts in the investment community are skeptical. They say it could take up to a year or more for Aviation Group to make any headway on Wall Street. Aviation Group hired Continental after the investment banking firm that took it public forsook equities to focus on bonds. Aviation Group recorded revenue of $9.5 million in fiscal 1997, which ended June 30. The company will double revenue in fiscal 1998, Morgan said. Aviation Group has posted consecutive profits for the last two quarters, he said. Nevertheless, the company's share price has fallen from a high of $11.25, when Aviation Goup went public, to a low of $3 in late April. Recently it closed at just under $4. (Dallas Business Journal - 05/22/98) BANK OF TOKYO: Moody's Issues Warning to Japan's Banks ------------------------------------------------------ US ratings agency Moody's Investors Service on Wednesday issued a tough warning over Japan's banking system, cutting its credit ratings for five top banks and putting four others on a downgrade review. Moody's warned "Japanese banks are facing a third wave of asset quality problems because of the weakening domestic economy," after the Asian economic meltdown and the collapse of the speculative bubble economy. "The combined scale of these problems may overwhelm many banks' internal resources and necessitate substantial official assistance," it said. Ratings were cut for Bank of Tokyo-Mitsubishi Ltd, the world's biggest bank, Dai-Ichi Kangyo Bank Ltd (DKB), the Industrial Bank of Japan Ltd (IBJ), Sakura Bank Ltd and Sumitomo Bank Ltd. Moody's cut its long term debt ratings for DKB from "A1" to "A3," for IBJ from "A2" to "A3," for Sakura from "A3" to "Baa2," and for Sumitomo from "A1" to "A2." (China Daily- 05/31/98) BANK CENTRAL ASIA: Indonesia's Central Bank Extends Help -------------------------------------------------------- Indonesia's central bank is prepared to extend liquidity assistance of up to 200 per cent of capital reserves to the beleaguered Bank Central Asia (BCA), the country's largest private bank, reports said on Wednesday. "Liquidity help for BCA will of course be given until a certain limit, which is up to 200 per cent of its capital reserves," central Bank Indonesia (BI) Governor Sjahril Syabirin was quoted as saying by the Antara state news agency. BCA depositors have rushed bank branches throughout the country in the past few days, clearing out their accounts amid rumours that the bank, owned by tycoon Liem Sioe Liong and two of ousted President Suharto's children, was on the brink of collapse. (China Daily - 05/31/98) E.U. WURLITZER: Paragon Joins Eaglerock Providing Credit -------------------------------------------------------- Paragon Capital is joining Eaglerock Capital Partners to blaze a new path for New England's E.U. Wurlitzer, Inc. Paragon is providing a $3 million revolving line of credit to assist E.U. Wurlitzer in exiting bankruptcy and expanding inventory, as the company prepares for regional expansion. Part of the Greater Boston music scene since 1890, E.U. Wurlitzer has eight stores located in Massachusetts and southern New Hampshire. The company entered bankruptcy in September 1997 and came out of bankruptcy when it was purchased by Eaglerock Capital Partners II, LLC on May 11 of this year. Wurlitzer sells most major brands of combo music products, including guitars, keyboards, drums, recording equipment, sound systems, amplifiers, music software and accessories. It also offers a range of related services, including repairs and rentals. New stores will range in size from 3,500 to 6,000 square feet. To round out the company's product/service mix and help turn music enthusiasts into music-makers, E.U. Wurlitzer is also developing Learning Centers that will provide instruction. GST TELECOMMUNICATIONS: Prospectus Filed with SEC ------------------------------------------------- GST Telecommunications, Inc. filed a prospectus with the SEC relating to the re-offer and resale by certain selling shareholders of Common Shares, without par value of GST Telecommunications, Inc. in connection with the purchase by the Company of all of the outstanding capital stock of Tri-Star Residential Communications Corp. and pursuant to a purchase agreement entered into in connection with debt financing for the Company's Hawaiian inter-island submarine network and various other terrestrial installations provided by Tomen Corporation and its affiliates (collectively, "Tomen") and that are issuable upon exercise of warrants issued to Tomen in connection with the Hawaii Financing. GRAND UNION: Sees Reorganization Value of $730M ----------------------------------------------- Grand Union Co. estimates that its reorganization value will be $730 million. After deducting debt of $355 million, the company said that the equity value of the new entity will be $374.6 million. The reorganization plan contemplates the issuance of 30 million shares to the senior note holders. According to the company's proposed disclosure statement, Grand Union selected a valuation multiple of 6.2 times EBITDA for purposes of the valuation. The company said the valuation was based on its "assumed pro-forma EBITDA of $118 million, a review of comparable companies' values, recent transactions and other factors." (Federal Filings Inc. 29-May-98) HAROLD'S FURNITURE: Unusual Proposal by Lawyers ----------------------------------------------- Bankruptcy proceedings involving the liquidation of Harold's Furniture have assumed a new dimension, as lawyers in the case are at work on an unusual proposal that could satisfy hundreds of shoppers who left down payments for furniture the firm did not deliver. "Negotiations are ongoing that could lead to customers getting credit for their deposits," lawyer Richard S. Mittelman said yesterday. Mittelman represents a family trust that is Harold's largest creditor. Details of the negotiations could be disclosed today, when Louis A. Geremia, the court-appointed trustee, convenes the public meeting of Harold's creditors in U.S. District Court. The hearing will begin exploring the circumstances surrounding the store's failure late last month after 48 years of operation. The collapse led to the largest consumer-related bankruptcy case in Rhode Island in recent memory, and has become the subject of a criminal probe by the state police. To date, the firm has filed schedules of its financial affairs showing that when the store locked its doors on April 23, it had $475,000 in assets and nearly $3.3 million in liabilities. The same filings show the corporation owes money or merchandise to more than 700 creditors, including about 500 retail customers. The firm also owes wages to its employees, some of whom remain unemployed. Under the plan now being discussed, three key events would occur. First, the secured creditors would agree to subordinate their claims. Then, the store would hold a clearance sale to liquidate its stock, which court documents list as having a value of $450,000. The proceeds of this sale would be used to provide credit to the customers for their down payments. Next, the Homonoffs would sell personal real estate, including the store's showrooms and warehouse, and use the proceeds to pay off the secured debt to the city, Citizens Bank and the Kall trust. Estimates of the real estate's value range from $800,000 to $1.6 million. "There's no way he could get $1.1 million," Mittelman said. Asked why his client might risk such a loss, Mittelman said Richard Kall appeared to be motivated by a sense of "humanity." In order for such a distribution to occur, all of the secured creditors must agree to it. (Providence Journal- 05/29/98) HARRAH'S JAZZ: Judge Denies Motion to Liquidate Assets ------------------------------------------------------- U.S. Bankruptcy Judge Thomas Brahney III ay denied motions to liquidate the New Orleans land casino's assets or to remove the company from the federal bankruptcy court protection it has been under since late 1995. (Advocate Baton Rouge - 05/31/98) HARVARD INDUSTRIES: Exclusivity Extended ---------------------------------------- On May 27, 1998 the court extended Harvard Industries Inc.'s exclusive periods to file a reorganization plan and to solicit plan acceptances to August 1, 1998 and September 30, 1998 respectively. The company is planning to file its plan of reorganization prior to August 1. KIA: Quick Resolution Seen as Key to Korea's Problems ----------------------------------------------------- A quick settlement of the troubles of Kia Motors Corp is critical to South Korea's effort to pursue swift economic reforms, the commerce, industry and energy minister said on Monday. Park Tae-young, 56, who took over the trade minister's post in early March, told Reuters that Kia Motors would be offered in an open, international bid. "Kia would be put up for an open, international tender," said Park, who served as a member of President Kim Dae- jung's transition team ahead of his inauguration on February 25. Last month, Ford said it was interested in increasing its equity stake in Kia. Ford and its affiliate, Mazda Motor Corp of Japan, jointly hold a 16.9 percent stake in Kia. A Seoul court put Kia into receivership in April. Creditors sought receivership for the carmaker last October, after determining the company's estimated debt of five trillion won ($3.57 billion) had dashed hopes of revival. Park also said he was optimistic that direct foreign investment would take off in the second half of 1998. "We expect to see a sharp rise in direct foreign investment thanks to the improved environment we have fostered," he said. Recently adopted changes providing tax benefits, eased regulations and free flow of capital would attract the investment, he said. He said direct foreign investment in 1998 was expected to surpass last year's $6.97 billion. "Foreign investment has been neglected too long in past governments," he said. "But it's now key to the survival of the country." Park said he would head an investment mission to the United States on June 8-12 to promote foreign investment. He also plans trips to Europe, Singapore and Japan. "We want to inform foreign investors of great opportunities here," Park said. "Asset values of local firms have gone down considerably due to the Korean won's depreciation." Asked about the outlook for exports, Park said the country was unlikely to see an export-led recovery. Exports are expected to stagger for the rest of this year, on a financial crisis in Southeast Asia and problems with importing raw materials, he said. South Korea's Free-On- Board (FOB) exports in May dropped 2.6 percent from a year ago, while imports on a cost, insurance and freight (CIF) basis plunged 37.5 percent. The country posted a customs-cleared trade surplus of $3.77 billion in May, against a $528 million deficit for the same month last year. Park said the ministry had no plans yet to revise the 1998 trade surplus target of $25 billion, although the surplus has already reached $16.08 billion in the first five months of this year. Last year, the nation posted a trade deficit of $8.5 billion. ($1 = 1,400 won) (Reuters:Financial- 06/01/98) KIA MOTORS: Union Goes on Strike -------------------------------- South Korea's Kia Motor Co. Ltd. union has launched a full strike in protest against a 50 percent cut in wages and unfair labor actions. A Kia Motors union statement said more than 14,000 union members are slated to participate in a rally Tuesday at the parent Kia Group building in the capital Seoul. Kia Motors labor union leader Koh Jung-hwan said: "We have done our best to protect Kia Motors from a third-party takeover. But the company is willing to risk everything we have worked for to attract investment from U.S. automaker Ford." The statement said Kia Motors has not paid bonuses amounting to about $6,500 per worker since the company went bankrupt last year. Kia Group defaulted on debts reaching more than $8.5 billion (12 trillion won) in July 1997. The former president of the beleaguered automaker was arrested in mid-May and is currently being held at Seoul Detention Center. Kim Sun-hong was is accused of fueling the nation's December foreign currency crisis by allowing Kia subsidiaries to cross-guarantee for bank loans and embezzling company funds to defend his managerial control. (UPI:International- 06/01/98) KICHEN WORK: Files for Bankruptcy Protection -------------------------------------------- Kichen Works, Inc. sought federal bankruptcy protection May 14 and last week closed five of its 13 stores. Lawrence Young, a York attorney representing Kichen Works, said Thursday that the outlook for the remaining locations including one at the West Manchester Mall is uncertain. Kichen Works' problem? Bigger stores were carrying smaller, less profitable ones, Young said. Also, customers can buy many items for less money at department stores. Large chains' buying and advertising power give them a considerable advantage over smaller operators. Prior to the closings, Kichen Works had 35 full-time and 49 part-time employees. They were spread among its Loucks Road headquarters and stores in Pennsylvania, Maryland, Virginia, West Virginia and Washington, D.C. The company's liabilities total about $2 million, most of that owed to a Williamsport bank, Young said. Assets total $1 million to $1.2 million. The immediate cause of the filing was a request by the Montgomery Mall in Bethesda, Md., that Kichen Works pay $50,000 in back rent by May 15. Meanwhile, Kichen Works thought it would be purchased by New York investors. While Kichen Works' owners considered closing the chain, they didn't because of the prospective sale, which fell through. Kichen Works' latest plan is to continue with its more profitable locations, all of which are offering discounts, Young said. The company laid off buyers, he said, and instead of buying more inventory will sell off goods from the stores it closed. "If we can't sell what we have," he said, "there's no sense in buying more." Kichen Works isn't alone in its struggles. On Wednesday, Lechters Inc., the nation's largest housewares chain, reported a first-quarter loss of $3.6 million, or 23 cents per share of common stock, on a slight increase in sales from the same period last year. During the first quarter, Harrison, N.J.-based Lechters opened three stores and closed 14 others. As of May 2, Lechters operated 615 stores in 44 states, down from 648 a year earlier. (York Daily Record - 05/29/98) MIDOPA: Possible Tax Evasion ---------------------------- Midopa Corporation, Ltd. announced that the company has filed for court receivership. The company is an operator of deparment stores that in 1995 reported assets of $756 million. In a move to uncover possible tax evasions and embezzlements of company assets, the National Tax Administration launched investigations into two bankrupt department stores of Midopa and New Core, according to officials. "Tax investigations are now underway to secure national tax claims and to see if company properties have been diverted by major shareholders and executives," an official at the administration announced. The probe came in the wake of a government policy announcement, which purported to criminally prosecute corporation owners or executives found to have committed illicit acts, including embezzlement. After going belly up last year, Midopa and New Core have requested court receivership and mediation. If owners or executives of the two department stores are discovered to have evaded taxes or diverted company assets to personal uses through illicit and falsified transactions, tax authorities plan to refer them to the prosecution for charges of fraud and others, officials said. (Korea Economic Weekly -06/01/98) MONTGOMERY WARD: Intermec Technologies Receives Contract -------------------------------------------------------- Intermec Technologies Corporation announced today it received a contract from Montgomery Ward for hand-held computers, scanners, wireless equipment and systems for installation in its distribution centers. Wards purchased more than 630 units of Intermec's hand-held T2425 TRAKKER(R) Antares(TM), a wireless data collection terminal with built-in bar code scanning capability. Other equipment provided under the contract includes a 2.4 GHz wireless local area network radio system, Intermec Model 0200 controllers, Model 0111 wireless transceiver stations, and Model 1517 BO5 long-range scanners. The equipment is used in conjunction with bar codes for tracking consumer goods during the receiving, storing and shipping processes at the distribution centers. Typically, the equipment enhances efficiency and productivity in warehouse and material handling environments. Intermec Technologies Corporation, a UNOVA, Inc. (NYSE: UNA) company, develops, manufactures and integrates automated data collection and mobile computing systems. (Montgomery Ward Bankruptcy News Issue 27 01-June-98) MONTGOMERY WARD: Files 10-Q Reporting First Quarter Loss -------------------------------------------------------- The Debtors filed their Form 10-Q with the SEC, reporting a $110,000,000 net loss on $991,000,000 in total revenue during the First Fiscal Quarter ending April 4, 1998. A full-text copy of the filing is available at no charge via the Internet at: http://www.sec.gov/Archives/edgar/data/836974/0000950131- 98-003384.txt OXFORD HEALTH PLANS: Proposes Annual Meeting --------------------------------------------- Oxford Health Plans, Inc. filed a Form 14A with the SEC announciong a proposed annual meeting, the nomination of four directors to the board, and certain stock proposals, as set forth in the following letter to stockholders: You are cordially invited to attend the 1998 Annual Meeting of Stockholders (the "Meeting") of Oxford Health Plans, Inc. (the "Company") to be held on July XX, 1998 at 10:00 a.m., local time, at the Hyatt Regency Greenwich, 1800 East Putnam Avenue, Old Greenwich, Connecticut 06870. This year, four directors are nominated for election to the Board. At the Meeting you will be asked to elect four Class I Directors to serve until the 2001 Annual Meeting. You will also be asked to consider proposals to (i) approve the vesting of voting rights in respect of the Company's Series B Cumulative Preferred Stock, par value $0.01 per share, and the issuance, subject to adjustment, of up to 6,730,000 shares of the Company's common stock, par value $0.01 per share ("Common Stock") upon exercise of the Company's Series B Warrants; (ii) amend the Oxford Health Plans, Inc. 1991 Stock Option Plan, as amended (the "1991 Stock Option Plan"), to, among other things, increase the number of shares of the Common Stock that can be issued under the 1991 Stock Option Plan from 21,580,000 shares to 25,580,000 shares; and (iii) act on two shareholder proposals. PETRO UNION: Announces Annual Meeting ------------------------------------- In a Form 14A filed with the SEC, Petro Union, Inc. dba Horizontal Ventures Inc. announces an Annual Meeting of the shareholders of Petro Union, Inc. d/b/a Horizontal Ventures, Inc. (the "Company") on Thursday, July 2, 1998, or at any adjournment or postponement thereof, to act upon the following: 1. To elect five directors to serve during the ensuing year or if the staggered terms proposal passes, until their successors are elected and qualified;. 2.To consider and act upon the adoption of the Company's Amended and Restated Articles of Incorporation, attached as Exhibit A, which containprovisions: a. Changing the name of the Company to Horizontal Ventures, Inc.; b. Providing for the number of Directors to be established by the Bylaws and further providing for staggered terms for the Company's Directors; c. Authorizing the issuance of 50,000,000 shares of no par value preferred stock with rights and preferences as the Board of Directors may determine; d. Changing voting requirements to: (i) reduce the voting requirement for shareholder actions initiated by the Board of Directors; and (ii) increase the voting requirement for shareholder actions not initiated by the Board of Directors; and e. Reducing the quorum requirement from shares representing a majority of the outstanding voting rights to shares representing one-third of the outstanding voting rights. 3. To approve the Petro Union, Inc. Non Qualified Stock Option Plan. 4. To consider and act upon a resolution authorizing the Board of Directors to issue up to 1,000,000 shares of the Company's no par value common stock for equity offerings both private and public and for the acquisition of assets or businesses, and to transact any other business which may properly come before the meeting at the time and place scheduled or, should the meeting be adjourned, at such time and place as it may be resumed. Details relating to these matters are set forth in the attached Proxy Statement. All shareholders of record as of the close of business on April 24, 1998 will be entitled to notice of, and to vote at, such meeting or at any adjournment or postponement thereof. QUALITY CARE: Case Summary -------------------------- Debtor: Quality Care Centers of Massachusetts, Inc. 200 Lake Street Suite 102 Peabody, Massachusetts 01960 Type of business: Health Care Facility and Nursing Home Court: District of Massachusetts - Eastern Division Case No.: 98-15123 Filed: 05/26/98 Chapter: 11 Debtor's Counsel: Sumner Darman Silverman & Kudisch PC Suite 1003 Boston, Massachusetts 02114 (617) 523-1711 Total Assets: $6,000,000 Total Liabilities: $12,000,000 No. of Amount Holders ------ ------- Fixed, liquidated secured debt $6,750,000 1 Contingent secured debt $0 0 Disputed secured debt $0 1 Unliquidated secured debt $0 0 Fixed, liquidated unsecured debt $4,400,000 250 Contingent unsecured debt $0 0 Disputed unsecured debt $0 0 Unliquidated unsecured debt $0 0 No. of shares of preferred stock 0 0 No. of shares of common stock 1 STRAWBERRIES INC: Seeks To Extend Exclusivity --------------------------------------------- Strawberries Inc., now known as Milford Resolution Inc., asked the court to extend the company's exclusive periods for filing a liquidating reorganization plan and soliciting plan acceptances to June 29 and Aug. 27, respectively. Strawberries stated that plan negotiations with the official committee of unsecured creditors will "be successfully concluded shortly; however, more time is needed to conclude negotiations and to document and finalize a plan of liquidation (and related disclosure statement) which is susceptible to confirmation by this Court." (Federal Filings Inc. 29-May-98) TOWN & COUNTRY: Wider 1998 Operating, Net Losses ------------------------------------------------ Town & Country Corp. said it anticipates that its operating loss for the year ended Feb. 22, will now be approximately $27.5 million, $6.1 million worse than the $21.4 million the company announced last month. Similarly, Town & Country also said that it now expects its net loss for the same period will be approximately $52.5 million, or $10.7 million wider than the expected net loss of $44.1 million also announced by the company last month. The company also stated its net sales would be $117.4 million rather than the previously anticipated $118.2 million. (Federal Filings Inc. 29-May-98) USMX OF ALASKA: Case Summary & 20 Largest Creditors -------------------------------------------------- Debtor: USMX of Alaska, Inc. 1560 Broadway Suite 880 Denver, Colorado Type of business: Mining of gold in Alaska Court: District of Colorado Case No.: 98-17143 Filed: 05/21/98 Chapter: 11 Debtor's Counsel: Carl E. Eklund LeBoeuf, Lamb, Greene & Macrae LLP 633 17th St. #2000 Denver, Colorado 80202 (303) 291-2600 Total Assets: $46,504,988 Total Liabilities: $42,913,791 No. of Amount Holders ------ ------- Fixed, liquidated secured debt $11,664,910 2 Contingent secured debt $0 0 Disputed secured debt $0 0 Unliquidated secured debt $0 0 Fixed, liquidated unsecured debt $31,248,881 100 Contingent unsecured debt $0 0 Disputed unsecured debt $0 0 Unliquidated unsecured debt $0 0 No. of shares of preferred stock 0 0 No. of shares of common stock 1,000 1 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ Serrott Corp. Trade $211,107 Statewide Svcs Trade $129,212 GCI Trade $84,648 Northern Air Cargo Trade $80,414 Southern Air Transport Trade $69,839 Lyntek Trade $44,275 North Pacific Mining Trade $34,449 Airport Equipment Trade $19,200 Lynden Air Freight Trade $19,000 Chemex Labs Trade $16,808 Secorp Industries Trade $16,260 VISA Trade $14,615 Lockton Companies Trade $12,323 Alaska Department of Nat Resources Trade $12,318 F.S. Air Trade $7,245 Guess & Rudd Trade $6,069 Counsel of Alaska Trade $6,000 Waukesha Alaska Trade $5,900 World Express Trade $5,567 Robertson Geoconsultants Trade $5,463 VORKUTAUGOL: To Go Bankrupt If Railway Picketing Continues ----------------------------------------------------------- Further picketing of the Vorkuta-Moscow railway can result in complete bankruptcy of the Vorkutaugol coal amalgamation, claimed here on Tuesday deputy chairman of the Vorkuta branch of the Russian coal miners' trade union Andrei Smirnov. In Smirnov's opinion, the railway blockade has already outlived itself. Nevertheless, railway picketing in Inta, situated in the north-east of European Russia, continues. Mines in Vorkuta, a city situated not far from Inta, stopped shipping coal: 37 trains with fuel clogged the railway. Coal is in short supply at the Cherepovets iron and steel works. It is also necessary for coke- chemical production in the Vologda Region. Steelmen threaten to buy coal in the Kuznetsk coal basin in Siberia. Speaking in an interview with Itar-Tass on Tuesday, chairman of the Russian Federation of Independent Trade Unions Mikhail Shmakov said that it is necessary to review drastically the system of coal sales. It is necessary to switch to direct contacts so that all profits for produced and sold coal remained at mines rather than lined the pockets of numerous intermediaries. It is also necessary to take other measures, including "a programme of real state support both for mines to be closed in order to create new jobs and for operating mines, for their retooling to make coal-mining profitable," Shmakov emphasised. The local Kominform news agency reports that Inta received for the time being 47 million roubles to pay debts in wages and annual leaves as well as payments to invalid miners. However, miners insist on transferring at least another 50 million. First deputy head of the Komi Republic Anatoli Karakchiev said on Tuesday at a ministerial meeting that "one develops an impression that nobody now controls the situation on the railway. "New demands, put forth by strikers, are unfeasible. Instead of 72 million roubles, they already demand 172 million and, besides, insist on a 40-million subsidy." "If the blockade is not lifted, Vorkuta mines may grind to a standstill," reported republican Minister of Industry, Transport and Communications Yevgeni Grunis. The situation is disquieting at the Vorgoshorskaya mine (biggest in the Komi Republic) where 300,000 tonnes of coal have been stockpiled, and there is a danger of its self-ignition. (ITARTASS-05/26/98) WINCOM: Files Bankruptcy Papers ------------------------------- The bankruptcy filing of an affiliate of Struthers Industries Inc. speaks volumes on the conditions of the companies -- not by what the filing includes, but by what is missing. Neal Tomlins, trustee for Struthers, filed bankruptcy papers for WINCOM Corp. on Thursday in Tulsa. WINCOM, a telecommunications company, is considered the most important asset of Struthers and its principal shareholder, WINCO Corp. Publicly traded Struthers and privately held WINCO filed for bankruptcy protection in March, and trustees have been appointed to direct them. Struthers was a Tulsa-based energy and dye company. It became a telecommunications holding company in a 1996 deal that brought it 100 percent ownership of WINCOM and made WINCO its principal shareholder. WINCOM, based in Century City, Calif., was formed to develop Interactive Video and Data Services licenses, which have been touted as the next wave in electronic gaming and public utility record keeping. (Tulsa World - 05/30/98) WINWARD: State Hospital Chain Closes Doors ------------------------------------------ Documents filed in bankruptcy court earlier this week in Shreveport indicate Winward Institutes owed creditors at least $7.2 million, including $4.5 million owed to the Health Care Financing Administration. The administration provides hospitals like Winward interim payments for Medicare patients. Annual cost reports revealed the program overpaid the hospital. Bankruptcy court officials ordered that the first money received from the hospital's reorganization of its debts go to pay past due wages for its workers. On Friday, the company asked the U.S. Bankruptcy Court in Shreveport to approve a $500,000 loan to cover costs ranging from payroll to patient care. However, Judge Stephen Callaway said it was too early in the Chapter 11 reorganization to allow such a loan, because it would put the lender first among Winward's creditors. As he left the federal courthouse, co-owner Willie Singleton said inquires from a couple of potential buyers left him with some hope of an infusion of cash. However, a previous buyout attempt failed. "The ultimate result is if we do not get the financing, we have to close down," he said. Winward hospitals in Pleasant Hill and New Orleans were closed, their administrators said Friday afternoon. Administrators in Alexandria could not be reached for comment. Wilson said area banks bounced his paycheck two weeks ago, and those of several other employees. As employees used hospital carts and bags to carry their belongings from the hospital, he thought about the employees' volunteer dinner earlier this month. (Advocate Baton Rouge -05/31/98) XINEX: Nearing Bankruptcy ------------------------- Xinex Network Inc said Friday that it will run out of cash this week unless it can come up with fresh finanacing. Xinex is negotiating with an unnamed company for an investment of C$3.6 mln. The prospect of bankruptcy sent Xinex shares on the Alberta Stock Exchange down 57% on Friday. The company specilaizes in software. (Copyright 1998 Resource News International - 06/01/98) Meetings, Conferences and Seminars ---------------------------------- May 31-June 5, 1998 COMMERICAL LAW LEAGUE OF AMERICA CLLA Credit Institute Marquette University, Milwaukee, Wisconsin Contact 1-312-781-2000 June 3-5, 1998 LEAGUE INTERNATIONAL FOR CREDITORS and COMMERCIAL LAW LEAGUE OF AMERICA 1998 International Conference Hotel Los Monteros, Marbella, Spain Contact 1-312-781-2000 June 3-6, 1998 ASSOCIATION OF INSOLVENCY ACCOUNTANTS 14th Annual Bankruptcy & Reorganization Conference Grand Hyatt Hotel, San Francisco, California Contact 1-541-858-1665 or aia@ccountry.net June 4-6, 1998 AMERICAN LAW INSTITUTE-AMERICAN BAR ASSOCIATION Fundamentals of Bankruptcy Law Charleston Place, Charleston, South Carolina Contact: 1-800-CLE-NEWS June 8-9, 1998 TURNAROUND MANAGEMENT ASSOCIATION Advanced Education Workshop & Legislative Conference Radisson Plaza, Charlotte, North Carolina Contact 1-312-857-7734 June 11-12, 1998 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. 1st Annual Conference on Corporate Reorganizations The Palmer House, Chicago, Illinois Contact 1-903-592-5169 or ram@ballistic.com June 11-14, 1998 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800 July 2-5, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact 1-770-535-7722 July 16-19, 1998 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Sea Crest Resort, Falmouth, Massachusetts Contact: 1-703-739-0800 July 23-24, 1998 THE PRACTICING LAW INSTITUTE How to Handle Consumer Bankruptcy Cases: A Practical Step-by-Step Guide PLI Conference Center, New York City Contact: 1-800-260-4PLI July 23-25, 1998 AMERICAN LAW INSTITUTE-AMERICAN BAR ASSOCIATION Chapter 11 Business Reorganizations (Advanced Course) Santa Fe, New Mexico Contact: 1-800-CLE-NEWS July 24-27, 1998 NATIONAL ASSOCIATION OF CHAPTER 13 TRUSTEES 33rd Annual Seminar Portland Marriott, Portland, Oregon Contact: 1-601-355-6661 July 24-29, 1998 COMMERICAL LAW LEAGUE OF AMERICA 104th Annual Convention Ritz Carlton, Amelia Island, Florida Contact: 1-312-781-2000 August 6-9, 1998 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop Daufuskie Island Club & Resort, Hilton Head, South Carolina Contact: 1-703-739-0800 September 9-13, 1998 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES Annual Convention Sheraton El Conquistador, Tuscon, Arizona Contact: 1-803-252-5646 September 17-20, 1998 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference The Inn at Loretta, Santa Fe, New Mexico Contact: 1-703-739-0800 September 17-20, 1998 COMMERCIAL LAW LEAGUE OF AMERICA Midwest Mid-Year Meeting Oak Brook Hills Resort & Hotel Oak Brook, Illinois Contact: 1-616-372-6500 September 21-23, 1998 STATES' ASSOCIATION OF BANKRUPTCY ATTORNEYS 7th Annual States' Taxation and Bankruptcy Conference Hotel Santa Fe, Santa Fe, New Mexico Contact: 1-505-827-0728 September 25-26, 1998 VIRGINIA CONTINUING LEGAL EDUCATION 13th Annual Mid-Atlantic Institute on Bankruptcy and Reorganization Practice Boar's Head Inn, Charlottesville, Virginia Contact: 1-800-979-8253 October 8-10, 1998 AMERICAN LEGAL INSTITUTE-AMERICAN BAR ASSOCIATION Real Estate Defaults, Workouts, and Reorganization Charleston, South Carolina Contact: 1-800-CLE-NEWS October 16-20, 1998 TURNAROUND MANAGEMENT ASSOCIATION 1998 Annual Conference The Westin Hotel, Chicago, Illinois Contact 1-312-857-7734 October 22-25, 1998 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 72nd Annual Meeting Wyndham Anatole Hotel, Dallas, Texas Contact 1-803-957-6225 November 30-December 1, 1998 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. 5th Annual Conference on Distressed Debt Plaza Hotel, New York, New York Contact 1-903-592-5169 or ram@ballistic.com December 3-5, 1998 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin La Paloma, Tuscon, Arizona Contact: 1-703-739-0800 February 18-21, 1998 COMMERICAL LAW LEAGUE OF AMERICA Annual Western District Meeting Monte Carlo Hotel & Casino Resort, Las Vegas, Nevada Contact 1-702-382-9558 April 26-27, 1999 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. 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