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/raid1/www/Hosts/bankrupt/TCR_Public/980619.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, June 19, 1998, Vol. 2, No. 120 Headlines 2CONNECT EXPRESS: Files Quarterly Report APPAREL AMERICA: Files for Chapter 11 Protection CAJUN ELECTRIC: SWEPCO to Appeal Disqualification of Bid CALIFORNIA ADVANTAGE: Files for Bankruptcy Protection CROWN BOOKS: May Consider Reorganization CROWN BOOKS: Reports Decreased First Quarter Results FPA MEDICAL: Agreement to Extend Waiver of Default FORSTMANN: Reports Results of Operations GANTOS: 14.9% Decrease in Same Store Sales for Quarter HARVEY ELECTRONICS: Reports Financial Statements HOMEPLACE STORES: Posts April Net Loss Of $4.9 Million ITHACA INDUSTRIES: Reports Sales for the First Quarter LAMONTS APPAREL: Reports Results of Operations LIBERTY HOUSE: Seeks Extension of Exclusivity MANHATTAN BAGEL: Announces Agreement for Israel MEDNET MPC CORP: Files Current Report NINE WEST: Reports Income for the First Quarter of 1998 PAYLESS CASHWAYS: Reports its First Profit in Over a Year PETRIE: Posts April Net Loss Of $2.8 Million SFUZZI'S: Creditors Asking for Eight Units UNITED HEALTHCARE: Signs Definitive Purchase Agreement WEINER'S STORES: Reports 4.7% Decline In Comparable Sales ********* 2CONNECT EXPRESS: Files Quarterly Report ---------------------------------------- 2Connect Express, Inc. reports net sales for the first quarter ended May 2, 1998 of $760,155 versus $403,373 during the comparable first quarter ended April 30, 1997. Gross loss for the first quarter ended May 2, 1998 was ($5,862) versus gross profit in the prior year comparable quarter ended April 30, 1997 of $110,419. The negative gross profit in first quarter 1998 was due to the retail store clearance sales and public auctions. Net loss for the first quarter ended May 2, 1998 was ($990,770) versus ($404,886) for the last year comparable quarter ended April 30, 1997. The net loss is primarily due to lower gross profit related to liquidation of merchandise inventory that was excess, related to stores being closed and customer returns of defective merchandise where vendor returns for credit were no longer possible due to the bankruptcy filing. Although the Company has now closed all but one store and reduced corporate headcount to skeleton levels, the Company anticipates that it will continue to incur costs, expenses and losses until, at the earliest, the Company emerges from bankruptcy, merges with Bobby Allison and establishes a number of stores generating sufficient revenue to offset its operating costs and costs of any continuing expansion. APPAREL AMERICA: Files for Chapter 11 Protection -------------------------------------------------- Apparel America Inc.,1411 Broadway, New York, NY 10018, a manufacturer and distributor of swim wear filed for Chapter 11 protection in the Southern District of New York on June 12, 1998. (Case No.: 98B44221) Debtor's Counsel is Marilyn Simon of Marilyn Simon & Associates, 300 Park Avenue South New York, NY 10003-1503. The company does business as Robby Len Fashions, Inc., Waverly Beachwear, Roxanne, Coco Reef, Sand Dollar, and Lenee. The court entered orders appointing Shustak Jalil & Heller as special corporate counsel and Winston & Strawn as special labor counsel to the debtor. The order was signed on June 12, 1998 scheduling a preliminary hearing to consider a factoring agreement with BNY Financial Corporation. The hearing is to be held on June 18, 1998 The Official Committee of Unsecured Creditors are as follows: Milliken and Company 1045 Avenue of the Americas New York, NY 10018 Miss Brenner, Inc. 211 Mt. Prospect Avenue Clifton, New Jersey Unite 1710 Broadway New York, NY 10019 Finova Capital Corporation 111 West 40th street New York, New York 10018 ILGWU National Retirement Fund 275 Seventh Avenue New York, NY 10001 Judge Arthur J. Gonzalez entered an order that that the time for filing the debtor's schedules of assets and liabilities, lists and statements of financial affairs and executory contracts is enlarged and extended for sixty days from June 12, 1998. CAJUN ELECTRIC: SWEPCO to Appeal Disqualification of Bid -------------------------------------------------------- Southwestern Electric Power Company officials said the company will appeal Tuesday's U.S. District Court ruling that disqualified SWEPCO's bid for Cajun Electric Power Cooperative. The District Court, disagreeing with the findings and conclusions of the Bankruptcy Court, reversed the Sept. 8, 1997, Bankruptcy Court order that confirmed SWEPCO's right to reimburse the group of seven cooperatives for $1 million in legal expenses, with court review to assure specific expenses are reasonable. "We will vigorously pursue an appeal of the District Court's decision," said SWEPCO President Mike Madison. "We strongly disagree with the District Court's reversal of the U.S. Bankruptcy Court on this issue. Last July, the Bankruptcy Court heard six days of evidence and arguments on the Cajun estate trustee's allegations that SWEPCO provided a total of $1 million to the cooperatives to buy their support for the SWEPCO plan. After the hearing, the court found from the overwhelming evidence that there was no impropriety on the part of SWEPCO or the seven cooperatives, and there was no credible evidence to the contrary. We believe that was the right decision." On Tuesday, the District Court disqualified the SWEPCO plan from the bankruptcy process and ordered the seven cooperatives to return the funds reimbursed by SWEPCO. The District Court judge also said he is requesting that the U.S. Attorney in the Middle District of Louisiana review the matter for possible violations of criminal law. "We believe our actions, consistent with the evidence presented in the Bankruptcy Court, were entirely proper. We will address any questions that may arise," Madison said. The seven cooperatives have been co-plan proponents with SWEPCO since the joint plan was filed in April 1996. They are Beauregard Electric Cooperative, Inc., Dixie Electric Membership Corp., Jefferson Davis Electric Cooperative, Inc., Northeast Louisiana Power Cooperative, Inc., South Louisiana Electric Cooperative Association, Valley Electric Membership Corp. and Washington-St. Tammany Electric Cooperative, Inc. SWEPCO's joint plan has been one of three proposed reorganization plans in the Cajun Electric bankruptcy. The other two plans are offered by (1) the trustee, who is supporting Louisiana Generating LLC, a partnership of NRG Energy Inc., Zeigler Coal Holding Co. and Southern Energy International; and (2) Enron Capital & Trade Resources and the Official Unsecured Creditors Committee. Louisiana Generating and Enron had joined in the trustee's action against SWEPCO and the cooperatives. The effect of the District Court decision, unless overturned on appeal, is to eliminate the proposed SWEPCO plan of reorganization from further consideration by the Bankruptcy Court during the confirmation proceedings. Southwestern Electric Power Co., based in Shreveport, La., is a subsidiary of Central and South West Corp. (NYSE: CSR), a Dallas-based public utility holding company. CALIFORNIA ADVANTAGE: Files for Bankruptcy Protection ----------------------------------------------------- California Advantage, started by the California Medical Association and 7,500 of its member physicians, filed for bankruptcy Wednesday, less than three years after it was founded. The privately held company based in Oakland lost $11 million as it failed to sign up as many patients and investors as it hoped. Despite seeking Chapter 11 protection in U.S. Bankruptcy Court in Oakland, California Advantage will liquidate, the company's attorney said. But liquidation will be gradual, allowing the company to carry out its existing contracts, some of which run until next spring. Managers said last year they hoped to sign up 3.3 million people 10 percent of California's population within a decade. But the company attracted only 6,000 subscribers, far below the 40,000 it said it needed to break even. California Advantage said it tended to draw subscribers who were somewhat sicker and costlier to treat than average because it offered partial payment for out-of-network doctors, including specialists. The company also had trouble attracting physicians to invest in the venture. Many of CMA's member doctors work for competing HMOs. Companies also balked because CMA did not want to sell a majority interest in the plan, giving up physician control. CROWN BOOKS: May Consider Reorganization ---------------------------------------- In its quarterly filing with the Securities and Exchange Commission, Crown Books Corp. said it has suffered substantial declines in financial performance and substantial deterioration of its business in recent years and is exploring alternatives for maintaining adequate liquidity, according to Reuters. The company will consider reorganization protection if it cannot acquire more funds. The company's principal vendor is only shipping inventory on a cash-before-delivery basis, Crown stated. CROWN BOOKS: Reports Decreased First Quarter Results ---------------------------------------------------- Crown Books Corp. reports sales of $66,000,000 for the 13 weeks ended May 2, 1998 a decrease of $543,000 compared to the 13 weeks ended May 3, 1997. Comparable sales (sales for stores open for 13 months) decreased 9.3% during the 13 weeks ended May 2, 1998. Sales for comparable Super Crown Books stores decreased 8.8% during the 13 weeks ended May 2, 1998. The decreases were primarily due to interruptions in the flow of merchandise inventory primarily as a result of the liquidity problems discussed above. The Company had a net loss of $5,938,000 in the 13 weeks ended May 2, 1998 compared to a net loss of $2,662,000 in the 13 weeks ended May 3, 1997 primarily as a result of the decline in comparable store sales and gross margins. FPA MEDICAL: Agreement to Extend Waiver of Default -------------------------------------------------- FPA Medical Management, Inc. (Nasdaq: FPAM) announced today that the administrative agent and its lenders on its current credit facility agreed to extend the waiver of any default or event of default from the previously announced date of June 11, 1998 to July 8, 1998. "We are pleased with the support from our banks whose cooperation is the cornerstone of our turnaround efforts," stated Stephen J. Dresnick, M.D., FACEP, FPA's President and Chief Executive Officer. "This waiver will allow the Company to focus on stabilizing our business and addressing our liquidity situation. We continue to meet and discuss potential financing with investors and lenders, including our current bank group," added Dresnick. A copy of the amendment, waiver and agreement among FPA, the lenders, the administrative agent and the arranger will be filed by the Company with the Securities and Exchange Commission. FPA Medical Management, Inc., is a national physician practice management organization that organizes and manages primary care physician networks to contract with HMOs and other prepaid insurance plans to provide physician and related health care services and provides contract management support services to hospital emergency departments. FORSTMANN: Reports Results of Operations ---------------------------------------- Forstmann & Co. Inc. reports net sales of $78.6 million for the 26 weeks ended May 3, 1998, a decrease of 18.1% from the comparable period in 1997. Total yards of fabric sold decreased 21.6% from the same period in 1997. However, the average per yard selling price increased to $7.55 per yard from $7.23 per yard due to shifts in product mix. Sales declined in all major product lines except for specialty fabric sales which increased by $1.2 million during the 1998 period when compared to the 1997 period. The Company expects sales revenue for fabric sales in fiscal year 1998 to be approximately 20% lower than in fiscal year 1997, exclusive of sales for Forstmann Apparel, Inc. in the Company's third and fourth quarter of fiscal year 1998. Gross profit decreased $3.6 million or 24.0% to $11.2 million in the 26 weeks ended May 3, 1998, and gross profit margin for the same was 14.3% compared to 15.4% for the same period in 1997. Net income for the 26 weeks ended May 3, 1998 was $0.2 million as compared to a net loss of $5.3 million in the same period in 1997. Net sales for the 1998 Second Quarter were $49.6 million, a decrease of 23.4% from the 1997 Second Quarter. GANTOS: 14.9% Decrease in Same Store Sales for Quarter ------------------------------------------------------ Gantos Inc. reports net sales for the thirteen weeks ended May 2, 1998 were approximately $39.1 million, a decrease of approximately $6.5 million, compared to net sales of approximately $45.6 million in the same period of the prior fiscal year. Net sales for stores in operation throughout both periods decreased 14.9%, or $6.7 million, for the first quarter of 1998 compared to the same period in the prior year. The 14.9% decrease in comparable store sales is comprised of a 13.6% decrease in unit sales, partially due to difficulties in obtaining merchandise from vendors resulting from the Company's current financial condition and the related tightening of trade credit, a 1.4% decrease in average sales dollars per unit, and an increase of 0.1% due to a change in merchandise mix. The company experienced a net loss of approximately $0.7 million, or $0.10 per share, in the first quarter of 1998 compared to net income of approximately $1.5 million, or $0.19 per share, in the first quarter of 1997. HARVEY ELECTRONICS: Reports Financial Statements ------------------------------------------------ Harvey Electronics Inc. reports that net income for the twenty-six weeks ended May 2, 1998 was $55,670 as compared to a net loss of $579,646 or ($.26) per share for the twenty-seven weeks ended May 3, 1997. The net loss for the thirteen weeks ended May 2, 1998 was reduced to $74,547 or ($.03)per share as compared to the net loss of $354,586 or ($.16) per share for the same period last year. Net sales for the twenty-six weeks ended May 2, 1998 increased approximately 9% or $742,000 from the twenty- seven weeks ended May 3, 1997, while same store sales for the six months ended May 2, 1998 increased 18% or $1,193,000 from the six months ended May 3, 1997. Net sales for the thirteen weeks ended May 2, 1998 increased approximately 12% or $439,000 from the same quarter in 1997, while comparable store sales for the thirteen weeks increased approximately 15% or $450,000 from the same quarter last year. On November 13, 1996, the Company emerged from its Chapter 11 Bankruptcy proceeding. HOMEPLACE STORES: Posts April Net Loss Of $4.9 Million ------------------------------------------------------ HomePlace Stores Inc. posted a net loss of more than $4.9 million on net revenues of nearly $26.8 million during April. Gross profit totaled approximately $11.2 million and the home-fashion superstore chain recorded a $2.3 million operating loss for the month. In March, the retailer lost more than $2.8 million on net revenues of $38.4 million. (The Daily Bankruptcy Review Copyright c June 18, 1998 - ABI 18-June-98) ITHACA INDUSTRIES: Reports Sales for the First Quarter ----------------------------------------------------- Ithaca Industries Inc. reports an increase in net sales from $58.7 million for the thirteen weeks ended May 3, 1997 to $60.4 million (2.9%) for the thirteen weeks ended May 2, 1998. The sales increase reflected the results of Glendale Hosiery, which was acquired on March 24, 1998. During this year's first quarter the Glendale sales were $3.8 million. The company reported a net loss for the thirteen week period ending May 2, 1998 of $604,000. Gross profit for the first quarter of fiscal 1999 was 12.8%. Included in this year's first quarter was $700 million, or 1.2% in costs for the closing of the Company's Robbins, NC hosiery plant. Without this one-time non- recurring cost, this year's gross margin would have equaled last year's gross margin of n14.0%. Selling, general and administrative expenses for the first quarter of fiscal 1999 increased to $7.0 million from $6.8 million (2.9%) last year primarily due to higher sales volume. As a percentage of net sales, this year's 11.6% was the same as the prior year. Operating profit decreased to $0.7 million for the first quarter of fiscal 1999 from $1.4 million for the comparable period last year primarily due to the lower gross profit. LAMONTS APPAREL: Reports Results of Operations ---------------------------------------------- Lamonts Apparel, Inc. recorded a net loss of $2.8 million for the 1st Quarter 1998, compared to a net loss of $4.8 million for the 1st Quarter 1997. Comparable store revenues (i.e., stores open since the beginning of each of the periods presented)of $39.5 million for the 1st Quarter 1998 increased $1.8 million or 4.8% from $37.7 million for the 1st Quarter 1997. Comparable store revenues were equal to total store revenues for the 1st Quarter 1998 and for the 1st Quarter 1997. Management believes that revenues have increased due to higher average inventory levels and continued improvement in the quality of the merchandise offered in the stores compared to the prior period. Management cautions that there can be no assurance that a continuation of such factors will increase revenues in future periods. LIBERTY HOUSE: Seeks Extension of Exclusivity --------------------------------------------- Liberty House, Inc. seeks an extension of the periods to file a plan and solicit acceptances thereof until March 31, 1999 and May 31, 1999 respectively. The company states that its case is large and complex, and that is subject to large seasonal variations. Liberty House and its creditors need a reasonable opportunity to evaluate Liberty House's response to economic changes. The company projects that implementation of its business plan will take more than a year and that this schedule is reasonable. Liberty house states that it has made much progress toward reorganization, and has obtained DIP financing, and negotiated with creditors. MANHATTAN BAGEL: Announces Agreement for Israel ----------------------------------------------- In its initial move overseas, Manhattan Bagel Company, Inc., (Nasdaq: BGLQE) today announced that it has signed a master franchise agreement for Israel. The agreement calls for master franchisor International Management Ventures, Inc. (IMV) to open a minimum of 15 Manhattan Bagel locations in Israel over the next five years. IMV, which is headquartered in West Palm Beach, Fla., expects to begin opening stores this August, beginning with a location in Herzlia Pituach, considered Israel's "Silicon Valley." The master franchisor's Israeli operations will also be based in that city. The agreement would make Manhattan Bagel the first major American bagel store chain to penetrate the Israeli market. At this time, there are no nationwide bagel chains in Israel. IMV, which plans to own and operate the stores, was also designated as the Manhattan Bagel manufacturing licensee for Israel. Under the manufacturing agreement, IMV will produce Manhattan Bagel branded cream cheese spreads and frozen bagel dough, using the Company's proprietary recipes. In addition to opening Manhattan Bagel stores, IMV and its Israeli affiliate, MBI Restaurant Group Ltd., plan to develop a nationwide wholesale network. The wholesale operation will primarily target Israeli supermarket chains, which would retail Manhattan Bagel bagels and cheese spreads through in-store Manhattan Bagel shops or branded cases. MEDNET MPC CORP: Files Current Report ------------------------------------- Mednet MPC Corp. reports to the SEC that on June 11, 1998, Judge Linda B. Riegle of the United States Bankruptcy Court for the District of Nevada entered a Stipulated Order To Continue Hearing Date. The Order adjourned the hearing date of the adversary proceeding referenced therein until August 12, 1998 and extended the Amended Order Concerning Trading in Mednet Securities entered January 6, 1998, to the Trial Date and any continued Trial Date of this adversary proceeding. The Trading Order imposed certain restrictions on the trading of Mednet, MPC Corporation's equity securities to preserve Mednet's net operating loss carryforwards. NINE WEST: Reports Income for the First Quarter of 1998 ------------------------------------------------------- Nine West Group, Inc. reports that net income for the first quarter of 1998 was $7.3 million, or $0.20 per diluted share, a 58.4% decrease from net income of $17.5 million, or $0.48 per diluted share, for the first quarter of 1997. The Company anticipates that net revenues and operating margins for 1998 will continue to be negatively impacted by the factors which adversely affected the Company's net revenues and operating margins during the first quarter of 1998, including weakness in the domestic and international retail footwear markets. In addition, the Company anticipates that its operating margins for 1998 will continue to be negatively impacted by the shift in the sales mix towards retail operations which provide higher gross profit margins but also carry higher selling, general and administrative expense ("SG&A") margins than wholesale operations. A full-text copy of the filing is available via the Internet at: http://www.sec.gov/Archives/edgar/data/0000887124-98- 000011.txt PAYLESS CASHWAYS: Reports its First Profit in Over a Year --------------------------------------------------------- Payless Cashways Inc. reported its first profit in a year and a half. The company attributed the profit mainly to lowered administrative expenses because of downsizing and to lowered interest charges because much of the company's debt was sliced off in the Chapter 11 bankruptcy procedure. Although the net income for the quarter that ended May 30 was only $732,000, it was a vast improvement over the $13.2 million net loss in the same quarter last year. Last year's loss was greatly exaggerated by a complicated tax provision. Sales in the second quarter were disappointing, which the company said resulted mainly from a combination of poor weather, depressed wood prices and the lingering effects of the Chapter 11 proceedings. Net sales of $505.9 million decreased 23.5 percent from last year's second quarter, but the company also shuttered 30 stores since then. Same-store sales - or sales at the stores that were open both last year and this - declined 13.2 percent. The EBITDA, was $19.7 million for the quarter, down from last year's $28.2 million. For the first half of 1998, the company reported a net loss of $24.2 million, compared with a net loss of $21.4 million for the first half of 1997. First-half sales decreased 22 percent to $900 million. Same-store sales decreased 10.9 percent. (Kansas City Star; 06/17/98) PETRIE: Posts April Net Loss Of $2.8 Million -------------------------------------------- Petrie Retail Inc. posted a net loss of more than $2.8 million on net sales of about $29.9 million during April. Gross profit totaled $13.4 million and the women's apparel retailer's EBITDA was approximately $1.9 million for the month. In March, Petrie lost nearly $4.9 million on net revenues of $34.6 million. (The Daily Bankruptcy Review Copyright c June 18, 1998 - ABI 18-June-98) SFUZZI'S: Creditors Asking for Eight Units ------------------------------------------ The creditors of defunct Sfuzzi's restaurants are seeking full payment of a promissory note used to purchase the glitzy eateries two years ago. Lawyers for Sfuzzi Liquidating Co. on June 1 asked the U.S. Bankruptcy Court in Dallas to force subsidiaries of Toscorp Inc. into Chapter 11 bankruptcy reorganization. Toscorp is a Manhattan-based restaurant company that operates Coco Pazzo and other restaurants. The involuntary bankruptcy petitions were filed against New C.P. Inc., formerly Sfuzzi Inc., and seven other subsidiaries that Toscorp acquired from Sfuzzi in a 1996 bankruptcy auction. The move came after the Toscorp subsidiaries failed to make a quarterly interest payment in December. The Toscorp subsidiaries still owe Sfuzzi's creditors about $4.25 million of a $6.1 million promissory note, according to attorney Steve McCartin of Gardere & Wynne L.L.P., representing the creditors. The Toscorp subsidiaries have until June 24 to respond to the petition. A Toscorp spokesman said the company planned to file a motion to dismiss by the end of the week. He also said Toscorp would seek "damages and sanctions." The Toscorp spokesman said the company's existing restaurants are profitable and primed for expansion. At the time of the Sfuzzi purchase, Toscorp reported 1995 revenue of $22 million. Led by well-known restaurateur Pino Luongo, 10-year-old Toscorp operates 18 restaurants nationwide under the Coco Pazzo, Tuscan Square, Le Madri, Il Toscanccio and Sapore di Mare brands. It also maintains several Sfuzzi restaurants, which are being converted into Coco Pazzos, said Chuck Mirarchi, Toscorp communications director. Toscorp had purchased the Sfuzzi chain in 1996 during a court-administered bankruptcy auction for about $9 million. In return for the Sfuzzi restaurants, Toscorp agreed to give Sfuzzi's creditors a three-year, $6.1 million promissory note and to assume about $3 million in taxes, fees and administrative costs. Cornerstone Equity Investors in Manhattan - which has also been a silent equity partner in concepts like Bruegger's Bagels and Taco Cabana - helped finance the deal. Sfuzzi had a negative net worth when it filed for Chapter 11 bankruptcy protection in August 1995, listing liabilities of $25 million and assets of $20 million. (Dallas Business Journal; 06/12/98) UNITED HEALTHCARE: Signs Definitive Purchase Agreement ------------------------------------------------------ United HealthCare Services, Inc., a subsidiary of United HealthCare Corporation and HealthPartners of Arizona, Inc. announced that they have reached a definitive agreement under which United HealthCare Services, Inc. will acquire HPA. The sale is subject to regulatory approvals and is expected to close this fall. Terms of the cash transaction were not disclosed at this time. The sale includes the following HPA subsidiaries: HealthPartners Health Plans, Inc.; Arizona Physicians IPA, Inc., an Arizona Health Care Cost Containment System (AHCCCS) Health Plan; HealthPartners Administrators, Inc.; and HealthPartners Insurance Company. In 1995, Southern Arizona Independent Physicians, Inc. and the wholly-owned managed care subsidiaries of Samaritan Health System and TMC HealthCare merged to create HPA, a holding company owned by TMC HealthCare, Samaritan Health System and the Southern Arizona Independent Physicians Trust. HPA is not affiliated in any way with HealthPartners, Inc., a Minnesota-based managed care organization. WEINER'S STORES: Reports 4.7% Decline In Comparable Sales --------------------------------------------------------- In the thirteen weeks ended May 2, 1998, Weiners' Stores Inc. reports a decrease of 1.8% in net sales to $61,579,000 from $62,686,000 in the first quarter of 1997. The decline is primarily attributable to a 4.7% decrease in comparable stores' sales and the closing of seven stores in the fourth quarter of 1997 offset by the new store sales. The decline in comparable stores' sales is primarily attributable to the Company's effort to stabilize its price points with fewer markdown goods. The Company's net income for the first quarter of 1998 was $604,000 compared to a net loss of $87,000 for the first quarter of 1997. Net income per common share for the first quarter of 1998 was $0.03 per common share. The Company adopted "fresh start" accounting upon its emergence from Chapter 11 reorganization. ********* 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 * * *