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/raid1/www/Hosts/bankrupt/TCR_Public/980903.MBXT R O U B L E D C O M P A N Y R E P O R T E R Thursday, September 3, 1998, Vol. 2, No. 173 Headlines AHERF: Taps Hunter & Associates AHERF: Committee Calls for Independent Oversight of Bankruptcy Case AMERICAN RICE: Hearing on Relief From Stay AMERICAN RICE: Meeting of Creditors BRUNO'S: Albertson's Outbid Kroger for 15 Locations CALDOR: Extensions of Exclusive Periods DOEHLER-JARVIS: Hearing to Consider Confirmation of Plan DOW CORNING: Given Until Sept. 9 to Hammer Out Details FRETTER: Global Settlement Must Be Modified GEOTEK: $1.2M License Sale To Industrial Gets Nod GRAND UNION: Embarks on Capital Development Plan HOMEOWNERS MORTGAGE: Seeks to Extend Exclusivity Periods ITALIAN OVEN: Three Restaurants Close KIA MOTORS: Ford Still Interested - Debt Too High MEDNET, MPC CORPORATION: Joint Plan Confirmed MEGO MORTGAGE: Files Report for Quarter Ended May 31, 1998 MOLTEN METAL: Court Names Trustee Amid Loan Default OLYMPIA & YORK: Case Summary PINNACLE MICRO: Favorable Response to Plan PREMIER LASER SYSTEMS: Report for Quarter Ended June 30 SCARSDALE REALTY: Case Summary & 20 Largest Creditors SCOOP INC: Taps Lobel & Opera, General Insolvency Counsel SEARCH FINANCIAL: Responds to Action Against Officers SHOPPING.COM: Out of Money- Wants to Raise $26 Million WESTMORELAND COAL: Funds Prefer Dismissal To Conversion ********* AHERF: Taps Hunter & Associates -------------------------------- On August 27, 1998, Allegheny Health Education & Research Foundation (AHERF) won court approval to retain consulting firm Hunter & Associates Management Services Inc. of St. Petersburg, Fla. While initially opposing Hunter's retention, the creditors' committee withdrew its opposition after AHERF limited the management consultant's retention to provide for termination upon the sale of the health system's Philadelphia-area hospitals. The committee continues to oppose the health system's proposed retention of Deloitte & Touche Consulting Group LLC. At AHERF's request, the U.S. Bankruptcy Court in Pittsburgh put off the hearing on Deloitte's retention until Sept. 4. (The Daily Bankruptcy Review and ABI Copyright c September 2, 1998) AHERF: Committee Calls for Independent Oversight of Bankruptcy Case --------------------------------------------------- The Committee for the University, an organization representing the faculty, students and alumni of Allegheny University of the Health Sciences, presented several resolutions to the board yesterday calling for an independent committee of the board to oversee the relationship between the university and its controlling member, Allegheny Health, Education and Research Foundation (AHERF) and for an investigation by the state attorney general and an independent examiner of the bankruptcy court into alleged inappropriate transfer of funds and loan transactions to AHERF executives. AHERF filed for bankruptcy earlier this summer. AMERICAN RICE: Hearing on Relief From Stay ------------------------------------------ A hearing will be held on September 21, 1998 on the motion filed by Rice Milling & Trading Investments, Ltd., ("RMTI") seeking relief from the automatic stay in the case of American Rice, Inc., debtor. RMTI initiated litigation in the US District Court for the Southern District of Texas, Houston Division, against American Rice, Inc. and others. Various counterclaims were filed thereafter. RMTI is seeking actual damages in excess of $23,400,000 including damages, interest and all other relief to which it is entitled. AMERICAN RICE: Meeting of Creditors ----------------------------------- A petition for Chapter 11 reorganization was filed in the case of American Rice Inc. and subsidiaries on August 11, 1998 in the U.S. Bankruptcy Court for the Southern District of Texas. A meeting of creditors is scheduled for September 18, 1998. BRUNO'S: Albertson's Outbid Kroger for 15 Locations --------------------------------------------------- In the Albertson's vs. The Kroger Company continuum, it is Albertson's on top, in more than one respect. First it bumped Kroger out of the top spot of US supermarket chains with its proposed merger with American Stores, and then it outbid its rival to buy 15 Bruno's locations sold in connection with Bruno's Chapter 11 case. The price for the 15 locations - $46.9 million, consisting of $35.9 million for non-inventory assets and $11 million for inventory. The winning bid was an increase of $1.5 million over the initial offer. (F&D Reports 2-Sept-98) CALDOR: Extensions of Exclusive Periods --------------------------------------- The Caldor Corporation, which has been languishing in a Chapter 11 reorganization proceeding since September 1995, has asked for and received, a six-month extension of its exclusive periods to propose a plan of reorganization and then solicit acceptances. The extensions run through March 1 and April 30, 1999, respectively, and were supported by all creditor constituencies. (F&D Reports 2-Sept-98) DOEHLER-JARVIS: Hearing to Consider Confirmation of Plan -------------------------------------------------------- The debtor, Doehler-Jarvis, Inc. published a notice in The Wall Street Journal on September 2, 1998 notifying holders of claims against or interests in the debtors that the court approved the Disclosure Statement for the Debtors' Plan and that the Confirmation Hearing will be held on October 14, 1998. DOW CORNING: Given Until Sept. 9 to Hammer Out Details ------------------------------------------------------ A federal bankruptcy judge has given attorneys in the Dow Corning Corp. breast-implant case until Sept. 9 to hammer out final details of a proposed $3.2 billion settlement. In setting the deadline today Judge Arthur Spector expressed disappointment that the company and lawyers for 170,000 women have yet to finalize the deal announced in outline form in July. Last week Spector learned the deal was in trouble. A court- appointed mediator told the judge talks were moving slowly, threatening Dow Corning's effort to emerge from Chapter 11 bankruptcy and the women's demands for product liability payments. Spector wants women claimants - who blame the company's silicone-gel implants for serious illnesses and disorders - to vote on a final plan as soon as possible. The judge had called all attorneys in the case to his Flint courtoom today to discuss the pace of negotiations and threatened to disclose details of the so-far, closed-door discussions. But several attorneys did not show up, blaming the strike against Northwest Airlines for upsetting travel plans. Spector could disclose the details at next week's hearing if the two sides fail to reach a final agreement. FRETTER: Global Settlement Must Be Modified ------------------------------------------- A key condition in the global settlement between Fretter, Dixons U.S. Holdings Inc., and others will not be met, and the parties plan to seek approval to modify the agreement. While the condition required Fretter's unsecured creditors to receive 45 cents on the dollar as part of the settlement, "that doesn't appear to be something that can be satisfied," a source said. The court will hear the motion to modify the deal in October. (Federal Filings Inc. 2-Sept-98) GEOTEK: $1.2M License Sale To Industrial Gets Nod ------------------------------------------------- Geotek Communications Inc.'s $1.2 million sale of certain Federal Communications Commission licenses to Industrial Communications & Electronics Inc. has received court approval. In April, Geotek agreed to sell Industrial two, 900 MHz, 10-channel trunked specialized mobile radio licenses the company had purchased from the FCC. "The Debtors are receiving fair consideration in the form of cash for the FCC licenses they are selling, and do not believe they would be able to obtain any greater or more immediate value by attempting to sell their FCC licenses to another party," Geotek said. (The Daily Bankruptcy Review and ABI Copyright c September 2, 1998) GRAND UNION: Embarks on Capital Development Plan ------------------------------------------------ The Grand Union Company, which emerged from bankruptcy last week, believes it is now financially stronger than at any time in the past ten years. It has cut some $600 million in high-cost debt from its balance sheet, reducing annual interest payments by about $72 million. The Company will now embark on a capital development plan with the construction of new stores, store renovations and enlargements of existing locations. Plans call for six to eight new stores each year, and the annual refurbishing of 15 to 17 stores over the next five years. In a positive sign, despite undergoing a major restructuring during its entire first quarter, Grand Union narrowed losses to $60.6 million in the three-month period ended July 18, compared with a loss of $79.2 million a year earlier. The latest quarter's income includes a one-time expense for its bankruptcy filing of $4.5 million and a charge of $1.7 million related to debt refinancing. (F&D Reports 2-Sept- 98) HOMEOWNERS MORTGAGE: Seeks to Extend Exclusivity Periods -------------------------------------------------------- Homeowners Mortgage & Equity, Inc., debtor, files a motion to extend exclusivity periods. The debtor's exclusive period for filing a plan of reorganization will expire on September 1, 1998. It is not possible for the debtor to finalize its discussions and any related negotiations with the interested entities and file a plan prior to September 1, 1998. The entities are in the process of conducting due diligence and negotiations will need to occur after completion of due diligence. The debtors also refer to the size and complexity of the case, and the fact that only four months have elapsed since the Petition Date. The debtors are seeking an extension of 65 days, to November 5, 1998 in order to allow sufficient time for the completion of discussions and for the debtor to file a plan. The debtors are seeking 65 days to January 4, 1998 to solicit acceptances thereto. ITALIAN OVEN: Three Restaurants Close ------------------------------------- Three Italian Oven restaurants that went out of business over the weekend employed about 100 people, according to company consultant Chuck Zegelbone. The company plans to ask the 11 remaining Italian Ovens in the region, all operated by franchisees, to try to find positions for the affected workers, he said. The three shuttered locations - in Edgewood, North Huntingdon and Greensburg - all were company-owned and losing money, Zegelbone said. Italian Oven, which at its peak had more than 100 restaurants, currently has 28 franchised locations and one company-owned restaurant in six states. Founded in Latrobe in 1989, Italian Oven filed for Chapter 11 bankruptcy protection in October 1996, less than a year after going public. The company's assets subsequently were sold to a Minneapolis-based investment firm. KIA MOTORS: Ford Still Interested - Debt Too High ------------------------------------------------- Ford Motor Co. said Tuesday it remains interested in buying Kia Motors Corp. and its affiliate Asia Motors Corp. , but the bankrupt South Korean firm's debt must be trimmed first. Kia earlier said an auction for the automaker had been aborted because all bidders failed to meet conditions of a sale. Ford and three South Korean automakers -- Hyundai Motor Co. Ltd. , Daewoo Motor Co. Ltd. and Samsung Group affiliate Samsung Motors Inc. -- submitted bids for Kia in August and the winner was supposed to be announced Tuesday. Ford spokesman John Spelich said "Further reduction of the debt is an absolute key aspect to this whole thing. That was one bit of unanimity amongst the bidders." He said Ford remains interested in buying Kia under the right circumstances because it would give the U.S. automaker a stronger entry into the Korean market, where its sales are weak, and provide the ability to make low- cost cars to sell in Asia. Ford sells the Kia-made Ford Aspire/Festiva small car in Asia, Spelich noted. Kia spokesman Geno Effler said all four bids required Kia's creditors to write off some of the combined 12.84 trillion won ($9.8 billion) in liabilities at Kia and Asia Motors, something the creditors have resisted. Also, Ford and Hyundai bid less than the minimum required bid. The creditors had offered lower interest rates and a longer repayment period on the debt. Ford, which along with its Japanese affiliate Mazda Motor Corp. owns 16.9 percent of Kia, and the other bidders say that is not good enough. Effler said Kia's main creditor, Korea Development Bank, and the bidders would try to settle on Sept. 10 how much of the debt would be written off. A second round of bids is tentatively scheduled to be submitted by Sept. 21 and the winner would be announced five days later. (Reuters:Financial-09/01/98) MEDNET, MPC CORPORATION: Joint Plan Confirmed --------------------------------------------- On August 12, 1998, the Honorable Linda B. Riegle of the United States Bankruptcy Court for the District of Nevada entered an Order Confirming Debtor's First Modified Joint Plan of Reorganization. The Order confirmed the Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code, as amended, dated July 1, 1998 of Mednet, MPC Corporation, Medi-Mail, Inc., Medi-Claim, Inc. and Medi- Phar, Inc., debtors. The Plan provides for the division of holders of claims and interests into eleven classes. Claims that are entitled to priority under Sections 507(a)(2)through (7) and (9) of the Bankruptcy Code are classified as Class 1 Claims. Secured claims of Foothill Capital Corp. are classified as Class 2 Claims. The claims of other secured creditors are classified as Class 3 Claims. The claims asserted by Bergen Brunswig Corporation against Mednet are classified as Class 4 Claims. The claims asserted by Bergen against Medi-Mail, Inc. are classified as Class 5 Claims. Certain general unsecured claims are classified as Class 6, Class 7, Class 8 and Class 9 Claims. Claims asserted by the holders of Mednet's preferred stock are classified as Class 10 Claims. Claims asserted by the holders of MedNet's common stock issued and outstanding prior to July 31, 1997 are classified as Class 11 Claims. Holders of Class 1 Claims shall be paid the "Allowed amount" (as such term is defined in the Plan) of such claim, including all applicable interest and other charges to which the holder of such claim may be entitled under applicable law or contract, to the extent permitted under the applicable provision of Section 507(a) of the Bankruptcy Code, in cash in accordance with the Plan. Pursuant to an agreement between the Debtors and Foothill, Foothill has agreed to accept a cash payment of $1,058,575 (of which $21,575 will be remitted by Foothill to Bergen) in full satisfaction of the Class 2 Claims. Holders of Class 3 Claims, at the option of the applicable Debtor, shall either (i) be paid in full in cash the "Allowed amount" of such claim in full satisfaction and discharge of such creditor's lien, (ii) receive deferred cash payments totaling the "Allowed amount" of such claim of a value as of the effective date of the Plan at least equal to the value of such creditor's interest in the Debtor's property securing such claim, and shall retain the lien on its collateral securing such claim until paid as provided in the Plan or (iii) will receive, pursuant to abandonment by the Debtor, possession of and the right to foreclose its lien on the collateral securing such claim. The Debtors have estimated that the members of this Class will receive payment of 100% of the present value of their "Allowed Secured Claims" as such term is defined in the Plan. The pre-petition claims (Class 4 Claims) of Bergen against Mednet shall be treated in accordance with the provisions of Article 4.04 of the Plan. Mednet and Bergen shall enter into an acquisition agreement whereby Bergen shall acquire all of the New Common Stock of Mednet as of the Effective Date. Fifty percent of the total pre- petition claims of Bergen against all of the Debtors shall be canceled in exchange for issuance of the New Common Stock in Mednet. The remaining 50% of Bergen's pre-petition claims against Mednet shall be discharged. The Debtors shall make a non-interest bearing, non- recourse, subordinated promissory note in the principal amount of $1.25 million for the benefit of the Trustee of a trust which will be created upon the Effective Date and out of which the distributions to creditors will be paid. Holders of Class 6, Class 7, Class 8 and Class 9 Claims generally shall share pari passu and pro rata in the payments under the Note and the Set Aside Amount (as defined in the Plan) in accordance with the Plan. All preferred stock of Mednet shall be canceled and be of no further force and effect. Holders of Class 10 Claims shall receive no distribution under the Plan unless Classes having priority over such interests have been paid in full. Once prior Classes have been paid in full, members of Class 10 shall receive all remaining property of the Debtor's estate until paid in full. All of the equity securities of the Debtors issued and outstanding prior to July 31, 1997 shall be canceled, extinguished and of no further force and effect as of the Effective Date of the Plan. On the Effective Date of the Plan, Bergen will loan Mednet an additional $250,000 which will be used by Mednet as consideration by Mednet to purchase 100% of the common stock issued by Medi-Claim, Inc., Medi-Phar, Inc. and Medi-Mail, Inc. pursuant to the Plan. Except for certain claims identified in the Plan, all payments will be made to creditors out of the Liquidating Trust. The Liquidating Trust shall take title to all pre- petition causes of action of the Debtors and the Note. In accordance with the Plan, the Liquidating Trust shall also take title to certain pre-petition accounts receivable of the Debtors. The official committee of general unsecured creditors of the Debtors, which committee was appointed pursuant to Section 1102 of the Bankruptcy Code, will designate or act as the trustee of the Liquidating Trust. $250,000 of the Note will be prepaid by the Debtors under the Plan. All of the Old Common Stock of Mednet shall be canceled, extinguished and of no further force and effect as of the Effective Date of the Plan. Mednet will issue 1,000 shares of common stock pursuant to the Plan to Bergen. No shares of New Common Stock will be reserved for future issuance. MEGO MORTGAGE: Files Report for Quarter Ended May 31, 1998 ----------------------------------------------------------- Mego Mortgage Corp. has historically operated on a negative cash flow basis. During the years ended August 31, 1996 and 1997 and the six months ended February 28, 1997 and 1998, the Company, primarily due to a substantial increase in loans originated and sold, used $15.3 million, $70.4 million, $39.6 million and $59.5 million of cash, respectively, principally funded from borrowings. As a result of a $32.5 million loss recognized by the Company for the six months ended February 28, 1998, and due to the fact that the Company was not in compliance with certain provisions of its warehouse and other debt agreements, the Company was restricted in its ability to incur additional indebtedness. As a consequence of its inability to borrow additional funds to make new loans, the Company substantially curtailed its loan originations. Loan originations for the three months ended May 31, 1998, February 28, 1998, November 30, 1997 and May 31, 1997 totaled $9.9 million, $111.3 million, $199.9 million and $173.9 million, respectively. A full-text copy of the filing is available via the Internet at: http://www.sec.gov/Archives/edgar/data/0000950144-98- 010299.txt MOLTEN METAL: Court Names Trustee Amid Loan Default --------------------------------------------------- The court appointed a Chapter 11 Trustee for Molten Metal after the company defaulted on its $20 million debtor-in- possession credit facility. The U.S. Bankruptcy Court in Boston approved the appointment of Stephen Gray of the Recovery Group, a Boston-based firm, as trustee last week. In an Aug. 21 notice of default and acceleration, lender Morgens Waterfall Vintiadis & Co. informed the environmental technology company of its default under the March 3 term loan agreement due to "the inability of the Borrowers to pay their post-petition debts as they mature." (Federal Filings Inc. 2-Sept-98) OLYMPIA & YORK: Case Summary ---------------------------- Debtor: Olympia & York Maiden Lane Company LLC World Financial Properties, L.P. 165 Broadway New York, New York 10006 Type of business: Limited Liability Company - ownership of land and improvements comprising a multi-tenant, 43-story office located at 59 Maiden Lane, New York, NY Court: Southern District of New York Case No.: 98B46167 Filed: 08/26/98 Chapter: 11 Debtor's Counsel: Paul D. Leake Weil Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153 (212) 310-8356 Total Assets: $54,713,883 Total Liabilities: $310,648,042 Unliquidated secured debt $0 Unliquidated unsecured debt $0 Liquidated Unsecured Debt $0 PINNACLE MICRO: Favorable Response to Plan ------------------------------------------ Pinnacle Micro, Inc. filed a Form 8-K with the SEC reporting that it has received favorable initial response to its out-of-court, voluntary Plan of Reorganization which was submitted to its unsecured creditors on or about July 28, 1998. As of August 22, 1998, the initial deadline for receipt of votes from unsecured creditors, approximately 33% of the unsecured creditors, representing approximately 31% of the total dollar amounts owed, had voted. The voting results were as follows: approximately 91% of the number of creditors voting on the Out-of-Court Plan voted in favor of the Plan, representing approximately 50% of the dollar amount of claims voting on the Plan. Based on discussions between Pinnacle's management and various unsecured creditors who have not yet voted, Pinnacle expects to receive additional favorable votes that will add substantially to the total dollar amount of favorable votes. Accordingly, Pinnacle and the Unsecured Creditors Committee have extended the final date for receipt of ballots to September 22, 1998. While the results of voting on the Out-of-Court Plan are favorable, Pinnacle has now been notified that three unsecured claimants, one an ex-employee and two who were previously consultants to the Company, have filed against Pinnacle an involuntary petition in an attempt to force Pinnacle into a Chapter 7 bankruptcy. Pinnacle intends to vigorously contest the involuntary filing on several grounds and, although there can be no assurance with respect to the outcome, believes that it will prevail with respect to the involuntary petition. If Pinnacle should be unsuccessful in contesting the involuntary petition, Pinnacle will exercise its right to convert the Chapter 7 proceeding into a Chapter 11 proceeding. In such a Chapter 11 proceeding, Pinnacle would immediately submit its Chapter 11 Plan and Disclosure Statement to the bankruptcy court. Pinnacle anticipates that the terms of its Chapter 11 Plan would be materially the same as the terms of its pre-negotiated Out-of-Court Plan that has received such a favorable response. Pinnacle has been advised that it could expect to obtain confirmation of its Chapter 11 Plan approximately 120 days after the filing of the Chapter 11 Plan, although the ability to obtain confirmation of a Chapter 11 Plan, and the time required to obtain the same, could be subject to many factors which would not be in Pinnacle's control. The current Out-of-Court Plan has the following significant provisions: 1. Pinnacle proposes to pay to unsecured creditors 100% of their valid claims out of future cash flows available to Pinnacle. 2. No fixed payments would be required to be made to unsecured creditors, except for a one percent (1%) annual distribution to unsecured creditors. Accordingly, payment of the full amount owed to unsecured creditors, and the time required to accomplish the same, would be completely dependent upon Pinnacle's future available cash flow. 3. No interest would accrue or be paid by Pinnacle on the amounts owed. 4. The claims of unsecured creditors would be subordinate to existing secured debt and any new senior debt as defined by the plan. The total indebtedness to unsecured creditors is approximately $17 million. Pinnacle's secured lender has continued to cooperate with Pinnacle since Pinnacle achieved a voluntary moratorium with its unsecured creditors over one year ago. Such cooperation may, however, be discontinued by the secured lender at any time. Pinnacle has been engaged in negotiations to obtain a new financing agreement with its secured lender and, although no assurance can be given with respect to the same, Pinnnacle believes that it will be successful in obtaining a new financing agreement. If such a financing agreement is obtained, Pinnacle anticipates that, if required, the financing agreement would be implemented as part of the pre-negotiated Chapter 11 Plan discussed above. PREMIER LASER SYSTEMS: Report for Quarter Ended June 30 -------------------------------------------------------- Premier Laser Systems Inc. reports to the SEC that the company has suffered recurring losses from operations and may continue to incur losses for the foreseeable future due to the significant costs anticipated to be incurred in connection with manufacturing, marketing and distributing its products. In addition, the Company intends to conduct continuing research and development activities, including regulatory submittals and clinical trials to develop additional applications for its technology. The Company operates in a highly competitive environment and is subject to all of the risks inherent in new business enterprises. The Company believes that its present liquid assets will be sufficient to meet its working capital requirements through at least March 31, 1999. The Company reported a net loss of ($4,745,020) on net sales for the quarter ended June 30, 1998 of $3,481,000. The company's net sales increased by 65% to $3,481,000 from $2,105,000 for the quarter ended June 30, 1997. SCARSDALE REALTY: Case Summary & 20 Largest Creditors ----------------------------------------------------- Debtor: Scarsdale Realty Partners, L.P. 66 Palmer Avenue, Suite 32 Bronxville NY 10708 Type of business: Owns Building and Land Located at 2 Overhill Road, Scarsdale, New York Court: Southern District of New York Case No.: 98B2227 Filed: 09/01/98 Chapter: 11 Debtor's Counsel: Angel & Frankel, P.C. 460 Park Avenue New York, New York 10022-1906 (212)752-8000 Total Assets: $2,468,192 Total Liabilities: $9,309,712 No. of Amount Holders ------ ------- Fixed, liquidated secured debt $5,301,225 1 Contingent secured debt $0 0 Disputed secured debt $0 0 Unliquidated secured debt $0 0 Fixed, liquidated unsecured debt $4,008,487 33 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 None 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ Overhill Realty LLC Promissory Note $3,500,000 Brozman-Archer Realty Management Fees $36,624; $4,685 Eric Goldschmidt Trade $25,595 Control Services Trade $23,377 Accor North America Trade $22,700 Fawn Heating & Cooling Trade $4,981 Every Supply Co. Trade $4,948 Gellis & Mellinger Trade $4,894 Arco Elevator Trade $3,425 Quality Mechanical Plumbing Trade $2,493 Suburban Carting Trade $2,284 Mintz Rosenfeld & Co. Trade $1,815 Takekozu Ianaba Trade $1,600 Crest Electric Trade $1,307 Dominic Arena Trade $1,307 Eastern Uniform Serv Trade $1,090 Fleetwood Lock Trade $1,078 Westchester County Dept. Trade $1,000 Aligned right Trade $763 Intercounty Contracting Trade $731 SCOOP INC: Taps Lobel & Opera, General Insolvency Counsel --------------------------------------------------------- Scoop, Inc., fka Karlsson-Del Ray Communications, Inc., and NewsMakers Information Services, Inc. will file its application for authority to employ Lobel & Opera PC as General Insolvency Counsel. SEARCH FINANCIAL: Responds to Action Against Officers ----------------------------------------------------- Search Financial Services Inc., responds to the emergency motion of hall Phoenix/Inwood Ltd. for permission to pursue causes of action against the officers and directors of Search Financial Services Inc. Hall/Phoenix is seeking permission to pursue actions to recover on the Director Notes; to pursue actions for declaratory judgment that the directors notes have not been released; and an order requiring the debtors to pay the premium necessary to keep the D&O policies in effect. The debtor states that Hall/Phoenix is inaccurate in most of its allegations, and that pursuing these claims through litigation will be disruptive and not in the best interest of the estate. SHOPPING.COM: Out of Money- Wants to Raise $26 Million ------------------------------------------------------ Internet retailer Shopping.com. It is going to the well once again. It's out of money and wants to raise another $26 million to stay in business through January 1999, according to a filing it made with the SEC. The Company is looking to raise the cash with a private placement offering. (F&D Reports 2-Sep-98) WESTMORELAND COAL: Funds Prefer Dismissal To Conversion ------------------------------------------------------- For once, Westmoreland Coal and the United Mine Workers of America Pension and Benefit Funds are sitting on the same side of the fence: they both oppose the equity committee's bid to convert the case to a Chapter 7 liquidation. Not yet willing to completely endorse the company's bid to dismiss the case, the funds have asserted that "conversion is plainly inappropriate, and that dismissal only should be considered on a much fuller record that includes proof of the Debtors' factual allegations, and with substantial restrictions and conditions." (Federal Filings Inc. 9-Sept- 98) ********* 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. ISSN 1520-9474. 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. 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