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/raid1/www/Hosts/bankrupt/TCR_Public/980908.MBXT R O U B L E D C O M P A N Y R E P O R T E R Tuesday, September 8, 1998, Vol. 2, No. 175 Headlines 2CONNECT EXPRESS: Notice of Claims Bar Date AHERF: Ouster Shocked Top Lawyer AMERICAN PAD: Announces First Step of Restructuring AMERICAN RICE: Negotiating New Four-Month DIP Pact ASPEN MOUNTAIN AIR: Reducing Fleet of Aircraft BLACKTHORNE ESTATES: Plan Accepted DOEHLER-JARVIS: Needs Time to Assume or Reject Leases DOMINION BRIDGE: Closes Quebec Shipyard HARRAH'S JAZZ: Still No Opening Date HOMEPLACE STORES: Seeks $1.3M Confirmation Fee For New CEO HOMEOWNERS MORTGAGE: HomeCapital Disputes $84.9M Claim INTERNATIONAL WIRELESS: Files for Chapter 11 LEVITZ FURNITURE: Needs Time to Assume or Reject Leases LIFEONE: Challenges Involuntary Filing by Debenture Holders MOBILEMEDIA: Arch Modifies Merger Agreement MOBILEMEDIA: Completes Tower Sale to Pinnacle MONTGOMERY WARD: Seeks To Sell 2 Properties For $4M OXFORD HEALTH: Accreditation Rank Drops PARTY WORLD: Seeks Order Appointing Responsible Person PETRIE RETAIL: Wins Nod For $4.5M Interim CIT DIP Pact Use TENNEY ENGINEERING: Files For Bankruptcy Protection WINTERSILKS,INC: Seeks To Increase Post-Petition Financing Meetings, Conferences and Seminars ********* 2CONNECT EXPRESS: Notice of Claims Bar Date ------------------------------------------- In accordance with the United States Bankruptcy Court for the Southern District of Florida, any and all creditors, shareholders and parties in interest who have not received prior statutory notice of the Chapter 11 bankruptcy proceedings of 2Connect Express, Inc. shall have through and including September 28, 1998 within which to file any and all claims against or interests in 2Connect Express, Inc. at the United States Bankruptcy Court for the Southern District of Florida, United States Courthouse, 299 East Broward Blvd., Ft. Lauderdale, Florida 33301. AHERF: Ouster Shocked Top Lawyer -------------------------------- The Pittsburgh Post-Gazette reports on September 2, 1998 that a former top Allegheny Health Education and Research Foundation executive yesterday expressed shock over her ouster, befuddlement over the institution's rapid collapse, and disappointment that Mellon Bank and other lenders demanded repayment of an $87 million loan in April, hastening the foundation's plunge into bankruptcy. Nancy A. Wynstra, who until last Friday served as AHERF's general counsel and executive vice president, said she had been wondering what she might be doing a year from now when, out of the blue, AHERF President Anthony Sanzo told her she was being fired. "I had not truly anticipated leaving Allegheny before sometime next year," Wynstra said when contacted at her home yesterday. "It would be fair to to say that I'm surprised that I'm no longer there. I thought I was a valued member of the team. In a memo informing the health care foundation's executives of Wynstra's dismissal, Sanzo said AHERF "will be better served by a reconfigured legal department that utilizes the talent of both internal and external counsel. Asked through a spokesman to elaborate, Sanzo declined. Wynstra, 56, had been among a close circle of executives who helped guide the expansion of Allegheny General Hospital and its parent company over the past decade. The group included former AHERF President Sherif Abdelhak and Chief Financial Officer David McConnell, both of whom were forced out in the spring. Wynstra was lured to the hospital company from a Chicago medical center in 1983 to set up and run its in-house legal department. AMERICAN PAD: Announces First Step of Restructuring --------------------------------------------------- American Pad & Paper Company (NYSE: AGP)(AP&P) announced on August 17, 1998 the first step in its restructuring plan discussed in the release of second quarter results. AP&P will restructure its manufacturing facilities serving the continuous forms markets. The restructuring includes consolidating production of its continuous forms from six facilities into two low cost, state-of-the-art facilities. AP&P expects the consolidation to reduce operating expenses and yield significant annual savings. Further details including the costs to accomplish the consolidation will come with the release of third quarter results. This reorganization reflects a portion of the previously announced restructuring charges to be recorded in the third quarter. "Concentrating our efforts with our two most experienced and cost-effective facilities will allow us to better service this market," said James W. Swent, III, Chief Executive Officer of AP&P. "These moves will reduce costs, improve margins, improve customer service, and better balance manufacturing capacity to market demands." AMERICAN RICE: Negotiating New Four-Month DIP Pact -------------------------------------------------- In anticipation of selling its olive business, American Rice is negotiating a new, scaled-down financing agreement with its bank group, led by First Union National Bank. American Rice is seeking a four-month debtor-in- possession facility that provides "substantially less" availability than the current $85 million DIP pact, due to the impending sale of the olive portion of the company's business. The lenders have extended the existing financing agreement through late next week. By the time the new DIP agreement matures, American Rice hopes to have a consensual reorganization plan and half of the Chapter 11 case completed. (Federal Filings Inc. 4-Sep-98) ASPEN MOUNTAIN AIR: Reducing Fleet of Aircraft ---------------------------------------------- Following a decision to voluntarily reorganize in Chapter 11 last month, Aspen Mountain Air said today that it will reduce its fleet of aircraft to a level that will enable the company to focus service on key routes in order to achieve future success and profitability. Ron Stone, CEO, stated "In order to successfully restructure the Airline, we must reorganize the route structure and reconfigure our fleet. With our current assets, we fully intend to capitalize on all opportunities in the marketplace." BLACKTHORNE ESTATES: Plan Accepted ---------------------------------- After more than 10 months in the financial limbo of Chapter 11 bankruptcy protection, a reorganization/settlement plan for a mammoth Penn Township development has been approved. U.S. Bankruptcy Judge Judith K. Fitzgerald recently accepted the plan for Blackthorne Estates submitted by attorneys for Robert N. Cawood, the principal owner. The reorganization/settlement is based upon a loan of as much as $1.5 million to Cawood from an unnamed bank. It also is contingent upon closing on the loan by Oct. 12, Fitzgerald warned. Otherwise, she said the case would become a Chapter 7 filing which could result in a court- ordered sale of Blackthorne's assets. Fitzgerald agreed with Salzman's request to maintain the confidentiality of Cawood's new financial backer. David B. Salzman, one of Cawood's attorneys, said the loan would allow Cawood to pay off about $600,000 in existing liens. The rest will be used to fund the reorganization/settlement plan. Depending upon when they demand their money, creditors will be paid anywhere from 36 cents to 100 cents on the dollar, Salzman said. Cawood was recuperating from an accident and did not attend the reorganization/settlement hearing, but Salzman said his client agreed to finance his personal holdings to obtain the loan. Blackthorne, a much-ballyhooed proposed 315-acre development of 500 homes plus golf course and other recreational amenities, ran into a host of financial problems after only three houses were built. Cawood filed for Chapter 11 protection Oct. 1 when he listed $5.4 million in assets and $6.5 million in liabilities. Work at Blackthorne essentially stopped then until this summer when work on the golf course resumed. (Pittsburgh Post-Gazette; 09/02/98) DOEHLER-JARVIS: Needs Time to Assume or Reject Leases ----------------------------------------------------- The debtors, Doehler-Jarvis, Inc., and its affiliates, are seeking an order further extending the time period within which the debtors may assume or reject their leases of nonresidential real property. The debtors seek entry of an order extending for a period of 60 additional days the time within which the debtors may assume or reject leases of nonresidential real property to which any of the debtors is a lessee. The debtors have 12unexpired leases of nonresidential real property in 7 states. The leases constitute valuable assets of the debtors' estates. The debtors are presently in the process of soliciting votes on the plan and anticipate the plan being confirmed in October 1998. Pursuant to the plan, the debtors will determine which of the leases they will assume and which ones they will reject. An extension of time to assume or reject the leases until November 6, 1998 would enable the plan process to take effect and resolve these issues. On the other hand, forcing the debtors prematurely to make determinations about assumption and rejection could well subject the debtors and their estates to significant and unnecessary administrative expense claims. DOMINION BRIDGE: Closes Quebec Shipyard --------------------------------------- Dominion Bridge Corp. shut down its two remaining shipyards in Quebec Thursday, after the provincial government refused to bail it out. About 1,100 workers are now unemployed at Quebec City-based MIL Davie shipyard and about 300 are out of work at a Montreal area shipyard. Workers at the Lachine shipyard, near Montreal, had walked off the job Wednesday, fearing they would not be paid. They demonstrated in the streets of Montreal Thursday. "Following the rejection by the government of Quebec of the financial restructuring plan for its Amethyst project, Davie Industries had no other choice but to immediately shut down its operations in Quebec and Levis until further notice," Dominion Bridge said in a statement. It said it was discussing alternative ways of insuring the survival of Davie Industries and the shipyards with representatives of the financial community and government. Dominion Bridge put itself under the bankruptcy protection on August 11, and a cloud emerged over its flagship Quebec City-based MIL Davie shipyard last week after it said an international consortium did not foot a C$32 million payment for the construction of two offshore drilling platforms. "If they clean the mess and they have a good restarting project, we have all our regular government programs that would be usable in terms of guarantees to export," Quebec Finance Minister Bernard Landry told reporters Thursday, after meeting with Dominion Bridge and union officials. Dominion Bridge's problems come two years after it bought the MIL Davie shipyard for C$1 from the government of this French-speaking province. The Quebec Liberal opposition in the provincial legislature called for an investigation of the deal. In 1991, the governments of Canada and Quebec bailed out MIL Davie with more than C$300 million. Landry said Wednesday the only solution to save the MIL Davie shipyard would be for Dominion Bridge to declare bankruptcy. Asked Thursday if Quebec was looking at a consortium that could take over Dominion's Bridge operations, Landry said he was looking at all sort of scenarios. He, however, said the Montreal shipyard was a lost cause. (1$=$1.54 Canadian){Reuters:International-09/03/98) HARRAH'S JAZZ: Still No Opening Date ------------------------------------ After more than 21/2 years of bankruptcy reorganization, the New Orleans land casino does not have a projected opening date, although its primary partner says it is moving toward one. The casino could be ready for gambling about a year after it emerges from federal bankruptcy court, a spokesman for Harrah's Entertainment Inc. said Wednesday. The project's partners sought refuge in bankruptcy court in 1995 after closing their temporary gambling hall and halting construction on the permanent site at the foot of New Orleans' Canal Street. Currently, the Louisiana Gaming Control Board is awaiting the completion of background checks on the primary officers of Jazz Casino Corp., the new company that will own the project. Harrah's Entertainment, which held majority interest in now-bankrupt Harrah's Jazz Co., will be a minority partner in Jazz Casino and will manage the project. Owners of $430 million in Harrah's Jazz junk bonds will hold majority interest. "We're not really putting a projected opening date on it until it comes out of bankruptcy, although the expectation is within a year after that takes place," said Harrah's Entertainment spokesman Ralph Berry. Mr. Berry said the project is working on a fall timetable for completing the bankruptcy court proceedings. After that, construction work will resume on the unfinished casino building at the edge of the French Quarter. A late 1999 opening date would mean that more than seven years passed from the time the Legislature legalized the casino to the first time the permanent casino opens its doors to the public. On Thursday, U.S. Bankruptcy Judge T.M. Brahney III will be asked to approve a financing change for the revived project. Harrah's Entertainment wants to provide $12.5 million of new financing, while guaranteeing a bank loan for another $12.5 million. The money will be used in part for design changes and equipment enhancements to meet competition from other casinos, such as those on the Mississippi Gulf Coast, according to a disclosure statement filed in court. Some industry analysts have said that large hotel-casino resorts on the coast will provide stiff competition for the New Orleans casino. The original project collapsed after New Orleans failed to meet Wall Street projections from the early 1990s of becoming a destination point for tourist-gamblers. Harrah's Entertainment has agreed to forgo interest payments on $40.1 million that the company has lent the project to keep it alive in bankruptcy. That will save the project about $5.5 million. The construction cost of finishing the casino has risen from $129.4 million to $140.7 million, the disclosure statement said. If Judge Brahney approves, creditors will vote on the proposal, a process expected to take five to six weeks. (Dallas Morning News - 09/03/98 HOMEPLACE STORES: Seeks $1.3M Confirmation Fee For New CEO ---------------------------------------------------------- HomePlace Stores Inc. is asking the court to approve an employment agreement for its new chief executive officer that includes a $1.25 million confirmation fee if a reorganization plan goes into effect by Dec. 30, 1999, additional bonuses, and a $450,000 annual salary. Lawrence Pollock joined HomePlace in January 1997 as chief operating officer and became president in October 1997. He would replace founder Robert Hurwitz as CEO while Hurwitz remains on as chairman. The employment agreement, which runs through June 30, makes Pollock eligible for a confirmation fee of $1.25 million in cash as well as one, $500,000 allowed general unsecured claim in the HomePlace case. (Federal Filings Inc. 4-Sep-98) HOMEOWNERS MORTGAGE: HomeCapital Disputes $84.9M Claim ------------------------------------------------------ HomeCapital Investment Corporation (Nasdaq: HCAP) announced today that it will dispute the $84.9 million claim (subject to credits) lodged by Fannie Mae in connection with the bankruptcy reorganization proceedings of HomeOwners Mortgage & Equity, Inc., the wholly- owned subsidiary of HomeCapital. The claim, which was lodged on August 31, 1998, purports to be based upon loans sold that Fannie Mae alleges were ineligible, contained breaches of warranty or are otherwise nonperforming and other breaches of contract. Fannie Mae acknowledges that much of the claim is unliquidated, contingent or unmatured, and that a substantial portion of the claim is based upon "projection." The Company said that Home will vigorously dispute the claim because, among other reasons, it is speculative, does not make appropriate allowance for the residual value of the criticized loans, and apparently does not account for FHA insurance recovery on nonperforming loans. In addition, the Company and Home are considering substantial counter-claims against Fannie Mae. As previously reported, the unexpected termination by Fannie Mae of its Mortgage Selling and Service Contract with Home without notice on March 24, 1998, precipitated the bankruptcy reorganization filing by Home on May 4, 1998. The Company is actively seeking to develop a plan of reorganization that will utilize any residual enterprise value of Home, as well as the public ownership characteristics of HomeCapital, for the benefit of stockholders and creditors. INTERNATIONAL WIRELESS: Files for Chapter 11 -------------------------------------------- International Wireless Communications Holdings, Inc. ("IWCH"), an operator, owner and developer of wireless communications networks in major emerging markets in Asia and Latin America, announced today that it has filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code (the Bankruptcy Code"). The filing was made in the U.S. Bankruptcy Court in the district of Delaware in Wilmington. The company's finances and a number of its businesses have been adversely affected by the financial and political instability in Asia. The company also filed related Chapter 11 petitions for four of its subsidiaries: International Wireless Communications, Inc.; Radio Movil Digital Americas, Inc.; International Wireless Communications Latin America Holdings, Ltd.; and Pakistan Wireless Holdings Limited (collectively, together with IWCH, the "Debtors"). The filing is intended to protect the Debtors from their creditors while they develop a reorganization plan. It also allows the Debtors to continue operations in the normal course of business while obtaining relief from the immediate collection of obligations owed to existing creditors. The Debtors also stated that they are actively engaged in negotiating an agreement among their principal unsecured creditors and their largest shareholder, Vanguard Cellular Operating Corp. ("Vanguard"), which is expected to form the basis for a plan of reorganization for the Debtors. It is also expected that, as part of the reorganization plan, the Debtors would receive DIP financing. LEVITZ FURNITURE: Needs Time to Assume or Reject Leases ------------------------------------------------------- The debtor, Levitz Furniture Incorporated, et al., is seeking an order extending the time within which the debtors may assume or reject their unexpired leases of nonresidential real property to which one or more of the debtors is a lessee. The debtors are seeking authorization to enter into an amendment of their postpetition credit facility. The debtors have negotiated a second term loan of not less than $20 million and not more than $30 million. This money will be used to pya down a portion of the borrowings under the revolving line of credit part of the DIP facility, thereby increasing the debtors' credit availability under that portion of the DIP facility. This increase in availability under the revolving line of credit is critical to the debtors' reorganization. The debtors believe that the Term Lender is willing to lend against the existing collateral package primarily because it believes there is underused value in the debtors' owned and leased real property. The Term Lender wants the debtors' fee and leasehold interests in real property - key collateral it is looking to as security for the new term loan- to be protected through the maturity date of the DIP Facility. The New Term Loan provides that the debtors need to obtain an order extending their time to assume or reject leases until March 31, 1999. The debtors request that the court enter an order extending the time within which the debtors may move to assume or reject the unexpired leases for 152 days until and through March 31, 1999. LIFEONE: Challenges Involuntary Filing by Debenture Holders ----------------------------------------------------------- LifeOne Inc. (OTCBB:NAAC), formerly National Affiliated Corporation, announced today that two convertible debenture holders named in LifeOne's shareholder lawsuit alleging a fraudulent stock shorting scheme, and a third party have filed an involuntary bankruptcy petition against LifeOne in the Western District of Louisiana. LifeOne expects the petition to be summarily dismissed. Damages will be sought by LifeOne after the petition is dismissed for having been wrongfully filed. Arcadia Mutual Fund Inc. and Asia Equities Inc., the two petitioners named in LifeOne's shareholder lawsuit, (Company press release 7/22/98), did not disclose in their petition that they are named defendants in the shareholder RICO lawsuit. According to company attorneys, the filing of an involuntary bankruptcy motion requires at least three petitioners having no disputed claims with the company against which the action is taken. The shareholder lawsuit alleges among other things, that the amounts owed to Arcadia Mutual Fund Inc. and Asia Equities Inc. are in dispute. The third petitioner, also a debenture holder, is Black Sea Investments Ltd., a Turks and Caicos company. Black Sea had previously disrupted the operations of LifeOne by causing the company's May 29, 1998 special shareholder meeting to be delayed, and has made frequent threats and unreasonable demands of the company, according to company officials. The company also said that Black Sea's president had discussed settlement proposals with LifeOne's attorney. He also discussed scheduling a settlement meeting between principals to be held this week but failed to disclose that Black Sea had prepared an involuntary bankruptcy petition for filing. The company is strongly challenging the petition. Brent Chapel, chief financial officer of LifeOne, said, "The company's attorneys are filing motions to dismiss this action. The motions will state that the petition has many flaws, all of which would make this filing frivolous at best. This is yet another attempt by named debenture holders to further short the stock of LifeOne by taking advantage of recent stock market volatility." LifeOne recently announced the successful completion and filing of the statutory audits of its two insurance subsidiaries, Maryland Southern Life Insurance Company and National Affiliated Investors Life. These audits are required each year to keep a certificate of authority to do business. Both companies have operated profitably in 1998. MOBILEMEDIA: Arch Modifies Merger Agreement ------------------------------------------- Arch Communications Group, Inc. (Nasdaq: APGR) today announced an agreement in principle to make certain modifications to the Merger Agreement dated August 18, 1998 between Arch and MobileMedia Corporation. In response to recent capital markets volatility, and in order to provide greater closing certainty with respect to Arch's pending acquisition of MobileMedia, Arch has agreed to modify the terms of the Rights Offering to MobileMedia's unsecured creditors to incorporate a Market Price Protection Mechanism. In the event such Market Price Protection Mechanism is triggered, MobileMedia unsecured creditors would be entitled to purchase shares of Arch common stock at a lower price and Arch shareholders would receive lower priced warrants, or at their option, rights to maintain a fully diluted equity interest equal to 32.175% of the combined company. Specifically, the principal terms of such modifications are: 1. Following the entry of an order by the Bankruptcy Court confirming the Amended Plan of Reorganization, there will be an additional measurement period for the market value of Arch's common stock used to compute the number of shares issued in the Rights Offering to MobileMedia's unsecured creditors. 2. In the event that the price of Arch's common stock during the subsequent market price measurement period, as calculated in accordance with the agreement, is below $6.25 per share, then the Market Price Protection Mechanism would apply. 3. The Market Price Protection Mechanism would adjust the exercise price of the rights issued to MobileMedia's unsecured creditors to 80% of Arch's stock price as measured during this subsequent market price measurement period, but in no case would the rights exercise price be set at less than $2.00 per share. In the event of any such adjustment, no warrants to purchase common stock would be issued to MobileMedia's unsecured creditiors. 4. If the Market Price Protection Mechanism were triggered, Arch shareholders would receive rights to acquire shares of Arch common stock which, if exercised, would cause Arch shareholders to maintain a 32.175% pro forma fully diluted equity interest of the combined company. The right to subscribe for additional shares of Arch common stock would be at the same exercise price as the rights issued to MobileMedia's unsecured creditors. 5. To the extent Arch shareholders elect to receive warrants to acquire shares of Arch common stock, such warrants, if fully exercised, would be exercisable until September 1, 2001 at a fixed exercise price reflecting a 20% annually compounded premium (calculated through September 1, 2001) over the exercise price of the rights. Assuming a December 31, 1998 closing date, and depending on the exercise price of the rights distributed to MobileMedia unsecured creditors, the warrants to be received by Arch shareholders, if the Market Price Protection Mechanism is triggered, would have an exercise price ranging between $3.25 and $8.11 per share. 6. The four major institutions acting as standby purchasers for the Rights Offering would continue to receive warrants to purchase 2.5% of the pro forma fully diluted equity interest of the combined company if the Market Price Protection Mechanism is triggered. Such warrants would be identical to those issued to Arch shareholders. C. Edward Baker, Jr., chairman and chief executive officer of Arch, said: "We have agreed to such amendments to the Merger Agreement and Standby Purchase Commitments in order to secure greater transaction certainty in the event that current volatile capital markets still apply at the time of the Rights Offering. In the event that the Market Price Protection Mechanism is not triggered during the subsequent market price measurement period, then all aspects of the original Merger Agreement remain intact." Joseph A. Bondi, chairman-restructuring of MobileMedia and managing director of turnaround consultants Alvarez & Marsal, Inc., commented: "We are delighted that we have been able to negotiate a satisfactory arrangement with Arch, the Standby Purchasers, and the Official Committee of Unsecured Creditors which addresses the interests of all concerned, and which will afford us the opportunity to move expeditiously to confirm MobileMedia's Amended Plan of Reorganization." Arch plans to file an 8-K with the amended agreements shortly. A Bankruptcy Court hearing to consider a motion by MobileMedia to approve certain provisions of the Merger Agreement, including certain mutual no-shop and exclusive dealing provisions, break-up fees to Arch and MobileMedia, and reimbursement of a portion of Arch's expenses, is scheduled for 10:30 a.m. on September 4, 1998 in the United States Bankruptcy Court for the District of Delaware. MOBILEMEDIA: Completes Tower Sale to Pinnacle --------------------------------------------- MobileMedia Corp. (i) the closing of MobileMedia's previously announced sale of 163 transmission towers to Pinnacle Towers Inc. for $170 million in cash; MobileMedia said that the sale of its tower site assets to Pinnacle, approved by the U.S. Bankruptcy Court for the District of Delaware on Aug. 10,1998, represents significant progress towards completion of its Chapter 11 proceeding and is a key component of its Merger Agreement with Arch Communications Group. MobileMedia has distributed the $170 million cash proceeds to its secured creditors, who have a lien on such assets to secure the principal amount of $649 million owing to them. "The successful and timely completion of the sale of our transmission towers has enabled us to reduce our secured debt substantially and move one step closer to emergence from Chapter 11," said Joseph A. Bondi, chairman, restructuring, MobileMedia, and managing director of turnaround consultants Alvarez & Marsal. "The proceeds from the tower sale were used to repay $170 million of our pre-petition secured debt, which is the first step in our plan to provide 100 percent recovery to our secured creditors. The payment of the tower sale proceeds to the secured creditors also satisfies one of the conditions of our merger agreement with Arch Communications," Bondi added. Under the terms of the tower sale to Pinnacle, announced July 8, MobileMedia will continue to own and utilize transmitters, antennas and other equipment located on the 163 towers through a lease arrangement for an initial lease period of 15 years at an aggregate annual rental of $10.7 million. In addition to the towers sold to Pinnacle, MobileMedia leases space on more than 4,000 transmissions towers nationwide for its paging transmission systems. MONTGOMERY WARD: Seeks To Sell 2 Properties For $4M --------------------------------------------------- Montgomery Ward & Co. is seeking approval to sell two former sites, one in California for $3.3 million and the other in North Carolina for about $1 million. The Walnut Creek, Calif., site once housed the retailer's credit center, however, Montgomery Ward no longer operates a credit center on the property. Subsidiary Seventh Mont Corp., which owes $1.1 million (plus interest from June 15) under the mortgage on the property, contracted to sell the site to Thomas Properties Inc. on Aug. 18, subject to court approval. Montgomery Ward operated a store on the 10.66- acre site in New Bern, N.C., until June 16, when it received authorization to close a number of stores and conduct going-out-of-business sales. The retailer signed a contract to sell the property to Zachary Taylor of New Bern on Aug. 24, subject to court approval. A sale hearing is set for Sept. 14. (The Daily Bankruptcy Review and ABI Copyright c September 4, 1998) OXFORD HEALTH: Accreditation Rank Drops --------------------------------------- The National Committee for Quality Assurance down-graded Oxford two notches to "provisional" from "full" accreditation citing financial and data-management problems. The lowering of the accreditation status reflects concerns that Oxford's financial and data problems could prompt providers to leave, cause an erosion in membership services and member satisfaction, and disrupt quality-management and improvement programs. Oxford said the agency's decision apparently was based mostly on issues that the company has recently addressed with a $710 million recapitalization, a sweeping management change, and the development of a turnaround plan. "We will continue to work with NCQA to ensure that we meet all of their standards" when the company is reviewed again next year, Oxford said. PARTY WORLD: Seeks Order Appointing Responsible Person ------------------------------------------------------- Party World Inc., and Party America Inc., debtors, are seeking an order appointing Robert Berger as responsible party for the debtors. Recently, Martin Allen, the debtors' sole remaining officer and only active member of the debtors' board of directors, resigned. Mr. Berger will receive $2,500 per month for his services. The alternative to Mr. Berger's appointment would be conversion to Chapter 7, and that would delay distributions to administrative creditors and add another layer of costs in already administratively insolvent estates. PETRIE RETAIL: Wins Nod For $4.5M Interim CIT DIP Pact Use ---------------------------------------------------------- Petrie Retail received interim approval Monday to borrow up to $4.5 million in cash advances and letters of credit from The CIT Group/Business Credit Inc., pending a final hearing on their $20 million debtor-in- possession financing agreement. The apparel retailer also can utilize up to $3.5 million under a $6.5 million vendor credit line from The CIT Group/Commercial Services Inc. (Federal Filings Inc. 4-Sep-98) TENNEY ENGINEERING: Files For Bankruptcy Protection --------------------------------------------------- On August 31, 1998 Tenney Engineering, Inc. and its wholly owned subsidiary, DynaTenn, Inc., filed for protection from creditors under Chapter 11 of the Federal Bankruptcy Code on August 25, 1998 in U.S. Bankruptcy Court for the District of New Jersey, Newark, New Jersey, under Case Numbers 98-40978 RG and 98-40979 RG, respectively. (States SEC - 09/03/98) WINTERSILKS,INC: Seeks To Increase Post-Petition Financing ---------------------------------------------------------- The debtor, WinterSilks, Inc. filed a motion with the court asking for an order authorizing the debtor's emergency motion of authorization for the debtor to increase post-petition financing to $3.85 million, to be heard on an expedited bases. A hearing will be held on September 10, 1998. The debtors states that if it is unable to obtain an immediate increase in its pot-petition financing, it will be unable to function during its peak season. It will then have no alternative but to cease operations. The proposed increase to $3.85 million of the debtor's post petition financing facility will carry the debtor through its peak season. ********* Meetings, Conferences and Seminars ---------------------------------- 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 23-24, 1998 MINNESOTA STATE BAR ASSOCIATION 1998 Bankruptcy Institute Regal Minneapolis Hotel, Minneapolis, Minnesota Contact: Minnesota CLE 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 LAW INSTITUTE-AMERICAN BAR ASSOCIATION Real Estate Defaults, Workouts, and Reorganization Charleston, South Carolina Contact: 1-800-CLE-NEWS October 9-13, 1998 NATIONAL CONSUMER LAW CENTER 7th Annual Consume Rights Litigation Conference San Diego, California Contact: 1-617-523-7398 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 9-10, 1998 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. Conference on Corporate Restructurings: Asia Indonesia * Thailand * South Korea The Radisson Empire Hotel, New York, New York Contact: 1-903-592-5169 or ram@ballistic.com November 20-23, 1998 COMMERCIAL LAW LEAGUE OF AMERICA 78th Eastern District Meeting New York Marriott World Trade Center, New York City Contact: Warren Pinchuck, New Hyde Park, New York November 30-December 1, 1998 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. Distressed Investing '98 The 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, 1999 COMMERICAL LAW LEAGUE OF AMERICA Annual Western District Meeting Monte Carlo Hotel & Casino Resort, Las Vegas, Nevada Contact: 1-702-382-9558 Febraury 28-March 3, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW Norton Bankruptcy Institute I Olympic Park Hotel, Park City, Utah Contact: 1-770-535-7722 March 18-21, 1998 NORTON INSTUTUTES ON BANKRUPTCY LAW Norton Bankruptcy Litigation Institute II Flamingo Hilton Hotel, Las Vegas, Nevada Contact: 1-771-535-7722 April 26-27, 1999 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. Bankruptcy Sales, Mergers & Acquisitions The Mark Hopkins, San Francisco, California Contact: 1-903-592-5169 or ram@ballistic.com The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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. 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 * * *