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/raid1/www/Hosts/bankrupt/TCR_Public/980911.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, September 11, 1998, Vol. 2, No. 178 Headlines AHERF: Units Get $7 Million From Frozen Funds APS HOLDING: Enters Sale Agreements APS HOLDING: Seeks 120-Day Extension To Exclusive Periods AMERICAN RICE: ERLY Reports Cause for Filing AMERICAN RICE: Trustee Seeks Relief From Stay ASPEN AIR: Plans Cuts in Routes CITYSCAPE FINANCIAL: Expects To File Sept. 30 CONSOLIDATED STAINLESS: Seeks Extension of Financing CROWN BOOKS: Supports Application to Hire Keen Realty FPA MEDICAL MANAGEMENT: Committee Taps Bayard Firm FPA MEDICAL MANAGEMENT: No Bonuses For Employees GLOBAL ASSOCIATES: Lease Obligations Assumed By Bedford HARRAH'S JAZZ: Judge OKs Plan To Finance Construction MOBILEMEDIA: Key Conditions Of Merger Deal Satisfied MOLTEN METAL: Trustee Applies to Employ General Counsel PACIFICA HOSPITAL: Zinngrabe Warns of Closing PARAGON TRADE BRANDS: Kimberly-Clark's Reply Brief QUADRAX CORP: Committee Objects to Exclusivity Extension SA TELECOMMUNICATIONS: Seeks Extension of Exclusive Periods SCHWEITZER MOUNTAIN RESORT: New Investors May Slow Sale SNAKE EYES GOLF: Auction To Single High Cash Bidder STAR NEWCO: Seeks Chapter 11 In Delaware SUNBELT NURSERY: Asks to Examine Records of Paragon Capital TOSHOKU AMERICA: Seeks Third Extension of Exclusive Period UNISON HEALTHCARE: Fights to Retain PricewaterhouseCoopers WELCOME HOME: Seeks To Assume 119 Leases and Office Lease WESTERN FIDELITY: Hearing on Motion to Convert DLS CAPITAL PARTNERS: Bond Pricing for Week of Sept. 8 ********* AHERF: Units Get $7 Million From Frozen Funds --------------------------------------------- The Department of Health and Human Services (HHS) has consented to release to two Allegheny Health Education & Research Foundation subsidiaries about $6.8 million from the $9 million HHS has frozen for prepetition services rendered by the hospitals. HHS requested relief from the automatic stay to allow the agency to set off against the more than $13 million in Medicare provider reimbursements that HHS alleges were overpaid to the hospitals. (Federal Filings Inc. 10-Sept-98) APS HOLDING: Enters Sale Agreements ----------------------------------- APS Holding Corporation (OTC Bulletin Board: APSIQ) today announced that it has entered into agreements for the sale of 10 distribution centers and the assets of 142 company- owned stores through three separate sale transactions. The proposed transactions, which are subject to bankruptcy court approval and certain other conditions, are expected to realize in the aggregate in excess of $100 million. The funds will be used by APS to reduce its bank debt. General Parts, Inc. ("GPI") and BWP Distributors Inc. ("BWP"), which operate under the brand name CarQuest, will purchase the largest group of assets. Under the terms of its purchase agreement, GPI will acquire 8 distribution centers and the assets of 125 Big-A company-owned stores serviced by these distribution centers. The Distribution Centers GPI is acquiring are located in Albuquerque, NM, Phoenix, AZ, Salt Lake City, UT, Denver, CO, Great Bend, KS, Omaha, NE, Indianapolis, IN and Winchester, VA. Under the terms of its purchase agreement, BWP will acquire APS' Philadelphia, PA Distribution Center and the assets of 17 Big-A company-owned stores serviced by this distribution center. Under the terms of a separate purchase agreement, The Parts Source, Inc. ("PSI") will acquire APS' Ocala, Florida distribution center. According to Bettina M. Whyte, APS Chief Executive Officer, there will be no interruption in service to the locations affected by the proposed asset sales. During the pre- closing period, APS will continue to operate the assets and will operate its business at these locations in the normal manner. Additionally, APS expects that most of the affected employees will be offered positions with the acquiring companies. Following these sales, which are anticipated to close by the end of October, APS will continue to operate 13 distribution centers and 212 company-owned stores under the Big A and Big A Express banners. Additionally, APS will continue to provide service to approximately 760 associated jobbers. "The proceeds from these asset sales present APS with an opportunity to significantly reduce its bank debt," said Ms. Whyte. "These sales are also likely to preserve important distribution channels in the auto parts industry and will also preserve a significant number of APS employee jobs." Ms. Whyte added, "In the meantime, we will continue to focus our attention on providing the highest quality of service to our network of loyal associated jobbers, as well as local installers, through our remaining Distribution Centers and company-owned stores." APS Holding Corporation is a national distributor of Big A brand and manufacturer branded automotive replacement parts, as well as tools, equipment, supplies and accessories. It sells to approximately 1500 associated auto parts stores through 23 distribution centers (including the 10 being sold as discussed above) and operates approximately 354 company-owned stores (including the 142 being sold as discussed above) under the Big A and Big A Express trade names. APS HOLDING: Seeks 120-Day Extension To Exclusive Periods --------------------------------------------------------- APS Holding Corp. is seeking another 120-day extension of its exclusive periods to file a reorganization plan and solicit plan acceptances, from Sept. 30 and Nov. 29 to Jan. 28 and March 28, respectively. The auto parts distributor has been actively pursuing the sale of certain assets and has finalized, or expects to finalize shortly, several asset sale agreements, but needs more time to complete the process. APS contended that an extension also is warranted because of the additional progress the company has made since the prior extension was granted in early June. (Federal Filings Inc. 10-Sept-98) AMERICAN RICE: ERLY Reports Cause for Filing -------------------------------------------- In a press release dated August 12, 1998, ERLY Industries Inc. which owns 81% of American Rice, Inc. reported that in order to complete ARI's previously announced financial restructuring more efficiently, ARI filed to reorganize under Chapter 11 of the bankruptcy code. ERLY was not part of this filing. ARI has been pursuing an out-of-court financial restructuring since its previously announced defaults on its bank debt and 13% Mortgage Notes due 2002. The Trustee for the Notes has given notice of an auction sale of ERLY's ARI stock, which was pledged to secure the Notes. As part of the filing, ARI said it will sell its olive business, pending court approval, and obtain approximately $45 million. AMERICAN RICE: Trustee Seeks Relief From Stay --------------------------------------------- U.S. Trust Company of Texas, N.A., as Trustee under a certain Indenture by and between the Trustee and American Rice, Inc., relating to $100 million 13% Mortgage Notes Due 2002 is seeking Relief from Stay and demand for adequate protection. The Trustee states that the collateral is used in the debtor's daily business, is depreciating in value by reason of the passage of time and continued usage by the debtor. The Trustee states that if it is not permitted to foreclose its liens and security interests and is not given adequate protection, it will suffer irreparable injury, loss and damage. ASPEN AIR: Plans Cuts in Routes ------------------------------- Struggling Aspen Mountain Air said Thursday it must slash the size of its route system, including a number of flights from Dallas/Fort Worth International Airport. "In order to successfully restructure the airline, we must reorganize the route structure and reconfigure our fleet," chief executive Ron Stone said in a written statement. "With our current assets, we fully intend to capitalize on all opportunities in the marketplace." Under a code-sharing agreement with Aspen, American Airlines Inc. has put its flight numbers on eight Aspen Mountain routes. Aspen also indicated it plans to end flights on routes that receive federal subsidies under the government's "essential air services" (EAS) program. But it will keep those routes until a replacement carrier is selected, the airline said. In all, the airline offers 100 flights to 22 cities with 18 aircraft and 500 employees. The numbers will shrink after the route cutbacks. Aspen Mountain Air is owned by Peak International Inc.'s Aspen Mountain Air Investments Inc. subsidiary. The company acquired and renamed Lone Star Airlines in November 1996. Lone Star was originally known as Exec Express II Inc.(Dallas Morning News - 09/04/98) CITYSCAPE FINANCIAL: Expects To File Sept. 30 --------------------------------------------- Cityscape Financial Corp. expects to file for bankruptcy on Sept. 30, has set a voting deadline for its prepackaged reorganization plan for the same date, and anticipates the plan going effective on Nov. 1. The subprime lender has received commitments from two lenders for a total of $200 million in debtor-in-possession financing. Prepetition lenders Greenwich Capital Markets Inc. and The CIT Group/Business Credit Inc. have agreed to provide separate $100 million DIP facilities, with the proceeds to be used to repay CIT's prepetition facility and to operate the business during the bankruptcy case. (Federal Filings Inc. 10-Sept-98) CONSOLIDATED STAINLESS: Seeks Extension of Financing ---------------------------------------------------- The debtor, Consolidated Stainless, Inc. is seeking authorization for a fifth extension and modification of its DIP Financing between the debtor and Mellon Bank, N.A. The debtor is seeking authorization to borrow from Mellon the amount set forth in the Budget pending the Final Hearing, and upon the Order becoming a Final Order, the amount shall increase up to the Maximum Amount of $10,100,000. Interest shall accrue on the outstanding principal balance of the DIP Financing at a variable rate per annum equal to the sum of the base rate plus 1 1/4%. CROWN BOOKS: Supports Application to Hire Keen Realty ----------------------------------------------------- Crown Books Corporation submits a statement in support of its application to employ Keen Realty Consultants, Inc. as special real estate consultant. The Office of the United States Trustee and the Official Committee of Unsecured Creditors both filed objections to the application. Keen agreed to modify its minimum transaction fee in response to the Committee's objection, and the US Trustee requested the filing of a verified statement, which the firm supplied. Keen has agreed to receive as its minimum transaction fee, the greater of $1,750 or an amount equal to 3.75% of "gross proceeds" and the Committee withdrew its objection. FPA MEDICAL MANAGEMENT: Committee Taps Bayard Firm ---------------------------------------------------- The Official Committee of Unsecured Creditors in the cases of FPA Medical Management, Inc. and those of its direct and indirect subsidiaries and related professional corporations applies for approval of the retention of The Bayard Firm as co-attorneys for the Committee. The Bayard Firm will be required to render legal advice with respect to the powers and duties of the Committee, the sale of estate assets, any disclosure statement or plan, necessary applications, motion, complaints and answers. The Committee intends to work closely with Bayard and Holleb & Coff to ensure that there is no unnecessary duplication of services performed. Bayard's rates range from $200 to $330 per hour for its attorneys proposed to represent the Committee. FPA MEDICAL MANAGEMENT: No Bonuses For Employees ------------------------------------------------ FPA Medical Management Inc. won't pay promised bonuses to employees of an Orange-based company acquired shortly before the struggling operator of doctors' practices filed for bankruptcy, while FPA executives are seeking $2.8 million in bonuses themselves, workers said. As many as 50 workers at Orange Coast Managed Care Services Inc., bought by FPA in March, have been told they won't get bonuses equaling 25 percent of their salaries in the wake of FPA's Chapter 11 filing, said Neri Gamble, a claims examiner. Gamble said she'd been promised $5,668 if she'd stayed with Orange Coast through November. Meanwhile, FPA is asking a bankruptcy judge to approve a total of $2.8 million bonuses for its top executives. FPA Chief Executive Stephen Dresnick stands to get a $1.1 million bonus if he stays with the company until it emerges from bankruptcy-court protection in December, court records show. Dresnick has said the only way to keep key employees to carry out the bankruptcy-reorganization plan is to pay bonuses. U.S. Bankruptcy Judge Peter Walsh is expected to decide Sept. 23 whether Miami-based FPA can pay the executive bonuses. (Orange County Register - 09/04/98) GLOBAL ASSOCIATES: Lease Obligations Assumed By Bedford ------------------------------------------------------- Bedford Property Investors Inc. announced it has reached a resolution with Smiths Industries plc to reinstate and then assume the lease obligations of Global Associates Ltd., which earlier this year filed for bankruptcy protection, according to a newswire report. Smiths will pay all of Global's past due rental obligations, and Smiths agreed to a rental increase that equates to a 21 percent increase over the prior rental level. HARRAH'S JAZZ: Judge OKs Plan To Finance Construction ----------------------------------------------------- A federal bankruptcy judge gave swift approval Thursday to an additional $25 million in financing for the idled New Orleans land casino project to help complete construction of the half-finished gambling hall and make it more competitive with casinos in neighboring Mississippi. Here's where the money will come from: Harrah's Entertainment Inc. of Memphis, Tenn., the lead partner behind the downtown Canal Street casino, will provide $12.5 million of the new financing, while the remaining $12.5 million will be provided in a bank loan guaranteed by Harrah's Entertainment. The money will be used in part for design changes and equipment enhancements, according to an amended disclosure statement filed in Bankruptcy Court last month. The disclosure statement indicated that the changes and enhancements will be made to "meet more intense competition from other gambling facilities such as those located on the Mississippi Gulf Coast." During a hearing Thursday that lasted less than five minutes, U.S. Bankruptcy Judge T.M. Brahney III approved the amendments to Harrah's Jazz Co.'s disclosure statement, saying he received no objections to the amendments. Harrah's Jazz is the bankrupt owner of the land casino project. The disclosure statement outlines the terms of the casino's reorganization plan. Creditors now have several weeks to vote to either accept or reject the revised disclosure statement. Brahney on Thursday scheduled a final hearing for Oct. 13 to confirm the disclosure statement and bankruptcy reorganization plan. The Louisiana Gaming Control Board is awaiting the completion of State Police investigations into whether the casino's partners are ethically and financially suitable to operate the casino. Those investigations are expected to be completed next month. In addition to Brahney's and the Gaming Control Board's approval, Harrah's also needs the New Orleans City Council's blessing before it can resume construction of the casino. The largest new cost in the land casino project involves higher construction expenses, which are expected to increase from $129.4 million to $140.7 million, according to the amended disclosure statement. The cost increases also include $4.7 million of additional gambling equipment.(Advocate Baton Rouge - 09/04/98) MOBILEMEDIA: Key Conditions Of Merger Deal Satisfied ---------------------------------------------------- Arch Communications Group Inc. [APGR] and MobileMedia Corp. have reaffirmed the first quarter of 1999 as the target for completing their proposed merger, after the U.S. Bankruptcy Court overseeing MobileMedia's Chapter 11 bankruptcy petition approved certain underlying financial provisions of their deal. The provisions cover such areas as exclusivity, break-up fees and expense reimbursement. On a related note, the companies said that $170 million has been paid to MobileMedia's secured creditors, reflecting proceeds generated from the company's sale-leaseback transaction with Pinnacle Towers Inc. covering tower site assets. Arch and MobileMedia have vowed to pay in full the $649 million owed to MobileMedia's secured creditors. With these developments, MobileMedia and Arch said they have satisfied two of the "material conditions" contained in their Aug. 20 merger agreement. Upon completion of the deal, Arch will become the second-largest operator of paging services in the United States with a base of more than 7.4 million subscribers. (Copyright Phillips Publishing, Inc. Communications Today - 09/09/98) MOLTEN METAL: Trustee Applies to Employ General Counsel ------------------------------------------------------- Stephen S. Gray, the Chapter 11 Trustee of Molten Metal Technology and its affiliated debtors is seeking authorization to employ Joseph Braunstein, attorney and the law firm of Riemer & Braunstein to represent and provide general legal services on behalf of the Trustee in connection with the case. The law firm will not represent the Trustee with respect to environmental concerns, regulatory matters, hazardous, non- hazardous and radioactive waste, or intellectual property concerns. PACIFICA HOSPITAL: Zinngrabe Warns of Closing --------------------------------------------- Health-care entrepreneur Robert J. Zinngrabe is warning that he may have to close Pacifica Hospital unless he can restructure his debts. Zinngrabe and five of his businesses filed separate petitions to reorganize in U.S. Bankruptcy Court. The money-losing, 98-bed hospital in Huntington Beach has not filed for bankruptcy court protection. But it is at the heart of Zinngrabe's empire, physically and financially. Zinngrabe has been using profits from his other businesses to keep the hospital open, according to court documents. During the past two years, however, his other businesses have bled cash and rung up $7.4 million in unsecured debts. His plan: Sell Huntington Terrace, a 161-unit, senior-care facility near the hospital for $16 million and use that money to pay debts. But he can't do that, his lawyers say, because of "certain incredibly onerous provisions" in a $30 million loan agreement that he signed in 1995. The loan covers Huntington Terrace and several other Zinngrabe properties as well as his stock in the companies. It includes what amounts to a prepayment penalty, according to papers filed by Zinngrabe's attorneys. If he tried to pay off the $29 million balance now, he would have to pay $8 million in penalties. If he tried to pay off just the $5.8 million portion secured by Huntington Terrace, he would have to pay a $2 million penalty. Zinngrabe wants the court to erase the penalty provision from the loan. Pacific Mutual Life Insurance, the servicing agent for the loan, is fighting the attempt to change the loan's terms. But the insurer has said in court papers it will agree to let the other Zinngrabe businesses pump cash into the hospital. Pacifica expects to lose $435,000 from August to December. That equates to an annual loss of more than $1 million. (Orange County Register - 09/08/98) PARAGON TRADE BRANDS: Kimberly-Clark's Reply Brief -------------------------------------------------- Kimberly-Clark ("K-C") files a Reply Brief in Support of its appeal from the orders entered April 10, 1998 and June 15, 1998. The appeal presented the question of whether a Bankruptcy Court can enter an order, without a motion being filed, that requires a corporation to give legal and business assistance to its bankrupt competitor. The orders entered by the court were in response to K-C's motion for relief from the automatic stay. K-C claims that the orders at issue impose ongoing obligations on K-C to analyze Paragon's prospective products and advise Paragon whether those products infringe any one of K-C's hundreds of patents. K-C states that this directive is beyond the power of the Bankruptcy Court and merits reversal by this court. K-C states that a bankruptcy court can condition a grant of relief from stay but a bankruptcy court does not have the authority to grant a debtor relief that the debtor could never have achieved on its own initiative or that is unrelated to protection of the creditor's interest. K-C also filed a response to the motion to dismiss its appeal. K-C maintains that the mandatory injunction is appealable, and that the order that is the subject of the appeal meets the standards for appealability as a collateral order. QUADRAX CORP: Committee Objects to Exclusivity Extension -------------------------------------------------------- The Official Committee of Unsecured Creditors objects to the debtor's motion to extend the exclusive period for filing a plan of reorganization. The Committee states that there is no reason to preclude other potential plans of reorganization from being filed in this case. The Committee states that if a new plan proponent emerges with a better plan than that currently being offered, the creditors should have the option to vote for such a plan. The fact that the Committee has voted to support the current plan does not preclude it from supporting another plan. The Committee submits that there is no compelling reason to extend the exclusivity period for ninety days. SA TELECOMMUNICATIONS: Seeks Extension of Exclusive Periods ----------------------------------------------------------- The debtors, SA Telecommunications, and its debtor affiliates, seek an order granting further extension of the exclusive periods in which to file a plan or plans of reorganization and to solicit acceptances thereof. The debtors state that "unforeseen circumstances" have arisen. Since late July the value of the EqualNet common stock has undergone a steady decline in value. At this time, the plan contemplated by the Settlement would not be confirmable or feasible. The recovery to creditors is premised in large measure on the funds received from liquidation of the stock. Furthermore, the current cash position of the debtors prevents them from making any payments under a plan until at least March 1, 1999. The $555,000 received at Closing is being held in escrow subject to payment of a note due on February 28, 1999. The debtors state that extending the plan period until the note is paid is necessary. The debtors request entry of an order extending the plan period and solicitation period to March 1, 1999 and May 1, 1999 respectively, and for such other and further relief as the court may deem just and proper. SCHWEITZER MOUNTAIN RESORT: New Investors May Slow Sale -------------------------------------------------------- Owners of the Schweitzer Mountain Resort in Sandpoint, Idaho, filed a motion last week stating that they have new investors willing to commit to a reorganization plan and have asked the court to reconsider a plan with the new investors' assets of more than $351 million, The Spokesman- Review reported. The investors are Original Ventures Inc., a New York-based real estate developer, Texas-based developer Resort Host International Corp. and Atlanta-based Financial Capital Co. of America LLC. Certain members of the Brown family, who own the resort, object to the creditors' plan to sell the resort. Attorney Ed McCabe said that creditors would receive 100 percent of what they are owed under the owners' plan but only half of what they are owed if the resort is sold. However, U.S. Bank, which is the largest creditor, owed $22.5 million, may not get anything under the owner's plan because of the treatment of the bank's claim; the bank's attorney believes the recent motion is a stalling tactic. The creditors already voted to sell the resort, and a hearing is scheduled for Tuesday to confirm the sale plan. (ABI 10-Sept-98) SNAKE EYES GOLF: Auction To Single High Cash Bidder --------------------------------------------------- Snake Eyes Golf Clubs Inc. will auction its business and assets, free and clear of all liens and liabilities, to a single high cash bidder. The auction will occur in approximately 45 days in conjunction with the Bankruptcy Court confirmation hearing on the company's plan of liquidation. The proceeds will be distributed under the plan to pay creditors and thereafter to the shareholders if sufficient funds remain. The company has a $ 1.4 million "back-up" contract which will provide the opening bid at the auction. Potential bidders are encouraged to obtain more information about the business and the auction rules by contacting Harold Hutchins at 904/288-0700. The company's bankruptcy schedules indicated approximately $ 100,000 of secured debt, approximately $ 3 million of unsecured debt, approximately $ 14.8 million of preferred stock and approximately 700 public shareholders. The company's capital base was inadequate to continue and grow the business. Approximately one month ago, the Snake Eyes board of directors asked Harold Hutchins, the former president and chief financial officer, to explore recapitalization or sale alternatives. Hutchins said: "Snake Eyes is one of the most technologically innovative club manufacturers. Faced with well-capitalized competitors, such as Calloway Golf and Titleist, in a rapidly consolidating industry, Snake Eyes needed additional equity capital. A variety of factors, including burdensome preferred stock covenants, stymied the company's recent recapitalization efforts. The most responsible approach was to sell the company and distribute the proceeds." Hutchins will supervise the sale process. Hutchins also stated the "Snake Eyes" brand represents a great value to potential bidders. The company has invested more than $ 10 million to establish its quality brand image and significant market penetration. Gardner Davis, an attorney with Foley & Lardner, bankruptcy counsel to the company stated: "The company will auction the business as a going concern under Bankruptcy Court supervision in approximately 45 days. The company has a 'back-up' sale contract with Venture Access International, a Minneapolis investor group lead by John Titcomb, for $ 1.4 million." According to Davis: "The Board determined a 'prepackaged' Chapter 11 sale was the most responsible way to discharge the company's legal and financial obligations. The company's trade creditors support the program." The company intends to keep its employees and continue in business pending the sale. The company's operations probably will continue in Jacksonville if Venture Access International is the successful buyer. However, the company's operations could be relocated if a large golf concern purchased the business. STAR NEWCO: Seeks Chapter 11 In Delaware ---------------------------------------- Star Newco Inc. (f/k/a Star/Elgen) filed for Chapter 11 Sept. 4 in Wilmington, Del., listing about $10.6 million in assets and $10.5 million in liabilities. The privately held company, based in Mountainville, N.Y., manufactures metal fasteners and duct connectors for air conditioning units. Dimeling Schreiber & Park Reorganization Fund L.P and Mark Ellis LLC each own more than 20 percent of the company's voting securities. Unsecured creditors include Reed Smith Shaw & McClay LLP ($467,536), Lindberg Heat ($307,260), and Ernst & Young LLP ($100,000). (The Daily Bankruptcy Review Copyright and ABI 10-Sept-98) SUNBELT NURSERY: Asks to Examine Records of Paragon Capital ----------------------------------------------------------- The debtors, Sunbelt Nursery Group, Inc., and its affiliates are seeking court authority to examine the custodian of records of Paragon Capital LLC and the person or persons designated by Paragon as most knowledgeable concerning loan charges by Paragon against debtors. The debtors are in the process of preparing joint plans and an accompanying disclosure statement. A full accounting of the charges of Paragon under the loans to the debtors and Paragon's application of payments received to obligations of the debtors is necessary in order to determine whether the charges were proper and to determine and set forth projected distributions to creditors in the respective bankruptcy estates. Paragon failed and refused to provide requested accountings detailing Paragon's charges and application of payments, notwithstanding repeated requests by debtors. TOSHOKU AMERICA: Seeks Third Extension of Exclusive Period ---------------------------------------------------------- Toshoku America Inc. is applying to the court for a third extension of its exclusive period to file a plan of reorganization for an additional seventeen days through and including October 5, 1998. The debtor states that the size and complexity of this case and the significant cross-border issues involved constitute sufficient cause for extending the exclusive period. The debtor is in the final stages of formulating a consensual plan with tits major constituencies - the Deputy Trustee, the Committee and the Bank Group. According to the debtor, additional time is necessary to value claims and resolve the claims. UNISON HEALTHCARE: Fights to Retain PricewaterhouseCoopers ----------------------------------------------------------- Despite the objection of the Whitehead Entities that claim that PricewaterhouseCoopers ("PwC") should not be retained because of the expense, the debtors state that they need financial litigation assistance, and an examiner will not be helpful to prosecute avoidance actions. The debtors state that they need the services of PwC in order to pursue litigation of avoidance actions and that the firm's services will not be duplicative with those that may be provided by an examiner. The debtors also state that this objection of Whitehead Entities is just one more attempt to delay the proceedings. WELCOME HOME: Seeks To Assume 119 Leases and Office Lease ----------------------------------------------------- The debtor, Welcome Home, Inc. seeks to assume the lease covering the debtor's corporate headquarters in Wilmington, North Carolina. The debtor is also seeking court approval for assumption of 119 nonresidential store leases. The debtor is negotiating rental concessions on approximately 90 of the 119 unexpired store leases. Welcome Home estimates that the aggregate amount of the rent concessions will exceed $1.75 million. WESTERN FIDELITY: Hearing on Motion to Convert ---------------------------------------------- The court in the Case of Western Fidelity Funding entered an order on September 1, 1998 setting the hearing on a motion to convert the case to one under Chapter 7 to October 13, 1998. DLS CAPITAL PARTNERS: Bond Pricing for Week of Sept. 8 ------------------------------------------------------ The following are indicated prices for selected issues: Amer Pad & Paper 13 '05 56 - 59 Amer Telecasting 0/14 1/2 ''04 24 - 26 Asia Pulp & Paper 11 3/4 '05 60 - 63 Boston Chicken 7 3/4 '04 10 - 12 Brazos 10 1/2 '07 45 - 48 Brunos 10 1/2 '05 13 - 15 (f) CAI Wireless 12 1/4 '04 27 - 30 (f) Cityscape 12 3/4 '04 15 - 17 (f) E & S Holdings 10 3/8 '06 68 - 72 Harrah's Jazz 14 1/4 '01 20 - 24 (f) Hechinger 9.45 '12 71 - 74 Hills 12 1/2 '03 40 - 42 Liggett 11 1/2 '99 70 - 73 Mobilemedia 9 3/8 '07 18 - 20 (f) Penn Traffic 9 5/8 '05 16 - 17 Royal Oak 11 '06 52 - 55 Service Merchandise 9 '04 61 - 62 Sunbeam 0 '18 17 1/2 - 18 1/2 Zenith 6 1/4 '11 29 - 32 (f) ********* 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 * * *