/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/980915.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 15, 1998, Vol. 2, No. 180 Headlines AHERF: Faces Philly Suit Over Taxes AHERF: Posted Huge Losses at End of Fiscal Year in June AHERF: Subsidiary May Join Creditors APS HOLDING: Files Quarterly Report With SEC CENDANT CORP: Announces Meeting With Shareholders DOW CORNING: Closes STI Plant EATON'S: Share Price Down EDISON BROTHERS: Quarterly Report Filed with SEC EQUALNET COMMUNCIATIONS: Subsidiary Files Chapter 11 FPA MEDICAL: Court Denies Delay in Case FRETTER: Jones Day Coughs Up $230,000 GENERAL WIRELESS: Plan Confirmed, Order Stayed GOLF TRAINING SYSTEMS: Files Chapter 11 HOMEPLACE STORES: Takes $30M Charge to Close 10 Stores JPE INC: Founder and Chief Executive Officer Resigns LEVITZ FURNITURE: Seeks Nod To Add $30M Loan To DIP Pact LYNX GOLF: Second Bidder On Scene MARVEL ENTERTAINMENT: Toy Biz Announces Merger Proposal MARVEL ENTERTAINMENT: NYSE Applies for Delisting of Stock MONTGOMERY WARD: Two Creditor Groups Considering Plan MOTOROLA INC: Announces Revolutionary Product ONE PRICE CLOTHING: Files Quarterly Report With SEC PETRIE RETAIL: Has Final Nod For CIT DIP Pact, Vendor Line PORTACOM WIRELESS: Reports Distributions Under Plan PRESLEY COMPANIES: Report of Stock Ownership SMITH CORONA: Report of Stock Ownership SNAKE EYES: On the Auction Block TANDY BRANDS: Annual Shareholder Meeting US LEATHER: Prepares to Issue Stock U.S. SUGAR: Involuntary Petition Filed VOXEL: Securities Delisted from Nasdaq SmallCap Market Meetings, Conferences and Seminars ********* AHERF: Faces Philly Suit Over Taxes ----------------------------------- The City of Philadelphia is seeking court permission to audit Allegheny Health Education & Research Foundation's books and records to review the health care provider's status as a "purely public charity" and assess its tax obligations if Allegheny is found not to be operating as a charitable organization. In a complaint filed on Sept. 4, the city asserted that it needs to conduct an audit to determine whether Allegheny and its subsidiaries forfeited their tax-exempt status by misusing charitable assets. (Federal Filings Inc. 14-Sept-98) AHERF: Posted Huge Losses at End of Fiscal Year in June ------------------------------------------------------- New bankruptcy court documents indicate that the Allegheny Health, Education and Research Foundation (AHERF) and its Philadelphia-area affiliates reported an estimated $384.8 million in losses in the fiscal year that ended in June, according to The Pittsburgh Post Gazette. The losses include a $200 million one-time charge for layoffs and other restructuring measures aimed at reducing the debt and preparing the hospitals for sale following the July 21 chapter 11 filing. The revised loss estimates were compiled internally and have not been certified by independent auditors. (ABI 14-Sept-98) AHERF: Subsidiary May Join Creditors ------------------------------------ A subsidiary of Allegheny Health Education and Research Foundation could end up standing in line with other creditors owed millions by the bankrupt health care giant. Pittsburgh-based AHERF provided malpractice and other professional liability coverage to its hospitals and doctors through its own insurance subsidiary, the Allegheny Health Services Providers Insurance Co. As an insurance company, the subsidiary, based in the Cayman Islands, can't file for bankruptcy - it's regulated by the state and must be liquidated if in trouble. Attorneys for AHERF believe the subsidiary has adequate reserves to cover future malpractice claims against its hospitals. But the hospital foundation is still analyzing the situation. In fiscal 1997, AHERF said it spent $30 million on self-insurance. In May of this year, it estimated that future self-insurance liabilities arising from all its hospital affiliates totaled $127.5 million; AHERF has at least $60 million of reserves to cover those liabilities, according to Lee Powar, an attorney representing the foundation. The issue of self-insurance arose yesterday, when U.S. Bankruptcy Judge M. Bruce McCullough raised concerns that malpractice suits were beginning to crowd the docket in the bankruptcy case. Because bankruptcy blocks monetary claims against a debtor pending the court's review, attorneys filing the malpractice suits against the Philadelphia hospitals included in the AHERF bankruptcy needed McCullough's approval to go forward with their cases. Typically, malpractice suits are allowed to go ahead during bankruptcy without court intervention because if payments ultimately are awarded, they are made by the bankrupt entity's insurance carrier, not the bankrupt entity itself. The difference in this case is that the insurer is owned by the bankrupt entity, which is why AHERF has been reluctant to allow the malpractice suits to continue pell- mell until it's satisfied that it's fully studied the implications. "It's like jumping off a cliff and hoping that you land on the world's largest marshmallow," said Philip Beard, an attorney representing AHERF. In other court action Judge McCullough allowed the accounting concern Deloitte & Touche Consulting Group to continue to assist AHERF in a limited fashion - primarily preparing bankruptcy documents and assisting with a compilation of endowment fund records requested by the state Attorney General. But the issue of who will conduct a thorough review of past financial statements and practices was put off to another day. While not opposed to Deloitte & Touche, a committee representing creditors believes it, and not AHERF, should determine the selection of so-called forensic accountants and control the scope of its examination. AHERF maintains that the lease actually is a kind of loan and that it, not Omega, has control over the fate of the medical complex in the pending sale of the foundation's eight Philadelphia-area hospitals included in the bankruptcy filing.(Pittsburgh Post Gazette - 09/05/98) APS HOLDING: Files Quarterly Report With SEC -------------------------------------------- APS Holding Corporation reports in its quarterly report filed with the SEC for the period ended July 25, 1998, that Net sales for the three months and six months ended July 25, 1998 decreased $44.8 million or 20.3% and $94.8 million or 21.9%, respectively, from the corresponding periods of the prior fiscal year. Such decrease was primarily attributable to facility closures and one less week included in Fiscal Year 1999 operating results as well as a decrease in sales from the Company's traditional businesses (i.e. distribution centers and Big-A Company- owned stores). The Company's Big-A and Big-A Express same store sales for the three months and six months ended July 25, 1998 decreased 7.4% and 8.0%, respectively, due to increasing competitive pressures and to the effects of the Chapter 11 Proceedings. Net loss for the three months and six months ended July 25, 1998 was $25.5 million and $47.0 million, respectively, compared to a net loss of $9.7 million and $10.6 million, respectively, for the corresponding periods of the prior year. CENDANT CORP: Announces Meeting With Shareholders ------------------------------------------------- Cendant Corp., the franchiser and direct marketer struggling to recover from accounting fraud, said it will hold its annual meeting with investors Oct. 30. The meeting, earlier scheduled for May 19, was postponed after the Parsippany, N.J.-based company announced accounting irregularities in mid-April. Investors who hold Cendant shares as of Sept. 28 can vote at the meeting. Cendant owns brands such as Howard Johnson hotels and Avis car rentals. Its empire includes the former PHH Corp. in Hunt Valley; the O'Conor, Piper & Flynn- ERA real estate agency in Timonium; and Providian Auto Home and Insurance Co., which it bought from Baltimore's Aegon USA this year. (BaltimoreSun-09/10/98) DOW CORNING: Closes STI Plant ----------------------------- Dow Corning Corp. says no there's no connection between the company's $3.2 billion settlement of breast implant claims and its decision to close a silicone rubber plant in Monroe by year end. Shutdown of the Monroe plant, which will result in 65 layoffs, was contemplated long before Midland, Mich.-based Dow Corning filed for bankruptcy in May 1995, according to spokesman Kevin Wiggins. In Monroe, employees in manufacturing, laboratory and administrative functions will receive severance packages and outplacement assistance. Some will be offered jobs at other Dow Corning plants, the company said. Dow Corning said it will sell the 45,000-square-foot industrial building at 54 Pepper St. it has occupied since 1990. (Copyright UMI Company Fairfield County Business-08/24/98) EATON'S: Share Price Down ------------------------- On the same day that Canadian department store chain T. Eaton Company Ltd. reported a second-quarter loss, its share price dropped to a record low. The share price of the 127-year-old department store chain was down C$0.95 to C$8.70, almost half of the company's June, 1998 initial public offering price of C$15. The company trades in a 52-week range of C$16.20 to C$8.70. In June, Eaton's launched a C$175-million initial public offering after only emerging from bankruptcy protection in the fall. The drop came after Eaton's reported second-quarter results for the period ended August 15, 1998 was a C$44.0 million, or C$2.17 per share, on sales of C$316.7 million, compared with a loss of C$12.1 million, or C$1.50 a share, on sales of C$312 million. ($1=$1.52 Canadian) EDISON BROTHERS: Quarterly Report Filed with SEC ------------------------------------------------ Edison Brothers Stores Inc. filed its quarterly report with the SEC for the period ended August 1, 1998. Net sales for the 13 weeks and 26 weeks ended August 1, 1998 were $204.9 and $411.1 million, respectively, a decrease of 13.4% and 10.7% from the comparable periods of 1997. The decrease reflected an 8.2% decrease in the average number of stores in operation between the first half of 1997 and first half of 1998. Same-store sales declined 7.6% and 5.0% for the 13 week and 26 week periods, respectively. For the 13 weeks ended August 1, 1998, total comprehensive loss was $14.8. For the 13 weeks ended August 2, 1997, total comprehensive income was $0.2. Total comprehensive loss for the 26 weeks ended August 1, 1998 and August 2, 1997 was $37.1 and $16.9, respectively. EQUALNET COMMUNCIATIONS: Subsidiary Files Chapter 11 ---------------------------------------------------- Equalnet Corp., a subsidiary of Equalnet Communications Corp., Houston, has filed for chapter 11 protection, according to a newswire report. The filing is part of the parent company's financial restructuring plan. Equalnet President and CEO Mitchell Bodian said the filing will reduce the debt burden created by the prior management but emphasized that the holding company parent has not filed for bankruptcy and does not plan to. Equalnet is a facilities-based telecommunications company that provides discounted long-distance telecommunications services. (ABI 14-Sept-98) FPA MEDICAL: Court Denies Delay in Case --------------------------------------- On Thursday the U.S. District Court for the District of Delaware denied a request by the California Department of Corporations for an emergency court order against FPA Medical Management Inc. to delay the company's bankruptcy case and pursue a claim against its California affiliate for allegedly illegally transferring money to the parent company. In July, FPA of California and its parent company filed chapter 11. One week earlier, regulators filed an order against FPA of California for transferring $32 million to the parent company earlier in the year. The order required the state affiliate to stop using its funds to meet the parent company's obligations. FRETTER: Jones Day Coughs Up $230,000 ------------------------------------- While denying allegations of misconduct in a bankruptcy case, the Cleveland law firm Jones, Day, Reavis & Pogue has agreed to return $230,000 in fees to a client and adopt new standards to detect possible conflicts of interest. The settlement should close the book on a six-month investigation by the Office of the U.s. Trustee into Jones Day's alleged failure to properly disclose connections it had with creditors of Fretter Inc., a Jones Day client that declared Chapter 11 bankruptcy in 1996. A hearing on the proposed settlement is scheduled for Sept. 10 before U.S. Bankruptcy Court Judge Pat Morgenstern- Claren. Despite agreeing to return $230,000 it was paid by Fretter, Jones Day says its relationships with Fretter's creditors weren't improper and did not influence the bankruptcy case. "Part of the motivation (for the settlement was to get this issue out of the way and move on," said Fordham Huffman, the Jones Day partner who represented the firm in the matter. "We do not believe our activities were improper." The $230,000 represents 42% of the $543,804 in fees collected by Jones Day in the Fretter bankruptcy case through Dec. 17, 1997. Jones Day has not filed an updated account of its billings in the case since that date. In addition to repaying Fretter, Jones Day has adopted a "comprehensive policy regarding procedures to enable it to become better aware of potential conflicts of interests so that they may be disclosed earlier," according to a proposed settlement filed Aug. 11 by the U.S. Trustee. Jones Day officials would not disclose specifics of the new monitoring system except to say that it has been implemented at its 10 offices in the United States. The U.S. Trustee earlier this year alleged that Jones Day violated the Bankruptcy Code by failing to properly disclose legal work it did for two of Fretter's creditors, Silo Inc. and Bankers Trust Commercial Corp. Brighton, Mich.-based Fretter is a former retailer of home electronic goods. It filed for bankruptcy protection in Cleveland. U.S. Trustee Donald Robiner said the settlement is a "fair compromise." "If there's any message here, it's that (law firms) should be more vigilant about disclosure," he said. This marks the second time in less than a year that Jones Day has returned fees to resolve an investigation even though it denied any violation of bankruptcy rules. In a case resolved late last year, the U.S. Trustee's office in Delaware said Jones Day failed to disclose fees it collected from Fruehauf Trailer Corp. prior to representing the company in a bankruptcy case. Law firms are required to disclose all fees and legal work done on behalf of a bankruptcy client in the 90 days immediately preceding a filing. The allegations regarding Fruehauf prompted Jones Day to withdraw from the bankruptcy case and to return $385,000 in fees, according to a settlement reached Oct. 30, 1997, in Delaware. (Copyright UMI Company Crains Cleveland Business; 08/24/98) GENERAL WIRELESS: Plan Confirmed, Order Stayed ---------------------------------------------- Amid numerous objections from the Federal Communications Commission, the U.S. Bankruptcy Court in Dallas confirmed the reorganization plan proposed by General Wireless Inc. and its subsidiaries on Sept. 9, but the district court stayed enforcement of the confirmation order until Sept. 30. The U.S. District Court in Dallas delayed the order's execution until Sept. 30 "to protect this Court's jurisdiction to consider the United States' motion for Stay Pending Appeals and Renewed Motion for a Stay of the Enforcement of the Bankruptcy Court's June 4, 1998 Judgment." (Federal Filings Inc. 14-Sept-98) GOLF TRAINING SYSTEMS: Files Chapter 11 --------------------------------------- Golf Training Systems, Inc. announced that it has filed for bankruptcy and intends to reorganize under Chapter 11 of the bankruptcy code. In early July, GTS announced that it was in default on a $1 million Senior Secured Note which matured on June 30, 1998. Since that time it has been in continuing negotiations with its Senior Secured Lender, Meadowcroft Golf Associates, Inc., of Westport, CT, the assignee of Mr. John H. Laeri, Jr., under the loan agreement between GTS and Mr. Laeri dated December 31, 1997. The loan is secured by substantially all of the Company's operating assets. Early this week, while the Laeri discussions were continuing, GTS received notice from Mr. David Leadbetter that it is also in default under the terms of a five year contract that terminates on December 31, 2002 which obligates GTS to pay Mr. Leadbetter about $144,000 a year in minimum guaranteed royalties in return for giving GTS exclusive worldwide distribution rights to golf training aids endorsed by Mr. Leadbetter. Mr. Leadbetter states he is owed $48,000. HOMEPLACE STORES: Takes $30M Charge to Close 10 Stores ------------------------------------------------------ HomePlace Stores Inc. took a charge of $30 million in June related to its efforts to close 10 stores by the end of this month. The company is closing the stores as part of its strategy to emerge from Chapter 11 bankruptcy protection. About $20 million relates to the claims landlords of the 10 store locations may be able to make against HomePlace due to lost rental revenue if HomePlace decides to reject the leases on those properties, said Ann Julsen, company spokesperson. Most of the remaining charge came from the loss suffered in the liquidation of the inventory, fixtures and equipment at the stores. HomePlace sold the stores assets to a group of three liquidators for about 82 cents on the dollar, Ms. Julsen said. When HomePlace filed for Chapter 11 last January it had 98 stores. It closed 10 stores in April and expects to exit 10 more stores by the end of August. The size of the charge was disclosed in U.S. Bankruptcy Court filings by HomePlace on Aug. 10. The big charge on the store closings made up the lion's share of the company's total loss of $32.38 million in June. Through the first six months of the year, the retailer has lost $59.28 million on revenue of $192.48 million. There were some encouraging results in the June financial report. HomePlace said it had an operating profit of $551.866 in the month. In May, it reported an operating loss of $2.1 million. Meanwhile, HomePlace is getting ready to name a new chief executive officer. Larry Pollock, who has been serving as president and chief operating officer, is in negotiations with creditors to take over the CEO slot, too. A change in leadership could help negotiations with creditors on a plan to repay, in part, HomePlace's $307.2 million in debt and get the retailer out of bankruptcy. (Copyright UMI Company Crains Cleveland-08/24/98) JPE INC: Founder and Chief Executive Officer Resigns ---------------------------------------------------- Dr. John Psarouthakis, founder and chief executive of JPE, Inc. has resigned as an officer and director of the company. JPE was founded to acquire businesses with the opportunity for growth in the auto and truck industries. Since 1996, JPE has experienced a succession of operating problems in the acquired companies that caused losses and ultimately an inability to meet bank loan covenants. Several key management changes were made; and after substantial efforts by JPE management and employees, and the write-down of JPE's Canadian investment, the main operating difficulties of the domestic business units have been significantly resolved and the operations are on the path to profitability and increased value. As indicated in prior announcements, the company has been in negotiations with its senior bank lenders in connection with outstanding indebtedness. For several months, management has tried to develop a program that would restructure the bank debt so that value could be preserved for the shareholders. We have submitted proposals to the banking group that we believe would result in the maximum recovery for the lenders and other creditors, while benefiting shareholders, customers and employees. Despite these efforts, we have been unable to convince the bank group to ease the pressure on the company. I do not believe that I can make a constructive contribution to the company under those conditions and, therefore have resigned as chief executive officer and director. LEVITZ FURNITURE: Seeks Nod To Add $30M Loan To DIP Pact -------------------------------------------------------- Levitz is seeking court authorization to amend its $260 million debtor-in-possession credit agreement to borrow up to $30 million under a second term loan from Silver Oak Capital LLC and pay down a portion of the revolver. "The increased availability under the Revolving Line of Credit will enable the Debtors to continue implementing their short term business plan; assure that they have the requisite inventories for the upcoming fall selling season; facilitate the efforts to realize value for the Debtors' estates; and react to unexpected contingencies which arise on occasion in a large chapter 11 case," the furniture retailer said. Silver Oak committed to provide about $36.4 million under the original term loan. (Federal Filings Inc. 14-Sept-98) LYNX GOLF: Second Bidder On Scene --------------------------------- Morton Grove, Ill.-based TearDrop Golf Co. says that another bidder is interested in buying assets of bankrupt Lynx Golf of Carlsbad. Therefore, the bankruptcy court has postponed action on TearDrop's bid until Tuesday. MARVEL ENTERTAINMENT: Toy Biz Announces Merger Proposal ------------------------------------------------------- Toy Biz, Inc. (NYSE: TBZ) announced that at its Annual Meeting of Stockholders, held today, the two proposals relating to the acquisition by Toy Biz of Marvel Entertainment Group, Inc. were approved by holders of more than 90% of the outstanding shares of Toy Biz. These proposals provide for: (i) certain amendments to Toy Biz' certificate of incorporation, including, among other things, the reclassification of the existing two classes of common stock of Toy Biz into one class of common stock, the authorization of additional shares of preferred stock, and the change in the name of Toy Biz to "Marvel Enterprises Inc., and (ii) the issuance by Toy Biz of certain securities to effectuate its combination with Marvel. Each of these actions will take effect upon the acquisition of Marvel which is expected to occur in late September or early October, pursuant to the revised plan of reorganization for Marvel proposed by Toy Biz. As previously announced by Toy Biz, the revised plan of reorganization provides for the combination of Toy Biz and Marvel by merging Marvel with a newly formed wholly-owned subsidiary of Toy Biz. In the merger, each outstanding share of Marvel common stock will be canceled. Outstanding shares of Toy Biz common stock will remain outstanding after the merger. Shareholders also approved the re- election of ten members of Toy Biz' Board of Directors as well as the continuation of Ernst & Young as the Toy Biz' independent accountants. Mr. Joseph Ahearn, Toy Biz's CEO commented, "I am pleased to announce that the combination of our two companies has been approved by an overwhelming majority of our stockholders and that the process of merging Toy Biz and Marvel is nearing completion. We intend to continue the process of building the core Toy Biz product lines and expanding the merchandise and licensing potential of Marvel's extensive line of characters through a full range of media and promotional activities." MARVEL ENTERTAINMENT: NYSE Applies for Delisting of Stock --------------------------------------------------------- Marvel Entertainment Group Inc. was advised by letter from the New York Stock Exchange dated August 26, 1998 that the Securities and Exchange Commission, by order dated June 12, 1998, had granted the application of the NYSE for removal of the company's Common Stock from listing and registration on the NYSE under the Securities Exchange Act of 1934, as amended. Pursuant to the Order, the removal of the Registrant's Common Stock from listing and registration on the NYSE became effective at the opening of the trading session on June 15, 1998. On August 24, 1998, August J. Liguori, Executive Vice President and Chief Financial Officer of the Registrant, resigned effective August 31, 1998. Marvel, which has been in bankruptcy since December 27, 1996, intends to fill the functions performed by Mr. Liguori through a combination of Marvel's internal accounting and financial staff and outside advisors. On July 30, 1997, the Delaware District Court approved a global settlement between Marvel, Toy Biz and other interested parties to the bankruptcy proceedings and on July 31, 1998 confirmed the Fourth Amended Plan of Reorganization. Marvel anticipates the consummation of the bankruptcy proceedings on or about September 30, 1998. Upon consummation, the court appointed Chapter 11 Trustee will be replaced by the newly elected Board of Directors who will take over the management of Registrant. MONTGOMERY WARD: Two Creditor Groups Considering Plan ----------------------------------------------------- A year after Montgomery Ward Holding Corp. filed for bankruptcy protection, the company's two largest creditor groups are considering joining forces in a plan that could leave General Electric Co. in control of most of Ward's holdings. Talks are expected to begin in the next few weeks between leaders of Ward's creditors committee and GE Capital Services, which, as Ward's largest shareholder and a major lender, has a greater interest than anyone in keeping Ward's alive. Spencer Heine, Ward's general counsel, said questions about the reorganization talks, which are being initiated by lawyers for Ward's creditors committee, were "very speculative" and declined to comment further. The committee has presented no specific proposal to Connecticut-based GE Capital. A reorganization--rather than liquidation--most likely would result in a higher payout for creditors, including GE, which is owed nearly $1 billion in prebankruptcy debt. Setbacks in the attempts to sell the Signature unit have pushed Ward's creditors to the negotiating table. Cendant Corp. participated in the early bidding for Signature which raised creditors' hopes that Signature would sell for a handsome sum, perhaps as much as $1 billion. That was roughly the size of the bid from Cendant, then called HFS Inc. Ward's rejected that bid shortly after the bankruptcy filing, according to sources. GE is expected to seek a deal with a broader scope that eventually would result in Ward's emerging from Chapter 11 bankruptcy protection. Hence, the creditors plan to propose selling the store operation to GE, and, in return, seek a payout involving a combination of cash and notes but little equity. What is unclear is how much GE would be willing to pay for Signature with Cendant out of the picture, and whether GE would be willing to take over a troubled department store chain that continues to lose money and marketshare to competitors. GE must ensure that Ward's, which operates 292 department stores, stays in business in order for Signature and the credit card operation, which GE bought in 1988, to be profitable. That GE is interested in buying Signature is not in doubt. The company has attempted to purchase Signature in the past and was considered by creditors as a strong candidate to buy the business this year. However, GE has been viewed as an unlikely suitor for the store operation, especially after having written off $100 million of its investment in Ward's last year. Although the retailer's recent results met Ward's expectations, the creditors are dismayed that the company's still hemorrhaging. Last week, Ward's announced a second-quarter loss of $134 million, which included $58 million in costs for store closings and other reorganization measures, compared with a loss of $216 million during the same period last year. Revenues fell to $1.1 billion from $1.4 billion a year earlier, but that is attributed in part to the closing of 101 stores during the second half of last year and fewer markdowns and promotions this year. Margins improved, however, because Ward's, under the direction of CEO Roger Goddu, sold more high-profit goods, such as apparel. Meanwhile, Ward's is working to address the problems at Signature's dining club by forming alliances with United and American airlines, Mr. Heine says. Still, creditors contend that Ward's needs to close about 40 more underperforming stores. And they are taking a wait- and-see attitude about Ward's prediction that the store operation's earnings before interest, depreciation and amortization -- measure of cash flow--will turn positive by the fourth quarter. (Copyright UMI Company CrainsChicago- 08/24/98) MOTOROLA INC: Announces Revolutionary Product -------------------------------------------- Motorola Inc. said Friday that it will unveil a consumer- electronics product today that will revolutionize interactive home entertainment. Motorola says its "Blackbird" multimedia architecture will set a new standard for television set-top box technology. It combines DVD, video conferencing, high-speed Internet access, 3D-video gaming and digital TV reception. ONE PRICE CLOTHING: Files Quarterly Report With SEC --------------------------------------------------- One Price Clothing Stores, Inc. filed its quarterly report with the SEC for the period ended August 1, 1998. Net sales for the quarter ended August 1, 1998 increased 11.2% to $95,786,000 compared to $86,134,000 for the quarter ended August 2, 1997. Net sales for the six-month period ended August 1, 1998 increased 8.0% to $178,299,000 compared to $165,033,000 for the same time period in 1997. Comparable store sales for the second quarter of fiscal 1998 increased 10.1% compared to the same quarter last year. Comparable store sales for the six-month period ended August 1, 1998 increased 5.2% compared to the same time period in 1997. Net income for the first six months of fiscal 1998 increased 45% compared to the same time period in fiscal 1997. On June 19, 1998, the Company filed a report on Form 8-K dated June 10, 1998 to announce a 12.5% comparable store sales increase for May and to announce the resignation of its Executive Vice President and Chief Financial Officer. PETRIE RETAIL: Has Final Nod For CIT DIP Pact, Vendor Line ---------------------------------------------------------- Petrie Retail Inc. received final approval of its $20 million debtor-in-possession credit agreement with CIT Group/Business Credit Inc. and $6.5 million vendor credit line from CIT Group/Commercial Services Inc. The U.S. Bankruptcy Court in Manhattan also authorized the apparel retailer to retire its $96 million DIP facility from Chase Manhattan Bank using the proceeds from the sale of subsidiary G&G Shops Inc. "An immediate need exists for the Debtors to have the ability to obtain cash advances and Letters of Credit in order to continue the ordinary course operation of their business," the Sept. 9 order concludes.(The Daily Bankruptcy Review Copyright and ABI September 14, 1998) PORTACOM WIRELESS: Reports Distributions Under Plan --------------------------------------------------- Portacom Wireless Inc. reported in a Form 8-K to the SEC that on August 27, 1998, the company declared that a liquidating distribution be made to holders of the company's common stock and common stock equivalents as of September 10, 1998 . The distribution will be in the form of an undetermined number of the company's shares of the common stock of VDC Corporation Ltd. (AMEX: VDC) and is subject to the entry of an acceptable order by the United States Bankruptcy Court for the District of Delaware confirming the Registrant's liquidating plan of reorganization. This is expected to be the first in a series of not less than three distributions to holders of equity interests under the Plan. The Series One distribution will consist of the distribution of 1,325,000 shares of unrestricted common stock of the 5,300,000 shares of VDC common stock held by the Registrant and not reserved by management for either (i)distribution in connection with allowed creditor claims, (ii) liquidation for the payment of administrative expenses related to the Registrant's bankruptcy (including provisions for professional fees, operating expenses and potential income tax assessments), or (iii) return to VDC as an adjustment for escrowed cash used by the Registrant for the payment of allowed creditor claims and, if required, the funding of a reserve for disputed claims (collectively, the "Reserved VDC Stock"). The Series One distribution will occur as soon as practicable following the confirmation of the Plan. The distribution of the remaining VDC shares, exclusive of the Reserved VDC Stock, will be made in no less than two additional series based on the common stock holders as of the Record Date. Series Two will comprise twenty-five percent (25%) of the remaining VDC shares, exclusive of the Reserved VDC Stock, and will be distributed six months after the date the Plan is confirmed. Series Three will comprise the final fifty percent (50%) of the remaining VDC Stock, exclusive of the Reserved VDC Stock, and will be distributed twelve months after the date the Plan is confirmed. Once the distribution of non-reserved VDC common stock to allowed claim holders and equity holders is complete, it is expected that any surplus cash and/or Reserved VDC Stock then held by the Registrant will be distributed to the Record Date holders of the Registrant's common stock and common stock equivalents immediately prior to, and in connection with, the judicial dissolution of the Registrant. A hearing on the confirmation of the Plan has been scheduled for September 17, 1998. September 10, 1998 was fixed as the last day for filing written acceptances or rejections of the Plan. Should the Plan be confirmed by the Bankruptcy Court, the Registrant intends to sell a portion of the Reserved VDC Stock in order to fund the operations of the Registrant from the date the Plan is confirmed until the judicial dissolution of the Registrant. PRESLEY COMPANIES: Report of Stock Ownership -------------------------------------------- Goldman Sachs & Co. and The Goldman Sachs Group LP report to the SEC on September 10, 1998, beneficial ownership of 5,935,362 shares of common stock of Presley Companies, or 14.6% of the class. SMITH CORONA: Report of Stock Ownership --------------------------------------- Credit Research & Trading LLC reports beneficial ownership of 514,894 shares of Common Stock or 15.14% of the class, of Smith Corona Corporation. SNAKE EYES: On the Auction Block -------------------------------- Having failed to raise $3 million to sustain its present operations, the Snake Eyes Golf Clubs Inc. filed a "prepackaged" Chapter 11 and plans to sell the business in a modified auction, the company's lawyer said. Venture Access International, a Minneapolis investor group led by John Titcomb, made the initial offer to pay $1.4 million for the company. If Venture Access buys the golf club maker, it will likely keep Snake Eyes in Ponte Vedra, according to company officials. Snake Eyes has about $100,000 of secured debt and $3 million of unsecured debt, in addition to the $14.8 million of preferred stock owned by about 700 public shareholders. Nonetheless, company officials do not expect the auction price to raise enough money to repay investors in the company's stock. The company has not released 1997 financial reports, although officials have said they expected losses of $3.7 million on sales of $4.7 million. In 1996, it lost $5.6 million on sales of $3.5 million. Industry consolidation drove up operating costs, such as advertising and contracts for professional golfers, according to Hutchins. In May the Ponte Vedra firm sought to raise $3 million, but those efforts proved unsuccessful. Last month the Nasdaq small cap market removed Snake Eyes from the exchange for several rules violations, including lateness of required financial filings. The company's stock price was about $3 in June of last year but then began a steady downturn. It had been selling well below $1 for the past several months. It closed yesterday at $.0625. (Florida Times Union -09/09/98) TANDY BRANDS: Annual Shareholder Meeting ---------------------------------------- Tandy Brands Accessories, Inc. gives notice that the 1998 Annual Meeting of Stockholders of the company will be held on Tuesday, October 20, 1998. At the Meeting, the stockholders of the Company will be asked to elect two directors in Class II to serve for three-year terms expiring in 2001, or until their successors are elected and qualified. The Board of Directors has fixed the close of business on September 4, 1998 as the record date for the Meeting. Only holders of the Company's common stock at the close of business on that date will be entitled to notice of and to vote at the Meeting or any adjournment thereof. US LEATHER: Prepares to Issue Stock ----------------------------------- Beleagured US Leather were emerging from prepackaged bankruptcy proceedings at the end of June and preparing to issue stock. The reorganisation, which calls for bondholders to exchange their holdings for stock, was approved by the court on July 7. A waiting period for objections was due to expire shortly afterwards. The Milwaukee-based company filed for protection from creditors under Chapter 11 of the US Bankruptcy Code in mid May. The move followed the decision of the majority of bondholders to allow the company to swap their US$138 million in debt and accrued interest - payable in 2003 - for an equity position in the company. USL make finished leathers for the footwear, furniture and automotive markets. The company employ 1,800 and have manufacturing operations that include Pfister & Vogel, A L Gebhardt and Lackawanna Leather. (Leather; 09/01/98) U.S. SUGAR: Involuntary Petition Filed ------------------------------------ A petition to force U.S. Sugar Co. Inc. into involuntary bankruptcy has been filed by a California collection bureau on behalf of a West Seneca couple who obtained a $435,810 judgment against the sugar packing company. Creditors Service Bureau of San Diego filed the petition Sept. 3 in U.S. Bankruptcy Court to collect on the judgment awarded in 1994 in State Supreme Court. Neither officials of the collection bureau nor U.S. Sugar, could be reached for comment Tuesday on the filing. It was made on behalf of a West Seneca couple, Mark and Jeanne Sikorski, as a result of an job accident involving Sikorski in a building owned by U.S. Sugar. Mrs. Sikorski declined to comment when reached Tuesday. U.S. Sugar, headquartered at 692 Bailey Ave., was founded in 1960 and claims to be the last independent sugar- packaging firm in the country. A 27-month strike against the company by United Auto Workers Local 55 ended last December after the company showed union officials its books, indicating little or no profits in 1997. (Buffalo News- 09/09/98) VOXEL: Securities Delisted from Nasdaq SmallCap Market ------------------------------------------------------ Effective with the close of business on September 1, 1998, The Nasdaq Stock Market delisted the securities of Voxel from The Nasdaq SmallCap Market. Voxel's case under Chapter 11 of the United States Bankruptcy Code was converted to a Chapter 7 case on August 3, 1998. Meetings, Conferences and Seminars ---------------------------------- 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 17-18, 1998 AIC WORLDWIDE Retail Credit Card Management & Collections Chicago Hilton & Towers, Chicago, Illinois Contact: 1-212-714-1444 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 April 28-30, 1999 INTERNATIONAL FEDERATION OF INSOLVENCY PROFESSIONALS INSOL Bermuda '99 Conference of the Americas Castle Harbour Marriott Resort Contact: INSOL@weil.com ********* 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 * * *