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/raid1/www/Hosts/bankrupt/TCR_Public/981009.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, October 9, 1998, Vol. 2, No. 198 Headlines BN1 TELECOMMUNICATIONS: WorldCom Seeking Trustee BARRY'S JEWELERS: Samuel's Jewelers Reports Merger to SEC BOSTON CHICKEN: Captec Does Not Expect Long-term Effects BOSTON CHICKEN: Filing Lists Debts Of $1.84 Billion BRADLEES INC: Consolidated Statement of Operations CRIIMI MAE: Case Summary & 20 Largest Unsecured Creditors CRIIMI MAE: Class Action Alleges Misrepresented Success CROWN BOOKS: Taps Arthur Andersen As Its Accountants ELDER BEERMAN: Investor Relations Function To Davido ESSEX CORPORATION: Annual Meeting Set For November 9 FPA MEDICAL: General Claims Bar Date - November 17 FIDELITY BANCORP: Files Quarterly Report With SEC FOXMEYER: Negligence Lawsuit Against Deloitte & Touche HILLS STORES: Amends Loan and Security Agreement LANCASTER MALT: Owner Files For Bankruptcy Protection LEVITZ FURNITURE: Judge Sets Deadline To File Plans LEVITZ FURNITURE: Monthly Operating Report for August LEVITZ FURNITURE: Settlement of Retirees' Claims LIBERTY HOUSE: Seeks Exclusivity Extension To Feb. 28 NAL FINANCIAL GROUP: Announces Confirmation of Plan NEXTWAVE: Court Extends Exclusivity To Feb. 8 RAYTECH: Announces Tentative Settlement SNAKE EYES: Files Disclosure Statement SOUTHERN PACIFIC: Southern Pacific Bank Not Related STRAWBERRIES,INC: Court Confirms Liquidating Plan THERMADYNE HOLDINGS: Annual Meeting set For November 4 WANG LABORATORIES: Annual Meeting Set For November 24 WELCOME HOME: Order Confirms Plan DLS CAPITAL PARTNERS: Bond Pricing For Week of October 5 ********* BN1 TELECOMMUNICATIONS: WorldCom Seeking Trustee ------------------------------------------------ In the case of BN1 Telecommunications, Inc., WorldCom Network Services, Inc. joins the Official Committee of Unsecured Creditors' Emergency Motion objecting to the continued operation of business by the debtor and requesting appointment of a Trustee. WorldCom objects to the debtor's motion for a "fire sale" of its assets to FirstCom LLC. WorldCom states that the proposed sale is self-imposed, because if not for the incompetence of current management, resulting in decreased revenues and increased expenses, there would be no need for the sale. WorldCom believes that a Trustee should be appointed to add value to the debtor's business operations. WorldCom states that if competent management, approved by WorldCom, were installed, WorldCom would be willing to consider providing telecommunications services to the debtor on credit. BARRY'S JEWELERS: Samuel's Jewelers Reports Merger to SEC --------------------------------------------------------- The Original Disclosure Statement and Plan of Reorganization, Dated April 30, 1998, was confirmed by the United States Bankruptcy Court, Central District of California (Los Angeles Division) by an order entered on September 16, 1998, and became effective on October 2, 1998. Pursuant to the Plan,(i) the former holders of common stock of Barry's Jewelers, Inc., a California Corporation received, in the aggregate, 263,158 warrants on a pro rata basis, each such Warrant entitling its holder to purchase one share of the common stock of Samuels Jewelers, par value $.001 per share, (ii) the former holders of 11% Senior Secured Notes due December 22, 2000, issued by Barry's, received, in the aggregate, and in exchange for their Senior Notes and $15 million in cash, approximately 4.75 million shares of the Common Stock and (iii) Barry's was reincorporated as a Delaware Corporation by means of merging with and into Samuels Jewelers. Additionally under the Plan, 250,000 shares of restricted Common Stock were issued to certain of Samuels Jewelers' executive officers. After the consummation of the transactions contemplated by the Plan, there were approximately 5,000,000 shares of Common Stock issued and outstanding. Immediately following the effectiveness of the Plan and the Merger, DDJ Capital Management, LLC, through funds managed or controlled thereby owned approximately 1,792,439 shares of Common Stock, or approximately 36% of the total shares of Common Stock issued and outstanding, and Mitchell Hutchins Asset Management, Inc., through funds managed or controlled thereby, owned approximately 998,511 shares of the Common Stock, or approximately 20% of the total shares of Common Stock issued and outstanding. Also, pursuant to the terms of the Plan, each of DDJ Capital and Mitchell Hutchins nominated two of the seven current directors of Samuels Jewelers. Under the terms of a Registration Rights Agreement among the Registrant, DDJ Capital and Mitchell Hutchins dated October 2, 1998, Samuels Jewelers granted certain registration rights to DDJ Capital and Mitchell Hutchins. Samuels Jewelers is automatically registered under the Securities Exchange Act of 1934, as amended as a successor to Barry's by operation of Rule 12g-3 under the Exchange Act. BOSTON CHICKEN: Captec Does Not Expect Long-term Effects -------------------------------------------------------- Captec Net Lease Realty Inc., a real estate investment trust (REIT) that invests in long-term net leased restaurant and retail properties, said yesterday that 20 of Captec's 27 Boston Market properties were included in the Boston Chicken chapter 11 filing, according to a newswire report. The REIT also said nine of the stores in Captec's portfolio have been closed. Captec's Boston Market properties are situated on prime real estate, and the company is optimistic about re-tenanting the properties if necessary. Captec said all Boston Market leases are current in rent payments through September 1998. (ABI 08-Oct-98) BOSTON CHICKEN: Filing Lists Debts Of $1.84 Billion --------------------------------------------------- Boston Chicken's Chapter 11 petition, filed Monday, lists total assets and debts of about $1.84 billion and $1.56 billion, respectively, as of July 12. The Golden, Colo.- based restaurant chain filed for bankruptcy to continue its restructuring efforts and has closed 178 of its 1,143 Boston Market locations. Boston Chicken owns 759 of the remaining 965 restaurants, and three independent developers own a total of 195 franchised locations. The court has approved on an interim basis a $70 million, 18-month, debtor-in-possession credit facility. (Federal Filings Inc. 08-Oct-98) BRADLEES INC: Consolidated Statement of Operations -------------------------------------------------- For the four weeks ended August 1, 1998, Bradlees Inc. reports a net loss of (6,008,000) on net sales of 83,551,000. (Bradlees Bankruptcy News Issue 43; Bankruptcy Creditors' Service Inc. 07-Oct-98) CRIIMI MAE: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Criimi Mae, Inc. 11200 Rockville Pike Rockville, Md. 20852 Type of business: Self-managed, full-service commercial mortgage company actively involved in acquiring, originating, securitizing and servicing commercial mortgages and mortgage-related assets. Court: District of Maryland, Souhtern Division Case No.: 98-23115 Filed: 10/05/98 Chapter: 11 Debtor's Counsel: Stanley J. Samorajczyk, PC Akin Gump Strauss Heuer & Feld LLP 1333 New Hampshire Ave, NW Suite 400 Washington, DC 20036 (202) 887-4288 Total Assets: $2,780,000,000 Total Liabilities: $2,150,000,000 Unsecured Debt held by more than 500 holders - $100,000,000 No. of shares of preferred stock 1,929,582 No. of shares of common stock 48,471,683 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ CRIIMI MAE Inc. Senior Notes Debt Securities 100,000,000 Prudential Securities Bridge Loan 50,000,000 First Union and Riggs Bank Bank Loan 40,000,000 Arthur Andersen Accounting Serv. 430,800 Standard & Poor's Rating Agency Fees 350,000 Thatcher Proffitt & Wood Legal Fees 331,473 RER Resources LP Consulting Fees 108,132 OTR CRI Building Rent 34,850 Sidley & Austin Legal Fees 26,346 Arent, Fox, Legal Fees 18,254 Peabody & Brown Legal Fees 12,478 Swidler, Berlin Legal Fees 12,001 Pastore Communications Consulting Fees 8,886 55Boston Post Rd Realty Trust Rent 5,819 Pine Street Investors, LLC Rent 4,548 Houston Post Oak Assoc Rent 10,440 General Motors Corporation Rent 4,883 Richards Layton & Finger Legal Services 14,591 CRIIMI MAE: Class Action Alleges Misrepresented Success ------------------------------------------------------- The following notice is issued by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. on behalf of its client, who, on October 7, 1998, filed a lawsuit in the United States District Court for the District of Maryland (Southern Division), on behalf of purchasers of the securities of Criimi Mae Inc. (NYSE:CMM) during the period between June 30, 1998 and October 5, 1998, inclusive. The complaint charges that CMM -- a commercial real estate investment trust -- and certain officers and directors of the Company during the relevant time period violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by, among other things, misrepresenting CMM's success and financial condition. Specifically, the Complaint alleges that defendants misrepresented that CMM's financial condition was strong and was largely insulated from market fluctuations. In fact, on September 25, 1998, defendants told the market that CMM would meet analysts' earnings expectations for the third quarter of 1998 and would sustain dividend levels. In addition, defendants claimed that, despite a volatile market, the Company would be able to meet all collateral calls. Despite this assurance, only ten days later, defendants shocked the market by announcing that the Company had filed for bankruptcy protection due to its inability to meet collateral calls from vendors. As a result, trading in the Company's securities has been halted. The Complaint alleges that members of the Class purchased their CMM securities at artificially inflated prices. CROWN BOOKS: Taps Arthur Andersen As Its Accountants ---------------------------------------------------- The Debtors, Crown Books Corporation, and its affiliated debtors, seek authorization to employ and retain Arthur Andersen LLP as accountants for the debtors. As of May 2, 1998 the debtors had, on a consolidated basis, assets of approximately $130,387,000 and liabilities of approximately $100,525,000. For the fiscal year ended January 31, 1998, Crown had total sales of approximately $297,505,000. The debtors are seeking the services of Arthur Andersen to provide tax services, prepare tax returns, assist the debtors in an ongoing dispute with the Department of Revenue of the state of California, and perform other necessary services. The debtors have agreed to compensate the firm with a fixed fee of $50,000 for preparation of the debtors' tax returns. For other services Andersen's partners hourly rates range from $350 to $450 and other range between $100 to $350 per hour. ELDER BEERMAN: Investor Relations Function To Davido ---------------------------------------------------- The Elder-Beerman Stores Corp. (Nasdaq: EBSC) has reassigned responsibility for its investor relations function to Scott J. Davido. Davido, who is Senior Vice President, General Counsel and Secretary, will also serve as Director of Investor Relations. Davido will continue reporting to John A. Muskovich, President, Chief Operating Officer and Chief Financial Officer. Muskovich said the realignment of duties "was made to improve communications between the company and its analysts and investors, and to ensure that adequate resources are focused on this critical function. We are absolutely committed to an investor relations approach that provides clear and effective communications to the financial community and to existing and potential investors. Scott's strong legal and financial background, along with his deep understanding of our company's opportunities and strategies, make him ideally suited for this expanded role," he concluded. Davido joined Elder-Beerman in December 1997. Since that time, he has been deeply involved in key transactions, including the company's emergence from chapter 11 and subsequent conversion to public company status, its acquisition of the Stone & Thomas chain, its purchase of the Dayton Mall store from Mercantile Stores, and its recent S-1 registration and successful secondary offering of shares. The nation's tenth largest independent department store chain, The Elder-Beerman Stores Corp. now operates 59 stores in Ohio, Indiana, Illinois, Michigan, Wisconsin, Kentucky, West Virginia and Pennsylvania. Headquartered in Dayton, Ohio, Elder-Beerman reported total revenues of $607.9 million and net sales from store operations of $581.4 million on an operating base of 48 stores in 1997. The company's Bee-Gee shoe division operates 61 El-Bee and Shoebilee! shoe stores in seven states. Elder-Beerman also operates two furniture superstores. ESSEX CORPORATION: Annual Meeting Set For November 9 ----------------------------------------------------- Essex Corporation reports to the SEC its Annual Meeting of Stockholders to be held at the main Essex office, 9150 Guilford Road, Columbia, Maryland on Monday, November 9, 1998 at 10:00 a.m. As discussed in the Proxy Statement, the matters to be acted on at the Annual Meeting are: the election of directors; the ratification of the Company's 1998 stock option plan; and the ratification of the appointment of independent auditors. Additionally, there will be a presentation reviewing the Company's performance in 1997 and 1998 and prospects for 1999. There will also be an opportunity for Stockholders to present questions to management and to a representative of the Company's independent auditors. FPA MEDICAL: General Claims Bar Date - November 17 -------------------------------------------------- In a press release dated October 5, 1998, FPA Medical Management, Inc. announced that it filed its Disclosure Statement and Plan of Reorganization with the Bankruptcy Court in Wilmington, Delaware on September 30, 1998. The Company also announced that its notice and claims agent was mailing notice of the November 17, 1998 general claims bar date established by the Bankruptcy Court together with proof of claim forms to more than 50,000 creditors, equity holders and other interested persons and entities. In both its Disclosure Statement and the related hearing notice mailed to FPA's creditors and the other interested persons and entities, FPA also disclosed that The Official Committee of Unsecured Creditors, appointed on August 3, 1998 in FPA's jointly administered Chapter 11 cases, had informed the Company that the Committee does not support the Plan as proposed and that negotiations are continuing among the Company, the Prepetition and DIP Bank Groups and the Creditors Committee in advance of the Bankruptcy Court hearing scheduled for October 28, 1998 on the adequacy of the Disclosure Statement. Terms of the Plan provide for the cancellation of existing equity holders interests; warrants to be distributed to general unsecured creditors, including holders of the Company's 6.5% Subordinated Debentures due 2001; and a conversion of all or substantially all of FPA's prepetition secured debt to equity. FIDELITY BANCORP: Files Quarterly Report With SEC -------------------------------------------------- Fidelity Bancorp Inc. filed a FORM 10-QSB/A Amendment No. 1 with the SEC for the quarterly period ended June 30, 1998. Net income for the three months ended June 30, 1998 was $735,000 compared to $656,000 for the same period in 1997, an increase of $79,000 or 12.1%. Net income for the nine months ended June 30, 1998 was $2.1 million compared to $1.9 million for the same period in 1997, an increase of $152,000 or 7.9%. Net loss on real estate owned was $11,000 and $36,000 for the nine month period ended June 30, 1998 and 1997, respectively. A full-text copy of the filing is available via the Internet at: http://www.sec.gov/Archives/edgar/data/0000914317-98- 000613.txt FOXMEYER: Negligence Lawsuit Against Deloitte & Touche ------------------------------------------------------ A $500 negligence lawsuit has been lodged against Deloitte & Touche by the bankruptcy trustee for FoxMeyer, formerly the fourth-largest pharmaceutical distributor in the US. Andersen Consulting and German consulting outfit SAP is also being sued for the same amount. Deloitte is accused of acquiescing to a refinancing plan that contributed towards the company's insolvency in 1996. The firm audited FoxMeyer prior to the collapse and bankruptcy trustee Bart Brown alleged the firm should have known the company was insolvent before FoxMeyer entered into the $750 million loan arrangement with General Electric Capital Corporation. As a result of the deal, virtually all of the company's unencumbered assets were retained by GE Capital. "Deloitte issued an unqualified opinion to the company," Brown said. "We believe that the financial statement severely overstated the company's financial position." In addition, a $198 million dividend was transferred to its parent company FoxMeyer Health Corporation - now known as Avatex Corporation. The trustee alleged that Deloitte should have known that transfer of the dividend and security for the loan would leave the company in an extremely vulnerable position. A statement from Deloitte read: "There is no basis for these allegations which mischaracterise the nature of Deloitte & Touche's services. Our services were performed in accordance with applicable professional standards and we will vigorously contest this case." A $500 million suit was filed at the same time against the German ERP software firm SAP. AC was sued for the equivalent amount in July. According to the trustee, SAP convinced FoxMeyer to purchase its R/3 software but it could not cope with the volume of orders and eventually caused the falling returns that led to the company's bankruptcy. "FoxMeyer spent more than $30 million upgrading the system and it didn't work," he said. Brown also said that FoxMeyer sued AC because the firm failed to deliver software improvements it had promised. "It's a simple case of 'here's what they promised and here's what they delivered'. There's a huge discrepancy in the claim." A spokesman at AC suggested that such blanket accusations might be a sign of desperation. But Brown remained adamant: "We would not have filed those lawsuits if we didn't believe we have legitimate claims against all three firms." (IntlAccountingBulletin-09/11/98) HILLS STORES: Amends Loan and Security Agreement ------------------------------------------------ Hills Stores Company, through its wholly-owned operating subsidiary Hills Department Store Company has amended the Restated Loan and Security Agreement governing its secured revolving facility with a group of lenders. BankAmerica Business Credit, Inc. ("BABC") serves as agent for the lenders. The Amendment is effective on September 30, 1998, and: 1. Increases the maximum credit facility to $340 million; 2. Extends the term of the Agreement to February 5, 2002; 3. Increases the advance rate to 65% of eligible inventory for the period beginning on the first day of the fiscal month of December to the last day of the fiscal month of May and to 70% of eligible inventory from the last day of the fiscal month of May through the last day of the fiscal month of November, plus fifty percent (50%) of the face amount of outstanding documentary import letters of credit with respect to goods for which the agent bank is consignee; 4. Provides that the term loan under the existing facility is rolled into the revolving credit line; and 5. Eliminates the annual "clean-up" requirement. The Company paid a total fee of $730,000 to BABC and the other lenders in connection with the Amendment. LANCASTER MALT: Owner Files For Bankruptcy Protection ----------------------------------------------------- The owner of Lancaster Malt Brewing Co.'s property has filed for bankruptcy protection, and the brewery and restaurant are also likely to file, an attorney for the business says. In addition, the business is delinquent in repaying a $200,000 state loan that helped it get off the ground. Lancaster Malt Property Associates, which holds the deed for the micro-brewery at Plum and Walnut streets, sought protection from its creditors under Chapter 11 of the federal bankruptcy code. The property is owned by a partnership controlled by Michael Oehrlein, who along with his wife Loretta is the principal shareholder in the brewery and 78-seat restaurant. "Lancaster Malt Brewery has not filed for bankruptcy. That's all I can tell you," Oehrlein said Tuesday, referring questions to his attorney, Dale E. Lapp. Lapp reiterated the brewery landlord - and not the brewery or restaurant - had filed for bankruptcy. He claimed the action does not impact those businesses. But this morning, Lapp said that Chapter 11 filing for the brewery is probable. "It's fair to say that the operation of the real estate and the company are related and that filing of the business is likely to occur," Lapp said. He said the brew pub will stay open its usual hours while its finances are restructured under a court-approved reorganization plan. The filing for the business was made in U.S. Bankruptcy Court in Philadelphia on Friday, federal court records show. It shields the company from its creditors while allowing it to continue to operate. Oehrlein began the business in 1995 with $1.3 million, from a bank loan, investor equity, a federal Small Business Administration loan and a state enterprise zone loan. Repayment of the $200,000 state loan, which was administered through the city, has been listed as delinquent in recent months, city records show. Oehrlein is the single general partner in Lancaster Malt Property Associates. Property records show he purchased the 1880s-era tobacco warehouse in December 1994 for $245,000. The land and renovated building is now assessed at $420,500. Lapp said the next step in the Chapter 11 process is the filing of schedules identifying creditors of the partnership. That should occur within the next month, he said. Following those filings, there will be a period of time to consider restructuring, Lapp said. Since the business started in 1985, it has expanded rapidly. In 1996, in it's first full year of operation, Lancaster Malt Brewery filled 4,000 kegs and 661,000 bottles with its homemade ales, porters and lagers. Sales for the wholesale and retail business were about $1.6 million during the company's first year. Oehrlein expected to increase sales by a third in his second year, newspaper records show. (Intelligencer Journal Lancaster - 10/07/98) LEVITZ FURNITURE: Judge Sets Deadline To File Plans --------------------------------------------------- Judge Mary Walrath, the newly appointed judge in the case of Levitz Furniture Inc. has entered an Order directing the Debtors to file their Plans of Reorganization, together with their Disclosure Statements, pursuant to Rule 3016 of the Federal Rules of Bankruptcy Procedure and 11 U.S.C. Sec. 1125 on or before March 1, 1999. Judge Walrath's Order does not provide for any extensions of that deadline. (Levitz Bankruptcy News Issue 25; Bankruptcy Creditors' Service Inc. 08-Oct-98) LEVITZ FURNITURE: Monthly Operating Report for August ----------------------------------------------------- For the fiscal month ending August 31, 1998 Levitz Furniture Inc. reports a net loss of (3,955,000) on net sales of 58,516,000. (Levitz Bankruptcy News Issue 25; Bankruptcy Creditors' Service Inc. 08-Oct-98) LEVITZ FURNITURE: Settlement of Retirees' Claims ------------------------------------------------ Twenty-six of the Debtors' former executives (and their spouses or former spouses) have filed proofs of claim asserting over $30,000,000 due on account of claims arising under the Debtors' 1991 supplemental executive retirement plan, life insurance program and other employment-related plans and programs. The Debtors entered into negotiation with the Retirees. Those negotiations focused on the valuation of the Retirees' Claims, actuarial estimates, and the probability of success in litigating the value of the Retirees' Claims. The negotiations resulted in a settlement, subject to court approval of the Retirees' Claims for approximately $10,000,000. The Debtors believe that this settlement of the Retirees' Claims is advantageous to their estates and, accordingly, request approval of this compromise and settlement pursuant to Bankruptcy Rule 9019. (Levitz Bankruptcy News Issue 25; Bankruptcy Creditors' Service Inc. 08-Oct-98) LIBERTY HOUSE: Seeks Exclusivity Extension To Feb. 28 ----------------------------------------------------- Liberty House is again asking the court to extend its exclusive periods to file a reorganization plan and solicit acceptances, this time through Feb. 28 and April 30, respectively. The motion focuses on the importance of the holiday season to the retailer's results. This is the second time the Hawaiian department store chain requested an extension into the new year. In advance of the first exclusivity hearing, Liberty House, its lenders, and the official creditors' committee reached an agreement to scale back the extension to the current Nov. 13 deadline. (Federal Filings Inc. 08-Oct-98) NAL FINANCIAL GROUP: Announces Confirmation of Plan --------------------------------------------------- NAL Financial Group Inc. received confirmation of its First Amended Plan of Reorganization at a hearing held on September 22, 1998. The Plan has a total of thirteen (13) separate classes of creditors, twelve (12) of which are impaired. Classes 7 and 8, which consist of creditors whose allowed claims arise out of the purchase or sale of NALF's common stock or the ownership of that stock, respectively, did not receive ballots and are deemed to have rejected the Plan. Of the remaining ten (10) impaired classes of creditors, Classes 2, 3, 4(1), 5, 6 and 7 accepted the Plan. Class 5 consists of the allowed claims of general unsecured creditors that accepted the Plan by 84.958% in dollar amount and 88.889% of the total number of ballots filed. The Debtor NALF, when reorganized, will issue new equity interests as set forth in Article V, Section A, P.5.1 of the Plan. The new equity interests will be issued on the Effective Date and when issued, Greenwich and Conseco will own the Reorganized Debtor NALF which in turn will own all of the stock of the Reorganized Debtor NALA which in turn owns all of the stock of the Reorganized Debtor Autorics. As a condition precedent to that event occurring, the Plan as well as the respective term sheet agreements require Conseco and Greenwich to contribute new equity capital and to make available working capital loans according to the formula set forth in Article V, Section C, P.5.3 of the Plan. The precise amount of equity capital Conseco and Greenwich are to contribute is not yet determined since it is a function of what the amount of cash the Debtors have remaining on hand after the payments that are required in Articles III and IV of the Plan have been made (Conseco and Greenwich are each making substantial new value contributions to the Debtors). NEXTWAVE: Court Extends Exclusivity To Feb. 8 ---------------------------------------------- The court extended NextWave Personal Communication Inc.'s exclusive periods to file a reorganization plan and solicit plan acceptances from Oct. 6 and Dec. 4 to Feb. 8 and April 9, respectively. The court granted the personal communications provider a shorter-than-requested extension after an Oct. 1 hearing. NextWave sought an extension of the exclusive periods to March 30 and May 28, respectively, citing the need to replace disqualified counsel Weil Gotshal & Manges and continue working with creditors, vendors and investors to develop a comprehensive business plan that would entail the build out of NextWave's D-, E-, and F-Block licenses to provide service to about 53 million customers. (Federal Filings Inc. 08-Oct-98) RAYTECH: Announces Tentative Settlement --------------------------------------- Raytech Corporation (NYSE: RAY) announced that it has reached a tentative settlement with its creditors and equity holders with respect to a consensual plan of reorganization to be filed in its Chapter 11 bankruptcy case which commenced in March 1989. Parties to the settlement are Raytech, general unsecured creditors, including present and future asbestos claimants, Connecticut and U.S. environmental agencies and equity holders. Terms of the settlement provide for the general unsecured creditors to receive, through a trust, 90% of the stock of reorganized Raytech and the equity holders to receive the remaining 10%. The dilution reflects court decisions adjudging Raytech to be a successor to liabilities of Raymark Industries, Inc. that substantially exceed the value of Raytech. The corporate restructuring of Raytech in 1986 was ruled invalid in the decisions. Confirmation of a consensual plan of reorganization could take from 12 to 18 months. Raytech Corporation is headquartered in Shelton, Connecticut, with operations serving world markets for energy absorption and power transmission products, as well as custom-engineered components. SNAKE EYES: Files Disclosure Statement -------------------------------------- Snake Eyes Golf Clubs, Inc. filed its Disclosure Statement on September 23, 1998. The debtor's plan provides for the sale of the debtor's assets and business, free and clear of liens and encumbrances, pursuant to a modified auction procedure. The company has a "back-up" contract to sell the assets for $1.4 million, which will provide the minimum opening bid for the auction. The company owes approximately $3 million to trade creditors. The debtor projects that the net sale proceeds to be derived from the sale of the debtor's assets pursuant to the Asset Purchase Agreement will be not less than $1.4 million and not more than $3.1 million. SOUTHERN PACIFIC: Southern Pacific Bank Not Related --------------------------------------------------- Southern Pacific Bank, a California corporation which is a wholly owned subsidiary of Imperial Credit Industries, Inc. (Nasdaq: ICII) today issued a statement seeking to eliminate any customer confusion over the recently announced bankruptcy filing by a separate company, Southern Pacific Funding Corporation. That filing does not in any way affect Southern Pacific Bank. Stephen Shugerman, Southern Pacific Bank's President, stated: "Our bank is a separately incorporated entity, regulated by the California Department of Financial Institutions and the Federal Deposit Insurance Corporation, which insures the bank's saving and certificate of deposit accounts. We are not directly affiliated with the company that today filed for Chapter 11 bankruptcy protection, Southern Pacific Funding Corporation, which is an Oregon-based mortgage banking company. Our bank remains a well capitalized and profitable institution." STRAWBERRIES,INC: Court Confirms Liquidating Plan ------------------------------------------------- Following an Oct. 2 hearing, the court confirmed Strawberries Inc.'s joint liquidating plan. The former record retailer, now known as Milford Resolution Inc., filed its plan July 1 with the support of the official unsecured creditors' committee, the unofficial committee of secured vendors, and Equitable Capital Private Income & Equity Partnership, the single largest creditor. Strawberries sold substantially all of its assets to a unit of Trans World Entertainment Corp. last year for about $26 million. (The Daily Bankruptcy Review and ABI 08-Oct-98) THERMADYNE HOLDINGS: Annual Meeting set For November 4 ------------------------------------------------------ Notice is hereby given that the Annual Meeting of Stockholders of Thermadyne Holdings Corporation, a Delaware corporation, will be held on Wednesday, November 4, 1998, at 10:00 a.m., local time, at the offices of Victor Equipment Company, 2800 Airport Rd., Denton, Texas 76202, for the following purposes: 1. To elect seven directors; 2. To consider and act upon a proposal to approve the Thermadyne Holdings Corporation Bonus Plan; 3. To consider and act upon a proposal to approve the Thermadyne Holdings Corporation Management Incentive Plan; 4. To consider and act upon a proposal to approve the Thermadyne Holdings Corporation 1998 Non-Employee Directors Stock Option Plan; and 5. To transact such other business as may properly come before the meeting or any adjournment thereof. The Board of Directors has fixed the close of business on October 1, 1998,as the record date for determining the stockholders entitled to notice of, and to vote at, the meeting or any adjournment thereof. WANG LABORATORIES: Annual Meeting Set For November 24 ------------------------------------------------------ The Annual Meeting of Stockholders of Wang Laboratories, Inc. will be held at the Radisson Heritage Hotel, 10 Independence Drive, Chelmsford, Massachusetts on Tuesday, November 24, 1998 at 10:00 a.m., local time, to consider and act upon the following matters: 1. To elect three Class II Directors, each to serve for a three-year term. 2. To approve the Amendment and Restatement of the Director Stock Option Plan. 3. To approve an Amended and Restated Certificate of Incorporation which would (i) change the name of the Company from "Wang Laboratories, Inc." to "Wang Global Corporation", (ii) increase the aggregate number of shares of Common Stock that the Company is authorized to issue from 100 million to 200 million, and (iii) eliminate certain obsolete provisions related to restrictions on the transfer of Common Stock. 4. To approve the issuance of additional shares of Common Stock to Ing. C. Olivetti & Co. S.p.A. ("Olivetti") in connection with the acquisition by the Company of the Services and Solutions Business of Olivetti ("Olsy") on March 17, 1998. WELCOME HOME: Order Confirms Plan --------------------------------- On September 28, 1998, the court entered an order approving and confirming the plan of Welcome Home Inc. DLS CAPITAL PARTNERS: Bond Pricing For Week of October 5 -------------------------------------------------------- Following are indicated prices for selected issues: Acme Metal 10 7/8 '07 20 - 22 Amer Pad & Paper 13 '05 48 - 52 Amer Telecasting 0/14 1/2 '04 23 - 25 Asia Pulp & Paper 11 3/4 '05 56 - 57 Boston Chicken 7 3/4 '05 5 - 7 (f) Brazos 10 1/2 '07 30 - 35 Brunos 10 1/2 '05 4 - 8 (f) CAI Wireless 12 1/4 '02 20 - 22 (f) Cityscape 12 3/4 '04 18 - 21 (f) E & S Holdings 10 3/8 '06 60 - 65 Globalstar 11 1/4 '04 57 - 60 Harah's Jazz 14 1/4 '01 21 - 23 (f) Hechinger 9.45 '12 69 - 71 Hills 12 1/2 '03 38 - 40 Levitz 9 5/8 '03 50 - 55 (f) Liggett 11 1/2 '99 70 - 72 Mobilemedia 9 3/8 '07 17 - 19 (f) Penn Traffic 9 5/8 '05 18 - 19 Royal Oak 12 3/4 '06 42 - 49 Service Merchandise 9 '04 48 - 49 Sunbeam 0 '18 12 - 14 Zenith 6 1/4 '11 24 - 26 (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 * * *