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/raid1/www/Hosts/bankrupt/TCR_Public/981123.MBXT R O U B L E D C O M P A N Y R E P O R T E R Monday, November 23, 1998, Vol. 2, No. 229 Headlines AHERF: Creditors Request Trustee AHERF: Washington Hospital Offers $19 Million For Hospital AMERITRUCK: Notification of Late Filing APPLIANCE RECYCLING: Files Quarterly Results CAMELOT MUSIC: Applies to Withdraw Registration Statement CITYSCAPE FINANCIAL: Reports Suspension of Loans to SEC CONSUMER PORTFOLIO: Notification of Late Filing DANKA: May File for Bankruptcy DOCTOR'S HEALTH: Files Bankruptcy Petition EMERALD GROUP: Case Summary & 20 Largest Creditors EQUITEX INC: Notification of Late Filing FPA: Former Doctors Want HMO's To Pay FPA MEDICAL: Indenture Trustee Seeks Data Room Access GEOTEK COMMUNICATIONS: Notification of Late Filing GOLDEN BOOKS: Doubts Going Concern HAYES CORP: Notification of Late Filing LIVENT INC: Garth Drabinsky Speaks Out LIVENT INC: DIP Funding Approved MATEC CORP: Files Quarterly Report With SEC NU KOTE HOLDING: Third Quarter Results ONCOR INC: Extreme Financial Difficulties PARAGON TRADE: Exclusivity Extended As Talks Progress PEGASUS GOLD: Third Quarter Results PHP HEALTHCARE: Ambulatory Healthcare Responds PHP HEALTHCARE: Files Bankruptcy Petition PITTSBURGH PENGUINS: Judge Doesn't Like Terms of Loan POCKET COMMUNICATIONS: FCC To Sell Licenses PROXIMITY COMMUNICATIONS INC: Case Summary & 20 Creditors PROXIMITY COMMUNICATIONS LLC: Case Summary & 20 Creditors QUADRUM BANK: Sells Services Division to David J. Joseph RAND ENERGY: Case Summary & 20 Largest Creditors READING CHINA: Paragon Capital to Provide Financing SANWA BANK: Reports $50 Billion in Bad Loans SMITH TECHNOLOGY: Lenders File Plan w/o Panel Support SUN TV: Universal Asset Wins GOB Auction TELETRAC HOLDINGS INC: Reports Quarter Results VALU FOOD: Files Chapter 11 Bankruptcy WASTEMASTER'S INC: Notifies the SEC of Late Filing WEINER'S STORES: Reports Third Quarter Results ********* AHERF: Creditors Request Trustee -------------------------------- The Pittsburgh Post-Gazette reports on November 19, 1998 that creditors of the Allegheny Health Education and Research Foundation have asked Federal Bankruptcy Judge M. Bruce McCullough to appoint a trustee to run it. The creditors committee's motion requesting a trustee was filed Monday and was put under court seal at the insistence of the judge, according to a party to the case who asked not to be identified. AHERF: Washington Hospital Offers $19 Million For Hospital ---------------------------------------------------------- The Pittsburgh Post-Gazette reports on November 20, 1998 that Washington Hospital launched what the for-profit sector would regard as a hostile takeover bid for AHERF's Canonsburg Hospital. Washington said it offered $19 million for the neighboring hospital - $15 million of which would be used to assume Canonsburg's debt. The other $4 million would be used to upgrade Canonsburg' s emergency and acute care facilities, Washington said. Washington President Telford Thomas said his institution made the bid to ensure that Canonsburg's services and its ability to refer patients for more advanced care are not interrupted by AHERF's bankruptcy. AHERF, however, immediately dismissed the bid as self- serving. AMERITRUCK: Notification of Late Filing --------------------------------------- Ameritruck Distribution Corp. notifies the SEC that the company requires additional time to prepare the Company's financial statements to be included in the Quarterly Report on Form 10-Q for the quarter ended September 30, 1998 to be filed by the company. On November 9, 1998, the Company filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Court in the Northern District of Texas, Dallas Division. Due to efforts being focused on daily cash management and on the preparation of the Chapter 11 petitions, as well as the loss of administrative employees, the Company has not been able to prepare the financial information for filing the Form 10-Q. In addition, management must review the financial statements in relation to the recently filed petitions and the financial information required by the Court. APPLIANCE RECYCLING: Files Quarterly Results -------------------------------------------- APPLIANCE RECYCLING CENTERS OF AMERICA, INC. reports the results of its operations to the SEC in its quarterly report for the period ended October 3, 1998. Recycling revenues increased for the three months ended October 3, 1998 by $435,000 or 30.8% and decreased for the nine months ended October 3, 1998 by $868,000 or 17.8% as compared to the same periods in the prior year. The company recorded a net loss of $81,000 (or $.07 per share) for the three months and $1,715,000 (or $1.44 per share) for the nine months ended October 3, 1998, compared to a net loss of $210,000 (or $.18 pershare) and $74,000 (or $.07 per share) in the same periods of 1997. CAMELOT MUSIC: Applies to Withdraw Registration Statement --------------------------------------------------------- Camelot Music Holdings, Inc. sent the following letter to the SEC: Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 RE: Camelot Music Holdings, Inc. Registration Statement on Form S-1 (File No. 333 56811) Ladies and Gentlemen: On behalf of Camelot Music Holdings, Inc., a Delaware corporation (the "Company") and pursuant to the provisions of Rules 477 and 478 of Regulation C promulgated under the Securities Act of 1933, we are hereby making an application for the withdrawal of the Company's Registration Statement on Form S-1 (File No. 333-56811) (the "Registration Statement") relating to the Company's Common Stock, $.01 par value (the "Common Stock"). The Company seeks to withdraw the Registration Statement in light of the proposed stock-for-stock merger between the Company and Trans World Entertainment Corporation ("Trans World"). The definitive merger agreement (the "Merger Agreement") is subject to customary closing conditions, including approval by both Trans World and Camelot stockholders, and is expected to close early next year. Under the Merger Agreement, each stockholder of the Company will receive 1.9 newly issued shares of Trans World common stock for each share of Common Stock, and the Company will become a wholly owned subsidiary of Trans World. Given these facts, we submit that the Commission's consent to the withdrawal of the Registration Statement would be consistent with the public interest and the protection of investors. CITYSCAPE FINANCIAL: Reports Suspension of Loans to SEC ------------------------------------------------------- Cityscape Financial Corp. Of Delaware files SEC FORM 8K stating that the company decided to suspend indefinitely all of its loan origination and purchase activities. The Company is notifying its brokers that it has ceased funding mortgage loans, other than loans that are in its origination pipeline for which it had issued commitments. The Company anticipates that it will continue to process such committed loans through the Company's debtor-in- possession financing facilities. A Bankruptcy Court hearing to consider confirmation of the Company's previously filed plan of reorganization under Chapter 11 of the Bankruptcy Code was originally scheduled for November 13, 1998 and had been adjourned to November 19, 1998. (States SEC; 11/19/98) CONSUMER PORTFOLIO: Notification of Late Filing ----------------------------------------------- Consumer Portfolio Services Inc. states to the SEC that, "The Form 10-Q and the Company's financial statements for the quarter ended September 30, 1998, could not be filed within the prescribed time period due to unforeseen delays arising in its preparation, attributable, in part, to the Company's relocation of its principal office, which is still in process. The Company's financial statements could not be finalized on a timely basis without unreasonable effort or expense." DANKA: May File for Bankruptcy ------------------------------ Photocopier supplier Danka Business Systems told the Securities and Exchange Commission that it would file for chapter 11 protection and similar bankruptcy laws in Great Britain and elsewhere if it could not resolve problems related to its acquisition of Kodak's office equipment business two years ago, according to Business Day. The group reported this month that its debts are about $1 billion. Danka's SEC filing indicates that Kodak stopped shipping supplies and parts to the company in October but had signed an interim agreement until the end of the month. Danka is renegotiating lease agreements with GE Capital after it demanded assurance that it would be paid. (ABI 20-Nov-98) DOCTOR'S HEALTH: Files Bankruptcy Petition ------------------------------------------ The Baltimore Sun reports on November 18, 1998 that Doctors Health Inc. of Owings Mills has filed for bankruptcy protection and reorganization. Blue Cross officials confirmed that Doctors Health has canceled its largest remaining contract, under which it cared for about 8,800 Blue Cross HMO patients. Dr. Scott Rifkin, who resigned as chairman of Doctors Health in April but remains a stockholder and a participating physician, said yesterday that he believes the company has about 25 employees managing medical practices. As recently as two months ago, it had about 150 headquarters staff, but many worked on contracts that since have been canceled. Creditors with the largest claims, according to the filing in federal bankruptcy court late Monday, are HBO & Co., an Atlanta-based health data company, $397,084; and Health Care Automation (HCA) Inc. of Owings Mills, $139,008. Doctors Health lost $40 million in the fiscal year that ended June 30. Over the past few months, Doctors Health lost its largest contract -- one that provided 56 percent of its managed-care revenue -- when NYLCare announced that it was dropping its Medicare HMO program in Maryland and some other states. Stewart B. Gold resigned as chief executive officer last month. He said the move was voluntary at a time the company wanted to cut administrative costs. EMERALD GROUP: Case Summary & 20 Largest Creditors -------------------------------------------------- Debtor: Emerald Group International, LLC 3907 Cobblers Lane Dallas, Texas 75287 Court: District of Delaware Case No.: 98-2339 Chapter: 11 Debtor's Counsel: Michael D. DeBaecke Michael B. Schaedle Blank Rome Comisky & McCauley LLP 1201 Market street, Suite 21 Wilmington, Delaware (302) 425-6400 20 Largest Unsecured Creditors: Name Amount ---- ------ Cyrus J. Keefer $580,000 Mt. Carmel Overseas Corporation, $233,000 Powell, Goldstein, Frazer & Murphy $25,000 Chilivis, Cochran, Larkins & Bever LLP $15,000 Southwestern Bell Mobile $1,000 MCI $750,000 Crest Transportation $400 Arch Communications $200 Southwestern Bell Business $100 EQUITEX INC: Notification of Late Filing ---------------------------------------- Equitex, Inc., a Delaware corporation filed a request with the SEC, seeking an extension until November 23, 1998 for the filing of its form 10-QSB quarterly report for the quarter ended September 30, 1998. The additional time is necessary in order for the company's auditors to complete the preparation fo the required financial statements. FPA: Former Doctors Want HMO's To Pay ------------------------------------- The Sacramento Bee reports on November 19, 1998 that California doctors on Wednesday petitioned the state to hold HMOs responsible for paying $60 million the physicians said they are owed by FPA Medical Management. The California Medical Association is trying to recoup money from dozens of HMOs that enlisted FPA to arrange for health care for their members. The association petitioned the California Department of Corporations, which regulates HMOs, to enforce a state code that holds health plans responsible for paying for the care their enrollees receive. The federal bankruptcy court overseeing FPA's case was asked to set aside money to pay California physicians. The court denied the request. For their part, health plans said that they already paid FPA once to arrange for the care of their enrollees. The HMOs said they should not be compelled to pay doctors as well. Doctors should look for repayment from FPA, said Walter A. Zelman, president of the California Association of Health Plans. FPA MEDICAL: Indenture Trustee Seeks Data Room Access ----------------------------------------------------- The indenture trustee for FPA Medical Managemnet Inc.'s 6.5% convertible notes is trying to gain access to FPA's Miami data room to examine documents related to the investigation of potential avoidance claims. "The Avoidance Actions potentially represent valuable claims which can act as the basis for meaningful discussions and negotiations concerning a consensual plan of reorganization among the Debtors, the [official creditors'] Committee, and the Bank Group," asserted First Union N.A. Initially, FPA allowed First Union access to the data room beginning on Oct. 29, noting that documents would be produced on a daily "rolling" basis until production was completed. However, at an Oct. 28 meeting, FPA informed First Union that access to the data room was terminated absent a court order. (Federal Filings Inc. 20-Nov-98) GEOTEK COMMUNICATIONS: Notification of Late Filing -------------------------------------------------- Geotek Communications Inc. notifies the SEC of a late filing of its Form 10Q for the following reason: "On June 29, 1998, Geotek Communications, Inc. ("Geotek") and 73 of its direct and indirect domestic subsidiaries filed voluntary petitions under Chapter 11. As part of the Chapter 11 Cases, significant matters, which the Registrant is required to disclose in the Registrant's report on Form 10-Q due November 16, 1998, were heard in the Bankruptcy Court the afternoon of November 13, 1998. Thus, the Registrant is unable to complete all information that is required to be included in its September 30, 1998 report on Form 10-Q by November 16, 1998." GOLDEN BOOKS: Doubts Going Concern ---------------------------------- Golden Books Family Entertainment Inc. doubts its ability to operate as a going concern and may file for bankruptcy. "[T]he Company's recurring losses from operations, liquidity and its ability to restructure existing debt with its creditors and net capital deficiency raise substantial doubt about its ability to continue as a going concern," the company told the Securities and Exchange Commission. For the second time in as many months, Golden Books said it plans to miss a scheduled interest payment. Golden Books noted that it has been negotiating a standstill agreement with its creditors. "If the Company is not successful in reaching an agreement with respect to the restructuring of its debt, and the Company cannot obtain additional capital, the Company may be forced to seek other alternatives, including protection under applicable bankruptcy laws." (Federal Filings Inc. 20-Nov-98) HAYES CORP: Notification of Late Filing --------------------------------------- Hayes Corporation relates to the SEC that on October 9, 1998, Hayes Corporation and certain of its subsidiaries filed for relief under Chapter 11 of the U.S. Bankruptcy Code. Since the filing, the Company has devoted its resources toward obtaining financing and continuing its operations and restructuring plan. The Company has experienced substantial employee turnover, especially in persons responsible for SEC filings and related matters. As a result of the Company's Chapter 11 filing, immediately following the end of its third quarter, the Company has not been able to obtain all the information necessary to provide the disclosures and information required to be included in its Form 10-Q by the filing due date. LIVENT INC: Garth Drabinsky Speaks Out -------------------------------------- A further statement from Garth Drabinsky about the allegations in the Livent Inc bankruptcy case. We are outraged by the allegations made by Livent, which attack our business and moral ethics. We are prepared -- at the proper time and in the appropriate forum -- to respond strongly and factually to each of the spurious allegations made against us. Livent's motivation is clear. The filing of this lawsuit, in conjunction with seeking bankruptcy protection, is an attempt to win the sympathy and patience of the company's bondholders, creditors and class action plaintiffs. Livent's actions are also intended to deflect attention from their own ill conceived business decisions. Although we are constrained from responding in detail to each of the charges made, we feel compelled to provide to the public important information on certain allegations: - The charges that we received improper personal benefits from Livent, including in excess of $7.5 million in payments as set forth in Livent's Statement of Claim, are completely false. The transactions in question took place prior to the formation of Livent as a public company in May, 1993. All of the funds received in this manner were for appropriate corporate purposes. The transactions in question took place between private entities. Further, we held no interest in the other private entities mentioned in Livent's statement of claim. - The allegation that travel points accumulated on Livent credit cards were converted to Mr. Gottlieb's personal use is false and provides further evidence of Livent's desperation to paint us in the most unflattering terms. Livent had an American Express corporate travel account held in Mr. Gottlieb's name from the early 1990s. The company's policy was that all travel points for billings on this card and other corporate cards would accrue to, and the points would belong to, Livent. Mr. Gottlieb has never made personal use of these points, nor has he attempted to redeem them either before or after his suspension. Mr. Gottlieb's counsel initially wrote to Livent's counsel on September 1, to correct this malicious and false allegation. Livent's restatement, announced yesterday, is an accounting sleight-of-hand. By shifting previously recognized income to future periods, while re-allocating expenses to previous periods for which we were responsible, new management is attempting to deflate the financial results of Livent associated with our tenure. We will vigorously defend ourselves against all of the unfounded charges and remain confident we will be vindicated. LIVENT INC: DIP Funding Approved -------------------------------- Livent Inc. announced that it had received court approval for US$5 million in short term Debtor-in-Possession (DIP) financing provided by a group of its directors. Approval came at a hearing of the U.S. Bankruptcy Court for the Southern District of New York. The approved funds are intended to address the company's short term financial needs. Livent's management believes that a substantially larger DIP facility is required by the end of the month for a successful reorganization. On November 18, Livent filed for reorganization under Chapter 11 of the U.S.Bankruptcy Code. The Ontario Court also approved appointment of Ernst & Young as monitor for Livent. A monitor, which is required under the CCAA, assumes reporting and other obligations to the Court and, through the Court, to the company's creditors. MATEC CORP: Files Quarterly Report With SEC ------------------------------------------- Mate Corp files a quarterly report with the SEC for the quarterly period ended October 4, 1998. Net sales from continuing operations for the quarter and nine months ended October 4, 1998 decreased 25% and 1%, respectively, from the comparable periods in 1997. The sales decreases during both periods are due to lower sales of imported product that is bought and resold. During the quarter ended October 4, 1998, based on the decreased sales and gross margin, offset in part by a decrease in operating expenses, the Company reported an operating loss of $279,000 compared to an operating profit of $64,000 in 1997. Based on the lower sales level and gross margin, and an increase in operating expenses, the Company reported an operating loss of $164,000 during the nine months ended October 4, 1998 compared to an operating profit of $62,000 during the comparable period in 1997. As of November 13, 1998, the number of shares outstanding of Registrant's Common Stock, par value $.05 was 2,716,948. NU KOTE HOLDING: Third Quarter Results -------------------------------------- NU KOTE HOLDING INC files its quarterly report with the SEC for the quarterly period ended September 25, 1998. Net sales for the quarter ended September 25, 1998 were $55.1 million, a decline of $17.6 million or 24.2% over the quarter ended September 26, 1997. For the quarter ended September 25, 1998, the Company recognized a net loss of $10.0 million, which was favorable to the net loss of $10.6 million reported in the previous year period. The decrease in net loss is directly attributable to: (1) improvement in gross margins; (2) lower selling, general and administrative spending; (3) reduced restructuring expenses; and (4) the extraordinary loss of $2.5 million realized in the prior year relative to the early extinguishment of debt. These favorable items were almost entirely offset by increased interest expense. Net sales for the six months ended September 25, 1998 were $119.3 million, a decline of $33.1 million (21.7%) over the six months ended September 26, 1997. For the six months ended September 25, 1998, the company recognized a net loss of $17.3 million, compared to the net loss of $16.5 million realized in the previous year period. ONCOR INC: Extreme Financial Difficulties ----------------------------------------- The Baltimore Sun reports on November 18, 1998 that Oncor Inc., the financially troubled Gaithersburg, Maryland biotechnology company, posted a loss of $5.5 million for its third quarter and warned that, due to "extreme financial difficulties," it may be forced to cease operations. Despite the dismal financial picture, the publicly held company said yesterday in its quarterly filing with the Securities and Exchange Commission that it has no plans to file for bankruptcy protection, but cannot guarantee that creditors will not force it into involuntary bankruptcy. The company, which reported in its third-quarter statement that it has less than $1 million in cash on hand to pay for operations, said it's facing three serious financial pressures: Holders of Series A convertible preferred shares are attempting to redeem the shares in an amount totaling $6 million; the unidentified holder of a $4 million note, which Oncor says in its SEC filing is secured by "substantially all of the assets" of the company, has called the loan due; and the company has been asked to satisfy unsecured obligations totaling $3 million. Oncor said that as of Sept. 30 it had $734,000 in cash on hand. The company's total operating expenses for the quarter were $8.9 million. The company's $5.5 million loss in the quarter that ended Sept. 30, on revenue of $2.3 million, was equivalent to 17 cents a share. Oncor reported a net loss of $6.9 million, or 27 cents a share, on revenue of $3.1 million in the corresponding period a year ago. For the first nine months, Oncor reported a net loss of $20.9 million, or 69 cents a share, on revenue of $9.5 million. PARAGON TRADE: Exclusivity Extended As Talks Progress ----------------------------------------------------- Paragon Trade Brands Inc.'s exclusive periods to file a reorganization plan and solicit plan acceptances were extended yesterday without a hearing through Dec. 18 and Feb. 18, respectively, since no objections to the extension were filed. The court in Atlanta approved an agreement on Oct. 19 between Paragon and patent infringement adversaries Procter & Gamble Co. (PG) and Kimberly-Clark Corp. (KMB) that initially extended exclusivity for 30 days. The stipulation also provided that, if no responses or objections were filed by Nov. 12, the court would automatically extend exclusivity for an additional 30 days to Dec. 18. (Federal Filings Inc. 20-Nov-98) PEGASUS GOLD: Third Quarter Results ----------------------------------- Pegasus Gold Inc. (PSGQF - OTC B.B.) recorded a net loss of $8.3 million, or $0.20 per share, in the third quarter of 1998, compared to a net loss of $432.8 million, or $10.47 per share, in the third quarter of 1997. Year-to-date the net loss was $28.7 million, or $0.69 per share, compared to a net loss of $436.0 million, or $10.57 per share, in the same period of 1997. Losses for both periods in 1998 are due to lower gold production, lower realized gold prices, and charges for reorganization items. Net losses in the third quarter and first nine months of 1998 include $3.1 million ($0.07 per share) and $10.8 million ($0.26 per share), respectively, for reorganization items. These charges consist primarily of professional fees. Net losses in the third quarter and the first nine months of 1997 include after-tax, non-recurring charges totaling $421.3 million and $425.1 million, respectively. The Bankruptcy Court approved the Disclosure Statements, as amended, for the Plan of Reorganization and the Joint Liquidating Plan of Reorganization on September 11, 1998. Subsequently, the notices of the confirmation hearings were sent to creditors, equity holders and other parties in interest regarding both cases. Confirmation of the plans by the Bankruptcy Court is pending. The Court is scheduled to hear final arguments on December 3 and 4, 1998 and has said it will make its final ruling on December 7, 1998. Holders of common shares in Pegasus Gold Inc. will not receive anything under the proposed Joint Liquidating Plan of Reorganization. PENNCORP FINANCIAL: Files Amendment to Credit Agreement ------------------------------------------------------- Penncorp Financial Group Inc. reports to the SEC an Amendment No. 4 and Waiver dated as of November 16, 1998 to a CREDIT AGREEMENT dated as of March 12, 1997. A full-text copy of the filing is available via the Internet at: http://www.sec.gov/Archives/edgar/data/0000890449-98- 000020.txt PHP HEALTHCARE: Ambulatory Healthcare Responds ---------------------------------------------- Ambulatory Healthcare Corp. of America (AHCA), a Manassas- based company specializing in outpatient health care services, has no comment regarding this morning's filing of Chapter 11 by PHP Healthcare Corp. William P. Danielczyk, president and chief executive officer of AHCA stated, "Under the current circumstances, AHCA is evaluating all of its options." AHCA had announced its interest in acquiring PHP on Nov. 11, 1998. PHP HEALTHCARE: Files Bankruptcy Petition ----------------------------------------- PHP Healthcare Corp. and two affiliates filed for bankruptcy protection last Thursday. The Reston, Va.-based company, which manages medical and administrative risk for HMOs and other health care companies, listed assets of $252.4 million and liabilities of $279.1 million in court papers filed here. Also filing for protection were PHP affiliates: PHP NJ MSO Inc., based in Reston, and Pinnacle Health Enterprises LLC. Pinnacle, based in New Brunswick, N.J., laid off nearly 400 employees more than a third of the work force on Sept. 4. On Oct. 27, New Jersey officials announced that they were taking over a financially troubled HMO overseen by Pinnacle. Two days later, police said, Pinnacle President Dr. Paul Frankel committed suicide at his home in Franklin, N.J. Among the 20 largest unsecured PHP creditors is the University of Maryland, with a $1 million claim for secondary health care. A medical management company, PHP Healthcare Corporation manages medical risk through the acceptance of global capitation arrangements with HMOs and other health care payors. The Company also offers a full range of management services to the physician groups and hospitals that participate in provider- based networks developed by PHP. PITTSBURGH PENGUINS: Judge Doesn't Like Terms of Loan ----------------------------------------------------- The Pittsburgh Post-Gazette reports on November 20, 1998 that bad deals got the Penguins into bankruptcy court. The judge there said he wasn't going to let the team make another one. U.S. Bankruptcy Judge Bernard Markovitz hedged at approving a $20 million loan to the team yesterday, saying he didn't like terms of the deal. Judge Markovitz was unhappy with loan provisions that left the Penguins owing open-ended fees. "When you say take it or leave it, I'm liable to say keep looking" for another lender, Judge Markovitz told lawyers. Judge Markovitz said he didn't like provisions requiring the team to pay $50,000 once the loan commitment letter was signed and then any additional expenses billed at closing. The judge also was unhappy that the Penguins already paid $25,000 toward the expenses without his approval. He told lawyers for the team and bank that he didn't object to reasonable expenses, but wasn't giving a blank check to the French bank or its New York attorneys. The bank has offered the $20 million at 1 percent above the prime lending rate. POCKET COMMUNICATIONS: FCC To Sell Licenses ------------------------------------------- A bankruptcy judge will allow the Federal Communications Commission to sell wireless telephone licenses held by Pocket Communications Inc., which is operating under bankruptcy protection, according to Reuters. Pocket won 42 personal communications service licenses in 1996 after the FCC's so-called C-block auction, but it filed for bankruptcy last year after not being able to raise enough financing to cover its bids. Initially the judge prohibited the FCC from re-auctioning the license, but relented at a recent hearing, the FCC said. (ABI 20-Nov-98) PROXIMITY COMMUNICATIONS INC: Case Summary & 20 Creditors --------------------------------------------------------- Debtor: Proximity Communications Inc One Executive Drive, Suite 500 Fort Lee, NJ 07024 Court: District of Delaware Case No.: 98-2435 Filed: 10/23/98 Chapter: 11 Debtor's Counsel: Joel A. Waite Young Conaway Stargatt & Taylor LLP 11th Floor Rodney Square North P.O. Box 391 Wilmington, Delaware (302) 571-6600 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ Darren Kimmel litigation Morris Torf litigation Michigan Dept. of Treasury Tax Claim $4,353 Michigan Dept. of Treasury Tax Claim $4,320 CSC Services $99 Commonwealth of Virginia Tax Claim $75 Michigan Dept. of Treasury Tax Claim $44,164 Montgomery County Maryland Tax Claim $1,585 Baltimore County, Maryland Tax Claim $580 State/Calif. Franchise Tax Board Tax Claim $397 Wisconsin Dept. of Revenue Tax Claim $375 Treasury of Center Line Tax Claim $192 CSC Services $165 Louisiana Dept. of Revenue Tax Claim $84 Illinois Dept. of Employment Sec. Unem. Insurance $81 Wisconsin Dept. of Revenue Tax Claim $45 State of Kansas Tax Claim $34 Kansas Dept. of Revenue Tax Claim $34 Commonwealth of Pennsylvania Tax Claim $11 State of California Tax Claim $1,363 City of Santa Monica Parking Ticket $64 City of Los Angeles Parking Tickey $74 Government of District of Columbia Tax Claim $162 PROXIMITY COMMUNICATIONS LLC: Case Summary & 20 Creditors ----------------------------------------------------- Debtor: Proximity Communications LLC One Executive Drive, Suite 500 Fort Lee, NJ 07024 Court: District of Delaware Case No.: 98-2434 Filed: 10/23/98 Chapter: 11 Debtor's Counsel: Joel A. Waite Young Conaway Stargatt & Taylor LLP 11th Floor Rodney Square North P.O. Box 391 Wilmington, Delaware (302) 571-6600 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ G. Jeff Mennen and The Wilmington Trust Company as co-trustees Contract * Susan Goddard and The Wilmington Trust Company as co-trustees Contract * G. Jeff Mennen Contract * G. Jeff Mennen, as Trustee Contract * Hellman & Friedman Contract * Mr. R. Craig Ross Contract * Michigan Dept. of Treasury Tax Claim $4,353 CSC Services $99 Commonwealth of Virginia Tax Claim $75 Illinois Dept. of Revenue Tax Claim $2,577 *The holders of these claims are parties to a Creditor Agreement, pursuant to which they are entitled to designate percentages of Available Cash, as defined in the agreement. QUADRUM BANK: Sells Services Division to David J. Joseph -------------------------------------------------------- Banca Quadrum has sold its services division, Ferroquadrum, to David J. Joseph Company, a United States company owned by the SHV North America Corporation. With the sale Quadrum raised 35 million dollars, increasing its capital to 450 million dollars. Recent reports revealed that Quadrum was close to bankruptcy, but the bank's president said that the sale has made the bank one of the best capitalized institutions in the system. (InfoLatina-11/19/98) RAND ENERGY: Case Summary & 20 Largest Creditors -------------------------------------------------- Debtor: Rand Energy Company 6001 Clubhouse Drive Ranco Santa Fe, California Type of business: Court: District of Delaware Case No.: 98-2411 Filed: 10/21/98 Chapter: 11 Debtor's Counsel: Robert D. Albergotti Haynes and Boone LLP 901 Main St. 3100 Nations Bank Plaza Dallas, Texas (214) 651-5000 and Laura Davis Jones Young Conaway Stargatt & Taylor LLP 11th Floor Rodney Square North P.O. Box 391 Wilmington, Delaware (302) 571-6600 20 Largest Unsecured Creditors: Name Amount ---- ------ Brougton Operating Corp. $2,530,190 Shell Western E&P Inc. $2,235,399 Nabors Drilling USA, Inc $1,889,304 Cudd Pressure Control, Inc. $1,841,402 Schooner Petroleum Services $1,770,187 T.K. Stanley Inc. $1,713,599 Taylor Directional & Horizontal $1,228,417 Patterson Rental Tools $1,132,193 Thomas Tools, Inc. $1,080,683 Kelley Bros. Contractors, Inc. $1,005,737 Oil & Gas Rental Services, Inc. $878,806 Dowell Schlumberger $688,192 Marathon Oil Company $681,893 SOLA Communications, Inc. $650,478 Bayard Drilling, LP $537,254 Pyramid Tubular Products, Inc. $468,547 TMBR Sharp Drilling, Inc. $414,209 Baker Oil Tools $379,291 Schlumberger Well Services $314,728 Baker Hughes $259,992 READING CHINA: Paragon Capital to Provide Financing --------------------------------------------------- Paragon Capital, Needham, Mass., announced yesterday that it and Foothill Capital Corp. will provide $35 million in debtor-in-possession financing to kitchen and housewares retailer Reading China & Glass Inc., according to a newswire report. Reading, which filed for chapter 11 protection on Oct. 29, operates 34 superstores in regional shopping centers throughout the southeastern and central United States. Paragon Capital is a partnership between The Ozer Group LLC, an asset valuation firm, and Foothill Capital Corp., an asset-based lender. (ABI 20-Nov-98) SANWA BANK: Reports $50 Billion in Bad Loans -------------------------------------------- SANWA Bank said that under Japan's new bad-loan standards, it had 2.44 trillion yen (US$20 billion) worth of such loans as of Sept. 30, roughly 1 trillion yen (US$8.3 billion) more than Sanwa would have reported under current regulations based on U.S. accounting standards. The new standards, set by the financial-revitalization law implemented last month, cover not only bank loans, but also the bank's whole line of credit, including securities lent and debt guarantees. The bank said it had 824.7 billion yen (US$6.8 billion) in loans to bankrupt companies, 1.29 trillion yen (US$10.7 billion) in high-risk loans and 319.1 billion yen (US$2.6 billion) in loans needing monitoring. (Futures World- 11/20/98) SMITH TECHNOLOGY: Lenders File Plan w/o Panel Support ----------------------------------------------------- The joint liquidating plan filed by Smith Technology Corp. and lenders The Chase Manhattan Bank and BTM Capital Corp. includes a global settlement between the parties that resolves the lenders' claims against former and current Smith officers. "It is highly unusual in the context of a chapter 11 case for a lender and a debtor to jointly propose a plan of reorganization without the advance concurrence of the [official] creditors' committee. However, these cases are unusual," the plan proponents said. Although the plan's framework arose from the extensive settlement talks between Smith, the committee, and the lenders, a final settlement involving all three parties could not be reached. (The Daily Bankruptcy Review and ABI Copyright c November 20, 1998) SUN TV: Universal Asset Wins GOB Auction ---------------------------------------- Sun Television & Appliances Inc.'s going-out-of-business sales will be conducted by Universal Asset Management, which outbid the stalking horse joint venture of Nassi Group LLC, Alco Capital Group, and Hilco/Great American Group with a final bid of 81.25 percent. The Nassi venture had guaranteed the consumer electronics chain 76 percent of the cost value of inventory at its remaining stores, based on a total merchandise value of at least $43.5 million. Sun TV representatives estimated the higher final bid would result in an added benefit to the estate of around $2 million. (The Daily Bankruptcy Review and ABI Copyright c November 20, 1998) TELETRAC HOLDINGS INC: Reports Quarter Results ---------------------------------------------- Teletrac Holdings Inc. files a Form 10-Q with the SEC for the period ended September 30, 1998 Total operating revenues for the three months ended September 30, 1998 were $7.2 million, compared to $7.3 million for the three months ended September 30, 1997. Operating losses incurred by the Company were $8.1 million for the three months ended September 30, 1998, as compared to $5.7 million for the three months ended September 30, 1997. Net loss increased to $11.1 million for three months ended September 30, 1998 from $7.3 million for three months ended September 30, 1997. Total operating revenues for the nine months ended September 30, 1998 were $20.7 million, compared to $18.7 million for the nine months ended September 30, 1997, an increase of 11%. Operating losses incurred by the Company were $22.5 million for the nine months ended September 30, 1998, as compared to $18.8 million for the nine months ended September 30, 1997. Net loss increased to $30.9 million for nine months ended September 30, 1998 from $20.1 million for nine months ended September 30, 1997. VALU FOOD: Files Chapter 11 Bankruptcy -------------------------------------- Valu Food has filed for chapter 11 protection as part of a restructuring plan to focus on selling prepared foods, according to the States News Service. Valu Food owes its largest creditors about $3.5 million, according to court documents. Some of its 14 markets will close as a result of the restructuring plan. (ABI 20-Nov-98) WASTEMASTER'S INC: Notifies the SEC of Late Filing -------------------------------------------------- WasteMasters Inc notifies the SEC of a late filing of Form 10-QSB stating, "The Form 10-QSB Report for the quarter ended September 30, 1998 could not be filed within the prescribed time period due to the voluminous amount of financial data that was required for the full disclosure and reporting of the multiple acquisitions that occurred during the quarter. Acquisition of the financial data for each company acquired has caused a delay in the consolidation accounting required for this 10-QSB Report. Due to the time required to compile and reconcile all of the necessary accounting information and to obtain proper financial consultation to properly account for the transactions in accordance with General Accepted Accounting Principles, additional time is necessary for preparation of the10-QSB Report. The reasons enumerated above, causing the inability to file timely, could not be eliminated by the Registrant without unreasonable effort or expense. WEINER'S STORES: Reports Third Quarter Results ---------------------------------------------- Weiner's Stores Inc. (OTCBB:WEIR) announced a net loss of $2.7 million, or $0.14 per share of common stock, for the third quarter of 1998 ended Oct. 31, 1998 compared to net income of $15.8 million for the third quarter of 1997. The net loss for the nine months ended Oct. 31, 1998 was $2.7 million, or $0.14 per share of common stock, compared to net income of $15.6 million for the first nine months of 1997. Fiscal 1997 third quarter and first nine months results were impacted by an extraordinary gain on debt discharge of $18.7 million and "fresh start" adjustments of $1.5 million resulting from the company's emergence from Chapter 11 reorganization in August 1997. The company previously announced that for its third quarter ended Oct. 31, 1998, sales were down 12.2% compared to the same period last year. *********** 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. 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