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/raid1/www/Hosts/bankrupt/TCR_Public/990217.MBXT R O U B L E D C O M P A N Y R E P O R T E R Wednesday, February 17, 1999, Vol. 3, No. 32 Headlines ALPHATEC: Losses Put At $300m AMERITRUCK: Seeks Postpetition Financing To Pay Insurance ARROW AUTOMOTIVE: To Sell Assets and Wind Down BRUNO'S: Reclamation Claim Procedure FIDELITY BANCORP INC: Stock Ownership Reported HIP OF NEW JERSEY: HMO Must Liquidate LIQUIDATION WORLD: Plans Continued Expansion MCA FINANCIAL: Case Summary & 20 Largest Creditors MCGINNIS PARTNERS: Equity Committee Objects To Conversion MOBILEMEDIA: Court Requires Supplemental Disclosures NEXAR TECHNOLOGIES: Order Authorizes Counsel NYTEST ENVIRONMENTAL: Stock Ownership Reported To SEC PAL: Ordered To Pay Creditors PARKS SAUSAGE: Loans Extended Before Sale PRECISION AUTO CARE: Stock Ownership Reported To SEC ROYAL OAK: Files for Bankruptcy ROYAL OAK: Obtains Order For Immediate Working Capital SERVICE MERCHANDISE: Stock Ownership Reported To SEC SOLO SERVE: Court Approves Professionals SPECTRAN CORP: Patent Agreement Filed With SEC STARMET CORP: Stock Ownership Reported To SEC SUN TELEVISION: Stock Ownership Reported To SEC THE CARE GROUP: Confirmation of Plan THE J. PETERMAN: Order Authorizes Secured Debt THE PHARMACY FUND: Seeks Approval of Stipulation UNIVERSAL STANDARD: Announces Out of Court Restructuring WATERMARC: To Sell Some Restaurants WORLDCORP: Files Chapter 11 Meetings, Conferences and Seminars ********* ALPHATEC: Losses Put At $300m ----------------------------- About US$300 million worth of funds belonging to Alphatec Electronic Plc were either lost from currency and other trading or misappropriated by the firm's former management, senior officials who prepared the firm's rehabilitation plan have revealed. The amount is the bulk of the $362 million debt owed by the firm to financial creditors, according to Jonathan Sisson and John Perrins, partners at PricewaterhouseCoopers, which formulated the rehabilitation plan of Alphatec Electronics. The plan was approved by the court last week. A total of 10 former management members, including former chief executive officer Charn Usawachoke, as well as former company auditor, KPMG, are now facing charges in court. Total claims against Charn and associates amount to 14.7 billion baht ($399.46 million), while the claim against KPMG is 20.7 billion ($562.50 million). Sisson and Perrins explained that the firm was left with about $40 million in assets and $10 million in equity when the rehabilitation plan was prepared, resulting in a hefty loss for financial creditors whose share of loss amounted to about 80 percent on the loans extended to the firm. In the approved plans, financial creditors have the flexibility to choose when and how much they will write off the bad loans to suit individual positions, since they can hold shares directly or indirectly in the new companies which will be set up to take over Alphatec. Despite the loss of 80 percent on their loans, the creditors have benefits linked with the performance of the business. Secondly, their right to pursue claims against the former management and auditor remain intact as charges are pending in civil and labor courts. According to the officials, the process of recovering about $300 million in claims is going to be lengthy and uncertain, so there is no value of this in the approved plan in order to reflect commercial reality. The court on Friday approved the plan, which took seven months to prepare and approve by creditors. The success underlined the fact that the business rehabilitation law is good and shows that it works in facilitating debt restructuring in a court-driven environment, according to Sisson. Sisson said the success also showed that foreign investors such as AIG and Investor AB of Sweden had confidence in Thailand as they will put in about $40 million into the rehabilitation. To further increase foreign confidence, Thailand will have to enact the economic reform bills, especially the foreclosure and bankruptcy laws. Exchange rate: $1 = 36.80 baht AMERITRUCK: Seeks Postpetition Financing To Pay Insurance ------------------------------------------------------- The debtors, Ameritruck Distribution Corp., et al., seek entry of a court order authorizing post-petition financing for the debtors' payment of insurance premiums with Cananwill, Inc. and Premium Financing Specialists, Inc. ("PFS"). The premium financing agreement with Cananwill provides for a cash down payment of $1,187,658, an amount financed of $3,562,976, eight monthly payments of $445,372 for a total of scheduled payment so to Cananwill of $3,562,976. The first payment is due March 5, 1999. The Premium financing agreement with PFS provides for a cash down payment of $90,000, an amount financed of $270,000, nine monthly payments of $31,002, an annual percentage rate of 7.95%, for a total of scheduled payments to PFS of $279,022. The first payment is due February 18, 1999. The debtors assert that the agreements are in the exercise of the sound business judgment of the debtors. The debtors cannot purchase insurance policies without severely depleting the debtors' cash reserves. Approval of the agreements will permit the debtors to maintain their normal business operations and thus preserve the reorganization value of their assets. The debtors state that the terms of the agreements are fair, reasonable and adequate. ARROW AUTOMOTIVE: To Sell Assets and Wind Down ---------------------------------------------- Arrow Automotive Industries, Inc. announced the sale of fixed assets and inventory associated with its crankshaft operation to Carolina Crank and Core, Inc., a South Carolina corporation. It further announced its intention to wind down its electrical operation located at its Morrilton, Arkansas facility on or before April 2, 1999. Arrow filed a voluntary petition for protection under Chapter 11 of the Bankruptcy Code on October 16, 1998. The company was in the process of reorganizing itself in an effort to survive under a plan of reorganization or to find a suitable buyer for its electrical and crankshaft operations. The continued erosion of its customer base since October 16, 1998 combined with unsuccessful negotiations with various potential buyers left the company with no choice but to close its operations. The closure of the Arkansas facility will result in the complete shutdown of Arrow's operations. "The decision to close this facility is extremely difficult given the employees' dedication and their commitment throughout the years and most recently in their steadfast efforts to reduce operating costs under a plan of reorganization," said Donald Shamsie, Arrow's chief operating officer. "Unfortunately, we have run out of options and time. We now commit to filling our customers' remaining orders as they transition to new suppliers and to help our employees find other employment opportunities." Arrow's 460 Arkansas-based employees were given notice today that their jobs will end with the plant closing on or before April 2, 1999 with some jobs being eliminated immediately. Arrow will seek available assistance from state and local government agencies and area business organizations in helping find new jobs for the employees. Arrow Automotive Industries, Inc. remanufactures a variety of replacement parts for domestic and imported vehicles for distribution throughout the United States and Canada. BRUNO'S: Reclamation Claim Procedure ------------------------------------ The aggregate amount of Reclamation Claims asserted against the debtors PWS Holding Corporation, and Bruno's, Inc., et al., was approximately $45,006,200. The debtors seek approval of the compromise and settlement of the settled reclamation claims and the adoption of global procedures for the payment of valid reclamation claims. The reclamation payment motion provides election of two payment options: payment of 75% of the amount of allowed reclamation claim in cash or payment of 50% of allowed reclamation claim in cash and the balance to be satisfied as an administrative expense claim pursuant to a chapter 11 plan of reorganization that is confirmed and becomes effective. FIDELITY BANCORP INC: Stock Ownership Reported ---------------------------------------------- First Manhattan Co. reports to the SEC beneficial ownership of 232,167 shares of common stock of Fidelity Bankcorp, Inc., representing 9.60% of the class. These shares include 0 shares owned by family members of General Partners of First Manhattan Co. which are being reported for informational purposes. First Manhattan Co. disclaims dispositive power as to 0 of such shares and beneficial ownership as to 0 of such shares. HIP OF NEW JERSEY: HMO Must Liquidate ------------------------------------- HIP of New Jersey, a health maintenance organization subsidiary of HIP Health Plans, must liquidate after the parent failed to obtain a restraining order preventing New Jersey regulators from moving ahead with the liquidation, according to Best's News. A New Jersey Superior Court judge refused to intervene, which cleared the way for N.J. Banking and Insurance Commissioner Jaynee LaVecchia to liquidate the HMO. She said she could not rehabilitate the insurer because it lacks enough money to stay in business. LaVecchia has ordered New Jersey's other health plans to open enrollment for HIP's 165,000 members until March. LaVecchia didlocate a buyer willing to pay $6 million for HIP's Medicaid business, which has 21,000 patients. HIP of New Jersey owes millions to providers. Its troubles began when it hired Pinnacle Healthcare, New Brunswick, N.J., and PHP Healthcare of Reston, Va., as third-party administrators. Pinnacle and PHP are in bankruptcy in the District of Delaware. (ABI 16-Feb-99) LIQUIDATION WORLD: Plans Continued Expansion --------------------------------------------- Liquidation World President CEO Dale Gillespie plans to add to its 75 stores and its Internet business, despite its first quarter of soft earnings since the company began in October 1986. Liquidation World, based in Calgary, is a discount retail chain that buys merchandise from bankrupt companies and those with excess inventories. The company employs 12 people who buy merchandise, and a network of agents seek new goods on a commission basis. The company's net earnings decreased by 8.9 percent to C$1.4 million for the first quarter; Gillespie said the downturn was the result of a bad purchase from a major U.S. retailer. The chain's stores operate in Canada and three states. Ontario and Seattle are target locations for new stores. (ABI 16- Feb-99) MCA FINANCIAL: Case Summary & 20 Largest Creditors -------------------------------------------------- Debtor: MCA Financial Corp. 24700 Northwestern Highway Southfield, Michigan 48075 Type of business: Providing and servicing agent of mortgages Court: Eastern District of Michigan Case No.: 99-42172 Filed: 02/10/99 Chapter: 11 Debtor's Counsel: Robert J. Diehl, Jr. Bodman, Longley & Dahling LLP 100 Renaissance Center, 34th Floor Detroit, Michigan 48243 Bridgeport, CT 06605-0186 (313) 259-7777 Total Assets: $314,224,268 Total Liabilities: $302,791,173 No. of shares of preferred stock 5,396,410 20 Largest Unsecured Creditors: Name Amount ---- ------ IRS 1,276,694 Midwest Pension Actuaries, Inc. 86,530 National computer Resources 71,128 Health Alliance Plan 65,449 Grant Thornton LLP 59,100 Doren Maybew 50,018 Dykema Gossett 28,376 Robert A. Paslomek and Assoc. 21,538 Michigan Dental Plan 19,198 Coast to Coast 18,400 Scribbles 16,556 Paul Revere Insurance Group 15,963 24700 Development Associates 14,868 Equity Financial Services 12,487 Meta Dynamics 11,000 Imperial Premium lFinance 10,160 Ervin Leaseing Company 9,535 Fijitsu Financial Services 9,372 Abbott, Nicholson, Quilter, Eashiki and Youngblood 7,535 Advantage Staffing 7,275 MCGINNIS PARTNERS: Equity Committee Objects To Conversion --------------------------------------------------------- The Official Committee of Equity Security Holders of McGinnis Partners Focus Fund, LP and related cases, objects to the motion of the Official Committee of Unsecured Creditors to convert the case to a Chapter 7 case. The Equity Security Holders Committee states that the transactions of the debtor with the members of the Unsecured Creditors Committee must be fairly and fully investigated. They state that the debtor's demise is wrapped up in its transactions with the members of the Creditors' Committee, and that these transactions are not simple sales of goods, but very complex transactions that were terminated on an extremely accelerated schedule. Further, they claim that conversion to a Chapter 7 is a way for the creditors to avoid a meaningful review of their claims. They state that the debtor's assets are not diminishing in value, that the creditors have conditioned plan negotiations on "no discovery" and that McGinnis' attempts to investigate claims against the estate is not evidence of a conflict. Finally, they allege that the Committee has failed to show good cause for conversion. MOBILEMEDIA: Court Requires Supplemental Disclosures ----------------------------------------------------- MobileMedia Corporation announced that the U.S. Bankruptcy Court for the District of Delaware on February 12, 1999 ordered that certain supplemental disclosure be provided to members of the Company's Class 6 general unsecured creditors and that MobileMedia resolicit votes from that class on MobileMedia's Third Amended Joint Plan of Reorganization. The Plan provides for the merger of MobileMedia into Arch Communications Group, Inc. (Nasdaq:APGR). The Court also adjourned the hearing to confirm MobileMedia's Plan until this supplemental disclosure has been made and the required re-voting with respect to the Plan is complete. MobileMedia expects the additional solicitation to be completed and the confirmation hearing to resume during March 1999. The required supplemental disclosure is contemplated to include (i) certain holdings of two members of the Unsecured Creditors Committee in debt securities of Arch and (ii) certain information regarding projections and the potential value of the Arch Common Stock subsequent to the contemplated merger that was disclosed to the Standby Purchasers and the Unsecured Creditors Committee by the financial advisor to the Unsecured Creditors Committee. Under documents relating to the contemplated merger, the two members of MobileMedia's Unsecured Creditors Committee, together with two other unsecured creditors that are not members of the Unsecured Creditors Committee, are obligated, as "Standby Purchasers," to purchase certain shares of Arch Common Stock to the extent the shares are not purchased by other unsecured creditors through the exercise of stock purchase rights being issued to them in connection with the Plan and the merger. The sale of such shares will provide Arch with $217 million of the funds that will be necessary for Arch to complete the merger with MobileMedia. NEXAR TECHNOLOGIES: Order Authorizes Counsel -------------------------------------------- On February 8, 1999, the Honorable James F. Queenan entered an order authorizing the committee of unsecured creditors of Nexar Technologies, Inc., debtor, to employ Whitton E. Norris III of the law firm of Davis, Malm & D'Agostine, PC as counsel to the committee. NYTEST ENVIRONMENTAL: Stock Ownership Reported To SEC ----------------------------------------------------- Spear, Leeds & Kellogg reports to the SEC beneficial ownership of 855,902 shares of common stock of NYTEST ENVIRONMENTAL INC, representing 12.7% of the class. PAL: Ordered To Pay Creditors ----------------------------- Philippine Airlines (PAL) has been ordered by the Securities and Exchange Commission (SEC) to pay US$10.9m to creditors. This amount is in addition to that already paid to creditors in late January. The SEC has also issued an order that allows PAL to sell US$11.4m worth of assets to raise funds for its operations. Most of the money will go towards financing the modification of PAL's Boeing 747-400 aircraft. PAL has announced that it will be able to submit its rehabilitation plan by 15 March following the appointment, announced earlier, of its financial restructuring adviser Chase Manhattan Asia Ltd. and its corporate adviser LEK/ALCAR. PARKS SAUSAGE: Loans Extended Before Sale ----------------------------------------- Before its Park Heights plant was bought by another meat company early this month, Parks Sausage Co. won extensions on two loans it is receiving from Baltimore. Parks, which sold the plant to Philadelphia-based Dietz & Watson Inc. Feb. 2, gets a $500,000 Urban Development Action Grant and a $180,094 purchase money mortgage from the city. Parks, which is continuing to market the Parks Sausage line by outsourcing production to other manufacturers, does not pay interest on either loan. The two loans were to be repaid over 15 years, said Jeffrey P. Pillas, chief financial officer of Baltimore Development Corp. On Jan. 13, at Parks' request, the Board of Estimates extended the repayment period to 25 years. "The amounts of money owed are no different," Pillas said. "There's no forgiveness of any debt." Pillas added that Dietz & Watson does not owe the city any money under the terms of the loans. Parks was saved from bankruptcy in 1996 by the intercession of retired football stars Franco Harris and Lydell Mitchell and by the willingness of creditors -- including the city -- to structure loans on terms favorable to the struggling company. "It's nice to be able to get an extension, to be able to buy some time and right the ship," said Mitchell. (Baltimore Sun - 02/13/99) PRECISION AUTO CARE: Stock Ownership Reported To SEC ----------------------------------------------------- Avenir Corporation, an investment adviser reports to the SEC beneficial ownership of 713,500 shares of common stock, representing 12% of the class, of Precision Auto Care, Inc. ROYAL OAK MINES: Files for Bankruptcy ------------------------------------- Royal Oak Mines Inc. filed for bankruptcy protection yesterday in a Canadian court in an effort to restructure its debt and keep its Kemess gold and copper mine open, according to Reuters. Based in Kirkland, Wash., Royal Oak filed the motion in Ontario's Court of Justice to provide the company with "breathing space" to restructure more than $320 million in debt; the court order will stay all legal proceedings against the company for a month. Falling gold prices and problems related to the construction of its new Kemess mine in British Columbia precipitated the need for bankruptcy protection. In December, the company halted payment on $120 million in short-term senior secured debentures, $26 million in commodity hedged debt, $175 million of secured notes and C$19.5 million in equipment loans from Canada's Export Development Corp. It began efforts to negotiate a restructuring agreement with creditors prior to a Feb. 15 deadline. (ABI 16-Feb-99) ROYAL OAK: Obtains Order For Immediate Working Capital ------------------------------------------------------ Royal Oak Mines Inc. (TSE and AMEX:RYO) announced today that it has sought and obtained an Order from the Ontario Court of Justice (General Division) under the Companies' Creditors Arrangement Act. The Order, which provides for an immediate injection of working capital to finance operations during the stay period, allows the Company to continue operating its mines, including its Kemess South Mine in British Columbia, and complete negotiations with senior lenders to restructure its debt. The order applies to all of Royal Oak's wholly and majority owned subsidiaries located in Canada. "The additional working capital during the stay period will allow Royal Oak to resume full production levels at Kemess South," said Margaret Witte, Chairman, President and Chief Executive Officer. "With full commercial production at Kemess South, we will be able to replace present senior debt with lower-cost, long-term, conventional mine financing." "The provisions of the CCAA Order allow for additional financing to be provided to Royal Oak, which will create the necessary conditions for the mine to achieve full commercial production." On December 23, 1998, Royal Oak announced that it would seek to restructure its existing senior debt agreements to achieve greater financial flexibility and a stronger balance sheet in light of historically low commodity prices for gold and copper. The Company established a deadline of February 15, 1999 to reach an agreement among its senior creditors. "We have made good progress in our recent discussions with senior creditors and their representatives. A formal court- supervised process will ensure that all stakeholders, including trade creditors, are treated fairly and equitably," said Ms. Witte. The Order stays all legal proceedings against Royal Oak until March 18, 1999 and authorizes the Company to prepare a plan of compromise or arrangement for its outstanding liabilities. The Company intends to prepare a restructuring plan for submission to the Ontario Court within three months, with court- sanctioned votes to follow. Trilon Financial Corporation, which is owed US$120 million, has agreed to provide Royal Oak with CDN$34.7 million. Approximately CDN$11.0 million will be used to supplement working capital to sustain the Company's mining operations; $1.0 million will be used for administrative and other related expenses; and $18.5 million will be used to pay interest arrears, future interest and royalties to Trilon. An amount of $8.4 million will be immediately available to the Company during the initial stay period. PricewaterhouseCoopers LLP has been appointed by the Court to act as Monitor. In addition, an advisory committee has been appointed by Royal Oak, and approved by the Court, to assist and advise the Company and its present Board of Directors during the stay period. Joseph Wright, an experienced investment banker, and Norman Ross, a senior mining engineer and business executive have been appointed. Other appointments will be announced at a later date. The Company has senior debt totaling approximately US$335 million and trade payables, taxes and accrued payroll of approximately CDN$43.6 million. The CCAA allows the Company to carry on business in the normal course. Suppliers and creditors are required under the court order to maintain existing contractual and commercial arrangements with Royal Oak and will be paid under normal terms for goods and services received after today. Royal Oak Mines is a major North American gold mining company, which together with its predecessors, has produced more than 50 million ounces of gold over a 60-year period. The Company owns and operates the Kemess South Mine in north central British Columbia; the Giant Mine at Yellowknife in the Northwest Territories; and the Pamour and Nighthawk mines near Timmins in Ontario. In September 1997, Royal Oak closed its Hope Brook Mine in Newfoundland after depletion of ore reserves, and in December 1997, the Company closed its high-cost Colomac Mine in the Northwest Territories for economic reasons. Both facilities have been placed on care and maintenance. SERVICE MERCHANDISE: Stock Ownership Reported To SEC ---------------------------------------------------- First Pacific Advisors, Inc. and FPA Paramount Fund, Inc. report to the SEC beneficial ownership of 9,500,000 shares of common stock, representing 9.4% of the class, of Service Merchandise Company Inc. SOLO SERVE: Court Approves Professionals ---------------------------------------- Upon the application of Solo Serve Corporation, debtor, to employ the law firm of Cox & Smith Incorporated as counsel to the debtor, the court entered an order on February 2, 1999, approving the employment. The court also approved the employment of Ernst & Young LLP as accountants, auditors, financial advisor and consultant to the debtors. SPECTRAN CORP: Patent Agreement Filed With SEC ---------------------------------------------- As reported in the report of Spectran Corp. on Form 10-Q for the period ended September 30, 1998, under "Subsequent Events", on October 30, 1998, the Company and Lucent Technologies Inc. established a new worldwide, non exclusive license exchanging rights under their optical fiber patents issued prior to January 1, 1998, and additional patents related to multimode fiber based on applications filed through October 1998. The Company is licensed by Lucent to make optical fiber at its existing factories for worldwide use and sale, including export from the United States. The license contains some product limitations including certain exclusions to make or sell select specialty fibers for some applications. Lucent receives non-exclusive, royalty-free worldwide rights. The Company agreed to pay Lucent a $4.0 million license fee in installments and, beginning in 2000, a royalty on sales. Lucent has the right to terminate the agreement if the Company is acquired by an optical fiber manufacturer. A copy of the Patent License Agreement between Lucent Technologies Inc. and SpecTran Corporation dated October 30, 1998 is available via the Internet at: http://www.sec.gov/Archives/edgar/data/0000718487-99- 000001.txt STARMET CORP: Stock Ownership Reported To SEC --------------------------------------------- Dimensional Fund Advisors Inc. reports beneficial ownership of 331,600 shares, representing 6.93% of the class, of common stock of Starmet Corp. SUN TELEVISION: Stock Ownership Reported To SEC ----------------------------------------------- Dimensional Fund Advisors Inc. reports beneficial ownership of 1,089,900 shares of common stock, 6.25% of the class, of Sun Television & Appliances, Inc. Dimensional Fund Advisors Inc. is an investment advisor. THE CARE GROUP: Confirmation of Plan ------------------------------------ On February 1, 1999 the Honorable Frank R. Monroe signed the order confirming the plan of reorganization under Chapter 11 of the Bankruptcy Code for The Care Group, Inc. and its affiliated debtors. THE J. PETERMAN: Order Authorizes Secured Debt ---------------------------------------------- On January 26, 1999, the U.S. Bankruptcy Court of the Eastern District of Kentucky, Lexington Division, entered an agreed interim order authorizing the debtor, The J. Peterman Company to incur post-petition secured indebtedness, and granting security interests and priority. The final hearing on the motion will be held on February 16, 1999 at 4:00 PM. The order provides that the lender agrees, subject to certain terms and conditions, to loan to the debtor up to a gross amount of $2,371,000 during the interim financing period. THE PHARMACY FUND: Seeks Approval of Stipulation ------------------------------------------------ The debtors, The Pharmacy Fund, Inc. and Pharmacy Fund Receivables, Inc., seek entry of an order approving a stipulation among The Pharmacy Fund, Inc. ("PFI"), National Data Corporation ("NDC") and Prudential Securities Credit Corporation, the debtors' prepetition and post-petition secured lender. Prior to the filing date, PFI was party to an agreement with NDC whereby NDC agreed to provide PFI with, among other things, transaction processing services. The parties have agreed that NDC will continue providing essential data reconciliation services and software enhancements to PFI, that NDC will be paid $650,000 for post-petition service and that NDC's claim as an unsecured creditor shall be allowed in the amount of $1.4 million. UNIVERSAL STANDARD: Announces Out of Court Restructuring -------------------------------------------------------- Universal Standard Healthcare Inc. (Nasdaq:UHCI) announced today that it intends to present an out of court restructuring plan to the creditors of Universal Diagnostics, the company's former clinical laboratory division, in the next thirty days, once final numbers are available. Universal Diagnostics discontinued operations following the sale of certain of its clinical laboratory assets in August 1998. The company has retained a recognized financial consultant to assist in this restructuring effort. The company believes that an out of court restructuring will result in a greater dividend to the creditors of its laboratory business. The company has determined not to pay the interest payment on its outstanding 8.25 percent Convertible Subordinated Debentures, due Feb. 1, 1999, resulting in the occurrence of an event of default under the Debentures. The Debentures and related interest will be included in the company's restructuring plan, which is expected to be presented to Debenture holders in the next 30 days. The Debentures were issued by the parent company in 1996 and are not obligations of the company's managed care operations. The company's continuing managed care business is conducted by separate wholly-owned subsidiaries, Universal Standard Healthcare of Delaware Inc., Universal Standard Healthcare of Michigan Inc., Universal Standard Healthcare of Ohio Inc., and TPA Inc., and will not be included in the restructuring plan. These managed care entities will continue their current operations in accordance with their past practices. "We are excited by the future prospects for our managed care subsidiaries. Recent new managed care programs include a laboratory, imaging and home medical services program for Liebert, a division of Emerson Electric, and a phased national laboratory and imaging program for Whirlpool Corp. Liebert and Whirlpool Corp. are the first groups to contract for our new imaging product, which was introduced mid last year. In addition, we have made substantial progress in increasing network compliance, substantially reducing the cost of claims and inquiry costs. The company expects to complete its claims automation project by the end of 1999. The goal of this project is to have over 70 percent of all claims submitted, processed and paid electronically, reducing operating expenses and improving quality and service levels," stated Eugene E. Jennings, president and chief executive officer of Universal Standard Healthcare Inc. "The restructuring plan is the last step in the process of liquidating our laboratory operations and is designed to put the company in a stronger financial position for the future." Universal Standard Healthcare Inc. currently owns subsidiaries operating in all 50 states, which provide clinical laboratory, outpatient diagnostic imaging, and home medical services (including durable medical equipment and supplies) for employers on a capitated basis. WATERMARC: To Sell Some Restaurants ------------------------------------- Watermarc Food to Sell Some Restaurants to Facilitate End of Chapter 11 Watermarc Food Management Co., which owns and operates 36 Houston-area restaurants, said Friday that it will sell some or all of its restaurants, which include The Original PastaCo. and Marco's Mexican Restaurants, to help it emerge from chapter 11 protection, according to a newswire report. Watermarc, a holding company, is seeking court approval to establish procedures to market and sell the restaurants. WORLDCORP: Files Chapter 11 --------------------------- Worldcorp Inc. of Herndon, Va., filed for chapter 11 protection late Friday in the District of Delaware with assets of $22 million and liabilities of $115.2 million, according to Reuters. The holding company, which has interests in World Airways Inc., The Atlas Companies Inc. and InteliData Technologies Corp., reported that virtually all of its unsecured debt is in trade. Trading on the company's stock and seven percent convertible debentures was suspended in December. (ABI 16-Feb-99) Meetings, Conferences and Seminars ---------------------------------- 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, 1999 NORTON INSTITUTES ON BANKRUPTCY LAW Norton Bankruptcy Institute I Olympic Park Hotel, Park City, Utah Contact: 1-770-535-7722 March 18-21, 1999 NORTON INSTITUTES ON BANKRUPTCY LAW Norton Bankruptcy Litigation Institute II Flamingo Hilton Hotel, Las Vegas, Nevada Contact: 1-771-535-7722 March 19, 1999 AMERICAN BANRKUTPCY INSTITUTE Bankruptcy Battleground West Century Plaza Hotel, Los Angeles, California Contact: 1-703-739-0800 March 25-27, 1999 Southeastern Bankruptcy Law Institute, Inc. 25th Annual Southeastern Bankruptcy Law Institute Marriott Marquis Hotel, Atlanta, Georgia Contact: 1-770-451-4448 April 5-6, 1999 PRACTISING LAW INSTITUTE 21st Annual Current Developments in Bankruptcy and Reorganization Conference PLI Conference Center, New York, New York Contact: 1-800-260-4PLI or info@pli.edu April 15-18, 1999 AMERICAN BANRKUTPCY INSTITUTE Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800 April 19-20, 1999 PRACTISING LAW INSTITUTE 21st Annual Current Developments in Bankruptcy and Reorganization Conference Grand Hyatt, San Francisco, California Contact: 1-800-260-4PLI or info@pli.edu April 22-23, 1999 AMERICAN LAW INSTITUTE -- AMERICAN BAR ASSOCIATION COMMITTEE ON CONTINUTING PROFESSIONAL EDUCATION Conference on Revised Article 9 of the Uniform Commercial Code Sheraton New York Hotel, New York, New York Contact: 1-800-CLE-NEWS April 22-25, 1999 COMMERCIAL LAW LEAGUE OF AMERICA 69th Annual Chicago Conference Westin Hotel, Chicago, Illinois Contact: 1-312-781-2000 or clla@clla.org 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 April 30-May 4, 1999 INTER-PACIFIC BAR ASSOCIATION Annual Meeting and conference, including a one-day program on cross-border insolvencies Shangi-La Hotel, Bangkok, Thailand Contact: 011-66-2-233-0055 May 28-31, 1999 COMMERCIAL LAW LEAGUE OF AMERICA 51st Annual New England District Meeting Equinox Resort, Manchester Village, Vermont Contact: 1-413-734-6411 June 3-6, 1999 AMERICAN BANRKUTPCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800 July 1-4, 1999 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: 1-770-535-7722 July 10-15, 1999 COMMERCIAL LAW LEAGUE OF AMERICA 105th Annual Convention Chateau Mont Tremblant, Mont Tremblant, Quebec Contact: 1-312-781-2000 or clla@clla.org July 15-18, 1999 AMERICAN BANRKUTPCY INSTITUTE Northeast Bankruptcy Conference Mount Washington Hotel & Resort Bretton Woods, New Hampshire Contact: 1-703-739-0800 August 4-7, 1999 AMERICAN BANRKUTPCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton, Amelia Island, Florida Contact: 1-703-739-0800 August 29-September 1, 1999 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES 1999 Convention Grove Park Inn, Asheville, North Carolina Contact: 1-803-252-5646 or info@nabt.com September 16-18, 1999 AMERICAN BANRKUTPCY INSTITUTE Southwest Bankruptcy Conference The Hotel Loretto, Santa Fe, New Mexico Contact: 1-703-739-0800 December 2-4, 1999 AMERICAN BANRKUTPCY INSTITUTE Winter Leadership Conference La Quinta Resort & Club, La Quinta, California Contact: 1-703-739-0800 The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Bond pricing, appearing in each Friday edition of the TCR, is provided 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 1999. 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. 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