/raid1/www/Hosts/bankrupt/TCR_Public/990315.MBX
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, March 15, 1999, Vol. 3, No. 50
Headlines
AL TECH: Seeks Authorization For Certain Payments
BISCAYNE APPAREL: Seeks To Retain Richard A. Eisner & Co.
COMMERCIAL FINANCIAL: Attorneys Seek Appointment
COUNTY SEAT: Seeks To Reject Eight Leases
CRIIMI MAE: Settles With Citicorp
ERLY INDUSTRIES: Reports Developments To SEC
GOLF TRAINING: Meeting of Creditors
ICF KAISER: Announces Purchase Agreement
INTERNATIONAL TESTING: Committee Taps Andrews & Kurth
JUMBOSPORTS: Applies To Employ PricewaterhouseCoopers
LEVITZ FURNITURE: Seeks To Assume Certain Leases
LONG JOHN SILVER'S: A&W Seeks To Acquire Chain
MEDPARTNERS: Provider Network Files Chapter 11
MOBILE ENERGY: Seeks To Employ Forcap International
NEVADA BOB'S: Reports Conversion To Chapter 11
NEXAR: Stock in Trading Frenzy
PONDEROSA FIBRES: Seeks Authorization To Employ Hempstead
SCOTT CABLE: Can Intervene For Indenture Trustee
SOLO SERVE: Seeks To Terminate Distribution Center Lease
THORN APPLE: Suppliers Cut Shipments
WORLDWIDE DIRECT: PostPetition Employment Agreements
BOND PRICING FOR WEEK OF March 8, 1999
*********
AL TECH: Seeks Authorization For Certain Payments
-------------------------------------------------
The debtor, AL Tech Specialty Steel Corporation, seeks
court authority to reimburse Atlas Steels Inc. and the
United Steelworkers of America for their actual costs and
expenses in connection with the negotiation, due diligence,
preparation, execution and delivery of the purchase
documents pursuant to a certain purchase agreement between
the debtor, Atlas Steels Inc. and the United Steelworkers
of America to be signed by the parties and a new
corporation to be formed. The new corporation is to
acquire most of the debtor's current assets. The payment
will take place if the acquisition does not occur (through
no fault of Atlas or USWA).
Upon closing the new corporation will pay $2 million in
cash to the debtor, and cancel $39 million in unsecured
claims originally claimed by Atlas Steels, Inc. and $72
million in unsecured claims originally asserted by the
USWA, and will assume administrative claims and/or secured
obligations of the debtor and will assume or resolve
liabilities associated with the USWA's collective
bargaining agreements with the debtor and with the salaried
employee's pension plan, including the debtor's retiree
health and pension obligations.
The acquisition could provide more than $120 million to the
debtor in cash and stock, cancellation of claims and
assumption of liability. And the debtor asserts that the
incentives are appropriate in assuring the highest and best
realization on estate assets.
BISCAYNE APPAREL: Seeks To Retain Richard A. Eisner & Co.
---------------------------------------------------------
The debtors, Biscayne Apparel, Inc. and M&L International
Inc. seek an order authorizing the retention of Richard A.
Eisner & Company LLP as accountants in the Chapter 11
cases.
The firm will prepare the annual 10-K as of December 31,
1998 and 1999 and the accompanying 10-Q's; Prepare the
December 31, 1998 and December 31, 1999 financial
statements; Assist in the preparation of monthly operating
reports; Analyze tax claims; Review Pro Forma balance
sheets; Prepare cash flow projections; Attend meetings.
The firm will charge its customary hourly rates.
COMMERCIAL FINANCIAL: Attorneys Seek Appointment
------------------------------------------------
Peter Wachtell, the sole outside director of troubled
Commercial Financial Services Inc., ordered an
investigation of the company but has remained unseen to all
but a few people. Wachtell also was instrumental in the
hiring of a financial advisory firm that was seeking court
approval Tuesday to continue working for a committee of 11
firms that hold asset-backed securities issued by the
company.
Allegations of mail fraud and that representations made to
some investment companies by CFS or its principals -
founding president William R. Bartmann was named - were
false and "relate to securities law issues," Robert E.
Juceam, an attorney with Fried, Frank, Harris, Shriver &
Jacobson said. Juceam testified that "some oral
irregularities" made to the investment firms were related
to the capacity of his firm and ability of CFS to service
debt collections for a fee and its estimated recovery
calculations. Juceam's law firm was seeking court
approval to be employed by the committee known as Asset-
Back Security Holders in the Chapter 11 bankruptcy.
Tulsa law firm Gable & Gotwals was seeking similar approval
along with Houlihan Lokey Howard & Zukin Inc., the
financial advisory firm with offices in 12 cities.
Assistant U.S. Trustee Katherine Vance and the Official
Committee of Unsecured Creditors objected to employment of
all three firms to represent the securities holders group.
Larry M. Wolfson of Jenner & Block, the Chicago law firm
representing CFS, supported the retention of three firms,
saying it was the "wrong time to switch horses." The
objections "rise to the level that make it mandatory" to
deny the applications, he said.
CFS is at a "critical point" in moving forward, and
bringing in new law firms and financial advisers would slow
the process, Wolfson said. Judge Dana L. Rasure of the U.S.
Bankruptcy Court for the Northern District of Oklahoma
took all three under advisement after court
proceedings Tuesday of more than six hours.
All three firms had been employed before bankruptcy was
filed Dec. 11. The objections were broadly based on
payments the firms received prior to the bankruptcy, the
timeliness of their filing to seek court approval,
their fees and conflicts of interest with any of the
parties involved. The Fried-Jacobson firm received $275,000
from CFS on Dec. 9 and another $456,949 on Dec. 11, before
the firm filed for bankruptcy, Juceam testified. Both
payments were wire bank-to-bank transfers and placed in the
firm's regular bank account, not a trust or escrow
account.
Michael Kramer, a managing director of Houlihan Lokey,
testified that it received two payments for its monthly
fee, one on Dec. 8, the other Dec. 10, both for $200,000.
Katalin E. Kutasi, senior vice president of Alliance
Capital, a New York management firm testified that she had
discussed payment to Houlihan Lokey by CFS with Wachtell on
several occasions and "he agreed" to make the payments.
(Daily Oklahoman - 03/10/99)
COUNTY SEAT: Seeks To Reject Eight Leases
-----------------------------------------
The debtors, County Seat Stores, Inc. et al. seek court
approval of debtors' rejection of certain leases of
nonresidential real property.
The stores covered by the leases are located in Gretna,
Louisiana; Denton, Texas; Stroud, Oklahoma; Lawrence,
Kansas; Hot Springs, Arkansas; Odessa, Missouri; Medford,
Minnesota; and Iowa, Louisiana.
In light of the termination of operations at the closed
stores, with the assistance of its real estate consultants,
Retail Consulting Services, Inc., the debtor analyzed the
potential value of the leases and determined that based
upon the rental payments provided for under the leases, the
terms of the leases and the market rents at the outlet mall
at which the closed stores are located, the leases have no
potential value.
CRIIMI MAE: Settles With Citicorp
----------------------------------
Criimi Mae Inc., Rockville, Md., agreed to settle a lawsuit
with Citicorp Securities; they will end litigation by
selling $39.7 million worth of commercial mortgage-backed
securities and $370 million worth of commercial mortgages.
Criimi Mae sued its major creditors in October after
filing for chapter 11 protection in order to prevent them
from seizing its assets. The temporary collapse of the
commercial mortgage-backed securities market forced Criimi
Mae into chapter 11. (ABI 12-Mar-99)
ERLY INDUSTRIES: Reports Developments To SEC
--------------------------------------------
On February 15, 1999, Watch-Edge International, Inc.,
formerly known as Chemonics Industries, Inc., and Chemonics
International, Inc., a wholly owned subsidiary of Watch-
Edge, entered into an Agreement of Purchase and Sale of
Assets with FIA Investment Company L.L.C. pursuant to which
Watch-Edge and Chemonics agreed to sell all of the assets
of Chemonics for an aggregate purchase price that is
expected to be $30.4 million, consisting of $8.25 million
in cash and the assumption by the buyer of liabilities of
Watch-Edge and Chemonics. The transaction remains subject
to the satisfaction of certain conditions, including the
expiration of the applicable waiting period under the Hart-
Scott-Rodino Anti-Trust Improvements Act of 1976.
The transaction is expected to close on or about March 31,
1999.
On March 1, 1999, the Official Committee of Unsecured
Creditors of ERLY Industries, Inc. filed a motion seeking
to convert the bankruptcy case from a Chapter 11
(reorganization) case to a Chapter 7 (liquidation) case on
the basis that following the Chemonics transaction, the
Company no longer owns any operating assets to reorganize.
The Company is considering its response at this time and
will be holding a meeting of the Board of Directors on
March 11, 1999 to review its options.
On February 17, 1999, ERLY Industries Inc. and Watch-Edge
entered into a Joint Compromise and Settlement Agreement
with Kingwood Lakes South, L.P., Anthony M. Frank, Tenzer
Company, Inc. and Michael L. Tenzer (collectively, the
"Tenzer Group") to settle certain disputes arising in
connection with a prior settlement agreement entered into
between the Tenzer Group, the Company, Watch-Edge and
others as of August 20,1998. Pursuant to the August
Settlement, Watch-Edge issued a note to certain members of
the Tenzer Group in the principal amount of $3,800,000,
which was payable by its terms on the earlier of February
13, 1999 and the occurrence of a sale of the assets or
stock of Chemonics. The Company and Watch-Edge took the
position that they had the right to set aside the
obligations incurred in the August Settlement in the
Company's current Chapter 11 case.
Pursuant to the Settlement Agreement, (i) the Company and
Watch-Edge released any and all claims against the Tenzer
Group and others relating to the August Settlement, (ii)
Watch-Edge agreed to pay to certain members of the Tenzer
Group the sum of $2,500,000 on the earlier of February 26,
1999 and the occurrence of a sale of the stock or assets of
Chemonics and (iii) the Company agreed that the claim of
the Tenzer Group presently filed in the Company's Chapter
11 case would be reduced and allowed in full as a general
unsecured claim in the amount of $5,000,000. Pursuant to
the Settlement Agreement, the Tenzer Group released any
remaining claims against the Company and Watch-Edge
and each of the current directors of the Company and Watch-
Edge.
Watch-Edge made the $2,500,000 payment to the Tenzer Group
on February 26,1999. Pursuant to the Settlement Agreement,
the Company has the right, but is not obligated, to redeem
the remaining $5 million Tenzer claim in full by paying
to the Tenzer Group in good and valid funds an amount equal
to $650,000 on or before June 26, 1999. If such a
redemption does not occur, the Company will have the right,
but will not be obligated, to redeem the Tenzer claim in
whole or in part according to the following schedule by
paying such amounts on or before October 26, 1999.
GOLF TRAINING: Meeting of Creditors
-----------------------------------
The Chapter 11 case of Golf Training Systems, Inc. was
converted to a Chapter 7 case on February 26, 1999. The
meeting of creditors is scheduled for April 12, 1999 at
10:30 AM, Room 368, Russell Federal Building, 75 Spring
Street, SW, Atlanta Georgia.
ICF KAISER: Announces Purchase Agreement
----------------------------------------
In a press release dated March 8, 1999, ICF Kaiser
International, Inc. (NYSE:ICF) announced that it has signed
a letter of intent with CM Equity Partners,L.P., (CMEP) an
equity investment firm based in New York City, to sell the
ICF Kaiser Consulting Group for $75 million to CMEP and the
group's management. Pending due diligence and the
execution of a definitive purchase agreement, CMEP
and Consulting Group management will convert the group into
a new, independent company, which will remain headquartered
in Fairfax, Virginia. The transaction is expected to be
completed by mid-year 1999.
In a press release dated March 9, 1999, ICF Kaiser
International, Inc., (NYSE:ICF) announced that it has
signed a definitive purchase agreement for the assets
of its Environment and Facilities Management (EFM) Group
with The IT Group formerly known as International
Technology Corporation for $82 million. The
sale/acquisition has been approved by the ICF Kaiser Board
of Directors and by The IT Group Board of Directors,
respectively.
The sale is subject to certain conditions, including the
completion of financing arrangements by The IT Group and
receiving required clearances under Hart-Scott-
Rodino. Closing is expected in April.
The Environment and Facilities Management Group undertakes
major environmental, program management, and technical
support contracts for U.S. Government
agencies, particularly the U.S. Departments of Energy,
Defense, and NASA, as well as for private-sector
environmental clients. The acquisition does not
include ICF Kaiser's interest in Kaiser-Hill Company, LLC,
the prime contractor for DOE's Rocky Flats Environmental
Technology Site. EFM has a staff of about 500, and
reported gross revenue of $104 million in 1998.
"The Company is working closely with The IT Group to make
certain there is a smooth and uninterrupted transition for
EFM's customers," said Chairman of the Board Tony Coelho.
Coelho also said the sale of EFM is an outgrowth of the
activities of the Board's Special Committee, which was
directed late last year to consider a wide
range of strategic alternatives for the Company.
INTERNATIONAL TESTING: Committee Taps Andrews & Kurth
-----------------------------------------------------
The Official Committee of Unsecured Creditors for
International Testing Services, Inc. is seeking
authorization to employ Andrews & Kurth LLP as counsel to
the committee.
A hearing will be held on March 15, 1999 at 10:30 AM in
Courtroom 10-A on the 10th Floor of the United States
Courthouse, 515 Rusk Avenue, Houston, Texas 77002.
JUMBOSPORTS: Applies To Employ PricewaterhouseCoopers
-----------------------------------------------------
JumboSports, Inc., debtor, applies for authorization to
employ PricewaterhouseCoopers LLP as accountants for the
debtor.
The debtor selected the firm because it provided services
to the debtor prior to the Petition Date and is familiar
with the debtor's business. The firm will charge for its
services on an hourly basis. The firm's rates range from
$350 per hour for a partner to $115 per hour for an
associate.
LEVITZ FURNITURE: Seeks To Assume Certain Leases
------------------------------------------------
Levitz Furniture Incorporated, et al. seeks an order
authorizing assumption of certain unexpired nonresidential
real property leases. The leases cover property located in
Fairfax, Virginia; Garden City, New Jersey; Langhorne,
Pennsylvania; Manchester, Missouri; San Leandro, California
and South San Francisco, California.
The debtors have determined that the assumption of the
leases is in the best interests of the debtors and their
estates. The assumption of the leases is a condition
precedent to the lenders' agreeing to extend the term of
the DIP Credit Facility, and the debtors assert that the
leases are valuable either to the debtors' operation or for
the debtor to assign. The debtors are current in rent in
all of the locations and the debtors will pay outstanding
taxes due.
LONG JOHN SILVER'S: A&W Seeks To Acquire Chain
----------------------------------------------
A&W Restaurants Inc., Detroit, announced yesterday that it
has reached an agreement for it and its equity partner,
Grotech Capital, to acquire seafood restaurant chain Long
John Silver's once it emerges from chapter 11 protection,
according to a newswire report. Long John said in a
statement that it will file with the bankruptcy court in
the District of Delaware seeking approval of the
acquisition agreement, including bidding procedures for
other parties and a $7.5 million fee to A&W and Grotech if
their bid is topped. Long John filed chapter 11 on June 1,
1998, and it expects to file a plan this spring. A&W said
it cannot acquire the company unless the plan is accepted
and the company exits chapter 11. A&W was founded in 1919
in California and has 1,000 stores in the United States and
17 foreign countries. (ABI 12-Mar-99)
MEDPARTNERS: Provider Network Files Chapter 11
----------------------------------------------
MedPartners Inc. announced that the California Department
of Corporations assumed control of MedPartners Provider
Network, a California health service plan licensed under
the Knox-Keene Health Care Service Act of 1975, according
to a newswire report. The Department appointed a
conservator to manage the organization and then filed a
petition for chapter 11 relief, but MedPartners said that
neither it nor its affiliated physician practices in
California are included in the filing. MedPartners
announced it has been working with the Department to
address its concerns, but that yesterday's actions were
completely unexpected. MedPartners Chairman and CEO Mac
Crawford said, "We believe the Department's action is
unwarranted...We will continue to take whatever steps are
appropriate to ensure that the interests of MedPartners,
its shareholders and lenders are protected."
MedPartners is considering whether it should take any
action as a result of the Department's filing and take-
over. (ABI 12-Mar-99)
MOBILE ENERGY: Seeks To Employ Forcap International
---------------------------------------------------
The debtors, Mobile Energy services Company, LLC and Mobile
Energy Services Holdings, Inc. seek to employ Forcap
International Inc. as financial advisor. Forcap will
assist and advise Mobile Energy in connection with the
analysis, development and negotiation of Mobile Energy's
plan of reorganization and any potential transactions.
Forcap will advise Mobile Energy with respect to the
structuring, creation and development of any new entity
formed or to be formed by mobile Energy, along or with
others; It will advise and assist Mobile Energy in
developing a general strategy for accomplishing any
necessary post-petition transactions; It will undertake a
feasibility analysis for Mobile Energy of any potential
transactions; It will wok with other professionals in the
case and will assist in connection with regulatory
proceedings and in obtaining necessary approvals. Mobile
Energy will pay Forcap potential "Transaction Fees:
depending on the continued operation of the Pulp Mill, and
increases in EBITDA and asset sale proceeds. A monthly
advisory fee of $125,000 will be paid in advance plus a one
time $35,000 catch-up payment for service rendered since
January 14, 1999.
NEVADA BOB'S: Reports Conversion To Chapter 11
----------------------------------------------
The Las Vegas Review-Journal reports on March 9, 1999 that
the Robert Elton Lucia family has sold Nevada Bob's Pro
Shop Inc., a 35-year- old chain of golf shops, to Duncan
Family Holdings of Arlington, Texas, attorneys said Monday.
The Las Vegas-based company filed for Chapter 11 bankruptcy
on March 2. It received approval from Bankruptcy Court
Judge Robert Jones Monday to obtain $3.5 million in post-
bankruptcy financing from Fleet Financial's Los Angeles
office. The loan will enable Nevada Bob's to pay for
operational expenses and additional inventory.
Nevada Bob's owed more than $60 million when it filed a
voluntary bankruptcy petition. The total included $22
million from Fleet Financial.
The company is closing a total of 16 of its 60 company-
owned stores across the country and in the United Kingdom.
The business also has more than 250 franchise stores around
the world.
The privately held company fell behind in payments to trade
creditors. Some of the trade creditors tried to force the
company into Chapter 7 bankruptcy for liquidation.
The company, however, voluntarily filed for Chapter 11
bankruptcy, which allows it to continue operations, on
March 2. Trade creditors now are supporting the Chapter 11
reorganization effort. The company negotiated with "all the
big names in golf" equipment in Chicago recently, said
Henry Simon, a bankruptcy attorney from Fort Worth,
Texas. The new owner named Mark Gunderson to oversee the
golf store chain reorganization, and a new management team
has joined Nevada Bob's.
Tom Russell is president, and Allen Smith is chief
financial officer. Duncan Family Holdings already has
interests in the golfing business and makes a golf club
called the Alien Wedge. Bob Elton, a former golf pro,
founded Nevada Bob's in 1974. The first Nevada Bob's was
at 4702 Maryland Parkway. He previously operated pro shops
in San Diego. The company sold a franchise for its first
Japanese store in 1988 when it had 190 franchises across
the United States and Canada.
NEXAR: Stock in Trading Frenzy
-------------------------------
The Worcester Telegram & Gazette reports on March 12, 1999
that the stock of Nexar Technologies Corp is worthless. It
has no inherent value. However, that message followed a
wild four days during which more than 4 million shares of
the all-but-dead company changed hands.
Even so, Nexar shares rose, ending the trading session at
9.5 cents per share, up 2.5 cents for the day on a volume
of 493,700 shares.
Nexar officials said the trading binge may have been the
result of a misconception by investors that the company's
Wednesday announcement that it had finalized a previously
announced deal to sell its patents and trademarks to
ATEC Group Inc. of Hauppage, N.Y., was good news for
shareholders. Good for shareholders of ATEC perhaps, said
E. Craig Conrad, Nexar's former vice president of
marketing, but no help to holders of Nexar stock.
"A lot of investors have been calling who are a little bit
confused because of the transaction, thinking that they
might get some ATEC stock for their shares of Nexar,"
Conrad said. "Such is not the case."
The truth is Nexar stock has little, if any, intrinsic
value, said Dodi B. Zirkle, vice president of Continental
Capital and Equity Corp., a Florida-based financial public
relations firm.
"At some point the rumor mill took over and there was a
misconception about what Nexar's sale of assets meant,"
said Zirkle. "Somehow people assumed the company was being
acquired." "It wasn't that kind of acquisition," said
Conrad. "It's important that investors realize that the
core assets of the company have been purchased by
ATEC and that the court will liquidate any other remaining
assets to the benefit of the creditors.
"The stockholders would come in after the creditors have
been paid 100 percent of what they are owed. It's unlikely
they will get anything."
Nexar filed for bankruptcy protection against its creditors
Dec. 17, acknowledging debts of $4.5 million and assets of
$3.3 million. The company, which produced computers
employing Nexar's patented design to make PC
upgrades easy, went public in April 1997 at $9 per share.
Nexar turned in $32 million in sales in 1997, but ran into
cash flow problems in 1998. Its stock was delisted from the
Nasdaq Stock Market in December, but has continued trading
on the Over-the-Counter Bulletin Board. The volume swell
in Nexar stock began Monday, when nearly 790,000 shares
changed hands and the per-share price rose to 6 cents from
a little less than 4 cents. On Tuesday - the day before the
announcement of the asset sale to ATEC - the stock more
than tripled to 19 cents per share on a volume of 2.6
million shares before falling back to 7 cents a share
Wednesday.
Conrad said the sudden volatility in Nexar's share price
may have been fueled in part by speculators who rapidly
trade in and out of penny stocks in the hopes of quick
gains. That combined with the misconceptions about the
meaning of Nexar's asset sale to ATEC could have caused the
volume surge, he said.
"Once a stock is trading at 10 cents a share, it's a whole
different type of investor mentality down there," said
Conrad. "There's a whole lot of talk and wishful thinking.
It becomes highly speculative, and people come in and
trade it up and then sell. It's called pump and dump."
Without speaking specifically about Nexar, Grant David
Ward, assistant district administrator for the Securities
and Exchange Commission in Boston, said the SEC has the
power to halt trading in a stock if it discovers there is
incorrect information about the company in the marketplace.
But the fact that people may misinterpret news about a
company or wild trading in response to news doesn't signify
anything in and of itself, he said.
"Anyone who called was told very clearly that stock trading
in Nexar now is somewhat of a risky proposition," said
Conrad. "It doesn't make sense that there would be
speculation about our sale to ATEC. It was already public
information that those assets were being sold."
PONDEROSA FIBRES: Seeks Authorization To Employ Hempstead
---------------------------------------------------------
The debtor, Ponderosa Fibres of Washington, LP seeks
authorization to employ Hempstead & Company, Inc., a firm
specializing in corporate valuations.
The debtor contracted with Parsons Main, Inc.("PMI") for
the engineering, procurement, construction, commissioning,
testing and start-up of a de-inking mill in Wallula,
Washington.
Despite many defects and deficiencies, PMI turned the
facility over to the debtor, and the debtor paid PMI in
excess of $78 million despite the fact that the facility
failed to operate in a manner consistent with the terms of
the Contract between the parties. Litigation regarding the
contract has commenced.
The debtor and the Unofficial Bondholders' Committee have
agreed on terms to restructure the Bonds. The debtor filed
the first amended Disclosure Statement on March 5, 1999. A
hearing on the adequacy of the Disclosure Statement is set
for March 11, 1999.
The debtor requests that it be authorized to hire Hempstead
for the purpose of preparing a report on the value of the
debtor's assets and operations.
SCOTT CABLE: Can Intervene For Indenture Trustee
------------------------------------------------
Scott Cable Communications Inc. has court approval to
intervene on behalf of State Street Bank and Trust Co.,
indenture trustee for the cable company's junior
subordinated secured pay-in-kind notes, in an adversary
proceeding the government brought against State Street.
Meanwhile, the court reserved judgement as to whether the
U.S. government's tax claims are barred by an order
confirming Scott Cable's prior plan of reorganization in
1996. The court asked for submissions of findings of fact
and conclusions of law. (The Daily Bankruptcy Review and
ABI Copyright c March 12, 1999)
SOLO SERVE: Seeks To Terminate Distribution Center Lease
--------------------------------------------------------
The debtor, Solo Serve Corporation has determined that hte
liquidation of its assets, including real property leases
is in the best interest of its creditors. The debtor has
solicited bids for the assignment of its leases in
connection with the bankruptcy case. Koontz/McCombs 1,
Ltd. made the best offer for certain real property used as
the debtor's corporate offices and distribution center.
The debtor seeks the court's approval of the termination of
the lease pursuant to an agreement with Koontz/McCombs
(Landlord to the debtor).
THORN APPLE: Suppliers Cut Shipments
------------------------------------
Thorn Apple Valley Inc., a Southfield, Mich., meat
processor, is falling behind on production because some
suppliers have cut shipments of meat since the company
filed for chapter 11 protection last week, The Detroit News
reported. Thorn Apple CEO Joel Dorfman said that he
believes this is only a "momentary disruption" but that "if
we don't have the raw materials, it's certainly going to
have an effect." The company is working on a cash-on-
delivery basis with many of its suppliers. Nebraska's IBP
Inc., the world's largest meat packer, is one of the
company's largest creditors; it is owed more than $16
million. A spokesperson for Thorn Apple said "IBP possibly
didn't ship product on Friday because they were concerned
over whether we'd be filing for chapter 11 protection." In
January, Thorn Apple recalled six months' worth of
meat because of possible contamination; the recall could
cost the company up to $7 million this year, Dorfman said.
(ABI 12-Mar-99)
WORLDWIDE DIRECT: PostPetition Employment Agreements
----------------------------------------------------
The debtors, Worldwide Direct, Inc., et al seeks
authorization to enter into and perform the obligations
required of them under the postpetition employment program.
The debtors state that it is absolutely essential that
SmarTalk continue to operate its business until the closing
date of the proposed sale to AT&T in order to preserve the
going-concern value of the assets to be sold. The outside
cost of the Key Employee retention program would be less
than $285,000, plus incentives for two senior management
executives including an increase of base salary and stay
bonuses totaling a potential $200,000.
BOND PRICING FOR WEEK OF March 8, 1999
--------------------------------------
DLS Capital Partners, Inc.
Following are indicated prices for selected issues:
Acme Metal 10 7/8 '07 11 - 13 (f)
Amer Pad & Paper 13 '05 61 - 63
Amresco 9 7/8 '05 72 - 75
Asia Pulp & Paper 11 3/4 '05 63 - 64
Boston Chicken 7 3/4 '05 4 - 5 (f)
Brunos 10 1/2 '05 14 - 16 (f)
Cityscape 12 3/4 '04 12 - 14 (f)
E & S Holdings 10 3/8 '06 32 - 35
Globalstar 11 1/4 '04 67 - 69
Geneva Steel 11 1/8 '01 19 - 22 (f)
Hechinger 9.45 '12 25 - 30
Hills 12 1/2 '02 96 - 97
Iridium 14 '05 72 - 73
Loewen 7.20 '03 53 - 55
Mobilemedia 9 3/8 '07 13 - 16 (f)
Penn Traffic 8 5/8 '03 44 - 46 (f)
Planet Hollywood 12 '05 22 - 25
Samsonite 10 3/4 '08 66 - 69
Service Merchandise 9 '04 22 - 23 (f)
Sunbeam 0 '18 10 - 11
Trism 10 3/4 '00 48 - 50
Trump Castle 11 3/4 '05 76 - 78
Zenith 6 1/4 '11 28 - 30 (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 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.,
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Debra Brennan and Lexy Mueller, Editors. Copyright 1999.
All rights reserved. ISSN 1520-9474.
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