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/raid1/www/Hosts/bankrupt/TCR_Public/990614.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, June 14, 1999, Vol. 3, No. 113 Headlines AMPACE CORP: Seeks Authority to Hire KPMG LLP as Tax Consultant ATLAS CORP: Court To Rule On Transfer Of Utah Millsite AUGMENT SYSTEMS: CFO Left To Dismantle Company BENNETT FUNDING: Bennett Found Guilty on 42 Counts BRUNO'S: Seeks To Reject Leases CALDOR: Trustee Appoints Wind-Down Committee CAJUN ELECTRIC: Buyout On Hold; PSC Requests More Information CELLPRO: Announces Distribution of Funds Pursuant to Plan CHERRYDALE FARMS: Seeks To Modify Retention of Miller Associates CONSUMER PORTFOLIO: Beneficial Ownership Passes To Partnership FORCENERGY: Order Authorizes Arthur Andersen LLP FWT,INC: Committee Taps Counsel GDE: Creditors To Propose Alternate Plan HECHINGER: Kmart Comments on Bankruptcy Filing HECHINGER CO: Seeks to Restructure Under Chapter 11 HOME HEALTH CORP: Taps Blank Rome Comisky as Special Counsel INTERNATIONAL TESTING: Committee Objects To Disclosure Statement KOREA LIFE: Receives Eight Bids LAURIAT'S BOOKS: Going Out of Business LOEWEN: Director Thomas Taylor Resigns MEDIQ INC: Acquisitions Strain Working Capital, Income Down MEDPARTNERS: Local Physicians Purchase Talbert Medical Group PARAGON: Proposed $100M Investment From Wellspring PARAGON: To Seek Approval on Bidding Procedures PETSEC ENERGY: Chairman Addresses Annual Meeting/Optimistic QUALITECH STEEL: Stipulated Order Reducing Exclusivity Period RICHFOOD HOLDINGS: Sold For $1.5 Billion To Supervalu SOWA BANK: Asks To Be Declared Insolvent TEXFI INDUSTRIES: Sale Of Stock Completed In May VOICE IT WORLDWIDE: Hearing on Adequacy of Disclosure Statement WHITE ROSE: Sales Growing in 1999 Fiscal Third Quarter WILSHIRE FINANCIAL: Emerges From Bankruptcy WIRELESS ONE: Announces eCommerce Partnership With Netgateway WIRELESS ONE: Seeks More Time To File Schedules and Statements ********* AMPACE CORP: Seeks Authority to Hire KPMG LLP as Tax Consultant --------------------------------------------------------------- The debtors, Ampace Corporation and Ampace Freightlines, Inc Seek court authority to employ and retain KMPG LLP as tax consultant for the debtors. KPMG would perform tax preparation, compliance and consulting services that are necessary during these cases. The firm's current hourly rates range from $175 for managers to $125 for staff. ATLAS CORP: Court To Rule On Transfer Of Utah Millsite ------------------------------------------------------ Atlas Corporation, having filed for Chapter 11 bankruptcy protection on September 22, 1998, in the U.S. Bankruptcy Court for the District of Colorado, is operating as a debtor-in- possession. The company's first quarter 1999 financial statements show a net loss for that period of $705,000 on revenues of $760,000. During the same quarter in 1998 its loss was $305,000 on revenues of $1,136,000. Two of Atlas' subsidiaries, Atlas Precious Metals Inc. and Atlas Gold Mining Inc., subsequently filed bankruptcy under Chapter 11 on January 26, 1999. The company says its remaining two subsidiaries, Arisur Inc. and Suramco Metals Inc. have no intention of similarly filing for bankruptcy protection. Nevertheless, on May 9, 1999, Arisur defaulted on a loan payment of $478,000, due under its loan agreement with Corporacion Andina de Fomento. The company has met with representatives of CAF and has negotiated a deferral of the principal portion of the payment ($383,000) while CAF reviews the company's development plans for the Andacaba mine and considers restructuring of the loan to finance the development program. The outstanding balance of the loan at March 31, 1999 was $1,917,000. On April 28, 1999, Atlas Corp, along with the U.S. Nuclear Regulatory Commission, the State of Utah, ACSTAR (surety provider for Atlas) and others, executed the Moab Utah Millsite Transfer Agreement, which absolves Atlas from all future liability with respect to the Millsite. The agreement was reached to avoid lengthy and expensive litigation over the future of the Millsite. The agreement remains subject to approval by the Bankruptcy Court. As consideration for this release, Atlas has agreed to contribute certain Millsite related assets to a Trust to be controlled by the government. The assets include the remaining Title X receivable as of May 1, 1999, all future Title X receivables, Atlas' water rights related to the Millsite, the land at the Millsite and $5,250,000 of restricted cash. Elimination of the liability should coincide with confirmation of Atlas' plan of reorganization, possibly by late summer. AUGMENT SYSTEMS: CFO Left To Dismantle Company ---------------------------------------------- On January 15, 1999, the Board of Directors of Augment Systems Inc. elected to discontinue all ongoing operations, layoff all but one of its employees, seek buyers for its technology and inventory and look for a merger partner. The company has ceased sales, marketing and distribution of its products. On March 31, 1999, two of the remaining three members of the Board of Directors resigned to pursue other interests. As of May 15, 1999, the company's Chief Financial Officer, and only active board member, was engaged in the disposition of assets, settlement of outstanding debts, sale of the company's technology, and exploration of potential mergers. The company began moving its operation and disposing of assets during the first quarter. During the first quarter a substantial portion of the outstanding debts were settled. The company delayed filing first quarter financial statements as it has been evaluating the accounting treatment relating to the dispositon of assets and debts. BENNETT FUNDING: Bennett Found Guilty on 42 Counts -------------------------------------------------- Yesterday a federal jury convicted Patrick Bennett, former CFO of Bennett Funding Group, on 42 counts of money-laundering and other crimes and determined that he should forfeit $109 million, according to a newswire report. Bennett now faces 20 years in prison under federal sentencing guidelines; federal prosecutors said they may seek an even longer sentence with additional fines and restitution penalties. A mistrial was declared on 11 remaining counts against Bennett, but prosecutors still consider the verdict a victory. According to prosecutors, Bennett turned his family's equipment leasing business into the largest Ponzi scheme in U.S. history, defrauding investors, mostly senior citizens, of $700 million. Bennett Funding filed chapter 11 in 1996 after the Securities & Exchange Commission filed lawsuits against the company. Former SEC Chairman Richard Breeden is the court-appointed trustee who is trying to recover money for investors. Bennett burst into tears upon hearing the verdict, and the judge, who called Bennett "a totally amoral individual," sent him immediately to prison, stating that "If he were out [on bail] he would look for some scheme to get whatever money he needed without any concern to his impact on others." Bennett's attorneys will seek to have the verdict thrown out, and prosecutors have not yet determined whether they'll seek a retrial on the 11 remaining counts. (ABI 11-June-99) BRUNO'S: Seeks To Reject Leases ------------------------------- The Debtors have asked for authority to reject an unexpired lease of nonresidential real property, dated January 23, 1985, between Bruno's, as tenant, and IRT Property Company, as lessor. The lease relates to a Food World supermarket formerly operated by the Debtors in Fort Walton, Florida. The store is one of the fourteen properties that the Debtors determined, in January 1999, was underperforming. The Debtors have liquidated the inventory in the Fort Walton store. The Debtors inform the Court that the lease is not marketable due to the recent construction of an Albertson's supermarket directly in front of their store. The Debtors suggest that the rejection of the lease be effective the date they remove their equipment and surrender the premises. The Debtors have also asked the Court to approve their rejection of an unexpired sublease of nonresidential property, dated July 7, 1978, between Bruno's, as sublessee, and Benson Wholesale Company, as sublessor. The sublease was for the Debtors Food World supermarket, operated by the Debtors in Gulf Breeze, Florida. The Gulf Breeze was one of fourteen underperforming or marginally performing stores that the Debtors determined, in January 1999, should be closed immediately. The Debtors have successfully liquidated the inventory and closed this store. The Debtors attempted to market the sublease to other grocery store chain since it closed this store. They were unsuccessful and no offers were made. Believing the "financial exposure represented by the Sublease should be limited as soon as practicable," the Debtors ask that the rejection of the sublease "be effective as of the date the Debtors remove their equipment located within the store and surrender the premises to the sublessor." (Bruno's Bankruptcy News Issue 20;Bankruptcy Creditors' Service Inc. Phone 609-392-0900 FAX 609-392-0040) CALDOR: Trustee Appoints Wind-Down Committee -------------------------------------------- The United States Trustee has filed her Appointment Of The Wind- Down Oversight Committee. The following post-petition administrative creditors of the Debtors, being among the largest creditors that are representative of certain of the kinds of claims against the Debtors, are willing to serve and are therefore appointed to the Wind-Down Oversight Committee. 1. Mattel Toys 333 Continental Blvd. El Segundo, CA 90245-5012 Attn: Mr. Lee Castillo (310) 252-2000 2. American Credit Indemnity 100 East Pratt Street Baltimore, MD 21202-1008 Attn: Kevin P. McCann, Esq. (410) 445-0727 3. Springs Industries Inc. P.O. Box 111 Lancaster, SC 29721-0111 Attn: Mr. Will Bartelmo. 4. Ambassador Cards, a division of Hallmark Cards, Inc. P.O. Box 419535 Kansas City, MO 64141 Attn: Mr. Doug Alderman 5. Sharp Electronics Inc. Sharp Plaza P.O. Box 650 Mahwah, NJ 07430-2135 Attn: Mr. Ron Papke (201) 529-8516 6. United Food & Commercial Workers Union (UFCWU) c/o Butsavage & Associates 1800 M Street, N.W. Washington, DC 20036 Attn: Carey Butsavage, Esq. (202) 861-9700 7. The Procter & Gamble Distributing Company P.O. Box 112 Cincinnati, Ohio 45201-0112 Attn: Mr. Richard T. Rehn (513) 945-8316 The Court approved the Trustee's appointment and authorized the Wind-Down Committee, without further application to or order of the Court, to retain the professionals previously retained by the Committee, nunc pro tunc to April 30, 1999. The Court also permitted the Trustee to solicit interest among representative categories of administrative creditors on proposed additions to and/or deletions from the Wind-Down Committee. The Trustee is to meet with the Debtors, counsel to the Former Secured Lenders, and counsel to the Wind-Down Committee on the proposed additions to and/or deletions. No modifications of the Wind-Down Committee, however, will be permitted prior to the Conference. (Caldor Bankruptcy News Issue 35; Bankruptcy Creditors' Service Inc. Phone 609-392-0900 FAX 609-392-0040) CAJUN ELECTRIC: Buyout On Hold; PSC Requests More Information ------------------------------------------------------------- The Advocate Baton Rouge LA reports on June 10, 1999 that Louisiana's utility regulators decided Wednesday they don't have enough information to take a position on a proposal for an energy consortium to buy Cajun Electric Power Corp. out of bankruptcy. The Public Service Commission narrowly voted to put a hold on its consideration of a mediator's proposal that Louisiana Generating LLC be allowed to buy Cajun's assets for $975 million. As part of his proposal, mediator Steven Felsenthal suggested last week that Southwestern Electric Power Co., the other bidder on Cajun Electric's non-nuclear properties, pay $15 million of the purchase price and be given a chance to sell power to the state's rural electric cooperatives. Felsenthal has indicated his proposal could cut $25 million a year from the bills of customers of rural cooperatives that buy wholesale power from Cajun Electric. People and companies with an interest in the Cajun Electric bankruptcy paraded before the PSC to support the idea of pushing for an end to the bankruptcy case, which has been in court since 1994. But representatives of rural cooperatives and SWEPCO said they are confused about some details Felsenthal suggested. SWEPCO President Michael Madison said he's not clear on what his company would get for the $15 million Felsenthal wants SWEPCO to pay in the Cajun Electric buyout because Louisiana Generating would end up with all of Cajun's non-nuclear assets. PSC special counsel Michael Fontham urged the commission to be cautious. Fontham said he fears the PSC could give up it rate- making authority over Cajun Electric's successor if the commission simply signed off on the mediator's recommendation. The commission was divided on what to do with the mediator's proposal. PSC member Don Owen of Shreveport said the commission should not take a stand on the proposed deal until all the details are filled in. "I'd be very concerned if our voting to approve this settlement, as it presently stands, would forego our authority in the future to oversee these rates," Owen said. PSC member Jimmy Field of Baton Rouge echoed Owen. "There are some questions and issues that need to be settled," Field said. PSC Chairman Dale Sittig of Eunice disagreed. He said consumers of Cajun Electric power won't get a rate reduction until the bankruptcy is settled. "The proposal is not what everyone wanted," Sittig said. "But I bet that if there are 20 or so parties out there that would have had the chance to write a proposal, I bet ... that we'd have 20 different proposals." Commissioner Irma Dixon of New Orleans voted with Owen and Field to delay any action on the Cajun Electric sale plan. Commissioners Sittig and Jay Blossman of Covington voted against Owen. The PSC instructed Fontham to send a letter to the mediator saying the commission is encouraged by the proposal but has some concerns. Fontham said he would make these points in his letter: The PSC will not endorse the proposal until all other parties agree to it. The PSC has final regulatory approval of any rate changes. The PSC would dismiss any rate cases pending with Cajun Electric only after the bankruptcy case is finally settled. The PSC wants money in a trust fund to guard against higher rates to be available to any of the affected rural cooperatives. Although the PSC has authority to approve or reject the bankruptcy settlement, other interests have a voice in the case. CELLPRO: Announces Distribution of Funds Pursuant to Plan --------------------------------------------------------- CellPro, Incorporated (OTC BB:CPRO) announced that pursuant to its Second Amended Plan of Reorganization dated as of May 10, 1999, and approved by the United States Bankruptcy Court for the Western District of Washington on May 21, 1999, it intends to make a distribution of funds on June 18, 1999. Pursuant to the Plan, the distribution will pay all creditors the full amount of their allowed claim. In addition, a distribution will be made to shareholders of record as of May 21, 1999. The company also announced that it has changed its name to CPX Corp. The company's common stock will continue to trade on the NASDAQ Bulletin Board under the symbol "CPRO." "We are pleased with the efficient administration and outcome of the bankruptcy proceedings, and look forward to a smooth transition of control to Steel Partners, an investment firm headed by New York financier Warren Lichtenstein," said Mark Handfelt, executive vice president of CellPro. CHERRYDALE FARMS: Seeks To Modify Retention of Miller Associates ---------------------------------------------------------------- The debtor, Cherrydale Farms, Inc. et al. seeks to modify the order authorizing the retention of Miller Associates Inc. The debtors seek to retain MAI as their management consultants for the purpose of winding up the debtors' affairs and assisting with claims and avoidance litigation and such other services necessary to wind up the debtors' affairs. CONSUMER PORTFOLIO: Beneficial Ownership Passes To Partnership -------------------------------------------------------------- Consumer Portfolio Services, Inc. reports beneficial ownership, by virtue of exercise of warrants held, now rests at 22.1% in each of the named persons or entities: Arthur E. Levine, Lauren B. Leichtman, Levine Leichtman Capital Partners, Inc., LLCP California Equity Partners II, L.P., and Levine Leichtman Capital Partners II, L.P. Each party named has beneficial ownership of 4,450,000 shares of common stock in the company. The parties above constitute a limited partnership formed under the laws of the State of California. The principal business of the partnership is to seek out opportunities to invest in the securities of middle market companies and to acquire, hold, manage and dispose of such securities in connection with growth financings, restructurings, recapitalizations, mergers, acquisitions and buyouts. The partnership exercised the April 1999 warrant for investment purposes and to obtain the voting rights associated with ownership of shares of common stock. FORCENERGY: Order Authorizes Arthur Andersen LLP ------------------------------------------------ The US Bankruptcy Court for the Eastern District of Louisiana seeks an order authorizing employment and retention of Arthur Andersen LLP as accounting consultants and financial advisors for Forcenergy Inc. and Forcenergy Resources Inc. FWT,INC: Committee Taps Counsel ------------------------------- The Official Unsecured Creditors Committee of the debtor, FWT, Inc., seeks to retain the law firm of Cantey & Hanger, LLP. The firm will advise the Committee with respect to the debtor's rights, powers and duties as a debtor continuing to operate and manage its businesses and properties; advise the Committee concerning, and assisting in the negotiation and documentation of agreements, debt restructurings, and related transactions; Monitor transactions proposed by the debtor; review the nature and validity of liens; advise the Committee concerning the actions that it might take to collect and recover property for the benefit of the estate; prepare all applications, motions, pleadings, notices; and advise the Committee with respect to a plan of reorganization. GDE: Creditors To Propose Alternate Plan ---------------------------------------- The South China Morning Post reports on June 11, 1999 that creditors of insolvent Guangdong Enterprises (Holdings) (GDE) are to meet their steering committee representatives on Tuesday to decide on the basis of a counter-proposal to the company's bailout package. The committee was expected to brief more than 80 creditor banks on the latest developments and exchange views on the preparation of the counter-proposal, a creditor bank official said. The panel would then work on the plan for the next two weeks before presenting it to creditors for endorsement at a meeting scheduled for June 30. Creditors voiced opposition when GDE unveiled its plan last month to restructure US$5.59 billion in debt as it involved an effective haircut in loan principals. Various estimates put the cut at between 27 and 65 per cent. GDE's financial adviser Goldman Sachs told creditors that GDE's owner, the Guangdong provincial government, would continue to pay interest on GDE's debts until June 30. The payments would continue to the end of August if talks on the restructuring proceeded in good faith. Creditors have been given until August 20 to endorse the restructuring plan with the provincial government and its advisers. HECHINGER: Kmart Comments on Bankruptcy Filing ---------------------------------------------- Kmart Corporation (NYSE: KM) announced that, as a consequence of the Hechinger Company's filing for reorganization today, Kmart will take a non-cash discontinued operations charge in the second quarter of approximately $230 million net of tax. The charge reflects the probability that, as a result of Hechinger's bankruptcy proceedings, up to 115 former Builders Square locations currently operated by Hechinger may become the responsibility of Kmart in the near term. The Builders Square operations were sold in September 1997 to an entity formed by Leonard Green and Partners and were subsequently combined with the operations of Hechinger Company. At the time of the sale, a subsidiary of Kmart also subleased to Hechinger certain former Builders Square locations, whose leases had been guaranteed by Kmart since their inception. "While the precise outcome of the legal process remains to be seen, Kmart believes that, in light of the Hechinger's filing, it is appropriate to take the charge at this time," said Floyd Hall, Chairman, President and CEO of Kmart. "Considering current market conditions, we anticipate that Kmart will be able to convert or sublease most, if not all, of these properties within a reasonable period after they are returned. Fortunately, the cash outflows required by these leases should have no meaningful effect on the company's ongoing strategy or operations." HECHINGER CO: Seeks to Restructure Under Chapter 11 --------------------------------------------------- Hechinger Company today announced that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company said that it elected to seek court protection in order to facilitate its efforts to develop and implement an operational restructuring and financial reorganization. As part of the Chapter 11 reorganization, Hechinger will immediately commence the closing of approximately 89 under-performing stores in approximately 36 markets in an effort to significantly reduce operating losses and focus the Company's resources on a core of performing stores. Hechinger said that it expects to operate its core stores in the ordinary course of business. To ensure that the Company has the short-term working capital necessary to operate its business, the Company is refinancing its working capital facility through a commitment for up to $700 million in debtor-in-possession ("DIP") financing from BankBoston Retail Finance Inc. Hechinger said that it would seek the Court's permission to access the DIP financing to fund the normal business operations and other cash needs during the bankruptcy proceeding. Mark Adams, president and chief executive officer of Hechinger, said the Company expects to continue to provide uninterrupted service in its core operating locations and has requested, and expects to receive, immediate Court approval to continue to pay its employee salary, wages and benefits throughout the reorganization process. In addition, the Company's DIP financing will enable it to pay for the post-petition delivery of goods and services in the ordinary course. "Filing for Chapter 11 and closing these unprofitable locations is the crucial first step in our efforts to re-make Hechinger," Adams said. "During the next few months, we will work with our creditors and attempt to finalize a plan that allows us to develop and implement a long-term business strategy that will return the Company to financial and competitive health." The Company said it will focus on a two-format strategy that features a revitalized Home Quarters - which has proven highly successful in its remodeled markets - in the large format category and a refocused Hechinger, which will return to its historical roots as a community-based store tailored to the needs of its immediate customers. The Company intends to convert its remaining 16 Builders Square stores to the Home Quarters format. Adams said the restructuring will allow the Company to focus its resources on its core operations. As previously announced, the Company's new management has made several organizational and operational changes over the past 90 days to strengthen core store performance functions, including distribution, management information systems, customer service and merchandising. The Company said the stores slated for closure were selected based on a number of factors including strength of the Company's competitive position in individual markets, growth prospects of individual stores and store profitability. Following the closures, Hechinger will operate approximately 117 stores in 21 states. "Our primary objective is to right-size the Company so we can focus management and move forward with a solid core of performing locations with an appropriate capital structure," Adams said. "Repositioning the business in this manner will allow us to reduce our working and other capital needs." As previously announced, Hechinger has hired turnaround consultants Policano & Manzo LLC to assist management with the Company's financial and operational restructuring. As a result of its financial situation, the Company does not meet the requirements for continued listing on the Nasdaq SmallCap Market and expects to have its 5 1/2 Convertible Subordinated Debentures formally delisted shortly. HOME HEALTH CORP: Taps Blank Rome Comisky as Special Counsel ------------------------------------------------------------ The debtors, Home Health Corporation of America Inc., et al. seek to employ Blank Rome Comisky & McCauley LLP as special counsel to the debtors. The debtors seek to expand the firm's responsibilities as special counsel so that the firm may provide the debtors with health care regulatory and other corporate health care advice; and advice with respect to structuring an employment retention and severance program for key employees of the debtors; and provide counsel to the Debtors' Board of Directors and senior management arising in connection with Blank Rome's ongoing assistance to the Board and the debtors at or in connection with meetings of the Board and with senior management. Jan Weinstock, a partner in Blank Rome's health care department, will be assigned to handle all matters relating to health care regulatory and related corporate advice. Her hourly rate is $290 per hour. INTERNATIONAL TESTING: Committee Objects To Disclosure Statement ---------------------------------------------------------------- The Official Committee of Unsecured Creditors for International Testing Services, Inc. submits its objection to the debtor's Disclsoure statement. The Committee elaborates on two deficiencies. First, the Disclosure statement identifies the post-confirmation management of the Reorganized Debtor as the same management that is presently in place. NDIC and unsecured creditors, who in combination will control a majority of the Reorganized debtor's outstanding stock should select the Future Board of Directors. Second, although the Committee is given standing to pursue Avoidance Actions, the plan re-vests in the Reorganized Debtor other potentially valuable causes of action against the debtor's present officers and directors. These claims should, according to the Committee, be transferred tot he Committee for prosecution on behalf of unsecured creditors. The plan must provide the committee with a litigation fund to pursue these claims. Absent such a fund, the transfer of these claims to the Committee is meaningless. KOREA LIFE: Receives Eight Bids ------------------------------- Journal of Commerce reports on June 10, 1999 that U.S. firms are back in the chase as the protracted struggle to find a buyer for South Korea's insolvent Korea Life Insurance Co. moves to a new phase. Eight bids for the insurer were received by the June 7 deadline, a spokesman for the government's Financial Supervisory Commission said. The commission has tried three times to sell the life insurance company, and says it will review these bids for several days before making a decision. Among the bidders is Amco, a consortium that includes Prudential and the U.S. property management group Cushman & Wakefield. Novecon Financial Ltd. of the United States has on its team an unidentified foreign insurer and the investment management firm of Tucker & Associates. South Korea's Myungsung is bidding with an unidentified Japanese life underwriter, another Japanese firm and Labuan Offshore Financial Services Authority of Malaysia. Labuan is being developed as an island financial center. Shindongyang, a Korean auto parts company, teamed up with International Technical Interchange Corp. of Japan. A group led by Korea's Hanwha group includes Kyoei Life Insurance Co. of Japan, Orix Life Insurance, Orix Corp., a leasing affiliate, and International Finance Corp., the private investment unit of the World Bank. Regent Pacific Group, a Hong Kong unit of Britain's Regent Pacific asset management firm, is joined by Regent Korea, Impala Capital and the State of Wisconsin Investment Board. Other shareholders in Regent include Tokyo Maritime Insurance Co. of Japan and the John Templeton Foundation of Britain. DMK-SPE, a Hong Kong financial house, is backed by Eastern Palace Holdings Co. and Heritage Holdings Ltd. LAURIAT'S BOOKS: Going Out of Business -------------------------------------- Lauriat's Inc., a Canton, Mass.-based bookseller chain, announced that it is going out of business, according to a newswire report. The 71-year-old company, which filed chapter 11 last year, will begin liquidation sales within the next few weeks and then shut its doors. CFO Todd Miller said, "The bottom line is we were unsuccessful in finding an equity sponsor to finance us out of bankruptcy." Lauriat's tried to arrange $5 to $10 million in equity financing, but without that financing, it was unable to stock its shelves adequately, he said. Founded in 1872, the company had stores under the names Lauriat's, Encore Books and Book Corner in the Northeast and Mid-Atlantic states. (ABI 11- June-99) LOEWEN: Director Thomas Taylor Resigns -------------------------------------- The Loewen Group Inc. (NYSE, TSE,ME:LWN) confirmed the resignation of Thomas Taylor as a director of the Company. Mr. Taylor, who was also a significant shareholder in the Company, joined the Loewen Board in December of 1998. Mr. Lacey added that candidates for the seat vacated by Mr. Taylor will be discussed at this week's governance committee meeting of the Board. MEDIQ INC: Acquisitions Strain Working Capital, Income Down ----------------------------------------------------------- Total revenues for Mediq Inc. increased in the second quarter of fiscal 1999 by 20.8%, to $56,073,000 as opposed to $46,409,000 in the same period last year. Net income for the two quarters of fiscal 1999 was $404,000, whereas that period in 1998 saw net income of $3,429,000. Net cash provided by operating activities in the six months ended March 31, 1999 was $2.4 million compared to $14.7 million in the six months ended March 31, 1998. The company indicates this variance was principally due to interest payments in the current year exceeding those in the prior year because of substantially greater amounts of indebtedness outstanding. Substantial amounts of that interest stemmed from the interest due on the company's acquisition loan and revolving credit facilities. The company completed two acquisitions in the second quarter of fiscal 1999 that are expected, by Mediq, to contribute combined annual revenues of approximately $9.0 million, based on the most recent annual revenues available for each acquisition. The company used its acquisition loan facility to fund $27.8 million of acquisitions and its revolving credit facility to fund $4.8 million of acquisitions, certain purchases of equipment and general corporate purposes. At March 31, 1999, borrowings outstanding under the acquisition and revolving credit facilities were $27.8 million and $18.5 million, respectively. At March 31, 1999, availability under the revolving credit facility was $17.7 million and $22.2 million under the acquisition loan facility. MEDPARTNERS: Local Physicians Purchase Talbert Medical Group ------------------------------------------------------------ Talbert Medical Group, Inc., announced today that it has agreed to acquire certain assets of MedPartners, Inc. and its affiliates, which comprise the medical practices and management of Talbert Medical Group. As a result of the acquisition, the Group's 120 physicians will manage all business activities relating to direct patient care, making Talbert Medical Group one of the largest independent physician-owned and operated groups in California. The transaction remains subject to customary closing conditions, including bankruptcy court approval to the extent required. Patients will continue to receive the same quality care and will maintain their physician and hospital relationship. "Our goal is to maintain the patient/physician relationship and this deal ensures ongoing quality medical care with no disruptions to Talbert Medical Group Members," said Keith Wilson, M.D., President of Talbert Medical Group. "Talbert Medical Group has a long history of providing excellent quality health care to its members and the community." With health centers located in Southern Los Angeles and Orange Counties, Talbert Medical Group will continue to provide patients with uninterrupted care in conjunction with its hospital partners; Orange Coast Memorial Medical Center, Anaheim Memorial Medical Center, Long Beach Memorial Medical Center, and Lakewood Regional Medical Center. Talbert Medical Group, Inc. is a multi-specialty group providing quality health care for more than 70,000 patients through nine ambulatory health centers in Southern California. PARAGON: Proposed $100M Investment From Wellspring -------------------------------------------------- Paragon Trade Brands, Inc. (NYSE: PTB) announced that it will file today a motion with the United States Bankruptcy Court for the Northern District of Georgia, seeking approval of bidding procedures, an expense reimbursement and a termination fee relating to a proposed investment by Wellspring Capital Management LLC, to acquire Paragon as part of a plan of reorganization (the "Wellspring Proposal"). The bidding procedures provide for the consideration of competing investment proposals from other interested parties. The Wellspring Proposal provides for a $100 million equity investment in Paragon by Wellspring in return for 84.1% of the new common stock of Paragon to be issued pursuant to a plan of reorganization, subject to dilution and diminution as a result of a rights offering for up to 24.1% of new common stock. The Wellspring Proposal also provides for reorganized Paragon's issuance of approximately $200 million in senior subordinated notes and Wellspring obtaining new third-party working capital financing for reorganized Paragon in the amount of at least $50 million. Under the Wellspring Proposal, it is estimated that there will be approximately $325 million in distributable value in the form of cash, notes and 15.9% of new common stock in Paragon as reorganized. As of March 28, 1999, liabilities subject to compromise totaled an estimated $407 million. The Wellspring Proposal contemplates that substantially all of Paragon's current senior management will continue with the company, and is subject to the completion of satisfactory due diligence, procurement of the working capital financing commitment, definitive documentation, Bankruptcy Court approval of the motion and the plan of reorganization and other conditions precedent standard in a transaction of this nature. The motion notes that the Wellspring Proposal is at this time a suggested format for a chapter11 plan of reorganization that would incorporate the Wellspring investment but that the distribution provisions of such a plan remain subject to negotiation. The Wellspring Proposal provides that Paragon may simultaneously prepare and file a stand-alone plan of reorganization so that the plan process and Paragon's emergence from chapter 11 are not delayed in the event that the Wellspring Proposal is not consummated, or a higher or otherwise better alternative transaction is not approved or accepted. Paragon and Wellspring hope and expect that the bid procedures, combined with active efforts to obtain higher and better third- party offers, will lead to prompt negotiations among parties in interest and the confirmation of a plan supported by most or all of such parties. Paragon's Creditors' Committee has indicated that it supports the Bid Procedures but has not yet indicated its support of the Wellspring Proposal. Paragon intends to discuss the Wellspring Proposal and the Bid Procedures with Paragon's Equity Committee, The Procter & Gamble Company and Kimberly-Clark Corporation over the next few weeks. Commenting on the Wellspring Proposal, Bobby Abraham, Chief Executive Officer of Paragon, stated, "Paragon has been working diligently to develop a stand-alone plan. Nevertheless, we believe the infusion of new capital through the Wellspring transaction constitutes a viable and prudent alternative to a stand-alone plan and the bidding procedures for which we are seeking approval have been designed to maximize recoveries on behalf of Paragon's stakeholders. Paragon has the ability to pursue an alternative transaction should it determine that such an alternative expedites its emergence from chapter 11 or maximizes its distributable value in its chapter 11 case. If it decides to pursue an alternative, Paragon's only obligation to Wellspring, should the Wellspring proposal become firm and unconditional, is the payment of reasonable expenses and a termination fee of $2 million." Wellspring Capital Management LLC manages a private investment partnership focused on investing in companies where it can create substantial value by contributing management expertise, innovative operating and financial strategies and capital. The partnership's capital is provided by investors who are among the largest and most respected public and private pension funds, corporations and financial institutions in the U.S. and Canada, as well as from the principals of Wellspring. Paragon Trade Brands is the leading manufacturer of store brand infant disposable diapers in the United States and Canada. Paragon manufactures a line of premium and economy diapers, training pants, feminine care and adult incontinence products, which are distributed throughout the United States and Canada, primarily through grocery and food stores, mass merchandisers, warehouse clubs, toy stores and drug stores that market the products under their own store brand names. Paragon has also established international joint ventures in Mexico, Argentina, Brazil and China for the sale of infant disposable diapers and other absorbent personal care products. PARAGON: To Seek Approval on Bidding Procedures ------------------------------------------------ Paragon Trade Brands Inc., Norcross, Ga., announced today that it will file a motion with the Bankruptcy Court for the Northern District of Georgia, seeking approval of bidding procedures, an expense reimbursement and a termination fee relating to a proposed investment by Wellspring Capital Management to acquire Paragon as part of a reorganization plan, according to a newswire report. Wellspring's proposal provides for a $100 million equity investment in Paragon in return for 84.1 percent of the new common stock of Paragon to be issued pursuant to a reorganization plan. The proposal is subject to the bankruptcy court's approval. The Wellspring proposal also provides that Paragon may simultaneously prepare and file its own plan of reorganization so that the plan process and the company's exit from chapter 11 are not delayed in the event that the Wellspring proposal is not consummated, or a higher or otherwise better alternative transaction is not approved. (ABI 11-June-99) PETSEC ENERGY: Chairman Addresses Annual Meeting/Optimistic ----------------------------------------------------------- The Chairman of the Board of Petsec Energy Ltd., on the occasion of the company's thirty-first annual meeting, May 26, 1999 told the group that to the end of 1997 Petsec had, since it began operations in the Gulf of Mexico in 1990, seven continuous years of growth in reserves, production and cash flow. Thirty-nine out of forty-two wells had been brought in successfully which accounted for this high level of growth. Most of these wells represented lower risk targets. But with the general industry success in the Gulf of Mexico and buoyant commodity prices in 1997 an increase of competition was seen, accompanied by lease bonus payments, and heightened drilling and development costs. The increases were of such a magnitude as to significantly erode the economics of the smaller, lower risk prospects. The Chairman told the group that to maintain growth in 1998 Petsec modified its exploration strategy to include a number of higher potential prospects, with attendant higher risk, in its drilling program. The company also sought to achieve growth objectives by seeking a strategic alliance or merger with companies of similar size to Petsec and larger. A good deal of interest was generated in the company; unfortunately, due to the extraordinary collapse of oil and gas asset values and share prices of US exploration and production companies in the third quarter of the year, expectations changed dramatically and the process was prolonged. Petsec's 1998 capital expenditure of US$125 million included eight exploration wells. Five of these found oil and gas reserves but generally were quite small. This expenditure, together with a halving of the company's anticipated operating cashflow for the year, resulting from the substantial decline in oil and gas prices, gave rise to unacceptably high levels of bank debt particularly in an environment of US$11 per barrel of oil and US$1.80 per Mcf of gas. In February Petsec sold a 50% working interest in 17 production leases and six exploration leases to Apache Oil & Gas Inc. for $111.7 million (US$68.3 million) thereby reducing its bank debt to $14.3 million (US$9 million) and its overall debt to $170 million (US$109 million). The company retained most of its one trillion cubic feet of gas equivalent of exploration potential. There is a large inventory of over 40 prospects on the 45 leases the company holds, and this should form the basis of its future growth. Continuing his address the Chairman said "We now intend to revert to the more conservative exploration approach that was so rewarding for the company in the years 1990-1997 and we will further reduce our risk through farmout to joint venture partners.......I hope to be able to announce further joint venture deals in the near future but, as a minimum, we intend to participate in 6-8 wells this year which will expose the company to in excess of 60 billion cubic feet of gas equivalent (Bcfe) net reserves potential." QUALITECH STEEL: Stipulated Order Reducing Exclusivity Period ------------------------------------------------------------- The debtors, Qualitech Steel Corporation and Qualitech Steel Holdings Corp., together with Chase Venture Capital Associates, LP, John Hancock Mutual Life Insurance Company, Newcourt Commercial Finance Corporation and Textron Inc. stipulate that an auction is presently scheduled for June 30, 1999. A hearing to approve the sale of the debtors' assets to the successful bidder at the auction is scheduled for July 9, 1999 at 9:00 AM. The Committee, Chase, Newcourt, John Hancock and Textron all desire to be able to present a plan of reorganization at the Sale Hearing for consideration as an alternative to any proposed sale and presently all such parties are involved in discussions with potential plan funders. Such negotiations will be aided and the and of these cases perhaps expedited if exclusivity were lifted with respect to those parties. The Credit Agreement entered between the Banks and the Debtors provides that it is an event of default thereunder if exclusivity is lifted for any party and not for the Banks. RICHFOOD HOLDINGS: Sold For $1.5 Billion To Supervalu ----------------------------------------------------- The Virginian Pilot Ledger Star reports on June 10, 1999 that Richfood Holdings Co., the parent of Norfolk-based Farm Fresh, is being acquired by Supervalu Inc., the biggest wholesaler in the United States. In a $1.5 billion transaction, Supervalu - which also is the nation's 11th-largest grocery retailer - is paying $883 million, or $18.50 per share, and assuming $642 million of the Richmond- based company's debt. The transaction is subject to approval by Richfood's shareholders and regulatory clearance. It is expected to close late summer to early fall. Supervalu chief executive Mike Wright said there would be no staff reductions in Hampton Roads. Farm Fresh is the region's second- largest grocery retailer and the fifth-largest private employer, with 5,026 employees. The Farm Fresh name and headquarters will remain in Norfolk. Richfood chief executive John E. Stokely, 46, said he will stay through the transition, and then move on. Stokely said Ron Dennis, Farm Fresh's president and chief operating officer, will keep his post. Supervalu's strategy is to continue to grow Richfood's retail operations, Wright said: "We hope that we'll be able to grow and invest even more in Farm Fresh." For Supervalu, headquartered in Eden Prairie, Minn., the acquisition provides a stronghold of the mid-Atlantic market, where it did not have a presence before. Supervalu operates 345 stores, mostly in the Midwest, under the names of Cub Foods, Shop 'n Save and bigg's. Shares of Richmond-based Richfood gained $2 in trading Wednesday, closing at $16.88. Even with that 13 percent gain, the stock is off 32 percent from its high for the year - $24.81 on Feb. 3 - and 47 percent off its 1998 high of $32. Richfood switched in May 1988 from a cooperative owned by its member-merchants to a publicly traded company. It grew into the largest wholesaler in the mid-Atlantic, supplying many of the smaller independent chains, including U-Krops, Genardi and Camellia Foods. Richfood logged $3.2 billion in sales for its 1998 fiscal year. In April, Richfood shares fell nearly 20 percent as analysts reduced their fourth-quarter earnings estimates. Net earnings for 1988 were $69.2 million, a 12.8 percent increase over the previous year. In recent years, as small supermarket retailers were swallowed up by larger chains, the wholesalers that supply them have lost some of their biggest customers. To hedge their bets, wholesalers have had to step into the retailing business. For Richfood, that meant buying Farm Fresh out of bankruptcy in March 1998, along with two other retail chains: METRO, a 16-store chain in Baltimore, and Shoppers Food Warehouse, a 37-store chain in the Washington, D.C., area. But last April, Richfood lost a $600 million contract with its biggest wholesale customer, Giant Food Stores of Carlisle Inc., when Giant's owner opted to go with a larger distributor that supplied a retail chain which it was acquiring. "Certainly the sluggish stock price plus the announcement of the Giant of Carlisle loss catalyzed" the process, said Jeff Metzger, publisher of Food World, an industry publication. After acquiring Farm Fresh out of bankruptcy, Richfood launched an $85 million campaign to overhaul the stores. Farm Fresh's ability to invest in its stores and employees had been crippled by debt it incurred in a 1988 leveraged buyout. Richfood has renovated 13 of the 38 Farm Fresh stores so far, adding amenities such as sushi bars and drive-through pharmacies, rebuilding some of the locations from the ground up. Richfood also owns four Rack & Sack stores. In the meantime, Harris Teeter, Hannaford Bros. and Winn-Dixie have encroached on the region and Food Lion has unseated Farm Fresh as the dominant grocery retailer in Hampton Roads. Food Lion now has 42.8 percent market share compared to Farm Fresh's 31.7 percent, according to an annual survey by Food World. George S. Dahlman, an analyst with U.S. Bancorp Piper Jaffray, said that Supervalu and Richfood would be a good fit, as Supervalu is used to dealing with more than one retail concept. SOWA BANK: Asks To Be Declared Insolvent ---------------------------------------- Japan's Tokyo Sowa Bank Ltd., a midsized regional bank, asked financial authorities to declare it insolvent. The bank said Friday it made the request to the Financial Reconstruction Committee after fund-raising became difficult and the bank feared it would be unable to repay depositors. Earlier Friday, it revised its results for the fiscal year that ended March 31 to show liabilities exceeding assets by about $8.6 billion. Tokyo Sowa also said that its capital adequacy ratio a measure of a bank's health was minus 5.60 percent at the end of March versus a positive 2.42 percent in late May. Since Japanese banks with only domestic operations are required to have a capital adequacy ratio of at least 4 percent, the Financial Supervisory Agency on May 31 ordered the bank to take ''prompt corrective action'' to increase its capital. The bank said it intended to boost its capital via a third-party share issue. However, after the FSA order, depositors rushed to close their accounts, making fund-raising impossible, Tokyo Sowa said. The bank's board of directors will resign to take responsibility for its failure. TEXFI INDUSTRIES: Sale Of Stock Completed In May ------------------------------------------------ On April 22, 1999, five business entities and one individual reported that they had sold 1,470,671 shares of common stock, and 1,200,000 options to acquire shares of common stock for an aggregate purchase price of $3,431,123. Such report was premature only in the date of completion of the transaction. While the selling parties had concluded that the sale of the common stock and options was complete, the purchaser wished to negotiate further matters before it deemed the sale closed. Such matters were concluded on May 20, 1999, and the sale was completed on that date at the price shown above. The disposition of stock and options was executed in a private sale. The sale of stock and options by Chadbourne Corp., Mentmore Holdings Corp., Halton House Ltd., The Halton Declaration of Trust, Bahamas Protectors Ltd., and William L. Remley reduced the beneficial ownership of common stock of those parties to zero. VOICE IT WORLDWIDE: Hearing on Adequacy of Disclosure Statement --------------------------------------------------------------- A hearing will be conducted before the US Bankruptcy Court for the District of Colorado to consider the adequacy of the Disclosure Statement of the debtor, Voice It Worldwide, Inc. on July 20, 1999 at 9:00 AM in Courtroom B, US Bankruptcy Court, US Custom House, 721 19th Street, Fifth Floor, Denver, Colorado. Any objections to the Disclosure statement must be filed no later than July 13, 1999. WHITE ROSE: Sales Growing in 1999 Fiscal Third Quarter ------------------------------------------------------ Canada Newswire reports on June 10, 1999 that White Rose Crafts and Nursery Sales Limited today announced a significant improvement in its financial results for the 13-week period ended May 2, 1999. For the 13-week period ended May 2, 1999, the Company had a loss of $1.7 million (10 cents per share) compared with a loss of $4.1 million (25 cents per share) reported for the 13-week period ending April 26, 1998. The reduced loss, resulting primarily from improved margins and a lower cost structure for the business, occurred despite a 28% decline in revenue. Revenue for the third quarter was $30.6 million, down from $42.3 million for the year-earlier period. Same store sales decreased 12.3% during this period, due to a later, cooler Spring than was experienced last year. Revenue for the 39-week period ended May 2, 1999 was $119.2 million, down 14.5% from $139.4 million for the 39- week period ended April 26, 1998. For the 39-week period ended May 2, 1999, the Company incurred a loss of $22.4 million ($1.37 per share) compared to a loss of $8.4 million (51 cents per share) during the nine month period ended April 26, 1998. Included in the loss for the current 39- week period are restructuring charges of $17.6 million and a writedown of capital assets by $1.6 million, taken in the second quarter. White Rose has been operating since November 27, 1998 under the Companies' Creditors Arrangement Act, granting it protection from its creditors. On May 28, 1999, the Company filed with the Superior Court of Justice a Plan of Arrangement and Compromise that will allow smaller, unsecured creditors to receive a portion of their unpaid bills in immediate cash. Meetings of creditors have been called for June 18 in Markham to vote on the Plan. "During the past several months, we have taken a number of steps to reduce overhead and operating costs across the province. At the same time, we've been able to improve the Company's margins," said William E. Aziz, President and Chief Executive Officer. "The broader assortment of products we're offering has been well received by our customers and that, in turn, has translated into an excellent spring selling season for White Rose." White Rose is a leading crafts and nurseries retailer in Canada. It operates 32 stores and owns and operates two farms, located in Uxbridge and Wellington, Ontario. WILSHIRE FINANCIAL: Emerges From Bankruptcy ------------------------------------------- Wilshire Financial Services Group Inc. (Nasdaq:WFSG) today announced that it has emerged from bankruptcy pursuant to the restructuring plan approved in April by the United States Bankruptcy Court for the District of Delaware. The primary focus of the restructuring plan was the successful exchange of the Company's outstanding Senior Notes, totaling approximately $ 184 million, into common stock of the restructured company. Throughout the restructuring, the Company's subsidiaries continued their normal course of business and made payments to their trade creditors and lenders (other than holders of the Senior Notes). Pursuant to the plan, the holders of the Senior Notes will receive approximately 96.16 shares of the new common stock for every $ 1,000 principal amount of the Senior Notes. A portion of the new common stock will be reallocated so that shareholders of the old common stock will receive approximately 0.6% of the outstanding shares of the new common stock, equivalent to approximately 1 share of new common stock for every 77.28 shares of the old common stock. The distribution of the new shares is expected to occur in June 1999. Houlihan-Lokey advised the Senior Note holders in connection with the Company's restructuring. The Company also will acquire the loan servicing operations of Wilshire Credit Corporation, a private company, into a majority owned subsidiary, which will allow the Company to service its own assets and provide third party servicing. This should produce additional revenues for the Company and eliminate potential conflicts of interest. The Company has requested that its new common stock succeed to the listing of its old common stock and that the suspension of trading in the old common stock be lifted. Nasdaq is currently reviewing this matter, but there can be no assurance that the stock will be approved for trading on Nasdaq. First Bank of Beverly Hills F.S.B., the Company's thrift subsidiary, has purchased approximately $ 100 million of residential and commercial mortgages since January 1, 1999 and continues to develop its Merchant Bankcard processing business. The Bank also originates commercial mortgages through its subsidiary, George Elkins Mortgage Company, a four-branch commercial mortgage loan originator headquartered in Southern California. The Chief Executive Officer of the Bank has announced her resignation to join another institution. Until her replacement is found, Kevin Kelly, chairman of the Bank's Board, and former president of the U.S. Bank of Oregon, will assume the responsibilities of the Bank's chief executive officer. As a result of this resignation and the Company's bankruptcy, the Office of Thrift Supervision issued a letter on June 3 that designates the Bank as a troubled institution under 12 CFR 563.555 and requires the Bank to obtain OTS approval before the Bank takes certain acts. Wilshire has now completed its reorganization and has engaged a search firm to find a suitable replacement for its chief executive officer of First Bank of Beverly Hills. The restrictions contained in the OTS letter will be detailed in a Form 8-K filing to be filed shortly by the Company. Wilshire Financial Services Group Inc. is a diversified financial services company conducting business in the U.S., U.S. Territories and Europe. The Company specializes in loan portfolio acquisition, mortgage banking, and servicing. It offers wholesale banking through a subsidiary, First Bank of Beverly Hills, F.S.B. The Company is headquartered in Portland and has offices in California and in the United Kingdom, France, and Ireland. WIRELESS ONE: Announces eCommerce Partnership With Netgateway ------------------------------------------------------------- Wireless One, Inc. (OTC Bulletin Board: WIRL) announced an eCommerce partnership with Netgateway, Inc. (OTC Bulletin Board: NGWY) to create a clean, family-safe electronic mall at www.wirelessonemall.com. The mall allows businesses to set up economical eCommerce "storefronts" to offer products and services and gives consumers a convenient, no charge and secure place to shop on the Internet. The electronic mall is open for Internet sales today. Netgateway has created and will manage the mall. Wireless One manages sales of "storefronts" and advertising. Initially, Wireless One will advertise the mall in its thirty- eight video markets with over a thousand thirty- second ad spots per month to its nearly 104,000 subscribers. Later, it will offer the service to all 11.2 million Housing Units in its licensed eleven-state footprint. In the Third Quarter, Wireless One will offer the approximately 1.1 million businesses in its licensed coverage area the opportunity to "build storefronts" in its electronic mall. Its WarpOne division will manage direct sales to businesses. Wireless One President and CEO, Henry M. Burkhalter, sees the Netgateway agreement as a natural extension of its Broadband Wireless Access (BWA) technology in which Wireless One can bundle a full range of telecommunications services including data, video, Internet access, Voice over Internet Protocol (VoIP) and, in the future, telephone services. He said, "Wireless One video and data customers, as well as general consumers, will find that our mall, www.wirelessonemall.com, offers easy access to a secure place to shop on the Internet. Business customers can get into eCommerce with national exposure at our mall by opening a "storefront". Each "storefront" features affordable startup and operating costs. Wireless One makes the set up for the business affordable and access by consumers convenient and secure. This partnership brings a new vitality and convenience to eCommerce. Our mall will offer one-stop shopping to the entire family. This service integrates everything we do -- video, data, Internet access and advertising. This is another example of Wireless One's leadership role in providing full-service Broadband Wireless Access." Wireless One Chief Operating Officer, Ernest D. Yates, Jr., views the substantial synergies of the partnership as a harbinger of enhanced eCommerce access throughout the southeast. "We are excited about the potential of this partnership. Wireless One can deliver both consumers and merchants in rural areas to the eCommerce mall. This is the first marriage of eCommerce and two- way Broadband Wireless Access service. It combines Wireless One's broad consumer reach, ability to provide ad insertion and superior wireless technology with Netgateway's creative ability to support the mall and offer convenient shopping opportunities. It is a compelling combination to attract new commercial interest and consumer participation in eCommerce. The Wireless One mall will be a popular place for both merchants and consumers. A shopper can take his or her shopping cart throughout the mall and check-out just one time. A single credit card transaction for the entire shopping trip is secure. The storeowners can get on line in just five days and have full control of their inventory and pricing. Businesses can open a new branch with little or no cost and access as many as 7 million shoppers currently on the Netgateway network twenty-four hours a day." Wireless One, Inc., a Broadband Wireless Access provider, owns, develops and operates wireless video, Internet access, data and voice over Internet Protocol systems in eleven contiguous states in the Southeast U.S. with exclusive licenses in the Multi-Point Multi-Channel Distribution System ("MMDS") and Wireless Communications Spectrum ("WCS"). The Company also owns a 50% interest in a joint venture that holds exclusive MMDS and WCS licenses in 13 North Carolina markets. WIRELESS ONE: Seeks More Time To File Schedules and Statements -------------------------------------------------------------- The debtor, Wireless One, Inc. seeks an extension of time to file its lists of equity security holders, schedules of assets and liabilities, schedules of current income and expenditures, schedules of executory contracts and unexpired leases and statement of financial affairs. The debtor requests an extension of twelve days through and including June 23, 1999. The debtor is in the midst of evaluating the effect of major changes within the debtor's industry and the resulting jump in the value of the debtor's business. ********** 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, Yvonne L. Metzler 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. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *