/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/990803.MBX T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 3, 1999, Vol. 3, No. 148 Headlines AIRADIGM: Files For Bankruptcy Protection AL TECH: Court Approves Emergence From Bankruptcy AMERICAN MOBILE SATELLITE: IPO Registered With SEC AMERICAN PAD & PAPER: Releases Disappointing 2nd Quarter Results AQUAGENIX: Extension of Time to File Financials ATC GROUP: Interim Nod To Use $1.68M Under $40M DIP Pact BMJ MEDICAL MANAGEMENT: Year-End 1998 Losses Disclosed CAI WIRELESS: MCI WorldCom Owns 62% Of CAI's Outstanding Shares CERES GROUP: Turkey Vulture Fund Sells 134,997 Shares CROWN BOOKS: Order Approves Commitment for Exit financing FILENE'S: Loses $6.4 Million In First Quarter FIRSTPLUS FINANCIAL: Hearing on Disclosure statement GARDEN BOTANIKA: Hearing on Exclusivity Extension GIBSON GREETINGS: Annual Meeting On For August 26, 1999 GOSS GRAPHIC: Announces Agreement With Creditors To Restructure GUNTHER INTERNATIONAL: Annual Meeting Scheduled For September HECHINGER: Committee Applies to Retain PricewaterhouseCoopers HECHINGER: Members Of Committee of Unsecured Creditors JAY JACOBS: More Trouble On The Way LATTICE SEMICONDUCTOR: Revenue & Net Income Down In Fiscal 1999 LLOYD'S SHOPPING: Insurance Premium Finance Agreement LOEHMANN'S: Liquidation Sale Starts July 31 NATIONAL HEALTH: Order Authorizes Counsel NEVADA BOB'S: Announces Signing of Agreement NEW DEAL PROJECTS: Hearing to Dismiss Case NU-KOTE HOLDING: Judge and Jury Side With Hewlett-Packard NU-KOTE HOLDING: Lender Seeks Emergency Adequate Protection PHILIP SERVICES: Committee Taps Blank Rome Comisky & McCauley PHILIP SERVICES: Committee Members PHILIP SERVICES: Committee Taps Loeb Partners PLUMA, INC: Order Authorizes Employ of Accountants SALANT CORP: 18% Of Stock Held By High River Limited Partnership SERVICE MERCHANDISE: DIP Shows Loss For Month Of June SILICON GAMING: DDJ Capital & Company Sign Letter Of Intent SIZZLER INT'L: Collins To Retire As Board Chairman In August SPORTS AUTHORITY: Slumping Sales SYSTEMSOFT CORP: Hearing on Disclosure Statement SYSTEMSOFT CORP: Files Plan Of Reorganization TOUCH 1: DirecTEL Parent Company to Emerge From Bankruptcy TRISM INC: Delisted From NASDAQ VIDIKRON: Considers Liquidation WESTERN FIDELITY: Court Grants Trustee's Motion For Auctioneer WESTMORELAND COAL: Sells Bullitt Preparation Plant Z. FREDERICK: Last Day For Filing Proofs of Claim Meetings, Conferences and Seminars ********** AIRADIGM: Files For Bankruptcy Protection ----------------------------------------- Airadigm Communications, Inc. owes more than $ 160 million to creditors that include the Oneida Indian tribe and the Federal Communications Commission. Airadigm was seeking Chapter Eleven bankruptcy protection to secure new financing. The communications company plans to continue to providing service to its 13,000 customers. Its major markets include Madison, Green Bay, the Fox Valley and Sheboygan. Federal court documents in Madison show Airadigm owes about $57 million to Ericcson Inc., a Swedish telecommunications equipment company, $40 million to the Oneida Development Authority for loans and $60 million for its license from the FCC. Airadigm's assests have not been disclosed. Airadigm began marketing wireless communications services in March 1997 using the brand name Einstein PCS. AL TECH: Court Approves Emergence From Bankruptcy ------------------------------------------------- The Buffalo News reports on July 31, 1999 that AL Tech Specialty Steel Corp. in Dunkirk got the go-ahead Friday to emerge from its 11/2-year bankruptcy reorganization as a smaller -- but viable -- steelmaker, with an expected $ 14.5 million in fresh capital from the Empire State Development Corp. "Hopefully this result is good both for the parties and the community," U.S. Bankruptcy Judge Carl Bucki said. Bucki approved a plan that erases millions of dollars in debts but preserves AL Tech's 230 remaining jobs in Dunkirk, with the hope it can recover to its former 500-job level. Pending final approval of settlements between the company and creditors, the action ends AL Tech's bankruptcy reorganization and clears the way for its return to profitability, company officials said. Lawyers for the company and the United Steelworkers of America called the complicated plan a "miracle" that balanced the interests of Korean and U.S. lenders, a costly environmental cleanup, hundreds of workers and about 1,500 retirees who depend on pension and medical benefits. Unable to pay suppliers, the maker of stainless steel bar, rod and wire filed for Chapter 11 reorganization on Dec. 31, 1997, listing assets of $ 90 million and debts of $ 231 million. About $ 52 million of its debts were inherited through a merger with a sister company owned by AL Tech's Korean parent, Sammi Steel Co. "You simply don't see any companies in this industry that survive under those circumstances," said Steven Presser, a principal in Keilin & Co., a New York investment bank hired by the steelworkers to save the company from liquidation. The highlights of the reorganization plan include: Sale of the Dunkirk plant to an unnamed "Newco" controlled by employees and by Atlas Steel Co. of Ontario, a major supplier. Atlas will pay $ 2.5 million and forgive $ 42 million in unpaid bills. Employees will take undetermined pay and benefit cuts. Newco will shoulder responsibility for $ 87 million in unfunded retiree costs, most for medical benefits. Payment of nearly all of an expected $ 16 million to $ 19 million bill for environmental cleanup at the Dunkirk plant and a sister plant near Albany. Buyers and former owners of the properties will pay the state environmental fund, and a shell company will administer the cleanup of metal-contaminated ground-water. Infusion of a $ 2 million grant and $ 12.5 million loan from the Empire State Development Corp. to replace obsolete equipment. In addition, the state will accept a reduced collateral position on $ 2.5 million AL Tech still owes on a loan dating to the 1970s. Another $ 2 million in long-term loans plus a credit line will be arranged by Keilin & Co. Unsecured creditors owed more than $ 5 million will divide a pool of $900,000.Secured lenders, or those holding liens against AL Tech's assets, will get varying amounts depending on their settlements with the company. The restructuring will give Newco $ 10 million in operating funds and enough capital to replace its decades-old production equipment, Presser said, a must if it is to return to profitability. The plan predicts Newco will generate sales of $ 40 million to $50 million in its first year, compared to AL Tech's average of $100 million in annual sales before its bankruptcy. "You're talking about a smaller company," Presser said. AL Tech's extrusion operations in Watervliet will be sold to Spanish steelmaker Tubacex SA for $ 1.5 million plus payments for inventory and environmental remediation. The two-day hearing that ended Friday focused on the $ 50 million in debts AL Tech inherited through its merger with Sammi AL Tech, a sister company. Parent Sammi Steel Co. of Korea merged the operations in April 1997. Sammi AL Tech acted as sales agent for Sammi in the U.S., St. George testified. Unable to meet interest payments on its debt load after Sammi went bankrupt, it was merged with AL Tech. In addition to an unbearable debt load, the merger gave AL Tech ownership of a Palm Springs condominium and golf club membership perks used by Sammi officials. It's undetermined whether the new company will take the AL Tech name or a version of it, he said. Under the reorganization plan, a seven-member board of directors will run the company and appoint a new chief executive. The United Steelworkers and Atlas Steel will each chose two directors. Salaried workers will chose one and AL Tech creditors -- who will own 12 percent of Newco stock -- will chose one. The seventh director will be the chief executive chosen by the board. Stock will build up in employee accounts in an Employee Stock Ownership Plan according to their rate of pay, Presser said. Of the 44 percent share of Newco owned by employees, union workers will own 80 percent and managers 20 percent, he said. Atlas -- another former Sammi unit that underwent reorganization in Canada -- will own the remaining 44 percent of Newco. AL Tech was formed in 1976 when managers at Allegheny Ludlum Steel Corp. bought the firm's bar products division. The company was sold to Chicago-based GATX in 1981, to Rio Algom Ltd. of Toronto in 1986, then to Sammi Steel Co. Ltd. of Korea in 1989. AMERICAN MOBILE SATELLITE: IPO Registered With SEC -------------------------------------------------- XM Satellite Radio Holdings Inc., a wholly owned subsidiary of American Mobile Satellite Corporation, has filed a registration statement with the Securities and Exchange Commission for an initial public offering of common stock. The offering will be underwritten by joint-book-running managers Bear, Stearns & Co. Inc. and Donaldson, Lufkin & Jenrette, and co-managed by Deutsche Banc Alex. Brown and Merrill Lynch. XM Satellite Radio is developing a new band of radio. The service will deliver up to 100 channels with digital-quality sound from coast to coast directly from its satellites to listeners in their cars and at home. XM Satellite Radio plans to offer an innovative mix of music, talk, news, sports and children's formats for $9.95 a month. Headquartered in Washington, DC, XM Satellite Radio has one of only two satellite digital audio radio service licenses, awarded by the Federal Communications Commission in October 1997. XM's investors include industry leaders Clear Channel Communications Inc.; DIRECTV, Inc., a unit of Hughes Electronics Corporation; The General Motors Corporation; and a private investment group comprised of Columbia Capital, Telcom Ventures L.L.C., and Madison Dearborn Partners, which together recently invested $250 million in the company. The securities may not be sold nor offers to buy be accepted prior to the time the registration statement is declared effective by the Securities & Exchange Commission. AMERICAN PAD & PAPER: Releases Disappointing 2nd Quarter Results ---------------------------------------------------------------- American Pad & Paper Company's financial results for the second quarter ended June 30, 1999 showed a net loss of $14.2 million, compared to a net loss of $55.9 million, in the second quarter of 1998. Second quarter 1999 net revenue was $134.1 million, versus net revenue of $146.7 million in the second quarter of 1998. For the first six months of 1999 the company reported a net loss of $26.9 million, compared to a net loss of $58.0 million in the first half of 1998. Net revenues for the first six months of 1999 were $271.7 million, versus net revenue of $308.3 million for the first half of 1998. Last year's performance was impacted by a $41.0 million write-down of goodwill taken in the second quarter. "Revenue performance was somewhat below expectations due to AMPAD Division volumes being lower than anticipated. This was caused by inventory reduction initiatives taken at some retail customers very late in the quarter. Additionally, the Williamhouse Division experienced somewhat softer demand in a highly competitive pricing environment," said James W. Swent III, Chief Executive Officer of the Company. "Plant rationalization initiatives, tight expense controls and the sale of a real estate asset in Chicago helped drive EBITDA performance above our plan for the quarter." "The company's recovery plan is on track for the first half of 1999 despite a very challenging market environment. Our efforts to reduce costs and improve margins are taking hold and should drive performance improvements as we head into the seasonally stronger second half of the year," said Mr. Swent. "The keys to success in the second half of 1999 will be completing our plant rationalization plan, increased marketing-sales efforts, new product introductions and remaining focused on rebuilding our base of business with existing and new customers." American Pad & Paper Co., which invented the legal pad in 1888, is a leading manufacturer and marketer of paper-based office products in North America. Product offerings include envelopes, writing pads, file folders, machine papers, greeting cards and other office products. The key operating divisions of the company are Williamhouse, AMPAD, and Creative Card. Company revenues in 1998 were $662 million. AQUAGENIX: Extension of Time to File Financials ------------------------------------------------ The US Bankruptcy Court for the Southern District of Florida has entered an order extending the time in which to file a statement of financial affairs and schedules. The debtor shall file its statement of financial affairs and schedules on or before August 2, 1999. ATC GROUP: Interim Nod To Use $1.68M Under $40M DIP Pact -------------------------------------------------------- ATC Group Services Inc. won court authorization to borrow up to $1.68 million pending an Aug. 2 subsequent interim hearing on its bid to borrow $38 million on an interim basis under a $40 million facility with its pre-petition lenders led by Bankers Trust Co. Following an initial preliminary hearing on July 27, the U.S. Bankruptcy Court in Manhattan found that "the Debtors' critical need for financing is immediate." The court's July 28 order also authorizes ATC to use the cash collateral of its lenders, who have consented to such use. Judge Jeffrey Gallet (S.D.N.Y.) said that the first interim order "is intended to serve the limited purpose of allowing the debtors to pay their employees and continue to conduct business through Monday August 2, 1999." In addition to continuing the interim hearing until Aug. 2, the court scheduled the final hearing on the DIP financing agreement for Aug. 10. (The Daily Bankruptcy Review and ABI Copyright c July 30, 1999) BMJ MEDICAL MANAGEMENT: Year-End 1998 Losses Disclosed ------------------------------------------------------ Having declared Chapter 11 bankruptcy on December 17, 1998, BMJ Medical Management, Inc. and five of its subsidiaries, (collectively, the debtors) has operated as debtor-in-possession. Recently filed financial information for the three months, and nine months, ended December 31, 1998, shows net losses of $27,907,000 and $32,961,000 respectively. This compares to the same three and nine month period of 1997 when losses were $22,713,000 and $30,382,000, respectively. Reported revenues for the three months ended December 31, 1998 were $16,956,000 and for the nine month period $51,670,000. For the three month period ended December 31, 1997 revenues were $16,526,000 and for the nine month period, $32,505,000. CAI WIRELESS: MCI WorldCom Owns 62% Of CAI's Outstanding Shares ---------------------------------------------------------------- Beneficial ownership of 10,684,140 shares of CAI Wireless Systems Inc. has passed to MCI WorldCom. This represents approximately 62.0% of the outstanding shares, based upon the number of shares outstanding as of June 21, 1999. MCI WorldCom has sole voting and investment power over the shares, provided that MCI WorldCom has agreed in the merger agreement to vote its shares in favor of the merger. Numerous purchases of CAI common stock were made in the month of July by MCI Worldcom. All such purchases were made on the open market through a broker and all transactions included a broker fee. On July 2, 1999, MCI WorldCom purchased 2,500 shares at a purchase price of $27.675 per share for an aggregate cost of $69,187.50. On July 6, 1999, MCI WorldCom purchased 76,500 additional shares at a purchase price of $27.95 per share for an aggregate cost of $2,138,175.00. On July 7, 1999, MCI WorldCom purchased 5,000 additional shares at a purchase price of $27.925 per share for an aggregate cost of $139,625.00. On July 9, 1999 MCI WorldCom purchased 41,000 additional shares at a purchase price of 27.925 per share for an aggregate cost of $1,144,925.00. On July 12,1999, MCI WorldCom purchased 1,500 additional shares at a purchase price of $27.925 per share for an aggregate cost of $41,887.50. On July 13, 1999, MCI WorldCom purchased 2,500 additional shares at a purchase price of $27.925 per share for an aggregate cost of $69,812.50. Additionally, on July 9, 1999, MCI WorldCom acquired 2,270,715 shares under the Second Agreement with CAI. Under that agreement the shares were purchased at a price less than the merger consideration of $28.00 per share. On June 4, 1999, MCI WorldCom acquired 8,284,425 shares under the First Agreement. In accordance with that agreement, the shares were purchased at a price less than the merger consideration of $28.00 per share. As of July 27, 1999, MCI WorldCom used an aggregate amount of its available funds totaling $3,603,612.50 to make the open market purchases through that date. MCI WorlCom indicates it may expend more funds in the future to make additional purchases. MCI WorldCom expects to exercise its rights as a shareholder of CAI and submit proposals to shareholders of CAI to (1) remove the current board of directors, (2) amend the Bylaws of CAI to, among other things, provide for a board of directors consisting of two members, and (3) elect two or more of its own nominees. The proposals are expected to be submitted to shareholders at a special meeting, which may be the same meeting CAI is required to call for shareholders to consider and vote upon the merger with a wholly-owned subsidiary of MCI WorldCom. In the event the merger is not approved by shareholders, MCI WorldCom expects to review its alternatives with respect to CAI, which may include, among other things, resubmitting the proposed merger between CAI and a wholly owned subsidiary of MCI WorldCom, and/or submitting a merger agreement on different terms between CAI and MCI WorldCom or one of its subsidiaries. MCI WorldCom indicates it may also explore other forms of transactions with CAI or its subsidiaries, which may include stock sales, commercial transactions, or other types of transactions. CAI has previously reported that it believes it has sufficient cash to fund its capital requirements through November 1999 and that, if the merger is not approved, CAI would not have sufficient cash to implement its business plan. In view of CAI's liquidity needs, MCI WorldCom may propose to CAI that MCI WorldCom invest additional capital in CAI in exchange for additional CAI shares of capital stock. These additional shares, if so acquired, might result in MCI WorldCom's ownership of an aggregate number of shares that would be sufficient to approve the merger. Further, MCI WorldCom plans to review the businesses of CAI and make such changes as it deems appropriate at the time, which could include causing CAI to enter into commercial transactions, joint ventures, asset sales or other possible transactions. CERES GROUP: Turkey Vulture Fund Sells 134,997 Shares ----------------------------------------------------- Turkey Vulture Fund XIII, Ltd., an Ohio limited liability company, reports the sale of 134,977 shares of common stock, $0.001 par value, of Ceres Group, Inc., a Delaware corporation. The Fund beneficially owns 1,646,388 shares, assuming full exercise of the Equity Warrants and the Guaranty Warrant owned by the Fund and Mr. Richard M. Osborne, or approximately 11.5% of the outstanding shares. As sole manager of the Fund, Mr. Osborne may also be deemed to beneficially own all the shares. Because of the voting agreement and stockholders agreement, the Fund and the other parties to the agreements may be deemed to be a group within the meaning of Section 13(d)(3) of the Exchange Act. If such parties are deemed to be a group the Fund may be deemed to beneficially own 14,753,391 shares, or approximately 79.3% of the shares that would be outstanding if each party had exercised their respective outstanding rights to purchase shares. The Fund disclaims beneficial ownership of the shares held by the other parties. The open market sales transaction by Turkey Vulture Fund XIII, LTD. were made on June 17, 1999, 4,500 shares at $10.00 per share; July 2, 1999, 5,500 shares at a per share price of $9.3125; and July 12, 1999, 124,977 shares at $9.05 per share. CROWN BOOKS: Order Approves Commitment for Exit financing --------------------------------------------------------- On July 26, 1999, the US Bankruptcy Court for the District of Delaware entered an order approving a commitment letter for exit financing with Paragon Capital LLC and Foothill Capital Corporation. FILENE'S: Loses $6.4 Million In First Quarter --------------------------------------------- The New York Post reports on July 28, 1999, that the retailer lost $9 million last year, and $6.4 million in the first quarter of this year alone. Struggling Filene's Basement staved off disaster with a new line of credit yesterday - but its troubles aren't over. Despite denials from the company, sources say Chairman and CEO Sam Gerson has told them he will shut 12 of the 51 Filene's Basement stores around the U.S. The discounter has two stores in Manhattan. Filene's Basement still has to convince nervous vendors that it is not on the brink of bankruptcy, and they can start shipping merchandise again. Some stopped shipping last week, spooked by word that Filene's Basement was shopping for a new credit line, with two years to go on the old one. A Filene's Basement spokesperson said the new, $125 million credit line from G.E. Capital and Paragon Capital was simply a better loan. But industry sources are speculating that the old lender, BankBoston Retail Finance, wanted out of the deal. BankBoston refused to comment. But last month it hiked Filene's Basement's interest rate and demanded that the retailer accept new restrictions. Vendors and investors have been worried about Filene's Basement for some time. The retailer lost $9 million last year, and $6.4 million in the first quarter of this year alone, as it marked down merchandise that wasn't moving. The stock is now trading at 17/32, although it gained 3/16 after the news of the new loan hit. Some in the retailing community compare Filene's Basement's troubles to bankrupt Loehmann's. "They got away from what they were good at, marking down high quality merchandise," said one source. "The clothes they were offering were lower in quality." Filene's is now attempting to remake itself. Earlier this year, it launched a new concept called "Aisle 3." Aisle 3 stores, open only on weekends, sell higher quality apparel and home accessories. The new stores, in Rockland County, New Jersey and Maryland are doing well so far, and the company plans to open several more by the end of the year. FIRSTPLUS FINANCIAL: Hearing on Disclosure statement ---------------------------------------------------- The hearing to consider the approval of the disclosure Statement of Firstplus Financial, Inc., debtor, will be held on September 24, 1999 at 9:30 AM before the Honorable Harold C. Abramson, US Bankruptcy Court, 1100 Commerce Street, 14th Floor, Courtroom No. 2, Dallas, Texas. GARDEN BOTANIKA: Hearing on Exclusivity Extension ------------------------------------------------- The debtor, Garden Botanika, Inc. filed a motion to extend plan exclusivity periods to February 29, 2000 (time in which to file plan) and May 1, 2000 (time in which to obtain acceptance of plan). A hearing on the motion will be held on Friday, August 13, 1999 at 11:00 AM before the Honorable Karen A. Overstreet at the US Bankruptcy Court, Room 427, Park Place Building, 1200 Sixth avenue, Seattle, Washington. GIBSON GREETINGS: Annual Meeting On For August 26, 1999 ------------------------------------------------------- The annual meeting of stockholders of Gibson Greetings, Inc. will be held at the Metropolitan Club, 50 E. RiverCenter Blvd., Covington, Kentucky, at 11:00 a.m. Eastern Daylight Time, on August 26, 1999. Stockholders in attendance, and those sending in their proxies, will be voting to elect three directors; approve the Gibson Greetings, Inc. 1999 Stock Incentive Plan; and to consider, if presented at the meeting, a stockholder proposal. Stockholders of record at the close of business on July 9, 1999 are entitled to receive notice of, and to vote at, the meeting. The full text of the proxy statement may be found at http://www.sec.gov/cgi-bin/srch-edgar?0000950152-99-006214on the Internet, free of charge. GOSS GRAPHIC: Announces Agreement With Creditors To Restructure --------------------------------------------------------------- Las Vegas Review-Journal (Las Vegas, NV) reports on July 31, 1999 that printing press giant Goss Graphic Systems Inc. of Westmont, Ill., announced Friday that it has reached an agreement with its creditors to restructure the company under Chapter 11 of the federal bankruptcy law. In a news release, Goss said it filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware Friday after its noteholders agreed to exchange $225 million in notes for a new $ 112.5 million note and new company stock. Additionally, the company's lenders and its principal stockholder, Stonington Partners, agreed to provide an additional $ 100 million in capital. Goss, the world's leading manufacturer of printing press equipment, is installing a $ 40 million press at the Review- Journal. Goss officials said the restructuring agreement will allow it to continue with that and its other projects around the world. GUNTHER INTERNATIONAL: Annual Meeting Scheduled For September ------------------------------------------------------------- Notice is being given by Gunther International, Ltd. that the 1999 annual meeting of stockholders of will be held at Loew's New York Hotel, 569 Lexington Avenue, New York, New York on Thursday, September 9, 1999 at 10:30 a.m., local time. The meeting will convene to elect a Board of seven Directors to serve until the next annual meeting of stockholders or until their respective successors are elected and qualified; to act upon a proposal to adopt the Gunther International, Ltd. Directors' Equity Plan; to ratify the appointment of Arthur Andersen LLP as the company's independent accountants for the fiscal year ended March 31, 2000; and to act on any other matters that may arise. The Board of Directors has fixed the close of business on July 15, 1999 as the record date for the determination of the stockholders entitled to notice of and to vote at the annual meeting. The entire proxy statement may be found at http://www.sec.gov/cgi-bin/srch-edgar?0000914039-99-000338on the Internet, without charge. HECHINGER: Committee Applies to Retain PricewaterhouseCoopers ------------------------------------------------------------- The Official Committee of Unsecured Creditors of the debtors, Hechinger Investment Company of Delaware, Inc. et al. seeks to hire PricewaterhouseCoopers LLP as its accountants and financial advisors. The firm will charge its customary hourly rates: Partners and directors $440-$515 Managers $330-$380 Senior Associates $250-$285 Associates $185-$200 Analysts $130-$150 Support $80-$85 HECHINGER: Members Of Committee of Unsecured Creditors ------------------------------------------------------ Teachers Insurance and Annuity Association The Sherwin Williams Company K-Mart Corporation The Scotts Company Masco Corporation HSBC Bank USA Morgan Stanley Dean Witter JAY JACOBS: More Trouble On The Way ----------------------------------- According to a report in the Seattle Post-Intelligencer on July 31, 1999, it is an unstable period, once again, for Jay Jacobs. After years of struggling and shifts in its target market, the report announces that Seattle-based retailer sent up warning flares. "The company's situation is unstable, and material developments may occur quickly over the next few weeks," the company said in an announcement released from corporate headquarters at Fifth Avenue and Pine Street. Those changes could come as early as Monday, said Rex Steffey, president and chief executive officer. If additional capital is not found, "other companies in these circumstances have filed for bankruptcy protection of one sort or another - and that is possible, also," Steffey said. "It is also possible that somebody would buy the company and take care of the problems." Jay Jacobs has been working with its primary lender, Finova Capital of Phoenix, which has agreed to hold off acting against the company for defaults in payments, Steffey said. Jay Jacobs disclosed its difficulties after reporting a 10 percent decline in same-store sales during May and June. It was only the latest in a series of problems that Jay Jacobs, founded in 1941, has faced since emerging from Chapter 11 bankruptcy protection in November 1995. Steffey repositioned Jay Jacobs to go after young men and women in the 18-to-34 age bracket as they headed to their first jobs. The next year, Nasdaq bumped Jay Jacobs stock off its National Market System listing; the retail chain had lost money for three of the previous four years, and its net worth had slipped below $4 million. LATTICE SEMICONDUCTOR: Revenue & Net Income Down In Fiscal 1999 --------------------------------------------------------------- Lattice Semiconductor Corporation designs, develops and markets high performance programmable logic devices and related development system software. In June 1999, the company acquired Vantis Corporation from Advanced Micro Devices for approximately $500 million in cash. While Vantis will remain a wholly-owned subsidiary, its business will be integrated into Lattice's operations. Advanced Micro Devices has agreed to provide Lattice with finished silicon wafers through September 2003 in quantities based either on a rolling six-month or an annual forecast. Lattice has committed to buy certain minimum quantities of wafers and AMD has committed to supply certain quantities of wafers during this period. Wafers for Lattice's products are manufactured in the Unites States at multiple AMD wafer fabrication facilities. AMD has also agreed to provide the company with certain administrative services through September 2000. These services had been provided to Vantis prior to Lattice's acquisition and include information technology, finance and accounting, and certain engineering and quality support activities. These services may be terminated, at the company's option, prior to September 2000 with one-month notice. Prices for services are consistent with prices paid by Vantis immediately prior to Lattice's acquisition. The company has also entered into an agreement with AMD in which Lattice has cross-licensed Vantis patents with AMD patents, having an effective filing date of June 1999, related to PLD products. This cross-license was made on a worldwide, non- exclusive and royalty-free basis. Lattice Semiconductor's revenue was $200.1 million in fiscal 1999, a decrease of 19% from fiscal 1998. Fiscal 1998 revenue of $245.9 million represented an increase of 20% from the $204.1 million recorded in fiscal 1997. Net income decreased 26%, from $56.6 million to $42.0 million, from fiscal 1998 to fiscal 1999, and increased 26%, from $45.0 million, between fiscal 1997 and fiscal 1998. Net income as a percentage of revenue was 21%, 23% and 22% for fiscal years 1999, 1998 and 1997, respectively. LLOYD'S SHOPPING: Insurance Premium Finance Agreement ----------------------------------------------------- The debtor, Lloyd's Shopping Centers, Inc. seeks approval of an insurance premium finance agreement with A.I. Credit Corp. The coverage for the shopping centers remains at $1 million per occurrence, $2 million aggregate, with a $500 per occurrence deductible. Total annual premiums are $11,584. The debtor was required to replace its general liability insurance which its carrier refused to renew and which , by the terms of the policy was slated to expire on June 24, 1999. LOEHMANN'S: Liquidation Sale Starts July 31 -------------------------------------------- Starting Saturday July 31st, the sale to liquidate thirteen Loehmann's stores will begin. Following the closures, the company will operate 55 stores in 19 states. Hilco/Great American Group was recently appointed by the US Bankruptcy Court in Delaware as the agent to dispose of $29 million of inventory. The going out of business sales in the thirteen stores will commence under the direction of the Hilco/Great American Group. NATIONAL HEALTH: Order Authorizes Counsel ------------------------------------------ On July 21, 1999, the US bankruptcy Court for the Eastern District of Pennsylvania entered an order authorizing the debtor, National Health & Safety Corporation to employ Fox, Rothschild, O'Brien & Frankel, LLP as its attorneys, under a general retainer. NEVADA BOB'S: Announces Signing of Agreement -------------------------------------------- Nevada Bob's Canada Inc., Nevada Bob's Pro Shop Inc. and GDH International Inc. have signed a definitive agreement under which Nevada Bob's Canada would acquire the other two parties, according to a newswire report. The agreement was addressed in the Nevada Bob's Pro Shop disclosure statement and reorganization plan, filed in the District of Nevada. A confirmation hearing is scheduled for August 25, and it is expected that the plan will become effective within 10 days of confirmation. Nevada Bob's Canada is in negotiations with Foothill Capital Corp. to provide long-term financing post-merger. NEW DEAL PROJECTS: Hearing to Dismiss Case ------------------------------------------ A hearing on the motion of the debtor, New Deal Projects LLC to dismiss the Chapter 11 case has been adjourned from July 27, 1999 to September 9, 1999 at 9:45 AM. NU-KOTE HOLDING: Judge and Jury Side With Hewlett-Packard --------------------------------------------------------- On July 23, 1999, the San Jose Mercury News reports that Hewlett- Packard Co. took a step Thursday toward winning its high-stakes legal war over the multi-billion dollar market for printer ink cartridges. A San Jose federal jury on Thursday sided with Palo Alto-based HP on most of the major issues raised in its patent infringement and antitrust fight with Nu-Kote Holding Inc., a now bankrupt Franklin, Tenn., company that tried to cut into HP's hold on the lucrative cartridge market. Perhaps most important for HP, the jury concluded that the company had not committed any antitrust violations in its aggressive approach to Nu-Kote's market challenge, despite a federal judge's earlier ruling suggesting that HP may have engaged in anti-competitive conduct. Ending a three-month trial, the jury also sided with HP on many of its trademark and patent infringement claims against Nu-Kote, although it awarded only about $2 million in damages. Among other things, jurors concluded that Nu-Kote engaged in false advertising, which accounted for the bulk of the damages. HP, the inventor of inkjet technology and the leading maker of printers and cartridges, has been locked in a court fight with Nu-Kote for five years. The dispute dates back to 1993, when Nu- Kote began selling systems to refill ink cartridges at a much cheaper price than its costs to fully replace an HP ink cartridge. HP responded by suing Nu-Kote for $7.6 million in damages for patent infringement, and later redesigned its cartridges so Nu- Kote's "refilling stations" no longer worked. Nu-Kote responded with a countersuit of $39 million, accusing HP of monopolistic practices to maintain its hold on the market. At one point in the case, U.S. District Judge James Ware agreed with some of Nu-Kote's arguments, saying the design change may have been done to exclude competition. NU-KOTE HOLDING: Lender Seeks Emergency Adequate Protection ----------------------------------------------------------- Bank of America, NA, as agent for a bank group that includes itself, Barclays Bank PLC; Commerzbank Aktiengesellschaft, Atlanta Agency; Credit Lyonnais, NY branch, The First National Bank of Chicago; Societe General; Deutsche Bank AG, NY branch; ABN Amro Bank NV and First American National Bank, as Lenders, filed an emergency motion for adequate protection. The Lenders state that the debtors should be ordered not to draw any further funds on the Norwest DIP without the express written consent of the Lenders. Such borrowings currently aggregate over $3.6 million, and as a result of the $2 million verdict against the debtors, with respect to patent infringement, trademark infringement and false advertising, (and the possibility of trebling the verdict)the lenders seek adequate protection. The lenders state that the debtors are grossly insolvent, that all borrowed amounts secured by liens which prime the lenders' liens and payments of administrative expenses result in the continued diminution of the lenders' interest in property of the estates. PHILIP SERVICES: Committee Taps Blank Rome Comisky & McCauley ------------------------------------------------------------- The Official Committee of Unsecured Creditors of the debtors, Philip Services (Delaware) Inc., et al. is seeking approval to employ the law firm of Blank Rome Comisky & McCauley LLP as its counsel. The attorneys who will be assigned t the case charge an hourly rate ranging from $165 per hour to $395 per hour. PHILIP SERVICES: Committee Members ------------------------------------ On July 12, 1999, the Office of the US Trustee appointed the ofllowing members of the committee: First Union National Bank as Indenture Trustee Kornitzer Capital Management, Inc. Great Plains Trust Company Republic Environmental Systems, Inc. Siemens Westinghouse Power Corporation Plasma Processing Corporation Robert M. Chiste PHILIP SERVICES: Committee Taps Loeb Partners --------------------------------------------- The Official Committee of Unsecured Creditors of the debtors, Philip Services (Delaware) Inc., et al. is seeking approval to employ Loeb Partners Corporation as its financial advisor and investment banker. Since the debtors have filed their plan, within twenty days of the filing date, it is evident that the debtors seek to exit Chapter 11 quickly, and the Committee agrees to provide the following services: Reviewing the debtors' business operations including historical financial results and future projections and assisting the Committee in assessing the debtors' business, operating and financial strategies. Analyzing the financial condition, business operations and assets and the projected ongoing operations of the debtors. Reviewing and evaluating the debtors' plan and the proposed distributions to the classes of claimants under the plan. Analyzing and valuing the securities and other assets to be distributed to each class of claimant under the debtors' plan including the estimated trading value of any such securities. Advising the Committee with respect to strategic options, and in negotiating the terms of the debtors' plan. Analyzing the financial and economic rights and interests in relation to intercreditor issues regarding the debtor's various claimants and the rights and obligation s of other constituencies in connection with the debtors' estates Analyzing and valuing the securities and other assets to be distributed under alternatives to the debtors' plan proposed by the Committee or other parties-in-interest or third parties and estimating the trading value of any all securities to be issued under proposed alternative reorganization plans. Alternatives to the debtors' plan. Advising the committee regarding the value of proposed distributions to various claimants in connection with the plan. Assisting the committee in the plan confirmation process, including providing expert testimony relating to a transaction or the debtors' plan or other financial matters, as s may be required. Rendering other financial advisory or investment banking services as may be agreed upon by Loeb and Committee. Loeb agrees to be retained for $50,000 per month for the first three months, and $30,000 per month thereafter. A minimum fee of $150,000 is provided. PLUMA, INC: Order Authorizes Employ of Accountants -------------------------------------------------- By order of the US Bankruptcy Court for the Middle District of North Carolina, Greensboro Division, the debtor is authorized to employ Deloitte & Touche LLP as independent auditors and accountants, nunc pro tunc to May 14, 1999. SALANT CORP: 18% Of Stock Held By High River Limited Partnership --------------------------------------------------------------- As of the close of business on July 26, 1999, High River Limited Partnership, Riverdale LLC and Carl C. Icahn were beneficial owners of 1,807,898 shares, or 18%, of the outstanding common stock as of May 11, 1999, of Salant Corporation. High River has the sole power to vote and dispose of the 1,807,898 shares of common stock beneficially owned by it. Riverdale, as general partner of High River, has the shared power with High River to dispose or direct the disposition of, the 1,807,898 shares of common stock owned by High River. Mr. Icahn, as the sole member of Riverdale, also has the shared power with High River to dispose or direct the disposition of the 1,807,898 shares of common stock owned by High River. The 1,807,898 shares of common stock which are beneficially owned by the above does not include shares owned by two master pension trust funds for which affiliates of the above act as plan sponsors. Those shares are managed by an independent investment management firm unaffiliated with Riverdale, High River and Mr. Icahn. SERVICE MERCHANDISE: DIP Shows Loss For Month Of June ----------------------------------------------------- Service Merchandise Co. Inc., operating as debtor-in-possession, has released its operating report for the period commencing May 31, 1999 and ending July 4, 1999. Revenues reported were $195,228 with a net loss of $27,037. SILICON GAMING: DDJ Capital & Company Sign Letter Of Intent ----------------------------------------------------------- DDJ Capital Management, LLC, B III Capital Partners, L.P., and DDJ Capital III, LLC report the purchase of 1,066,460 shares, or 7.2%, of the outstanding shares of common stock of Silicon Gaming Inc. The shares were purchased, according to DDJ Capital, in pursuit of a specified investment objective established by the investors in the Funds. DDJ and the DDJ affiliates may continue to have the Funds purchase shares subject to a number of factors, including, among other, the availability of shares for sale at what they consider to be reasonable prices and other investment opportunities that may be available to the Funds. DDJ and the DDJ affiliates intend to review continuously the equity position of the Funds in the company. Depending upon further evaluations of the business prospects of Silicon Gaming and upon other developments, including general economic and business conditions and money market and stock market conditions, DDJ and the DDJ affiliates may determine to cease making additional purchases of shares or to increase or decrease the equity interest in the company by acquiring additional shares, or by disposing of all or a portion of the shares. On July 22, 1999, DDJ Capital Management, LLC, on behalf of the B III Capital Partners, L.P., signed a non-binding letter of intent with Silicon Gaming to convert a portion of the $47.25 million outstanding Senior notes held by B III into equity and make various modifications to the terms of the remaining Senior notes. Under the letter of intent, $39.75 million of Senior notes would be exchanged for preferred stock that would initially be convertible into a 57% common equity interest in the company. The terms of the remaining $7.5 million of outstanding Senior notes would be modified to reduce the interest rate from 12.5% to 10% per annum (effective July 15, 1999) and to provide for interest to be payable in-kind, at the company's option and subject to certain coverage ratio tests, for up to the first 5 years following the effective date of the restructuring, at which time the Senior notes would mature. Under the terms of the letter of intent, accrued and unpaid interest on the Senior notes remaining outstanding following the restructuring would be forgiven through July 15, 1999. The letter of intent also contemplates an additional investment by the Funds of up to $5.0 million in the form of convertible senior secured notes. The new notes would bear interest at the rate of 10% per annum, payable in cash, with a maturity of 5 years. The $5.0 million of new notes would be convertible into a 40% equity interest in the company (subject to the issuance of additional employee equity incentives). The new notes would be issuable in tranches, with the first $2.0 million issued on the closing date of the restructuring. To the extent required by the company, the remaining $3.0 million of new notes would be issued upon the achievement of certain financial and operating hurdles. As part of the restructuring, Silicon Gaming would allocate 38% of its equity as of the effective date to be issued as incentive compensation to employees. The company's current equity holders, including all holders of options, warrants and convertible preferred stock, would own approximately 5% of the outstanding fully-diluted equity upon the effective date of the restructuring (prior to the issuance of any new notes). Certain of the company's currently outstanding warrants and convertible preferred stock have anti-dilution rights that may substantially reduce the portion of the equity interest that would be allocated to holders of common stock. As discussed above, $39.75 million of existing notes would be convertible in the remaining 57% of the company's outstanding equity as of the effective date of the restructuring. Upon issuance of any new notes, the number of shares of common stock allocated to the employee incentive compensation pool would be increased so that the incentive pool would remain at 38% of the company's equity after giving effect to the dilutive effect of the conversion of the new notes. In addition, upon closing of the restructuring, the Board of Directors of the company will be reduced to the three members, consisting of Andrew Pascal, the President and Chief Executive Officer of the company, and two independent directors. The proposed restructuring is subject to a number of conditions, including receipt by the company's board of directors of a "fairness opinion" from an investment banking firm, the receipt of all necessary gaming and regulatory approvals and the negotiation and execution of definitive documentation. There is no assurance that the restructuring will be successfully implemented or that there will not be modifications to the restructuring terms. SIZZLER INT'L: Collins To Retire As Board Chairman In August ------------------------------------------------------------ Sizzler International, Inc. reports that the man who built Collins Foods International (now Sizzler International, Inc.) into a major chain including KFC and Sizzler Restaurants in the United States, Latin America, Australia and throughout Asia will retire as Chairman of the company. At this year's August 17th annual meeting, Collins who has served as Chairman since November, 1968, will step down; however, the company says he will continue to be a valuable resource as a Director and Chairman Emeritus. Collins served as Chief Executive Officer of Collins Foods International from November 1968 until December 1986. He returned as Chief Executive Officer of Sizzler International in August 1997 to help shepherd Sizzler successfully through Chapter 11 and back to profitability and growth. The company has posted profits and increased year over year financial results for each of the last 10 quarters. After an extensive search, a well-known restaurant industry leader, Charles Boppell, became Chief Executive Officer of Sizzler International. Boppell said, "Few people in American foodservice history have been able to grow businesses like Jim Colins. For decades, he has shown great insights into better ways to serve the dining public and is a true pioneer in managing the delivery of these concepts. Throughout his many years of industry leadership, he has developed an enviable reputation for integrity and the respect of people around the world". Collins said, "I have been fortunate to identify promising new ideas and help turn them into strong, enduring businesses. My role has been that of builder and manager. I have also been fortunate to know and work beside many excellent professionals throughout my career who have been a large part of any success I have achieved". Over the years Collins has found time to serve many civic and industry organizations. He has been associated with the Los Angeles Metropolitan YMCA for many years and is a former Chairman of the Board. He has been very active at his alma mater, UCLA, as president of the Alumni Association from 1974 to 1976 and was voted Alumnus of the Year in 1982. He is a past president of the California Restaurant Association and a former director of the National Restaurant Association. In addition, he has been a member of the Board of Advisors of the Hotel and Restaurant Management School at Cal Poly Pomona since 1982 and earlier this month the Cal State University Trustees renamed the school as The Collins School of Hospitality Management. Sizzler International, Inc. operates or licenses 346 Sizzler restaurants worldwide and 101 KFC restaurants in Queensland, Australia. SPORTS AUTHORITY: Slumping Sales -------------------------------- The Sun-Sentinel (Fort Lauderdale, FL) reports on August 1, 1999 that the Sports Authority is trying to bounce back from a loss in its last fiscal year with a new marketing strategy, rollout of improved store designs, smarter buying and better targeting of its best customers, The Sports Authority's chief executive said. "We did too much across-the-board discounting. We've trained customers to wait for a sale. We have to create an everyday low pricing reputation," Hanaka said in an interview after his recent assumption of the company's marketing duties. The new strategy at the Lauderdale Lakes-based retailer is to focus on what it calls "hot, new, now" products, such as baby joggers and camping gear, and "regional catalyst" items. These are products that sell well in a particular region or season, and the clothing, shoes, and accessories that go along with them. "Buyers are not taking enough risk," Hanaka said. "In baby joggers, my competitors had six choices. We didn't have enough of a selection. We have to have items that stand out in the crowd." When customers can't buy everything they need to play soccer, for example, "You don't lose a soccer sale. You lose the customer," he said. "We should be appealing to suburban families, what they wear and bring to the game." Hanaka sees featuring hockey merchandise in the top 50 hockey markets, or water sports merchandise in the top 50 water sports markets. Sports Authority plans to begin remodeling some stores this fall to group merchandise by sport and entertain customers with interactive elements such as simulated ice hockey. The first such store debuted this year in Clifton, N.J. The roll-out schedule for remodeling of other locations is still being determined. Repositioning The Sports Authority through marketing is so important that Hanaka said assuming marketing management is his best role as chief executive now. Although many of its competitors have long used database marketing, The Sports Authority is just now taking the plunge. Stores will gather information about top-spending customers through software when ringing up the sale. The Sports Authority also plans to offer a charge card that gives users rewards for purchases. The card is scheduled to be introduced in late fall or early winter, Hanaka said. The Sports Authority also is jumping into e-commerce with at least one foot: In May, the company signed a joint venture with Global Sports Interactive to launch a site for buying products over the Internet. Its current site, www.sportsauthority.com, is only informational. Though the company gives up total control over its site, the joint venture was an inexpensive vehicle for cash-strapped Sports Authority to break into e-commerce. The company will initially own 19.9 percent of TheSportsAuthority.com, the new venture, but can buy up to 49.9 percent. Robert Erb, director of sports marketing for Adidas America in Beaverton, Ore., said brand identity is a struggle for The Sports Authority and other sporting-goods retailers. "You have clear objectives, then set a strategy. The brand becomes your people's way of interacting with the public, your communications, your distribution." The Sports Authority is neither a specialty retailer, such as an outdoors store, nor a discounter like Wal-Mart. Communicating a clear identity to consumers is a greater challenge. Though Sports Authority had a better-than- expected spring, the early summer months were so poor that William Cappiello, the company's president and No. 2 executive, left after only eight months on the job. Athletic shoe sales have dropped to about 30 percent of The Sports Authority's sales, Hanaka said. One factor was the fall in basketball-shoe sales after Michael Jordan's retirement. Fashion also is an influence: Consumers are tending to buy more shoes that go with khakis and other casual fashions. The Sports Authority operates 200 sporting-goods superstores: 195 in 32 states and five in Canada. The company also is a partner in 13 stores in Japan under a licensing agreement. Despite Japan's economic turmoil, Hanaka said, The Sports Authority has no intention of pulling out of the market. The chain has expansion plans in Canada for another four to five stores, he said. But capital investment is difficult with The Sports Authority's latest performance. The Sports Authority had a loss of $ 63.8 million on $1.6 billion in sales for its year ended in January. The retailer's stock closed at $ 3.81 on Friday, down from $13.44 at this time last year. The stock rebounded slightly two weeks ago, following the news that California investor Joseph Harrosh has taken a 7.1 percent stake. In securities filings, Harrosh said he wants the stock for investment purposes. He has a history of identifying turnaround candidates; Harrosh's investment preceded a takeover at Comsat Corp. last year. While Hanaka said "the company's not for sale," The Sports Authority was a takeover candidate twice last year. Woolworth, now Venator, made a bid to add The Sports Authority to its collection of mall sporting goods stores, but the bid collapsed because Venator's stock price dropped too low. Gart Sports also made a bid that was rejected by The Sports Authority because the company said Gart had too much debt. Hanaka said he and other top executives at The Sports Authority have shown confidence in the turnaround by buying additional stock. It was disclosed on July 22 that Hanaka had bought 40,000 shares, chief financial officer Anthony Crudele bought 3,000 shares, and director Steve Dougherty bought 140,000 shares. Despite the declining market for athletic shoes, Hanaka contends he can pull The Sports Authority out of its slump through better-focused marketing and changes to make the store a more fun shopping experience. SYSTEMSOFT CORP: Hearing on Disclosure Statement ------------------------------------------------ A proposed plan of reorganization and Disclosure Statement have been filed by Systemsoft Corporation on July 21, 1999. Objections, if any, must be filed on or before August 26, 1999. A hearing will b be held on August 31, 1999 at 12:30 PM. SYSTEMSOFT CORP: Files Plan Of Reorganization ---------------------------------------------- On July 21, 1999, SystemSoft Corporation filed a plan of reorganization with the United States Bankruptcy Court for the District of Massachusetts (Western Division). The plan was filed in connection with the company's voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code, filed March 23, 1999. The company expects the Bankruptcy Court to either approve or disapprove the plan by September or October, 1999, although there is no assurances such action will be taken within that timeframe. If the plan is not approved, the company says it intends to submit an alternative plan of reorganization or liquidation. The description of the plan may be found at http://www.sec.gov/cgi-bin/srch-edgar?0000950135-99-003656on the Internet, free of charge. TOUCH 1: DirecTEL Parent Company to Emerge From Bankruptcy ---------------------------------------------------------- Touch 1 Communications announced this week that a creditor- approved reorganization plan has been confirmed by the bankruptcy court. The Alabama-based long distance company's telemarketing subsidiary, DirecTEL, operates outbound call centers in Mandan, Minot and Grand Forks. The Bankruptcy Court for the southern District of Alabama confirmed the reorganization plan on Tuesday, according to a press release from the company. "Successfully exiting Chapter 11 in just 13 months is a testimonial to the hard work of our employees, the leadership provided by our management team and the support of our creditors," Touch 1 President Jim Corman said. "We couldn't be happier." The bankruptcy court's administrator said Thursday that the judge had verbally confirmed the plan and was expected to sign it. Touch 1 entered Chapter 11 bankruptcy protection in June 1998, after its board replaced Corman with a new president and chief executive officer. Corman was reinstated just weeks later, following a $ 20 million infusion from an evangelical foundation he started that allowed Touch 1 to pay off its two largest creditors. TRISM INC: Delisted From NASDAQ -------------------------------- Trism, Inc. announces that the company's common stock will no longer be listed on the NASDAQ Stock Market. This decision by NASDAQ is a result of the company not being in compliance with certain listing requirements, as defined by NASDAQ, including the market value of the public float of the company's outstanding common stock and the net tangible assets/market capitalization requirement. Accordingly, the company's common stock has been delisted from the NASDAQ Stock Market. The securities of the company will be eligible for trade on the OTC Bulletin Board. VIDIKRON: Considers Liquidation ------------------------------- Earlier this week Vidikron Technologies Group Inc., which makes high-end theater products, said it may file for chapter 11 protection; yesterday the company announced that it may file chapter 7 instead to liquidate, according to Reuters. Chairman and CEO Phillip Siegel said that the Jersey City, N.J., company may be able to avoid chapter 7, but "right now it looks doubtful." He has been trying to reach an agreement with investors and Vidikron's bank to release funds so that the company can meet payroll. Vidikron also announced that COO Emilio Baj Marcario and Marketing and Sales President Giovanni Cozzi have resigned. WESTERN FIDELITY: Court Grants Trustee's Motion For Auctioneer -------------------------------------------------------------- The US Bankruptcy Court for the District of Colorado entered an order on July 26, 1999, approving the Interim Trustee's Motion for an order employing Dickensheet & Associates, Inc., auctioneer. WESTMORELAND COAL: Sells Bullitt Preparation Plant -------------------------------------------------- Westmoreland Coal Company sold its Bullitt Preparation Plant and Transloader Complex to Mountain, LLC for approximately $650,000 in cash and the assumption of approximately $600,000 of associated reclamation liabilities. The complex, located in Appalachia, Wise County, Virginia, was constructed in 1972 to support operations of the company's Virginia Division. Westmoreland closed its Virginia Division mining operations in 1995. Mountain expects to dismantle or sell the preparation plant facilities and will lease the transloader facility to Airways Enterprises, LLC. All necessary third party consents were obtained prior to closing and all permits were assigned to Airways Enterprises as a condition to closing. Christopher K. Seglem, Westmoreland's Chairman, President, and CEO said, "This transaction marks the conclusion of Westmoreland's ownership of coal processing assets in Southwest Virginia. Our remaining presence will revolve around reclamation activities and the delivery of health and pension benefits to former employees in that region. The Bullitt Preparation Plant and Transloader Complex served us well throughout the useful life of the Virginia Division operations." Westmoreland Coal Company, headquartered in Colorado Springs, Colorado, is currently engaged in western coal mining through its 80% owned subsidiary Westmoreland Resources, Inc. and independent power production through its wholly-owned subsidiary Westmoreland Energy, Inc. The company also holds a 20% interest in Dominion Terminal Associates, a coal shipping and terminal facility in Newport News, Virginia. Z. FREDERICK: Last Day For Filing Proofs of Claim ------------------------------------------------- The US Bankruptcy Court for the southern District of New York entered an order directing that proofs of claim relating to Z. Frederick Enterprises Ltd. and Kenar Enterprises, Ltd., debtors, be filed with the Bankruptcy Court on or before 5:00 PM on August 27, 1999. Meetings, Conferences and Seminars ---------------------------------- August 4-7, 1999 AMERICAN BANRKUTPCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton, Amelia Island, Florida Contact: 1-703-739-0800 August 26-28, 1999 AMERICAN LAW INSTITUTE - AMERICAN BAR ASSOCIATION COMMITTEE ON CONTINUING PROFESSIONAL EDUCATION Real Estate Defaults, Workouts and Reorganizations San Francisco, California Contact: 1-800-CLE-NEWS August 29-September 1, 1999 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES 1999 Convention Grove Park Inn, Asheville, North Carolina Contact: 1-803-252-5646 or info@nabt.com September 13-15, 1999 STATES' ASSOCIATION OF BANKRUPTCY ATTORNEYS 8th Annual States' Taxation & Bankruptcy Conference Hotel Santa Fe, Santa Fe, New Mexico Contact: 1-505-827-0728 September 16-18, 1999 AMERICAN BANRKUTPCY INSTITUTE Southwest Bankruptcy Conference The Hotel Loretto, Santa Fe, New Mexico Contact: 1-703-739-0800 September 17, 1999 GEORGETOWN UNIVERSITY LAW CENTER & THE AMERICAN BANKRUPTCY INSTITUTE Bankruptcy '99: Views from the Bench Georgetown University Law Center, Washington, D.C. Contact: 1-202-662-9890 September 24-25, 1999 VIRGINIA CONTINUING LEGAL EDUCATION 14th Annual Mid-Atlantic Institute on Bankruptcy and Reorganization Practice Boar's Head Inn, Charlottesville, Virginia Contact: 1-800-979-8253 September 27-28, 1999 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. Conference on Corporate Reorganizations Regal Knickerbocker Hotel, Chicago, Illinois Contact: 1-903-592-5169 or ram@ballistic.com October 6-9, 1999 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 73rd Annual Meeting San Francisco Marriott, San Francisco, California Contact: 1-803-957-6225 October 22-26, 1999 TURNAROUND MANAGEMENT ASSOCIATION 1999 Annual Conference The Fairmont--Atop Nob Hill, San Francisco, CA Contact: 1-312-822-9700 or ljfialkoff@turnaround.org November 17-20, 1999 AMERICAN BAR ASSOCIATION'S LATIN AMERICAN LAW SUBCOMMITTEE & THE ASSOCIATION OF COMMERCIAL BANKS OF THE DOMINICAN REPUBLIC Educational Exchange Case De Campo Resort, LaRomana, Dominican Republic Contact: 1-703-739-0800 November 29-30, 1999 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. Distressed Investing '99 The Plaza Hotel, New York, New York Contact: 1-903-592-5169 or ram@ballistic.com December 2-4, 1999 AMERICAN BANRKUTPCY INSTITUTE Winter Leadership Conference La Quinta Resort & Club, La Quinta, California Contact: 1-703-739-0800 May 4-5, 2000 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. Bankruptcy Sales & Acquisitions The Renaissance Stanford Court Hotel San Francisco, California Contact: 1-903-592-5169 or ram@ballistic.com ********** 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 * * *