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/raid1/www/Hosts/bankrupt/TCR_Public/990910.MBX T R O U B L E D C O M P A N Y R E P O R T E R Friday, September 10, 1999, Vol. 3, No. 175 Headlines ACME METALS: Further Extension To Assume/Reject Leases ALTECH: Spanish Company Buys Factory BELOIT CORP: To Eliminate 350 Jobs BOSTON CHICKEN: Announces Resignation of Lawrence White; CFO BROTHERS GOURMET: Seeks To Extend Exclusive Period CASCO: Court Awards Ongoing Operation To Investment Group CLARIDGE HOTEL & CASINO: Reports Continuing Losses COMMERCIAL FINANCIAL: Order Authorizes Appointment of Caruso CONSUMER PORTFOLIO SERVICES: Experiencing Net Losses In 1999 CPX CORP: Loss At Fiscal Year-End Two And One-Half Times Income DIAMOND ENTERTAINMENT: Annual Sales Off Nearly 50% Over Year Ago DIAMOND ENTERTAINMENT: Losses Surpass Income In Recent Quarter FILENE'S BASEMENT: Creditors Group Set FORSTMANN: Filing Alleges $1.8M Employee Theft GENESIS HEALTH VENTURES: Revenues Up/Closures Costly GENEVA STEEL: Applies to Employ Special Counsel HECHINGER: Announces Liquidation HVIDE MARINE: Announces Voluntary Chapter 11 Filing LIVENT: Bondholders Sue Managers and Auditors LOEWEN: Consolidated Balance Sheet for Month Ended July 31, 1999 LOEWEN: Seeks Approval of Employee Severance Plan LOEWEN: Seeks To Revise Chairman's Compensation Arrangements LOEWEN: Seeks To Revise CEO's Compensation Arrangements LOGAN GENERAL: Hopes To Affiliate With Genesis Health Systems MAIN STREET AC: End of Bankruptcy in Sight NATIONSWAY TRANSPORT: Court Authority to Auction Terminals NEWPORT BEACH: Film Festival to Liquidate PACIFIC INTERNATIONAL: Files For Chapter 11 Protection PARAGON TRADE: Hearing on Equity's Patent Counsel PLANET HOLLYWOOD: Noteholders To Receive $47.5 Million PLUMA INC: Going Out of Business RECYCLING INDUSTRIES: Draws Two Potential Bids SERVICE MERCHANDISE: Consolidated Balance Sheet STUART ENTERTAINMENT: Seeks Approval of Headquarters Lease SUNDANCE INDUSTRIES: California Gun Maker Files for Bankruptcy TRANS ENERGY: Result Of Sale Of Assets=Greater Net Losses UNIVERSAL SEISMIC: Files Voluntary Chapter 11 WILSHIRE FINANCIAL: Fires Two Top Execs In Reorganization Bid WORLDCORP: Seeks To Extend Exclusive Periods WSR CORP: Order Authorizes Investment Bankers ********** ACME METALS: Further Extension To Assume/Reject Leases ------------------------------------------------------ By order of the US Bankruptcy Court for the District of Delaware, the debtors, Acme Metals, Incorporated, were granted an extension of 120 days, to and including November 24, 1999, to assume or reject the Unexpired Leases. ALTECH: Spanish Company Buys Factory ------------------------------------- Tubacex, a Spanish stainless steel producer, announced today that it has bought a tube making factory from Altech Specialty Steel Corp., near Albany, N.Y., according to a newswire report. Tubacex said it would spend $15.5 million on the purchase and investments in the business during the next five years. Altech was in the process of filing chapter 11. (ABI 09-Sept-99) BELOIT CORP: To Eliminate 350 Jobs ---------------------------------- Citing a soft Asian market and light demand, Beloit Corp., Beloit, Wis., announced it will cut 350 factory jobs in Beloit and Rockton, Ill, by Jan. 31, according to a newswire report. The manufacturer of papermaking equipment currently employs 1,100 people and has laid off 500 to 600 workers in recent years. Beloit's parent company, Harnischfeger Industries, filed chapter 11 earlier this year. The local union hopes that Beloit Corp. will be bought out. (ABI 09-Sept-99) BOSTON CHICKEN: Announces Resignation of Lawrence White; CFO ------------------------------------------------------------ Boston Chicken, Inc. (OTC Bulletin Board: BOSTQ) today announced the resignation of Lawrence E. White, Executive Vice President and Chief Financial Officer of Boston Chicken, Inc. White has been named Senior Vice President-Finance and Chief Financial Officer of CBRL Group, Inc., operator of Cracker Barrel Old Country Stores, headquartered in Lebanon, Tennessee. Greg Uhing, Vice President, Treasurer/Controller, will succeed Mr. White as Senior Vice President and Chief Financial Officer of Boston Chicken, Inc. Boston Chicken filed its voluntary petition for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, District of Arizona on October 5, 1998. Boston Chicken, Inc. has publicly disclosed that holders of Boston Chicken, Inc.'s equity securities will retain no value under a reorganization plan. The value, if any, retained by the holders of Boston Chicken, Inc.'s debt securities under a plan of reorganization will be the result of negotiations among the Company and its creditors. BROTHERS GOURMET: Seeks To Extend Exclusive Period -------------------------------------------------- The debtors, Brothers Gourmet Coffees, Inc., et. al. seek to extend the exclusive period during which the debtors may solicit acceptances of their plan of reorganization. The debtors' current Solicitation Period expires on September 16, 1999. The debtors filed the plan and the proposed Disclosure statement less than five months after the Petition Date, have successfully formulated an d implemented bidding procedures for the sale of their business, have received and evaluated a number of bids, have conducted an auction for the sale of their business, have selected a successful bidder, have entered into an agreement to sell a substantial portion of their business to P&G, and have sought and obtained this Court's approval of such agreement. Due to their progress in the case, the debtors submit that ample cause exists to extend the Solicitation Period until November 18, 1999. CASCO: Court Awards Ongoing Operation To Investment Group --------------------------------------------------------- A bankruptcy court has awarded the ongoing El Paso, Texas, operation of Casco Molded Plastics Inc. to a seven-person investment group for $2.7 million. Jim Sybrant, an entrepreneur from Arkansas City, Ark., represented the group in the Aug. 31 court proceedings in Wichita, Kan. The deal is scheduled to close Sept. 3. The group plans to acquire the 27 injection molding machines, with clamping forces of 77-960 tons. It said it will continue to employ 115-135 at the 100,000-square-foot plant, which is leased from Insite Realty of Chicago. The plant primarily molds for consumer product markets. Capabilities include heat-transfer, hot-stamping and secondary assembly services. In November, financial losses and loan problems forced Casco to seek protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. The company had employed about 480 and reported 1997 sales of $45.5 million. Earlier, the bankruptcy court disposed of two other Casco sites, neither as an ongoing business. On April 15, the court awarded the New Braunfels, Texas, plant and equipment to Palo Alto Products International (Pte.) Ltd. of Palo Alto, Calif., for $2.8 million. Subsequently, Palo Alto disposed of the equipment. Casco's Wichita assets were divided in May 25 court awards. The plant and land went to Shannon II LLC of Wichita for $1.4 million, and the equipment to auction house Hackman Capital Partners LLC of Los Angeles for $1 million. CLARIDGE HOTEL & CASINO: Reports Continuing Losses -------------------------------------------------- Claridge Hotel & Casino Corporation filed for reorganization under Chapter 11 of the United States Bankruptcy Code on August 16, 1999. The company indicates the results of operations for the three and six months ended June 30, 1999 and 1998 are not necessarily indicative of the operating results to be expected for the full year. Historically, the company says, the gaming industry in Atlantic City, New Jersey has been seasonal in nature with peak demand months occurring during the summer season. The corporation had a net loss of $269,000 for the three months ended June 30, 1999, compared to a net loss of $395,000 for the same period of 1998. These losses were against net revenues of $49,138,000 and $49,696,000 respectively. For the six months ended June 30, 1999, Claridge had a net loss of $1,517,000, compared to a net loss of $2,040,000 for the same period of 1998. Again, these losses were sustained against net revenues of $92,991,000 and $96,695,000 respectively. COMMERCIAL FINANCIAL: Order Authorizes Appointment of Caruso -------------------------------------------------------------- By order of the US Bankruptcy Court for the Northern District of Oklahoma, the debtors, Commercial Financial Services, Inc., and CF/SPC NGU, Inc. are authorized to appoint Fred C. Caruso as sole director of the company. CONSUMER PORTFOLIO SERVICES: Experiencing Net Losses In 1999 ------------------------------------------------------------ Consumer Portfolio Services, Inc. and its subsidiaries primarily engage in the business of purchasing, selling and servicing retail automobile installment sale contracts originated by automobile dealers located throughout the United States. In recent months, the company has suspended its solicitation of contract purchases in 20 states, and as of this date is active in 29 states. Through its purchase of contracts, the company provides indirect financing to dealer customers with limited credit histories, low incomes or past credit problems, who generally would not be expected to qualify for financing provided by banks or by automobile manufacturers' captive finance companies. During the three months ended June 30, 1999, revenues decreased $16.3 million, or 54.9%, to $13,406 million, compared to the three month period ended June 30, 1998 when revenues were $29,724 million. A net loss of $6.9 million was experienced in the 1999 three month period ended June 30, whereas in the same period of 1998 the company had a net income of $5.9 million. During the six months ended June 30, 1999, revenues decreased $20.3 million, or 37.2%, to $34,231, compared to revenues of $54,506 in the six month period ended June 30, 1998. Net loss for the six months of 1999 was $9.0 million, while in the six months ended June 30, 1998 the company had a net income of $11.5 million. On July 22, 1999, Bank of America commenced a lawsuit against the company in the Superior Court of California, Orange County, seeking repayment of approximately $3 million advanced to the company under an overdraft line of credit, plus interest, costs and attorneys' fees. The company and Bank of America have entered into a settlement agreement, in which the company shall repay all amounts owing, in specified installments through November 1999. CPX CORP: Loss At Fiscal Year-End Two And One-Half Times Income --------------------------------------------------------------- On October 28, 1998, CellPro, Incorporated filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Washington. On May 21, 1999 the Bankruptcy Court issued an order confirming CellPro's Second Amended Plan of reorganization dated May 10, 1999. The effective date of the plan was June 1, 1999. CellPro, Incorporated, a Delaware corporation, was a biotechnology company, which specialized in developing, manufacturing, and marketing proprietary continuous-flow, cell- selection systems for use in a variety of therapeutic, diagnostic, and research applications. The company's principalproduct, the CEPRATE (R)SC Stem Cell Concentration System, was primarily sold in the United States, Canada, and Europe. On June 1, 1999, the company changed its name to CPX Corporation as a result of the plan of reorganization under Chapter 11 of the United States Bankruptcy Code. Results of the company's annual revenue and net loss for the year ended March 31, 1999 was $10,287,440 and $26,601,181, respectively. DIAMOND ENTERTAINMENT: Annual Sales Off Nearly 50% Over Year Ago ---------------------------------------------------------------- Diamond Entertainment Corporation distributes and sells videocassette titles including certain public domain programs and certain licensed programs. Public domain programs are video titles that are not subject to copyright protection. Licensed programs are programs that have been licensed by the company from a third party for duplication and distribution, generally on a non-exclusive basis. The company markets its video programs to national and regional mass merchandisers, department stores, drug stores, supermarkets and other similar retail outlets. They generally sell the company's products to the public at retail prices ranging from $1.99 to $9.99 per videocassette. The company's video products are also offered by consignment arrangements through one large mail order catalog company and one retail chain. Diamond's program inventory consists of a total of nearly 674 titles appealing to all age groups. The programs include cartoons, horror films, science fiction, dramas, adventure stories, mysteries, musicals, comedies, fairy tale adaptations, educational programs, sports highlights, instructional and exercise programs. Public domain programs account for approximately 401 titles, and licensed programs account for approximately 273 titles of the company's program inventory. The company's net loss for the year ended March 31, 1999 was $1,602,652 as compared to a net loss of $1,505,442 for the same period last year. The company's sales for the years ended March 31, 1999 and 1998, were $4,549,525 and $8,724,149, respectively. Sales decreased by approximately $4,200,000 from the period year with decreased video and toy product sales of approximately $2,100,000 each. The company's sales for the quarter ended March 31, 1999 was approximately $900,000 as compared to the prior two quarters which averaged approximately $1,500,000 a quarter. Diamond has also been experiencing difficulties in paying its vendors on a timely basis. These factors create uncertainty whether the company can continue as a going concern. DIAMOND ENTERTAINMENT: Losses Surpass Income In Recent Quarter ----------- ------------------------------------------------- Having filed its fiscal year-end financial information with the Securities & Exchange Commission Diamond Entertainment Corporation additionally has reported on the quarter ended June 30, 1999. In that three month period the company's revenues were $699,085 with net losses of $766,033. The comparable period of 1998 found the company with revenues of $790,864 and net losses of $340,454. In June of 1999, the company received a loan in the amount of $90,000 from an officer of the company which is payable upon demand. In April and June of 1999, the company received $50,000 from an investor and $100,000 from an officer and issued additional convertible promissory notes totaling $150,000 due in one year with principal and interest paid bimonthly at an interest rate of 10%. The notes are convertible immediately into common stock at the rate of $.05 per common share. On June 2, 1999, Diamond was advised by one of the convertible debenture holders of a $100,000 note that the bimonthly principal payments were being waived and the paying of the bimonthly interest would continue. The company is currently delinquent on a significant amount of its accounts payable. FILENE'S BASEMENT: Creditors Group Set -------------------------------------- A nine-member unsecured creditors committee was appointed on Monday in the Filene's Basement bankruptcy case. The members are: JDA Software, Canadian retailer Holt Renfrew, Polo Ralph Lauren, Warnaco Group, Liz Claiborne, Jones Apparel Group, Pro Media Inc., Escada and The CIT Group. Financial sources noted that Sam Gerson, the retailer's chairman and chief executive officer, was meeting with factors last week, lining up their support. Many said credit terms were no more than 15 days out, meaning Filene's Basement would have to pay their vendor invoices within 15 days. At least one factor is giving the retailer a little more breathing room. John Daly, executive vice president and senior credit officer at The CIT Group, said, "We've approved some orders, and we're going out as far as 30 days." Gary Wassner, president of Hilldun Corp., another factor, said, "We haven't been asked yet by any of our clients to OK orders, but we probably would approve some if asked." He added, "At the moment, the marketplace is still cautious. No one is going to out on the limb." (WWD 01-Sept-99) FORSTMANN: Filing Alleges $1.8M Employee Theft ---------------------------------------------- Court papers have revealed an unusual detail in the history of Forstmann & Co. Inc., currently in Chapter 11 proceedings for the second time in recent years. In recently filed court papers, Forstmann said that after closing its Milledgeville, Ga., plant in February, it discovered that at least $ 1.8 million had been stolen from the company over the past 10 years and alleged it was done by a former supply room supervisor. The supervisor, Jane Veal, a 26-year veteran of Forstmann and its predecessor company, J.P. Stevens, was terminated along with other salaried employees at the time of the plant's closing. In the same court papers, Forstmann said Veal has since died, a victim of "apparent suicide." Rod Peckham, president of Forstmann, said, "It was a fraud that we uncovered in March, and which had been ongoing for a number of years." He declined further comment. Forstmann will receive $ 1.8 million in insurance proceeds from its carrier, Federal Insurance Co., if the bankruptcy court approves. Rod Peckham said that a new takeover deal would be completed within 60 days. He also disclosed that a number of those who have expressed interest in Forstmann are foreign companies. In the days after Forstmann's filings, two domestic suppliers came to light as potential buyers: Carleton Woolen Mills Inc. and The Worcester Co. Sources then said Carleton seemed the more likely. On Thursday, Worcester was placed into receivership by Rhode Island Superior Court, according to the company's court- appointed receiver. The receiver, Allan M. Shine, of Winograd, Shine and Zacks, said that the condition of receivership is similar to a Chapter 7 bankruptcy filing. Forstmann has also received bankruptcy court approval of its $ 50 million debtor-in-possession financing facility led by Bank of America. Forstmann still has not settled its dispute with the owners of Newco, George Bloom and Steve Sakin. As reported, Newco sought to purchase Forstmann subsidiary Forstmann Apparel, which produces private label apparel. Forstmann Apparel also manufactures suits for the Oleg Cassini label. Forstmann & Co. owns the Cassini license. Newco charged in court papers that Forstmann filed its Chapter 11 "to deprive Newco of the benefit of its bargain." "There was never a deal consummated with Newco," said Marianne Nestor, who oversees licensing matters for Cassini. "Mr. Cassini never agreed to assign or transfer the license. It never happened." (WWD 31-Aug-99) GENESIS HEALTH VENTURES: Revenues Up/Closures Costly ---------------------------------------------------- Genesis Health Ventures' total net revenues for the nine months ended June 30, 1999 were $1,408,911,000 compared to $999,390,000 for the nine months ended June 30, 1998, an increase of $409,521,000 or 41%. Net income was $1,828,000 in the '99 period compared to net income of $41,457,000 in the same period in 1998. For the three months ended June 30, 1999 revenues were 465,088,000 and net loss was $1,003,000. In the same three month period in 1998 revenues were $352,526,000 with a net income of $15,991,000. In March 1999, the company closed a leased eldercare center located in the state of Florida. In connection with the closure, the company recorded $9,701,000 of closure costs consisting of the present value of future lease payments through the end of the lease term, a residual lease obligation to be funded at the end of the lease term, severance costs and other related closure expenses. On August 2, 1999, the company reached an agreement in principle with The Cypress Group and Texas Pacific Group, its co-investor partners in Genesis ElderCare Corp., to simplify the joint- venture structure, accelerate the integration of Genesis and Multicare, and strengthen the financial position of both Genesis and Multicare. Under the agreement in principle, Cypress and TPG will invest $50,000,000 into Genesis in exchange for 12,500,000 newly issued common shares and 2,000,000 warrants to purchase common shares with a $5.00 exercise price. In addition, Cypress and TPG will terminate their right to put their 56% equity interest in Genesis ElderCare Corp. to Genesis in exchange for a newly issued convertible preferred stock in Genesis with a $420,000,000 principal amount, a 5% dividend rate (payable in kind for the first five years) and a conversion price of $8.75 per share. The conversion price represents a 153% premium to the 20 day average trading price of Genesis common stock at the signing of the agreement in principle. Following completion of this transaction, Genesis will consolidate the results of Multicare for financial reporting purposes. After making the $50,000,000 investment, Cypress and TPG will each own approximately 11% of Genesis. On a fully-diluted basis, assuming conversion of the convertible preferred stock, Cypress and TPG will each own approximately 29% of Genesis. The agreement in principle provides that Cypress and TPG will each have the right to vote a maximum of 17.5% of the voting rights of Genesis. Cypress and TPG will each designate one member to the Genesis Board of Directors, increasing the total membership to nine. The transaction is subject to, among other things, regulatory approval, definitive documentation and Genesis shareholder approval. GENEVA STEEL: Applies to Employ Special Counsel ----------------------------------------------- The debtor, Geneva Steel company, applies for an order approving the employment of Orrick, Herrington & Sutcliffe LLP as special counsel. The debtor desires to engage the firm to advise and represent the debtor in all matters relating to the debtor's qualified pension and welfare plans, and other ERISA-related employee benefits plans and programs. Subject to court approval the firm has agreed to work at the following hourly rates: Partners $300-400 Associates $150-290 Paralegals $140-170 HECHINGER: Announces Liquidation -------------------------------- Hechinger Company announced on September 9, 1999 that the Company has determined it will proceed with an orderly liquidation of its assets in an effort to maximize value for its creditors. In recent years, the Company's financial condition has suffered due to difficulties in absorbing its acquisitions as well as a continually increasing level of competition from companies with significantly greater financial resources. The store closings conducted earlier this year, in conjunction with the Chapter 11 filing in June, were intended to provide the Company with a profitable core on which to build a financially healthy operation. However, the reduction in sales both before and following the Chapter 11 filing were substantially greater than expected. Although the sales performance has improved dramatically since the filing, together with reduced inventory levels and significantly improved stock position, it has still not been increased to the point at which the resultant cash flow provides the Company sufficient time to reorganize its operations. "We sought Chapter 11 protection in order to evaluate the various alternatives for reorganizing the Company," said Richard J. Lynch, chief executive officer of Hechinger. "Unfortunately, it is clear that continued losses and stiff competition has made it highly unlikely that a traditional reorganization would be possible. Under Chapter 11, we have a fiduciary obligation to maximize the value of the Company for its creditors. Management, the Board of Directors and the Creditors Committee all agree that the best course of action is an orderly liquidation of the Company." Subject to Court approval, the Company plans to dispose of its inventory through going-out-of-business sales at its remaining 117 Hechinger, Home Quarters and Builders Square stores. The sales are scheduled to begin immediately and should be substantially completed by December 1999. In addition, the Company will seek a Court order to proceed with the sale of its real estate assets. The Company will seek to retain many of its associates who are necessary to accomplish the specific tasks required to achieve the orderly liquidation of the Company. The Company has already received Court approval for a severance benefit that would apply to these associates. HVIDE MARINE: Announces Voluntary Chapter 11 Filing --------------------------------------------------- Hvide Marine Incorporated (Nasdaq: HMAR) announced a voluntary Chapter 11 filing in the United States Bankruptcy Court in Delaware. The filing allows the Company to operate its businesses in the normal fashion under court protection, and with adequate funding, while it continues discussions with representatives of certain major creditors and others on a restructuring plan that would deleverage its balance sheet, restore liquidity, and enhance its competitive ability in the marketplace. To ensure liquidity throughout the period of reorganization, including payment of suppliers and trade creditors, the Company has secured a new $60 million, debtor-in possession (DIP) credit facility from its current bank syndicate, led by Citibank, N.A. and BankBoston. The Company anticipates that it will complete its restructuring and emerge from Chapter 11 in late 1999 or early 2000. As previously reported, the Company is in active discussions concerning a proposed restructuring plan under which its general and trade creditors would be paid in full; its existing credit facility would be refinanced; holders of its Senior Notes would exchange their Senior Notes for common equity of the Company; and holders of the Trust Convertible Preferred Securities and Common Stock would receive common equity and/or warrants to purchase common equity. Implementation of the plan is subject to numerous conditions, including the need to reach agreements with lenders and other third parties, and is expected to result in substantial dilution to the Company's current stockholders. "Today's filing helps remove the cloud of uncertainty that has hung over the Company for the last several months and gives us time to put our financial house in order," commented Jean Fitzgerald, Chairman, President and CEO. "While a number of issues remain to be worked out, the general outline is in place and has the support of our major creditors. The end result will be a significant deleveraging of our balance sheet, which should in turn strengthen our operating capabilities and enable us to be a financially sound and competitive enterprise going forward." As a leading worldwide operator of oilfield support vessels, the Company has suffered from the prolonged drought in offshore drilling activity and reported a loss for its fiscal second quarter of $23.7 million or $1.53 per diluted share. "While there are encouraging signs of a future upturn in the sector, the Company's growing liquidity problems made today's actions necessary," stated Mr. Fitzgerald. "The successful completion of a restructuring would position the Company to benefit significantly from any increase in drilling activity." With a fleet of 276 vessels, Hvide Marine is one of the world's leading providers of marine support and transportation services, primarily to the energy and chemical industries. The Company's three main businesses are offshore energy support services, offshore and harbor towing, and petrochemical transportation. LIVENT: Bondholders Sue Managers and Auditors --------------------------------------------- Two New York investment funds Wednesday added their names to the list of plaintiffs suing former officers and auditors of bankrupt entertainment company Livent Inc. Cerberus Capital Management LP and Tri-Links Investment Trust filed a purported class action suit in U.S. District Court in Manhattan, piling more trouble on the once high-flying producer of Broadway mega-hits "Ragtime," "Showboat" and "Fosse." The most recent suit, brought on behalf of bondholders of Livent 9-3/8 percent senior notes due 2004, comes on top of several related suits by shareholders, other bondholders and various defendants suing each other in the turbulent aftermath of Livent's bankruptcy filing in November 1998. Livent's assets were sold to SFX Entertainment Inc. last month for $96 million. The Cerberus and Tri-Links suit names Michael Ovitz, the entertainment executive who invested in Livent and brought to light what was later described by the U.S. Securities and Exchange Commission as "a pervasive eight-year fraudulent accounting scheme by the former senior management of Livent." The former senior management, including Canadian impresarios Garth Drabinsky and Myron Gottlieb who are targets of a 16-count criminal fraud indictment by the U.S. Attorney's office, were also named in the new bondholder suit. In addition, the filing names Roy Furman, co-founder of investment bank Furman Selz, who Ovitz brought in as chief executive of Livent, and Deloitte & Touche LLP, Livent's independent auditors both before and after it declared bankruptcy. The 92-page complaint charges the auditors with issuing unqualified opinions of Livent's financial statements that were materially false and misleading seeks unspecified compensatory damages, interest and attorney fees. (ABI 09-Sept-99) LOEWEN: Consolidated Balance Sheet for Month Ended July 31, 1999 ---------------------------------------------------------------- THE LOEWEN GROUP, INC. reports current assets as of July 31, 1999 of $4,432,433,000 and liabilities of $4,373,433,000. The company reports a net loss for the period of Net loss for the period (2,504,000) on revenue of 77,008,000. (LOEWEN BANKRUPTCY NEWS Issue 11; Bankruptcy Creditors' Service Inc.) LOEWEN: Seeks Approval of Employee Severance Plan ------------------------------------------------- To provide all employees with economic security in the event of their involuntary termination without cause, the Debtors propose to implement a Severance Plan providing cash payments: Employee Class Severance Benefit -------------- ----------------- Senior Management Two years' salary Vice President Level Executives One year's salary Directors and Controllers 6 months' salary Funeral Home Managers 3 months' salary Cemetery Managers 3 months' salary Other Employees Up to 4 weeks' salary For employees at the Vancouver Headquarters, the Debtors propose to pay severance benefits based on salary level and length of service. The Debtors do not provide any estimates of the aggregate cost in the event of a mass layoff or acquisition of the company by a third party. The Debtors indicate, however, that all severance benefits will be subject to certain Mitigation Provisions. (LOEWEN BANKRUPTCY NEWS Issue 11; Bankruptcy Creditors' Service Inc.) LOEWEN: Seeks To Revise Chairman's Compensation Arrangements ------------------------------------------------------------ The Debtors tell the Court that they, their professionals and the advisors to the Creditors' Committee are in the process of negotiating the final terms of revised compensation arrangements with the Chairman of the Board. Prior to the Petition Date, the Chairman received a $75,000 base salary for the 6-month period from January 1, 1999 through Jun 30, 1999. The scope of the Chairman's services has expanded greatly, the Debtors say, since the Petition Date because he has taken an active rile in the Debtors' business operations and is, in short, leading the Debtors through the chapter 11 process. Accordingly, the Debtors propose to revise their compensation arrangements to provide the Chairman with: (a) a $300,000 annual base salary, effective as of June 1, 1999; and (b) a Value Added Incentive payment based on a measure of the increased value to creditors and the time to confirmation of a plan or a sale of the Debtors' assets to a third party. The final details will be made available to the Court no less than 5 days prior to a September 21 hearing. (LOEWEN BANKRUPTCY NEWS Issue 11; Bankruptcy Creditors' Service Inc.) LOEWEN: Seeks To Revise CEO's Compensation Arrangements ------------------------------------------------------- Prior to the Petition Date, the CEO received a $425,000 annual base salary, stock options worth $1,079,000, and an annual performance target award equal to 50% of his salary. The total package was estimated to be worth roughly $1,700,000 annually. Since the Petition Date, the CEO's responsibilities have increased greatly. A revised compensation package, the Debtors believe, is necessary given his crucial role in the formulation of the Debtors' restructuring plan. The Debtors propose to provide the CEO with: (a) a $425,000 annual base salary; (b) participation in the new Retention Incentive Program; (c) participation in the new Performance Incentive Program; (d) payment of a yet-to-be-determined Value Added Incentive payment based on a measure of the increased value to creditors and the time to confirmation of a plan or a sale of the Debtors' assets to a third party. (LOEWEN BANKRUPTCY NEWS Issue 11; Bankruptcy Creditors' Service Inc.) LOGAN GENERAL: Hopes To Affiliate With Genesis Health Systems -------------------------------------------------------------- The Bond Buyer reports on September 9, 1999, that Logan General Hospital, which filed for Chapter 11 bankruptcy last year, is hoping an alliance with a health care organization will remedy its financial ailments. The Logan, W.Va., hospital's board voted late last month to affiliate with Genesis Health Systems, a move that is expected to provide the hospital with $18 million in loans that it first sought to borrow by itself. The funding, largely from the same banks initially approached by the hospital, was secured with a guarantee from Genesis, and was proposed to the bankruptcy court. Initial approval was granted by Judge Ronald Pearson, clearing the way for the hospital to amend its Chapter 11 reorganization plan to reflect the loans and present the new structure to its debtors. Final approval from Pearson is needed, in what is largely a logistical step if a "sufficient number'' of creditors agree to the plan. However, Pearson could grant approval even if the creditors do not, said Brad Sorrells, the hospital's bankruptcy attorney. The $18 million will be combined with around $12 million that the hospital's parent company, Logan Medical Foundation, will reap from the sale of a strip mall, Sorrells said. That real-estate investment was at the heart of a lawsuit filed against the hospital by the Bank of New York, trustee for Logan on some $30 million in tax-exempt bonds issued in 1995. BNY had sought a receivership, which prompted the hospital to file Chapter 11 and retain control of its own finances. The bank charged that the taxable investment violated the hospital's nonprofit status. As part of Genesis, Logan would be an equal partner with the three other West Virginia hospitals that make up the organization and would retain its own board of directors. The plan surfaced earlier but met opposition from the community and from medical staff. For the first six months of the bankruptcy, BNY had to earn court approval to use debt reserve funds to pay Logan bondholders. The hospital has since resumed bond payments on its own, said Ellen Cappellanti, attorney at Jackson and Kelly in Charleston, W. Va., representing BNY. Cappellanti said the bank now has the role of "active creditor in the bankruptcy.'' She said BNY and the hospital's other creditors will '"look at whether the new plan is viable.'' Both she and Sorrells said the $30 million would cover all unsecured debt held by the hospital, but that sum does not include its bond payments and some unrelated liens. MAIN STREET AC: End of Bankruptcy in Sight ------------------------------------------ The Business Journal reports on August 13, 1999 that the next few weeks may be crucial ones for Main Street AC. The San Jose company, which has been mired in Chapter 11 bankruptcy proceedings for the past year, could find out at an Aug. 16 hearing whether it can pursue plans CEO Chester Billingsley calls key to the reorganization's success. Mr. Billingsley is seeking permission to retire some $ 14 million in debt notes by issuing additional shares of Main Street stock. The stock is traded on the over the counter bulletin board and is priced at just pennies a share. Main Street issued the debt notes last year to acquire a number of oil, gas and automatic teller machine trusts. But the assistant U.S. bankruptcy trustee assigned to the case fears the investors from whom Main Street bought the trusts might not have been given important details of the transaction. The trustee, Robert Gebhard, also notes in court papers that Blake Wilson, who handled the sale of some of the trusts, has been accused by regulators in Missouri of running a telemarketing scheme to defraud those investors. The legal wranglings seem par for the course in a case that has grown to encompass eight thick volumes at U.S. Bankruptcy Court in San Jose. Main Street ran a chain of area health clubs until 1997, when it piled up $ 1.6 million in debt and back rent and was placed in receivership. Since then, Mr. Billingsley has sought to reinvent the company. He had hoped acquiring the oil, gas and ATM interests would make the company an attractive merger target after bankruptcy. However, Mr. Gebhard and attorneys from the U.S. Securities & Exchange Commission repeatedly have raised objections to the reorganization plan. Mr. Gebhard's filings have called the plan "speculative," noting that no solid valuation of the interests has been performed. Mr. Billingsley earlier this summer decided to sell the oil, gas and ATM assets, figuring that Mr. Gebhard couldn't quibble about the company's worth with cash in hand. But in a July 16 filing, Mr. Gebhard questioned whether the 720 investors who collectively owned the masts had ever approved their sale to Main Street. He attached a report from the Missouri Secretary of State's office that accused Mr. Wilson of attracting investors to the trusts via a telemarketing scheme. Judge Marilyn Morgan suspended indefinitely the motion to approve the sale of the off, gas and ATM assets. Given the uncertainty, it's unclear whether the court will allow Main Street to retire the debt notes. Main Street also faces a Sept 3 hearing on its disclosure statement, which explains to debtors and shareholders the company's reorganization plan. In late April, Judge Morgan denied approval of the disclosure statement, which already had been through three revisions to try to satisfy Mr. Gebhard and the SEC. Shortly afterward, she refused to let the company sell $ 500,000 of additional stock to its existing shareholders. The judge wrote in April that "the principle purpose of the plan of reorganization is avoidance of securities registration laws." She called the plan "not confirmable." Mr. Billingsley said the latest version builds in safeguards that would prevent Messrs. Wilson and Morris from selling for one year any Main Street stock they would receive in the reorganization. Mr. Billingsley said that once the disclosure statement is approved, a copy will be sent to each of the investors in the trusts. "If the disclosure statement is approved on Sept. 3 ... a vote [by creditors and shareholders] could be complete by Oct 6," he said. He's confident those creditors and shareholders would vote for the plan, after which the company would move to sell the assets and be discharged from bankruptcy. He said he has bids in hand for the ATM assets and Oklahoma wells and is in the process of seeking potential buyers for the California wells. NATIONSWAY TRANSPORT: Court Authority to Auction Terminals ---------------------------------------------------------- The bankrupt NationsWay Transport received court authorization to auction a number of its terminals in an effort to begin the repayment of debts to secured lender Foothill Capital Corp., a lawyer for NationsWay said. Through a federal bankruptcy court in Phoenix, the company founded by Colorado Rockies co-owner Jerry McMorris auctioned three facilities it owned and two it leased, said attorney Donald Gaffney, who represents NationsWay. In a telephone interview from Phoenix, Gaffney said the company was "very pleased" with the results of the auction. The company auctioned its Phoenix facility for $ 7.975 million, its Commerce City facility for $ 6.025 million and its Harrisburg, Pa., facility for $ 4.1 million, he said. It sold its leaseholds in San Diego and Las Vegas for a total of $ 335,000. "These numbers are significantly higher than the book value of the company," Gaffney said. "The more money there is, the more there is to distribute." The judge reserved Oct. 1 for the next date of real estate sales, but Gaffney could not say which properties would be put on the block at that time. Before it shut down in May and began liquidating its assets under Chapter 11 bankruptcy, NationsWay was the nation's largest privately held trucking company. Creditors have asked the court to convert the Chapter 11 reorganization into a Chapter 7, for a total liquidation. The company has not has not yet issued final paychecks for most of its 3,500 employees, but the remaining 75 NationsWay workers have been given weekly bonuses to continue working as the company clears the book of assets. The employees rank as unsecured creditors in bankruptcy court, which means other creditors, particularly Foothill, would get their money first. But attorneys suing McMorris and other corporate officers say that under Colorado law, the employees could be paid by officers of the company. NEWPORT BEACH: Film Festival to Liquidate ----------------------------------------- The Newport Beach International Film Festival, a four-year-old festival, has gone out of business; co-founder Jeffrey S. Conner filed a chapter 7 petition on Sept. 1 in Santa Ana, Calif., The Los Angeles Times reported yesterday. Conner listed $10,960 in assets and $191,900 in liabilities. Conner, a real estate developer and film buff, launched the festival in 1996, but it has struggled since its beginning with poor attendance. (ABI 09- Sept-99) PACIFIC INTERNATIONAL: Files For Chapter 11 Protection ------------------------------------------------------ Pacific International Enterprises Inc. (OTC BB:PCIE)("PCIE") Thursday announced that it has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. PCIE's filing was prompted primarily by litigation with PCIE's landlord regarding the amount of PCIE's obligations to its landlord, which threatened to disrupt the operations of PCIE's business. PCIE's Chapter 11 filing stays such litigation, and will provide to PCIE an opportunity to resolve its disputes with its landlord under the protection of the Bankruptcy Code. Binks A. Graval, PCIE's chief executive officer, stated, "PCIE will continue to operate during the reorganization process, and sales, service, and support of PCIE products will continue as usual. PCIE customers will not be affected by the reorganization process. The reorganization will strengthen PCIE's financial position by providing to PCIE an opportunity to resolve PCIE's disputes with its landlord and by allowing PCIE to restructure its financial affairs." Graval added that PCIE is confident that it will operate profitably during the reorganization proceedings, and that PCIE intends to propose as expeditiously as possible a Chapter 11 plan of reorganization. Graval stated that PCIE's lender has expressed support for PCIE's reorganization efforts, and that PCIE intends to work cooperatively with its creditors to attempt to achieve a consensual reorganization plan. PCIE is represented in its Chapter 11 proceedings by Jeffrey M. Reisner, Robert E. Opera and Tavi C. Flanagan of Lobel, Opera & Friedman LLP (www.lobelopera.com). Lobel, Opera & Friedman LLP is located in Irvine, Calif. and specializes in the representation of companies in Chapter 11. PCIE manufactures board sports, including in- house brands Twenty Four Seven Snowboards, Wake Tech Wakeboards, Rift Snowboards and Microski. PCIE has headquarters in Long Beach, and has a 300,000 unit, state-of-the-art manufacturing facility located in Goldendale, Wash. PARAGON TRADE: Hearing on Equity's Patent Counsel ------------------------------------------------- A hearing will be held on October 18, 1999 at 1:00 PM on the motion of the Equity Committee of Paragon Trade Brands Inc. to employ Knobbe, Martens, Olson & Bear LLP as special patent counsel. PLANET HOLLYWOOD: Noteholders To Receive $47.5 Million ------------------------------------------------------ Under its prepackaged Chapter 11 reorganization plan, Planet Hollywood International's note holders would receive $ 47.5 million in cash, $ 60 million in new, secured payment-in- kind notes, and 2.65 million shares of new common stock, according to a filing yesterday with the Securities and Exchange Commission. In addition, according to Federal Filings Business News, the company had pledged to work with the informal note holders' committee and use its best efforts to settle claims of unsecured creditors and, to the extent not settled, claimants would recover a dollar value on their claims not less than the value of the per dollar distributions allowed the note holders. PLUMA INC: Going Out of Business -------------------------------- Pluma Inc., a maker of fleece and other active-wear products that filed for bankruptcy protection earlier this year, is going out of business and laying off 1,000 workers at four plants in North Carolina and Virginia. "It's a very unfortunate thing, but given our debt load, we didn't have any other choice," president John Wigodsky said Wednesday. Employees will lose their jobs during the next three months, Wigodsky said. In Eden, two plants will close by the end of next week, putting 500 employees out of work. Officials with Eden-based Pluma, which filed for Chapter 11 reorganization in May, gave up on finding investors to help it pull out of nearly $120 million in debt. They attributed the company's failure to foreign competition and poor business decisions. Pluma, whose brands include Snowbank and Santee clothing, grew from a small firm of 80 employees in 1986 to a large, publicly- traded company of about 2,000 employees with eight different plants. But it had been struggling to stem losses since the fourth quarter of 1997. The company posted a loss of $36.1 million in 1998 on sales of $187.2 million. It listed $136.5 million in assets and $118.9 million in debts in its bankruptcy petition. As part of a restructuring plan to cut costs, the company closed plants in North Carolina, Virginia and California and cut its work force by more than 21 percent. RECYCLING INDUSTRIES: Draws Two Potential Bids ---------------------------------------------- Recycling Industries Inc. received "two potential global asset purchase offers," necessitating its retention of an investment banker and concomitant need for a further extension of its exclusive periods for filing a plan of reorganization and soliciting plan acceptances. Meanwhile, Recycling said in an Aug. 13 motion that it just recently received a term sheet from its official creditors' committee for a proposed consensual plan. The term sheet is predicated upon a five-year financial forecast which results in a proposed reorganization valuation of $160 million, according to the motion which seeks an extension of the exclusive plan filing and solicitation periods through Nov. 15 and Jan. 14, 2000, respectively. (The Daily Bankruptcy Review and ABI - September 9, 1999) SERVICE MERCHANDISE: Consolidated Balance Sheet ----------------------------------------------- For the month ending July 4, 1999, Service Merchandise Company, Inc. reports total current assets of $695,108,000, total current liabilities of $210,491,000. For the period May 31, 1999 through July 4, 1999 the company reports net sales of $172,082,000 and Net earnings of (27,037,000). For the month ending August 1, 1999, the debtor reports total current assets of 705,208,000 and total current liabilities of 252,558,000. For the period July 5, 1999 through August 1, 1999, the debtor reports net sales of 103,094,000 and net earnings of (9,049,000). STUART ENTERTAINMENT: Seeks Approval of Headquarters Lease ---------------------------------------------------------- The debtor, Stuart Entertainment Inc. seeks court approval of a lease transaction for commercial office space in Bloomington, Minnesota, which will serve as the debtor's new headquarters. Base rent is $226,225 per year through October 14, 2000 and $235,586 annually from October 15, 2000 through October 14, 2001, $244,647 annually from October 15, 2001 through October 14, 2002, and $253,708 annually form October 15, 2002 through October 14, 20003 and $262,769 for the remainder of the term. The debtor asserts that the relocation of the corporate headquarters, from Council Bluffs, Iowa and the proposed lease are critical to the debtor's ongoing business operations and reorganization efforts. Minneapolis is closer to an airport that will service the needs of the debtor, and it is a much larger city with a larger population for its labor base. SUNDANCE INDUSTRIES: California Gun Maker Files for Bankruptcy -------------------------------------------------------------- The owner of Sundance Industries, one of six Southern California firms that produce 80 percent of the "Saturday Night Special" guns in the United States has filed for bankruptcy, according to a newswire report. Steven Jennings filed chapter 7, citing a string of lawsuits filed by cities around the country seeking to place blame on gun makers for gun violence. (ABI 09-Sept-99) TRANS ENERGY: Result Of Sale Of Assets=Greater Net Losses --------------------------------------------------------- Trans Energy Inc. reports net loss for the second quarter and first half of 1999 was $2,922,855 and $4,694,696, respectively, compared to a net loss of $67,837 and $282,210 for the 1998 periods. This increase in the company's net loss is attributed primarily to the company's loss of $2,442,961 on the sale of assets in the second quarter and the increase in depreciation and amortization. The revenues for the second quarter and first half of 1999 were $295,067 and $561,927, respectively, compared to revenues of $266,768 and $473,006 for the 1998 periods. UNIVERSAL SEISMIC: Files Voluntary Chapter 11 --------------------------------------------- Universal Seismic Associates, Inc. and its wholly owned subsidiary, Universal Seismic Acquisition, Inc. announced today that the companies have filed voluntary petitions for reorganization under Chapter 11 of the Federal Bankruptcy Code in Federal District Court in Houston, Texas. Mr. Joe T. Rye, President of both companies, stated that the filings were to reorganize the companies under the provisions of Chapter 11. Mr. Rye further noted that economic conditions in the energy sector and related service providers have been down substantially over the past 12 to 18 months, and as a result both companies have been negatively impacted. During the past 18 months there has been substantially less seismic recording activity than the available operating capacity, which has not been sufficient to operate the businesses. Cost reductions and operating downsizing were put into place in September 1998. However, these efforts could not overcome the overriding economic downturn in the energy sector and lack of funds to operate the businesses. In addition, efforts made to sell assets or merge with a suitable party during this period were unsuccessful. "Reorganization plans are in process and will be forth coming in the near future," stated Mr. Rye. According to an article in The Houston Chronicle on September 9, 1999, the parent company listed assets of $ 11.6 million and liabilities of $ 20.9 million, while the subsidiary listed assets of $ 8.7 million and liabilities of $ 19.5 million. Its major creditor is Rimco, a financing company based in Avon, Conn. Last September, Universal Seismic downsized but could not overcome the overriding economic downturn in the energy sector. Efforts to sell assets or merge with another company at that time were unsuccessful. But the company was successful last April in selling the oil and gas assets of its exploration and production subsidiary, thereby retiring $ 9 million in debt. Universal provides three-dimensional seismic data acquisition and processing services for energy companies, primarily in the coastal areas of Texas and Louisiana, and to a smaller extent, in Oklahoma, Mississippi and Alabama. Lacking offshore capabilities, it works on land and in the marshes and shallow bays. The company was founded as Trapp Geophysical Consultants in 1985, changed its name to Universal Seismic Associates in 1991, and went public in 1992. The company ran into a series of problems about two years ago, said Chief Financial Officer Clifton Fridge. In July 1998, Rye wrote to shareholders describing an aborted merger, proxy fights, a shareholder lawsuit and an unsuccessful attempt to sell or merge the company. There had been accounting errors that caused the results for fiscal 1996 and 1997 to be restated, and its auditing firm resigned without warning. The company's stock was delisted on the Nasdaq when it failed to meet the tangible assets requirement. With that behind it, and with new management, "it looked like things were going to go pretty good for us -- then the market hit us," Fridge said. The company has had basically no work since March, he said. Before the company downsized 18 months ago, it employed 200 workers. Last September, after a further paring, the company had 50 or 60 workers. Today, it has 14 workers. As one of the smaller companies, it is at a disadvantage with the big seismic companies in bidding for contracts during difficult economic times. WILSHIRE FINANCIAL: Fires Two Top Execs In Reorganization Bid -------------------------------------------------------------- The whiz-kid founder of Wilshire Financial Services Group and his number two executive have been fired by the company's board in a disagreement over how to refloat the troubled loan company. Chief Executive Officer Andrew Wiederhorn, who made a multimillion-dollar fortune at Wilshire before he turned 30, and co-founding president Lawrence Mendelsohn had both been on suspension since Aug. 19. At issue was a business plan submitted by the two men that the company's board found unacceptable. There also were problems at Wilshire Financial's First Bank of Beverly Hills unit, which represents about two-thirds of the company's assets. The board hired Steven Glennon, a New York turnaround consultant, to replace Wiederhorn as chief executive. Faigin said the board had not yet decided whether to replace Mendelsohn. Wilshire Financial Services Group buys, sells and services loans including "subprime" mortgage loans to people with bad credit. The company's stock tanked last fall when unexpectedly high prepayment rates on mortgage loans combined with financial crises in Asia and Russia. In March, the company filed for Chapter 11 bankruptcy. The company emerged from bankruptcy reorganization in June under a plan that gave control of the board to creditors. A week before Wilshire came out of bankruptcy, the federal Office of Thrift Supervision designated Wilshire's thrift subsidiary, First Bank of Beverly Hills, a "troubled institution." Glennon should bring maturity and a better understanding of market risks to Wilshire, Faigin said. The board had intended to terminate Wiederhorn and Mendelsohn in August, but the executives fought back, obtaining a temporary restraining order that guaranteed them continued access to their offices to run a separate company, Wilshire Real Estate Investment Trust Inc. That order was struck down Sept. 3 by a Multnomah County judge who ordered them to move to a smaller office a block and a half away. That cleared the way for Tuesday's firings. Wiederhorn, 33, and Mendelsohn, 38, also resigned as directors of the company and its subsidiaries, Wilshire Financial said. Wiederhorn continues to control Wilshire Real Estate Investment Trust, which invests primarily in commercial and multifamily properties. Wiederhorn founded Wilshire in 1987 when he was 21, and built the company into a publicly traded firm with 800 employees and stock worth as much as $ 26 a share. The stock, which as severely diluted under the terms of the bankruptcy reorganization, began an equally rapid decline last year. Shares closed Tuesday at $ 1.2813, down 9.38 cents in trading on the Nasdaq exchange. WORLDCORP: Seeks To Extend Exclusive Periods -------------------------------------------- The debtors, WorldCorp, Inc. and WorldCorp Acquisition Corp., seek to extend their exclusive periods in which to file a Chapter 11 plan and to solicit acceptances thereof. The debtors seek an extension of 30 days from September 10, 1999 through and including October 10, 1999 of the period during which the debtors have the exclusive right to file a plan resolving this case, as well as a 30-day extension from November 12, 1999 through and including December 12, 1999 of the period during which the debtors will have the exclusive right to solicit acceptances of such a plan. The debtors claim that the requested extension is warranted to allow the debtors additional time to complete the negotiations, draft a revised plan and disclosure statement, obtain approval of the disclosure statement and solicit acceptances. WSR CORP: Order Authorizes Investment Bankers --------------------------------------------- The US Bankruptcy Court for the District of Delaware entered an order on August 26, 1999, authorizing the employment and retention of Conway, Del Genio, Gries & Co. LLC as their investment bankers nunc pro tunc as of July 20, 1999. The debtors and the Committee are authorized to jointly employ and retain the firm as their investment bankers. ********** 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, 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 * * *