TCR_Public/991201.MBX    T R O U B L E D   C O M P A N Y   R E P O R T E R
       
      Wednesday, December 1, 1999, Vol. 3, No. 232
                     
                     Headlines

ACCESS AIR: Grounds Planes and Files Chapter 11
BREED TECHNOLOGIES: Court Grants Extension To File Schedules
CONNECTIVITY TECHNOLOGIES: In Default Under Credit Facility
CROWN BOOKS: Hires Charles Cumello as President and CEO
DAUPHIN TECHNOLOGY: Revenues Off, Losses Rise Dramatically

DOW CORNING: Judge Confirms Joint Plan of Reorganization
EUROWEB INTERNATIONAL: Net Losses Almost Equal Net Revenues
FORMAN PETROLEUM: Revenues Up - Losses Down
GOLDEN BOOKS: Applies For Order Approving Bidding Procedures
HARBOR FINANCIAL: Seeks Extension To Assume/Reject Leases

INTELLIGENT MEDICAL: Intends To File Immediate Bankruptcy Action
LOUISE'S TRATTORIA: Disclosure Statement
PACIFICAMERICA MONEY CENTER: Files Chapter 11
PARAGON TRADE: Hearing To Consider Plan Confirmation
PHP HEALTHCARE: Committee Taps Greenberg Traurig

TRANS ENERGY: Revenues Decrease 34%
TREESOURCE: Reports 2nd Quarter Earnings - Reorganization Update
VINYL TECHNOLOGIES: Modified Reorganization Plan Confirmed  
WSR CORP: Seeks Approval of Assumption of Lease With Rollins
YALE CO-OP: Files Bankruptcy

                     *********

ACCESS AIR: Grounds Planes and Files Chapter 11
-----------------------------------------------
As expected, Des Moines-based AccessAir has grounded its fleet
temporarily and filed for chapter 11 protection, according to a
newswire report. President and COO Rich Musal said the company
"elected to interrupt service temporarily while we reorganize
route structures and sort out financial affairs." Planes were to
stop flying at midnight but should be back in the air within 30
days, he said. The airline's goal was to provide low-cost flights
in Des Moines, where fares are unusually high; it offered service
to Los Angeles and New York, with stops in the Quad Cities
along the Iowa-Illinois border and in Peoria, Ill. The airline
also added a stop in Colorado Springs, Colo. But customers did
not respond as expected. Access Air is considering flying to
Las Vegas, Orlando, Fla., and Phoenix, as well. (ABI 30-Nov-99)


BREED TECHNOLOGIES: Court Grants Extension To File Schedules
------------------------------------------------------------
The US Bankruptcy Court for the District of Delaware entered an
order granting the debtors BREED Technologies, Inc., et al. a
further extension of time for filing schedules and statements.

The debtors shall file consolidated schedules and statements on
or before December 6, 1999; and the debtors shall file separate
schedules and statements for each debtor on or before January 3,
2000.


CONNECTIVITY TECHNOLOGIES: In Default Under Credit Facility
-----------------------------------------------------------
The primary business of Connectivity Technologies Inc. is the
manufacture and sale of wire and cable products. The major
markets served by the company are industrial, commercial and
residential security, factory automation, traffic and transit
signal control and audio systems.

The company incurred a loss from continuing operations in 1998
and for the three and nine months ended September 30, 1999 and
has a working capital deficiency. Also, the company has
consummated a $16.5 million revolving credit agreement under
which, among other things, all amounts outstanding
become due on January 31, 2000. The company is in default under
its revolving credit facility and all amounts outstanding
thereunder are currently payable. Although the lenders are
currently forbearing from enforcement of their rights under the
credit agreement, the lenders have the right to proceed against
the company's assets at any time and no assurance can be given
that the lenders will continue to forbear. In addition, the rate
at which the company is required to reduce the principal
amount outstanding under the credit agreement is currently
scheduled to double to $200,000 per month on November 30, 1999.
Connectivity anticipates that this increase as required by the
credit agreement would result in insufficient cash flows to
continue its operations. These conditions raise substantial doubt
about the company's ability to continue as a going concern.

With the object of resolving these matters, Connectivity and its
Connectivity Products Incorporated subsidiary executed a non-
binding Letter of Intent with Rome Group, Inc. on November 15,
1999. The Letter of Intent provides for the acquisition of CPI by
Rome through a merger under the terms of which the company would
receive in exchange for all of its CPI stock, a subordinated
promissory note from Rome in the principal amount of $1.75
million and a cash payment of $250,000 from CPI. To the
extent CPI is unable to fund the cash payment, Rome would be
required to fund the balance of the cash payment. In such event,
Rome would be entitled to be reimbursed from one half of any tax
refunds received by CPI for the period prior to the merger. The
Letter of Intent also provides that simultaneously with the
merger, Rome would cause CPI's obligations to its lenders to be
satisfied with a $14 million cash payment and a $1 million note
provided by Rome under the terms acceptable to the lenders. The
proceeds realizable by the company under the Letter of Intent
would thus be substantially less than those anticipated in a
prior letter of intent with Rome that terminated without
consummation. The merger is subject to conditions, including
Rome's completion of its due diligence investigation to its
satisfaction; the negotiation and execution of a mutually
acceptable merger agreement; Rome's obtaining financing on terms
and conditions satisfactory to Rome; compliance with the
notification and waiting period requirements under the Hart-
Scott-Rodino Antitrust Improvement Act of 1976; and the consent
of CPI's lenders. The company also believes, but cannot assure,
that if the merger is consummated, CPI will continue as part of
Rome's group of companies with sufficient resources to meet its
obligations to its customers and suppliers.  However, no
assurances can be given that a merger will be concluded, that the
lenders will consent to the proposal embodied in the Letter of
Intent or any modifications thereto, that CPI's lenders will
agree to the waivers of CPI's non-compliance with the financial
covenants in its credit agreement or to any modifications of the
terms of that agreement as may be necessary to permit CPI to meet
its ongoing obligations. If the merger does not take place or if
the waivers of the minimum earnings covenants and a reduction
in the acceleration of the principal amount cannot be obtained
promptly from the lenders, CPI would lack sufficient funds to
continue its operations and the company would lose its entire
investment in CPI, its only substantial asset, unless the company
were successful in promptly implementing interim measures such as
selling its subsidiary or a part thereof to another buyer,
concluding another interim arrangement with its lenders or
locating another source of financing. Although other potential
buyers have expressed an interest in acquiring CPI, the company
sees no immediate prospect of promptly implementing any such
interim measures.


CROWN BOOKS: Hires Charles Cumello as President and CEO
-------------------------------------------------------
Crown Books Corporation announced today that the Company has
hired Charles R. Cumello as President and CEO, effective
immediately.  Mr. Cumello, former President and CEO of
Waldenbooks and a 30-year veteran of the retailing industry,
replaces Steve Panagos, who served as interim CEO through the
Company's recent emergence from bankruptcy protection.  Mr.
Panagos will continue to serve as a director of Crown Books.

"Charlie is the perfect choice to take Crown Books into the next
millenium," said Robert Miller, Chairman of Crown's Board of
Directors.  "His deep knowledge of the book business, his strong
industry relationships and his vast retailing experience will
help position the Company for renewed growth. Charlie has a
proven track record of success in the business.  The entire Crown
team looks forward to working with him to expand the Company's
traditional bookstore business and leverage Crown's strengths
into the e-commerce marketplace."

From 1980 through 1994, Mr. Cumello was a senior executive with
Waldenbooks, serving as President and CEO of the $1 billion,
1,110 store division of Kmart from 1991 through 1994.  Under Mr.
Cumello's leadership, Waldenbooks doubled profits over a four-
year period and created the company's superstore model.  He
served from 1995 to May 1998 as President and CEO of Factory Card
Outlet, a chain of superstores offering a wide assortment of
party supplies, greeting cards and special occasion merchandise.  
During his tenure, the company grew from 70 stores and annual
sales of $63 million to approximately 200 stores and annual sales
of  $200 million.  Prior to Waldenbooks, he spent ten years in
senior executive positions with the Melville Corporation's Chess
King, Miles Shoes and Thom McAn divisions.

"Crown Books is known in its markets as the place with the best
prices on books and periodicals," said Charles Cumello.  "I look
forward to further building the Crown brand and seizing
opportunities to take the Company's discount strategy to new
audiences both online and offline."

Crown is a discount retailer of general trade books, book-related
products and non-book products.  The Company has 92 stores
located in five major metropolitan areas: Washington, DC,
Chicago, San Francisco, Los Angeles and San Diego.  Crown is
known for its ability to sell books at the lowest price of any
traditional bookseller and at prices comparable to Internet
booksellers.  Crown has 1,700 employees and has annual sales of
approximately $190 million.


DAUPHIN TECHNOLOGY: Revenues Off, Losses Rise Dramatically
----------------------------------------------------------
Dauphin Technology, Inc. designs, manufactures and markets mobile
hand-held and pen-based computers, components and accessories.
Dauphin markets its products through a network of value added
resellers and software integrators to commercial and government
market segments.

The company has incurred a net operating loss in each year since
its founding and as of September 30, 1999 has an accumulated
deficit of $37,576,803.  Additionally, Dauphin expects to incur
operating losses over the near term.  The company's ability to
achieve profitability will depend on many factors including its
ability to manufacture and market commercially acceptable
products.  There is no assurance that the company will ever
achieve a profitable level of operations or if profitability is
achieved, that it can be sustained.

For the three months ended September 30, 1999, Dauphin reported
net losses totaling $3,584,478 on revenues of $157,680.  For the
same three month period of 1998 net losses were $1,523,649 on
revenues of $1,281,214.

For the first nine months of 1999 the company experienced net
losses of $8,056,371 on revenue of $2,185,623 while in the
corresponding nine months of 1998 the company's net losses were
$3,389,083 on revenues of $3,904,916.


DOW CORNING: Judge Confirms Joint Plan of Reorganization
--------------------------------------------------------------
November 30, 1999, Tuesday 12:05 PM Eastern Time

Dow Corning released the following statement in reaction to Judge
Spector's announcement that he has confirmed the company's Joint
Plan of Reorganization to resolve Dow Corning's Chapter 11 case.

"We are very pleased that the Court has confirmed the Joint Plan
of Reorganization.  The ruling is consistent with the vote on the
plan which more than 94% of the claimants voted to accept.  Since
we filed under Chapter 11 we have been seeking a fair resolution
of this case.  We believe this plan provides that resolution.  We
think the plan represents the best way to resolve this
controversy in a manner that is equitable to women with breast
implants, as well as other claimants, our employees, customers,
shareholders and the communities in which we live and work."

Dow Corning Corp., a global leader in silicon-based materials, is
a Michigan corporation with shares equally owned by The Dow
Chemical Co. (NYSE: DOW) and Corning, Inc. (NYSE: GLW).  More
than half of Dow Corning's sales are outside the United States.


EUROWEB INTERNATIONAL: Net Losses Almost Equal Net Revenues
-----------------------------------------------------------
Euroweb International Corporation reports net revenues of
$418,254 in the three months ended September 30, 1999.  In that
period the company had net losses of $325,463.  For comparison,
in the same three months of 1998 the company had net revenues of
$505,953 with net losses sustained of $319,130.

In the nine months ended September 30, 1999 Euroweb had net
revenues of $489,782 with net losses of $425,274.  In the first
nine months of 1998 the company had net revenues of $1,345,953
and net losses of $688,642.

The operations of Luko Czech-Net, s.r.o., a limited liability
company, was acquired by Euroweb as a wholly-owned subsidiary by
the purchase of 100% of its registered capital stock on June 11,
1999.  The operations of Luko Czech have been included in the
company's financial reports since June 1, 1999.

The operations of EUnet Slovakia, s.r.o. was acquired as a
wholly-owned subsidiary by Euroweb through the purchase of 100%
of its outstanding shares of capital stock on July 15, 1999.  The
operations of Eunet has also been included in the company's
financial reports since August 1, 1999.

The operations of DoDo s.r.o., a trade company, was acquired by
Euroweb as a 70% owned subsidiary by the purchase of 70% of the
equity of the company on August 9, 1999.  The operations of R-Net
have been included in Euroweb's financial reports since August 1,
1999.

The operations of Global Network Services, a.s., was also
acquired by Euroweb as a 70% owned subsidiary by the purchase of
70% of the outstanding shares of stock on September 23, 1999.  
The operations of SKNET has not been included in Euroweb's
reporting of its financial status.

All of the acquired companies are Internet service providers.

On November 1, 1999 the board of directors approved the
modification to Mr. Frank Cohen's employment contract dated
October 15, 1999.  Mr. Cohen is Chairman, Secretary and Chief
Executive Officer.  The modification cancels and deletes the
obligation of the company to pay the premiums on a split dollar
life insurance policy in the face amount of up to $2,000,000 on
the life of Mr. Cohen. In consideration of Mr. Cohen's agreement
to said cancellation, the company increased his basic salary
from $150,000 per year to $200,000 per year commencing January 1,
2000.

In October 1999, Euroweb entered signed letters of intent to
purchase the following interests in Internet Service Providers:

a)  All of the outstanding stock of Isternet Sr, s.r.o., located
in the Slovak Republic, for $190,000 in cash.

b)  All of the outstanding stock of Inicia s.r.o., located in the
Czech Republic, through its subsidiary Czech Net for $1,060,000
in cash.

As of November 15, 1999, all of the acquisitions described above
are subject to completion of satisfactory due diligence
procedures.  The company is currently seeking to acquire other
Internet service providers in central and eastern Europe.


FORMAN PETROLEUM: Revenues Up - Losses Down
------------------------------------------
Forman Petroleum Corporation, operating as debtor-in-possession,
had net revenues of $3,806,493 in the three month period ended
September 30, 1999 and $9,377,877 in the nine month period ended
that same date.  In the three month period the company reported
net losses of $1,324,286 and net losses of $10,148,803 in the
nine months of 1999.

For comparison:  In the three month quarter ended September 30,
1998 Forman's net revenues were $3,792,026 and $12,702,012 in the
first nine months of 1998.  Net losses were $3,219,383 and
$20,606,923 respectively.


GOLDEN BOOKS: Applies For Order Approving Bidding Procedures
------------------------------------------------------------
The debtors, Golden Books Family Entertainment, Inc., et al. are
seeking an order approving the sale of the membership interests
in certain music subsidiaries.

The Purchase Agreement contemplates a sale by McSpadden Smith
Music LLC(MSM) to Music Catalogue to Wits End Music, LLC,
Purchaser, and is by and among MSM, Golden Books Publishing
Company, Inc. and Purchaser.  The membership interest to be sold
pursuant to the purchase agreement consist of all of the
membership interests in the MSM Subsidiaries.  The total
consideration is $2.9M.

The purchase price of any initial bid by any third party must be
no less than $3.2 million to be payable in cash on the Closing
Date.  All bids must include additional consideration in cash of
at least $100,000 over the previous Overbid and meet the Minimum
Initial Overbid requirement.

Bids should be submitted and actually received by debtor's
counsel no later than December 13, 1999 at 12:00 noon.


HARBOR FINANCIAL: Seeks Extension To Assume/Reject Leases
---------------------------------------------------------
Harbor Financial Group, Inc. and its affiliates seek entry of an
order extending the period within which the debtors may assume or
reject unexpired leases of nonresidential real property.

The unexpired leases cover branch offices and regional or
district offices together with home offices, and storage space.  
The debtors have rejected 35 of an original 45 leases, but with
respect to the 10 remaining leases, they seek an extension of up
to and including February 14, 2000.  The debtors are not able to
make a determination at this time.


INTELLIGENT MEDICAL: Intends To File Immediate Bankruptcy Action
----------------------------------------------------------------
Intelligent Medical Imaging Inc. incurred a significant loss
during  fiscal 1998 and for the nine months ended September 30,
1999.  Due to these significant losses and the company's
inability to raise additional  capital on a timely basis, the
company intends on filing for immediate  protection under the
federal bankruptcy laws.

Intelligent Medical Imaging has said it intends on implementing
strategic steps to allow it to remain viable until sufficient
market penetration for the company's products is achieved.  This
plan includes: (i) personnel reductions, which reduces monthly
expenditures from  approximately $1,100,000 to $60,000; and (ii)
arranging for post-petition financing to cover day-to-day
operating expenses.  There can be no assurance though that such
funds can be obtained on favorable terms, if at all.

Intelligent Medical Imaging initiated actions to restructure its
operations and recorded restructuring and other charges totaling
$2,813,982 during the nine months ended September 30, 1999.  This
charge included $1,900,000 for excess inventory and $913,982 for
restructuring charges including $151,082 of severance and
$762,900 related to the impairment of fixed assets. Cash
expenditures associated with the restructuring and one-time
charges, are payable over the next six months and are estimated
to be $151,082.  In addition, the company issued stock  options
to employees at below market prices in an effort to retain
employees.  Compensation expense related to stock options issued
totaled  $3,296,715 of which $3,029,619 was included in operating
expenses for the nine month period ending September 30, 1999.

As of September 30, 1999 the company was delinquent in its
payroll obligations (including wages, severance pay and accrued
vacation pay) in the amount of approximately $865,000. The
company is also currently delinquent in the payment of its
accounts payable.

In September 1999, the company's bank account was garnished by a
judgment creditor.  All monies in the account are being held by
the bank pending receipt of an order from the State Court in
Florida.

In the third quarter several of the company's trade vendors,
certain employees, and the Florida tax commissioner initiated
legal actions against the company.  Several other trade vendors
have threatened legal action.

In November 1999, Ernst and Young LLP, the company's auditors,  
terminated their relationship with the company.

Product sales were $466,229 for the three months ended September
30, 1999 compared with $633,808 for the three months ended
September 30, 1998, a decrease of $167,579. The decrease resulted
from a reduction in sales for the quarter.  Losses for the 1999
quarter were $3,824,582 as compared to 1998 same quarter losses
of $3,801,954.

In the first nine months of 1999 the company had sales of
$2,030,018 while experiencing net losses of $10,783,580.  In the
first nine months of 1998 sales were $2,113,403 with net losses
of $11,054,806.


LOUISE'S TRATTORIA: Disclosure Statement
----------------------------------------
The hearing on the Disclosure Statement of Louise's Trattoria
Inc., is set for December 14, 1999 at 2:00 PM.  The plan is
primarily a liquidating plan.  In January 1998, the debtor
consummated a sale of its 15 southern California restaurants for
a purchase price of $4,050,000.

Summary of Treatment of Claims:

Class 1 - Priority claims -  Total Amount - $29,475 - Paid in
full on the Effective Date

Class 2 - Priority Claims - pursuant to section 507(a)(4) -
$104,076 - Paid in full on the Effective Date

Class 3a - General Unsecured Claims -  Total amount - $2,907,776
- Each holder will receive a pro rata distribution from the
Liquidation Fund - expected recovery is approximately 42.59% of
the amount of their class allowed claims.

Class 3b - General Unsecured Claims - $255,312 - Same treatment
as Class 3a - expected recovery 100%.

Class 3c - Unsecured Claims of BT Capital Partners, Inc. - $2.45M
- Pro rata distribution from the liquidation fund.

Class 3d - Unsecured Claim of Bank of America -$7.6M - Pro rata
distribution from the Liquidation fund.

Class 3e - General unsecured claims in the amount of $5,000 or
less

Class 4- Interest holders - No payment


PACIFICAMERICA MONEY CENTER: Files Chapter 11
---------------------------------------------
PacificAmerica Money Center Inc. filed chapter 11 on Nov. 26
after the California Department of Financial Institutions (DFI)
issued a "Notice of Taking Possession of Property and Business"
to its Pacific Thrift and Loan unit. In a form 8-K filed Nov. 24
with the Securities and Exchange Commission, the subprime lender
said the DFI's notice stated that the reason for its action was
Pacific Thrift's failure to cure its net worth deficiency by Nov.
17, as directed in a Sept. 15  order. (The Daily Bankruptcy
Review and ABI November 30, 1999)


PARAGON TRADE: Hearing To Consider Plan Confirmation
----------------------------------------------------
The US Bankruptcy Court for the Northern District of Georgia
entered an order dated November 18, 1999 approving the Disclosure
Statement for the second amended plan of reorganization with
respect to Paragon Trade Brands, Inc.

A hearing will be held before the Honorable Margaret H. Murphy,
1204 US Courthouse, Richard B. Russell Federal Building, 75
Spring Street, Atlanta, Georgia, January 13, 2000 at 10:00 AM to
confirm the plan.


PHP HEALTHCARE: Committee Taps Greenberg Traurig
------------------------------------------------
The Official Committee of Unsecured Creditors of PHP Healthcare
Corporation seek court authority to substitute Greenberg Traurig
for The Bayard Firm.   Scott D. Cousins, formerly with The Bayard
Firm is now associated with Greenberg Traurig.  Cousins is
familiar with this case, and it is important to the debtor to
maintain continuity of counsel.


TRANS ENERGY: Revenues Decrease 34%
-----------------------------------
Total revenues of Trans Energy Inc., for the three and nine
months ended September 30, 1999, decreased 34%, to $247,249 and
5%, to $809,176 respectively, when compared with the three and
nine months ended September 30, 1998 when revenues were $376,416
and $849,419, respectively.  The company has indicated this
decrease is primarily attributed to the sale of certain wells.

Trans Energy's net loss for the third quarter and first nine
months of 1999 was $638,210 and $4,827,768, respectively,
compared to a net loss of $1,607,454 and $3,277,284 for the 1998
periods.  The decrease in net loss for the third quarter is
attributed by the company to the reduction in operating expenses
and interest expense during the period.  This increase
in the company's net loss for the first nine months of 1999
compared to 1998 is attributed primarily to the company's loss of
$2,442,961 on the sale of assets and the increase in depreciation
and amortization.

For the remainder of fiscal year 1999, the company's management
expects selling, general and administrative expenses to remain at
approximately the same rate as for the first nine months of 1999.  
The cost of oil and gas produced is expected to fluctuate with
the amount produced and with prices of oil and gas, and
management anticipates that revenues are likely to increase
during the remainder of 1999.


TREESOURCE: Reports 2nd Quarter Earnings - Reorganization Update
----------------------------------------------------------------
TreeSource Industries, Inc., (OTC Bulletin Board: TRES) reported
a net loss of $725,000 or $0.06 per common share for the three
months ending October 31, 1999. This compares to a net loss of
$324,000 or $0.08 per common share for the same period last year.
The quarter's results include approximately $539,000 in net
charges to income related to the Company's current Chapter 11
reorganization. Income per common share for the quarter includes
a $0.05 benefit from the Company's decision to not declare a
preferred dividend during the period in an effort to conserve
cash. Net sales were $59.3 million for the quarter, up 16 percent
from the second quarter of fiscal 1999. Lumber sales volume was
up 3.9 percent and revenue per unit of lumber sold was up 11.4
percent.

Fiscal 2000 year to date net income for the six months ended
October 31, 1999 was $5,621,000 or $0.50 per common share as
compared to a net loss of $943,000 or $0.19 per common share for
the same period last year. Year to date results include
approximately $539,000 in net charges related to the Company's
current Chapter 11 reorganization. Income per common share year
to date includes a $0.10 benefit from the Company's decision to
not declare a preferred dividend in an effort to conserve cash.
Net sales were $126.6 million for the six months as compared to
$98.9 million for the same period last year. Lumber sales volume
was up 10% and revenue per unit of lumber sold was up 16.3%.
The average price of the industry benchmark green fir 2x4
standard and better lumber declined 17%, from $449 per unit, in
the first fiscal quarter, to $374 per unit in the second fiscal
quarter. The average price of the industry benchmark 2 fir saw
log increased slightly from $627 to $631 per unit during the
identical periods. The decline in lumber prices with no
corresponding decrease in log costs caused industry margins and
TreeSource profits to decline from the fiscal quarter ended July
31, 1999. The Company's efforts to increase asset utilization and
decrease costs by increasing the number of shifts operated at
selected facilities is proving successful with lumber shipments
up 11.4% from the same period last year.

TreeSource President, Jess Drake commented "We are pleased with
the progress and results the facilities continue to achieve. Our
plan of focusing on safety, increasing asset utilization through
increased hours of operation, and a profit focused log rocurement
strategy is paying dividends. Progress in these areas is
laying the foundation for a capital improvement program which
will modernize our facilities. We are also pleased with the
support from all of our log suppliers. They have continued to
provide logs and have enabled us to rebuild our inventories to
levels in excess of when we filed for reorganization."

In November, the Company auctioned the equipment at the Philomath
and Sedro-Woolley mill sites. Proceeds from the sale of assets
will be used to pay down the Company's secured debt. The Company
has three properties and three other facilities currently held
for sale of which one, Burke, is operating.

As announced earlier, the Company filed for reorganization under
Chapter 11 of the Bankruptcy Code on September 27, 1999. The
Company is currently operating as a debtor-in-possession and
expects to have a confirmed plan of reorganization by February. A
Disclosure Statement and Joint Plan of Reorganization has been
filed with the U.S. Bankruptcy Court in Seattle. The proposed
plan, if confirmed, would result in the cancellation of the
Company's current classes of common and preferred stock. Proceeds
from the sale of assets will be used to pay down the secured debt
and a significant portion of the debt would be converted
to equity.

Robert Lockwood, TreeSource CFO, stated, "The proposed plan of
reorganization is adverse to equity holders but the debt and
preferred dividend loads were forcing a liquidation of the
Company as competitors modernized. The Company's obligations were
well in excess of the Company's value. If the plan of
reorganization we have negotiated is confirmed, it will allow
TreeSource to modernize its mills and maintain a solid balance
sheet. The efforts the Company has made in securing interim
financing, paying log vendors and proposing a plan of
reorganization that could pay unsecured creditors up to 90
percent, underscore the Company's commitment to long-term
success."
  
TreeSource Industries, Inc. operates facilities in Oregon,
Washington, and Vermont, producing softwood and hardwood lumber
products.


VINYL TECHNOLOGIES: Modified Reorganization Plan Confirmed  
----------------------------------------------------------
BCD News and Comment reports on November 24, 1999 that
Judge James F. Queenan, Jr. (Bankr. D. Mass.) confirmed the
modified reorganization plan of Vinyl Technologies, Inc. on Oct.
18, approximately one year after Vytek's Oct. 28, 1998 Chapter 11
filing.

Under the plan, pre-existing equity contributed 100,000 in new
value in return for 100 percent of the reorganized company's
stock, while a new investor is to contribute a total of 200,000
within two years in return for options for 30 percent of the
company's equity.

Middlesex Savings Bank agreed to a restructuring of its pre-
bankruptcy debt and voted in favor of the plan. General unsecured
creditors, who also voted in favor of the plan, are to receive an
estimated 10 percent dividend over three years.

Based in Littleton, Mass., Vytek is a manufacturer and
international distributor of high-end equipment used in the sign-
making, woodworking and plastics industries.

Joseph H. Baldiga and Christine E. Devine of Mirick, O'Connell in
Worcester, Mass.. represented the debtor. Joseph Vrabel and Mark
Powers of Bowditch & Dewey in Worcester represented the bank.


WSR CORP: Seeks Approval of Assumption of Lease With Rollins
------------------------------------------------------------
The debtors, WSR Corporation and its associates seek an order
approving the assumption of a lease with Rollins Leasing Corp.  
The lease provides for Strauss to lease certain trucks and
tractors from Rollins pursuant to the terms of individual sub-
leases.  The leased equipment is used by Strauss to transport
products from its South River, New Jersey distribution center to
various store locations.  The Leased Equipment and accompanying
services are essential to the debtor's operations.


YALE CO-OP: Files Bankruptcy
----------------------------
Listing estimated debts of $1 million to 300 creditors, the Yale
Co-op, which has evolved over more than a century into a top-
notch university bookstore, has filed for bankruptcy protection.
The store cited competition from Barnes & Noble and the
university's decision two years ago to kick the co-op out of a
prime retail spot near campus. Attorney Dean W. Baker, who is
representing the store, said the non-profit co-op founded in 1885
does not plan to close its doors. He said, "The reason for the
filing is to preserve the Yale Co-op as a business and to
preserve jobs for 33 employees." Founded by Yale instructors and
students, the co-op is the second oldest university bookstore in
the country. Harvard Co-op is the oldest, and it faced similar
problems with competition from Barnes & Noble and ultimately
joined forces with the chain. (ABI 30-Nov-99)


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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
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