/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/000216.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, February 16, 2000, Vol. 4, No. 33 Headlines ACCESS BEYOND TECHNOLOGIES: Order Approves Compromise ANESTHESIA SOLUTIONS: Plan Confirmed AUTOBOND ACCEPTANCE: Moody's Downgrades Six Securities BRADLEES: Amended Filing of Awad Asset Management's Holdings BUSH LEASING INC: Meeting of Creditors CELLNET: Suspends Dividends On Preferred Securities CENTENNIAL CELLULAR: Seeks Consent To Name Change CHARTER HOSPITAL: Closings Signal Possible Bankruptcy CONTIFINANCIAL: Third Quarter Net Loss of $114.6 Million CONXUS COMMUNICATIONS: Trustee Taps FCC Special Counsel DECISIONONE: Names George De Sola CEO DECISIONONE: Terms of Prepackaged Restructuring Agreement FILENE'S BASEMENT: Definitive Purchase Agreement Reported to SEC FRUIT OF THE LOOM: Appoints Robert E. Nason to Board of Directors FRUIT OF THE LOOM: Seeks Extension to File Schedules/Statements FRUIT OF THE LOOM: To Wind Down Pro Player GENERAL RENTAL: Order Authorizes Retention of Context Capital GEOTELE: Last Date to File Proofs of Claim GLOBAL OCEAN CARRIERS LTD: Greek Shipping Firm Files Chapter 11 GRAND UNION: Struggles Since Emerging from Bankruptcy GULF STATES STEEL: Annual Meeting Set For March 8, 2000 HARVEY ELECTRONICS: Quits Merger Agreement HEALTH MANAGEMENT CONSULTANTS: File Chapter 11 HOME HEALTH: Order Extends Exclusivity HOME HEALTH: Order Extends Time To Assume/Reject Leases JUMBOSPORTS: Order To Show Cause KEY PLASTICS: Executes Second Amendment To Sr. Credit Facility LEAP WIRELESS: Moody's Assigns Caa2 To Sr Notes OMEGA HEALTHCARE: Announces Negotiations With Bank Group PETSEC ENERGY: Subsidiary Signs $30 Million Credit Facility PRIMARY HEALTH SYSTEMS: T0 Phase Out Mt. Sinai Medical Center PROXYMED: Announces 1999 Fourth Quarter and Year-End Results SHOE CORPORATION: J. Baker Signs Agreement STYLESITE MARKETING: Proposed Sale of Substantially All Assets TULTEX CORP: Committee To Hire KPMG, LLP as Accountants UNITED COMPANIES FINANCIAL: Equity Opposes Exclusivity Extension VLASIC FOODS: Moody's Lowers Ratings WASTEMASTERS INC: To Take Possession of Rye Creek Landfill ********* ACCESS BEYOND TECHNOLOGIES: Order Approves Compromise ----------------------------------------------------- The Trustee, in consultation with counsel for the Creditors' Committee and NationsCredit Commercial has evaluated the claims asserted by Hayes in the Georgia Litigation and concluded that it would be in the interest of the estates of Hayes and its affiliated debtors not to prosecute the claims asserted by Hayes against the Former Hayes Executive. Therefore, the Trustee seeks to dismiss the claims asserted by Hayes in exchange for the former executive agreeing to enforce any judgment granted only against the Insurance policy and not against any other property or assets of Hayes. The motion represents that the former Hayes Executives' claims for libel and certain related claims for punitive damages and attorneys' fees may be covered under a certain insurance policy issue by St. Paul Fire & Marine Insurance Col. for the benefit of Hayes. ANESTHESIA SOLUTIONS: Plan Confirmed ------------------------------------ By order dated January 27, 2000, the plan of reorganization of the debtor, Anesthesia Solutions, Inc. has been confirmed. The debtor is directed to transfer assets under the plan to NCFE, to preserve the debtor's business as a going concern for the benefit of NCFE and the debtor's creditors under the plan. All outstanding shares and any other equity interests in the debtor whether currently owned by Global Management Resources, Inc. or others are, deemed cancelled as of the Effective Date. Donald H. Ayers shall become the sole director of the debtor and shall serve as such until he resigns or is replaced by the shareholders. The Board of Directors is directed upon the Effective Date to issue 100 shares of the debtor's common stock to NCFE, which common stock shall be all of the issued and outstanding shares of the stock of the debtor. AUTOBOND ACCEPTANCE: Moody's Downgrades Six Securities ------------------------------------------------------ Moody's Investors Service has downgraded the ratings on six classes of securities issued from AutoBond securitizations. The complete rating actions are as follows: COMPLETE RATING ACTIONS Downgraded from B3 to Ca: AutoBond Class A Automobile Loan-Backed Certificates: 7.23% Class A Certificates, Series 1995-A AutoBond Class A Automobile Loan-Backed Notes: 7.78% Class A Notes, Series 1997-A Downgraded from Caa2 to Ca: AutoBond Class A Automobile Loan-Backed Certificates: 7.15% Class A Certificates, Series 1996-A 7.73% Class A Certificates, Series 1996-B 7.45% Class A Certificates, Series 1996-C 7.37% Class A Certificates, Series 1996-D RECENT SPIKE IN CHARGEOFFS PROMPTS DOWNGRADE The current rating actions were prompted by a significant spike in chargeoffs across the six AutoBond transactions during the November 1999 collection period. The spike in chargeoffs, which can largely be attributed to the successor servicer recognizing losses on highly delinquent loans, left each of the Class A securities undercollateralized by 20% to 50%. Although the 1995-A transaction reported an error in the November numbers and showed no undercollateralization for the December 1999 collection period, Moody's believes that there is a high risk of ultimate default on this and the other five Class A securities, and the default risk and expected loss severity is consistent with a Ca rating. Moody's has been notified that AutoBond Funding Corporation 1997- A filed a voluntary petition for a Chapter 11 case with the US Bankruptcy Court for the District of Nevada, Reno Division, on February 10, 2000. That fact is incidental to the current rating action. Moody's will continue to maintain ratings on all these securities for the benefit of investors, provided it continues to get adequate information. THE COMPANY AutoBond Acceptance Co., with headquarters in Austin, Texas, and its affiliated entities have been originating subprime automobile loans since 1994. BRADLEES: Amended Filing of Awad Asset Management's Holdings ------------------------------------------------------------ In an amended fling with the Securities & Exchange Commission, Bradlees Inc. reports that Awad Asset Management, Inc., as of December 31, 1999, beneficially owns 1,286,590 shares of its common stock, representing 13.16% of the outstanding common stock of the company. Awad has sole voting and dispositive power over the stock. BUSH LEASING INC: Meeting of Creditors -------------------------------------- A chapter 11 bankruptcy case concerning Bush Leasing Inc aka Bush Transportation Systems was filed on January 11, 2000. A meeting of creditors is set for March 15, 2000 at 10:00 AM at 40 West 4th Centre, Room 340, 40 West Fourth St., Dayton, Ohio. Attorney for the debtor is: Shawn M. Riley 2100 Bank One Center 600 Superior Avenue E Cleveland, Ohio CELLNET: Suspends Dividends On Preferred Securities --------------------------------------------------- CellNet Funding, LLC (Nasdaq:CNDSP), a wholly owned subsidiary of CellNet Data Systems, Inc. (Nasdaq:CNDS), has suspended the quarterly dividend on its 7% Exchangeable Preferred Securities Mandatorily Redeemable 2010. The distribution, if any, of the proceeds from the U.S. Treasury obligations presently held in escrow for the payment of cash dividends on these securities through June 1, 2001 is under review by the Company, and will be subject to a Plan of Reorganization of CellNet Funding and the final approval of the Bankruptcy Court. CellNet Funding, LLC and CellNet Data Systems, Inc. filed voluntary petitions for protection under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court in Delaware on February 4, 2000. CENTENNIAL CELLULAR: Seeks Consent To Name Change ------------------------------------------------- Centennial Cellular Corporation has obtained the written consent of certain of its stockholders of record as of February 4, 2000 to approve an amendment to its Amended and Restated Certificate of Incorporation to change the company name from "Centennial Cellular Corp." to "Centennial Communications Corp." The company's Board of Directors has also approved the amendment. The company indicates the new name is intended to better reflect the various communication services offered by it. The change of the corporate name will not in any way affect the validity or transferability of stockholders stock certificates or the company's capital structure. There will be no requirement that stockholders surrender or exchange stock certificates for new certificates. CHARTER HOSPITAL: Closings Signal Possible Bankruptcy ----------------------------------------------------- This month's fast-paced closing and consolidation of Charter Behavioral Health Systems (CBHS) facilities reflects an aggressive effort by the nation's largest psychiatric hospital chain to remain financially viable, according to Mental Health Weekly. Thirty-three hospitals have been closed or consolidated, and 4,800 jobs have been eliminated. Rumors of bankruptcy continue, given the company's financial position, and at least five lawsuits have been filed on behalf of laid-off workers seeking lost wages. CBHS is also awaiting the outcome of an ongoing federal probe into Medicaid and Medicare billing practices at its facilities. A spokesperson for the company said that the bankruptcy rumors are the result of the company's being open about the steps it planned to take to restructure itself. Although most of the 33 facilities have been closed, about 600 patients remain in some of the hospitals. Information on the closings is available at http://www.manisses.com.(ABI15-Feb-00) CONTIFINANCIAL: Third Quarter Net Loss of $114.6 Million -------------------------------------------------------- ContiFinancial Corporation (OTCBB: CFNI) (the "Company") today announced that it has incurred a net loss of $114.6 million or $2.46 per share for its third fiscal quarter ending December 31, 1999, as compared with a net loss of $58.8 million or $1.27 per share for the three months ended December 31, 1998. The loss is in part due to the following factors: - The fair value adjustment of interest-only and residual certificates, which accounted for $32.3 million of the net loss. The estimate of aggregate lifetime credit losses as a percentage of the original pool balances for the ContiMortgage/ContiWest portfolio was increased to 4.85% at December 31, 1999. - Other charges of $33.4 million which primarily relate to reserves taken against certain receivables from affiliates and others as well as severance and other staff retention costs. As a result of the loss, stockholders' equity has been reduced to a deficit balance of $477.8 million. The Company's bank credit facilities and its warehouse facilities expire on March 31, 2000. The Company believes it will have sufficient liquidity to meet its obligations until March 31, 2000. However, the Company does not currently have sufficient financial resources to repay borrowings under the bank facilities on such date, and no assurance can be given that the Company will be able to extend, renegotiate or refinance any of the facilities. The Company does not expect that the proceeds it would receive on consummation of any sale of its assets (as discussed below) would be sufficient to allow the Company to repay the bank facilities and the senior notes or to replace its existing warehouse facilities. Accordingly, the Company anticipates that it will be necessary to restructure its outstanding debt, including the bank facilities and the senior notes, by the commencement of reorganization proceedings under Chapter 11 of the Bankruptcy Code. During the fiscal quarter ended December 31, 1999, the Company and its advisors (Lehman Brothers and The Blackstone Group) identified and contacted potential parties to pursue one or more strategic alternatives. The Company has received indications of interest from several of such parties for the purchase of various groups of assets of the Company, and the interested parties have been conducting reviews of the Company and the Company's assets. No assurance can be given that the Company will be able to sell any or all of the Company's assets. The Company expects that any sale of assets to an interested party will be consummated under the supervision of a bankruptcy court. On January 3, 2000, the New York Stock Exchange ("NYSE") announced that trading in the stock of the Company was to be suspended on January 5, 2000. Following suspension the NYSE applied to the Securities and Exchange Commission to delist the Company. The NYSE's action was taken because ContiFinancial did not meet the NYSE's listing standards. See the Company's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on February 14, 2000 for more information. CONXUS COMMUNICATIONS: Trustee Taps FCC Special Counsel ------------------------------------------------------- Chapter 7 Trustee, James E. O'Neill III for the estate of the debtor, Conxus Communications, Inc. et al. seeks court authorization to employ the law firm of Lukas, Nace, Gutierrez & Sachs as FCC special counsel. The firm's normal hourly billing rates range from $290 per hour for partners to $90 per hour for law clerks. DECISIONONE: Names George De Sola CEO ------------------------------------- DecisionOne Holdings Corp. (OTC Bulletin Board: DOCI) announced the appointment of George De Sola as its new Chief Executive Officer, effective February 9, 2000. Prior to his appointment, Mr. De Sola was Group Executive at Inacom Corporation, and previously held senior level positions at MCI Communications, and AT&T, among others. The company also announced that, with the unanimous support of the relevant creditor groups, it today submitted its prepackaged plan of reorganization for confirmation by filing a Chapter 11 petition in the U.S. Bankruptcy Court in Wilmington, Del. The company said that, of the creditors who voted in its pre-petition solicitation of consents, 100% of eligible voters approved the plan of reorganization. Eligible voters were the company's bank lenders as well as holders of its 14% Senior Notes due 2006. "The submission of our prepackaged plan is a watershed event for the company, marking the final phase of DecisionOne's restructuring process," said Mr. De Sola. "Indeed, the results of our solicitation demonstrate the depth of support for our restructuring among the parties who will ultimately constitute our new owners." Mr. De Sola recently served for five years at Inacom Corporation, where he was responsible for that company's computer services business and telecommunications subsidiary. DECISIONONE: Terms of Prepackaged Restructuring Agreement --------------------------------------------------------- Under the terms of the prepackaged restructuring agreement, DecisionOne's bank lending group would exchange approximately $542 million in existing indebtedness for approximately 94.6% of the reorganized company's equity and $ 250 million in new senior secured bank debt. The holders of the company's 9-3/4% Senior Subordinated Notes due 2007 would exchange their Notes for approximately 5% of the reorganized company's equity and warrants to purchase up to an additional 10.8% of the reorganized company's equity at various exercise prices. The holders of the 11-1/2% Senior Discount Debentures due 2008 issued by DecisionOne Holdings Corp., and DecisionOne Holdings' other unsecured creditors would receive a total of approximately 0.4% of the reorganized company's equity. The holders of the common stock of DecisionOne Holdings Corp. would not receive any distribution under the terms of the agreement, and such stock would be cancelled. The agreement further provides that the holders of the company's 14% Senior Notes due 2006 would exchange their Notes for warrants to purchase up to 6.2% of the reorganized company's equity at various exercise prices. Employing more than 5,000 people, DecisionOne is the largest independent provider of multivendor computer maintenance and technology support services in North America. Headquartered near Philadelphia, PA, the Company provides services for a broad range of computing environments, from the data center to the desktop, through one of the industry's largest service infrastructures. DecisionOne has an impressive roster of customers, representing more than 50 percent of Fortune 1000 companies. For more information regarding DecisionOne, refer to the DecisionOne web site at http://www.decisionone.com. FILENE'S BASEMENT: Definitive Purchase Agreement Reported to SEC ---------------------------------------------------------------- Value City Department Stores, Inc. and Filene's Basement Corp. have announced that Base Acquisition Corp., a wholly-owned subsidiary of Value City, has signed a definitive purchase agreement to acquire substantially all of the assets and assume certain liabilities of Filene's Basement. The closing is anticipated to take place between the end of February and mid-March. In the interim, Base Acquisition will assume temporary management of Filene's Basement pursuant to a Management Agreement. Both agreements are subject to Bankruptcy Court approval. Filene's Basement has been operating its business as a debtor-in- possession subject to the jurisdiction of the United States Bankruptcy Court for the Eastern District of Massachusetts since filing for relief under Chapter 11 of the United States Bankruptcy Codes on August 23, 1999. The company, which will retain the valuable Filene's Basement name, currently operates 14 Filene's Basement and eight Aisle 3 stores. It plans to close all of the Aisle 3 stores and is considering re-opening its three Filene's Basement stores in Washington D.C. This would leave Filene's Basement with key stores in Washington, New York, Chicago and Massachusetts, including its flagship store located in downtown Boston. Value City Department Stores Inc. currently operates 105 full- line, off-price department stores offering men's, women's and children's apparel, shoes, housewares, domestics, toys, sporting goods, jewelry and health and beauty aids. The stores are located in the midwest, mid-Atlantic and southeast, with thirteen new stores scheduled to open in the St. Louis metropolitan area within the next 90 days. Additionally, Value City owns and operates the 58-store DSW Shoe Warehouse chain with locations, in major cities throughout the U.S., including stores in Framingham and Holyoke, Massachusetts. Since 1984, Value City has had a distribution center in Lynnfield, Massachusetts, which will assist in keeping the regional stores stocked with new merchandise on a regular basis. Based on the proposed purchase agreement, it is not expected there will be any proceeds remaining for stockholders. The total price to purchase all of the assets, and assume specified liabilities, was approximately $89 million, subject to adjustment. The agreement contemplates payment in full to secured creditors and post-petition unsecured claims. Any remaining proceeds will be applied against pre-petition unsecured claims. The agreement is subject to a number of conditions before closing and to approval of the Bankruptcy Court. FRUIT OF THE LOOM: Appoints Robert E. Nason to Board of Directors ----------------------------------------------------------------- Fruit of the Loom, Ltd. (NYSE: FTL), today announced the appointment of Robert E. Nason to its Board of Directors. The Company indicated that Mr. Nason will be appointed to the Audit Committee. Mr. Nason will be joining Fruit of the Loom following a 40-year career with Grant Thornton, one of the world's largest accounting and management consulting firms culminating with an eight-year term as Executive Partner and Chief Executive Officer from 1990 to 1998. "We are very excited that someone of Bob's caliber is joining the Board," said Sir Brian Wolfson, Chairman of the Board. "He brings a wealth of knowledge and leadership from his career in accounting and management consulting and the perspective of a Chief Executive of a successful company. His expertise will be invaluable to us as we seek to complete our restructuring and restore the financial and operational strength of Fruit of the Loom." As previously announced, Fruit of the Loom, Ltd. and certain of its U.S. subsidiaries have filed voluntary petitions with the U.S. Bankruptcy Court for the District of Delaware to reorganize under Chapter 11 of the U.S. Bankruptcy Code. Fruit of the Loom, Ltd. is one of the world's leading marketers and manufacturers of basic family apparel. The Company manufactures and markets men's and boys' underwear, women's and girls' underwear, printable activewear, outerwear, casualwear, sportswear and childrenswear. Fruit of the Loom employs approximately 37,000 people in over 60 locations worldwide. Brand names include FRUIT OF THE LOOM(R), BVD(R), GITANO(R), and SCREENSTARS(TM). Licensed brands include MUNSINGWEAR(R), and WILSON(R). Licensed apparel bearing the logos or insignia of the major sports leagues and their teams and certain popular players in the leagues, and the logos of most major colleges and universities, are marketed under the PRO PLAYER(R) and FANS GEAR(R) brands. FRUIT OF THE LOOM: Seeks Extension to File Schedules/Statements --------------------------------------------------------------- Fruit of the Loom, Inc., et al., seeks a court order providing an extension of thirty days, until March 31, 2000, for the debtors to file Schedules and Statements. Fruit of the Loom states that the preparation and finalization of its schedules and statements is extensive and will be voluminous. The debtors' business operates in several countries, and the debtors have recently changed general bankruptcy counsel in these cases from Katten Muchin & Zavis to Milbank, Tweed, Hadley & McCloy LLP. Fruit of the Loom claims that it has been busy handling a vast number of critical administrative and business decisions. Fruit of the Looom has several thousand creditors and parties in interest and 34 affiliated debtors. FRUIT OF THE LOOM: To Wind Down Pro Player ------------------------------------------ Fruit of the Loom, Ltd. (NYSE: FTL) announced that as part of its operational reorganization, Bankruptcy Court approval has been sought to proceed with an orderly wind-down of the Pro Player Sports & Licensing Division ("Pro Player"), which includes its wholly-owned subsidiaries, Salem Sportswear, Inc. and Pro Player, Inc. In its motion filed with the Bankruptcy Court, the Company indicated that it was not foreclosing the possibility of selling Pro Player as a going concern, if acceptable offers are received before the February 23rd, 2000 Bankruptcy Court hearing scheduled on the motion. Pro Player is a leading supplier of licensed apparel bearing the trademarks and logos of professional sports and collegiate teams. In 1999, Pro Player had revenues of about $160 million and approximately 500 employees. Pro Player holds licenses with the National Hockey League, the National Football League, the National Basketball Association, Major League Baseball and Wilson Sporting Goods Co. As previously announced, on December 29, 1999, Fruit of the Loom, Ltd. and certain of its U.S. subsidiaries filed voluntary petitions with the U.S. Bankruptcy Court for the District of Delaware to reorganize under Chapter 11 of the U.S. Bankruptcy Code. "It is our fiduciary obligation to maximize the value of the Company for its creditors," said Dennis Bookshester, Acting Chief Executive Officer of Fruit of the Loom. "Unfortunately, it is clear that the financial resources required to maintain this division could be better deployed in our core business of retail and activewear. Fruit of the Loom's other operations will not be affected by the wind-down of Pro Player." GENERAL RENTAL: Order Authorizes Retention of Context Capital ------------------------------------------------------------- By order Entered on February 8, 2000 by Judge Sue L. Robinson, US Bankruptcy Court for the District of Delaware, the debtor, General Rental, Inc. is authorized to retain Context Capital Group as its exclusive investment banker. GEOTELE: Last Date to File Proofs of Claim ------------------------------------------ On February 2, 2000, the US Bankruptcy Court for the Southern district of New York entered an order setting March 20, 2000 at 5:00 PM as the last date and time for filing proofs of claim against Geotele.Com, Inc. GLOBAL OCEAN CARRIERS LTD: Greek Shipping Firm Files Chapter 11 --------------------------------------------------------------- Global Ocean Carriers Ltd., Athens, and 14 affiliates filed for chapter 11 protection in the District of Delaware yesterday, according to a newswire report. Global listed assets of $92 million and liabilities of $178 million. Its Marine Services Corp. affiliate listed Norwest Bank Minnesota as the indenture trustee for an unsecured and unspecified claim of $126 million. Global specializes in owning and operating feeder container vessels and dry bulk carriers. Last month the company said it had a reorganization plan under which current shares would be extinguished and an issue of new shares would be acquired by Marmaron Co., an affiliate of the Tsakos shipping family that is said to have a controlling interest in Global. Global also said that holders of more than 67 percent of its 10.25 percent notes due 2007 had agreed to accept 50 cents cash for every dollar of principal amount of notes. (ABI 15-Feb-00) GRAND UNION: Struggles Since Emerging from Bankruptcy ----------------------------------------------------- Grand Union Co., Wayne, N.J., announced yesterday that it was ousting J. Wayne Harris as CEO, chairman of the board and a director effective immediately, and that Jack Partridge resigned as vice chairman, chief administrative officer and a director, according to Reuters. The company has named Gary Philbin, its president, as the new CEO. The company has not turned a yearly profit in the last decade and has seen its stock price fall from about $14 in September to $4.50 yesterday. Last week the company reported a larger-than-expected loss for the third quarter. Two years ago, nearly half of Grand Union's directors resigned in protest over a 1998 restructuring under bankruptcy. "There is a lot of shareholder dissatisfaction with the behavior of the stock price. I do think management coming out of chapter 11 has done a very good job initially of boosting cash flows...but this year it seems like they hit the wall with any further levels of improvement," said analyst Jeffrey Wiegan of Robotti & Co. (ABI 15-Feb-2000) GULF STATES STEEL: Annual Meeting Set For March 8, 2000 ------------------------------------------------------- Notice is being sent to stockholders of Gulf States Steel Inc. of Alabama, that the annual meeting of the company will be held on Wednesday, March 8, 2000, at the offices of Watermill Ventures, Ltd., 800 South Street, Suite 355, Waltham, MA at 4:30 p.m. for the following purposes: 1. To elect seven (7) members to the Board of Directors to hold office until the next annual meeting of stockholders and until their successors are duly elected and qualified. 2. To consider and act upon a proposal to ratify the appointment of Arthur Andersen LLP as the company's independent auditors for the fiscal year ending October 31, 2000. 3. To transact such other business as may be properly brought before the annual meeting. The Board of Directors has fixed the close of business on January 31, 2000, as the record date for the determination of stockholders entitled to notice of and to vote at the meeting. HARVEY ELECTRONICS: Quits Merger Agreement ------------------------------------------ Harvey Electronics, Inc. and CoolAudio.com, Inc. have mutually agreed to terminate their agreement in principle to merge. Franklin Karp, President of Harvey, stated that "The two companies were unable to conclude the negotiation of final terms of the proposed merger. Harvey is now reviewing our alternatives and developing a strategic plan for enhancing shareholder value." Harvey Electronics is a New York based retailer of high quality, exclusive home theater and audio products. The company currently operates six Harvey locations: two in Manhattan and four suburban locations in Paramus, New Jersey; Mt. Kisco, New York; Greenwich, Connecticut; and in Greenvale/Roslyn, on the north shore of Long Island. The new Bang & Olufsen branded store in the Union Square area of lower Manhattan is the company's seventh store. HEALTH MANAGEMENT CONSULTANTS: File Chapter 11 ---------------------------------------------- Health Management Consultants Inc., Miami, and 13 of its affiliates have filed for chapter 11 protection in the District of Delaware, according to a newswire report. In papers filed yesterday, President David Nesslein said the company had up to $1 million each in assets and liabilities, but the list of 20 largest unsecured creditors includes about $4 million in claims. The largest claim of $3.7 million is for a government contract held by Medicare Federal HIB of Columbia, S.C. Included in the filing are Mederi affiliates from 10 Florida counties, plus United Home Health Services Inc. and United Home Health Services of Cook Country and St. Louis. (ABI 15-Feb-00) HOME HEALTH: Order Extends Exclusivity -------------------------------------- By order dated February 8, 2000, the US Bankruptcy Court for the District of Delaware entered an order granting the debtors, Home Health Corporation of America, Inc., et al. a further extension of time during which they have the exclusive right to file a plan or plans of reorganization through March 31, 2000; and the debtors are granted an extension fo0 time to solicit acceptances of their plan or plans of reorganization through May 30, 2000. HOME HEALTH: Order Extends Time To Assume/Reject Leases ------------------------------------------------------- By order dated February 8, 2000, the US Bankruptcy Court for the District of Delaware entered an order granting the debtors, Home Health Corporation of America, Inc., et al. a further extension of time within which to assume or reject their unexpired leases of nonresidential real property. The time within which the debtors may assume or reject their unexpired leases is extended for an additional 90 days or until May 15, 2000. JUMBOSPORTS: Order To Show Cause -------------------------------- The court ordered the debtors to file a plan and disclosure statement by January 21, 2000. The debtor has failed to file such a disclosure statement and plan as of February 10, 2000. A hearing will be held on March 2, 2000 for the debtors to show cause why the court should not dismiss or convert the cases. KEY PLASTICS: Executes Second Amendment To Sr. Credit Facility -------------------------------------------------------------- On January 31, 2000, Key Plastics L.L.C. executed a second amendment to its Senior Credit Facility, which, among other things, extended to February 15, 2000 the terms of a previously reported modification to the Facility that had been agreed to by the company, the agent and lenders on December 15, 1999. In addition to the second amendment, the previously reported Maintenance/Support Agreement executed by certain shareholders of the company's majority member, Key Plastics Holdings, Inc., was also amended on January 31 to extend until March 1, 2000 the time period in which the shareholders have agreed to contribute $5 million to the company if it is unable to borrow under its Senior Credit Facility. A $4 million contribution by the shareholders to Key Plastics which, as previously reported, was required under the Maintenance/Support Agreement to be made on or before December 20, 1999, was made as required. LEAP WIRELESS: Moody's Assigns Caa2 To Sr Notes ----------------------------------------------- Moody's Investors Service assigned a Caa2 rating to Leap Wireless International, Inc. for its senior notes and senior discount notes both due 2010. Moody's also assigned a B3 senior implied rating and a Caa2 issuer rating. The outlook for all these ratings is stable. The ratings reflect the very early stage of development of Leap's operations in the US and Chile, an appealing but as yet unproven Cricket business strategy, and the very high leverage of the issuer in an increasingly competitive wireless industry. The rating on the notes reflects their structural subordination to a significant amount of secured debt being provided by Leap's vendors, as well as a smaller amount of license debt owed to the FCC. In the US, this vendor financing is secured by the stock and assets of all of Leap's US operating and license subsidiaries. Leap Wireless operates digital wireless communications networks in two countries, the US and Chile, with a minority interest in a Mexican PCS operator. In the US, the service is marketed under the Cricket brand name with a strategy of evolving mobile wireless communications into a mass consumer product. Cricket is a 100% prepaid offering, with a flat rate for unlimited local calls. In order to build a network that can support this type of all-you can eat plan, the Cricket offering does not permit roaming. Pro forma for pending acquisitions, Leap has wireless licenses covering approximately 30 million people in the US, and has been offering service in Chattanooga since March 1999 and launched in Nashville in February 2000. In Chile, Leap recently assumed full control of Smartcom, holder of a nationwide PCS license in that country. Here Leap recruited new management, upgraded the network and relaunched the service under a new brand name in November 1999. The Cricket business plan is quite unique, and the timing of its entry into the wireless market is propitious. The wireless industry penetration rate is expected to move from around 30% currently to over 60% in the medium term, and the vast majority of this subscriber growth will come from the demographic that Cricket is targeting: those new to wireless who don't want to pay much more for wireless than they are already paying for their landline service. In Chattanooga, there are already six wireless carriers. With slight variations, all these carriers are vying for a higher-end wireless customer willing to spend at least $40 per month, and hopefully more, for mobile wireless telephony. The Cricket model begins with a consumer price point well below the competitors (currently $30 per month) and seeks to maximize penetration while controlling costs rather than to maximize revenue per customer. In Chattanooga, Cricket has been quite successful, attracting 22,000 subscribers in its first 10 months of service for a penetration rate of 7% of the people in its service area, and these customers are using their Cricket phones for over 1,000 minutes per month on average. However, as Leap launches the Cricket brand across the rest of its markets, competing carriers are quite likely to defend their market shares more aggressively and target the same demographic to which Cricket is appealing. While the networks of these established wireless carriers were not designed to handle the volume traffic that Cricket's Chattanooga subscribers are generating, this can be solved with time and money. Further, recent announcements from the FCC regarding the promotion of a "calling party pays" option will give the established carriers a new tool to help them compete with Cricket to capture their share of the subscriber growth from those who are new to wireless. To exploit its current advantage of network design and product position, Leap aims to build network in 15 more markets by the end of 2000, offering service to approximately 7 million people. A second buildout phase for 2001-2002 will bring the number of markets to around 25 with a covered population of 19 million. This will require significant financing that is currently contemplated to come from Leap's vendors. Leap has also expressed interest in acquiring additional spectrum in the US, but has stated that further spectrum and market buildout will be financed with additional equity. In Chile, Leap's Smartcom operation does not utilize the Cricket business model employing instead a more traditional post-paid, nationwide coverage service offering. While Leap has taken steps to improve the management and network capabilities in Chile, this operation will likely require additional capital to grow and is already encumbered by over $200 million of debt obligations. While Moody's believes that Chile (Baa1 sovereign rating for foreign currency debt) is one of the most stable economic and political environments in Latin America, this emerging market risk is still evident. For this reason and due to its additional capital requirements, in Moody's opinion Leap's Chilean operations have a slightly negative effect on the Leap credit. In Mexico, Leap owns 29% of Pegaso a PCS operator with nationwide license coverage and service in four of Mexico's largest cities. Pro forma for an investment in Pegaso from Sprint PCS, Leap's ownership will reduce to 20%. The early success of the Pegaso and its local sponsorship as well as that from Sprint PCS, alleviate Moody's credit concerns regarding Leap's Mexican exposure. Going forward, as Leap is able to replicate its success in Chattanooga across its other markets and the Chilean operations become self-funding, Moody's will reassess these ratings. The key's to Leap's success are no different from other wireless carriers: subscriber growth and the efficient use of capital, among others. It remains to be seen how well the Cricket concept can promote these ends when deployed on a larger scale. Based in San Diego, California, Leap Wireless International is a wireless communications carrier with licenses covering 30 million people in the US, 15 million in Chile, and a minority interest in a Mexican carrier with licenses covering 100 million people in that country. OMEGA HEALTHCARE: Announces Negotiations With Bank Group -------------------------------------------------------- Omega Healthcare Investors, Inc. (NYSE:OHI) (the "Company" or "Omega") announced that it is in negotiations with its senior bank group, led by Fleet Bank, for a possible extension of its existing line of credit due to expire in September 2000. David A. Stover, Chief Financial Officer, commented: "We have initiated early efforts with Fleet to extend our line of credit in order to alleviate concerns about this and other liquidity issues for the Company. We have also engaged J.P. Morgan & Co. to provide financial advisory services, including specific assistance with respect to our existing fixed-rate debt, both notes and convertible subordinated debt, which is due through early 2001." Essel W. Bailey, Jr., Chief Executive Officer, stated: "J.P. Morgan has been involved in several of our term debt issues and adding their support in addressing those elements of our liquidity will be beneficial to us and to the market." Mr. Bailey also commented on the recent Chapter 11 filing by Integrated Health Services. "We are actively working to manage the financial difficulties our customers are suffering, and have ongoing negotiations with Integrated. Integrated owns eleven properties which are subject to mortgages involving an Omega investment of $55 million. The mortgaged properties have operating coverage exceeding 2.0 and the notes are current in all respects, including the payment of interest subsequent to the bankruptcy court filing. We are discussing the status of the one $10 million property leased to Integrated which provides Omega revenues of approximately $110,000 per month that is performing at less than 1.0 coverage; our objective is to come to an agreed rental rate which is supported by current and potential operations of that property." With respect to properties managed by an Integrated subsidiary for Lyric Healthcare LLC, an entity partially owned by Integrated, Mr. Bailey commented: "Lyric continues to perform in accordance with all its agreements. Neither Lyric nor any Integrated subsidiary which manages or has an interest in Lyric has filed for bankruptcy reorganization. Lyric properties are in two master leases and have coverages of 1.5. All Lyric rental payments, including those due subsequent to the Integrated filing, are current. Based on conversations with Lyric, we anticipate that it can and expects to continue to operate successfully, notwithstanding the filing of bankruptcy by Integrated." Mr. Bailey further stated: "We actively manage our portfolio, continuing to have conversations with our customers who have filed for reorganization as well as others who are confronting financial difficulty brought on by government policies on reimbursement and regulation. We also continue negotiations with potential replacement operators where that might be needed. We believe we have underwritten assets with care and prudence and are reasonably confident of the ultimate realizable value of our investments. There are $900 million in unencumbered assets and we believe we have the revenue and capital base and the industry expertise to sustain and stabilize our portfolio. While we have taken action to reduce costs, we will continue to restructure and manage our portfolio and rework our lending arrangements so as to preserve the Company's liquidity." Omega is a Real Estate Investment Trust investing in and providing financing to the long-term care industry. As of December 31, 1999, its portfolio includes 216 healthcare and assisted living facilities with more than 23,000 beds located in 28 states and operated by 24 independent healthcare operating companies. PETSEC ENERGY: Subsidiary Signs $30 Million Credit Facility ----------------------------------------------------------- Petsec Energy Ltd has announced that its wholly owned subsidiary, Petsec Energy Inc., has signed a new $30 million secured credit facility. The new facility is with Foothill Capital Corporation and provides for availability of up to $30 million under a borrowing base calculation. The proceeds of this new credit facility are being used to retire Petsec Energy Inc.'s existing secured debt with Chase Manhattan Bank, N.A., Bank of America, N.A. and Credit Lyonnais, and for general working capital purposes. The new credit facility prohibits Petsec Energy Inc. from paying interest on its $100,000,000 principal amount of 9 1/2% Senior Subordinated Notes due 2007. As previously announced, Petsec Energy Inc missed the $4.75 million interest payment due on such notes on December 15, 1999. Petsec Energy Inc had scheduled a meeting with members of a committee of holders of the notes on Tuesday, January 18, 2000. Petsec Energy Inc. is an independent oil and gas exploration and production company with operations in the offshore Gulf of Mexico and offices in Lafayette, Louisiana. Petsec Energy Ltd is headquartered in Sydney, Australia. PRIMARY HEALTH SYSTEMS: T0 Phase Out Mt. Sinai Medical Center ------------------------------------------------------------ Primary Health Systems, Inc. ("PHS"), responding to the financial pressures that continue to impact the health care industry locally and nationally, announced that it is obliged to phase out the operations of Mt. Sinai Medical Center--University Circle. As a result, the facility will cease accepting new admissions immediately and the emergency room department will shut down within 48 hours. The closing process will proceed in an orderly manner until all current patients either complete their treatments or have been transferred to other area medical facilities and/or physician practices as appropriate. PHS noted that the Mt. Sinai--University Circle closing will not affect operations at its four other area facilities, which remain open and are continuing to provide quality medical care to patients and the community. The remaining PHS medical facilities include Mt. Sinai Medical Center--East, in Richmond Heights; Mt. Sinai Integrated Medical Campus ("IMC"), in Beachwood; Deaconess Hospital; and St. Michael Hospital. Dennis I. Simon, managing principal of Crossroads LLC, which has been managing the PHS system since mid-1998, stated, "We sincerely regret the need for this action. Unfortunately, Mt. Sinai--University Circle has become another victim of the troubled economic conditions in the U.S. health care industry, which are largely due to rising costs and declining reimbursement levels. The hospital also was not able to reverse the exodus of physicians and their patients to competing medical facilities in the Greater Cleveland marketplace." Mr. Simon stated that teaching hospitals have been particularly vulnerable to industry-wide financial pressures, forcing many major U.S. teaching hospitals to eliminate faculty positions and curtail teaching programs in response to significant financial losses. Locally, it has been reported that the Cleveland Clinic recorded approximately $111 million in operating losses in 1999 and was obliged to implement expense reductions. At the same time University Hospital is reported to have had operating losses of some $20 million and reportedly has eliminated a number of staff positions. However, both of these health care systems are not-for-profit entities with sizeable investment portfolios. Because of terms and conditions related to PHS' 1996 purchase of Mt. Sinai--University Circle from the Mt. Sinai Health Care Foundation, the hospital has no such income-producing investments or endowment to offset operating losses. PHS management will work with area agencies, including the City of Cleveland, to provide job placement assistance for employees whose positions are eliminated as a result of the Mt. Sinai-- University Circle closing. Primary Health Systems, Inc. continues to operate under the protection of Chapter 11 of the U.S. Bankruptcy Code, as it has since March 1999. The implementation of the closing of Mt. Sinai- -University Circle is subject to approval by the U.S. Bankruptcy Court presiding over PHS' Chapter 11 case. PROXYMED: Announces 1999 Fourth Quarter and Year-End Results ------------------------------------------------------------ ProxyMed, Inc. (Nasdaq: PILL), a leading provider of ehealth physician solutions and business-to-business healthcare transaction services, today reported results for its fourth quarter and year ended December 31, 1999. ProxyMed also announced that on February 14, 2000, its Board of Directors approved a plan to sell the Company's non-core network integration and drug dispensing operations. These operations are being divested to allow management to focus on its core ehealth and business-to- business healthcare transaction services. Accordingly, financial results presented in this release reflect the Company's non-core businesses as discontinued operations and, as such, results for all periods presented have been restated. Revenues for the fourth quarter of 1999 increased 6% to $6,680,075 compared to revenues of $6,288,294 for the same period of 1998. For the current quarter, the Company's loss from continuing operations before interest, taxes, depreciation and amortization (EBITDA) was $3,375,858, or $0.19 per diluted share, compared to $1,201,175, or $0.07 per diluted share for the same period in 1998. The net loss and net loss per diluted share applicable to common shareholders from continuing operations, on a reported basis (including acquisition-related amortization charges of $2,709,695 and $2,506,936 in the 1999 and 1998 quarters, respectively, and preferred stock dividends of $22,192 in the 1999 quarter only), was $6,875,774 and $0.38, respectively, for the fourth quarter of 1999, versus $4,046,098 and $0.23, respectively, for the fourth quarter of 1998. For the twelve months ended December 31, 1999, revenues increased 30% to $29,023,065 versus $22,249,326 in 1998. The Company's 1999 EBITDA loss from continuing operations was $6,954,723, or $0.39 per diluted share, compared to $2,440,791, or $0.16 per diluted share in 1998. SHOE CORPORATION: J. Baker Signs Agreement ------------------------------------------ J. Baker, Inc. (NASDAQ:JBAK) announced that it has signed an agreement to acquire the ongoing assets of the Shoe Corporation of America, Inc. ("SCOA"). As part of this transaction, J. Baker will acquire the rights to operate approximately 205 licensed footwear departments in department and specialty stores nationwide. J. Baker management anticipates that this business will account for approximately $60.0 million in annualized revenue, and that the transaction will be accretive to earnings in the current fiscal year. Under the terms of the agreement, SCOA will assist J. Baker in operating the business for a transition period of up to six months following the closing, which is anticipated to occur in early March. Besides customary and usual closing conditions, the consummation of the transaction is contingent upon SCOA, which filed a voluntary bankruptcy petition in June 1999, obtaining the approval of the United States Bankruptcy Court for the Southern District of Ohio. The consummation of the transaction is also conditioned upon the parties obtaining certain approvals from key licensors. Alan I. Weinstein, President and Chief Executive Officer, commented, "The acquisition of SCOA's 205 licensed footwear departments affords J. Baker the opportunity to expand our leadership position in the fragmented licensed footwear market by adding several very desirable department and specialty stores. We believe we will improve the merchandise offerings and profitability of these operations by leveraging our infrastructure, human talent and considerable experience, developed over our 50 year history in the footwear business and through our operation of greater than 750 self-serve departments." Mr. Weinstein concluded, "Looking ahead, we believe that opportunities exist to further our leadership position in areas in which we have an established core competency, and we will continue to seek increased market share in the footwear, big and tall and health and workwear businesses." J. Baker, Inc. is a leading specialty retailer of apparel and footwear. Along with 859 self-service licensed footwear departments in discount department stores nationwide, the Company operates 445 Casual Male Big & Tall stores, 135 Repp Big & Tall stores and the Repp By Mail catalog, which specialize in casual and dress clothing and footwear for the big and tall man; and the Work 'n Gear chain, comprised of 65 utility workwear, healthcare apparel and custom uniform stores. STYLESITE MARKETING: Proposed Sale of Substantially All Assets -------------------------------------------------------------- A hearing shall be held on the motion of StyleSite Marketing, Inc., Lew Magram Ltd., Brownstone Holdings, Inc. and Ecology Kids, Inc. on February 29, 2000 at 10:00 AM before Judge Stuart M. Bernstein, Chief US Bankruptcy Judge of the US Bankruptcy Court for the Southern District of New York at One Bowling Green, courtroom 727, New York, New York approving the terms and conditions of a certain /asset Purchase Agreement. Higher and better offers will be considered in accordance with the terms and conditions of sale provided for under the procedures Order. TULTEX CORP: Committee To Hire KPMG, LLP as Accountants ------------------------------------------------------- By order of the US Bankruptcy Court for the Western District of Virginia, Lynchburg Division, the Unsecured Creditors Committee of Tultex Corporation is granted authority to hire Stephen B. Darr, CPA and the firm of KPMG, LLP as its accountants. UNITED COMPANIES FINANCIAL: Equity Opposes Exclusivity Extension ---------------------------------------------------------------- The Official Committee of Equity Security Holders opposes the motion of the debtors, United Companies Financial Corporation, et al., seeking an extension of exclusivity. The Equity Committee complains that the debtors have never consulted with them, as directed by the court, and that they no longer deserve an extension of exclusivity. The Committee points out that the debtors have had eleven months of exclusivity and the debtors have failed to have a single meeting with the Equity Committee to discuss the possible treatment of Equity Holders under any potential plan in these cases. The debtors have sold off a substantial portion of their business, and according to the Committee are now documenting a proposed auction of substantially all of the debtors' remaining assets. Because the debtors have failed to make any progress toward the negotiation of a consensual plan, and because they have failed to consult with the Equity Committee, the Equity Committee asks that the court terminate the debtors' exclusivity now. VLASIC FOODS: Moody's Lowers Ratings ------------------------------------ Moody's Investors Service lowered the ratings of Vlasic Foods International Inc.'s (Vlasic) $200 million senior subordinated notes, due 2009, to Caa1 with negative outlook from B2 with negative outlook, its $241 million senior secured revolving credit facility and $100 million term loan to B2 from Ba3, and placed the ratings on review for possible further downgrade. The senior unsecured rating is B3. The senior implied rating is B2. The rating action and review reflects continued weak earnings results. Although Vlasic has taken measures to offset the decrease in profits, including the sale of certain unprofitable operations, restructuring charges, and cost reductions, Moody's expects continuing diminished credit protection. The company announced on February 10, 2000 that in the second quarter ended January 31, 2000 it will record promotion related charges totaling approximately $14 million (for trade marketing spending and customer deductions related primarily to fiscal year ended July 1999 and earlier resulting from revised estimates derived from its new billing and trade marketing systems). The company's review of these new systems is not complete and Moody's is concerned that there may be future significant charges. The company also announced additional charges totaling about $11 million related to inventories and product manufacturing costs, lower growth than anticipated of its core Swanson and Vlasic lines that is expected to continue for the rest of the year, and the elimination of 45 positions of its headquarters staff (about 20 percent) to reduce costs and a related restructuring charge of about $1.5 million. In the aggregate, the company announced that the second quarter charges and lower growth is expected to result in a negative EBIT of approximately $14 million. Moody's recognizes that a significant portion of the charges are non-cash. Also, Vlasic has retained an interim Chief Financial Officer, Peter Menikoff, and plans to hire an investment bank to assist with the exploration of strategic opportunities, including potential divestitures, joint ventures, acquisitions, a merger, a recapitalization or other actions. The company has obtained a waiver of certain covenants of its senior credit facility until February 29, 2000 and is in discussion with its lenders to seek an extension of the waiver period. The company has informed Moody's that it currently has approximately $185 million outstanding under its $241 million revolving credit and about $16 million cash-on-hand. In the first quarter of fiscal 2000 ended October 31, 1999 Vlasic reported sales of $264 million, operating income of $18 million, and EBITDA of $27 million, compared with interest expense of $12 million. On February 1, 2000 the company announced that it had completed the sale of its fresh mushroom business for approximately $50 million in cash. $38 million in net proceeds was applied to pay down bank debt permanently. Moody's review will focus on the company's liquidity and projected earnings and cash flow, its ability to successfully address its billing and marketing system deficiencies and its inventory and cost controls, its ability to obtain credit agreement waivers and amendments, and its efforts to pursue strategic alternatives. Vlasic Foods International Inc., headquartered in Cherry Hill, New Jersey, sells primarily frozen and packaged food products under the Vlasic, Swanson, Hungry-Man, and Open Pit brand names in the US, and in the United Kingdom under the Freshbake and SonA brands. WASTEMASTERS INC: To Take Possession of Rye Creek Landfill ---------------------------------------------------------- WasteMasters, Inc. (OTC Bulletin Board: WAST) announced today that the bankruptcy court overseeing Continental Investment Corporation's (OTC Bulletin Board: CICG) bankruptcy approved Continental's plan of reorganization on February 10, 2000. Previously it was announced that WasteMasters, Inc. and Continental Investment Corporation had received approval from the bankruptcy court to rescind the original stock purchase agreement between the parties. Pursuant to the rescission, WasteMasters would pay Continental and Continental would return certain assets and shares. The initial funds WasteMasters, Inc. provided to Continental Investment Corporation was paramount to the approval of their plan of reorganization last Thursday. The Rye Creek landfill generates approximately $600,000 in revenue and nets 7% in after tax net income. Sales efforts at the landfill have been kept at a minimum for several years because Continental did not believe it possessed the expertise to operate landfills effectively. WasteMasters, Inc.'s personnel will implement a more aggressive marketing plan designed to increase revenue and net income results. Douglas Holsted, President of the Company, stated: "I congratulate Continental on getting out of bankruptcy. The battles they have had to fight in the past year and a half were difficult and their board should be commended for sticking it out and causing it to happen. As far as we are concerned, Rye Creek is a good asset. I'm looking forward to developing that region of the country." The plan also established a new workable relationship with WasteMasters' provider of bonds -- Frontier Insurance. Frontier had initially opposed Continental's plan because of several contractual defaults between the companies. Frontier agreed to the plan after settling many of these issues with WasteMasters. "Rye Creek is a vital landfill for WasteMasters in that the operation generates revenues and net income. This is not a development or contingent on permitting -- it is a currently operating landfill," said Leon Blaser, the Chairman of WasteMasters. "This is a small but significant step for re- building WasteMasters' operations." For further information contact Douglas Holsted, President of WasteMasters, Inc. at (405) 262-0800. ********* 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., Trenton, NJ, and Beard Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler, Edem Alfeche and Ronald Ladia, Editors. Copyright 2000. 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 * * *