/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/001128.MBX T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, November 28, 2000, Vol. 4, No. 232 Headlines 2-INFINITY.COM: Needs $2.7MM Additional Funding to Stay Open AHT CORP: BioShield Deal Falls Apart; Cybear Next in Line AMERICAN ECO: Court Establishes December 28 Claims Bar Date ARKOOSH PRODUCE: Judge Pappas Rules Rents Pay Mortgage Holders ARMSTRONG WORLD: Moody's Junks All Debt Ratings C-PHONE: Video Communications Firm Considers Merger/Liquidation CARMIKE CINEMAS: Committee Suggests Serving Pleadings by E-Mail CAROLINA PREMIER: Asset Sale Deal in the Works CERPLEX GROUP: Seeks Exclusivity Extension through January 22 CFI MORTGAGE: Retains Responsive for Investor Relations Work CLARIDGE AT PARK PLACE: Lease Decision Period Runs to Dec. 31 CMR CONSTRUCTION: Creditors File Involuntary Petition CROWN CORK: Investors Re-evaluates Costly Asbestos Claims DIMAC HOLDINGS: Confirmation Hearing Scheduled for Dec. 19 DRKOOP.COM: Appoints John N. Caldwell As VP of Customer Operations DRYPERS CORP: Taps Wasserstein Perella as Financial Advisor DUKE & LONG: Files for Chapter 11 in Delaware ELDER-BEERMAN: Opens New Concept Store in Sheboygan, Wisconsin ELECTRO-CATHETER: Company Objects to UST's Motion to Convert ENTERTAINMENT INTERNET: Files for Chapter 11 Protection FACTORY CARD: Asks for Exclusivity Extension through March 30 FARMERS COOPRATIVE: Morrison & Hecker to Represent Committee GC COMPANIES: US Trustee Convening Creditors' Meeting on Dec. 18 GENESIS HEALTH: Bankruptcy Court Fixes Dec. 19 Claims Bar Date GEORGE WASHINGTON: S&P Assigns Bpi Rating Citing Weak Earnings GRAND UNION: Great Atlantic Alleges C&S Rigged the Auction GWI INC: Committee Selects Jones Day & Richards Layton as Counsel HANDY & HARMAN: Disclosure Statement Set for January 4 HARNISCHFEGER: Taking Bids for Corporate Headquarters JODA INC: Disclosure Statement Hearing Commences on Dec. 14 MASTER GRAPHICS: Files Joint Reorganization Plan with Premier MEDALLION FUNDING: Fitch Places Senior Secured Debt on Watch NATIONAL BENEVOLENT: Fitch Places Bonds on Rating Watch Negative PSINET, INC: Securities Fraud Complaints Continue to Roll In TAL WIRELESS: Plan Heads to Confirmation on December 21 SUMMERLIN RESORT: Case Summary and 25 Largest Unsecured Creditors WATERBURY, CT: Fitch Cuts General Obligation Bond Rating to BBB- ********* 2-INFINITY.COM: Needs $2.7MM Additional Funding to Stay Open ------------------------------------------------------------ After implementing a comprehensive restructuring plan this month, telecommunications specialist 2-Infinity.com Inc. needs $2.7 million to keep its doors open for the next six months, LocalBusiness.com reports. Cash on hand as of Sept. 30 was just over $400,000 according to its third quarter financial reports. Ahmed Alumran tells David Kirkpatrick of LocalBusiness.com that the company initiated talks with its bondholders and other markets to gather more funding. Mr. Alumran is 2-Infinity.com's chief information officer. 2-Infinity, which invested in oil and gas exploration projects, was formerly named as Lakota Industries. Due to minimal revenues and losses, the company added telecommunications as one of its services. AHT CORP: BioShield Deal Falls Apart; Cybear Next in Line --------------------------------------------------------- AHT Corporation (Nasdaq: AHTC) announced that the United States Bankruptcy Court for the Southern District of New York terminated the agreement between AHT and BioShield Technologies, Inc. (Nasdaq: BSTI) dated September 22, 2000 to purchase substantially all of the assets of AHT for approximately $15 million in cash and stock. BioShield advised AHT that it was unable to secure the funds necessary to consummate the asset purchase agreement. At AHT's most recent Bankruptcy Court hearing, BioShield failed to show evidence of its ability to provide additional interim financing to AHT. Accordingly, AHT's pending $70 million lawsuit against BioShield and certain of its officers and directors, which was to be settled as part of the purchase of assets, will continue in full force. This lawsuit was filed against Bioshield (on September 7, 2000) for, among other things, fraudulently inducing AHT to enter into a merger agreement announced on July 3, 2000 and then breaching that agreement. AHT has added additional counts to the original lawsuit against BioShield, with respect to BioShield's breach of the merger agreement. AHT believes that BioShield and the individual defendants have significant assets as well as liability insurance coverage that could be used to satisfy a judgment against them. AHT also announced that it has sold its operating assets to Cybear, Inc., (Nasdaq: CYBA) pursuant to section 363 of the United States Bankruptcy Code, in consideration of a credit bid of Cybear's $4 million claim and senior security interest in AHT's assets. AHT will use its remaining assets to pursue the BioShield litigation and to wind up the business affairs of the Company. AHT believes that it has sufficient financial resources to sustain the BioShield lawsuit through its completion. AMERICAN ECO: Court Establishes December 28 Claims Bar Date ----------------------------------------------------------- On November 1, 2000, the US Bankruptcy Court, District of Delaware entered an order establishing December 28, 2000 at 4:00 PM as the last date and time for the filing of proofs of claim against the debtors. Lowenstein Sandler PC and Pachulski, Stang, Ziehl, Young & Jones PC represent the debtors. ARKOOSH PRODUCE: Judge Pappas Rules Rents Pay Mortgage Holders -------------------------------------------------------------- Arkoosh Produce Inc., which filed for Chapter 11 last month, recently went to the bankruptcy court to determine the payment schedules for its secured creditors, The Associated Press reports. Having a first claim on the company assets, secured creditors hold $5.5 million worth of the liabilities, while unsecured creditors are owed $2.4 million. The Honorable Judge Jim Pappas ordered that the rental income Arkoosh obtains from its farmland and packing plant will be used to pay mortgage holders, First Security Bank and Life Investors Insurance Co. Potato packer Arkoosh filed for bankruptcy protection in the U.S. Bankruptcy Court in Idaho on Oct. 24. The company listed assets of $3.6 million and liabilities of $7.9 million. ARMSTRONG WORLD: Moody's Junks All Debt Ratings ----------------------------------------------- Moody's Investors Service downgraded the ratings of Armstrong World Industries Inc. (senior to Ca). Moody's action follows Armstrong's failure to repay $50 million in commercial paper which matured today. Ratings downgraded are: * Armstrong World Industries, Inc. a) senior unsecured debentures, medium-term notes and revolving credit facility to Ca from B2; b) shelf registration for senior unsecured debt to (P)Ca from (P)B2. Today, Armstrong announced that it had failed to repay $50 million in commercial paper that matured. This constitutes an event of default under the company's credit facilities and other debt agreements. The company had faced mounting liquidity pressures that arose as access to capital contracted in the wake of the Owens Corning bankruptcy and failure to renew another credit facility in October. In light of this default, it is highly likely that the company will file for bankruptcy protection. Armstrong World Industries, headquartered in Lancaster, PA, had revenues of $3.4 billion in 1999. C-PHONE: Video Communications Firm Considers Merger/Liquidation --------------------------------------------------------------- Providing video conferencing products for the past 2 years has been very tough for C-Phone Corp., LocalBusiness.com reports. The company decided to lay off one third of its 32 employees and plans to sell its remaining inventory. C-Phone is considering other alternatives such as a merger or a outright liquidation of the company. "We have not been successful in generating sufficient revenues to cover our operating costs in spite of cost cutting moves earlier in the year," President and CEO Paul Albritton said. Cal Chang Yocum of LocalBusiness.com adds that the Wilmington- based C-Phone provides video communications products for general business and niche markets, including security, education and healthcare. Its products deliver real-time video, voice and data for conferencing and remote monitoring applications. CARMIKE CINEMAS: Committee Suggests Serving Pleadings by E-Mail --------------------------------------------------------------- Serving copies of pleadings on all parties-in-interest as required under Sections 102 and 105 of the Bankruptcy Code and Rules 2002 and 9007 of the Federal Rules of Bankruptcy Procedure imposes "an undue and expensive administrative and economic burden on the Debtors' estates," Carmike Cinemas, Inc., complains to Judge Sue L. Robinson. Accordingly, Carmike's team of lawyers led by Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, asks that the Debtors be permitted to restrict service of pleadings to, in short, the parties to which they want to give notice. Fred S. Hodara, Esq., and David H. Botter, Esq., at Akin, Gump, Strauss, Hauer & Feld, L.L.P., representing the Official Committee of Unsecured Creditors appointed in Carmike's cases, object and propose an alternative arrangement. At the outset, Messrs. Horara and Botter note that there are only 120 parties that have requested service. This doesn't seem so unduly burdensome. But if it really is, then the Committee suggests that Carmike implement a Voluntary E-Mail Procedure that would (i) continue to provide broad notice; (ii) substantially reduce printing and postage costs; and (iii) preserve parties' rights to receive notice. CAROLINA PREMIER: Asset Sale Deal in the Works ---------------------------------------------- During the month of September, 2000, Carolina Premier Medical Group, PA obtained approval of a post-petition financing from Scott Medical Group LLC and negotiated a contract for the sale of substantially all the assets of the debtor. At September 30, Carolina Premier reports an ending cash balance of $303,715. Net sales for the month totaled $1,073,946 and the company posted a $1,107,210 loss. CERPLEX GROUP: Seeks Exclusivity Extension through January 22 ------------------------------------------------------------- The Cerplex Group, Inc. and Cerplex, Inc. seek to extend the exclusive periods during which the debtors may file a plan of reorganization and solicit acceptances thereto. A hearing to consider the motion will take place before the Honorable Mary F. Walrath, US Bankruptcy Court, Wilmington, DE on December 5, 2000 at 11:30 AM. The debtors request an order extending the Plan Filing Period and Plan solicitation period for 60 days through January 22, 2001 and March 23, 2001, respectively. The debtors have concentrated their efforts throughout the bankruptcy proceedings on seeking buyers for some or all of their assets. The debtors have successfully completed the sale of their repair, parts and UK businesses. The debtor also believes that the Committee should conclude its discussions with Welsh, Carson, Anderson & Stowe, a pre-petition lender of the debtors, with respect to the validity of Welsh Carson's alleged liens in the debtors' assets and the possibility of negotiating a consensual plan of reorganization. This is the debtors' first request to extend the exclusivity periods. The debtors believe that they are in the best position to coordinate and facilitate the filing of a plan of reorganization in the most expeditious manner and that they have shown "cause" for an extension of the Exclusivity Periods. CFI MORTGAGE: Retains Responsive for Investor Relations Work ------------------------------------------------------------ Responsive Research, Inc. is pleased to announce that it has been retained by CFI Mortgage, Inc. (OTC Bulletin Board: CFIM) as its Investor Relations Coordinator. CFIM is a unique turn-around situation, having emerged from bankruptcy and produced profitability within the last year. "After extensive due diligence, we have determined that CFIM meets and exceeds our criteria as an emerging growth Company, which we are proud to represent," said Richard C. Winkel, President of Responsive Research. "We will immediately commence a comprehensive Investor Relations campaign, which will give CFIM and its Chairman and CEO, Steve Williams the credit they so rightly deserve." In a November 14, 2000 release Mr. Williams, stated, "This quarter represents more than the fact that it was the first profitable quarter since taking over the reigns at CFIM in July 1999. Just 14 months ago, CFIM had a negative $10 million in Shareholder Equity and was operating under the Bankruptcy Plan of Reorganization. There were no operating subsidiaries producing revenue. With that now behind us, we have a Shareholder Equity in excess of $1 million, and more important, our subsidiaries are in full operation and now focused on revenue growth and profit." "We research many companies in order to find unique situations to introduce to our subscribers," said Mr. Winkel. "And the results produced by CFIM are so outstanding, that we feel once the investment community hears about this Company, many will want to take a long term position and watch CFIM grow." CFIM provides mortgage services through a large network of mortgage brokers and financial professionals. The Company's goal, through acquisition and internal growth, is to be a diversified leader creating custom software that provides technology-based business solutions for the national and international marketplace, as well as a leader in the mortgage industry. For more information on CFIM, please visit the Company Web site at www.cfiinc.com or that of Responsive Research at www.responsiveresearch.com, where you can subscribe, free of charge, to its mailing list for press releases, investor updates and market letters, which will keep you apprised of all late breaking CFIM news. CLARIDGE AT PARK PLACE: Lease Decision Period Runs to Dec. 31 ------------------------------------------------------------- By order entered on November 13, 2000 by the Honorable Judith H. Wizmur, US Bankruptcy Court, District of New Jersey, The Claridge at Park Place, Incorporated and The Claridge Hotel and Casino Corporation have been granted an extension of debtor's time to assume or reject the lease between the debtor and lessor, Atlantic City Boardwalk Associates, LP until December 31, 2000. The debtor's time to assume or reject the lease between the debtor and the lessor, Delilah Road Limited Partnership, LP is extended until December 31, 2000. CMR CONSTRUCTION: Creditors File Involuntary Petition ----------------------------------------------------- Three creditors have filed an involuntary bankruptcy petition against CMR Construction Inc. of Brentwood. Concord Bank, which said is owed $219,658; Kaiser Electric Co., $148,057; and Gateway Contractors, $5,875. Representing the creditors, Wendi Alper- Pressman, said that a company affiliated with CMR recently sought Chapter 11. That company, Barron Holdings International, owns the building at 8500 Eager Road where CMR was a tenant. Brothers, Mike and Charles Rallo founded CMR Construction in 1989. Early this year the brothers were kicked out from the company by its new investors, Paul Boghasian and David Campbell. The company, which was later named Barron Construction Services Corp., had almost $ 50 million in revenue and had more than 100 employees. CROWN CORK: Investors Re-evaluates Costly Asbestos Claims --------------------------------------------------------- As investors reevaluated the exposure to potentially asbestos claims, shares of packaging products supplier, Crown Cork & Seal Co. Inc. jumped nearly 28 percent, Reuters reports. Crown Cork lost almost half their value fearing possible legal action on companies that made products with asbestos. Andrew O'Conor, a Merrill Lynch analyst, says that the only asbestos related incident the company had was when it acquired a company 40 years back. The subsidiary that made insulation products was sold after three months it was acquired. DIMAC HOLDINGS: Confirmation Hearing Scheduled for Dec. 19 ---------------------------------------------------------- A hearing was held on November 14, 2000 to consider the motion of DIMAC Holdings, Inc. et al. for approval of the Disclosure Statement for the debtors' first amended joint Chapter 11 plan. The Disclosure Statement was approved as containing adequate information on November 14, 2000. The hearing on confirmation of the plan is scheduled for December 19, 2000 at 9:30 AM, U.S. Bankruptcy Court, Wilmington, DE. Weil, Gotshal & Manges LLP and The Bayard Firm represent the debtors. Under the plan, DIMAC Holdings' secured bank claimaints are to receive an estimated recovery of 87%. Unsecured general claimants, totaling an estimated $35.46 million, are to receive no estimated recovery. DIMAC Holdings is a closely held company and has eight direct and indirect wholly owned subsidiaries, each of which is a debtor in the jointly administered Chapter 11 cases. The controlling stockholder of DIMAC Holdings, through certain of its affiliates is McCown De Leeuw & Co., Inc., a private equity investment firm. As of the Commencement Date, three affiliates of the firm owned approximately 67.2% of the issued and outstanding common stock of DIMAC Holdings. The significant debt of the debtors generally consists of obligations under the Existing Credit Facility, the DIMAC Holdings Senior Notes, the DIMAC Holdings Senior Subordinated Notes, and the DIMAC Corp. Senior Subordinated Notes. As of the Commencement Date, the Existing Credit Facility consists of Term A Loans, Term B Loans, Term C loans and revolving credit facility in the aggregate principal amount of $236,850,000. On the Commencement Date, the debtors entered into a $20 million DIP Facility which was approved by the Bankruptcy Court on a final basis on May 5, 2000. As of September 30, 2000, the debtors have borrowed $1.5 million under the DIP Facility. The debtors are in the process, with the assistance of Gruppo Levey & Company, the debtors' consultants, to sell each of the non-core businesses. On November 8, 2000, the debtors filed a motion for an order approving an asset purchase agreement between AmeriComm Direct Marketing Inc. ("ADMI") and AmeriComm Acquisition Company. The agreement provides for the sale of certain assets and the assumption of certain liabilities of ADMI. The purchase price is $12 million. The hearing on the sale motion will be held on November 27, 2000 . The debtors estimate the approximate cost of the Retention and Stay Bonus Plan, Temporary Supplemental Pay Program and known s! ! everance payments obligations will be no greater than $10.2 million. DRKOOP.COM: Appoints John N. Caldwell As VP of Customer Operations ------------------------------------------------------------------ Drkoop.com, Inc. (Nasdaq: KOOP), a leading Internet Health company and provider of Internet-enabled application services for the healthcare industry, announced the appointment of healthcare executive John N. Cardwell to lead the company's customer operations. Based in the Philadelphia area, Cardwell will work closely with newly appointed Executive Vice President of Business Development and Sales, William H. Carlson, overseeing customer- driven solutions and connectivity. "We have repeatedly stressed our focus on the future strength and growth of this company, all which is dependent upon a well-built foundation of leadership," said Richard Rosenblatt, CEO of drkoop.com. "John's extensive experience in technology and health will enable us to better enhance and support the healthcare industry." "During my 28 years in the industry I have focused on helping health organizations successfully implement technology-based clinical solutions and have enjoyed building lasting relationships with partners and customers," Cardwell said. "I am eager to put my knowledge and skills to work for drkoop.com as we continue developing a connected community and a trusted network to support improved health management outcomes." Formerly VP of Clinical and Decision Support Systems and most recently responsible for the e-Solutions marketing efforts for drkoop.com partner Siemens/Shared Medical Systems (SMS), Cardwell will work to strengthen the drkoop.com Community Partner Program(TM). The strategic alliance with SMS makes drkoop.com a leader in promoting secure online interaction between patients, their physicians and local healthcare organizations. drkoop.com is a leading Internet Health Company providing information and services to individuals and corporations worldwide. The company's mission is to empower consumers with the information and resources necessary to become active participants in the management of their own health. drkoop.com has formed strategic relationships with numerous online organizations, healthcare portals as well as traditional healthcare provider, and integrates dynamic, medically reviewed content, interactive communities and consumer-focused tools into a complete source of trusted healthcare information. With more than two million registered users worldwide, drkoop.com has strategic relationships with numerous online organizations. The company's content is also featured on web sites representing more than 420 healthcare facilities nationwide. DRYPERS CORP: Taps Wasserstein Perella as Financial Advisor ----------------------------------------------------------- Drypers Corporation applied to the US Bankruptcy Court, Southern District of Texas, Houston Division, for authority to retain Wasserstein Perella & Co., Inc. as its financial advisors in its chapter 11 restructuring. Wasserstein will provide the following financial, restructuring and sale services to Drypers in connection with this case: -- Financial advice and assistance in developing and obtaining bankruptcy court approval of a disclosure statement and plan of reorganization; -- Financial advice and assistance in structuring any new securities to be issued under any plan of reorganization; -- Assistance in identifying and contacting potential investors in Drypers or acquirers of Drypers' property and assets, including its equity or debt securities; -- Financial advice and assistance in structuring and affecting a public or private sale or placement of the equity or debt securities or other obligations of Drypers with one or more lenders or investors, or any loan or financing including any debtor in possession financing, exit financing, or a rights offering; -- Assistance in preparing and developing an offering memorandum for distribution to potential investors in Drypers; -- Financial advice and assistance in connection with any transfer or other disposition of all or substantially all of the equity securities of Drypers by the security holders or all or substantially all of the assets (including the assignment of any executory contracts) or businesses of Drypers or its subsidiaries through (a) a sale or exchange of capital stock, options, or assets; (b) a lease of assets with or without a purchase option; (c) a merger, consolidation, or other business combination; (d) an exchange or tender offer (v) a recapitalization; (e) the formation of a joint venture, partnership, or similar entity; (f) or any similar transaction; -- Assistance with strategy and business plan development; -- Assistance and participation in any negotiations regarding the above matters; and -- Participation in any court hearings, including providing testimony, regarding the above matters. WP & Co. is entitled to a monthly financial advisory fee of $100,000, which shall be due on the date of the execution of the Letter Agreement and each successive monthly anniversary of that date. The firm shall also be entitled to a 1.75% transaction fee, provided that the minimum transaction fee is $2.5 million. If a restructuring is consummated, the firm is entitle to a 1.5% fee, the minimum fee require being $2 million. If financing is obtained the firm will receive a placement fee of .75% of any financing secured by Drypers' property and assets, with certain restrictions. DUKE & LONG: Files for Chapter 11 in Delaware --------------------------------------------- Attempting to restructure its debt, Duke & Long Distributing Co. has filed for bankruptcy protection under Chapter 11, The Tribune Business News reports. President and CEO Kathleen Callahan-Quion told a Paducah official that the firm plans to sell the former J.C. Penney building at 5th and Broadway. The city gave the building to D&L early 1999 after purchasing it for $ 805,000. The company agreed to use the building and hire 100 people for 10 years. As stated in the agreement, if by this spring the building is still not occupied, the company will reimburse Paducah the purchase price and damages of up to $ 605,000. Mayor-elect Bill Paxton said the city will enforce the agreement despite the filing. "We instructed our attorneys to research the matter," Paxton said. Paxton will help seek a buyer for the building. Duke & Long, which was purchased by Devon Convenience Holding Co., is a major supplier of fuel oil in western Kentucky and surrounding states. The petition was filed in Wilmington, Del., even though the company headquarters is located in Kentucky. ELDER-BEERMAN: Opens New Concept Store in Sheboygan, Wisconsin -------------------------------------------------------------- The Elder-Beerman Stores Corp. (Nasdaq:EBSC) plans to open a 54,000 square foot department store in the Sheboygan, Wisconsin area. Elder-Beerman will build the store in its concept store format in nearby Kohler, Wisconsin in the new Deerfield Trace Shopping Center adjacent to Interstate 43. The company anticipates opening the new store in the fall of 2001. It will be the state's fifth Elder-Beerman department store. "The Sheboygan store will be our seventh concept store," said Frederick J. Mershad, chairman and chief executive officer. "We designed our concept stores to meet the changing needs of today's busy customer by offering a competitive balance of price, selection, service and convenience. Our customers have responded favorably to the concept store format." This new concept store will carry brand name apparel, accessories and shoes for men, women, juniors, young men and children, quality cosmetics and fragrances, and home furnishings. The format of the store will enhance customer shopping through a convenient store layout and fixturing that will attractively offer more merchandise in less space. The features from the Company's other concept stores that will be incorporated in the Sheboygan store include: - Centralized customer service centers - Highly visible service islands in main aisles throughout the store. These service centers will be staffed continuously to provide efficient, convenient transactions and quality customer service. - Self-select cosmetics - All of the fragrances and about 50 percent of the treatment products will be available on open shelves and other open fixtures for easy selection. - The Zone - A combined juniors' and young men's shop that creates a specialty store within a store for the next generation customer. "Elder-Beerman looks forward to treating our future customers in Sheboygan to a refreshing shopping experience by providing an exciting and up-to-date department store that delivers fashion, value and superb service," Mershad said. The nation's ninth largest independent department store chain, The Elder-Beerman Stores Corp. has its headquarters in Dayton, Ohio and operates 63 stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin and Pennsylvania. Elder-Beerman also operates two furniture superstores. ELECTRO-CATHETER: Company Objects to UST's Motion to Convert ------------------------------------------------------------ Electro-Catheter Corporation objects to the motion of the United States Trustee for an order converting the debtor's Chapter 11 case to Chapter 7. The debtor claims, that while it has been dilatory in filing monthly operating reports, it has filed the reports through August 2000. The debtor states that it is current in its quarterly fees, and that the post-petition liabilities are $155,740 even though they are listed at $501,099, because the difference represents accrued interest to the debtor's secured lender the T-Partnership, which will never be paid because the T-Partnership is a significantly under secured creditor in this case and thus not entitled to post-petition interest under the Bankruptcy Code. The debtor claims that the United States Trustee has not established cause to convert the case under the Bankruptcy Code. The debtor has engaged in an orderly liquidation of its assets. It completed the sale of substantially all of its operating assets to Merit Medical Systems, Inc. for $625,000. The debtor asserts that while it was liquidating its assets, it received expressions of interest from approximately eight different parties about acquiring the debtor's public shell. This would be accomplished through the merger of a viable business with the debtor. Such a transaction would be the centerpiece of a plan of reorganization funded by a plan proponent. In order to accomplish any such merger, the debtor needs to be in compliance with all SEC reporting requirements, and the debtor retained a CPA to perform an audit for the debtor's fiscal year ended August 31, 1999 and to issue financial statements with respect thereto. The debtor has also retained special legal counsel to ensure that the company is in good standing with the SEC. ENTERTAINMENT INTERNET: Files for Chapter 11 Protection ------------------------------------------------------- The Entertainment Internet Inc. filed for reorganization to eliminate millions of dollars in unsecured and other debts incurred by prior management and to protect it from creditors while it continues to operate the Castnet.com(TM) Web sites it developed. The filing is expected to rid the company and its subsidiary of several classes of claims and debts and to recover monies paid for certain claims and settlements during the past 90 days, while present management frames a reorganization plan. According to the company, the Castnet.com(TM) Web sites are now owned by its principal lender and are operated through an arrangement, which allows the company continued but reduced funding. The lender recognizes that Web site value is impaired or negated by interruption of service and is allowing the company to continue to operate and host the Castnet.com(TM) Web sites on its behalf. Subscribers to the Castnet.com(TM) services, like other creditors, will receive appropriate notices as the case proceeds, but are assured that the company has taken this decisive action to rid itself of suffocating debt so that it can better serve as an electronic community host. Strategic Marketing V.P. Rick La Fond said: "We will continue to serve the production, casting, and acting communities while outside counsel assists us in shedding the debt amassed by prior management. While our detractors and competitors may make contrary statements, it will be business as usual for Castnet.com(TM) and TEI's dedicated staff." FACTORY CARD: Asks for Exclusivity Extension through March 30 ------------------------------------------------------------- Factory Card Outlet Corp. and Factory Card Outlet of America, Ltd. seek to extend their exclusive periods during which the debtors may file a plan of reorganization and solicit acceptances thereof. The debtors request a further extension of their Exclusive Filing Period and their Exclusive Solicitation Period to and including March 30, 2001 and May 29, 2001, respectively, without prejudice to the debtors' right to request further extensions. Since the last extension of the Exclusive Periods, there have been several developments in the Chapter 11 cases. Currently FCO Acquisition is awaiting court approval of the acquisition letter of intent before commencing due diligence. Once commenced , it will take time to examine the debtors' facilities, books and record, leases and management. The debtors and FCO Acquisition must also negotiate and draft the definitive investment agreement and a plan of reorganization. The debtors are also examining and soliciting alternative proposals. Since the last extension of the exclusive periods, the debtors have made substantial progress in their cases. The debtors are still in the process of formulating additional objections to claims that would reduce the aggregate dollar amount of claims in these cases, thereby increasing the percentage distribution that would inure to unsecured creditors pursuant to a plan of reorganization. They are engaged in on-going negotiations with certain secured creditors regarding the status and treatment of their claims; they are continuing to evaluate their store operations and store leases for the purpose of determining which leases may be assumed or rejected; and they continue to evaluate other executory contracts to determine which may be assumed or rejected; and they are exploring alternative sources for working capital financing facilities that would be available upon emergence from Chapter 11. The debtors are worried that a termination of exclusivity now could create doubt among the debtors' vendors and may jeopardize the FCO Acquisition deal. FARMERS COOPRATIVE: Morrison & Hecker to Represent Committee ------------------------------------------------------------ The Official Unsecured Creditors Committee of The Farmers Cooperative Association, requests that the court enter an order authorizing the Committee to employ Morrison & Hecker LLP as its counsel. The firm will provide the following services, among others: a) Advising the Committee with respect to its powers and duties in connection with the case; b) Assisting and advising the Committee regarding the possible formulation of a plan; c) Preparing and pursuing any necessary applications, motions, notices, orders, and other papers necessary or appropriate for the Committee; d) Advising the Committee regarding all pleadings filed in the case; e) Representing the Committee before this court; f) Responding on behalf of the Committee to requests for information from parties in interest. The current standard hourly rates for the firm range from $85 per hour for paralegals to $235 per hour for senior attorneys. The debtor anticipates that most of the work in this case will be performed: Carl F. Krauss - $235 per hour Paul M. Hoffman - $235 per hour Patricia E. Hamilton - $165 per hour Katherine M. Becker - $100 per hour Adam T. Workman - $110 per hour Lisa F. Wright - $90 per hour GC COMPANIES: US Trustee Convening Creditors' Meeting on Dec. 18 ---------------------------------------------------------------- The debtors, GC Companies, Inc., et al. filed a Chapter 11 case on October 11, 2000. Attorneys for the debtors are Daniel M. Glosband, PC, Goodwin, Procter & Hoar LLP and David M. Fournier, Pepper Hamilton LLP. The United States Trustee for Region III will convene a meeting of General Cinema's creditors on December 18, 2000 at 3:0O PM, Wilmington, DE. GENESIS HEALTH: Bankruptcy Court Fixes Dec. 19 Claims Bar Date -------------------------------------------------------------- On November 8, 2000 the US Bankruptcy Court for the District of Delaware entered an order in the case of Genesis Health Ventures, Inc., et al. establishing December 19, 2000 as the Bar Date, the last date and time for each person or entity to file a proof of claim against any of the debtors. GEORGE WASHINGTON: S&P Assigns Bpi Rating Citing Weak Earnings -------------------------------------------------------------- Standard & Poor's has assigned its single-'Bpi' financial strength rating to George Washington University Health Plan. The rating reflects the HMO's very weak risk-based capitalization and very weak earnings profile, offset by good liquidity. This not-for-profit organization, serving the greater Washington, D.C. area, is a wholly owned subsidiary of George Washington University. Major Rating Factors: -- The HMO's risk-based capitalization is weak, as indicated by a Standard & Poor's capital adequacy ratio of 47.7% at year-end 1999. This includes full credit for a surplus note on its balance sheet. -- Earnings have been very volatile for the past five years, with net losses in every year except 1998, which had a net gain of $2.4 million. -- Liquidity is good, with a Standard & Poor's liquidity ratio of 122%. Enrollment has been declining at an average rate of 3.4% over the past three years. GRAND UNION: Great Atlantic Alleges C&S Rigged the Auction ---------------------------------------------------------- Grocery chain Great Atlantic & Pacific Tea Co. alleges that the recent purchase by C&S Wholesale Grocers Inc. of Grand Union Co. assets was rigged, The Associated Press reports. Great Atlantic states in a lawsuit that it's filed in New Jersey that C&S allegedly persuaded other grocery stores to pass on the bankruptcy auction. Bankruptcy Judge Novalyn L. Winfield was asked by Great Atlantic to reject the sale and to order a new auction. C&S recently closed the deal in acquiring the assets of Grand Union for $ 301.8 million. Grand Union filed its third Chapter 11 in New Jersey last month, posting assets of $ 749.5 million and debts of $ 803.9 million. Grand Union, headquartered in Wayne, New Jersey, operates 197 supermarkets in five northeastern states. GWI INC: Committee Selects Jones Day & Richards Layton as Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors seek to retain Richards, Layton & Finger, PA as co-counsel to the Committee. By separate application the Committee is seeking to employ and retain the law firm of Jones, Day, Reavis & Pogue as co-counsel to the Committee. Richards Layton is expected to render inter alia the following legal services: a) Advising the Committee as to its rights and duties; b) Advising the Committee in connection with proposals and pleadings submitted by the debtors or others to the Court; c) Investigating the actions of the debtors and the assets and liabilities of their estates; d) Advising the Committee in connection with negotiation and formulation of a plan or plans of reorganization; e) Consulting with the debtors and their professionals concerning administration of the cases; f) Generally advocating positions that further the interests of the unsecured creditors represented by the Committee; and h) Performing such services as are in the interests of the debtors' unsecured creditors. HANDY & HARMAN: Disclosure Statement Set for January 4 ------------------------------------------------------ The hearing to consider approval of the disclosure statement of Handy & Harman Refining Group, Inc. and Attleboro Refining Company will be held at the 7th Floor Courtroom, 450 Main Street, Hartford, CT on January 4, 2001 at 11:00 AM. HARNISCHFEGER: Taking Bids for Corporate Headquarters ----------------------------------------------------- As part of its bankruptcy reorganization, the five-year-old headquarters building for Harnischfeger Industries Inc., overlooking Lake Michigan, will be auctioned off on February, The Associated Press reports. Judge Walsh approved bidding procedures paving the way for a sale to proceed. The Debtors anticipate an orderly auction in February and indicates that one bid has already been accepted. Executive VP and general counsel, Jim Chokey said that Harnischfeger plans to transfer its headquarters' operations elsewhere, but still in the Milwaukee vicinity. JODA INC: Disclosure Statement Hearing Commences on Dec. 14 ----------------------------------------------------------- JODA, Inc. f/k/a joan and david helpern incorporated, debtor and the Creditors Committee filed a joint plan of liquidation under Chapter 11 dated November 8, 2000 and a proposed Disclosure Statement. The hearing to consider approval of the Disclosure Statement shall commence on December 14, 2000 at 10 AM. Counsel of the debtor is Frank A. Oswald and Gerard DiConza, Togut, Segal & Segal LLP. Hahn & Hessen LLP represent the Official Committee of Unsecured Creditors. MASTER GRAPHICS: Files Joint Reorganization Plan with Premier ------------------------------------------------------------- After filing for Chapter 11 on July 7, Master Graphics Inc. and Premier Graphics Inc. have filed a joint Chapter 11 reorganization plan, Dow Jones reports. The plan, filed in the U.S. Bankruptcy Court in Delaware, proposes to convert $ 130 million of Premier's 11.5% senior notes due 2005 into equity of the reorganized company. Judge Peter J. Walsh has scheduled a hearing on Dec. 19 to consider the submitted plan. Objections to the disclosure statement are due Dec. 15. Obtaining Judge Walsh's approval, Master Graphics will sell its non-core assets, estimating to harvest $ 30 million to $ 35 million to reduce the company's secured debt and answer working capital needs. Financial adviser Lazard Freres & Co. valued the reorganized commercial printing supplier between $ 80.7 million and $ 97.7 million. At the time of its Chapter 11 filing, Cordova, TN-based Master Graphics reported debts of $ 256 million and assets of $ 187 million. MEDALLION FUNDING: Fitch Places Senior Secured Debt on Watch ------------------------------------------------------------ Fitch has placed Medallion Funding Corp.'s (MFC) `BBB' senior secured debt rating and `F2' secured commercial paper rating on Rating Watch Negative. This rating action is principally due to internal control issues and the potential reduction in liquidity sources available to Medallion Financial Corp. (Medallion), MFC's parent. Specifically, in Medallion's Sept. 30, 2000 SEC filing, the company reported that it is subject to being declared in default on Dec. 15, 2000 on its $110 million revolving credit facility, if certain improvements in its internal control structure are not accomplished prior to that date. While Fitch recognizes that Medallion has taken measures in addressing these concerns, the possibility remains that this revolver may be terminated prior to its scheduled maturity of Sept. 21, 2001, thereby reducing the company's overall financial flexibility. The rating action also considers long-standing concerns regarding MFC's funding profile, which remains largely dependent on short- term debt. At Sept. 30, 2000, short-term, variable rate debt represented 82.96% of total debt and 64.11% of total capitalization. This high level of short- term debt results in an asset/liability mismatch and exposes the company to both interest rate and rollover risk. Additionally, Fitch has become increasingly concerned about management's effectiveness in communicating meaningful company related information. MFC is a $347 million commercial finance company and Medallion's principal operating subsidiary. The company originates and services loans secured by taxicab medallions and has an estimated 20% market share in New York City, the country's largest taxicab medallion market. MFC also originates and services small-ticket commercial installment loans to small businesses. NATIONAL BENEVOLENT: Fitch Places Bonds on Rating Watch Negative ---------------------------------------------------------------- Fitch places its `BBB+' rating for National Benevolent Association's (NBA) approximate $162 million outstanding bonds on Rating Watch Negative, meaning the bonds may be downgraded. A list of affected issuers appears at the end of the release. This action stems from NBA's deteriorating financial performance over the past year and a half. The combination of stagnant utilization of services at its Colorado continuing care retirement community (CCRC), decreases in contributions and the payment of a large legal settlement has resulted in a sudden decrease in operating profitability. Growth in operating expenses has outpaced revenues such that NBA's excess margin has decreased from 3.2% at FYE 1999 to (3.5%) through Sept. 30, 2000. The sudden decline in profitability was primarily due to the payment of a $5.1 million settlement relating to a lawsuit filed against its Serra Residential, Inc. campus. Furthermore, NBA has received $5.8 million less in contributions through nine months 2000 compared to the same period in fiscal 1999. However, this is partially due to a one time $3 million donation made to the Colorado Christian facility in 1999. As a result NBA has experienced a significant decrease in liquidity. At Sept. 30, 2000, NBA had a days cash on hand and cash to debt ratio of 320.2 days and 59.7%, respectively. This is down significantly from 382.2 days and 73.7% at Dec. 31, 1999. Coverage of maximum annual debt service (MADS) remains extremely low and has decreased to 1.0 times (x) through Sept. 30, 2000 and will decrease even further with the expected addition of $10 million of variable rate debt in Dec. 2000. Operating profitability should continue to be stressed as expenses increase and utilization remains flat. In addition, liability insurance premiums should increase by about $1.5-$2.5 million in fiscal year 2001. As a response to these pressures, management will increase rates for residents in fiscal 2001 which may further stress utilization. Headquartered in St. Louis, MO, NBA provides services to the elderly, children, and the developmentally disabled, with the bulk of its efforts on the elderly through 1,742 independent living residential units, 1,281 nursing beds, and 511 assisted living units in 23 states, with the bulk of operations concentrated in 10 states. Outstanding Debt: -- $9,905,000 Jacksonville (FL) Health Facilities Authority, industrial development revenue bonds (NBA--Cypress Village Florida Project), series 2000A; -- $10,100,000 Colorado Health Facilities Authority, revenue bonds (NBA--Village at Skyline Project), series 2000C; -- $9,465,000 Colorado Health Facilities Authority, revenue bonds (NBA-Village at Skyline Project), series 1999A; -- $4,170,000 Oklahoma County Industrial Authority, health care revenue bonds (NBA - Oklahoma Christian Home Project), series 1999; -- $2,860,000 Health and Educational Facilities Authority of the State of Missouri, health facilities refunding and improvement revenue bonds (NBA - Central Office Project), series 1999; -- $16,205,000 Colorado Health Facilities Authority, health facilities revenue bonds (NBA - Village at Skyline Project), series 1998B; -- $11,390,000 Colorado Health Facilities Authority, health facilities refunding revenue bonds (NBA - Multi-state Issue), series 1998A; -- $6,325,000 Iowa Finance Authority, health facilities revenue bonds (NBA - Ramsey Home Project), series 1997; -- $2,860,000 Oklahoma County Industrial Authority, health care refunding revenue bonds (NBA - Oklahoma Christian Home Project), series 1997; -- $2,295,000 Health and Educational Facilities Authority of the State of Missouri, health facilities revenue bonds (NBA - Woodhaven Learning Center Project), series 1996A; -- $2,500,000 Colorado Health Facilities Authority, tax-exempt health facilities revenue bonds (NBA - Colorado Christian Home Project), series 1996A; -- $2,920,000 Illinois Development Finance Authority, health facilities revenue bonds (NBA - Barton W. Stone Christian Home Project), series 1996; -- $4,800,000 Colorado Health Facilities Authority, tax-exempt health facilities revenue bonds (NBA - Village at Skyline Project), series 1995A; -- $5,070,000 Jacksonville (FL) Health Facilities Authority, industrial development revenue bonds (NBA - Cypress Village Florida Project), series 1994; -- $4,035,000 Health and Educational Facilities Authority of the State of Missouri, health facilities revenue bonds (NBA - Lenoir Retirement Community Project), series 1994; -- $8,840,000 Jacksonville (FL) Health Facilities Authority, industrial development revenue bonds (NBA - Cypress Village Florida Project), series 1993; -- $26,765,000 Jacksonville (FL) Health Facilities Authority, revenue refunding bonds (NBA - Cypress Village Florida Project), series 1992; -- $24,390,000 City of Indianapolis, Indiana, economic development refunding and improvement revenue bonds (NBA - Robin Run Village Project), series 1992; -- $4,855,000 Industrial Development Authority of Cass County, Missouri, industrial revenue refunding bonds (NBA - Foxwood Springs Living Center Project), series 1992; -- $2,010,000 Bexar County (TX) Health Facilities Development Corp., tax-exempt health facilities revenue bonds (NBA - Patriot Heights Project), series 1 PSINET, INC: Securities Fraud Complaints Continue to Roll In ------------------------------------------------------------ The Law Offices of Lionel Z. Glancy announced the following. Pursuant to Section 21(D)(A)(3)(a)(i) of the Securities Exchange Act of 1934, Notice is hereby given that a Class Action has been commenced in the United States District Court for the Eastern District of Virginia on behalf of a class (the "Class") consisting of all persons who purchased the securities of PSINet, Inc. ("PSINet") (Nasdaq:PSIX) between May 9, 2000, and November 2, 2000, inclusive (the "Class Period"). The Complaint charges PSINet and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of PSINet's 1999 financial results, operations, and prospects artificially inflated PSINet's stock price during the Class Period inflicting enormous damages on investors. Plaintiff seeks to recover damages on behalf of Class members and is represented by the Law Offices of Lionel Z. Glancy, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud. For additional information, contact Michael Goldberg, Esquire, of the Law Offices of Lionel Z. Glancy, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at 310/201- 9150, toll-free at 888/773-9224 or info@glancylaw.com by e-mail. TAL WIRELESS: Plan Heads to Confirmation on December 21 ------------------------------------------------------- The US Bankruptcy Court, Northern District of California approved the Disclosure statement of TAL Wireless Networks, Inc. The plan provides for the liquidation of all assets of the debtor and distribution of the liquidation proceeds to creditors. The plan provides that the stock of the debtor shall be canceled upon the Effective Date and that there shall be no distribution to shareholders, and that shareholders are deemed to have rejected the plan. December 14, 2000 is the last day for parties to file with the court and serve objections to confirmation of the plan. December 21, 2000 at 10:30 AM has been fixed as the time and date for the hearing on confirmation of the plan. Attorneys for the debtor are Craig M. Prim and Stephen T. O'Neill, Murray & Murray, PC, Cuppertino, CA. SUMMERLIN RESORT: Case Summary and 25 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: The Resort at Summerlin, Limited Partnership 221 North Rampart Boulevard Las Vegas, Nevada 89145 Type of Business: Owner/Operator of The Regent Las Vegas, a luxury hotel, casino and spa complex in Las Vegas, Nevada. Chapter 11 Petition Date: November 21, 2000 Court: District of Nevada Bankruptcy Case No.: 00-18878 Judge: Robert C. Jones Debtor's Counsel: Laurel E. Davis, Esq. Lionel Sawyer & Collins 300 South Fourth Street, Suite 1700 Las Vegas, NV 89101 (702) 383-8888 Fax:(702) 383-3845 and Frank A. Merola, Esq. Eve H. Karasik, Esq. Stutman, Treister & Glatt Professional Corp 3699 Wilshire Boulevard, Ninth Floor Los Angeles, California 90010 (213) 251-51100 Fax:(213) 251-5288 Total Assets: $ 296,366,000 Total Debts : $ 365,802,000 25 Largest Unsecured Creditors John Hancock Life Insurance Company $ 27,038,000 Steve Blewitt plus 200 Clarendon Street 57th St interest, Boston, MA 02117 13% Sr. costs and (617) 572-9624 Subordinated attorney Fax:(617) 572-1606 Notes due 2007 fees AIM High Yield Fund Vicki Bryan $ 25,769,000 11 Greenway Plaza, Suite 100 plus Houston, TX 77573 13% Sr. interest, (713) 214-4504 Subordinated cost and Fax:(713) 622-4889 Notes due 2007 attorney fees RBC Dominion Securities Corp. $ 7,000,000 Max Holmes plus One East Weaver Street, 3rd Fl 13% Sr. interest, Greenwich, CT 06831 Subordinated costs and (212) 858-7215 Notes due 2007 attorney fees John Hancock Life Insurance Company Steve Blewitt 200 Clarendon Stree $ 3,003,000 57th St. plus Boston, MA 02117 13% Senior interest, (617) 572-9624 Subordinated costs and Fax:(617) 572-1606 Notes due 2007 attorney fees AIM V.I. High Yield Fund Vicki Bryan $ 608,000 11 Greenway Plaza plus Suite 100 interest, Houston, TX 77573 13% Senior costs and (713) 214-4504 Subordinated attorney Fax:(713) 622-4889 Notes due 2007 fees R & R Partners, Inc. P.O. Box 80130 Las Vegas, NV 89180-0130 (702) 228-0222 Fax:(702) 363-8974 Trade Debt $ 284,438 Image Construction, Inc. Trade Debt $ 222,222 Lithexcel Trade Debt $ 149,235 Western Tile Trade Debt $ 124,488 Sprint Trade Debt $ 119,413 Vaughn Benz Trade Debt $ 94,160 Hydro Spa Consultants Trade Debt $ 89,698 Nielson-Wurster Group, Inc. Trade Debt $ 84,277 Valley Green Landscape, Inc. Trade Debt $ 82,738 Arizona Restaurant Supply Trade Debt $ 81,155 Regent International Hotels Trade Debt $ 79,167 Bombard Electric Trade Debt $ 68,047 Los Angeles Times Trade Debt $ 68,620 City of Las Vegas-Sewer Trade Debt(Utilities) $ 64,599 Roger Williams Mint Trade Debt $ 61,120 Panasonic Corporate Systems Trade Debt $ 60,809 KH&S Contractors Trade Debt $ 60,000 International Game Technology Trade Debt $ 56,791 Bell Trans/Charter Limousine Trade Debt $ 54,871 Enron Energy Services Trade Debt $ 45,331 WATERBURY, CT: Fitch Cuts General Obligation Bond Rating to BBB- ---------------------------------------------------------------- Fitch lowers its rating on approximately $96.2 million Waterbury, Connecticut general obligation bonds to 'BBB-' from 'BBB', and places the rating on Rating Watch Negative, indicating the possibility of downgrade in the near future. Events that have triggered this action are the reappearance of operating fund deficits in the City's general fund, which have reduced the city's liquidity and necessitate temporary short-term borrowing to meet city payrolls in Dec. Through fiscal 1999, the City had accomplished positive fund balances in its general fund for three consecutive years, following years of chronic deficits and the implementation of a state appointed Budget Advisory Council to oversee its finances. In Jan. 2000, the City indicated that there was potential for a deficit of about $7 million for fiscal year ending June 30, 2000, primarily because of the bankruptcy of a vendor that was responsible for collecting delinquent property taxes, and had guaranteed the City 99.25% of its current levy in return for the right to collect on delinquencies. At the time, the City indicated that it was in process of reviewing and revising its budgets to address the potential shortfall, and that it was vigorously pursuing its legal and financial rights against the bankrupt vendor. Although it is as yet unclear as to exactly what has transpired, it appears that City actions to address this potential shortfall were insufficient, that legal actions to collect against the bankrupt vendor have yet to be successful, and that the City has experienced additional budget shortfalls for fiscal year 2000, as well as the current budget year which ends on June 30, 2001. The City currently estimates a negative fund balance of about $17 million for fiscal 2000, which is about twice that which was estimated in Jan. It also appears that revenues that the City was unable to collect in fiscal year 2000 were again budgeted for collection in 2001. The Budget Advisory Council had accepted the original proposed 2001 budget in May of this year, but requested revisions to the City's 2001 budget which were not adopted. Fitch's prior rating of 'BBB' reflected the ability of the City to operate balanced general fund operations in 1997-1999, and placed weight on multi-year budget forecasting and the role of the Budget Advisory Council in helping to keep the City's budgets in balance. The speed and severity with which deficits reappeared, and the apparent ineffectiveness of the Budget Advisory Council to maintain fiscal discipline are the key reasons for today's downgrade. The fact that the City has continued to maintain a trustee-held debt service fund with sufficient cash to meet debt service for the remainder of this fiscal year was considered as positive, but does not guarantee insulation from severe fiscal stress if the City does not act quickly to reduce or eliminate deficits. Continuation of the investment grade bond rating for Waterbury is contingent upon passage of an 11-mill supplemental property tax increase, which will be considered by City Council on Nov. 30. Other potential developments that could reduce the deficits in the near term are the acceptance of a settlement from the tax collection vendor and a sale of tax liens for the 2000- 2001 tax delinquencies. Neither of these potential developments are assured at this point. Fitch will review developments in the next two weeks to determine the magnitude of the City's cash flow problems, the role and response of the state-appointed Budget Advisory Council, the possibility of additional state controls, the implementation of the proposed tax increase and City plans to address new shortfalls. At that time, we will review Waterbury's 'BBB-' rating and the Rating Watch Negative status. ********* Bond pricing, appearing in each Monday's edition of the TCR, is provided by DLS Capital Partners in Dallas, Texas. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles available from Amazon.com -- go to http://www.amazon.com/exec/obidos/ASIN/189312214X/internetbankrupt -- or through your local bookstore. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. 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