/raid1/www/Hosts/bankrupt/TCR_Public/020923.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, September 23, 2002, Vol. 6, No. 188
Headlines
360NETWORKS: Seeks Okay to Reject Franchise with New York City
ACANDS INC: Section 341(a) Meeting Convenes on October 23, 2002
ACOUSTISEAL INC: Look for Schedules and Statements on October 11
ADELPHIA BUSINESS: Metromedia Presses for Decision on Contracts
ALLIANCE PHARMACEUTICAL: Agrees to Explore Options to Keep PFC
ALLIED WASTE: Moody's Confirms Lower-B Ratings on Various Debts
BELL CANADA: Court Decision Puts Pay Equity Settlement on Hold
BELL CANADA: Teams with Avaya to Provide Contact Center Solution
BETHLEHEM STEEL: Bringing-In Credit Suisse as Financial Advisor
BUDGET GROUP: Wants Court's Okay to Tap Buck as KERP Consultant
CALPINE: Selling BC Oil & Gas Assets to Pengrowth for $248 Mill.
CAMBRIAN COMMS: Files Petitions for Chapter 11 Reorganization
CAMBRIAN COMMS: Case Summary & 20 Largest Unsecured Creditors
CAMTEK LTD: Fails to Maintain Nasdaq Min. Listing Requirements
CASH TECH.: Needs New Capital Infusion to Continue Operations
CHASE COMMERCIAL: S&P Lowers Ratings on 3 Series 2000-1 Classes
CRESTED CORP: Grant Thornton Expresses Going Concern Doubt
DELANEY VINEYARDS: Bringing-In Forshey & Prostok as Attorneys
DIAL CORP: Ratifies 4-Year Labor Agreement with Union
ELECTROPURE INC: Needs Fresh Financing to Continue Operations
EMPRESA ELECTRICA: Fitch Drops Edenor's Local Currency to DD
ENRON CORP: Gets Court Approval to Assume Amended Microsoft Pact
E POWER HOLDINGS: Case Summary & 5 Largest Unsecured Creditors
FOAMEX: Gets $18.4MM Cash from Unwinding Interest Rate Hedges
GLOBAL CROSSING: Details about New Senior Secured Notes
GLOBAL CROSSING: Details about New Preferred Stock
GLOBAL CROSSING: Details about New Common Stock
GLOBAL CROSSING: Plan Creates Litigation Trust for Creditors
GROUP TELECOM: Ontario Court Extends CCAA Protection to Sept. 25
GUILFORD MILLS: Court Confirms Chapter 11 Plan of Reorganization
HIGH SPEED: Will Make Initial Cash Distribution to Shareholders
ICG COMMUNICATIONS: Turns to Miller Buckfire for Fin'l Advice
INTEGRATED HEALTH: Wants Lease Decision Time Extended to Mar 31
JACOBSON STORES: Sells Stores Property for $39 Mill. at Auction
KEY3MEDIA GROUP: Moody's Junks $100M Sr. Secured Facility Rating
KMART CORP: Court Okays Aerodynamics as Debtors' Aircraft Broker
LEAP WIRELESS: Closes Sale of Interests in Pegaso for $22.2 Mil.
LODGIAN INC: Has Until January 31, 2003 to Remove Civil Actions
LORAL SPACE & COMMS: S&P Further Junks Sr. Unsecured Debt Rating
MAGELLAN PETROLEUM: PCX Halts Shares Trading Pending Delisting
MEADOWCRAFT: Asks Court to Extend Lease Decision Time to Mar. 22
MENDOCINO BREWING: Fails to Meet Pacific Exchange Requirements
MERA PHARMACEUTICALS: Exits Chap. 11 Following Merger Completion
MISSISSIPPI CHEM: S&P Junks Corporate Credit & Debt Ratings
NATIONAL STEEL: Mineo Shimura Elected as New Chairman and CEO
NETIA HOLDINGS: Approval of Arrangement Plan for Unit Postponed
NETROM INC: Eliminates Substantial Part of Debt via Equity Swap
ONELINK: Expects to Close Asset Sale to CallVision after Meeting
OVERHILL CORP: Sets Sept. 30 Record Date for Unit's Spin-Off
PANDA FUNDING: S&P Says Outlook for BB- Rating is Negative
PARK PHARMACY: Defaults on Revolving Line of Credit & Term Loan
PERKINELMER CORP: Expects to Violate Covenant Under Credit Pact
PREVIO: Shareholders Agree to Sale of Technology Assets for $1MM
SCOTTS CO.: S&P Affirms BB Rating & Revises Outlook to Positive
SPECIAL METALS: Names Dennis Wanlass as Chief Restructuring Off.
SUPERIOR TELECOM: S&P Drops Corp. Credit, Sr. Debt Ratings to SD
SWITCHBOARD INC: Files Restated FY 2001 Results on Form 10-K
TANDYCRAFTS: Seeks Open-Ended Lease Decision Period Extension
TECHNICAL COMMS: Commences Trading on OTCBB Effective Today
TELEGLOBE: Selling Core Business to Cerberus, et al for $155MM
TELIGENT INC: Successfully Emerges from Chapter 11 Proceeding
TRANSCARE CORP: Seeking Authority to Pay Critical Trade Claims
TYCO INTL: Will Conduct Investor Conference Call on Wednesday
UNITED AIRLINES: Flight Attendants Continue Work to Refine Plan
US AIRWAYS: Court OKs Retention of O'Melveny as Special Counsel
VENTAS INC: Names Raymond Lewis SVP & Chief Investment Officer
WASTE TECHNOLOGY: KPMG LLP Expresses Going Concern Doubt
WCI STEEL: Deteriorating Liquidity Spurs S&P to Junk Rating
WESTPOINT STEVENS: Takes Further Restructuring to Reduce Costs
WILBRAHAM CBO: S&P Ratchets Ratings on Class A, B & C Notes
WILLIAM CARTER: S&P Keeping Watch on Low-B's Over Equity Sale
WINSTAR COMMS: Ch. 7 Trustee Wants to Appoint Directors to Units
WORLDCOM: Integral Seeks Stay Relief to Pursue Oklahoma Action
WORLDWIDE MEDICAL: Closes $1.65 Million Financing with Ziegler
* BOND PRICING: For the week of September 23 - 27, 2002
*********
360NETWORKS: Seeks Okay to Reject Franchise with New York City
--------------------------------------------------------------
On September 18, 2000, 360networks (USA) inc., and the City of
New York entered into a Franchise Agreement. The Franchise
provides, inter alia, that the City will grant to 360 USA the
non-exclusive right to install certain cable, wire, fiber optic
telecommunications cable or other medium in the public rights-
of-way in New York City. For the use of the space, 360 USA was
to pay the City $200,000 per year starting on a future date.
Moreover, the Debtors were required to provide to the City both
a $1,750,000 performance bond and a $250,000 letter of credit.
At the time the Franchise Agreement was executed, construction
of a fiber optic backbone in New York City had the potential for
helping generate revenue for the Debtors. However, in light of
the current market conditions, the Debtors no longer believe the
Franchise will provide net benefits to the Debtors' estates due
to the cost of performance under the Franchise, as it has not
been. The cost of performance under the Franchise outweighs the
net benefit received by the Debtors.
Accordingly, the Debtors seek the Court's authority to reject
the Franchise Agreement 30 days before the date of the order
granting the relief.
The Debtors anticipate that the City might assert damages and
potentially seek to draw on the letter of credit and even seek
to file a claim against the Bond. Thus, the Debtors ask the
Court to schedule an evidentiary hearing to determine the
extent, if any, of the City's rejection damages within 60 days
of entry of the order granting the rejection of the Franchise.
By serving this motion to the City and issuers of the letter of
credit and the Bond, the Debtors expect the City to refrain from
drawing on the letter of credit or collect from the Bond.
Shelley C. Chapman, Esq., at Willkie Farr & Gallagher, in New
York, argues that the rejection is warranted under Section
365(a) of the Bankruptcy Code since it would benefit the estate.
The rejection will let the Debtors avoid the possible accrual of
administrative claims based on monthly payment pursuant to the
Franchise. (360 Bankruptcy News, Issue No. 33; Bankruptcy
Creditors' Service, Inc., 609/392-0900)
ACANDS INC: Section 341(a) Meeting Convenes on October 23, 2002
---------------------------------------------------------------
The United States Trustee will convene a meeting of ACandS,
Inc.'s creditors on October 23, 2002 at 11:00 a.m., at the J.
Caleb Boggs Federal Building, 2nd Floor, Room 2112, Wilmington,
Delaware. This is the first meeting of creditors required under
11 U.S.C. Sec. 341(a) in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
ACandS, Inc., was an insulation contracting company, primarily
engaged in the installation of thermal and mechanical
insulation. In later years, Debtor also performed a significant
amount of asbestos abatement and other environmental remediation
work. The Company filed for chapter 11 protection on September
16, 2002. Laura Davis Jones, Esq., at Pachulski Stang Ziehl
Young & Jones represents the Debtor in its restructuring
efforts. When the Company filed for protection from its
creditors, it listed estimated debts and assets of over $100
million.
ACOUSTISEAL INC: Look for Schedules and Statements on October 11
----------------------------------------------------------------
Acoustiseal, Inc., sought and obtained an extension from the
U.S. Bankruptcy Court for the Western District of Missouri to
file its schedules of assets and liabilities, schedules of
current income and expenditures, statements of financial affairs
and statements of executory contracts. The Court gives the
Debtor until October 11, 2002, to file these financial
disclosure documents required of all debtors under 11 U.S.C.
Sec. 521(1).
Acoustiseal, Inc., filed for chapter 11 protection on September
4, 2002 in the U.S. Bankruptcy Court for the Western District of
Missouri (Kansas City). Cynthia Dillard Parres, Esq., and Mark
G. Stingley, Esq., at Bryan, Cave LLP represent the Debtor in
its restructuring efforts. When the Company filed for
protection from its creditors, it listed an estimated assets of
$10-$50 million and estimated debts of over $50 million.
ADELPHIA BUSINESS: Metromedia Presses for Decision on Contracts
---------------------------------------------------------------
According to Ronald R. Sussman, Esq., at Kronish Lieb Weiner &
Hellman LLP, in New York, Metromedia Fiber Network and Adelphia
Business Solutions, Inc., together with its debtor-affiliates,
have entered a number of contracts under which Metromedia
provides leased fiber "rings," or connections of underground
fibers, to the ABIZ Debtors in exchange for various monthly
payments. For months, Metromedia has provided these fiber rings
without receiving any payment.
Under a Fiber Optic Network Leased Fiber Agreement Leased Fiber
Order dated December 31, 1998, Metromedia leases four fibers in
multiple ring configurations in Chicago, Washington, D.C. and
Long Island to the ABIZ Debtors for a term of 240 months. The
ABIZ Debtors are required to make monthly lease payments
totaling $91,274 for the use of these rings:
-- Long Island Network (Ring 1): $27,900
-- Washington, D.C. Network:
* Ring 1, Ring 2, Ring 3: $3,665
* Ring 4: $32,980
* Ring 5: $15,705
-- Chicago Network: $11,024 (this amount was originally
$7,000, and was later changed to $11,024)
Under the Agreements, the Debtors are in arrears for monthly
recurring charges for the months April to September 2002:
Long Island Network $27,900
Washington, D.C. Network, Rings 1-3 3,665
Washington, D.C. Network, Ring 4 32,980
Washington, D.C. Network, Ring 5 15,705
Chicago Network 11,024
Illinois Ring 3 (Supp. 2) 18,860
New York City ring 25,000
Washington, D.C. location (Supp. 9) 1,816
--------
Total $136,950
For May, June, July, August and September 2002, Mr. Sussman
reports that the Debtors owe a building access charge of $250
and a monthly leased fiber charge of $752 under Supplement 5,
and a building access charge of $250 under Supplement 10. Thus,
these charges total $138,202 per month, or $691,010 altogether.
Furthermore, for March and April 2002, Metromedia billed the
Debtors separately for the $250 monthly building access charge
under Product Order No. 4, the $250 monthly access charge, and
$752 monthly leased fiber charge, both of which the Debtors owe
pursuant to Supplement 5. After prorating the March charges to
include only the postpetition period, the Debtors owe $275 under
Product Order No. 4 and $1,102 under Supplement 5.
Mr. Sussman adds that for the postpetition portion of March
through September 2002, the Debtors are obligated to pay
Metromedia $66,079 per month, which amount represents the
difference between the minimum payment Debtors agreed to pay
under Product Order #4, i.e., $235,047, and the current monthly
fiber lease amount of $168,968. This figure is reached by
subtracting the building access charge ($7,000) from the monthly
billing amount ($175,968). The total amount that Debtors are in
arrears during the postpetition period based on the difference
between the minimum payment amount and the current monthly fiber
lease amount is $403,081.90.
The Debtors also have outstanding obligations with respect to
the agreements between them and AboveNet and PAIX for
$388,964.41. The Debtors also owe $9,117.60 based on their
unpaid amount for the postpetition portion of March 2002. The
Debtors' unpaid balance for March 2002 is $91,176, and the
prorated postpetition amount is $9,117.60.
Thus, as reflected in the invoices for March, April, May, June,
July, August and September 2002, and in the invoice relating to
charges based on the difference between the contracted fiber
lease charge and actual monthly fiber leases, the total amount
the Debtors owe postpetition is $1,493,551.11.
Metromedia asks the Court to compel the Debtors to assume or
reject the Agreements without further delay.
At the time the Debtors filed for bankruptcy, Mr. Sussman
contends that there were outstanding obligations on both sides
of the Agreements which, if not performed, would constitute a
breach of contract. Thus, the Agreements are executory
contracts that the Court may order the Debtors to assume or
reject.
The Debtors can cure their default by paying Metromedia the
amount owed under the Agreement for services Metromedia has
provided. The Debtors owe Metromedia $1,493,551.11 for
postpetition services. In addition, the Debtors owe Metromedia
$1,427,923.90 on prepetition obligations, for which the Debtors
will also be responsible should they assume the executory
contracts. The total amount that Debtors owe Metromedia thus
comes to $2,921,475.01.
Administrative expense status should be granted when a creditor
performs under an executory contract prior to rejection and that
performance directly benefits the debtor-in-possession. Thus,
Mr. Sussman asserts that administrative expense status should be
granted to Metromedia.
Should the Court deny the request for an order compelling the
Debtors to assume or reject the Agreements, Metromedia asks the
Court, in the alternative, for permission to terminate the
Agreements pursuant to Sections 105 and 362(d)(1) of the
Bankruptcy Code. The Bankruptcy Code does not envision that
Metromedia should have to continue to provide services to the
Debtors without receiving any payment in return. Given that the
Debtors -- if not compelled to assume or reject the Agreements -
- would have little or no incentive to terminate them,
Metromedia asks the Court to lift the automatic stay and to
terminate the Agreements in the Metromedia Bankruptcy. In
addition, Metromedia wants the Court to grant administrative
expense status to all amounts the Debtors owe to Metromedia.
(Adelphia Bankruptcy News, Issue No. 17; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
ALLIANCE PHARMACEUTICAL: Agrees to Explore Options to Keep PFC
--------------------------------------------------------------
Alliance Pharmaceutical Corp., (Nasdaq:ALLP)(Nasdaq:ALLPD)
announced that Alliance, Baxter Healthcare Corp., and PFC
Therapeutics LLC have agreed to explore avenues to preserve
and/or realize the value of PFC Therapeutics and to negotiate in
good faith to achieve that result.
PFC Therapeutics was created as a joint venture owned equally by
Alliance and Baxter in May 2000 to oversee the further
development, manufacture, marketing, sales, and distribution of
Oxygent(TM) (perflubron emulsion) in the United States, Canada
and Europe.
In late August 2002, Alliance sent PFC Therapeutics a notice of
intended termination of the exclusive license it had granted the
joint venture based on the grounds that PFC Therapeutics had
failed to fulfill its obligations under the license agreement.
Alliance, Baxter and PFC Therapeutics have entered into an
agreement regarding Alliance's default notice and other
disputes, to hold those matters in abeyance while the parties
undertake confidential negotiations on how best to preserve
and/or realize the value of PFC Therapeutics.
Oxygent is an intravascular oxygen carrier intended to avoid the
need for donor blood in elective surgery. As reported
previously, representatives from Alliance and Baxter have had
positive interactions with selected European regulatory
authorities regarding plans for a new pivotal international
Phase 3 study involving patients undergoing various general
surgery procedures. The proposed study protocol was developed
utilizing data from a previously completed successful
international Phase 3 study. The primary endpoint of the new
pivotal study will be the avoidance of donor blood transfusions.
Oxygent is a sterile perfluorochemical emulsion that does not
contain human or animal blood components. It is universally
compatible with all blood types and has a shelf-life of
approximately 2 years.
Alliance Pharmaceutical Corp., is developing therapeutic and
diagnostic products based on its perfluorochemical and
surfactant technologies. Alliance's products are intended
primarily for use during acute care situations, including
surgical, cardiology and respiratory applications. Imagent
(perflexane lipid microspheres) is an ultrasound imaging agent
being marketed by Alliance in partnership with Cardinal Health
Inc. Additional information about the company is available on
Alliance's Web site at http://www.allp.com
ALLIED WASTE: Moody's Confirms Lower-B Ratings on Various Debts
---------------------------------------------------------------
Moody Investors Service confirmed the ratings for debt issued by
Allied Waste North America, Inc., its parent, Allied Waste
Industries, Inc., and its wholly-owned subsidiary, Browning-
Ferris Industries, Inc.
Allied Waste North America, Inc.
Ba3 rated $4.2 billion senior secured and guaranteed credit
facility maturing 2007;
Ba3 rated $700 million issue of 8.5% guaranteed senior secured
notes due 2008;
Ba3 rated $225 million issue of 7.375% guaranteed senior secured
notes due 2004;
Ba3 rated $600 million issue of 7.625% guaranteed senior secured
notes due 2006;
Ba3 rated $875 million issue of 7.875% guaranteed senior secured
notes due 2009;
Ba3 rated $600 million issue of 8.875% guaranteed senior secured
notes due 2008;
B2 rated $2 billion issue of 10% guaranteed senior subordinated
global notes due 2009.
Allied Waste Industries, Inc.
Ba3 senior implied rating;
B3 senior unsecured issuer rating;
B3 rated $1 billion issue of perpetual convertible preferred
stock.
Browning-Ferris Industries, Inc.
Ba3 rated $360 million issue of 7.4% secured debentures due
2035;
Ba3 rated $99.5 million issue of 9.25% secured debentures due
2021;
Ba3 rated $161.1 million issue of 6.375% senior secured notes
due 2008;
Ba3 rated $156.7 million issue of 6.1% senior secured notes due
2003;
Ba3 rated $69.4 million issue of 7.875% senior secured notes due
2005;
B1 rated industrial revenue bonds of BFI, which are effectively
subordinated to the substantial amount of secured debt.
Ratings outlook is negative.
The ratings reflects Allied's leading market position as the one
of the largest integrated solid waste company, its profitable
growth and the company's strong management. The ratings also
reflect Allied's high leverage, negative tangible equity,
sizeable goodwill and modest interest protection measures.
The company's negative outlook mirrors Moody's concern with
Allied's limited potential to substantially reduce debt via free
cash flow, in order to address the company's sizable bank debt
maturities over the intermediate term.
Allied Waste North America, Inc., based in Scottsdale, Arizona,
is a wholly owned operating subsidiary of Allied Waste
Industries, Inc. and is a vertically integrated solid waste
management company providing collection, transfer, recycling and
disposal services for residential, commercial and industrial
customers.
BELL CANADA: Court Decision Puts Pay Equity Settlement on Hold
--------------------------------------------------------------
On September 18, 2002, a Quebec Superior Court judge ruled in
favor of a group of former and current members of the Canadian
Telephone Employees' Association (CTEA). The judge was ruling on
their complaints concerning the pay equity settlement that had
been worked out by the CTEA and Bell two weeks ago. This ruling
puts an immediate halt to the vote on this settlement which was
supposed to take place today through Monday. The judge stated
there was inadequate information for members to vote on and
ruled the CTEA must provide full details of the settlement
between Bell and CTEA prior to the vote.
"This is a clear victory for fair pay for workers at Bell," said
CEP Ontario Region Vice-President Cecil Makowski. "We can only
hope that this delay of the vote will allow workers to fully
understand that this settlement is a bad deal and they should
vote to reject it," said Makowski.
The CEP launched a public campaign last month, and efforts will
continue to raise public awareness of Bell's shabby treatment of
women operators, who are owed over $400 million in wages,
interest and pension adjustments. CEP has not settled their
decade old pay equity dispute with Bell Canada.
"This ruling will certainly tarnish Bell's shiny corporate
image," said Joel Carr, CEP Administrative Vice-President. "All
along we have been saying that Bell has not been playing by the
rules. The settlement Bell offered these members is nowhere near
the money they are owed - it does nothing to reach pay equity,"
said Carr.
"And, once again, another very strong message is being sent to
Bell Canada demanding they start playing fairly and pay the
clerks and the operators the millions of dollars they are owed,"
said Makowski. "We will not go away until this is resolved."
Further actions against Bell Canada are planned during the
upcoming CEP Convention being held at the Toronto Convention
Center Sunday, September 29th through to Thursday, October 3rd.
BELL CANADA: Teams with Avaya to Provide Contact Center Solution
----------------------------------------------------------------
Bell Canada (NYSE/TSE: BCE) and Avaya (NYSE: AV) announced the
availability of a turnkey multimedia contact center solution
that allows businesses to outsource the ownership, design,
installation and management of their customer service systems.
Available to Bell Managed Solutions customers throughout Canada,
the fully managed solution gives companies the ability to
minimize investments in call center capital assets while still
having access to the latest customer relationship management
features.
"The Bell contact center solution gives a company's clients more
options on when, how and where they are able to access customer
service and help desk support," said Charles Salameh, vice-
president of Bell Canada's Managed Solutions & Data portfolio.
"Customers are provided with more convenience and choice in
order to contact a company's call center. The tightly
integrated nature of Bell's multimedia contact center also
enables businesses to better personalize the customer service
experience -- whether by phone, e-mail or the Web."
The Bell turnkey contact center solution provides Canadian
businesses with a cost-effective way to implement sophisticated
multimedia capabilities so that their customers can choose a
variety of communication vehicles to interact with help desk
service support, including: fax, self-serve voice response, e-
mail, voice, web chat and web-live voice. Businesses can now
take advantage of state-of-the-art routing, reporting and
management capabilities for all these types of customer service
interactions. The multimedia contact center solution delivers a
fully managed, customized solution that is ideally suited for
enterprise customers with 35 to 300 contact center agents.
Pricing is structured on a predictable per-agent basis each
month, with no initial capital outlay required. Any technology
upgrades to the contact center are provided by Bell, as the
assets are not owned by the enterprise.
Bell has partnered with Avaya, a leading global provider of
communications networks for businesses to deliver one of the
industry's most advanced IP-based contact center solutions.
Since Bell Canada owns and manages the contact center
infrastructure, the cost of building a contact center is
minimized. The solution also allows organizations to scale
infrastructure requirements and costs as their business grows,
and quickly introduce new customer service enhancing
capabilities when required. The new contact center solution
integrates Avaya Enterprise Class Internet Protocol
Solutions and Avaya Multimedia Contact Center software with Bell
Canada's advanced IP/broadband network.
"Bell's turnkey contact center solution really answered our
call," added Doug LaRose, vice-president of operations for
MillenniumCare, the first Bell Managed Solutions customer to
establish a virtual contact center. "The fact that it's fully
managed and owned by Bell helps us lower our total cost of
delivery, and the powerful functionality of the Avaya platform
keeps us competitive within our target markets. The beauty of
the solution is that we don't have to finance major up-front
capital investments or manage the contact center equipment.
Best of all, we can incrementally scale our requirements
and costs as we expand our business, that in the end, means our
team can focus on our core business of delivering exceptional
help desk services."
"We look forward to working further with Bell Canada to provide
business customers with other innovative options to enhance
their customer service capabilities using a managed services
model," said John Cameron, president of Avaya Canada. "The
announcement today is the first phase in our strategic
relationship with Bell Canada toward offering hosted contact
center solutions that will combine the strengths of both
companies to deliver high-quality customer service capabilities
without the need for businesses to locate call center equipment
on their premises."
Bell Managed Solutions provides a single source for end-to-end
communication solutions to help business customers improve e-
business productivity, protect company data and manage network-
based applications, services and content. Network-based and
fully managed from start to finish, Bell Managed Solutions
offers e-Business Solutions, Network Management and Outsourcing,
Security and Data Integrity, Converged Desktop Communications
and a comprehensive range of related Professional Services. For
more information please visit http://www.network-based.bell.ca
Bell Canada, Canada's national leader for communications in the
Internet world, provides connectivity to residential and
business customers through wired and wireless voice and data
communications, high speed and wireless Internet access, IP-
broadband services, e-business solutions, local and long
distance phone and directory services. Bell Canada is owned by
BCE Inc of Montreal. For more information please visit
http://www.bell.ca
Avaya Inc., designs, builds and manages communications networks
for more than one million businesses around the world, including
90 percent of the FORTUNE (R) 500. A world leader in secure and
reliable Internet Protocol telephony systems, communications
software applications and services, Avaya is driving the
convergence of voice and data applications across IT networks
enabling businesses large and small to leverage existing and new
networks to enhance value, improve productivity and gain
competitive advantage. For more information visit the Avaya
website: http://www.avaya.com
With Canadian headquarters in Markham, Ontario, and offices
across the country, Avaya employs more than 340 people in
Canada. For more information about Avaya, visit its Web site at
http://www.avaya.ca
BETHLEHEM STEEL: Bringing-In Credit Suisse as Financial Advisor
---------------------------------------------------------------
In response to President George W. Bush's directive for steel
companies to "get their houses in order," coupled with the
looming employee benefit payments for pension plan contributions
and retiree health and medical costs -- OPEB -- that may be
required in 2003, Bethlehem Steel Corporation and its debtor-
affiliates announced in July 2002 that they will actively pursue
a stand alone plan of reorganization. But in order to
effectively and diligently pursue this goal, the Debtors believe
that it is necessary to employ another financial advisor.
Against this backdrop, the Debtors seek the Court's authority to
employ and retain Credit Suisse First Boston Corporation as the
additional principal financial advisor, nunc pro tunc to July
15, 2002. Credit Suisse will assist the Debtors' Senior
Management and, at the same time, will complement the continuing
financial advisory services performed by Greenhill & Co. LLC.
Leonard M. Anthony, Senior Vice President and Chief Financial
Officer and Treasurer of Bethlehem Steel Corp., tells Judge
Lifland that Credit Suisse is perfect for the unique financial
advisory services required. Credit Suisse is a leading steel
sector investment bank and one of the world's leading corporate
finance and investment banking firms. It has been involved in
many major steel sector transactions during the last several
years and has raised more capital for steel companies than any
other investment bank. Credit Suisse professionals also have
provided restructuring and valuation services to debtors and
other constituents in distressed situations involving steel
companies and assisted those entities through mergers and
acquisitions by raising debt and equity capital.
Pursuant to the July 15, 2002 Engagement Letter, Credit Suisse
will assist the Debtors with:
(i) the resolution of the Debtors' needs to restructure their
operating costs and, in particular:
-- the attainment of a new Collective Bargaining
Agreement with the United Steelworkers of America --
USWA; or
-- other resolution of labor issues relating to staffing,
OPEB, outsourcing, wages, etc.
Credit Suisse will aid the Debtors in achieving a
Restructuring Transaction including the terms and timing
of the transaction. However, the Debtors will retain
their own legal counsel and accountants for legal and tax
advice;
(ii) the preparation of Offer Documents to the extent those
documents relate to the terms of a Restructuring
Transaction;
(iii) the formulation of a plan of reorganization or analyzing
any plan of reorganization proposed. Credit Suisse also
will assist in the plan negotiations and plan
confirmation process. It will assist with the
preparation and presentation of expert testimony relating
to financial matters, if required; and
(iv) the evaluation and negotiation of any M&A Transaction.
At any time during its term and prior to the expiration of one
year after the termination of the engagement, Credit Suisse will
have the right to act as a lead advisor in connection with any
merger transaction, joint venture, sale, or other combination
involving the Debtors or their affiliates, lead managing
underwriter, exclusive placement agent, or lead arranger for the
Debtors in connection with any sale of their securities or
incurrence of bank or similar financing.
In turn, the Debtors propose to pay Credit Suisse nonrefundable
fees and reimburse it for its reasonable out-of-pocket expenses:
(i) a nonrefundable cash fee of $150,000 per month with the
first installment payable on the date which is the one-
month anniversary of the execution of the Engagement
Letter and subsequent installments payable on each
subsequent monthly anniversary;
(ii) in connection with any Restructuring Transaction, a fee
equal to $6,000,000 payable upon consummation thereof,
provided that after the 13th month from the execution of
the Engagement Letter, the Monthly Fee will be credited
against the Completion Fee;
(iii) in connection with any M&A Transaction, a fee equal to
the greater of:
(a) $2,000,000; and
(b) an amount based on a percentage of the Aggregate
Consideration in connection with any M&A Transaction,
payable upon each closing in connection with that M&A
Transaction.
The aggregate amount of fees related to the M&A
Transaction will not exceed $6,000,000; and
(iv) without regard to whether any Restructuring Transaction
is consummated, the Debtors will pay to or on behalf of
Credit Suisse, promptly as billed, all reasonable out-of-
pocket expenses, including all reasonable fees and
expenses of its counsel incurred in connection with its
services rendered pursuant to the Engagement Letter.
Dhruv Narain, managing director of Credit Suisse, confirms that
Credit Suisse does not represent any entity in matters related
to these Chapter 11 cases. In addition, Credit Suisse is as a
"disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code. Credit Suisse does not represent any
interest adverse to the estates. Mr. Narain, however, relates
that Credit Suisse or an affiliate has provided or is providing
investment banking or other financial services to these entities
or their affiliates:
A. Bondholders: T.Rowe Price Associates, Astron CBO, Fleming CBO
Centennial Bank, American Century Fund, Juniper CBO, Bank
Leumi Le Israel, JP Morgan Chase, Bank of Hawaii/Pacific
Central Trust-Omnibus;
B. Retail Holdings: Prudential Securities, MSDW Inc., Salomon
Smith Barney, UBS PaineWebber, National, Financial Services,
Charles Schwab & Co., Bear Sterns & Co., Advest Inc., Goldman
Sachs & Co., ABN AMRO, DBAB Inc., Southwest Securities,
E*Trade;
C. Significant Stockholders: Fidelity Management & Research,
Greenway Partners L.P., Fidelity International LTD, Barclays
Global Investors, Lockheed Martin, Investment Management;
D. Significant Customers: General Motors Corp., Worthington
Industries Inc., Ryerson Tull Inc., Metals USA Inc., Olympic
Steel Inc. Ford Motor Co., Paloma Industries Ltd, Daimler
Chrysler AG, Silgan Holdings, Inc., NCI Building Systems,
Tyco International Ltd., Crown Cork & Seal Co. Inc., Leavitt
Tube Co. Inc., Kerry Steel Inc., Preussag AG, Nissan Motors
Ltd;
E. Significant Vendors: A T Massey Company, Acutus Gladwin, Air
Liquide America Corporation, Air Products & Chemicals Inc.,
AMCI Coal Sales Inc., AMCI Minerals Corporation, American
Radio & Microwave, Anthony Crane Rental Inc., Anthracite
Industries Inc., Applied Industrial Materials Corp.,
Armstrong/Kover Kwick Inc., BASF Corporation, Betz Dearborn
Inc., Carbide/Graphite Group Inc., Carnegie Group Inc.,
Chemical Specialties Inc., Cleveland-Cliffs/Hibbing Taconite,
CMI-Promex Inc., Columbia Energy Services, Columbia Gals
Transmission Corp., Cominco Ltd., Consolidation Coal Co.,
Corporate Express, Crown Technology Inc., CSX Transportation,
Dryden Oil Company Inc., Duferco-Maretrade Trading Co., E I
Dupont De Nemours & Co., Eaglebrook Inc., EDS Corp., Elf
Atochem North America, Elkem Metals Company, Fuchs Lubricants
Co., General Electric Co., Glbraltar Steel Corp., Henkel
Surface Technologies, Heraeus Electro Nite Co., Hilti Inc.,
HL Yoh Company LLC/Day & Zimmerman Inc., Ingersoll-Dresser
Pump Co., International Nickel Co. Inc., ITW/Signode
Industry, Kaiser Aluminum & Chemical, Kinetic Co., Kvaerner
Metals, Lincoln Electric Co., Martin Marietta Magnesia,
Marubeni America Corporation, Mettler-Toledo Inc., Minera
Mexico Internacional, Mitsubishi International Corp., Nalco
Chemical Co., Nelson, Noranda Sales Corp. Ltd., Norfolk
Southern Railway Co., Norton Co., Nova Steel Processing Inc.,
Oglebay Norton Engineered Materials, Oakite Products Inc.,
Olympic Steel Lafayette Inc., Pechiney Sales Corp., Peco
Energy Company, Penoles Metals & Minerals, PPG/Chemfil,
Praxair Inc., Praxair Surface Technologies, Quaker Chemical
Corporation, Raytheon Engrs & Constructors, Reynolds Metals
Company, Samitri S.A. Mineracao de Trindade, Shiloh
Corporation, Showa Denko Carbon Inc., Sigr Great Lakes Carbon
Corp., Strategic Minerals Corporation, US Vanadium
Corporation, Union Electric Steel Corp., Voest Alpine
Services & Technology, Vulcan Materials Co., WW Grainger
Inc., Worthington Steel Co.;
F. Utilities: First Energy Services, Niagara Mohawk Power Corp.,
PPL Utilities, PECO Energy Co., Air Liquide America Corp., BP
Energy Co., Conoco, Inc., PPL Energy Plus Co. LLC, Superior
Natural Gal Corp., Texaco Natural Gas, Inc., Marathon Oil
Co., Cinergy Marketing, Enron North America Corp., NIPSCO,
UGI Corp., National Fuel Gas, AT&T, EDS, Verizon Wireless,
Grand Central Sanitation, Waste Management of NY;
G. Professionals: Price Waterhouse Coopers, First Chicago Trust
Company of New York, Cravath Swaine & Moore;
H. Trustees: US Bank, Bank of New York, JP Morgan Chase, Bank
One, N.A., First Union National Bank;
I. Holders of Bank Debt: Societe Generale, Salomon Brothers,
Bank of America NT & SA, Bank of Austria Creditanstalt, Bank
of New York, JP Morgan Chase, First Union National Bank, Bank
One, N.A., The Industrial Bank of Japan, Ltd., GECC, Sumitomo
Mitsui, Banking Corporation, Fleet Bank, UBS AG (Warburg
Dillon Read), Wilmington Trust Company of PA, Allfirst Bank
of Maryland, Bank of Boston, Commonwealth of PA, Deutsche
Bank AG, Enron International Funding, GE Capital Services,
GECC, GTE Leasing Corporation, Mellon Bank, Mitsubishi
International Corp., PNC Bank, N.A., RZB Finance LLC, Sanwa
Bank Limited, State Street Bank, US Bank, VanGuard Group; and
J. Committee of Unsecured Creditors: U.S. Bank Trust, N.A., HSBC
Bank USA National City Bank, Wilmington Trust Company,
Electronic Data Systems Corporation, DTE Burns Harbor, LLC,
Pension Benefit Guaranty Corporation. (Bethlehem Bankruptcy
News, Issue No. 22; Bankruptcy Creditors' Service, Inc.,
609/392-0900)
DebtTraders reports that Bethlehem Steel Corporation's 10.375%
bonds due 2003 (BS03USR1) are trading between 7 and 9. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=BS03USR1for
real-time bond pricing.
BUDGET GROUP: Wants Court's Okay to Tap Buck as KERP Consultant
---------------------------------------------------------------
Budget Group Inc., and its debtor-affiliates anticipate that
they will need help in the formulation, analysis, negotiation,
and implementation of a Key Employee Retention Plan related to
their Chapter 11 cases.
The Debtors seek the Court's authority to employ and retain Buck
Consultants as their compensation consultants pursuant to
Sections 327(a) and 1107 of the Bankruptcy Code.
Buck will perform these services as the Debtors may request
including, but not limited to:
-- Assisting in the design and development of a KERP, which may
include these program components:
(a) a pay-to-stay component,
(b) a management incentive compensation plan;
(c) severance benefits, and
(d) a discretionary incentive pool;
-- Conducting appropriate research and benchmarking
market-competitive cash compensation levels, long-term
incentive opportunities and retention awards and severance
benefits prevalent in the general market and approved in
major bankruptcy cases;
-- Addressing issues related to the Company's human resource
needs;
-- Responding to issues that could influence the Company's Board
of Directors' ability to retain key people at all
organizational levels;
-- Presenting findings and recommendations to management and the
Board;
-- Representing the Company before professional advisors,
attorneys and if called upon, by the bankruptcy court; and
-- Any other services requested by the Company with respect to
human capital and human resource management.
Robert L. Aprati, the Debtors' Executive Vice President, General
Counsel and Secretary, tells the Court the Debtors desire to
retain Buck because of the extensive experience of its
professionals in providing employee compensation consulting
services in reorganization proceedings. Buck also enjoys an
excellent reputation for the services that it has rendered on
behalf of debtors in other large and complex Chapter 11 cases
including: The Loewen Group Ltd., PSINet, Excite-at-Home,
Lernout & Hauspie Speech Products NY, Service Merchandise
Company, Inc, Kmart Corporation, Sun Healthcare Group, Dairyman,
Burlington Industries Inc., Fruit-of-the-Loom, ICO Global,
Harnischfeger Industries Inc., Response Oncology, Ina, MCI
International Inc., Mobile Oil Corporation, Western Union, LTV
Steel Company Inc., Acme Steele Company, International Inc., GS
Industries Inc., Laclede Steel Company, Safety-Kleen Corp and
Wheeling-Pittsburgh Steel Corp. reorganizations.
The Debtors believe that Buck's experience and expertise in
compensation issues, especially in the context of bankruptcy and
reorganization proceedings, will inure to their benefit in
developing and consummating a retention plan for their key
employees.
The Debtors will be paying Buck its ordinary and customary rates
for matters of this type in effect on the date the services are
rendered. The Debtors will also reimburse all reasonable out-
of-pocket costs and expenses. Buck's billing rates currently
range from $140 to $660 per hour for its professionals. The
billing rates are subject to periodic increases in the normal
course of Buck's business. Buck already has received a retainer
in an amount equal to $200,000, which constitutes a general
retainer to be applied against the fees and expenses of Buck.
Collins E. McGovern, an Associate Principal at Buck, assures the
Court that the firm:
-- does not hold or, represent any interest adverse to the
Debtors' estates in matters upon which it is to be
engaged, and
-- is a "disinterested person," as defined in the Bankruptcy
Code.
However, Buck has been retained in matters unrelated to these
cases, by these parties:
A. Institutional Lenders: Credit Suisse First Boston, The Bank
of Mitsubishi Ltd. - New York Branch Bank of America NA,
Commerzbank AG-Chicago Branch, General Electric Capital
Corporation and Merrill Lynch Pierce Fenner & Smith Inc.;
B. The Top 50 Largest Unsecured Creditors: JP Morgan Chase,
Credit Suisse First Boston Morgan Stanley & Co. Inc., Salomon
Smith Barney, Computer Science Corporation, CSC Computer
Services Prudential Securities Incorporated and Worldspan;
C. Insurers: Great American (Life Ins.), Liberty Mutual and
Zurich Insurance;
D. Major Customers: Ford Motor Company;
E. Known Indenture Trustees to Debtors: Credit Suisse First
Boston and JP Morgan Chase; and
F. Retained Professionals: Ernst &Young, Jefferies & Co. and
KPMG LLP. (Budget Group Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
DebtTraders reports that Budget Group Inc.'s 9.125% bonds due
2006 (BD06USR1) are trading between 18 and 20. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=BD06USR1for
real-time bond pricing.
CALPINE: Selling BC Oil & Gas Assets to Pengrowth for $248 Mill.
----------------------------------------------------------------
Calpine Corporation (NYSE: CPN) has entered into an agreement
with Calgary, Alberta-based Pengrowth Corporation (Toronto: PGF-
U), administrator of Pengrowth Energy Trust, for Pengrowth to
acquire substantially all of Calpine's British Columbia oil and
gas properties for approximately US$248 million, or
approximately C$387.5 million. Of the total consideration,
approximately 60% is to be paid in cash, with the
remainder to be paid through the purchase in the open market and
tendering of Calpine debt securities by Pengrowth. The assets
represent approximately 171 billion cubic feet of gas equivalent
proved reserves (net of royalties), 48 percent of which are oil
and liquids. Calpine retains a call on future purchases of oil
and gas production from these assets. The transaction is
effective July 1, 2002 and is scheduled to close on or about
October 1, 2002.
"This divestiture further enhances Calpine's liquidity and
financial strength," stated Calpine's CFO and executive vice
president Bob Kelly. "It also is consistent with Calpine's
strategy of increasing our cash position while retaining the
long-term value of our core power generation business and
provides an important call on gas produced by these assets."
The British Columbia assets represent approximately 167,000 net
developed acres and 380,000 net undeveloped acres of petroleum
and natural gas rights. Current production from these assets is
approximately 75.2 million cubic feet of gas equivalent per day
(net of royalties).
Based in San Jose, California, Calpine Corporation is an
independent power company that is dedicated to providing
customers with clean, efficient, natural gas-fired power
generation. It generates and markets power through plants it
develops, owns and operates in 23 states in the United States,
three provinces in Canada and in the United Kingdom. Calpine
also is the world's largest producer of renewable geothermal
energy, and it owns approximately 1.0 trillion cubic feet
equivalent of proved natural gas reserves in Canada and the
United States. The company was founded in 1984 and is publicly
traded on the New York Stock Exchange under the symbol CPN. For
more information about Calpine, visit its website at
http://www.calpine.com
Calpine's June 30, 2002 balance sheet shows a working capital
deficit of about $369 million and a greater than 4:1 debt-to-
equity ratio.
DebtTraders reports that Calpine Corp.'s 8.750% bonds due 2007
(CPN07USN1) are trading between 46 and 48. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=CPN07USN1for
real-time bond pricing.
CAMBRIAN COMMS: Files Petitions for Chapter 11 Reorganization
-------------------------------------------------------------
Cambrian Communications filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code in
the United States Bankruptcy Court. This will allow the Company
to continue operating in the ordinary course of business while
it develops a reorganization plan.
"Like most of our industry peers, these steps are necessary in
order to restructure our business in the wake of the
telecommunications shakeout currently underway", said Brian
Oliver, Chairman and Chief Executive Officer of Cambrian. "This
action provides us the best opportunity to operate our core
business and provide quality service to our customers, while we
reorganize to align our business with the new industry
environment."
CAMBRIAN COMMS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: Cambrian Communications LLC
12900 Federal Systems Park Drive
Suite 2-D
Fairfax, Virginia 22032
703-788-4000
Bankruptcy Case No.: 02-84699
Debtor affiliates filing separate chapter 11 petitions:
Entity Case No.
------ --------
Cambrian Holdings LLC 02-84700
Chapter 11 Petition Date: September 20, 2002
Court: Eastern District of Virginia (Alexandria)
Debtors' Counsel: Bradford F. Englander, Esq.
Linowes and Blocher LLP
1010 Wayne Ave, Tenth Floor
Silver Spring, Maryland 20910
301-650-7021
Fax : 301-495-9044
Estimated Assets: $10 to $50 Million
Estimated Debts: $50 to $100 Million
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Cisco Systems Capital $68,860,367
Corp.
170 West Tasman Drive
San Jose, CA 95134-1619
Attn: David A. Hoenig, Esq.
Murphy Sheneman Julian
& Rogers
101 California Street, #3900
San Francisco, CA 94111
415-398-4700
Broadview Networks $669,568
Attn: Kenneth A. Schulman
69 Maiden Lane, 27th Floor
New York, NY 10038
Zellen Associates, Inc. Construction Services $236,402
Vista IT, Inc. Trade Debt $150,626
24/7 Cable Company Trade Debt $123,800
National Cable Construction Services $123,637
Construction
Verizon Trade Debt $108,131
Columbia Transmission Trade Debt $103,391
Comm.
EXFO America Trade Debt $93,124
Gilden Advertising Advertising - Public $82,353
Relations Services
Latham & Watkins Professional Services $79,105
ACSI Concentration Trade Debt $61,650
ITouch Communications Trade Debt $60,463
Frazier CATV Construction Construction Services $55,608
Switch and Data $52,137
Network Technologies Construction Technologies $51,460
Group
Edwards & Kelsey $51,323
Telinks, LLC Trade Debt $50,329
FiberNet Telecom Group Trade Debt $47,962
PriceWaterhouseCoopers Professional Services $39,070
CAMTEK LTD: Fails to Maintain Nasdaq Min. Listing Requirements
--------------------------------------------------------------
Camtek Ltd. (Nasdaq: CAMT), a developer, manufacturer and
marketer of intelligent optical inspection systems and related
software products used to enhance processes and yields for the
Printed Circuit Board, Semiconductor Packaging, and
Microelectronics industries, is refining its guidance for
expected revenues for Q3 2002 to the range of $6.5-7.2 million.
The previously released guidance was in the range of $6.0-7.5
million. The expected revenues include income recognition for
three Pegasus systems from a major Taiwanese semiconductor
assembly house.
"Our expected revenues for the third quarter of 2002 represent a
continuous improvement over the results of the first and second
quarters," commented Rafi Amit, Camtek's CEO. "Adjusting our
guidance to a narrower range reflects our higher level of
confidence as we get closer to the quarter end."
Rafi Amit continued, "The Pegasus is our new entry in the Chip-
Scale Packaging arena in East Asia, one of the market segments
with the higher growth potential. Having multiple systems
delivering high customer satisfaction, 24 hours a day, 7 days a
week for several months now, indicates the product maturity and
significant sales potential. We expect that this encouraging
performance at a global industry leader will lead to additional
opportunities."
The Company further announced that it had received a letter from
Nasdaq, stating that, for a period of 30 consecutive trading
days, the Company's ordinary shares had closed below the minimum
price of $1.00 per share, and that its market value of publicly
held shares was below $5 million, as required for continued
listing on the Nasdaq National Market. The Company has until
November 7, 2002, to regain compliance with the minimum $1.00
per share requirement and until December 4, 2002, to regain
compliance with the minimum market value of publicly held shares
requirement. Otherwise Nasdaq will notify the company that its
shares will be delisted from the Nasdaq National Market. At that
time the Company will be able to appeal the determination before
a Listing Qualifications Panel. Camtek is currently reviewing
its options to meet the requirements for continued listing on
Nasdaq, as well as the option of transferring its shares to
Nasdaq Small Cap Market.
The Company also released an update regarding its stock
repurchase program, announced on September 17, 2001. To date,
the company has purchased in the open market a total of 528,000
shares of the company -- 328,000 of which were purchased in the
recent past -- for a total consideration of approximately
$806,000.
Commenting on the program, Rafi Amit stated, "The repurchase of
our stock is in line with our strategy, which was announced last
September. The repurchase reflects our belief that our stock is
greatly undervalued, relative to the real worth of the Company."
As of September 17, 2002, the company has approximately
28,000,000 shares outstanding.
Camtek Ltd., designs, develops, manufactures, and markets
technologically advanced and cost-effective intelligent optical
inspection systems and related software products, used to
enhance processes and yields for the printed circuit boards,
semiconductor packaging and microelectronics industries. Camtek
is a public company since 2000, with headquarters in Migdal
Ha'Emek, Israel and subsidiaries in the U.S., Europe, Japan, and
East Asia. This press release is available at
http://www.camtek.co.il
CASH TECH.: Needs New Capital Infusion to Continue Operations
-------------------------------------------------------------
Cash Technologies, Inc., is a Delaware corporation, incorporated
in August, 1995. Its wholly-owned subsidiaries are National Cash
Processors, Inc., a Delaware corporation, incorporated in May,
1994, which became a subsidiary in January, 1996; CoinBank
Automated Systems, Inc., a Delaware corporation, incorporated in
November, 1995; and CoinBank Automation Handels GmbH, Salzburg,
Austria incorporated in February, 1998. In December, 2001, Cash
Technologies created a new subsidiary, Cintelia Systems Inc., a
Delaware corporation and in June, 2002 created another
subsidiary CT Holdings, LLC., also a Delaware corporation of
which Cash Technologies currently owns 86.6%.
The Company's business model has evolved over the last three
years from a business based upon currency processing in its Los
Angeles facilities and retail coin processing through its
CoinBank machines, to a business based upon the Company's
proprietary transaction processing technology called E-commerce
Message Management Architecture, or EMMA. Although Cash intends
to continue operations in its original two lines of business,
much of its operations in the last three years have been
refocused upon development of EMMA and marketing of this new
transaction processing technology. The Company anticipates that
most of its future growth will be based upon EMMA, although
there can be no assurance that the Company will be able to
generate revenue from this business line and it has not
generated any EMMA related revenue to date. EMMA is designed to
interface with Cash's various e-commerce partners and to
seamlessly connect with financial networks, particularly the
four main channels through which trillions of dollars in
commerce are transacted each year:
(1)the ATM network; (2)the credit card network; (3)the Automated
Clearing House (ACH) network; and (4) cash.
The EMMA transaction processing system allows individuals with
no ATM card or credit card to access these four channels and
obtain the expanded number of services that are offered through
them, and not otherwise easily accessible. For consumers, EMMA
will result in access to these services and products through ATM
machines and Point of Sale terminals located at retail outlets,
including supermarkets, general merchandisers and convenience
stores and others. Utilization of EMMA will allow retail
establishments such as grocery supermarkets, banks, brokerage
firm offices, check cashing establishments and other commercial
outlets to provide consumers with greater financial services
which may result in increased revenues to such establishments.
For every transaction processed through EMMA, Cash Technologies
intends to receive a transaction fee.
Cash Technologies has a history of incurring losses, which have
resulted in its independent accountants issuing opinions
containing doubts about the Company's ability to continue as a
going concern.
For the last two fiscal years ended May 31, 2002 and 2001, Cash
sustained net losses of $3,852,351 and $4,255,570, respectively.
At May 31, 2002 the Company had a working capital deficit of
$8,509,738 compared to $9,419,126 for the fiscal year ended May
31, 2001. On September 9, 2002, it had available cash of
approximately $100,000. Its capital requirements have been and
will continue to be significant, and its cash requirements have
exceeded cash flow from operations since inception. The Company
says that it is in dire need for capital to continue to operate.
It has been dependent on the proceeds of its initial public
offering in July 1998, and private placements of its securities
since then of its debt and equity securities to satisfy working
capital requirements. It will be dependent upon the proceeds of
future private placement offerings or other public offerings to
fund development of the EMMA technology, its short-term working
capital requirements, to fund certain marketing activities and
to continue implementing its business strategy. There can be no
assurance it will be able to raise necessary capital. In its
reports accompanying the audited financial statements for the
fiscal years ended May 31, 2002 and 2001, Cash's independent
auditors included an explanatory paragraph wherein they
expressed substantial doubt about the Company's ability to
continue as a going concern. During the current fiscal year, the
Company has continued to generate losses and will continue to
incur losses for the foreseeable future. Cash has generated
limited revenues since inception, and does not expect to
generate significant revenues within the next fiscal year.
For the fiscal year ended May 31, 2002 and the fiscal year ended
May 31, 2001, the Company had net revenue of only $385,977 and
$491,180, respectfully.
Cash Technologies has an immediate need for capital and if
unable to obtain the financing needed, its business may fail.
For the fiscal years ended May 31, 2002 and 2001, the Company
had outstanding liabilities of approximately $11,639,924 and
$9,596,006 respectfully, which debts it is unable to
repay. In the event that its plans or assumptions relating to
its operations change or prove to be inaccurate or if the net
proceeds of future private placements or other public offerings
together with revenues generated from operations prove to be
insufficient (due to, among other things, unanticipated
expenses, increased competition, unfavorable general economic
conditions, decreased demand for its products and services,
inability to successfully market its products, or other
unforeseen circumstances), the Company could be required to seek
other alternatives. Cash currently requires and expects, over
the next fiscal year, to continue to need substantial additional
capital in order to continue operations. There can be no
assurance that additional financing from any source will be
available to it when needed, on commercially reasonable terms,
or at all. To the extent that it obtains additional financing
through the issuance of additional equity securities, any such
issuance may involve substantial dilution to its then-existing
stockholders. Additionally, to the extent that the Company
incurs indebtedness or issue debt securities, it will be subject
to all of the risks associated with incurring substantial
indebtedness, including the risks that interest rates may
fluctuate and cash flow may be insufficient to pay principal and
interest on any such indebtedness. Any inability to obtain
additional financing when needed, will have a material adverse
effect on Cash Technologies that could require it to
significantly curtail or possibly cease its operations. Cash has
notes outstanding of approximately $3,661,674 principal amount,
of which approximately $1,075,000 are in default. It also owes
approximately $3,809,778 to G.E. Capital, which it is also
unable to repay at this time on the original terms. There can be
no assurance that G.E. Capital or the noteholders will not
declare an event of default and demand immediate payment or seek
to attach Company assets, including its patented technology.
CHASE COMMERCIAL: S&P Lowers Ratings on 3 Series 2000-1 Classes
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
classes J, K, and L of Chase Commercial Mortgage Securities
Corp.'s commercial mortgage pass-through certificates series
2000-1 and removed them from CreditWatch with negative
implications, where they were placed on September 13, 2002. At
the same time, ratings are affirmed on 11 classes of the same
series.
The lowered ratings reflect the potential losses to the trust
resulting from the largest loan in the pool, as well as risks
associated with several of the watchlisted loans.
The affirmations reflect the stable operating performance of the
loan pool.
The largest loan ($41.9 million, or 6.1% of the loan pool
balance) has been REO since February 2002. The loan is secured
by a 396,022 square foot retail center built in 1998 and
anchored by a Kmart store, Regal Cinemas, Winn-Dixie Stores
Inc., La Ideal Baby Store, The Rag Shop, and The Party
Supermarket, located in Pembroke Pines, Fla. The Kmart store is
not scheduled to close. In March 2002, the special servicer,
Lennar Partners Inc., received an updated appraisal that valued
the property at $38 million. The most recent debt service
coverage ratio was 0.99 times, with 91% occupancy.
Standard & Poor's recently visited the property and found it to
be in good condition. However, the property is located in a
market that is saturated with competitors. Standard & Poor's
believes that the close proximity of a Wal-Mart store
(approximately one mile away), another Kmart store
(approximately three miles away), and a 24-screen movie theater
(approximately two miles away) increases the risk of potential
losses.
Also of concern is the second largest loan ($41.8 million, or
6.1% of the loan pool balance), which is on the master
servicer's, GEMSA Loan Services L.P., watchlist due to near-term
lease maturities at the office property located in Santa Clara,
Calif. (Silicon Valley), and secures the loan. The year-end 2001
DSCR was 1.96x, with 81% occupancy. As of August 2002, this loan
is current with debt service payments. Standard & Poor's recent
visit to the property revealed that the property is in excellent
condition and in a good location. However, the submarket vacancy
is 40%, which will make it more difficult for the owner to
secure new tenants or lease renewals. With the exception of the
current vacancies, which totaled 9% as of September 2002, a
recent rent roll revealed that there will be another 30% of
leased space rolls by year-end 2003.
As of August 2002, the servicer placed 15 loans ($153.14
million, or 22.4% of the loan pool balance) on its watchlist for
various reasons. The sixth largest loan, secured by an office
property located in Costa Mesa, Calif., is also on the watchlist
due to several near-term lease expirations. As of August 2002,
all of the watchlist loans are current with debt service
payments. GEMSA does not anticipate any eminent defaults at this
time. Standard & Poor's stressed the REO and some of the weaker
performing watchlist loans in its analysis, and the current and
stressed credit enhancement levels adequately support the
assigned ratings.
The weighted average DSCR for the loan pool increased to 1.45x
(based on 86% of the loan pool reporting 2001 financials) from
1.43x at issuance. As of August 2002, the pool balance was
$684.42 million, with 91 loans, down from $697.07 million at
issuance. To date, there have not been any realized losses or
appraisal reductions. Multifamily, retail, and office are the
three most common property types, representing 43%, 29%, and 17%
of the outstanding pool balances, respectively. California and
Ohio are the only two states that exceed a 10% concentration, at
25% and 14%, respectively. The top 10 loans represent 39.5% of
the mortgage pool, and nine of the 10 loans reported a year-end
2001 DSCR of 1.54x.
Ratings Lowered And Removed From Creditwatch Negative
Chase Commercial Mortgage Securities Corp.
Commercial mortgage pass-thru certs series 2000-1
Class Rating Credit Support (%)
To From
J B B+/Watch Neg 3.31
K B- B/Watch Neg 2.80
L CCC+ B-/Watch Neg 2.29
RATINGS AFFIRMED
Chase Commercial Mortgage Securities Corp.
Commercial mortgage pass-thru certs series 2000-1
Class Rating Credit Support (%)
A1 AAA 26.99
A2 AAA 26.99
X AAA N/A
B AA 21.64
C A 16.80
D A- 15.28
E BBB 11.71
F BBB- 10.18
G BB+ 6.62
H BB 5.86
I BB- 4.97
N/A-Not applicable
CRESTED CORP: Grant Thornton Expresses Going Concern Doubt
----------------------------------------------------------
Crested Corp., (a Colorado corporation formed in 1970) and its
parent company U.S. Energy Corp., are in the business of
acquiring, exploring, developing and/or selling or leasing
mineral properties.
In fiscal 2002, most of its business activity with its parent
USE was directed to the coalbed methane business, i.e.,
acquiring acreage, drilling exploratory wells, testing the
wells, and negotiating the purchase of a coalbed methane
producing field. The coalbed methane gas business is conducted
through Rocky Mountain Gas, Inc., a Wyoming corporation owned
51.2% by USE and 40.5% by Crested. At May 31, 2002, Crested is a
70% majority-owned subsidiary of USE. Properties of Rocky
Mountain Gas are held in Wyoming and southeastern Montana. Rocky
Mountain Gas holds approximately 280,486 gross mineral acres of
coalbed methane properties.
Crested also holds an interest in cash flow produced from
commercial properties, most of which are located in Utah that
were acquired as a part of a uranium property and mill
acquisition. In fiscal 2002, only the commercial properties
produced revenues. However, presently the Company's business
priority is focused mainly on CBM; mining activities may be
reactivated in the future if the commodities' prices improve and
the capital markets for mining improve significantly.
The Company also owns interests in mining assets, all of which
now are in "shut down" status. The uranium properties are
located on Sheep Mountain in Wyoming and in southeast Utah; it
also holds a royalty interest in uranium claims on Green
Mountain, Wyoming, now held by Kennecott Uranium Company. The
gold property is located in Sutter Creek, California, east of
Sacramento. Interests are held in other mineral properties
(principally molybdenum), but are either non-operating interests
or undeveloped claims.
The Company had no revenues during the fiscal year ended May 31,
2002. Mineral Revenues decreased $60,300 from revenues for the
previous year. This decrease was a result of Phelps Dodge
suspending the payment of advance royalties on the Mt. Emmons
molybdenum property. The Company and USE have initiated legal
action which management believes will cause Phelps Dodge to
reinstate the advance royalty payments.
During fiscal 2001, the Company recognized $3,566,400 in
litigation settlement revenues. These revenues came as a result
of a settlement of litigation with Kennecott Energy on the Green
Mountain Mining Venture. Of this amount, $2,000,000 was a non-
cash recognition of a deferred purchase option for cash received
in a prior period. No litigation settlement revenues were
recognized during fiscal 2002.
Costs and expenses decreased by $14,100 during fiscal 2002 from
fiscal 2001. This decrease was as a result of reductions in the
Company and USE's workforce. The reduced workforce reduced the
Company's obligation to fund retirement benefits. The Company
recorded an equity loss from USECC and RMG in the amounts of
$1,823,900 and $2,496,700 for fiscal 2002 and 2001,
respectively.
Operations for fiscal 2002, resulted in a loss of $1,998,800
compared to net earnings of $1,205,700 for fiscal 2001.
Crested Corporation has generated losses in two of the last
three years, as a result of holding costs and permitting
activities in the mineral segment along with impairments of
mineral assets. It has maintained some of its investments in
gold and uranium properties that continue to generate no
operating revenues. These properties require expenditures for
items such as permitting, care and maintenance, holding fees,
corporate overhead and administrative expenses. Success in the
minerals industry is dependent on the price that a producer can
receive for its minerals. Crested cannot predict what the long
term price for gold and uranium will be and therefore cannot
predict when, or if, it will generate net income from these
operations. It believes it has sufficient capital resources to
maintain its mineral properties on a standby basis through
fiscal 2002. Development activities of the mineral properties
and expansion of commercial operations are dependent on the
Company obtaining equity financing or commercial loans. It may
also be necessary to generate cash through the sale of equipment
or other assets.
At May 31, 2002, Crested is committed to be in the coalbed
methane business well into the future. Uranium prices and market
projections are being evaluated. Decisions to liquidate part or
all of the Company's uranium holdings are being considered. The
Company is also evaluating its commitment to the gold business
and at what time the price for gold may recover.
Grant Thornton LLP of Denver, Colorado, in its independent
Auditors Report on the Company's financial condition states, in
its July 18, 2002 audit report: "[T]he Company has experienced
significant losses from operations. In addition, the Company has
a working capital deficit of approximately $7,557,400 as of May
31, 2002, the substantial portion of which is owed to affiliated
entities. These factors raise substantial doubt about the
ability of the Company to continue as a going concern."
DELANEY VINEYARDS: Bringing-In Forshey & Prostok as Attorneys
-------------------------------------------------------------
Delaney Vineyards, Inc., seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to sign-up Forshey &
Prostok, LLP as its bankruptcy attorneys.
The Debtor submits that Forshey & Prostok, LLP is particularly
well suited for the type of representation it required in this
case. Forshey & Prostok has substantial real estate, litigation
and bankruptcy expertise. Its bankruptcy/restructuring and
creditors' rights section has five full-time attorneys. Forshey
& Prostok is familiar with the business and financial affairs of
the Debtor, has particular experience in chapter 11 cases, and
is well qualified to represent the Debtor's interest.
The Debtor wants Forshey & Prostok to:
a) advise of its rights, powers and duties as a debtor and
debtor in possession continuing to operate and manage
their businesses and properties;
b) review the nature and validity if liens asserted against
the property of the Debtor and advising the Debtor
concerning the enforceability of such liens;
d) advise the Debtor the actions that it might take to
collect and to recover property for the benefit of the
Debtor's estate;
e) prepare on behalf of the Debtor, all necessary and
appropriate applications, motions, pleadings, draft
orders, noticed, schedules and other documents, and
reviewing all financial and other reports to be filed in
these chapter 11 cases;
f) advise the Debtor concerning, and prepare responses to,
applications, motions, pleadings, notices and other
papers that may be filed and served in these chapter 11
cases;
g) counsel the Debtor in connection with the formulation,
negotiation and promulgation of plans of reorganization
and related documents; and
h) perform all other legal services for and on behalf of
the Debtor that may be necessary or appropriate in the
administration of this chapter 11 case and its business,
including advising and assisting the Debtor with respect
to debt restructurings, stock or asset dispositions,
general corporate securities, tax, finance, real estate
and litigation matters.
Forshey & Prostok will charge the Debtor in its current hourly
rates:
Partners $285 - $295
Associates $125 - $200
Of Counsel $200 - $250
Paralegals $ 60 - $ 85
Delaney Vineyards, Inc., along with the Delaney Family, LP, owns
and operates Delaney Winery. Delaney Winery produces premium
wines, including cabernet sauvignon, merlot, chardonnay,
sauvignon blanc and sparkling wines. The Company filed for
chapter 11 protection on August 30, 2002. J. Robert Forshey,
Esq., at Forshey & Prostok represents the Debtor in its
restructuring efforts.
DIAL CORP: Ratifies 4-Year Labor Agreement with Union
-----------------------------------------------------
On Sunday, September 15, 2002, the union at Dial Corporation's
Aurora, Illinois manufacturing facility ratified a new four-year
labor agreement. The Aurora plant manufactures Dials' personal
cleansing products. The new agreement expires in September 2006
and covers approximately 300 employees.
* * *
As reported in Troubled Company Reporter's September 3, 2002
edition, the union at The Dial Corporation's Aurora, Illinois
manufacturing plant voted down a four-year contract that had
been unanimously recommended by the union negotiating committee.
The Aurora plant manufactures Dial's personal cleansing
products. This union's contract expired at the end of August
2002 and the approximate 300 covered employees currently are
working without a contract. While Dial is disappointed that the
union voted against this contract, it is continuing to work with
the union to try to reach agreement on a mutually acceptable
four-year contract.
Based on continuing talks with the union, the positive tone of
those talks and Dial's belief that there are no significant
issues that would preclude from reaching an agreement, Dial
currently does not believe that there will be any work stoppage
at the Aurora plant. If unable to reach a mutually acceptable
agreement however, Dial could experience a work stoppage.
Sales have steadily declined since 1999 and losses have
followed. At June 29, 2002, this billion-dollar company's
balance sheet showed $72 million in total shareholder equity.
Standard & Poor's rates the Company's $250,000,000 of 7% Notes
due August 15, 2006, and $250,000,000 of 6-1/2% Notes sue
September 15, 2008, in low-B territory. The Company's common
stock trades north of $20 per share today.
The Dial Corporation, headquartered in Scottsdale, Ariz., is one
of America's leading manufacturers of consumer products,
including Dial soaps, Purex laundry detergents, Renuzit air
fresheners, Armour Star canned meats, and the Sarah Michaels and
Freeman Cosmetics specialty personal care brands. Dial products
have been in the marketplace for more than 100 years. For more
information about The Dial Corporation, visit the Company's Web
site at www.dialcorp.com.
ELECTROPURE INC: Needs Fresh Financing to Continue Operations
-------------------------------------------------------------
ElectroPure Inc. has two reportable segments: water purification
("EDI/Membrane"), (formerly reported separately under "ED I" and
"Membrane") and fluid monitoring ("MI", a start up segment). The
EDI segment produces water treatment modules for sale to
manufacturers of high purity water treatment systems. The
Membrane segment formerly produced ion exchange membranes for
outside customers for use in electrodialysis,
electrodeionization, electrodeposition and general
electrochemical separations. The MI segment is developing
technology that is anticipated to enable real time
identification of contamination in fluids.
The Company's net sales increased in fiscal 2002 by $281,249 as
compared to fiscal 2001 which reflects the stronger demand for
its EDI products and an increased penetration of the expanding
ultrapure water market. For the three months ended July 31,
2002, net sales decreased by $160,788 over the comparable prior
year period primarily due to quarterly budgeting cycles of the
end-user of the Company's products coupled with a general
economic downturn.
Cost of sales consists primarily of purchased materials, labor
and overhead (including depreciation) associated with product
manufacturing, royalty costs, warranties and sustaining
engineering expenses pertaining to products sold. Cost of sales
as a percentage of sales decreased to 87% from 98% for the nine
months ended July 31, 2002 and 2001, respectively. This decrease
is predominantly due to increased unit sales volume over the
nine months in fiscal 2002, which allowed for fixed costs to be
allocated over a higher number of EDI products produced. The
three months ended July 31, 2002 showed an increase in costs as
a percentage of sales at 97% compared to the comparable three
months in 2001 at 70%. The increase over the prior period
reflects the Company's decision to avoid downsizing in the face
of a what it believes has been a short term lag in sales volume
during the current period.
In the opinion of management, available funds, funds anticipated
to be realized on the refinancing of its building, and proceeds
to be realized from the sale of EDI products currently on order,
are expected to satisfy its working capital requirements through
October 2002. The Company's independent auditor has included an
explanatory paragraph in its report on the financial statements
for the year ended October 31, 2001 which raises substantial
doubt about ElectroPure's ability to continue as a going
concern.
Currently, ElectroPure is seeking working capital through
manufacturing arrangements, strategic partnerships, loans and/or
the sale of private placement securities so that it may expand
its EDI marketing efforts and further the MIT research program.
This approach is intended to optimize the value of its EDI
technology and the MIT System as the Company discusses licensing
and/or joint venture arrangements with potential candidates. The
implementation of these strategies will be dependent upon
ElectroPure's ability to secure sufficient working capital in a
timely manner.
The Company will be required to raise substantial amounts of new
financing in the form of additional equity investments, loan
financings, or from strategic partnerships, to carry out its
business objectives. There can be no assurance that it will be
able to obtain additional financing on terms that are acceptable
to it and at the time required by it, or at all. Further, any
financing may cause dilution of the interests of its current
shareholders. If unable to obtain additional equity or loan
financing, its financial condition and results of operations
will be materially adversely affected. Moreover, estimates of
cash requirements to carry out its current business objectives
are based upon various assumptions, including assumptions as to
revenues, net income or loss and other factors, and there can be
no assurance that these assumptions will prove to be accurate or
that unbudgeted costs will not be incurred. Future events,
including the problems, delays, expenses and difficulties
frequently encountered by similarly situated companies, as well
as changes in economic, regulatory or competitive conditions,
may lead to cost increases that could have a material adverse
effect on ElectroPure and its plans. If unsuccessful in
obtaining loans or equity financing for future developments, it
is unlikely that ElectroPure will have sufficient cash to
continue to conduct operations, particularly research and
development programs, as currently planned. Management believes
that in order to raise needed capital, the Company may be
required to issue debt at significantly higher interest rates or
equity securities at selling prices that are significantly lower
than the current market price of its common stock.
No assurances can be given that currently available funds will
satisfy Company working capital needs for the period estimated,
or that the Company can obtain additional working capital
through the sale of common stock or other securities, the
issuance of indebtedness or otherwise or on terms acceptable to
the Company. Further, no assurances can be given that any such
equity financing will not result in a further substantial
dilution to the existing shareholders or will be on terms
satisfactory to the Company.
EMPRESA ELECTRICA: Fitch Drops Edenor's Local Currency to DD
------------------------------------------------------------
Fitch Ratings has downgraded the local currency rating assigned
to Empresa Distribuidora y Comercializadora Norte S.A. (Edenor)
to 'DD' from 'C'. The rating for the Gain Trust Notes remains
unchanged at 'C' with a Rating Watch Negative status.
The rating action reflects the non-payment of principal in an
amount of $37.5 million on Sept. 15, 2002 under the US$250
million FRN Notes. The FRNs were originally issued under the
company's euro medium-term notes program. At present, the
company is undergoing a negotiation process with all its
creditors for the extension of all of its principal maturities
until March 2003. These negotiations are part of a general
rescheduling of the Company's debt (approximately US$510
million).
Until mid-September, Edenor has been current on its interest
payments, but the transfer abroad to the FRN's bondholders of a
payment due on Sept. 15, 2002, (approximately US$356,000) is
still subject to Central Bank's authorization. The next interest
payment date for the gain trust notes is Dec. 15, 2002. Edenor
estimates it will be able to honor all of its interest services,
subject primarily to the dynamic of the exchange rate and local
inflation.
Edenor's inability to face its principal payments is a result of
the devaluation impact, combined with the pesofication,
revocation of convertibility and prohibition of tariff
indexation. The policies implemented by the Duhalde
administration have eviscerated the market-oriented framework
instituted in the 1990s and expropriated significant value and
decision-making autonomy from private sector companies,
including Edenor.
The Government is negotiating with regulated market
participants, such as Edenor, a revenue-recovery mechanisms to
offset the effective expropriation of value that they suffered.
The negotiations have been slow and yielded little in the way of
meaningful benefits. Actually, the negotiation period expired in
August 2002 but was extended for another 120 days. Although some
sort of tariff increase is expected before year-end, Fitch
Ratings now believes that no material tariff relief will come
until after the March 2003 elections and even then only after
the new president has completed a review of the situation. Thus,
any workable plan with the government to restore value to these
companies is at least 12 months away. It was recently reported
that tariff rates may be positively adjusted by an estimated 5%-
10% by the fourth quarter of this year. As noted, such a level
is perceived as a token gesture, given the economic dislocation
generated to the estimated 70% currency devaluation and 35%
inflation observed since the beginning of the year.
Edenor is an electricity distribution company serving the
northwestern half of the greater Buenos Aires area and the
northern portion of the Federal Capital -- within the city of
Buenos Aires -- under the exclusive 95-year concession granted
by the Argentine government. EASA, Edenor's controlling
shareholder (51%), is a holding company controlled by EDF
International (100%).
ENRON CORP: Gets Court Approval to Assume Amended Microsoft Pact
----------------------------------------------------------------
Pursuant to Section 365 of the Bankruptcy Code, Enron
Corporation and its debtor-affiliates sought and obtained the
Court's authority to assume the Microsoft Enterprise Select
Agreement, as amended. The Agreement is by and between Enron
and MSLI, GP.
According to Martin A. Sosland, Esq., at Weil, Gotshal & Manges,
in New York, Enron agreed to purchase licenses relating to
Microsoft Windows 98 or Windows NT Workstation, Microsoft Office
Professional and Microsoft Back Office Client Access. The
Agreement is for three years wherein Enron pay $1,952,586
annually. The Agreement permits Enron to use the Software in
connection with 10,000 personal desktop computers, portable
computers, workstations and similar devises used by Enron and
its affiliates included in Enron's enterprise.
In August 2001, the Agreement was amended to add 7,651 Qualified
Desktops for an additional annual payment of $1,825,758.
The Agreement requires Enron to pay for the licenses in annual
installments to have ownership interests in the licenses.
Since the Debtors have reduced their operation and workforce,
Enron determined that it no longer needed all of the licenses.
Hence, Enron negotiated with MSLI to restructure the Agreement.
This resulted in two additional amendments, wherein the parties
agree to:
(a) reduce the licenses associated with Qualified Desktops
under the Original Agreement from 10,000 to 7,500;
(b) reduce the licenses associated with Qualified Desktops
under Amendment 3 from 7,651 to 3,825; and
(c) relieve Enron of $520,836 of the obligation associated
with the final payment under the Original Agreement;
(d) relieve Enron of the entire obligation of $1,825,758
associated with the final payment under Amendment 3; and
(e) Enron retains the right to upgrade and its current
discount level until April 28, 2003.
Mr. Sosland explains that the Amendments will enable Enron to
retain only those licenses it needs in connection with its
current level of operation, eliminate $2,346,595 in license fees
which are currently due, and preserve Enron's discount pricing
and upgrade rights.
The Court orders Enron to consult with the Official Committee of
Unsecured Creditors regarding the proposed intercompany
allocation of the Final Payment among Enron and the affiliates
of Enron that sublicense products from Enron the Agreement. The
allocation, in the absence of a dispute between Enron and the
Committee, may be made without further notice or order from the
Court; provided that the allocation is made in accordance with
any applicable order of the Court regarding allocation of
overhead and expenses. (Enron Bankruptcy News, Issue No. 43;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
E POWER HOLDINGS: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: E Power Holdings Corp.
1400 Smith Street
Houston, Texas 77002
aka Encom International Inc.
aka EnCom Corp (Japan)
Bankruptcy Case No.: 02-14632
Type of Business: E Power Holdings Corp., is primarily a
development and holding company for Enron
Corp.'s investments in power plants and
related facilities in Japan.
Chapter 11 Petition Date: September 20, 2002
Court: Southern District of New York (Manhattan)
Judge: Arthur J. Gonzalez
Debtors' Counsel: Brian S. Rosen, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153
212-310-8602
Fax: 212-310-8007
- and -
Melanie Gray, Esq.
Weil, Gotshal & Manges LLP
700 Louisiana, Suite 1600
Houston, Texas 77002
Telephone: (713) 546-5000
Total Assets: $3,332,366
Total Debts: $6,312,411
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Hiroo D. Awano Judgment $585,000
Kathryn L. Bedke
(Plaintiff's Attorney)
3 Park Avenue, 16th Floor
New York, NY 10016
212-779-9910
Tokyo Aoyama Aoki Law Legal Fees $86,070
Office
Taisei Engineering Trade debt $38,223
Kokan Keisoku K.K. Trade debt $5,972
Littler Mendelson Legal Fees $967
FOAMEX: Gets $18.4MM Cash from Unwinding Interest Rate Hedges
-------------------------------------------------------------
Foamex International Inc. (NASDAQ: FMXI), the leading
manufacturer of flexible polyurethane and advanced polymer foam
products, has unwound interest rate swaps entered into on May 1,
2002 to hedge the Company's 10-3/4% Senior Secured Notes due
April 1, 2009.
As a result of this action, net cash proceeds to Foamex were
approximately $18.4 million after expenses. The transaction will
produce a deferred credit of approximately $14.8 million, which
will be recognized over the remaining life of the Senior Secured
Notes.
The interest rate swap transactions, with aggregate notional
amounts of $300 million, had the effect of converting the 10-
3/4% fixed rate on these senior secured notes to a floating rate
reset twice per year.
Commenting on the transaction, Marshall Cogan, Foamex's Chairman
and Founder, said: "Interest rate trends have been favorable
since we entered into these contracts in May, and they have
increased significantly in value since that time. Given current
economic conditions, we felt it was prudent to monetize this
value and return to our previous fixed-rate obligation,
eliminating Foamex's exposure to potential interest rate
increases. We will use the net proceeds to reduce debt and for
general corporate purposes."
Foamex, headquartered in Linwood, PA, is the world's leading
producer of comfort cushioning for bedding, furniture, carpet
cushion and automotive markets. The Company also manufactures
high-performance polymers for diverse applications in the
industrial, aerospace, defense, electronics and computer
industries as well as filtration and acoustical applications for
the home. For more information visit the Foamex Web site at
http://www.foamex.com
In its March 31, 2002 balance sheet, Foamex International
recorded a total shareholders' equity deficit of about $173
million.
GLOBAL CROSSING: Details about New Senior Secured Notes
-------------------------------------------------------
Global Crossing North America Inc., will issue $200,000,000 of
New Senior Secured Notes, guaranteed by New Global Crossing, on
the Effective Date of the Company's proposed chapter 11 plan of
reorganization. The notes will mature on the third anniversary
of the Effective Date. Interest will accrue at 11% per annum and
will be paid semi-annually. The New Senior Secured Notes will
be equal in right of payment with the working capital facility
and senior in right of payment to all other indebtedness of New
Global Crossing and its material subsidiaries. The New Senior
Secured Notes will be secured by a first priority lien on the
stock and assets of two Global Crossing subsidiaries that are
not Debtors in these chapter 11 cases -- GCUK and Global Marine
Systems Limited. In addition, proceeds from any sale of those
subsidiaries will trigger an acceleration of the redemption of
the New Senior Secured Notes to the extent of any such proceeds.
To the extent proceeds of any such sales are other than cash,
such proceeds will be substituted for the collateral. Payment
of the New Senior Secured Notes will also be secured by a lien
on all the other assets of New Global Crossing and its material
subsidiaries, junior only to the liens securing the working
capital facility. GCNA may redeem the New Senior Secured Notes,
plus accrued and unpaid interest, at any time without penalty or
premium. In the event of a change of control, New Global
Crossing will be obligated to offer to redeem the New Senior
Secured Notes
at a premium of 101% of outstanding principal plus accrued and
unpaid interest.
The New Senior Secured Notes will be issued under an indenture
qualified under the Trust Indenture Act of 1939. The indenture
will include covenants and events of default that are customary
for high-yield senior note issuances. These covenants will
include:
(i) limitations on the indebtedness of New Global Crossing,
payments to equity holders (including the Investors),
investments, and sale and leaseback transactions,
(ii) restrictions on asset sales, consolidations, and mergers,
and
(iii) limitations on granting additional liens.
The covenants will permit a working capital facility of up to
$150,000,000, secured by a first lien on the assets of New
Global Crossing (other than equity in and assets of GCUK and
Global Marine Systems Limited). The covenants will also have
customary exceptions, baskets, and carve-outs.
GLOBAL CROSSING: Details about New Preferred Stock
--------------------------------------------------
New Global Crossing, under the Company's proposed plan of
reorganization, will be authorized to issue 45,000,000 shares of
New Preferred Stock. New Global Crossing will issue
18,000,000 shares of New Preferred Stock as well as 6,600,000
shares of New Common Stock, to STT and Hutchison in
consideration for their investment in New Global Crossing. The
New Preferred Stock will accumulate dividends at the rate of 2%
per annum. Those dividends will be payable in cash after New
Global Crossing and its subsidiaries (other than Asia Global
Crossing, and Global Marine Systems Limited, and their
respective subsidiaries) achieve cumulative Service EBITDA of
$650,000,000.
The New Preferred Stock will have a liquidation preference of
$10 per share (for an aggregate liquidation preference of
$180,000,000). The New Preferred Stock will rank senior to all
other capital stock of New Global Crossing, provided that any
distribution to shareholders following a disposition of all or
any portion of the assets of New Global Crossing will be shared
pro rata by the holders of New Common Stock and New Preferred
Stock on an as-converted basis. Each share of New Preferred
Stock is convertible into one share of New Common Stock at the
option of the holder.
The New Preferred Stock will vote on an as-converted basis with
the New Common Stock, but will have class voting rights with
respect to any amendments to the terms of the New Preferred
Stock. As long as an Investor beneficially owns a certain
minimum percentage of the outstanding New Common Stock, the
approval of such Investor will be required for certain major
corporate actions of New Global Crossing and/or its
subsidiaries. Those corporate actions include:
(i) the appointment or replacement of the chief executive
officer,
(ii) material acquisitions or dispositions,
(iii) mergers, consolidations or reorganizations,
(iv) issuance of additional equity securities (other than
enumerated exceptions),
(v) incurrence of indebtedness above specified amounts,
(vi) capital expenditures in excess of specified amounts,
(vii) the commencement of bankruptcy or other insolvency
proceedings, and
(viii) certain affiliate transactions.
GLOBAL CROSSING: Details about New Common Stock
-----------------------------------------------
Under its proposed chapter 11 plan of reorganization, New Global
Crossing will be authorized to issue 55,000,000 shares of New
Common Stock:
-- 22,000,000 shares of New Common Stock will be issued as of
the Effective Date and distributed to holders of claims in
Classes C, D, E, and F, as well as to STT and Hutchison;
-- 18,000,000 shares will be reserved for the conversion of
the 18,000,000 shares of New Preferred Stock; and
-- 3,478,261 shares will be reserved for the exercise of
options or other stock-based awards granted under the
Management Incentive Plan.
The balance of the shares will be available for general
corporate purposes. The capitalization for New Global Crossing
as of the Effective Date before giving effect to the exercise of
any options granted pursuant to the Management Incentive Plan:
Holder Number of Shares Percentage
------ ---------------- ----------
Lender Claims 2,400,000 (New Common Stock) 6.00%
GC Holdings Notes Claims 9,820,200 (New Common Stock) 24.55%
GCNA Notes Claims 1,656,200 (New Common Stock) 4.14%
General Unsecured Claims 1,523,600 (New Common Stock) 3.81%
STT 3,300,000 (New Common Stock) 30.75%
9,000,000 (New Preferred Stock)
Hutchison 3,300,000 (New Common Stock) 30.75%
9,000,000 (New Preferred Stock)
Total 40,000,000 (all shares) 100.00%
Management (options) 3,478,261 0.00%
(options - New Common Stock)
The by-laws of New Global Crossing will contain special
protections for minority shareholders, including limitations on
transactions with the Investors or their affiliates, certain
pre-emptive rights, certain rights to receive financial
information, and certain obligations of the Investors, or
certain other third parties, to offer to purchase shares of New
Common Stock held by the creditors under certain circumstances.
Certain of these rights expire when the New Common Stock is
listed.
GLOBAL CROSSING: Plan Creates Litigation Trust for Creditors
------------------------------------------------------------
Under the Purchase Agreement that's a cornerstone of Global
Crossing's proposed chapter 11 plan, substantially all the
assets of GCL and GC Holdings will be transferred to New Global
Crossing. The assets that are excluded from that transfer will
be used, among other things, to make the cash distributions
required by the Plan, including for payments required to cure
defaults under executory contracts assumed by the Debtors. A
portion of the Debtors' cash and certain claims or causes of
action against third parties will be transferred to the
Liquidating Trust for the benefit of creditors holding allowed
claims in Classes C, D, E, and F.
One of the purposes of the Liquidating Trust will be to reduce
those claims or causes of action to cash through litigation,
settlement, or otherwise and distribute the proceeds to holders
of claims in those classes. The Debtors will transfer these
assets to the Liquidating Trust or the Estate Representative:
-- [$______] of the funds on deposit in a Bermuda account,
which currently holds $13,000,000, under the control of
the JPLs;
-- the interests of the Debtors in the employee pension plan
that is the subject of an adversary proceeding brought by
Citizens Communications;
-- $7,000,000 to cover the post-Effective Date costs of
administering the Debtors, the Chapter 11 cases, the costs
of administering the Bermuda restructuring cases
(including the expenses of the JPLs), and the costs of
prosecuting certain claims of the Debtors against third
parties (any portion of this amount not needed for these
purposes at the time of dissolution of the Liquidating
Trust, must be transferred to New Global Crossing and may
not be distributed to holders of beneficial interests in
the Liquidating Trust);
-- certain rights, credits, claims, or causes of action
against third parties for preferences, fraudulent
transfers, and other causes of actions or rights to setoff
belonging to the Debtors, whether arising under the laws
of the United States, the individual States, or Bermuda.
The claims against third parties will not include claims
relating to or involving:
(A) any current or future supplier, vendor or customer of New
Global Crossing or its subsidiaries,
(B) any current or future officer, director or employee of New
Global Crossing or any of its subsidiaries so long as they
are employed by such entity or would otherwise be entitled
to indemnification or reimbursement from any such entity for
such Claim,
(C) any other Person against whom, the making or assertion of
any Claim would be reasonably likely to have a material
adverse effect on New Global Crossing and/or its
subsidiaries or would materially interfere with the conduct
of the business of New Global Crossing and/or its
subsidiaries or would be reasonably likely to create any
Liability of New Global Crossing or its subsidiaries; and
(D) the Investors or any of their respective affiliates and
advisors.
The Estate Representative, as a representative of the Debtors
after the Effective Date, may use such claims as a defense or
counterclaim to any proof of claim asserted in the Chapter 11
case by such third parties. The Investors will determine which
officers, directors, employees, suppliers, vendors, or customers
are "current" or "future" pursuant to the method set forth in
the definition of "Assets" in the Purchase Agreement, and such
definition of assets will specifically exclude any other claims
against individuals specifically agreed to in writing among the
holders of the Lender Claims, the Creditors Committee and the
Investors. (Global Crossing Bankruptcy News, Issue No. 22;
Bankruptcy Creditors' Service, Inc., 609/392-0900)
GROUP TELECOM: Ontario Court Extends CCAA Protection to Sept. 25
----------------------------------------------------------------
GT Group Telecom Inc., has sought and obtained, from the Ontario
Superior Court of Justice, an order granting it and its
affiliates an extension of protection under the Companies'
Creditors Arrangement Act to September 25, 2002. The purpose of
the extension is to allow the Company to continue to
constructively advance discussions with its lenders on the
going-forward process. On September 25, the Company expects to
seek a further extension period.
The Company currently has sufficient cash to allow it to carry
on its business in the ordinary course during the restructuring
period, including providing service to customers, paying for
goods and services supplied after the date the initial Order was
granted, and the ongoing payment of wages and benefits to
employees.
Group Telecom is Canada's largest independent, facilities-based
telecommunications provider, with a national fibre-optic network
linked by 454,125 strand kilometres of fibre-optics, at March
31, 2002. Group Telecom's unique backbone architecture is built
with technologies such as Gigabit Ethernet for delivery of
enhanced network performance and Synchronous Optical Network
(SONET) for the highest level of network reliability. Group
Telecom offers next-generation high-speed data, Internet,
application and voice services, delivering enhanced
communication solutions to Canadian businesses. Group Telecom
operates with local offices in 17 markets across nine provinces
in Canada. Group Telecom's national office is in Toronto.
DebtTraders reports that GT Group Telecom's 13.250% bonds due
2010 (GTGR10CAR1) are trading between 6 and 9. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=GTGR10CAR1
for real-time bond pricing.
GUILFORD MILLS: Court Confirms Chapter 11 Plan of Reorganization
----------------------------------------------------------------
The creditors and stockholders of Guilford Mills, Inc., (OTC
Bulletin Board: GFDM) have voted overwhelmingly to accept the
Company's reorganization plan.
The bankruptcy court Thursday approved Guilford Mills'
reorganization plan, clearing the last hurdle for the Company to
emerge from bankruptcy proceedings. Guilford Mills expects to
complete the process by Sept. 30.
"After nearly two years of restructuring and six months of
financial reorganization, we have Guilford positioned exactly
where we've wanted all along," said John A. Emrich, Guilford
Mills' President and Chief Executive Officer. "I'm thrilled
with the way this company has performed these past six months."
Guilford Mills and its domestic subsidiaries filed voluntary
petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code only six months ago, on March 13. The company
had exited several businesses over the previous year to focus on
its strongest operations: automotive, technical textiles and
select apparel businesses. The bankruptcy reorganization
allowed Guilford Mills to reduce its debt to a level more
appropriate for its new size.
The plan's major provisions include:
* The Company's suppliers will be paid in full.
* Ownership of the Company will change: Guilford Mills'
senior lenders will own 90% of the Company, while its
existing shareholders will own the remaining 10%.
* Senior debt, which will consist primarily of a three-year
revolving credit facility and a three-year term loan,
will total approximately $145 million -- down from $270
million before entering bankruptcy court.
"When we started this process, we said we would complete the
reorganization relatively quickly. We said we would pay our
trade creditors in full -- an unusual step in a bankruptcy case
like this. And we said we would continue to serve our customers
without any interruptions," Emrich said. "We delivered on
everything we said we were going to do. That's a tribute to the
extensive negotiations we conducted with our lenders even before
we filed, and the incredible efforts of all our associates
during the past six months. I couldn't be more proud of this
company."
Guilford Mills is an integrated designer and producer of value-
added fabrics using a broad range of technologies. Guilford
Mills serves a diversified customer base in the automotive,
industrial and apparel markets. From time to time, the Company
may publish forward-looking statements relative to such matters
as anticipated financial performance, business prospects,
technological developments, new products, research and
development activities and similar matters.
HIGH SPEED: Will Make Initial Cash Distribution to Shareholders
---------------------------------------------------------------
In connection with its previously announced intent to liquidate
and dissolve, High Speed Access Corp. (OTC Bulletin Board: HSAC)
announced that, subject to stockholder approval, it intends to
make an initial cash distribution of between $1.35 per share and
$1.40 per share to its stockholders in March 2003. The amount
and timing of this distribution is based upon the current
estimates of management and may change due to various risks and
uncertainties, including but not limited to:
-- the amount of the $2 million Charter indemnity
holdback that HSA ultimately collects and its ability to dispose
of or settle any claims Charter may assert in connection with
the sale of substantially all of HSA's assets to Charter;
-- the amount of the contingency reserve HSA determines is
appropriate to assure the settlement of its liabilities during
the dissolution process;
-- the amount of time and money required to assess and
resolve outstanding and potential litigation against HSA;
-- the amount, if any, HSA will receive upon liquidation
of its remaining tangible assets net of any claims or
liabilities;
-- the total amount of HSA's liquidation transaction and
administration costs; and
-- any claims or potential claims that may arise before
HSA is finally liquidated and dissolved or that management
believes are likely to arise within 10 years of HSA's
dissolution.
HSA expects to file a preliminary proxy with respect to its
proposed liquidation and dissolution with the Securities and
Exchange Commission in the near future.
ICG COMMUNICATIONS: Turns to Miller Buckfire for Fin'l Advice
-------------------------------------------------------------
ICG Communications, Inc., and its debtor-affiliates sought and
obtained approval from the Court to:
(i) assign the engagement letter dated September 29, 2000,
as amended on December 19, 2000, between the Debtors
and Dresdner Kleinwort Wasserstein, Inc., formerly known
as Wasserstein Perella & Co., to Miller Buckfire Lewis
& Co. LLC, under an Assignment and Assumption Agreement
dated as of July 16, 2002, among DrKW, MBL, and the
Debtors, and
(ii) retain MBL as their financial advisor.
Marion M. Quirk, Esq., at Skadden Arps Slate Meagher & Flom, in
Wilmington, Delaware, relates that, on April 24, 2002, DrKW
announced the planned formation of MBL and an anticipated
assignment of rights and obligations under the engagement letter
from DrKW to MBL. Under this assignment agreement, MBL will
benefit from all of the rights, and assume and undertake all of
the duties, of DrKW under the engagement letter formerly
approved in these cases in connection with the employment of
Wasserstein as the Debtors' financial advisor.
MBL has now been formed and is conducting business. MBL is a
Delaware limited liability company with a single member - MBL
Advisory Group LLC. DrKW has a non-voting minority profit
interest in MBL Advisory Group LLC, and does not otherwise
participate or control or influence the management of MBL or MBL
Advisory Group LLC.
Ms. Quirk describes MBL as an independent firm providing
strategic and financial advisory services in large-scale
corporate restructuring transactions. MBL is owned and
controlled by Henry S. Miller, Kenneth A. Buckfire, and Martin
F. Lewis, who are also MBL's founders, and by the employees of
MBL. MBL has 40 employees, substantially all of whom were
formerly employees of the DrKW Financial Restructuring Group.
MBL will undertake and perform all of the services previously
approved in the application to employ DrKW, and will be paid the
same compensation, and have the same indemnification and
exculpation rights, as were formerly held by DrKW.
Kenneth A. Buckfire, MBL Managing Director, assures the Court
that the firm is a disinterested person and neither holds nor
represents any interests adverse to the Debtors or these estates
in the matters for which approval of employment is sought. (ICG
Communications Bankruptcy News, Issue No. 30; Bankruptcy
Creditors' Service, Inc., 609/392-0900)
INTEGRATED HEALTH: Wants Lease Decision Time Extended to Mar 31
---------------------------------------------------------------
Assisted by their financial advisor UBS Warburg, Integrated
Health Services, Inc., and its debtor-affiliates are negotiating
an agreement with a single purchaser for all of their remaining
businesses.
In addition, the Debtors have developed a stand-alone
reorganization alternative.
The Debtors have begun to draft a plan of reorganization, which
incorporates the dual track of a sale alternative and a stand-
alone alternative. The Debtors anticipate filing this plan
during the fourth quarter of 2002.
In light of the current status of the reorganization process,
the Debtors do not think they can decide which of their
remaining unexpired nonresidential real property leases should
be assumed and which should be rejected by the current deadline
of October 1, 2002. If a sale of the Debtors' remaining
businesses is consummated, many, if not most, of the Unexpired
Leases will be assumed, assigned and sold to the purchaser.
However, if a sale transaction is not consummated, the Debtors
may likely reject a number of the leases.
As of the Petition Date, the Debtors were parties to more than
1,500 unexpired leases. As a result of assumptions and
rejections from time to time, the Debtors presently are lessees
or sub-lessees under more than 222 Unexpired Leases -- 81
relating to long-term care facilities and 141 in connection with
Symphony and other ancillary divisions.
The Unexpired Leases are valuable assets of the Debtors' estates
and are integral to the continued operation of their businesses.
The Debtors do not want to forfeit their right to assume any
Unexpired Lease as a result of the deemed rejection provision of
the Bankruptcy Code. On the other hand, they do not want to
assume all of their Unexpired Leases prematurely because of the
looming deadline and be burdened with the resultant substantial
administrative expenses.
Accordingly, the Debtors ask the Court to further extend the
date by which the Debtors must assume or reject their Unexpired
Leases from October 1, 2002, to and including March 31, 2003,
pursuant to Section 365(d)(4) of the Bankruptcy Code.
(Integrated Health Bankruptcy News, Issue No. 43; Bankruptcy
Creditors' Service, Inc., 609/392-0900)
JACOBSON STORES: Sells Stores Property for $39 Mill. at Auction
---------------------------------------------------------------
An auction of the real estate assets of Jacobson Stores, Inc.,
was conducted on Wednesday by retail property disposition
experts, Hilco Real Estate, LLC. Jacobson's filed for Chapter
11 bankruptcy on January 15, 2002 and in July, company officials
announced Jacobson's would close its stores.
Offered at auction were company-owned properties and several
available leases. The auction, which was held in Detroit, MI by
representatives of Hilco Real Estate and Jacobson's counsel,
Traub, Bonacquist & Fox LLP (New York, NY) and Honigman, Miller,
Schwartz and Cohn (Detroit, MI), resulted in the sale of owned
properties and the sale or termination of the following leased
properties for a total of $39,175,000.
Chicago-based Hilco Real Estate, which specializes in retail and
industrial real estate disposition and lease restructuring
services, was engaged by the Company to market and sell
Jacobson's entire real estate portfolio for the highest and best
value for creditors' benefit. Following the auction, Mitchell
Kahn, President of Hilco Real Estate said, "We are very pleased
with the auction's results. Even in this difficult real estate
sales environment, we were able to find quality buyers for the
majority of properties in the portfolio."
Commenting after the auction, Paul Gilbert, Jacobson's Vice
Chairman stated, "We were very pleased to be able to bring
additional value to Jacobson's creditors through this sale."
Jay Indyke, of Kronish Lieb Weiner & Hellman, LLP and counsel to
the Creditor's Committee (New York, NY) released this statement:
"On behalf of the Committee, we are pleased with the results and
the mutual decision to sell off the real property in pieces,
rather than the sale of designation rights, has been validated
by the results achieved."
For information on the remaining properties, interested parties
should contact Mr. Josh Joseph of Hilco Real Estate, at
847.504.2459.
Hilco Real Estate is a unit of The Hilco Organization, a leader
in retail, industrial and commercial asset repositioning
including: inventory liquidations, auctions and bulk purchases;
asset appraisals; real estate disposition, principal acquisition
and lease restructuring; accounts receivable acquisition and
collection; and debt and equity financing.
For more information on this transaction and Hilco Real Estate,
please contact Mitchell Kahn, President, at 847-504.2450 or
visit http://www.hilcorealestate.com
KEY3MEDIA GROUP: Moody's Junks $100M Sr. Secured Facility Rating
----------------------------------------------------------------
Moody's Investors Service lowered the ratings of Key3Media
Group, Inc.
Rating Action To From
* its $100 million senior secured Caa1 B3
credit facility due 2004 from,
* its $290 million of 11.25% senior Ca Caa3
subordinated notes due 2011 from,
* the company's senior implied rating Ca Caa1
and
* Key3 Media Group's issuer rating Ca Caa2.
The action mirrors the continuing cash flow and liquidity
problems and lesser than expected performance. Key3Media is
unlikely to be able to comply with future bank covenants.
Moody's gives the ratings a negative outlook reflecting the
difficulty Key3Media is expected to experience in growing
revenues.
DebtTraders reports that Key3Media Group Inc.'s 11.250% bonds
due 2011 (KME11USR1) are trading between 38.5 and 40. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=KME11USR1for
real-time bond pricing.
KMART CORP: Court Okays Aerodynamics as Debtors' Aircraft Broker
----------------------------------------------------------------
Kmart Corporation and its debtor-affiliates want to employ
Aerodynamics, Inc., anew as their broker and consultant for the
purpose of marketing and selling a couple of corporate
aircrafts.
J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom,
in Chicago, Illinois, informs Judge Sonderby that, on June 3,
2002, and August 1, 2002, the Debtors entered into separate
Aircraft Brokerage Agreements for the respective sale of:
* a 1999 Beechjet 400A with serial number RK-235; and
* a 1999 Beechjet 400A with serial number RK-227
The Brokerage Agreements each provide Aerodynamics the exclusive
rights to market the Aircrafts for about six months.
Under the Agreements, Aerodynamics will render these services:
(a) present the Aircraft for sale through a worldwide marketing
campaign;
(b) record the Aircraft with the national listing services and
the marketing staff of the Pinnacle Air Network;
(c) review log books and prepare appropriate specification
sheets and photo-presentation materials to adequately
promote the Aircraft;
(d) advertise the Aircraft in appropriate trade media, multiple
Internet marketing sites, and in broadcast email campaigns;
(e) provide weekly status reports to the Debtors regarding any
interest in the Aircraft;
(f) prepare an Aircraft purchase agreement acceptable to both
parties;
(g) assist the Debtors with the implementation and approval
process of the proposed transactions as requested by the
Debtors;
(h) schedule the pre-purchase inspection at a facility; and
(i) testify as to any transaction involving the Aircraft.
The Debtors remunerate Aerodynamics' efforts through a 1.5%
commission of the Purchase Price. This is in the event, a
purchaser, ready, willing and able to buy an Aircraft is
procured by the Aerodynamics, or by anyone else including Kmart
during the six-month period. If a sale or exchange of Aircraft
is made within 180 days after the expiration of Brokerage
Agreement to a client of Aerodynamics, the Debtors will still
give out the agreed-upon commission. Should the Aircraft be
withdrawn from market prior to the expiration of the Agreement,
the Debtors will pay Aerodynamics $500/month for each 30-day
period for the marketing costs incurred in connection with
offering the Aircraft for sale.
Aerodynamics will represent the Aircraft's condition at time of
sale as:
(1) airworthy;
(2) all systems functioning normally;
(3) current on maintenance;
(4) free and clear of liens and encumbrances; and
(5) with all available logbooks, manuals and records
Aerodynamics will also make these arrangements:
(a) The preparation of an aircraft purchase agreement acceptable
to both parties;
(b) Ensuring an adequate deposit is placed in escrow;
(c) Scheduling the pre-purchase inspection at a facility
acceptable to Buyer and Seller;
(d) Arranging flight tests with Kmart's aircrew;
(e) Evaluating/negotiating discrepancies arising out of the pre-
purchase inspection;
(f) Preparation of all closing documents; and
(g) Arranging for the receipt and timely disbursement of all
closing funds through escrow.
Mr. Ivester contends that Aerodynamics' resources, capabilities,
and experience are important to the Debtors' successful
restructuring efforts. Aerodynamics' efforts will enable the
Debtors to maximize the value of Kmart's corporate aircrafts.
"By retaining an experienced broker like Aerodynamics, the
Debtors will ensure that the Aircrafts will be marketed in a
manner that will result in a purchase price that represents the
highest and best offers available," Mr. Ivester says. (Kmart
Bankruptcy News, Issue No. 33; Bankruptcy Creditors' Service,
Inc., 609/392-0900)
LEAP WIRELESS: Closes Sale of Interests in Pegaso for $22.2 Mil.
----------------------------------------------------------------
Leap Wireless International, Inc. (Nasdaq: LWIN), an innovator
of wireless communications services, announced the closing of
the sale of its interests in Pegaso Telecomunicaciones. Leap
received approximately $22.2 million in cash for its equity
interests in Pegaso. As part of the sale, the Company also
expects to receive next quarter approximately $15.8 million in
repayment of convertible notes issued by Pegaso. The Company
intends to retain these monies at Leap, rather than setting
aside or contributing to subsidiaries $25.8 million as
previously agreed in connection with the Company's vendor credit
agreements. As a result of the sale, Leap has also been
released from its guarantee of approximately $33 million of
Pegaso debt.
Leap, headquartered in San Diego, Calif., is a customer-focused
company providing innovative communications services for the
mass market. Leap pioneered a wireless service that lets
customers make all their local calls from within their local
calling area and receive calls from anywhere for one low, flat
rate. Leap has begun offering new services designed to further
transform wireless communications for consumers. For more
information, please visit http://www.leapwireless.com
* * *
As reported in Troubled Company Reporter's Sept. 12, 2002
edition, Standard & Poor's Ratings Services lowered its
corporate credit rating on wireless carrier Leap Wireless
International Inc., to double-'C' from triple-'C'-minus
following the company's September 6, 2002, 8-K filing indicating
that it had defaulted on interest payments under its vendor
facilities at operating subsidiary Cricket Communications Inc.
The senior unsecured debt, which is rated single-'C', and the
corporate credit rating remain on CreditWatch with negative
implications. As of June 30, 2002, San Diego, California-based
Leap had $2.1 billion of debt outstanding.
"The default by the subsidiary increases the likelihood that
Leap will either restructure its debt through a distressed
default, default on its debt, or be subject to a potential
bankruptcy filing if the subsidiary files for Chapter 11
protection," Standard & Poor's credit analyst Catherine
Cosentino said. "On a default, bankruptcy filing, or completion
of a distressed exchange by Leap, the ratings will be lowered to
'D' and subsequently withdrawn."
LODGIAN INC: Has Until January 31, 2003 to Remove Civil Actions
---------------------------------------------------------------
Adam C. Rogoff, Esq., at Cadwalader Wickersham & Taft, in New
York, tells the U.S. Bankruptcy Court for the Southern District
of New York that due to the magnitude of their operations and
the number of states in which they conduct their business,
Lodgian, Inc. and its debtor-affiliates are party to numerous
actions currently pending in various states. The State Court
Actions involve a wide variety of claims, including, but not
limited to, breach of contract and personal injury claims. In
connection with determining whether to remove any of the State
Court Actions, the Debtors must conduct a comprehensive analysis
of its pending civil actions, evaluate various factors, and
determine whether the outcome of the State Court Action may
alter the Debtors' rights and liabilities and effect the
ultimate distribution to the Debtors' creditors.
At present, Mr. Rogoff relates that the Debtors have not yet had
an opportunity to evaluate fully these factors and determine
finally which State Court Actions it will seek to remove. There
are few employees equipped to make these determinations;
however, they are working as expeditiously as possible.
Further, on August 21, 2002, the Debtors and the Committee filed
a joint Chapter 11 Plan for each of the Debtors as co-plan
proponents. The Plan formulation and negotiation process has
been an extensive one and, accordingly, has not afforded the
Debtors sufficient time to analyze the removal of one or more of
the State Court Actions at this time.
For the second time, the Debtors sought and obtained a Court
order pursuant to Rule 9006(b) of the Federal Rules of
Bankruptcy Procedures further extending the time allowed to
remove civil actions for an additional 137 days through and
including January 31, 2003.
The extension will afford the Debtors a sufficient opportunity
to make fully informed decisions concerning removal of each
State Court Action and will assure that the Debtors do not
forfeit valuable rights of removal under Section 1452 of the
Bankruptcy Code. Furthermore, the rights of the Debtors'
adversaries will not be prejudiced by the extension since
Section 362(a) of the Bankruptcy Code automatically stays
prosecution of the State Court Actions against the Debtors.
Besides, if the Debtors are ultimately successful in removing
any of the State Court Actions to federal court, any party to
the action may seek to have it remanded to the state court
pursuant to Section 1452(b). (Lodgian Bankruptcy News, Issue No.
16; Bankruptcy Creditors' Service, Inc., 609/392-0900)
LORAL SPACE & COMMS: S&P Further Junks Sr. Unsecured Debt Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its senior unsecured
debt rating on Loral Space & Communications Ltd. to triple-'C'-
minus from triple-'C'-plus and its senior unsecured debt rating
on the company's wholly-owned subsidiary Loral Orion Inc. to
triple-'C'-plus from single-'B'. These downgrades were based on
concern about Loral's liquidity and weak customer demand in the
company's satellite leasing and manufacturing businesses.
Standard & Poor's also lowered its corporate credit rating on
Loral to double-'C' from single-'B' and its preferred stock
rating on the company to single-'C' from triple-'C', and placed
the ratings on CreditWatch with negative implications. These
rating actions follow the company's commencement of an offer to
exchange cash and common stock for each share of its series C
and series D preferred stock.
Standard & Poor's considers the completion of the exchange
offer, which represents a deep discount to the liquidation
preference of the existing preferred stock, tantamount to a
default on the preferred stock issues. If the exchange is
completed, the corporate credit rating on Loral will be lowered
to 'SD', and the preferred stock rating will be lowered to 'D'.
Subsequent to completion of the exchange offer, assuming no
further unexpected developments, the corporate credit rating
will likely be raised to triple-'C'-plus, reflecting the
company's still heavy debt burden and weak business conditions.
"Although successful completion of the exchange offer will
improve Loral's balance sheet and modestly help cash flow by
reducing dividend obligations, the offer could consume up to $22
million in cash if all preferred stock is tendered. Loral's
liquidity will remain strained, and the company still faces
financially much stronger rivals in the competitive satellite
leasing and manufacturing businesses," Standard & Poor's credit
analyst Eric Geil said.
Loral expects to have roughly $100 million in cash and borrowing
availability at year-end 2002, not accounting for cash used in
the exchange offer, down from $180.7 million at June 30, 2002.
Standard & Poor's is concerned that the company could exhaust
its remaining liquidity in 2003 given the potential for
continued industry weakness.
Resolution of the CreditWatch listing will follow completion of
the preferred stock exchange offer.
MAGELLAN PETROLEUM: PCX Halts Shares Trading Pending Delisting
--------------------------------------------------------------
The Pacific Exchange (PCX) suspended trading on Magellan
Petroleum Corporation (PCX: MPC).
The Company is being suspended pending delisting for failure to
comply with the Exchange's requirements for continued listing.
Delisting is subject to review and approval by the SEC.
MEADOWCRAFT: Asks Court to Extend Lease Decision Time to Mar. 22
----------------------------------------------------------------
Meadowcraft, Inc., asks the U.S. Bankruptcy Court for the
Northern District of Alabama to extend the deadline by which the
Company must determine whether to assume, assume and assign, or
reject its unexpired nonresidential real property leases until
March 22, 2003.
As part of its business operations, the Debtor has entered into
certain nonresidential real property leases. The Debtor remains
in possession of the properties and premises covered by the
Leases.
The Debtor wants to reserve the right to assume and assign the
Leases to other parties as necessary to maximize the value of
its estate. An extensive analysis will be necessary to
determine whether assumption, assignment or rejection of each of
the Leases is in the best interest of the its estate, the
Debtors tell the Court.
Unless the deadline to decide on leases is extended, the Debtor
will either be compelled to assume significant, long-term
liabilities, thereby creating substantial administrative expense
claims at an early stage in its bankruptcy case, or to reject
the Leases prematurely, depriving the Debtor's estate of
valuable assets.
Meadowcraft, Inc., a leading domestic producer of casual outdoor
furniture and the largest manufacturer of outdoor wrought iron
furniture in the world, filed for chapter 11 protection on
September 2, 2002. Sherry T. Freeman, Esq., Edward J. Peterson,
III, Esq., and Lloyd C. Peeples, III, Esq., at Bradley Arant
Rose & White LLP represent the Debtor in its restructuring
efforts. When the Company filed for protection from its
creditors, it listed an estimated assets of over $50 million and
debts of over $100 million.
MENDOCINO BREWING: Fails to Meet Pacific Exchange Requirements
--------------------------------------------------------------
The Pacific Exchange (PCX) suspended trading on Mendocino
Brewing Company (PCX: MBR).
The company is being suspended pending delisting for failure to
comply with the Exchange's requirements for continued listing.
Delisting is subject to review and approval by the SEC.
MERA PHARMACEUTICALS: Exits Chap. 11 Following Merger Completion
----------------------------------------------------------------
Mera Pharmaceuticals (OTC Bulletin Board: MRPI) has completed
its merger with privately held AquaRM, Inc. As a result, Mera
Pharmaceuticals, Inc., has now fulfilled all of the material
requirements of the confirmed plan of reorganization of
Aquasearch, Inc., its predecessor. Completion of the bankruptcy
process has resulted in the discharge of over $4,000,000 of
debt.
Dr. Richard Propper, Chairman and CEO, stated, "I am very happy
to report that the Bankruptcy process is over and that we can
now devote 100% of senior management's efforts to expand both
our nutraceutical and pharmaceutical businesses. The debt
relief accompanying the plan will now permit all of us at Mera
to move the Company ahead aggressively in both the short and
long term.
"This is an exciting time for Mera as we begin the process of
exploiting the previously untapped resources of aquatic
microbial plants. We have the scientists, the technology, and
the marketing expertise to make significant strides forward and
are very confident that this will result in enhanced shareholder
value"
MISSISSIPPI CHEM: S&P Junks Corporate Credit & Debt Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and senior secured debt ratings on Mississippi Chemical Corp.,
to triple-'C'-plus from single-'B', and its senior unsecured
debt rating to triple-'C' from single-'B'. At the same time,
Standard & Poor's placed all ratings on CreditWatch with
negative implications. The Yazoo, Mississippi-based company had
about $337 million in total debt outstanding as of March 31,
2002.
"The ratings downgrade and CreditWatch placement reflect
heightened concerns regarding the refinancing of the company's
bank credit facility, which matures in November 2002, and,
consequently, satisfaction of the upcoming bond coupon payment,"
said Standard & Poor's credit analyst Peter Kelly.
"Deterioration in the company's credit profile, due to a sizable
debt burden, disappointing operating results, and the
continuation of challenging industry conditions, and restrictive
capital markets have made the task of refinancing the credit
line more difficult," the analyst continued. The CreditWatch
placement highlights the importance of obtaining a line of
credit and the risk of a default if the company is unable or
unwilling to make its November 2002 bond interest payment. In
addition, the company could have difficulty complying with
financial covenants under its revolving credit facility due to
poor earnings.
The senior unsecured debt is now rated one notch lower than the
corporate credit rating, reflecting its position in the debt
structure. The downward ratings revision reflects the
disadvantaged position of the unsecured notes relative to the
secured bank facility, reflecting an evaluation of the capital
structure and the prospects for debt reduction.
Operating margins over the past few years have reflected a
number of challenges, including higher raw material and energy
costs, oversupply conditions, poor demand patterns, and
unfavorable inventory positions. Consequently, operating margins
are in the mid-single-digit area and funds from operations to
total debt are negligible. The continuation of unfavorable
nitrogen fertilizer fundamentals could limit opportunities to
substantially improve the company's highly leveraged balance
sheet.
Mississippi Chemical is a mid-sized nitrogen producer with some
diversification in phosphates and potash. The company's market
positions are primarily in the southern U.S.
NATIONAL STEEL: Mineo Shimura Elected as New Chairman and CEO
-------------------------------------------------------------
National Steel Corporation (OTC Bulletin Board: NSTLB) announced
that Mineo Shimura has been elected Chairman of the Board and
Chief Executive Officer to replace Hisashi Tanaka who announced
his resignation effective September 26, 2002. Mr. Tanaka is
returning to Japan to become an executive officer of NKK.
Mr. Tanaka commented, "I joined National Steel Corporation
during a very difficult time in the US steel industry. I am
thankful for the strong support of our customers and suppliers
during this time, particularly after we filed for Chapter 11
protection, and very much appreciate the dedication and efforts
of the employees of National Steel. I am confident that the
company is proceeding toward a successful resolution of its
Chapter 11 proceeding."
Mr. Shimura will assume his new responsibilities on September
27, 2002. He has served as a member of the Board of Directors of
National Steel since April of 1997. Upon his new assignment, he
will devote his full time and energy to National Steel and
consequently will resign from his position as president of
various NKK affiliates. Mr. Shimura has over 28 years of
experience in international business and finance.
Mr. Shimura is a graduate of Waseda University in Tokyo. He
also attended the Sloan School of Management where, as a Sloan
Fellow, he earned a Master of Science in Management degree from
the Massachusetts Institute of Technology.
With regard to his new appointment, Mr. Shimura stated, "While I
have been working with National Steel Corporation as a member of
the Board of Directors for a long time, I'm looking forward to
getting involved in the business on an operational level. I
know I speak for the entire National Steel board of directors in
recognizing the strong leadership of Mr. Tanaka in a very
difficult time in the U.S. steel industry and in our
reorganization process. I will continue to promote the process,
so that National Steel can successfully resolve its Chapter 11
proceeding as soon as possible. In addition, we will continue
Mr. Tanaka's leadership by staying focused on reducing costs,
improving quality and ensuring that our customers are serviced
well."
Headquartered in Mishawaka, Indiana, National Steel Corporation
is one of the nation's largest producers of carbon flat-rolled
steel products, with annual shipments of approximately six
million tons. National Steel employs approximately 8,200
employees. Please visit the Company's Web site at
http://www.nationalsteel.comfor more information on the Company
and its products and facilities.
NETIA HOLDINGS: Approval of Arrangement Plan for Unit Postponed
---------------------------------------------------------------
Netia Holdings S.A., (Nasdaq: NTIAQ/NTIDQ, WSE: NET), Poland's
largest alternative provider of fixed-line telecommunications
services, announced that the Polish court postponed its decision
on the approval of the arrangement plan for Netia South Sp. z
o.o., one of Netia's subsidiaries, adopted unanimously by Netia
South's creditors on August 29, 2002.
The postponement is due to the necessary completion of an appeal
filed by a minority group of Netia's claimholders comprised of
SISU, OTA and Triage funds challenging the court's decision
excluding them as parties to the Netia South's arrangement
proceeding. The lower court based its decision on the fact that
these dissenting parties were not creditors of Netia South and
were therefore not entitled to participate in Netia South's
arrangement proceedings as a party. The date of another hearing
for the approval of Netia South's arrangement plan will be set
after the completion of this appeal.
NETROM INC: Eliminates Substantial Part of Debt via Equity Swap
---------------------------------------------------------------
The Netrom Inc., (Pink Sheets:NRRM) new management team has made
significant progress in turning around and rebuilding Netrom.
Specifically, the progress includes: (i) the elimination of a
substantial portion of the company's debt through signed
settlement agreements with creditors that converts debt to
equity, (ii) the launch of the company's new Web site designed
to keep shareholders up-to-date on company developments, (iii)
bringing the company's unaudited financial statements current
through June 30 2002, and selecting a CPA firm to complete a two
year audit, which is required for reinstatement on the OTC
Bulletin Board.
In preparation for a merger or acquisition, Netrom entered into
an agreement with Mountain Pacific Capital Partners Inc., of
Denver. They specialize in helping companies of all sizes
successfully complete mergers and acquisitions. As noted in the
June 2, 2002 press release, Netrom is evaluating several
companies that have expressed an interest in merging with or
being acquired by Netrom.
Further news and developments will be posted on the company's
new Web site http://www.netrominc.com
Netrom Inc., (Pink Sheets:NRRM) was founded in 1996, and is
headquartered in San Diego. Since its inception, Netrom has been
involved in the development of technologies that are related to
the Internet, as well as developing new eBusiness models. In the
first quarter of 2000 Netrom became insolvent and was forced
into a major reorganization. The company has been in the process
of a turnaround of its business with the primary objective being
to restore trading of its stock to the OTC BB, refine its
business model and fuel the growth of the company through
strategic acquisitions.
ONELINK: Expects to Close Asset Sale to CallVision after Meeting
----------------------------------------------------------------
OneLink was incorporated in Minnesota in June 1990. Prior to
July 1, 2002, OneLink provided telecommunications-based
business-intelligence services via the Internet. Its services
enabled the production of business-intelligence reports based on
caller data of business customers available from
telecommunications companies. The reports included summaries and
detail of the data about the location of the businesses;
incoming callers, frequency of calls, number of unanswered
calls, busy calls, and similar information. Incumbent Local
Exchange Carriers (referred to in the industry as ILECs provided
the data OneLink used to generate the business-intelligence
reports. Oneink sold its service directly to ILECs, primarily
targeting the Regional Bell Operating Companies, and the ILECs
in turn marketed and sold Oneink's services under their own
private branding to their own business customers, especially
small to medium-sized businesses depending on incoming telephone
calls to generate revenue (e.g., businesses that rely on
reservations, appointments, service calls, etc.).
On June 28, 2002, the Company entered into an asset purchase
agreement with CallVision, Inc., a Washington corporation,
pursuant to which the Company has agreed to sell substantially
all of its assets to CallVision. The Company has ceased
conducting business operations and has transferred physical
possession of its operating assets to CallVision. The
consummation and closing of the asset sale is contingent upon
the approval of the Company's shareholders.
To date, OneLink has not generated revenues sufficient to break
even, and has supported business operations through a
combination of borrowings and equity sales. Important factors
in the Board of Director's determination to enter into the
proposed asset sale included but were not limited to the
following:
* OneLink's inability to continue funding existing
operations with its current cash flow
* OneLink's inability to obtain additional equity or debt
financing
* OneLink's financial projections, which indicated that it
could not increase revenues quickly enough to achieve
positive cash flow prior to exhausting its working
capital
* The slowdown in the telecommunications industry resulting
from the general economic recession, and the concomitant
significant reduction in spending on advertising,
marketing and promotion by telephone companies
* After seeking strategic partners and/or potential
purchasers for its assets, the Company was unable to find
a superior alternative to the proposed sale of assets to
CallVision.
The Company is currently preparing an information statement to
file with the Securities and Exchange Commission and mail to
shareholders of record on September 23, 2002, as soon as
practicable in order to hold a special meeting of the
shareholders, at which the asset sale would be approved, in late
September or early October 2002. The Company expects the
closing of the asset sale to occur within a few days after the
date of the special meeting and approval by the Company's
shareholders.
OneLink shareholders are not expected to receive any cash, stock
or other property in connection with, or as a result of, the
sale of assets. OneLink will no longer engage in any business
but will attempt to continue being a publicly held company by
filing required disclosure documents. Nevertheless, the
Company cannot be certain that this will be possible. Subject
to regulatory requirements, OneLink common stock will continue
to be quoted on the OTC Bulletin Board, and OneLink will make
reasonable efforts to continue filing disclosure reports with
the Securities and Exchange Commission. OneLink hopes to find a
private company seeking to become a publicly held company
through a merger.
OVERHILL CORP: Sets Sept. 30 Record Date for Unit's Spin-Off
------------------------------------------------------------
Overhill Corporation (Amex: OVH) announced that its Board of
Directors has set the record date for the previously announced
plan to spin off the Company's Overhill Farms, Inc. subsidiary.
The Company has set the record date for the spin-off for
September 30, 2002. Pursuant to the proposed plan, the Company
will distribute to its stockholders all of its shares of
Overhill Farms, Inc. The Company's stockholders will receive
one share of Overhill Farms, Inc,. common stock for every two
shares of Overhill Corporation common stock owned of record on
September 30, 2002.
An amended Information Statement and Registration Statement on
Form 10 is being prepared for review and clearance by the
Securities and Exchange Commission and will be distributed to
the Company's stockholders as soon as practicable after SEC
effectiveness.
Additionally, Overhill Farms, Inc., announced that it has
received waivers of covenant violations with respect to its
financing arrangements and entered into amendments to those
financing arrangements with its senior and senior subordinated
creditors modifying future financial covenants to levels more
consistent with its current and future expected results of
operations.
The Company also announced that two of the plaintiffs in the
ongoing litigation involving the Company and certain of its
current and past officers and directors have filed a second
application with the United States District Court for the
District of Nevada to enjoin the spin-off. In September 2001,
the same individuals requested a temporary restraining order on
an ex parte basis, and the Company did not have the opportunity
to file a response. The district court issued a temporary
restraining order prohibiting the spin-off until a hearing could
be conducted. Following an October 11, 2001 hearing at which
counsel for all parties appeared, the district court dissolved
its temporary restraining order and denied the application for a
preliminary injunction, thereby allowing Overhill Corporation to
proceed with the proposed spin-off.
In September 2002, the same plaintiffs filed a second
application with the district court to enjoin the spin-off. The
Company is preparing a response in opposition to the application
which will be filed with the district court. No hearing has
been set on the second application, and the district court has
not entered any orders with respect to the plaintiffs'
application. The Company has indicated that it will continue to
vigorously defend against what it believes are unsupportable
claims advanced by the plaintiffs. Unless enjoined from doing
so, the Company will continue its efforts to complete the spin-
off.
PANDA FUNDING: S&P Says Outlook for BB- Rating is Negative
----------------------------------------------------------
Standard & Poor's Ratings Services removed Panda Funding Corp.'s
double-'B'-minus rating from CreditWatch, following approval of
the qualifying facility compliance waiver by the Federal
Regulatory Energy Commission's at its Panda-Rosemary facility.
However, due to a forced outage at its other facility, Panda-
Brandywine, the outlook is now negative.
Standard & Poor's placed Panda Funding's rating on CreditWatch
negative on July 11, 2002, out of concerns about the potential
that the Panda-Rosemary facility may lose its QF status because
of declining demand for its steam output. The FERC's waiver
affords Panda-Rosemary adequate time to install a water
distillation facility that could replace the current steam host,
allowing the facility to maintain its QF status. Given the
simple technology involved in constructing the facility,
Standard & Poor's expects Panda-Rosemary to complete the
distillation facility by the end of 2002, well within the time
allotted by the waiver, which extends to the end of 2003. The
cost to install the distillation facility is expected to be
approximately $4 million.
Panda-Brandywine, Panda Funding's other power project,
experienced forced outages in June and July, resulting in
availability of approximately 57% for those months. The
consolidated debt service coverage ratios at Panda Funding, as a
result, are expected to drop to 1.11x, 1.07x, and 1.09x for
2002, 2003, and 2004, respectively. The coverage ratios at the
time of bond issuance were projected to be 1.24x for all three
years.
The smaller margin of error caused by lower DSCRs for 2003 and
2004 leads Standard & Poor's to conclude that Panda Funding's
outlook is negative. Even though another significant setback
could result in a downgrade, the underlying economic
fundamentals of Rosemary and Brandywine remain strong.
PARK PHARMACY: Defaults on Revolving Line of Credit & Term Loan
---------------------------------------------------------------
Park Pharmacy Corporation (OTCBB:PPRX), a regional network of
specialty pharmacies focusing on high-end and technical pharmacy
services, filed a Form 8-K with the Securities and Exchange
Commission related to its line of credit and term loan. The
Company has previously announced efforts to refinance or
restructure its revolving line of credit and term loan with the
Bank of Texas N.A., in the aggregate amount of approximately
$5.7 million.
In this filing, the Company stated that, within the past week,
it received a notice of default from Bank of Texas under the
Company's revolving line of credit and term loan subsequent to
the Company's failure to make principal and interest payments on
August 31, 2002. The Company's line of credit and term loan is
secured by substantially all of the Company's assets. To the
extent that the Company is not able to refinance or restructure
this indebtedness and the Bank of Texas pursues available
remedies, the Company may be forced to seek protection by filing
for bankruptcy.
Dallas, Texas-based Park Pharmacy Corporation is developing a
regional network of community and specialty pharmacies focusing
on high-end and technical pharmacy services. Through its
operating subsidiaries, Park Pharmacy provides a variety of
services and products, such as (i) retail community drugstores
offering a comprehensive inventory of medicines; (ii) infusion
and compounding pharmacy services; (iii) durable and home
medical equipment and supplies; (iv) home care/institutional
pharmacies and (v) wholesale medical supply.
PERKINELMER CORP: Expects to Violate Covenant Under Credit Pact
---------------------------------------------------------------
PerkinElmer, Inc., (NYSE:PKI) has entered into amendments to its
two unsecured credit facilities. As noted in the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended June
30, 2002, the Company was in compliance with these covenants as
they were in effect as of June 30, 2002, but was not certain if
it would be able to comply with the Interest Coverage covenant
as of the end of the fiscal quarter ending September 30, 2002.
With these amendments, the Company believes that it will now be
in compliance with the covenants. Details of the amendments will
be made available in a Current Report in Form 8-K which the
Company intends to file with the SEC.
PerkinElmer, Inc., is a global technology leader focused in
three businesses - Life Sciences, Optoelectronics and Analytical
Instruments. Combining operational excellence and technology
expertise with an intimate understanding of our customers'
needs, PerkinElmer creates innovative solutions - backed by
unparalleled service and support - for customers in health
sciences, communications and other markets whose applications
demand precision and speed. The company operates in more than
125 countries, and is a component of the S&P 500 Index.
Additional information is available through
http://www.perkinelmer.comor 1-877-PKI-NYSE.
PREVIO: Shareholders Agree to Sale of Technology Assets for $1MM
----------------------------------------------------------------
Previo, Inc., (Nasdaq: PRVO) announced the results of the
special meeting of its stockholders that was held on September
17, 2002.
The stockholders of Previo approved the sale of Previo's core
technology and related non-cash assets to Altiris, Inc. (Nasdaq:
ATRS). Previo will receive a total of $1,000,000 for the sale
of its assets to Altiris (including $500,000 Previo already
received pursuant to a license agreement it entered into with
Altiris on June 24, 2002). The closing of the asset sale with
Altiris is expected to occur early this week.
The stockholders of Previo also approved the dissolution and
liquidation of Previo and the plan of dissolution. Previo
anticipates that it will file a certificate of dissolution with
the office of the Secretary of State of the state of Delaware,
immediately following the closing of the asset sale with
Altiris. Upon filing the certificate of dissolution, Previo
will close its stock transfer books and delist its common stock
from the Nasdaq National Market.
SAFETY-KLEEN CORP: Court Approves Bruce E. Roberson as Sales EVP
----------------------------------------------------------------
Safety-Kleen Corp.'s and its debtor-affiliates' ability to
maintain their business operations and preserve value for their
estates is dependent upon, among other things, the employment
and dedication of an Executive Vice President for Sales &
Marketing of the Company who possesses relevant experience,
knowledge and skills. The Debtors' Human Resources &
Compensation Committee determined that a qualified Executive
Vice President for Sales & Marketing with strong leadership
abilities will assist the Debtors in their efforts towards a
successful restructuring and emergence from bankruptcy.
The Debtors sought and obtained the Court's authority to sign an
employment agreement and an indemnification agreement with Bruce
E. Roberson, who will serve as the Executive Vice President for
Sales & Marketing.
As a consultant to the Debtors for the past year, Mr. Roberson
has been involved in designing and implementing the new market
model system for the Branch Sales and Service Division. Mr.
Roberson's considerable familiarity and knowledge of the
Debtors' operations and business plan will facilitate his
immediate engagement with the Debtors' emergence effort.
Summary Of The Roberson Agreements
Upon approval of the Roberson Agreements, Mr. Roberson will
serve as Executive Vice President for Sales & Marketing of
Safety-Kleen Corporation and, as Mr. Roberson may agree to from
time to time, in appropriate positions in each Safety-Kleen
subsidiary, with the duties, functions, responsibilities and
authority customarily associated with the position. But Mr.
Roberson will not be required to exercise control over the waste
handling practices of the Company except in his role as
Executive Vice President for Sales & Marketing. Mr. Roberson
will report to the Chairman of the Board of Directors, President
& Chief Executive Officer of the Company. The salient terms of
the Roberson Agreements are:
(a) Term and Duties: Mr. Roberson will serve as Executive
Vice President for Sales & Marketing through
September 1, 2003, unless his employment is earlier
terminated;
(b) Salary and Bonus: Mr. Roberson will receive an annual
salary of $350,000, payable in accordance with the
Company's normal payroll practices for executives.
During the pendency of the Company's Chapter 11
proceedings, Mr. Roberson also will be entitled to a
guaranteed bonus of $350,000, payable in accordance
with the Company's normal payroll practices for
executives over the first 12 months of the Employment
Period. Mr. Roberson also will be entitled to a $200,000
Retention Fee payable on the first to occur of:
-- the effective date of the confirmation of SKC's
plan of reorganization,
-- SKC's liquidation,
-- conversion of SKC's proceeding to Chapter 7, or
-- all or substantially all of the Company's,
including any debtor affiliate's, assets are sold
or disposed of in one or more transactions
(excluding the sale of the Chemical Services
Division).
If these events do not occur prior to the completion
of the Employment Period and the Executive's employment
was not terminated for Cause, Death or Disability,
after the completion of the Employment Period, the
Company will pay Mr. Roberson a cash amount equal to
the Retention Fee.
(c) Termination: If Mr. Roberson's employment is terminated
for Cause or he terminates his employment during the
Employment Period other than in an Involuntary
Termination, the Company will pay him within ten days
after the Date of Termination and any other compensation
earned for the period up to the Day of Termination that
has not yet been paid, plus the cash equivalent of any
accrued but unused vacation. If Mr. Roberson's
employment is terminated by an Involuntary Termination,
the Company will pay him within ten days after the Date
of Termination, a lump-sum cash amount equal to the sum
of:
-- any portion of the Salary and any other compensation
earned for the period up the Date of Termination that
has not yet been paid,
-- the cash equivalent of any accrued but unused
vacation, and
-- one year of Salary.
(d) Indemnification: Mr. Roberson will be entitled to
indemnification to the fullest extent provided to other
officers and directors of the Company in accordance
with the Certificate of Incorporation, Articles and
By-Laws of the Company, but in no event less than the
maximum extent permitted under Delaware law, and will
be covered by the Company's current directors and
offices' liability insurance. Mr. Roberson will have
no liability in his capacity as Executive Vice President
for Sales & Marketing or in any other capacity
contemplated by the Roberson Agreements to any of the
Debtors, the Debtors' respective affiliates, and/or any
of their respective creditors, shareholders, employees,
officers and/or bankruptcy estates, and/or to any
superseding trustee appointed with respect to any
estates -- whether under Chapter 11 or Chapter 7 --
and/or any other person or entity for any claim, loss,
cost or other damage of any nature, except only to the
extent that the liability, claim, loss, cost or other
damage is finally adjudged by a court of competent
jurisdiction, after exhaustion of all appeals therefrom,
to have been caused by Mr. Roberson's gross negligence
or willful misconduct -- and any actions, omissions or
other matters taken with Bankruptcy Court approval will
conclusively be deemed not to constitute negligence,
gross negligence or willful misconduct.
The Debtors contend that entering into contractual arrangements
with an executive vice president is within the ordinary course
of their as contemplated by the Bankruptcy Code. However, the
Debtors believe it was more appropriate to file the Motion
because of the obvious significance and relevance of the
Debtors' choice of a Vice President for Sales & Marketing to the
creditors and interested parties in these Chapter 11 cases.
The Debtors explain that the terms of Mr. Roberson's employment
agreement and the indemnification agreement are necessary to
induce him to accept employment with the Debtors. Moreover, the
Debtors have determined that the proposed terms of the Roberson
Agreements are within the range of those for senior executive
officers employed with companies of comparable size, value and
reputation. In addition, the lenders have approved the terms
proposed in the Roberson Agreements. (Safety-Kleen Bankruptcy
News, Issue No. 45; Bankruptcy Creditors' Service, Inc.,
609/392-0900)
SCOTTS CO.: S&P Affirms BB Rating & Revises Outlook to Positive
---------------------------------------------------------------
Standard & Poor's revised its outlook on Marysville, Ohio-based
The Scotts Co. to positive from stable. At the same time,
Standard & Poor's affirmed its double-'B' corporate credit and
senior secured debt ratings, as well as its single-'B'-plus
subordinated debt rating and preliminary double-'B'/single-'B'-
plus senior unsecured debt/subordinated debt ratings on the lawn
and garden care products company.
As of June 30, 2002, the company had about $835 million of debt
outstanding.
"The outlook revision reflects the expectation that Scotts will
further improve its financial profile," said Standard & Poor's
credit analyst Jean C. Stout. "While Scotts is expected to
improve its leverage after a planned sale of 4.2 million shares
(the proceeds of which would be used primarily for debt
reduction), the company will be challenged to continue improving
its operating performance. This challenge includes the
implementation of its recently announced multiyear international
restructuring plan."
The ratings are based on Scotts' high debt levels and the
inherent seasonality in its business. However, somewhat
mitigating these concerns are the firm's competitive position
and leading brand names in the consumer lawn and garden market
in the U.S. and Europe.
Scotts is a leading provider of consumer products for lawn and
garden care, professional turf, and horticulture, with well-
recognized brand names. The company also provides residential
lawn care, tree and shrub care, and external pest control
services through its Scotts LawnService. Acquisitions during the
past several years significantly expanded the company's product
portfolio, especially in U.S. pesticides, and provided Scotts
with a strong presence in the European market. International
sales, which account for about 20% of total sales, add some
diversity. Nevertheless, competition based on price will be a
primary concern for the rating, even though Scotts has been
successful so far in limiting the negative effect of the U.S.
patent expirations for Roundup's active ingredient in September
2000 and for the Methylene-urea product composition patent for
Scotts' Turf Builder in July 2001, through aggressive
advertising and new formulations.
SPECIAL METALS: Names Dennis Wanlass as Chief Restructuring Off.
----------------------------------------------------------------
Special Metals Corporation (OTC:SMCXQ) announced that Dennis L.
Wanlass has been appointed to the newly-created position of Vice
President, Chief Financial Officer and Chief Restructuring
Officer.
J. Garvin Warden, who has served as the Chief Restructuring
Officer since the Company and its U.S. subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
U.S. Bankruptcy Code, is winding down his daily involvement to
return to his crisis management business, Cornerstone Capital
Advisors, Ltd., in Pittsburgh, PA.
Dr. T. Grant John, Special Metals' President said, "The
capabilities and expertise that Mr. Warden brought to Special
Metals have been an invaluable resource in guiding the Company
through a myriad of complex issues in the initial phase of the
Chapter 11 proceeding. His willingness to join us over the past
six months has been a key facet in helping the Company navigate
through the challenges of the reorganization process. I am
pleased that Mr. Warden will continue to be available to the
Company for special problem situations."
In an expansion of his current role as Vice President and Chief
Financial Officer, Dennis L. Wanlass will now assume the duties
of Chief Restructuring Officer, a requisite position under the
terms of the Company's $60 million post-petition revolving
credit agreement. Dr. John added, "Given his strong financial
background and prior experience in Chapter 11 proceedings while
serving as the Chief Financial Officer of Geneva Steel, Mr.
Wanlass is eminently qualified to take on these additional
responsibilities."
Special Metals is the world's largest and most-diversified
producer of high-performance nickel-based alloys. Its specialty
metals are used in some of the world's most technically
demanding industries and applications, including: aerospace,
power generation, chemical processing, and oil exploration.
Through its 10 U.S. and European production facilities and a
global distribution network, Special Metals supplies over 5,000
customers and every major world market for high-performance
nickel-based alloys.
SUPERIOR TELECOM: S&P Drops Corp. Credit, Sr. Debt Ratings to SD
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and senior secured debt ratings on cable and wire manufacturer
Superior Telecom Inc., to 'SD' (selective default) from triple-
'C'. The rating action followed Superior Telecom's announcement
that it has amended its debt payments in order to reduce its
burdensome 2003 principal amortization schedule. East
Rutherford, New Jersey-based Superior Telecom has approximately
$1.2 billion in debt outstanding.
"Standard & Poor's deems the restructuring of debt service
tantamount to a default," said Standard & Poor's credit analyst
Eugene Williams. "Standard & Poor's expects to assign a rating
to the restructured debt obligations soon."
Superior Telecom's communication wire businesses have suffered
as major telephone companies have reduced capital expenditures.
Major telephone companies are not expected to increase capital
expenditures substantially before mid-2003. Weak underlying
conditions over the past few years in the OEM, electrical
wiring, and communications businesses have resulted in poor
financial performance.
SWITCHBOARD INC: Files Restated FY 2001 Results on Form 10-K
------------------------------------------------------------
Switchboard Incorporated (Nasdaq: SWBDE) has completed the re-
audit and restatement of its 2001 financial results. Full
details of the restatement are available in Switchboard's
Amendment No. 1 to Annual Report on Form 10-K for the fiscal
year ended December 31, 2001, filed with the Securities and
Exchange Commission Thursday.
The Company's amendment No. 1 to Quarterly Report on Form 10-Q,
containing its restated financial results for the fiscal quarter
ended March 31, 2002 and its Quarterly Report on Form 10-Q,
containing financial results for the fiscal quarter ended June
30, 2002 are being completed. The Company expects to file these
documents with the SEC in the near future. Following these
filings, the Company intends to schedule a conference call for
investors to provide a review of its restated and second quarter
2002 financial results.
The SEC has advised Switchboard that it will be delivering to
the Company a document request in connection with an
investigation by the SEC of the restatements of Switchboard's
financial statements. The Company intends to cooperate with the
SEC regarding this investigation.
As previously announced on August 21, the Company received a
Nasdaq staff determination letter indicating that it does not
comply with applicable listing requirements due to its failure
to file its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2002 within the stipulated time period. Accordingly,
its securities are subject to delisting from the Nasdaq stock
market. A hearing has been scheduled by Nasdaq for September
20, 2002 to review the Company's listing status. Nasdaq will
make a final determination following the hearing.
Headquartered in Westborough, Mass., Switchboard Incorporated is
the leading provider of Web-hosted directory technologies and
customized yellow pages platforms to yellow pages publishers,
newspaper publishers and Internet portals that offer online
local directory advertising solutions to national retailers and
brick and mortar merchants across a full range of Internet and
wireless platforms. Switchboard offers a broad range of
functions, content and services including yellow and white
pages, product directory, What's Nearby(SM) proximity searching,
and interactive maps and driving directions. Viewed more than
100 million times each month, Switchboard.com --
http://www.switchboard.com-- is an excellent resource to
consumers and a showcase for Switchboard's superior directory
technologies and breadth of product offerings. ePresence
(Nasdaq: EPREE) owns approximately 53.2% of the outstanding
shares of Switchboard. "Switchboard" and "What's Nearby" are
registered service marks and "Switchboard Matrix" is a service
mark of Switchboard Incorporated. Other trademarks and service
marks used in this release are the property of their respective
owners.
TANDYCRAFTS: Seeks Open-Ended Lease Decision Period Extension
-------------------------------------------------------------
Tandycrafts, Inc., and its debtor-affiliates seek a fifth
extension on their lease decision period from the U.S.
Bankruptcy Court for the District of Delaware. This time, the
Debtors ask the Court for an open-ended extension of their time
to decide whether to assume, assume and assign, or reject their
unexpired nonresidential real property lease until the effective
date of any plan of reorganization.
Since obtaining the Fourth Extension, the Debtors have
undertaken considerable efforts to advance their chapter 11
cases toward confirmation of a plan of reorganization.
Particularly, the Debtors proceeded along a "dual-track" process
where they continued to pursue the self-funded stand-alone Plan,
while simultaneously conducting negotiations respecting a
potential alternative plan proposal received from a third-party.
After performing substantial due diligence, the third-party
attempted to alter the initial terms of the transaction. The
Debtors determined that the proposed changes in the transaction
terms were not in the best interests of their estates, and
discussions with the third-party were terminated. A hearing to
consider the adequacy of the Disclosure Statement in connection
with the stand-alone Plan is scheduled on September 11, 2002.
As a result of the time expended in connection with Plan-related
efforts, the Debtors have not yet been able to complete their
examination of the Leases. The Debtors relate that since the
inception of these Chapter 11 cases, they have been consumed
with addressing exigent administrative and operational matters,
which included:
i) Stabilizing their day-to-day operations (and
customer/vendor relations);
ii) Attending to critical cash collateral and cash
management needs and, negotiating the consensual use
of cash collateral - three interim orders entered have
already been entered since the Petition Date;
iii) Negotiating a $2.65 million debtor-in-possession
financing facility;
iv) Marketing certain real property located in Ft. Worth,
Texas for disposition and negotiating definitive
agreements regarding same;
v) Pursuing strategic restructuring alternatives in
conjunction with their retained investment bankers;
vi) Developing a preliminary and revised long-term
business plan;
vii) Conducting extensive negotiations with the Banks and
the Committee regarding the terms of a stand-alone
plan of reorganization;
viii) Filing a stand-alone plan; and
ix) Exploring third-party plan alternatives.
Tandycrafts, a leading manufacturer and marketer of picture
frames, mirrors and other wall decor products, filed for chapter
11 protection on May 15, 2001. Mark E. Felger, Esq., at Cozen
and O'Connor, represents the Debtors in their restructuring
efforts. Michael L. Vild, Esq., at The Bayard Firm and Jeffrey
D. Prol, Esq., at Lowenstein Sandler PC serve as counsel to the
Official Unsecured Creditors Committee. When the Company filed
for protection from its creditors, it listed assets of
$64,559,000 and debts of $56,370,000.
TECHNICAL COMMS: Commences Trading on OTCBB Effective Today
-----------------------------------------------------------
Technical Communications Corporation (NASDAQ:TCCO) received
notification from NASDAQ on September 17, 2002 of its
determination to delist the Company's securities from the Nasdaq
SmallCap Market, because the Company did not comply with either
the minimum $2,000,000 net tangible assets or $2,500,000
stockholders' equity requirements for continued listing set
forth in Marketplace Rule 4310(C)(B). Accordingly, the Company's
securities will be delisted from the Nasdaq SmallCap Market at
the opening of business today, September 23, 2002.
The Company anticipates its securities will be traded on the OTC
Bulletin Board. There can be no assurance, however, that there
will be a market maker for the Company's securities or that an
active market will develop.
TELEGLOBE: Selling Core Business to Cerberus, et al for $155MM
--------------------------------------------------------------
Teleglobe Inc., entered into an agreement to sell its core voice
and data business to a company controlled by affiliates of
Cerberus Capital Management, L.P. and TenX Capital Partners, LLC
of New York and Philadelphia, respectively.
Under terms of the agreement, the purchaser will pay US$155.3
million cash for the assets, subject to certain adjustments. The
agreement is subject to a number of conditions including
approvals by the courts in Canada and the US as well as other
regulatory approvals. It is expected that the purchaser will
assume day-to-day operations of the business under an interim
management agreement in mid-November following court approval.
Final closing of the transaction is expected early next year.
John Brunette, Teleglobe's Chief Executive Officer, said, "For
employees and customers, the transition is expected to be
smooth." Serge Fortin, Teleglobe's Chief Operating Officer,
commented, "Teleglobe has been operating on a business-as-usual
basis since filing for creditor protection on May 15, 2002.
Customers will continue to benefit from the world class service
they expect from Teleglobe's professional organization."
Mike Green, General Partner of TenX, commented, "We are excited
about the Teleglobe business and its potential for growth. The
management team as well as the employee and customer base is
very strong and was part of the reason we decided to make this
investment." Lenard Tessler, Managing Director of Cerberus,
said, "This is an excellent long-term investment for our group.
Teleglobe is consistent with the types of companies in which
Cerberus likes to invest."
Both Mr. Green and Mr. Tessler emphasized that Teleglobe's
headquarters and operations centre will remain in Montreal. Mr.
Brunette will oversee the transition period. Mr. Fortin will
continue to lead the company beyond the transition under the new
ownership.
Cerberus Capital Management, L.P., and its affiliated entities
manage funds and accounts with capital in excess of US$8
billion. Cerberus' main office is located in New York City.
TenX Capital Partners, LLC is a private equity firm with
investments in a select group of middle-market technology,
communications and business services companies.
A sales process was conducted which provided the opportunity to
expose the business to the widest possible number of potential
acquirers. Fundamental to the process was the recognition that
it must be expeditious to preserve the value of the business and
protect the interests of Teleglobe's stakeholders. This
culminated in an agreement four months after initiation of the
process.
Lazard is acting as the investment banker to Teleglobe.
TELIGENT INC: Successfully Emerges from Chapter 11 Proceeding
-------------------------------------------------------------
On September 6, 2002, the United States Bankruptcy Court for the
Southern District of New York entered an order confirming
Teligent, Inc.'s Plan of Reorganization, subject to certain
conditions precedent to its effectiveness. On September 12,
2002, the Company satisfied these conditions and declared the
Plan effective.
The Company has determined that following the effectiveness of
the Plan there are fewer than 300 holders of record, as defined
pursuant to the rules and regulations of the Securities and
Exchange Commission, of the Company's Class A common stock. As a
result the Company intends to promptly file a Form 15 with the
SEC to terminate, effective immediately upon such filing, the
registration of its Class A common stock.
TRANSCARE CORP: Seeking Authority to Pay Critical Trade Claims
--------------------------------------------------------------
Transcare Corporation and its debtor-affiliates request
authority from the U.S. Bankruptcy Court for the Southern
District of New York, to pay, in their sole and sound business
judgment, their Critical Trade Creditors in the ordinary course
of business.
The Debtors relate to the Court that they purchase highly
specialized services from:
a) Pennsylvania Subcontractors
To fulfill their obligations that arise under a highly
profitable and critically important HMO provider contract,
the Debtors rely on the PA Subcontractors which fulfill a
substantial part of the obligations arising under such
contract. The Debtors illustrate that if any portion of the
PA Subcontractors refused to perform because of Debtors'
nonpayment, they would be unable to locate suitable
replacements of the finite number of private ambulance
transport providers in the highly specialized nature of
their services. Furthermore, the HMO provider contracts
represent over 60% of the Debtors' revenue in the
Pennsylvania market. Accordingly, the Debtors would be
forced to shut down their Pennsylvania operations if the PA
Subcontractors ceased doing business with the Debtors. As
of the Petition Date, the Debtors estimate that they owe
approximately $150,000 to the PA Subcontractors
collectively.
b) Billing Vendors
The Debtors' billing system is complex due to the nature of
the Debtors' businesses and because the Debtors have to
follow specific billing procedures that are unique to each
insurance company, as well as government agencies like
Medicare and Medicaid. To expedite and streamline this
complicated process, the Billing Vendors are integral to
the Debtors' customized billing system. Accordingly, it is
necessary to pay the Billing Vendors for amounts
outstanding as of the commencement of these cases, which is
approximately $50,000.
c) Automotive Parts Suppliers
Ford Motor Company manufactures all of the Debtors'
ambulances, and the Debtors use only authorized factory
parts for the maintenance of their ambulance fleet. The
Automotive Parts Suppliers are located in close proximity
to the Debtors' Brooklyn, Westchester, Amityville,
Pennsylvania and Maryland operations, and they pick up, or
deliver and install, repair parts roughly 15 to 20 times
per day. If the Automotive Parts Suppliers were to cease
business with the Debtors, the Debtors would be forced to
go to other dealerships not in close proximity to their
Operation Centers, which would paralyze the Debtors'
ability to repair their vehicles for a period of time. The
Debtors estimate that they owe approximately $50,000 to the
Automotive Parts Suppliers as of the Petition Date.
d) Medical Suppliers
The Debtors purchase proprietary replacement and repair
parts for their medical equipment from the Medical
Suppliers. If the Debtors' ability to purchase these
proprietary parts is compromised, certain critical medical
equipment will not be operational, which will jeopardize
the Debtors' ability to service their customers. The
Debtors estimate that they owe approximately $50,000 to the
Medical Suppliers as of the Petition Date and not more than
$25,000 to any one Medical Supplier.
e) Communication Suppliers
The Debtors use radio and related communications equipment
and services to operate their communication-intensive
Operation Centers. The Operation Centers are staffed 24
hours a day whereby the Debtors' staff receive incoming
calls for transportation, gather certain pertinent
information and locate the appropriate ambulance to handle
the transport. Any interruption in the use or operation of
the equipment provided by the Communications Suppliers
would cripple the Debtors' ability to receive, process and
handle calls for transportation. The Debtors estimate that
they owe approximately $50,000 to the Communications
Suppliers.
The Debtors estimate that, as of the Petition Date, they owed
roughly $350,000 to Critical Trade Creditors, and that no one
Critical Trade Creditor is owed in excess of $60,000.
Accordingly, the Debtors seek authority to pay Critical Trade
Creditors no more than $350,000. Given the Debtors' cash
position and the availability of postpetition financing, the
Debtors submit that there is more than adequate liquidity to pay
the Critical Trade Claims.
TransCare, a privately held corporation, is one of the largest
privately owned providers of ambulance and ambulette services in
the United States, providing both emergency and non-emergency
services, primarily on a fee-for-service basis. The Company
filed for chapter 11 protection on September 9, 2002. Matthew
Allen Feldman, Esq., at Willkie Farr & Gallagher represents the
Debtors in their restructuring efforts. When the Debtors sought
protection from its creditors, it listed an estimated assets of
$10 million to $50 million and debts of over $100 million.
TYCO INTL: Will Conduct Investor Conference Call on Wednesday
-------------------------------------------------------------
Tyco International Ltd., (NYSE: TYC, LSE: TYI, BSX: TYC) will
hold a conference call on Wednesday, September 25, 2002 at 8:00
am EDT.
The call will consist of an update on recent events at Tyco
followed by a question and answer session with Chairman and CEO
Ed Breen. The call can be accessed in three ways:
-- At the following Web site:
http://investors.tycoint.com/medialist.cfm A replay of the call
will be available through October 2 at the same Web site.
-- By telephone dial-in with the capability to participate
in the question and answer portion of the call. The telephone
dial in number for the participants in the United States is:
(800) 288-8976. The telephone dial-in number for the
participants in International locations is: (612) 326-1011. Due
to capacity limitations on the part of our teleconference
service provider, the number of lines available is limited. If
these lines have reached their limit, investors will need to
call the "listen-only" number provided below.
-- By telephone dial-in to participate in a "listen-only"
mode. The telephone dial-in number for the participants in the
United States is: (800) 260-0702. The telephone dial in number
for the participants in International locations is: (612) 326-
1000 The participants' code for all callers is: 653044.
Investors who do not intend to ask questions should dial this
number directly.
The replay is scheduled to be available later in the day on
September 25, 2002 until 11:59 PM on October 2, 2002. The dial-
in numbers for the replay are as follows: (U.S.): (800) 475-
6701. International: (320) 365-3844. The replay access code for
all callers is: 653035.
Tyco International Ltd., is a diversified manufacturing and
service company. Tyco is the world's largest manufacturer and
servicer of electrical and electronic components; the world's
largest designer, manufacturer, installer and servicer of
undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems
and electronic security services and the world's largest
manufacturer of specialty valves. Tyco also holds strong
leadership positions in medical device products, and plastics
and adhesives. Tyco operates in more than 100 countries and had
fiscal 2001 revenues from continuing operations of approximately
$34 billion.
* * *
As previously reported, Standard & Poor's Ratings Services said
that its ratings, including its triple-'B'-minus corporate
credit rating, on Tyco International Ltd., and its subsidiaries
remain on CreditWatch with negative implications following the
company's recent earnings announcement, appointment of a new
CEO, and denial of bankruptcy rumors.
Hamilton, Bermuda-based Tyco is a diversified company with total
debt of about $26 billion.
Standard & Poor's noted that Tyco began the quarter with more
than $7 billion in cash following the recent IPO of its
commercial finance subsidiary. Management intends to use a
significant portion of this to reduce debt. Recent earnings were
broadly in line with expectations, but free cash flow was below
expectations due to tighter payment terms from suppliers that
reduced operating cash flow by more than $300 million
UNITED AIRLINES: Flight Attendants Continue Work to Refine Plan
---------------------------------------------------------------
The Association of Flight Attendants, AFL-CIO, United Master
Executive Council President Greg Davidowitch issued this
statement following his meeting with the leaders of the other
unions representing workers at United:
"The United Union Coalition met again [Thurs]day. We are
continuing our work to refine the framework for a plan that will
enable the company to access near-term lending, avoid bankruptcy
and address the airline's long-term needs.
"All parties understand the seriousness of the situation
and the timeline United faces with respect to significant
financial obligations coming due. We had expected to present
the framework to CEO Glenn Tilton on approximately September 19,
but we are more focused on refining the plan to make it right,
than we are on getting it done fast.
"No one should conclude that the extra time taken in
developing the plan is a set back. I continue to work with
AFA's analysts and the leaders and analysts of the other unions
to refine the plan to ensure that it meets the needs of United,
the Air Transportation Stabilization Board, and United's Board
of Directors. Once finalized, the framework developed by the
Coalition will enable United to successfully supplement its
application for a loan guarantee."
The United Union Coalition meeting included representatives from
AFA, Air Line Pilots Association, International Association of
Machinists, Transport Workers Union, and Professional Airline
Flight Control Association.
More than 50,000 Flight Attendants, including the 26,000 Flight
Attendants at United, join together to form AFA, the world's
largest Flight Attendant union. Visit http://www.unitedafa.org
for more information.
US AIRWAYS: Court OKs Retention of O'Melveny as Special Counsel
---------------------------------------------------------------
US Airways Group Inc. and its debtor-affiliates sought and
obtained the Court's authority to employ O'Melveny & Myers as
special labor, regulatory, antitrust and litigation counsel.
The O'Melveny attorneys are expected to be responsible for
matters in these cases and their hourly rates are:
Labor Matters
-------------
Robert Siegel $600
Tom Jerman $540
Chris Hollinger $460
Robert E. Winter $355
Rachel A. Shapiro $320
Regulatory Matters
------------------
Joel Burton $600
Patrick Rizzi $390
Benjamin Bradshaw $355
Antitrust and Litigation Matters
--------------------------------
Henry Thumann $660
Tad Allen $540
Neil Gilman $390
O'Melveny will automatically reduce all fees and expenses by
10%.
Specifically, O'Melveny will provide these services:
1) Advertising: Consult, advise and prepare regulatory
pleadings and comments on compliance with advertising
regulations;
2) Regulatory Matters: Review, consult, advise and prepare
regulatory pleadings on foreign and domestic aviation
issues, including applications, renewals, responses to
regulatory proceedings, inquiries, investigations,
enforcement actions, legislative matters and rulemakings,
industry research and analysis;
3) Consumer Issues: Consult, advise and prepare regulatory
pleadings and comments on marketing and customer service
issues, including regulatory compliance, inquiries and
investigations;
4) High Density Rule: Consult, advise and prepare regulatory
pleadings and comments on airport issues, including slots
and airport access;
5) International Route Proceedings: Prepare and analyze
regulatory pleadings concerning international route
authorities, operations and bilateral/multilateral
negotiations and agreements;
6) Domestic and International Codeshare Agreements and
Alliances: Consult, advise and prepare regulatory pleadings
and comments on codeshare agreements and global alliances;
7) Express and Commuter Issues: Consult, advise and prepare
regulatory pleadings and comments concerning the creation,
organization and operation of express affiliates and
subsidiaries:
8) Labor: Provide advice in connection with labor and
employment issues related to bankruptcy;
9) Section 1113: Prepare and prosecute motions pursuant to
Section 1113 of the Code;
10) CBAs: Participate in negotiations of collective bargaining
agreements with US Air's labor unions; and
11) Other Matters: Assist with additional labor or employment
matters as Debtors direct. (US Airways Bankruptcy News,
Issue No. 5; Bankruptcy Creditors' Service, Inc., 609/392-
0900)
DebtTraders reports that US Airways Inc.'s 9.820% bonds due 2013
(U13USR1) are trading between 10 and 20. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=U13USR1for
real-time bond pricing.
VENTAS INC: Names Raymond Lewis SVP & Chief Investment Officer
--------------------------------------------------------------
Ventas, Inc., (NYSE:VTR) announced that Raymond J. Lewis, 38,
will join the Company as Senior Vice President and Chief
Investment Officer, effective October 1, 2002.
"Ray is uniquely qualified for this position because of his
broad industry knowledge and contacts, coupled with his superior
analytical skills," Ventas President and CEO Debra A. Cafaro
said. "He brings to Ventas a proven record of building and
growing businesses successfully in the area of healthcare and
senior housing finance. We are delighted to have someone of
Ray's caliber leading our diversification program and playing a
key role in our senior management team."
Lewis most recently was managing director of business
development for GE Capital Healthcare Financial Services where
he led a team focused on mergers and portfolio acquisitions of
healthcare assets. Prior to that, he was executive vice
president of healthcare finance for Heller Financial, Inc.
(acquired by General Electric Capital Corporation in 2001) where
he had primary responsibility for a $900 million healthcare
lending portfolio. During his tenure at Heller Financial, Lewis
developed an investment strategy and built a portfolio of
healthcare loans, and also developed and implemented a strategic
plan for a new lending group in the senior living sector.
Lewis is the Chairman of the National Investment Center for
Seniors Housing and Long Term Care and formerly served on the
board of directors of the Assisted Living Federation of America.
He received a bachelor's degree in business administration from
the University of Wisconsin - Madison.
"This is an exciting time to join the Ventas team as the Company
executes its diversification program," Lewis said. "I look
forward to implementing our strategy as Ventas continues to
build on its strengths and maintains its industry leading
performance."
Ventas is a healthcare real estate investment trust that owns 43
hospitals, 215 nursing facilities and eight personal care
facilities in 36 states. More information about Ventas can be
found on its Web site at http://www.ventasreit.com
As of June 30, 2002, Ventas reported a total shareholders'
equity deficit of about $95 million.
WASTE TECHNOLOGY: KPMG LLP Expresses Going Concern Doubt
--------------------------------------------------------
Waste Technology Corporation is a manufacturer of baling
equipment which utilize technical, hydraulic and electrical
mechanisms to compress a variety of materials into bales. The
Company's customers include plastic recycling facilities, paper
mills, textile mills, and paper recycling facilities throughout
the United States, the Far East, Europe, and South America.
The Company's management and Board of Directors have substantial
concern over recent operating performances. However, due to
the additional cost reductions implemented in fiscal 2001 and
2002, the Company's management and Board of Directors believe
that it can remain viable as a going concern.
In the third quarter ending July 31, 2002, the Company had net
sales of $1,563,114, as compared to $911,460 in the third
quarter of fiscal 2001, an increase of 71.5%. The higher sales
were the result of higher shipments at International Baler
Corporation and Consolidated Baling Machine Company and included
four synthetic rubber balers.
The Company had net income of $226,704 in the third quarter of
fiscal 2002 as compared to net loss of $157,152 in the third
quarter of fiscal 2001. The higher income was due to the higher
shipments, primarily the synthetic rubber balers and the cost
reductions implemented at the end of the first quarter of 2002.
Gross profit margins improved from 12.5% in 2001 to 32.0% in
fiscal 2002 due to the higher sales and improved absorption of
manufacturing overhead.
In the first nine months of fiscal 2002, the Company had net
sales of $3,930,641 as compared to $4,228,655 in the first nine
months of fiscal 2001, a decrease of 7.0%. The lower sales were
the result of the general economic conditions during the first
six months of the fiscal year.
The Company had net income of $249,667 in the first nine months
of 2002 as compared to a loss of $168,829 in the same period in
the prior year. Due to the cost reductions mentioned previously
gross profit margins were 23.1% versus 20.5% in the prior year
and selling and administrative expenses were $223,421 lower.
The sold order backlog was approximately $980,000 at August 31,
2002 as compared to $1,568,000 at August 31, 2001.
Net working capital at July 31, 2002 was $511,413 as compared to
$226,643 at October 31, 2001. In February 2002, the Company
reached a tentative agreement with Transamerica to settle the
amount due on a Judgment for $280,500 payable in installments
beginning in August 2002. The agreement was finalized in August
of 2002 and the Company will reverse the excess accrued expense
of $321,500 in the fourth quarter of fiscal 2002 and thereby
will increase net working capital by that amount. The Company
believes that it will have sufficient cash flow to be able to
make the installment payments and fund other operating
activities.
On August 7, 2000, the Company entered into a line of credit
agreement with Presidential Financial Corporation which allows
the Company to borrow up to $500,000. The line of credit bears
interest at the prime rate plus one percent (1%) plus certain
service charges. This agreement has a one year term with an
automatic renewal unless either of the parties to the agreement
gives written notice to terminate the agreement at least sixty
(60) days prior to the annual renewal date.
The Company's auditors, KPMG LLP, have stated in its "Report of
Independent Accountants" for October 31, 2001, to the Company's
shareholders that there is "substantial doubt" about the
Company's ability to continue as a going concern. The Company's
Management and Board of Directors have considerable concern
over the Company's ability to return to profitability.
Management, however, believes that it will be able to improve
the Company's financial condition based on its cost-cutting
measures, its recent operating performances and the settlement
of the Judgment with Transamerica and therefore, the Company
believes it will continue as a viable going concern. In the
fourth quarter of fiscal 2002, David B. Wilhelmy joined the
Company as Vice President of Sales and Marketing.
WCI STEEL: Deteriorating Liquidity Spurs S&P to Junk Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on steel
producer WCI Steel Inc.,to triple-'C'-plus from single-'B'-minus
as a result of the company's deteriorating liquidity. The
current outlook is negative. Warren, Ohio-based WCI's total debt
at June 30, 2002, was about $338 million.
"Despite recently improved conditions in the steel industry,
WCI's liquidity continues to deteriorate, mostly due to its
ongoing losses and cash outlays required for its pension plan
and working capital", said Standard & Poor's credit analyst Paul
Vastola. "WCI increased its borrowings by $23 million in the
quarter ended July 31, 2002, and liquidity is now down to its
lowest level since 1998". Mr. Vastola added that the ratings
could be lowered again in the near to intermediate term if
recent improving trends in the industry slow, or if WCI's
liquidity continues to erode.
WCI is a relatively small integrated steel producer that focuses
on certain specialty steel products. Operating leverage is high
and the markets served by the company are mature and highly
cyclical.
WESTPOINT STEVENS: Takes Further Restructuring to Reduce Costs
--------------------------------------------------------------
WestPoint Stevens Inc., (NYSE: WXS) announced additional
restructuring initiatives to increase asset utilization and
lower manufacturing costs through reallocation of production
assets from bath products to basic bedding products and increase
cash flow and profitability through rationalization of its
retail stores division. The Company has received consent from
its senior lenders for the restructuring and accordingly has
amended its Credit Facility. The amendment, filed Friday on Form
8-K with the SEC, adjusts certain financial covenants and
increases the Company's borrowing rate.
Holcombe T. Green, Jr., Chairman and CEO of WestPoint Stevens,
commented, "As a result of our Eight-Point Plan, WestPoint
Stevens has made significant progress in the past two years to
improve its product mix and lower its production costs. As part
of the process, we continue to identify opportunities to enhance
our financial and competitive position."
"[Fri]day we are announcing further rationalization of our towel
operations that will free up capacity to support our expanding
Basic Bedding division," noted M. L. "Chip" Fontenot, WestPoint
Stevens' President and COO. "We are also streamlining our Retail
Stores division, closing non-performing stores. Both actions
will substantially improve cash flow and profitability."
The Company expects the restructuring initiatives to result in a
charge of approximately $36.5 million, $23.4 million net of
taxes. Approximately $20 million pre-tax of the charge is
expected to be non-cash items with annual pre-tax savings
estimated at $10 million. The Company anticipates the charges
will begin in the third quarter ending September 30,
2002. Commenting on the current quarter, Mr. Fontenot noted,
"While our sales for the third quarter are expected to be in
line with our previous guidance of $475 million, we now expect
sales to be softer in the fourth quarter and are adjusting our
annual 2002 guidance down from 2%-4% growth to flat to 2%
growth. In particular, sales to K-Mart have deteriorated further
from previous estimates. Taking proactive steps to manage our
inventory, we have increased our downtime in the third quarter
and for the remainder of the year, and anticipate higher levels
of sell-offs in both quarters."
The actions mentioned above will negatively impact margins for
the third and fourth quarters; therefore, the Company is
withdrawing its prior EPS guidance for 2002 of $0.35 to $0.40,
before restructuring costs. The Company anticipates
re-establishing earnings guidance for 2002 at its upcoming third
quarter earnings conference call scheduled for Friday, November
1, 2002 at 11:00 AM. This call can be accessed as a Webcast at
http://www.westpointstevens.com WestPoint Stevens Inc., is the
nation's premier home fashions consumer products marketing
company, with a wide range of bed linens, towels, blankets,
comforters and accessories marketed under the well-known brand
names GRAND PATRICIAN, PATRICIAN, MARTEX, ATELIER MARTEX, BABY
MARTEX, UTICA, STEVENS, LADY PEPPERELL, VELLUX and CHATHAM --
all registered trademarks owned by WestPoint Stevens Inc. and
its subsidiaries -- and under licensed brands including RALPH
LAUREN HOME, DISNEY HOME, SANDERSON, DESIGNERS GUILD, GLYNDA
TURLEY and SIMMONS BEAUTYREST. WestPoint Stevens is also a
manufacturer of the MARTHA STEWART and JOE BOXER bed and bath
lines.
Westpoint Stevens Inc.'s 7.875% bonds due 2005 (WXS05USR1),
DebtTraders reports, are trading at 32 cents-on-the-dollar. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=WXS05USR1for
real-time bond pricing.
WILBRAHAM CBO: S&P Ratchets Ratings on Class A, B & C Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A, B, and C notes issued by Wilbraham CBO Ltd. and co-
issued by Wilbraham CBO Corp., and removed them from CreditWatch
with negative implications, where they were placed on April 29,
2002.
The lowered ratings reflect several factors that have negatively
affected the credit enhancement available to support the notes.
These factors include par erosion of the collateral pool
securing the rated notes, a downward migration in the credit
quality of the assets within the pool, and a deterioration in
the weighted average coupon generated by the performing assets
within the collateral pool.
The transaction has experienced significant deterioration in its
overcollateralization ratios since it became effective in
October 2000. Currently, the class B and class C
overcollateralization ratio tests for Wilbraham CBO Ltd., are
failing, and the class A overcollateralization ratio has
migrated down to its required minimum. As of the Sept. 2, 2002
monthly trustee report, the class A overcollateralization ratio
was 120.40% (the minimum required is 120%) as compared to an
effective date ratio of 134.10%; the class B
overcollateralization ratio was 107.30% (the minimum required is
113%) as compared to an effective date ratio of 121.10%; and the
class C overcollateralization ratio was 99.85% (the minimum
required is 106.50%) as compared to an effective date ratio of
113.75%.
The credit quality of the assets in the collateral pool has also
deteriorated since the transaction was originated. Currently,
$16,295,000 (or approximately 5.19% of the collateral pool) is
defaulted. In addition, $15,497,207 (or approximately 5.21%) of
the performing assets in the collateral pool come from obligors
with Standard & Poor's ratings currently in the triple-'C'
range; $6,844,668 (or approximately 2.30%) of the performing
assets in the collateral pool come from obligors with Standard &
Poor's ratings currently in the double-'C' range; and
$22,651,035 (or approximately 7.61%) of the performing assets in
the collateral pool come from obligors with Standard & Poor's
ratings currently on CreditWatch negative.
Finally, the weighted average coupon generated by the performing
assets within the collateral pool has trended downward, and is
now below levels assumed in the cash flow runs when the
transaction was initially rated. Currently, the weighted average
coupon of the performing assets is 9.61% as compared to a
weighted average coupon of 10.13% assumed in the cash flow runs
when the transaction was initially rated.
Standard & Poor's has reviewed the current cash flow runs
generated for Wilbraham CBO Ltd., to determine the future
defaults the transaction can withstand under various stressed
default timing scenarios, while still paying all of the rated
interest and principal due on the class A, B, and C notes. Upon
comparing the results of these cash flow runs with the projected
default performance of the current collateral pool, Standard &
Poor's has determined that the ratings previously assigned to
the class A, B, and C notes were longer consistent with the
credit enhancement currently available resulting in the lowered
ratings. Standard & Poor's will continue to monitor the
performance of the transaction to ensure the ratings assigned to
all the notes remain consistent with the credit enhancement
available.
Ratings Lowered And Removed From Creditwatch Negative
Wilbraham CBO Ltd./ Wilbraham CBO Corp.
Class Rating Balance (Mil. $)
To From Original Current
A-1 AA+ AAA/Watch Neg 252.000 228.464
A-2 A+ AA/Watch Neg 19.000 19.000
B-1 BB- BBB/Watch Neg 8.000 8.000
B-2 BB- BBB/Watch Neg 21.000 21.000
C CCC- BB/Watch Neg 19.500 19.500
WILLIAM CARTER: S&P Keeping Watch on Low-B's Over Equity Sale
-------------------------------------------------------------
Standard & Poor's placed its single-'B'-plus long-term corporate
credit and double-'B'-minus senior secured debt ratings for
Morrow, Georgia-based William Carter Co., on CreditWatch with
positive implications. The single-'B'-minus subordinated debt
rating was also placed on CreditWatch.
Total debt outstanding at June 29, 2002, was about $298 million.
"The CreditWatch placement reflects the company's intention to
sell shares of common stock and use the majority of proceeds for
debt reduction, as well as for its improving operating
performance, which has exceeded Standard & Poor's expectations,"
said Standard & Poor's credit analyst Susan Ding.
Standard & Poor's will meet with management and review William
Carter Co.'s operating and financial plans.
Carter's is one of the largest manufacturers and marketers of
baby and young children's apparel in the U.S., selling its
products under the well-recognized Carter's and Carter's
Classics brand names
WINSTAR COMMS: Ch. 7 Trustee Wants to Appoint Directors to Units
----------------------------------------------------------------
The Chapter 7 Trustee, Christine C. Shubert, in the cases of
Winstar Communications, Inc., and its debtor-affiliates seeks
authority from the U.S. Bankruptcy Court for the District of
Delaware to appoint Charles Persing and Paul Lang as Directors
to:
-- Winstar Communications Company Limited, the Debtors'
Thailand subsidiary, and
-- Winstar Hong Kong (BVI) Limited and its related Hong Kong
affiliates.
The Chapter 7 Trustee also asks the Court to appoint other
comparable candidates, in the event that Messrs. Persing and
Lang decline or are unable to serve as directors, and to
compensate and reimburse the Directors for necessary and
beneficial services rendered to during the pendency of the
Chapter 7 cases.
The Chapter 7 Trustee is batting for the appointment of two new
directors to the Debtors' subsidiaries in Hong Kong and Thailand
to acquire a substantial amount of money remaining of the
assets.
Sheldon K. Rennie, Esq., Fox, Rothschild, O'Brien & Frankel, in
Wilmington, Delaware, relates that WCC was one of the Debtors'
ambitious network building projects that was created to build a
wireless network in Thailand. The Debtors own 90% of WCC while
a local partner owns the remaining 10%. The Debtors' local
partner arranged to have WCC's license cancelled earlier this
year. The local directors of WCC have recently resigned and the
directors employed by the Debtors are no longer employees.
Mr. Rennie contends that WCC still has $450,000 after payment of
its liabilities and is also entitled to a VAT tax refund of
$30,000. The process for collecting the tax refund and
expatriating the cash requires the signature of two directors.
The Chapter 7 Trustee is also in the process of marketing WCC to
a local buyer. In the absence of procuring a local buyer, the
Chapter 7 Trustee intends to liquidate WCC to obtain the
remaining cash assets. Either of the actions requires the
appointment of two directors.
Mr. Rennie informs the Court that Winstar Hong Kong, on the
other hand, was another one of the Debtors' ambitious
prepetition endeavors. It was created to build a wireless
network in Hong Kong for PSINet Inc. The endeavor was
undertaken as a joint venture by Winstar Hong Kong with Hong
Kong Land.
Shortly after the joint venture was underway, PSINet filed for
bankruptcy protection. As part of the deal to enable PSINet to
sell its Asian assets, the joint venture received a cash
payment, certain of PSINet's assets and a one-third interest in
a bond deposit. The joint venture recently received $1,700,000
as part of the PSINet bond release. Early next year, an
additional $1,700,000 is set to be released.
Mr. Rennie relates that the shareholders have been discussing
the fate of the joint venture and what proceeds may be available
to the Debtors' estate. No agreement, at this point, has been
reached between the shareholders nor is one forthcoming.
The directors formerly employed by the Debtors for Winstar Hong
Kong have notified the Chapter 7 Trustee of their unofficial
resignation. But in order for the directors to be officially
removed, various forms must be filed with the government
agencies in Hong Kong.
"The estate cannot effectively protect its rights and preserve
the value of the Hong Kong assets without appointing directors,"
Mr. Rennie insists.
The Trustee proposes to compensate the Directors for their
services through the end of 2002 in the amount of $15,000, plus
a nominal monthly fee of $500 for each month that the Directors
are required to serve thereafter. The Trustee also proposes to
indemnify, hold harmless, protect and defend each of the
Directors or their successors for, from and against all claims,
damages, losses, costs and expenses arising in connection in
their capacity as Directors, except in cases arising from gross
negligence or willful misconduct. (Winstar Bankruptcy News,
Issue No. 33; Bankruptcy Creditors' Service, Inc., 609/392-0900)
WORLDCOM: Integral Seeks Stay Relief to Pursue Oklahoma Action
--------------------------------------------------------------
Eric M. Rueben, Esq., informs Judge Gonzalez that Integral
Communications Inc., is in the business of buying
telecommunications capacity from companies, including Worldcom
Inc., and its debtor-affiliates, on a wholesale basis and
reselling capacity to third parties. For almost two years, the
Debtors provided telecommunications services and blocks of
communications capacity called Carrier Termination/Origination
services to Integral on a wholesale basis. During that time
period, Integral received a number of invoices charging retail
instead of wholesale rates as well as charging for services not
provided to Integral. Integral disputed those invoices, some of
which were resolved. Those that were resolved were resolved in
Integral's favor.
According to Mr. Rueben, in late 2000, the Debtors asked
Integral to change account numbers to remedy the billing
problems. However, the Debtors failed to close the old account
and on multiple occasions, invoiced Integral on both accounts
for the same services, some of which were never provided to
Integral and which charged at retail rates. Integral disputed
numerous invoices, but the Debtors never resolved those
outstanding disputes.
In February 2002, Mr. Rueben recounts that the Debtors demanded
payment from Integral, and threatened to disconnect services.
Integral responded that disconnection would be improper and
unwarranted. Nevertheless, the Debtors disconnected services to
Integral on February 22, 2002 and failed to provide reasonable
notice of the disconnection. As a result of the Debtors'
improper and unwarranted disconnection, Integral suffered
substantial losses and expenses, including:
-- refunds and credits Integral had to issue to its
customers,
-- expedited installation and overtime charges from
alternative carriers,
-- overtime for Integral personnel,
-- loss of revenues due to customer cancellations, and
-- other losses and expenses.
On March 22, 2002, the Debtors filed a complaint before the
State of Oklahoma alleging breach of contract concerning the
disputed charges and seeking damages exceeding $800,000. On
April 26, 2002, Integral removed the case to the United States
District Court for the Northern District of Oklahoma. On July
17, 2002, Integral filed its counterclaims against the Debtors:
-- alleging Federal Communications Act of 1934 violations,
negligence, state law deceptive trade practice act
violations; and
-- seeking restitution for unjust enrichment and declaratory
judgment concerning the Oklahoma Consumer Protection Act.
Integral asked for contractual damages over $1,400,000,
restitution of overpayments exceeding $285,000, and tort and
other damages and interest.
Now, Integral asks the Court to lift the automatic stay in order
to continue prosecution of its counterclaims against MCI
WorldCom Network Services Inc.
Allowing the Oklahoma Action to proceed:
-- would result in a complete resolution of all of the issues
involving the Debtors' claims and Integral's counterclaims;
-- would not interfere with the bankruptcy case;
-- would not prejudice the interest of other creditors; and
-- would be the most expeditious resolution and the one that
comports most with judicial economy.
But if the relief requested were denied, Mr. Rueben says, there
would be a vast negative impact on Integral with little related
harm to the Debtors.
Mr. Rueben assures the Court that the automatic stay does not
affect the Debtors' claims as a plaintiff against Integral in
the Oklahoma Action. The Debtors have refused Integral's
request for consent to a lifting of the stay in its entirety as
to all of Integral's Counterclaims. Nevertheless, the same set
of operative and complex facts need only be told a single time
in a single forum to resolve all issues. "Severe harm would
result to Integral if the Debtors were to proceed with its case
against Integral while shielding itself from liability under
Integral's Counterclaims by use of the automatic stay," Mr.
Rueben contends. This result would be clearly inequitable, and
constitute extraordinary circumstances for lifting the automatic
stay. Little harm, if any, will result in allowing the claims
and counterclaims in the Oklahoma Action to proceed together.
(Worldcom Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
DebtTraders reports that Worldcom Inc.'s 11.250% bonds due 2007
(WCOM07USA1) are trading between 22.5 and 27. See
http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM07USA1
for real-time bond pricing.
WORLDWIDE MEDICAL: Closes $1.65 Million Financing with Ziegler
--------------------------------------------------------------
Daniel G. Mc Guire, president and CEO of Worldwide Medical
Corp., (OTCBB:WMED) -- http://www.wwmed.com-- the exclusive
marketer of First Check(R) branded home screening tests for
drugs of abuse, alcohol, cholesterol and colorectal disease
today announced that the company has closed on a significant
financing deal with Ziegler Healthcare Fund 1, L.P. an
institutional investor -- http://www.zieglerhealthcare.com
Mc Guire stated: "We are extremely pleased to have this
opportunity to partner with Ziegler Healthcare. This financing
allows the company to accomplish three very important
objectives.
"First, the company utilized $952,000 of this financing to
either completely satisfy, or reposition approximately $1.8
million in current aged obligations, such that approximately
$250,000 remains in the hands of creditors who have agreed to
accept periodic payments in amounts that do not threaten our
cash flow.
"Second, it provides us with designated capital that we believe
is reasonably sufficient for the sole purpose of investing in
new business and distribution opportunities for our First Check
branded home screening tests. Third, it provides working capital
to allow the company to implement its business plan."
Kevin Gadawski, chief financial officer stated: "This financing
translates into a much healthier balance sheet for Worldwide
Medical Corporation. In addition, I believe we have gained a
financial partner whose goals and interests are in line with
ours, to maximize the return for our stockholders."
Mc Guire further noted, the company believes that the terms of
the financing are favorable to the company and will assist it in
achieving its long-term objectives. The $1.65 million is a five-
year note, with interest only payments for the first 12 months
and fully amortized payments to be made during the next four
years of the term.
The immediate positive improvement to the company's monthly cash
flow is approximately $60,000 versus the cash required to
service the aged debt prior to closing the new financing. In
addition, the company has granted Ziegler Healthcare 1.5 future
warrants per dollar borrowed, exercisable in one year.
* * *
As reported in Troubled Company Reporter's May 6, 2002 edition,
Worldwide Medical's independent auditors, Kelly & Company of
Newport Beach, California, said in its Auditors Report:
"the Company has suffered recurring losses from operations,
has entered several settlement agreements resolving
disputes, litigation and regulatory matters, which require
a significant commitment of funds, has difficulties
generating sufficient cash flow to meet its ongoing
obligations and sustain its operations, and has a
stockholders' capital deficiency that raise substantial
doubt about its ability to continue as a going concern."
* BOND PRICING: For the week of September 23 - 27, 2002
-------------------------------------------------------
Issuer Coupon Maturity Price
------ ------ -------- -----
ABGenix Inc. 3.500% 03/15/07 63
AES Corporation 4.500% 08/15/05 36
AES Corporation 8.000% 12/31/08 54
AES Corporation 8.750% 06/15/08 59
AES Corporation 8.875% 02/15/11 50
AES Corporation 9.375% 09/15/10 58
AES Corporation 9.500% 06/01/09 60
Adaptec Inc. 3.000% 03/05/07 73
Adelphia Communications 3.250% 05/01/21 8
Adelphia Communications 6.000% 02/15/06 8
Adelphia Communications 10.875% 10/01/10 41
Advanced Energy 5.000% 09/01/06 71
Advanced Energy 5.250% 11/15/06 70
Advanced Micro Devices Inc. 4.750% 02/01/22 64
Advanstar Communications 12.000% 02/15/11 66
Aether Systems 6.000% 03/22/05 66
Alternative Living Services (Alterra) 5.250% 12/15/02 3
Alkermes Inc. 3.750% 02/15/07 46
Alexion Pharmaceuticals Inc. 5.750% 03/15/07 46
Amazon.com Inc. 4.750% 02/01/09 66
Amazon.com Inc. 4.750% 02/01/09 66
American Tower Corp. 2.250% 10/15/09 61
American Tower Corp. 5.000% 02/15/10 44
American Tower Corp. 6.250% 10/15/09 46
American Tower Corp. 9.375% 02/01/09 66
American & Foreign Power 5.000% 03/01/30 60
Amkor Technology Inc. 5.000% 03/15/07 26
Amkor Technology Inc. 9.250% 05/01/06 72
Amkor Technology Inc. 9.250% 02/15/08 74
Amkor Technology Inc. 10.500% 05/01/09 50
AnnTaylor Stores 0.550% 06/18/19 64
Armstrong World Industries 9.750% 04/15/08 45
AMR Corporation 9.000% 09/15/16 74
AMR Corporation 9.750% 08/15/21 75
AMR Corporation 9.800% 10/01/21 75
Asarco Inc. 8.500% 05/01/25 35
Atlas Air Inc. 9.250% 04/15/08 51
AT&T Corp. 6.500% 03/15/29 75
AT&T Wireless 8.750% 03/01/31 75
Avaya Inc. 11.125% 04/01/09 68
Best Buy Co. Inc. 0.684% 06?27/21 66
Bethlehem Steel 8.450% 03/01/05 14
Borden Inc. 7.875% 02/15/23 60
Borden Inc. 8.375% 04/15/16 63
Borden Inc. 9.250% 06/15/19 69
Borden Inc. 9.200% 03/15/21 64
Boston Celtics 6.000% 06/30/38 67
Brocade Communication Systems 2.000% 01/01/07 71
Brooks Automatic 4.750% 06/01/08 73
Browning-Ferris Industries Inc. 7.400% 09/15/35 73
Burlington Northern 3.200% 01/01/45 53
Burlington Northern 3.800% 01/01/20 73
CSC Holdings Inc. 7.625% 07/15/18 70
CSC Holdings Inc. 7.625% 04/01/18 74
CSC Holdings Inc. 7.875% 02/15/18 70
CSC Holdings Inc. 8.125% 07/15/09 74
Calpine Corp. 4.000% 12/26/06 50
Calpine Corp. 8.500% 02/15/11 45
Calpine Corp. 8.625% 08/15/10 45
Capital One Financial 7.125% 08/01/08 68
Case Corp. 7.250% 01/15/16 72
Cell Therapeutic 5.625% 03/01/98 64
Centennial Cell 10.750% 12/15/08 57
Century Communications 8.875% 01/15/07 34
Champion Enterprises 7.625% 05/15/09 32
Charter Communications, Inc. 4.750% 06/01/06 45
Charter Communications, Inc. 5.750% 10/15/05 53
Charter Communications, Inc. 5.750% 10/15/05 52
Charter Communications Holdings 8.625% 04/01/09 69
Charter Communications Holdings 9.625% 11/15/09 65
Charter Communications Holdings 10.000% 04/01/09 56
Charter Communications Holdings 10.000% 05/15/11 62
Charter Communications Holdings 10.250% 01/15/10 55
Charter Communications Holdings 10.750% 10/01/09 70
Charter Communications Holdings 11.125% 01/15/11 72
Ciena Corporation 3.750% 02/01/08 60
Cincinnati Bell Telephone (Broadwing) 6.300% 12/01/28 72
Cincinnati Bell Inc. (Broadwing) 7.250% 06/15/23 74
CIT Group Holdings 5.875% 10/15/08 74
Coastal Corp. 6.375% 02/01/09 57
Coastal Corp. 6.500% 05/15/06 73
Coastal Corp. 6.500% 06/01/08 73
Coastal Corp. 6.950% 06/01/28 49
Coastal Corp. 7.750% 10/15/35 53
Coeur D'Alene 6.375% 01/31/05 73
Coeur D'Alene 7.250% 10/31/05 70
Comcast Corp. 2.000% 10/15/29 19
Comforce Operating 12.000% 12/01/07 59
Computer Associates 5.000% 03/15/07 72
Conexant Systems 4.000% 02/01/07 27
Conexant Systems 4.250% 05/01/06 35
Conseco Inc. 8.750% 02/09/04 15
Conseco Inc. 10.750% 06/15/09 23
Continental Airlines 4.500% 02/01/07 50
Continental Airlines 7.568% 12/01/06 58
Corning Inc. 3.500% 11/01/08 57
Corning Inc. 6.300% 03/01/09 61
Corning Inc. 6.750% 09/15/13 53
Corning Inc. 6.850% 03/01/29 43
Corning Inc. 7.000% 03/15/07 69
Corning Glass 8.875% 03/15/16 60
Corning Glass 8.875% 03/15/16 60
Cox Communications Inc. 0.348% 02/23/21 70
Cox Communications Inc. 0.348% 02/23/21 70
Cox Communications Inc. 7.750% 11/15/29 25
Critical Path 5.750% 04/01/05 63
Critical Path 5.750% 04/01/05 63
Crown Castle International 9.000% 05/15/11 65
Crown Castle International 9.375% 08/01/11 67
Crown Castle International 9.500% 08/01/11 67
Crown Castle International 10.750% 08/01/11 71
Crown Cork & Seal 7.375% 12/15/26 62
Cubist Pharmacy 5.500% 11/01/08 50
Cummins Engine 5.650% 03/01/98 64
Dana Corp. 7.000% 03/01/29 73
Dana Corp. 7.000% 03/15/28 73
Delta Air Lines 7.900% 12/15/09 74
Delta Air Lines 8.300% 12/15/29 58
Delta Air Lines 9.000% 05/15/16 69
Delta Air Lines 9.250% 03/15/22 65
Delta Air Lines 9.750% 05/15/21 69
Delta Air Lines 10.375% 12/15/22 72
Dillard Department Store 7.000% 12/01/28 70
Dobson Communications Corp. 10.875% 07/01/10 73
Dobson/Sygnet 12.250% 12/15/08 74
Dresser Industries 7.600% 08/15/96 60
Dynegy Holdings Inc. 6.875% 04/01/11 41
EOTT Energy Partner 11.000% 10/01/09 67
Echostar Communications 5.750% 05/15/08 74
Edison Mission 7.330% 09/15/08 71
El Paso Corp. 7.750% 01/15/32 56
El Paso Energy 6.750% 05/15/09 69
Emulex Corp. 1.750% 02/01/07 72
Enzon Inc. 4.500% 07/01/08 71
Equistar Chemicals 7.550% 02/15/26 68
E*Trade Group 6.000% 02/01/07 64
E*Trade Group 6.750% 05/15/08 75
Extreme Networks 3.500% 12/01/06 75
Finisar Corp. 5.250% 10/15/08 55
Finova Group 7.500% 11/15/09 33
Fleming Companies Inc. 10.625% 07/31/07 61
Fort James Corp. 7.750% 11/15/23 74
Foster Wheeler 6.750% 11/15/05 58
General Physics 6.000% 06/30/04 52
Geo Specialty 10.125% 08/01/08 73
Georgia-Pacific 7.375% 12/01/25 71
Georgia-Pacific 7.250% 06/01/28 71
Georgia-Pacific 7.750% 11/15/29 73
Goodyear Tire 7.000% 03/15/28 71
Gulf Mobile Ohio 5.000% 12/01/56 62
Hanover Compress 4.750% 03/15/08 69
Hasbro Inc. 6.600% 07/15/28 75
Health Management Associates Inc. 0.250% 08/16/20 68
Health Management Associates Inc. 0.250% 08/16/20 68
HealthSouth Corp. 6.875% 06/15/05 75
HealthSouth Corp. 7.000% 06/15/08 70
HealthSouth Corp. 7.625% 06/01/12 69
Human Genome 3.750% 03/15/07 65
Human Genome 5.000% 02/01/07 72
Huntsman Polymer 11.750% 12/01/04 67
I2 Technologies 5.250% 12/15/06 58
ICN Pharmaceuticals Inc. 6.500% 07/15/08 68
IMC Global Inc. 7.375% 08/01/18 71
Ikon Office 6.750% 12/01/25 70
Ikon Office 7.300% 11/01/27 74
Imcera Group 7.000% 12/15/13 69
Imclone Systems 5.500% 03/01/05 55
Inhale Therapeutic Systems Inc. 3.500% 10/17/07 43
Inland Steel Co. 7.900% 01/15/07 57
Interpublic Group 1.870% 06/01/06 69
JL French Auto 11.500% 06/01/09 54
Juniper Networks 4.750% 03/15/07 70
Kmart Corporation 9.375% 02/01/06 21
Kulicke & Soffa Industries Inc. 5.250% 08/15/06 44
LSP Energy LP 8.160% 07/15/25 74
LTX Corporation 4.250% 08/15/06 60
Lehman Brothers Holding 8.000% 11/13/03 63
Level 3 Communications 6.000% 09/15/09 32
Level 3 Communications 6.000% 03/15/09 33
Level 3 Communications 9.125% 05/01/08 58
Level 3 Communications 11.000% 05/01/08 62
Liberty Media 3.500% 01/15/31 62
Liberty Media 3.750% 02/15/30 48
Liberty Media 4.000% 11/15/29 51
Lucent Technologies 5.500% 11/15/08 64
Lucent Technologies 6.450% 03/15/29 38
Lucent Technologies 6.500% 01/15/28 46
Lucent Technologies 7.250% 07/15/06 53
Magellan Health 9.000% 02/15/08 34
Mail-Well I Corp. 8.750% 12/15/08 43
Mastec Inc. 7.750% 02/01/08 73
Medarex Inc. 4.500% 07/01/06 66
Mediacom Communications 5.250% 07/01/06 73
Mediacom LLC 7.875% 02/15/11 64
Mediacom LLC 8.500% 04/15/08 75
Mediacom LLC 9.500% 01/15/13 68
Metris Companies 10.125% 07/15/06 75
Mikohn Gaming 11.875% 08/15/08 65
Mirant Corp. 5.750% 07/15/07 57
Mirant Americas 7.200% 10/01/08 63
Mirant Americas 7.625% 05/01/06 56
Mirant Americas 8.300% 05/01/11 63
Mirant Americas 8.500% 10/01/21 59
Mirant Americas 9.125% 05/01/31 59
Mission Energy 13.500% 07/15/08 43
Missouri Pacific Railroad 4.750% 01/01/20 69
Missouri Pacific Railroad 4.750% 01/01/30 69
Missouri Pacific Railroad 5.000% 01/01/45 60
Motorola Inc. 5.220% 10/01/21 54
MSX International 11.375% 01/15/08 65
NTL Communications 7.000% 12/15/08 14
National Vision 12.000% 03/30/09 60
Natural Microsystems 5.000% 10/15/05 59
Nextel Communications 5.250% 01/15/10 67
Nextel Communications 6.000% 06/01/11 74
Nextel Partners 11.000% 03/15/10 70
NGC Corp. 7.625% 10/15/26 37
Noram Energy 6.000% 03/15/12 72
Northern Pacific Railway 3.000% 01/01/47 52
Northern Pacific Railway 3.000% 01/01/47 52
Nvidia Corp. 4.750% 10/15/07 74
ON Semiconductor 12.000% 05/15/08 73
ONI Systems Corporation 5.000% 10/15/05 71
OSI Pharmaceuticals 4.000% 02/01/09 65
PG&E National Energy 10.375% 05/16/11 36
Panamsat Corp. 6.875% 01/15/28 71
Pegasus Satellite 12.375% 08/01/06 49
PMC-Sierra Inc. 3.750% 08/15/06 69
Primedia Inc. 7.625% 04/01/08 68
Providian Financial 3.250% 08/15/05 64
Public Service Electric & Gas 5.000% 07/01/37 74
Photronics Inc. 4.750% 12/15/06 72
Quanta Services 4.000% 07/01/07 49
Qwest Capital Funding 7.000% 08/03/09 53
Qwest Capital Funding 7.250% 02/15/11 57
Qwest Capital Funding 7.625% 08/03/21 47
Qwest Capital Funding 7.750% 08/15/06 62
Qwest Capital Funding 7.900% 08/15/10 54
Qwest Communications Int'l 7.250% 11/01/06 48
RF Micro Devices 3.750% 08/15/05 74
RF Micro Devices 3.750% 08/15/05 74
Redback Networks 5.000% 04/01/07 33
Rite Aid Corp. 7.125% 01/15/07 69
Rockwell Int'l 5.200% 01/15/98 72
Royster-Clark 10.250% 04/01/09 70
Rural Cellular 9.625% 05/15/08 58
Ryder System Inc. 5.000% 02/25/21 74
SBA Communications 10.250% 02/01/09 59
SCI Systems Inc. 3.000% 03/15/07 59
Saks Inc. 7.375% 02/15/19 74
Sepracor Inc. 5.000% 02/15/07 47
Sepracor Inc. 7.000% 12/15/05 61
Silicon Graphics 5.250% 09/01/04 54
Solutia Inc. 7.375% 10/15/27 71
Sotheby's Holdings 6.875% 02/01/09 74
Sprint Capital Corp. 6.875% 11/15/28 64
Sprint Capital Corp. 6.900% 05/01/19 67
Sprint Capital Corp. 8.750% 03/15/32 74
TCI Communications Inc. 7.125% 02/15/28 74
Tenneco Inc. 10.000% 03/15/08 74
Tenneco Inc. 11.625% 10/15/09 72
Tesoro Pete Corp. 9.000% 07/01/08 64
Time Warner Enterprises 8.375% 03/15/23 74
Time Warner Inc. 6.625% 05/15/29 69
Time Warner Inc. 6.950% 01/15/28 73
Time Warner Telecom 9.750% 07/15/08 54
Transwitch Corp. 4.500% 09/12/05 59
Trenwick Capital I 8.820% 02/01/37 75
Tribune Company 2.000% 05/15/29 68
Triton PCS Inc. 8.750% 11/15/11 71
Trump Atlantic 11.250% 05/01/06 75
Turner Broadcasting 8.375% 07/01/13 74
US Airways Passenger 6.820% 01/30/14 72
US Airways Inc. 7.960% 01/20/18 73
Ugly Duckling 11.000% 04/15/07 60
United Air Lines 10.670% 05/01/04 20
United Air Lines 11.210% 05/01/14 27
Universal Health Services 0.426% 06/23/20 64
US Timberlands 9.625% 11/15/07 54
US West Capital Funding 6.250% 07/15/05 63
US West Capital Funding 6.375% 07/15/08 53
US West Capital Funding 6.875% 07/15/28 67
US West Communications 7.250% 10/15/35 69
US West Communications 7.500% 06/15/23 71
Utilicorp United 7.625% 11/15/09 73
Utilicorp United 7.950% 02/01/11 75
Utilicorp United 8.000% 03/01/23 60
Utilicorp United 8.270% 11/15/21 62
Veeco Instrument 4.125% 12/21/08 68
Vesta Insurance Group 8.750% 07/15/25 73
Viropharma Inc. 6.000% 03/01/07 35
Vitesse Semiconductor 4.000% 03/15/05 71
Weirton Steel 10.750% 06/01/05 74
Westpoint Stevens 7.875% 06/15/08 35
Williams Companies 7.125% 09/01/11 73
Williams Companies 7.875% 09/01/21 65
Wiliams Holding (Delaware) 6.500% 12/01/08 70
Wind River System 3.750% 12/15/06 69
Witco Corp. 6.875% 02/01/26 69
Witco Corp. 7.750% 04/01/23 74
Xerox Corp. 0.570% 04/21/18 58
Xerox Credit 7.200% 08/05/12 67
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices
are obtained by TCR editors from a variety of outside sources
during the prior week we think are reliable. Those sources may
not, however, be complete or accurate. The Monday Bond Pricing
table is compiled on the Friday prior to publication. Prices
reported are not intended to reflect actual trades. Prices for
actual trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
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.
Bond pricing, appearing in each Thursday's edition of the TCR,
is provided by DebtTraders in New York. DebtTraders is a
specialist in global high yield securities, providing clients
unparalleled services in the identification, assessment, and
sourcing of attractive high yield debt investments. For more
information on institutional services, contact Scott Johnson at
1-212-247-5300. To view our research and find out about private
client accounts, contact Peter Fitzpatrick at 1-212-247-3800.
Real-time pricing available at http://www.debttraders.com/
Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
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 USA, and Beard
Group, Inc., Washington, DC USA. Yvonne L. Metzler, Bernadette
C. de Roda, Donnabel C. Salcedo, Ronald P. Villavelez and Peter
A. Chapman, Editors.
Copyright 2002. 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 $625 for 6 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 240/629-3300.
*** End of Transmission ***