T R O U B L E D C O M P A N Y R E P O R T E R Monday, October 6, 2003, Vol. 7, No. 197 Headlines A NOVO: Wants Plan-Filing Exclusivity Extended Until October 30 ACTRADE FINANCIAL: Files Joint Plan and Disclosure Statement AHOLD NV: Full-Year 2002 Net Loss Reaches EUR1.2 Billion Mark AIR CANADA: Canadian Transport Agency Hires Deloitte as Advisor AIRPLANES TRUST: S&P Cuts Ratings on 3 Junk-Rated Note Classes AIRTRAN HOLDINGS: Will Webcast Q3 Conference Call on October 22 AMERCO: Equity Committee Hires Providence Capital as Advisors AMERICA WEST: September Revenue Passenger Miles Slide-Up 5.7% AMERICAN AIRLINES: Overall September 2003 Traffic Tumble 1.7% AMERICAN GREETINGS: Names Catherine M. Kilbane as SVP & Secretary AMN HEALTHCARE: Inks Amendment to BofA-Led Credit Facility ANC RENTAL: Pushing for Approval of MBIA Settlement Agreement ARVINMERITOR: Extends Tender Offer for Dana Until Oct. 30, 2003 AVAYA INC: Completes Acquisition of Certain VISTA Assets BAVARIA SA: S&P Assigns BB Foreign Currency Corp. Credit Rating BAVARIA S.A.: Fitch Rates Planned US$400MM Senior Notes at BB B/E AEROSPACE: Agrees to Sell Senior Notes & Amends Credit Pact BRITEX GROUP: Nova Scotia Business Inc. Appoints Receiver BUCKEYE TECHNOLOGIES: Sets Q1 Conference Call for October 21 CABLE DESIGN: Sinks into Red Ink in Fiscal 2003 Fourth Quarter CALL-NET ENTERPRISES: Completes 1.5-Mil. Class B Shares Offering CELLSTAR CORP: Promotes Robert Kaiser to President and COO CENTERPULSE: BB Ratings Withdrawn Following Zimmer Takeover CHANNEL MASTER: Case Summary & List of Largest Unsec. Creditors CONCERT INDUSTRIES: Court Extends CCAA Order Until December 5 CONNECTICARE INC: BB Ratings Placed on CreditWatch Negative CONSOL ENERGY: RWE Agrees to Sell 27.3 Million CONSOL Shares CONSOLIDATED FREIGHTWAYS: Auctioning-Off Montana Facilities Wed. CONSOLIDATED FREIGHTWAYS: Manfield Facility Up on Auction Block CORRECTIONS CORP: Inks New Contract with U.S. ICE Agency COVANTA ENERGY: Court Fixes Uniform Geothermal Bidding Protocol DANA CORP: Issues Comments on Extended ArvinMeritor Tender Offer DIRECTV LATIN: Wants Nod to Release Confidential Information ECHOSTAR COMMS: DBS Unit Completes $2.5-Bill. Sr. Note Offering ELIZABETH ARDEN: Equity Sale Proceeds will Retire 11-3/4% Bonds ENVOY COMMS: Gets Additional Time Extension to Meet Nasdaq Rules FURR'S RESTAURANT: Completes Asset Sale to Buffet Partners L.P. FURR'S RESTAURANT: Buffet Acquisition Positions Chain for Growth GEORGIA-PACIFIC: Will Publish Third-Quarter Results on Oct. 16 HAYES LEMMERZ: Fred Bentley Named European Wheel Group President HEALTHSOUTH: Makes Semi-Annual Interest Payments to Bondholders HOVNANIAN: Fitch Assigns Initial BB+ Sr. Unsecured Debt Rating IMC HOME: S&P Hatchets Rating on Class B Certificates to BB IMPATH INC: Has Until December 15 to Complete and File Schedules INTERSTATE BAKERIES: Will Close Grand Rapids, Michigan Facility INTRAWEST CORPORATION: US$350 Mill. Unsecured Notes Rated at B+ ITEX CORP: Completes Sale of Sacramento Trade Office for $800K KB HOME: Declares Quarterly Cash Dividend Payable on November 26 KELLSTROM: Delaware Court Confirms Joint Reorganization Plan KINGSWAY FINANCIAL: Completes Trust Preferreds Private Placement KINGSWAY FINANCIAL: Makes Executive Appointments in Two Units LAIDLAW INC: LTI Unit Asks Court to Disallow $8-Mill. IRS Claim LTV: US Trustee Balks at Certain Disclosure Statement Provisions LYONDELL CHEMICAL: Board Declares Regular Quarterly Dividend MAGELLAN HEALTH: Wants Clearance for Justice Dept. Settlement MESA AIR GROUP: September 2003 Traffic Climbs-Up by 55.7% METALS USA: Charles Sanida Discloses Common Stock Ownership MIRANT CORP: Bringing-In Alston & Bird LLP as Special Counsel MISSISSIPPI CHEMICAL: Court OKs $32.5-Mill. DIP Credit Facility MONITRONICS INT'L: June 30 Net Capital Deficit Widens to $40MM MORGAN STANLEY: S&P Keeps Watch on 4 Low-B & Junk Note Ratings NEENAH FOUNDRY: S&P Rates Corporate Debt & Sr. Notes at B/CCC+ NEW WORLD RESTAURANT: Completes Equity Restructuring Transaction NRG ENERGY: Court Okays Bingham McCutchen as Committee's Counsel O'SULLIVAN INDUSTRIES: Closes $140MM Senior Secured Debt Package OWENS CORNING: Wants Nod for Amendments to Plan Voting Protocol OXFORD INDUSTRIES: Q1 Fiscal 2004 Results Reflect Strong Growth PARTNERS MORTGAGE: First Creditors' Meeting Set for October 29 PG&E NATIONAL: Court Allows Committee Members to Trade Securities PILLOWTEX CORP: GGST LLC Pitches Best Bid for Assets at Auction PILLOWTEX: Court Approves Morris Nichols Engagement as Counsel POLAROID CORP: Seeks Nod Allowing Committee to Commence Actions PROXIM CORP: Amends Securities Purchase Pact with Two Investors PW EAGLE: Takes Strategic Initiatives to Enhance Balance Sheet QUEBECOR MEDIA: Videotron Settles Terms of Senior Notes Offering RANGE RESOURCES: Reduces Debt by $88 Million to $380 Million REDBACK NETWORKS: Launches Exchange Offer for 5% Conv. Sub Notes REDDY ICE: $45MM Supplemental Term Loan Facility Rated at B+ RELIANT RESOURCES: Settles Western Market Issues with FERC SAFETY-KLEEN CORP: Wants to Implement Records Management Policy SANMINA-SCI: Set Fourth-Quarter Conference Call for October 23 SEMCO ENERGY: Moody's Revises Low-B Ratings Outlook to Negative SHAW GROUP: Names Tim Barfield President/Chief Operating Officer SIEBEL SYSTEMS: Reports Prelim. Results for September Quarter SPHERION CORP: S&P Affirms B+ Rating with Negative Outlook SOUTHERN UNION: $200MM Preferred Stock Earns S&P's BB+ Rating STARWOOD HOTELS: Will Publish Third-Quarter Results on Oct. 30 TCW LINC: Fitch Slashes Two Note Ratings to Junk and D Levels TECO ENERGY: Completes Sale of Hardee Power Station for $100MM THERMACELL TECH.: Completes Merger Deal with Absolute Industries TOM'S FOODS: Low-B Ratings Lowered on Weak Operating Performance TRANSAX INTERNATIONAL: Pulls Plug on Labonte & Co. Engagement TRENWICK GROUP: Completes Sale of Trenwick International Limited TSI TELSYS: Third Quarter FY2003 Orders Increase by US$1.2 Mil. UNITED AIRLINES: Plan-Filing Exclusivity Intact Until March 8 UNIVERSAL HOSPITAL: S&P Assigns Low-B Ratings to Senior Notes US AIRWAYS: Stipulation Resolves $2MM Wilmington Trust Claim VICWEST CORP: Appoints D. Anthony Molluso as President and CEO WEIRTON STEEL: UST Gets Nod for Bank Account Info. Production WESTMERIA HEALTH: Liquidity Issues Raise Going Concern Doubt WHEREHOUSE: Wants to Stretch Lease Decision Time to December 31 WILLIAMS CONTROLS: Teleflex Buys Passenger & Light Truck Assets W.R. GRACE: Seeks Clearance for KWELMB Confidential Settlement * EPIQ Systems Expands Chapter 7 Product and Service Offerings * BOND PRICING: For the week of October 6 - 10, 2003 ********* A NOVO: Wants Plan-Filing Exclusivity Extended Until October 30 --------------------------------------------------------------- A Novo Broadband, Inc., wants to further stretch the periods within which it has the exclusive right to file a plan and solicit acceptances of that plan from its creditors. The Debtor asks the U.S. Bankruptcy Court for the District of Delaware to extend its exclusive plan filing period through October 30, 2003 and asks that its solicitation period run through December 28, 2003. The Debtor argues that the progress it has attained in this case warrants further extension of it exclusive periods. To date, the Debtor has: i) obtained the consensual use of the Lender's cash collateral to fund ongoing operations; ii) reduced operating costs; iii) maintained its customer base; iv) maintained employee morale; and v) evaluated and rejected certain agreements, and, most importantly, consummated the sale of substantially all of its assets to Teleplan Holding USA, Inc. A Novo Broadband, Inc., a business engaged primarily in the repair and servicing of broadband equipment for equipment manufacturers and operators of cable and other broadband systems in North America, filed for chapter 11 petition on December 18, 2002 (Bankr. Del. Case No. 02-13708). Brendan Linehan Shannon, Esq., M. Blake Cleary, Esq., at Young, Conaway, Stargatt & Taylor represent the Debtor in its restructuring efforts. When the Company filed for protection from its creditors, it listed $12,356,533 in total assets and $10,577,977 in total debts. ACTRADE FINANCIAL: Files Joint Plan and Disclosure Statement ------------------------------------------------------------ As previously disclosed by Actrade Financial Technologies Ltd. on September 3, 2003, the Company received a letter from persons purportedly holding more than twenty percent (20%) of the Company's outstanding capital stock, requesting a special meeting of the shareholders of the Company and requesting that the Secretary of the Company fix and notice the date for such a meeting. The By-laws of the Company provide that such a meeting may be called in the event at least one-fifth of the votes which all stockholders are entitled to cast at the particular meeting make such a request. One of the signatories to the Letter has now withdrawn its request for a shareholder meeting, thereby reducing the percentage of shareholders requesting a meeting to below the one-fifth threshold set forth in the Company's By-laws. Accordingly, the Company will take no further action in respect of the request contained in the Letter. Separately, on September 25, 2003 the Company and one of its direct U.S. subsidiaries, Actrade Capital Inc., filed a joint Chapter 11 plan and related disclosure statement which in general provides for a distribution of the Company's and Capital's assets to creditors and shareholders. No assurance can be given that the Chapter 11 plan will be accepted by the creditors or equity holders of the Company and Capital or approved by the bankruptcy court. AHOLD NV: Full-Year 2002 Net Loss Reaches EUR1.2 Billion Mark ------------------------------------------------------------- Ahold NV (NYSE:AHO) (Other OTC:AHODF) reports audited consolidated 2002 results, with these highlights: -- Net loss for 2002 of Euro 1,208 million -- Operating income for 2002 of Euro 2,145 million before impairment and amortization of goodwill and exceptional loss related to Argentina -- Net loss after preferred dividends per common share for 2002 of Euro 1.34 -- Net cash from operating activities for 2002 of Euro 2,486 million -- Net loss under US GAAP expected to be significantly higher, primarily as a result of additional goodwill impairment of approximately Euro 3.2 billion (unaudited), of which approximately Euro 2.7 billion relates to U.S. Foodservice -- Net sales for 2002 of Euro 62,683 million -- Joint ventures deconsolidated and accounted for using equity accounting method -- Comparable financial information restated for 2001 and 2000 -- Remedial actions taken in 2003: internal controls and corporate governance strengthened Ahold published its audited consolidated 2002 financial statements. Commenting on the announcement, Ahold President & CEO Anders Moberg said: "The publication of these results is a major milestone that draws a line under recent events and enables us to move forward." Ahold also announced that the audited 2002 financial statements were delivered to its syndicate of banks as required under its Euro 2.65 billion credit facility negotiated in March 2003. As a result, Ahold has access to the unsecured tranche of USD 915 million. "Based on our current cashflow projections, we believe that we will not need access to the unsecured tranche," Hannu Ryopponen, Chief Financial Officer said. The findings of forensic and other internal investigations initiated by the company in 2003 required Ahold to restate its consolidated financial statements for 2001 and 2000. These restatements of prior years arose primarily from overstatements of vendor allowance income at U.S. Foodservice and the deconsolidation of joint ventures. The 2002 financial statements reflect all material correcting adjustments that have been identified as a follow-up to the various investigations and the audit by independent auditors Deloitte & Touche. Net income for 2001 and 2000 has been restated resulting in a reduction in the amount of Euro 363 million and Euro 196 million, respectively, of which 59% and 53%, respectively, related to improper accounting for vendor allowances. Correcting adjustments have also been made in the 2002 financial statements. A summary of accounting issues under Dutch GAAP is outlined later on in this release. Net sales were reduced by Euro 12,380 million and Euro 10,709 million for 2001 and 2000, respectively, mainly as a result of the deconsolidation of joint ventures and some other smaller adjustments. Commenting on the 2002 results, Mr Moberg said: "The underlying performance of our operating companies in the aggregate was good in a year of increased competition and a weak economy. We have some very solid operations and strong brands. However, in many ways, it's been a lost year, difficult and negative. With 2002 now behind us, it's time to move forward and rebuild value for our customers and our shareholders," he stated. Copies of the 2002 consolidated financial statements are available on the company's Web site at http://www.ahold.com These financial statements do not completely fulfill the statutory filing requirements pursuant to The Netherlands Civil Code because an annual directors' report and parent company financial statements are not included. In that respect they precede a complete statutory annual report for Dutch law and an annual report on Form 20-F to be filed with the United States Securities and Exchange Commission in order to satisfy the current information needs of our stakeholders. Highlights of the 2002 Results The results for 2001 and 2000 have been restated to reflect the correction of accounting irregularities and errors announced on February 24, 2003 and those found through the subsequent forensic investigations and external and internal audits. The increase in net sales in 2002 was largely attributable to acquisitions, primarily those of Alliant, acquired in November 2001, and Bruno's, acquired in December 2001. In addition, the results of Ahold's subsidiaries Disco and Santa Isabel in South America were consolidated in the course of 2002. The increase in net sales excluding currency impact was 20.8%. Operating income in 2002 amounted to Euro 239 million, a decrease of 87.5% compared to 2001. The decrease was primarily caused by Euro 1,287 million of impairment of goodwill and intangible assets, including Euro 898 million related to Ahold's operations in Spain, Euro 199 million related to the Argentine and Chilean operations, Euro 129 million related to Bruno's in the U.S. and Euro 54 million related to the Brazilian operations. The decrease was also caused by a Euro 372 million exceptional loss on related party default guarantee recorded in 2002 with respect to debt defaults by Velox Retail Holding, Ahold's joint venture partner in Disco Ahold International Holdings N.V. Operating income in 2002 also was adversely affected by a lower U.S. Dollar/Euro exchange rate. Operating income before impairment and amortization of goodwill and exceptional loss in 2002 amounted to Euro 2,145 million, an increase of 4.0% compared to 2001. See table below and the supplemental disclosures to the statements of operations for a reconciliation of this non-GAAP measure. The net loss incurred in 2002 was primarily caused by impairment of goodwill and other intangible assets of in total Euro 1,287 million, goodwill and intangible asset amortization of Euro 433 million and an exceptional loss on related party default guarantee of Euro 372 million. Net sales increased in 2002 compared to 2001 both organically and as a result of the acquisition of Bruno's that took effect in December 2001. Comparable and identical U.S. retail sales growth totaled 1.6% and 0.9%, respectively (2001: 3.1% and 2.6%). Operating income before impairment and amortization of goodwill increased in 2002 compared to 2001 as a result of strong operating performance at Stop & Shop, Giant-Landover and Giant-Carlisle. The increase in net sales in 2002 compared to 2001 was due to the acquisition of Alliant in November 2001. Operating income before impairment and amortization of goodwill in 2002 included a USD 28 million gain relating to excess reserve reversals, and in 2001 included a USD 94 million loss relating to restructuring charges at Alliant. Operating income before impairment and amortization of goodwill as a percentage of net sales for 2002 was 1.7% and, as restated, 0.9% in 2001, a significant decline from the originally reported number for U.S. Foodservice for 2001, reflecting the substantial accounting adjustments related to U.S. Foodservice. Identical sales growth at Albert Heijn was 4.5%. Within Other Europe, Schuitema's net sales increased by 4.5%. In Central Europe and Spain, the net sales increase was mainly attributed to store expansion. In line with the sales growth, Albert Heijn improved its operating income before impairment and amortization of goodwill in 2002 by 6.9%. In Other Europe, the operating income before impairment and amortization of goodwill dropped from Euro 110 million to Euro 32 million, mainly due to the impairment of fixed assets in Other Europe and less favorable business performance in Spain due to integration challenges and start-up costs for newly-opened stores. Net sales at Europe Foodservice declined slightly and operating income before impairment and amortization of goodwill declined as a result of increased pension costs. Net sales in 2002 versus 2001 increased mainly due to the consolidation of Disco and Santa Isabel in the course of 2002. In Brazil, sales in local currency were higher mainly due to the acquisition of G. Barbosa in January 2002. The operating loss before impairment and amortization of goodwill and exceptional loss in 2002 was primarily caused by the consolidation of Disco and Santa Isabel. Difficult trading circumstances impacted operating income before impairment and amortization of goodwill in Brazil in 2002, which was below 2001 levels in local currency. Impairment and amortization of goodwill and intangible assets Mainly as a result of the deteriorating economic conditions in Spain, Argentina and the Southeastern United States, goodwill impairment charges of in total Euro 1,281 million were recorded in 2002 (2001: Euro 0 million). Impairment charges relating to intangible assets amounted to Euro 6 million. Goodwill amortization in 2002 amounted to Euro 253 million (2001: Euro 152 million). The increase is largely caused by the acquisition of Bruno's and Alliant. Amortization of other intangible assets amounted to Euro 180 million (2001: Euro 104 million). Exceptional Loss on Related Party Default Guarantee An exceptional loss was incurred of Euro 372 million in 2002 relating to the fact that the purchase price of the additional shares in Disco Ahold International Holdings in July 2002 exceeded the fair value of the shares acquired by Euro 363 million and a loan to Velox of Euro 5 million had to be written off. Interest expense in 2002 increased to Euro 1,003 million (2001: Euro 921 million), primarily caused by the new debt assumed or incurred in connection with acquisitions and an increase in cash dividends paid. This was partly offset by a favorable currency impact, especially of the U.S. Dollar. Share in Income (Loss) of Joint Ventures and Equity Investees The share in income (loss) of joint ventures and equity investees in 2002 amounted to a net loss of Euro 38 million compared to a net loss of Euro 192 million in 2001. Cash Flow Statement Net cash from operating activities in 2002 amounted to Euro 2,486 million (2001: Euro 1,961 million). Changes in working capital improved compared to the prior year, resulting in a cash inflow of Euro 107 million compared to a cash outflow of Euro 166 million in fiscal 2001. Investments in tangible fixed and intangible assets in 2002 amounted to Euro 2,160 million (2001: Euro 2,459 million). Divestments of tangible fixed and intangible assets amounted to Euro 590 million (2001: Euro 1,134 million), in both years mainly related to sale and leaseback transactions in the U.S. and Europe. The cash outflow related to acquisitions of consolidated subsidiaries of Euro 977 million was primarily for the purchase of the remaining shares in Disco Ahold International Holdings. Shareholders' Equity Shareholders' equity, expressed as a percentage of the balance sheet total, was 10.5% (at year-end 2001: 19.2%). Shareholders' equity at December 29, 2002, was Euro 2,609 million. Long-term financial lease commitments amounted to Euro 2,224 million. US GAAP Reconciliation The Annual Report on Form 20-F that will be filed with the U.S. Securities and Exchange Commission will contain a US GAAP reconciliation of net income and shareholders' equity which is in the process of being audited. The current unavailability of US GAAP figures has no impact on Ahold's credit agreement which required that it delivers audited consolidated financial statements under Dutch GAAP. Under US GAAP, the net loss for 2002 will be significantly higher. In particular, goodwill impairment charges related to the adoption of Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets ("SFAS 142") on December 31, 2001, will contribute to a higher net loss under US GAAP. This primarily will be caused by an additional goodwill impairment charge of approximately Euro 3.2 billion (unaudited), of which Euro 2.7 billion relates to U.S. Foodservice. Next Steps On September 4, 2003, President & CEO Anders Moberg announced the most important principles of Ahold's strategy going forward. Ahold is now focusing on two key strategic operating priorities: its leading food retail formats in the United States and Europe, and restoring the value of U.S. Foodservice. More details on the new Ahold strategy, together with the company's view on its future financing, are expected to be announced mid-October. * * * As previously reported, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Netherlands-based food retailer and food service distributor Ahold Koninklijke N.V. to 'BB-' from 'BB+', following the announcement by the group that accounting irregularities at its U.S. Foodservice arm were materially larger than expected. In addition, the senior unsecured debt ratings on Ahold were lowered to 'B+' from 'BB+', reflecting structural subordination. At the same time, Standard & Poor's affirmed its 'B' short-term rating on the group. AIR CANADA: Canadian Transport Agency Hires Deloitte as Advisor --------------------------------------------------------------- David Collenette, Canadian Transportation Agency Minister, confirmed on September 25, 2003 that his department has hired Deloitte and Touche as financial advisor for the federal government in Air Canada's restructuring process. Deloitte will study the viability of the proposed business plan Air Canada provided to potential equity investors. The government also wants Deloitte to deconstruct Air Canada's proposed ownership structure when it files a plan of arrangement. The government wants to ensure that the ownership of Air Canada will be in accordance with foreign ownership regulations. Foreign investors cannot own more than 25% of voting shares in a Canadian Airline pursuant to Canada law. The "effective control" must also be in Canadian hands. Canada's bilateral aviation agreements specify that airlines using Canada's international route rights must be owned and effectively controlled by Canadians. (Air Canada Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., 609/392-0900) AIRPLANES TRUST: S&P Cuts Ratings on 3 Junk-Rated Note Classes -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit ratings on Airplanes Pass-Through Trust's subclass A-9 and classes B, C, and D certificates. The ratings on the subordinate class B, C, and D certificates remain on CreditWatch. At the same time, Standard & Poor's affirmed its ratings on the subclass A-6 and A-8 certificates. The downgrade of subclass A-9 follows an analysis of the transaction following an amendment to the structure agreed to by certificateholders in recent weeks. It has become clear that there is increased likelihood that more aircraft in the portfolio will be liquidated before they have reached the ends of their previously assumed useful lives. The analysis indicates a low probability of ultimate repayment of principal on subclass A-9 under Standard & Poor's assumed 'A' stress scenario. It has also shown that subclasses A-6 and A-8 are robust, at AA-/Negative and A/Negative, respectively. A deferral of interest on the class B, C, and D certificates is anticipated in the next two to three months. The class B notes were originally placed on CreditWatch July 9, 2002, and the class C and D notes Sept. 27, 2001. The ratings actions are based on in-depth analysis of: -- The asset quality of the aircraft types and the creditworthiness of the airlines currently involved in this portfolio; -- A cash flow analysis under various stress scenarios to reflect the current market environment; and -- The impact of selling higher numbers of aircraft earlier in the transaction than originally assumed. The subclass A-6, A-8, and A-9 certificates receive interest payments at the same level, in no order of priority. A failure to pay interest on any of the certificates in class A will thereby result in a default of all A subclasses. Nevertheless, because of the large liquidity available to class A, no problems of this nature are expected. The principal payments to class A are all currently directed toward subclass A-6, and as such, it will have a materially shorter expected life than the A-8 and A-9 subclasses. When the A-6 certificateholders are fully repaid, the A-8 certificateholders will receive principal payments, and once the A-8 certificateholders are fully repaid, the A-9 certificateholders may begin to receive principal. Standard & Poor's will continue to monitor the transaction accordingly. RATINGS LOWERED Airplanes Pass-Through Trust $2.3 billion floating-rate pass-through certificates* Class Rating To From A-9 BBB-/Negative A/Negative RATINGS AFFIRMED Airplanes Pass-Through Trust Class Rating A-6 AA-/Negative A-8 A/Negative RATINGS LOWERED AND REMAINING ON CREDITWATCH NEGATIVE Airplanes Pass-Through Trust $1.112 billion floating- and fixed-rate pass-through certificates* Class Rating To From B CC/Watch Neg CCC/Watch Neg C CC/Watch Neg CCC/Watch Neg D CC/Watch Neg CCC/Watch Neg * Initial outstanding amount of remaining classes. AIRTRAN HOLDINGS: Will Webcast Q3 Conference Call on October 22 --------------------------------------------------------------- AirTran Holdings, Inc., (NYSE:AAI) will provide an online, real- time webcast of its third-quarter earnings conference call on Wednesday, October 22, 2003, at 10:00 a.m. (EST). Beginning approximately two hours after the initial conference call is completed, a replay of the webcast will be available. To access the webcast, go to the "Investor Relations" area of AirTran Airways' Web site -- http://www.airtran.com-- accessible from the homepage. Once there, click on either the "Overview" or "Calendar" buttons, and follow the prompts for the webcast. The broadcast will also be available at http://www.streetevents.com AirTran Airways (S&P/B-/Negative) is one of America's largest low- fare airlines - employing more than 5,400 professional Crew Members and serving 492 flights a day to 43 destinations. The airline's hub is at Hartsfield Atlanta International Airport, the world's busiest airport (by passenger volume), where it is the second largest carrier operating 189 flights a day. The airline never requires a roundtrip purchase or Saturday night stay, and offers an affordable Business Class, assigned seating, easy online booking and check-in, the A-Plus Rewards frequent flier program, and the A2B corporate travel program. AirTran Airways, a subsidiary of AirTran Holdings, Inc., (NYSE:AAI), is the world's largest operator of the Boeing 717, the most modern, environmentally friendly aircraft in its class. In 2004, the company will begin taking delivery of 100 Boeing 737-700s, one of the most popular and reliable jet aircraft in its class. For more information, visit http://airtran.com AMERCO: Equity Committee Hires Providence Capital as Advisors ------------------------------------------------------------- The Official Committee of Equity Security Holders of the AMERCO Debtors seek the Court's authority, pursuant to Section 1103 of the Bankruptcy Code and Rule 2014 of the Federal Rules of Bankruptcy Procedure, to retain Providence Capital, Inc. as its financial advisors, nunc pro tunc to August 25, 2003. Eric Miller, Chairperson of the Equity Committee, relates that the Equity Committee needs the services of a financial advisor to enable it to evaluate the complex financial and economic issues raised by the Debtors' reorganization proceedings and to effectively fulfill its statutory duties. Providence and its employees have the expertise in providing financial services to debtors and creditors in restructuring and distressed situations. Thus, the Equity Committee selected Providence as its financial advisor. Herbert Denton, President of Providence Capital, Inc., tells Judge Zive that his firm provides a broad range of corporate advisory services to its clients including, without limitation, services pertaining to: (i) general financial advice; (ii) mergers, acquisitions advice; (iii) advice to committees of board of directors; (iv) corporate governance advice; and (v) director search advice. In addition, Providence's employees have sat on numerous board committees and have maximized shareholder value at COMSAT Corporation, the Union Corporation, Banyan Strategic Realty Trust and Capsure Holdings, Inc. Providence and its employees have significant experience in reorganization and restructuring of troubled companies, both out of court and Chapter 11 proceedings, including the cases of Baldwin United Corporation and Penn Central Corporation. In its capacity as the Equity Committee's financial advisor, Providence is ready to: (a) advise the Equity Committee in developing a general strategy for accomplishing the Debtors' reorganization in connection with these Chapter 11 cases; (b) advise the Equity Committee concerning and investigate available options for restructuring in the current market that are beneficial to the Public Equity Holders; (c) assist and advise the Equity Committee in evaluating and analyzing the impact of any proposals or Chapter 11 plan on the existing Public Equity Holders; (d) advise the Equity Committee on the hiring of additional professionals to ensure adequate representation of the Equity Committee in these Chapter 11 cases; (e) assist the Equity Committee and its professionals in communications with other constituencies and serve as a liaison with other financial advisors appointed on behalf of these constituencies; and (f) render other financial advisory services as may from time to time be agreed on by the Equity Committee and Providence. According to Mr. Denton, the principals and professionals of Providence do not have any connection with the Debtors, their creditors or any other party-in-interest, except that from time to time, Providence provided investment banking, financial advisory, brokerage and consulting services to certain creditors and other parties-in-interest in matters unrelated to these cases. Providence promises the Equity Committee that it will not provide services to the Debtors, their creditors or other parties-in-interest in connection with any matters relating to these cases. Thus, Providence is a "disinterested person" under Section 101(14) of the Bankruptcy Code. However, Mr. Denton notes, since Providence has a diverse practice and client base, it may provide service to clients in matters unrelated to these cases who are or become creditors of the Debtors or who may have interests adverse in these cases in unrelated matters. In return for its services, Providence will be paid: (a) a $100,000 monthly cash fee; (b) a five-year warrant to purchase 100,000 shares of Amerco's common stock at a strike price equal to the closing price per common share on the date of the final order either confirming a sale of substantially all of Amerco's assets or a plan confirmation, whichever occurs first; and (c) reasonable out-of-pocket expenses. Objections 1. Debtors The Debtors have serious concerns about the payment of a success fee to Providence. According to Bruce T. Beesley, Esq., at Beesley, Peck & Matteoni, Ltd., in Reno, Nevada, the Debtors are currently in the process of negotiating a plan of reorganization in these cases, and have reached an agreement with certain of the Debtors' key creditor constituencies regarding treatment of their claims under the Plan. At present, Mr. Beesley says, it is contemplated that the Plan will be a full payment plan, that none of the Debtors' creditors will receive any equity interest in the Debtors on account of their claims, and that equity will be unimpaired under the Plan. Moreover, both the Debtors and the Official Committee of Unsecured Creditors appointed in these cases have each retained their own financial advisors to assist in the formulation of the Plan. As a result, the Debtors believe that the retention of Providence will add no value to the ultimate outcome of these cases. Accordingly, Mr. Beesley contends, no Success Fee should be paid to Providence in these cases. There's another problem, Mr. Beesley says. Nobody can determine the value of the Warrant granted to Providence. An increase of $10 per share above the strike price would provide Providence with a $1,000,000 Success Fee, regardless of the amount of time or effort Providence contributes to the Debtors' reorganization. Accordingly, the Debtors ask the Court not to grant any pre- approval of the Success Fee to be paid to Providence, and require Providence to apply with the Court for payment of a reasonable Success Fee in accordance with Section 330 of the Bankruptcy Code upon the effectiveness of the Plan. Furthermore, the Debtors ask the Court to deny approval of any Success Fee that takes the form of a Warrant. The Debtors also object to the retention of Providence to the extent that Providence seeks to be paid for its services other than at hourly rates. All other professionals retained in these Chapter 11 cases, both attorneys and non-attorneys, have agreed to receive payment for their services at hourly rates in accordance with Section 330 of the Bankruptcy Code. Indeed, Mr. Beesley points out, the payment of the Monthly Fee to Providence is inconsistent with retention under Section 330 of the Bankruptcy Code, since the amount of the Monthly Fee will remain constant regardless of the amount of time and effort expended by Providence, and regardless of whether the efforts are duplicative of those provided by other professionals retained in these cases. Moreover, paying Providence the Monthly Fee may unnecessarily reduce the amount of assets available to the estates to resolve claims of creditors. Mr. Beesley notes that Providence agreed to comply with all Court orders and procedures governing the payment of professional fees. The Interim Compensation Order provides that all professionals retained in these cases must submit a statement to the Debtors, the Creditors' Committee, the postpetition lenders and the U.S. Trustee at the end of each month detailing the services provided and the amount of fees and expenses requested for the services. If no objection is filed, the Court would authorize the Debtors to pay 80% of the fees and 100% of the expenses. The Debtors believe that all professionals retained in these cases should be compensated in the manner set forth in the Interim Compensation Order. Accordingly, the Debtors ask Judge Zive that if he authorizes Providence's retention, the Retention Order should provide that: (a) Providence will be entitled to receive compensation for services and reimbursement of expenses only as set forth in the Interim Compensation Order; (b) Providence will only receive 80% of its fees for any given period covered by a Monthly Statement; and (c) Providence will not receive any fees for services in advance, but only after the expiration of the 20-day objection period as set forth in the Interim Compensation Order. While the Application states that Providence seeks to be retained under Section 330 of the Bankruptcy Code, the terms of the Providence Engagement Letter providing for the Monthly Fee and Success Fee appear to contemplate pre-approval of the terms of Providence's retention under Section 328(a) of the Bankruptcy Code. Accordingly, the Debtors ask the Court to retain Providence under Section 330 of the Bankruptcy Code. All compensation to be paid to Providence in these cases must be subject to Court approval to ensure that only reasonable, necessary fees are paid. 2. Creditors' Committee The Creditors' Committee acknowledges that the Equity Committee is entitled to employ its choice of advisors, and does not in any way challenge the skills or credentials of its selected financial advisor, Providence Capital, Inc. However, Paul S. Aronzon, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles, California, points out that, in addition to the proposed monthly compensation, which seems too high, the Equity Committee wants to cause the Debtors to pay Providence a five-year warrant to purchase 100,000 shares of Amerco's common stock. Mr. Aronzon contends that the Warrant Package, at this juncture of the Debtors' bankruptcy case, is both premature and inappropriate. Notwithstanding the Debtors' claims of solvency, the Creditors' Committee is not certain that Amerco is, in fact, solvent. The Committee is in the process of examining this very issue. Moreover, irrespective of whether or not Amerco is solvent, based on its cash flows, business plans and projections, the Committee is certain that Amerco is significantly over- leveraged and that it will have difficulty restructuring its debt. In light of the uncertainties that exist in respect of the Amerco's reorganization, as well as its post-reorganization capital structure, the issuance of the Warrant Package as proposed is imprudent and could adversely effect the reorganization. Certainly, Mr. Aronzon argues, the structure of Providence's success fee should not influence the capital structure eventually proposed under any plan. This component of the proposed retention absolutely should not be allowed. (AMERCO Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 609/392-0900) AMERICA WEST: September Revenue Passenger Miles Slide-Up 5.7% ------------------------------------------------------------- America West Airlines (NYSE: AWA) reported traffic statistics for September 2003. Revenue passenger miles for September 2003 were a record 1.6 billion, an increase of 5.7 percent from September 2002. Capacity for September 2003 was 2.3 billion available seat miles. The passenger load factor for September 2003 was a record 72.7 percent, up 5.1 points from September 2002. America West reported record RPMs of 5.6 billion for the third quarter 2003, a 5.2 percent increase from third quarter 2002. ASMs for the third quarter 2003 were 7.1 billion. The airline also reported a record load factor for the third quarter 2003 of 79.8 percent, up 4.9 points over third quarter 2002. America West also reported record year-to-date RPMs of 16.0 billion, a record year- to-date ASMs of 20.9 billion as well as a record load factor of 76.6 percent. "We completed our third quarter by posting our sixth consecutive month of record passenger loads, accompanied by an increase in our yield," said Scott Kirby, executive vice president, sales and marketing. "We were particularly encouraged that our strong load factor and yield performance carried over from the peak summer season into the typically off-peak month of September, primarily due to the continued growth in business traffic generated by our business friendly fare structure. We look forward to inaugurating our new, non-stop, transcon service later this month, which will bring America West's business-friendly fare structure to even more customers." Founded in 1983 and proudly celebrating its 20-year anniversary in 2003, America West Airlines is the nation's second largest low- fare airline and the only carrier formed since deregulation to achieve major airline status. Today, America West serves 90 destinations in the U.S., Canada and Mexico. * * * As reported in Troubled Company Reporter's July 30, 2003 edition, Standard & Poor's Ratings Services assigned its 'CCC' rating to America West Airlines Inc.'s $75 million 7.25% senior exchangeable notes due 2023, offered under Rule 144A with registration rights. The notes are guaranteed by America West Airlines' parent, America West Holdings Corp. (both rated B-/Negative/-). America West Holdings' major subsidiary is America West Airlines Inc., the eighth-largest airline in the U.S, with hubs located at Phoenix and Las Vegas. America West benefits from a low cost structure, among the lowest in the industry. However, it competes at Phoenix and Las Vegas against Southwest Airlines Co., the other major low-cost, low-fare, operator in the industry and financially the strongest. As a result, due to the competition from Southwest, as well as America West's reliance on lower-fare leisure travelers, its revenues per available seat mile also tend to be among the lowest in the industry. In addition, America West Holdings owns the Leisure Co., one of the nation's largest tour packagers. AMERICAN AIRLINES: Overall September 2003 Traffic Tumble 1.7% ------------------------------------------------------------- American Airlines, the world's largest carrier, reported a load factor of 66.7 percent for September, an increase of 2.8 points compared to the same period last year. The average load factor in domestic markets increased 3.8 points year over year to 65.6 percent. International markets operated with a load factor of 69.3 percent -- equal to last year. For the month, overall capacity declined 5.9 percent year over year, yet traffic fell by a much smaller 1.7 percent. Domestic traffic was down 2.5 percent on an 8.2 percent capacity reduction. In International markets, September traffic and capacity were virtually flat year over year. American boarded 6.5 million passengers in September. As reported in Troubled Company Reporter's September 23, 2003 edition, Fitch Ratings assigned a rating of 'CCC+' to the $300 million in convertible unsecured notes issued by AMR Corp. - the parent of American Airlines, Inc. The privately placed notes carry a coupon rate of 4.25%, are guaranteed by American Airlines, Inc., and mature in 2023. The Rating Outlook for AMR and American is Negative. The 'CCC+' rating reflects Fitch's continuing concerns over the airline's ability to meet fixed financing obligations over the next two to three years - even after the successful labor contract restructuring undertaken by AMR this spring. The new labor agreements with all of American's unionized employee groups, ratified in April, are delivering significant unit operating cost savings and allowing American to stake out a much more competitive cost position versus the discount carriers that are encroaching on a larger part of American's route network. Mainline cost per available seat mile in the third quarter is likely to fall to approximately 9.5 cents (compared with 11 cents prior to the labor cost reductions), and additional non-labor savings initiatives should push unit costs even lower during the fourth quarter. AMERICAN GREETINGS: Names Catherine M. Kilbane as SVP & Secretary ----------------------------------------------------------------- American Greetings Corporation (NYSE: AM) has appointed Catherine M. Kilbane to the position of senior vice president, general counsel and secretary. Ms. Kilbane will oversee domestic and international legal affairs, advise management on corporate legal matters and oversee the legal department and outside counsel. Ms. Kilbane comes to American Greetings from Baker & Hostetler LLP, one of the nation's largest law firms, with more than 500 attorneys operating from 10 offices, including more than 185 attorneys in the Cleveland headquarters. Most recently, she chaired the firm's intellectual property transactions group, which consists of approximately 100 attorneys who specialize primarily in commercial and intellectual property issues. She was also a partner in Baker & Hostetler's general business group, where she practiced a broad range of corporate law. "We are happy to have someone with Cathy's expertise in legal management on our team," said Chief Executive Officer Zev Weiss. "With past experience in securities law and a diverse background that includes corporate finance, as well as the negotiation of license and supply agreements, we believe she will be a tremendous resource to American Greetings." Ms. Kilbane is a 1987 cum laude graduate of Case Western Reserve University's School of Law. She earned a Bachelor of Arts degree in English (cum laude) from Case in 1984. American Greetings Corporation (NYSE: AM) (S&P, BB+ Subordinated Debt Rating, Stable) is one of the world's largest manufacturers of social expression products. Along with greeting cards, its product lines include gift wrap, party goods, reading glasses, candles, stationery, calendars, educational products, ornaments and electronic greetings. Located in Cleveland, Ohio, American Greetings generates annual net sales of approximately $2 billion. For more information on the Corporation, visit http://corporate.americangreetings.com AMN HEALTHCARE: Inks Amendment to BofA-Led Credit Facility ---------------------------------------------------------- AMN Healthcare Services, Inc. (NYSE: AHS) entered into an amendment to its existing credit facility with a syndicate of financial institutions led by Bank of America, N.A. The amended credit facility provides for, among other things, the existing $75.0 million secured revolving facility, letter of credit sub-facility and swing-line facility and a new $130.0 million secured term loan facility maturing in October 2008. AMN expects to use cash on hand as well as borrowings under the amended credit facility to complete its previously announced tender offer. Under the terms of the tender offer, AMN may purchase up to an aggregate of $180.0 million of securities, consisting of $175.0 million of shares of its common stock, par value $0.01 per share, and $5.0 million of vested and exercisable stock options with exercise prices of less than $18.00 per share. The completion of the amended credit facility had been a condition to the tender offer. This condition has now been satisfied. AMN (S&P, BB- Corporate Credit Rating, Stable Outlook) is the largest nationwide provider of travel healthcare staffing services. AMN recruits nurses and allied health professionals nationally and internationally and places them on temporary assignments, typically for 13 weeks, at acute-care hospitals and healthcare facilities throughout the United States. ANC RENTAL: Pushing for Approval of MBIA Settlement Agreement ------------------------------------------------------------- ANC Rental Corporation and its debtor-affiliates ask the Court to approve their settlement with MBIA Insurance Corporation. Mark J. Packel, Esq., at Blank Rome LLP, in Wilmington, Delaware, recounts that in February 2002, the Court approved a fleet financing arrangement whereby MBIA allowed the release of certain restricted funds supporting the MBIA-insured outstanding series of medium-term notes for the purchase of new vehicles. The agreement made available up to $1,000,000,000 of previously frozen funds for the acquisition of a new fleet. On May 10, 2002, the Court approved, on a final basis, an agreement with MBIA to allow the Debtors to continue to use the full $2,300,000,000 of capacity under the MBIA insured notes to meet its fleet financing needs. Accordingly, the Debtors were permitted to enter into new master lease agreements and use proceeds received from the disposition of vehicles financed by these facilities to purchase new vehicles. Pursuant to a series of six court orders, the agreement has been amended and extended to September 30, 2003. On August 6, 2003, the Court approved the sale of substantially all of the Debtors' assets to Cerberus under the Asset Purchase Agreement. The parties' settlement provides that if and to the extent that MBIA consents to the assignment to Cerberus of certain new master lease agreements, certain new vehicles transaction documents, the existing master lease agreements and certain of the related transaction documents, together with any modifications to these Lease Documents as are acceptable to MBIA and the Debtors, upon the closing of the Sale and Cerberus' assumption of all of the Debtors' liabilities with respect to the Lease Documents, MBIA will: 1. release claims that it has or may have against the Debtors: and 2. waive its claim with respect to certain unpaid rent under the Existing Master Lease Agreements. In addition, pursuant to the Settlement, the Debtors will release claims that it has or may have against MBIA. According to Mr. Packel, the Settlement is the result of good faith, arm's-length negotiations between the Debtors and MBIA with respect to the resolution and waiver of certain claims. The Settlement, which will become effective upon the consummation of the Sale and the assumption of the Lease Documents by Cerberus, will resolve certain outstanding issues between the Debtors and MBIA. The Settlement will also allow the assignment of the Lease Documents to Cerberus, an integral aspect of the Sale. (ANC Rental Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., 609/392-0900) ARVINMERITOR: Extends Tender Offer for Dana Until Oct. 30, 2003 --------------------------------------------------------------- ArvinMeritor, Inc. (NYSE: ARM) has extended its $15.00 net per share offer for all of the outstanding common shares of Dana Corporation's (NYSE: DCN) common stock until 5:00 p.m. Eastern Standard Time (EST), on Oct. 30, 2003, unless further extended. The offer was previously scheduled to expire at 5:00 p.m. EDT, on Oct. 2, 2003. At that time, Dana shareowners had tendered and not withdrawn approximately 2,339,993 shares pursuant to ArvinMeritor's tender offer. ArvinMeritor's offer represents a premium of 56 percent over Dana's closing stock price on June 3, 2003, the last trading day before ArvinMeritor submitted its first proposal to Dana in writing, a premium of 39 percent over Dana's average closing stock price for the 30 trading days before ArvinMeritor publicly announced its intention to commence a tender offer, and a premium of 25 percent over Dana's closing stock price on July 7, 2003, the last trading day before ArvinMeritor publicly announced its intention to commence a tender offer. ArvinMeritor, Inc. is a premier $7-billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets. In addition, ArvinMeritor is a leader in coil coating applications. The company is headquartered in Troy, MI, and employs 32,000 people at more than 150 manufacturing facilities in 27 countries. ArvinMeritor's common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.ArvinMeritor.com The solicitation and offer to purchase is made only pursuant to the Offer to Purchase and related materials that ArvinMeritor and Delta Acquisition Corp. filed with the Securities and Exchange Commission on July 9, 2003. Investors and security holders are advised to read such documents because they include important information. Investors and security holders may obtain a free copy of such documents at the SEC's Web site at http://www.sec.gov from ArvinMeritor at 2135 W. Maple Road, Troy, MI 48084, Attn: Investor Relations, or by contacting Mackenzie Partners, Inc. at 212-929-5500 collect or at 800-322-2885 toll-free or by email at proxy@mackenziepartners.com. ArvinMeritor, Inc. (S&P, BB+ Corporate Credit & Senior Unsecured Debt Ratings, Negative) is a premier $7-billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets. In addition, ArvinMeritor is a leader in coil coating applications. The company is headquartered in Troy, Mich., and employs 32,000 people at more than 150 manufacturing facilities in 27 countries. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com AVAYA INC: Completes Acquisition of Certain VISTA Assets -------------------------------------------------------- Avaya Inc. (NYSE: AV), a leading global provider of communications networks and services for business, has completed the acquisition of service delivery technologies and two business units from VISTA Information Technologies Inc. The acquisitions enhance Avaya Global Services' delivery of end-to-end design, implementation and management services for converged, multi-vendor networks and advanced multimedia contact centers. Financial terms of the agreement were not disclosed. The agreement between the companies, announced on September 25, 2003, calls for members of the former VISTA Professional Services and Managed Services units to join similar groups in Avaya Global Services. VISTA engineers, consulting and sales professionals join Avaya, carrying certifications and qualifications from leading technology companies including Avaya, Cisco, Nortel and Microsoft. "We're pleased to welcome this group of highly trained professionals to Avaya Global Services," said Lou D'Ambrosio, group vice president of Avaya Global Services. "The consultants who join Avaya have extensive qualifications and experience integrating multi-vendor, converged networks and contact centers. Our customers can take advantage of this additional, industry- certified expertise immediately for assistance in designing and implementing business-transforming technology solutions quickly and cost-effectively." Peter Licata, former CEO of VISTA, joins Avaya Global Services as vice president, Multi-Vendor Solutions and Strategy. He will lead and direct Avaya's continuing expansion of service offerings and capabilities to support converged, multi-vendor networks. "We are delighted to join Avaya Global Services," said Licata. "We look forward to helping the team continue to deliver value-based, multi-vendor communications solutions that help companies grow revenue and reduce costs." The acquired VISTA service delivery technology assets expand the range of service tools used by Avaya Global Services, which currently includes technologies such as Avaya ExpertNet(TM) Assessment Tool for Internet Protocol telephony readiness and Avaya EXPERT Systems(SM) Diagnostic Tools, remote network management tools that support resolution of an average of 96 percent of system alarms remotely. The acquired software tools will help streamline integration of complex multi-channel, multi- vendor contact center networks and enhance remote network management capabilities. The acquired service technology tools include: * Java-based software that enables "translation" between contact center platforms (such as Interactive Voice Response systems, communications systems, Customer Relationship Management software and front office and back office applications), enabling streamlined integration across multiple types of hardware systems and software applications in multi-vendor networks. This allows companies to implement more effective and integrated communications strategies and information collection processes for improved customer responsiveness. * A software tool that will offer enhanced remote monitoring capabilities for Avaya Interaction Center, Avaya's flagship solution for multi-channel communications in multi-vendor, multi-protocol contact centers. Avaya Inc., whose March 31, 2003 balance sheet shows a total shareholders' equity deficit of about $25 million, designs, builds and manages communications networks for more than 1 million businesses worldwide, including 90 percent of the FORTUNE 500(R). Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol (IP) telephony systems and communications software applications and services. Driving the convergence of voice and data communications with business applications -- and distinguished by comprehensive worldwide services -- Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya Web site: http://www.avaya.com Avaya Global Services includes more than 7,000 consultants, professionals and research and development experts, 23 network operations and 13 technical centers worldwide. The Avaya Services team can assess, plan, design, manage and maintain converged voice and data networks, including multi-vendor local area and wide area networks. For more information about all offerings from Avaya Global Services, please visit: http://www1.avaya.com/services VISTA Information Technologies, Inc., is a leader in the emerging field of Customer Interaction Solutions, and an expert in convergence services that unify and build customer relationships across multiple communications channels -- voice, voice over IP, interactive voice recognition, email, Web, fax, speech recognition, wireless, imaging, and e-commerce systems -- while reducing costs and increasing revenues. VISTA is headquartered in Herndon, Virginia, and can be found on the Web at http://www.vistait.com BAVARIA SA: S&P Assigns BB Foreign Currency Corp. Credit Rating --------------------------------------------------------------- Standard & Poor's Rating Services assigned its 'BB' foreign currency corporate credit rating to Bavaria S.A. The outlook is stable. At the same time, Standard & Poor's assigned its 'BB' rating to Bavaria's planned US$400 million senior unsecured notes that mature in 2010 and will have the guarantee of several of its nonrated subsidiaries, which currently generate about 59% of its consolidated revenue. The ratings on Bavaria reflect its leadership in the beer industries of Colombia, Peru, Ecuador, and Panama; the attractive demographics of those countries; the company's well-established brands; and its significant cash flow generation. Nevertheless, Bavaria is still affected by vulnerabilities particular to the countries of operation, such as the volatility of their currencies, strong correlation between the company's sales and the economic performance of these countries; and potential local tax changes, all under a relatively high debt leverage resulting from recent acquisitions. "The stable outlook reflects Standard & Poor's expectation that Bavaria's significant cash flows will continue, along with the ongoing efforts to improve efficiencies and reduce leverage," said Standard & Poor's credit analyst Federico Mora. "The foreign currency rating is limited by the significant transfer and convertibility risk implied by the sovereign ratings assigned to the main countries of operation for Bavaria." BAVARIA S.A.: Fitch Rates Planned US$400MM Senior Notes at BB ------------------------------------------------------------- Fitch Ratings has assigned 'BB' senior unsecured foreign and local currency ratings to Bavaria S.A. The Rating Outlook for Bavaria's foreign currency rating is Negative and the Rating Outlook for its local currency rating is Stable. The Rating Outlook for the foreign currency rating is constrained by Fitch's ratings of the Colombian government at 'BB' Rating Outlook Negative. In conjunction with these ratings, Fitch has assigned a 'BB' rating to Bavaria's proposed US$400 million senior notes due in 2010. The Rating Outlook for these U.S. dollar denominated notes is Negative. Bavaria is a Colombian operating company with breweries and other beverage facilities in Colombia. Bavaria also holds direct and indirect equity interests in several beer companies throughout Latin America. The senior notes will have joint and several financial guarantees from the following subsidiaries of Bavaria: Malteria Tropical S.A., Productora de Jugos S.A., Cerveceria Union S.A., Latin Development Corporation and Cerveceria Nacional de Panama S.A. The 'BB' rating for the proposed senior unsecured notes is supported by the company's leading position in the beer industry of Colombia, Peru, Ecuador and Panama. During 2002, Bavaria had estimated market shares in each of these countries of 98.3%, 99.0%, 94.5% and 80.4%, respectively. These leading positions reflect the high barriers to entry in the Latin American beer market. In addition to cultural reasons, international brewers have shied away from entering the company's markets because of the strong - and almost nationalistic - brand equity of the company's flagship brands, such as Aguila and Cristal. Furthermore, entering a market such as Colombia or Peru would be costly due to the dearth of supermarkets and the prevalence of on-premise consumption of beer in most of Bavaria's key markets. On-premise consumption makes an elaborate distribution system essential, which is difficult and expensive to duplicate. Imports are not a factor in the company's markets due to the low price paid for beer in the region, which is primarily a result of the almost exclusive use of the returnable glass bottle in the region. Similar to most brewers in Latin America, Bavaria generates strong, albeit volatile, free cash flows. Sales are typically on a cash basis. Capital investments will be modest in the future as a result of excess production capacity in the company's key Colombian and Peruvian markets. Unlike Western Europe or the United States, a high percentage of the population in Latin America is under 40 years of age, which is the key target market for beer companies. Bavaria operates in several non-investment grade countries. Fitch's ratings of these countries are as follows: Colombia ('BB', Rating Outlook Negative), Peru ('BB-', Rating Outlook Negative), Ecuador ('CCC+', Rating Outlook Positive) and Panama ('BB+', Rating Outlook Negative). As a result, political and economic risk in the countries in which the company operates is high. Low-rated sovereigns, at times, can have rapid changes in political leadership and economic policies. Bavaria is vulnerable to higher taxes on beer, as the largest taxpayer in the aforementioned countries. Furthermore, with market shares of nearly 100% in its top markets, Bavaria remains susceptible to philosophical changes at anti-trust agencies in the region. Historically, these agencies have been focused on preventing monopolistic behavior, not monopolies per se. Modest increases in competition have been factored into Fitch's ratings. On Feb. 19, 2003, the Brazilian based brewer Companhia de Bebidas das Americas (AmBev) announced plans to start greenfield operations in Lima, Peru, by building a brewery that will have an annual production capacity of one million hectoliters. This plant should be completed during 2004. It is possible that AmBev, which is the largest brewer in Latin America, will also build a plant in Colombia. Fitch does not expect AmBev to dramatically erode Bavaria's market position in Peru and Colombia during the next five to ten years in these markets. The ratings reflect some concern, however, that if AmBev aggressively discounts the prices for its beer in these markets, as it did when it entered the Argentine market, Bavaria's profit margins could be pressured. Fitch views the underlying credit quality of Bavaria to be consistent with a 'BB+' rating. The rating of the senior notes has been notched to the 'BB' level, however, to reflect the structural subordination of the notes to secured loans of US$318 million with the International Finance Corporation and US$100 million of loans with Corporacion Andina de Formento as well as debt at operating companies in Peru (US$281 million as of June 30, 2002) and Panama (US$45 million). In addition, unlike the US$318 million loan from the IFC, the notes do not enjoy a financial guarantee from the company's subsidiaries in Ecuador. The notch from 'BB+' to 'BB' also reflects different recovery rates between the company's secured and unsecured debt. The IFC and CAF loans are secured by Bavaria's breweries in Barranquilla and Itagui, as well as by upstream guarantees from several operating subsidiaries. In spite of owning 74% of the voting shares in its Peruvian subsidiary Union de Cervecerias Peruanas Backus y Johnston S.A.A. (Backus), Bavaria's total economic stake in this company is 38%. Should Bavaria increase its economic stake in Backus to approximately 75%, Fitch may view the company's cash flow and currency diversification from outside Colombia to be sufficient for rating Bavaria's foreign currency debt above the sovereign rating of Colombia. Fitch expects Bavaria to generate approximately US$610 million of operating income plus depreciation and amortization (EBITDA) during 2004. With capital expenditures expected to be approximately US$100 million, taxes projected to be US$150 million, interest expense estimated to be about US$170 million and changes in working capital likely to be around US$30 million, Bavaria should generate approximately US$160 million of free cash flow. With dividends anticipated to be about US$60 million, the company should have about US$100 million that it can use to reduce its debt to less than US$1.8 billion by the end of 2004. These figures translate into a total debt-to-EBITDA ratio of 3.0 times (x) and an EBITDA-to-interest expense coverage of 3.6x, which are both consistent with the rating category. Fitch believes that Bavaria (on an unconsolidated basis) and the financial guarantors of the unsecured notes will generate about US$300 million of EBITDA in 2004 and have about US$1.3 billion of debt. Additional financial support for the bonds could come from the free cash flow of Backus, which should total about US$70 million in 2004. These funds should be available to Bavaria, given its level of ownership in Backus. These figures translate to a total debt-to-EBITDA ratio of 3.5x. As of June 30, 2003, Bavaria had US$341 million of off-balance- sheet guarantees and contingent liabilities. Due to the nature of these liabilities, Fitch believes the financial risk to Bavaria to be approximately US$50 million. Most of these liabilities occurred as a result of the spin off of Bavaria's non beverage businesses into a company called Valores Bavaria S.A. Importantly, Bavaria's loans from IFC have a covenant that prohibits the company from guaranteeing any obligations of VB in the future. B/E AEROSPACE: Agrees to Sell Senior Notes & Amends Credit Pact --------------------------------------------------------------- B/E Aerospace, Inc. (Nasdaq: BEAV-News) has entered into an agreement to sell $175 million aggregate principal amount of 8-1/2% senior notes maturing in 2010 in a previously announced private offering pursuant to Rule 144A of the Securities Act of 1933, as amended. The company plans to use a portion of the proceeds to repay the balance outstanding under its bank credit facility. The remainder of the net proceeds will be added to B/E's cash and cash equivalents, which will be used for working capital, including funding future liquidity requirements, if any, and for general corporate purposes. In connection with the offering, B/E further amended its bank credit agreement to reduce commitments under the credit facility to $50 million, subject to completion of the offering. The offering is expected to close on October 7, 2003, subject to customary closing conditions. B/E Aerospace, Inc. (S&P, B+ Corporate Credit Rating, Negative Outlook) is the world's leading manufacturer of aircraft cabin interior products, and a leading aftermarket distributor of aerospace fasteners. With a global organization selling directly to the world's airlines B/E designs, develops and manufactures a broad product line for both commercial aircraft and business jets and provides cabin interior design, reconfiguration and conversion services. Products for the existing aircraft fleet--the aftermarket--provide about 60 percent of sales. For more information, visit B/E's Web site at http://www.beaerospace.com BRITEX GROUP: Nova Scotia Business Inc. Appoints Receiver --------------------------------------------------------- Nova Scotia Business Inc. (NSBI) and the Department of Economic Development jointly appointed a receiver for Britex Group Ltd. The receiver will manage daily operations at the plant and aggressively seek a qualified buyer. NSBI believes that a profitable business opportunity may exist, under the right circumstances, and hopes that a long-term solution can be identified quickly. The receiver will ensure that operations continue at a level that provides the most attractive business opportunity for a prospective new buyer. Nova Scotia Economic Development authorized a 90-day extension on a $900,000 loan guarantee for Britex to permit time for projected sales to materialize and allow the company to conclude negotiations with Nova Scotia Business Inc., its main creditor. Britex currently owes NSBI approximately $3.6 million in loans and interest. NSBI has been in discussions with company management for the past several months but was unable to reach an acceptable agreement that, in NSBI's opinion, would result in a viable and sustainable long-term solution for the operation. Nova Scotia Business Inc. is the province's business development agency, an organization that works with companies to deliver business solutions. The private sector-led organization works to attract new businesses to the province and help those already in Nova Scotia expand through services such as export development and financing. BUCKEYE TECHNOLOGIES: Sets Q1 Conference Call for October 21 ------------------------------------------------------------ Buckeye Technologies, Inc. (NYSE:BKI), has scheduled a conference call to discuss first quarter results, on Tuesday, October 21, 2003, beginning at 10:30 a.m. Eastern Time. Management participating on the call will include David B. Ferraro, Chief Executive Officer John B. Crowe, President and Chief Operating Officer Kristopher J. Matula, Sr. Vice President, Nonwovens and Corporate Strategy Gayle L. Powelson, Sr. Vice President and Chief Financial Officer Gordon B. Mitchell, Investor Relations Manager All interested parties are invited to listen to the audio conference call live or tape delayed via the Web site http://www.streetevents.comor via the Company's Web site homepage at http://www.bkitech.com The replay will be archived on these websites through November 20, 2003. In addition, persons interested in listening by telephone may dial in at (800) 811-7286 within the United States. International callers should dial (913) 981-4902. Participants should call no later than 10:20 a.m. ET. To listen to the telephone replay of the conference call, dial (888) 203-1112 or (719) 457-0820. The passcode is 637600. The telephone replay will be available until midnight November 10, 2003. A press release will be issued via Business Wire after the market closes on October 20. If you do not receive a copy of this release, please contact Gordon Mitchell at (901) 320-8256. Buckeye (S&P, BB- Corporate Credit Rating, Stable), a leading manufacturer and marketer of specialty cellulose and absorbent products, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, Ireland and Brazil. Its products are sold worldwide to makers of consumer and industrial goods. CABLE DESIGN: Sinks into Red Ink in Fiscal 2003 Fourth Quarter -------------------------------------------------------------- Cable Design Technologies (NYSE: CDT) announced results for its fourth quarter ended July 31, 2003. Fred Kuznik, CDT CEO stated, "Except for the writedown of a non-performing business and adjustments to our Canadian pension, the fourth quarter operating results exceeded our expectations." In the fourth quarter, the Company recorded a net loss from continuing operations before the cumulative effect of an accounting change for goodwill of $0.7 million. Included in this loss, was a business restructuring charge of $3.9 million ($2.3 million net of tax), the previously mentioned additional pension cost which was related to the discontinued NORCOM business of approximately $1.4 million ($0.9 million net of tax), and a $1.4 million currency translation impact on operating expenses. Sales for the fourth quarter ended July 31, 2003, were $129.5 million versus $128.0 million last year. A favorable effect of foreign currency translation, primarily on European revenues, positively impacted sales by approximately 6% compared to the fourth quarter last year. Network Communication segment sales for the fourth quarter 2003 were $75.8 million and represented 59% of total company revenues and compares to $75.1 million for last year's fourth quarter. Specialty Electronic segment sales for the fourth quarter 2003 were $53.7 million compared to $52.9 million for the same period last year. Fourth Quarter Highlights - Despite pricing pressures, gross margins remained relatively flat due to cost-cutting measures. Gross margin was 24.6% for the current quarter compared to 24.7% last year. - Selling, general and administrative expenses were $24.7 million for the current quarter compared to $23.1 million last year. The increase in SG&A is primarily attributable to recognition of additional pension costs of approximately $1.4 million associated with a retirement plan of the Company's Canadian operations, which included the discontinued NORCOM business. Additionally, the effect of foreign currency translation increased SG&A by approximately $1.4 million compared to the same period last year. - A business restructuring charge of approximately $3.9 million ($2.3 million net of tax) was incurred as a result of the Company's decision to divest of it's AWI/CDT subsidiary, a manufacturer of connectors and cable assemblies for the telecommunication market. The Company is currently in the process of locating a buyer for this operation. The charge represents a writedown of certain AWI's assets, primarily machinery and intangible assets, to fair value. As of July 31, 2003, AWI/CDT operations did not meet the accounting criteria for treatment as held for sale and accordingly does not qualify as discontinued operations. - During the fourth fiscal quarter 2003, the Company completed a private placement $110 million convertible debt offering, using the proceeds to reduce substantially all bank debt. SFAS No. 142-Goodwill Impairment CDT adopted SFAS No. 142, "Goodwill and Other Intangible Assets," effective August 1, 2002. During the fourth quarter 2003 the Company completed the evaluation of goodwill for impairment and recorded a non-cash charge of $35.7 million, net of tax, of which $30.9 million related to businesses in the Specialty Electronic segment. The charge will be reflected retroactively in the first interim period of the fiscal year as a cumulative effect of an accounting change. Key Fiscal Year Statistics Key financial statistics for the full fiscal year 2003 are: - Sales for the full year were $484.7 million versus $501.6 million last year; - Network Communication segment sales were $283.9 million for fiscal year 2003 compared to $295.4 million last year; - Specialty Electronic segment sales were $200.8 million versus $206.2 million last year; - Gross margin was 23.5% for the year compared to 25.5% last year. The lower gross margin was primarily due to pricing pressures and volume inefficiencies. SG&A as a percentage of revenue decreased slightly to 19.2% for fiscal 2003 compared to 19.5% for fiscal 2002. - Costs associated with business restructuring activities totaled $12.4 million for the year, representing an after tax impact of $0.18 per diluted share. These charges included costs associated with the consolidation of four operations during the first fiscal quarter and severance costs associated with workforce reductions, in addition to the fourth quarter charges discussed above. - The company expects savings to be $25 to $30 million as a result of the streamlining of operations. Kuznik, concluded, "Due to the weak economic and marketplace conditions that were prevalent in fiscal 2003, we took the necessary steps to restructure our business by consolidating regional management and operational functions to eliminate duplication of effort and overhead costs and to more closely associate management and production. We consolidated several under-performing facilities and redirected existing contracts without impacting quality or delivery. We believe the restructuring and retooling will put us in an excellent position to focus our attention on growing the business both organically and through strategic acquisitions." Cable Design Technologies (S&P, BB Corporate Credit Rating, Negative Outlook) -- http://www.cdtc.com-- is a leading designer and manufacturer of high bandwidth network connectivity products used in computer interconnect, switching and wireless applications and electronic data and signal transmission products that are used in automation and process control and specialty applications. CALL-NET ENTERPRISES: Completes 1.5-Mil. Class B Shares Offering ---------------------------------------------------------------- Call-Net Enterprises Inc. (TSX: FON, FON.B) has completed its previously announced offering of 1,500,000 Class B Non-Voting Shares at a price of $3.75 per share for gross proceeds of $5.625 million. The public offering is pursuant to the exercise in full of the over-allotment option granted to the syndicate of underwriters by Call-Net. Call-Net completed a $37.5 million offering of Class B Non-Voting Shares on September 9, 2003. Together with the proceeds from the over-allotment offering, the aggregate gross proceeds of the public offering are $43.125 million. The underwriting syndicate for the public offering was led by BMO Nesbitt Burns Inc. and included CIBC World Markets Inc., TD Securities Inc. and National Bank Financial Inc. Call-Net Enterprises Inc. (S&P, B/Negative, LT Corporate Rating) is a leading Canadian integrated communications solutions provider of local and long distance voice services as well as data, networking solutions and online services to households and businesses. It provides services primarily through its wholly- owned subsidiary, Sprint Canada Inc. Call-Net Enterprises and Sprint Canada are headquartered in Toronto and own and operate an extensive national fibre network with over 134 co-locations in nine Canadian metropolitan markets. CELLSTAR CORP: Promotes Robert Kaiser to President and COO ---------------------------------------------------------- CellStar Corporation (Nasdaq: CLST), a value-added wireless logistics and distribution services leader, has promoted chief financial officer Robert Kaiser to the position of president and chief operating officer. The Company also announced that it has named Paul C. Samek as senior vice president and chief financial officer. "Robert has done an outstanding job as CFO," said Terry Parker, chief executive officer of CellStar. "The time has now come to move him into an operating role, where we can capitalize on his tremendous experience in virtually all segments of the wireless communications industry. We look forward to his continued leadership contributions to CellStar." Kaiser has served as senior vice president and chief financial officer of CellStar since December 2001. Prior to joining CellStar, Kaiser served as president and chief executive officer of MobileStar Network Corporation, a provider of broadband wireless Internet access. Prior to joining MobileStar, Kaiser served as CEO of WorldCom Broadband Solutions Group, where he was responsible for numerous broadband services including all domestic wireless broadband efforts. Previously, Kaiser served as CEO and CFO of SkyTel, where he was responsible for the financial restructuring that led to WorldCom's acquisition of the $1 billion wireless messaging company with nearly two million subscribers. Earlier in his career, Kaiser played an integral role in the growth of Southwestern Bell's Mobile Systems where he served for nearly 10 years as CFO. "We are also pleased to announce the appointment of Paul C. Samek as senior vice president and chief financial officer," continued Parker. "Paul is a seasoned finance and accounting executive with a unique blend of high technology, manufacturing, logistics, multi-national and public company experience that complements and adds depth to our executive leadership team." Most recently, Samek was vice president and chief financial officer of The Spectranetics Corporation, a publicly-held developer, manufacturer, marketer and distributor of medical devices. Prior to joining Spectranetics, Samek served as chief financial officer of The Nash Engineering Company, a leader in the design, manufacture and service of vacuum pumping systems, with manufacturing locations in Brazil, Korea, China, Canada and the U.S. Prior to joining The Nash Engineering Company, Samek was vice president, finance and administration, and chief financial officer for Allsteel, Inc., a multi-plant manufacturer of office furniture solutions for global commercial and consumer markets. Previously he held several senior level finance and audit positions at Concurrent Computer Corporation, Motorola and Deloitte & Touche LLP. CellStar Corporation (S&P, SD Corporate Credit Rating) is a leading global provider of value-added logistics services to the wireless communications industry, with operations in the Asia- Pacific, North American, Latin American, and European regions. CellStar facilitates the effective and efficient distribution of handsets, related accessories and other wireless products from leading manufacturers to network operators, agents, resellers, dealers and retailers. CellStar also provides activation services in some of its markets that generate new subscribers for wireless carriers. For the year ended November 30, 2002, the Company generated revenues of $2.2 billion. Additional information about CellStar may be found on its Web site at http://www.cellstar.com CENTERPULSE: BB Ratings Withdrawn Following Zimmer Takeover ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB' long-term corporate credit ratings on Centerpulse Ltd. and its 'BB' bank loan rating on related entity Centerpulse Orthopedics Inc. This follows the completion of the $3.2 billion acquisition of Centerpulse by U.S.-based Zimmer Holdings Inc. (BBB/Stable/--), a leading orthopedic implant manufacturer. Subsequently, all outstanding debt at Centerpulse was repaid. CHANNEL MASTER: Case Summary & List of Largest Unsec. Creditors --------------------------------------------------------------- Lead Debtor: Channel Master Holdings, Inc. 1315 Industrial Park Drive Smithfield, NC 27577 (302) 777-6500 Bankruptcy Case No.: 03-13004-MFW Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Channel Master L.L.C. 03-13005-MFW Channel Master International Holdings, Inc. 03-13006-MFW Chapter 11 Petition Date: October 02, 2003 Court: District of Delaware Judge: Mary F. Walrath Debtors' Counsel: David B. Stratton, Esq. Pepper Hamilton LLP 1201 N. Market Street, Suite 1600 Wilmington, DE 19801 usa 302 777-6500 Fax : 302-656-8865 Email: strattond@pepperlaw.com Estimated Assets Estimated Debts ---------------- --------------- Channel Master Holdings $50-100 Million $10-50 Million Channel Master LLC $50-100 Million $50-100 Million Channel Master Int'l $10-50 Million $10-50 Million List of Debtors' Largest Unsecured Creditors: A. Channel Master Holdings Entity Nature of Claim Claim Amount ------ --------------- ------------ Questor Partners Subordinated loan $24,266,817 2000 Town Center note Suite 2450 Southfield, MI 48075 Contact: Wallace L. Rueckel T: 248-213-2216 F: 248-213-2215 3i Investments plc Subordinated loan $6,488,429 91 Waterloo Road note London SE1 8XP United Kingdom Ian Lobley T: 44-207-975-3436 F: 44-207-975-3241 Bruce Armstrong Subordinated loan $1,414,344 9 Grange Way note Sandbach Cheshire CW11 1ES United Kingdom T: 44-1270-765-548 F: 44-1270-763-157 Ian Radley Subordinated loan $1,015,591 Littlewick Lodge note Jubilee Road, Littlewick Green Berkshire SL6 3QU United Kingdom T: 44-1628-828-431 Robert C.S. Furness Subordinated loan $936,146 Westbrook House note Boxford Berkshire RG20 8DJ United Kingdom T: 44-1488-608-335 F: 44-1488-608-686 Stephen Mitchell Subordinated loan $401,216 Hawthorne Cottage note Winterbourne Berkshire RG20 8BB United Kingdom T: 44-1635-248-782 F: 44-1635-247-840 Gerard King Subordinated loan $267,478 Edglee House note Upper Bucklebury, Nr Reading Berkshire RG7 6QJ United Kingdom T: 44-1635-874-843 Stephen J. Flynn Subordinated loan $266,623 Ashford House, note Ashford Hill Road Headley, Thatcham Berkshire RG19 8AB United Kingdom T: 44-1635-269-155 Gordon Jackson Subordinated loan note $35,058 Harold Mills Subordinated loan note $28,832 Terry Bernander Subordinated loan note $24,444 Richard Derrenbacher Subordinated loan note $20,906 Michael Poe Subordinated loan note $20,561 Andrew Carduner Subordinated loan note $12,573 Jim Gray Subordinated loan note $12,573 Michael P. Schulhof Subordinated loan note $12,573 B. Channel Master LLC Entity Nature of Claim Claim Amount ------ --------------- ------------ Radiance Electronics Co. Ltd. Trade Claim $5,437,429 139 Fu Te Nan Road Wai Gao Qiao Free Trade Zone Pudong, Shanghai 200131 China L C CHEAH T: 86-21-5048-0188 F: 86-21-5048-0189 NEC Electronics Trade Claim $646,668 Cygnus House Linford Wood Bus Sunrise Parkway-Linford Wood Milton Keynes MK14 6NP United Kingdom Contact: Frosa Demetriou T: 44-1908-837-291 F: 44-1908-847-291 Johnston County Tax Collector Property Taxes $422,088 P.O. Box 28008 Raleigh, NC 27611 T: 919-989-5120 F: 919-989-5614 Scotland Container Inc. Trade Claim $386,828 PO Box 1625 Hwy 401 Bypass Laurinburg, NC 28352 Contact: Elizabeth Odem T: 910-277-0400 x. 277 F: 910-277-0221 WKK Technology Ltd. Trade Claim $346,908 WKK Building 12/F 414 Kwun Tong Road Kowloon, Hong Kong Contact: Raymond Tsu T: 852-2357-8888 F: 852-2343-5283 Panalpina Inc. Trade Claim $237,753 Sherwin Williams (Raleigh) Trade Claim $144,583 Industrial River & Fastener Trade Claim $141,693 Co. Welsh Paper Company Trade Claim $125,863 Doral Steel Trade Claim $101,714 Norsat International Trade Claim $96,901 Continental Metals, Inc. Trade Claim $83,364 United Tool & Stamping $78,552 Jebsee Electronics Co. Ltd. Trade Claim $72,051 GSPK Electronics Limited Trade Claim $71,808 Cameron & Barkley Trade Claim $71,378 Toshiba America Electronic Trade Claim $68,187 New York Wire Company Trade Claim $66,821 C&W Transportation Trade Claim $63,472 Chongqing Polycomp Int. Corp. Trade Claim $58,061 CONCERT INDUSTRIES: Court Extends CCAA Order Until December 5 ------------------------------------------------------------- Concert Industries Ltd. (TSX: CNG) has received from the Quebec Superior Court an extension of its initial order under the Companies' Creditors Arrangement Act to December 5, 2003. The Company continues to work diligently with its various stakeholders towards tabling a Plan of Arrangement. Concert also announced that Mr. Raoul Heredia will take on the title of CEO in addition to his current responsibilities as President. Mr. Robert Normand, a director since March 2001, has been elected Chairman of the Board. Mr. Dieter Peter, who is also the founder of Concert Industries Ltd., formerly held both positions. He will continue to serve the Company as a director. The Board of Directors wishes to thank Mr. Peter for his numerous years of service. The entire text of the Court order and the Monitor's report is available through the Company's Web site at http://www.concert.ca Concert Industries Ltd. is a company specializing in the development and manufacture of cellulose fiber based products using airlaid manufacturing technology. Concert's products are key components in a wide range of personal care consumer products, including feminine hygiene and adult incontinence products. Other applications include pre-moistened baby wipes, disposable medical and filtration applications and tabletop products. The Company has manufacturing facilities in Canada, in Gatineau and Thurso, Quebec, and in Germany, in Falkenhagen, Brandenburg. CONNECTICARE INC: BB Ratings Placed on CreditWatch Negative ----------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' counterparty credit and financial strength ratings on ConnectiCare Inc. on CreditWatch with negative implications after Bank of America announced that it will launch a $115 million bank loan transaction for Carlyle Group-owned ConnectiCare Holdings Inc. on Oct. 2, 2003. The transaction will include a $100 million, six-year, institutional term loan and a $15 million revolver. "The proposed transaction is expected to increase ConnectiCare Holdings Inc.'s debt-to-capital ratio to more than 100% from 42.9% at year-end 2002, which is extremely aggressive," said Standard & Poor's credit analyst Phillip C. Tsang. Moreover, the financial flexibility of ConnectiCare, a wholly owned operating HMO subsidiary of ConnectiCare Holdings Inc., will be significantly reduced because of its role in servicing its parent's debt. Standard & Poor's will meet with ConnectiCare's management to discuss the impact of the transaction on the ratings. CONSOL ENERGY: RWE Agrees to Sell 27.3 Million CONSOL Shares ------------------------------------------------------------ CONSOL Energy Inc.'s (NYSE: CNX) largest shareholder, RWE of Essen, Germany, has agreed to sell 27.3 million shares of its 43.9 million shares of CONSOL Energy common stock in a private placement sale. Following the sale, RWE will hold 16.6 million shares of CONSOL Energy common stock, or 18.5% of the 89.8 million shares of common stock outstanding. On September 23 and 24, 2003, RWE closed on a previously announced sale of 14.1 million shares of CONSOL Energy common stock, reducing its initial majority interest from 73.6% to 48.9%. On the same dates, CONSOL Energy closed on a previously announced sale of 11.0 million primary shares of its common stock, increasing the total shares of common stock outstanding to 89.8 million. The shares of common stock offered have not been registered under the Securities Act of 1933 and may not be offered in the United States absent registration or an applicable exemption from registration requirements. CONSOL Energy Inc. (S&P, BB+/B Corporate Credit Rating, Stable) is the largest producer of high-Btu bituminous coal in the United States, and the largest exporter of U.S. coal. CONSOL Energy has 20 bituminous coal mining complexes in seven states and in Australia. In addition, the company is one of the largest U.S. producers of coalbed methane, with daily gas production of approximately 135 million cubic feet. The company also produces electricity from coalbed methane at a joint-venture generating facility in Virginia. CONSOL Energy has annual revenues of $2.2 billion. It received a U.S. Environmental Protection Agency 2002 Climate Protection Award, and received the U.S. Department of the Interior's Office of Surface Mining 2002 National Award for Excellence in Surface Mining for the company's innovative reclamation practices in southern Illinois. Additional information about the company can be found at its Web site: http://www.consolenergy.com CONSOLIDATED FREIGHTWAYS: Auctioning-Off Montana Facilities Wed. ---------------------------------------------------------------- As part of the largest real estate sale in transportation history -- 220 total properties with an appraised value over $400 million -- Consolidated Freightways is placing its Butte and Great Falls distribution facilities for sale to the highest bidder, through a reserve auction process scheduled for October 8, 2003. The Butte terminal is located at 2755 Lexington Street and is a 22-door cross-dock distribution facility situated on 6.15 acres. A reserve auction starting price of $330,000 has been established for the Butte property. The Great Falls terminal is a 48-door cross-dock distribution facility situated on 3.65 acres at 305 Sixth Street, NW. A reserve auction starting price of $235,000 has been established. Six CF employees formerly worked at the Great Falls terminal and eight employees worked at Butte. Both facilities have been closed to operations since September 3, 2002, when the 74-year-old company filed for bankruptcy protection. Since then CF has been liquidating the assets of the corporation under orders of the bankruptcy court. Interested parties who would like to participate in the October 8 bankruptcy auction should submit the form Request to be Designated a Qualified Bidder at Auction. That form can be found at http://www.cfterminals.com/Overbidder.htmland must be submitted prior to the date of the auction. The indicated deposit must also be received, via wire or certified check, prior to the date of the auction. To date, 135 CF properties throughout the U.S. have been sold for over $250 million. Potential bidders should direct any questions about the property and the bidding procedures that cannot be answered at the company's Web site - http://www.cfterminals.com- to Transportation Property Company at 800-440-5155 CONSOLIDATED FREIGHTWAYS: Manfield Facility Up on Auction Block --------------------------------------------------------------- As part of the largest real estate sale in transportation history -- 220 total properties with an appraised value over $400 million -- Consolidated Freightways is placing its Mansfield distribution facility located at 515 North Lexington Springmill for sale to the highest bidder, through a reserve auction process scheduled for October 8, 2003. The Mansfield property is a 30-door cross-dock distribution facility situated on 9.83 acres and has been closed to operations since September 3, 2002, when the 74-year-old company filed for bankruptcy protection. Since then, CF has been liquidating the assets of the corporation under orders of the bankruptcy court. Twelve CF employees formerly worked at the Mansfield terminal. A reserve auction price of $900,000 has been established for the CF property. Interested parties who would like to participate in the October 8 bankruptcy auction should submit the form Request to be Designated a Qualified Bidder at Auction. That form can be found at http://www.cfterminals.com/Overbidder.htmland must be submitted prior to the date of the auction. The indicated deposit must also be received, via wire or certified check, prior to the date of the auction. To date, 135 CF properties throughout the U.S. have been sold for over $250 million. Potential bidders should direct any questions about the property and the bidding procedures that cannot be answered at the company's Web site http://www.cfterminals.comto Transportation Property Company at 800-440-5155. CORRECTIONS CORP: Inks New Contract with U.S. ICE Agency -------------------------------------------------------- Corrections Corporation of America (NYSE:CXW) signed a new contract with the United States Immigration and Customs Enforcement agency for up to 905 detainees at its Houston Processing Center located in Houston, Texas. In addition, CCA intens to expand the facility by 494 beds from its current 411 beds to 905 beds. The anticipated cost of the expansion is approximately $29 million and is estimated to be completed during the first quarter of 2005. The expansion is being undertaken in order to handle additional detainee populations that are anticipated as a result of this contract, which contains a guarantee that ICE will utilize 679 beds at such time as the expansion is completed. Commenting on the new contract, President and CEO John Ferguson stated, "As the initial partner selected by what was formerly the Immigration and Naturalization Service, in 1983 CCA became the pioneer of the private correctional industry and continues to be the industry leader today. We are grateful for the confidence placed in CCA's performance over the last two decades by ICE and look forward to an ongoing relationship in meeting its detention needs." Corrections Corporation of America (S&P, B+ Corporate Credit Rating, Positive) is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and four states. The Company currently operates 59 facilities, including 38 company-owned facilities, with a total design capacity of approximately 59,000 beds in 20 states and the District of Columbia. The Company specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, the Company's facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. The Company also provides health care (including medical, dental and psychiatric services), food services and work and recreational programs. COVANTA ENERGY: Court Fixes Uniform Geothermal Bidding Protocol --------------------------------------------------------------- Covanta Energy Corporation and its debtor-affiliates sought and obtained the Court's approval of these Bidding Procedures with regard to the sale of the Geothermal Debtor Equity: A. Bid Deadline Bids for the Geothermal Debtor Equity must conform to the requirements and must be filed with the Court and submitted to Covanta Energy Corporation, 40 Lane Road, Fairfield, N