T R O U B L E D C O M P A N Y R E P O R T E R Thursday, January 6, 2005, Vol. 9, No. 4 Headlines ADELPHIA COMMS: Has Until March 14 to Make Lease-Related Decisions ALASKA COMMS: Plans to Refinance Debt with Equity Offering ALOHA AIRGROUP: Taps Gelber Ingersoll as Bankruptcy Counsel ALOHA AIRGROUP: Look for Bankruptcy Schedules by Mar. 15 ANECO ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors ANECO ELECTRICAL: Wants to Retain Stichter Riedel as Counsel ANECO ELECTRICAL: Section 341(a) Meeting Slated for Feb. 4 APEX PLUMBING: Case Summary & 20 Largest Unsecured Creditors ARTIFICIAL LIFE: Accelera Ventures Discloses 7.37% Equity Stake ATA AIRLINES: Sec. 341 Meeting of Creditors Continued to Jan. 11 AVITAR INC: Losses & Deficits Trigger Going Concern Doubt BEDROCK BOWLING LLC: Case Summary & 6 Largest Unsecured Creditors CITATION CORP: Needs Until Jan. 28 to File a Chapter 11 Plan CITATION CORP: Miller Buckfire Approved as Financial Advisor CLARK GROUP: Charles W. Riske Approved as Liquidating Trustee CURATIVE HEALTH: Inks Settlement Pact with Calif. Health Services DEVLIEG BULLARD: Court Converts Case to Chapter 7 Proceeding DOMTAR INC: Restructures Northeastern Ontario Sawmill Operations DONNKENNY, INC.: CIT Credit Agreement in Default at Dec. 31 DPL CAPITAL: S&P Affirms B Ratings on Six Security Classes FALCON PRODUCTS: Expects Inventory Write-Down of $20 Million Up FRANKLIN CAPITAL: Asks Stockholders to Okay 2-for-1 Stock Split FRIEDMAN'S INC: In Talks with Lenders to Amend Financial Covenants GLEN CARTER EXCAVATING: Voluntary Chapter 11 Case Summary HAPPY KIDS INC: Case Summary & 30 Largest Unsecured Creditors INTEGRATED HEALTH: Briarwood Wants Stock Purchase Deal Completed INTERSTATE GENERAL: Continuing Losses Prompt PCXE to Halt Trading INT'L. FABRICATORS: Case Summary & 20 Largest Unsecured Creditors LOEWEN GROUP: State Street Wants $224,705 Class 23 Claims Paid LSI LOGIC: Raises 2004 Fourth Quarter Revenue & EPS Guidance MANUFACTURED HOUSING: S&P's Rating on Class B-1 Debt Slides to D MATRIA HEALTHCARE: Adopted Holding Company Structure on Dec. 31 MIRANT: Seeks Tolling Pacts for Two California Generating Units MOOG INC: S&P Rates Proposed $120 Million Senior Sub. Notes at B+ NATIONAL CENTURY: Trust Objects to R. Parrett's $110 Mil. Claims NEXTEL PARTNERS: Welcomes Art Harrigan to Board of Directors NOTIFY TECHNOLOGY: Losses & Deficit Triggers Going Concern Doubt NQL DRILLING: Appoints Pat Shouldice to Board of Directors NRG ENERGY: Agrees to Settle Con Edison Claims for $5.8 Million PAW INVESTMENTS: Voluntary Chapter 11 Case Summary PEGASUS SATELLITE: Wants to Abandon Unsold Assets to Lenexa PENN TRAFFIC: Names Robert Dimond VP & Chief Financial Officer PRUDENTIAL SECURITIES: Moody's Rates Four Cert. Classes at Low-B PSYCHIATRIC SOLUTIONS: S&P Revises Ratings Outlook to Stable QUIGLEY COMPANY: Caplin & Drysdale Approved as Committee Counsel RAYOVAC CORP: S&P Places Low-B Ratings on CreditWatch Negative REI TRUST: Fitch Withdraws 'BB+' Rating on $375 Mil. 7.20% Trust RELIANCE GROUP: Settles $2.8 Million Wrongful Death Action Claims RITE AID: Offering $200 Million Senior Notes to Repay 2015 Notes ROCKY MOUNTAIN: Receiver Initiates Distribution of Funds SATCON TECHNOLOGY: Auditors Raise Going Concern Doubts SENECA GAMING: S&P Revises Outlook on Low-B Ratings to Negative SPIEGEL INC: Court Approves MBIA & BNY Claims Settlement STELCO INC: Binding Offers Due by January 31, 2005 TEMBEC INC: Restructuring Five Sawmills in Northeastern Ontario TEMBEC INC: Moody's Pares Ratings to B2 & Says Outlook is Stable TEV INVESTMENT: List of its 11 Largest Unsecured Creditors TORPEDO SPORTS: Symbol Returns to TPDO Following Filing of Reports TOWER AUTOMOTIVE: Closes New $50 Million Securitization Facility TUCSON ELECTRIC: Fitch Affirms Low-B Bond Ratings UAL CORPORATION: Taps Pachulski Stang to Pursue Preference Actions US AIRWAYS: 64% of Attendants Ratify $94 Million Cost-Savings Pact US AIRWAYS: Creditors Committee Retains Giuliani Capital W.R. GRACE: Asbestos PD Committee Objects to Disclosure Statement W.R. GRACE: Future Representative Says Plan is Unconfirmable WACHOVIA BANK: S&P Places Low-B Ratings on Six Certificate Classes WARNER CHILCOTT: Moody's Junks $750M Senior Subordinated Notes WARNER CHILCOTT: S&P Rates Proposed $1.64B Sr. Sec. Debt at B * ABA Bench & Bar Bankruptcy Conference is in March in Washington * Bob Iommazzo Joins NachmanHaysBrownstein as Managing Director * Dewey Ballantine Elects Five Local Partners in European Offices * Ropes & Gray Completes Merger to Create Largest IP Group ********* ADELPHIA COMMS: Has Until March 14 to Make Lease-Related Decisions ------------------------------------------------------------------ Judge Gerber of the U.S. Bankruptcy Court for the Southern District of New York granted Adelphia Communications Corporation and its debtor-affiliates and extension of their time to elect to assume, assume and assign or reject unexpired leases and executory contracts. The extension runs through March 14, 2005. The Court makes it clear that if the Debtors will seek to reject that certain lease with Steamtown Mall Partners, LP, governing the premises located at the Mall at Steamtown in Scranton, Pennsylvania, at any time between September 7, 2004, and January 31, 2005, the effective date of the rejection will be no earlier than January 31, 2005. Headquartered in Coudersport, Pennsylvania, Adelphia Communications Corporation (OTC: ADELQ) is the fifth-largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. (Adelphia Bankruptcy News, Issue No. 76; Bankruptcy Creditors' Service, Inc., 215/945-7000) ALASKA COMMS: Plans to Refinance Debt with Equity Offering ---------------------------------------------------------- Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) disclosed plans for a $75 million common stock offering of primary shares and for a new senior secured credit facility. The proposed senior credit facility is expected to consist of a $50 million revolving credit facility and a $335 million term loan facility. The company plans to use the net proceeds from the proposed equity offering and borrowings under the senior credit facility to finance a portion of the proposed repayment of its existing senior secured credit facility and the proposed repurchase of all of its outstanding 9-3/8% senior subordinated notes due 2009 and approximately 35 percent of its outstanding 9-7/8% senior notes due 2011. The shares of common stock will be offered under the registration statement on Form S-3 that the company filed on Dec. 20, 2004, with the Securities and Exchange Commission. It is currently expected that the offering will be made before the end of January 2005. A prospectus supplement will be filed with the SEC containing specific information about the terms of the proposed equity offering. The completion of any equity offering, senior credit facility and refinancing will be subject to a number of conditions, including market conditions. As a result, there can be no assurance as to the terms or size of any equity offering, senior credit facility or refinancing or that an equity offering, senior credit facility and refinancing in fact will be completed. A registration statement relating to the common stock has been filed with the SEC but has not yet become effective. The common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common stock in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. About Alaska Communications Systems ACS is the leading integrated communications provider in Alaska, offering local telephone service, wireless, long distance, data, and Internet services to business and residential customers throughout Alaska. * * * As reported in the Troubled Company Reporter on Nov. 05, 2004, Standard & Poor's Ratings Services affirmed its ratings on Alaska Communications Systems Group Inc. and subsidiaries, including the 'B+' corporate credit rating. All ratings were removed from CreditWatch, where they were placed with negative implications June 8, 2004, due to concern about higher financial risk accompanying the company's proposed $400 million income deposit securities -- IDS -- offering. The outlook is negative. At the same time, Standard & Poor's assigned its '1' recovery rating to Alaska Communications' existing $250 million senior secured credit facility. The existing 'BB-' bank loan rating on the facility and the '1' recovery rating indicate a high expectation of full recovery of principal in the event of a payment default or bankruptcy. The affirmation and removal from CreditWatch follow Alaska Communications' withdrawal of its IDS transaction and the company's initiation of a $0.185 per share quarterly dividend. The dividend will total about $22.6 million annually and will be lower than the previously proposed dividend associated with the IDS. Alaska Communications will not be using cash to make an initial lump sum payment to shareholders, which was the company's plan under the IDS transaction. "Ratings reflect an aggressive shareholder-oriented financial policy, financial risk from acquisition and capital spending- related debt, and competitive pressure within the narrow and slow- growth Alaska telecommunications market," said Standard & Poor's credit analyst Eric Geil. Stagnant EBITDA, elevated capital expenditure needs, and a substantial dividend commitment will likely hamper near- to medium-term financial improvement potential. The dividend could also constrain investment spending needed to maintain competitiveness. These factors are partly tempered by the company's positions as the leading incumbent local exchange carrier -- ILEC -- in Alaska and the second-largest wireless provider in the state, as well as a degree of near-term financial cushion from an $80 million cash balance. ALOHA AIRGROUP: Taps Gelber Ingersoll as Bankruptcy Counsel ----------------------------------------------------------- Aloha Airgroup, Inc., and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the District of Hawaii to employ Gelber, Gelber, Ingersoll & Klevansky as their bankruptcy counsel. Gelber, Gelber Ingersoll will perform all the necessary services related to the Debtors' chapter 11 cases. The Firm did not disclose to the Court the current billing rates of its professionals. Don Jeffrey Gelber, Esq., director and president of Gelber Gelber Ingersoll, assures the Court of his Firm's "disinterestedness" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Honolulu, Hawaii, Aloha Airgroup, Inc. -- http://alohaairlines.com/-- provides air carrier service connecting five major airports in the State of Hawaii. The Company and its debtor-affiliate Aloha Airlines, Inc., filed for chapter 11 protection on Dec. 30, 2004(Bankr. D. Hawaii Case Nos. 04-03063 to 04-03064). When the Debtor filed for protection from its creditors, it listed more than $50 million in assets and debts. ALOHA AIRGROUP: Look for Bankruptcy Schedules by Mar. 15 -------------------------------------------------------- Aloha Airgroup, Inc., and its debtor-affiliate ask the U.S. Bankruptcy Court for the District of Hawaii for an extension until Mar. 15, 2005, to file their schedules of assets and liabilities and statements of financial affairs. The Debtors explain that due to the size and complexity of their operations, they need more time to gather the necessary information to accurately prepare and file their schedules and statements. Headquartered in Honolulu, Hawaii, Aloha Airgroup, Inc. -- http://alohaairlines.com/-- provides air carrier service connecting five major airports in the State of Hawaii. The Company and its debtor-affiliate Aloha Airlines, Inc., filed for chapter 11 protection on Dec. 30, 2004(Bankr. D. Hawaii Case Nos. 04-03063 to 04-03064). Alika L. Piper, Esq., Don Jeffrey Gelber, Esq., Simon Klevansky, Esq., at Gelber Gelber Ingersoll & Klevansky represent the Debtors in their restructuring efforts. When the Debtor filed for protection from its creditors, it listed more than $50 million in assets and debts. ANECO ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Aneco Electrical Construction, Inc. 601 Cleveland Street, Suite 600 Clearwater, Florida 33755 Bankruptcy Case No.: 04-24883 Type of Business: The Debtor is an electrical and telecommunications company serving the commercial, entertainment, industrial, medical, government and institutional building markets in the southeastern United States. See http://www.anecoinc.com/ Chapter 11 Petition Date: December 30, 2004 Court: Middle District of Florida (Tampa) Judge: Paul M. Glenn Debtor's Counsel: Scott A. Stichter, Esq. Stichter, Riedel, Blain & Prosser 110 East Madison Street, Suite 200 Tampa, FL 33602 Tel: 813-229-0144 Fax: 813-229-1811 Estimated Assets: $10 Million to $50 Million Estimated Debts: $10 Million to $50 Million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ General Electric Supply Co. $808,830 P.O. Box 100275 Atlanta, GA 30384 Electric Supply of Tampa $773,910 P.O. Box 151657 Tampa, FL 33684 Zurich North America $604,823 8734 Paysphere Circle Chicago, IL 60674 Mayer Electric $530,195 P.O. Box 1328 Birmingham, AL 35201 Marsh USA, Inc. $497,106 P.O. Box 198587 Atlanta, GA 30384 Colonial Electric $437,668 P.O. Box 8500 Philadelphia, PA 19178 Simplex Grinnell LP $326,715 Dept. CH 10320 Palatine, IL 60055 Pro Force Staffing, Inc. $323,261 Pearce Financial Group, Inc. P.O. Box 60479 Charlotte, NC 28260 Hughes Supply, Inc. $305,510 P.O. Box 101888 Atlanta, GA 30392 Dominion Electric Supply Co. $281,818 5053 Lee Highway Arlington, VA 22207 Communications Supply Corp. $207,363 Maddux Supply Company $202,952 SunTech Systems, Inc. $186,041 Graybar Electric Co., Inc. $173,610 McNaughton-McKay Elec. Co. $172,086 NDR Corporation $151,913 Atlantic Personnel Service, Inc. $147,123 Cornatzer & Associates $132,540 Tradesman International $119,493 B&S Electric Supply Co., Inc. $118,600 ANECO ELECTRICAL: Wants to Retain Stichter Riedel as Counsel ------------------------------------------------------------ Aneco Electrical Construction, Inc., asks the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, for permission to employ Stichter, Riedel, Blain & Prosser, P.A., as its counsel in this bankruptcy proceeding. The Debtor believes that Stichter Rieder is well qualified to represent it because of the Firm's considerable experience in bankruptcy and debtor-creditor law. Stichter Riedel will: a) render legal advice with respect to the Debtor's powers and duties as a debtor in possession, the continued operation of the Debtor's business, and the management of its property; b) prepare on behalf of the Debtor necessary motions, applications, orders, reports, pleadings, and other legal papers; c) appear before this Court, any appellate courts, and the United States Trustee to represent and protect the interests of the Debtor; d) take all necessary legal steps to confirm a plan a plan of reorganization; e) represent the Debtor in all adversary proceedings, contested matters, and matters involving administration of this case, both in federal and in state courts; f) represent the Debtor in negotiations with potential financing sources and preparing contracts, security instruments, or other documents necessary to obtain financing; and g) perform all other legal services that may be necessary for the proper preservation and administration of this chapter 11 case. Scott A. Stichter, Esq., at Stichter Riedel, will be the lead attorney in this case. Mr. Stichter discloses that the Debtor paid his Firm a $110,000 retainer. Stichter Riedel did not disclose the hourly rates of its professionals. To the best of the Debtor's knowledge, Stichter Riedel is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Clearwater, Florida, Aneco Electrical Construction, Inc. -- http://www.anecoinc.com/-- is an electrical and telecommunications company serving the commercial, entertainment, industrial, medical, government and institutional building markets in the southeastern United States. The Company filed for chapter 11 protection on Dec. 30, 2004(Bankr. M.D. Fla. Case No. 04-24883). When the Debtor filed for protection from its creditors, it listed more than $50 million in estimated assets and debts. ANECO ELECTRICAL: Section 341(a) Meeting Slated for Feb. 4 ---------------------------------------------------------- The United States Trustee for region 21 will convene a meeting of Aneco Electrical Construction, Inc.'s creditors at 1:30 p.m., on Feb. 4, 2005, at 501 East Polk Street, Timberlake Annex, Room 100-B in Tampa, Florida. This is the first meeting of creditors required under 11 U.S.C. Sec. 341(a) in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Clearwater, Florida, Aneco Electrical Construction, Inc. -- http://www.anecoinc.com/-- is an electrical and telecommunications company serving the commercial, entertainment, industrial, medical, government and institutional building markets in the southeastern United States. The Company filed for chapter 11 protection on Dec. 30, 2004(Bankr. M.D. Fla. Case No. 04-24883). Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Prosser represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed more than $50 million in estimated assets and debts. APEX PLUMBING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Apex Plumbing, LLC 3240-A Corporate Court Ellicott City, Maryland 21042 Bankruptcy Case No.: 04-39171 Type of Business: The Debtor is a plumbing contractor. Chapter 11 Petition Date: December 31, 2004 Court: District of Maryland (Baltimore) Judge: E. Stephen Derby Debtor's Counsel: Constance M. Hare, Esq. Mehlman, Greenblatt & Hare, LLC 723 South Charles Street, Suite LL3 Baltimore, MD 21230 Tel: 410-547-0300 Fax: 410-547-7474 Estimated Assets: $0 to $50,000 Estimated Debts: $1 Million to $10 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ United States Treasury Withholding taxes $519,971 Internal Revenue Service P.O. Box 8313 Philadelphia, PA 19162 Northeastern Supply $394,577 P.O. Box 6300209 Baltimore, MD 21263 NAS Surety Group $227,748 1200 Arlington Heights Road Suite 400 Itasca, IL 60143 FEI- Beltsville $120,000 Comptroller of Maryland Withholding taxes $90,189 Thomas Somerville-MD $88,942 Stout, Causey & Horning P.A. $53,635 Thomas and Kalichman $29,961 Jose Antonio Zuniga $27,377 Zurich North America $23,294 Roth Staffing Companies $16,404 Jose Landaverde $16,396 Raul Reyes $15,051 Jose Pacheco $14,262 Jonathan V. Ramos $13,883 Thornton & Harwell Ins. $12,920 Agency Jevenal Arellano $12,809 Balbino Rodriguez $12,006 Wright Express Corporation $11,668 The Home Depot $11,143 ARTIFICIAL LIFE: Accelera Ventures Discloses 7.37% Equity Stake --------------------------------------------------------------- Accelera Ventures Limited, of the British Virgin Islands, beneficially owns 1,050,000 shares of the common stock of Artificial Life, Inc., representing 7.37% of the outstanding common stock of the Company. The principal business office of Accelera Ventures Limited is on the 14th Floor, Suite 1408, Harcourt House, 39 Gloucester Road, Wanchai, Hong Kong. About the Company Artifical Life, Inc. -- http://artificial-life.com/-- develops and sells a wide range of products and custom applications for the Internet and mobile devices. Going Concern Doubt In its Form 10-QSB for the quarterly period ended Sept. 30, 2004, filed with the Securities and Exchange Commission, Artificial Life's independent registered public accountants raised substantial doubt about the Company's ability to continue as a going concern. The Company said its accumulated losses have severely impacted its liquidity and cash position which, in turn, have significantly impeded its ability to fund our operations in the past. At Sept. 30, 2004, Artificial Life's balance sheet showed a $1,977,437 stockholders' deficit. ATA AIRLINES: Sec. 341 Meeting of Creditors Continued to Jan. 11 ---------------------------------------------------------------- Terry E. Hall, Esq., at Baker & Daniels, notifies the United States Bankruptcy Court for the Southern District of Indiana that the Meeting of Creditors pursuant to Section 341(a) of the Bankruptcy Code has been continued to January 11, 2005 at 10:30 a.m. The meeting will be held at the office of Baker & Daniels located at 300 N. Meridian Street, 27th Floor, in Indianapolis, Indiana. As specified in Rule 9001(5) of the Federal Rules of Bankruptcy Procedure, Ms. Hall says, ATA Airlines and its debtor-affiliates' representative is required to appear at the meeting for the purpose of being examined under oath. Attendance by creditors is permitted but not required. Headquartered in Indianapolis, Indiana, ATA Airlines, owned by ATA Holdings Corp. -- http://www.ata.com/-- is the nation's 10th largest passenger carrier (based on revenue passenger miles) and one of the nation's largest low-fare carriers. ATA has one of the youngest, most fuel-efficient fleets among the major carriers, featuring the new Boeing 737-800 and 757-300 aircraft. The airline operates significant scheduled service from Chicago- Midway, Hawaii, Indianapolis, New York and San Francisco to over 40 business and vacation destinations. Stock of parent company, ATA Holdings Corp., is traded on the Nasdaq Stock Exchange. The Company and its debtor-affiliates filed for chapter 11 protection on Oct. 26, 2004 (Bankr. S.D. Ind. Case No. 04-19866, 04-19868 through 04-19874). Terry E. Hall, Esq., at Baker & Daniels, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $745,159,000 in total assets and $940,521,000 in total debts. (ATA Airlines Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000) AVITAR INC: Losses & Deficits Trigger Going Concern Doubt --------------------------------------------------------- Avitar, Inc., had a net loss of $2,968,760 for Fiscal 2004 compared to a net loss of $6,462,101 for Fiscal 2003. At September 30, 2004, the Company had a working capital deficiency of $388,972 and cash and cash equivalents of $508,876. Net cash used in operating activities during Fiscal 2004 amounted to $3,595,361, resulting primarily from: -- a net loss of $2,968,760, an increase in accounts receivable of $118,176, -- an increase in inventories of $98,925, -- an increase in prepaid expenses and other current assets of $46,199, -- a decrease in accounts payable and accrued expenses of $884,309, and -- a decrease in deferred income of $20,250; offset in part by: -- a loss from the disposal of is continued operation of $17,235, -- depreciation and amortization of $116,230, -- amortization of debt discount and deferred rent expense of $225,850, -- common stock and warrants issued for interest on short-term and long-term debt of $114,236, -- a loss on the extinguishment of long-term debt of $66,000, and -- a decrease in other assets of $1,707. Net cash provided by financing and investing activities during Fiscal 2004 was $2,973,318, which included proceeds from the sale of preferred stock, common stock and warrants of $2,800,406 and proceeds from the sale of United States Drug Testing Laboratories of $500,000; offset in part by repayment of short-term debt of $140,233, repayment of long-term debt of $11,279, payment of preferred stock dividend of $16,110 and purchases of property and equipment of $159,466. During FY 2005, the Company's cash requirements are expected to include primarily the funding of operating losses, the payment of outstanding accounts payable, the repayment of certain notes payable, the funding of operating capital to grow the Company's drugs of abuse testing products and services, and the continued funding for the development of its ORALscreen product line. Going Concern Doubt As a result of the Company's recurring losses from operations and working capital deficit, the report of its independent registered public accounting firm relating to the financial statements for Fiscal 2004 contains an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern. Such report states that the ultimate outcome of this matter could not be determined as of the date of such report (December 17, 2004). Avitar, Inc., through its wholly owned subsidiary Avitar Technologies, Inc. -- ATI, develops, manufactures, markets and sells diagnostic test products and proprietary hydrophilic polyurethane foam disposables fabricated for medical, diagnostics, dental and consumer use. During the fiscal year ended September 30, 2004, the Company continued the development and marketing of innovative point of care oral fluid drugs of abuse tests, which use the Company's foam as the means for collecting the oral fluid sample. Through its wholly-owned subsidiary, BJR Security, Inc., the Company provides specialized contraband detection and education services. On December 16, 2003, the Company sold the business and net assets, excluding cash, of its wholly owned-subsidiary, United States Drug Testing Laboratories, Inc., which operated a certified laboratory and provided specialized drug testing services primarily utilizing hair and meconium as the samples. BEDROCK BOWLING LLC: Case Summary & 6 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Bedrock Bowling, LLC 3207 Forest Lane Dallas, Texas 75032 Bankruptcy Case No.: 05-30366 Chapter 11 Petition Date: January 4, 2005 Court: Northern District of Texas (Dallas) Judge: Steven A. Felsenthal Debtor's Counsel: Lynne Renfro, Esq. Law Offices of Gary R. Trebert PO Box 569070 Dallas, Texas 75356-9070 Tel: (214) 634-6611 Fax: (214) 634-6644 Estimated Assets: $1 Million to $10 Million Estimated Debts: $100,000 to $500,000 Debtor's 6 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Delete Creditor Promissory Note $250,000 [address not provided] Texas Comptroller of Sales Taxes $5,320 Public Accounts 9241 LBJ Freeway, Suite 205 Dallas, Texas 75243 Tel: (972) 671-7166 Texas Comptroller of Taxes $4,485 Public Accounts 9241 LBJ Freeway, Suite 205 Dallas, Texas 75243 Tel: (972) 671-7166 Trinity Medical Center Medical Bill $3,707 2401 Internet Boulevard Suite 110 Frisco, Texas 75034 David Childs Property Taxes $2,572 Tax Assessor Collector Hebron Emergency Physicians Medical Bill $538 CITATION CORP: Needs Until Jan. 28 to File a Chapter 11 Plan ------------------------------------------------------------ Citation Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the Northern District of Alabama for an extension, through and including January 28, 2005, of the time within which they alone can file a chapter 11 plan. The Debtors also ask the Court for more time to solicit acceptances of that plan from their creditors, through April 15, 2005. This is the Debtors' first request for an extension of their exclusive periods. The Debtors give the Court two reasons militating in favor of their request for an extension of their exclusive periods: a) the Debtors' businesses are huge and complex that consist of a parent corporation, a holding company and 22 subsidiaries, which are all focused on the turnaround and reorganization of their businesses; b) one of the Debtor's affiliates is a plaintiff in an ongoing litigation against the Lycoming Reciprocating Engine Division of AVCO Corporation initiated in April 2003 in the District Court of Grimes County, Texas and still currently on trial. The Court will convene a hearing at 1:30 p.m., on January 24, 2005, to consider the Debtors' extension motion. Headquartered in Birmingham, Alabama, Citation Corporation -- http://www.citation.net/-- designs, develops and manufactures cast, forged and machined components for the capital and durable goods industries, including the automotive and industrial markets. Citation uses aluminum, steel, gray iron, and ductile iron as the raw materials in its various manufacturing processes. The Debtors filed for protection on Sept. 18, 2004 (Bankr. N.D. Ala. Case No. 04-08130). Michael Leo Hall, Esq., and Rita H. Dixon, Esq., at Burr & Forman LLP, represent the Debtors. When the Company and its debtor-affiliates filed for protection from their creditors, they estimated more than $100 million in assets and debts. CITATION CORP: Miller Buckfire Approved as Financial Advisor ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Alabama gave Citation Corporation and its debtor-affiliates permission to employ Miller Buckfire Lewis Ying & Co., LLC as their financial advisor and investment banker. Miller Buckfire will: a) assist the Debtors in the analysis, design and formulation of their various options in connection with a restructuring of their businesses or a possible sale of assets; b) advise and assist the Debtors in the structuring and effectuation of the financial aspects of the transactions involving the restructuring of the Debtors' businesses and possible sale of assets; c) provide financial advise and assistance to the Debtors in developing and seeking approval of a plan of reorganization, including assisting the Debtors in negotiations with entities affected by the plan and participate in hearings before the Bankruptcy Court in relation to the plan; and d) provide financial advise and assistance in identifying and negotiating with potential acquirers in connection with any possible sale of assets, including the preparation of a memorandum to be used for solicitation of the potential acquirers. Dure Savini, a Principal at Miller Buckfire, is the lead professional performing services for the Debtors. Mr. Savini discloses that the Firm received a $150,000 prepetition retainer. Mr. Savini reports Miller Buckfire's terms of compensation: a) a monthly advisory fee of $150,000; b) a Restructuring Fee of $3,500,000 in the event a restructuring of the Debtors' business is consummated and the Fee is payable upon the closing of the restructuring; and c) a Transaction Fee for any sale of the Debtors' assets or businesses that is consummated and the amount of the Fee will be agreed upon by the Debtors, Miller Buckfire and the parties involved in the sale. Miller Buckfire assures the Court that it does not represent any interest adverse to the Debtors or their estates. Headquartered in Birmingham, Alabama, Citation Corporation -- http://www.citation.net/-- designs, develops and manufactures cast, forged and machined components for the capital and durable goods industries, including the automotive and industrial markets. Citation uses aluminum, steel, gray iron, and ductile iron as the raw materials in its various manufacturing processes. The Debtors filed for protection on Sept. 18, 2004 (Bankr. N.D. Ala. Case No. 04-08130). Michael Leo Hall, Esq., and Rita H. Dixon, Esq., at Burr & Forman LLP, represent the Debtors. When the Company and its debtor-affiliates filed for protection from their creditors, they estimated more than $100 million in assets and debts. CLARK GROUP: Charles W. Riske Approved as Liquidating Trustee ------------------------------------------------------------- The Honorable James J. Barta of the U.S. Bankruptcy Court for the Eastern District of Missouri confirmed the appointment of Charles W. Riske, Esq., as the Liquidating Trustee for the estate of the Clark Group, Inc., and its debtor-affiliates. Mr. Riske is also the counsel for the Debtors' Official Committee of Unsecured Creditors. Mr. Riske's appointment is pursuant to the terms of the Liquidating Trust Agreement under the Debtors' confirmed Joint Prepackaged Plan of Reorganization. The Court confirmed the Debtors' Joint Plan on November 12, 2004. Under the confirmed Joint Plan, Mr. Riske as the Liquidating Trustee is authorized to administer the Liquidation Trust formed under the Plan and distribute the proceeds of the Liquidation Trust. The Liquidation Trust consists of the remaining Net Proceeds of the Purchase Consideration, and proceeds from the sale of the Excluded Assets. Under the Plan, Mr. Riske will distribute the proceeds of the Liquidation Trust to Holders of Allowed Class 4A and Class 4B Claims, and, to a limited extent if certain contingencies are satisfied, to the Holders of the Allowed Victaulic Company Secured Claims, on each Quarterly Distribution Date. Mr. Riske assures the Court that he does not represent any interest adverse to the Debtors, their creditors and other parties in interest. Headquartered in St. Louis, Missouri, Clark Group, Inc. -- http://www.clarksprinkler.com/-- provides a comprehensive line of fire protection products and the highest quality service and expert knowledge on fire protection products. The Company and its debtor-affiliates filed for chapter 11 protection on October 1, 2004 (Bankr. E.D. Mo. Case No. 04-52536). Bonnie L. Clair, Esq., and David A. Sosne, Esq., at Summers, Compton, Wells & Hamburg, PC, represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed estimated assets and debts of $10 million to $50 million. CURATIVE HEALTH: Inks Settlement Pact with Calif. Health Services ----------------------------------------------------------------- Curative Health Services, Inc., (Nasdaq: CURE) and certain named individual plaintiffs have entered into a Settlement Agreement with the California Department of Health Services in connection with the suits filed against DHS challenging the reimbursement methodology for blood clotting factor implemented in June 2004. Under the terms of the Settlement Agreement, DHS has agreed to process, on a priority basis, all pending and future Medi-Cal, California Children's Services and Genetically Handicapped Persons Program claims submitted by the Company. In addition, DHS has agreed to expedite its efforts to implement electronic billing and payment for blood clotting factor claims. "We are very pleased with the conclusion of this litigation and the priority processing of our claims," said President and Chief Executive Officer, Paul F. McConnell. "The priority processing should result in a reduction of our California related days sales outstanding to approximately 60 days and a meaningful improvement in the Company's cash flow." About Curative Health Services Curative Health Services, Inc. -- http://www.curative.com/-- seeks to deliver high-quality care and clinical results for patients with serious or chronic medical conditions. The Specialty Infusion business, through its national footprint of Critical Care Systems' local pharmacy branches, provides products, related clinical services and disease management support to patients with chronic or severe conditions such as hemophilia and other bleeding disorders, chronic or severe infections, gastrointestinal illnesses that prohibit oral digestion and other severe conditions requiring nutritional support, immune system disorders, cancer and susceptibility to respiratory syncytial virus. The Wound Care Management business is a leader in the area of disease management specializing in chronic wound care management. The Wound Care Management business manages, on behalf of hospital clients, a nationwide network of Wound Care Center(R) programs that offer a comprehensive range of services for treatment of chronic wounds. In August 2004, Standard & Poor's Ratings Services revised its outlook on Curative Health to negative from stable. At the same time, W&P affirmed its 'B' corporate credit rating and its 'B-' senior unsecured debt rating on the company's $185 million of 10-3/4% senior unsecured notes due May 1, 2011. Moody's Investors Service rated those notes at B3 in on April 6, 2004. Bloomberg bond pricing data shows those notes currently trade in the high 80s. DEVLIEG BULLARD: Court Converts Case to Chapter 7 Proceeding ------------------------------------------------------------ The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware entered an order on December 29, 2004, approving a motion by DeVlieg Bullard II, Inc., to convert its Chapter 11 bankruptcy case to a Chapter 7 liquidation proceeding. The Court's order became effective on December 31, 2004. The Debtor filed a motion to convert its chapter 11 case to a chapter 7 proceeding on December 8, 2004. As reported in the Troubled Company Reporter on December 10, 2004, the Debtor gave the Court four reasons militating in favor of the conversion: a) The Debtor ceased all its business operations and is in the process of liquidating its remaining assets and winding down its business affairs and its debtor-in-possession financing facility will expire on December 31, 2004; b) The Debtor and its retained professionals have worked diligently to sell and liquidate the Debtor's assets in a manner that has maximized the value of its assets for the benefit of its estate and its creditors; c) The Debtor can't pay administrative and priority claims due to lack of funding and can't formulate or confirm a plan of reorganization or liquidation; and d) The Debtor has worked with its secured lenders to ensure that a proposed Chapter 7 Trustee will have funds available to administer a chapter 7 estate. Bankruptcy Court records do not indicate if the U.S. Trustee has yet to designate a Chapter 7 Trustee to oversee the liquidation. Headquartered in Machesney Park, Illinois, DeVlieg Bullard II, Inc. -- http://www.devliegbullard.com/-- provides a comprehensive portfolio of proprietary machine tools, aftermarket replacement parts, field service and premium workholding products. The Company filed for chapter 11 protection on July 21, 2004 (Bankr. D. Del. Case No. 04-12097). The Court converted the case to a chapter 7 liquidation proceeding on December 29, 2004. James E. Huggett, Esq., at Flaster Greenberg, represents the Company. When the Debtor filed for chapter 11 protection, it estimated debts and assets of $10 million to $50 million. DOMTAR INC: Restructures Northeastern Ontario Sawmill Operations ---------------------------------------------------------------- Domtar Inc. has entered into an agreement with Tembec Inc. that will allow them to restructure their Northeastern Ontario sawmill operations. As a result of this agreement, Domtar will permanently close its sawmill located in Chapleau on March 6, 2005. The boiler and kiln facilities associated with this operation will be sold to Tembec. This will allow Tembec to process the increased lumber output of its neighboring facility with fibre volumes historically associated with the Domtar Chapleau sawmill. Approximately 67 permanent jobs will be affected by this closure, although there will be increased employment opportunities in the Tembec mill due to the increased throughput. This decision will result in asset write-off and closure costs amounting to approximately $14 million. Domtar would also be adding a third shift at its Elk Lake facility to process wood that has become available due to the closure of the Tembec sawmill in Kirkland Lake, Ontario. The processing of this additional fibre will require 56 additional people beyond those currently working at the Elk Lake facility. The additional wood supply to the Elk Lake sawmill will not only improve its competitive position but also enhance job security for both sawmill employees and contractors involved in harvesting and hauling activities. It will also enable Domtar to leverage the $12 million in capital investments that it has made in Elk Lake in recent years, which include a new kiln, a new planer, saw line improvements and new de-barker and boilers. Domtar also indicated that it would invest in a finger-jointed plant with Tembec. This facility will be located on the site of the Tembec Kirkland Lake sawmill slated for closure. It is expected to create between 70 and 92 jobs, depending on the final plant configuration. "The Ontario lumber industry, including Domtar, is experiencing some very challenging times, notably high energy costs, a declining U.S. dollar, countervailing and anti-dumping duties on softwood lumber exported to the U.S., as well as a forecasted reduction of wood supply. Given these challenges, Domtar welcomes the support from the Ontario Minister of Natural Resources, David Ramsay, in this restructuring, which will enhance the economics and the competitive position of the Elk Lake facility," said Richard Garneau, Senior Vice-President, Forest Products, Domtar Inc. Meetings with employees and union leaders were also held at each of the sawmills impacted by this decision. Domtar notably informed employees at its Chapleau facility that, in keeping with its corporate values, the Company would do its utmost to help employees affected by today's announcement. In fact, Domtar will attempt to re-deploy affected personnel. Moreover, employees that lose their jobs will receive severance packages and will be given access to outplacement services. About the Company Based in Montreal, Quebec, Domtar Inc. is a major North American producer of fine papers, pulp, and lumber. More than 60% of the company's sales come from its paper segment, which churns out a variety of communication and specialty papers, including offset printing paper, photocopying paper, fine paper, and technical papers. * * * As reported in the Troubled Company Reporter on Oct. 28, 2004, Standard & Poor's Ratings Services revised its outlook on Domtar Inc. to negative from stable. At the same time, the 'BBB-' long- term corporate credit, the 'BBB-' senior unsecured debt, and the 'BB' global scale preferred stock ratings were affirmed. "The outlook revision reflects concerns that profitability and cash flow generation will be weaker-than-expected as a result of the appreciation of the Canadian dollar," said Standard & Poor's credit analyst Daniel Parker. DONNKENNY, INC.: CIT Credit Agreement in Default at Dec. 31 ----------------------------------------------------------- In a regulatory filing with the Securities and Exchange Commission this week, Donnkenny, Inc., disclosed that, as of December 31, 2004, the Company was not in compliance with the monthly financial covenants buried in its $65 million credit facility with CIT/Commercial Services. "The Company and its Lender are in discussions concerning the impact of this non-compliance and the relationship between the Company and its Lender," CEO Daniel H. Levy advises. All of Donnkenny's cash and liquidity requirements to operate its business are provided through the Credit Agreement. Accordingly, the Company is wholly dependant upon CIT to provide credit for the operation of its business. Absent CIT's continued support and adequate funding, Donnkenny says it will have inadequate working capital and funding to operate its business and will cease to operate as a going concern. Under those circumstances, Donnkenny says it will "seek judicial relief under the Bankruptcy Law." The Credit Facility On June 29, 1999, Donnkenny, Inc., and its operating subsidiaries entered into a Credit Agreement with CIT Group/Commercial Services. The Credit Agreement initially provided the Company with a $75 million facility comprised of a $72 million revolver with sub-limits up to $52 million for direct borrowings, $35 million for letters of credit, certain overadvances and a $3 million term loan which was paid in full as of June 30, 2002. The Credit Agreement provides for advances of (i) up to 90% of eligible accounts receivable plus (ii) up to 60% of eligible inventory plus (iii) up to 60% of the undrawn amount of all outstanding letters of credit plus (iv) allowable overadvances. Collateral for the Credit Agreement includes a first priority lien on all accounts receivable, machinery, equipment, trademarks, intangibles and inventory, a first mortgage on all real property and a pledge of the Company's stock interest in its operating subsidiaries, Donnkenny Apparel, Inc. and Beldoch Industries Corporation. The Credit Agreement contains numerous financial and operational covenants, including limitations on additional indebtedness, liens, dividends, stock repurchases and capital expenditures. In addition, the Company is required to maintain specified levels of tangible net worth and comply with a requirement for minimum earnings before depreciation, amortization, interest and taxes (EBITDA) and a minimum interest coverage ratio. Prior Defaults Effective June 30, 2003, the Company through an Amendment and Waiver Agreement dated August 11, 2003, extended the Credit Agreement to June 30, 2007. This Amendment provided the Company with a $65 million facility; the sub-limits remained the same as in the original Credit Agreement. The interest rate on the revolving credit borrowings is the current prime rate plus one and one-quarter percent (6.00% at September 30, 2004). As previously reported, on December 31, 2003 and June 30, 2004, the Company was not in compliance with the financial covenants contained in the Credit Agreement. In each instance, the Lender has waived these events of non-compliance. As of September 30, 2004, the Company was not in compliance with the quarterly financial covenants. Through an Amendment and Waiver Agreement dated October 1, 2004, the Lender agreed to waive the Company's non-compliance with its September 30, 2004 quarterly financial covenants. This Amendment and Waiver Agreement amended the financial covenants to provide that these covenants will be evaluated by the Lender monthly rather than quarterly beginning October 31, 2004. For the month ended October 31, 2004, the Company continued not to be in compliance with the Credit Agreement financial covenants. The Lender has waived this non- compliance. In November 2004, Donnkenny indicated it didn't expect to be in compliance with its financial covenants for the balance of 2004. The company's prediction came true. In November, the Company paid CIT a $25,000 fee to waive the then-existing defaults. Factoring Agreement The Company also has a factoring agreement with CIT Group/Commercial Services. The factoring agreement provides for a factoring commission equal to .35% of gross sales, plus certain customary charges. The factoring agreement renews annually in June each year unless either party to the agreement gives appropriate notice of non-renewal. About the Company Donnkenny designs, manufactures, imports and markets a broad line of moderate and better-priced women's and junior's sportswear and ladies coats. The Company's major labels include Pierre Cardin(R), Harve Benard(R), Donnkenny(R), Casey & Max(R), Victoria Jones(R) and Z. Cavaricci(R), as well as ladies coats under the Bill Blass(R), Bill Blass Signature(R), Blassport(R) and Nicole Miller(R) labels, and suits under the Nicole Miller(R) label. The Company's Sept. 30, 2004, balance sheet shows $45.6 million in assets and a $4.5 million shareholder deficit. Donnkenny is headquarted in Manhattan; owns two facilities in Virginia; and leases five additional facilities (one in Summerville, South Carolina, one in New York State, one in Burlington, New Jersey, one in Poland and one in Hong Kong). DPL CAPITAL: S&P Affirms B Ratings on Six Security Classes ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on three synthetic transactions related to DPL Capital Trust II and removed them from CreditWatch negative, where they were placed March 19, 2004. These rating actions reflect the affirmation of the rating assigned to DPL Capital Trust II's $300 million 8.125% trust preferred capital securities and its subsequent removal from CreditWatch. These DPL Capital Trust II-related transactions are swap-independent synthetic transactions that are weak-linked to the underlying collateral, DPL Capital Trust II's $300 million 8.125% trust preferred capital securities, which are guaranteed by DPL, Inc. A copy of the DPL, Inc.-related summary analysis, dated Dec. 16, 2004, can be found on RatingsDirect, Standard & Poor's Web-based credit analysis system. Ratings Affirmed and Removed from Creditwatch Negative Structured Asset Trust Units Repackagings (SATURNS) DLP Capital Security Backed Series 2002-3 $54.55 million callable units series 2002-3 Rating Class To From ----- -- ---- A units B B/Watch Neg B units B B/Watch Neg Structured Asset Trust Units Repackagings (SATURNS) DLP Capital Security Backed Series 2002-4 $42.5 million callable units series 2002-4 Rating Class To From ----- -- ---- A units B B/Watch Neg B units B B/Watch Neg Structured Asset Trust Units Repackagings (SATURNS) DLP Capital Security Backed Series 2002-7 $25 million callable units series 2002-7 Rating Class To From ----- -- ---- A units B B/Watch Neg B units B B/Watch Neg FALCON PRODUCTS: Expects Inventory Write-Down of $20 Million Up --------------------------------------------------------------- Falcon Products, Inc. (OTC: FCPR), a leading manufacturer of commercial furniture, expects to record a significant charge relating to the write-down of inventory. The amount of the inventory write-down, and the underlying causes, are still under review. Management currently estimates that the inventory write- down will exceed $20 million, including approximately $4 million relating to a previously closed facility. However, such estimate is preliminary and the actual amount of any inventory write-down may be materially different from the preliminary estimate. The Company had previously disclosed that certain deficiencies in internal controls existed related to accounting for inventory and that it intended to take certain actions to improve inventory controls. Such actions included performance of a physical inventory of finished goods and work in process on a quarterly basis, improved cycle counting procedures, increased corporate oversight of the controls and procedures over inventory and the hiring of experienced inventory personnel. During the course of Audit Committee investigation, it has been determined that these stated actions were either not taken or not completely and properly implemented. Previously, the Company hired a new chief financial officer in late October whose responsibilities include addressing these deficiencies. The impact, if any, of the expected inventory write-down on the results of the first three quarters of fiscal year 2004, and on periods prior to fiscal year 2004 has not yet been determined. Although the Company believes that it is likely that the inventory write-down will impact prior periods, no definitive conclusion has yet been reached as to whether prior periods are affected or whether the impact on prior periods will warrant a restatement of prior period financial statements. As soon as practicable following the completion of its investigation of the inventory write-down, the Company intends to announce its final conclusions and, if necessary, file the required amendments to its previous filings with the Securities and Exchange Commission. Previously, the Company's Audit Committee commenced an investigation, with the assistance of independent counsel, into certain accounting matters. The Audit Committee investigation is ongoing. On Dec. 20, 2004, the SEC informed the Company that it is conducting a non-public inquiry into certain accounting matters including inventory-related issues. The Company intends to fully cooperate with this inquiry. The Company also declared that it was not in compliance with certain provisions under its senior credit facilities, and has been advised by its lenders that, while the Company's request for waivers of such defaults are under review, the lenders are unwilling to provide such waivers at this time. Any restatement of the Company's financial statements for prior periods could result in additional events of default under the Company's various debt agreements. Although the defaults under the senior credit facilities are continuing, the Company continues to have access to borrowings under its revolving credit facility and its ability to serve its customers and pay its employees and vendors in the ordinary course has not been affected. On Dec. 15, 2004, the Company stated that it was utilizing the 30- day grace period relating to the payment of interest under its $100 million 11-3/8% Senior Subordinated Notes due 2009. Although a final determination has not yet been made as to whether the Company will be able to make the interest payment prior to the expiration of the grace period on January 14, 2005, it is currently likely that such payment will not be made. The non- payment of the interest would constitute an event of default under the Notes as well as under the Company's senior credit facilities. The Company has had preliminary discussions with a large holder of the Notes regarding a possible transaction that would convert the Notes to equity, however, the feasibility of such a transaction has not yet been determined. In addition, the Company, along with its financial advisor Imperial Capital LLC, is evaluating various strategic alternatives relating to a possible restructuring of the Company's outstanding indebtedness. About the Company Falcon Products, Inc. is the leader in the commercial furniture markets it serves, with well-known brands, the largest manufacturing base and the largest sales force. Falcon and its subsidiaries design, manufacture and market products for the hospitality and lodging, food service, office, healthcare and education segments of the commercial furniture market. Falcon, headquartered in St. Louis, Missouri, currently operates 8 manufacturing facilities throughout the world and has approximately 2,100 employees. * * * As previously reported in the Troubled Company Reporter on Dec 23, 2004, Moody's Investors Service downgraded the senior subordinated notes of Falcon Products, Inc., to C from Ca, and the issuer rating of Falcon Products, Inc., to C from Caa2, and downgraded the senior implied rating to Ca from Caa1. The rating outlook remains negative. FRANKLIN CAPITAL: Asks Stockholders to Okay 2-for-1 Stock Split --------------------------------------------------------------- Franklin Capital Corporation's (AMEX: FKL) Board of Directors has unanimously determined to seek stockholder approval at its 2004 annual meeting of stockholders to effect a two-for-one split of Franklin Capital's common stock. The stock split would increase the number of shares of Franklin Capital's common stock outstanding from approximately 1.5 million to approximately 3.0 million shares of common stock. "The increase in the number of outstanding shares of Franklin Capital's common stock and the lower market price per share expected to result from the stock split is designed to broaden the market for, and improve the marketability and liquidity of, the common stock and ultimately increase the number of stockholders of Franklin Capital," said Milton "Todd" Ault, III, the Chairman and Chief Executive Officer of Franklin Capital. "Franklin Capital believes that the stock split is another important step in the execution of the strategic restructuring plan that it announced in June 2004 and will make its common stock more accessible to a broader range of investors." Franklin Capital will file a proxy statement in connection with its 2004 annual meeting of stockholders. Franklin Capital's stockholders are advised to read the proxy statement relating to the annual meeting of stockholders of Franklin Capital when it becomes available, as it will contain important information. Stockholders will be able to obtain this proxy statement, any amendments or supplements thereto, and any other documents filed by Franklin Capital with the Securities and Exchange Commission for free at the Internet website maintained by the Securities and Exchange Commission at http://www.sec.gov/ Also, Franklin Capital will mail the proxy statement to each stockholder of record on the record date to be established for 2004 annual meeting of stockholders of Franklin Capital. Copies of the proxy statement and any amendments and supplements thereto will also be available for free by writing to: Corporate Secretary Franklin Capital Corporation 100 Wilshire Boulevard Suite 1500 Santa Monica, Calif. 90401 Franklin Capital, its directors and its executive officers may be deemed to be participants in the solicitation of proxies in connection with the 2004 annual meeting of stockholders. Information regarding these participants is contained in a filing under Rule 14a-12 of the Securities and Exchange Act of 1934 filed by Franklin Capital Corporation with the SEC on January 3, 2005. About the Company Franklin Capital Corporation originates and services direct and indirect loans for itself and its sister company Franklin Templeton Bank and Trust, F.S.B. Eight different loan programs are offered, allowing Franklin Capital Corporation to serve the needs of prime, non-prime and sub-prime customers throughout the United States. * * * As reported in the Troubled Company Reporter on Aug. 24, 2004, Franklin Capital Corporation's former independent accountants, Ernst & Young LLP, indicated in its reports dated March 5, 2004 and March 7, 2003 on Franklin's financial statements, substantial doubt about the company's ability to continue as a going concern. FRIEDMAN'S INC: In Talks with Lenders to Amend Financial Covenants ------------------------------------------------------------------ Friedman's Inc. (OTC non-BB: FRDM.PK), disclosed that delayed receipts of inventory shipments during the 2004 holiday season and the implementation of more prudent credit practices had a negative impact on its holiday season sales and contributed to the Company not meeting the December 2004 minimum sales covenants in its credit facility. Friedman's is currently in discussions with its senior lenders regarding the amendment of its financial covenants under the credit facility and regarding the terms of other modifications to the credit facility. There can be no assurances of obtaining the amendment. The Company has reached agreement with substantially all of the participating vendors to amend the terms of its secured trade credit program initiated on Sept. 8, 2004. The amendment modifies the conditions vendors must meet for continued qualification under the program, including provisions relating to future shipments by participating vendors to support the Company's Valentine's Day sales plan. The amendment also revised the schedule of amortization payments to vendors under the program. Mr. Sam Cusano, Friedman's CEO, said: "Delays in shipments and the implementation of more prudent credit practices have clearly had a negative effect on our holiday season, making it necessary for us to seek amendments to our secured trade credit program and to our credit facility. Friedman's appreciates the ongoing support of both our lenders and vendors as the Company works through the challenges and changes necessary to restore and rebuild Friedman's." Additional details regarding the amendment to the trade credit program and any amendment to the credit facility will be released in Current Reports on Form 8-K to be filed with the SEC. About Friedman's Founded in 1920, Friedman's Inc. -- http://www.friedmans.com/-- is a leading specialty retailer based in Savannah, Georgia. The Company is the leading operator of fine jewelry stores located in power strip centers and regional malls. * * * As reported in the Troubled Company Reporter on Nov. 4, 2004, Friedman's Inc. said it anticipated breaching the financial covenants contained in its amended and restated credit facility. In particular, Friedman's expected to fail to meet cumulative EBITDA requirements and a minimum ratio of Accounts Payable to Inventory. Friedman's senior secured credit facility, entered into in September 2004, consists of a senior revolving loan of up to $67.5 million (maturing in 2006) and a $67.5 million junior term loan (maturing in 2007). Friedman's issued some warrants to Farallon Capital Management, L.L.C., in connection with that refinancing transaction. Friedman's also entered into a secured trade credit program providing security to vendors. Part of the deal allows Friedman's to stretch payment of invoices past due in July 2004 through 2005. The company's most recently published balance sheet -- dated June 28, 2003 -- shows $496 million in assets and $190 million in liabilities. The Company explains that its year-end closing process was delayed because of an investigation by the Department of Justice, a related informal inquiry by the Securities and Exchange Commission, and its Audit Committee's investigation into allegations asserted in a August 13, 2003, lawsuit filed by Capital Factors Inc., a former factor of Cosmopolitan Gem Corporation, a former vendor of Friedman's, as well as other matters. Ernst & Young has been working on a restatement of the company's financials. The company's signaled that a 17% or greater increase to allowances for accounts receivable can be expected. GLEN CARTER EXCAVATING: Voluntary Chapter 11 Case Summary --------------------------------------------------------- Debtor: Glen Carter Excavating Company P.O. Box 527 Brookline, Missouri 65619 Bankruptcy Case No.: 04-63320 Type of Business: The Debtor is an excavating contractor. Chapter 11 Petition Date: December 27, 2004 Court: Western District of Missouri (Springfield) Judge: Arthur B. Federman Debtor's Counsel: M. Brent Hendrix, Esq. 1615 South Ingram Mill, Building F Springfield, MO 65804 Tel: 417-889-8820 Fax: 417-889-3493 Total Assets: $500,000 to $1 Million Total Debts: $1 Million to $10 Million The Debtor did not file a list of its 20-largest creditors. HAPPY KIDS INC: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------- Lead Debtor: Happy Kids Inc. 100 West 33rd Street, Suite 1100 New York, New York 10001 Bankruptcy Case No.: 05-10016 Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Happy Kids Jeanswear Inc. 05-10017 Hawk Industries, Inc. 05-10018 J&B 18 Corporation 05-10019 Type of Business: The Debtors are leading designers and marketers of licensed, branded and private label garments in the children's apparel industry. The Debtors' current portfolio of licenses includes Izod (TM), Calvin Klein (TM) and And1 (TM). Chapter 11 Petition Date: January 3, 2005 Court: Southern District of New York (Manhattan) Judge: Cornelius Blackshear Debtor's Counsel: Sheldon Ira Hirshon, Esq. Scott K. Rutsky, Esq. Sanjay Thapar, Esq. Proskauer Rose LLP 1585 Broadway New York, New York 10036 Tel: (212) 969-3000 Fax: (212) 969-2900 Turnaround and Management Consultants: Carl Marks Consulting Group LLC Claims and Noticing Agent: Donlin, Recano & Company, Inc. Consolidated Financial Condition as of December 24, 2004: Total Assets: $54,719,000 Total Debts: $82,108,000 Consolidated list of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ The CIT Group/Commercial Deficiency Claim Unknown Services, Inc. under Financing 1211 Avenue of the Americas Agreement New York, New York 10036 Attn: John Daly Grover Reinle Tel: (212) 382-6839 Fax: (212) 382-6840 Deutsche Bank Trust Company Deficiency Claim $24,000,000 Americas on Senior Term 60 Wall Street Loan Note New York, New York 10005 Attn: Mark Cohen Tel: (212) 250-6038 Fax: (212) 797-5695 J.H. Whitney Mezzanine Unsecured Note $4,128,334 Fund, L.P. 177 Broad Street Stamford, Connecticut 06901 Attn: Daniel O'Brien Tel: (203) 973-1422 Deutsche Bank Trust Company Unsecured Note $2,314,758 Americas 60 Wall Street New York, New York 10005 Attn: Mark Cohen Tel: (212) 250-2500 MGA Entertainment Royalty Payments $1,456,044 16730 Schoenborn Street North Hills, California 91343 Attn: Issac Larian Donna Cunningham AND 1 Royalty Payments $1,189,250 919 Conestoga Road Building 1, Suite 100 Rosemont, Pennsylvania 19010 Mecca USA Royalty Payments $443,650 c/o International News, Inc. 19226 70th Avenue Kent, Washington 98032 4Kids Entertainment Royalty Payments $329,924 1414 Avenue of the Americas New York, New York 10019 Attn: Joseph P. Garrity 1275/1291 Broadway LLC Lease $262,519 100 West 33rd Street New York, New York 10001 Sin Hua Knitting Factory Ltd. Supplier $208,483 Head to Toe Supplier $192,594 Trasol Trading Corporation Foreign Buying $192,108 Agent Sunjuly Company Ltd. Foreign Buying $175,814 Agent Shirwell International Ltd. Supplier $168,446 Bureau of Customs and Customs Duties $155,000 Border Protection Djem Jeans Supplier $124,941 Hockey Sport SA DE CV Supplier $121,273 Warner Brothers Consumer Royalty $118,610 Products, Inc. Disney Enterprises Inc. Royalty $112,558 Price Transfer Inc. Public Warehouse $108,955 Stilz Inc. Supplier $96,978 Rajby Industries Supplier $87,798 Textiles Thor SAC Supplier $82,959 On Target Staffing/Capital Labor at Warehouse $75,000 Temp. RCS Logistics Freight Forwarder $74,000 Regal Packaging Warehouse Supplies $66,987 Grant Thornton LLP Accounting $66,868 Jacol International Supplier $59,009 Company Limited D&A Comercio Exterior Supplier $57,985 Bravado International Supplier $56,786 Group Inc. INTEGRATED HEALTH: Briarwood Wants Stock Purchase Deal Completed ---------------------------------------------------------------- On January 28, 2003, Integrated Health Services, Inc., and Abe Briarwood Corporation entered into a Stock Purchase Agreement, pursuant to which Abe Briarwood was to essentially acquire all of IHS' assets, with certain exemptions. Frederick B. Rosner, Esq., at Jaspan Schlesinger Hoffman, LLP, in Wilmington, Delaware, tells the United States Bankruptcy Court for the District of Delaware that Briarwood's obligations under the SPA were conditioned on IHS' satisfaction of various conditions under Article VI of the SPA, including that: (a) IHS' representations and warranties contained in the SPA will be true and correct in all material respects; (b) the IHS Debtors will have performed or complied with each of the covenants and agreements set forth in the SPA; and (c) IHS will deliver to Briarwood a certificate certifying that the conditions set forth in Sections 6.1 and 6.2 of the SPA have been satisfied. On August 29, 2003, IHS provided Briarwood with the Certificate. In reliance on IHS' Certificate and the representations it contained, Briarwood closed on the SPA. Unknown to Briarwood at that time, IHS failed to comply with certain of the representations, warranties, covenants or agreements set forth in the SPA. Consequently, Briarwood diligently attempted to informally resolve its claims against IHS Liquidating, LLC, under the SPA. However, Briarwood and IHS Liquidating were not able to informally resolve the claims. Trust Fund Taxes The Internal Revenue Code requires employers to withhold federal income and social security taxes from their employees' wages. The withheld taxes are deemed to be a special fund held in trust for the benefit and exclusive use of the Government, and are commonly called "trust fund taxes." However, the IHS Debtors failed to remit to the appropriate "Governmental Authorities" substantial sums in "trust fund taxes," which were withheld from employee payroll checks on or before the August 29, 2003, Closing, including "trust fund taxes" from employee payroll checks funded on or before the Closing Date. As a result, Briarwood had to pay the IHS Debtors' substantial employee "trust fund tax" obligations out of its own funds. Briarwood is still trying to determine the exact amount owed by IHS Liquidating for the "trust fund taxes." It is estimated that the amount will be substantial, Mr. Rosner says. Georgia Medicaid Payments On November 4, 2003, Kim Hinton, the Director of Financial Services of the Georgia Department of Community Health, testified during an evidentiary hearing before the Court that the Georgia Medicaid Authorities provided the Debtors with over $9,000,000 in "prospective" Medicaid payments from April 2003 through August 2003. Since that time, the "prospective" payments made by the Georgia Medicaid Authorities to the IHS Debtors have been recouped from Briarwood. Mr. Rosner relates that the Georgia Medicaid Authorities characterized the excess Medicaid payments that were provided to the IHS Debtors as "prospective" payments as they were clearly intended for future medical services to be rendered. Consequently, these "prospective" Medicaid payments were clearly "prepaid items." Although the IHS Debtors were permitted under the Stock Purchase Agreement to remove "Cash" on hand at the Closing, they were not permitted to remove either "prepaid items" or "deposits." Thus, under the terms of the Stock Purchase Agreement, there should have been "Cash" left of at least $9,100,000 to cover the "prepaid items." Instead, the IHS Debtors removed all the "Cash," causing the $9,100,000 owed to the Georgia Medicaid Authorities to be ultimately recouped from Briarwood. "The [IHS] Debtors certainly knew they were getting double (2x) payments which were not for current billing and services," Mr. Rosner says. "The double (2x) payments received by the [IHS] Debtors should have either been returned to the Georgia Medicaid Authorities or escrowed for prospective services to be rendered if authorized to do so." "[T]he [IHS] Debtors should have treated such funds in the nature of 'deposits' and should have set aside 'Cash' in the amount of at least $9.1 million to cover these deposits," Mr. Rosner contends. Post-Closing Receivables Briarwood's obligations under the Stock Purchase Agreement were conditioned on the IHS Debtors' compliance with a "Medicare Settlement." Pursuant to the Medicare Settlement, the IHS Debtors were required to execute a comprehensive settlement agreement with certain federal agencies, including the United States Department of Justice, the Centers for Medicare and Medicaid Services and the Office of the Inspector General, "providing for a full settlement and compromise of all asserted claims" against the IHS Debtors arising under certain federally funded governmental health care programs. The United States had asserted certain claims against the IHS Debtors for civil or administrative monetary claims: * under the False Claims Act, the Program Fraud Civil Remedies Act, and the common law doctrines of payment by mistake, unjust enrichment, breach of contract, or fraud; * for certain civil monetary penalties imposed pursuant to the Civil Monetary Penalties Law; and * for permissive exclusion from Medicare, Medicaid, and other Federal health programs. On August 28, 2003, the IHS Debtors, as required under the Stock Purchase Agreement, entered into a settlement agreement with the United States, which required the IHS Debtors to pay the Department of Justice $19,100,000 in connection with the False Claims Act Claims. The Medicare Settlement carries out the intent of the Stock Purchase Agreement that the asserted claims, including the United States False Claims Act Claims, would be paid solely by the IHS Debtors and not by Briarwood, being a non-party to the Medicare Settlement. Hence, the IHS Debtors were solely responsible for the False Claims Act Payment. Nevertheless, IHS Liquidating improperly used $17,100,000 of post- closing collections of Briarwood's receivables to pay the asserted claims referred under the Stock Purchase Agreement, including the False Claims Act Claims, despite the fact that Briarwood acquired all of the IHS Debtors' assets, except for certain designated "Excluded Assets," under the Stock Purchase Agreement. Moreover, IHS did not designate a $17,100,000 receivable from the Centers for Medicare and Medicaid Services as one of the "Excluded Assets" under the Stock Purchase Agreement. This $17,100,000 receivable was one of the assets acquired by Briarwood under the terms of the Agreement. Trade Vendor Payments The Stock Purchase Agreement defined "Ordinary Course of Business" to mean "the ordinary course of business consistent with past custom and practice" of the IHS Debtors, "including with respect to quantity and frequency." According to Mr. Rosner, the IHS Debtors did not pay their trade vendors $9,000,000 in the "Ordinary Course of Business," as required under the Stock Purchase Agreement. As a result, Briarwood was forced to pay the trade vendor obligations, which should have been paid on or before the Closing. IOS Settlement Payment In January 2002, the IHS Debtors brought an avoidance action against IOS Capital, Inc., seeking to recover $251,814 in payments made to IOS on certain leases as either preferences or fraudulent conveyances. On August 27, 2003, the IHS Debtors, without Briarwood's knowledge, entered into a settlement stipulation with IOS, which provided for, among other things, payment to IOS of an allowed administrative claim for $350,000 and the dismissal of the IOS Preference Action, despite prohibition under the Stock Purchase Agreement. Briarwood opposed the IOS Settlement essentially on the ground that any financial liability incurred under it, including payment of the $350,000 administrative claim, should belong to the HIS Debtors and not to Briarwood. Briarwood further argued that the IOS Settlement was an "Excluded Liability" under the Stock Purchase Agreement, which was not acquired by Briarwood and remains the responsibility of either the IHS Debtors of IHS Liquidating. Nevertheless, to resolve their dispute without a protracted litigation, Briarwood paid IOS the $350,000 administrative claim, without prejudice to its right to assert a claim over against IHS Liquidating for all amounts paid by Briarwood under the IOS Settlement. Mr. Rosner explains that under the terms of the Stock Purchase Agreement, Briarwood is entitled to reimbursement of that amount from IHS Liquidating, since any monies owed to IOS was an "Excluded Liability," as it essentially related to and resolved an "Excluded Asset." Therefore, IHS Liquidating should be compelled to comply with the terms of the Stock Purchase Agreement, and reimburse Briarwood the $350,000 it paid to IOS for its Excluded Liability. According to Mr. Rosner, IHS Liquidating should reimburse Briarwood, since the Stock Purchase Agreement precluded the IHS Debtors from: -- entering into a settlement and incurring debt to IOS in excess of $250,000 without Briarwood's written approval during the prohibited period from January 28, 2003, to the Closing Date of the Stock Purchase Agreement; and -- failing to make its monthly payments on the IOS Leases in the ordinary course of business. "If [IHS Liquidating] does not reimburse Briarwood, it will have been unjustly enriched in the amount of $350,000," Mr. Rosner says. Briarwood Should be Reimbursed Accordingly, Briarwood asks the Court to compel IHS Liquidating to comply with the terms of the Stock Purchase Agreement. Mr. Rosner asserts that Briarwood's request should be granted on the grounds that IHS Liquidating: (1) should reimburse Briarwood's substantial payments to Governmental Authorities for the IHS Debtors' "trust fund taxes" due on their employee's wages, since it was the IHS Debtors' responsibility to make the payments under both law and the Stock Purchase Agreement; (2) should reimburse Briarwood for $9,100,000 in recoupment payments to the Georgia Medicaid authorities based on the IHS Debtors' receipt of "prospective" or excessive Medicaid payments in that amount, as a result of the IHS Debtors' failure in segregating "cash" for the "Pre-paid Items" and "Deposits," as required under the Stock Purchase Agreement; (3) improperly collected $17,100,000 in Post-Closing receivables due to Briarwood, since they were not "Excluded Assets" under the terms of the Stock Purchase Agreement; (4) should reimburse Briarwood's $9,000,000 in payments to the IHS Debtors' trade vendors, since the IHS Debtors failed to make the payments in the "ordinary course" of their "business," as required under the Stock Purchase Agreement and as they represented and certified in their certificate at Closing; and (5) should reimburse Briarwood's $350,000 payment to IOS, since, among other things, it was an "Excluded Liability" under the Stock Purchase Agreement, as it was a settlement payment relating to the IOS Preference Action, which was an "Excluded Asset" under the Stock Purchase Agreement. Integrated Health Services, Inc. -- http://www.ihs-inc.com/-- operated local and regional networks that provide post-acute care from 1,500 locations in 47 states. The Company and its 437 debtor-affiliates filed for chapter 11 protection on February 2, 2000 (Bankr. Del. Case No. 00-00389). Rotech Medical Corporation and its direct and indirect debtor-subsidiaries broke away from IHS and emerged under their own plan of reorganization on March 26, 2002. Abe Briarwood Corp. bought substantially all of IHS' assets in 2003. The Court confirmed IHS' Chapter 11 Plan on May 12, 2003, and that plan took effect September 9, 2003. Michael J. Crames, Esq., Arthur Steinberg, Esq., and Mark D. Rosenberg, Esq., at Kaye, Scholer, Fierman, Hays & Handler, LLP, represent the IHS Debtors. On September 30, 1999, the Debtors listed $3,595,614,000 in consolidated assets and $4,123,876,000 in consolidated debts. (Integrated Health Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service, Inc., 215/945-7000) INTERSTATE GENERAL: Continuing Losses Prompt PCXE to Halt Trading ----------------------------------------------------------------- Interstate General Company L.P. (Pacific: IGC) had received notice from the Pacific Stock Exchange that IGC is not in compliance with the requirements for continued listing of the Company's Class A Units on the PCXE. The determination by the PCXE was based upon the Company's disclosure in its December 15 and December 22, 2004, news releases of having losses from continuing operations and/or net losses in each of its five most recent fiscal years (which violates PCXE Rule 5.5 (1)(3)). Trading in the Company's Units was suspended by the PCXE effective before the opening of business on Dec. 29, 2004. The PCXE will conduct a formal review of the Company's listing status on January 20, 2005 in order to determine whether continued listing is appropriate. The PCXE has requested that the Company submit in writing any relevant information for its consideration at such hearing. As noted in the Company's previous press releases relating to its delisting by the American Stock Exchange ("AMEX"), IGC does not have available resources to bring the Company into compliance with the PCXE's listing qualification. Accordingly, the Company expects the PCXE will decide to delist its Units at the close of business on January 20, 2005. IGC does not intend to appeal the expected decision to delist the Company's Units. IGC expects that the PCXE will submit an application to the Securities and Exchange Commission to strike the Company's Units from listing and registration on the PCXE within five business days after January 20, 2005. As stated in the Company's press release dated December 14, 2004, when it announced that it had received notice from the AMEX of non-compliance with its listing requirements, the Company's management and board of directors are considering steps to be taken to protect the Unit holders' equity in the Company following the delisting of its Units. About the Company Interstate General Company L.P.'s principal activities are to develop and sell residential and commercial land and to find innovative solutions for disposal of municipal waste. The real estate activities include community development, development and ownership of rental apartments and real estate management services. The Group also pursues waste disposal contracts with municipalities and government entities as well as industrial and commercial waste generators. Going Concern Doubt The Company received a "going concern" qualification in the opinion of its independent auditors for its 2002 financial statements. The Company has received a similar qualification in its independent auditor's opinion for its 2003 financial statements. The Company expects to incur further losses in 2004 and to be severely constrained financially unless and until an equity investor is obtained for its Brandywine project and development equity is obtained for its Puerto Rico waste project. In its Form 10-QSB for the quarterly period ended Sept. 30, 2004, filed with the Securities and Exchange Commission, Interstate General posts a $1,504,000 net loss in Sept. 2004 compared to a $696,000 net loss from the previous year. INT'L. FABRICATORS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: International Fabricators & Erectors, Inc. aka American Industrial Machining, LLC 1710 Southern Road Kansas City, Missouri 64120 Bankruptcy Case No.: 04-47993 Type of Business: The Debtor manufactures fabricated metal products. Chapter 11 Petition Date: December 29, 2004 Court: Western District of Missouri (Kansas City) Judge: Arthur B. Federman Debtor's Counsel: Joanne B. Stutz, Esq. Evans & Mullinix, P.A., Suite 200 7225 Renner Road Shawnee, Kansas 66217 Tel: 913-962-8700 Fax: 913-962-8701 Total Assets: $6,152,005 Total Debts: $6,334,382 Debtor's 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Carpenters Fringe Benefit Union Benefits $774,141 Fund 3100 Boroadway Kansas City, MO 64111 Internal Revenue Service 941 Withholding Taxes $443,077 Ogden, UT 84201 Missouri Dept. of Revenue Withholding Taxes - $151,573 P.O. Box 3375 Tax lien may have Jefferson City, MO 65105 been filed but insufficient equity to secure debt Sedalia Steel Supply, Inc. Trade Payable $50,006 Roger Buckman Loan $45,448 Manager of Finance Property Taxes/Real $43,337 and Personal Central Conveyor Company Trade Payable $39,500 CBIZ Accounting Professional $31,363 Services Kirk Welding Supply, Inc. Trade Payable $24,104 City of Kansas City, Withholding $22,891 Missouri Revenue Division earnings tax Geosystems Engineering Trade Payable $22,330 Abresist Corporation Trade payable &