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/raid1/www/Hosts/bankrupt/TCR_Public/971028.MBX T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, October 28, 1997 Vol. 1, No. 46 Headlines DECORATIVE HOME: Disclosure Statement Contents FRETTER: Sale of Property in Libertyville, Illinois GUY A. ATKINSON: Deadline for Filing Proofs of Claim KIA GROUP: Kia Motors Workers Rally Again LOUISE’S TRATTORIA: Meeting of Creditors STEINBERG’S: Liquidators to Conduct Sale of Inventory UNITED HEALTHCARE: Sales of Headquarters/Property Approved WESTERN PACIFIC: Case Details Meetings, Conferences and Seminars ----- DECORATIVE HOME: Disclosure Statement Contents ----------------------------------------------- Decorative Home Accents, Inc., has filed a disclosure statement to accompany its joint plan of reorganization dated September 29, 1997, with the U.S. Bankruptcy Court for the Southern District of New York. The company states reorganization and continuing in business as a viable going concern will afford creditors, shareholders, employees and other parties in interest a substantially greater recovery than if its assets were liquidated or another alternative was pursued. The disclosure statement and plan of reorganization contain the following provisions. The effective date shall be on the second business day after the confirmation order has become a final order, the new common stock has been registered, sufficient net cash proceeds have been received from rights and oversubscription options to allow payment in full in cash of all amounts due under the prepetition secured term loan agreement, an agreement for a secured working capital facility is reached, the proceeds of not less than the aggregate outstanding amount under the postpetition term loan and up to $7.5 million under a secured term loan facility is received, the DHA charter has been filed in each state where the entity is incorporated, all members of boards of directors of the debtors have resigned, the aggregate prepetition claims do not exceed $20 million, and the debtors have approval for any modifications to the plan. On the effective date, senior notes, existing common stock, redeemable preferred stock, and certificates of designations, options, warrants, calls, subscriptions and similar rights will be canceled. Classification of Claims Class Amount Status/ (Approx.) Treatment ----- --------- --------- 1A $2.159 million Unimpaired/ Secured Claims Payment in Macpherson Meistergram full, cash 1B Other Secured Claims N/A Unimpaired/ Receive collateral on secured claim, default exceptions 2 Unsecured Priority Claims N/A Unimpaired/ Payment in full, cash 3 General Unsecured Claims N/A Unimpaired/ If unpaid on effective date, full cash payment or agreed treatment 4 Senior Note Claims $129.835 million Impaired/ Pro rata distribution 9.25 million shares common stock, 62.5% of rights, and over- subscription options 5A Redeemable Preferred N/A Impaired/ Stock Interests Pro rata distribution 790,000 shares new common stock, 37.5% of rights, over- subscription options, and 100 %R of series A warrants 5B Existing Common Stock N/A Impaired/ Interests Pro rata distribution of 100% series B warrants 5C Equity Interests in TRB N/A Unimpaired/ Keep rights 5D Equity Interests in HII N/A Unimpaired/ Keep rights 5E Equity Interests in N/A Unimpaired/ HII-New York Keep rights 5F Equity Interests in DHAH N/A Unimpaired Keep rights 5G Equity Interests in Briggs N/A Unimpaired/ Keep rights 5H Equity Interests in N/A Unimpaired/ Draymore Keep rights 5I Equity Interest Based on N/A Impaired/ Options, Warrants, etc. No distribution Unclassified Claims Administrative claims will be paid in full in cash by the reorganized debtors by the later of the effective date or the date of a final order allowing these claims. Priority tax claims will be treated as follows: holders of claims not paid prior to the effective date will receive deferred cash payments over six years or less, plus interest form the effective date. Intercompany and affiliate claims will not be considered allowed claims under the plan and no distributions will be made on these claims except to such entities solely on account of any senior notes, redeemable preferred stock, or existing common stock. Joint liability duplicate claims against multiple debtors, including guaranteed claims, will only be allowed one claim; duplicate claims against any other debtor based on that other debtor’s joint liability will be disallowed FRETTER: Sale of Property in Libertyville, Illinois ----------------------------------------------------- Fretter, Inc., seeks permission to sell a former store location in Libertyville, Illinois, free and clear to Roadmaster Investment Company for $1.6 million in cash, with a $50,000 deposit. Competitive bids must be at least $30,000 higher than the purchase price. Roadmaster will receive a breakup fee of $15,000 if Fretter accepts a higher and better offer. There will be a hearing on the sale motion before judge Pat Morgenstern-Clarren in the Northern District of Ohio, Eastern Division, on November 13, 1997. GUY A. ATKINSON: Deadline for Filing Proofs of Claim --------------------------------------------------- Guy A. Atkinson company of California has had its deadline for filing proofs of claims set for December 15, 1997, by the U.S. Bankruptcy Court, Northern District of California. KIA GROUP: Kia Motors Workers Rally Again ------------------------------------------ Workers at Kia Motors have been on strike since Wednesday when the government announced that it planned to put their firm in receivership, according to Associated Press. Kia has piled up $10 billion in debts. "We oppose court receivership!" about 3,000 workers chanted during a several block march that ended peacefully in central Seoul. Workers fear a takeover by Samsung, the nation's largest conglomerate, which reportedly is interested in Kia. Demonstrators claim the government and creditor banks have tried to force Kia's leadership to resign under court receivership and then sell the company to a third party, perhaps Samsung, that may lay off workers and curtail union activities. Some other unions representing auto workers have threatened to begin a sympathy strike yesterday to show support for Kia workers. LOUISE’S TRATTORIA: Meeting of Creditors ------------------------------------------ A creditors meeting for Louise’s Trattoria, Inc., which filed Chapter 11 on September 9, 1997, in the Central District of California, has been set for November 20 1997, in Los Angeles. STEINBERG’S: Liquidators to Conduct Sale of Inventory ----------------------------------------------------- Steinberg’s, Inc., has abandoned the idea of conducting internal going-out-of-business sales. Instead, at an expedited hearing on October 10, judge J. Vincent Aug. Jr., of U.S. Bankruptcy Court, Southern District of Ohio, Western division, approved Steinberg’s sale of store and warehouse inventory and service merchandise to Asset Recovery Systems, Inc., (ARS) and Petters Warehouse Direct, Inc., (PWD). ARS will purchase inventory from Morristown and two Knoxville, Tennessee, stores and the Richmond, Somerset, and two Lexington, Kentucky, stores for a price 65 cents on the dollar of Steinberg’s original wholesale invoice cost. ARS will put down a deposit of $100,000 toward the purchase of the inventory, with the balance to be paid after a physical inventory is conducted. ARS will sell the inventory beginning in October 1997, through January 31, 1998, from the Knoxville, Lexington, and Richmond stores and will be responsible for all expenses including rent, insurance, utilities, employee compensation, and taxes. Inventory from stores in Columbus, Indiana; Alexandria and Florence, Kentucky; Hamilton, Wilmington, Middletown, and six stores in Cincinnati, Ohio; and the Sunnybrook store and warehouse will be sold to PWD for 65 cents on the dollar of Steinberg’s original invoice wholesale cost or 55.5 cents on the dollar, depending on the store location. PWD will also help find a purchaser for service merchandise at 20 cents or more on the dollar. PWD can use the store locations on a month-to-month basis through November 1997 to sell the inventory and will be responsible for all expenses. The deposit toward the purchase price is set at $100,000, with an additional $900,000 to be transferred to Steinberg’s once an inventory has been taken. UNITED HEALTHCARE: Sales of Headquarters/Property Approved ----------------------------------------------------------- U.S. Bankruptcy Court for the District of New Jersey has approved the sale of United Healthcare System, Inc.’s building in Newark to Rasik Nagrecha for $390,000 and the sale of personal property to National Content Liquidators, Inc., for $1.75 million. WESTERN PACIFIC: Case Details ----------------------------- Western Pacific Airlines, Inc., has released an order regarding management of its Chapter 11 case filed with judge Sidney B. Brooks of the U.S. Bankruptcy Court for the District of Colorado. WestPac has retained Christian C. Onsager and Michael J. Pankow of Faegre & Benson, Denver, Colorado, as counsel. Counsel for the Official Creditors’ Committee are James T. Markus, Howard R. Tallman, and John F. Young of Block Markus Williams, in Denver, and the committee chair is BF Goodrich Aerospace (Dennis M. O’Dea), New York, New York. The attorney designated by the U.S. Trustee’s Office, Denver, is Leo Weiss. A meeting of creditors is set for November 5, 1997, in Denver. Meetings, Conferences and Seminars M E E T I N G S , C O N F E R E N C E S & S E M I N A R S Meetings, Conferences and Seminars ---------------------------------- October 30-31, 1997 TEXAS TECH UNIVERSITY SCHOOL OF LAW, ASSOCIATION OF CHAPTER 12 TRUSTEES, and WEST TEXAS BANKRUPTCY BAR ASSOCIATION 13th Annual Farm, Ranch and Agri-Business Bankruptcy Institute Holiday Inn--Lubbock Plaza, Lubbock, Texas Contact 1-806-794-1215 November 3, 1997 NEW YORK STATE BAR ASSOCIATION "Serial Chapter 11 Filings: Chapter '22' Cases" Southgate Tower Hotel, New York, New York Contact: 1-518-463-3724 November 13-14, 1997 MID-SOUTH COMMERCIAL LAW INSTITUTE "The Changing Landscape for the Commercial Law Practitioner" Hermitage Hotel, Nashville, Tennessee Contact 1-615-259-1450 November 17-18, 1997 BANKING LAW INSTITUTE, BANK LENDING INSTITUTE, and EXECUTIVE ENTERPRISES Commercial Loan Workouts Chicago, Illinois Contact 1-800-831-8333 November 19, 1997 NASSAU COUNTY BAR ASSOCIATION and SUFFOLK COUNTY BAR ASSOCIATION, jointly with SUFFOLK ACADEMY OF LAW 1997 Annual Bankruptcy Law Update Suffolk County Bar Center, Hauppauge, New York Contact 1-516-747-4464 November 21-24, 1997 COMMERCIAL LAW LEAGUE OF AMERICA 77th Eastern District Meeting New York Marriott World Trade Center, New York December 3-4, 1997 STRATEGIC RESEARCH INSTITUTE 4th Annual Conference on Distressed Debt Crowne Plaza Hotel, New York, New York Contact 1-800-599-4950 December 4-6, 1997 AMERICAN BANKRUPTCY INSTITUTE Winter leadership Conference La Costa Resort & Spa, Carlsbad, California Contact 1-703-739-1060 December 5-6, 1997 STETSON UNIVERSITY COLLEGE OF LAW 22nd Annual Bankruptcy Seminar DoubleTree Surfside Resort Hotel, Clearwater Beach, Florida Contact 1-813-562-7830 DECEMBER 10-11, 1997 INSTITUTE FOR INVESTMENT RESEARCH Investment Opportunities in Workouts & Turnarounds Downtown Conference Center, New York, New York Contact 1-212-661-3500 December 11-13, 1997 AMERICAN LAW INSTITUTE--AMERICAN BAR ASSOCIATION 9th Annual Advanced Court of Study, The Emerged and Emerging New Uniform Commercial Code Sheraton New York Hotel, New York, New York Contact 1-800-CLE-NEWS, ext. 1630 December 15-16, 1997 PRACTICING LAW INSTITUTE Basics of Bankruptcy and Reorganization PLI Conference Center, New York, New York Contact 1-800-260-4PLI or http://www.pli.edu January 29-February 1, 1998 COMMERCIAL LAW LEAGUE OF AMERICA 37th Southern District Annual Meeting Plaza San Antonio, San Antonio, Texas Contact 1-972-285-0391 February 22-25, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW 12th Annual Norton Bankruptcy Litigation Institute I Olympia Park Hotel, Park City, Utah Contact 1-770-535-7722 March 26-29, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW 10th Annual Norton Bankruptcy Litigation Institute II Flamingo Hilton, Las Vegas, Nevada Contact 1-770-535-7722 May 22-25, 1998 COMMERCIAL LAW LEAGUE OF AMERICA 50th New England District Annual Meeting Ocean Edge Resort & Golf Club, Cape Cod, Massachusetts Contact 1-617-720-1355 July 2-5, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact 1-770-535-7722 The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ----- A listing of meetings, conferences and seminars appears every Tuesday. Bond pricing, appearing each Friday, is supplied by DLS Capital Partners, Dallas, Texas. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ, and Beard Group, Inc., Washington DC. Debra Brennan and Rebecca A. Porter, Editors. Copyright 1997. All rights reserved. This material is copyrighted and any commercial use, resale or publication in any form (including e- mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *