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/raid1/www/Hosts/bankrupt/TCR_Public/980127.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, January 27, 1998, Vol. 2, No. 18 Headlines ALPHASTAR: Once-Fallen - Tries A Launch In Satellites AVATEX: Will not pay January 1998 Preferred Stock CONSOLIDATED STAINLESS: Seeks to Employ Investment Bankers FOXMEYER: Seeks Approval of Agreement with Dupont Merck FOXMEYER: Seeks Information on Information Systems Failure HARRAH'S JAZZ: Emergency Motion for Post-petition Financing HOMEPLACE: Court Approves $100 Million Extension of DIP KENWIN SHOPS: Last Date for Filing Proofs of Claims L.A. GEAR: Buildings Taken Over by Skechers USA LEVITZ: Proposes Settlement for Chargeback Disputes LEVITZ: Request Revision to Employee Relocation Program LEVITZ: Sells John M. Smythe Company & Realty Assets MANHATTAN BAGEL: Order Approving Rejection of Leases MANHATTAN BAGEL: Order Extending Use of Cash Collateral MOUNTAIN AIR: SIGNS DEAL WITH FRONTIER ONEITA INDUSTRIES: Files Petition in Chapter 11 PARAGON TRADE: Order Authorizing Post-petition Financing PARAGON TRADE: Order Determining Adequate Assurance PAYLESS CASHWAYS: Posts Losses and Cuts Workforce PAYLESS CASHWAYS: Promotes Three Executives PIC INSURANCE GROUP: PA Begins Liquidation Proceedings POLYMERIX, INC.: Files Petitions for Reorganization THE WIZ: Seeks 60-Day Extension to Assume or Reject Leases US ONE: Disclosure Statement and Joint Liquidating Plan VENTURE STORES: Considers Store Closings WELCOME HOME: To Continue Employ of Real Estate Consults WESTERN PACIFIC: Motion for Rehearing on Cash Collateral WESTMORELAND COAL: Wants to Extend Houlihan Lokey's Employ Meetings, Conferences and Seminars ********* ALPHASTAR: Once-Fallen - Tries A Launch In Satellites ------------------------------------------------------ Investor's Business Daily reported on 1/26/98 that an Egyptian tycoon plans to revive a one-time contender in the direct broadcast satellite business, despite its collapse last year from what analysts called a "classically flawed" business plan. Mahmoud Wahba, president of Greenwich, Conn.-based Champion Holding Co., bought the assets and name of AlphaStar Digital, which was headquartered in Ontario, Canada, for $4.65 million last month. The assets - which include an uplink facility in Oxford, Conn., where satellite dishes receive and send audio and video signals -are valued at $72 million, Wahba says. Why such a bargain? Tee-Comm Electronics Inc., AlphaStar's former parent, also based in Ontario, went into receivership in May '97. Service was cut off for AlphaStar's 60,000 subscribers, leaving competitors to feast on its market share. Ultimately, there were no other bidders for AlphaStar. Whether AlphaStar can overcome its past difficulties is in question, analysts say. Wahba plans to resume broadcast service and add data transmission business sometime this year. Plans are to establish at least three subsidiary communication companies - AlphaStar PC Webcasting and AlphaStar TV Broadcasting, plus an outfit known as Champion Private Network and Teleport. An additional $50 million is needed to get AlphaStar up and running again, Wahba says. It requires about 200,000 subscribers to break even, he adds. But what hurt AlphaStar most was lack of funding. Tee- Comm's successful $107 million debt offering was made during August and September of '96. That move came at a time when the markets were bullish about the satellite business, and Tee-Comm easily could have obtained twice that sum. AVATEX: Will not pay January 1998 Preferred Stock ------------------------------------------------- Avatex Corporation (NYSE: AAV) today announced that it has determined not to make its next quarterly cash dividend payments that are scheduled for January 1998 on either the Company's $5.00 Cumulative Convertible Preferred Stock or its $4.20 Cumulative Exchangeable Series A Preferred Stock. Avatex also announced that it has determined not to redeem 88,000 shares of its $5.00 Cumulative Convertible Preferred Stock in January 1998. CONSOLIDATED STAINLESS: Seeks to Employ Investment Bankers ----------------------------------------------------------- Consolidated Stainless, Inc., debtor seeks to employ and retain Genesis Merchant Group Securities LLC and Slusser Associates, Inc. (GMGSA) as its investment banker. GMGSA will be jointly providing investment banking services for the debtor pursuant to a joint venture arrangement. GMGSA has agreed to identify and contact potential buyers for the assets, develop marketing strategies for the sale of the assets, provide advisory services with respect to the disposition of the assets, prepare a summary descriptive memorandum of the assets, engage in negotiation with potential purchasers of the assets, participate in court hearings with respect to the sale of the assets, provide periodic reports concerning GMGSA's efforts to sell the assets; advise the debtor concerning the sale, merger or disposition of the assets, assist the debtor's counsel in connection with the preparation and negotiation of any agreement of sale for the assets; and attend court hearings with respect to the sale of the assets. GMGSA would be paid a $25,000 initial fee, a transaction fee of 2% of the first $14 million of total sale proceeds received; and 6% of the balance of the sale proceeds received in excess of $14 million; and a $25,000 termination fee, in the event the debtor elects not to sell the assets during the term of the agreement. FOXMEYER: Seeks Approval of Agreement with Dupont Merck ------------------------------------------------------- FoxMeyer Bankruptcy News (Issue 23) reports the permanent chapter 7 Trustee, Bart A. Brown, Jr. seeks court approval of a Letter Agreement compromising and settling claims by and against the Dupont Merck Pharmaceutical Company. The Trustee urges approval of the Letter Agreement because under its terms the estates receive the full benefit of the asserted chargeback claims and the benefit of an allocation of a significant portion of such claims, dollar for dollar, against Dupont Merck's reclamation claims, without litigation, delay and uncertainty. FOXMEYER: Seeks Information on Information Systems Failure ---------------------------------------------------------- FoxMeyer Bankruptcy News (Issue 23), published by Bankruptcy Creditors' Services, Inc., reports that Mr. Bart A. Brown, Jr., the permanent chapter 7 Trustee of FoxMeyer Corporation, requests depositions concerning the apparently total failure of the Debtors' information technology and warehouse systems. Mr. Brown requires additional documents and information in order to evaluate culpability for the failure of these systems. In order to satisfy his fiduciary duties to the creditors, he points out that he must evaluate all potentially meritorious claims that could result in increasing the size of the distributable assets upon liquidation. Mr. Brown has identified these parties as likely in his motion: 1. Woltz & Associates -- the Debtors retained Woltz to assist them in specifically defining the Debtors' needs in an integrated computer system. The Debtors paid Woltz approximately $3,500,000. 2. SAP America, Inc. -- SAP represented to the Debtors that SAP's operating system and related software would integrate and meet all of the Debtors' various computer needs. The Debtors paid SAP approximately several million dollars for the SAP system and agreed to pay SAP $500,000 per year for maintenance fees. 3. Andersen Consulting LLP--Andersen represented to the Debtors that Andersen, with its extensive experience in the SAP system, could install and implement the SAP system and modify the system as well, in order to meet the Debtors' specific needs in the drug distribution business. The Debtors paid Andersen approximately $20,000,000 to install and implement the SAP system and modify it to meet the Debtors' needs. 4. Pinnacle Automation, Inc. and its subsidiaries provided the Debtors with the hardware, information technology and logistical support for its Washington Courthouse warehouse that was to work in tandem with the SAP system to achieve for the Debtors one integrated system for all of its computer needs. Ultimately, the SAP system and the warehouse system functioned so poorly and with so many breakdowns that the Debtors discovered multi-million dollar inventory discrepancies; the Debtors, among other failures, could not even determine whether certain shipments had been made or to whom shipments were made. HARRAH'S JAZZ: Emergency Motion for Post-petition Financing ---------------------------------------------------------- Harrah's Jazz Company is seeking entry of interim and final orders authorizing it to obtain from Harrah's Entertainment, Inc. or an affiliate thereof additional DIP loans in the aggregate principal amount of up to $1 million (exclusive of the $39 million existing DIP loan). A hearing on approval of the Modified Plan is scheduled for January 29, 1998.The debtor's amended casino operating contract will be considered in a special session of the legislature commencing in mid-March 1998. The State legislature's approval of the casino operating contract is a condition precedent to the Effective Date of the plan, and thus, the cash collateral available to the debtor under the December financing order, together with the unborrowed portion of the $39 million in loans authorized pursuant to the prior financing orders are insufficient to pay the monthly rental payments under the City Agreement and the other administrative expenses which the debtor will incur prior to the Effective Date of the plan. The debtor is seeking court approval of the additional DIP extension of $1.5 million provided that the Governor publicly commits to the legislature's special session, and the Modified Plan has been confirmed, and an additional $1 million when the state commences the process required under the casino operating contract, and an additional $1 million when the state is actively pursuing the Suitability Process. HOMEPLACE: Court Approves $100 Million Extension of DIP -------------------------------------------------------- On January 23, 1998 HomePlace Stores, Inc. said that it received court approval for the immediate company use of up to $100 million in DIP financing to purchase merchandise and fund ongoing operations. The Committee of Unsecured Creditors consented to the entry of the order. A hearing has been set for January 29 for approval of the permanent DIP financing agreement. The court had previously approved, on an interim basis, the company's use of $12.5 million of the $110 million in DIP financing from a group of financial institutions led by BankBoston Retail Finance Inc. KENWIN SHOPS: Last Date for Filing Proofs of Claims --------------------------------------------------- The court in the case of Kenwin Shops Inc., et al. entered an order providing that all claims must be filed on or before March 16, 1998. L.A. GEAR: Buildings Taken Over by Skechers USA ----------------------------------------------- Skechers USA, a casual shoe maker based in Manhattan Beach (CA), is taking over 400,000 square feet of distribution space in Ontario formerly occupied by troubled tennis shoe manufacturer L.A. Gear Inc. Skechers is moving into two buildings owned by Prudential Real Estate Group at the northwest corner of Vintage Avenue and Francis Street, according to Chris Atkinson of CB Commercial's City of Industry office. CB represented both sides in the five-year, $6.72 million lease, Atkinson said. Skechers had been scouting the market for a 350,000 to 400,000 space when it learned L.A. Gear would be moving out of the Prudential buildings, Atkinson said. Skechers officials liked the buildings because they will also take over the distribution equipment left by L.A. Gear, he added. LEVITZ: Proposes Settlement for Chargeback Disputes --------------------------------------------------- As reported in Issue 12 of The Levitz Bankruptcy News published by Bankruptcy Creditors' Service, Inc., the Debtors seek court authority to enter into settlement agreements with certain furniture vendors revising their Post-petition Vendor Chargeback Program. The Debtors tell the Court that this Motion is a creative solution to settle disputes involving Levitz's chargebacks to furniture vendors of costs Levitz incurs servicing manufacturers warranties of their products. The Debtors believe the settlement agreement will avoid potentially costly and protracted litigation over a relatively minor monetary issue. The following seven Vendors have agreed to the proposed compromise: * Rowe Furniture Corporation * Klaussner Furniture Industries * Bassett Furniture Industries * Stylecraft, Inc. * Berkline * Universal Furniture, Industries, Inc. * Bench Craft, Inc. Vendors' chief complaints relate to application of chargebacks for In-Home repairs: the Debtors applied the charge for repairs to either post-petition or pre-petition amounts, based on when the customer informed them of the defect, pre-petition or post-petition. This procedure contrasted with In-Shop repairs, costs of which were applied in accordance with delivery date of the furniture: if the defective furniture was delivered to the Debtors pre-petition, the Debtors' pre-petition obligation was reduced; if delivered post-petition, the post-petition obligation was reduced. LEVITZ: Request Revision to Employee Relocation Program ------------------------------------------------------- The Levitz Bankruptcy News (Issue 12) reports the Debtors, request authority to implement revisions to an employee relocation program by entering into a contract with RE/MAX Relocation Services, Inc. Under the proposed Relocation Program, RE/MAX will provide home sale marketing assistance to employees designated by the Debtors and will act as a home sale financial intermediary in return for a set fee and reimbursement of RE/Max's costs and expenses (including closing costs) associated with employee home sales. The fixed fee amount payable per employee home sale--$3,500 or $1,800--will depend upon which of the two home sale marketing assistance programs is designated by the Debtors to apply to a particular employee's relocation, Option A or Option B. The Debtors believe the proposed Relocation Program should save the Debtors' estates considerable costs of paying employee income and wage taxes triggered by direct reimbursements to employees of Closing Costs in connection with employee relocations. The program achieves this benefit without sacrificing the provision of high quality relocation services to the Debtors' employees. LEVITZ: Sells John M. Smythe Company & Realty Assets ---------------------------------------------------- The Levitz Bankruptcy News (Issue 12) reports that Levitz announced on January 12, 1998 that it closed the sale of JMS' Assets to Heilig-Meyers Company, following Judge Farnan's approval of the sale. The aggregate purchase price, subject to certain post-closing adjustments, is approximately $34,000,000m including $23,680,000 in consideration for the transfer of certain real property and improvements. Consistent with the terms of the DIP Financing Agreement, the proceeds of the sale will be paid to BT Commercial Corporation to reduce amounts owed under the DIP Facility. MANHATTAN BAGEL: Order Approving Rejection of Leases ---------------------------------------------------- On January 16, 1998 the court entered an order approving the rejection of 15 store leases in the case of Manhattan Bagel Company, Inc., debtor. The time for the debtor to assume or reject all remaining leases of nonresidential real property is extended through to May 18, 1998. MANHATTAN BAGEL: Order Extending Use of Cash Collateral ------------------------------------------------------- Judge William H. Gindin entered an order in the case of Manhattan Bagel Company, Inc. The debtor is authorized to use cash collateral for the period commencing January 16, 1998 and continuing through the week ending February 28, 1998 in accordance with the revised cash collateral budget up to the aggregate amount of $5,692,693. MOUNTAIN AIR: SIGNS DEAL WITH FRONTIER -------------------------------------- Mountain Air Express signed a new code-share agreement with fellow discount carrier Frontier Airlines January 21, 1998. The agreement allows both airlines to do joint ticketing and special baggage transfer services on flights at Denver International Airport. The deal gives Mountain Air Express passengers access to 60 more flights to large markets such as Los Angeles and Boston. "This really opens up a lot of benefits to MAX passengers," said Amanda Sullivan, a spokeswoman for the airline, which connects Denver with Colorado Springs, Gunnison, Hayden, Tulsa, Oklahoma City and Kansas City. Code-sharing between MAX and Frontier should begin March 4, a day after MAX's code-share agreement with Western Pacific Airlines expires. MAX, which followed parent Western Pacific into bankruptcy, has been trying to gain its own independent financial footing since the bankruptcy filing in October. With new financial backers, MAX officials are confident that the airline will emerge from bankruptcy in March. The carrier is also receiving $100,000 a week from Western Pacific for feeding passengers from Colorado Springs. "They appear to be on the way to gaining the necessary financing to emerge from bankruptcy," said Bob Schulman, a Frontier spokesman. ONEITA INDUSTRIES: Files for Bankruptcy --------------------------------------- Once the nation's largest maker of T-shirts and baby clothes, Oneita Industries has filed for bankruptcy reorganization to deal with debts nearing $100 million. The Charleston, S.C.-based apparel maker filed a prepackaged Chapter 11 petition Friday in Delaware, where the business is incorporated. Oneita listed assets of $78.3 million and liabilities of $98.9 million. A restructuring plan would turn over 80 percent of the company's shares to existing creditors. The list of creditors holding the 20 largest unsecured claims include: Creditor Nature of Claim Amount -------- --------------- ------- IBJ Scroder Bank & Trust Bank Debt $57 million Robert M. Gintel Debt $9,061,251 Prudential Insurance Co. Debt $6,379,066 Bridgestone/Firestone Lease $158,639 Goodman Segar Hogan Hoffler Lease $158,095 or CB Commercial Nationsbanc Leasing Lease $146,141 Seeaboard Marine Ltd. Trade Debt $129,470 Clariant Corporation Trade Debt $126,319 Standard Warehouse Warehousing $91,915 Maiden Specialties Trade Debt $77,352 Marion F. Walker & Assoc. and Bobby Allyn Johnson Judgment $73,565 Florida Mills, Inc. Trade Debt $70,590 Atlantic Finishing Trade Debt $69,900 Metlife Capital Corporation Lease $59,815 Barry T. Chouinard Trade Debt $59,706 Ed Tuner, Revenue Commission Property Taxes $55,374 Catawba-Charlab, Inc. Trade Debt $51,192 Griffon Workers Comp $50,890 Town of Andrews, SC Water/Sewer $44,945 First Union Commercial Corp. Lease $44,920 PARAGON TRADE: Order Authorizing Post-petition Financing -------------------------------------------------------- On January 21, 1998, Judge Margaret H. Murphy entered an order authorizing the debtor, Paragon Trade Brands, Inc., to borrow or obtain letters of credit pursuant to the Credit Agreement, and the Guarantors may guaranty such borrowings, up to an aggregate of $20 million to be used for providing working capital for the debtor. A final hearing is set for January 30, 1998. PARAGON TRADE: Order Determining Adequate Assurance --------------------------------------------------- Judge Margaret H. Murphy entered an order in the case of Paragon Trade Brands, Inc. finding that uninterrupted utility services are essential to the debtor's ongoing operations. The court stated that the debtor's ongoing operations together with funds which will be available through its right to borrow funds pursuant to the DIP facility will provide Paragon with sufficient cash to pay for its post-petition utility services on a current basis. The company's excellent pre-petition payment history, its ability to pay for future utility services, the entitlement of the utility companies to an administrative expense priority and the court's adoption of an expedited review process are deemed to be adequate assurance to the utility companies. The utility companies are, by this order, restrained from discontinuing or altering service to the debtor during the pendency of the case. PAYLESS CASHWAYS: Posts Losses and Cuts Workforce ------------------------------------------------- Payless Cashways said it lost more than $200 million in the last quarter of 1997 and will eliminate 25 percent of its headquarters work force and two of its regional offices, in Dallas and Indianapolis. The announcement came just seven weeks after the Kansas City-based home improvement retailer emerged from Chapter 11 bankruptcy reorganization. Payless said it lost $201.8 million in the fourth quarter, compared with net income of $5.56 million a year earlier. When extraordinary items are excluded, Payless' loss was $10.4 million for the quarter and $35.5 million for the year. Net quarterly sales were $504.4 million, down from $710 million a year earlier. PAYLESS CASHWAYS: Promotes Three Executives ------------------------------------------- Payless Cashways Inc. on Thursday announced three executive changes, including the promotion of Richard G. Luse to chief financial officer and senior vice president of finance. Luse was previously vice president and controller. Robert S. Islinger, previously senior vice president of marketing, takes on the added responsibility of merchandising and becomes senior vice president of marketing/merchandising. Louise R. Iennaccaro, previously director of field human resources, has been named vice president of human resources. All three will report to Donald Roller, acting chief executive officer. The changes came three days after the company announced the departure of five top executives and said its headquarters staff would be cut by one quarter. The 175 positions being eliminated at the company's headquarters occurred at all levels and in nearly every department. Also, the company reported earlier this week that it lost $288.6 million for the year that ended Nov. 29. Payless emerged from a 4 1/2-month Chapter 11 bankruptcy reorganization in early December. PIC INSURANCE GROUP: PA Begins Liquidation Proceedings ------------------------------------------------------ The Pennsylvania Insurance Department today announced that Commonwealth Court has granted its request to place financially troubled PIC Insurance Group Inc. (PIC) into liquidation. "Liquidation is the best option in this case because it preserves the company's remaining assets," said Insurance Commissioner M. Diane Koken. Based in Fort Washington, Montgomery County, PIC wrote only medical malpractice insurance, and its business was limited to Pennsylvania. PIC stopped writing new business on Jan. 1, 1996. Eleven months later, the company opted to non- renew its entire schedule of policies and began to phase out operations. PIC's policyholder surplus continued to decline during 1997. When the company was unable to improve its deteriorating financial condition, the Insurance Department, with PIC's consent, petitioned Commonwealth Court to place PIC in liquidation. The company does not have any policies in force. The liquidation order appoints the Insurance Commissioner as statutory liquidator of PIC to conclude the company's remaining business. POLYMERIX, INC.: Files Petitions for Reorganization --------------------------------------------------- Polymerix, Inc. (OTC-BB: PLXX) and its wholly owned subsidiary, Trimax of Long Island, Inc. announced today that they had filed voluntary petitions for reorganization under Chapter 11 of the Federal Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of New York, Hauppauge, before the Honorable Melanie L. Cyganowski. Trimax of Long Island, Inc. is engaged in the business of manufacturing plastic lumber from recyclable plastic waste. Polymerix, Inc. is the holder of the patents utilized by Trimax. The debtors indicated that IMP Properties Corporation-NY, a pre-petition secured lender to the debtors, had agreed to continue funding Trimax's operations on an interim basis, subject to court approval. THE WIZ: Seeks 60-Day Extension to Assume or Reject Leases ----------------------------------------------------------- The Wiz, Inc. et al., debtors submitted a motion for an order extending for sixty days the period within which the debtors may assume or reject unexpired leases of non- residential real property. The extension, if approved would extend the period to and including April 17, 1998. The debtors are a party to approximately 55 unexpired leases. The leases are potentially valuable assets of the debtors' Chapter 11 estates. The debtors together with their real estate consultant, DJM Asset Management, are activley engaged in the process of evaluating each lease to determine which leases are valuable and likely to be assumed and subject to court approval, potentially assignable to third parties. US ONE: Disclosure Statement and Joint Liquidating Plan -------------------------------------------------------- The debtors, US One Communications Corp., US One Communications Services Corp., and US One Communications of New York, Inc. filed a Disclosure Statement dated January 16, 1998. A summary of the classification and treatment of claims and interest under the plan is as follows: Administrative claims are unimpaired and the estimated claim amount is $16.7 million. Priority Tax Claims are unimpaired and the estimated claim amount is $2.1 million. Class 1 Priority Non-Tax Claims are impaired. No postpetition interest will be received on such claims. The estimated claims amount is $120,000. Class 2 Secured Claims are impaired. Each holder will receive cash or the reorganized company will abandon the property that secured the allowed claim. Deficiency claims shall be treated as a class 3 claim. Estimated claim amount is $1 million. Class 3 Unsecured Claims are impaired. Each claimant will receive a pro rata share of the unsecured claims distribution amount. Estimated claim amount is $72.1 million. Class 4.1, 4.2, 4.3, 4.4 Interests - Impaired. Each holder will receive its pro rata share of the equity interest distribution amount. The total estimated claim amount is $72.5 million, which represent 5% recovery as a percentage of the claim.(This excludes $4 million Escrow Share Portion) Class 5 Interests - Impaired. No distribution. The common Stock shall remain outstanding. There is no estimated claim amount. Class 6 Interests - N/A The debtors continue to operate their business. The debtors and Lucent Technologies, Inc. settled a $69,533,808.19 proof of claim for the sum of $45 million. The debtor also negotiated a settlement with CSC Outsourcing, Inc. on an unsecured claim in the amount of $5,497,793.14 allowing Outsourcing an unsecured non- priority claim in the amount of $5,242,000. The debtors entered into a certain Purchase Agreement dated as of October 17, 1997 between the debtors and WinStar Communications, Inc. and WinStar Acquisition Corp., which is attached to the plan in its entirety. VENTURE STORES: Considers Store Closings ---------------------------------------- Venture Stores Inc. next order of business will be weeding out its poorest performing locations after the announcement January 20, 1998, that the chain filed for protection from its creditors under Chapter 11 of the federal bankruptcy laws. Corporate spokeswoman Tina Schneider said, as yet, there are no plans to close any of the 93 stores. Some closings are likely, however, after the company reviews the profitability of each store, according to a corporate press release issued Tuesday. No time line has been set for these reviews, Schneider said. The bankruptcy filing is aimed at buying time for the O'Fallon, Mo.-based chain while it repositions its marketing focus, company CEO Robert Wildrick said in the press release. The Chapter 11 protection will work hand-in-hand with a new $190 million debtor-in-possession revolving credit from BT Commercial Corp. to provide the funds to continue business operations during the reorganization. The bankruptcy--filed in Delaware, where Venture Stores Inc. is incorporated--will allow the company to continue to keep its stores open while devising a financial reorganization plan. No layoffs are planned for store employees, but some jobs at Venture's corporate office will be eliminated, according to the company. WELCOME HOME: To Continue Employ of Real Estate Consults -------------------------------------------------------- The debtor, Welcome Home, Inc. seeks authorization of the continued retention of Felenstein Koniver & Associates, Inc., as retail real estate consultant. The debtor credits the firm with the termination of 23 store leases, the negotiation of rent reductions in annual savings of $185,000 and the recovery of over $70,000 in "tenant allowance" money. The debtors would like to continue to retain the firm because the process of evaluating store leases and negotiating lease concessions is not complete. The firm ahas agreed to a substantial reduction in compensation, agreeing to reduce its monthly fee to $2,500 from $7,500 and its incentive commission from 12.5% of rental savings negotiated to 10%. WESTERN PACIFIC: Motion for Rehearing on Cash Collateral -------------------------------------------------------- Hunt Petroleum Corporation and GFI Company (Hunt and GFI) filed a motion for rehearing pertaining to the cash collateral judgment entered on January 9, 1998 and the related findings of fact and conclusions of law with respect to the motion. Hunt and GFI are creditors of the debtor with an alleged secured claim in excess of $10.5 million secured by, inter alia, a perfected lien in some or all of the debtor's accounts receivable, the debtor's cash collateral, the debtor's terminal facility at Colorado Springs Airport, and certain items of the debtor's personal property. Hunt and GFI entered into a Settlement Agreement with the debtor and Smith Management Company wherein the Hunt/GFI claim was assigned to Smith. Hunt and GFI move for rehearing since the settlement was entered into after the original hearing authorizing use of cash collateral. In the event the settlement is not approved, it is important to Hunt/GFI to preserve their rights. They allege new evidence demonstrating that Hunt/GFI were oversecured as of the petition date, and that the total collateral position of Hunt/GFI as of the petition date was greater than that demonstrated at the original cash collateral hearing. The court determined that Hunt/GFI's collateral as of the petition date should be valued at $8,874,000, and the court declared that amount as the operative "threshold" of collateral, above which the debtor may use cash collateral. Hunt/GFI claim that approximately $10 million was secured as of the petition date by property having a value in excess of the amounts owed. Hunt/GFI claim that they are not adequately protected on their secured claim absent the maintenance by the debtors of a minimum threshold of cash collateral and eligible, pledged receivables totaling at or above $10.5 million. WESTMORELAND COAL: Wants to Extend Houlihan Lokey's Employ ---------------------------------------------------------- Westmoreland Coal Company requests that the court authorize its Reply to the objection filed by the UMWA 1992 Benefit Plan and its trustees and the UMWA Combined Benefit Fund and its trustees (Funds) to Westmoreland's motion to extend the employment of Houlihan, Lokey, Howard & Zukin (Houlihan) through June 1, 1998. The debtor argues that the employment of Houlihan is critical to the debtors' ability to successfully confirm a plan of reorganization and effectively prosecute objections to any competing plan. The debtor also claims that the Funds' Objection contains material misrepresentations. The debtors allege that the funds' objective is "to deprive the debtors of the professional services necessary to contest the Funds on a level playing field." The debtor states that Houlihan continues to develop and deliver complex plan and litigation settlement proposals, that the debtors face a February 2, 1998 plan deadline and that Houlihan's input is critical to plan formulation. The Funds have given notice that they seek confirmation of a competing plan on or after January 20, 1998 and that Houlihan's services will be needed in analyzing and opposing such a plan. Meetings, Conferences and Seminars ---------------------------------- 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 5-7, 1998 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800 February 19-22, 1998 COMMERICAL LAW LEAGUE OF AMERICA Annual Western District Meeting Universal City Hilton Hotel Los Angeles, California Contact 1-310-470-8487 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 19-20, 1998 TURNAROUND MANAGEMENT ASSOCIATION Spring Leadership Meeting Hotel del Coronado, San Diego, California Contact 1-312-857-7734 March 20, 1998 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Century Plaza Hotel, Los Angeles, California Contact: 1-703-739-0800 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 April 30-May 3, 1998 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Grand Hyatt, Washington, D.C. Contact: 1-703-739-0800 May 22-25, 1998 COMMERICAL LAW LEAGUE OF AMERICA 50th New England District Annual Meeting Ocean Edge Resort & Golf Club Cape Cod, Massachusetts Contact 1-617-720-1355 May 31-June 5, 1998 COMMERICAL LAW LEAGUE OF AMERICA CLLA Credit Institute Marquette University, Milwaukee, Wisconsin Contact 1-312-781-2000 June 8-9, 1998 TURNAROUND MANAGEMENT ASSOCIATION Advanced Education Workshop & Legislative Conference Radisson Plaza, Charlotte, North Carolina Contact 1-312-857-7734 June 11-14, 1998 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800 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 July 16-19, 1998 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Sea Crest Resort, Falmouth, Massachusetts Contact: 1-703-739-0800 August 6-9-1998 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop Daufuskie Island Club & Resort, Hilton Head, South Carolina Contact: 1-703-739-0800 September 9-13, 1998 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES Annual Convention Sheraton El Conquistador, Tuscon, Arizona Contact: 1-803-252-5646 September 17-20, 1998 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference The Inn at Loretta, Santa Fe, New Mexico Contact: 1-703-739-0800 October 16-20, 1998 TURNAROUND MANAGEMENT ASSOCIATION 1998 Annual Conference The Westin Hotel, Chicago, Illinois Contact 1-312-857-7734 December 3-5, 1998 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin La Paloma, Tucson, Arizona Contact: 1-703-739-0800 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 Lexy Mueller, Editors. Copyright 1998. 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 * * *