/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/980211.MBX T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, February 11, 1998, Vol. 2, No. 29 Headlines BARNEY'S: Files Claims Objections BARNEY'S: Seeks Extension for Leases BARNEY'S: Seeks Reconsideration of Administrative Claims BN1 TELECOMMUNICATIONS: Hearing on Financial Consultants BN1 TELECOMMUNICATIONS: Taps Ohio Regulatory Counsel BIDERMANN: Rockey Selected as Chairman and CEO COLOR TILE: Creditor Objects to Payment for Counsel COMPUSERVE: Announces 500 Layoffs CONSOLIDATED STAINLESS: Seeks Extension for Leases CRAIG ELECTRONICS: Seeks to Establish Settlement Authority DOW CORNING: Amended Plan Filing Seen in Mid-February GULF RESOURCES: Wants to Expedite Aircraft Lease HUNTWAY PARTNERS: Improved Earnings Result of Restructuring L.A. GEAR: Stock is Worthless - But Trading LEVITZ FURNITURE: Committee Objects to Payment of Taxes MARVEL: Trustee Seeks Toy Biz Hearing Delay MAX: Loses in Court - Still Flying MOBILEMEDIA: Monthly Operating Report for December MOLTEN METAL: Hearing on Employment of Special Counsel MONTGOMERY WARD: Santa Fe Property to be Sold MONTGOMERY WARD: Seeks Approval of Protection Stipulation MONTGOMERY WARD: Seeks Extension on Leases MONTGOMERY WARD: Seeks Order to Assume or Reject Leases MONTGOMERY WARD: Will Sell Two Properties PARAGON TRADE: Wells Fargo Tries to Collect on $5M Loan RELIANCE ACCEPTANCE: Signs Agreement with Ugly Duckling THE WIZ: Equipment Lessors Lose Bid To Stay Sale Order UNISON HEALTHCARE: Threatened by Bankruptcy UNITED TIMBER: Files for Bankruptcy in Chapter 11 VENTURE: Announces Closing of 20 Stores VITALE ENTERPRISES: Applies to Extend Exclusivity WESTERN PACIFIC: Denver Seeks Relief on Facility Charges WESTERN PACIFIC: Employer's Life Seeks Relief from Stay WESTERN PACIFIC: Shutdown Causes Fare Increases ********* BN1 TELECOMMUNICATIONS: Hearing on Financial Consultants -------------------------------------------------------- A hearing will be held on February 24, 1998 on the application of the Unsecured Creditors' Committee of BN1 Telecommunications, Inc. to approve the employment of Cornwell Consulting Services, Inc. as financial and telecommunication consultants to the Committee. BN1 TELECOMMUNICATIONS: Taps Ohio Regulatory Counsel ---------------------------------------------------- BN1 Telecommunications, Inc. seeks to employ Muldoon & Ferris as Ohio regulatory counsel for all matters arising under the laws of Ohio relating to the regulated telecommunications business and all matters pending or arising under the authority of the Public Utilities Commission of Ohio. BN1 seeks to retain the firm at the regular hourly rate of $165. per hour per attorney plus expenses incurred. BARNEY'S: Files Claims Objections --------------------------------- Barney's, Inc. has given notice of its First Omnibus Application and Objection to Claims. These claims represent duplicate claims or amounts in excess of the amount that the Debtors books and records show is owing to the creditor. A hearing has been scheduled on March 12, 1998 at 10:00 a.m. for an order disallowing and expunging or reducing certain claims. A Second Hearing has been scheduled on April 15, 1998 for remaining creditors who have filed timely objections to Barney's claims objections. BARNEY'S: Seeks Extension for Leases ------------------------------------ Barney's, Inc. is seeking an extension of time to assume or reject certain unexpired leases of nonresidential property for 120 days through and including June 22, 1998. The leases involve properties owned by certain objectants, Northwestern Mutual Life, Joseph M. Muscarelle, Inc., and Fifth Avenue of Long Island Realty Associates. BARNEY'S: Seeks Reconsideration of Administrative Claims -------------------------------------------------------- Barney's is asking the court to reconsider its order to pay administrative priority expense claims of certain vendors of the restaurant formerly known as Mad. 61 and formerly managed by Circle Management, Ltd. The restaurant is located in Barney's retail fashion store in New York. Barney's asserts that Circle entered into these vendor contracts, as an agent of Barney's, which Barney's denies. Therefore, Barney's cannot be held liable to these vendors. BIDERMANN: Rockey Selected as Chairman and CEO ---------------------------------------------- The steering committee of institutional holders of debt of Bidermann Industries Corp. today announced the selection of Robert D. Rockey, Jr. to become the Chairman and Chief Executive Officer of the company upon confirmation and consummation of the plan of reorganization proposed by Timothy R. Coleman as Plan Facilitator. A hearing to confirm the proposed plan of reorganization is scheduled for March 30, 1998. The institutional holders of the debt are Angelo, Gordon & Co., Donaldson, Lufkin & Jenrette Securities Corporation, ING Baring (U.S.) Capital Corporation and Merrill Lynch, Pierce, Fenner & Smith Incorporated. The institutional holders hold debt claims against Bidermann Industries Corp. and affiliates aggregating approximately $311.0 million. The institutional holders are being advised by Gleacher NatWest Inc. and Weil, Gotshal & Manges LLP. COLOR TILE: Creditor Objects to Payment for Counsel --------------------------------------------------- W.M. Grace Development, an unsecured creditor in the case of Color Tile, Inc. and its affiliated companies as debtors, objects to the proposed form of the contingency fee agreement between the Committee and Winsted Sechrest & Minick, PC. The creditor states that monthly compensation without further order from the court is especially troubling in that the firm can act at its whim without seeking approval from the court, as any entity purporting to act for the benefit of a debtor or interested party must. The creditor asks that the court monitor the disbursal of fees and costs to the firm and that the Committee submit a new order providing that the firm seek court approval before apportioning any proceeds of the lawsuit. COMPUSERVE: Announces 500 Layoffs --------------------------------- A week after America Online took it over, CompuServe Corp. said it will cut 500 employees as part of the reorganization. Company officials say the takeover brought a duplication of positions and the cuts would make CompuServe more efficient. Workers were being offered severance packages of at least six months' salary, officials said. Most of the layoffs involve a customer service center in Columbus. H&R Block announced this month it had completed a deal to sell CompuServe to WorldCom Inc. in a stock-for-stock transaction worth $1.3 billion. WorldCom, in turn, traded CompuServe's content and subscribers to AOL. CONSOLIDATED STAINLESS: Seeks Extension for Leases -------------------------------------------------- A hearing has been set for an extension of time to assume or reject unexpired leases of nonresidential property on February 10, 1998 at 1:00 p.m. in the District of Delaware. CRAIG ELECTRONICS: Seeks to Establish Settlement Authority ---------------------------------------------------------- Craig Consumer Electronics, Inc. seeks to modify the procedures and establish the settlement authority regarding the compromise of controversies and to establish settlement authority for certain classes of their accounts receivable claims. They have proposed these settlement ranges: (1) Accounts less than $7,500: Debtor can make settlements without further notice; (2) Accounts between $7,500 and $20,000: If settlement represents a minimum recovery of at least 60%, Debtor can make settlements without further notice; (3) Accounts greater than $20,000: All proposed settlements will be noticed to the 20 largest creditors. DOW CORNING: Amended Plan Filing Seen in Mid-February ----------------------------------------------------- On February 9, 1998, Federal Filings Inc. reported that Dow Corning will file an amended plan of reorganization around Feb. 17 addressing some of the issues raised by the bankruptcy court when it suspended the disclosure statement hearing in November. The amended plan will "be looking at the four or five points Judge [Arthur] Spector raised at the Nov. 20 hearing," Dow Corning spokesperson Kevin Wiggins reportedly said. GULF RESOURCES: Wants to Expedite Aircraft Lease ------------------------------------------------ Gulf Resources Corporation, Debtor, seeks to expedite the assumption or rejection of an aircraft lease by Textron Financial Corporation. The amended notice of hearing is now set for March 18, 1998 in the Western District of Texas. HUNTWAY PARTNERS: Improved Earnings Result of Restructuring ----------------------------------------------------------- The Los Angeles Daily News reported on 2/07/98 that Huntway Partners L.P. reported a second consecutive annual net income after years of losses. The Newhall-based maker of liquid asphalt says its improved earnings are the result of debt restructuring, lower operating and interest costs, and an improving economy. The company wiped out $71.7 million in debt after emerging from a prepackaged bankruptcy in December 1996. However, in October 1997, it issued $21.8 million in convertible debt. Total debt now stands at $37.8 million. For the fourth quarter, Huntway reported a net income of $35,000 (less than a cent a share) on revenues of $25.5 million. That compares with a net income of $56 million ($3.20) on revenues of $25 million a year ago. But 1996 results include a $58.7 million extraordinary gain related to the restructuring of debt and a $2.18 million one-time charge in refinancing costs. Without the one-time gain and charge, Huntway would have reported a loss from operations of $565,000 (3 cents) for the 1996 fourth quarter. L.A. GEAR: Stock is Worthless - But Selling ------------------------------------------- According to an article in the Austin American-Statesman, on February 7, 1998, the common stock of bankrupt L.A. Gear Inc. is worthless, but in the stock market, investors were paying 19 cents a share for L.A. Gear on Tuesday -- an 850 percent increase from the year-end price of 2 cents. On Jan. 27 volume was listed as 102,900 shares on the Nasdaq Bulletin Board, an unregulated electronic marketplace. On Jan. 14 a total of 1.27 million shares changed hands. The closing price that day: 10 cents a share. On Jan. 27, L.A. Gear's bid price was 15 cents while the asked was 19 cents. In other words, to buy the stock you'd have to pay 19 cents a share. But if you tried to immediately sell it back to one of the market makers, you'd get 15 cents -- an instant loss of 21 percent to the investor and potentially a tidy profit for the brokerage. The brokerages can argue that they're keeping the spread on L.A. Gear nice and wide for themselves because, after all, the stock is probably worthless -- so they're taking a lot of risk holding any shares. But then, why should a probably worthless stock be allowed to trade at all? LEVITZ FURNITURE: Committee Objects to Payment of Taxes ------------------------------------------------------- The Official Committee of Unsecured Creditors of Levitz Furniture Incorporated and its affiliated debtors objects to the motions requiring the debtor to pay real estate tax obligations arising under leases of non-residential property. To date, the debtors have paid only the portion of real estate taxes on leased properties that correspond to the post-petiton use of the leased premises. The Committee believes that the weight of the case law supports the debtors' application of an allocation. The Committee's analysis shows that the cost to the estate to make tax payments substantially exceeds the cost of payment at a later date. The movant- landlords argue that the prepayment of some of the taxes will avoid penalties, which is true, but the cost of borrowing under the DIP and the fact that these leases may be rejected more than make up for the cost of the penalties in the Committee's opinion. MARVEL: Trustee Seeks Toy Biz Hearing Delay ------------------------------------------- On February 9, 1998, Federal Filings, Inc. reported that Marvel's Chapter 11 Trustee is seeking to adjourn the hearing on the disclosure statement related to the reorganization plan submitted by Toy Biz Inc. for 60 days, until about March 30. In light of the recent ruling denying his bid to employ his firm as counsel, Trustee John Gibbons is seeking to adjourn the Toy Biz disclosure statement hearing currently set for Feb. 13. Gibbons appealed the ruling last week. MAX: Loses in Court - Still Flying ---------------------------------- The Denver Post reported on 2/07/98 that commuter airline Mountain Air Express lost a crucial bankruptcy-court battle Friday but said it intends to keep flying. U.S. Bankruptcy Court Judge Sidney Brooks ruled that defunct Western Pacific Airlines and its financial partner need not pay $508,000 that Mountain Air Express, known as MAX, says it is owed. The decision was significant because MAX is obligated to make a $250,000 payment Monday for the four aircraft it leases from Dornier Aviation. MAX, which filed for bankruptcy protection in early November, does not have enough cash on hand to make the lease payment. Brooks said that even though it appeared that MAX is owed the money, the court could not give MAX special status over the dozens of other creditors who have claims against WestPac. MAX said that before WestPac shut down, WestPac had agreed to pay $508,000 for flights MAX had made to deliver commuter passengers to WestPac's Denver hub. MOBILEMEDIA: Monthly Operating Report for December 31 ----------------------------------------------------- On January 30, 1998, MobileMedia Corporation, MobileMedia Communications, Inc. and all of the subsidiaries of MobileMedia Communications filed their monthly operating report for the month ended December 31, 1997. On January 27, 1998, the Companies filed with the Bankruptcy Court the Companies' joint plan of reorganization. On February 2, 1998, the Companies filed with the Bankruptcy Court the Companies' disclosure statement to the Plan. Operating expense and EBITDA for December 1997 include the favorable impact of a $4.0 million reversal of previously recorded 1997 telephone expense accruals. The primary reason for the reversal is due to the Federal Communication Commission's ("FCC") recent clarification of interconnection rules. The Company filed its Joint Plan of Reorganization with the Bankruptcy Court on January 27, 1998, which provides for such a change of control. The Company believes that the Joint Plan of Reorganization will meet the conditions of SECOND THURSDAY if consummated, but there can be no assurance that the Joint Plan of Reorganization will be consummated. In the event that the Company were unable to consummate a Plan of Reorganization that satisfies the conditions of SECOND THURSDAY, the Company would be required to proceed with the hearing, which, if adversely determined, could result in the loss of the Company's licenses or substantial monetary fines, or both. Bad debt expense is $0.8, $3.5 and $3.7 million, respectively in December, November and October. The lower December bad debt expense reflects a change in the provision due to higher cash collections in the fourth quarter of 1997 than originally forecast. NET REVENUE for the month ending December 31, 1997 was $35,608 and Net Loss for the same period was ($13,501). MOLTEN METAL: Hearing on Employment of Special Counsel ------------------------------------------------------ A hearing will be held on February 25, 1998 on the debtors' application for authority to employ special governmental counsel, Latham & Watkins. MONTGOMERY WARD: Santa Fe Property to be Sold --------------------------------------------- On January 30, 1998 Montgomery Ward entered into an agreement for Albertson's, Inc. to purchase a closed store property in Santa Fe, NM. The Buyer has agreed to purchase the property for $8,100,000. Should the property be sold to a third party making a higher and better offer, any competitive offer must be for at least $8,125,000, and each subsequent bid must be for $25,000 higher than the previous bid. A hearing on the motion will be convened at the Court in the District of Delaware on February 26, 1998 at 9:30 a.m. MONTGOMERY WARD: Seeks Approval of Protection Stipulation --------------------------------------------------------- Montgomery Ward Holding Corp., et al., and Prudential Insurance Company of America seek Approval of Adequate Protection Stipulation and Order and for Other Relief. Prudential is holder of five Notes in the original principal amount of $23,700,000 secured by five Deeds of Trust and collateralized by five separate parcels of improved real property owned by Debtor MPC. MPC leased these properties to another Debtor in the case, MWDC. The leases were each guaranteed by Debtor MW&C. Prudential asserts that it is entitled to relief from the automatic stay to pursue its contractual and nonbankruptcy remedies against the Debtors in connection with the Loan Documents or adequate protection of its interest in the Collateral. The Debtors dispute that Prudential is entitled to relief from the automatic stay. The Debtors and Prudential have resolved their dispute and wish to have the Court enter the Stipulation and Order after notice and hearing. The hearing will convene on February 26, 1998 at 9:30 a.m. in the District of Delaware to consider the motion. MONTGOMERY WARD: Seeks Extension on Leases ------------------------------------------ The Debtor is seeking more time to assume or reject certain unexpired nonresidential real property leases under which they are lessees or sublessees until August 31, 1998. In support of their request, the Debtors maintain that they are still in the process of analyzing the value of these leases to the performance of their remaining stores. MONTGOMERY WARD: Seeks Order to Assume or Reject Leases ------------------------------------------------------- Montgomery Ward Holding Corp. is seeking to assume or reject nonresidential real property leases on certain closed and vacated stores. A hearing has been scheduled on February 26, 1998 at 9:30 a.m. in the District of Delaware to consider this motion. MONTGOMERY WARD: Will Sell Two Properties ----------------------------------------- On February 6, 1998, Montgomery Ward entered into an agreement with Proffitt's, Inc. to assign and transfer to Proffitt's all of its rights, title and interest in its Huntsville, AL property for $2,700,000 and its Omaha property for $3,000,000. The Debtor is seeking approval of this agreement, subject to better and higher offers. If the Debtors accept such an offer, they are required to pay Proffitt's a fee of $50,000. A hearing on the Motion will be convened at the Court in the District of Delaware on February 26, 1998 at 9:30 a.m. PARAGON TRADE: Wells Fargo Tries to Collect on $5M Loan ------------------------------------------------------- The Dallas Business Journal reported on 1/30/98 that the Dallas office of Wells Fargo Bank (Texas) is waiting in line to collect on a $5 million loan. The cause is a major lawsuit that spawned one of the largest judgments ever for the infringement of a patent: $180 million. Based in Houston, the $6 billion bank is a subsidiary of San Francisco-based Wells Fargo & Co., a $100 billion super- regional. Manufacturers of generic products (like Paragon) usually license the rights to a patent from brand-name competitors (like Proctor & Gamble). But Paragon chose instead to dispute Proctor & Gamble's patent on plastic gatherers and used the technology without paying for it. Paragon lost the gamble. The federal court sided with Proctor & Gamble and in late 1997 slapped Paragon with the $180 million judgment. According to federal documents, Paragon owes loan money to nine banks, including Wells Fargo's Dallas office. The bankruptcy put into limbo a $20 million loan from Wachovia Bank of Georgia. Also caught for $10 million each are Chase Securities Inc., Bank of America, Bank of Nova Scotia, ABN/AMRO North America Inc. and Bank of New York. Bank of Tokyo and PNC Bank join Wells Fargo at the $5 million level. In all: $85 million in loans. Plus, Chase Manhattan Bank in New York has provided another $75 million for Paragon to continue its day-to-day operations. By law, Paragon must repay Chase Manhattan before it settles with the other banks. RELIANCE ACCEPTANCE: Signs Agreement with Ugly Duckling ------------------------------------------------------- Reliance Acceptance Group, Inc. announced today an agreement with Ugly Duckling Corporation (UDC) supported by Reliance's senior lenders and certain other major creditors, that would entail servicing by UDC or an affiliate of the bulk of Reliance's sub-prime auto portfolio. The transaction would take place following confirmation of a Chapter 11 Plan of Reorganization for Reliance, the principal terms of which have been agreed to by Reliance, its senior bank lenders and certain of Reliance's other major creditors, subject to Reliance's receipt of higher and better offers. The Chapter 11 case has been filed today in United States Bankruptcy Court for the District of Delaware. Under the Plan, proceeds from the servicing of the Reliance non-securitized portfolio, which is approximately $226 million at present, will go first to the senior lenders to pay off their revolving loan, including the approximately $184 million principal balance, then to other creditors and, under certain circumstances, to Reliance stockholders. The proposed transaction, which has been approved by both RACC's and UDC's Board of Directors, is conditioned upon the approval of the Bankruptcy Court and is subject to higher and better offers. The parties intend to consummate the transaction in the first half of 1998, following confirmation of Reliance's Chapter 11 Plan. Under the terms of the agreement, upon confirmation of the Plan, UDC or an affiliate will service and collect Reliance's portfolio, other than Reliance's approximately $63 million securitized portfolio, which beginning February 1, 1998 is being serviced by a separate third party servicer. Reliance's senior lenders will remain in place during the collection of the receivables with a lending arrangement at reduced fees and interest rates. UDC will receive the following: (1) a base servicing fee of 4% per annum, computed monthly, on the declining balance of the receivables portfolio, or a $15.00 per account monthly fee, whichever is greater, (2) the first $6 million (less UDC's up to $1.3 million in collections from the sale of Reliance's charged-off deficiency backup portfolio) of cash flow following satisfaction of the bank debt (including both principal and accrued interest) and 25% of cash flow thereafter, and (3) the first $1.3 million in collections from the sale of Reliance's existing charged- off deficiency balance portfolio. In exchange for Ugly Duckling entering into the Servicing Agreement, Ugly Duckling will grant Reliance up to 150,000 privately issued warrants ("Warrants") to purchase shares of common stock, $.001 par value per share of Ugly Duckling. The Warrants will have a strike price of twelve dollars and 50/100 ($12.50) and will be subject to terms and conditions still to be negotiated. For every $1 million received by Ugly Duckling from its 25% cash flow participation, Reliance would receive 75,000 additional Warrants subject to similar terms and conditions as the original Warrants. Reliance will shortly file its Plan of Reorganization along with a disclosure statement. It is contemplated that Nasdaq will delist RACC's shares from trading. THE WIZ: Equipment Lessors Lose Bid To Stay Sale Order ------------------------------------------------------ As reported by Federal Filings, Inc., on February 9, 1998, a group of The Wiz's secured equipment lessors lost its bid to stay the court order approving the sale of substantially all of the retailer's assets to Cablevision Systems Corp. for approximately $95 million. Equipment lessors Sanwa Business Credit Corp., Bankers Leasing Association Inc., and Harris Bank Glencoe-Northbrook N.A. opposed the sale, asserting that it "impermissibly" attempts to strip them of key protections provided by the Bankruptcy Code. The court denied the group's stay motion on Feb. 5. UNISON HEALTHCARE: Threatened by Bankruptcy ------------------------------------------- The Business Journal - Phoenix reported on 2/06/98 that Unison Healthcare Corp., a Scottsdale company in financial turmoil for the past year, may be on the verge of bankruptcy. Last month, three of Unison's subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code affecting operations in Texas and Indiana. Unison officials said the move was the result of pressure from creditors in those states. In December, Unison borrowed $20 million to help make payments toward its $100 million long-term debt. Officials also reported that cash flow from operations and available capital is insufficient to meet operating expenses, lease obligations and debt payments. The company's stock closed at $1.13 per share Feb. 2 and has traded between $3.94 and 63 cents per share over the past 52 weeks. For the nine months ended Sept. 30, Unison reported a net loss of $8.97 million, or $1.41 per share, on total revenue of $172.63 million. That compares with a net loss of $10.69 million, or $2.43 a share, on total revenue of $104.15 million for the same nine months of the prior year. UNITED TIMBER: Files for Bankruptcy In Chapter 11 ---------------------------------------------------- United Timber Co. and United Timber Corp. of Dixfield, companies that own 85,458 acres of timberland and operate three paper mills, recently filed for bankruptcy under Chapter 11 in U.S. Bankruptcy Court in Bangor. The companies plan to restructure debts incurred in the construction of a new sawmill. United Timber Corp. listed $929,135 in debts and $11 million in assets. United Timber Co. listed $57 million in debts and $50 million in assets in the recent court filings. The United Timber Co., operates sawmills in Dixfield and North Anson, and associated dry kilns and secondary manufacturing facilities, producing eastern white pine lumber, hardwood lumber, and gun stocks. The company also owns and operates timber harvesting and trucking operations. Over the past two years, the company has invested more than $36 million to modernize and expand the Highland Lumber Co. division, investing in sophisticated computer equipment, automated systems, and machinery to retrieve logs. Highland is the largest manufacturer of eastern white pine lumber in the East. "The filing of the Chapter 11 proceeding was caused by the new mill costing more than planned and the start-up of the new mill taking longer and costing more than expected," said Rand N. Stowell, president and chief executive officer of the United Timber Corp. VENTURE: Announces Closing of 20 Stores --------------------------------------- Venture Stores, Inc. announced today that it plans to close 20 stores in six states and a distribution center, providing the company with additional resources to devote to its core Midwestern markets during its Chapter 11 reorganization. The store closings will provide Venture with the opportunity to reduce losses and improve cash flow as the company pursues its reorganization strategy. "This move will allow Venture to refocus our energies on improving reliability and providing even better values for the customers of the stores in our core markets," said Robert N. Wildrick, the company's chairman and chief executive officer. "We are taking the first of many steps that will be required to rebuild sales and improve performance at the 73 remaining stores that will comprise a stronger Venture chain." Venture will close its remaining eight stores and a distribution center in Texas; six of its stores in Indiana, three stores in Topeka and Wichita, Kan.; one store in Tulsa, Okla.; one store in Rockford, Ill.; and one store in Joplin, Mo. (See list for exact store locations.) The closings will affect a total of approximately 1,530 employees, with eligible associates receiving a severance package. Venture will be hiring an outside firm to conduct store closing sales at the 20 stores that will be closing. Venture will operate 73 stores in eight states, after the closing of the 20 locations is completed. VENTURE STORE CLOSINGS 02/10/98 N. Tulsa 2029 South Sheridan Tulsa, OK 74112 E. Evansville 101 North Green River Rd. Evansville, IN 47715 W. Evansville 2500 First Avenue Evansville, IN 47710 E. Wichita 2057 N. Rock Rd. Wichita, KS 67206 W. Wichita 350 S. Tracy St. Wichita, KS 67209 E. Washington 7339 E. Washington St. Indianapolis, IN 46219 E. Plano 600 Accent Drive Plano, TX 75075 S. Arlington 4628 S. Cooper St. Arlington, TX 76017 Irving 3200 W. Irving Blvd. Irving, TX 75061 Topeka 5311 Southwest 22nd Place Topeka, KS 66614 Pasadena Park 6802 Spencer Highway Pasadena, TX 77505 Voss 7600 Westheimer Rd. Space A Houston, TX 77063 Baytown 4553 Garth Rd. Baytown, TX 77521 Corpus Christi 4717 South Padre Island Rd. Corpus Christi, TX 78411 Amarillo 2610 Soncy Rd. Amarillo, TX 79121 Rockford 5880 E. State Street Rockford, IL 61108 Joplin 101 North Rangeline North Park Mall Joplin, MO 64801 Washington 6650 W. Washington St. Indianapolis, IN 46241 South Bend 4600 South High St. South Bend, IN 46614 Mishawaka 5802 Grape Rd. Indian Ridge Shopping Center Mishawaka, IN 46545 Corsicana Distribution Center 1600 N. Business 45 Corsicana, TX 75110 VITALE ENTERPRISES: Applies to Extend Exclusivity ------------------------------------------------- Vitale Enterprises, Inc., debtors, are seeking an order extending the exclusive period during which the debtors may file a plan of reorganization to April 30, 1998 and the solicitation period to June 30, 1998. The debtors claim that the suggested extensions are short and reasonable given the size and complexity of these cases. The debtors state that they deserve a realistic chance to negotiate, propose and seek acceptance of a Chapter 11 plan, and that competing plans would shake the confidence of the debtors' employees, suppliers and customers. WESTERN PACIFIC: Denver Seeks Relief on Facility Charges -------------------------------------------------------- The City and County of Denver, in connection with its Municipal Airport System is seeking unpaid facility charges from Western Pacific Airlines. The unpaid Facility Charges for January are approximately $1,173,265. Unpaid Passenger Facility Charges are approximately $244,000 for December 1997 and $175,000 for January 1998. The city contends that emergency relief is appropriate as Denver is being forced to extend credit beyond the terms of the post-petition agreement reached with the Debtor and is incurring damages of $46,000 per day. WESTERN PACIFIC: Employer's Life Seeks Relief from Stay ------------------------------------------------------- Employer's Health Insurance Corporation is seeking protection regarding its life and health insurance contract with Western Pacific Airlines. The petitioner asserts that the Debtor has not made the full payment for medical insurance premiums due February 1998 nor any payment for life insurance premiums for January 1998. Employer's Health does not believe that the grant of an administrative claim will be adequate protection for their interest. Employer's Health seeks a determination of the status of the insurance contract. WESTERN PACIFIC: Shutdown Causes Fare Increases ----------------------------------------------- The Gazette reported on 2/06/98 that the shutdown Wednesday of Western Pacific Airlines triggered immediate fare hikes in Colorado Springs and likely also will mean higher fares in Denver. Some fares, such as those for tickets purchased a week in advance, are skyrocketing. Tickets on round-trip flights from Colorado Springs to Miami are going for more than $1,000, said Jack Armit, owner of Globe Travel Service. That's more than twice the price just a few months ago, he said. "There is fair-market pricing, and then there is gouging. I don't know what else you would call a $1,000- plus fare," Armit said. Fares from the Colorado Springs Airport are still at least 50 percent higher than fares on flights to the same destination from Denver, Armit said. For example, fares to Los Angeles are $300 from Colorado Springs and $197 from Denver, he said. Fares in Denver on routes that Frontier does not serve will certainly begin increasing within days, said Scott Hamilton, who publishes a Seattle-based aviation industry newsletter. Frontier also likely will raise its fares somewhat, he said. ----------- A listing of meetings, conferences and seminars appears each 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 * * *