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/raid1/www/Hosts/bankrupt/TCR_Public/980320.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, March 20, 1998, Vol. 2, No. 55 Headlines BARNEY'S: Preen Seeks Real Estate Consultants CAJUN ELECTRIC: SWEPCO Increases Cajun Electric Bid DOEHLER JARVIS: Committee Responds to Extension on Leases DREADNOUGHT MARINE: Seeks Chapter 11 Protection FRETTER: Order Extends Exclusive Periods GAYLORD COMPANIES: Order Enlarges Exclusivity GAYLORD COMPANIES: Court Extends Time for Lease Assumption GAYLORD COMPANIES: Hearing Date Set for Plan Confirmation GUY F. ATKINSON: Order Extending Interim Cash Collateral HOSPITAL STAFFING: Files Voluntary Petition in Chapter 11 INTERNATIONAL HERITAGE: Accused of Pyramid Scheme MANHATTAN BAGEL: Stipulation and Settlement MARVEL: Toy Biz Receives Approval to Settlement MERRY GO ROUND: Trustee Wants Suit in State Court MONTGOMERY WARD: Seeks Authorization to Pay Severance NETS: Committee Seeks Authority to Investigate Manzi NIKE: Company Officials Promise Recovery PAN AM: Court Authorizes Continued Use of Cash Collateral PAN AM: Mandaric is Out PEGASUS GOLD: Yanks Bid To Hire Houlihan Lokey POCKET COMMUNICATIONS: Debt Holders Give Notice of Hearing TODAY'S MAN: EBITDA Nearly Doubles Year-Over-Year Q-ENTERTAINMENT: Seeks OK on Infinity Investors Compromise RELIANCE ACCEPTANCE: Seeks to Probe Confidentiality Breach RELIANCE ACCEPTANCE: Trustee Names Creditor Panel RODMAN & RENSHAW: Files Chapter 7 Bankruptcy Proceedings STRUTHERS INDUSTRIES: Filed for Bankruptcy Owing $9.64M THE HORIZON COLLECTIVE: Files for Chapter 11 Protection THE SCORE BOARD: Subsidiary Files Voluntary Chapter 11 WELCOME HOME: Seeks DIP Approval DLS CAPITAL PARTNERS: Bond Pricing for Week of March 16 ********* BARNEY'S: Preen Seeks Real Estate Consultants --------------------------------------------- Preen Realty, Inc., Amjon Realty, Inc. and Cholderton Realty Corp. ("Preen"), debtors are seeking approval of their selection of Keen Realty Consultants Inc. and Albert Bialek Associates, Inc. as Preen's real estate consultants with respect to the sale and/or lease of certain real properties owned by Preen located at 17th Street, New York. Upon the closing of a sale, the Consultants will receive an amount equal to 1% of the first $15 million and 3.5% of the consideration received by Preen in excess of $15 million. CAJUN ELECTRIC: SWEPCO Increases Cajun Electric Bid --------------------------------------------------- Southwestern Electric Power Company has increased its proposed purchase price and has signed a settlement agreement with the Rural Utilities Service, the largest creditor in the Chapter 11 bankruptcy of Cajun Electric Power Cooperative. Under its amended reorganization plan and related documents, filed March 18, SWEPCO would provide to the Cajun Electric estate $940.5 million in cash for the purchase of Cajun's non-nuclear assets by a SWEPCO affiliate or subsidiary. The plan is offered jointly by SWEPCO and the Committee of Certain Members, consisting of seven Cajun member distribution cooperatives. The amended plan incorporates the terms of a settlement with the RUS. The agreement covers treatment of the RUS claim under the SWEPCO plan and settles key matters in litigation among the Committee of Certain Members, the RUS and SWEPCO. The court set confirmation hearing dates in April and a May 26 deadline for submission of final briefs in the Cajun Electric bankruptcy case. The Louisiana Public Service Commission continues to analyze rates in the three competing bids. The LPSC previously had determined that SWEPCO's rate was "not presumptively unreasonable" and was the lowest of the three competing bidders over a 15-year period. The seven cooperatives in the Committee of Certain Members are Beauregard Electric Cooperative, Dixie Electric Membership Corp., Jefferson Davis Electric Cooperative, Northeast Louisiana Power Cooperative, South Louisiana Electric Cooperative Association, Valley Electric Membership Corp. and Washington-St. Tammany Electric Cooperative. The SWEPCO plan also is supported by an eighth co-op, Claiborne Electric Cooperative. Two competing plans are offered by (1) the Cajun Electric trustee, who backs Louisiana Generating LLC, a partnership of NRG Energy, Zeigler Coal Holding Co. and Southern Electric International, and (2) Enron Capital & Trade Resources and the Official Unsecured Creditors Committee. DOEHLER JARVIS: Committee Responds to Extension on Leases --------------------------------------------------------- The Official Committee of Unsecured Creditors supports the debtors' motion to extend time to assume or reject leases of nonresidential real property. The debtors seek a fourth extension of the time within which they may assume or reject leases of nonresidential real property. The debtors' third extension will expire on April 6, 1998 and the debtors now seek a 91-day extension to July 6, 1998. DREADNOUGHT MARINE: Seeks Chapter 11 Protection ----------------------------------------------- Dreadnought Marine Inc. has sought Chapter 11 bankruptcy protection from its creditors. In the filing at the U.S. Bankruptcy Court in Norfolk, Dreadnought Marine listed assets of $2.8 million and liabilities of nearly $4.4 million. Like other ship repair companies in the region, Dreadnought's principal customer has been the Navy. While Dreadnought was very busy with Navy jobs in the fall, work has fallen off so much that the company can't pay all its bills. Dreadnought was thriving as the Navy funneled more work to down-river firms with lower overhead than shipyards with expensive waterfront facilities. Dreadnought's employment got as high as 476 when it worked on Navy ships in 1995. Dreadnought's bankruptcy filing listed three secured creditors for the company. Vienna, Va.-based Commerce Funding Corp. is owed nearly $1.6 million. The U.S. Small Business Administration is owed nearly $245,000. The filing said that the company's debt to the third, Signal Mutual Indemnity Association of Bermuda, is unknown. Dreadnought listed about 300 unsecured creditors, led by Tidewater Temps Inc. of Richmond, which is owed nearly $800,000; PrinVest Receivables Corp. of Lawrenceville, N.J., $225,000; and ArCon Inc. of Norfolk, $181,000. (Virginian Pilot Ledger Star 03/17/98) FRETTER: Order Extends Exclusive Periods ---------------------------------------- By court order entered March 10, 1998, Fretter, Inc. et al., debtors and the Creditors' Committee shall have the exclusive right to file a plan or plans of liquidation through and including April 9, 1998. The debtors and the Creditors' Committee shall have the exclusive right to obtain acceptance of such plan or plans through and including June 5, 1998. GAYLORD COMPANIES: Order Enlarges Exclusivity --------------------------------------------- The court has entered an order in the case of Gaylord Companies, Inc. and its affiliated companies, debtors, extending the exclusive right to file plan(s) of reorganization through and including May 12, 1998. The debtors have the exclusive right to solicit acceptances of such plans through and including July 13, 1998 subject to shortening by the court. GAYLORD COMPANIES: Court Extends Time for Lease Assumption ---------------------------------------------------------- The court entered an order in the case of Gaylord Companies, Inc. and its affiliated companies, debtors, extending the time for the debtors to assume or reject their respective leases of non-residential real property up to and through May 12, 1998. GAYLORD COMPANIES: Hearing Date Set for Plan Confirmation --------------------------------------------------------- The court entered an order in connection with the "Bookstore Debtors" (Gaylord's Inc., Gaylord Book Company, Sawworth Book Company, and Gaylord Enterprises, Inc.) that the Bookstore debtors anticipate filing a proposed plan of reorganization for the Bookstore Debtors, together with a proposed Disclosure Statement. March 26, 1998 is fixed for the hearing on approval of the Bookstore Debtors' Disclosure Statement for Plan of Reorganization. April 13, 1998 is fixed for the confirmation hearing on the Bookstore Debtors' Plan of Reorganization. GUY F. ATKINSON: Order Extending Interim Cash Collateral -------------------------------------------------------- The third cash collateral order is extended and shall remain in effect until April 30, 1998. The budget is approved by the court, and the debtors are authorized to spend Pool II cash on un-bonded project disbursements and joint ventures only when and to the extent that the project owner has paid or deposited sufficient funds to cover such disbursements. A hearing on April 24, 1998 will be held to consider the debtors' motion for continued use of cash collateral in the Pool II Assets, and any funding arrangements that may be proposed for Pool I Assets. The debtor, Guy F. Atkinson Company of California, Guy F. Atkinson Company, and Guy F. Atkinson Holdings, Ltd., the Committee and the Banks are authorized to appoint Mr. E. Lawrence Hill, Jr. as the Responsible Officer, effective upon execution of his engagement contract. The Responsible Officer is authorized and directed to prepare a business plan and budget proposal for realization of value from Pool II assets, and to present this plan to the Banks, the Committee, the Bonding Companies and the debtor. HOSPITAL STAFFING: Files Voluntary Petition in Chapter 11 --------------------------------------------------------- Hospital Staffing Services Inc. has filed a voluntary petition seeking protection under Chapter 11 of the U.S. Bankruptcy Code. The company cited critical cash shortfalls it has experienced since implementation of a payment recoupment by the Medicare program for alleged overpayments relating to its home care operations, from cash payments otherwise due to its home care providers. The company said its current lender, Capital Healthcare Financing, has agreed to provide it with Debtor In Possession financing through a secured revolving credit facility that will allow Hospital Staffing Services to maintain its day-to-day operations. The company also reported that an investor group, lead by Ronald Lusk, a Dallas, Texas-based private investor, has agreed to provide financing on an as-needed basis to provide additional financial support for the company's day- to-day operations. Hospital Staffing also said Ronald A. Cass, William F. McConnell, Hector Luis Ziperovich, M.D., and Robert B. Fields voluntarily resigned as members of the Board. Concurrently, Ronald Lusk, Robert L. Woodson, III, Joe Williams, Jr., and Bobby Shields were named to serve as new members of the board. Lusk was subsequently named by the board to serve as its new chairman, replacing Lawrence Cappel, Ph.D., who remains a director. The board also accepted the resignation of Ronald G. Honeycutt, its vice president finance and CFO. Lusk was named to serve as the new president, Shields will serve as the CEO and interim CFO. Lusk said "our initial efforts will be directed at developing a plan of reorganization that will allow the company to maintain its current base of operations and then ultimately move forward once again in the healthcare industry." (UPI: Financial- 03/18/98) INTERNATIONAL HERITAGE: Accused of Pyramid Scheme ------------------------------------------------- A North Carolina company describing itself as a purveyor of fine jewelry, luggage, collectibles and golf equipment actually was the front for a fraudulent pyramid scheme that raised more than $150 million from over 155,000 investors, federal regulators have charged. Top officials of Raleigh-based International Heritage Inc. updated this scheme by using the Internet to promote it, according to the Securities and Exchange Commission. The SEC filed an emergency civil complaint in U.S. District Court in Atlanta against the company and three top officials, alleging fraud and seeking unspecified civil penalties and repayment of ill-gotten gains. A hearing was scheduled for March 24. U.S. District Judge Richard Story issued a temporary restraining order against International Heritage and the three officials - chairman, president and chief executive Stanley H. Van Etten, and Claude W. Savage and Larry W. Smith, both founders and directors. Judge Story also appointed a receiver for the company and froze its assets. The SEC alleged in its complaint that starting in April 1995, Mr. Van Etten, Mr. Savage and Mr. Smith solicited people nationwide to invest in a pyramid scheme, which was portrayed as investing in business centers. The three defendants knowingly misrepresented the company's financial condition to investors and concealed the fact that it was operating a pyramid scheme, the SEC charged. (Morning Star Wilmington - 03/19/98) MANHATTAN BAGEL: Stipulation and Settlement ------------------------------------------- Manhattan Bagel Co., Inc., debtor, is requesting the entry of a Consent Order approving a certain Stipulation and Agreement of Settlement between and among the debtor, Franchise Groups, Inc., Ranch 1 Group Inc., Ome Inc., Dome Enterprises, Inc., ("Obligors") and James Chickara and Sebastian Rametta ("Individuals"). As of February 20, 1998, the Obligors were jointly and severally indebted, liable and obligated to the debtor for $1.5 million in unpaid principal plus $180,703 in accrued interest, exclusive of interest at the default rate, late charges and costs of collection. By the terms of the agreement the debtor is willing to accept $1.275 million plus accrued interest. The debtor agrees to forebear from enforcing certain Credit Documents, and both the Obligors and the debtor agree that a certain Area Development Agreement will be deemed terminated. MARVEL: Toy Biz Receives Approval to Settlement ----------------------------------------------- Toy Biz, Inc. announced that the requisite number of Senior Secured Creditors supporting its Plan of Reorganization for Marvel Entertainment Group have approved the settlement, reached last week, with the Unsecured Creditors Committee of Marvel Entertainment. As previously announced, under the terms of the proposal, holders of allowed unsecured claims will receive, on a pro rata basis, a cash distribution of 15% of the amount of the allowed unsecured claims plus $2.0 million, up to a maximum of $8.0 million. In addition, unsecured creditors will receive up to 1.75 million warrants to purchase common stock in the combined Toy Biz/Marvel. The warrants will have a four-year term and be exercisable at a price of $17.25 per share. Finally, holders of allowed unsecured claims will be entitled to receive distributions from any recovery on certain future litigation. MERRY GO ROUND: Trustee Wants Suit in State Court ------------------------------------------------- A U.S. bankruptcy judge is to decide whether a federal or state court will handle a $4 billion negligence and fraud lawsuit blaming Ernst & Young International Inc. for the collapse of Maryland-based Merry-Go-Round Enterprises Inc. Deborah Hunt Devan, trustee, filed the lawsuit in Baltimore Circuit Court in December, but it was transferred to U.S. Bankruptcy Court on a motion by Ernst & Young. At a hearing yesterday before Bankruptcy Judge E. Stephen Derby, Devan's attorneys argued that the case should be sent back to state court to be heard by a jury. If the case remains in bankruptcy court, where there are no juries, the judge would decide it. Ernst & Young's attorneys asked Derby to keep the case in his jurisdiction, arguing that court would be best suited to decide issues central to the bankruptcy proceedings, such as the malpractice charges against the accountants. The suit alleges that Ernst & Young mishandled the retailer's Chapter 11 reorganization, thus preventing Merry-Go-Round from restructuring. Ernst & Young, hired in December 1993 to create a turnaround strategy for Merry-Go- Round, also committed fraud by failing to disclose ties with the retailer's law firm, the lawsuit claims. It seeks $1 billion in compensatory damages and $3 billion in punitive damages. Devan became the bankruptcy trustee after the case was converted to a Chapter 7 liquidation in March 1996. Currently, $60 million in creditors' claims remain outstanding, said Stephen L. Snyder, Devan's attorney. In seeking to return the case to state court, Snyder argued that Devan has a constitutional right to demand a jury trial, adding that the charges of negligence and fraud are based on Maryland law. Neil J. Dilloff, an attorney with Piper & Marbury representing Ernst & Young, argued that a central question raised by the suit required the attention of the bankruptcy court. "Can an adviser be held responsible for the death of a company?" he asked. "Every turn-around professional, for better or worse, is looking at this case." It would be an exception for a bankruptcy judge to remand such a case to the state, he said. "State court would be at a loss to decide bankruptcy issues, because they never do it," Dilloff said, telling Judge Derby, "You should not accept this invitation to sluff this off to a state court." (Baltimore Sun - 03/18/98) MONTGOMERY WARD: Seeks Authorization to Pay Severance ----------------------------------------------------- Montgomery Ward Holding Corp., et al, debtors, seeks an order authorizing the payment of certain prepetition former executive severance benefits. The total amount of severance payment due total $1,143,708. The former executives were terminated due to the restructuring effors in early and mid-1997. The debtors are advised that certain of the former executive s have suffered severe hardship as a result of the debtors' nonpayment of the severance benefits. Four of the six former executives remain unemployed. The debtors believe that there may be employee confusion and adverse publicity if the payments are not made. NETS: Committee Seeks Authority to Investigate Manzi ---------------------------------------------------- The Official Committee of Unsecured Creditors is seeking entry of an order transferring to the Committee the authority to prosecute on behalf of the estate any and all claims of the estate against James Manzi,an insider of the debtor, Nets, Inc. The Committee initiated an adversary proceeding against Manzi challenging th ealleged secured claim of approximately $1.6 million that is being asserted by Manzi against the estate. The Committee's Complain specifies two counts that seek to avoid Manzi's security interest in the estate assets as preferential and fraudulent transfers. The Court stated in denying Manzi's motion to dismiss that the Committee must establish that there exists a colorable claim that , if successful, would yeild a net benefit for the estate. Second, the Committee must establish that despite demand on the debtor to take action the demand is declined and the inaction is an abuse of discretion. The Committe states that both of these requirements are met here. NIKE: Company Officials Promise Recovery ---------------------------------------- Nike can and will come back, company officials said yesterday after announcing that quarterly profits fell nearly 70 percent and 1,600 people will be laid off. Chairman Phil Knight blamed the economic collapse in Asia, where Nike has pinned much of its expansion hopes. The company had cranked up production just before the financial reversal that has spread from Singapore to Tokyo, leaving Nike with a huge supply of unsold inventory. Nike profits fell to $73.1 million, compared to $237.1 million a year ago. Earnings per share dropped from 80 cents to 25 cents, the second straight quarter the company has reported a decline. Nike stock was down 1 5/16 at 44 9/16 in morning trading. (APWire: Financial - 03/19/98) PAN AM: Court Authorizes Continued Use of Cash Collateral --------------------------------------------------------- Judge A. Jay Cristol entered an order in the case of Pan American Airways Corp. and Pan American World Airways, Inc. authorizing the debtors to continue to use cash collateral of NationsBank, NA. As of the petition date, NationsBank asserts that the debtors were indebted to NationsBank in the approximate amount of $25,587,000. The debtor may only use such funds as is provided in the agreement. NationsBank is granted relief from the automatic stay to set off and apply the proceeds of a certain certificate of deposit in the amount of $3,723,205. The debtors are required to make a cash payment to NationsBank of $25,000 before March 27,1998. PAN AM: Mandaric is Out ------------------------ Financier Milan Mandaric has dropped out as a would-be rescuer for grounded Pan Am, which is now considering a bankruptcy judge's suggestion to operate as a small charter carrier. Pan Am issued a statement late Wednesday saying talks with Mandaric were over, while other undisclosed talks "have reached various stages of progress." No other active suitor has been identified. Mandaric said he could not meet all of his objectives "under the present circumstances and time frame." The airline owns three jets but has held onto the seven leased planes while looking for a quick solution to its collapse. Pan Am has been bringing in money with charters in an attempt to keep up with its lease payments while looking for a way to quickly resume scheduled service. But Judge Cristol noted Monday that one of his previous airline bankruptcies resulted in two years of charter flights. (APWire: Business 03/19/98) PEGASUS GOLD: Yanks Bid To Hire Houlihan Lokey ---------------------------------------------- Pegasus Gold Inc. withdrew its bid to hire Houlihan Lokey Howard & Zukin Capital as financial advisor in the face of opposition from the creditors' committee regarding the scope and fee structure of the proposed retention. John Pearson, the gold producer's vice president of public relations, said Pegasus is working on a replacement for the investment banking firm. The company is seeking to shed non-key assets, including the Pullalli Project in Chile, and to locate an investor for all or part of the Mt. Todd Mine in Australia. (Federal Filings, Inc. 18-Mar-1998) POCKET COMMUNICATIONS: Debt Holders Give Notice of Hearing --------------------------------------------------------- Masa Telecom, Inc., Pacific Eagle Investments, Ltd., Pacific Eagle Investment (L) Limited, Ericsson, Inc. and Siemens Telecom Networks, who collectively hold over $170 million in claims (approximately 80% of all non-FCC debt in these cases) are giving notice of a hearing on March 20, 1998. The purpose of the hearing is to report on the status of the DIP Lenders' negotiations with the FCC and the prospects of a plan of reorganization for the debtors. TODAY'S MAN: EBITDA Nearly Doubles Year-Over-Year ------------------------------------------------- Today's Man, Inc. which emerged from the protection of the U.S. Bankruptcy Court on December 31, 1997, today announced that sales for the twelve months ended January 31, 1998 increased 5% to $214.1 million from $204 million for the same period last year. Gross margin increased to 35.5% versus 34.1% last year; and comparable store sales increased 7% for the 25 superstores in operation at the end of both fiscal years. The Company also reported EBITDA of $14.0 million for the fiscal year ended January 31, 1998, an 85% increase over EBITDA of $7.6 million for the year ended February 1, 1997. Income from operations increased 189% to $10.2 million from $3.5 million. The Company excludes net reorganization costs and the previously reported interest payments to creditors in accordance with its Plan of Reorganization from the calculation of EBITDA. The Company reported its loss narrowed to $4.3 million, or ($0.39) per share, versus $5.8 million, or ($0.54) per share in fiscal 1996. Excluding the impact of those items related to the reorganization and prior to normalized interest charges, the Company would have earned $9.7 million or $0.88 per share on a pre-tax basis for fiscal 1997. Weighted average outstanding shares for the year ended January 31, 1998 were 11,063,275 as compared to 10,861,005 for the year ended February 1, 1997. Sales for the fourth quarter of fiscal 1997 increased 5.3% to $71.3 million from $67.7 million for the corresponding quarter in the prior year. Net income for the quarter was $1.1 million, or $0.10 per share, versus a net loss of $64,900, or ($0.01) per share for the same period a year ago. Net income for the quarter reflects reorganization costs of $3.9 million, or $(0.33) per share. Weighted average shares outstanding for the fourth quarter ended January 31, 1998 were 11,676,829 as compared to 10,861,005 for the fourth quarter ended February 1, 1997. Q-ENTERTAINMENT: Seeks OK on Infinity Investors Compromise ---------------------------------------------------------- Infinity Investors Limited, et al. asserts that it is owed over $15 million on account of prepetition loans made to the debtors, Q-Entertainment Inc. and its affiliates, and an additional approximately $1.2 million as a result of postpetition loans made to the debtors pursuant tot he financing order entered in the cases. A settlement agreement was negotiated between the Trustee in the case, Infinity and a third party purchaser (Entertainment Technology and Programs, Inc.) pursuant to which debtors' operating assets would be sold for $3.3 million. The agreement states that the Trustee may prosecute any and all causes of action of Infinity against the debtors' former officer and auditors. The Trustee shall pay Infinity the first $5 million in recoveries, and 70% of all recoveries over the first $5 million, and the Trustee shall retain, for the benefit of the debtors' estates, 30% of all such recoveries. The Trustee shall be permitted to retain the debtors' cash on hand and the first $300,000 in cash consideration received y the Trustee from the disposition of the debtors' assets after Infinity has received $3.1 million from such disposition. RELIANCE ACCEPTANCE: Seeks to Probe Confidentiality Breach ----------------------------------------------------------- Reliance Acceptance Group Inc. has asked the court for authority to question Saga Capital L.L.C. to determine if it breached a confidentiality agreement and on what basis the firm claims a brokerage commission regarding a proposed transaction with Coast-to-Coast Financial Corp. During prepetition efforts to enter into a transaction to maximize the value of its assets, the sub-prime lender entered into several confidentiality agreements with prospective investors and purchasers, including Saga. (Federal Filings, Inc. 18-Mar-1998) RELIANCE ACCEPTANCE: Trustee Names Creditor Panel ------------------------------------------------- The U.S. Trustee has appointed an official committee of Reliance's unsecured creditors. The panel is comprised of IBJ Schroder Bank & Trust Co., Fidelity Bancorp Inc., Cincinnati Life Insurance Co., David McNutt, and James Kinney as Trustee for Cloyce Savidge. (Federal Filings, Inc. 18-Mar-1998) RODMAN & RENSHAW: Files Chapter 7 Bankruptcy Proceedings -------------------------------------------------------- Rodman & Renshaw Capital Group, Inc. and its wholly owned subsidiary Rodman & Renshaw, Inc. announced today that they each filed Chapter 7 bankruptcy proceedings with the United States Bankruptcy Court for the Southern District of New York. Rodman & Renshaw, Inc. recently discontinued its business operations. Under Chapter 7 of the Bankruptcy Code, the United States Trustee assumes jurisdiction upon filing of the bankruptcy petition. Carolyn Schwartz, United States Trustee, is expected to appoint an interim trustee. Rodman & Renshaw Capital Group, Inc. is 70% owned by Abaco Casa de Bolsa, S.A. de C.V., Abaco Grupo Financiero of Monterrey, Mexico. STRUTHERS INDUSTRIES: Filed for Bankruptcy Owing $9.64M ------------------------------------------------------- Struthers Industries Inc., a former Tulsa energy-turned- telecommunications company, filed for bankruptcy this week, owing nearly $9.64 million to creditors, court records state. The company moved its headquarters to Los Angeles last year after initiating a merger with World Integrated Network of Cos. After the merger announcement, however, the company was plagued by a series of bad occurrences. First, there was the restructuring of its merger. Then, the company was tossed from American Stock Exchange. In January, officers announced that an undisclosed investor planned to recapitalize the company. The same day, however, the U.S. Securities and Exchange Commission suspended trading in the stock. The SEC reportedly questioned the value of broadcast licenses the company said it had under contract. The SEC said it questioned the company's public disclosures. And, in the interim, the company was cited for contempt by U.S. District Court in Washington, D.C., for not providing the SEC with proper documents. (Tulsa World- 03/14/98) THE HORIZON COLLECTIVE: Files for Chapter 11 Protection ------------------------------------------------------- The Horizon Collective, one of the area's largest fast-food operators and minority-owned businesses, has sought to reorganize its troubled finances in U.S. bankruptcy court. The operator of 47 Pizza Hut restaurants filed for Chapter 11 protection from creditors. The company, which reported more than $20 million in annual sales in November, listed assets of $9.1 million and liabilities of $11.1 million. Most of the company's liability, $8.5 million, is owed to Banco Popular, the bank that financed the company's acquisition of the Pizza Huts in late 1996. Horizon President Carole Riley said her company is trying to refinance the debt but has had trouble working out an arrangement with the bank. "It's a tactical move to force our lender to talk to us," Riley said of the bankruptcy filing. She said the company expects to keep its restaurants open and its 1,200 workers employed. "We're not out of the game at all," she said. "It's an inconvenience. No one will get hurt." Riley acknowledged that Horizon, which she owns with Kelli Givens, is not current on its franchise royalty or advertising payments. Pizza Hut's claims total $733,568, according to the filing. Although no landlords were listed as having claims, Riley said their finances have been hurt by unfavorable leases. She said they will be able to emerge from bankruptcy reorganization quickly once its financing and leases have been reorganized. In the first year since buying the Pizza Huts, which stretch from Utica and Binghamton into western Massachusetts, sales have been below expectations, Riley said. "It's industry wide," she said. Tricon Global Restaurants, the franchise corporation, reported "same-store" revenues at U.S. Pizza Hut stores open at least a year dropped 1 percent in 1997. The decline was 7 percent in the first six months, before bouncing back. A decline in same-store sales can be costly for a restaurant chain because costs generally continue to rise, even when revenues falter. Nationwide, fast-food companies face rising labor costs and other expenses while competition has continued to be fierce. (Times Union- 03/14/98) THE SCORE BOARD: Subsidiary Files Voluntary Chapter 11 ------------------------------------------------------ The Score Board, Inc., a leading marketer and licensor of sports and entertainment-related memorabilia and products, announced today that it and its wholly-owned subsidiary, The Score Board Holding Corporation, filed voluntary petitions under Chapter 11 of the Federal Bankruptcy Code with the United States Bankruptcy Court for the District of New Jersey (Case Numbers 98-12555 and 98-12557, respectively). Score Board, which has been declared in default under its secured credit facility, is developing a strategic plan in conjunction with its secured lender to identify the optimal course for the future. During the past several years, Score Board has been beset by a number of business difficulties, some endemic to the industry and some unique to it. The market for sports trading cards has experienced a contraction in recent years, resulting in diminished sales by both Score Board and its competitors. Score Board's overall sales have declined from $109 million for the fiscal year ended January 31, 1994 to approximately $43 million for the eleven months ended December 31, 1996. Sales data for the year ended December 31, 1997 are not yet available. During the fiscal years ended January 31, 1995 and 1996 and the eleven month period ended December 31, 1996, Score Board reported a net aggregate loss of $59.4 million. WELCOME HOME: Seeks DIP Approval -------------------------------- Welcome Home Inc., a/k/a The Glorious Nest, Home Again, f/k/a Cape Craftsmen, Inc., debtor is seeking an order authorizing the debtor to borrow money from Jordan Industries, Inc, pursuant to a DIP line of credit and security agreement. Jordan has agreed to loan up to $2 million to the debtor. The loan is subject to receipt of priority over administrative expenses and being secured by liens on the property of the estate subordinate to the liens granted to Fleet pursuant to the Financing Order. DLS CAPITAL PARTNERS: Bond Pricing for Week of March 16 ------------------------------------------------------ Following are indicated prices for selected issues: American Rice 13 '02 76 - 80 (f) Amer Telecasting 0/14 1/2 '04 18 - 22 Asia Pulp and Paper 11 3/4 '05 92 1/2 - 94 APS 11 7/8 '06 24 - 25 (f) Boston Chicken 7 3/4 '04 63 - 64 1/2 Bradlees 11 '02 6 1/2 - 8 (f) Brunos 10 1/2 '05 18 - 20 (f) CAI Wireless 12 1/4 '02 22 - 25 Cityscape 12 3/4 '04 43 - 47 E & S Holdings 10 3/8 '06 80 - 82 Grand Union 12 '04 52 - 53 (f) Harrah's Jazz 14 1/4 '01 29 - 31 (f) Hechinger 9.45 '12 75 - 76 1/2 Hills 12 1/2 '03 93 - 94 1/2 Great Bay 10 7/8 '04 86 - 87(f) Levitz 9 5/8 '03 43 - 45 (f) Liggett 11 1/2 '99 72 - 75 Marvel 0 '98 4 1/2 - 5 Mobilemedia 9 3/8 '07 11 - 12 (f) Penn Traffic 9 5/8 '05 46 - 47 Royal Oak 11 '06 59 - 61 Trump Castle 11 3/4 '03 95 3/4 - 97 Wickes 11 7/8 '03 95 1/2 - 96 1/2 Retailers carried the week with Hills up sharply, and even Bradlees a little improved. Asia Pulp & Paper bonds rallied nicely. ********* 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 * * *