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/raid1/www/Hosts/bankrupt/TCR_Public/980624.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, June 24, 1998, Vol. 2, No. 123 Headlines AL TECH SPECIALTY STEEL: Stipulation Presented ANESTHESIA SOLUTIONS: Case Summary & 20 Largest Creditors BARNEY'S: Dickson Concepts' Income Plummets Amid Turmoil BARRY'S JEWELERS: Order Approves Rejection of Leases BRUNO'S: Hearing Set on Sale BUILDER'S TRANSPORT: TIP, GE Capital and Textron Seek Rent DOW CORNING: Mediator To Present Report July 1 FPA MEDICAL: Considers Chapter 11 GIBSONS: Objection to Debtors' Disclosure Statement GULF RESOURCES: Trustee's Motion to Sell Real Property GUY F. ATKINSON: Seeks Authority for Auction LONG JOHN SIVER: Trustee Names Creditor Panel MAIDENFORM: Seeks Five-Month Exclusivity Extension PAN AM: Agreed Motion to Approve Assumption of Lease PETRIE RETAIL: Wins Nod To Settle $15M IRS Claim RELIANCE ACCEPTANCE: Hearing Set to Consider Confirmation UPLAND THEATER: Owner Files Chapter 13 to Prevent Eviction VITALE ENTERPRISES: Withdraws Motions for BDO Seidman WESTERN FIDELITY FUNDING: Order Approves Gelt, Fleishman WESTMORELAND COAL: May Not File New Disclosure Statement ********* AL TECH SPECIALTY STEEL: Stipulation Presented ---------------------------------------------- Korea Exchange Bank Los Angeles , a creditor of the estate of AL Tech Specialty Steel Corporation, debtor, will present a Stipulation agreed to between the parties consenting to the lifting of the automatic stay. The amount due and outstanding to Korea Exchange Bank was $1.907 million. The automatic stay will be lifted with respect to certain Real Property valued at $1.5 million, and the proof of claim filed by the Korea Exchange Bank will be withdrawn. ANESTHESIA SOLUTIONS: Case Summary & 20 Largest Creditors --------------------------------------------------------- Debtor: Anesthesia Solutions 2171 Sandy Drive State College, PA 16805 Type of business: Provider of anesthesia services at various hospitals Case No.: 1-98-03039 Filed: 06/18/98, Harrisburg, PA Chapter: 11 Debtor's Counsel: Stevens & Lee 111 North Sixth Street PO Box 679 Reading, PA 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ Nat'l Century Financial Enterprises Bank Loan 2,424,310 Southcoast Hospitals Group Trade Debt 232,117 Best Western Rose " 11,967 Graphic Craft Corporation " 64,060 United Anesthesia Assoc. " 5,772 American Ass. of Nurse Anes. " 5,052 SW Hospital Consultants Inc " 4,955 Vanier " 4,887 Accent Insurance Recovery Sol. " 4,146 McMahon Publishing Group " 3,527 American Hospital Assoc " 2,694 United Van Lines " 2,360 Adena Health System " 2,349 Manatee Anesthesia " 2,201 Ikon Office Solutions Inc " 1,957 Nationwide Anesthesia Ser., Inc. " 1,800 NCE Computer Group " 1,729 IBM Corporation " 1,603 Spectrum Phy. Allied Health SVS " 5,726 Maritz Travel Co-Regional CTR " 1,940 BARNEY'S: Dickson Concepts'Income Plummets Amid Turmoil ------------------------------------------------------- Upmarket retailer Dickson Concepts International has been hit with the full impact of the regional financial crisis, reporting a plunge in net profit to $16.25 million this year and a $204.38 million provision for its Asia investments. Chairman Dickson Poon said: "The group's operations in Hong Kong faced difficult trading conditions, as consumer spending slowed and retailers started deep markdowns at an exceptionally early stage. "As a result, margins were greatly affected." During the period, provisions were made for the closure of loss-making outlets around Asia, restructuring mainland operations and devalued assets. "We made the provisions on the most conservative basis for all investments in Asia and China," Mr Poon said, adding similar provision levels were unlikely in the year to March 31. He said the group's mainland wholesale division had been relocated to Hong Kong, while "some" wholly owned outlets had been converted into franchise stores. Operating profit was almost halved to $341.53 million from $635.03 million. Despite this, the final dividend remained unchanged at 63 cents, making the full-year payout 93 cents, the same as last year (excluding a six-cent special dividend in the previous year). Net profit for the year to March was not comparable to a $1.34 billion net profit in 1997, which included a $901.14 million one-off gain from spinning off subsidiaries in Europe. The group's Paris-based retailing arm, ST Dupont, slipped to a net loss, but London-based Harvey Nichols Group saw profit growth while Hong Kong Seibu started to generate profit. Analysts were generally disappointed with the performance and were stunned by the size of the one-off loss. ST Dupont, which distributes luxury lighters and pens, recorded a $121 million net loss last year, compared with a $47 million net income in the previous year. The loss included provisions of nearly $122 million. Harvey Nichols' profit before taxation rose 16.8 per cent to $186 million,which prompted the company to seek to open its third store in Scotland this year. In spite of the detrimental impact of regional markets on the group's performance, Dickson holds about $1 billion cash on hand. Mr Poon said Dickson was still interested in acquiring United States-based bankrupt retailer Barney's, even though Barney's creditors last month rejected Dickson's US$130 million offer. The creditors planned to launch their own restructuring proposal. BARRY'S JEWELERS: Order Approves Rejection of Leases ---------------------------------------------------- On May 15, 1998 Judge Vincent Zurzolo approved the motion of the debtors, Barry's Jewelers, Inc. and its affiliates to reject certain leases. The leases were former store locations at the Inlet Square, Murrells Inlet, So. Carolina; Santa Maria Town Center, Santa Maria, California; Southpark Mall, Strongsville, Ohio; Mill Creek Mall, Erie Pennsylvania; First Colony Mall, Sugarland, Texas. BRUNO'S: Hearing Set on Sale ---------------------------- A hearing on the previously filed motion of the debtors, PWS Holding Corporation, Bruno's Inc. et al., for authorization to sell undeveloped parcels in Hoover, Alabama and Atlanta, Georgia has been rescheduled to be held on June 22, 1998. BUILDER'S TRANSPORT: TIP, GE Capital and Textron Seek Rent ---------------------------------------------------------- Transport International Pool, Inc. (TIP) filed a motion in the case of Builders Transport, Inc. and its affiliates, as debtors, seeking to compel the payment of rent and/or adequate protection and/or modification of the automatic stay. TIP is engaged in the leasing of trailers on leases and short-term rental agreements. The debtor operates as a motor carrier of general freight and leases 47 trailers at the rate of $275. per month. In a separate filing, Textron Financial Corporation, filed a brief in support of its motion to compel payment of rent and/or adequate protection. Textron is the assignee of a Master Lease Agreement for 100 trailers. The base rent in $25,133 for a period of 84 months. The acquisition cost of the trailers is $1,796,600. The debtor is in arrears on both the TIP leases and the Textron leases. Both creditors argue that the trailers are depreciating as a result of the use of the vehicles with no value being paid to the creditors. In another filing General Electric Capital Corporation filed a motion to compel payment of rent and/or adequate protection for the 369 trailers and 325 tractors that it leases to the debtors. The aggregate monthly payment due from the debtor is $540,156. The debtor's arrearage is in excess of $1 million. In all three instances the creditors are arguing the true lease versus security agreement issue. DOW CORNING: Mediator To Present Report July 1 ---------------------------------------------- Dow Corning Corp.'s court-appointed mediator, Francis McGovern, will present his report to U.S. Bankruptcy Judge Arthur Spector on July 1. At a status conference June 18, McGovern told Judge Spector that he is encouraged by the intense negotiations, which are continuing behind closed doors. To permit these talks to continue, McGovern urged Judge Spector not to issue the ruling he drafted on the tort committee's bid to modify the former silicone implant maker's exclusivity. (The Daily Bankruptcy Review 23-June-98; ABI 23-June-98) FPA MEDICAL: Considers Chapter 11 ---------------------------------- FPA Medical Management Inc., San Diego, said yesterday that it may file a pre-packaged chapter 11 later this year and that it is in discussions with its bankers about a liquidity crisis, according to Reuters. A pre-packaged filing could be part of an agreement with banks and strategic investors to restructure the company’s capital structure. FPA is in negotiations with its senior bank group to obtain additional financing and waivers and modifications to part of its bank deal. The company also is trying to release certain collateral in some states to facilitate its exit from unprofitable markets. (ABI 23- June-98) GIBSONS: Objection to Debtors' Disclosure Statement --------------------------------------------------- Certain Landlords, Chaffin, Inc., Gary Chaffin, Charlotte Chaffin, Bill Chaffin and Nona Chaffit, object to the Disclosure Statement of Gibsons Discount Centers, Inc., et al. The Landlords state that the Disclosure Statement does not contain adequate information. The Disclosure Statement contains numerous blanks, including one which references the amount and terms of the exit financing needed to implement the Plan. The Disclosure statement also references an attached schedule of leases to be rejected, but no such schedule is attached. GULF RESOURCES: Trustee's Motion to Sell Real Property ------------------------------------------------------ Charles E. Bearden, the Chapter 11 Trustee in the Gulf Resources bankruptcy case, filed a motion to sell real property of Mustang Oil & Gas Corporation, debtor, to Black Family Partnership. The sale price is $650,000. Endowment Energy Partners, LP holds a lien on the property in excess of $1.66 million. $630,000 will be distributed to EEP. GUY F. ATKINSON: Seeks Authority for Auction -------------------------------------------- On July 20, 1998 a hearing will be conducted to sell the Turlock Assets by auction pursuant to a motion by Guy F. Atkinson and its affiliates, as debtor. The assets offered for sale is a parcel of real property of approximately 38.8 acres in Turlock, California and items of construction equipment, materials, tools and supplies. For Lot 1 - the Turlock real property there is an opening bid of $600,000. For Lot 2 - the construction equipment there is an opening bid of $1.4 million. Lot 3 - A combination of Lot 1 and 2 - there is an opening bid by Ritchie Bros. Auctioneers for $1.82 million. Incremental overbids shall be in an amount in excess of the last and highest bid by $35,000. LONG JOHN SIVER: Trustee Names Creditor Panel --------------------------------------------- The U.S. Trustee has appointed an official committee of Long John Silver's Inc.'s unsecured creditors: Western International Media Corp. of Sherman Oaks, Calif.; ProSource Services Corp. (d/b/a ProSource Distribution Services) of Coral Gables, Fla.; Strottman International Inc. of Irvine, Calif.; Tyson Foods Inc. of Springdale, Ark.; ConAgra Inc. of Geneva, Ill.; Jordan McGrath Case & Partners of New York, N.Y.; and KFC National Purchasing Cooperative Inc. (d/b/a FoodService Purchasing Cooperative) of Louisville, Ky. The committee retained Siegel Sommers & Schwartz as counsel. (The Daily Bankruptcy Review 23-June-98; ABI 23-June-98) MAIDENFORM: Seeks Five-Month Exclusivity Extension -------------------------------------------------- Maidenform Worldwide Inc., seeking a five-month exclusivity extension, said it is unable to meet the financial forecasts in its 1998 business plan due to the March fire that destroyed a sewing plant in the Dominican Republic. "Consequently, the Debtors have had to set new benchmarks for evaluating the performance of their businesses in 1998, and thus will require more time to demonstrate the core earnings and cash flow generating power of their rehabilitated businesses," the intimate apparel maker said. After establishing that track record, Maidenform will be in a position to begin the valuation and feasibility analysis for development of a reorganization plan. (Federal Filings Inc. 22-June-98) PAN AM: Agreed Motion to Approve Assumption of Lease ---------------------------------------------------- Pan American Airways Corp. and Pan American World Airways, Inc. are seeking approval of the assumption and assignment of the debtors' office building leases at Airport Commerce Park, Dania Florida. PETRIE RETAIL: Wins Nod To Settle $15M IRS Claim ------------------------------------------------ Petrie Retail Inc. won court approval to settle the Internal Revenue Service's alleged $15 million administrative claim for less than $800,000, half of which will be paid by the Petrie Stores Liquidating Trust (PSLT) under a related stipulation. The settlement with the IRS "eliminates a costly barrier to the successful resolution of these chapter 11 cases," the apparel retailer asserted. The settlement will allow Petrie to satisfy millions of dollars in administrative and priority tax claims that the IRS asserted against Petrie and PSLT in return for allowing PSLT an administrative claim of less than $400,000. (Federal Filings Inc. 22-June-98) RELIANCE ACCEPTANCE: Hearing Set to Consider Confirmation --------------------------------------------------------- The hearing to confirm the plan of Reliance Acceptance Group, Inc., et al, will commence on the 30th of June, 1998. June 19, 1998 was the last date for filing objections to the confirmation of the plan. UPLAND THEATER: Owner Files Chapter 13 to Prevent Eviction ---------------------------------------------------------- Sherry Kinison, owner of the Upland, Calif., Theater at the Grove in Upland Town Center, has filed for chapter 13 protection to prevent the eviction of her theater from the building, according to The Business Press. The former sister-in-law of the late comedian Sam Kinison, she filed for protection to seek more time to resolve disputes over her attempts to buy the building. Kinison said she has been wrongfully targeted for eviction from the building, which she leased eight years ago with an option to buy. Her petition lists liabilities of about $600,000, which she pledged to repay in full if she has income from the theater to execute the chapter 13 reorganization plan. Kinison said the theater has become a "cultural mainstay" in the community, and a local chamber of commerce official agreed. (ABI 23-June-98) VITALE ENTERPRISES: Withdraws Motions for BDO Seidman ------------------------------------------------------ Edward J. LoBello, attorney with the law firm Tenzer Greenblatt LLP, and attorney to Vitale Enterprises, Inc., sent a letter stating that the debtors have withdrawn their motion seeking to compel BDO Seidman to produce documents, holding BDO Seidman in contempt, and imposing sanctions. WESTERN FIDELITY FUNDING: Order Approves Gelt, Fleishman --------------------------------------------------------On June 17, 1998, Judge Roland J. Brumbaugh approved the application of the debtor, Western Fidelity Funding, Inc. to hire Gelt, Fleishman & Sterling PC as attorney for the debtor, nunc pro tunc to May 19, 1998. WESTMORELAND COAL: May Not File New Disclosure Statement -------------------------------------------------------- Westmoreland Coal Co. probably will not submit a new disclosure statement to replace the one the company withdrew earlier this month, opting instead to appeal the ruling on benefit plan claims that rendered its reorganization plan infeasible. Westmoreland also will challenge confirmation of the plan proposed by the United Mine Workers of America Pension and Benefit Funds(Funds). Meanwhile, the court has approved the Funds' disclosure statement, which will be sent out by June 26 with minor modifications. Because the Funds' plan does not provide any recovery for equity holders, the U.S. Trustee's office is considering forming an equity committee. (Federal Filings Inc. 22-June-98) ********* The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. 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 * * *