/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/980904.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, September 4, 1998, Vol. 2, No. 174 Headlines AHERF: Finds Auditor Errors in '97 Records CROWN BOOKS: Hearing Set For 2nd Amendment to DIP CROWN BOOKS: Wins Nod For Return Pact With Ingram DOW CORNING: Settlement Reached Second Class Action Lawsuit DOW CORNING: Term Sheet Issues To Be Settled In Court FOXMEYER: Trustee Seeks $119M From More Suits HARBOR INN: Up For Auction HOMEPLACE STORES: Seeks Exclusivity Extension To Jan. 28 LIBERTY HOUSE: Amended Motion To Retain Cleary, Gottlieb MANDO MACHINERY: Riot Police Called To End Strike NAL FINANCIAL: Order Grants Substantive Consolidation NEW DEAL PROJECTS: Case Summary PHOENIX INFORMATION: Joint Plan of Reorganization REMSEN PARTNERS: Case Summary & 20 Largest Creditors RIVER OAKS FURNITURE: Application to Employ Consultants SAMSONITE: Shareholder Suit Filed SCOOP INC: Seeks Last Date To File Proofs of Claim TOA STEEL: To Liquidate, Sell Assets to NKK UNISON HEALTHCARE: Disclosure Statement WSR CORP: Taps Retail Consulting Services WORLD ACCESS INC: Plan of Cherry Communications Confirmed DLS CAPITAL PARTNERS: Bond Pricing for week of 8-31-98 ********* AHERF: Finds Auditor Errors in '97 Records ------------------------------------------ Allegheny Health, Education and Research Foundation (AHERF) announced that it has found errors in its audited 1997 financial statements and that they are unreliable and should not be used, according to The Post-Gazette. AHERF confirmed that last week it dropped its auditors of more than 100 years, the accounting firm previously called Coopers & Lybrand and now called PricewaterhouseCoopers, following their merger this summer. The review has found at least two discrepancies that increased the foundation's bottom line in the fiscal year ending June 30, 1997: an unspecified liability incorrectly reported as income relating to its acquisition of the former Graduate Health System, and earnings and gains on restricted accounts that were incorrectly counted as revenue and income. Earnings and gains on restricted funds, which typically are endowment funds for specific purposes such as cancer research, must be put back into the account. The '97 statements showed that net assets released from restrictions totaled $47.2 million. CROWN BOOKS: Hearing Set For 2nd Amendment to DIP ------------------------------------------------- On September 17, 1998, the court will consider a motion of the debtors, Crown Books Corporation and its affiliates, for interim and final orders approving the second amendment to DIP loan and security agreement. The amended DIP credit agreement substantially increases the debtors' loan availability to an amount equal to 55% of the debtors' inventory, valued at cost. Under the existing interim DIP credit facility, the debtors' advance rate is 40% of the debtors' inventory, valued at cost. The second amendment will dramatically increase the debtors' liquidity and ability to respond to developments in the publishing industry such as new titles. The debtors believe that the additional availability will encourage the debtors' vendors to deal with the debtors on normal trade credit terms thereby further reducing the debtors' cost of goods and increasing margins. CROWN BOOKS: Wins Nod For Return Pact With Ingram ------------------------------------------------- Crown Books Corp. has received approval for an inventory return agreement with unsecured creditor Ingram Book Co. that grants Ingram junior superpriority administrative status and renews the book supplier's association with the retailer. The court also approved the amount of Ingram's allowed prepetition claim at $12.3 million and authorized Crown to return inventory for a dollar-for-dollar credit against the entire amount of the allowed claim. The court order gives Crown the right to sell Ingram up to 35% of the inventory included in the recently authorized going- out-of-business sales. (Federal Filings Inc. 3-Sept-98) DOW CORNING: Settlement Reached Second Class Action Lawsuit ----------------------------------------------------------- A settlement has been reached in a second class action lawsuit by Canadian women against Dow Corning Corp. over silicon breast implants, attorneys for the women said Wednesday. Under the agreement, Dow Corning and Dow Corning Canada will pay C$39 million to the approximately 4,100 women, who reside everywhere in Canada expect the provinces of Ontario and Quebec, the attorneys said in a statement. The settlement will be part of Dow Corning's bankruptcy reorganization plan and is subject to approval by courts in Michigan and British Columbia, the statement said. Michigan-based Dow Corning in June signed a C$50 million settlement in a separate case brought on behalf of the Ontario and Quebec women. Women to be compensated under the settlement that was announced Wednesday will receive a range of financial benefits depending on the severity of their injuries from silicon gel or saline breast implants made by Dow Corning. According to estimates, some 150,000 Canadian women had breast implants, with about one-third suffering problems. $1=$1.54 Canadian (Reuters:International-09/02/98) DOW CORNING: Term Sheet Issues To Be Settled In Court ----------------------------------------------------- Dow Corning Corp., the official tort claimants' committee, Dow Chemical Co. and Corning Inc. are heading to court next week to resolve a number of outstanding issues in connection with their term sheet agreement. The court- appointed mediator told the court during a brief teleconference yesterday that the parties have been unable to translate their term sheet into a disclosure statement and reorganization plan. The parties are still trying to resolve remaining sticking points. (Federal Filings Inc. 3- Sept-98) FOXMEYER: Trustee Seeks $119M From More Suits --------------------------------------------- FoxMeyer Drug Co.'s Chapter 7 Trustee has filed 35 adversary complaints against 631 defendants seeking about $119 million in damages for claims stemming from, among other things, voidable and preferential transfers. The suits, filed late last month, continue Trustee Bart Brown's crusade to recover funds for the former drug distributor's creditors. As widely reported, Brown previously sued former accountant Deloitte & Touche LLP, German software giant SAP AG, and Andersen Consulting, which installed the SAP software, for $500 million each, claiming that critical acts or omissions by the three firms contributed to FoxMeyer's downfall. The latest round of suits includes 15 complaints claiming breach of contract and quantum meruit that seek to recover $4.7 million in "chargebacks" from 183 named defendants. Alleging that a number of parties also participated in preferential transfers, Brown also is seeking to recover $31.3 million from these defendants. The second group of complaints seeks to void certain prepetition transfers that allegedly occurred from June 7, 1996, to Aug. 23, 1996, and to recover approximately $6.4 million. The third set of suits seeks to void preferential transfers with 440 defendants and recover about $77 million in damages after defenses are taken into account. (The Daily Bankruptcy Review and ABI Copyright c September 3, 1998) HARBOR INN: Up For Auction -------------------------- The Harbor Inn Pier 5, which reopened last year after a $12 million renovation but got caught in the web of its principal owner's bankruptcy, is scheduled to fall under the gavel later this month. The 65-room hotel, part of the once-burgeoning empire of Michael W. Lasky until his Inphomation Communications Inc. television infomercial business filed for bankruptcy protection in February, is set to be auctioned at noon Sept. 18. The scheduled foreclosure auction of the three-story hotel is being brought by a group controlled by H&S Bakery Inc. co-owner John Paterakis Sr., which bought $9 million in debt on the lodging project several months ago. "Either someone will come in and buy the property at auction, or we'll likely buy it back because of our debt interest," said Michael Beatty, a vice president of H&S Properties Development Corp., a Paterakis real estate company and the firm developing the $350 million Inner Harbor East project, including a Wyndham hotel. "We got involved with it to keep the doors open; that was our intention," he added. "It employs a lot of people adjacent to Inner Harbor East and enhances our ability to be connected to the Inner Harbor." Beatty said Paterakis, who attempted to buy the hotel outright in May for $10.6 million, acquired the debt from Emmes Capital, a New York realty operation. In all, the Harbor Inn property has liabilities in excess of $11 million. In addition to the Paterakis debt, the city is owed $2 million and annual ground lease payments of $120,000. The auction of the 711 Eastern Ave. project -- where rooms are marketed for as much as $1,500 per night -- also comes as the Inphomation case's court-appointed trustee is claiming that Lasky funneled money from Inphomation, operator of the Psychic Friends Network, into the hotel, according to court documents. Paul Michael Sweeney, the Linowes & Blocher attorney appointed as Inphomation trustee, declined to comment on the claims yesterday, but said he would "do what we need to do to protect the interests of the bankruptcy estate." Attorneys for Lasky and the hotel could not be reached for comment yesterday. In addition to its rooms, the hotel is home to three upscale restaurants, including seafood eatery McCormick & Schmick's and Lenny's Chop House. "It's a tricky property, because it's not a Marriott or a Sheraton; it's different," Beatty said. "But we believe we could get it up and running, and make it work with another substantial investment. It needs to be run as a boutique; it's not for the person who wants something typical." The city sold the former Harrison Pier Five Inn to Lasky and partner Otis Warren Jr. -- who also made a stab at buying the hotel earlier this year -- for $5.5 million in 1995. After a substantial renovation, the Lasky/Warren partnership opened the Harbor Inn last October. The city took possession of the hotel in late 1993, after the project suffered through years of financial hardship and was delinquent on more than $1 million in property taxes.(Baltimore Sun - 09/01/98) HOMEPLACE STORES: Seeks Exclusivity Extension To Jan. 28 --------------------------------------------------------- HomePlace Stores Inc. is asking the court for a second extension of the exclusive periods to file a reorganization plan and solicit acceptances, to Jan. 28 and March 26, respectively. The home textile and houseware retailer said it has stabilized the business and needs more time to formulate its business plan. In connection with developing the business plan, which will "reinvent" the current model, the company is reconsidering the use of the superstore concept on which HomePlace was founded. A store in the Cleveland market is serving as a model to test various changes being considered for the entire chain as part of the revised business plan. (Federal Filings Inc. 3-Sept-98) LIBERTY HOUSE: Amended Motion To Retain Cleary, Gottlieb ------------------------------------------------------- The Amended Motion for reconsideration of employment and retention of Cleary, Gottlieb, Steen & Hamilton as special counsel to the Board of Directors of Debtor shall be heard on October 9, 1998. MANDO MACHINERY: Riot Police Called To End Strike ------------------------------------------------- South Korean riot police stormed plants owned by the country's largest auto parts producer at dawn on Thursday to end a strike that began last month over planned mass layoffs. A spokesman for Mando Machinery Corp said police stormed all six of its plants, including one in this town southwest of Seoul, and all but a few hundred workers had been dispersed. About 300 workers had fled to a research centre at the plant in Asan, after retreating from the rooftop of one building, where they were besieged by police massed on the floors below. Witnesses said the workers had set up oxygen tanks and doused the entrance to the rooftop with flammable liquids apparently to create an explosive fire if the police came after them. Some 3,000 riot police, backed by a helicopter and anti- riot vehicles, stormed the Asan plant at daybreak. The helicopter sprayed tear gas on the workers. Police vehicles destroyed a pile of rolled steel and other steel structures the height of a two-storey building set up by workers on a bridge leading to the main gate of the plant, the witnesses said. About 500 family members of workers, mostly women and children, formed a human barricade inside the factory compound, which police evaded. As police moved in, workers occupying buildings wielded steel pipes and threw molotov cocktails, the witnesses said. No serious injuries were reported. Mando Corp spokesman Chong Hee-chun said workers had been dispersed at the other five plants owned by Mando and the last pocket of resistance was at the research centre. About 120 workers were arrested at the other plants, he said. Chong said Mando officially notified the labour ministry on Wednesday of its plan to lay off 1,090 workers. Some 4,500 unionised workers at Mando have been on strike since August 17 in protest against the plan. Mando, a core unit of the collapsed Halla Group, went bankrupt late last year and the company's planned layoffs are part of a rescue plan. (Reuters:International - 09/03/98) NAL FINANCIAL: Order Grants Substantive Consolidation ----------------------------------------------------- On August 25, 1998, Judge Paul G. Hyman entered an order granting the motion of the debtor, NAL Financial Group, Inc. and its affiliates including, NAL Acceptance Corporation, NAL Insurance Services, Inc., NAL Mortgage Corporation, Performance Cars of South Florida, Inc., Special Finance, Inc. and Autorics, Inc., for substantive consolidation of debtor affiliates NAL Insurance Services, NAL Mortgage Corporation, Performance Cars of South Florida, Inc. and Special Finance, Inc. into NAL Acceptance Corp. and granting the debtors' motion for the substantive consolidation of all similar claims of the debtors into a single set of classes of claims as though there existed a single debtor. NEW DEAL PROJECTS: Case Summary ------------------------------- Debtor: New Deal Projects, LLC c/o Francis A. Zarro, Jr. Manager, 375 Park Ave. New York, N.Y. 10022 Type of business: Owns and develops a golf facility previously know as the Segalla Country Club in Amenia, New York 12501 Court: Southern District of New York Case No.: 98B46176 Filed: 08/27/98 Chapter: 11 Debtor's Counsel: william R. Kohler Kohler & Barnes, P.C. 805 Third Avenue, 10th Floor New York, NY 10022 (212) 826-8100 Total Assets: $17,225,000 Total Liabilities: $10,056,000 20 Largest Unsecured Creditors: None PHOENIX INFORMATION: Joint Plan of Reorganization ------------------------------------------------- Phoenix Information Systems Corp., Phoenix Systems Ltd. and Phoenix Systems Group, Inc. as debtors and SC Phoenix Partners and Xenophi Limited propose a joint plan of reorganization. On February 5, 1998, the court approved the sale of substantially all of the debtors' assets to SC Phoenix for $20 million. Except with respect to the Common Stock Settlement, the plan provides for the distribution of the assets of the estates pursuant to the priority rules of the Bankruptcy Code. Those assets consist of the cash provided by SC Phoenix pursuant to the assets sale minus operating expenses and Avoidance Actions. Absent the Common Stock settlement, the debtors' assets are distributed: first, to pay Allowed Administrative Expense Claims, Priority Tax Claims and Priority Claims in full; second, to the extent of any collateral therefor, to pay Allowed Secured Claims, if any, in full; third to pay Allowed General Unsecured claims in full; and fourth, as to Phoenix, to the extent of any remaining assets, to pay the Preferred stock Interests in the amount of their full liquidation preference plus accrued dividends. Thereafter, Phoenix shall distribute its remaining assets, if any, to the holders of Allowed Subordinated Claims and the holders of Phoenix Common Stock Interests. The debtors do not believe any cash will be available for those two groups of holders. After the Effective Date, Phoenix and PSG shall dissolve, and PSL shall reorganize. The interests in Phoenix and PSG shall be cancelled and PSL, having received a discharge of all debts shall continue to exist as Reorganized PSL with the retention by Xenophi of all of the interests in Reorganized PSL (with any excess cash held by PSL from the Asset Sale to be paid to Phoenix.) The debtors believe that the reorganization plan and the Common Stock Settlement is the only way in which participating shareholders can expect to receive value through the debtors' reorganization without litigation. The Common Stock Settlement provides participating shareholders with potential "upside" in Xenophi, which owns all beneficial interests in the joint venture with China Southern Airlines. The debtors also believe that common stock settlement certificates compare favorably to warrants. Classification and Treatment of Claims and Interests are as follows: Class 1: Priority Claims - unimpaired Class 2: Secured Claims - impaired. Claim holders will receive cash or a distribution in a different form equal to the amount of the Allowed Claim. Class 3: General Unsecured Claims - impaired. Pro rata distribution. Class 4: Preferred Stock Interests in Phoenix - impaired. Class 5: Subordinated Claims - impaired. Class 6: Common Stock Interests - impaired. REMSEN PARTNERS: Case Summary & 20 Largest Creditors ---------------------------------------------------- Debtor: Remsen Partners, Ltd. 757 Third Ave. New York, NY 10017 Type of business: Service business, principally engaged in the origination and sale of commercial mortgages into the REMIC market. Court: Southern District of New York Case No.: 98B 46328 Filed: 09/02/98 Chapter: 11 Debtor's Counsel: Allan Pullin Weber, Pullkin & Carbo, LLP 7600 Jericho Turnpike Woodbury, New York 11797 (516) 364-7500 Total Assets: $2,123,403 Total Liabilities: $4,024,667 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ Stephen A. Goldberg Company Law Suit $1,200,000 Merrill Cohen, Trustee Claim $1,000,000 William Teitelbaum Cash Advance $500,000 Southern Management Corp Law Suit $500,000 Madesin General Contractors Guarantee $200,000 Oaks at Brittany, Ltd. mortgage $175,000 Shaw Lichna, Esemio Legal Fees $148,328 Cohen & Grigsby Legal Fees $48,172 757 Third Avenue LLC Rent $32,328 Wesley Peaker Commissions $30,000 National Record Mart Ins. Premiums $24,516 Reed, Smith, Shaw & McClay Legal Fees $23,622 Steward J. Brown Compensation $20,000 Patrick O'Conner & ASSoc. Appraisal $15,500 Silberdick & Peritz Acctg. Fees $15,500 Certified Environments, Inc. Env. Reports $11,200 Rubenstein Associated services $10,000 Kaye, Scholer, Fierman Legal fees $8,418 Scribner & Partners Appraisal $7,622 Mehlamn & Greenblat, LLC legal fees $7,134 RIVER OAKS FURNITURE: Application to Employ Consultants ------------------------------------------------------- The debtor, River Oaks Furniture, Inc. applies to retain consulting experts, Mark Murovitz, Jay Looney, Gary French Deborah Smith Cristie and Monroe Wright to assist in certain litigation. The hourly rates of the experts range from $300 to $150. BNY Financial Corporation shall make funds available to the debtor to pay these fees. SAMSONITE: Shareholder Suit Filed --------------------------------- Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following: A class action has been commenced in the District of Colorado on behalf of all persons who purchased the common stock of Samsonite Corp. between June 4, 1997, and August 11, 1998, inclusive. The complaint charges Samsonite, certain officers and directors of the company, and a large shareholder during the relevant time period with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Among other things, plaintiff claims that defendants issued a series of materially false and misleading statements regarding the company's financial condition and the success of its restructuring program during the Class Period. The Complaint alleges that defendants materially overstated revenues and net income throughout the Class Period by utilizing certain misleading accounting practices. As a result of defendants false and misleading statements, the price of Samsonite common stock was inflated during the period from June 4, 1997, through August 11, 1998, to a high of more than $53. It has now fallen to $6 per share. SCOOP INC: Seeks Last Date To File Proofs of Claim ------------------------------------------------- Scoop Inc. seeks entry of an order requiring all claimants to file proofs of claim or interest for any and claims or interests they may have against the debtor or its estate within 30 days after the service of written notice of the Bar Date. The hearing on the motion to sell substantially all of its assets of Scoop Media Services division is scheduled for August 31, 1998. The hearing on the motion of the sale of substantially all of the assets of Scoop Information services Division is scheduled for September 17, 1998. If the court approve the sale motions, the debtor will obtain $1,750,000 in consideration, an amount which should be sufficient to pay close to 100% of the amount of the estimated claims in this case. In order to make a distribution to creditors, the debtor will need to obtain accurate information regarding the amount of claims in this case. Setting a Bar Date for longer than thirty days in this case will serve only to delay unnecessarily and with no corresponding benefit the process of making distributions to creditors in this case. TOA STEEL: To Liquidate, Sell Assets to NKK ------------------------------------------- Toa Steel Co., Japan's second-largest electric- furnace steelmaker, decided Thursday to liquidate the company and hand over most of its assets, operations and workers to a company to be set up by its parent NKK Corp., Toa officials said. Toa approved the liquidation plan at an extraordinary board meeting hurriedly convened Thursday night, the officials said. Toa made the decision in view of its large capital deficit, they said, adding the company's total liabilities are estimated to eclipse its combined assets by 46 billion yen as of March 31, 1999, the end of fiscal 1998. The extent of Toa's liabilities totals 250 billion yen, the Toa officials said. This would make Toa the largest manufacturer to go bankrupt in terms of liabilities in Japan's postwar history, exceeding that of Mita Industrial Co., a photocopier maker that filed for court protection from creditors last month. The officials said the timing of the liquidation was set at March 31, 1999. Until then, Toa will continue its production and marketing operations under the current corporate structure, they said. But some facilities at Kashima Steelworks in Ibaraki Prefecure, one of the company's main steelworks, will be suspended by the year-end, they said. Toa Steel is expected to rack up a 25.5 billion yen pretax loss for fiscal 1998 on an unconsolidated basis, the officials said. In the previous fiscal year that ended March 31 this year, Toa marked the fourth consecutive year of unconsolidated pretax losses. Its pretax loss of 24.03 billion yen in the year came on sales of 131.19 billion yen. The Toa officials said NKK is planning to establish a new wholly owned subsidiary and have it take over part of Toa's production facilities, workers and other assets following its dissolution. NKK owns 51.5% of Toa, which employs 1,400 people. In February this year, NKK boosted its equity stake in Toa from 36% to 51.5% to help support Toa's rehabilitation efforts. According to Teikoku Databank, a leading credit research company, NKK plans to report an extraordinary loss of more than 50 billion yen in the current fiscal year, ending March 31, 1999, due to the liquidation of Toa. Toa was established by the merger of Azuma Steel and Toshin Steel -- both NKK subsidiaries -- in October 1987, and has diversified its product lines since then. But the company has been burdened by interest payments on loans it took out for capital investment for production facilities. Toa's plight has surfaced at a time when the nation's entire steel-making industry is languishing under slumping demand from both domestic and Asian corporate users. On Thursday afternoon, the Tokyo Stock Exchange (TSE) halted trading in the shares of Toa and NKK, both listed on the First Section, after newspaper reports that Toa is liquidating. (Kyodo-09/03/98) UNISON HEALTHCARE: Disclosure Statement --------------------------------------- The debtors, Unison HealthCare Corporation, and BritWill Investments-I, Inc., filed a disclosure statement with the court in support of the debtors' joint plan of reorganization dated August 10, 1998. The plan provides for the substantive consolidation of debtors' assets and liabilities. The plan provides for distributions to the creditors of the thirty-three companies that are the debtors. The plan will satisfy a substantial portion of the general unsecured claims (Class 9), the allowed Class 6 and 7 Claims, as well as Allowed Equity Interests and Equity Interest Related Claims pursuant tot he issuance of the New Common Stock and the New Warrants. Reorganized Unison will retain its existing corporate structure. The claims of general unsecured creditors of the debtors are classified in Class 8 and 9 under the plan. Class 8 includes those creditors holding claims of $1,000 or less. Approximately $690,000 in claims held by 1,500 creditors will elect Class 8 treatment. Class 8 will receive a cash payment by the debtors of an amount no greater than $600,000. All other general unsecured claims are classified in Class 9. The company estimates that the aggregate amount of allowed general unsecured claims in Class 9 is approximately $139,836,000. Of this amount debtors estimate that approximately $700,000 is attributable to the claims of landlords under facility leases previously closed by the company. With respect to Class 9 the plan provides that such creditors will receive a pro rata distribution of approximately 5,635,400 shares of the New Common Stock, their pro rata distribution of claims litigation LLC shares and their pro rata share of the New Senior Notes. WSR CORP: Taps Retail Consulting Services ----------------------------------------- The debtors, WSR Corporation, R&S/Strauss, Inc., National Automotive Stores, Inc. and National Auto Stores Corp., are seeking authorization and approval of the employment and retention of Retail Consulting Services, Inc. as real estate consultant to the debtors. The debtors seek to employ Retail Consulting Services ("RCS")to assist the debtors in renegotiating lease terms for desirable locations with the objective of assuming such leases, as modified. The debtors are also filing a separate motion to employ and retain Keen Realty Consultants as special real estate consultant for the purpose of evaluating and marketing the debtors' interests in certain leaseholds at locations which the debtors, in their business judgment, believe should not be retained in their lease portfolio because of their poor financial performance. The debtors will pay RCS a retainer of $15,000. RCS will receive a fee based upon the savings in rent achieved as a result of their services if the renegotiated terms and conditions are acceptable to the debtors. RCS will be entitled to 4% of the savings realized on each renegotiated lease upon calculating the savings at the present value using a discount rate of 9%. WORLD ACCESS INC: Plan of Cherry Communications Confirmed --------------------------------------------------------- World Access, Inc. announced today that the United States Bankruptcy Court of the Northern District of Illinois, Eastern Division, has confirmed the Plan of Reorganization of Cherry Communications Incorporated, d/b/a Resurgens Communications Group. The Plan incorporates the terms of the definitive agreement entered into earlier this year by World Access to acquire Resurgens, a facilities-based provider of international network access. Steven A. Odom, Chairman and Chief Executive Officer, said "The confirmation of the Plan satisfies a significant condition to the consummation of the Resurgens acquisition, which is expected to occur in the near future. This acquisition will uniquely position World Access to offer telecommunications service providers a complete network solution, including proprietary equipment, planning and engineering services and access to international long distance. The international network access offered by Resurgens is a critical element of new and expanded networks currently being planned or implemented by many of our customers. World Access is beginning to realize significant synergies as a result of the Resurgens acquisition, including equipment sales to Resurgens customers, potential joint ventures with international PTTs and CLECs, and carrier service revenues form World Access equipment customers." John D. Phillips, Chairman and Chief Executive Officer of Resurgens, commented, "We are extremely pleased that Resurgens' creditors have embraced our plan of reorganization, an integral part of which is the merger with World Access. We have rebuilt Resurgens' operating network and implemented new, reliable billing systems and a 24-hour 7-day Network Operations Center. Competitive, dedicated bandwidth and transit agreements are now in place to carry traffic to all key regions of the world and Resurgens is now carrying extensive international traffic for WorldCom and numerous other long-distance companies." DLS CAPITAL PARTNERS: Bond Pricing for week of 8-31-98 ------------------------------------------------------ Following are indicated prices for selected issues: Amer Pad & Paper 13 '05 56 - 60 Amer Telecasting 0/14 1/2 '04 24 - 26 Asia Pulp & Paper 11 3/4 '05 55 - 57 Boston Chicken 7 3/4 '04 14 - 16 Brazos 10 1/2 '07 46 - 49 Brunos 10 1/2 '05 13 - 15 (f) CAI Wireless 12 1/4 '04 27 - 30 Cityscape 12 3/4 '04 15 - 17 (f) E & S Holdings 10 3/8 '06 60 - 63 Harrah's Jazz 14 1/4 '01 22 - 25 (f) Hechinger 9.45 '12 73 - 75 Hills 12 1/2 '03 52 - 54 Liggett 11 1/2 '99 72 - 75 Mobilemedia 9 3/8 '07 20 - 23 (f) Penn Traffic 9 5/8 '05 17 - 19 Royal Oak 11 '06 50 - 54 Service Merchandise 9 '04 61 - 63 Sunbeam 0 '18 18 - 19 Zenith 6 1/4 '11 30 - 32 (f) ********* 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. ISSN 1520-9474. 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 * * *