/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/981229.MBX T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, December 29, 1998, Vol. 2, No. 252 Headlines ACCESS BEYOND: Schedules & Statements to be Filed January 8 AMERICAN RICE: October Operating Results AMERITRUCK DISTRIBUTION: Reduces Secured Debt by $3.7 Million AMERITRUCK DISTRIBUTION: Walks Away From Mercedes Benz Leases ARIMETCO, INC.: Third Amended & Restated Plan Proposed ARROW AUTOMOTIVE: Urges Limits on PricewaterhouseCoopers' Service CELLPRO, INCORPORATED: Committee Retains Cairncross as Counsel CODED COMMUNICATIONS: Court Approves Interim Cash Collateral Use COMMERCIAL FINANCIAL: Court Okays Amended Collection Contracts CRIIMI MAE: Criimi Mae Management, Inc., Retains Separate Counsel DIRECT TRANSIT: Streamlining Resolution of Disputed Claims FASTCOMM COMMNUNICATIONS: Company Comments About Amended Plan FLUSHING HOSPITAL: New York Hospital Weighing Takeover Plans GREATE BAY: Seeks Court Approval To Hire New CEO GULFSIDE CASINO: Bankruptcy Cases Dismissed Following Copa Sale HOSPITAL STAFFING: Tennessee Resolves Disputes with Government HOSPITAL STAFFING: Debtors Oppose Creditors' Auction Proposal IMARK TECHNOLOGIES: Files Plan & Disclosure Statement INTERNATIONAL WIRELESS: Circulating Disclosure Statement JOTAN, INC.: Obtains Interim Authority to Use Cash Collateral JUMBOSPORTS INC.: Files Chapter 11 Petition KNIGHT EQUIPMENT: Committee Retains Oppenheimer Blend as Counsel L.A. GEAR: Professionals' Final Applications for Compensation LEVITZ FURNITURE: Selling Springdale Property for $5.3 Million LIBERTY HOUSE: 365(d)(4) Extension Requested to May 31, 1999 MARTIN COLOR-FI: Authority to Use NationsBank's Cash Collateral MCGINNIS PARTNERS: Amends Schedules of Assets and Liabilities MOBILEMEDIA COMMUNICATIONS: Putnam-Led Group to Fight Plan NU-KOTE HOLDING: Phillip L. Theodore as Responsible Officer NU-KOTE HOLDING: Open-Ended 365(d)(4) Extension Requested OILEX, INC.: Case Converts from Chapter 11 to Chapter 7 PEGASUS GOLD: Harrison Goldin Approved as Special Consultant PHILIP SERVICES: Carl Ichan Threatening to Force Bankruptcy PHP HEALTHCARE: Debtor's Motion to Terminate 401(k) Plan PHP HEALTHCARE: Sells Interest in Virginia Chartered Health Plan RAND ENERGY: Rejecting Shell Western Lease for Better Deal READING CHINA: Logan & Company Appointed As Claims Agent REGIONAL HEALTHCARE: Acquired by Health Management Associates RIO GRANDE: Cox & Smith Approved as Debtor's Counsel SOUTHERN PACIFIC: CIBC Oppenheimer Advises Creditors' Committee SUNBELT NURSERY: Minor Modifications to Plan of Liquidation TIE/COMMUNICATIONS: January 20 Disclosure Statement Hearing UNISON HEALTHCARE: Creditors Vote to Accept Debtors' Plan UNITED FINANCIAL: Objection to Entry of Final Decree VAN LEUNEN'S: Balloting Commences on Liquidating Plan VITANTONIO PRODUCTS: Involuntary Petition Filed WESTMORELAND COAL: Court Dismisses Chapter 11 Cases Meetings, Conferences and Seminars ********* ACCESS BEYOND: Schedules & Statements to be Filed January 8 ----------------------------------------------------------- Accepting the Debtors' arguments that they need additional time to file their Schedules of Assets and Liabilities and Statements of Financial Affairs, Judge Walrath granted Access Beyond Technologies, Inc., and its Hayes-related debtor-affiliates a further extension of time, pursuant to Rule 1007 of the Federal Rules of Bankruptcy Procedure, through January 8, 1999. AMERICAN RICE: October Operating Results ---------------------------------------- In its Monthly Operating Report filed with the Bankruptcy Court in Corpus Christi for the month ending October 31, 1998, American Rice, Inc., reports a $2.4 million net loss on $25.1 million in revenues. AMERITRUCK DISTRIBUTION: Reduces Secured Debt by $3.7 Million ------------------------------------------------------------- The Honorable Harold C. Abramson approved a $3.7 million sale of trailers by AmeriTruck Distribution Corp. to Transport Investments, L.L.C. The proceeds of the sale will be used to reduce secured debts owed to FINOVA Capital Corporation and HighwayMaster Corporation. AMERITRUCK DISTRIBUTION: Walks Away From Mercedes Benz Leases ------------------------------------------------------------- To reduce its monthly lease payments by $136,662 per month, AmeriTruck Distribution Corp. moves the bankruptcy court in Dallas for authority to reject 104 tractor trailer leases with Mercedes Benz Credit Corporation. The Debtor indicates that Mercedes was unwilling to make any meaningful lease concessions. The Debtor continues to negotiate concessions with other lessors. ARIMETCO, INC.: Third Amended & Restated Plan Proposed ------------------------------------------------------ Arimetco, Inc., obtained approval of its Supplemented Second Amended and Restated Disclosure Statement filed in support of its Third Amended and Restated Plan of Reorganization dated December 4, 1998. The Plan contemplates full repayment of creditors' claims in accordance with the statutory priority scheme from the proceeds of sales of the Debtor's Mining Properties which, the Debtor believes, will exceed the Company's debt obligations. The Creditors' Committee will continue to exist following confirmation and will work with the Reorganized Debtor to aggressively market and sell the Mining Properties. Creditors must cast their ballots to accept or reject the Debtor's plan by January 6, 1999, to have them counted; the bankruptcy court in Tucson will consider confirmation of the Plan at a hearing on January 13, 1999. ARROW AUTOMOTIVE: Urges Limits on PricewaterhouseCoopers' Service ----------------------------------------------------------------- Concerned about duplication of services by multiple professionals retained in its chapter 11 case pending before the Bankruptcy Court in Boston, Arrow Automotive Industries, Inc., asks that the scope of services to be provided by PricewaterhouseCoopers to the Official Committee of Unsecured Creditors be limited to exclude services already provided by the Company's accountants and financial advisors. The Company has no objection to paying for the Committee to obtain advice from an independent financial advisors nor with PricewaterhouseCoopers' competence. Rather, the Debtors do not want to pay for two financial advisors to produce the same reports from the same source documents, arguing that financial reporting costs will double without any corresponding benefit. CELLPRO, INCORPORATED: Committee Retains Cairncross as Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Cellpro, Incorporated, has selected the Seattle-based law firm of Cairncross & Hempelmann, P.S., as its counsel. John R. Rizzardi, Esq., leads the engagement. CODED COMMUNICATIONS: Court Approves Interim Cash Collateral Use ---------------------------------------------------------------- Judge Walrath granted interim authority to Coded Communications, Inc., and its debtor-affiliates, to continue using cash collateral securing approximately $487,000 of pre-petition obligations to Comerica Bank-California and Renaissance Capital Partners, II, Ltd. Judge Walrath has directed that the Lenders will receive dollar-for-dollar replacement liens as cash collateral is used to pay ordinary course post-petition expenses. The Debtors are prohibited, however, from using any of the Lenders' cash collateral to make payments or distributions to Hugo R. Camou or any of his companies or insiders thereof. Judge Walrath will consider entry of a final cash collateral order on January 5, 1999, in Wilmington. COMMERCIAL FINANCIAL: Court Okays Amended Collection Contracts -------------------------------------------------------------- Chief Bankruptcy Judge Dana L. Rasure, Northern District of Oklahoma, last week ruled that Commercial Financial Services could amend contracts calling for it to buy more bad credit card debt, and in return, she asked the company for assistance in halting calls to the court from the debt collection agency's 3,710 employees, according to The Daily Oklahoman. Commercial Financial Services and its subsidiary, CF/SPC NGU Inc., filed chapter 11 on Dec. 14, and CFS employees have been jamming the bankruptcy court's phone lines with questions about the case since the filing. Judge Rasure approved the amended contracts for three categories through April 30. The categories include MBNA America Bank of Delaware, the largest debt seller with some specific contract clauses; a group of other institutions with similar contracts; and three other companies that have not yet agreed to the amendment. Creditors in the third category may object to the terms if they are substantially different from those of the other categories. Prior to its chapter 11 filing, NGU would buy the bad debt, some under a guarantee from CFS. Typically the contract spelled out what type of accounts would be offered monthly and how much would be paid. The contract also would provide the period in which CFS or its subsidiary would be the only company permitted to buy the debt and when they would have to buy all the debt offered. (ABI 28-Dec-1998) CRIIMI MAE: Criimi Mae Management, Inc., Retains Separate Counsel ----------------------------------------------------------------- Criimi Mae Management, Inc., has sought and obtained authority from the Honorable Duncan W. Keir to employ the the Rockville, Maryland-based law firm of Shulman, Rogers, Gandal, Pordy & Ecker, P.A., as its legal counsel. Morton A. Faller, Esq., leads Shulman Rogers' engagement by Criimi Mae Management, Inc. Criimi Mae, Inc., will continue to be represented separately by the law firms of Akin, Gump, Strauss, Hauer & Feld, L.L.P. and Venbl, Baetjer & Howard. DIRECT TRANSIT: Streamlining Resolution of Disputed Claims ---------------------------------------------------------- Direct Transit, Inc., its Official Committee of General Unsecured Creditors and its Official Committee of Leasehold Claimants tell Judge Edmonds that of 2,174 scheduled and filed claims, objections to some 700 claims are anticipated. To conserve estate assets and reduce the burden on the Court, the Debtor and the Committees ask the Court to permit the parties to enter into agreements resolving disputed claims without further court authority where the amount in controversy is less than $100,000. FASTCOMM COMMNUNICATIONS: Company Comments About Amended Plan ------------------------------------------------------------- FastComm Communications Corp. (OTC:FSCX) yesterday announced its filing of an amended plan of reorganization with the United States Bankruptcy Court for the Eastern District of Virginia. As reported in yesterday's edition of the TCR, the Amended Plan proposes to pay (i) a 12% cash dividend on unsecured claims shortly after the Effective Date; (ii) a 15% cash dividend after reconciliation of all claims; and (iii) a Debenture equal to 75% of the face amount of each claim. Pre-petition FastComm Shareholders remain unimpaired. The Company reminded parties in interest in yesterday's news release that its original plan was filed on October 21, 1998. The Company has been operating under Chapter 11 protection since it was forced, by enforcement activities of a judgment creditor, to file a voluntary petition for reorganization on June 2, 1998. The amended plan, the Company said, incorporates a number of the recommendations made by the creditors committee. Most notably, the plan provides for an additional equity investment in the Company of $1 million that will be used to expedite initial payments to allowed creditors. Many of the Company's employees are participating in this placement. "Our plan provides for full payment to all general unsecured creditors," said Peter C. Madsen, FastComm president, "and thus preserves the position of current shareholders. It is gratifying to see so many FastComm employees participate in our plan." As previously indicated, the Company believes that Chapter 11 has negatively impacted its selling efforts. As such, the Company intends to pursue the confirmation process on an expedited basis. The Company's plan was filed electronically and is available on the World Wide Web at: http://www.vaeb.uscourts.gov/index.html Interested parties, FastComm explains, may "view the disclosure statement and plan by contacting this site and clicking Bankruptcy Cases; search by name; enter name 'FastComm'; case number; view docket." FLUSHING HOSPITAL: New York Hospital Weighing Takeover Plans ------------------------------------------------------------ Newsday reports that two scenarios have emerged in recent weeks to keep Queens oldest hospital, Flushing Hospital Medical Center, alive. Flushing filed for chapter 11 protection from creditors in June, 1998. One plan, Newsday related, proposes a takeover by the New York Hospital Medical Center of Queens, which manages Flushing. Doctors, creditors and union representatives who don't like the service cuts and layoffs on which that proposal is premised turned to Jamaica Hospital Medical Center for help. Jamacia, according to its lawyer, is drafting a plan to restructure Flushing's debt and take over its management with few service cuts and layoffs. "We want to make a proposal that will keep Flushing open as an independent, community hospital," said Ted Berkowitz, an attorney for Jamaica Hospital, which could release its plan as early as this week. He said Jamaica Hospital is negotiating with the "largest independent health facility in the city" to form a partnership for the venture. Berkowitz would not discuss details, but others involved in the negotiations said the proposal would keep most of the 250 beds and 1,400 employees at Flushing Hospital, which was founded in 1884. New York Hospital's proposal offers buy some of Flushing's equipment and services for "up to $ 25 million over time," according to a two-page memo given to Flushing trustees and creditors earlier this month. NYHQ would then lease the Flushing Hospital building at Parsons Boulevard and 45th Avenue for three years, "with an option to extend." It doesn't specify how many beds would be kept open and says Flushing workers would have to apply to NYHQ for new jobs. The memo also says NYHQ would terminate all union contracts and pay unsecured creditors 10 percent of what they're owed. Flushing Hospital would be disbanded as a separate corporation, but its trustees could join the NYHQ board, according to the memo. "Because of Flushing's huge debt (the hospital faced $84 million in debts and $41 million in unpaid medical malpractice expenses at its June 2 Petition Date) and its inability to support all the programs that are currently there, we feel this is the best way to keep it open," Brian Salisbury, a spokesman for both hospitals told Newsday. Lawrence Handelsman, Esq., of Stroock & Stroock & Lavan LLP, in New York City represents Flushing Hospital. The Honorable Conrad Duberstein presides over Flushing's chapter 11 case. GREATE BAY: Seeks Court Approval To Hire New CEO ------------------------------------------------ Greate Bay Hotel & Casino Inc. is asking the court to approve a $450,000, one-year employment agreement with President and CEO John Belisle, who joined the company in July. Greate Bay said Belisle's "extensive experience in the Atlantic City gaming industry and in marketing are expected to serve the Debtors well, both now and when it emerges from the protection of the Court." Belisle, who joined Greate Bay in July, previously served as CEO of Resorts Hotel Casino and chief operating officer of Trump Marina Hotel Casino as well as president of Trump Communications. The U.S. Bankruptcy Court in Camden, N.J., has set a Jan. 4 hearing on the matter. (ABI & Federal Filings, Inc. 28-Dec-1998) GULFSIDE CASINO: Bankruptcy Cases Dismissed Following Copa Sale --------------------------------------------------------------- The Sands Regent (Nasdaq: SNDS) yesterday announced the completion of the sale of the Copa Casino to local Mississippians. The closing recently occurred in Gulfport, Mississippi and the initial $500,000 payment has been deposited to an escrow account for the benefit of the Company. The total sales price of the Copa Casino, and related corporate entities, is $8.5 million payable to The Sands Regent in a $500,000 down payment and monthly payments of 2% of gross gaming revenues which is estimated to be approximately $500,000 or more a year. All payments will be held in escrow as security for certain representations and warranties by the Company which are expected to be fulfilled within 90 days. The various legal actions with these two former owners have also been dismissed with prejudice, including the Mississippi Chancery Court action, the Appeal to the Mississippi Supreme Court and the U.S. District Court action against The Sands Regent. The two Mississippi Bankruptcy filings, for Gulfside Casino, Inc., and Patrician, Inc., have also been dismissed. Ferenc B. Szony, President and Chief Executive Officer of the Company, stated, "We are extremely pleased that the sale of the Copa, and related settlement of litigation, has become a reality. We can now go forward with positive synergy allowing us to stabilize and improve our operations in Reno and consider other opportunities that may benefit the Company. Besides eliminating the drain on earnings and management's attention and efforts, this sale has also resulted in a significant improvement to our balance sheet with working capital improving by over $9 million. HOSPITAL STAFFING: Tennessee Resolves Disputes with Government -------------------------------------------------------------- Shortly after commencing its chapter 11 case, Hospital Staffing Services of Tennessee, Inc., commenced an adversary proceeding against Donna Shalala, as Secretary of the United States Department of Health and Human Services, to enjoin the Government from recouping post-petition reimbursement revenues on account of alleged pre-petition overpayments. With no admission of liability on either side, Hospital Staffing and the Government agree to settle their differences on the following material terms: (A) The Government will release $1.1 million of Medicare reimbursements to the Debtor; (B) The Government will temporarily forebear efforts to collect two pre-petition overpayments to which the Debtor admits; (C) The Debtor will be paid on a "standard per claim basis" rather than on a "periodic interim payment method of reimbursement;" and (D) The Debtor will assume its contracts and agreements to which the Government is a party. The Debtor tell the bankruptcy court in Ft. Lauderdale that it is confident this settlement with the Government will have a positive effect on the Company's reorganization efforts. HOSPITAL STAFFING: Debtors Oppose Creditors' Auction Proposal ------------------------------------------------------------- Hospital Staffing Services, Inc., and its debtor-affiliates urge the bankruptcy court in Ft. Lauderdale to deny the Creditors' Committee's motion for employment of a business broker to solicit bids for the Debtors' assets while the Debtors are in the middle of negotiating a plan of reorganization with the Committee. The Debtors stress that their exclusive periods remain intact and this fact alone should warrant denial of the Committee's Motion. The Debtors make it clear: they have no intention of auctioning their businesses at the Committee's behest. Rather, the Debtors intend to prosecute to confirmation their recently-filed stand- alone plan or reorganization to confirmation. The Debtor has no duty to seek outside participation or purchasers and has no intention of doing so unless and until the Debtors' reorganization efforts fail or show no reasonable probability of success. IMARK TECHNOLOGIES: Files Plan & Disclosure Statement ----------------------------------------------------- Imark Technologies, Inc., presented its Plan of Reorganization dated December 22, 1998, together with a Disclosure Statement in support thereof, to the U.S. Bankruptcy Court in Alexandria, Virginia. The stand-alone plan contemplates full payment of administrative and priority claims in cash on the Effective Date from the Debtor's $171,000 of assets. The Debtor's one secured creditor, International Advance owed $600,000, has agreed to exchange its claim, secured for $160,000, for 90% of the Debtor's equity. Unsecured creditors holding $1.1 million in claims are slated to receive the lesser of (a) their pro-rata share of $30,000 in cash or (b) 5% of the Debtor's equity. Pre-petition shareholders' interests will be diluted to 5% of the Reorganized Debtor. INTERNATIONAL WIRELESS: Circulating Disclosure Statement -------------------------------------------------------- International Wireless Communications Holdings, Inc., and its debtor-affiliates have distributed their court-approved Second Amended Disclosure Statement to creditors for voting on the Company's Second Amended Plan of Reorganization. Balloting ends January 19; Judge Walrath will consider confirmation of the Debtors' Plan on January 27, 1999. Under the Second Amended Plan, unsecured creditors will receive 8-year, interest-bearing Notes for 100% of the face amount of their claims. Creditors of certain debtor entities will be entitled to elect 25% or 30% cash options in lieu of receiving New Notes. JOTAN, INC.: Obtains Interim Authority to Use Cash Collateral ------------------------------------------------------------- The Honorable Jerry A. Funk has entered an order authorizing Jotan, Inc., and Southland Container Packaging Corp., interim authority to use $451,500 of cash collateral (within budgeted limits) securing pre-petition debts owed to First Union National Bank. The Debtors provide First Union with (i) replacement liens, (ii) financial reports, and (iii) the ability to retain (at the Debtors' expense) a financial advisor to review operations and compliance with the Budget, as adequate protection against any diminution in the value of the Bank's collateral. As previously reported, the Company, with substantially undersecured Banque Paribas' full support, is slated to be sold in short order. JUMBOSPORTS INC.: Files Chapter 11 Petition ------------------------------------------- JumboSports Inc. (NYSE: JSI) yesterday announced that it filed a voluntary petition under Chapter 11 of the Bankruptcy Code in order to facilitate a planned financial restructuring. The Company filed the petition late yesterday in the United States Bankruptcy Court in Tampa, Florida, Judge C. Timothy Corcoran, III presiding. JumboSports said that while it is not in default on any of its debt obligations, management elected to pursue a Chapter 11 reorganization so that it can assure its creditors, employees and customers that it will continue to operate in the normal course of business while it completes its planned restructuring. JumboSports said it entered Chapter 11 with sufficient cash to fund its business operations during the reorganization proceeding. The Company has sought and expects to receive the Court's approval to pay for the post-petition delivery of goods and services in the ordinary course and to pay employee salaries, wages and benefits without interruption. JumboSports said that its decision to seek Chapter 11 protection was supported by the ad hoc committee representing holders of its 4.25% convertible notes, due November 2000. These bonds, in the aggregate, represent more than half of the Company's unsecured debt. The Company intends to develop a plan of reorganization that will, among other things, convert at least some of the unsecured debt to equity. Jack Bush, Chairman and Chief Executive Officer, said, "Filing under Chapter 11 is in the best interest of JumboSports. This allows us to call a 'time out' with our creditors while we work to develop a plan of reorganization that puts the Company back on the right track with a reduced debt burden and improved profitability." JumboSports said that its performance in recent years had weakened due to intense competition in the retail sectors in which it operates -- name brand sports equipment, athletic apparel and footwear. The Company has for the past 11 months worked to improve operating performance by closing unprofitable stores, monetizing non-productive real estate and streamlining operations to improve inventory control and marketing. The Company said that while progress has been made in these areas, and comparable sales trends in the past three months have improved, operating results were not improving quickly enough to make an out-of-court restructuring feasible. JumboSports said that it believes a reorganization under Chapter 11 will also facilitate efforts to attract third party equity into the Company. The Company said that it expects to quickly complete its reorganization and emerge from Chapter 11 as a stronger, more viable competitor. Tampa-based JumboSports Inc. operates 59 sporting goods superstores in 23 states, including two new stores in Florida. The Company is a full-line retailer of quality name brand sports equipment, athletic apparel and footwear. KNIGHT EQUIPMENT: Committee Retains Oppenheimer Blend as Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the on-going chapter 11 case commenced in San Antonio, Texas, by Knight Equipment & Manufacturing Corporation has selected the law firm of Oppenheimer, Blend, Harrison & Tate, Inc., as its counsel. Raymond W. Battaglia, Esq., and John H. Tate, II, Esq., lead the engagement. L.A. GEAR: Professionals' Final Applications for Compensation ------------------------------------------------------------- The U.S. Bankruptcy Court in Los Angeles, the Honorable Barry Russell, presiding, will hold a hearing on January 5, 1999, to consider final fee applications presented by the professionals retained in the chapter 11 case of L.A. Gear, Inc.: $523,413.11 Hennigman, Mercer & Bennett Reorganization Counsel to the Debtor $89.655.45 Libra Investments, Inc. Financial Advisor to the Debtor $29,947.39 Irell & Manella Debtor's Special Tax Counsel $4,315.36 Stein Shostak Shostak & O'Hara Debtor's Special U.S. Customs Counsel $183.75 Law Offices of Mary K. Reynolds Debtor's Special Transportation Counsel $282,199.00 Sidley & Austin Counsel to the Creditors' Committee $61,591.32 Trademark & Licensing Associates, Inc. Consultant to the Creditors' Committee ----------- $991,305.38 Total Final Compensation Requested LEVITZ FURNITURE: Selling Springdale Property for $5.3 Million -------------------------------------------------------------- Subject to higher and better offers, Levitz Furniture Corporation has agreed to sell its fee interest in its property located in Springdale, Ohio (a suburb of Cincinnati) to Simon Property Group, Inc., for $5.3 million in net cash proceeds from which Levitz will pay a 6% commission to Grubb & Ellis for its brokerage services. Levitz will auction the property on January 11 and contemplate obtaining approval of the sale from Judge Walrath on January 13, 1999. LIBERTY HOUSE: 365(d)(4) Extension Requested to May 31, 1999 ------------------------------------------------------------ Liberty House, Inc., tells Judge King that it is evaluating a variety of reorganization alternatives. The Company has made great progress in developing a business plan for 1999 and management and professionals retained in Liberty House's case have spent hundreds of hours analyzing Liberty House's strengths and weaknesses and finding ways to capitalize on them. "The complexity of Liberty House's holdings demands that attention be paid to every detail. Liberty House's stores are, of course, at the center of its reorganization efforts," the Company says. With that in mind, the Company says that it needs more time to decide whether it should assume or reject is nonresidential real property leases. The Debtor suggests that an extension of time, pursuant to 11 U.S.C. Sec. 365(d)(4), through May 31, 1999, is warranted as the Company completes a review of holiday season operating results. MARTIN COLOR-FI: Authority to Use NationsBank's Cash Collateral --------------------------------------------------------------- The Bankruptcy Court in South Carolina has entered a consensual order authorizing Martin Color-Fi, Inc., Buchanan Industries, Inc., and Star Fibres Corp., authority to continue using cash collateral securing $58.8 million of pre-petition secured financing provided by NationsBank, N.A. To provide NationsBank with adequate protection of its interests, the Debtors admit that NationsBank is fully secured; agree to adhere to a budget; will deliver $300,000 to NationsBank by January 13, 1999; grant NationsBank replacement liens; and agree to supply NationsBank with weekly financial reports. MCGINNIS PARTNERS: Amends Schedules of Assets and Liabilities ------------------------------------------------------------- McGinnis Partners Focus Fund, L.P., and its debtor-affiliates filed their Amended Schedules of Assets and Liabilities with the bankruptcy court in San Antonio. The Debtors' revised Statements (in millions of dollars) reflect: Total Secured Priority Unsecured Debtor Entity Assets Claims Claims Claims McGinnis Partners Focus Fund, L.P. $151.9 $154.7 $0.0 $6.5 Russia Value Fund, L.P $43.7 $35.7 $0.0 $18.6 McGinnis Global Fund, Ltd. $97.2 $99.4 $0.0 $6.9 MOBILEMEDIA COMMUNICATIONS: Putnam-Led Group to Fight Plan ------------------------------------------------------------ New Generation Advisers, Inc., a Boston-based investment manager, yesterday announced that it represents an informal group of MobileMedia bondholders that intends to contest the company's Plan of Reorganization which calls for the merger of MobileMedia with Arch Communications, Inc. George Putnam, III, president of New Generation Advisers, said, "MobileMedia's proposed Plan of Reorganization is grossly unfair to unsecured creditors. We are being asked to buy Arch Communications stock at above market prices so that Arch can then use our money to take over MobileMedia. MobileMedia has done a good job of turning around its business so that it is now capable of emerging from Chapter 11 on its own or finding another merger partner on more favorable terms. We believe that the unsecured creditors of MobileMedia have been poorly served by the committee that was supposed to represent all of us in the bankruptcy. We believe that the current Plan was pushed through by a small group of creditors who had other agendas that are not consistent with the desires of the creditor group as a whole." MobileMedia's Plan of Reorganization will be voted on shortly by all creditors. Putnam went on to say, "Given the indications of support that we have received from a number of large bondholders, we do not believe that the proposed Plan will receive enough votes to be confirmed. We are actively seeking alternative plans for MobileMedia that will produce higher recoveries for all creditors." For additional information, contact George Putnam, New Generation Advisers, Inc., 225 Friend St. Boston, MA 02114, telephone 617/573-9550. NU-KOTE HOLDING: Phillip L. Theodore as Responsible Officer ----------------------------------------------------------- Judge Lundin approved a request by Nu-Kote Holding, Inc., and its debtor-affiliates that Phillip L. Theodore, the Debtors' Senior Vice President and Chief Financial Officer, be designated as a responsible officer empowered to act on the Debtors' behalf to perform any act required to be performed in the course of the chapter 11 process. NU-KOTE HOLDING: Open-Ended 365(d)(4) Extension Requested --------------------------------------------------------- Nu-Kote Holding, Inc., and its debtor-affiliates ask the bankruptcy court in Nashville to extend, through confirmation of a plan of reorganization, the time period pursuant to 11 U.S.C. Sec. 365(d)(4) within which they must decide whether to assume or reject the nonresidential real property leases. "The Debtors do not have adequate information with which to make an informed decision on assumption or rejection within the [statutory] 60-day period," the Company says. "[A]dditional time to evaluate . . . the industry [is required, and this] analysis will . . . require a substantial expenditure of time and energy," the Company continues, "an extension of time . . . will enable the Debtors to examine thoroughly each of the Leases, to explore available alternatives, and to make informed business judgment required of a debtor-in-possession." Judge Lundin will consider Nu-Kote's request at a January 5, 1999, hearing. OILEX, INC.: Case Converts from Chapter 11 to Chapter 7 ------------------------------------------------------- Oilex Inc., Luling, Texas, has been placed into chapter 7 under a ruling by the U.S. Bankruptcy Court for the District of Nevada, according to a newswire report. Earlier the company had filed chapter 11. The court also named interim trustee Randolph N. Osherow of San Antonio. (ABI 28-Dec-1998) PEGASUS GOLD: Harrison Goldin Approved as Special Consultant ------------------------------------------------------------ Judge Zive granted a Joint Application presented by Pegasus Gold Corporation and its Creditors' Committee to employ Goldin Associates, L.L.C., and for appointment of Harrison J. Goldin as Special Consultant in connection with the implementation of the Liquidation Trust established under the Debtors' Liquidating Plan of Reorganization. PHILIP SERVICES: Carl Ichan Threatening to Force Bankruptcy ----------------------------------------------------------- Unless Carl Icahn, management of Philip Services Corp., and its bank creditors can agree on a restructuring plan, Mr. Icahn is threatening to throw the 11,000-employee company into bankruptcy court and potential liquidation, according to an article appearing in yesterday's edition of Business Week. Icahn has persuaded management to go for a prepackaged bankruptcy, but Philip's banks -- who met with the company on Dec. 15 -- so far have shown no sign of going along. Philip "will either be majorly restructured, or it will not exist at all," concludes James Sbrolla, a former Philip vice-president and now a Toronto investment adviser, in an interview with Business Week. Drawn by Philip's distress, according to Business Week, Icahn began buying stock in May, building up a 14% stake. He and Foothill Partners III, LP, also now control $200 million of its $1 billion of debt. PHP HEALTHCARE: Debtor's Motion to Terminate 401(k) Plan -------------------------------------------------------- PHP Healthcare Corporation asks Judge Walrath for permission to terminate its 401(k) Plan prior to December 31, 1998. The Debtor asks for this quick termination in order to avoid paying $300,000 as an administrative expense to match employees' 1998 contributions to the Plan. The Debtor tells the Court that it provided notice of Plan termination to qualified full-time employee-participants whose employment tenure exceeds one year, on December 16, 1998, and the Company's intention to terminate the Plan before the end of 1998. PHP HEALTHCARE: Sells Interest in Virginia Chartered Health Plan ---------------------------------------------------------------- PHP Healthcare Corp. sold its 70 percent interest in Virginia Chartered Health Plan, Inc., to UHS Managed Care Inc., an affiliate of the Medical College of Virginia Authority, according to Best's News. Proceeds from the sale -- $5.7 million -- will be placed in an escrow account and distributed as ordered by the bankruptcy court. PHP and three subsidiaries filed chapter 11 on Nov. 19, and the subsidiaries converted to chapter 7 on Nov. 23. RAND ENERGY: Rejecting Shell Western Lease for Better Deal ---------------------------------------------------------- Rand Energy Company moves the bankruptcy court in Dallas for authority to reject its 1997 Gas Treating, Gas Sale and Gas Purchase Agreement with Shell Western E&P, Inc., under which the Debtor's gas from Kilgore-Wernecke Gas Unit No. 2 located in N.W. Rosita Field in Duval County, Texas, is treated to pipeline specifications and sold. The Debtor believes that, throughout the term of the Agreement, SWEPI has overcharged for gas treating and underpaid for gas purchases. The KW-2 Well generates monthly revenues in excess of $200,000. The Debtor believes that it can generate higher revenue from the KW-2 Well if a more reasonable gas processing and purchasing agreement were in place. Accordingly, the Debtors intend to reject the Agreement with SWEPI in favor of finding a more lucrative deal. The Debtor does not indicate in its motion papers whether a better deal has been located. READING CHINA: Logan & Company Appointed As Claims Agent -------------------------------------------------------- Logan & Company will serve as the official claims agent in the chapter 11 cases for Reading China and Glass, Inc., and its debtor-affiliates pending before Judge Walrath in Wilmington. REGIONAL HEALTHCARE: Acquired by Health Management Associates ------------------------------------------------------------- Health Management Associates, a Naples, Florida-based hospital company, went before the U.S. Bankruptcy Court in Ft. Lauderdale to buy Regional Healthcare Inc. for $78 million. Regional Healthcare consists of Brooksville and Spring Hill regional hospitals and PineBrook Regional Medical Center located in Hernando County, Florida. HMA paid off Regional Healthcare's remaining creditors and hauled the company out of U.S. Bankruptcy Court, where it had been protected from creditors for the last five years. In 1993, the St. Petersburg Times related this past weekend, Regional Healthcare went into chapter 11. The company couldn't pay off the debt it took on for the construction of its Spring Hill hospital, which was built to compete with Oak Hill Hospital, owned by Columbia/HCA Healthcare Corp. After several failed attempts over the years to negotiate a sale to a non-profit hospital company, Regional Healthcare's board of directors ultimately decided to negotiate with a for-profit partner. HMA agreed to buy PineBrook and Spring Hill Regional and the assets of Brooksville Regional. For the next 30 years, the company will pay the county $300,000 a year to lease the taxpayer-owned Brooksville hospital. It will not pay property taxes, and at the end of the 30 years, all three properties will be handed over to the county. HMA also agreed to invest $25-million in capital improvements at the hospitals over the next five years. RIO GRANDE: Cox & Smith Approved as Debtor's Counsel ---------------------------------------------------- The Bankruptcy Court in San Antonio has approved the employment of the law firm of Cox & Smith Incorporated as lead bankruptcy counsel to Rio Grande, Inc., and its four oil and gas debtor- affiliates. SOUTHERN PACIFIC: CIBC Oppenheimer Advises Creditors' Committee --------------------------------------------------------------- Judge Perris approved an Application presented by the Creditors' Committee appointed in the on-going chapter 11 case commenced by Southern Pacific Funding Corporation for retention of CIBC Oppenheimer Corp. as its financial advisor. CIBC agreed to limit the scope of indemnification provisions it originally requested and Judge Perris directed that CIBC shall not be permitted to trade in any of the Debtors' securities until after the closing of a SPFC-UK Sale Transaction. SUNBELT NURSERY: Minor Modifications to Plan of Liquidation ----------------------------------------------------------- Wolfe Nursery, Inc., Tip Top Nursery, Inc., Nurseryland Garden Centers, Inc. (the Operating Debtors under the plan proposed in Sunbelt Nursery, Inc.'s chapter 11 cases) and Sunbelt's Official Committee of Creditors Holding General Unsecured Claims ask the bankruptcy court in Santa Ana to permit them to make two minor modifications to the Second Amended plan of Liquidation at the time of confirmation: (1) amend the Plan to provide that the assets of the Operating Debtors will not revest in the Operating Debtors but will, rather, remain vested in the Operating Debtors' estates; and (2) amend the Plan to provide that the Operating Debtors shall not retain the services of Timothy Duoos, the Operating Debtors' President, post confirmation. As provided in the Plan, the Disbursing Agent will be appointed Estate Representative entitled to take all actions on behalf of the Operating Debtors' estates except for the prosecution of Rights of Action against past and present Insiders. TIE/COMMUNICATIONS: January 20 Disclosure Statement Hearing ----------------------------------------------------------- The United States Bankruptcy Court for the Central District of California will hold a hearing on the adequacy of the Original Disclosure Statement describing the Original Chapter 11 Liquidating Plan proposed by TIE/Communications, Inc. As previously reported, Tie/Communications, proposed a plan of liquidation for the debtor's bankruptcy estate. Administrative Expenses total $84,000 and will be paid in full on the Effective Date. The debtor does not believe that there are any true secured claims in the case. General Unsecured Claims total $39,101,225 and are slated to receive between 41% and 47% of their claims. UNISON HEALTHCARE: Creditors Vote to Accept Debtors' Plan --------------------------------------------------------- Unison HealthCare Corp. said its creditors have cast their ballots and voted to accept the Company's reorganization plan. The Scottsdale company described the action as an important step that will help it emerge from Chapter 11, to a staff reporter for the Arizona Republic. Unison provides long-term and specialty health-care services at 43 facilities with nearly 4,200 beds. UNITED FINANCIAL: Objection to Entry of Final Decree ---------------------------------------------------- As previously reported, United Financial Group, Inc., asked the Delaware bankruptcy court to enter a final decree in its 1997- commenced chapter 11 case. Mr. Robert E. Martel objects to this request. Mr. Martel says that he filed a proof of claim; the Debtor objected to his claim; he responded to that objection and requested a hearing. To date, he's heard nothing except the instant request for entry of a final decree. Mr. Martel slings some mud at the Debtor, noting that he was never served notice of the bankruptcy filing. In all events, Mr. Martel asks the Court to resolve the merits of his claim before entry of a final decree. VAN LEUNEN'S: Balloting Commences on Liquidating Plan ----------------------------------------------------- Judge Aug passed on the adequacy of information contained in the Disclosure Statement presented by Van Leunen's, Inc., d/b/a All About Sports, in support of the Joint Plan of Liquidation proposed by the Debtor and its Creditors' Committee. Ballots must be returned by January 13, 1999, to be counted; the Court will consider confirmation at a hearing scheduled for January 22, 1999. The Debtor and the Committee estimate that unsecured creditors will receive an approximate 9.8% dividend on account of their claims. The Plan contemplates that the Debtor will not pursue any litigation on account of potential preference payments. VITANTONIO PRODUCTS: Involuntary Petition Filed ----------------------------------------------- Crains Cleveland Business reports that three creditors filed an involuntary bankruptcy petition against 92-year-old gourmet cookware maker Vitantonio Products Inc., based in Bedford and best-known for its Mickey Mouse waffle irons. Vitantonio's parent company, Kadee Products, Ltd., of Bedford, is a well-known maker of electronic cookware and fans. General Die Casters Inc. of Peninsula, Russell Products of Cleveland and cookbook publisher William Morrow & Co. of New York are seeking unpaid claims totaling $847,795. The Involuntary petition was filed with the U.S. Bankruptcy Court in Cleveland. Together, Crains relates, Kadee and Vitantonio Products had sales of $15 million in 1997, citing a Dun & Bradstreet report it obtained. Word of the bankruptcy filing came as good news to VillaWare Manufacturing Co. of Cleveland, a competing maker of Italian cookware that has eyed some of Vitantonio's contracts with large gourmet vendors: such as Williams-Sonoma Inc. of San Francisco. "We're pretty ecstatic about this (bankruptcy filing)," Bob Vitantonio, president of VillaWare and the great-grandson of Vitantonio Products' founder, Angelo Vitantonio, told Crains. "It's always nice when you hear about a competitor going out of business," he added. WESTMORELAND COAL: Court Dismisses Chapter 11 Cases --------------------------------------------------- Westmoreland Coal Co., Colorado Springs, Colo., said that a bankruptcy court has dismissed its chapter 11 cases after the company reached agreements in October with union pension funds, The Wall Street Journal reported. Westmoreland filed chapter 11 two years ago, citing its $160 million obligation to current and former employees. Under the agreement, Westmoreland will pay undisputed claims in full, reinstate one plan, make future payments on other plans and determine other pension-fund payments through arbitration. The dismissal will become effective on Jan. 4 after a mandatory 10-day stay. (ABI 28-Dece-1998) Meetings, Conferences and Seminars ---------------------------------- January 9-14, 1999 Law Education Institute Bankruptcy Law Course -- 1999 National CLE Conference Marriott's Vail Mountain Resort, Vail, Colorado Contact: 1-414-228-5810 January 28-February 1, 1999 COMMERCIAL LAW LEAGUE OF AMERICA 38th Annual Southern District Meeting Royal Sonesta Hotel, New Orleans, Louisiana Contact: 1-423-971-1551 February 4-6, 1999 AMERICAN BANRKUTPCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800 February 18-21, 1999 COMMERICAL LAW LEAGUE OF AMERICA Annual Western District Meeting Monte Carlo Hotel & Casino Resort, Las Vegas, Nevada Contact: 1-702-382-9558 Febraury 28-March 3, 1999 NORTON INSTITUTES ON BANKRUPTCY LAW Norton Bankruptcy Institute I Olympic Park Hotel, Park City, Utah Contact: 1-770-535-7722 March 18-21, 1999 NORTON INSTUTUTES ON BANKRUPTCY LAW Norton Bankruptcy Litigation Institute II Flamingo Hilton Hotel, Las Vegas, Nevada Contact: 1-771-535-7722 March 19, 1999 AMERICAN BANRKUTPCY INSTITUTE Bankruptcy Battleground West Century Plaza Hotel, Los Angeles, California Contact: 1-703-739-0800 March 25-27, 1999 Southeastern Bankruptcy Law Institute, Inc. 25th Annual Southeastern Bankruptcy Law Institute Marriott Marquis Hotel, Atlanta, Georgia Contact: 1-770-451-4448 April 15-18, 1999 AMERICAN BANRKUTPCY INSTITUTE Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800 April 26-27, 1999 RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC. Bankruptcy Sales, Mergers & Acquisitions The Mark Hopkins, San Francisco, California Contact: 1-903-592-5169 or ram@ballistic.com April 28-30, 1999 INTERNATIONAL FEDERATION OF INSOLVENCY PROFESSIONALS INSOL Bermuda '99 Conference of the Americas Castle Harbour Marriott Resort Contact: INSOL@weil.com June 3-6, 1999 AMERICAN BANRKUTPCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800 July 1-4, 1999 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: 1-770-535-7722 July 15-18, 1999 AMERICAN BANRKUTPCY INSTITUTE Northeast Bankruptcy Conference Mount Washington Hotel & Resort Bretton Woods, New Hampshire Contact: 1-703-739-0800 August 4-7, 1999 AMERICAN BANRKUTPCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton, Amelia Island, Florida Contact: 1-703-739-0800 September 16-18, 1999 AMERICAN BANRKUTPCY INSTITUTE Southwest Bankruptcy Conference The Hotel Loretto, Santa Fe, New Mexico Contact: 1-703-739-0800 December 2-4, 1999 AMERICAN BANRKUTPCY INSTITUTE Winter Leadership Conference La Quinta Resort & Club, La Quinta, California Contact: 1-703-739-0800 The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* A listing of Meetings, Conferences and Seminars appears in each Tuesday's edition of the TCR. Bond pricing, appearing in each Friday edition of the TCR, is provided 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. 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