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/raid1/www/Hosts/bankrupt/TCR_Public/990121.MBXT R O U B L E D C O M P A N Y R E P O R T E R Thursday, January 21, 1999, Vol. 3, No. 14 Headlines ACCESS BEYOND TECHNOLOGIES: Motion To Reconsider ADVANCED GAMING: Opposition To Disclosure Statement AMPACE CORPORATION: Seeks Extension of Removal Period BRUNO'S INC: To Sell Or Close 14 Stores COMMERCIAL FINANCIAL: Chase USA Seeks Relief From Stay CONTINENTAL INVESTMENT: Involuntary Petition Filed GENEVA STEEL: Considers Chapter 11 HAYES CORP: Dennis Hayes Resigns JEWELWAY: Legal Notice JUMBOSPORTS: To Close 17 Under-Performing Stores LIBERTY HOUSE: Committee Supports Extension of Time MIDCON OFFSHORE: Trustee Taps Expert Witnesses NEXTWAVE TELECOM: Seeks 3 Month Exclusivity Extension PHP HEALTHCARE: Cash Collateral Stipulation PINNACLE HEALTH: Seeks Time To Assume/Reject Leases RIO GRANDE INC: Use of Cash Collateral Extended ROYAL CITRUS: Fights To Stay Financially Afloat SALANT CORP: Obtains Final Approval For $85M DIP SANTA FE GAMING: Noteholders File Involuntary Bankruptcy SCOTT CABLE: Gets Nod For $165 Million Sale SGL CARBON: Committee Seeking To Dismiss Case SMARTALK: Files For Chapter 11 Bankruptcy SOLO SERVE: May File for Bankruptcy or Sell Assets THE CONCORD: New York Resort Auctioned UNITED PETROLEUM: Petition Lists $12.4M In Liabilities ********* ACCESS BEYOND TECHNOLOGIES: Motion To Reconsider ------------------------------------------------ The debtors, Access Beyond Technologies, Inc. n/k/a Hayes Corporation (Hong Kong) Limited, et al., request that the court reconsider its denial of a motion by Peachtree Crossings Business Park Associates ("Peachtree") to vacate the automatic stay in the adversary proceeding between Peachtree and Hayes Microcumputer Products, Inc. The debtors claim that Peachtree submitted an order, entered by the court, providing Peachtree with far greater substantive rights than what the court ordered at the hearing. The debtors argue that the debtors are obligated to pay contractual rent payments and not that the debtors are obligated for payment of rent and performance of all other lease obligations. The debtors propose the payment of the December 1998 use and occupancy, timely payment of the use and occupancy for the succeeding months as adequate protection of Peachtree's interests. ADVANCED GAMING: Opposition To Disclosure Statement --------------------------------------------------- Bingo Technologies Corporation ("BTC"), is a creditor of Advanced Gaming Technology, as it loaned the debtor approximately $1.5 million through various transactions with the debtor. In return for the loan, the debtor agreed to provide BTC a license for the exclusive right to sell, market, manufacture and distribute two of the debtors' software products, MAX-PLUS and TURBOMAX for the period of five years. Furthermore, the debtor provided BTC with a list of the debtors' customers who were allegedly using the product at the time of the agreement. As part of the agreement, the debtor agrees to indemnify and hold BTC harmless for any liability arising from BTC's use of the debtor's product, including but not limited to liability for infringement of any competitor's patents. BTC states that the Disclosure Statement fails to address the indemnification of BTC with respect to the lawsuit filed for alleged patent infringement by competitors of BTC and the debtor. BTC also states that the Disclosure Statement fails to address whether the debtor intends to accept or reject the contract between the debtor and BTC and BTC argues that it is not properly classified as holding a secured interest in the royalties, pursuant to the parties' agreement. AMPACE CORPORATION: Seeks Extension of Removal Period ----------------------------------------------------- Ampace Corporation and Ampace Freightlines, Inc., debtors, seek an order extending the time period within which the debtors may remove actions. The debtors seek the entry of an order extending by an additional 121 days the deadline for removing actions to the bankruptcy court. As of the Petition Date, the debtors were defendants in several civil cases pending in various courts. An extension is necessary to permit the debtors' management and professionals time to focus on the Chapter 11 cases and to give the debtors a sufficient opportunity to evaluate the actions and to determine whether removal of individual actions is appropriate. BRUNO'S INC: To Sell Or Close 14 Stores --------------------------------------- Bruno's, Inc. announced that it is closing or selling 14 stores. Six of the stores are located in Alabama, five in Georgia and three in Florida. "The decision announced today is one of the final phases in our store rationalization plan, which has been underway since early last year as part of our effort to return Bruno's to profitability. Since then, we have evaluated each store to identify those stores in our system which fit into our overall strategy," said Bruno's Chairman and CEO James A. Demme. "The sale or closing of these stores will put the company in a stronger financial and operational position," Demme said. Bruno's is currently operating as a debtor-in-possession under Chapter 11 of the United States Bankruptcy Code. The plans announced today are subject to a number of conditions, including approval by the United States Bankruptcy Court for the District of Delaware. All affected management personnel are being considered for positions at other Bruno's locations. If positions are not available, Bruno's intends to offer severance packages to eligible employees. Approximately 338 full-time and 411 part-time employees are affected. After the final disposition of the 14 stores, Bruno's will own and operate 149 stores in Alabama, Mississippi, Florida and Georgia. Stores being closed or sold: Food Fair: 4812 Avenue W. West, Birmingham, AL Food World: 409 Racetrack Road NE, Ft. Walton, FL Food World: 804 Columbus Parkway, Opelika, AL Food World: 149 Cox Creek Parkway, Florence, AL Food World: 7765 Airport Highway, Mobile, AL Food World: 513 Beckrich Road, Panama City, FL Food Fair: 707 Cherokee Road, Alexander City, AL Food World: 1153 Gulf Breeze Parkway, Gulf Breeze, FL FoodMax: 5600 Milgen Road, Columbus, GA Food World: 406 Highway 231 S., Ozark, AL FoodMax: 5300 Sidney-Simons Blvd, Columbus, GA FoodMax: 3113 Napier Square, Macon, GA FoodMax: 901 W. Ward Street, Douglas, GA FoodMax: 4015 Northside Drive, Macon, GA COMMERCIAL FINANCIAL: Chase USA Seeks Relief From Stay ------------------------------------------------------ Chase Manhattan Bank USA, NA ("Chase USA") seeks relief from the automatic stay relating to certain charged-off creditor receivables that were to have been sold to the debtor, Commercial Financial Services, Inc. and information concerning such charged-off receivables in the possession of Commercial Financial Services ("CFS"). Chase USA was a party to a credit card account purchase agreement dated November 17, 1997 with CF/SPC NGU, Inc., a debtor in this case. In October 1998, the parties agreed that CFS could purchase Charged-Off accounts in November and early December 1998. The package at issue consisted of charged-off accounts with an aggregate unpaid balance of $5,166,774. The purchase price was $607,096. The closing for this package never occurred due to the filing of the debtor's Chapter 11 case. CFS continues to refuse to advance the purchase price for the package, and Chase USA now seeks relief from the automatic stay. CONTINENTAL INVESTMENT: Involuntary Petition Filed -------------------------------------------------- Continental Investment Corporation (OTC Bulletin Board: CICG) today announced that on January 13, 1999 a group of creditors have filed an involuntary chapter 11 bankruptcy petition against it in the United States Bankruptcy Court For The Northern District of Georgia, Atlanta Division. The petition is a lawsuit which seeks to force the Company into chapter 11. The Company has recently been subjected to an onslaught of litigation precipitated by minority shareholder Stewart Rahr. In recent months, certain of Continental's documents, files, internal records, and attorney-client privileged materials have been stolen by ex-employees acting with and on behalf of Stewart Rahr. Continental is vigorously opposing the actions of Stewart Rahr and others acting in concert with him and intends to institute legal proceedings against Rahr and his group for stock manipulation and other causes of action. Continental believes that a bankruptcy forum may ultimately be the appropriate forum to air these grievances. GENEVA STEEL: Considers Chapter 11 ---------------------------------- Geneva Steel, Utah County, Utah, failed to make a $9 million interest payment Friday, and it is still negotiating a restructuring of its debt with major creditors, according to a newswire report. The company has about $325 million in debt and has only had one profitable year since 1992. A meeting with bondholders is scheduled for this week, but the default on the loan could lead to the company filing chapter 11. (ABI 20-Jan-99) HAYES CORP: Dennis Hayes Resigns -------------------------------- Dennis Hayes, who resigned as chairman of Hayes Corp. last fall, this week resigned from the company's board of directors, severing his connection to the company that bears his name, according to Associated Press. The modem manufacturing company filed its second chapter 11 case in October and ceased operations Jan. 4. Hayes co-founded the company and remains its largest individual shareholder. (ABI 20-Jan-99) JEWELWAY: Legal Notice ---------------------- JewelWay International Inc. published a legal notice in the Wall Street Journal, January 20, 1999 advising claimants or potential claimants to file a notice of appearance with the bankruptcy court. The notice states that as of the date of this notice the Unsecured Creditors' Committee is not represented by legal counsel. JUMBOSPORTS: To Close 17 Under-Performing Stores ------------------------------------------------ JumboSports Inc. (OTC Bulletin Board: JSIBQ) today announced that it is closing 17 under- performing stores in 12 states in an effort to reduce operating costs and focus the Company's resources on a profitable core of stores. Following the closure of the 17 stores, JumboSports will operate 42 stores in 18 states. Today's announcement is consistent with JumboSports' business plan and efforts to improve overall Company performance. The stores slated for closure were selected based on a number of factors including strength of the Company's competitive position in individual markets, growth prospects of the individual stores and store profitability. "Closing these under-performing stores is an integral part of our effort to restore our financial health and improve operational performance," said Jack Bush, Chairman and Chief Executive Officer of JumboSports. "In effect, we are monetizing these unprofitable assets and using the proceeds to reduce our long-term debt while we move forward with a core of solid performers." The Company owns eight of the 17 closing stores, and has begun negotiations with a number of interested parties regarding the sale of these properties. An orderly liquidation of inventory is expected to begin shortly, following Bankruptcy Court approval. Management noted it expects to generate net cash proceeds of approximately $30 million from inventory liquidation of the 17 stores, which will be used to reduce long-term debt. As previously announced, JumboSports, with the support of its ad hoc bondholder committee, filed a voluntary petition under Chapter 11 of the Bankruptcy Code in order to facilitate a planned financial restructuring. The Company has also recently announced that it has reached a preliminary agreement with Foothill Capital Corporation, as agent, on the economic terms of a $135 million Debtor In Possession (DIP) financing agreement. The DIP facility steps down to $110 million following the receipt of proceeds from the liquidation of closing store inventories, and is subject to the execution of definitive documents by the parties and the receipt of Bankruptcy Court approval. Ray Springer, Chief Financial Officer of JumboSports said, "We are pleased with Foothill Capital's decision to provide us with DIP financing." He added, "The funds generated from the DIP, coupled with the proceeds received from the unprofitable assets, position JumboSports well in implementing an effective reorganization plan, which in turn should set the stage for a quick emergence from Chapter 11." Closing Stores Store #11, 6777 Winchester Road, Memphis, TN Store #34, 5070 Virginia Beach Blvd., Virginia Beach, VA Store #39, 4285 North Academy Blvd., Colorado Springs, CO Store #45, 21697 State Road 7, Boca Raton, FL Store #49, 3600 MacArthur Blvd., New Orleans, LA Store #51, 3830 Austin Peay Highway, Memphis, TN Store #53, 11249 Pines Blvd., Pembroke Pines, FL Store #54, 2101 W. Shepherd, Chattanooga, TN Store #59, 7255 East Broadway Blvd., Tucson, AZ Store #65, 5000 West War Memorial, Peoria, IL Store #66, 6315 Illinois Rd., Ft. Wayne, IN Store #68, 3800 East 53rd Street, Davenport, IA Store #71, 13460 Admiral Park Blvd., Ft. Myers, FL Store #75, 5695 Wilmington Pike, Centerville, OH Store #79, 10510 Cadillac St., Pineville, NC Store #87, 2455 International Speedway Blvd., Daytona Beach, FL Store #93, 2909 Washington Road, Augusta, GA Tampa-based JumboSports Inc. operates 42 sporting goods superstores in 18 states, not including 17 stores set for closure in 1999. The Company is a full-line retailer of quality name brand sports equipment, athletic apparel and footwear. LIBERTY HOUSE: Committee Supports Extension of Time --------------------------------------------------- The Official Committee of Unsecured Creditors of Liberty House, Inc. supports the debtor's motion for an order extending the debtor's time to assume, assume and assign or reject approximately 30 unexpired non-residential real property leases until May 31, 1999. The Committee states that the additional time is necessary to allow the debtor and the Committee to meaningfully assess the value of the leases. In order to do so, substantial additional data on the profitability of each of the various stores must be analyzed to allow for an informed determination on which stores should be retained by the reorganized debtor. The debtor is expected to present its long-range business plan to the major constituencies in this case later this month. The committee and the debtor need additional time to examine each store and their revenues, particularly the revenues generated during the past holiday selling season. The Committee states that this case is exceptionally complex and involves a large number of remaining leases. The leases are complicated, involving multi-party collateral agreements with lenders, developers and other entities, which add to the difficulty in evaluating the leases. MIDCON OFFSHORE: Trustee Taps Expert Witnesses ---------------------------------------------- Sheila Macdonald, trustee for the Chapter 11 Estate of Midcon Offshore, Inc. seeks to employ H.J. Gruy & Associates, Inc. as an expert witness on oil and gas matters in connection with confirmation of the proposed plan of reorganization. Specifically, the firm would provide testimony on the subject of the fair market value of Louis Dreyfus Natural Gas Corporation's interest in West Delta 152 in December of 1995. The fee of the firm is subject to a high estimate budget of $24,115. Macdonald is also seeking to employ Mann, Frankfort, Stein & Lipp, PC to provide expert witness services on accounting and Generally Accepted accounting principles in connection with confirmation of the plan in connection with testimony in an adversary proceeding against Louis Dreyfus Natural Gas Corporation. Specifically the firm would testify on the subject of the net book value of the same interest of Louis Dreyfus Natural Gas as above referenced, on April 30, 1995. The firm is subject to the same high estimated budget of $24,115. NEXTWAVE TELECOM: Seeks 3 Month Exclusivity Extension ----------------------------------------------------- NextWave has asked the court for a three-month exclusivity extension, saying a settlement of ongoing litigation with the Federal Communications Commission is unlikely. "Prior to the completion of the discovery phase of the Adversary Proceeding, [reorganization] plan formulation is difficult," Nextwave asserted in a Jan. 15 motion. The suit is scheduled to go to trial "within a week or so" of the final pretrial conference. "Although [Nextwave] would be interested in a consensual resolution of the Adversary Proceeding with the FCC, [Nextwave] has no reason to believe a settlement is imminent," the motion adds. The motion seeks an extension of Nextwave's exclusive periods to file a plan and solicit plan acceptances through May 10 and July 9, respectively. (Federal Filings Inc. 20-Jan-99) PHP HEALTHCARE: Cash Collateral Stipulation ------------------------------------------- A stipulation was entered into between PHP Healthcare Corporation as debtor and NationsBank N.A. a partially secured creditor of the debtor. On November 25, 1998, NationsBank provided post-petition financing to the debtor as evidenced by an unsecured demand note, in the original principal amount of up to $1.25 million. This stipulation provides for the debtor's consensual use of the cash collateral and the collateral and for the adequate protection of NationBank's asserted interest therein. For each week until the week of February 26, 1999, the debtor is limited to a certain cash flow. The final week being a sum of $6,486. Permitted expenses may not exceed $800,000 per month or $2.6 million in the aggregate. The debtor holds an escrow account with a balance of $6.793 million. NationsBank asserts that all of the proceeds escrow constitutes its cash collateral. The debtor stipulates that at least $4,793 constitutes the Cash Collateral. PINNACLE HEALTH: Seeks Time To Assume/Reject Leases --------------------------------------------------- PHP Healthcare Corporation, a creditor in the Chapter 7 case of Pinnacle Health Enterprises LLC ("PHE") and the Official Unsecured Creditors' Committee of PHP's Chapter 11 bankruptcy case request the entry of an order extending the time within which Pinnacle Health Enterprises, LLC may assume or reject executory contracts and unexpired leases of nonresidential property. As of the petition date, PHE was party to approximately seventeen unexpired leases of nonresidential real property, and various executory contracts. Since the Interim Trustee to PHE's estate resigned, no real analyses have been performed that would evaluate the economics of the leases and contracts. The movants argue that it is critical that PHE be afforded sufficient time to analyze each of the unexpired leases to determine whether the unexpired leases should be assumed or rejected. The parties seek to extend the period through and including March 5, 1999 with the hope that a new Chapter 7 trustee will be appointed, and that a proper analysis of each lease and executory contract be made. PHP Healthcare Corporation and the Unofficial Unsecured creditors' Committee of PHP's chapter 11 case request that the same extension be granted with respect to the debtor PHP JN MSO, Inc. This debtor was, as of the petition date, party to approximately five unexpired leases of nonresidential real property and various executory contracts. The reasoning for the extension and the requested date of extension are the same as for PHE. RIO GRANDE INC: Use of Cash Collateral Extended ----------------------------------------------- Rio Grande< Inc. and its affiliated debtors and EXCO Resources, Inc., the secured creditor, agree to extend the agreed order regarding the limited use of cash collateral to The occurrence of a Termination Event or January 31, 1999, at which time all of the debtors' authority to use Cahs collateral shall terminate unless extended by a joint written notice executed by the Secured Creditor and the debtors. The February 1999 budget provides for an income loss from operations of $72,157. ROYAL CITRUS: Fights To Stay Financially Afloat ----------------------------------------------- The Press Enterprise Co. reports that only a few years after building a huge, state-of-the-art packing house in Riverside, Ca., Royal Citrus is struggling to stay in business. The company has called separate meetings with vendors and growers asking for 90 days in which to make good on its debts, according to growers who depend on the company to pack and market their fruit. Last week, Royal Citrus shut down its packing operations for at least a month, sources say, sending more than 200 workers home. The company is blaming its troubles in part on the quarantine imposed late last year on 180 square miles in southwestern Riverside County following the trapping of Mediterranean fruit flies. Ironically, Royal Citrus' business slump follows the company's $8 million investment in a plant expansion and renovation. Now, it appears that the restructuring may include some downsizing to cut costs. SALANT CORP: Obtains Final Approval For $85M DIP ------------------------------------------------ Salant Corporation (NYSE: SLT) announced that it has obtained final approval from the Bankruptcy Court for the Southern District of New York for its $85 million debtor-in-possession credit facility from its working capital lender, The CIT Group/Commercial Services, Inc. As previously announced, Salant has also received and accepted an $85 million financing commitment from CIT that would replace the debtor-in-possession credit facility upon completion of Salant's restructuring. SANTA FE GAMING: Noteholders File Involuntary Bankruptcy -------------------------------------------------------- Santa Fe Gaming Corp., Las Vegas, said that Hudson Bay Partners and two other holders mortgage notes for its subsidiary Pioneer Finance Corp's, filed the petitions to place the operator of the Pioneer Hotel & Gambling Hall in Laughlin, Nev. and Las Vegas' Santa Fe Hotel & Casino in bankruptcy, according to Reuters. Santa Fe's management said the filing will not affect day-to-day operations, and that the petitions do not meet the requirements for an involuntary filing. In November, Pioneer accepted consents from holders of about 75 percent of the $60 million principal amount of the outstanding notes, and that Pioneer Financial agreed to file for bankruptcy and get the notes reissued under a reorganization plan. On Jan. 4, Hudson Bay Partners advised Santa Fe that it held $4.7 million of the notes and did not consent to the reorganization. Santa Fe intends to seek such damages as provided by the Bankruptcy Code, which may include costs or reasonable attorney fees and possible punitive damages. (ABI 20-Jan-99) SCOTT CABLE: Gets Nod For $165 Million Sale ------------------------------------------- The court has authorized the $165 million sale of Scott Cable Communications, Inc. to InterLink Communications Partners LLLP outside the context of a reorganization plan, just weeks after the court denied confirmation of the cable operators proposed plan. The consummation of the sale to InterLink was essential in order to maximize the value of the estate, according to Scott Cable. (Federal Filings Inc. 20-Jan-99) SGL CARBON: Committee Seeking To Dismiss Case --------------------------------------------- The official committee of unsecured creditors is seeking to dismiss SGL Carbon's Chapter 11 case, claiming that the case was filed simply to shield the company from an avalanche of antitrust litigation. "The recent Chapter 11 filing of SGL U.S. is a bald attempt by its German parent to exploit the U.S. bankruptcy laws for its own purely tactical ends: frustrating the prosecution of the civil antitrust claims and seeking to shield the equity of its U.S. subsidiary from these claims," the panel's Jan. 12 motion charges. The panel asserted that SGL's bankruptcy filing ultimately has its roots in a criminal probe launched in early 1997 by the U.S. Department of Justice into allegations of price fixing and other anti-competitive practices in the industry. (Federal Filings Inc. 20-Jan-99) SMARTALK: Files For Chapter 11 Bankruptcy ----------------------------------------- SmarTalk TeleServices Inc and 19 affiliates filed for chapter 11 protection late Tuesday in the U.S. Bankruptcy Court in Delaware. In court papers, the company listed assets of $406.3 million and debts of $226.9 million, including $150 million in subordinated debt. Among the 20 largest unsecured creditors are 1,000 holders of $150 million in notes with Wilmington Trust Co of Delaware the agent. The remaining unsecured debt is in trade claims including a disputed one for $11.5 million held by Philips Consumer Communications LLP of St. Louis, Missouri, and an $11.0 million claim by Frontier Corp of Rochester, New York. AT&T said Tuesday it had agreed to buy SmarTalk for up to $192.5 million, which is subject to being adjusted down at closing, and has provided debtor-in-possession financing. The deal, expected to close in the first quarter of 1999 while the bankruptcy case is pending, will require approval by the bankruptcy court and regulatory agencies. SmarTalk, of Dublin, Ohio, provides prepaid telecommunications products and services, primarily through its SmarTalk prepaid phone card. Owners of five percent or more of SmarTalk stock are Fletcher International Ltd, Robert Lorsch, and Victor Grillo Jr. SmarTalk owns all the stock of the 19 affiliates which are also in chapter 11 protection. They include: Worldwide Direct Inc, ConQuest Telecommunication Services Corp, SmarTalk USPS Sales Co, GTI Telecom Inc, USA Telecommunications Services Inc, SmarTel Communications Inc, SMTK NY-1 Corp, Creative Network Marketing Inc, and several similarly named entities. SOLO SERVE: May File for Bankruptcy or Sell Assets -------------------------------------------------- Solo Serve Corp., San Antonio, may have to sell all or some of its assets or file for bankruptcy if it is unable to obtain additional credit soon, according to The Express News. The off-price retailer cites a liquidity problem and said that it filed a document with the Securities and Exchange Commission last month that it is seeking additional debt or equity financing. The company, which employs about 950 people in Texas and Louisiana, specializes in selling a wide range of apparel and accessories at discounted prices. Increased competition from Target and Wal-Mart has severely affected the company, along with hurricanes and floods forcing the temporary closure of some stores during the past year. Solo Serve has filed chapter 11 before; it filed in July 1994 and emerged from bankruptcy one year later. Since then the company has struggled with poor sales and increasing losses. Solo Serve posted a net loss of $2.84 in the quarter ending Oct. 31. (ABI 20-Jan-99) THE CONCORD: New York Resort Auctioned -------------------------------------- The Concord Hotel the largest of the Catskills' famed "Borscht Belt" hotels has been auctioned off for $10.25 million. The investment group Concord Associates LLP made the bid during a federal bankruptcy auction Tuesday, said Sullivan County Manager Jonathan Drapkin. The Concord closed its doors in November after operating under Chapter 11 bankruptcy proceedings for more than a year. Like many other upstate New York hotels, the Concord's heyday was in the 1920s and '30s when thousands of tourists visited the area. With 1,220 rooms, a 2,000-seat dining area, 40 tennis courts and three swimming pools, the Concord, about 75 miles north of New York City, also was a proving ground for dozens of comedians and crooners. The new investors, headed by New York City real estate developer Joseph Murphy, intend to run the Concord as a modern hotel, said Glen Pontier, a spokesman for Sullivan County. UNITED PETROLEUM: Petition Lists $12.4M In Liabilities ------------------------------------------------------ The chapter 11 petition of United Petroleum Corp., filed last week in the U.S. Bankruptcy Court in Wilmington, Del., lists assets and liabilities of $8.4 million and $12.4 million, respectively. The filing, which does not include either of the Knoxville, Tenn.,-based energy holding company's two operating subsidiaries, Calibur Systems Inc. and Jackson-United Petroleum Corp., did not indicate whether funds would be available for distribution to unsecured creditors. The company announced it would file a reorganization plan within the next 10 days that would, among other things, convert all of its debentures and preferred stock to new common stock. The plan has received preliminary approval from all the company's secured debt holders and the majority of holders of its debentures and preferred stock, but will be subject to creditor and court review and approval. (The Daily Bankruptcy Review and ABI Copyright c January 20, 1999) ********* 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 * * *