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/raid1/www/Hosts/bankrupt/TCR_Public/990211.MBXT R O U B L E D C O M P A N Y R E P O R T E R Thursday, February 11, 1999, Vol. 3, No. 29 Headlines AMERICAN RICE: Applies To Employ Fulbright & Jaworski AMERITRUCK DISTRIBUTION: Applies To Appoint Auctioneer AMERITRUCK DISTRIBUTION: Seeks Nod For Key Employee Plan ARIMETCO INC: Court Denies Motion For Acquisition BEAL MOUNTAIN MINING: Trustee Seeks To Employ Accountant BLUE RIBBON: Poised to Emerge From Bankruptcy BMJ MEDICAL: Meeting of Creditors Scheduled BMJ MEDICAL: Seeks Order Authorizing Special Tax Counsel BMJ MEDICAL: Seeks To Retain Special Projects Accountants CML GROUP: Gets $75 Million Offer For Smith & Hawken COLDWATER CREEK: Catalog Retailer to Close Idaho Center COMMERCIAL FINANCIAL: Committee Taps Attorneys DAVIE INDUSTIRES: Files Proposal to Creditors FASTCOMM: Seeks Emergency Financing From Commerce Funding GENEVA STEEL: Court Proceedings Moved To District Court INTERNATIONAL WIRELESS: Allegations of False Information JUMBOSPORTS: Seeks Authority To Sell Realty To Urner's MONTGOMERY WARD: Seeks OK For $60M System Upgrade NATIONAL ENERGY: Motion For Dismissal of Petition Denied OMEGA ENVIRONMENTAL: Committee Informs Creditors of Status ONEITA INDUSTRIES: Seeks Lease Amendment For Corporate HQ PANGBURN CANDY: Judge Denies Financing Request PITTSUBURGH PENGUINS: Lemieux Interested in Acquisition RINCON ISLAND: Debtor Applies To Employ Accountants SYQUEST TECHNOLOGY: Meeting Of Creditors Set UNCLE B'S: Announces Extension of DIP Financing WINDSOR ENERGY: Debtor Applies To Employ Accountants WORLDWIDE DIRECT: Seeks To Employ Houlihan Lokey WSR CORP: Seeks Extension To Assume/Reject Leases YES! ENTERTAINMENT: Files Chapter 11 Petition ********* AMERICAN RICE: Applies To Employ Fulbright & Jaworski ----------------------------------------------------- The debtor, American Rice, Inc. applies to employ Fulbright & Jaworski as intellectual property special counsel to the debtor. The firm will represent the debtor in connection with all intellectual property matters, including without limitation trademark, copyright and patent matters. The firm will charge hourly rates. The hourly rates of the attorneys who are anticipated to have substantial involvement in the representation range from $250 per hour to $360 per hour. Fulbright holds a prepetition claim against the debtor in the amount of $33,668 for services rendered through August 10, 1998. Within one year prior to the commencement of this case, Fulbright received payments totaling $65,997 for services rendered and expenses incurred. AMERITRUCK DISTRIBUTION: Applies To Appoint Auctioneer ------------------------------------------------------ The debtors, Ameritruck Distribution Corp., et al., seek an order appointing Taylor & Martin, Inc. as the auctioneer to conduct auctions and solicit private sales of property of the estates. The debtors desire to utilize the services of an auctioneer/broker to advertise, promote, and professionally remarket certain of the debtors' rolling stock ("vehicles"). Taylor & Martin offered to guarantee that sales of the vehicles would yield a percentage totaling approximately 90% of the estimated value of the vehicles. Upon reviewing the proposals, the debtors concluded that entering into a Remarketing Agreement with TMI is in the best interests of the estates. The combined estimated value of the vehicles is $27,583,750. It is predicted that the private and auction sales will result in $24,825,375. AMERITRUCK DISTRIBUTION: Seeks Nod For Key Employee Plan -------------------------------------------------------- Ameritruck Distribution Corp. seeks approval of a key employee incentive plan. The incentive plan provides for a retention bonus and a success bonus for certain employees. The total cost of the retention bonuses will be approximately $620,000. The success bonus pool is subject to a cap of $500,000. ARIMETCO INC: Court Denies Motion For Acquisition ------------------------------------------------- PolyMet Mining Corporation (Vancouver:POM) announced that the United States Bankruptcy Court for the District of Arizona denied a motion by Arimetco Inc. seeking approval of PolyMet's acquisition of Arimetco's entire interest in four State of Minnesota metallic minerals leases. PolyMet intends to support continued efforts to complete the acquisition. The leases encompass approximately 3,344 total acres and cover a portion of the Babbitt polymetallic mineral deposit located approximately six miles southwest of Babbitt, Minnesota. The western- most lease is adjacent to PolyMet's NorthMet Project. The leases are part of Arimetco's Chapter 11 bankruptcy estate. PolyMet was to acquire Arimetco's interest in the leases for certain cash installment payments over ten years and PolyMet's agreement to cure certain arrearages under the leases created by Arimetco. The transaction was subject, among other things, to Arimetco's receipt of an order from the Bankruptcy Court approving the sale. Arimetco has ten days from the February 5, 1999 decision to appeal or to file a Motion for Reconsideration. PolyMet is advised by Arimetco that Arimetco intends to file a new motion requesting approval of the transaction prior to the deadline, and PolyMet will support the motion. PolyMet wishes to emphasize that this recent court decision in no way impacts the planned timely development of its NorthMet Project in northern Minnesota. BEAL MOUNTAIN MINING: Trustee Seeks To Employ Accountant -------------------------------------------------------- Kelvin Buchanan, trustee in the Chapter 7 proceedings of Bela Mountain Mining, Inc. and its affiliated debtors seeks to retain Charles Morrison CPA as the trustee's accountant. Morrison's current hourly rate is $110 per hour. BLUE RIBBON: Poised to Emerge From Bankruptcy --------------------------------------------- The Daily Oklahoman reports on February 6, 1999 that Blue Ribbon Downs returns to bankruptcy court next week with its strategy to repay 62 creditors owed $3.38 million. The hearing Wednesday by U.S. Bankruptcy Judge Tom Cornish in Ada could bring to a close Blue Ribbon's nearly two-year stint under Chapter 11 protection. Track officials want Cornish to sign off on their reorganization plan. Blue Ribbon, which runs quarter horse and thoroughbred races, made a Chapter 11 filing in March 1997 amid unpaid bills and threats of foreclosure. BMJ MEDICAL: Seeks Order Authorizing Special Tax Counsel -------------------------------------------------------- The debtors, BMJ Medical Management, Inc. seeks a court order authorizing the debtors to employ and retain Benesch, Friedlander, Coplan & Aronoff as Special Tax Counsel. The debtors request authority to retain the firm to represent the debtors by providing tax advice in connection with the restructuring of the debtors' businesses, including their relationships with the Medical Practices. The firm will advise the debtors of their rights, powers and duties under federal, state, and local tax laws; advise the debtors concerning the tax implications of , and assisting in the negotiation and documentation of any restructurings of the debtors relationships with the Medical Practices; counsel the debtors in connection with the formulation, negotiation, and promulgation of plans of reorganization and related documents. The firm will charge its hourly rates, which currently range from $110 per hour for legal assistants to $335 per hour for partners. BMJ MEDICAL: Meeting of Creditors Scheduled ------------------------------------------- BMJ Medical Management, Inc. filed a petition under Chapter 11 of the Bankruptcy Code on December 17, 1998 by in the United States Bankruptcy Court, District of Delaware. Attorney for the debtor is: Norman L. Pernick 222 W. Delaware Ave. Suite 1200 Wilmington, Delaware 19899 A meeting of creditors will be held on February 19, 1999 at 10:00 AM, 844 King Street, Room 2313 Wilmington, Delaware 19801. BMJ MEDICAL: Seeks To Retain Special Projects Accountants --------------------------------------------------------- The debtors, BMJ Medical Management, Inc. et al., seek to retain Paul Hogan & Associates, Ltd. as special projects accountants for the debtors to provide accounting services in connection with the Medical Practices. The firm will be responsible to work with the debtors and the Medical Practices to reconcile the due to/from accounts for the Medical Practices; and assist the debtors in preparing quarterly reports for the Office of the United States Trustee. The firm will charge its hourly rates that currently range from $80 per hour for staff to $150 per hour for partners. CML GROUP: Gets $75 Million Offer For Smith & Hawken ------------------------------------------------------ CML Group Inc.'s lender is offering total consideration of about $75 million for the stock in the company's profitable retail chain, Smith & Hawken Ltd. Two entities, DDJ Funds, by DDJ Capital Management LLC, and the State of Wisconsin Investment Board, generated the bid. The group, which had always reserved the right to bid, offered about $53 million for the chain of upscale garden supply stores, plus another $22 million at the Smith & Hawken level, with a net benefit to the estate of $75 million, according to an attorney involved in the case. Acton, Mass.-based CML Group filed for bankruptcy in mid-December, listing assets and liabilities of $31.6 million and $78.4 million, respectively. (The Daily Bankruptcy Review and ABI Copyright c February 10, 1999) COLDWATER CREEK: Catalog Retailer to Close Idaho Center ------------------------------------------------------- Coldwater Creek Coldwater Creek, a catalog retailer, will close its Sandpoint, Idaho, call center and lay off 96 workers in North Idaho, the company announced late last week, according to The Spokesman-Review. In addition, 35 employees at the company's Parkersburg, W.V., call center will also be laid off. One of North Idaho's largest employers, Coldwater Creek will employ about 1,000 people after the layoffs. The layoffs are in the wake of lower sales throughout the catalog industry, according to Coldwater Creek CEO and President Dennis Pence. Pence said that the industry has been troubled for about six months, and several large catalog retailers announced poor sales in January. Land's End Inc. announced it would close stores and cut more than 10 percent of its salaried employees, and J. Peterman recently filed chapter 11. (ABI 10-Feb-99) COMMERCIAL FINANCIAL: Committee Taps Attorneys ---------------------------------------------- The Official Committee of Asset-Backed Security ("ABS") Holders apply for authority to employ Gable & Gotwals as its local Oklahoma counsel. The Committee also seeks authority to hire Fried, Frank, Harris, Shriver & Jacobson as its attorneys in the case. Whether or not CFS is a viable entity with the capacity to continue to be the caretaker and servicer of the ABS Holders' assets is the paramount issue in this case. As a result, the official ABS Committee's role and function in these cases takes on great importance, and the Committee believes that Fried Frank is an important choice for the committee due to the firm's skill and sophistication with respect to complex financing transactions and structures like the ones employed by CFS in connection iwth the issuance of the CFS Securities. DAVIE INDUSTIRES: Files Proposal to Creditors --------------------------------------------- Davie Industries, Montreal, filed a proposal to its creditors under the Bankruptcy and Insolvency Act yesterday, according to a newswire report, and the court has set a May 10 meeting for the general creditors. The proposal offers that all assets of Davie Industries will be sold and the proceeds will be allocated in the following order of priority: sums owed to the governments of Canada and the provinces with respect to payroll deductions, which is about C$2 million; secured claims of about C$64 million; preferred claims, which are essentially unpaid wages and vacations owed to employees; and unsecured claims. Dominion Bridge Corp. and Cedar Group of Canada, the two parent companies of Davie Industries, will file their proposals today. (ABI 10-Feb-99) FASTCOMM: Seeks Emergency Financing From Commerce Funding --------------------------------------------------------- The debtor, Fastcomm Communications Corporation seeks authority to obtain postpetition financing from Commerce Funding Corporation. Fastcomm needs immediate financing to pay for continuing operating expenses, including rent, payroll, materials, and product for the next few months. GENEVA STEEL: Court Proceedings Moved To District Court ------------------------------------------------------- Geneva Steel announced that its case under Chapter 11 of the United States Bankruptcy Code was withdrawn from the Bankruptcy Court by the U.S. District Court for the District of Utah. U.S. District Judge J. Thomas Greene was assigned to preside over the bankruptcy case. Geneva's motion to withdraw the case was supported by its major creditors, lenders and others having an economic stake in the outcome of the bankruptcy proceedings. "We remain strongly committed to Geneva's survival and future success," said Joseph A. Cannon, chairman and chief executive officer. "We will continue to seek reorganization under Chapter 11 and approval of a debtor- in-possession credit facility which will allow the Company to serve its customers and to pay post-petition vendors in the ordinary course. In the interim, Geneva has access to incoming cash flow from operations pursuant to a cash collateral order previously granted by the Bankruptcy Court." Geneva Steel is an integrated steel mill operating in Vineyard, Utah. The Company manufactures steel plate, hot- rolled coil, pipe and slabs for sale primarily in the western, central and southeastern United States. (ABI 10- Feb-99) INTERNATIONAL WIRELESS: Allegations of False Information ---------------------------------------------------------- By verified statement, Leonard P. Goldberger, attorney, of the firm White And Williams LLP, representing more than one creditor and/or equity security holders, submits in a Verified Statement that a certain Information Statement dated November 23, 1997 pursuant to a solicitation of shareholders of Radio Movile Digital, Inc. (RMD), to approve IWCH's acquisition of RMD by merger contained fraudulent, false and misleading and/or material misstatements and omissions of fact. Goldberger states that the Information Statement stated that shareholders who did not vote in favor of the merger were entitled to appraisal rights and to be paid for their RMD stock in cash. The merger closed in January, 1998 and IWCH acquired RMD for $73.9 million, the proceeds of which were paid to RMD's shareholders entirely in IWCH stock. The verified statement alleges that prior to closing of the merger, IWCH and its directors and officers knew a loan from certain Malaysian banks to its Prismanet subsidiary was is default, but failed to disclose this material fact to RMD shareholders in the Information Statement. The Statement also submits that IWCH also knew, but failed to disclose, that the Prismanet default would cause cross- defaults on IWCH's indenture, which totaled $92.785 million as of December 31, 1997. The Statement alleges that with this knowledge, the vote to approve the merger would not have succeeded, and the claimants would have exercised their dissenters' rights to be paid the appraised value of their RMD stock in cash. The claimants' stock in IWCH that was worth approximately $3.5 million as of January, 1998 was worthless as of the date IWCH filed for bankruptcy protection. The claimants' aggregate claim against IWCH is approximately $3.5 million. JUMBOSPORTS: Seeks Authority To Sell Realty To Urner's ------------------------------------------------------ Pursuant to a prepetition contract to sell real property, the debtors, JumboSports Inc. and its affiliates seek to sell certain real property located a t 4110 Wible Road in the City of Bakersfield, County of Kern, State of California. The debtor constructed a building on the real property but decided not to open a store on the property. The property is presently unoccupied and the debtor does not conduct business thereon. On November 13, 1998, the debtor and Urner's Inc. entered into a purchase and sale agreement for the property for a total purchase price of $2 million. The debtor desires to assume the agreement. Prior to the petition date, the debtor engaged in extensive efforts to market the real property and determined that the proposed sale price offered by the buyer is the highest and best offer received, is reasonable, represents fair market value and is in the best interests of the estate. MONTGOMERY WARD: Seeks OK For $60M System Upgrade ------------------------------------------------- Montgomery Ward & Co. Inc. is seeking approval to enter into a $60 million computer software purchase and maintenance agreement with ICL Retail Systems to replace the company's point-of-service software at its 252 locations. "The current system being used by the Debtors utilizes technology that is over 10 years old. The hardware is no longer manufactured, cannot be upgraded and is expensive to maintain. . . It also lacks the processing power required to update expeditiously promotional pricing files. Further, the current system's disk drives and memory are at maximum capacity and require constant reallocation to enable several business critical functions to be used," the Jan. 29 motion argues. (The Daily Bankruptcy Review and ABI Copyright c February 10, 1999) NATIONAL ENERGY: Motion For Dismissal of Petition Denied -------------------------------------------------------- National Energy Group, Inc. (OTC Bulletin Board: NEGXQ) announces that the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, denied the Company's Motion to Dismiss the Involuntary Petition under Chapter 11, Title 11 of the United States Code filed by certain of the Company's 10-3/4% Senior Note Bondholders on December 4, 1998. In support of its Motion, the Company represented to the Court that (i) it was current in all its obligations except for the outstanding interest in the approximate amount of $9 million to the 10- 3/4% Senior Note Bondholders, and (ii) it had made an agreement with the holder of its Restated Loan Agreement to make available sufficient funds to pay all the outstanding accrued interest owing to the 10-3/4% Senior Note Bondholders upon dismissal of the Involuntary Petition. The Court's entry of an Order for Relief places the Company under the protection of the Court. The Company will continue to operate its business and manage its properties during its Chapter 11 case proceeding and precludes payment of the interest owing to the 10-3/4% Senior Note Bondholders at this time. The Company anticipates proposing a Plan of Reorganization in accordance with federal bankruptcy laws as administered by the Court. National Energy Group, Inc. is a Dallas, Texas based independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations primarily in Louisiana, Texas, and Oklahoma. OMEGA ENVIRONMENTAL: Committee Informs Creditors of Status ---------------------------------------------------------- The Unsecured creditors' Committee of Omega Environmental, Inc. notified its creditors that most of the petroleum service division units of the company have been sold and the proceeds paid to BNY. Only the Dallas unit of PSD remains to be sold and a notice to approve the sale is outstanding. All of the proceeds of the sales have been paid to BNY Financial. The Environmental Service Division is currently being marketed through an investment banker. Unless the company sells for an amount in excess of $24-$25 million, it is unlikely that the unsecured creditors will obtain any direct benefit from the sale. The other significant asset in the case is litigation presently ongoing with Gerald Blohorn and Palm Funding. The original ruling is currently being reconsidered and will be appealed. However, if the current ruling stands, there will not be any dividends paid to unsecured creditors. If the debtors are successful, there is a formula for the sharing of the proceeds. The Committee believes that the unsecured claims in the case are approximately $15 million. If the estate prevails in the above litigation, that number will double to $30 million. If the debtor is successful, there could be a significant distribution to creditors. The exact percentage would depend on the amount of claims finally allowed, and the amount of any BNY Financial deficiency. ONEITA INDUSTRIES: Seeks Lease Amendment For Corporate HQ --------------------------------------------------------- The debtor, Oneita Industries, Inc. seeks to enter into a lease amendment for its corporate headquarters, to assume the amended lease, and to assign its subleases to lessor. The debtor only requires approximately 37% of the space covered by the Overlease. The debtor subleases about one- third of the excess space to three separate subtenants. Pursuant to the amendment to the lease, the debtor will return those portions of the headquarters that the debtor does not use, and the subleases will be assigned to the landlord. The amendment t also shortens the term of the lease to five years. The debtor is provided with a period of four months to cure the prepetition rent arrearages and is required to pay the landlord approximately $70,000 in costs and expenses incurred or anticipated to be incurred by the landlord in connection with the amendment. Further, there is a surrender agreement with one of the debtor's current subtenants. The lease amendment is to the advantage of the debtor, and the debtor will be relieved of certain obligations under the lease. PANGBURN CANDY: Judge Denies Financing Request ---------------------------------------------- Yesterday Bankruptcy Judge Massie Tillman ruled that Pangburn Candy Co., which filed chapter 11 on Feb. 1, may not use almost $250,000 held by NationsBank Dallas to pay creditors for supplies and services, The Star-Telegram reported. Last week, the company had asked the court for approval on using the money, which the bank said is collateral for almost $7 million in loans to Pangburn. The Fort Worth, Texas, candy company's officers and investors met following the ruling to consider its options and reportedly is resuming discussions with NationsBank. During the hearing, attorneys for NationsBank said the company's continuing losses are eroding their collateral; Judge Tillman agreed and suggested that Pangburn find the money to cover operating losses. He said "It appears there's a strong possibility the shareholders could recapitalize this company." In a recent court filing, Pangburn reported that in July investors pumped $3.6 million into the company. At the hearing, Pangburn President Jim Phillips acknowledged that some shareholders and investors are capable of providing more money. Attorney John Penn of Haynes and Boone, which represents NationsBank, said "the issue was who will bear the risk for losses on the ongoing operations. The court ruled it will not be the bank." Following the hearing, Penn said it is unusual for the bank to challenge a debtor's use of cash collateral so early in a bankruptcy case, but that the bank believes the company's financial condition warrants the action. He argued in court that Pangburn missed its 1998 income projections and the sales and profit forecasts are likely flawed. (ABI 10-Feb-99) PITTSUBURGH PENGUINS: Lemieux Interested in Acquisition ------------------------------------------------------- Mario Lemieux, a former Pittsburgh Penguin, has expressed an interest in locating partners to help him buy the bankrupt team and keep it in Pittsburgh, according to the Associated Press. The team officially began its search for different ownership yesterday after co-owner Roger Marino withdrew his request to be solely permitted to reorganize the team's finances. The National Hockey League Players Association voted in opposition to Marino's planned request for an extension on exclusivity. Lemieux, who is owed some $26 million in deferred salary, heads the creditors' committee and was pleased by Marino's change in plans. The Penguins filed chapter 11 in October with debts of about $125 million, which is more than the franchise's worth of about $95 million. The SMG management group, which operates the Civic Arena and Three Rivers Stadium, is also reportedly interested in acquiring an ownership stake. It is believed that if a local buyer does not step forward, Marino will ask the court to authorize selling the team to out-of-town buyers. (ABI 10-Feb-99) RINCON ISLAND: Debtor Applies To Employ Accountants ---------------------------------------------------- The debtors, Windsor Energy US Corporation and Rincon Island Limited Partnership submitted an application to the Office of the Untied States Trustee seeking authority to employ Eddye Dreyer as its general bankruptcy accountant. The accountants will prepare weekly and monthly cash reports, assist the debtor with any sale of assets that mya be necessary, assist the debtor with its reporting of assets, liabilities, financial condition and anything else relevant to the case, and provide such other accounting services as may be required by the debtor. SYQUEST TECHNOLOGY: Meeting Of Creditors Set -------------------------------------------- Syquest Technology, Inc. filed a petition under Chapter 11 of the Bankruptcy Code on November 17, 1998. Attorneys for the debtor are Patrick A. Murphy and Tobias S. Keller, Murphy Sheneman Julian & Rogers, 101 California Street, 39th Floor, San Francisco, California. A meeting of creditors will be held on March 29, 1999 at 9:30 AM at Office of the U.S. Trustee, "Special Location" U.S. Federal Building, North Tower 1301 Clay Street, 2nd Floor Auditorium, Oakland, California 94612. UNCLE B'S: Announces Extension of DIP Financing ----------------------------------------------- Uncle B's Bakery, Inc. announced the Loan and Security Agreement by and between Bank Austria Creditanstalt Corporate Finance, Inc. and Uncle B's Bakery, Inc. dated October 30, 1998 covering Debtor in Possession Financing (DIP Financing) has been extended through July 31, 1999. Uncle B's Bakery produces and markets the "Uncle B's" and "Millspring" brands of never frozen bagels. The company's products are an alternative to frozen bagels. Uncle B's is traded on the OTC Bulletin Board under the symbol UNCB. WINDSOR ENERGY: Debtor Applies To Employ Accountants ---------------------------------------------------- The debtors, Windsor Energy US Corporation and Rincon Island Limited Partnership submitted an application to the Office of the Untied States Trustee seeking authority to employ Eddye Dreyer as its general bankruptcy accountant. The accountants will prepare weekly and monthly cash reports, assist the debtor with any sale of assets that may be necessary, assist the debtor with its reporting of assets, liabilities, financial condition and anything else relevant to the case, and provide such other accounting services as may be required by the debtor. WORLDWIDE DIRECT: Seeks To Employ Houlihan Lokey ------------------------------------------------ The debtors, Worldwide Direct, Inc., et al. seek to employ Houlihan Lokey Howard & Zukin Capital as their financial advisors nunc pro tunc to the Petition Date. The debtors intend to sell substantially all of the assets of their estates and have negotiated an agreement with AT&T for the purchase of SmarTalk Assets for $192.5 million subject to adjustment. An auction will be held to test the value of the SmarTalk assets. The debtors wish to employ Houlihan to aggressively market the SmarTalk assets to the public. If retained, Houlihan will advise and assist the debtors in identifying entities who potentially may be interested in acquiring assets through the auction process; assist potential bidders for the debtors' assets in obtaining necessary information and otherwise facilitate the sale process; and advise the debtors on asset valuation and developing a set of financial alternatives. Pursuant to a Letter agreement, Houlihan will receive monthly fees of $100,000 for a minimum of two months; and a transaction fee equal to .25% of the aggregate consideration received by the debtors for the proposed sale transaction, less 50% of the monthly fees actually received by Houlihan. WSR CORP: Seeks Extension To Assume/Reject Leases ------------------------------------------------- The debtors, WSR Corporation, R&S/Strauss, Inc., National Automotive Stores, Inc. and National Auto Stores Corp. seek to extend the debtors' time within which to assume or reject unexpired leases of nonresidential real property. The debtors are currently parties to more than 90 leases and subleases. The debtors are currently evaluating every aspect of their business and the profitability of each of its stores. The leases are valuable assets of the debtors' estates and the debtors believe they will be unable to make reasoned decisions by the current deadline of February 4, 1999. The debtors seek an extension of approximately 120 days until June 4, 1999. YES! ENTERTAINMENT: Files Chapter 11 Petition --------------------------------------------- YES! Entertainment (OTC BB: YESS) announced that it has filed a voluntary petition with the United States Bankruptcy Court for the District of Delaware in Wilmington under Chapter 11 of the Federal Bankruptcy Code. The Company also disclosed today that Infinity Investors, Ltd. has agreed to provide a $20 million working capital facility in connection with the Chapter 11 case. The new facility, which the Company anticipates getting approved by the bankruptcy court tomorrow, will replace the Company's existing facility with Bank of New York and provide YES! with significant additional borrowing capacity. Mark C. Shepherd, Chief Executive Officer of YES! Entertainment, said, "Operating in Chapter 11 will allow the Company to implement its strategic plan and reach our ultimate goal, to return the Company to profitability. In addition, the financing gives YES! the necessary resources to support and develop its product lines and will help ensure that YES! will be able to reorganize as a going concern." The Chapter 11 filing stays creditors' claims while the Company develops its plan for emergence from Chapter 11. YES! will continue to operate its business in the ordinary course during the duration of the Chapter 11 case and anticipates emerging from Chapter 11 as a stronger, more viable competitor. YES! Entertainment Corporation develops, manufactures and markets toys and other children's products, including a variety of interactive products. YES! uses innovative technology to design products that are fun for children and build on their natural creativity. ********* 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 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 1999. 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 * * *