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/raid1/www/Hosts/bankrupt/TCR_Public/990219.MBXT R O U B L E D C O M P A N Y R E P O R T E R Friday, February 19, 1999, Vol. 3, No. 34 Headlines ANESTHESIA SOLUTIONS: Seeks To Retain Consultants/Experts BISCAYNE APPAREL: Case Summary & 20 Largest Creditors BISCAYNE APPAREL: Reports Asset Purchase Agreement to SEC BMJ MEDICAL: Seeks Extension To Accept/Reject Leases BP AMOCO: Announces Cutting 3,000 More Jobs FIX CORP: Forced To File Chapter 11 FOOD COURT ENTERTAINMENT: Hearing on Disclosure Statement GENEVA STEEL: Seeks Approval For $125 Million Financing GEOTEK: Keeping Up With the Wireless Industry GULFPORT ENERGY: Reports Reverse Stock Split HJ HEINZ: Plans To Cut 3,000 to 4,000 Jobs JPE: Selling Wheel-Nut Manufacturing Division LEROSE AUTO: Dealership Files For Bankruptcy-Owes $1-$10M LIVENT INC: Cablevision's Unit Making a Bid MONTGOMERY WARD: To File Plan Without Disclosure Statement NU-KOTE: Reports Third Quarter Results ONEITA INDUSTRIES: Seeks To Extend Exclusivity SGL CARBON: Committee Supports Dismissal THE J. PETERMAN CO: Committee Taps Taft, Stettinius THREE D DEPARTMENTS: Seeks Nod To Employ Investment Banker TOWN & COUNTRY: Meeting of Creditors WORLDCORP INC: Case Summary & 20 Largest Creditors WORLDWIDE DIRECT: Committee Seeks To Employ Counsel WORLWIDE DIRECT: First Meeting of Creditors WORLDWIDE DIRECT: Seeks To Retain Litigation Counsel DLS CAPITAL PARTNERS: Bond Pricing For Week Of February 15 ********* ANESTHESIA SOLUTIONS: Seeks To Retain Consultants/Experts --------------------------------------------------------- The debtor, Anesthesia Solutions, Inc. seeks authority to employ and retain Medwig Labriola & Co. as consultants/ experts in various litigation matters. The firm has already been approved to advise and counsel the debtor with respect to one case and the debtor believes that the firm is familiar with the operations of the debtor, and is best qualified to consult with the debtor in other cases. The firm will review all necessary documents, prepare expert reports, consult with the debtor in preparing for, trying and arguing the litigation and appeal, appear as an expert witness on behalf of the debtor. The firm will charge on an hourly basis of $145 per hour. BISCAYNE APPAREL: Case Summary & 20 Largest Creditors ----------------------------------------------------- Debtor: Biscayne Apparel, Inc. 1373 Broad Street Suite 312 Clifton, NJ 07013 Type of business: Apparel Manufacturer Court: Southern District of New York Case No.: 99-40737 Filed: 02/05/99 Chapter: 11 Debtor's Counsel: Nicholas Kajon Solomon Green & Ostrow, P.C. 919 Third Avenue New York, NY 10022 (212) 319-8500 Richard N. Tilton Greenberg Traurig Hoffman Lipoff Rosen & Quentel 153 East 53rd Street New York, NY 10022 (212) 801-9225 Total Assets: $21,300,000 Total Liabilities: $13,092,353 No. of shares of common stock 10,997,666 - 2,190 holders 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ First Union National Bank Subordinated Notes 6,954,980 U.S. Bank NA Subordinated Notes 6,954,980 AON Risk Services Trade debt 2,419 Harold H. Goldberg & Co. Rent 2,286 Bowne of Atlanta Trade debt 790 Allied Office Supplies Trade debt 570 American Stock Transfer & Tr. Business Expense 500 Bell Atlantic Business Expense 259 Corporate Financials Online,I Trade debt 175 Business Wire Trade debt 60 Belmar Spring Water Co. Trade debt 47 BISCAYNE APPAREL: Reports Asset Purchase Agreement to SEC --------------------------------------------------------- Biscayne Apparel, Inc. (the "company") announced that it and its subsidiary, M&L International, Inc. ("M&L") filed for protection under Chapter 11. The Company did not make the interest payment due on December 15, 1998 relating to its 13% Subordinated Notes due December 15, 1999. Pursuant to the Indenture for the Subordinated Notes, the Company's nonpayment of interest became an event of default under the Subordinated Notes. The company has not been in compliance with the requirements of its Loan Agreement with its bank lenders relating to collateral coverage and levels of tangible net worth. The Company's senior bank lenders have allowed the Company to remain in violation of its Loan Agreement. However, a Reservation of Rights and Waiver agreement was entered into whereby the Company's senior bank lenders agreed to extend credit at their discretion without waiving any rights that arose upon the events of default. The company previously announced that it had retained the investment banking arm of Kurt Salmon Associates, an Atlanta-based consultant to retailers and consumer products companies, to advise the company on strategic alternatives. As a result of this process, the company determined to dispose of the majority of the assets of its subsidiaries' Biscayne Apparel International, Inc.("BAII") and Mackintosh of New England Co. ("Mackintosh"). The Company is in the process of finalizing the sale and liquidation of the remaining assets of these subsidiaries. Biscayne Apparel Inc. announced that M&L has entered into an Asset Purchase Agreement and an Interim Agreement with a subsidiary of Amerex(USA) Inc. to purchase a substantial portion of M&L's assets and operations,subject to the approval of the Bankruptcy Court. The Asset Purchase Agreement, dated February 5, 1999, by and among M&L International, Inc. and M&L International (H.K.) Limited, as Sellers and, M&L International Group, LLC, M&L Hong Kong, Ltd. and Amerex (USA) Inc., as Buyer and Interim Agreement, dated February 5, 1999, by and among M&L International Inc., Amerex (USA) Inc. and M&L International Group, LLC are available via the Internet at: http://www.sec.gov/Archives/edgar/data/0000950144-99- 001397.txt BMJ MEDICAL: Seeks Extension To Accept/Reject Leases ---------------------------------------------------- The debtors, BMJ Medical Management Inc., et al., seek an extension of the time period within which the debtors must assume or reject leases of non-residential property. As of the petition date, the debtors were lessees or sublessees under approximately 105 unexpired leases of non-residential real property, which, with the exception of the lease of their corporate headquarters, are related to the Medical Practices. The debtors have focused on the administrative requirements attendant to operating a business in Chapter 11. The have concentrated their efforts on stabilizing their businesses and developing overall business plans. The have also dedicated a significant portion of their resources and attention to adversary proceedings required to ensure that the Medical Groups comply with their management services agreements with the debtors. The debtors are now positioned to develop plans of reorganization which will provide for recoveries to unsecured creditors. Thus, the debtors request that the extension run to and including July 15, 1999. BP AMOCO: Announces Cutting 3,000 More Jobs ------------------------------------------- London - BP Amoco is eliminating 3,000 more jobs and reported a sharp decline in fourth-quarter earnings due to oil prices that are at a 12-year low and a downturn in the refining and chemicals business. BP Amoco's chief executive, Sir John Browne, said today the latest job cuts are on top of 7,000 cuts already announced. Fourth-quarter profit after exceptional items fell to $532 million in the fourth quarter of 1998 from $1.62 billion a year earlier. The latest results reflected a $351 million charge covering integration costs caused by the merger of the two oil companies. FIX CORP: Forced To File Chapter 11 ----------------------------------- Fix-Corp International Inc., Beachwood, Ohio, announced that in an emergency hearing this week a county judge ruled in favor of Chatham Partners Inc. to vacate a Jan. 29 order that stayed enforcement of a New York judgement. As a result, Chatham can begin collection proceedings against Fix-Corp, according to a newswire report. Fix-Corp owes about $4.1 million, and management said it had no choice but to file for chapter 11 protection. Its four subsidiaries are not included. Fix-Corp had been granted a stay order in a New York court's decision confirming an arbitrator's award in favor of Chatham Partners, pending the outcome of an appeal. Chatham's claim against Fix-Corp stemmed from a December 1996 agreement in which Chatham was to act as Fix-Corp's exclusive financial advisor and placement agent for a private placement of up to $5 million of debt securities. As the arbitrator noted, Chatham did not raise the funds-Fix-Corp did. However, Chatham claimed that it was due compensation pursuant to language in the agreement, regardless of Fix-Corp's efforts. Fix-Corp is an international environmental-based recycler of post-consumer high-density polyethylene (HDPE) and producer of recycled post-consumer plastic resin. (ABI 18-Feb-99) FOOD COURT ENTERTAINMENT: Hearing on Disclosure Statement --------------------------------------------------------- The hearing to consider the approval of the Disclosure Statement shall be held before the Honorable Mary F. Walrath, U.S. Bankruptcy Judge, in the U.S. Bankruptcy Court for the District of Delaware, Fifth Floor, Marine Midland Plaza, 824 Market Street, Wilmington, Delaware 19801 on March 12, 1999 at 9:30 AM. GENEVA STEEL: Seeks Approval For $125 Million Financing ------------------------------------------------------- The Salt Lake Tribune reports on February 17, 1999 that Geneva Steel began another effort Tuesday to get federal court approval for a new $125 million financing agreement that it desperately needs to keep its operations afloat. The fate of the bankrupt Utah County steel mill now sits in the hands of U.S. District Judge J. Thomas Greene, who is expected to decide the company's future by Monday at the latest. But Greene also approved a motion by the U.S. Trustee's Office to appoint an examiner to look at the future viability of Geneva Steel and examine whether it can successfully reorganize under federal Chapter 11 bankruptcy law. The examiner is Alan Singer, a former Chapter 11 trustee from New York who specializes in turning around troubled companies. Battered by foreign imports and low prices for its products, Geneva Steel filed to reorganize under Chapter 11 on Feb. 1, saying it needed to renegotiate the terms of hundreds of millions of dollars in debt it took on in the past decade as it modernized its mill. The company's Chapter 11 reorganization effort was thrown into turmoil last week when U.S. Bankruptcy Court Judge John H. Allen declined to approve the company's financing request. But Geneva's attorneys succeeded in getting the case removed from Bankruptcy Court and transferred to U.S. District Court, where new hearings now are being held before Greene. Virtually everyone with a major financial stake in the company, from major creditors to bond holders and the steel workers union, turned out Tuesday in support of Geneva. They will be calling witnesses and interviewing experts over the next several days in hopes of convincing Greene the new financing is in the best interest of the company and its creditors. The only dissenting voice came from the U.S. Trustee's Office, represented by attorney Laurie Crandall. She said she was concerned Geneva would be giving up too much. The deal, which would give the lender first claim on all of Geneva's assets, could tie the hands of a Bankruptcy Court-appointed trustee if the company's situation deteriorates and it finds itself in a Chapter 7 liquidation, she said. GEOTEK: Keeping Up With the Wireless Industry --------------------------------------------- Nextel Communications, Inc. (Nasdaq: NXTL) today has asked the U.S. District Court for the District of Columbia to vacate a 1995 Consent Decree imposing limitations on the amount of 900 MHz spectrum Nextel can use in its business. The lawsuit stems from yesterday's U.S Bankruptcy Court for the District of Delaware's decision approving a proposed transaction in which Nextel would purchase failed Geotek's 900 MHz Specialized Mobile Radio (SMR) spectrum for $150 million. Nextel is seeking the court's intervention due to the U.S. Department of Justice's (DOJ) failure to recognize that the wireless industry has changed dramatically since entry of the decree and that the decree now actually reduces competition. Only Nextel, among the major domestic wireless competitors such as AT&T and Sprint, is artificially constrained in the amount of 900 MHz spectrum it can utilize to serve consumers. "There is no sound antitrust rationale for limiting Nextel's ability to compete in the advanced wireless industry," said Dan Akerson, chairman and CEO of Nextel. "The mere fact that Nextel had its roots in the analog dispatch business does not provide a sound policy basis for treating Nextel differently from the cellular and PCS carriers with whom we must compete. We believe that the marketplace is the right place for making these decisions." The origins of the consent decree were rooted in the DOJ's concerns that Nextel's acquisitions in the market for traditional analog dispatch services would enable it to be the dominant provider of low-tech dispatch service and DOJ's skepticism that Nextel would ever build an advanced digital mobile network. Those concerns clearly have no basis in fact. Nextel has built the largest guaranteed all-digital wireless network in the United States. Since the Consent Decree became effective, there have been a number of significant developments that have radically changed the competitive landscape in the wireless industry. In 1995, the FCC finalized its rules for the Commercial Mobile Radio Service (CMRS), a new carrier classification mandated by the regulatory parity provisions of the Omnibus Budget Reconciliation Act of 1993. The CMRS was crafted to include the so-called Enhanced Specialized Mobile Radio (ESMR) providers (such as Nextel) in the same regulatory classification with cellular and PCS licenses. In its CMRS rules, the FCC specifically rejected service requirements or limits on carriers, preferring instead to allow market forces to determine how carriers would employ their spectrum. The FCC set a spectrum cap of 45 MHz on CMRS carriers, presuming firms to accumulate cellular, PCS and SMR spectrum up to the cap. Even if Nextel were to acquire all the spectrum available for SMR at 900 MHz, it would fall far short of the spectrum cap. GULFPORT ENERGY: Reports Reverse Stock Split --------------------------------------------- Gulfport Energy Corporation, f/k/a WRT Energy Corporation provides an information statement to the stockholders of Gulfport Energy, that on January 21, 1999, the Board of Directors of the company approved certain amendments to the Company's certificate of incorporation. The amendments will effect a 50 to 1 reverse stock split of the issued and outstanding shares of the Company's common stock, par value $0.01 per share. Under Delaware law, the affirmative vote of the holders of a majority of the outstanding shares of the Company's Common Stock is required to approve the Amendment. On January 25, 1999, in accordance with Delaware law, the holders of a majority of the outstanding shares of the Company's Common Stock executed a written consent approving the Amendment The effect of the proposed Reverse Stock Split will be to reduce the number of shares of Common Stock outstanding without a change in the par value of Common Stock. The Board of Directors believes that the Reverse Stock Split will increase the marketability and liquidity of the Common Stock. HJ HEINZ: Plans To Cut 3,000 to 4,000 Jobs ------------------------------------------ H.J. Heinz Co. plans to eliminate 3,000 to 4,000 jobs during the next four years, sell its Weight Watchers diet classes and close some factories to increase its profits. Heinz officials said the company will concentrate on its food products, including Heinz ketchup and Ore-Ida potatoes. The plan aims to generate more than $2.5 billion over four years to reinvest in Heinz brands, and $100 million to market products in other countries. JPE: Selling Wheel-Nut Manufacturing Division --------------------------------------------- Financially troubled auto supplier JPE Inc. has reached an agreement to sell its wheel-nut manufacturing division to an Illinois company. MacLean-Fogg Co. will buy JPE's Industrial & Automotive Fasteners Inc. for an undisclosed amount of cash. JPE, which earlier sold its Canadian division and has two other divisions in bankruptcy, says proceeds from the IAF sale will be used to pay bank debt. IAF customers include General Motors, Ford, DaimlerChrysler, Toyota and Honda. MacLean-Fogg makes fasteners and other products including wheel nuts. LEROSE AUTO: Dealership Files For Bankruptcy-Owes $1-$10M ---------------------------------------------------------- The Charleston Gazette reports on February 17, 1999 that the continuing financial crisis of Summersville's LeRose family began a new chapter last week, when one of its auto dealerships filed for bankruptcy. Summersville Mayor Steve LeRose and his four brothers have been fighting to postpone auctions of their businesses and personal property since late last year. Two years ago, LeRose surprised political observers when he resigned as chairman of the state Republican Party. A few days earlier, investigators from a Princeton bank discovered $3.4 million in alleged "payments system fraud" by LeRose and other family members. Rodney L. LeRose was president of LeRose Nissan-GMC Trucks Inc., the dealership that filed for Chapter 11 bankruptcy on Thursday. That filing will protect the remaining assets of LeRose Nissan from creditors and possible foreclosures until federal bankruptcy officials hold formal hearings. Rodney LeRose signed the three-page document filed with federal bankruptcy officials in Charleston. That document revealed that LeRose Nissan owes creditors between $1 million and $10 million, while its assets are worth between $500,000 and $1 million. Rodney LeRose reported that his company has between 16 and 49 creditors. The initial bankruptcy filing did not list any specific creditors or debts owed. Those forms should be filed within the next several days. Bankruptcy officials have not yet scheduled hearings. Rodney LeRose did not return a telephone message left at LeRose Nissan in Summersville on Tuesday afternoon. John Charnock, a Charleston lawyer who represents Rodney LeRose, declined to comment on the case. The bankruptcy filing came days after the latest scheduled auctions of LeRose Nissan and other LeRose family properties. There have been three postponements of auctions since early January. Princeton Community Bank is attempting to cash in on several deeds of trust against LeRose Nissan, LeRose Ford Ltd., LeRose Motors and LeRose Brothers Ltd. The bank is also attempting to auction homes owned by all four LeRose brothers: Steve, Rodney, Douglas Mark and Timothy Wayne. Princeton Community Bank began pursuing legal action after it discovered the alleged "payments system fraud" perpetrated by Steve LeRose, Rodney LeRose and other family members. The LeRoses were kiting bank loans, according to the bank's 1996 annual report. The LeRoses had signed 40 deeds of trust on business properties and personal homes in Summersville. Jerry J. Cameron, a Bluefield lawyer who represents the bank, has declined to discuss the bank's actions. The LeRose family is also facing two lawsuits. In October, Ford Motor Credit Co. sued them for $4.5 million for selling vehicles but never paying Ford for them. In January 1998, Chrysler Financial Corp. filed a similar action, seeking repayment of more than $400,000 for cars the LeRoses sold. First Community Bank's 1996 annual report stated, "The transactions commonly referred to as a 'kite' involved the transfer of nonexistent funds between a subsidiary bank of the company and a third party to cover existing overdrafts." Steve LeRose ran into similar problems when he was chairman of Evergreen Federal Savings in Charleston. Evergreen Federal Savings left taxpayers with a $2.4 million bill when U.S. Office of Thrift Supervision agents seized the bank on Sept. 13, 1991. Federal agents immediately removed LeRose as bank president. In 1987 and 1988, Evergreen lent more than $5.7 million to customers who purchased vehicles from LeRose and fellow Evergreen Director C.E. White, who owned White Dodge in Charleston and interests in four other car dealerships. Many of those loans went to car buyers with poor credit ratings who were unable to obtain loans from other banks. Many loans to these customers were never repaid to Evergreen. LIVENT INC: Cablevision's Unit Making a Bid ------------------------------------------- Cablevision System Corp.'s Madison Square Garden (MSG) unit owner of the National Hockey League (NHL) New York Rangers, the National Basketball Association (NBA) New York Knicks, and other sports properties is prepared to make a bid for the bankrupt Livent Inc. theater company. Other companies with sports properties interested in Livent include The Walt Disney Co. and SFX Entertainment. Cablevision has in fact had an attorney at the Livent bankruptcy proceedings, and Cablevision investment banker Bear Stearns was looking into the company before the bankruptcy filing in November 1998. To get its hands on Livent a vertically integrated theater company responsible for Ragtime and scores of other shows MSG will have to best competitors that include Stoll Moss from the United Kingdom. Livent could go for up to $120 million, according to sundry analysts, but at that number one of the principals, Hollywood superagent turned supermanager Michael Ovitz, would have to take a loss. Ovitz will need all the capital he can get his hands on: his is one of three groups vying for the 32nd National Football League (NFL) franchise. Ovitz would bring a team to Carson, California, outside Los Angeles, but first he has to best a competing bid tied to a renovated Los Angeles Memorial Coliseum, and a third bid from a group in Houston, Texas, with deep pockets. (Interactive Sports - 02/17/99) MONTGOMERY WARD: To File Plan Without Disclosure Statement ---------------------------------------------------------- Montgomery Ward & Co. is seeking approval to file its reorganization plan without an accompanying disclosure statement and would instead file the statement at its discretion at a later time. "The Debtors are in the process of preparing a plan of reorganization (the "Plan"), as well as a disclosure statement, and expects to file the Plan in the near term," asserts the Feb. 16 motion. "However, it is not certain at this junction that the disclosure statement will be filed at the same time as the Plan." If that happens, the motion continues, it would be in the best interest of Montgomery Ward, its estate, and all parties in interest, for the retailer to have authority, in its sole discretion, to file the plan prior to the filing of a disclosure statement. (The Daily Bankruptcy Review and ABI Copyright c February 18, 1999) NU-KOTE: Reports Third Quarter Results -------------------------------------- Nu-kote Holding, Inc. (OTC Bulletin Board: NKOT) reported its results for the fiscal quarter ended December 25, 1998. Net sales for the quarter ended December 25, 1998, were $59.2 million, a decline of $11.6 million or 16.3% over the quarter ended December 26, 1997. Worldwide sales of non-impact supplies accounted for 56.8% of total sales for the quarter ended December 25, 1998, compared to 58.8% of total sales in the quarter ended December 26, 1997. For the quarter ended December 25, 1998, the Company recognized a net loss of $9.8 million, which was favorable to the net loss of $15.0 million reported in the previous year period. The decrease in net loss is directly attributable to: (1) improvement in gross margins; (2) lower selling, general and administrative spending; (3) reduced restructuring expenses; and (4) the non-recurring loss of $4.1 million realized in the prior year relative to the sale of the Company's components business. Net sales for the nine months ended December 25, 1998, were $178.5 million, a decline of $44.7 million or 20.0% over the nine months ended December 26, 1997. Worldwide sales of non-impact supplies accounted for approximately 55.9% of total sales for the nine months ended December 25, 1998, compared to 59.7% of total sales in the nine months ended December 26, 1997. For the nine months ended December 25, 1998, the company recognized a net loss of $27.1 million, compared to the net loss of $31.5 million realized in the previous year period. This improvement on substantially lower sales is attributable to the following favorable items: (1) reduced selling, general and administrative spending, and research and development expenses; (2) restructuring costs of $3.3 million incurred in the prior year period as compared to $0.4 million in the current year period; (3) the non- recurring extraordinary loss of $2.5 million realized in the second quarter of the prior year relative to the early extinguishment of debt; and (4) the loss of $4.1 million realized in the prior year relative to the sale of the Company's components business. The above were partially offset by greater interest costs incurred during the nine months ended December 25, 1998. On November 6, 1998, Nu-kote and its U.S. operating subsidiaries filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Tennessee in Nashville. Nu-kote manages a global portfolio of companies in the imaging supplies industry. Nu-kote produces supplies for printers, copiers, fax machines and inkjet printers primarily in North America and Europe. ONEITA INDUSTRIES: Seeks To Extend Exclusivity ---------------------------------------------- The debtor, Oneita Industries, Inc. seeks a court order further extending its exclusive periods to file and to solicit acceptances with respect to a plan of reorganization. A hearing on the motion will be held on March 3, 1999 at 10:00 AM. In support of being granted the extension, the debtor states that it is continuing to pursue a plan acceptable to its major prepetition secured creditors. The debtor is also seeking exit financing as well as exploring transactions with potential equity investors. The debtor is continuing to achieve cost reductions, and while it is fully drawn under the Foothill DIP facility, it is negotiating with Foothill and the lenders to obtain additional working capital. The debtor is performing satisfactorily from an operational standpoint and its financial condition is difficult but stable. The debtor states that it will be in a much better position to confirm a plan after it has a better idea of what the results of its busy selling season, which is coming up, will be. The debtor has already agreed that the lenders may file a plan that has the support of a majority of the lenders holding at least 2/3 of the lenders' aggregate claims, and seeks to extend the lenders' co-exclusive rights. The debtor requests that the court extend its exclusive period to file or solicit acceptances of a plan of reorganization through May 19, 1999. SGL CARBON: Committee Supports Dismissal ---------------------------------------- The Official Committee of Unsecured Creditors of the debtor, SGL Carbon Corporation alleges that the debtor is financially healthy and filed this case solely to pressure antitrust claimants to settle their claims on the debtor's terms. The Committee states that the debtor does not dispute these facts. The Committee argues that the Chapter 11 case serves no valid reorganization purpose and should be dismissed. THE J. PETERMAN CO: Committee Taps Taft, Stettinius --------------------------------------------------- The Official Committee of Unsecured Creditors of The J. Peterman Company applies to the court for entry of a court order approving the employment of Taft, Stettinius & Hollister LLP as attorneys for the Committee under a general retainer. The Committee requests that the debtor be authorized to pay the firm a retainer in the amount of $50,000 which will be held in escrow for application to the amount of final compensation. The current hourly rates of the professionals with primary responsibility for the case range from $170 to $210 per hour. THREE D DEPARTMENTS: Seeks Nod To Employ Investment Banker ----------------------------------------------------------- Three D Departments, Inc., intends to file its application for authority to employ an investment banker, Heartland Financial Corp. The debtor seeks the assistance of Heartland in the formulation of business strategy, in preparation of a financial package for potential investors, in identification of qualified selected prospective buyers or investors, to contact and pursue prospects on a basis acceptable to the debtor, and for assistance in the negotiation and closing of a transaction or series of transactions acceptable to the debtor. The parties agree to a $12,500 payment per month, and a success fee, and a Break-Up fee, both fees to be calculated according to a set formula. TOWN & COUNTRY: Meeting of Creditors ------------------------------------ The meeting of creditors of the debtor, Town & Country Fine Jewelry Group, Inc., is set for February 18, 1999 at 1:00 PM. The location of the meeting is the Thomas P. O'Neil Federal Building, 10 Causeway Street, Room 1190, Boston, Massachusetts 02222. The debtor's attorney is Daniel C. Cohn, Cohn & Kelakos, 265 Franklin Street, Boston, Massachusetts 02110. WORLDCORP INC: Case Summary & 20 Largest Creditors -------------------------------------------------- Debtor: Worldcorp, Inc. 13873 Park Center Road, Suite 490 Herndon, Virginia 20171 Type of business: A holding company. It owns, directly or through a majority owned subsidiary, interests in World Airways, Inc. a provider of air transport outsourcing services; The Atlas Companies, Inc., formerly known as Paper Acquisition Corp., a maker of specialty papers; and InteliData Technologies Corporation, a marketer of telecommunications products and services. Court: District of Delaware Case No.: 98-298 Filed: 02/12/99 Chapter: 11 Debtor's Counsel: William J. Perlstein, Esq. Wilmer, Cutler & Pickering 2445 M Street, NW Washington, DC 20037-1420 (202) 663-6000 Total Assets: $21,982,539 Total Liabilities: $115,174,950 No. of shares of common stock 13,900,696 20 Largest Unsecured Creditors: Name Nature Amount ---- ------ ------ Boston EquiServe Trade Debt 7,123 Cananwill, Inc. Trade Debt 252,982 Charles E. Smith, Inc. Trade Debt 2,495 Deloitte & Touche LLP Trade Debt 2,950 Fairfax County Trade Debt 9,035 Georgeson & Co. Inc. Trade Debt 750 Gorog, William Trade Debt 125,000 Hunton & Williams Trade Debt 175,781 KPMG Peat Marwick, LLP Trade Debt 256,085 L.H. Friend, Weinress & Frank Trade Debt 37,500 LeClain Ryan Trade Debt 8,761 Norwest Bank Minn. Sr. Subordinate Debt 5,358,333 Norwest Corporate Trust Management Fee 16,438 PR Newswire Trade Debt 716 State Street Bank Subordinate Debt 70,118,750 State Street Bank Management Fee 4,805 State of Delaware Trade Debt 35,000 The Equitable Trade Debt 2,534 World Airways Trade Debt 549,589 WORLDWIDE DIRECT: Committee Seeks To Employ Counsel --------------------------------------------------- The Official Committee of Unsecured Creditors of Worldwide Direct, Inc., a Delaware corporation, its parent company, SmarTalk Teleservices, Inc. and subsidiaries, fled an application or authority to employ counsel for the committee, Munsch Hardt Kopf & Harr, PC. The Committee will pay the firm its customary hourly fees which range from $300 per hour for shareholders to $50 per hour for law clerks. WORLWIDE DIRECT: First Meeting of Creditors ------------------------------------------- In the case of Worldwide Direct, Inc., et al., a first meeting of creditors is scheduled for March 5, 1999 at 2:30 PM at the J. Caleb Boggs Federal Building, 844 King street, Room 2313, Wilmington, Delaware 19801. WORLDWIDE DIRECT: Seeks To Retain Litigation Counsel ---------------------------------------------------- Worldwide Direct, Inc., et. al. seeks to retain Alan J. Stone and other attorneys of the firm Morris, Nichols, Arsht & Tunnell as special litigation counsel to protect their interests with respect to the Telemac litigation. Because the firm has already provided services to the debtors in connection with Telemac's pending motion for relief from the stay, the debtor's seek approval to retain the firm nunc pro tunc to the Petition Date. The firm will charge the debtors its regular hourly rates that range from $425 per hour for partners to $170 per hour for associates. The hourly rates for the attorneys working on the case range from $425 per hour to $260 per hour. DLS CAPITAL PARTNERS: Bond Pricing For Week Of February 15 ---------------------------------------------------------- Following are indicated prices for selected issues: Acme Metal 10 7/8 '07 11 - 14 (f) Amer Pad & Paper 13 '05 59 - 61 Amresco 9 7/8 '05 77 - 80 Atel 0/14 1/2 '04 14 - 16 Asia Pulp & Paper 11 3/4 '05 66 - 67 Boston Chicken 7 3/4 '05 6 - 7 (f) Brunos 10 1/2 '05 14 - 16 (f) Cityscape 12 3/4 '04 13 - 15 (f) E & S Holdings 10 3/8 '06 42 - 45 Globalstar 11 1/4 '04 68 - 70 Geneva Steel 11 1/2 '01 22 - 24 (f) Hechinger 9.45 '12 44 - 47 Hills 12 1/2 '02 97 - 98 Loewen 7.20 '03 59 - 62 Mobilemedia 9 3/8 '07 13 - 18 (f) Penn Traffic 8 5/8 '03 48 - 50 (f) Planet Hollywood 12 '05 28 - 31 Royal Oak 12 3/4 '06 20 - 30 (f) Samsonite 10 3/4 '08 77 - 79 Service Merchandise 9 '04 25 - 26 Sunbeam 0 '18 11 - 12 Trism 10 3/4 '00 47 - 50 Trump Castle 11 3/4 '05 78 - 80 Zenith 6 1/4 '11 26 - 29 (f) ********* The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Bond pricing, appearing 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 * * *