/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/990415.MBXT R O U B L E D C O M P A N Y R E P O R T E R Thursday, April 15, 1999, Vol. 3, No. 73 Headlines AAFG: Announces Postponed Court Date AMERITRUCK: Debtors Oppose Volvo's Relief From Stay AMPACE: Committee Objects to Exclusivity Extension BIG RIVERS: Examiner's Fee Tops $2 Million BRAZOS SPORTSWEAR: Receives Court Approval on Permanent DIP CENTENNIAL COAL: Seeks To Extend Exclusivity COMMERCIAL FINANCIAL: Seeks To Extend Exclusivity CONCORD ENERGY: Seeks Authority For Sale of Certain Assets EDISON BROS: J. Baker, Inc. Intends To Acquire REPP EXCALIBUR FINANCIAL: Court To Consider Disclosure Statement FACTORY CARD: Seeks To Reject 13 Leases FIRSTPLUS FINANCIAL: Hearing Scheduled For Lease Rejections GAYLORD COMPANIES: Seeks Entry of Final Decree JUMBOSPORTS: Announces Management Change KIWI: Appeal To Get Back In Air Postponed KOKUMIN BANK: Loses 100 B. Yen in Deposits Thurs.-Mon. MEDMAX: Case Summary & 20 Largest Creditors MOBILEMEDIA: Expiration Date For Rights Offering NU-KOTE: To Enter Insurance Premium Financing Agreement PHOTRAN: Ceasing Business Operations RAINTREE: Announces New Board of National Experts S3 LTD: Filing For Chapter 11 Bankruptcy Protection SANTA FE GAMING: Announces Filing of Plan By Pioneer SOUTHERN PACIFIC: BOMAC Seeks Relief From the Stay TELEGROUP INC: Seeks Bar Date of June 15 WILSHIRE FINANCIAL: Court Approves Plan WILSHIRE FINANCIAL: Taps Heller Ehrman as Banking Counsel ZENITH: Bondholders Agree To Financial Restructuring ********* AAFG: Announces Postponed Court Date ------------------------------------ All American Food Group, Inc. (OTC Bulletin Board: AAFGQ), announced today that the court hearing on its motion before US bankruptcy judge the Honorable Stephen A. Stripp, to issue additional shares to assist it in its reorganization efforts, was postponed one week, to Monday April 19, 1999, at 10:00 AM. The postponement was a procedural matter, and will not affect the opening of the Company's new gourmet web site, "thegourmetpage.com ." The new web site is now undergoing significant design improvement in preparation for the opening. According to CEO Andrew Thorburn, "We feel quite bullish about the opportunity to turn the Company around. We will be opening our Gourmet Page website on the announced date, April 21, and in the interim, we have made additional agreements with several new gourmet food vendors who will be adding great depth to our gourmet selections." AMERITRUCK: Debtors Oppose Volvo's Relief From Stay --------------------------------------------------- The debtors, AmeriTruck Distribution Corp. together with its wholly owned direct and indirect subsidiaries file an objection to the motion of Volvo Commercial Finance LLC The Americas' motion for relief from the automatic stay. The debtors state that Volvo is adequately protected by an equity cushion in the units subject to financing; and by weekly payments on the leased units; and by security deposits in excess of $3 million and continued maintenance of all units. In sum, the debtors claim that Volvo has not shown, nor can it show, that it has been harmed by the pendency of the automatic stay. AMPACE: Committee Objects to Exclusivity Extension -------------------------------------------------- The Official Committee of Unsecured Creditors of Ampace Corporation and Ampace Freightlines, inc. objects to the debtors' motion for an order extending the exclusive periods during which the debtors may file plans of reorganization and solicit acceptances of such plan. The Committee states that the debtors have made little, if any, progress toward reorganization. The Committee states that the modest accomplishments that have been made have cost in excess of $300,000 in fees. The Committee complains that the debtors now seek four more months to "wait and see" whether the sole remaining facility in Calhoun, Georgia can be operated as a "stand alone" facility or can be sold. The Committee believes that the debtors are headed for liquidation, and in any event see no reason why a plan can not be filed now. Under the circumstances, the committee states that good cause does not exist to extend exclusivity. BIG RIVERS: Examiner's Fee Tops $2 Million ------------------------------------------ The dispute over examiner fees in Big Rivers Electric Corp.'s chapter 11 case has finally been put to rest, with the U.S. Bankruptcy Court in Louisville, Ky., awarding total final compensation of roughly $2.6 million for J. Baxter Schilling. While this amount might be portrayed as huge or staggering if viewed in isolation and taken out of context, Judge David Stosberg said in a recent opinion that, "when compared to frivolous millions of dollars wasted on the [PacifiCorp Kentucky Energy Corp.] contract, the amount is extremely reasonable -- indeed a downright bargain." Contrary to Big Rivers' position that its original deal with spurned suitor PacifiCorp served as a building block with which the confirmed reorganization plan was built, the ruling states, "it served as nothing more than an extravagant diversion that distracted the parties from devoting their efforts to what should have been their true quest." Judge Stosberg said the case should have been a simple liquidation with Big Rivers sold outright and then dismantled along with its distribution cooperatives, leaving the customers in the hands of an efficient, well- run utility like LG&E Energy Corp. "[T]he Court recalls no other case so bedeviled with such problems as mismanagement, fraud, 75 lawsuits, a related complicated chapter 11, billions of dollars, contentious parties, and an unsympathetic Public Service Commission," Judge Stosberg wrote. As widely reported, pursuant to the confirmed plan, LG&E is leasing Big Rivers' generation assets under a 25- year deal. (The Daily Bankruptcy Review and ABI Copyright April 14, 1999) BRAZOS SPORTSWEAR: Receives Court Approval on Permanent DIP ----------------------------------------------------------- Brazos Sportswear, Inc. (OTC Bulletin Board: BRZS) said today that it has received final Bankruptcy Court approval of the company's $62.5 million debtor-in- possession (DIP)financing facility. Under the DIP facility the company's existing bank group, led by Fleet Capital Corporation as agent, will provide up to $62.5 million in post-petition financing to Brazos Sportswear. The proceeds of the facility will be used to purchase goods and services and fund the company's ongoing operating needs during its restructuring process. The company and its subsidiaries filed Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware in Wilmington on January 21, 1999. "We believe the DIP financing facility will provide adequate financial resources to fund our post-petition vendor and employee obligations and other operating requirements as Brazos moves forward in its restructuring," said Gilbert C. Osnos, interim president and chief executive officer. Brazos Sportswear, Inc., designs, produces and markets moderately priced sportswear. Headquartered in Cincinnati, Ohio, it operates manufacturing, distribution and sales facilities in 7 states. CENTENNIAL COAL: Seeks To Extend Exclusivity -------------------------------------------- The debtors, Centennial Coal, Inc., Centennial Resources, Inc., CR Mining Company and B-Four Inc., seek to extend the exclusive period within which to obtain acceptances of the plan to and including July 12, 1999. The debtors have prepared and filed their plan and Disclosure Statement. The debtors submit that the requested extension is warranted to allow the debtors additional time to complete the sale process which is already well under way and effectuate the sale. COMMERCIAL FINANCIAL: Seeks To Extend Exclusivity ------------------------------------------------- The debtors, Commercial Financial Services, Inc., and CF/SPC NGU, Inc., request that the court enter an order extending the periods within which each of the debtors has the exclusive right to file a plan of reorganization and solicit acceptances of a plan. The debtors have been actively negotiating with prospective buyers of the debtors' business operations in order to maximize the estate for the benefit of all creditors, and the debtors anticipate that these negotiations may be concluded within the next 60 days. The debtor relies on the size and complexity of the cases as just cause for the extension of exclusivity and reasons that additional time is necessary to build a consensus with the Committees. The debtor seeks an extension to file a plan of reorganization through and including July 9, 1999. The debtors seek an extension of the exclusive period to solicit acceptances of a plan of reorganization through and including September 7, 1999. CONCORD ENERGY: Seeks Authority For Sale of Certain Assets ---------------------------------------------------------- Knight Equipment and Manufacturing Co., ("KEMCO") debtor, files a motion to authorize the sale of certain assets and assumption and assignment of certain personal and real property leases. KEMCO seeks authority to sell certain assets of DEMCO and to assume and assign certain personal property leases to Hanover Compressor Company pursuant to a definitive purchase and sale agreement to be executed and entered into by KEMCO and Hanover. Hanover would purchase all inventory, excluding plants which are presently serving as collateral for KEMCO bondholders, certain fixed assets including furniture, fixtures, equipment and tools, all tangible assets, including software, engineering drawings, intellectual property rights, and the exclusive right to use the trade name "KEMCO." The purchase price for the designated assets is $1.65 million. EDISON BROS: J. Baker, Inc. Intends To Acquire REPP --------------------------------------------------- J. Baker, Inc. (NASDAQ:JBAK) announced it has signed a letter of intent to acquire substantially all of the assets of the REPP Big & Tall and REPP by Mail divisions of Edison Brothers Stores, Inc., currently operating under the protection of Chapter 11 of the United States Bankruptcy Code. REPP Big & Tall operates a chain of 175 retail stores offering quality clothing and sportswear for the big and tall man. The all cash purchase price of $33 million, subject to adjustment, is for the acquisition of approximately 175 REPP Big & Tall stores and the REPP by Mail catalog business. Completion of the transaction is subject to the approvals of Edison Brothers' Board of Directors, J. Baker's Board of Directors and lenders, the satisfactory completion of J. Baker's confirmatory due diligence review, and the approval of the United States Bankruptcy Court for the District of Delaware. J. Baker, Inc. is a leading specialty retailer of apparel and footwear. EXCALIBUR FINANCIAL: Court To Consider Disclosure Statement ----------------------------------------------------------- On March 4, 1999, Excalibur Financial Services LP a/k/a PBC Partners, LP and PBC Acceptance LLC, PBC Servicing Corporation and Rapid Acceptance Corporation filed with the US Bankruptcy Court for the District of Delaware their joint Chapter 11 plan of liquidation proposed by the debtors and Joint Disclosure Statement of debtors in connection with the solicitation of ballots with respect to the joint plan of liquidation under Chapter 11. A hearing will be held on May 13, 1999 at 11:00 AM before The Honorable Peter J. Walsh to consider the adequacy of the information contained in the Disclosure Statement. FACTORY CARD: Seeks To Reject 13 Leases --------------------------------------- The debtors, Factory Card Outlet Corp., and Factory Card Outlet of America Ltd. seek court approval to reject 13 unexpired leases of nonresidential real property and certain related termination agreements. Based on a review and analysis of their leases, and with the help of DJM Asset Management LLC, a ela estate consulting firm, the debtors have degermined that it is in their best interest, and in the best interest of their creditorsand all parties in interest to reject the leases. The leases are located in Texas, Ohio, Florida, New York, Minnesota, Indiana, Illinois and Kentucky. The debtors have never occupied the leased premises and do not intend to do so. The company announced on April 14, 1999 that it will be closing a total of 27 stores. After taking into account the stores that it intends to close, the Company will be operating 183 company-owned stores in 21 states." The Company anticipates that the sales will commence shortly prior to Mother's Day and should be concluded in June, 1999. FIRSTPLUS FINANCIAL: Hearing Scheduled For Lease Rejections ---------------------------------------------------------- A hearing has been scheduled for April 19, 1999 to consider the motion of the debtor, FirstPlus Financial, Inc. to reject the non-residential real estate leases. GAYLORD COMPANIES: Seeks Entry of Final Decree ---------------------------------------------- The Plan Proponent, Newsstand of America Inc., on behalf of Gaylord Book Company, Gaylord's Inc., Sawworth Book Company and Gaylord Enterprises, Inc. has filed its final report and account and application for approval of final report and entry of final decree. The Bookstore debtors submit that their plan of reorganization has been consummated, with the exception of ongoing payments to certain creditors, and that entry of a final decree and order closing the case is appropriate. JUMBOSPORTS: Announces Management Change ---------------------------------------- JumboSports Inc. (OTC Bulletin Board: JSIBQ) today announced the appointment of Al Fasola as Chief Executive Officer and Mike Worrall as President, replacing Jack E. Bush, effective immediately. Bush, formerly Chairman, President and Chief Executive Officer, will continue to serve as Chairman of the Board, while Fasola, Worrall and Robert Floum, Chief Operating Officer, will manage the Company's day-to-day operations going forward. Management also announced that Jerry Kollar, Vice President and Controller, will assume additional responsibilities in the financial area, becoming Chief Financial Officer. Ray Springer, formerly Chief Financial Officer, will act as a consultant to the Company. In announcing the management changes, Bush said, "Restoring our Company's financial health and emerging from bankruptcy is our top priority. Al Fasola and Mike Worrall are highly recommended to the Company as strong leaders with extensive knowledge of the sporting goods industry and years of experience in challenging turnaround situations." He continued, "The official committees of bondholders and unsecured creditors have great confidence in Al and Mike's leadership abilities, which encourages us that we will be able to negotiate an effective reorganization strategy." As previously announced, JumboSports, with the support of its ad hoc bondholder committee, filed a voluntary petition under Chapter 11 of the Bankruptcy Code on December 27, 1998, in order to facilitate a planned financial restructuring. 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. KIWI: Appeal To Get Back In Air Postponed ----------------------------------------- The Record Northern New Jersey reports on April 13, 1999 that Kiwi International Air Lines, grounded by federal transportation officials nearly three weeks ago for safety concerns, will not fly at least for another week. Kiwi spokesman Rob Kulat said Monday that the airline's appeal of the Federal Aviation Administration's license revocation, originally scheduled for today, has been pushed back to April 20 while lawyers for both sides continue preparations. The FAA grounded Kiwi on March 24, saying it had repeatedly flown planes that were unsafe, and that it was "unable or unwilling to provide service with the highest possible degree of safety." Kiwi filed for bankruptcy protection on March 23 as part of a bailout plan involving Pan American Airways, which was supposed to purchase Kiwi's assets for $3 million, but Pan Am has since backed out of the deal. KOKUMIN BANK: Loses 100 B. Yen in Deposits Thurs.-Mon. ------------------------------------------------------ About 100 billion yen in deposits flowed out of Kokumin Bank from last Thursday through Monday, Financial Supervisory Agency Deputy Commissioner Hideichiro Hamanaka said Tuesday. The second-tier regional bank in Tokyo was declared insolvent and put under control by government-appointed administrators Sunday, after media reports came out on its insolvency Thursday. Deposit withdrawals at Kokumin Bank subsided Tuesday, but still continued, Hamanaka said in a regular news conference. Hamanaka called for calm on the part of depositors at the bank, emphasizing that its deposits will be fully protected. In the news conference, Hamanaka also said the FSA that has inspected major banks and been inspecting securities firms intends to start inspection of other financial institutions, such as shinkin banks and insurance companies, by the end of June (Jiji Press - 04/13/99) MEDMAX: Case Summary & 20 Largest Creditors ------------------------------------------- Debtor: MedMax Inc. 17117 W. Nine Mile Road Suite 800 Southfield, Michigan 48075 Court: Eastern District of Michigan Filed: 03/26/99 Chapter: 11 Debtor's Counsel: Barbara J. Rom Pepper Hamilton LP 100 Renaissance Center, 36th Floor Detroit, Michigan 48243-1157 20 Largest Unsecured Creditors: Name Amount ---- ------ JJ Gumberg Company 93,496 Arrow Corporation 93,060 Roosevelt LLP 91,831 Lincoln Plaza Associates 89,528 Detroit Newspapers 89,000 Dykema Gossett 85,343 Krakzo Realty Trust 83,629 Stroschen Pointe Partners 79,282 Oakland Square Limited 78,709 Beiersdorf Jobby, Inc. 77,833 Cardinal Healthcare 421,425 Byram Health Care Centers Inc. 336,626 Kolon, Bettker & Desmond 293,926 Invacare 245,373 Bunesse Medical 224,058 Pride Health Care 157,560 Information Technology MPDB 134,952 Nellcor Puritan Bennett 128,387 Federal Realty 97,776 Rebphonics 93,647 MOBILEMEDIA: Expiration Date For Rights Offering ------------------------------------------------ In conjunction with their pending merger, Arch Communications Group, Inc. (Nasdaq: APGR) and MobileMedia Corporation today announced that an expiration date of May 14, 1999 (5:00 p.m. New York City time) has been established for the rights offering to MobileMedia's unsecured creditors and the rights offering to Arch's stockholders of record on January 27, 1999. As previously announced, the U.S. Bankruptcy Court for the District of Delaware entered an order on April 12, 1999 confirming MobileMedia's Third Amended Plan of Reorganization and clearing the way for the merger between Arch and MobileMedia, which is expected to close in early June. MacKenzie Partners, Inc. is the information agent for each of the rights offerings. For investors with questions pertaining to either rights offering, MacKenzie Partners may be reached at (800) 322-2885. NU-KOTE: To Enter Insurance Premium Financing Agreement ------------------------------------------------------- The debtors, Nu-Kote Holding, Inc. and its debtor affiliates request authority to enter into an insurance premium finance agreement with Cananwill, Inc. In order to pay for the policies, Cananwill has agreed to finance the payment of the premiums for the policies substantially in accordance with the terms of the agreement. The agreement provides for an amount financed of $1.098 million, monthly payments, an annual percentage rate of 5.19% for total payments of approximately $1.138 to Cananwill. PHOTRAN: Ceasing Business Operations ------------------------------------ Photran Corporation (Nasdaq:PTRN) said that it is ceasing operations and will terminate its remaining employees effective immediately. The action follows a series of setbacks that leaves Photran without money for ongoing operations. Photran management made the decision to close down the Lakeville-based company late Monday after Photran's principal secured creditor, and its primary source of funding for the past year, notified Photran's board that it would not extend additional credit necessary to continue operations. The creditor cited a continued soft market for Photran's coated glass products and the company's defaults under existing credit facilities. Photran management expects to file a Petition for Relief under Chapter 7 of the Bankruptcy Code as soon as possible. Creditors and shareholders will receive formal notice of the bankruptcy filing from the United States Bankruptcy Court, District of Minnesota. At the company's request, trading in Photran stock was halted before the market opened this morning. Employees were told shortly thereafter. Over the past year, Photran terminated most of its 100-plus person workforce, and pursued aggressive marketing activities in an effort to offset continued weakness in the Asian economy, the primary market for Photran's products. Photran Corporation developed, manufactured and marketed high performance optical and electrically conductive thin- film-coated products using proprietary process technology. The company produced products for the flat-panel display industry. RAINTREE: Announces New Board of National Experts ------------------------------------------------- RainTree Healthcare Corporation announced that it has named four new members to its board of directors. These members were nominated by RainTree's major stockholders, Merrill Lynch, Morgan Stanley Dean Witter and Capital Research & Management Company. The new directors are John S. Belisle, New York, N.Y.; Martin Fenton, La Jolla, Calif.; Michael Jeffries, Scottsdale, Ariz.; A. Whitman Marchan, Quechee, Vt.; and Mark Penn, Washington, D.C. The new appointments were made in accordance with the Plan of Organization, which was confirmed by the U.S. Bankruptcy Court for the District of Arizona in Phoenix, Arizona, on January 20, 1999, and effective January 31,1999. Prior to its reorganization, the company was known as Unison Healthcare Corporation ("Unison"). The confirmed Plan allowed the majority stockholders, who together hold 65% of the stock of the reorganized company, to nominate new members in lieu of a formal and costly shareholder meeting. This is RainTree's first phase of its emergence from reorganization proceedings. The company is reportedly divesting itself of less productive activities to enable the executives and administrators to focus on the core business of caregiving. RainTree Healthcare Corporation leases and operates 32 long-term and specialty care facilities with 3,284 licensed beds and 3 assisted living facilities with 214 units in Texas, Arizona, Colorado, Alabama, Indiana and Michigan. It ranks as one of the 30 largest long-term care operators in the United States. The company seeks to operate its business as an interrelated network of services to provide a full continuum of cost-effective long-term and specialty care. S3 LTD: Filing For Chapter 11 Bankruptcy Protection --------------------------------------------------- The Virginian Pilot Ledger Star reports on April 13, 1999 that S3 LTD, a high-tech and outsourcing firm that streaked to prominence in recent years as a result of its rapid growth, is filing for Chapter 11 bankruptcy. None of S3's 1,000 or so workers worldwide - including 200 in Hampton Roads - will be laid off, said Bob Martin, S3 "S-cubed" vice president of operations. "As far as we're concerned, it's a management-level reorganization," Martin said. "With any luck, the restructuring will be transparent to our employees." S3's sales growth shot the company to berths on a number of hot business lists, including the Virginia Chamber of Commerce's "Fantastic 50" and Inc. magazine's compendium of the 500 fastest- growing private companies in the nation. In 1997, S3 landed the 360th spot in Inc.'s list for increasing revenue 700 percent in five years, from $1.2 million to $10.4 million annually. In the same period, it went from losing money to breaking even. The company specializes in logistics management systems, outsourcing and computer systems support. It has offices in 30 states, Puerto Rico and Guam, and does business overseas. Past clients include Dyncorp, the Federal Aviation Administration, Tenneco, Lockheed Martin, AT&T and Newport News Shipbuilding. S3 has $600 million in outsourcing contracts with the Navy and the General Services Administration. Several investment and organizational consultants will help S3 with its reorganization, which could take six months. SANTA FE GAMING: Announces Filing of Plan By Pioneer ---------------------------------------------------- Santa Fe Gaming Corporation ("SFGC") announced that on Monday, April 12, 1999, its subsidiary, Pioneer Hotel, Inc. ("PHI") filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Court for the District of Nevada and in conjunction therewith a joint plan of reorganization and disclosure statement with Pioneer Finance Corp. ("PFC"), with respect to PFC's 13-1/2% First Mortgage Bonds due 1998. The joint plan of reorganization was filed in accordance with the consents obtained from holders of approximately 75% of the outstanding principal amount of 13-1/2% bonds, pursuant to which PFC agreed to file for relief under Chapter 11 and the consenting holders agreed to vote to accept a plan of reorganization substantially similar to the one filed. PHI owns and operates the Pioneer Hotel & Gambling Hall in Laughlin, Nevada. In conjunction with the filing by PHI, a hearing was held before the Bankruptcy Court, in which the Court, among other things, ordered that PHI is authorized to pay pre-petition employee wages and benefits and to continue to operate in the ordinary course. In addition, the Court set May 25, 1999, for the disclosure statement hearings and August 10 and 11, 1999, for confirmation hearings on the joint plan of reorganization. Santa Fe Gaming Corporation owns and operates the Santa Fe Hotel and Casino in northwest Las Vegas and the Pioneer Hotel and Gambling Hall in Laughlin, Nevada. In addition, SFGC holds several real estate parcels for development within or in the area surrounding Las Vegas, Nevada. SOUTHERN PACIFIC: BOMAC Seeks Relief From the Stay -------------------------------------------------- BOMAC Capital Mortgage, Inc. seeks relief from the automatic stay because under the terms of various agreements between the DIP and BOMAC< BOMAC is the owner of the beneficial interest in certain residual deferred payments to be pa8id from individual loans originated by BOMAC. That is, BOMAC is entitled to the excess cash flow from all of the loans BOMAC originated an d contributed to the securitization trusts. BOMAC is seeking a declaration that the residuals originated by BOMAC belong to BOMAC; to enjoin the DIP from selling BOMAC's undivided interest in the residuals over BOMAC's objection without first filing an adversary proceeding and obtaining authority to sell BOMAC's undivided interest; seeking an order authorizing BOMAC to "delink" or unbundle the mortgage loans originated by BOMAC; and seeking to enjoin the DIP from selling the residuals in bulk before the court has fully reviewed the question of whether the DIP should simply hold the residual interests for an extended period of time in order to realize the maximum value from the residuals, instead of conducting a bulk sale of the residuals. The approximate value of the BOMAC residuals as of September 30, 1998 was $17.856 million. BOMAC is also the owner of pre-payment penalties in the amount of $1.5 million, collected by the DIP for BOMAC's benefit, but not remitted to BOMAC. BOMAC is requesting that it receive adequate protection with regard to that sum. TELEGROUP INC: Seeks Bar Date of June 15 ---------------------------------------- The debtor, Telegroup, Inc. is requesting that the Bankruptcy Court for the District of New Jersey fix a bar date or last date for the filing of proofs of claim. The debtor requests that the court set June 15, 1999 at 4:00 PM as such bar date. WILSHIRE FINANCIAL: Court Approves Plan --------------------------------------- Wilshire Financial Services Group Inc. (Nasdaq:WFSG) announced that its reorganization plan has been approved by the United States Bankruptcy Court for the District of Delaware. As a result, the Company now has court approval to implement its corporate restructuring. The key element of the restructuring is the exchange of the Company's outstanding long-term debt, totaling approximately $184 million into 100% of the common stock of the reorganized company. A portion of this new common stock will be reallocated so that the current shareholders will receive approximately 0.6% of the outstanding shares of the new common stock. The Company also will acquire the loan servicing operations of Wilshire Credit Corporation, a private company. The Company then will be able to service its own assets and provide third party servicing. This should produce additional revenues for the Company and eliminate potential conflicts of interest. Wilshire Financial Services Group Inc. is a diversified financial services company conducting business in the U.S., U.S. Territories and Europe. The Company specializes in loan portfolio acquisition, mortgage banking, and servicing. It offers wholesale banking through a subsidiary, First Bank of Beverly Hills, F.S.B. The Company is headquartered in Portland, Oregon, USA and has offices in California and in the United Kingdom, France, and Ireland. WILSHIRE FINANCIAL: Taps Heller Ehrman as Banking Counsel --------------------------------------------------------- The debtor, Wilshire Financial Services Group, Inc. seek court authority to employ and retain Heller Ehrman White & McAullife, PC as special banking regulations counsel for the debtor effective as of April 9, 1999, the petition date. The firm will provide legal advice with respect to compliance with federal banking regulations and other non- bankruptcy legal issues arising in connection with their reorganization; and to assist the debtor in obtaining DIP financing. Compensation will be payable on an hourly basis. The principal attorneys designated to represent the debtor charge between $200 and $430 per hour. ZENITH: Bondholders Agree To Financial Restructuring ---------------------------------------------------- The Chicago Daily Herald reports on April 3, 1999 that Zenith Electronics Corporation announced it has agreed in principle for a financial restructuring of the company with an ad hoc committee of bondholders, and that its quarterly net loss shrank. The ad hoc committee informed Glenview- based Zenith that its members own or control more than 50 percent of Zenith's outstanding 6 1/4 percent Convertible Subordinated Debentures due 2011. Terms of the bondholder agreement will be part of an amendment to Zenith's registration statement, which is being reviewed by the Securities and Exchange Commission. After the SEC review, Zenith will solicit bondholder votes for approval of a prepackaged plan of reorganization under Chapter 11. Glenview-based Zenith's fourth-quarter net loss was $87.7 million, or $1.30 per share, vs. a net loss of $155.7 million, or $2.32 per share, the same quarter a year ago. The results include a $94.5 million restructuring charge in 1998 and a $53.7 million asset impairment charge in 1997. Sales were $310 million in 1998 and $348 million in 1997. ********* 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 * * *