December 31, 2001

America West Airlines, the carrier unit of America West Holdings Corp. of Phoenix, Az., received conditional approval from the federal government for a $380 million loan. As part of the deal, the government's Air Transportation Stabilization Board asked for options to buy up to one-third of the carrier and other conditions. More than $600 million in concessions from America West's creditors and vendors depended on the company getting the federal loan.

Warnaco Group, citing improved cash management, said that it reduced its debtor-in-possession financing agreement from $600 million to $475 million. In addition, Warnaco, a bankrupt Manhattan, N.Y. apparel company, has a 7/31 deadline for filing a reorganization plan.

Del-Met Corp., Franklin, Tn., filed Chapter 7 in the U.S. Bankruptcy Court in Nashville. The firm listed liabilities of between $10 million and $100 million. No assets were listed. Listed at the same address and also filing Chapter 7 was Del-Met Tennessee Inc.

Tower Automotive Inc., a Grand Rapids, Mi. automotive supplier, is reducing its payroll by 215 employees and expects to make further job cuts in the future. The layoffs, in conjunction with asset-impairment expenses, will result in charges of $289 million. Those charges don't include fourth quarter charges of $95 million related to the relocation of its stamping operations in Milwaukee, Wi., which will affect 530 employees.

Trinity Industries Inc. Dallas, Tx., said it will record charges of between $50 million and $65 million in its third quarter related to the restructuring of its railcar operations and its merger with Thrall Car Manufacturing Co. The company said that not including the charges, which are considered part of continuing operations, it will report earnings of between 40 cents and 50 cents a share for the first nine months.

A 1/25 deadline has been set for filing proof of certain administrative claims in the MBC Greenhouse Co. Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court for the District of Delaware at 302-252-2900.

National Mailing Services Inc., Hammonton, N.J., filed Chapter 7 in the U.S. Bankruptcy Court in New Jersey. No schedules were listed. The case number is 01-21780.

Metrix Computer Cutting Inc., Clifton, N.J., filed Chapter 11 in the U.S. Bankruptcy Court in New Jersey. No schedules were listed. The case number is 01-43212.

A 1/15 hearing has been scheduled regarding the sale of certain assets and bidding procedures in the PSINet Inc. Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court for the Southern District of New York at 212-668-2867.

December 28, 2001

IT Group Inc., a Monroeville, Pa. environmental-engineering concern, said that a cash crunch could force it to sell off assets or even push it into Chapter 11 bankruptcy proceedings. IT, which earlier trimmed its payroll by 400 employees, said that it failed in recent talks with its lenders to restructure its finances. It's now likely that IT Group's cash problems will cause it to default on certain of its loan agreements. IT Group, which operates twenty-two facilities worldwide, also warned that it would consider plant closings and further job cuts to address its cash weakness.

Medscan LLC, Saddle Brook, N.J., filed Chapter 11 in the U.S. Bankruptcy Court in New Jersey. No schedules were listed. The case number is 01-42711.

Labriola Motors Inc., Red Bank, N.J., filed Chapter 11 in the U.S. Bankruptcy Court in New Jersey. No schedules were listed. The case number is 01-63043.

Shaker Development Corp., Shaker Heights, Oh., filed Chapter 11 in the U.S. Bankruptcy Court in Cleveland. The firm listed assets and liabilities of $913,000 and nearly $1.4 million respectively. The case number is 01-21629.

Western Reserve Brewing Co. Ltd., Cleveland, Oh., filed Chapter 7 in the U.S. Bankruptcy Court in Cleveland. No schedules were listed. The case number is 01-21705.

A 2/1 hearing has been scheduled regarding the disclosure statement in the ICG Communications Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, David Kurtz, at 312-407-0700.

A 2/8 deadline has been set for filing proof of claims in the Cytomedix Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Steven Jakubowski, at 312-444-1000.

A 1/30 hearing has been scheduled to consider certain compensation in the Globe Manufacturing Corp. Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court at 205-714-4000.

Black-Eyed Pea, a unit of bankrupt Phoenix Restaurant Group of Madison, Tn., has closed five of its restaurants in the Washington, D.C. area.

A 2/15 deadline has been set for filing proof of claims in the IBeam Corp. Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court for the District of Delaware at 302-252-2900. for the District of Delaware at 302-252-2900.

A 1/9 deadline has been set for filing bids for certain assets in the Exodus Communications Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, J. Gregory Monroe, at 212-735-3000.

December 27, 2001

Data Driven Business Solutions Inc., Doylestown, Pa., filed Chapter 7 in the U.S. Bankruptcy Court in Philadelphia. No schedules were listed. The case number is 01-36956.

Enron Broadband, a telecommunications-products trading unit of bankrupt Enron Corp. of Houston, Tx., has now itself filed for Chapter 11 bankruptcy protection. The firm listed assets and liabilities of $64.5 million and $63.7 million respectively.

United Micro Systems Inc., Mount Laurel, N.J., filed Chapter 7 in the U.S. Bankruptcy Court in Camden, N.J. No schedules were listed. The case number is 01-21511.

Lay's Palace Ltd. in Cripple Creek, Co., which does busines as Palace Hotel & Casino, filed Chapter 11 in the U.S. Bankruptcy Court in Denver. The firm listed assets and liabilities of less than $10 million each. The case number is 01-27227.

America West Airlines, the carrier unit of America West Holdings Corp. of Phoenix, Az., may be forced to file for bankruptcy protection if its request for a $380 million federal loan guaranty is not met. The federal government, which is providing $10 billion in loan guarantees for the beleaguered airline industry, has reportedly twice asked for America West to revise its loan application in an attempt to ensure that the carrier is able to pay back the loan. America West, the nation's eighth-biggest airline, has $70 million of debt payments due 1/2.

Little Learners Academy of Lake City LLC, Lake City, Ga., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Georgia. The firm listed assets and liabilities of $564,000 and $610,000 respectively. The case number is 01-74914.

National Mailing Services Inc., Hammonton, N.J., filed Chapter 7 in the U.S. Bankruptcy Court in Camden, N.J. No schedules were listed. The case number is 01-21780.

Pure Energy Group Inc., San Antonio, Tx., filed Chapter 11 in the U.S. Bankruptcy Court in Texas. No schedules were listed. The case number is 01-55536.

A 1/7 deadline has been set for filing objections to the stock purchase agreement in the Bennett Funding Group Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Katherine McLendon, at 212-455-2000.

Homestore.com Inc., a Thousand Oaks, Ca. online real-estate firm, announced that it will restate certain financial results as part of a reappraisal of its accounting methods. The company, which has retained outside assistance in reviewing its accounting procedures, raised concerns over the way it conducts its accounting after it suddenly reversed its projections for the near future. Until recently, Homestore had been one off the few dotcom firms that seemed to be thriving despite the sharp downturn in the dotcom sector.

A 2/28 deadline has been set for filing proof of claims in the Friede Goldman Halter Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Hugh Ray, at 713-220-4200. For a copy of a proof of claims form call 800-407-9044.

December 26, 2001

Comdisco Inc. reported a fourth quarter net loss of $142 million. The loss, which included an operating loss of $119 million, is an improvement over its $168 million loss in the year-earlier period. Revenue for the technology-leasing company sank 44%--to $509 million. The Rosemont, Il. firm, which is reorganizing under Chapter 11 bankruptcy protection, reported a loss for the entire year of $272 million. The company had been divesting itself of assets, recently selling its SunGard Data Systems Inc. unit for $825 million, but it may be changing its strategy in order to emerge from bankruptcy protection by the middle of 2002. A hearing regarding the sale of its leasing operations has been continued by the U.S. Bankruptcy Court until 1/24 and a 1/7 date has been set for filing bids on the bankrupt company's assets. However, the company recently said it's now inclined to hold onto the remainder of its assets.

Hamilton Meat Pie Co. Inc., Romulus, Mi., filed Chapter 11 in the U.S. Bankruptcy Court in Detroit. The firm listed assets and liabilities of $220,000 and $853,000 respectively.

National Grinding Wheel Sales Co. Inc., Detroit, Mi., has seen an involuntary Chapter 7 petition filed against it. No schedules were listed. The company also does business as National Abrasive Sales Co. and National Abrasive of Detroit.

Herrera Produce Inc., Lawrenceville, Ga., filed Chapter 7 in the U.S. Bankruptcy Court for the Northern District of Georgia. No schedules were listed. The case number is 01-74726.

Grossman Decorative Fabric Inc., Philadelphia, Pa., filed Chapter 7 in the U.S. Bankruptcy Court in Philadelphia. No schedules were listed. The case number is 01-37008.

I.M.S. Group Inc., Atlanta, Ga., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Georgia. The firm listed assets and liabilities of about $13.3 million each. The case number is 01-74675.

Lithium Technology Corp., a Montgomery County, Pa. maker of rechargeable lithium batteries, is merging with Gaia AG, a German-based battery maker, for an undisclosed amount.

Liberate Technology, a Redwood Shores, Ca. maker of Web-access software, reported a second quarter net loss of $113 million. The results included nonrecurring charges of $44.8 million. Its revenue increased 79%--to $21 million.

Lam Research Corp., a Fremont, Ca. maker of chip-making equipment, is reducing its payroll by 12% amid the ongoing slowdown in the semiconductor industry. The firm also said it would pay $20 million to Variant Semiconductor Equipment Associates Inc. to settle a patent-infringement dispute.

Kenexa Corp., a Wayne, Pa. software company, said that it recorded positive cash flow from operations in its third quarter as a result of its restructuring. The company recently trimmed its payroll by 200 employees (about 28% of its workforce) in order to accommodate the slowdown in business.

December 20, 2001

Global Technovations Inc., a Palm Beach Gardens, Fl. company that develops oil-analysis equipment, filed Chapter 11 in the U.S. Bankruptcy Court in Delaware. The filing, which included four affiliates, listed assets and liabilities of $25.1 million and $22.4 million respectively. The bankruptcy filing was prompted by the liquidation of its Onkyo America Inc. unit, which resulted in Global being unable to raise enough working capital.

39 Corporation Inc. of Westport, Ct. has now filed Chapter 7 listing assets of less than $50,000 and liabilities of between $1 million and $10 million.

3Com Corp., the Santa Clara, Ca. converged networking systems firm, reported a second quarter net loss of $103.7 million on a 50% revenue decline--to $394 million. The loss includes non-recurring pretax charges of nearly $36 million.

Crown Group Inc., the Irving, Tx. acquisitions, used car and gaming firm, reported a second quarter net loss of $15 million on a 23% revenue increase--to $31.8 million. This includes a loss from continuing operations of $2.1 million, which itself includes charges related to restructuring and writedowns of $6.2 million.

Gap Inc., the San Francisco apparel retailer which had seen one investor service claim that the retailer could be in danger of violating certain debt covenants, has now disputed that investor's research report by claiming that the calculations they used contained debt levels higher than the company is expected to have as of 12/31. Gap allegedly intends on carrying no more than $2.3 billion in debt on its balance sheet as of 12/31.

Gateway Inc., the San Diego, Ca. computer hardware manufacturer which is taking steps to make certain it is profitable during the fourth quarter of 2001 after reporting a net loss of $520 million during the third quarter, has now allegedly seen some of its employees in Kansas City claim that the company is forcing them to take unpaid leave during the holidays in lieu of layoffs. The company announced a restructuring program in August and hopes it will result in a 25% reduction in its overall workforce. Gateway has also obtained a $200 million cash infusion from America Online.

Grant Hospital in Chicago, Il. is now in negotiations to sell the firm to Thorek Hospital and Medical Center, also in Chicago. It should be noted that while Thorek is attempting to expand its healthcare provider network in Chicago, Grant's parent company, Vital Community Health Services Inc., has been struggling as a result of financial problems at its Edgewater Medical Center, which closed earlier this month.

Rent-Way Inc., the Erie, Pa. rent-to-own company which earlier in the year restated the previous year's results citing certain accounting irregularities, reported a fourth quarter loss of $25.4 million as on a slight revenue increase--to $155.9 million. This compares with a loss of $31.7 million for the same period one year earlier.

Rosun Technologies Inc. in Fremont, Ca. has now filed for bankruptcy protection in Oakland, Ca. No schedules were listed. The case number is 01-46084.

Stewart Enterprises Inc., the Metairie, La. funeral services and cemeteries firm, reported its fourth quarter net declined 31%--to $7 million--on a 10% revenue decline--to $153 million. For the year, the company reported a net loss of $408 million on a 9% revenue decline--to $665 million.

Vanguard Airlines Inc., the Kansas City discount carrier, has negotiated with its creditors to reduce its more than $39 million debtload. Vanguard, which reported a net loss of $3.6 million during its third quarter, is looking for concessions of more than $1 million from certain creditors. It should also be noted that Nasdaq announced it would delist Vanguard stock, although its common stock would continue to be traded over the counter.

December 19, 2001

GolfGear International Inc. in Garden Grove, Ca., which reported that its third quarter sales declined 27%, has now not only announced an unspecified number of layoffs, but has also reported that it may not be able to survive.

ITT Industries Inc., the White Plains, N.Y. firm that makes electronic components for the telecommunications and aerospace industries, announced that it will lay off more than 3,400 employees (8% of its workforce) as a result of declining demand for its products. ITT plans on taking an after-tax charge of $65 million in its fourth quarter as a result of the layoffs.

Mary Engelbreit Co. is now closing ten of its eleven stores by the end of this year. The company, which is keeping its flagship store in St. Louis as its only remaining location, was told by its advisors that they were at the point where they either needed to expand or reduce its number of outlets.

MatrixOne Inc., the Westford, Ma. firm which integrates computer systems, has now reduced its workforce by 100 workers (15% of its workforce) after reporting a first quarter loss. The company expects to take a second quarter restructuring charge of nearly $4.5 million.

Pacific Guarantee Mortgage dba Orion Mortgage in Portland, Or. has now filed Chapter 7 listing assets and liabilities of $322,000 and $699,000 respectively. The case number is 01-41643.

Rohn Farms LLC in Wiggins, Co. has now filed Chapter 11 listing assets and liabilities of less than $10 million each. The case number is 01-26422.

Verex Laboratories Inc. of Denver, Co. has now raised doubt about its ability to continue as a growing concern, as it recently listed with the SEC a working capital deficit of $1.6 million.

Zama Networks Inc. in Seattle, Wa. is now filing Chapter 7. No schedules were listed. The case number is 01-22225.

American Greeting Corp., the Cleveland, Oh. greeting cards and party goods maker which has been hit hard by its competition and which reported $324 million in charges during the third quarter, has now agreed to suspend its quarterly dividend effective immediately in order to conserve cash.

Motorola Inc., the Schaumburg, Il. cell phone and electronics firm which has lost more than $2.5 billion during its first nine months of its current fiscal year and which expects to report its fourth straight quarterly loss in January, is now reducing its workforce by another 9,400 employees. This brings to more than 48,000 jobs that the company has cut in the past fifteen months. In addition, Motorola, which now expects to report its first annual operating loss in forty five years, could reduce its workforce even further as it attempts to return to profitability next year.

December 18, 2001

New Haven Foundry Inc. a/k/a Yale Powder Coating in New Haven, Mi. has now seen an involuntary Chapter 7 bankruptcy petition filed against it. No assets or liabilities were available.

Seagulf LLC, a Seattle, Wa. condominium developer, has now filed Chapter 11. The company blamed the filing on disputes with its general contractors and subcontractors. Washington First International Bank is owed $4.9 million for a construction loan.

Valeo Electrical Systems Inc., the unit of French automotive parts maker Valeo SA which anticipates an operating loss for 2001 of nearly $70 million, has now filed for Chapter 11 protection. The company, which makes windshield wiper systems at its facilities in Rochester, N.Y. and Auburn Hills, Mi., is trying to increase its pressure on its union to make certain concessions.

StairMaster Sports Medical Products Inc., the famous Kirkland, Wa. firm that makes the stair-climbing sports machines and which has been operating under Chapter 11 protection since August, now expects to sell its assets in January. The purchaser is thought to have been one of StairMaster's competitors, Direct Focus Inc. in Vancouver. StairMaster has also warned its 360 employees that they may be laid off after the assets are sold.

Covista Communications Inc. in Little Falls, N.J. reported a third quarter net loss of $1.8 million on a 40% revenue decline-- to $20.5 million.

Danaher Corp., the Washington, D.C. maker of automotive components and other tools and instrumentation, now expects to close as many as sixteen plants while reducing its workforce by more than 1,000 jobs (4% of its workforce). As a result of the moves, the company expects a reduction in its fourth quarter earnings by $35 million.

Lowrance Electronics Inc., the Tulsa, Ok. firm which makes equipment measuring and controlling devices, reported a first quarter net loss of $1.8 million on a 13% revenue decline-- to $11 million.

Manville Trust, the settlement trust that was established in the 1980s by the Johns Manville building products maker in Denver, Co., is now getting hit with an increasing number of claims. While Manville Trust received a total of more than 58,000 claims last year, trustees are saying that many of the claims are filed by people who are not necessarily medically impaired. Johns Manville Corp. was in bankruptcy in the 1980s due to asbestos litigation and was one of the first firms to pioneer such a trust for the settlement of claims.

Mercy Health System in Philadelphia, Pa. is now cutting its workforce by 400 employees as it restructures its services at two of its hospitals in Havertown and Darby, Pa. In fact, Mercy Health is actually closing down its Mercy Community Hospital as a result.

Razorfish, the Web site designer and consultant, is now selling certain units in Europe to its managers. The company, which lost nearly $50 million during the third quarter, is hoping to turn itself around.

Tully's, the struggling Seattle, Wa. coffee chain which lost more than $6 million in the last six months, is definitely in a turnaround situation according to the company's chief financial officer, Kim Beach. Ms. Beach did say, however, that Tully's, which has partnered with food services giant Sysco to sell its coffees in California, does hope to be "cash-flow positive" in the coming fiscal year -- with a little help from the economy. For a closer look at Tully's, which has no plans to close its underperforming stores but rather put them on probation, call 800-407-9044.

Wyndham International Inc., the debt-laden Los Angeles, Ca. hotel operator that has been significantly hurt by the crisis in the travel industry, has now hired both a restructuring and bankruptcy specialist that could indicate that the company is ripe for a bankruptcy filing. It should be noted that Wyndham is facing a 2/28 deadline on talks with its lenders to renegotiate certain debt.

December 17, 2001

ATG Inc., a Hayward, Ca. provider of waste treatment services, filed for Chapter 11 after the company's bank allegedly froze $3.5 million in funds.

Communication Resources Inc. in Fort Lauderdale, Fl. has now filed for protection under Chapter 11. Located at the same address and also filing Chapter 11, were eleven additional firms ranging from Excalibur Communications Ltd. to Wireless & Cable Communications Inc. No schedules were listed in any of the filings. The case numbers range from 01-28390 to 01-28401.

Film Fabricators Inc. located on Jimmy Carter Blvd in Norcross, Ga. has now filed Chapter 11 listing unsecured liabilities of more than $10 million. No assets were listed. The case number is 01-87787.

Korn/Ferry International Corp., a Los Angeles, Ca. executive search firm, reported a second quarter net loss of $30.9 million on a 37% revenue declined--to $108.9 million. The loss includes charges of $34.8 million.

Luby's Inc., a San Antonio, Tx. restaurant firm, reported a first quarter net loss of $5.3 million on a 16% revenue decline--to $95.2 million.

Moraine Group Inc. dba Meeder Fleming & Associates Inc. in Pittsburgh, Pa. has now filed Chapter 11. No schedules were listed. The case number is 01-31839.

Quizno's Classic Subs/The Bessant Group Inc. in San Jose, Ca. has now filed Chapter 7. No schedules were listed. The case number is 01-55170.

Stelwagon Manufacturing Co. Inc. in Upper Darby, Pa. has now filed Chapter 11 in the U.S. Bankruptcy Court for the eastern district of Pennsylvania. No schedules were listed. The case number is 01-36455.

Tektronics Inc., the Beaverton, Or. maker of measuring instruments, video systems and network displays, reported its second quarter net declined 78%--to $7.9 million on a 34% revenue decline--to $214.6 million. The loss includes a one-time charge of $4.4 million.

Verity Inc., the Sunnyvale, Ca. software firm, reported a second quarter net loss of $1.8 million on a 35% revenue decline--to $22.6 million. The loss includes a restructuring charge of $1.5 million.

Village of Hillsdale in the St. Louis, Mo. area has now filed for bankruptcy protection under Chapter 9. Chapter 9 provides protection for distressed municipalities. No schedules were listed in the filing. The case number is 01-52989.

Ford Motor co. in Dearborn, Mi., which has been hurt by the economic downturn, is considering cutting certain production while also possibly laying off an unspecified number of workers. In addition, the company, which now expects to lose as much as $900 million in the fourth quarter (before restructuring charges), may also seek as much as $10 billion in new capital from its investors.

Drkoop.com Inc. a/k/a Dr. Koop Lifecare Corp. in Santa Monica, Ca., which has been unable to obtain the necessary financing to help keep it operational, has now ceased operating and now plans on filing Chapter 7. A trustee will now attempt to liquidate the company's assets.

December 14, 2001

American West Sign Co. LLC, a Van Nuys, Ca. maker of custom metal signs, filed Chapter 11 in the U.S. Bankruptcy Court in California. The firm listed assets and liabilities of $719,000 and $2.1 million respectively. The case number is SV01-20764-KL. For further information contact the debtor's attorney, Steven Fox, at 818-774-3545.

BEI Inc., Indianapolis, In., filed Chapter 7 in the U.S. Bankruptcy Court in Indianapolis. No schedules were listed.

Classic Screw Inc., a San Dimas, Ca. importer and wholesaler of fasteners, filed Chapter 7 in the U.S. Bankruptcy Court in California. The company listed assets of only $10,000 and liabilities of $603,000. The case number is LA01-44412-EM. For further information contact the debtor's attorney, Leon Bayer, at 213-975-1444. END_OF-ARTICLE

FiberCycle files Chapter 7 FiberCycle Networks Inc., Los Gatos, Ca., filed Chapter 7 listing liabilities of $5.1 million. The case number is 01-55563.

Hotel Huntington Beach, Vernon, Ca., filed Chapter 11 in the U.S. Bankruptcy Court in California. No schedules were listed. The case number is LA01-44147-SB. For further information contact the debtor's attorney, Steven Schwaber, at 626-403-5600.

J&J Creative Supplies Inc., Pittsburgh, Pa., filed Chapter 11 in the U.S. Bankruptcy Court in Pittsburgh. The firm listed assets and liabilities of $500,000 and $510,000 respectively. The case number is 01-31526.

Lernout & Hauspie Speech Products, the bankrupt Belgian-based speech-technology software firm, has sold its speech-technology assets to ScanSoft Inc., a Peabody, Ma. imaging-software firm, for $51 million.

A 1/18 deadline has been set for filing proof of claims in the MCMS Inc. Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court for the District of Delaware at 302-252-2900. for the District of Delaware at 302-252-2900.

Novas Rent A Car/Savon Rent A Car, Van Nuys, Ca., filed Chapter 11 in the U.S. Bankruptcy Court in California. The firm listed assets and liabilities of $6.2 million and $5.3 million respectively. The case number is SV-20682-AG. For further information contact the debtor's attorney, James Hinds, at 310-284-8711.

OneSoft Corp., Reston, Va., filed Chapter 7 in the U.S. Bankruptcy Court in Alexandria. The firm listed assets of less than $50,000 and liabilities of between $1 million and $10 million.

Strictly Wholesale LLC, a Van Nuys, Ca. sign manufacturer, filed Chapter 11 in the U.S. Bankruptcy Court in California. The firm listed assets and liabilities of $854,000 and $2.3 million respectively. The case number is SV01-20761-KL. For further information contact the debtor's attorney, Steven Fox, at 818-774-3545. END_OF-ARTICLE

Value Media LLC, El Segundo, Ca., filed Chapter 7 in the U.S. Bankruptcy Court in California. The firm listed assets and liabilities of $423,000 and $1.8 million respectively. The case number is LA01-44461-TD. For further information contact the debtor's attorney, Richard Leung, at 213-487-9199.

December 13, 2001

Enron Corp. revealed a restructuring plan with an aim of emerging from bankruptcy protection within a year. The Houston, Tx. energy-trading firm said it will shed up to $6 billion of its assets, slash its management staff by about one-third and find a buyer for its trading operations. Meanwhile at congressional hearings into the Enron debacle, the company's auditor, Arthur Andersen, testified that the company had taken part in "possibly illegal" activities and misled its auditors by concealing crucial financial information.

Applied Materials cuts 1,700 jobs[article]Applied Materials Inc., a Santa Clara, Ca. maker of chip-manufacturing equipment, is reducing its payroll by 1,700 employees (10% of its workforce). The job cuts, blamed on continued weakness in the semiconductor market, follow 2,000 layoffs by Applied Materials earlier in the fall. The company will take an as-yet unspecified restructuring charge in the first quarter.

Timespace Inc. in Fort Worth, Tx. filed Chapter 7 in the U.S. Bankruptcy Court in Texas. The company listed assets of between $500,000 and $1 million and liabilities of between $1 million and $10 million.

MRXNET.com Inc., Kennesaw, Ga., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Georgia listing liabilities of $192,000.

Midway Airlines Corp. said it will resume flying in six of its markets on the East Coast. Midway, which in September canceled all of its flights and laid off its 1,700 workers, recently received $10 million in federal emergency aid.

K&S Management, Hamilton, Oh., filed Chapter 7 in the U.S. Bankruptcy Court in Ohio. The firm listed assets and liabilities of $942,000 and $1.1 million respectively. The case number is 01-17875.

Excite@Home Corp., a Redwood City, Ca. Internet provider, received approval from the U.S. Bankruptcy Court to continue its Internet services through February. By continuing operations, the company expects to generate about $355 million from its customers.

Eastgate Marine Inc., Amelia, Oh., filed Chapter 11 in the U.S. Bankruptcy Court in Ohio. The firm listed assets and liabilities of between $500,000 and $1 million each.

Best Bind Trade Bindery Inc. in Arlington, Tx. filed Chapter 7 in the U.S. Bankruptcy Court in Texas. The firm listed assets of less than $50,000 and liabilities of between $500,000 and $1 million.

American Pharmaceutical Services Inc. of Naperville, Il. is being purchased by OmniCare Inc. of Covington, Oh. for about $115 million. OmiCare bought the America from its bankrupt parent company, Mariner Post-Acute.

December 12, 2001

J.P. Morgan Chase Bank has asked the U.S. Bankruptcy Court to have Enron Corp. turn over more than $2 billion worth of cash and other assets. Morgan called the request a procedural move in the Chapter 11 case of the Houston, Tx. energy-trading firm. J.P. Morgan, which earlier agreed to help raise $1.5 billion in postpetition financing for the firm, is also part of a group that wants to set up a joint venture to take control of Enron's energy-trading assets.

Sheffield Steel Corp. filed Chapter 11. Sheffield, based in Tulsa, Ok., also operates a rolling mill in Joliet, Il. Also filing for bankruptcy protection were two of its affiliates, Wellington Industries Inc. and Waddell's Rebar Fabricators Inc.

Schoonover Steel Co., St. Petersburg Beach, Fl., filed Chapter 11 in the U.S. Bankruptcy Court in Tampa. No schedules were listed. The case number is 01-21298.

Polaroid Corp., Cambridge, Ma., has seen a retiree group file objections with the U.S. Bankruptcy Court regarding a plan by the company to give top executives bonuses of millions of dollars.

Lagniappe Group Inc., Nashville, Tn., filed Chapter 11 in the U.S. Bankruptcy Court in Nashville. The company listed assets of between $1 million and $10 million each. The case number is 01-12726.

A 12/18 hearing has been scheduled to consider bidding procedures in the Innovative Home Products Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Jeffrey Schwartz, at 212-363-4500.

Gonyo Brothers Dairy Farm, Mooers, N.Y., filed Chapter 11 in the U.S. Bankruptcy Court in Albany. No schedules were listed. The case number is 01-17222.

DM&K Construction Services Inc., Detroit, Mi., filed Chapter 7 in the U.S. Bankruptcy Court in Detroit. The firm listed assets and liabilities of $918,000 and $1.4 million respectively.

Cho Yang Shipping Co. Ltd., headquartered in Seoul, South Korea, filed for bankruptcy protection in the U.S. Bankruptcy Court in Cleveland, Oh. The case number is 01-21466. The Cho Yang filing is ancillary to a foreign proceeding.

Black-Eyed Pea USA Inc., Madison, Tn., filed Chapter 11 in the U.S. Bankruptcy Court in Nashville. The company listed assets of between $10 million and $100 million each. Listed at the same address and also filing Chapter 11 were Denam Inc., Texas BEP LP, Phoenix Foods Inc. and Prufock Restaurants of Kansas Inc.

Algoma Steel of Sault Ste. Marie, Ontario, which is operating under Canadian bankruptcy law, has agreed with its noteholders on a revised plan that would increase rates on new notes from 9.5% to 11%. Other creditors will be requested to vote on the plan.

AGS Environmental Services Inc., Oak Park, Mi., filed Chapter 11 in the U.S. Bankruptcy Court in Detroit. No schedules were listed.

Luminant Worldwide Corp., a bankrupt a bankrupt Houston, Tx. consultant, agreed to sell certain assets to Lante Corp. of Chicago, Il. for $3 million.

December 11, 2001

The Pritzker family agreed to pay $460 million to settle charges by federal regulators related to the failure over the summer of Superior Bank FSB of Chicago, Il. In making the payment to be spread over fifteen years, the billionaire Pritzkers avoid costly and lengthy litigation over the debacle at Superior Bank, which the Pritzkers held a 50% interest in.

LTV Corp. said that it dismissed more than 1,600 employees as it closed its Indiana Harbor Works plant in East Chicago, In. A spokesman for the Cleveland, Oh.-based firm explained that the company is going out of business and that it is seeking to find a buyer for the company. Failing that, LTV would sell itself off in pieces. The bankrupt steelmaker recently agreed to idle its plants for almost three months in order to gain time to get approval for a $250 million emergency steel loan.

Wilson Logistics Inc., Sheboygan, Wi., filed Chapter 11 in the U.S. Bankruptcy Court in Milwaukee. No schedules were listed. The case number is 01-32842.

Triple M Supply LLC, Aledo, Tx., filed Chapter 7 listing assets of less than $50,000 and liabilities of between $500,000 and $1 million.

TNT Rentals Services Inc., West Hollywood, Ca., has seen an involuntary Chapter 7 petition filed against it. No schedules were listed. The case number is LA01-43613-ES.

Suzy Fashion, Los Angeles, Ca., has seen an involuntary Chapter 7 petition filed against it. No schedules were listed. The case number is LA01-43875-BB.

Portland Bottling Co., Portland, Or., filed Chapter 11 in the U.S. Bankruptcy Court in Portland. No schedules were listed. The case number is 301-41496.

MMB Food Services LLC, Detroit, Mi., has seen an involuntary Chapter 7 petition filed against it. No schedules were listed.

A 1/7 hearing has been scheduled to consider the disclosure statement in the Loews Cineplex Entertainment Corp. Chapter 11 bankrupty. For further information contact the debtor's attorney, Brad Eric Scheler, at 212-859-8000.

Jamson COrp., Bessemer, Al., filed Chapter 11 in the U.S. Bankruptcy Court in Alabama. No schedules were listed. The case number is 01-08077.

Healthsphere Inc., Fort Worth, Tx., filed Chapter 7 listing assets of less than $50,000 and liabilities of between $500,000 and $1 million.

Frederick's of Hollywood Inc.'s chief executive, Linda LoRe, said that her company is gradually turning itself around. Ms. LoRe says that fiscal 2001 was its strongest year in the past half-decade, with total sales of $150 million through its retail stores, catalog and Internet operations. Its Internet unit has been its strongest performer, seeing triple-digit increases in sales this year.

Feathers Electric Ltd., Morton, Pa., filed Chapter 7 in the U.S. Bankruptcy Court in Philadelphia. No schedules were listed. The case number is 01-36248.

Cybertel Inc., Middletown, N.J., filed Chapter 7 in the U.S. Bankruptcy Court in New Jersey. No schedules were listed. The case number is 01-62975.

Axelsson and Johnson Fish Co. Inc., Cape May, N.J., filed Chapter 11 in the U.S. Bankruptcy Court in New Jersey. No schedules were listed. The case number is 01-21031.

ABC-NACO Inc., a bankrupt Lombard, Il. manufacturer of products for the railroad industry, reached a deal to sell its operating assets to TCF Railco Acquisition Corp. for $75 million. The deal is subject to approval by the U.S. Bankruptcy Court

Delphi Automotive Systems Inc., a Troy, Mi.-based automotive supplier, has upped its estimated number of job cuts by 1,400, as a result of an anticipated decline in sales of new cars next year. The company is forecasting that next year its sales will decline to $25.5 billion, down from $26.1 billion this year. Next year's net income is expected to rise to $275 million from $220 million this year, but that doesn't include charges of $404 million this year and as much as $150 million next year. The recent cuts come on top of earlier-announced plans to cut its payroll by more than 11,000 positions, get out of certain noncore operations and sell its generator business to Delco Remy International Inc. for $500 million.

December 10, 2001

Enron Corp. is now the target of a bidding war. Citigroup Inc. of Manhattan, N.Y. and Swiss-based UBS AG have submitted bids to the U.S. Bankruptcy Court to acquire the trading operations of the troubled Houston, Tx. energy-trading company. It is also thought that J.P. Morgan Chase & Co. will also make a bid. Values of the offers have not been revealed. Separately, Enron, which has blamed its Chapter 11 bankruptcy filing on Dynergy Inc.'s cancellation of its $9 billion offer to purchase Enron, has now seen Dynergy ask to have Enron's bankruptcy case moved from the U.S. Bankruptcy Court in New York and transferred to the Houston, Tx. U.S. Bankruptcy Court. The only reason Enron filed in New York was because its Enron Metals & Commodity Corp. unit also filed for bankruptcy protection. It should be noted that Enron's $1.5 billion interim debtor-in-possession financing package is set for syndication this week.

Essco Eastside Services Corp., West New York, N.J., filed Chapter 7 in New Jersey. No schedules were listed. The case number is 01-42277.

Factory Card Outlet Corp. has now sought U.S. Bankruptcy Court approval for an extension of its exclusivity period for filing its reorganization plan.

General Cinema Cos. Inc., a bankrupt Newton, Ma.-based chain of movie theaters, has reached a deal to be bought by AMC Entertainment Inc. of Kansas City, Mo. The deal calls for AMC to pay General Cinema's creditors between $175 million and $195 million. In making the acquisition, AMC will add General Cinema's seventy-three theaters and 677 screens to its existing 2,800 screens at its 177 theaters.

A 12/17 auction has been scheduled for certain assets in the Fieldbrook Farms Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Gary Feigenbaum, at 860-278-7480.

Geo Software Inc., Lexington, Ma., filed Chapter 7 in the U.S. Bankruptcy Court in Boston. No schedules were listed. The case number is 01-18809.

A 12/26 auction on the sale of certain properties has been scheduled in the Bethlehem Steel Corp. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Weil, Gotshal & Manges LLP, at 212-310-8007.

Burtman Iron Works Inc., Readville, Ma., filed Chapter 7 in the U.S. Bankruptcy Court in Boston. No schedules were listed. The case number is 01-18796.

Carl N. Swenson Holding Co. Inc. in San Jose, Ca. has now filed Chapter 11 listing assets and liabilities $794,000 and $3.3 million respectively. The company's largest creditor is owed $1.7 million. The case number is 01-55418.

Edgewater Medical Center, Chicago, Il., said it will close down, after being unable to find a buyer for its hospital. The government claims that Edgewater owes it $10 million for alleged Medicare fraud.

Energy Conversion Devices Inc., a Troy, Mi. maker of photovoltaics, reported a first quarter net loss of $2.8 million. Sales more than doubled--to $22.5 million.

EPresence Inc., a Westborough, Ma. software and computer peripherals firm, reported a third quarter net loss of $26.4 million on a 53% revenue decline--to $10.7 million.

Esterline Technologies Corp., a Bellevue, Wa. maker of automated manufacturing equipment for printed circuitboard assemblies, cable assemblies, etc., reported its fourth quarter net declined 34%--to $7.3 million--on a 10% revenue decline--$124.5 million.

Exide Technologies, a Reading, Pa. maker of automotive batteries and accessories, reported a second quarter net loss of $32.5 million. The results included nonrecurring charges of $16.7 million. Its revenue increased 26%--to $624 million.

December 7, 2001

Arch Wireless Inc., a Westboro, Ma. wireless messaging company, filed Chapter 11. The company, sagging under $2 billion in debt, had reportedly reached an agreement with its creditors whereby it will issue $300 million in notes in exchange for outstanding bonds valued at $1.3 billion.

Bonner Metal Processing, Livermore, Ca., filed for bankruptcy protection in the U.S. Bankruptcy Court in Oakland. No schedules were listed. The case number is 01-45893.

Suiza Foods Corp. of Dallas, Tx. and Dean Foods Co. of Franklin Park, Il. will sell five more of their dairies in order to get regulatory approval for their $1.7 billion merger. That brings to eleven the number of plants the firms will divest, as the largest and second-largest U.S. dairy companies combine into a firm with $9.5 billion in annual sales.
LTV Corp. said it will keep open its steel mills until February and back up the United Steelworkers of America's attempts to arrange federal financing to save the company. The bankrupt Cleveland, Oh. steelmaker now has until 12/19 to gain approval for $250 million through an emergency steel loan deemed essential to keep LTV alive. Meanwhile, the U.S. Bankruptcy Court continues deliberating whether LTV can be saved in the long run or if it should go ahead and find buyers for its assets.

Major League Baseball's commissioner, Bud Selig, testified before Congress that baseball teams racked up $232 million in operating losses during the 2001 season. Revenue was $3.5 billion. The biggest loser was the Los Angeles Dodgers, which had $45 million in operating losses. Twenty-five of the Major League's franchises ended the season in the red. Mr. Selig added that cumulative losses were $1.4 billion for the seven years since 1995. Not all teams are losers, however, with the league's two big cash cows, the New York Yankees and the Cleveland Indians, reporting operating income of $94 million and $39 million respectively during that period

Planet Enterprises Corp., a Menands, N.Y.-based wholesale distributor of music, filed Chapter 11 in the U.S. Bankruptcy Court in New York.

Comdisco Inc., Rosemont, Il., is reducing its payroll by 128 employees (10% of its workforce) in order to cut costs. The bankrupt firm has been selling off certain of its technology-leasing operations as part of its reorganization efforts.

Fantom Technologies Inc., a Canadian-based firm, filed Chapter 12 in the U.S. Bankruptcy Court in New York. No schedules were listed.

Fruit of the Loom Inc., Chicago Il., won approval from the U.S. Bankruptcy Court for certain sale procedures. The approval will allow Berkshire Hathaway Inc. of Omaha, Ne. to proceed with its $835 million bid to acquire the apparel company.

Kent Trucking, Alden, N.Y., filed Chapter 13 in the U.S. Bankruptcy Court in New York. The firm listed assets and liabilities of $325,000 and $929,000 respectively.

Media Group Inc., Fremont, Ca., filed for bankruptcy protection in the U.S. Bankruptcy Court in Oakland. No schedules were listed. The case number is 01-45924.

Rhythms NetConnections Inc. has reportedly sold certain DSL network equipment to WorldCom Inc. of Clinton, Ms. for $31 million. Separately, a 1/8 hearing has been scheduled to consider the disclosure statement in Rhythms' Chapter 11 bankruptcy case. For further information contact the debtor's attorney, Paul Basta, at 212-310-8000.

December 6, 2001

Mid South Road Builders Inc., Columbus, Ms., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Mississippi. No schedules were listed. The case number is 01-16862.

Sun Enterprises Inc., Memphis, Tn., filed Chapter 11 in the U.S. Bankruptcy Court in Memphis. No schedules were listed. The case number is 01-37899.

Lednetwork.com Corp., a Clayton, Mo. online provider of car loans, filed Chapter 11 in the U.S. Bankruptcy Court in St. Louis. The firm listed assets and liabilities of about $50 million each.

Egghead.com Inc., a bankrupt Menlo Park, Ca. online technology retailer, sold some of its assets to Amazon.com Inc. of Seattle, Wa. for $6.1 million.

Ames Department Stores Inc., the bankrupt Rocky Hill, Ct.-based retailer, said it will shutter fifty-four more stores. This is Ames's third round of closing stores as it continues reorganizing. The stores to be closed will begin liquidating after the holiday shopping season and will close by February or March. The closings, which will affect about 3,000 employees, are an attempt to strengthen business at its remaining 333 stores.

CNA Financial Corp. is eliminating more than 100 of its offices around the country and will reduce its payroll by 1,850 employees (11% of its workforce). The Chicago, Il. insurance concern will take related charges in the fourth quarter of up to $124 million. In addition, CNA will take $50 million in extra charges to cover investment losses related to the Enron Corp. bankruptcy. In its third quarter, CNA reported a loss of $155 million.

Excite@Home Corp. said it will cease operating on 2/28. The move by the bankrupt Redwood City, Ca. Internet-service company follows AT&T Corp.'s decision not to pursue its plans to buy the network assets of Excite for $307 million.

Ford Motor Co. is now projecting a fourth quarter loss of about $900 million. Thn loss, about five times larger than what analysts had been predicting, stems from operating losses and marketing costs but it does not include what are expected to be large restructuring charges. The Dearborn, Mi. company earlier said it would lay off 360 employees and reduce certain retirement and health benefits for 45,000 of its white-collar staff in a move to save $300 million annually.

Hayes Lemmerz International Inc., a Northville, Mi. supplier of automotive wheels, filed Chapter 11. The filing includes its units in the U.S. and some in Mexico but none of its operations outside North America. In conjunction with the filing, the company arranged $200 million in financing from a group led by CIBC World Markets Corp.

December 5, 2001

USX-U.S. Steel Corp. of Pittsburgh, Pa. and bankrupt Bethlehem Steel Corp. of Bethlehem, Pa. are in the early stages of merger negotiations. Other integrated steelmakers, those that manufacture steel out of raw iron ore and coke, are involved in or might be asked to join the discussions, including Weirton Steel Corp. and Wheeling-Pittsburgh Corp. The talks so far have involved members of the Bush administration, with USX-U.S. Steel and Bethlehem asking that the federal government fund part of the costs of such a merger by assuming some retiree healthcare costs. Among the biggest obstacles to mergers in the fragmented domestic steel industry has been the huge pension liabilities that companies face, totally some $13 billion for the industry overall. The United Steelworkers of America, already expressed support for such a merger, has been asked by the steel companies to come up with a new labor contract for the proposed merger. A combination of the top steelmakers in the U.S. would help them better compete with rivals around the world.

C2 Media Inc. has entered into an agreement to be sold to Creative Acquisitions Inc. for about $6 million in cash. The deal, being conducted through the U.S. Bankruptcy Court in Manhattan, N.Y., is subject to higher offers.

Bridgestone/Firestone Inc. is getting a $1.3 billion capital infusion from its parent company, Bridgestone Inc. of Tokyo, Japan. Firestone, based in Memphis, Tn., needs the cash to shore up its finances, which have been devastated by costs related to the recall of millions of allegedly defective tires and the aftermath. The infusion from Bridgestone allow Firestone to cut its debt from $2.7 billion to $1.4 billion. The U.S. company is now projecting a loss of $1.6 billion for the current year, including payments for settling lawsuits and writing down the value of its tire operations.

ProtoChannel Inc., Stamford, Ct., has now filed Chapter 7 in the U.S. Bankruptcy Court in Connecticut. The company listed assets of between $1 million and $10 million each.

AT&T Corp. of Basking Ridge, N.J. called off its offer to buy the network assets of Excite@Home Corp. for $307 million. The AT&T decision, following the failure to reach a new service contract with the bankrupt Redwood City, Ca. Internet-service company, increases the chances Excite will fail if no other suitors step forward with an offer. While Excite earlier shut off service to some 850,000 of AT&T Corp.'s cable subscribers, the company did reach an agreement to continue providing its high-speed service to a group including Cox Communications Inc. of Atlanta, Ga., Comcast Corp. of Philadelphia, Pa. and Rogers Cable Inc. of Toronto, Ontario. In return the companies will pay Excite $355 million, enough to keep it going for the next few months.

LTV Corp. asked the U.S. Bankruptcy Court for permission to cease operating and put its assets on the selling block. The company argued that it cannot come up with a restructuring plan that would satisfy federal requirements for a $750 million loan guarantee. The request comes shortly after the company's chairman and CEO, William Bricker, resigned. The court will hear further arguments on the matter today. A shutdown of LTV would result in the loss of 7,500 jobs.

The U.S. Postal Service reported a fiscal net loss of $1.7 billion, partly as a result of disruptions caused by the weak economy and terrorist attacks. With additional losses of up to $1.3 billion projected for the upcoming year, the Postal Service now wants to speed up plans to raise postal rates. The company has been facing weak growth in volume in recent years due to rising competition from private delivery services as well as from communications via the Internet. Mail-volume growth of about 4% in 1997 has withered to a 0.2% decline in fiscal 2001.

Muha Sporting Goods Inc., Trenton, N.J., filed Chapter 7 in the U.S. Bankruptcy Court in New Jersey. No schedules were listed. The case number is 01-62501.

BB&B Transportation Inc., Plant City, Fl., has now filed Chapter 11 in the U.S. Bankruptcy Court in Tampa. No schedules were listed. The case number is 01-20236.

National Record Mart, a Carnegie, Pa. music retail chain, hired Keen Realty LLC, per order of the U.S. Bankruptcy Court in Pennsylvania, to help it dispose of 113 retail locations and its headquarters facility.

A 12/5 deadline has been set for filing acceptance or rejection of the reorganization in the Globe Manufacturing Corp. Chapter 11 bankruptcy. For further information contact the U.S. Bankruptcy Court at 205-714-4000.

State Street Bank and certain bondholders of Fruit of the Loom Ltd. have lodged objections to the apparel company's request that its bidding procedures and termination fee be reconsidered.

A 1/11 deadline has been set for filing proof of claims in the International Total Services Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Mitchel Sonkin, at 212-556-2100.

Super Discount Markets Inc., Lithonia Springs, Ga., has now filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Georgia. No schedules were listed, although the firm owes nearly $23 million to its top twenty creditors. The case number is 01-87596.

Warnaco Group Inc. of Manhattan, N.Y. received approval from the U.S. Bankruptcy Court to use its employee-retention plan. The plan, which will cost about $26 million, is aimed at retaining about 245 of its top managers and directors.

December 4, 2001

Enron Corp., trying to stay alive, laid off 4,000 employees (20% of its worldwide workforce). This follows 1,100 job cuts at its European operations last week. In addition, as it tries to develop a reorganization plan and avoid a rapid liquidation, the Houston, Tx. energy-trading firm arranged up to $1.5 billion in financing through J.P. Morgan Chase & Co. and Citigroup Inc. The firm is also in talks for further financing to help fund its trading operations through a joint venture. Meanwhile, Dynegy Corp., whose pulling out of a merger deal with Enron preceded the bankruptcy filing, has now sued Enron in an attempt to gain control of its Northern Natural Gas Co. pipeline unit. Just the day before, Enron sued Dynegy, charging it with wrongfully terminating the merger deal.

Excite@Home Corp., which won the right from a judge to cancel its cable contracts and shut off service to some 850,000 of AT&T Corp.'s cable subscribers, reached an agreement to continue providing its high-speed service to a group including Cox Communications Inc. of Atlanta, Ga., Comcast Corp. of Philadelphia, Pa. and Rogers Cable Inc. of Toronto, Ontario. In return the companies will pay Excite $355 million, enough to keep it going for the next few months.

Data Center Direct Inc. in Horsham, Pa., which does business as Safeguard Global Services and Mainframe Communications, has now filed Chapter 7 in the U.S. Bankruptcy Court in Philadelphia. No schedules were listed. The case number is 01-36165.


Polaroid Corp., Cambridge, Ma., received approval from the U.S. Bankruptcy Court to sell its identification-card operations to Digimarc Corp. for $56.5 million in cash. Polaroid's ID operations, which makes driver's licenses for thirty-six states, has annual sales of between $50 million and $60 million and is considered one of Polaroid's more valuable assets. Digimarc, based in Tualatin, Or., makes technology that embeds digital data into pictures.

Excel Eyewear Corp., Boca Raton, Fl., has now filed Chapter 7 in the U.S. Bankruptcy Court in Florida. No schedules were listed. The case number is 01-35678.

Health Watch Inc., Boca Raton, Fl., has now filed Chapter 11 in the U.S. Bankruptcy Court in Camden, N.J. No schedules were listed. The case number is 01-21070.

Midway Airlines, a bankrupt North Carolina-based airline, will get $10 million from the federal government's airline-bailout package. The company will use the money to resume flights.

Pool Tech Inc., Antioch, Ca., filed for bankruptcy protection in the U.S. Bankruptcy Court in Oakland. No schedules were listed. The case number is 01-46002.

Southwest Lift Inc., San Antonio, Tx., has now filed Chapter 11 in the U.S. Bankruptcy Court in Texas. No schedules were listed. The case number is 01-55004.

Trak Distributors Inc., Memphis, Tn., has now filed Chapter 7 in the U.S. Bankruptcy Court in Memphis. No schedules were listed. The case number is 01-37432.

A 1/4 deadline has been set for filing proof of claims in the Warnaco Group Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, J. Ronald Trost, at 212-906-2000.

A 12/7 deadline has been set for submitting bids for certain assets in the Penn Specialty Chemicals Inc. Chapter 11 bankruptcy. For further information contact the debtor's attorney, Mark Collins, 302-651-7700.

December 3, 2001

Enron Corp. filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York, listing assets of nearly $27.8 billion. Including assets of its Enron North America Corp., Enron Metals & Commodity Corp., Enron Broadband Services and other units, its assets total just shy of $50 billion, making Houston, Tx.-based Enron the biggest bankrupt filing in U.S. history in terms of assets. Liabilities were listed at $13.2 billion, but that doesn't include an estimated $27 billion in certain off-balance-sheet and contingent debt. The bankruptcy filing does not include Enron's profitable Northern Natural Gas Co. and other pipeline, construction and engineering operations. Along with the bankruptcy petition, Enron filed a lawsuit against Dynegy Corp., alleging that its crosstown rival wrongfully terminated a merger agreement. For its part, Dynegy claims it has the right to take possession of Enron's pipeline system. Other suitors are expected to make bids for the best parts of Enron's operations.

Excite@Home Corp., getting permission from the U.S. Bankruptcy Court to shut down its high-speed Internet cable operations, shut off service to some 850,000 of AT&T Corp.'s cable subscribers. The move follows the collapse of negotiations between Excite and AT&T on a deal for AT&T to pay more than $300 million to continue the service. Excite continues negotiations to keep providing service for other large cable operators, including Cox Communications Inc. of Atlanta, Ga. and Comcast Corp. of Philadelphia, Pa. The breakdown of talks with AT&T casts considerable doubt on AT&T's plans to acquire the assets of Redwood City, Ca.-based Excite@Home.

Bolnick's Snack Shop, Atlanta, Ga., has now filed Chapter 7 in the U.S. Bankruptcy Court for the Northern District of Georgia listing liabilities of nearly $1.7 million. The case number is 01-87288.

FirstInn LLC, Hutchinson, Ks., has now filed Chapter 11 in the U.S. Bankruptcy Court in Wichita. No schedules were listed. The case number is 01-15421.

Innovative Environmental Solutions Inc., Slidell, La., has now filed Chapter 7 in the U.S. Bankruptcy Court for the Eastern District of Louisiana listing liabilities of $875,000. No assets were listed.

Methode Electronics Inc., a Chicago, Il. maker of automotive circuits, controls and electronic assemblies, reported its second quarter net declined 57%--to $3.9 million. Its revenue declined 14%--to $81.1 million.

Movado Group Inc., a Lyndhurst, N.J. maker and distributor of watches, reported its third quarter net declined 40%--to $7.5 million. Its revenue declined 14%--to $90.1 million.

Millennium Financial Services International Inc., Miramar, Fl., has now filed Chapter 7 in the U.S. Bankruptcy Court for the Northern District of Georgia. No schedules were listed. The case number is 01-73849.

Quality Stores Inc., a bankrupt Muskegon, Mi.-based retailer, announced plans to shutter eighty-nine of its stores in an effort to streamline and focus on its stores in the eastern part of the country.

Claire's Stores Inc., a Pembroke Pines, Fl. seller of costume jewelry, accessories and apparel, reported its third quarter net declined 83%--to $2.4 million. Its revenue declined 6%--to $234 million.