January 72000

January 7, 2000

Boston Chicken Files Reorganization Plan

Golden, Colo.-based Boston Chicken Inc. announced that it and
its Boston Market-related subsidiaries have filed a joint plan of
reorganization with the Bankruptcy Court for the District of Arizona in
Phoenix, according to a newswire report. The plan is based on the
previously announced Asset Purchase Agreement, which provides for the
sale of substantially all of the assets of Boston Chicken to Golden
Restaurant Operations Inc., a subsidiary of McDonald's Corp. The $173.5
million purchase also includes the assumption of certain related
liabilities. Boston Chicken's ownership interest in Einstein/Noah Bagel
Corp. is not subject to the Asset Purchase Agreement. Boston Chicken
filed chapter 11 on Oct. 5, 1998. It expects the plan to be confirmed by
the middle of the year. All the filings in the case are available online
at
target='_parent'>http://ecf.azb.uscourts.gov.

KCS Energy Plans to Move Ahead with Restructuring Despite
Involuntary Petition

KCS Energy Inc., Houston, reiterated yesterday that despite the
involuntary chapter 11 filed this week by three noteholders, it intends
to move forward with a restructuring agreement approved by more than
two-thirds of its 8.875 percent senior subordinated notes due Jan. 15,
2008 and by more than a majority of its 11 percent senior notes due Jan.
15, 2003 and that it will continue to pay trade creditors in the
ordinary course. KCS Energy said that as previously announced, this
would be implemented through a voluntary chapter 11 filing to come
mid-month.

Dow Corning Asks District Judge to Vacate Bankruptcy Judge's
Opinion on Third Parties

Dow Corning Corp. and the Tort Claimants Committee (TCC),
representing women with silicone gel breast implants and other product
liability claims, announced yesterday that they have jointly asked U.S.
District Judge Denise Page Hood to set aside one portion of Bankruptcy
Judge Arthur Spector's recent opinion, which they say
has created confusion about Dow Corning's reorganization plan, which was
approved by the court and 94 percent of the claimants, according to a
newswire report. Judge Spector confirmed the plan on Nov. 30, but in an
opinion signed on Dec. 21, the court attempted to modify the plan to
allow anyone who did not vote in favor of it to sue Dow Corning's
shareholders and third parties. In pleadings filed, attorneys for Dow
Corning and TCC stated that the bankruptcy court had no jurisdiction
over the joint plan once plan objectors filed appeals from the
confirmation order. Dow Corning President and CEO Gary E. Anderson said,
'The third-party release is an integral part of the joint plan of
reorganization that was heavily negotiated between Dow Corning and the
Tort Claimants Committee to resolve the silicone breast implant
controversy. Without the third-party release, there is no closure of
breast implant litigation against our shareholders or Dow Corning.'

Harnischfeger Announces Selection of Initial Bids for
Beloit

Harnischfeger Industries Inc., Milwaukee, announced the
selection of initial bids for the sale of assets of Beloit Corp., the
company's pulp and papermaking equipment manufacturing and servicing
subsidiary, according to a newswire report. The company and its
subsidiaries, including Beloit, filed chapter 11 on June 7, 1999. An
auction will be held Monday at the Chicago offices of Kirkland &
Ellis, and a hearing is scheduled in bankruptcy court on Jan. 19. to
approve bids accepted by Beloit. The selected initial bids receive
'stalking horse' protection in the auction under 'Bid Protection
Procedures' previously approved by the bankruptcy court. The selected
initial bids are Pulp and Finishing Divisions: Groupe Laperriere &
Verreault Inc., Woodyard Division: Andritz AG, OASIS: Alignment Services
of North America Inc., Paper Aftermarket and Roll Covers Division:
Valmet Corp., and Paper Technology: Mitsubishi Heavy Industries Inc.
Robert N. Dangremond, chief restructuring officer for
the company and Beloit, is directing the sale process and
PricewaterhouseCoopers Securities LLC is acting as Harnischfeger's
investment banker to assist in the sale.

Service Merchandise Met 1999 Targets

Service Merchandise Co. Inc., Nashville, Tenn., which is
operating in chapter 11, said yesterday that it should exceed targets
set in its 1999 business plan, according to Reuters. Based on
preliminary financial data, the jewelry and home products retailer's
1999 sales exceed $500 million while gross margin exceeded the business
plan by more than $5 million. Service Merchandise also said it is
seeking an extension of its exclusivity period to file a plan through
June 30, 2001. The retailer, which filed chapter 11 last March, expects
to have more than $250 million of excess availability this month.

USA Digital Acquires ISP

USA Digital Inc. announced that it has exercised its right to
acquire 100 percent of the stock in Syncom Inc. (dba Gator.net) in
complete satisfaction of a previously negotiated promissory note,
according to a newswire report. Gator.net, a Gainesville, Fla.-based
Internet service provider (ISP), recently emerged from chapter 11
protection. Gator.net services more than 2,500 subscribers, and USA
Digital said it will be able to reduce Gator.net's current monthly
telephone line charges by about 70 percent.

Ninth Circuit—U.S. Bankruptcy Judges for
Reappointment

Comments for the judge(s) should be submitted no later than January
31, 2000 to the following address: Office of the Circuit Executive, P.O.
Box 193939, San Francisco, CA 94119-3939, Attn: U.S. Bankruptcy Judge(s)
Reappointment; Fax: (415) 556-6179

Two Bankruptcy Judge Positions in S.D.N.Y. Open

The Second Circuit Judicial Council invites application from highly
qualified candidates for two bankruptcy judge positions for the Southern
District of New York. The people selected will maintain chambers in New
York City at Bowling Green. The selection process will be confidential
and competitive. Applicants will be considered without regard to race
color, age (over 40), gender, religion, ethnicity, national origin or
disability. The term of office is 14 years, and the current salary is
$129,996 per annum (effective January 1, 2000). Basic qualifications
include: 1) admission to practice before the highest court of at least
one state, the District of Columbia or the Commonwealth of Puerto Rico;
2) membership in good standing in every bar in which membership is held;
and 3) at least five years of legal practice experience. Application
forms may be obtained by calling, writing or faxing a request to: Office
of the Circuit Executive, U.S. Courthouse, 40 Foley Square, Room 2904,
New York, NY 10007. Phone: (212) 857-8700; Fax (212) 857-8680.
Application packages must be received no later than Jan. 14.

Visit
target='_parent'>http://www.abiworld.org/employment/listings.html
for other court position openings or to post a job
listing.

Iridium Seeks 90-Day Extension of Its Exclusive Periods

The U.S. Bankruptcy Court in Manhattan on Thursday was to consider
Iridium LLC's (IRIQE) request for a 90-day extension in its exclusive
periods for filing and soliciting acceptances to a chapter 11 plan. The
request follows Iridium's conclusion that it needs funding from an
outside investor to successfully reorganize. While the company has
received interest and is continuing to search for potential investors,
it has not obtained funding commitments. In addition to seeking
investors, Iridium recently began seeking potential purchasers of the
company's assets. Iridium believes the process of seeking an investor
and/or asset purchaser will take until at least Feb. 15., several weeks
after the Jan. 11 expiration of the company's exclusive period for
filing a plan.

Courtesy of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The
Daily Bankruptcy Review Copyright ©
January 7, 2000..