February 182000

February 18, 2000

This End Up Parent and Affiliates File Chapter 11

TEU Holdings Inc., the parent company of furniture retailer This End Up,
said yesterday that it and 122 affiliates have filed for chapter 11
protection in the District of Delaware, according to a newswire report.
TEU, which is based in Richmond, Va., and employees more than 2,000
people at 137 stores, listed assets of $59 million and liabilities of
$75 million. The company said the filings were precipitated by
acquisitions, diversification and vertical integration decisions that
strained cash flow, In addition, the development and implementation of a
centralized distribution system failed, which substantially increased
fixed costs and led to the deterioration of delivery lead times.
Congress Financial Corp., TEU’s lender, has agreed to fund the
company’s operations in chapter 11.

Ambassador Eyewear Group Files for Bankruptcy and
Seeks Sale of Assets

Ambassador Eyewear Group Inc., Bensalem, Pa., announced that it
filed for chapter 11 protection in the District of Delaware on Feb. 15
and that it will seek approval of a sale of substantially all of its
assets to Marchon Eyewear Inc., according to a newswire report. The
company also said the sale will be subject to higher offers by a
deadline to be set by the court. Hon. Joseph J. Farnan, U.S. District
Court Judge, has scheduled a hearing for March 22 on approval of the
sale to Marchon or an alternative bidder.

Allied’s U.S. Carleton Unit Seeks Bankruptcy
Protection

Britain’s Allied Textile Companies Plc., which announced last
month it would withdraw from its North American natural fibers business,
said today that its U.S. unit Carleton has filed for chapter 11
protection, according to a newswire report. Allied Textile said the
Carleton management filed in light of its financial position. Last
month, Allied said no further funds would be made available to
Carleton.

SubMicron Systems Questions Trading Activity

SubMicron Systems Corp., which filed chapter 11 last September and
consumer the sale of substantially all of its assets pursuant to a court
order in October, noted there has been a substantial increase recently
in both the price and trading volume of its common stock. As a result of
the sale, the company has no operating assets or employees, and a
proposed liquidation plan has been filed with the disclosure statement.
A hearing is scheduled for March 1 in Wilmington, Del. The plan does not
provide for a recovery by the holders of the company’s common
stock.
           

Court Approves Purina Mills’s Disclosure Statement

Purina Mills Inc., St. Louis, announced that it has received
approval from the bankruptcy court on its disclosure statement for its
reorganization plan, according to a newswire report. Now Purina Mills
will begin soliciting votes for its plan. Purina Mills filed chapter 11
on Oct. 28 in the District of Delaware.

Forman Petroleum Announces Reorganization Plan Provisions

Forman Petroleum Corp. announced yesterday that the company’s
plan was confirmed by the bankruptcy court on Dec. 29 and became
effective on Jan. 14, according to a newswire report. The company filed
in the Eastern District of Louisiana in August. On the effective date of
the plan, all the bondholders and preferred stockholders exchanged their
claims for all of the common equity in the company. Over $90 million of
indebtedness and obligations to holders of senior secured notes and
preferred stock were cancelled on the effective date, as well as all of
the issued and outstanding common stock, preferred stock, warrants and
options. Approximately $300,000 of allowed unsecured claims of $30,000
or less were paid in full in cash, and new common stock was issued to
the former holders of the senior secured notes and the preferred stock.
Also, new warrants to purchase common stock were issued to McLain
Forman, the former holder of all of the issued and outstanding voting
common stock of the company, and to former holders of certain warrants.
Within 60 days of the effective date, the company will issue about $3
million in unsecured promissory notes to the holders of allowed
unsecured claims of more than $30,000, which will be paid in full with
interest over a three-year period.