April 16,
2004

Senate to Consider Asbestos
Bill Next Week

The Senate will return on
Monday to begin a debate on an asbestos litigation bill that would
establish a trust fund, rather than use the legal system, to compensate
victims of asbestos-related illnesses, CongressDaily reported.
Democrats largely oppose the bill because they say it will not
adequately compensate victims. Senate Majority Leader Bill Frist
(R-Tenn.) is expected to file a cloture motion as early as Monday to
limit debate on the bill, but it is not expected to pass. Judiciary
Chairman Orrin Hatch (R-Utah), a sponsor of the bill, conceded last week
Republicans do not have the necessary 60 votes.

Weirton To Urge
Approval Of Asset Sale To ISG

Weirton Steel Corp. said yesterday it will recommend
to a bankruptcy judge on Tuesday to approve the sale of Weirton's assets
to International Steel Group Inc., Reuters reported. 'After a long and
detailed examination of both bids for our assets, we decided that ISG
has the highest and best bid that complies with applicable legal
standards for submission to the court for the approval of the sale,'
said D. Leonard Wise, Weirton Steel's CEO. Weirton Steel's assets have
attracted bids from Cleveland-based International Steel and from a group
of debtholders, the newswire reported.

Shopping Means
Debt—Are You In Trouble?



A growing number of people are
piling up credit card debt faster than they can make payments, the
Chicago Tribune reported. Four out of 10 American cardholders are
not keeping up with their credit cards, according to a recent survey by
the Cambridge Consumer Credit Index. Forty-two percent were either
making minimum-or no-payments on their credit card balances, the survey
found. Experts blame the high cost of living, a desire to keep up with
peers and the widespread availability of credit cards for their overuse.
Read the full 
href='http://www.chicagotribune.com/business/yourmoney/chi-040414debt,1,50280…'>article.

Continental, Copa Airlines Enter
Bidding for Avianca

Continental
Airlines and partner Copa Airlines of Panama are
bidding to buy Colombia's bankrupt Avianca airline, Continental CEO
Gordon Bethune said on Thursday, the Associated Press reported. Bethune
said the bid originated with Copa, but that Houston-based Continental,
which owns 49 percent of Copa, supports the decision. Continental has
been increasing its presence in Latin America. Avianca filed for chapter
11 bankruptcy protection in March 2003 in New York.

Comdisco Declares Dividend Of
$11.50 A Share

Comdisco Holding Co Inc. today
declared a cash dividend of $11.50 per share as one in a series of
liquidating distributions, Reuters reported. Comdisco, which has 4.2
million shares outstanding, said the dividend is payable on May 6 to
stockholders of record on April 26.
size='3'>The company said distributions to the initially allowed general
unsecured creditors in the bankruptcy estate of Comdisco Inc. is $3.50
billion, and the percentage recovery to such creditors is 96
percent.



United Airlines Sees Higher Fuel Costs In 2004

United Airlines on Thursday said its 2004 fuel costs
would be $450 million higher than previously forecast and it was nearing
a deal to restructure more than a third of its 175 jet leases and
mortgages, Reuters reported. In a status report to the federal
bankruptcy court in Chicago, United parent UAL Corp. cited its inability
to hedge against rising fuel prices for the much higher cost estimate.
The biggest carriers also are facing new and tougher competition from
low-cost rivals, making their financial recoveries much harder. United
also told the court it is finalizing an agreement to restructure more
than a third of its financed fleet, the newswire reported.

RCN Defers Interest Payment,
Continues Talks

RCN Corp. said on Thursday it deferred interest
payments due today for 10 percent and 11.125 percent senior notes, as it
continues financial restructuring negotiations with its lenders, Reuters
reported. The telephone service provider, which has said it expects any
restructuring to be implemented through a chapter 11 bankruptcy
protection filing, said it has 30 days to make a decision about paying
the interest before a default arises. RCN said the default would entitle
but not require holders of the notes to declare the debt due and
payable. The company said it is hopeful its negotiations will lead to a
successful financial restructuring plan in the near term, the newswire
reported.

Globalstar Completes Financial
Restructuring

Satellite telephone operator
Globalstar said on Thursday it had completed its financial restructuring
following an acquisition by Thermo Capital Partners LLC ending two years
of bankruptcy protection, Reuters reported. The deal, which was the
first of several Globalstar investment proposals to come to fruition,
has Thermo paying $43 million for 81.25 percent ownership of Globalstar.
Globalstar's remaining equity will be distributed to creditors such as
Loral Space & Communications Ltd. and Qualcomm Inc., which together
founded Globalstar in 1994.

Restraining Order
Dissolved In Healthsouth Case

HealthSouth Corp. said on Thursday a judge in Alabama
dissolved a temporary restraining order that prevented bondholders from
forcing the acceleration of payments due to a default, Reuters reported.
Judge Allwin Horn ruled that the court did not want to remove the rights
of the creditors to demand an accelerated payment on the bonds and urged
continued negotiations between creditors and HealthSouth, which has not
been able to file financial statements due to accounting fraud.
HealthSouth is offering a 1 percent payment to creditors for a waiver
that would cure the default on more than $3 billion of its debt, the
newswire reported.