January 42000

January 4, 2000

Federal Reserve May Hike Interest Rates in February

When the Federal Reserve's policy group meets Feb.1-2, it is
likely to raise interest rates a quarter-point, The Wall Street
Journal reported. The Fed did its part to help world markets and
the economy adjust to the change to 2000 and avoided an interest rate
increase last month and injecting billions of dollars in extra cash into
the banking sector at year end. But with the Y2K potential crisis
seemingly no longer an issue, the question is how aggressively the Fed
will increase rates to absorb extra liquidity. A spokesman for the
Federal Reserve Bank of New York said, 'The goal is clearly not to
disrupt the marketplace.' Several crucial reports will be released this
month, including the December employment rate, due out Friday. Slowdowns
in those indicators would help avert a rate increase in February, but
there is little evidence of any slowing in the economy's growth. In
fact, a survey of purchasing managers in manufacturing released
yesterday indicated strong demand in December.

First Entertainment Reaches Settlement with Balzac Corp.

First Entertainment Holdings Corp. announced yesterday that it
has reached a settlement with Balzac Corp. worth about $985,000,
according to a newswire report. Balzac, a worldwide manufacturer and
distributor of toys, filed for chapter 11 protection in June 1998 with
liabilities of more than $2.5 million. In a plan filed with the
bankruptcy court in New York last month, the company proposed to pay
creditors virtually 100 cents on the dollar. Funds will be released upon
the court's approval of the plan, and First Entertainment Holdings is
expected to receive its funds. It was owed $985,000 plus interest, and
it will receive about half of the funds now and the balance during the
next 24 months.

Incomnet Announces Assignment of DIP Financing and Extension
to File Plan

Incomnet Inc. and its subsidiary, Incomnet Communications Corp.
(ICC), announced that the Bankruptcy Court for the Central District of
California, Santa Ana Division, has approved assignment of ICC's
debtor-in-possession financing from Foothill Capital Corp. to Ironwood
Telecom LLP, Incomnet Inc.'s largest secured creditor, according to a
newswire report. ICC will be obligated under the same financing terms
with Ironwood as it was with Foothill but the assumption by Ironwood
allows ICC more time to execute its reorganization effort. The companies
also announced the court's approval of an extension to Jan. 31 for
filing each plan of reorganization.

Court Approves Sale of Pacific Baja Light Metals' Assets

Turbodyne Technologies Inc., announced today that on Dec. 14
the bankruptcy court entered an order approving the sale of
substantially all of the assets of Pacific Baja Light Metals Corp.
(PBLM), a debtor in a pending chapter 11 case, according to a newswire
report. The order authorized Hawthorne Partners II LLC to acquire the
assets and take control of PBLM's operations as of Dec. 13, 1999. The
financial details are still being worked out. Turbodyne Technologies is
a California-based high-technology company that specializes in
developing, manufacturing and marketing proprietary pollution control,
fuel economy and performance enhancement products.

Lafayette Savings Bank Recoups Investment in Bennett Funding
Leases

LSB Financial Corp., Lafayette Ind., announced that its wholly
owned subsidiary, Lafayette Savings Bank (LSB) has received $1.4 million
from Bennett Funding Corp. of Syracuse, N.Y., pursuant to a settlement
agreement with the trustee in Bennett's bankruptcy case, according to a
newswire report. LSB said the recovery closes a long battle against
Bennett that began in 1995 when equipment leases sold to 200 financial
institutions were called into question after Bennett filed for chapter
11 protection amid allegations of a huge Ponzi scheme. LSB said that its
'initial reserve against potential losses in this matter proved to be
both accurate and adequate, and with the receipt of these funds we are
able to put the matter behind us and focus on consistently providing a
good return to shareholders.'

Invitation for Public Comments re: U.S. Bankruptcy Judges in the
Ninth Circuit

The current terms of four U.S. Bankruptcy Judges for districts in the
Ninth Circuit will expire in the year 2000. The names and respective
districts and term expiration dates are shown below. The U. S. Court of
Appeals for the Ninth Circuit is considering the reappointment of these
judges to new terms of office of 14 years each, and has determined that
they appear to merit reappointment subject to consideration of comments
received from the bar and public. Upon reappointment, the judges would
continue to exercise the jurisdiction of bankruptcy judges as specified
by statute. Such duties include conducting hearings and trials, making
final determinations, and entering orders and judgements. Members of the
bar and public are invited to submit comments concerning one or more of
the judges for consideration by the Court of Appeals in determining
whether or not to reappoint them. Anonymous responses will not be
accepted. However, respondents who do not wish to have their identities
disclosed should so indicate in the response, and such requests will be
honored.

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.

Sabratek Wins Interim Court Approval Of DIP Loans

On Dec. 22, Sabratek Corp. (SBTKE) won interim court approval to utilize
as much as $7.1 million in post-petition funds provided by two potential
purchasers of the company's and its bankrupt affiliate's assets. In the
first of three orders, U.S. Bankruptcy Judge Mary F. Walrath approved
the company's request to borrow up to $3.5 million under a $6 million
post-petition financing agreement with Baxter Healthcare Corp. (BAX)

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January 4, 2000..