November 212000

The Washington, D.C.-based Asbestos Workers Union represents 30,000
members in the United States and Canada who insulate steel mills,
refineries, hotels, factories, schools, and other structures. Union
members also remove cancer-causing asbestos pipe covering.  This
fall, Toledo-based Owens Corning Fiberglas and Fibreboard Corps., which
manufactured asbestos products, filed for protection in the U.S.
Bankruptcy Court in Philadelphia.

Judge Centralizes All Suits Against Bankrupt Mortgage
Lender

A bankruptcy judge ruled last week that all lawsuits against bankrupt
mortgage lender First Alliance Corp., including a suit brought by the
Federal Trade Commission (FTC), would be centralized at the U.S.
Bankruptcy Court in Santa Ana, Calif., according to a newswire
report.  The ruling by Orange County Bankruptcy Judge Lynne
Riddle last Monday was a victory for First Alliance, which filed
chapter 11 in March amid a wave of borrower lawsuits and state
investigations into allegations of price-gouging and predatory
lending.

The FTC lawsuit alleged that the Irvine, Calif.-based company
deceived thousands of borrowers and violated several statutes, including
the Truth in Lending Act.  First Alliance is analyzing 2,600 to
2,700 claims brought against it by individuals and vendors.  The
company said that bankruptcy proceedings could take another year to
resolve.

Big American Steel Layoffs Sour Thanksgiving Holiday

Holiday plans have abruptly changed in Weirton, W.Va., where 3,200
people were temporarily laid off from Weirton Steel Corp. yesterday,
according to a Reuters report.  The eighth largest U.S. steel maker
said last week that it will shut down its only operating blast furnace
for 10 days to reduce an inventory buildup caused by increased steel
imports at a time of rising costs and flat domestic demand.

“These layoffs are probably the first time Weirton Steel has
done something to this degree over the holidays,” said Brian
Linkesh, president of the Weirton Area Chamber of Commerce in the West
Virginia town. “We're looking at this as more of a short term
situation, but undoubtedly our community is going to be faced with tough
times ahead.”

Bethlehem Steel Corp. last week said it was closing a mill, and
Wheeling-Pittsburgh, a subsidiary of steel maker WHX Corp., filed for
bankruptcy. In the past month, steel makers USX-U.S. Steel Group and LTV
Corp. also announced curtailments of operations.

Bigger Slowdown Expected Next Year

While interest rates and energy costs have risen, the stock market has
simmered down, according to a newswire report.  Car sales and sales
of other big-ticket items are tapering off, according to Gary Thayer,
chief economist at A.G. Edwards & Sons.  “This year as
consumer spending has cooled, the manufacturing side of the economy is
following suit,” he said.

But next year the slowdown will begin in earnest, when the knock-on
effect from the Federal Reserve's recent string of interest rate hikes,
already pinching corporate earnings, will be felt more widely, analysts
said.  America's economy has steadily lost steam as gross domestic
product, the broadest gauge of the nation's economic output, in the last
quarter slowed dramatically to an annualized growth rate of 2.7 percent
from 5.6 percent.

Looking ahead to 2001, 20 economists said the economy would expand at
an annual rate of 3.4 percent after growing at an expected 4.6 percent
rate this year.  “We think the economy will stay soft into
early next year, when the Fed will probably start cutting interest
rates. We'll see better markets for durables in the second half; but the
dollar could continue to strengthen, so it could be a tough environment
for autos for the next year or so,” Thayer said.

Service Merchandise Announces New Format

Service Merchandise Inc. yesterday announced that it is launching a new
format in its 220 stores nationwide, according to a newswire
report.  The company further stated that about 70 of its stores
have been remodeled with wider aisles and brighter lighting.  The
company also commented on its e-commerce business, asserting that the
company continues to enhance customers' online shopping experience by
offering easy navigation and advanced search functions.  In
addition, the “store, web, phone” shopping experience is
interchangeable; returns, if necessary, can be made directly to the most
convenient store. Service Merchandise, which has been operating under
chapter 11 protection since March 27, 1999, further stated that the
company's transformation from “a catalog showroom to a
multi-channel specialty retailer” is the business strategy the
company hopes will allow it to emerge from chapter 11 protection

Drypers Delays Release of Financial Results

Drypers Corp. Friday filed notice with the Securities and Exchange
Commission asserting that the company's third quarter financial results
would be delayed, according to a newswire report.  The notice also
stated that the company's results of operations for the third quarter
show a decrease in net sales of $18.7 million. The company filed for
chapter 11 protection on Oct. 10.