see bankruptcy bill update.

Lisa J. Mellencamp
Enron North America Corp.
1400 Smith St.
Houston, TX  77002
Tel:  (713) 853-7986
Fax: (713) 646-3393
E-mail:  Lisa.Mellencamp@enron.com
----- Forwarded by Lisa Mellencamp/HOU/ECT on 11/01/2000 11:00 AM -----

	"William Rochelle" <wrochelle@fulbright.com>
	11/01/2000 10:28 AM
		 
		 To: undisclosed-recipients:;
		 cc: 
		 Subject: Fulbright Daily Bankruptcy News


FULBRIGHT & JAWORSKI L.L.P.
DAILY BANKRUPTCY NEWS

From: Wm. J. Rochelle, III
           Fulbright - New York

Wednesday, November 1, 2000

Filings:

 American Aircarriers Support, Incorporated (Nasdaq: AIRS), a South Carolina 
aircraft maintenance and overhaul provider, filed chapter 11 yesterday in the 
usual venue (Delaware) together with four subs and says it is in *negations* 
[sic] on DIP financing and already has a deal to sell its landing gear 
division.  AASI listed assets of $131.4 million versus debts totaling $102.5 
million.

 A good example of the crisis which suddenly overtook the telecom equipment 
sector is Universal Broadband Networks Inc. (Nasdaq:UBNT), whose stock traded 
above $20 in March but filed chapter 11 yesterday in Santa Ana, Calif. along 
with four subs.  The company blamed its filing on vendors who would no longer 
extend financing.  The company provides microwave and dial up internet access.

 Although Medical Arts Laboratory performs nearly half of the lab work in 
Oklahoma, the company and its parent, Southern Medical Arts Cos., filed 
chapter 11 with debts around $20 million.  The company or affiliates also 
serve Alabama, Mississippi and Louisiana.

Involuntary:

 Ohio insurance regulators barred Credit General Insurance Co. from writing 
new policies, and a bank filed an involuntary petition yesterday in the usual 
venue (Delaware) against Credit Generals parent, PRS Insurance Group Inc.  
PRSs companies write multiperil, automobile, surety, and workers' comp 
policies.

Default:

 Spray bottle manufacturer Indesco International, Inc. missed an interest 
payment due in October on $145 million in sub debt.  The default is not 
surprising given the Caa1 and CCC+ ratings from Moodys and S&P on the sub 
debt.  In plain English, ratings in the Caa or CCC range mean that a company 
is not generating sufficient cash flow to pay interest and that debt holders 
are likely to incur a loss in chapter 11.  See F&J Daily Bankr. News of July 
26 of 99 and May 24 of 00.

Troubles:

 The stock of Rent-Way Inc. (NYSE: RWY) crashed 78% after the company 
announced it had found *accounting irregularities* on the expense side of the 
P&L ledger.  Rent-Ways 6000 employees make up the countrys second largest 
*rent to own* retailer, which means that the company rents household goods to 
people who cannot afford outright purchases.  We make no predictions but 
merely note that in the last year revelations about *accounting 
irregularities* have preceded chapter 11 filings by Safety-Kleen Corp., 
Styling Technology Corp. and PSI Industries Inc.  Looking further back, 
accounting problems contributed to bankruptcy filings by Leslie Fay, Mercury 
Finance Corp., Sirena Apparel Group, Inc., and First Merchants Acceptance 
Corp.

Bankr. reform update:

 The Senate is now on track to vote on the bankruptcy reform bill this 
Friday.  Curiously, this years gridlock in Congress is keeping alive some 
hope in lenders hearts that the bill could become law despite a Presidential 
veto.  Ordinarily in an election year, the session would have ended a month 
ago so our elected representatives could return home to campaign.  This year, 
the budget is one month late already, and Congress remains hard at work.  In 
an ordinary year, Senate passage of the bill (the House has already passed 
the legislation) would allow the President to carry out his threatened veto, 
thus affording Congress no opportunity to override since Congress would not 
meet again.  In this exceptional year, Congress may return after the 
election, thus presenting at least the possibility of overriding a veto.  
Nevertheless, a bank lobbyist sounded pessimistic about a successful override 
vote in a lame duck Congress.

Steel again?:

 The domestic steel industry was one of the most troubled sectors of the U.S. 
economy in the wake of the 1997 Asian financial crisis, as imports flooded 
the market.  For the past year, we have been writing little about the steel 
industry, but that perhaps is about to change as imports this year are on 
track to surpass the 1998 record.  Also, the price for hot rolled coil, for 
example, has fallen 25% (no typo) in the last few months.

Downgrade:

 The continuing slump in gold prices has forced Kinross Gold Corp. and its 
sub Kinross Gold Inc. to tap out their bank revolver, with the result that 
S&P has knocked the companies corporate and sub ratings to BB- and B.  The 
company is also unhedged next year.  Kinross is the fifth largest gold 
producer in North America.


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 - bknews.wpd