From: lisa.mellencamp@enron.com
To: mark.haedicke@enron.com, mark.taylor@enron.com, elizabeth.sager@enron.com, jeffrey.hodge@enron.com
Date: 2000-09-25 11:40:00+00:00
Subject: Fulbright Daily Bankruptcy News

se item re bankruptcy bill.

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 09/25/2000 11:38 AM -----

	"David Rosenzweig" <drosenzweig@fulbright.com>
	09/25/2000 11:36 AM
		 
		 To: undisclosed-recipients:;
		 cc: 
		 Subject: Fulbright Daily Bankruptcy News


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

From:  Wm. J. Rochelle, III    Monday, September 25,  2000
   Fulbright - New York

Filings:

 AHT Corp. (Nasdaq:AHTC) filed chapter 11 on Friday in White Plains, New 
York, along with a deal to sell its health care "E" commerce business for $15 
million in cash and stock to a competitor named BioShield Technologies Inc. 
(Nasdaq:BSTI).  AHT listed assets of $2.5 million versus liabilities of $8.4 
million.  The deal is slated to pay creditors in full while giving 
stockholders ten cents in cash per share plus stock in BioShield.

 The banks called their loan on Signal Apparel Company, Inc. (OTCBB:SIAY), 
which responded by filing chapter 11 on Friday somewhere other than Delaware 
(New York to be precise).  Signal designs and markets activewear, swimwear 
and bodywear and  says it is negotiating DIP financing with the banks.

Bankruptcy reform update:

 It now looks like bankruptcy reform legislation is dead for this term.  On 
Friday the President said he would veto a new Republican bill that would have 
omitted some of the more controversial items.  Despite the change, the 
President's spokesman said that "too many of the bill's provisions . . . will 
place unnecessary barriers before those who genuinely need bankruptcy 
protection when faced with the most difficult situations life has to offer."

Bankruptcy alternative:

 Maybe eBay will become an alternative to filing chapter 11 in Delaware.  
Example: eSeated.com consumed $5 million in initial funding developing a 
system for making restaurant reservations online.  Unable to complete another 
financing, the company is selling its assets on eBay.  Commenting on the 
sale, the company's founder said, "This is the ultimate act of desperation in 
a very non-liquid market."

Filing possible:

 The SEC has won the appointment of a receiver for Capital Consultants LLC, 
which manages $1 billion in union pension funds.  Capital was allegedly being 
run as a Ponzi scheme.

Downgrade:

 In February S&P took investment grade status away from National Health 
Investors Inc., a Nashville REIT that invests in assisted living and long 
term health care facilities.  S&P downgraded again on Friday, this time 
lowering the corporate rating and senior notes by two clicks each to B+.  A 
$102 million unsecured revolver matures next month, and giving collateral to 
the banks may result in another downgrade.  See F&J Daily Bankr. News of Feb. 
24 and May 30.

Updates:

 Pro Air Inc., a "low cost" airline based in Detroit, filed chapter 11 last 
week after the FAA grounded its three aircraft for alleged safety 
violations.  The airline now admits it could not begin flight operations 
again for at least three months.  See F&J Daily Bankr. News of  May 10 and 
Sept. 20.

 Safety-Kleen could not convince the court of appeals to allow the company to 
continue operating a landfill in South Carolina while suing in federal court 
to set aside a state court order directing that the landfill be closed.  The 
company contended that the shut down order was in retaliation for filing 
chapter 11 in June.  See F&J Daily Bankr. News of  Feb. 8 & 17, March 8, 13, 
14, 15, 17 & 28,  April 19 & 28, May 1 & 17, June 6, 12, 15, 20 & 21, July 7, 
10, 11, 12 & 17 and Sept. 13.

 In late December the appeals court held that the FCC has exclusive 
jurisdiction to regulate the wireless licenses owned by NextWave Telecom 
Inc.  Relying on the decision, the FCC canceled NextWave's licenses, and 
NextWave immediately turned to the bankruptcy court for help.  The bankruptcy 
court quickly ruled that the FCC's action was "self-help repossession by 
ambush" and set aside the agency's license terminations.  In May, the FCC won 
its appeal in the Second Circuit Court of Appeals, which upheld the FCC's 
cancellation of the licenses.  NextWave has now filed an appeal to the 
Supreme Court.  Unless NextWave wins in the Supreme Court, the company has 
virtually nothing left to reorganize.  The press has been saying that a 
resale of the licenses could bring the government as much as $10 billion (no 
typo) at the next frequency auction now scheduled for December 12.  See F&J 
Daily Bankr. News of June 9, 10 & 16, Oct. 22 of 98 and Aug. 2, 12 & 17, 
Sept. 1, 21 & 22, Oct. 21, Nov. 29 and Dec. 17, 22 & 27 of 99 and Jan 13, 
14, 19 & 27, Feb. 1 & 11 and May 26 of 00.

Sold:

 Aureal Inc. filed chapter 11 this spring in Oakland, Calif., and the 
bankruptcy court approved the sale of the company's assets for $32 million to 
Creative Technology Ltd.  Aureal developed and marketed audio semiconductor 
technologies for the PC and consumer electronics markets.  See F&J Daily 
Bankr. News of April 6.

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 - BKNEWS.wpd