SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   -------

                                      FORM 10-Q





[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the quarterly period ended       March 31, 2001
                                        ---------------------


[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from                 to
                                    ---------------    ---------------


                         Commission file number   0-5485
                                                  -------


                              VISKASE COMPANIES, INC.
                              ----------------------
               (Exact name of registrant as specified in its charter)


           Delaware                                            95-2677354
-------------------------------                            -------------------
(State or other jurisdiction of                            I.R.S. Employer
Incorporation or organization)                            Identification No.)

6855 W. 65th Street, Chicago, Illinois                                  60638
-----------------------------------------                            --------
(Address of principal executive offices)                           (Zip Code)

         Registrant's telephone number, including area code:  (708) 496-4200



    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes   X       No
                                                    -----        -----



    As of May 15, 2001, there were 15,308,530 shares outstanding of the
registrant's Common Stock, $.01 par value.





                             INDEX TO FINANCIAL STATEMENTS



                           VISKASE COMPANIES, INC. AND SUBSIDIARIES

                      UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S>                                                                                    <C>
                                                                                           Page
                                                                                           -----

Consolidated balance sheets at March 31, 2001 (unaudited) and December 31, 2000              4

Unaudited consolidated statements of operations for the three months ended
March 31, 2001 and March 31, 2000                                                            5

Unaudited consolidated statements of cash flows for the three months
ended March 31, 2001 and March 31, 2000                                                      6

Notes to consolidated financial statements                                                   7

</TABLE>




                            PART I.  FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS
         --------------------


The financial information included in this quarterly report has been
prepared in conformity with the accounting principles and practices
reflected in the financial statements included in the annual report on Form
10-K filed with the Securities and Exchange Commission for the year ended
December 31, 2000 (2000 Form 10-K). These quarterly financial statements
should be read in conjunction with the financial statements and the notes
thereto included in the 2000 Form 10-K. The accompanying financial
information, which is unaudited, reflects all adjustments which are, in the
opinion of management, necessary for a fair statement of the results for the
interim periods presented.

The condensed consolidated balance sheet as of December 31, 2000 was derived
from the audited consolidated financial statements in the Company's annual
report on Form 10-K.

Reported interim results of operations are based in part on estimates, which
may be subject to year-end adjustments.  In addition, these quarterly
results of operations are not necessarily indicative of those expected for
the year.


                                    VISKASE COMPANIES, INC. AND SUBSIDIARIES
                                         CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                            March 31,    December 31,
                                                             2001            2000
                                                            ---------    -----------
                                                                  (unaudited)
                                                                 (in thousands)
<S>                                                   <C>              <C>
ASSETS
Current assets:
  Cash and equivalents                                   $ 20,728          $ 55,350
  Restricted cash                                          43,263            41,038
  Receivables, net                                         27,103            27,334
  Inventories                                              39,106            39,405
  Other current assets                                     20,238            23,168
                                                         --------          --------
    Total current assets                                  150,438           186,295

Property, plant and equipment, including
  those under capital leases                              238,994           240,110
  Less accumulated depreciation and
   amortization                                           115,295           110,845
                                                         --------          --------
  Property, plant and equipment, net                      123,699           129,265

Deferred financing costs, net                                 145               184
Other assets                                                6,908             6,620
                                                         --------          --------
    Total assets                                         $281,190          $322,364
                                                         ========          ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Short-term debt including current portion
   of long-term debt and obligations
   under capital leases                                  $180,880          $200,676
  Accounts payable                                         14,684            15,887
  Accrued liabilities                                      64,973            73,309
  Current deferred income taxes                             3,381             3,381
                                                         --------          --------
    Total current liabilities                             263,918           293,253

Long-term debt including obligations
  under capital leases                                     64,391            73,183

Accrued employee benefits                                  42,051            40,773
Deferred and noncurrent income taxes                       20,236            22,552

Commitments and contingencies

Stockholders' equity:
  Preferred stock, $.01 par value;
   none outstanding
  Common stock, $.01 par value;
   15,296,666 shares issued and
   outstanding at March 31, 2001 and
   15,276,764 shares at December 31, 2000                     153               153
  Paid in capital                                         137,987           137,967
  Accumulated (deficit)                                  (248,088)         (247,048)
  Cumulative foreign currency
   translation adjustments                                    818             1,840
  Unearned restricted stock issued
   for future service                                        (276)             (309)
                                                         --------          --------
   Total stockholders' (deficit)                         (109,406)         (107,397)
                                                         --------          --------
   Total liabilities and stockholders' equity            $281,190          $322,364
                                                         ========          ========

<FN>

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>

<PAGE>
                        VISKASE COMPANIES, INC. AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (unaudited)
<TABLE>
<CAPTION>
                                                Three Months Ended   Three Months Ended
                                                ------------------   ------------------
                                                  March 31, 2001       March 31, 2000
                                                -----------------    ------------------
                                  (in thousands, except for number of shares and per share amounts)
<S>                                               <C>                  <C>
NET SALES                                              $48,040              $51,770

COSTS AND EXPENSES
  Cost of sales                                          9,282               38,705
  Selling, general and administrative                   10,921               11,186
  Amortization of intangibles                              500                  500
                                                       -------              -------

OPERATING INCOME (LOSS)                                 (2,663)               1,379

  Interest income                                          904                   53
  Interest expense                                       6,500               12,159
  Other expense, net                                     1,085                  113
                                                       -------              -------

(LOSS) FROM CONTINUING OPERATIONS
  BEFORE INCOME TAXES                                   (9,344)             (10,840)

  Income tax (benefit)                                  (3,374)                (713)
                                                       -------              -------

NET (LOSS) FROM CONTINUING OPERATIONS                   (5,970)             (10,127)

DISCONTINUED OPERATIONS:
  Income from operations
   net of income taxes (Note 6)                                               1,231
                                                       -------              -------

NET (LOSS) BEFORE EXTRAODINARY ITEM                     (5,970)              (8,896)
  Extraordinary gain on early extinguishment
   of debt, net of income tax provision of $3,152        4,930
                                                       -------              -------

NET (LOSS)                                              (1,040)              (8,896)

Other comprehensive (loss), net of tax:
  Foreign currency translation adjustments                (623)              (1,305)
                                                       -------              -------

COMPREHENSIVE (LOSS)                                   $(1,663)            $(10,201)
                                                       =======             ========

WEIGHTED AVERAGE COMMON SHARES
  - BASIC AND DILUTED                               15,298,498           15,085,642
                                                    ==========           ==========

PER SHARE AMOUNTS:

EARNINGS (LOSS) PER SHARE
  - basic and diluted
   Continuing operations                                $(.39)               $(.67)

   Discontinued operations:
    Income from operations                                                     .08
                                                      -------              -------

   Net (loss) before extraordinary item                  (.39)                (.59)
    Extraordinary gain                                    .32
                                                      -------              -------

NET (LOSS)                                              $(.07)               $(.59)
                                                      =======              =======
<FN>


The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>

<PAGE>

                                    VISKASE COMPANIES, INC. AND SUBSIDIARIES
                                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   (unaudited)
<TABLE>
<CAPTION>
                                                             Three Months Ended
                                                          -------------------------
                                                          March 31,       March 31,
                                                            2001            2000
                                                          ---------       ---------
                                                               (in thousands)
<S>                                                       <C>          <C>
Cash flows from operating activities:
  Net (loss)                                                 $ (1,040)    $ (8,896)
  Adjustments to reconcile net (loss) to net cash
   provided by (used in) operating activities:
    Depreciation and amortization under capital lease           5,453       10,140
    Amortization of intangibles    500    1,250
    Amortization of deferred financing fees and discount           29        1,564
    (Decrease) in deferred and
       noncurrent income taxes                                   (301)      (1,011)
    Foreign currency transaction loss                             485          307
    Loss on disposition of assets                                  19
    Bad debt provision                                            312          179
    Extraordinary (gain) on debt extinguishment                (8,082)

    Changes in operating assets and liabilities:
      Receivables                                                (549)       2,456
      Inventories                                                (258)      (3,692)
      Other current assets                                      2,803          482
      Accounts payable and accrued liabilities                 (8,582)       2,091
      Other                                                    (1,224)        (338)
                                                             --------      -------
    Total adjustments                                          (9,395)      13,428
                                                             --------      -------

      Net cash (used in) provided by
       operating activities                                   (10,435)       4,532

Cash flows from investing activities:
  Capital expenditures                                         (1,069)      (3,242)
  Proceeds from disposition of assets                             100
                                                              -------      -------
      Net cash (used in) investing activities                    (969)      (3,242)

Cash flows from financing activities:
  Issuance of common stock                                         53           69
  Deferred financing costs                                        (13)        (317)
  Discount on early extinguishment of debt                      8,082
  Repayment of revolving loan, long-term borrowings
   and capital lease obligation                               (28,570)      (1,064)
                                                              -------      -------
      Net cash (used in) provided by
       financing activities                                   (20,448)       1,312

Effect of currency exchange rate changes on cash                 (545)           3
                                                              -------      -------
Net (decrease) in cash and equivalents                         32,397)         (19)
Cash and equivalents at beginning of period                    96,388        6,243
                                                              -------      -------
  Cash and equivalents                                        $20,728      $ 6,224
  Restricted cash                                              43,263
                                                              -------      -------
  Cash and equivalents at end of period                       $63,991      $ 6,224
                                                              =======      =======

Supplemental cash flow information:
  Interest paid                                               $    42      $ 4,940
  Income taxes paid                                           $ 2,560      $   452

<FN>
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>



                            VISKASE COMPANIES, INC. AND SUBSIDIARIES
                           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. CASH AND CASH EQUIVALENTS (dollars in thousands)


                                          March             December
                                        31, 2001            31, 2000
                                        --------            --------

Cash and cash equivalents                $20,728            $55,350
Restricted cash                           43,263             41,038
                                         -------            -------

                                         $63,991            $96,388
                                         =======            =======

As of March 31, 2001, cash and cash equivalents of $19,370 and restricted cash
of $32,576 are invested in short term investments.

Pursuant to the Films Business sale Purchase Agreement, two escrow accounts
were established.  These escrow accounts are classified as restricted cash.
The $1,031 escrow account is restricted pending the final approval of the
purchase price adjustment pursuant to the Purchase Agreement and the $31,545
escrow account is restricted pending government approval of funds transfer
from the Brazilian portion of the Films Business sale. The remaining  $10,687
of restricted cash is collateral for outstanding letters of credit under the
Senior Revolving Credit Facility.

2. INVENTORIES (dollars in thousands)

Inventories consisted of:                 March             December
                                         31, 2001           31, 2000
                                        --------            ---------

Raw materials                             $ 3,411            $ 2,867
Work in process                            17,924             17,827
Finished products                          17,771             18,711
                                          -------            -------
                                          $39,106            $39,405
                                          =======            =======

Approximately 57% of the inventories at March 31, 2001 were valued at
Last-In, First-Out (LIFO). These LIFO values exceeded current manufacturing
cost by approximately $4,170 at March 31, 2001.



3. DEBT OBLIGATIONS (dollars in thousands)

Outstanding short-term and long-term debt consisted of:

                                                        March       December
                                                        31, 2001     31, 2000
                                                        --------     --------
Short-term debt, current maturity of long-term
    debt, and capital lease obligation:

  Current maturity of Viskase Capital Lease Obligation  $ 17,499    $  8,750
  10.25% Senior Notes due 2001                           163,187     191,703
  Other                                                      194         223
                                                        --------    --------

   Total short-term debt                                $180,880    $200,676
                                                        ========    ========

Long-term debt:

  Viskase Capital Lease Obligation                      $ 64,106    $ 72,854
  Other                                                      285         329
                                                        --------    --------

   Total long-term debt                                 $ 64,391    $ 73,183
                                                        ========    ========


Senior Secured Credit Facility/Junior Term Loans
------------------------------------------------

In June 1999, Viskase Corporation and Viskase Sales Corporation entered into
a two-year secured credit agreement consisting of a $50 million senior term
facility (Senior Term Facility), a $50 million senior revolving credit
facility,including a $26 million sublimit for issuance of letters of credit
(Senior Revolving Credit Facility), collectively the "Senior Secured Credit
Facility", and $35 million of junior secured term loans (Junior Term Loans).
The Senior Term Facility and Junior Term Loans were paid in full in August
2000 using proceeds from the sale of Films Business.  The Senior Secured
Credit Facility has a maturity date of June 30, 2001.

The Company's Senior Secured Credit Facility contained a number of financial
covenants that, among other things, require the maintenance of a minimum
level of tangible net worth, a minimum fixed charge coverage ratio and a
minimum leverage ratio of total liabilities to EBITDA and a limitation on
capital expenditures. On April 5, 2001, the Company received an amendment and
waiver under the Company's Senior Secured Credit Facility which eliminated
the financial covenants through the June 30, 2001 maturity date and
eliminated the lender's obligation to extend additional borrowings. There are
no borrowings outstanding under the Senior Revolving Credit Facility at March
31, 2001. Letters of credit in the amount of $25.3 million are outstanding
under the Senior Revolving Credit Facility, and are cash collateralized.

The Company finances its working capital needs through a combination of
internally generated cash from operations and cash on hand.

The Company anticipates it will enter into a new revolving credit facility to
meet its working capital and letter of credit requirements.


GECC
----

Under the terms of an April 13, 2000 Agreement and Amendment with GECC, the
Company agreed to amend the amortization schedule of annual lease payments,
maintain a letter of credit in the amount of $23.5 million at all times,
limit additional borrowings and provide a subordinated security interest
collateralized by the Collateral Pool. Holders of the Senior Secured Credit
Facility and the Junior Term Loans consented to the payment extensions and
the subordinated security interest granted to GECC. The revised amortization
schedule is presented below:

        November 1, 2001     $11,750
        February 28, 2002     11,749
        February 28, 2003     23,499
        February 28, 2004     23,499
        February 28, 2005     23,499

As of March 31, 2001, the Company received an amendment and waiver under the
GECC Lease Agreement that waived non-compliance with the Fixed Charge
Coverage Ratio for the quarter ended March 31, 2001.  The Company determined
that, as of March 31, 2001, without the amendment and waiver it would not
have been in compliance with the Fixed Charge Coverage Ratio.  The Company
will need to obtain additional debt covenant waivers in future quarters due
to the effect of the Films Business sale.

10.25% Notes
------------

The Company's 10.25% Notes mature on December 1, 2001.  The Company has from
time to time purchased 10.25% Notes in open market or privately negotiated
transactions, with the effect that as of March 31, 2001 there was $163.2
million principal amount of 10.25% Notes outstanding, net of repurchased
notes.  The Company recognized a $8.1 million gain on the repurchase of the
10.25% Notes during the quarter ended March 31, 2001.  As of May 15, 2001,
there remains $163.2 million principal amount of 10.25% Notes outstanding,
net of repurchased notes.  The Company does not presently anticipate, without
a refinancing transaction, that its current cash position and operating cash
flows will be sufficient to pay the principal and accrued interest on the
10.25% Notes when they mature.  In addition, the Company's payment
obligations on the GECC lease remain substantial and the Senior Secured
Credit Facility expires in June 2001.  Accordingly, the Company is evaluating
the strategic alternatives available to it with respect to its capital
structure in general and the treatment of the 10.25% Notes between the date
hereof and the date of their maturity.  These alternatives could include
public offerings or private placements of debt and/or equity securities, an
exchange offer for the 10.25% Notes or other restructuring of the Company's
indebtedness, the Company's entering into a new senior credit facility or the
sale of the Company or its assets.  There can be no assurance that any such
transaction will be concluded or that any such additional financing will be
available to the Company or that any such transaction or financing can be
done on terms favorable to the Company's stockholders or creditors. Failure
by the Company to refinance or restructure its obligations with respect to
the 10.25% Notes would have a material adverse effect on the Company's
results of operations and financial condition.


4. CONTINGENCIES

In late 1993, Viskase commenced a legal action against American National Can
Company (ANC) in Federal District Court for the Northern District of
Illinois, Eastern Division, 93C7651 (the "ANC Litigation"). Viskase claimed
that ANC's use of two different very low density polyethylene plastic resins
in the manufacture of ANC's multi-layer barrier shrink film products was
infringing various Viskase patents relating to multi-layer barrier plastic
films used for fresh red meat, processed meat and poultry product
applications. In November 1996, after a three-week trial, a jury found that
ANC had willfully infringed Viskase's patents and awarded Viskase $102.4
million in compensatory damages. The Court also entered an order permanently
enjoining ANC from making or selling infringing products.

In September 1997, the Court set aside the jury verdict in part and ordered a
retrial on certain issues. The Court upheld the jury finding on the validity
of all of Viskase's patents and the jury finding that ANC had willfully
infringed Viskase's patents by ANC's use of Dow Chemical Company's "Attane"
brand polyethylene plastic resin in ANC's products. However, the Court
ordered a new trial on the issue of whether ANC's use of Dow Chemical
Company's "Affinity" brand polyethylene plastic resin infringed Viskase's
patents and whether such conduct was willful. Because the jury rendered one
general damage verdict, the Court ordered a retrial of all damage issues. By
operation of the Court's order, the injunction in respect of ANC's future use
of the "Affinity" brand resin was removed.

On August 19, 1998, the Court granted Viskase's motion for partial summary
judgment finding that ANC's use of the "Affinity" brand resin infringed
Viskase's patents. The Court also reinstated the permanent injunction.
Viskase filed a motion to have the jury verdict as to compensatory damages
reinstated. ANC filed a motion to dismiss the lawsuit claiming that Viskase's
patents are invalid and Viskase failed to join an indispensable party to the
lawsuit. On May 10, 1999, the Court granted Viskase's motion to have the jury
verdict as to the compensatory damages reinstated. In May and June 1999, the
parties briefed the issue of enhanced damages and on July 2, 1999, the Court
awarded Viskase total damages of $164.9 million. ANC filed a motion for
reconsideration which was denied.

On May 3, 1999, ANC commenced legal action in the Federal District Court for
the Northern District of Illinois seeking declaratory relief that one of the
litigated patents is invalid. ANC also filed a motion to consolidate the
declaratory action with the 1993 suit. ANC's motion to consolidate was
granted and then the Court dismissed ANC's suit with prejudice at the same
time the Court awarded Viskase total damages of $164.9 million.

ANC has filed an appeal to the United States Court of Appeals for the Federal
Circuit. Oral arguments before the United States Circuit of Appeals for the
Federal Circuit were held on June 6, 2000 and Viskase expects a decision
during the first half of 2001.

On January 14, 2000, Pechiney Plastic Packaging, Inc. and Pechiney Emballage
Flexible Europe, Inc. (successors in interest in ANC) filed suit against the
Company and Viskase in the United States District Court for the Northern
District of Illinois, Eastern Division (the "Newsome Litigation").  This suit
alleges infringement of U.S. Reissue Patent No. 35,567, which patent is set
to expire on April 26, 2002, and further alleges patent interference with one
of the six Viskase patents litigated in the ANC Litigation.  In May 2000, the
District Court dismissed the patent interference count.  Pechiney filed an
Amended Complaint on June 30, 2000 seeking to reinstate the dismissed count
(Count III).  On July 25, 2000, Viskase filed a Motion to Dismiss Count III
of the Amended Complaint and also filed a Motion for Sanctions related
thereto.  On August 9, 2000, Viskase filed a Supplemental Motion for
Sanctions. On August 24, 2000, Pechiney responded to these motions and
Viskase filed its reply on September 14, 2000.


On September 29, 2000, the Company and Viskase entered into a Settlement and
License Agreement (the "Agreement") with ANC, American National Can Group,
Inc., Pechiney Plastic Packaging, Inc. and Pechiney Emballage Flexible Europe
(collectively, "Pechiney") partially resolving the ANC Litigation and fully
resolving the Newsome Litigation.  Pursuant to the Agreement, Viskase
received a payment of $54.75 million on October 2, 2000.  In addition, an
additional payment of $60.25 million will be made to Viskase if the United
States Court of Appeals for the Federal Circuit affirms the monetary award in
its entirety in the ANC Litigation.  In October 2000, pursuant to the
agreement, Viskase withdrew its Motions for Sanctions and the Amended
Complaint in the Newsome Litigation was dismissed with prejudice.  The
Company recorded $54.75 million as patent infringement settlement income
during the third quarter 2000 and expensed $7.85 million patent defense
costs.  No portion of the potential additional payment of $60.25 million was
recorded in the Company's financial statements.

In addition, in 1997 and 1998, ANC challenged two of the six Viskase patents
in suit by filing requests for reexamination with the United States Patent
and Trademark office (USPTO). In one of the reexaminations, the USPTO has
issued, on February 14, 2001, a Notice of Intent to Issue a Reexamination
Certificate. In early May 2000 the Reexamination Certificate was issued. In
the other reexamination, the patent has been rejected by the USPTO, and
Viskase appealed the rejection to the USPTO Board of Patent Appeals and
Interferences.  Viskase's appeal has been fully briefed and is awaiting an
oral hearing. Pursuant to the Agreement, the parties have agreed that neither
will, directly or indirectly, except as required by any court order or the
USPTO, seek to obtain or assist any other person or entity in seeking or
obtaining the further reexamination, or the invalidation or limitation of the
patents licensed under the Agreement, including the two patents for which ANC
had previously requested reexamination.

In March 1997, Viskase received a subpoena from the Antitrust Division of the
United States Department of Justice relating to a grand jury investigation of
the sausage casings industry. In September 1999, Viskase received a subpoena
from the Antitrust Division of the United States Department of Justice
relating to the expansion of the grand jury investigation into the specialty
films industry. Viskase is cooperating fully with the investigations.

During 1999 and 2000, the Company and certain of its subsidiaries and one
other sausage manufacturer were named in ten virtually identical civil
complaints filed in the United States District Court for the District of New
Jersey by the following plaintiffs:  Smith Provision Co., Inc.; Parks LLC
(d/b/a Parks Sausage Company); Real Kosher Sausage Company, Inc.; Sahlen
Packing Co., Inc.; Marathon Enterprises, Inc.; Ventures East, Inc.;
Keniston's, Inc.; Smithfield Foods, Inc.; Clougherty Packing Co.; and Klement
Sausage Co.  The District Circuit ordered all of these cases consolidated in
Civil Action No. 99-5195-MLC (D.N.J.). Each complaint brought on behalf of a
purported class of sausage casings customers alleges that the defendants
unlawfully conspired to fix prices and allocate business in the sausage
casings industry.  The Company and its subsidiaries have filed answers to
each of these complaints denying liability.  In 2001, all of the consolidated
cases were transferred to the United States District Court for the Northern
District of Illinois, Eastern Division.

The Company and its subsidiaries are involved in various other legal
proceedings arising out of their business and other environmental matters,
none of which is expected to have a material adverse effect upon results of
operations, cash flows or financial position.




5. RESTRUCTURING CHARGE (dollars in millions)

During 2000, the Company committed to a restructuring plan to re-focus its
remaining business.  The Company wrote down $55.8 million of building and
equipment to net realizable value. The restructuring actions, which were
implemented to reduce the Company's fixed cost structure, resulted in a
before tax charge to continuing operations of $94.9 million consisting of:


    Employee costs                             $13.4
    Write-down of building and equipment        13.4
    Nucel(r) building and equipment             42.4
    Nucel(r) other                              24.2
    Decommissioning                              2.3
    Reversal of excess reserve                   (.8)
                                               -----
       Restructuring charge                    $94.9
                                               =====

During the first quarter of March 31, 2001, cash payments against the year
2000 reserve were $4.7 million and cumulative cash payments were $9.9
million.  A remaining restructuring reserve of $22.1 million is included in
accrued liabilities on the balance sheet. Approximately 15% of the Company's
worldwide workforce was laid off due to the restructuring plan.

During the third quarter of 1998, due to the business conditions leading to
the Viskase plan of restructuring, the Company evaluated the recoverability
of long-lived assets including property, plant and equipment, patents and
excess reorganization on a consolidated basis. Based upon the analysis, the
Company recognized an impairment because the estimated consolidated
undiscounted future cash flows derived from long-lived assets were determined
to be less than their carrying value. The amount of the impairment was
calculated using the present value of the Company's estimated future net cash
flows to determine the assets' fair value. Based on this analysis, an
impairment charge of $91.2 million for excess reorganization and $4.3 million
for the write-down of the Chicago facility was taken. In addition, the
Viskase plan of restructuring included charges for the decommissioning of the
Chicago plant and the decommissioning of some of its foreign operations.

During the first quarter of 2001, cash payments against the 1998 reserve were
$.1 million and cumulative payments were $19.9 million, respectively. A
remaining restructuring reserve of approximately $.1 million is included in
accrued liabilities on the balance sheet.  During 2000, an amount of $.8
million identified as an excess reserve was released and offset against the
2000 restructuring charges.


6. DISCONTINUED OPERATIONS (dollars in thousands)

On January 17, 2000, the Company's Board of Directors announced its intent to
sell the Company's plastic barrier and non-barrier shrink Films Business. The
sale of the Films Business was completed on August 31, 2000. The aggregate
purchase price of $245 million, subject to a working capital adjustment,
which could result in additional amounts realized, was used to retire debt,
including the Senior Secured Credit Facility and Junior Term Loans, pay GECC
per the amended amortization schedule, and for general corporate purposes.
The Company recognized a net gain in the amount of $68.2 million in 2000
results. The business sold includes production facilities in the United
States, United Kingdom, and Brazil. In conjunction with the sale of the Films
Business, the Company shut down its oriented polypropylene (OPP) films
business located in Newton Aycliffe, England and the films operation in
Canada; the costs of these are included in the business discontinuance.



Operating results from discontinued operations are as follows:


                                                   Three Months
                                                  Ended March 31,
                                                      2000
                                                  ---------------

Net sales                                              $38,850

Costs and expenses
  Cost of sales                                         28,796
  Selling, general and administrative                    7,199
  Amortization of intangibles                              750
                                                       -------

Operating income                                         2,105

  Interest expense                                          27
  Other expense, net                                       394
                                                       -------

Income from discontinued
  operations before taxes                                1,684

  Income tax provision                                     453
                                                       -------

Net income from discontinued
  operations                                           $ 1,231
                                                       =======


7. COMPREHENSIVE INCOME (dollars in thousands)

The following sets forth the components of other comprehensive (loss) and the
related income tax (benefit):

                                     Three Months       Three Months
                                    Ended March 31,    Ended March 31,
                                        2001               2000
                                    ---------------    ---------------

    Foreign currency translation
    adjustment (1)                     $(623)             $(1,305)


(1)  Net of related tax (benefit) of $(399) and $(835) for the first
     quarter 2001 and 2000, respectively.



8. EARNINGS PER SHARE (EPS)

Following are the reconciliations of the numerators and denominators of the
basic and diluted EPS.


                                              Three Months       Three Months
                                             Ended March 31,   Ended March 31,
                                                  2001              2000
                                             --------------    ---------------
                                            (in thousands, except for weighted
                                                  average shares outstanding)

NUMERATOR:

Net (loss) available to common stockholders:
    From continuing operations                    $(5,970)    $(10,127)

Discontinued operations:
    Income from discontinued operations                          1,231
                                                  -------     --------
    Net (loss) before extraordinary item          $(5,970)    $ (8,896)

    Extraordinary gain                            $ 4,930
                                                  -------     --------

Net loss available to common stockholders
    for basic and diluted EPS                     $(1,040)    $ (8,896)
                                                  =======     ========


DENOMINATOR:

Weighted average shares outstanding
    for basic EPS                              15,298,498   15,085,642

Effect of dilutive securities
                                               ----------   ----------

Weighted average shares outstanding
    for diluted EPs                            15,298,498   15,085,642
                                               ==========   ==========

Common stock equivalents are excluded from the loss per share calculations
as the result is antidilutive.


9. ACCOUNTING STANDARDS

In September 2000, the FASB issued Statement of Financial Accounting
Standards No. 140, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities - a replacement of FASB Statement
No. 125" ("Statement 140").  Statement 140 revises the standards for
accounting for securitizations and other transfers of financial assets and
collateral and requires certain disclosures.  This statement is effective for
transfers and servicing of financial assets and extinguishments of
liabilities occurring after March 31, 2001.  Management believes that
adoption of Statement 140 will not have a material effect on the Company's
financial statements.



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        ---------------------------------------------------------------
        RESULTS OF OPERATIONS
        ---------------------

The accompanying management's discussion and analysis of financial condition
and results of operations should be read in conjunction with the following
table:

                                        Three Months      Three Months
                                          March 31,         March 31,
                                            2001              2000
                                         -----------       -----------
                                                (in thousands)

Net sales:
    Casings - continuing operations        $ 48,040          $ 51,770
    Films - discontinued operations                            38,850
                                           --------          --------
                                           $ 48,040          $ 90,620
                                           ========          ========


Operating income (loss):
    Casings - continuing operations        $ (2,663)         $  1,379
    Films - discontinued operations                             2,105
                                           --------           -------
                                           $ (2,663)         $  3,484
                                           ========          ========


                                          March 31,        December 31,
                                            2001              2000
                                          ---------        ------------
                                               (in thousands)

Identifiable assets:
    Casings - continuing operations        $281,190          $322,364
    Films - discontinued operations                           146,318
                                           --------          --------
                                           $281,190          $468,682
                                           ========          ========

Results of Operations
---------------------

The Company's net sales from continuing operations for the first quarter of
2001 were $48.0 million which represents a decrease of 7.2% from the
comparable period of 2000. The decline in sales reflects the continuing
effect of reduced selling prices in the casings industry. European sales were
negatively affected by foreign currency translation due to the strengthening
of the U.S. dollar.  Also, European sales declined due to the outbreak of
both mad cow disease and foot-and-mouth disease.

Operating income from continuing operations for the first quarter of 2001 was
$(2.7) million representing a decrease of $4.0 million from the comparable
period of 2000.  The decrease in operating income resulted primarily from
declines in sales and gross margins caused by continued price competition in
the worldwide casings industry and increased energy and raw material costs.

Net interest expense from continuing operations for the first quarter of 2001
totaled $5.6 million, representing a decrease of $6.5 million from the
comparable period of 2000. The decrease is primarily due to reduced interest
expense related to the repurchase of the 10.25% Notes, repayment of the
Senior Term and Revolving loans and the Junior Term loans.

Other expense from continuing operations of approximately $1.1 million and
$.1 million for the first quarter of 2001 and 2000, respectively, consists
principally of foreign exchange losses.

The tax benefit for the first quarter of 2001 resulted primarily from the
benefit of U.S. losses partially offset by the provision related to income
from foreign subsidiaries.  Due to permanent differences in the U.S.
resulting from foreign losses for which no tax benefit is provided, a benefit
of $3.4 million was provided on a loss from continuing operations of $9.3
million.  The U.S. tax benefit is recorded as a reduction of the deferred tax
liability and does not result in a refund of income taxes.

Discontinued Operations
-----------------------

On January 17, 2000, the Company's Board of Directors announced its intent to
sell the Company's plastic barrier and non-barrier shrink Films Business. The
sale of the Films Business was completed on August 31, 2000. The aggregate
purchase price of $245 million, subject to a working capital adjustment,
which could result in additional amounts realized, was used to retire debt,
including the Senior Secured Credit Facility and Junior Term Loans, pay GECC
per the amended amortization schedule, and for general corporate purposes.
The Company recognized a net gain in the amount of $68.2 million in 2000
results. The business sold includes production facilities in the United
States, United Kingdom, and Brazil. In conjunction with the sale of the Films
Business, the Company shut down its oriented polypropylene (OPP) films
business located in Newton Aycliffe, England and the films operation in
Canada; the costs of these are included in the business discontinuance.

Other
-----

In September 2000, the FASB issued Statement of Financial Accounting
Standards No. 140, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities - a replacement of FASB Statement
No. 125" ("Statement 140").  Statement 140 revises the standards for
accounting for securitizations and other transfers of financial assets and
collateral and requires certain disclosures.  This statement is effective for
transfers and servicing of financial assets and extinguishments of
liabilities occurring after March 31, 2001.  Management believes that
adoption of Statement 140 will not have a material effect on the Company's
financial statements.

Liquidity and Capital Resources
-------------------------------

Cash and equivalents decreased by $32.4 million during the quarter ended
March 31, 2001. Cash flows used in operating activities were $10.4
million, used in financing activities were $20.4 million and used in
investing activities were $1.0 million. Cash flows used in investing
activities were principally attributable to capital expenditures for property
plant and equipment.  Cash flows used in operating activities were principally
attributable to an increase in working capital usage and the gain on the debt
extinguishment offset by the effect of depreciation and amortization.  Cash
flows used in financing activities were principally due to the repurchase of
the 10.25% Notes offset by the discount on the early extinguishment of debt.

In June 1999, Viskase Corporation and Viskase Sales Corporation entered into
a two-year secured credit agreement consisting of a $50 million senior term
facility (Senior Term Facility), a $50 million senior revolving credit
facility, including a $26 million sublimit for issuance of letters of credit
(Senior Revolving Credit Facility), collectively the "Senior Secured Credit
Facility", and $35 million of junior secured term loans (Junior Term Loans).
The Senior Term Facility and Junior Term Loans were paid in full in August
2000 using proceeds from the sale of Films Business.  The Senior Secured
Credit Facility has a maturity date of June 30, 2001.


The Company's Senior Secured Credit Facility contained a number of financial
covenants that, among other things, require the maintenance of a minimum
level of tangible net worth, a minimum fixed charge coverage ratio and a
minimum leverage ratio of total liabilities to EBITDA and a limitation on
capital expenditures. On April 5, 2001, the Company received an amendment and
waiver under the Company's Senior Secured Credit Facility which eliminated
the financial covenants through the June 30, 2001 maturity date and
eliminated the lender's obligation to extend additional borrowings. There are
no borrowings outstanding under the Senior Revolving Credit Facility at March
31, 2001. Letters of credit in the amount of $25.3 million are outstanding
under the Senior Revolving Credit Facility, and are cash collateralized.

The Company finances its working capital needs through a combination of
internally generated cash from operations and cash on hand.

The Company anticipates it will enter into a new revolving credit facility to
meet its working capital and letter of credit requirements.

Under the terms of the April 13, 2000 Agreement and Amendment with GECC, the
Company agreed to amend the amortization schedule of annual lease payments,
maintain a letter of credit in the amount of $23.5 million at all times,
limit additional borrowings and provide a subordinated security interest
collateralized by the Collateral Pool. Holders of the Senior Secured Credit
Facility and the Junior Term Loans consented to the payment extensions and
the subordinated security interest granted to GECC. The revised amortization
schedule is presented below:

        November 1, 2001      $11,750
        February 28, 2002      11,749
        February 28, 2003      23,499
        February 28, 2004      23,499
        February 28, 2005      23,499

Capital expenditures from continuing operations for the quarter ended March
31, 2001 and 2000 were $1.1 million and $2.4 million, respectively. Capital
expenditures during 2000 included $.9 million from discontinued operations.
Significant 2001 and 2000 capital expenditures from continuing operations
included costs associated with the Visflex(tm) plastic casing line and the
Nucel(r) project. Capital expenditures from discontinued operations included
additional production capacity for specialty films. Capital expenditures from
continuing operations for 2001 are expected to be approximately $5 million.

The Company has spent approximately $8 million annually on research and
development programs, including product and process development, and on new
technology development during each of the past three years. The 2001 research
and development and product introduction expenses are expected to be in the
$5 million range. Among the projects included in the current research and
development efforts is the application of certain patents and technology
licensed by Viskase to the manufacture of cellulosic casings.

The Company's 10.25% Notes mature on December 1, 2001.  The Company has from
time to time purchased 10.25% Notes in open market or privately negotiated
transactions, with the effect that as of March 31, 2001 there was $163.2
million principal amount of 10.25% Notes outstanding , net of repurchased
notes.  The Company recognized an $8.1 million gain on the repurchase of the
10.25% Notes at March 31, 2001.  As of May 15, 2001, there remains a $163.2
million principal amount of 10.25% Notes outstanding, net of repurchased
notes.  The Company does not presently anticipate that its current cash
position and operating cash flows will be sufficient to pay the principal and
accrued interest on the 10.25% Notes when they mature.  In addition, the
Company's payment obligations on the GECC lease remain substantial and the
Senior Secured Credit Facility expires in June 2001.  Accordingly, the
Company is evaluating the strategic alternatives available to it with respect
to its capital structure in general and the treatment of the 10.25% Notes
between the date hereof and the date of their maturity.  These alternatives
could include public offerings or private placements of debt and/or equity
securities, an exchange offer for the 10.25% Notes or other restructuring of
the Company's indebtedness, the Company's entering into a new senior credit
facility or the sale of the Company or its assets.  There can be no assurance
that any such transaction will be concluded or that any such additional
financing will be available to the Company or that any such transaction or
financing can be done on terms favorable to the Company's stockholders or
creditors.  Failure by the Company to refinance or restructure its
obligations with respect to the 10.25% Notes would have a material adverse
effect on the Company's results of operations and financial condition.

Forward-looking Statements
--------------------------

Forward-looking statements in this report are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties that could cause actual results and
Company plans and objectives to differ materially from those projected. Such
risks and uncertainties include, but are not limited to, general business and
economic conditions; competitive pricing pressures for the Company's
products; changes in other costs; opportunities that may be presented to and
pursued by the Company; determinations by regulatory and governmental
authorities; and the ability to achieve synergistic and other cost reductions
and efficiencies.


ITEM 7a. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
         ----------------------------------------------------------

The Company is exposed to certain market risks related to foreign currency
exchange rates. In order to manage the risk associated with this exposure to
such fluctuations, the Company uses derivative financial instruments. The
Company does not enter into derivatives for trading purposes.

The Company also prepared sensitivity analyses to determine the impact of a
hypothetical 10% devaluation of the U.S. dollar relative to the European
receivables and payables denominated in U.S. dollars. Based on its
sensitivity analyses at March 31, 2001, a 10% devaluation of the U.S. dollar
would affect the Company's annual consolidated operating results, financial
position and cash flows by approximately $.3 million.


                             PART II. OTHER INFORMATION

Item 1 - Legal Proceedings
         -----------------

For a description of pending litigation and other contingencies, see Part 1,
Note 4, Contingencies in Notes to Consolidated Financial Statements for
Viskase Companies, Inc. and Subsidiaries.

Item 2 - Changes in Securities
         ---------------------

No reportable events occurred during the quarter ended March 31, 2001.

Item 3 - Defaults Upon Senior Securities
         -------------------------------

None.

Item 4 - Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

None.

Item 5 - Other Information
         -----------------

None.

Item 6 - Exhibits and Reports on Form 8-K
         --------------------------------

(a) Exhibits


10.36  Agreement and Waiver dated as of March 22, 2001 between Viskase
       Corporation (the Lessee) and State Street Bank and Trust Company
       (the Lessor)relating to Participation Agreement dated December 18,
       1990 among Viskase Corporation, as Lessee; Viskase Companies, Inc., as
       Guarantor, General Electric Capital Corporation, as Owner Participant;
       and State Street Bank and Trust Company, as Owner Trustee.




(b) Reports on Form 8-K





                                        SIGNATURES
                                        ----------



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                           VISKASE COMPANIES, INC.
                                           -----------------------
                                           Registrant




                                           By: /s/
                                               -------------------
                                               Gordon S. Donovan
                                               Vice President, Chief Financial
                                                 Officer and Treasurer
                                                (Duly authorized officer
                                                 and principal financial
                                                 officer of the registrant)







Date:  May 15, 2001