Zacks.com Announces That Richard Lehmann Highlights the Following Issues: Bethlehem Steel,...

Business Editors

CHICAGO--(BUSINESS WIRE)--Dec. 23, 2003

All securities are not created equal, and some may be downright detrimental to your finances, according to Richard Lehmann. Discover what you should stay away from, along with information on four corporate defaults. Read

Here are the highlights from the Featured Expert column:

Corporate Defaults

Bethlehem Steel (OTC:BHMSQ) produces a variety of steel products such as coated sheets, tin mill products, carbon and alloy plates and large-diameter pipe. The company filed for Chapter 11 bankruptcy protection in New York on October 15,2001. Two years later a Bankruptcy court approved the company's liquidation plan. The outlook is less then promising for unsecured creditors. Bondholders stand to receive their pro rata share of a whopping $15.6 million dollars. Considering the company's outstanding general unsecured debt of $6 billion, that works out to almost exactly nothing per bond. Bethlehem currently has $180 million of outstanding bond debt. The company expects the liquidation procedures to be completed by December 31, 2003.

Piccadilly Cafeterias (OTC:PICZQ) is one of the largest restaurant chains in the Southeast and Mid-Atlantic U.S. operating 145 restaurants. In their latest quarterly report, the company reports it agreed to sell all of its assets, including restaurant operations, to Piccadilly Acquisition Corporation for $54 million. Under the agreement, the company filed for Chapter 11 protection in the United States Bankruptcy Court in Fort Lauderdale, FL on October 29,2003. Piccadilly currently has $55.5 million in outstanding bond debt.

Radio Unica Communications Corp (OTC:UNCAQ) is a nationwide Spanish language AM radio network. The company filed a pre-packaged Chapter 11 petition in the Southern District of New York on October 31, 2003. The plan has the approval of 100% of bondholders, who anticipate receiving 70 cents on the dollar if the plan is approved. Stockholders are scheduled to receive between $0.47 and $1.03 per share. The company is to be acquired by Multicultural Broadcasting, Inc for $150 million. It plans to sell its radio network and promotions company separately. The company expects to be out of bankruptcy court by the second quarter of 2004. Radio Unica has $158 million in outstanding public debt in the form of an 11.75% bond due 2006.

Oakwood Homes Corporation (OTC:OKWHQ) produces, sells finances and insures manufactured housing throughout the U.S. The company filed a Chapter 11 petition in the District of Delaware on November 15, 2002. Oakwood has submitted a reorganization plan that calls for 100% of the new equity in the company to be distributed to bondholders. While the plan was being considered, Berkshire Hathaway stepped in to make an offer for the entire company. Berkshire offered $373 million cash. The company will amend its pending reorganization plan to reflect the offer, which the company feels is a better deal for all creditors. The sale has the support of the unsecured creditors committee. Oakwood has $310 in outstanding bond debt.

Get information on more corporate defaults, and make sure to read Richard Lehmann's commentary dubbed 'Sequined Elks - And Other Christmas Fantasies,' by clicking: http://at.zacks.com/?id=85

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