Fulbright Daily Bankruptcy News ,
 see bankruptcy reform 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 12/13/2000 09:47 AM -----

=09"William Rochelle" <wrochelle@fulbright.com>
=0912/13/2000 09:08 AM
=09=09=20
=09=09 To: undisclosed-recipients:;
=09=09 cc:=20
=09=09 Subject: Fulbright Daily Bankruptcy News


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

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

Wednesday, December 13, 2000

Filings:

 Flashcom Inc., a high speed internet reseller, filed chapter 11 on Friday =
in=20
Santa Ana, Calif., and laid off one third of its workers.

 Golden West Tacos, Inc., the franchisee of 49 Taco Bell restaurants, filed=
=20
chapter 11 last month in San Diego.

Updates:

 Unicapital Corp., the Miami based aircraft and equipment lessor that filed=
=20
on Monday in New York, classifies as *significant* chapter 11 case.  The=20
company has almost $650 million in two bank facilities and closed two=20
securitizations in the last year for another $650 million.  See F&J Daily=
=20
Bankr. News of Dec. 12.

 Lernout & Hauspie has decided to appeal last week=02=07s decision from the=
=20
Belgian court which denied the company=02=07s petition for protection from=
=20
creditors on the ground that the *measures for restructuring were totally=
=20
unsatisfactory.*  To complicate matters, the Belgian court has granted a=20
shareholders=02=07 request that prevents L&H from selling or pledging asset=
s.  The=20
company also is in chapter 11 in Delaware, but the U.S. court does not have=
=20
power to prevent a European creditor from filing a lawsuit in Europe if the=
=20
creditor has no presence in the U.S.  Also, L&H may be faced with conflicti=
ng=20
court orders: the Belgian court precludes pledging assets although the U.S.=
=20
court might authorize secured borrowing.  See F&J Daily Bankr. News of May =
30=20
and Oct. 6 & 8 of =02=0897 and Oct. 27, Nov. 28 & 30 and Dec. 1, 4 & 8 of =
=02=0800.
 Scour Inc. a/k/a scour.com, whose web site allowed users to exchange video=
=20
and audio files, filed chapter 11 in October and auctioned its assets=20
yesterday for $5.5 million cash and $3.5 million in stock of the winning=20
bidder CenterSpan Communications Corp.  Scour has only $4 million in debt b=
ut=20
is facing $250 billion (no typo) in copyright infringement claims. The bidd=
er=20
agreed not to use the assets in a manner that could bring more litigation. =
=20
See F&J Daily Bankr. News of Oct. 13 and Nov. 2 & 20.

Downgrades:
 W.R. Grace & Co. is the latest asbestos defendant to lose investment grade=
=20
status.  Yesterday S&P lowered the corporate peg to BB+.  Grace=02=07s stoc=
k=20
plunged 20% yesterday and is down 85% in the last year.  A $250 million ban=
k=20
credit matures in May and a second bank line is tapped out.  Stay tuned!  S=
ee=20
F&J Daily Bankr. News of Oct. 9.

 MC Shipping Inc., a 21 vessel ship owner, tripled in size recently and now=
=20
has been downgraded three time in the last eighteen months by S&P, which=20
yesterday dropped the long term rating by another notch to a dangerous CCC.=
 =20
The corporate peg remains at B-.  The company is tendering for bonds at 54%=
=20
of face.  See F&J Daily Bankr. News of June 10 of =02=0899 and April 7 of =
=02=0800.

 S&P downgraded Dade Behring Inc. eighteen months ago and took another swip=
e=20
at the company yesterday, lowering the corporate and sub ratings by a notch=
=20
to B and a troubling CCC+.  The maker of medical diagnostic equipment and=
=20
supplies has $1.5 billion in rated debt.  S&P=02=07s new ratings are one no=
tch=20
below the downgrade that Moody=02=07s handed out in October.  See F&J Daily=
 Bankr.=20
News of June 29 of =02=0899 and Oct. 24 of =02=0800.

Bankruptcy reform update:

 In an editorial today, The New York Times said that the bankruptcy reform=
=20
bill is  *distorted* and a *handout to the credit card industry.*  The=20
Hartford Courant today urged the President to veto the bill.  Other=20
newspapers have advocated Presidential approval of the bill.

Latin America news:

 For the second time in a week, the Peruvian government has taken over a=20
bank.  An insurance company also was taken over, and a Peruvian airline=20
suspended domestic service.

Asia news:

 Asian markets were pleased that the U.S. may now know who its president is=
. =20
However, the Japanese yen dropped to a 16 month low against the dollar, to=
=20
the pleasure of Japanese exporters.  Consumer prices in Tokyo have fallen=
=20
1.2% from one year ago, reflecting how Japan=02=07s problem is deflation, n=
ot=20
inflation.


Fulbright & Jaworski L.L.P. makes NO WARRANTIES OR REPRESENTATIONS OF ANY=
=20
SORT with respect to this report, including any warranties or representatio=
ns=20
as to the accuracy or completeness of any of the information, facts, or=20
opinions contained herein.  By having requested receipt of these reports, t=
he=20
recipient acknowledges that the receipt of these reports does not constitut=
e=20
the receipt of legal advice and does not, by itself, establish an=20
attorney-client relationship.  These reports are provided as a courtesy=20
solely for the recipient=02=07s information and may not be reproduced or=20
distributed to any third parties without Fulbright=02=07s express written=
=20
authorization.
 - bknews.wpd
elizabeth.sager@enron.com, mark.taylor@enron.com, jeffrey.hodge@enron.com