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Non-Tech : Loewen Group -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Chisholm who wrote (163)	5/19/1999 1:58:00 PM
From: Michael Bidder	Respond to of 277

Daniel, <<I don't see much downside from here (for the creditors, valuing their holdings at the current market rate of 50).>> I respect your analysis and accounting skills however is the following possible in your opinion? Given that the "street value" of the assets are below balance sheet value the creditors have a lot to worry about if revenues don't improve. Debt interest paid for the 1st Q 99 was 45 M vs. 35 M for the same period in 98. As debt continues to climb one of these quarters Loewen will be unable to pay her interest. If I were a creditor I would be trying to get my chunk of the pie as soon as possible before it is eaten up by: * Liquidation to pay interest payments * Other creditors My experience, limited as it is, is that a company in Loewens position does not give the whole picture. I bet their are some hidden or unreported "offbook" debts and unexplained items. IMO the sale of assets to former Loewen executives was not kosher. Regards, Michael Bidder...speculating

To: Daniel Chisholm who wrote (163)	5/19/1999 6:33:00 PM
From: Steve Johnston	Read Replies (1) \| Respond to of 277

If you are correct in saying that the assets would be sold at a large book value loss, look for the secured creditors to; 1.) sell their debt to some corporate raider, like a Carl Icahn, at a discount and/or, 2.) convert their debt into equity. A very similar situation occurred at Philip Services, and the existing shareholders were left (fortunately) with 10% of the newly structured company, with the rest going to the creditors. Will existing Loewen shareholders do better or worse? Only time will tell. I see all of the above as being far more attractive to creditors than a liquidation, where assets would go for a song. Regards.

To: Daniel Chisholm who wrote (163)	5/20/1999 8:41:00 PM
From: Tom R. Jones	Read Replies (1) \| Respond to of 277

Daniel, You sure seem to have a handle on what is going on with LWN. Therefore, can you answer a question: What are the near term problems facing LWN before the September crisis? I read over at Yahoo about a payment that is due on June 1. However, I was unable to obtain more info. Can you elaborate? Thanks in advance...Tom

To: Daniel Chisholm who wrote (163)	5/22/1999 3:31:00 AM
From: Michael Bidder	Read Replies (1) \| Respond to of 277

Dow Jones News Loewen Group Inc.'s (LWN) predicament is similiar to the one Philip Services Corp. (PHV), an industrial services company, recently faced in its bid to get out from under its debt load to restructure. In the end, Philip and its lenders agreed on a plan to sharply reduce Philip's debt in exchange for 90% of the company's shares. If Loewen is planning to continue to try to sell assets to raise cash in order to cut its debt and create value for investors, then at least some debt holders would prefer the company instead file for bankruptcy protection to restructure. Loewen's debt obligation of $300 million due Sept. 15 puts the company at disadvantage versus potential buyers in trying to get a fair price for its assets, a debt holder said. This debt payment is comparable to "operating with a gun to your head," commented the debt holder, who favors Loewen filing for bankruptcy protection over asset sales. In addition, filing for bankruptcy protection is a fairer solution for all debt holders, another debt holder said. "We're not at a point where I would want to see any asset sales," for fear that the proceeds would be funnelled to pay off Loewen's bank lenders at the expense of Loewen's bond holders. ,b/>"If there were asset sales you would probably have the bond holders push this company into credit protection," the debt holder said. -By Ben Dummett; 416-306-2024; ben.dummett@dowjones.ca (END) DOW JONES NEWS 05-21-99 04:48 PM