Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The Company's only significant exposure to market risk is changes in the levels of various interest rates. In this regard, changes in LIBOR interest rates affect the interest paid on its borrowings. In addition, the interest rates on the DIP Financing are affected by changes in the Federal Funds rate and the prime rate of Morgan Guaranty Trust Company of New York. To mitigate the impact of fluctuations in these interest rates, the Company generally maintains a significant portion of its borrowings as fixed rate in nature either by borrowing on a fixed rate long-term basis or entering into interest rate swap transactions.

As previously discussed, the Company filed the Chapter 11 Cases on September 13, 1999. Accordingly, all amounts disclosed in the table below are subject to compromise in connection with the Chapter 11 Cases. While the fair values of the Company's debt obligations have declined significantly in 1999 as a result of the Chapter 11 Cases, such amounts do not reflect any adjustments that might result from resolutions of the Chapter 11 Cases or other matters discussed herein.

Under the Bankruptcy Code, actions to collect pre-petition indebtedness against the Company are subject to an automatic stay and other contractual obligations against the Company may not be enforced. In addition, the Company may assume or reject executory contracts under the Bankruptcy Code.

The following table provides information about the Company's financial instruments that are sensitive to changes in interest rates. The table constitutes a forward-looking statement. For long-term debt, the table presents principal cash flows and related weighted average interest rates by expected maturity date. For interest rate swap agreements, the table presents notional amounts and weighted average interest rates by contractual maturity dates. Notional amounts are used to calculate the contractual cash flows to be exchanged under the contract.

                                           Expected Maturities                                  Fair
                          ----------------------------------------------------------           Value
                            2000     2001      2002     2003      2004    Thereafter  Total   12/31/99
                          --------  -------  --------  -------  --------  ---------- -------- --------
Liabilities:
Long-term debt,
 including amounts due
 within one year:
 Fixed rate.............  $ 17,408  $17,802  $ 19,454  $21,145  $  7,573   $303,897  $387,279 $151,279
 Average interest rate..     11.00%   11.00%    11.00%   11.00%     9.00%      9.00%
 Variable rate..........  $ 19,474  $61,974  $128,640  $79,535  $177,344   $ 39,147  $506,114 $334,035
 (a) Average interest
  rate
Interest rate derivative
 financial instruments
 related to debt:
Interest rate swaps:
 Pay fixed/receive
  variable..............  $100,000                                                   $100,000 $    157
 Average pay rate.......       6.1%
 (b) Average receive
  rate