Encompass Services Corp., with about $118 million in cash as of Sept. 30, terminated its rights offering and cancelled its Oct. 15 special shareholders' meeting. It has proposed a debt-restructuring plan to its creditors: pay trade claims to its vendors under its normal business practices; restructure a portion of its loans from senior secured lenders; exchange the company's senior subordinated notes to new common stock; and cancel its junior subordinated notes, convertible preferred stock, common stock and all outstanding options and warrants.

If approved, the plan would be implemented under a "prepackaged" Chapter 11 bankruptcy filing.

The firm is also withdrawing all forecasts and financial guidance, and canceling its employee stock purchase plan.

In related news, the New York Stock Exchange suspended trading of Encompass common stock on Oct. 1, 2002, and notified the company that it was moving to delist the stock due to its "abnormally low" selling price, which closed at 14 cents on Sept. 30.

Encompass provides electrical technologies, mechanical services and cleaning systems to commercial, industrial and residential customers nationwide. For more information, visit: www.encompass.com.