EXHIBIT 77.E
CMC High Yield Fund currently holds Flooring
America, Inc., 12.75% Senior Subordinate Notes,
Series B, due 10/15/2002, which represents less
than 1% of the Fund's portfolio. On June 15,
2000, in the United States Bankruptcy Court for
the Northern District of Georgia, Atlanta
Division, Flooring America filed a bankruptcy
petition for reorganization. Effective on that
date, the Fund stopped accruing income on the
bonds. Prior to the bankruptcy petition the Fund
received payments for interest and a partial
tender of the Bonds. Flooring America has filed a
petition for return of these payments. The Fund
has joined other bondholders and is vigorously
defending the litigation.
