UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                  STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

     [ ]  Check  box if no  longer  subject  to  Section  16.  Form 4 or  Form 5
obligations may continue. See Instruction 1(b)

                                     FORM 4

       Filed pursuant to Section 16(a) of the  Securities  Exchange Act of 1934,
       Section  17(a)  of the  Public  Utility  Holding  Company  Act of 1935 or
       Section 30(f) of the Investment Company Act of 1940

1.     Name and Address of Reporting Person

       Elliott Associates, L.P.
       712 Fifth Avenue
       New York, New York 10019

2.     Issuer Name and Ticker Trading Symbol

       Illinois Superconductor Corporation (ISCO)

3.     IRS or Social Security Number of Reporting Person (Voluntary)

4.     Statement for (Month/Day/Year)

       09/00

5.     If Amendment, Date of Original (Month/Year)

6.     Relationship of Reporting Person to Issuer (Check all applicable)

       [x] Director [ ] Officer  (give title below) [ ] Chairman [x] 10% Owner [
       ] Other (specify below)

7.     Individual or Joint/Group Filing (Check applicable line)

       [x] Form  filed by one  Reporting  Person [ ] Form filed by more than one
       Reporting Person












                                  (Page 1 of 6)






     Table I Non-Derivative  Securities  Acquired,  Disposed of, or Beneficially
Owned

1.     Title of Security (Instr. 3)

       Common Stock

2.     Transaction Date (Month/Day/Year)

       (a) 09/19/00
       (b) 09/19/00
       (c) 09/19/00
       (d) 09/19/00

3.     Transaction Code (Inst. 8)

       (a)   X
       (b)   X
       (c)   X
       (d)   X

       V

4.     Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)

             Amount:

       (a) 555,556
       (b) 666,666
       (c) 333,334
       (d) 144,444

             (A) or (D):

       (a) A
       (b) A
       (c) A
       (d) A

             Price:

       (a) $.25
       (b) $.25
       (c) $.25
       (d) $.25

5.     Amount of Securities Beneficially Owned at End of Month (Instr. 3 and 4)

       (a) - (d) 1,700,000



                                  (Page 2 of 6)







6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)

       (a) D
       (b) D
       (c) D
       (d) D

7.     Nature of Indirect Beneficial Ownership (Instr. 4)

       Not applicable.


     Reminder:   Report  on  a  separate  line  for  each  class  of  securities
beneficially owned directly or indirectly.










                                  (Page 3 of 6)






     Table II - Derivative  Securities  Acquired,  Disposed of, or  Beneficially
Owned (e.g. puts, calls, warrants, options, convertible securities)

1.     Title of Derivative Security (Instr. 3)

       (a) Warrants
       (b) Warrants
       (c) Warrants
       (d) Warrants

2.     Conversion or Exercisable Price of Derivative Security

       (a) $.25
       (b) $.25
       (c) $.25
       (d) $.25

3.     Transaction Date (Month/Day/Year)

       (a) 9/19/00
       (b) 9/19/00
       (c) 9/19/00
       (d) 9/19/00

4.     Transaction Code (Instr. 8)

             Code

       (a) X
       (b) X
       (c) X
       (d) X

             V

     5. Number of Derivative  Securities Acquired (A) or Disposed of (D) (Instr.
3, 4 and 5)

             (A)


             (D)

       (a) 555,556
       (b) 666,666
       (c) 333,334
       (d) 144,444


                                  (Page 4 of 6)







6.     Date Exercisable and Expiration Date (Month/Day/Year)

             Date Exercisable:

       (a) Immediately
       (b) Immediately
       (c) Immediately
       (d) Immediately

             Expiration Date:

       (a) 03/31/02
       (b) 11/05/04
       (c) 03/31/02
       (d) 05/15/01

7.     Title and Amount of Underlying Securities (Instr. 3 and 4)

             Title:

       (a) Common Stock
       (b) Common Stock
       (c) Common Stock
       (d) Common Stock

             Amount or Number of Shares:

       (a) 555,556
       (b) 666,666
       (c) 333,334
       (d) 144,444

8.     Price of Derivative Security (Inst. 5)

       (a) *
       (b) $1,666,668**
       (c)   $833,334***
       (d) *

     9.  Number  of  Derivative  Securities  Beneficially  Owned at End of Month
(Instr. 4)

       (a) 0
       (b) 0
       (c) 0
       (d) 0

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

       (a) D
       (b) D
       (c) D
       (d) D



                                  (Page 5 of 6)







11.    Nature of Indirect Beneficial Ownership (Instr. 4)

             Not Applicable.


Explanation of Responses:

     *Elliott  received  $2,500,000 face amount of the Issuer's notes along with
1,000,000 warrants in connection with a $2,500,000 investment in the Issuer.

     **Aggregate  price paid for  warrants  and  $1,666,668  face  amount of the
Issuer's notes.

     ***Aggregate  price paid for  warrants  plus  $833,334  face  amount of the
Issuer's notes.

     #Intentional misstatement or omissions of facts constitute Federal Criminal
Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

       Date: October 10, 2000

                 ELLIOTT ASSOCIATES, L.P.
                 By: Elliott Capital Advisors, L.P., as General Partner
                    By: Braxton Associates, Inc., as General Partner


                           By: /s/ Elliot Greenberg
                                 Elliot Greenberg
                                 Vice President

                 #Signature of Reporting Person


                                  (Page 6 of 6)