TCR_Public/000322.MBX   T R O U B L E D   C O M P A N Y   R E P O R T E R

     Wednesday, March 22, 2000, Vol. 4, No. 57  
                            
                  Headlines

ACE BAKING: Nabisco Plans To Ensure Supply of Cones
ARM FINANCIAL: Taps Blackrock Financial Management
AVENTURA ENERGY: Shares To Commence Trading; Name Change
AMERISERVE: Rittenmeyer Approved as AmeriServe President and CEO
APPLIANCE RECYCLING: Medallion Capital Reports Stock Ownership

BAPTIST FOUNDATION: Creditors Object to Appointment of Investors
BMJ MEDICAL: Seeks Order Extending Exclusivity
BRADLEES:  Total sales For Fourth Quarter Exceed Plan By $16.5 M
BRAKE HEADQUARTERS: Announces Plan for Two of Its Subsidiaries
CHS ELECTRONICS: May Be Headed For Bankruptcy

DEVLIEG-BULLARD: Asset Sale Talks Start
DIAGNOSTIC HEALTH SERVICES: Files for Protection From Creditors
ENTEX INFORMATION: Siemens Enters Acquisition Agreement
FILENE'S: Value City Announces Completion of Acquisition
FRONTIER INSURANCE CO.: S&P Lowers Supported Medium-Term Note

GULF STATES STEEL: Motion To Extend Exclusivity Granted
HARNISCHFEGER INDUSTRIES: Reports Lower Revenues and Net Loss
HARNISCHFEGER: US Trustee's Fourth Notice of Official Committee
ICO GLOBAL: Seeks $75M Increase in Eagle River DIP Loan
KCS ENERGY: Committee Taps Petrie Parkman as Financial Advisor

LATTICE SEMICONDUCTOR: Annual Meeting Set for May 2, 2000
LOEHMANN'S: Seeks To Extend Exclusivity
MORRIS MATERIAL: Reports Net Loss of $4.2 Million For Quarter
OWENS CORNING: Annual Meeting Set For April 20, 2000
PENNCORP FINANCIAL: Objects To Transfer of Venue

PENTASQUITOS CAR: Case Summary and Largest Unsecured Creditor
PLAY BY PLAY: Secures Loan from Chairman; Cures Default
PLAY BY PLAY TOYS: Reports Net Loss of $3.091M For Quarter
RED SEA OIL: Lundin Oil Announces Plan of Arrangement
ROBERD'S: Jackson National Life Provides $25M DIP Credit Facility

SERVICE MERCHANDISE: Shareholders Outraged; Hire Attorney
TULTEX: Seeks To Extend Exclusivity

                  *********

ACE BAKING: Nabisco Plans To Ensure Supply of Cones
---------------------------------------------------
The recent bankruptcy of Ace Baking Co. has left the food service
ice cream industry scrambling to regain significant lost cone
capacity. The Wisconsin company that made nearly 1.3 billion ice
cream cones last year raised fears of a summer cone shortage at
scoop shops across the country when it closed its doors and shut
down cone production. To fill the gap local ice cream scoop shops
have been searching for alternative sources of supply.

Nabisco evaluated the economics of the cone category and plans to
ensure a reliable supply of high quality cones, while avoiding
the financial pit falls that Ace Baking encountered. To that end,
Nabisco is upping production of its premium quality Comet and
Oreo ice cream cones to enter the food service cone business.


ARM FINANCIAL: Taps Blackrock Financial Management
--------------------------------------------------
The debtors, ARM Financial Group, Inc. and integrity Holdings,
Inc. seek to retain and employ Blackrock Financial Management
Inc. as special purpose investment manager to the debtors for the
limited purpose of selling certain securities owned by the
Insurance Subsidiaries in accordance with the terms of the
Purchase Agreement and the Investment Advisor Agreement dated
March 3, 2000, by and among ARM, Integrity Life, National
Integrity, Western & Southern and BlackRock.  


AVENTURA ENERGY: Shares To Commence Trading; Name Change
--------------------------------------------------------
The common shares of Del Mar Energy Inc. have been halted
from trading since August 5, 1999, pending the completion of
filing and satisfactory documentation. Pursuant to a special
resolution passed by shareholders at a  Special Meeting of
Shareholders held on September 21, 1999, the Company has
consolidated its capital on a three old for one new basis and has
subsequently increased its authorized capital.  The name of the
Company has also been changed from Del Mar Energy Inc. to
Aventura Energy Inc.

Effective at the opening Wednesday, March 22, 2000, the
common shares of Aventura Energy Inc. will commence trading
on CDNX, and the common shares of Del Mar Energy Inc. will
be delisted.  The Company is classified as an Oil and Gas
Exploration/Development company.


AMERISERVE: Rittenmeyer Approved as AmeriServe President and CEO
----------------------------------------------------------------
The appointment of Ronald A. Rittenmeyer as president and chief
executive officer of AmeriServe Food Distribution, Inc., was
approved on Friday, March 17, by the U.S. Bankruptcy Court in
Wilmington, Delaware.  AmeriServe has continued operations since
filing a voluntary petition under Chapter 11 on January 31 and
has received interim financing from its two largest customers,
Tricon Global Restaurants, Inc., and Burger King Corporation.

AmeriServe, headquartered in Addison, Texas, a suburb of Dallas,
is the nation's largest distributor specializing in chain
restaurants, serving leading quick service systems such as Burger
King, Chick-fil-A, KFC, Long John Silver's, Pizza Hut and Taco
Bell.


APPLIANCE RECYCLING: Medallion Capital Reports Stock Ownership
--------------------------------------------------------------
Medallion Capital, Inc. beneficially owns 800,000 shares of the
common stock of Appliance Recycling Centers of America Inc.,
which represents 26.8% of the outstanding common stock of the
company.  Medallion exercises sole voting and dispositive powers
over the 800,000 shares.

Medallion Capital, Inc., is a Minnesota corporation and wholly-
owned subsidiary of Medallion Financial, Inc., a Delaware
corporation.  On February 8, 1999, Medallion Capital purchased
100,000 shares of common stock of Appliance Recycling Centers in
a private placement of the company.  These shares are in addition
to the 700,000 shares issuable upon the exercise of common stock
warrants previously purchased and reported by Medallion Capital.  
Medallion indicates the acquisition of the stock is for
investment purposes.


BAPTIST FOUNDATION: Creditors Object to Appointment of Investors
----------------------------------------------------------------
The official joint committee of unsecured creditors for the
debtors, Baptist Foundation of Arizona Inc., et al. object to    
the joint motion for appointment of official collateralized
investors committee filed by certain alleged "collateralized
investors."

The committee states that the so-called collateralized investors'
interests are fairly and adequately represented by the unsecured
committee, as the unsecured committee has a representative of
each class of collateralized investment; the appointment would
increase the administrative costs and if the investors' interests
are not adequately represented then the appointment of a single
collateralized investors' committee will not ensure adequate
representation.


BMJ MEDICAL: Seeks Order Extending Exclusivity
----------------------------------------------
The debtors, BMJ Medical Management, Inc. et al. seek to extend
their exclusive periods to propose an amended plan of
reorganization through and including May 15, 2000 and to extend
the period of solicitation of acceptances through and including
July 17, 2000.

A hearing on the motion will take place on April 7, 2000.

BMJ is in negotiations with each of the remaining Medical Groups,
and expects to either reach agreements or make decisions to
litigate with each of the medical groups within the next 60 days.  
The debtors anticipate filing an amended plan pending the final
outcome of negotiations with the medical groups, BMJ's decisions
regarding litigation and the comments of Paribas, as agent for
the pre-petition lenders and post-petition lenders, and the
committee.  The debtors have circulated an amended plan to
counsel for Paribas and the Committee.  The debtors are alos in
the final stages of completing a disclosure statement, which will
be circulated to counsel for Paribas and the Committee shortly.  
Specifically, the debtors seek the opportunity to reach consensus
with their creditor constituents regarding plan treatment and to
reach agreement with ce4rtain Medical Groups regarding assumption
or rejection of the related MSA's or alternatively, if no such
agreement can be reached, rejecting the related MSA's and


BRADLEES:  Total sales For Fourth Quarter Exceed Plan By $16.5 M
----------------------------------------------------------------
Beginning last week Bradlees, Inc. commenced distribution to its
banks and other credit providers summaries of its fourth-quarter
(13-week) and annual (52-week) financial results ended January
29, 2000 ("fiscal 1999"), including a comparison to the company's
summary financial plan for fiscal 1999.

According to Bradlees, total sales for the fourth quarter ended
January 29, 2000 exceeded Plan by $16.5 million, or 3.6%, due
primarily to favorable customer response to the company's
merchandising and marketing initiatives and the first-quarter
liquidation of one of the company's major competitors
(Caldor Corp.).  This increase in total sales was partially
offset by the exclusion of January's layaway sales as the result
of the company electing early to adopt SAB No. 101.

Comparable store sales increased 7.0% in the fourth quarter.  
EBITDA for the fourth quarter was $.1 million below Plan and net
income in the fourth quarter was $1.6 million above Plan due
primarily to an extraordinary gain of $1.2 million from the early
extinguishment of debt (convertible notes).

Fiscal 1999 total sales exceeded Plan by $103.5 million, or 7.2%,
due primarily, again according to the company, to the same
reasons stated above for the fourth quarter.  Comparable store
sales increased 11.9%, with annual sales in most softlines and
hardlines merchandise divisions meeting or exceeding Plan and all
divisions exceeding last year's sales.  Annual EBITDA exceeded
Plan by $6.0 million due primarily to the beneficial impact
of the above-Plan sales and associated gross margin, partially
offset by higher selling, general, administrative and
distribution expenses associated with the increased sales volume
and the related costs of staffing both the stores and the
distribution centers to service customer demand.

The annual net loss was $10.5 million below the Plan net loss.

Cash was $1.3 million above Plan at January 29, 2000 and
inventories at cost were $26.1 million or 11.8% above Plan and
6.8% above last year's level due primarily to a higher level of
merchandise purchases to meet the sales demand as well as two new
stores not included in the Plan.  Accounts payable was $32.0
million above Plan due primarily to increased purchases
to accommodate the higher sales levels and better-than-Plan
vendor payment terms.  Outstanding borrowings were $2.8 million
above Plan due principally to the higher level of merchandise
purchases and the early payoff of the convertible notes,
partially offset by the above-Plan EBITDA.  Cited lease financing
obligation, capital lease obligation, convertible notes payable,
net fixed asset and long-term asset variances to Plan all relate
primarily to the Yonkers' store lease financing transaction that
occurred in the second quarter and the associated paydown of the
convertible notes (which were paid off in the fourth quarter) and
reclassification of the prior long-term assets held for sale.

The company indicates it is distributing the quarterly and annual
performance in comparison to its Plan to its banks and other
credit providers to facilitate their credit analyses.  The
Quarterly Performance Information should not be relied upon for
any other purpose and should be read in conjunction with the
company's financials dated April 1, 1999, and for the quarterly
periods ended May 1, 1999, July 31, 1999 and October 30, 1999.  
The Quarterly Performance Information is being reported publicly
solely because it is being distributed to a large number of the
company's vendors for purposes of their credit analyses.  The
Quarterly Performance Information was not examined, reviewed or
compiled by the company's independent public accountants.

Although Bradlees is publicly disclosing the Quarterly
Performance Information, the company has indicated it does not
believe it is obligated to subsequently update such information
or to provide such information indefinitely, and may cease making
such disclosures at any time.  The Quarterly Performance
Information may be subject to future adjustments and
such adjustments could materially affect the reported
information.


BRAKE HEADQUARTERS: Announces Plan for Two of Its Subsidiaries
--------------------------------------------------------------
Brake Headquarters U.S.A., Inc. (OTC: BHQU) announced that two of
its subsidiaries, Sanyo Automotive Parts, Ltd. ("Sanyo") and ABS
Brakes, Inc. ("ABS"), have filed a Plan of Reorganization under
Chapter 11 of the United States Bankruptcy Code.

Sanyo and ABS each sought protection under Chapter 11 on May 28,
1999. The Joint Plan, if confirmed by the United States
Bankruptcy Court presiding over the cases, will resolve the
outstanding claims against Sanyo and ABS and will eliminate more
than $8 million of debt. The Plan of Reorganization provides for,
among other things, the unsecured creditors of the two
subsidiaries to receive warrants to purchase 25% of the issued
and outstanding stock of the Company, at $.25 per share. The
unsecured creditors will also have one seat on the Company's
Board of Directors. The implementation of the reorganization plan
will not affect the parent Company's operations and those of its
California based subsidiary, WAWD, Inc.

Brake's subsidiaries are continuing to significantly reduce fixed
overhead, as well as selling, general and administrative
expenses, in order to consolidate operations, and improve
internal efficiency. Over the past several months, the
subsidiaries reduced their operating facilities, from seven (7)
to three (3), returning to a master warehouse concept
concentrating a majority of its operations at their 106,000
square foot distribution center and corporate headquarters in
Perth Amboy, New Jersey. Brake is continuing to focus its
efforts on the growth of sales of its higher margin product
lines.

Founded in 1976, Brake Headquarters USA, Inc. is a wholesaler and
distributor of automotive brake system products and other
component parts for domestic and foreign cars and light trucks.
bankruptcy; its ability to consolidate and reduce the Company's
overhead; intense competition; the Company's dependence on the
automotive industry, which is cyclical; historical decreases in
internal growth rates; the Company's ability to manage growth;
and other risks detailed in the Company's periodic filings with
the Securities and Exchange Commission.   


CHS ELECTRONICS: May Be Headed For Bankruptcy
---------------------------------------------
The Broward Daily Business Review reports on March 20, 2000 that
CHS Electronics Inc., the multibillion-dollar Miami-based
computer distributor that was once a darling on Wall Street, may
be headed for bankruptcy court.

The company, which reported assets of $ 1.4 billion in its latest
financial report, had been working toward pulling out of its
financial doldrums by getting stockholders and bondholders to
approve the sale of its European subsidiaries to a group led by
its former chief operating officer, Mark Keough.

A shareholders proxy vote on the transaction had been scheduled
for March 22, but now it appears the vote will not take place.
Individual shareholders could not be reached for comment, but CHS
chat sites are replete with speculation as to why proxy voting
documents have never been mailed, making it highly unlikely
the vote will take place Wednesday.

Instead, CHS may be preparing for a Chapter 11 bankruptcy filing,
which it has warned would be necessary if the sale were blocked.
The filing would virtually eliminate the company's stock value to
its nearly 500 shareholders.

CHS's preliminary proxy filed with the SEC states that if the
proposal to sell the company's European units is not approved by
shareholders, CHS will have to file for bankruptcy.

The proxy statement, filed Jan. 7, states that if that happens,
shareholders will be wiped out. In a bankruptcy proceeding it is
unlikely that there would be any assets remaining for common
shareholders, the preliminary proxy states. As of Feb. 1, CHS,
which had losses of more than $ 370 million in 1999, had some
492 shareholders of record, who controlled 71.1 million
outstanding shares.

The company says in its preliminary proxy that if the company is
forced to seek bankruptcy court protection it will still try to
sell off its European units, which had revenues of $ 2.8 billion
during the first nine months of 1999.

Just over a year ago, CHS, which had sales of $ 8.5 billion in
1998, was one of South Florida's hottest public companies. Its
stock hit $ 25 a share in 1998, making its chief executive,
Claudio Osorio, who owns 7.7 percent of the company's shares,
worth well over $ 130 million.

Because of its inability to pay its bills, CHS states in its
proxy statement that it cannot provide any assurance that holders
of outstanding notes or its other creditors will forbear from
exercising their right to file an involuntary case against CHS or
its subsidiaries.

Moodys Investors Service has given CHS bonds a rating of Ca.
Moodys bond analyst Howard Sitzer says that means the bonds could
be worth between 15 and 40 cents on the dollar. But Sitzer says
its possible Moodys would downgrade CHS bonds further if it
files for bankruptcy protection.


DEVLIEG-BULLARD: Asset Sale Talks Start
---------------------------------------
DeVlieg-Bullard Inc. of Twinsburg has begun negotiations to sell
all or most of its assets.

The machine tool manufacturer, which has been operating under
Chapter 11 bankruptcy protection since last summer, received
approval late last month from the U.S. Bankruptcy Court in Akron
to sell its machine tool plants in Ohio, California, Illinois,
Michigan and Pennsylvania.

"Discussions have begun, and if the right buyer comes along at
the right price, then we'll sell the whole company," said Sean
Malloy, an attorney with McDonald, Hopkins, Burke & Haber Co.
LPA, the Cleveland law firm representing DeVlieg-Bullard in the
bankruptcy case. "But if a deal isn't there, then we may
sell this on a piecemeal basis."

Though DeVlieg-Bullard has been searching for a buyer for several
months, the search has intensified in recent weeks, Mr. Malloy
said. The reason is that time is running out on DeVlieg-Bullard's
so-called "exclusivity period," in which creditors are barred
from filing reorganization plans until the company files
its own plan. The exclusivity period is set to expire March 31.

DeVlieg-Bullard plans to ask the Bankruptcy Court to extend this
exclusivity period, but Mr. Malloy insists the company's legal
team "isn't taking any chances" in case the court doesn't approve
an extension.

DeVlieg-Bullard has been paring back its operations since it
filed for Chapter 11 last July.

The company that month sold its 600,000-square-foot plant at East
131st Street and Coit Road in Cleveland and moved most of the
equipment from that site to its manufacturing plant in Twinsburg.
Last October, the company sold its Powermatic division, based in
McMinnville, Tenn., which produces hand saws and other
woodworking equipment.

Those selloffs have paid immediate dividends. DeVlieg-Bullard in
January generated a net operating profit of nearly $30,000 on
sales of $3.75 million, according to the most recent figures
filed by the company with the Bankruptcy Court. January was the
company's first month with a net operating profit since it filed
for Chapter 11.

DeVlieg-Bullard could face an uphill battle trying to solicit
attractive bids for the company, said Todd Peter, a turnaround
expert and president of Redline Investment LLC, a Cleveland-based
buyout group that looks to buy struggling manufacturing companies
in Northeast Ohio.

Almost half, or $43 million, of the company's $94.5 million in
assets are listed as so-called "intangibles" as of the end of
January, according to information filed with the Bankruptcy
Court.


DIAGNOSTIC HEALTH SERVICES: Files for Protection From Creditors
---------------------------------------------------------------
Diagnostic Health Services, Inc. (OTCBB:DHSM) announced that it
has filed for protection under Chapter 11 of the federal
bankruptcy laws in the United States Bankruptcy Court in Dallas,
Texas. The filing was necessary to permit the Company to continue
normal operations while it continues to restructure its
operations and its balance sheet to provide increased viability
in the changing healthcare industry.  At present, the Company
considers that its common stock has essentially no value.

Diagnostic Health Services, Inc. is a leading provider of medical
outsourcing services to hospitals and other healthcare
facilities. Diagnostic Health Services provides radiology and
cardiology diagnostic services and equipment to healthcare
facilities on an in-house and shared basis. The Company operates
in 17 midwestern, western and southern states.


ENTEX INFORMATION: Siemens Enters Acquisition Agreement
-------------------------------------------------------
Siemens has announced that it has entered into an agreement to
acquire ENTEX Information Services, Inc. of Rye Brook, NY. Upon
closing the combined operations will be one of the strongest
independent IT service providers in North America, with worldwide
revenues of nearly $2.2 billion
and approximately 13,000 employees.

The acquisition marks an important step in Siemens' IT Service
strategy to establish a truly global information technology
consulting and infrastructure support business focused on helping
customers migrate to and gain maximum advantage from rapidly
advancing mission critical and e-business technologies.  Closing
is subject to regulatory review and the expiration of applicable
antitrust waiting periods.

The new company "ENTEX IT Service, a Siemens Company" will be
formed by merging the Siemens IT Service entity in North America
with ENTEX Information Services Inc.  John McKenna, currently
ENTEX's CEO, will assume the same position in the new company.

ENTEX Information Services, Inc. is a leading provider of
distributed computing infrastructure services to Fortune 1000
companies and other large, information intensive businesses.
ENTEX has annual sales of approximately $484 million (as of
fiscal year-end 1999) and employs approximately 5,000 technical
professionals in over 50 sales and service locations throughout
the U.S.

Siemens IT Service GmbH & Co. OHG had revenue of $1.7 billion in
the 1998/99 business year. The Munich-based company is the second
biggest supplier of IT services in Europe; provides services in
over 100 countries and employs 8,000 specialists worldwide.

Siemens IT Service is part of the Information and Communications
business segment of Siemens AG, a global powerhouse in electrical
engineering and electronics with more than $75 billion in sales.  

Information and Communications consists of three groups:
Information and Communication Networks (59,000 employees, $13
billion sales), Information and Communication Products (33,000
employees, $11 billion sales) and Siemens Business Services
(21,000 employees, $4 billion sales).

Siemens IT Services USA, headquartered in San Jose, Calif.,
currently pursues two lines of business: a UNIX/Windows NT
client-server mission-critical computing consulting business; and
support services for UNIX data center infrastructure and point-
of-sale equipment.

Siemens is an industry leader in telecommunications; energy and
power; lighting and precision materials; industry and automation;
and healthcare, and a key player in microelectronics and
components; transportation; information systems and other
products. Siemens AG, based in Berlin and Munich, is one of the
world's largest electrical engineering and electronics companies
and employs approximately 443,000 people in 193 countries.

ENTEX and ENTEX Information Services, Inc. are trademarks or
registered trademarks of ENTEX Information Services, Inc.

For full details of the consideration to be received in the
merger access http://www.sec.gov/cgi-bin/srch-edgar?0000950162-
00-000404 on the Internet, free of charge.


FILENE'S: Value City Announces Completion of Acquisition
--------------------------------------------------------
Value City Department Stores, Inc. (NYSE: VCD) announced the
completion of the Filene's Basement Corp. asset acquisition,
effective March17, 2000.  The assets were acquired by Value
City's wholly owned subsidiary, Base Acquisition Corp., which
also assumed certain Filene's Basement liabilities.  Base
acquisition has been managing the assets, since February 2, under
an agreement approved by the U. S. Bankruptcy Court, in Boston,
following Filene's Basement's Chapter 11 filing in August of
1999.  

Value City, through Base Acquisition, will continue to operate
the remaining 14 Filene's Basement stores, but will liquidate the
eight remaining Aisle 3 stores.  On April 13th Value City will
re-open three former Filene's Basement stores in the Washington,
D. C. area.  These stores are located in the National Press
Building (at 14th & "K"), on Connecticut Avenue (near
the Mayflower Hotel) and on Wisconsin Avenue in the Mazza
Galleria.  This acquisition was funded with a portion of the
proceeds from Value City's renewed and restated $300.0 million
revolving credit facility.  This facility has a three-year term,
ending March 15, 2003, bears a current borrowing rate of 200
basis points over LIBOR and replaces a $167.5 million facility
that would have matured in May of 2001.  The facility, which
also closed on March 17th, was co-underwritten by National City
Bank and Bank One.  

Simultaneously, Value City closed a $75.0 million Senior
Subordinated Convertible Loan issued by Prudential Securities
Credit Corp., LLC.  This loan has a current coupon equal to 250
basis points over LIBOR and was enhanced by a purchase agreement,
or "Put", from Schottenstein Stores Corp., Value City's parent
company, and for which Schottenstein Stores Corp. was paid a fee
of $1.5 million.  

As part of the refinancing, VCD retired the remaining $37.5
million balance, including interest, of its $50.0 million senior
unsecured private placement notes, otherwise due in December of
2003.  Further, the terms of the refinancing continue to subject
the company to certain restrictive covenants and performance
tests. Value City Department Stores, Inc. is a leading off-price
retailer, currently operating 111 full-line department stores in
the mid-west, mid- Atlantic and southeastern U. S. as well as 58
better-branded, off-price DSW Shoe Warehouse stores in major
metropolitan areas throughout the country.
    
                                                   
FRONTIER INSURANCE CO.: S&P Lowers Supported Medium-Term Note
-------------------------------------------------------------
Standard & Poor's lowered its long-term rating on the Frontier
Insurance Co.-supported medium-term note issue to double-'B'-plus
from triple-'B'-plus.

The implied short-term rating of the note issue is lowered to
single-'B' from 'A-2', accordingly. At the same time, the issue
has been placed on CreditWatch with negative implications. The
$10 million Celebration 2000 Funding LLC issue was affected,
Standard & Poor's said.


GULF STATES STEEL: Motion To Extend Exclusivity Granted
-------------------------------------------------------
Gulf States Steel Inc. has been operating as a debtor-in-
possession.  As such, the company filed a motion to extend the
exclusive period to file a plan of reorganization to April 30,
2000.  On February 28, 2000, the motion to extend the exclusive
filing time period for the company was granted by the Bankruptcy
Court.

In connection with a plan of reorganization, the company
anticipates that the holders of the First Mortgage Notes will
receive equity in exchange for the First Mortgage Notes. It is
also anticipated that lenders providing exit financing to the
company will be issued equity as an incentive for providing exit
financing.

The company reports quarterly revenues of $87,258 for the quarter
ended January 31, 2000, with net loss of $10,443.  In the same
quarter of 1999 revenues were $74,623 and net loss $11,845.


HARNISCHFEGER INDUSTRIES: Reports Lower Revenues and Net Loss
-------------------------------------------------------------
Having filed for Chapter 11 bankruptcy protection in June of last
year Harnischfeger Industries Inc. is operating their businesses
as debtors-in-possession. From time to time since the Chapter 11
filing, the Bankruptcy Court has approved motions allowing the
company to reject certain business contracts that were deemed
burdensome or of no value to the company.

As of March 16, 2000, the debtors had not completed their review
of all their prepetition executory contracts and leases for
assumption or rejection.

The company received approval from the Bankruptcy Court to pay or
otherwise honor certain of their prepetition obligations,
including employee wages and product warranties.  In addition,
the Bankruptcy Court authorized the company to maintain their
employee benefit programs.  Funds of qualified pension plans and
savings plans are in trusts and protected under federal
regulations.  The company indicates that all required
contributions are current in the respective plans.

February 29, 2000 was set as the last date creditors might file
proofs of claim under the Bankruptcy Code.  The company reports
that there may be differences between the amounts recorded in the
company's schedules and financial statements and the amounts
claimed by the company's creditors.  Litigation may be required
to resolve such disputes.

The company will continue to incur significant costs associated
with the reorganization.  The amount of these expenses, which are
being expensed as incurred, is expected to significantly affect
results while the company operates under Chapter 11.  In the
quarter ended January 31, 2000, the company's revenues were
$286,364 with a net loss of $17,546.  For comparison, in the same
quarter of 1999 the company's revenues were $266,599 and net loss
$16,399.


HARNISCHFEGER: US Trustee's Fourth Notice of Official Committee
---------------------------------------------------------------
As reported in Harnischfeger Bankruptcy News, Issue 21,
Bankruptcy Creditor's Service Inc., the United States Trustee
advises that Intelligroup, Inc. has resigned from the Committee,
as from February 1, 2000. Accordingly, pursuant to 11 U.S.C. Sec.
1102(a)(1) of the Bankruptcy Code, the U.S. Trustee appoints the
following entities to serve on the Committee of Unsecured
Creditors:

            1.   HSBC Bank USA, as Indenture Trustee

            2.   Conseco Capital Management, Inc.

            3.   Rockwell International Corporation

            4.   United Steel Workers of America, AFL-CIO

            5.   The First National Bank of Chicago ("FNBC")

            6.   National Westminster Bank Plc.

            7.   PNC Bank, N.A.

            8.   Suntrust Bank, Central Florida, National
                 Association, as Indenture Trustee

            9.   J. Weldon Cole


ICO GLOBAL: Seeks $75M Increase in Eagle River DIP Loan
-------------------------------------------------------
ICO Global Communications Services Inc. (ICOFQ) is seeking to
amend its $500 million debtor-in-possession credit agreement with
Eagle River Investments LLC to allow its bankrupt affiliate ICO
Global Communications (Holdings) Ltd. to borrow an additional $75
million. The additional funds would be used solely to pay certain
increased costs, according to the motion. ICO and its three other
bankrupt affiliates would guarantee and provide property to
secure Holdings' obligations for the increased costs.
(ABI 21-Mar-2000)


KCS ENERGY: Committee Taps Petrie Parkman as Financial Advisor
--------------------------------------------------------------
The official Committee of Usnecured Creditors of KCS Energy, Inc.
filed an application for authority to employ Petrie Parkman &
Co., Inc. as financial advisor to the Official Committee of
unsecured Creditors with the court on March 8, 2000.

Petrie Parkman shall receive a monthly advisory fee of $50,000.

In summary, the firm will review the debtors' business plan and
capital budget and will assist the Committee in developing a
perspective on the debtors' assets and operations.  The firm will
assist the Committee in formulating, considering, and proposing
various transaction structures to achieve the Committee's
objectives with respect to the reorganization; and will develop a
preliminary analysis indicating potential reference values of the
debtors.


LATTICE SEMICONDUCTOR: Annual Meeting Set for May 2, 2000
---------------------------------------------------------
The annual meeting of stockholders of Lattice Semiconductor
Corporation will be held at the company's corporate headquarters,
5505 NE Moore Court, Hillsboro, OR 97124, on Tuesday, May 2,
2000, at 1:00 p.m., Pacific Time, for the following purposes:

1.  To elect one Class II director, for a term of three years;

2.  To ratify the appointment of PricewaterhouseCoopers LLP as
independent accountants for the fiscal year ending December 30,
2000;

3.  To approve an amendment to the Certificate of Incorporation,
to increase the number of shares of common stock authorized to be        
issued; and

4.  To transact such other business as may properly come before
the meeting.

Only stockholders of record at the close of business on March 16,
2000 are entitled to vote at the meeting.


LOEHMANN'S: Seeks To Extend Exclusivity
---------------------------------------
The debtor, Loehmann's Inc. requests entry of an order extending
its exclusive periods in which to file Chapter 11 plan to and
including June 12, 2000 and to solicit acceptances thereto to and
including August 11, 2000.

This the debtor's third request for an extension of its exclusive
periods.  The debtor anticipates filing a reorganization plan
within the next week.  Extending the debtor's exclusive periods
will provide the debtor with sufficient time to fully review and
consider all comments to its drafty plan before filing the final
document and will provide creditors with sufficient time to
consider the proposed reorganization of the debtor.  The
Creditors' Committee, with which the debtor has worked
extensively in finalizing the plan's provisions, supports the
extension.


MORRIS MATERIAL: Reports Net Loss of $4.2 Million For Quarter
-------------------------------------------------------------
Morris Material Handling, Inc., a global provider of equipment
and services for industrial material handling, in announcing its
operating results for the first quarter ended January 31, 2000,
reports that net sales and EBITDA, exclusive of the gain on sale
of business, were $66.7 million and $1.4 million, respectively,
compared with $67.9 million and $3.3 million in the same period a
year ago. The company reported a net loss of $4.2 million for
the quarter, which included a $6.4 million pre-tax gain on the
sale of a Canadian subsidiary, as compared to a net loss of $3.0
million for the same period in the prior year.

The slight decrease in net sales for the first quarter of 2000
compared with the first quarter of 1999 was primarily due, the
company reports, to lower machine sales as a result of low
bookings in late 1999.

The decrease in EBITDA was primarily attributable to the lower
level of sales and lower margin rates reflecting market-pricing
pressure.  Selling, general and administrative expenses increased
as a result of the trademark license fee payable to Harnischfeger
Industries, Inc., increased goodwill amortization and
acquisitions. These items more than offset the impact of
cost reductions.

The company's bookings for the first quarter of the fiscal year
2000 was $77.3 million as compared to $63.1 million in the same
quarter in 1999.  The company's backlog of orders at January 31,
2000 was $88.0 million compared to $77.4 million at October 31,
1999.

Morris Material Handling was not able to meet certain financial
covenants contained in its Bank Credit Agreement for the quarter
ended January 31,2000 and anticipates that it will not meet them
in the foreseeable future. The company has entered into an
Amendment and Waiver under its Bank Credit Agreement.  Among
other matters, the banks have waived compliance with such
financial covenants, for the period from January 31, 2000 until
March 29, 2000, in order to permit the company to make additional
borrowings under its revolving credit facility above January 28,
2000, borrowing levels, up to $12.0 million during the period.

While the company continues to work with Donaldson, Lufkin &
Jenrette Securities Corp., as its financial advisor, to review
strategic alternatives, including a possible sale or
recapitalization of the company, there is no assurance as to the
outcome.

Morris has global operations on five continents and manufactures
a broad range of through-the-air cranes and hoists for material
handling. In addition, Morris has a network of locations to
distribute these products and provide service and support.


OWENS CORNING: Annual Meeting Set For April 20, 2000
----------------------------------------------------
The annual meeting of stockholders of Owens Corning will be held
at Owens Corning World Headquarters, One Owens Corning Parkway,
Toledo, Ohio, on Thursday, April 20, 2000 at 2:00 o'clock P.M.

  The meeting will be held for the following purposes:

1. To elect three directors to serve until the 2003 annual
meeting of stockholders and until their successors are elected
and qualified;

2. To consider a proposal to approve the action of the Board of
Directors in selecting Arthur Andersen LLP as independent public
accountants for the year 2000;

3. To consider a stockholder proposal concerning classified
board; and

4. To transact such other business as may properly come before
the meeting.

Only stockholders of record at the close of business on February
21, 2000 are entitled to vote at the meeting.


PENNCORP FINANCIAL: Objects To Transfer of Venue
------------------------------------------------
The debtor, PennCorp Financial Group, Inc. objects to the motion
of National Bancshares Corporation of Texas and its subsidiary to
transfer venue of the case to the Northern District of Texas.

The debtor states that the Delaware forum is actually closer for
an overwhelming number of parties in interest who either reside
or operate out of New York City and surrounding areas and that
the transfer would actually cost the estate more in expenses.  
The debtors also object to the transfer in that it would stall
the progress of the case.  If venue is transferred, the debtor
believes that the sale hearing now scheduled for March 24, 2000
will be postponed, and that an expeditious conclusion to the
disposition of the debtor's assets, whether by sale or
recapitalization is critical to the preservation of value of the
stock of the debtor's subsidiaries - the only significant assets
of the debtor.


PENTASQUITOS CAR: Case Summary and Largest Unsecured Creditor
-------------------------------------------------------------
Debtor: Pentasquitos Car Wash, LLC
        9821 Carmel Mountain Rd.
        Pentasquitos, CA 92029

        Mailing Add:
        2898 Club House Dr.
        Costa Mesa, CA 92626

Petition Date: March 7, 2000   Chapter 11

Court: Southern District of California

Bankruptcy Case No.: 00-02332

Judge: James W. Meyers

Debtor's Counsel: Joy Barbieri
                  Barbieri & Barbieri
                  Attorneys at Law
                  10431 Newport Boulevard
                  Santa Ana, California 92705
                  (714) 573-9170

Total Assets: $ 1 million over
Total Debts:  $ 500 to 1 million

Largest Unsecured Creditor

Jeffrey T. Osborne          $ 60,000


PLAY BY PLAY: Secures Loan from Chairman; Cures Default
-------------------------------------------------------
Play-By-Play Toys  & Novelties, Inc. (Nasdaq: PBYP) today
announced the Company has cured its default in the payment of
interest due  under its Convertible Debentures, and improved its
liquidity  by obtaining  a  loan in the principal amount of  $2.5  
million from  the  Chairman of the Company.  The loan provides  
for interest  at  8% and  is secured by a  first  lien  on  the
Company's 1999 federal income tax refund and matures on or before
October 25, 2002.   The loan plus accrued interest is payable  
upon  receipt  by the Company  of  the  tax  refund proceeds.    
In the event of a shortfall between the outstanding loan amount
plus accrued interest and  the  tax refund  proceeds, the Company
is permitted to make limited payments of the difference to the  
Chairman with   the repayments  determined based on a cash
availability  formula under the Company's senior Credit Facility.

In addition, the Company's senior lender agreed to provide a
supplemental loan under the revolving line of credit in the
principal amount of $ 500,000 to the Company.   The supplemental  
loan must be repaid in weekly installments  of $100,000,  with  
the final maturity date being  seven weeks from  the  date of the
loan from the Chairman.  The Company and the senior lender
further agreed to reduce the maximum credit commitment under the
Company's Credit Facility from $60 million to $35 million, which
will result in savings  to the  Company  of  approximately
$62,000 per year in unused credit commitment fees.

Play-By-Play Toys & Novelties, Inc. designs, develops, markets
and distributes a broad line of stuffed toys, novelties and its  
PlayFaces line of sculpted toy pillows  based  on  its licenses  
for popular children's entertainment  characters, professional  
sports  team logos and  corporate trademarks.  The Company  also  
designs,  develops   and   distributes electronic  toys and non-
licensed stuffed toys, and  markets and  distributes a broad line
of non-licensed novelty items.  

Play-By-Play has license agreements with major  corporations
engaged  in the children's entertainment character business,
including  Warner  Bros.,  The Walt  Disney  Company, Paws,
Incorporated, Nintendo and many others, for properties  such as  
Looney Tunes, Winnie the Pooh, Batman, Superman, Scooby-Doo,
Mickey Mouse, Garfield and Pokemon.


PLAY BY PLAY TOYS: Reports Net Loss of $3.091M For Quarter
----------------------------------------------------------
Revenues for the quarter ended January 31, 2000, for Play By Play
Toys & Novelties Inc. were $27,501,228.  Net loss was $3,091,125.  
In the similar quarter ended January 31, 1999, revenues were
$28,431,797 and net loss $1,911,987.

In the six months ended January 31, 2000, the company had
revenues of $75,536,000 with a net loss of $1,937,120.  The same
six month period of 1999 saw revenues at $84,158,783 and net loss
at $485,760.

The company is negotiating with its Chairman, regarding obtaining
a loan from him in the principal amount of $2.5 million. If
consummated on the current proposed terms, the loan would provide
for interest at 8% and would be secured by a first lien on the
company's 1999 federal income tax refund and matures on or before
October 25, 2002. The loan plus accrued interest would be payable
upon receipt by the company of the tax refund proceeds.

The lender under the company's $60 million Credit Facility has
verbally agreed, conditioned upon the company receiving the $2.5
million loan from the Chairman on the terms described above, to
amend the Credit Facility to reduce the maximum credit commitment
to $35 million and the revolving loan limit to $32.6 million and
to provide for a supplemental loan under the revolving loan in
the principal amount of $500,000. The supplemental loan
would require repayment in weekly installments of $100,000, with
the final maturity date being seven weeks from the date of the
loan from the Chairman.


RED SEA OIL: Lundin Oil Announces Plan of Arrangement
-----------------------------------------------------
Lundin Oil AB is pleased to provide an update on the previously
announced acquisition of Red Sea by Lundin Oil AB pursuant to a
plan of arrangement.

Red Sea has scheduled a court hearing for March 24, 2000 with the
Ontario Superior Court of Justice for the purpose of obtaining an
interim order which would allow Red Sea to proceed with its
annual and special meeting of shareholders called to consider the
plan of arrangement for approval.  Provided that the interim
order is obtained, Red Sea will be mailing to its shareholders
a management information circular and proxy statement on or about
March 31, 2000.  The management information circular will include
a description of the plan of arrangement, prospectus level
disclosure regarding Red Sea and Lundin Oil and pro forma
financial information giving effect to the plan of arrangement.  
A letter of transmittal will be included in the mailing to Red
Sea shareholders.  Red Sea shareholders will be required to
complete and return the letter of transmittal together with their
share certificates in order to obtain Lundin Oil Series B shares
upon completion of the arrangement.

The annual and special meeting of Red Sea shareholders is
scheduled for May 4, 2000 at Red Sea's offices in Vancouver,
British Columbia.  Lundin Oil has also scheduled its annual
general meeting for May 4, 2000 in Stockholm Sweden at which
Lundin Oil shareholders will consider, for approval, the issuance
of additional Lundin Oil Series B shares pursuant to the
arrangement.  Provided that the requisite Red Sea and Lundin Oil
shareholder approvals are obtained, a court hearing will be held
on May 8, 2000 for the purpose of obtaining a final order
approving the arrangement.

Upon receipt of the final order, Lundin Oil will commence the
process of registering the new issuance of Lundin Oil Series B
shares in Sweden which is expected to take approximately 10 days.
Once the Lundin Oil Series B shares are registered, Articles of
Arrangement will be filed and Red Sea shareholders who have
completed and returned their letters of transmittal will receive
Lundin Oil Series B shares to which they are entitled.

The Lundin Oil Series B shares to be issued to Red Sea
shareholders will be represented by global depositary shares
("GDSs") evidenced by global depositary receipts ("GDRs").  The
GDSs trade on NASDAQ under the symbol LOILY.  The GDSs may be
converted into Lundin Oil Series B shares at any time upon the
payment of a fee to the GDR depositary, should the shareholder
wish to trade the shares on the Stockholm Stock Exchange where
Lundin Oil trades under the symbol LOILB.  The normal fee charged
is $0.05 per share, however, a special arrangement has been made
to reduce this fee for a limited time following completion of the
plan of arrangement.  Full information on the special fee
arrangement will be available through the GDR depositary and in
the management information circular of Red Sea.


ROBERD'S: Jackson National Life Provides $25M DIP Credit Facility
-----------------------------------------------------------------
According to Securities Data Publishing Private Placement Letter,
March 20, 2000, Jackson National Life Insurance Co. is providing
furniture and appliance retailer, Roberd's Inc. with a $25
million debtor-in-possession credit facility, according to a
Securities and Exchange Commission filing.

The company filed for bankruptcy protection under Chapter 11 on
Jan. 19, 2000, and hopes to refocus its operations on its Dayton,
Ohio and Atlanta-based stores.  The company closed operations in
Tampa, Fla., and Cincinnati.

The two-year credit facility allows for revolving credit to fund
ongoing working capital needs and provides for a sublimit of $3
million for standby and trade letters-of-credit.

Pricing is set at Libor plus 275 basis points.

The facility will be classified as long-term debt.

The company reported revenue of $287 million for 1999 with
furniture comprising 42% of sales. The company also sells
bedding, major appliances and consumer electronics.


SERVICE MERCHANDISE: Shareholders Outraged; Hire Attorney
---------------------------------------------------------
The Tennessean reports on March 18, 2000 that some Service
Merchandise shareholders, peeved at the company's plans to
cancel their holdings as it emerges from bankruptcy next year,
have hired Memphis lawyer John L. Ryder to represent them.

Ryder was hired this week by a group of Service Merchandise
shareholders scattered throughout the country.

The group has come together mostly through an Internet message
board at ragingbull.com, which provides an electronic forum for
discussions among investors of publicly traded companies.

According to the report, the stockholders are outraged over the
Brentwood-based retailer's announcement Feb. 22 that it would
cancel the company's common stock as part of its plan to emerge
from bankruptcy in 2001.


TULTEX: Seeks To Extend Exclusivity
-----------------------------------
The debtors, Tultex Corporation et al. seek an order extending
the period during which the debtors have the exclusive right to
file a plan or plans of reorganization by approximately four
months, through and including August 1, 2000, and extending the
period during which the debtors have the exclusive right to
solicit acceptances thereof through and including September 30,
2000.

The debtors assert that the size and complexity of the debtors'
cases by themselves pose a number of practical issues that
prevent the formulation of a plan or plans of reorganization or
liquidation.  The debtors remain engaged in the process of
downsizing their operations and implementing their strategic
liquidation plans.  The debtors are currently completing their
schedules of assets and liabilities and statements of financial
affairs.

                 *********

S U B S C R I P T I O N   I N F O R M A T I O N Troubled Company
Reporter is a daily newsletter, co-published by
Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard
Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler,
Edem Alfeche and Ronald Ladia, Editors.

Copyright 2000.  All rights reserved.  ISSN 1520-9474.

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