TCR_Public/000412.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, April 12, 2000, Vol. 4, No. 72

                     Headlines

ABRAXAS PETROLEUM: Sells Group of Non-core Properties
ALTIVA FINANCIAL: Value Partners Reports Holdings
ASCENT ASSURANCE: Annual Meeting Set For May 11, 2000
BOSTON CHICKEN: U.S. Trustee Appoints Equity Committee
CALIFORNIA COASTAL COMMUNITIES: Annual Meeting Set For May 10

COMMERCIAL FINANCIAL: Extension of Exclusivity
CWT SPECIALTY STORES: Creditors To Employ Kronish Lieb Weiner
DIMAC: Wilmington Trust Clarifies Role in Dimac Bankruptcy
ENDICOTT JOHNSON: Seeks Extension of Exclusivity
FOAMEX INTERNATIONAL: Discussions with Potential Buyer Terminate

GENESIS DIRECT: Hearing on Adequacy of Disclosure Statement
GOLDEN OCEAN: Seeks Approval of Post-Petition Financing
GRAHAM FIELD: Completion of Closure of Warehouse Facility
HOMEMAKER INDUSTRIES: Operating Statement
INCOMNET: Entry of Order of DIP Financing

INNOVATIVE CLINICAL: Moody's Downgrades Ratings; Negative Outlook
LIBERTY HOUSE: Court Allows To Open New Line of Credit
LOEWEN: Discloses Uncertainty Regarding Status of Senior Notes
MARVEL ENTERPRISES: Value Partners Reports Holdings
MITSUBISHI HEAVY INDUS: Close to Boeing tie-up

NEW DEAL PROJECTS: Dismissal of Case
NORTHERN ORION: NORTHERN ORION: Debt Restructuring Progress
PRINCETON HOSPITAL: Lakeside Alternatives Fancies Purchase
READ RITE: Wisconsin Investment Board Reports Holdings
SABRATEK CORP: Seek Order Extending Exclusivity

SHELBY YARN: Judge's Ruling Permits Acquisition of Property
SITE TECHNOLOGIES: Hearing On Disclosure Statement
SKYWAY FREIGHT: Files Chapter 7 Petition
SUNBEAM: Credit Waivers Extended to April 14, 2000
TATNALL MEMORIAL: Patients To Look Elsewhere

THERMATRIX: Hearing on Appointment of Chapter 11 Trustee
TOBISHIMA CORP: Announces 22.8B Yen net loss for FY99
UNIVERSAL SEISMIC: Disclosure Statement Approved
VISTA EYECARE: Moody's Lowers Ratings

                     *********

ABRAXAS PETROLEUM: Sells Group of Non-core Properties
-----------------------------------------------------
Abraxas Petroleum Corporation reports the sale of a group of non-
core properties, the assets held by Abraxas Wamsutter L.P., as
well as certain other contiguous assets. Abraxas received
approximately $34 million in cash for its interests, subject to
certain post closing adjustments, further strengthening Abraxas'
balance sheet. The sale will result in Abraxas booking a gain in
the first quarter 2000 of $33 million with a corresponding
increase in book equity.

Proceeds will be used to fund Abraxas' 2000 capital expenditure
program which is focused primarily on horizontal exploitation of
existing properties. The company says the sale validates its
joint venture approach to non-core properties.

Abraxas owned a 1% interest in Abraxas Wamsutter L.P. which under
the terms of the partnership agreement, increased as certain rate
of return requirements of the L.P. were satisfied. As a result of
the sale, the receipt of Abraxas' back-in value for these
properties was greatly accelerated.

The sale included interests in 57 natural gas wells and gross
leasehold of approximately 15,000 acres. The properties are
located in Sweetwater and Carbon Counties, Wyoming. The buyer of
the properties is Samson Resources Company, a private Tulsa,
Oklahoma-based oil and gas company. Abraxas originally sold these
properties to Abraxas Wamsutter L.P. in November 1998.

Abraxas Petroleum Corporation is a San Antonio-based crude oil
and natural gas exploration and production company that also
processes natural gas. It operates primarily along the Texas Gulf
Coast, in the Permian Basin of western Texas, western Canada and
Wyoming.


ALTIVA FINANCIAL: Value Partners Reports Holdings
-------------------------------------------------
The latest acquisition of Value Partners Ltd. of Texas in holding
the common stock of Altiva Financial Corporation brings to an
aggregate 11,414,264 shares of the common stock of that
corporation.  Value holds the sole power to vote or dispose of
the shares which represent 56.2% of the outstanding shares of
common stock of Altiva.

Timothy G. Ewing personally holds 920 shares of Altiva's common
stock with sole powers.

Under an Amended and Restated Purchase Agreement, dated February
29, 2000, between Altiva and Value Partners, on February 29,
2000, Altiva issued and sold to Value Partners $14,000,000
aggregate principal amount of Amended and Restated 12% Secured
Convertible Senior Notes due 2006.  Value Partners paid for the
Restated Notes by paying the corporation $4,000,000 and
surrendering the $10,000,000 aggregate principal amount of Notes
previously acquired by it from the company. Value Partners funded
this payment from its working capital and the concurrent sale of
a participation interest in $5,500,000 aggregate principal amount
of the Restated Notes to T. Rowe Price, which paid for such
participation interest by paying Value Partners $2,000,000 and
surrendering to it the participation interests in the Notes
which it had previously purchased from Value Partners.

As a result of the approval of the issuance of common stock upon
conversion of the Restated Notes by the stockholders of the
company at an annual meeting of stockholders held on March 9,
2000 and the results of the Subordinated Notes Exchange Offer,
the holder of any Restated Note has the right, at the holder's
option, at any time before the maturity of the Restated Notes on
August 15, 2006, to convert the principal amount of any
such Restated Note, or any portion of such principal amount which
is $1,000 or an integral multiple thereof, into that number of
fully paid and nonassessable shares of common stock obtained by
dividing the principal amount of the Note or portion thereof
surrendered for conversion by $0.99 (subject to adjustment as
provided in the Restated Notes).

In light of the foregoing, pursuant to the rule under the
Exchange Act, Value Partners currently beneficially owns
8,585,858 shares of common stock which currently may be acquired
by it upon conversion of the principal amount of the Restated
Notes beneficially owned by it, which is calculated by dividing
$8,500,000 (the principal amount of Restated Notes beneficially
owned by Value Partners) by the current Conversion Price of
$0.99.  Value Partners disclaims beneficial interest in the
shares of common stock which may be acquired by T. Rowe Price
upon conversion of the $5,500,000 principal amount of Restated
Notes in which it has purchased a participation interest.

On March 17, 2000, the company consummated an exchange offer by
which the company exchanged $12,546,000 aggregate principal
amount of new 12% Secured Convertible Senior Notes due 2006 and
an aggregate of 6,225,534 shares of common stock for $29,520,000
aggregate principal amount of New Subordinated Notes (plus all
accrued but unpaid interest thereon). Value Partners exchanged
all $6,457,000 aggregate principal amount of New Subordinated
Notes beneficially owned by it (which included New Subordinated
Notes purchased in the open market subsequent to the Issuance
Date), plus all accrued but unpaid interest thereon, for
$2,744,255 aggregate principal amount of New Senior Notes and
1,361,732 shares of common stock.

The terms of the Restated Notes and the New Senior Notes are
substantially the same.

Ewing purchased in the aggregate 920 shares of common stock in a
series of transactions in the open market. The source of funds
for these purchases was the personal funds of Ewing.


ASCENT ASSURANCE: Annual Meeting Set For May 11, 2000
-----------------------------------------------------
The annual meeting of stockholders of Ascent Assurance, Inc. will
be held on Thursday, May 11, 2000 at 10:00 A.M., New York time,
at the offices of Milbank, Tweed, Hadley and McCloy LLP, 1 Chase
Manhattan Plaza, 54th Floor Conference Center, New York, New
York, for the following purposes:

(1)  To elect two (2) directors of the company, each to serve
for a term of three (3) years.

(2)  To ratify the selection by the Board of Directors, of
PricewaterhouseCoopers LLP as independent accountants.

(3)  And to transact any other business that properly arises.

Only holders of common stock of record at the close of business
on April 7, 2000 are entitled to notice of and to vote at the
meeting.


BOSTON CHICKEN: U.S. Trustee Appoints Equity Committee
------------------------------------------------------
Pursuant to 11 U.S.C. Secs. 1102(a)(1), U.S. Trustee on March 11,
2000 appointed the following equity holders, being among those
holding the largest equity claims and who are willing to serve,
to the joint committee of equity holders:

          1.   Atlantic Foods Corp.
               Attn: Hank Hugh
               860 Canal Street
               Stamford, CT 06902
               (203) 328-2135

          2.   Sandy Rappaport
               11015 N. Dale Mabry
               Tampa, FL 33618
               (813) 963-1399

          3.   BC Holdings, Inc.
               Attn: James Avgeris
               2500 S. Highland Ave., Suite 103
               Lombard, IL 60148
               (630) 620-8864

          4.   Finest, Inc.
               Attn: Bob Sirkus
               108 Nottoway Blvd.
               Dothan, AL 36301
               (334) 671-0338

          5.   BC Washington, Inc.
               Attn: Steve Quamme
               1133 20th Street, N.W.
               Washington, DC 20036
               (202) 887-9049

          6.   BC TKO, L.P.
               Attn: Chuck Reynolds
               c/o  Staten & Hughes
               312 Walnut St.
               Cincinnati, OH 45202

          7.   BC Chicago, Inc.
               Attn: Chuck Brickman
               100 S. Wacker Dr., Suite 1140
               Chicago, IL 60606
               (312) 236-6907

          8.   Neal Nelson
               330 North Wabash Avenue
               Chicago, IL 60611-3604
               (312) 755-1000


CALIFORNIA COASTAL COMMUNITIES: Annual Meeting Set For May 10
-------------------------------------------------------------
The annual meeting of stockholders of California Coastal
Communities, Inc., a Delaware corporation, will be held at the
Mellon Bank Building, 8 Loockerman Street, Dover, Delaware, on
May 10, 2000, commencing at 9:30 a.m. local time, to consider and
act upon the following:

(1) To elect five directors of the company, each for a term of
one year.

(2) To consider and vote upon an amendment to the company's
Amended and Restated Certificate of Incorporation to reduce the
number of authorized shares of common stock from 18,000,000 to
11,000,000, and to reduce the number of authorized shares of
Excess Stock from 18,000,000 to 11,000,000.

(3) To consider and vote upon the ratification of the appointment
of Deloitte & Touche LLP as independent auditors of the company.

(4) To transact such other business as may arise.

Holders of record of the company's common stock at the close of
business on April 10, 2000 will be entitled to receive notice of,
and to vote at the annual meeting.


COMMERCIAL FINANCIAL: Extension of Exclusivity
----------------------------------------------
The US Bankruptcy Court for the Northern District of Oklahoma
entered an order extending exclusivity for CFS and NGU to file
plans of reorganization through and including June 30, 2000.  The
exclusive periods for CFS and NGU to solicit acceptances tot heir
plans of reorganization are extended through and including August
30, 2000.


CWT SPECIALTY STORES: Creditors To Employ Kronish Lieb Weiner
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of CWT Specialty
Stores, Inc. seeks to employ Kronish Lieb Weiner & Hellman LLP as
counsel.

The Committee consists of the following members:

CIT Group/Commercial Services, Inc.
Jones Apparel Group
The Estee Lauder Companies
Liz Claiborne
Capital Factors
Finova Capital
Kellwood Company

The firm will provide the following services:

Attend the meetings of the Committee;

Review financial information furnished by the debtor to the
Committee;

Confer with the debtor's management and counsel;

Review the debtor's schedules and statement of affairs;

Advise the committee as to the ramifications regarding all of the
debtor's activities and motions before the court;

File appropriate pleadings on behalf of the committee;

Analyze and review accountant's work product and reports to the
committee.


DIMAC: Wilmington Trust Clarifies Role in Dimac Bankruptcy
----------------------------------------------------------
Wilmington Trust Corporation (NYSE:WL) was listed in several
reports as an unsecured creditor for $100 million in 12.5% notes.
In fact, Wilmington Trust Company, the principal subsidiary of
Wilmington Trust Corporation, is the indenture trustee for the
investors who own the notes.  As such, Wilmington Trust incurs no
financial loss from Dimac's filing.

"We want to clarify that Wilmington Trust has no credit exposure
to Dimac," said Ted T. Cecala, Wilmington Trust's chairman and
chief executive officer. "We want to emphasize that Dimac's
bankruptcy filing does not affect our balance sheet or bottom
line. Wilmington Trust's financial strength, stability, and
integrity remain intact."

A trust indenture is a formal agreement between an issuer of debt
securities, such as notes, and the indenture trustee, which acts
on behalf of the holders of the debt securities. It typically
covers such considerations as the form of the notes or other debt
securities, the size of the issue, protective covenants,
redemption rights, and default provisions. As indenture trustee,
Wilmington Trust administers certain provisions of the trust
indenture on behalf of the holders of the notes or other debt
securities, for which it is paid a fee. Wilmington Trust is a
leading provider of indenture trustee and other specialty
corporate financial services.

Wilmington Trust Corporation (NYSE:WL) is a financial services
company with offices in California, Delaware, Florida, Maryland,
Nevada, New York, Pennsylvania, and London. Its wholly owned bank
subsidiary, Wilmington Trust Company, is the 12th largest
personal trust provider in the United States. Founded in 1903,
Wilmington Trust provides wealth management, corporate trust,
and commercial banking services to clients throughout the U.S.
and in more than 50 other countries. For more information about
Wilmington Trust, visit www.wilmingtontrust.com.


ENDICOTT JOHNSON: Seeks Extension of Exclusivity
-----------------------------------------------------------------
The debtors, Endicott Johnson Corporation and its debtor
affiliates seek an order extending the exclusive period within
which the debtors may file their disclosure statement and plan of
liquidation and solicit acceptances thereof.

The debtor's GOB sales are scheduled to be completed no later
than April 30, 2000.  Pursuant to the GOB Sale Orders, the
debtors have sold their entire inventory to the liquidators
conducting the sales.  DJM Asset Management LLC is assisting in
the marketing of the store leases.  To date, the debtors have
received no offers to purchase the FF&E, but have received some
interest in the Trademarks.  The analysis of General Preference
Claims indicates that there is at least $890,000 in claims
against trade creditors for avoidance and recovery of transfers
made within the 90 days prior to the Petition Date.  The
Committee is analyzing and pursuing the Insider transfer Claims.

The debtors seek entry of an order extending the Exclusive Filing
period for approximately 90 days to and including July 14, 2000;
and the Exclusive Solicitation Period for approximately 90 days
to and including September 15, 2000.


FOAMEX INTERNATIONAL: Discussions with Potential Buyer Terminate
----------------------------------------------------------------
Foamex International Inc., North America's largest manufacturer
of flexible polyurethane and advanced polymer foam products,
reports that the company's discussions with a potential buyer of
all the company's outstanding common stock have been terminated,
with no agreement having been reached.

Marshall S. Cogan, Chairman, said, "The Board of Directors, with
the assistance of its financial advisors, will continue to
evaluate strategic alternatives in the best interest of all
Foamex shareholders."

Foamex, headquartered in Linwood, Pennsylvania, is the world's
leading producer of comfort cushioning for bedding, furniture,
carpet cushion and automotive markets. The company also
manufacturers high-performance polymers for diverse applications
in the industrial, aerospace, electronics and computer industries
as well as filtration and acoustical applications for the home.


GENESIS DIRECT: Hearing on Adequacy of Disclosure Statement
-----------------------------------------------------------
The hearing to consider the approval of the Disclosure Statements
filed by Genesis Direct Inc., et al. and The Edge Company
Catalog, LLC will be held before the Honorable Rosemary
Gambardella, US Bankruptcy Judge, at the US Bankruptcy Court for
the District of New Jersey, King Federal Building, 50 Walnut
Street, Newark, New Jersey on April 25, 2000 at 11:00 AM.  April
18, 2000 is fixed as the last day for filing and serving written
objections to the Disclosure Statements.


GOLDEN OCEAN: Seeks Approval of Post-Petition Financing
-------------------------------------------------------
The debtors, Golden Ocean Group Limited, et al seek court
authority to obtain $5 million post-petition financing from
Frontline Ltd. or its designees, granting security interests and
granting additional relief.

The debtors' corporate overhead costs are currently accruing at
an average rate of approximately $430,000 per month, even after
the debtors have reduces such costs to 40% below the previous
year.  The debtors project that their cash needs during the next
two months will equal approximately $5 million.


GRAHAM FIELD: Completion of Closure of Warehouse Facility
---------------------------------------------------------
Graham-Field Health Products, Inc. (OTC: GFIHQ) a manufacturer
and supplier of healthcare products, announces the completion of
the closure of its GF Express Bronx warehouse facility.
Management identified that the need and utilization of this
warehouse facility, in light of the company's focus on its
quality proprietary product lines, could not be justified.
Product inventories and customer support functions have been
successfully transferred to the company's four regional
distribution facilities to ensure a seamless transition for
customers.

According to David Hilton, who was appointed Chief Executive
Officer in December 1999, "this is just one of many strategic
initiatives being undertaken to reengineer and restructure the
company as we work towards emerging from our voluntary Chapter 11
filing. I am pleased at the progress we have made as a company
since January and our actions to date have had the full support
of our creditors committee."

Graham-Field Health Products, Inc. is headquartered in Bay Shore,
New York and manufactures, markets, and distributes durable
medical equipment, medical/surgical supplies and furnishings from
operations situated in the United States, Canada, and Mexico.


HOMEMAKER INDUSTRIES: Operating Statement
-----------------------------------------
The debtor, Homemaker Industries, Inc. reports that for the
period January 31, 200 to March 4, 2000, the company had
disbursements of $1,654,000 and an operating loss of $1,481,000.


INCOMNET: Entry of Order of DIP Financing
-----------------------------------------
The US Bankruptcy Court, Central District of California, Santa
Ana Division, approved an extension of the DIP Financing of
Incomnet Inc. and its affiliate. The lender, Ironwood Telecom LLC
is granted authority to extend the post-petition financing to the
debtor until April 21, 2000.


INNOVATIVE CLINICAL: Moody's Downgrades Ratings; Negative Outlook
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings assigned to
Innovative Clinical Solutions, Ltd. The ratings affected are as
follows:

$100 million 6.75% convertible subordinated notes due 2003 from
B3 to Caa3

Senior implied rating from B1 to Caa1

Senior unsecured issuer rating from B2 to Caa2

The rating outlook is negative. ICSL provides single and multi-
specialty provider network management services, as well as
pharmaceutical services including clinical and economic research
and disease management.

The rating action reflects the company's declining revenue and
continued operating losses in recent quarters as ICSL has
transformed itself from a physician practice management company
into one focused on clinical studies and network management. The
restructuring, which has included significant divestitures of
non-core assets, has resulted in charges which have almost
completely eroded book equity. Moody's notes that based on recent
results, annualized revenue for the company's remaining
businesses is less than outstanding debt. Further, these
remaining businesses also continue to exhibit operating losses.

While it appears that the company currently has enough cash on
its balance sheet to meet its working capital and interest
obligations in the near term, it is unclear how the company will
improve profitability, finance growth going forward, or meet its
debt obligations over the longer term. The company has retained
an outside advisor to explore options regarding its capital
structure.

Innovative Clinical Solutions, Ltd., headquartered in Providence,
RI, provides services that support the needs of the
pharmaceutical and managed care industries.


LIBERTY HOUSE: Court Allows To Open New Line of Credit
---------------------------------------------------------
Liberty House, which has had a $ 50 million credit line since
shortly after it filed for bankruptcy protection in March 1998,  
receives bankruptcy court approval to open a new line of credit,
The Associated Press relates

U.S. Bankruptcy Judge Lloyd King approves a motion allowing the
retailer to pay $ 75,000 in initial fees for a one-year, $ 30
million credit line with Fleet Retail Finance.  

Although Liberty House has not drawn on its credit line, it says
it needs replacement credit to keep vendors from becoming anxious
about its ability to pay its bills, The AP recalls.


LOEWEN: Discloses Uncertainty Regarding Status of Senior Notes
--------------------------------------------------------------
The Loewen Group Inc. (TSE: LWN), stated on April 7, 2000 that
there is uncertainty as to the secured status of its 7.75% Series
3 Senior Notes, of which $125,000,000 in principal amount is
outstanding, 8.25% Series 4 Senior Notes, of which $225,000,000
in principal amount is outstanding, 7.20% Series 6 Senior Notes,
of which $200,000,000 in principal amount is outstanding, 7.60%
Series 7 Senior Notes, of which $250,000,000 in principal amount
is outstanding, and its 6.70% Pass-Through Asset Trust
Certificates, of which $300,000,000 in principal amount is
outstanding. In 1996, The Loewen Group Inc. and Loewen Group
International, Inc. entered into a Collateral Trust Agreement,
under which the Company granted security interests in certain
assets to secure its existing indebtedness.  The CTA also
permitted the securing of future indebtedness with the Pledged
Assets.  The CTA contemplated, among other things, the
registration of future indebtedness in a register maintained by
the collateral trustee.  Holders of future indebtedness or their
representatives were to effect this registration by delivering to
the collateral trustee Additional Secured Indebtedness
Registration Statements in a form set forth in the CTA.

Subsequent to the execution of the CTA, among other financings,
the Company issued the Series 3, Series 4, Series 6 and Series 7
Senior Notes and the PATS.  Pursuant to the agreements with
lender representatives in connection with those financings, the
Company has treated the related debt as secured under the CTA.  
The Company has recently been advised, however, that the Series 6
and Series 7 Senior Notes and the PATS were never entered into
the collateral trustee's register, and the Series 3 and
Series 4 Senior Notes were registered in the collateral trustee's
register indicating the correct maximum principal amount of the
Series 3 and Series 4 Senior Notes but stating that the
outstanding principal amount was $0. Under the terms of the CTA,
these circumstances give rise to uncertainty as to the secured
status of these securities.  The investigation and analysis of
this issue are continuing.  It is anticipated that the
uncertainty may not be resolved for several weeks.

The Company has confirmed that it satisfied its obligations under
the financing agreements to adopt appropriate corporate
resolutions and to deliver to lender representatives, at the time
of closing, Additional Secured Indebtedness Registration
Statements relating to the Series 3, Series 4, Series 6 and
Series 7 Senior Notes and the PATS. (Loewen Bankruptcy News Issue
21; Bankruptcy Creditors' Services Inc.)


MARVEL ENTERPRISES: Value Partners Reports Holdings
----------------------------------------------------
Value Partners, Ltd. beneficially owns 1,539,265 shares of the
common stock of Marvel Enterprises Inc. representing 4.6% of the
outstanding common stock of the company.  Timothy G. Ewing
beneficially owns 1,990 shares of common stock in Marvel
Enterprises.

On January 18, 2000, Value Partners received 27,841 shares of
Marvel's preferred stock as a dividend paid by the company.  
Consequently, as of March 27, 2000, Value Partners directly held
1,481,487 shares of preferred stock.  Each share of preferred
stock can be exchanged, at any time, by the holder, for 1.039
shares of common stock.

Also, as of March 27, 2000, Value Partners disposed of 2,019,876
shares of the company's common stock. Thus, Value Partners
beneficially owned 1,539,265 shares of common stock as of March
27, 2000. Value Partners has the sole power to vote and dispose
of the 1,539,265 shares of common stock beneficially owned by it.
Ewing & Partners, as general partner of Value Partners, may
direct the vote and disposition of the 1,539,265 shares of common
stock owned by Value Partners. Similarly, Mr. Ewing, as managing
general partner of Ewing & Partners, may direct the vote and
disposition of the 1,539,265 shares of common stock owned by
Value Partners.

Mr. Ewing has the sole power to vote and dispose of the 1,990
shares of common stock beneficially owned by him.  He does not
share the power to vote or to direct the vote of, or the power to
dispose or to direct the disposition of the 1,990 shares of
common stock owned by him.


MITSUBISHI HEAVY INDUS: Close to Boeing tie-up
-----------------------------------------------
Mitsubishi Heavy Industries Ltd. and Boeing Co. have started to
put the finishing touches on a comprehensive business alliance
that will place them in the leading position in the 20 trillion
yen global aerospace market, The Nihon Keizai Shimbun reported.

Mitsubishi Heavy is trying to reinforce its aerospace division as
a new profit center. The company expects a net loss of 136
billion yen in the fiscal year ended March due to sluggish
operation at its main operations, including power generators, and
to growing loss on overseas plant construction.

Under the deal, the Japanese and U.S. giants will cooperate in
research and development of next-generation satellites and
rockets, passenger-aircraft maintenance, and other areas.
Mitsubishi Heavy expects to use the pact to turn aerospace into a
pillar of its earnings, through its entry into the new
business of satellite production and its expansion of aircraft-
related businesses.

Meanwhile, Boeing is seeking competitive advantage over its
European rival Airbus Industrie by taking an aggressive stance in
the Asian market, which generates the largest demand for
passenger aircraft.  Mitsubishi Heavy President Takashi Nishioka
and Boeing Senior Vice President Alan Mulally on April 7 met in
Tokyo to confirm that the companies are headed toward a broad
alliance, sources close to the matter said.

The two companies reportedly have begun negotiating the final
stages of a deal in which Mitsubishi Heavy will participate in
the development and production of advanced satellites and rockets
from the conceptual stage, under the guidance of Boeing, and the
two companies will split the costs of such projects.

The deal is also expected to include joint development of
telecommunications satellites, and variations on Boeing's 747-400
superjumbo jet.

Mitsubishi Heavy last year decided to supply Airbus with wing
components for midsize aircraft. But after bolstering its ties
with Boeing, Mitsubishi Heavy will limit its ties with Airbus to
subcontract work. Mitsubishi Heavy is now also likely to hold off
on participating in the development of Airbus' A-3XX superjumbo
jet.

Mitsubishi projects sales of the aerospace division to increase
to 210 billion yen in fiscal 2003, up 40% from fiscal 1998.
(Nikkei  10-April-2000)


NEW DEAL PROJECTS: Dismissal of Case
------------------------------------
The US Bankruptcy Court, Southern District of New York, Judge
Burton R. Lifland, entered an order on March 29, 2000 dismissing
the Chapter 11 case of New Deal Projects, LLC.


NORTHERN ORION: NORTHERN ORION: Debt Restructuring Progress
------------------------------------------------------------
Northern Orion Explorations Ltd. announces recently that the debt
restructuring entered last year got all regulatory approvals and
is complete. Northern Orion was to maintain at least $ 1 million
positive working capital from March 31, 2000.  Miramar Mining
Corporation provided a waiver to Northern Orion as a result of
the progress, extending the working capital requirement to June
15, 2000.  

"We are very encouraged with the steps taken by Northern Orion to
date and have therefore agreed to give them more time to develop
a future independent of Miramar's support,'' Mr. Walsh says. "We
believe there is significant value in Northern Orion's core
properties and have been providing Northern Orion with the
opportunity to locate additional sources of funding, whether that
be through financing, partnerships or mergers, to bring value to
these assets.''


PRINCETON HOSPITAL: Lakeside Alternatives Fancies Purchase
-----------------------------------------------------------
Lakeside Alternatives, a nonprofit mental-health organization,
wants to buy shuttered Princeton Hospital and its auxiliary
buildings which contain about 140,000 square feet on a 33-acre
campus in a generally low-income neighborhood on the northwestern
edge of Orlando, The Orlando Sentinel reports.

The hospital which is under bankruptcy-court protection has 150
beds and Lakeside wants to return 24 of the psychiatric beds to
use, and to share much of the hospital's remaining space with
other community service organizations.


READ RITE: Wisconsin Investment Board Reports Holdings
------------------------------------------------------
The State of Wisconsin Investment Board reports holding  
6,938,344 shares of the common stock of Read Rite Corporation.  
The Board has the sole voting and dispositive power over the
stock, which represents 13.90% of the outstanding common stock of
the company.


SABRATEK CORP: Seek Order Extending Exclusivity
-----------------------------------------------
The debtor, Sabratek Corporation, et al. seeks court authority to
extend the period during which the debtors have the exclusive
right to file a plan approximately 120 days to August 14, 2000
and ext4endign the debtors' exclusive period to obtain
acceptances of any filed plan until October 13, 2000.

The debtors state that they have already made substantial
progress in these cases, and simply request a reasonable amount
of additional time to control the reorganization of the balance
of their business affairs.

The debtors are focusing on the sale, disposition or other
reorganization of the businesses of the remaining debtors.


SHELBY YARN: Judge's Ruling Permits Acquisition of Property
-----------------------------------------------------------
The Associated Press reports that U.S. Bankruptcy Court Judge
Marvin R. Wooten, allowed GMAC, bankrupt Shelby Yarn's primary
lender, to take over the former Shelby Yarn's three local plants
and warehouse and sell it to a company that may reopen the plant.
This will cut about $ 3.5 million off the estimated $ 9.5 million
that the company owes GMAC.

O. Max Gardner III, an attorney representing three former Shelby
Yarn workers who are suing the company, former CEO Sidney Kosann
and his wife, Norma Kosann, says GMAC has a potential buyer for
the plant, The AP relates.


SITE TECHNOLOGIES: Hearing On Disclosure Statement
--------------------------------------------------
On March 27, 2000, Site Technologies, Inc. filed a Plan of
Reorganization and Disclosure Statement.  A hearing will be held
on April 21, 2000 at 10:00 AM before the Honorable James R.
Grube, US Bankruptcy Court, 280 South First Street, Courtroom
3020, San Jose, California.  April 17, 2000 is fixed as the last
day for filing and serving written objections to the Disclosure
Statement.


SKYWAY FREIGHT: Files Chapter 7 Petition
----------------------------------------
Skyway Freight Systems, Inc. an interstate trucking company
headquartered in Watsonville, Calif., announced that it had filed
for protection from creditors under Chapter 7 of the United
States Bankruptcy Code on Friday, April 7, 2000.

Skyway's bankruptcy attorneys are Michael W. Malter, Esq. and
Julie H. Rome-Banks, Esq. of the Law Offices of Binder & Malter
of Santa Clara, California.  The case has been assigned case
number 00@51918 @ ASW@CZ@7 and is pending in the San Jose
Division of the Northern District of California Bankruptcy Court.

It is presently unclear whether there will be any funds to
distribute to Skyway employees and vendors. All outstanding and
future matters concerning Skyway should be directed to its court
appointed bankruptcy trustee, John W. Richardson of Soquel,
California.


SUNBEAM: Credit Waivers Extended to April 14, 2000
--------------------------------------------------
Sunbeam Corporation (NYSE: SOC) announced it has received an
extension of covenant relief and waivers of past defaults under
its $1.7 billion credit agreement until April 14, 2000, by which
date Sunbeam expects to complete a definitive agreement extending
such covenant relief and waivers for an additional year.

Sunbeam Corporation is a leading consumer products Company that
designs, manufactures and markets, nationally and
internationally, a diverse portfolio of consumer products under
such world-class brands as Sunbeam(R), Oster (R), Grillmaster
(R), Coleman(R), Mr. Coffee (R), First Alert (R), Powermate (R),
Health o meter (R) and Campingaz(R).


TATNALL MEMORIAL: Patients To Look Elsewhere
--------------------------------------------
This week, Tattnall Memorial, a 40-bed hospital will close its
doors, which was unanimously voted by its Board members, saying
to all of Georgia's 19,000 residents to find another place for
medical care, The Associated Press reports.  The hospital was
forced to close cause it was circled with debt and had only
enough money for its last week of payroll.


THERMATRIX: Hearing on Appointment of Chapter 11 Trustee
--------------------------------------------------------
A hearing in the case of Thermatrix, Inc. et al. will be held on
April 27, 2000, 10:30 AM, Ronald Reagan Federal Building and US
Courthous3e, 411 West Fourth Street, Room 5A, Santa Ana, CA to
consider and act upon the motion for appointment of a Chapter 11
Trustee.


TOBISHIMA CORP: Announces 22.8B Yen net loss for FY99
------------------------------------------------------
Tobishima Corp. (1805) announced Friday that it recorded
extraordinary losses of 30.1 billion yen for the fiscal year
ended March 31, and thus incurred a net loss of 22.8 billion yen,
a sharp change from its earlier forecast of a 200 million yen net
profit.

Beginning this fiscal year, new accounting rules require that
losses be recorded when the value of property held for resale has
eroded by more than 50%. However, Tobishima decided to book all
unrealized losses on its real estate inventory, resulting in a
charge of 8.4 billion yen.

The company also switched from cost-based accounting for its
securities to a system that uses the lower value of cost or
market value. The switch resulted in an additional loss of 8.4
billion yen. Tobishima recorded an allowance of 9.8 billion yen
for doubtful receivables.

Company President Shoichiro Ishihara says the firm has disposed
of all matters that could hold back earnings from its core
business. (Nikkei 09-April-2000)


UNIVERSAL SEISMIC: Disclosure Statement Approved
------------------------------------------------
The US Bankruptcy Court for the Southern District of Texas,
Houston Division, entered an order on March 27, 2000, approving
the Disclosure Statement filed by the debtor, Universal Seismic
Associates, Inc., dated March 3, 2000.  April 14, 2000 is fixed
as the last day for filing written acceptances or rejections of
the plan.  April 25, 2000 at 9:00 AM is fixed for the hearing on
confirmation of the plan.


VISTA EYECARE: Moody's Lowers Ratings
-------------------------------------
Moody's Investors Service downgraded the debt of Vista Eyecare,
Inc. The rating actions follow the company's April 5th filing for
protection under Chapter 11 of the U. S. Bankruptcy Code. The
following ratings were affected by Moody's action:

Senior implied rating to Caa3 from Caa1;

Rating on $125 million of senior notes and senior issuer rating
to Ca from Caa2;

Senior unsecured issuer rating to Ca from Caa3;

Rating on $25 million of secured bank debt to B3 from B2.

The new ratings reflect uncertainty of the recovery value on the
debt after the company's bankruptcy filing. Moody's believes that
Vista can have positive ongoing EBITDA after closing less
productive locations. The company currently operates 586 leased
locations and 322 stand-alone locations. Revenues and number of
locations ranks Vista among the top four eyecare chains operating
in the U.S. However, the expiration of the Wal-Mart leases (which
constitute the majority of the company's profitable leased
operation) over the next 8 years limits the value of recovery
from the sale or ongoing operation of the existing business.

On January 1, Vista had about $220 million of assets, of which
approximately half represented intangibles. Obligations included
about $20 million of bank debt, $124 million of senior notes, and
about $44 million of current liabilities. The rating of the bank
debt reflects the expectation that holders will fully recover
their principal value in bankruptcy. The bank debt is well-
secured by essentially all the tangible and intangible assets of
Vista, and outstandings have been limited by a conservative
borrowing base formula.

Vista Eyecare, Inc., headquartered in Lawrenceville, Georgia,
operates over 900 leased and stand-alone eye care locations,
largely in the Southern U.S. Revenues were $329 million in the
year ended January 1, 2000.


                     *********

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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.  Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR subscription rate is $575 for six months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Christopher
Beard at 301/951-6400.

                 * * * End of Transmission * * *