Federal Home Loan Bank of San Francisco repurchases two bonds from  
Orange County investment pool

  SAN FRANCISCO--Jan. 18, 1995--At the request of Orange
County's financial advisor, Salomon Brothers, the Federal Home Loan Bank of
San Francisco is repurchasing and retiring two structured bonds that were
issued on behalf of the Bank.
  The two bonds are wholly owned by Orange County and have a total par value
of $200 million.  The bank is simultaneously terminating the related interest
rate swaps that were used to hedge the bonds.
  "These transactions will not result in any economic loss to the Bank or its
shareholders, but will help the County reduce its losses on the bonds," said
Dean Schultz, president of the Federal Home Loan Bank of San Francisco.  "We
are pleased that we are able to accommodate the County's request."

           CONTACT: Federal Home Loan Bank
                    Amy Stewart, 415,616-2605

Phar-Mor and secured creditors agree on a plan of reorganization

  YOUNGSTOWN, Ohio--January 18, 1995--Phar-Mor Inc. today
announced that the company and its Senior Secured Lenders have reached
agreement on the principal terms for a plan of reorganization that will, upon
confirmation, allow Phar-Mor to emerge from Chapter 11 protection as a
publicly traded company.  The company said that it expects the plans will be
confirmed by the Court in April.
  "We are very pleased to present this plan to our creditors," said Phar-Mor
Chief Executive Officer Tony Alvarez.  "We believe it is fair to all and that
its approval evidences the success of our efforts to restore Phar-Mor to its
position as the leading deep discount drug store chain.  Our management has
worked for more than two years to overcome the damage created by the fraud,
and we have succeeded.  We have demonstrated that the Phar-Mor concept works,
and once we are out of Chapter 11, management will be able to focus its
attention on growth."
  Under the proposed plan, Phar-Mor's Senior Secured Lenders will receive: (i)
approximately $92 million cash; (ii) approximately $100 million in principal
amount of new senior notes payable in seven years and bearing interest at a
rate 5.25 percent above seven-year Treasury notes to be set prior to the
effective date; (iii) an additional $15 million in cash or new senior notes
(depending on whether proceeds from the sale of certain Phar-Mor assets are
received prior to the effective date of the plan); (iv) 85% of the Reorganized  
Company's new common stock (subject to adjustment based on the average trading
price for the new shares during a 30 day period beginning 30 days after the
effective date of the plan); plus, (v) depending on the Senior Secured
Lenders' actual total recovery using the average trading price during the
measurement period described above, interests in the proceeds from a
Litigation Trust that will be established and hold certain causes of action
Phar-Mor has asserted against various third parties, including its previous
auditors, Coopers & Lybrand.
  The company's unsecured creditors will receive; (i) cash of up to $30
million for allowed reclamation claims; (ii) 15% of the Reorganized Company's
new common stock (subject to increase based on the average trading price of
the stock during the 30 day measurement period); (iii) interests in the
proceeds from the Litigation Trust; and (iv) warrants to purchase
approximately 10% of the fully diluted shares of the Reorganized Company's new
common stock.
  Other Secured Lenders, who provided the financing for certain furniture,
fixtures and equipment used by Phar-Mor will receive new notes in a principal
amount approximately equal to the value of the equipment, payable over eight
years, bearing interest at 7% and secured by the collateral held by the
Reorganized Company.
  Current shareholders will receive interests in the proceeds from the
Litigation Trust.
  The reorganized company would have a seven-member board of directors that
would be composed of the company's Chairman, its CEO, four members selected by
the Secured Lenders and one member selected by the unsecured creditors.   It
is anticipated that Tony Alvarez will become Chairman of the Board and that
David Schwartz, currently Phar-Mor's President, will become Chief Executive
Officer following the reorganization.
  The company filed an Amended Plan of Reorganization today that incorporates
these provisions, as well as a Disclosure Statement, with the Bankruptcy
Court.  The company will request that a hearing on approval of the Disclosure
Statement be scheduled for mid-February, with a view towards confirming the
Amended Plan in April, 1995.
  Phar-Mor's EBITDA (earnings before interest, taxes, depreciation and
amortization) has increased steadily since the beginning of the turnaround.   
For the 26-week period ending Dec. 31, 1994, Phar-Mor's EBITDA was $33.6
million, compared with $24.9 million for the comparable 1993 period.  For the
year ended July 2, 1994, Phar-Mor had EBITDA of $52.7 million.
  Phar-Mor, headquartered in Youngstown, is a deep discount retail chain with
143 stores in 21 states.  On Aug. 17, 1992, Phar-Mor filed for protection
under Chapter 11 of the U.S. Bankruptcy Code.

    CONTACT: Robinson Lake Sawyer Miller
             Gary Holmes, 212/484-7736
             Robert Mead, 212/484-7736


      Reduction in Loss Estimate Due To Accounting Adjustments
            and Better than Anticipated Trading Results
      Orderly Restructuring of Portfolio Essentially Complete
  SANTA ANA, Calif., Jan. 18 /PRNewswire/ -- Orange County restructuring team
leader Thomas W. Hayes and the County's financial advisor Salomon Brothers Inc
reported today that the estimated loss of the Orange County investment
portfolio has been reduced to $1.69 billion from the original December 12,
1994 estimate of $2.02 billion. The $330 million reduction from the original
estimated loss is the result of accounting adjustments and trading successes.  
The specific adjustments include:
  -- Proceeds from securities sales that have exceeded the December 12
estimate by $36 million, attributable to well-received and successful auctions
of structured securities, as well as successful negotiations with various
government agencies.
  -- $92 million in previously unidentified securities, net of encumbrances.
  -- Recovery of $40 million in additional excess collateral due or collected
from collateral liquidations by dealers.
  -- Accounting adjustments based on a reconciliation by Arthur Andersen & Co
and a review by the California State Auditor of County records:
     -- Initial pool investments were $150 million higher than originally
     -- Additional cash of $310 million was identified.
  In reporting to the Orange County Board of Supervisors today, Mr. Hayes
said, "We are very pleased with the results of Salomon Brothers' excellent
trading and execution.  They have completed the auctions in an expeditious and
prudent manner that has significantly benefited the citizens of Orange County.
  "The restructuring of the investment pool is essentially complete, well
ahead of the original 90-day estimate.  We have successfully achieved our
objective of significantly reducing the interest rate exposure of the
investment portfolio and have reinvested the proceeds in a manner appropriate
for a fund of this type."
  Mr. Hayes noted that "the accounting adjustments reflect a need to
streamline and improve the accounting system to effectively manage and report
on the investment pool."
  Now that the restructuring of the investment pool has been successfully
completed, Mr. Hayes said he will return to his position as President of
Metropolitan West Securities on February 3, 1995.

                    County of Orange, California
              Presentation to the Board of Supervisors
                          Portfolio Update

                                                         January 18, 1995
                                                      Salomon Brothers Inc

  This report contains and is based on information provided by, or at the
request of, the Board of Supervisors of Orange County and Orange County, and
publicly available information, including information available from other
publicly available information sources.  Salomon Brothers Inc ("Salomon") has
not independently verified the accuracy of the information.  Salomon shall not
be responsible for the accuracy or completeness of the information and shall
not be liable to Orange County or any third party with respect to this
  The valuations provided are based on market information obtained from
secondary sources usually considered reliable.  The valuations are based on
assumptions as to such factors as Salomon reasonably believes are relevant,
such as interest rates, spreads, volatility, liquidity and orderly disposition
of assets.  The valuations represent our judgment as of the time they are
provided and are subject to change. The valuations do not necessarily reflect
prices at which the securities may actually be sold.
  /CONTACT:  Sandra Sternberg or Michael Kolbenschlag of Sitrick and Company,
714-834-4720 or 310-788-2850/

Weinglass Resigns; Shull is Chairman; Kenney is President

SOURCE: Merry-Go-Round Bankruptcy News, Issue No. 39, January 19, 1995.

In a press release, Merry-Go-Round Enterprises Inc. announced the
resignation of Leonard "Boogie" Weinglass as Chairman of the Board of
Directors.  Additionally, Mr. Weinglass will step down as a director.

Thomas Shull will assume the position of chairman and James Kenney will
assume the position of President.  Messrs. Shull and Kenney will both be
appointed to the Board of Directors.