TCR_Public/970916.MBX       T R O U B L E D   C O M P A N Y   R E P O R T E R

          Tuesday, September 16, 1997, Vol. 1, No. 17

                        In This Issue

COLOR TILE: Sale of Intellectual Property
CONTINENTAL SEATTLE: Loan on Seattle Tower Sold
DAUPHIN TECHNOLOGY: Plans to Acquire CADserv Corp.
EATON’S: Restructuring Plan’s Effect on Landlords
FLORIDA SUNSHINE: Seeks Extension to File

GUY F. ATKINSON: Final DIP Financing Determined
JINRO COORS: Coors Brewing Provides Financing
MERISEL: Debt Holders Sue for Breach of Agreement
MONTGOMERY WARD: Will Reward Key Workers Who Stay
PAYLESS CASHWAYS: Credit Card Company Agreements

PAYLESS CASHWAYS: Disclosure Statement Hearing Set
PAYLESS CASHWAYS: Proofs of Claim Date
SKEENA CELLULOSE: Prince Rupert Mill May Stay Open

                   -----

COLOR TILE: Sale of Intellectual Property
-----------------------------------------
Color Tile, Inc., intends to transfer, and assign to Distribution Services
L.L.C. all its intellectual property assets free and clear of liens for $1
million in cash. The assets include its names, marks, and logos and all
artwork; merchandising signs; pro motional material designs; lists of
suppliers, customers, and products; cost and sales history; and training
material. Excluded are franchise agreements, marks incorporating “Mrs.
Kays” and “Dial-A-Decorator,” and any of the forgoing used in the
operation of American Blind and Wallpaper Factory.


CONTINENTAL SEATTLE: Loan on Seattle Tower Sold
-----------------------------------------------
Continental Seattle Partners Limited Partnership purchased a 42-story
tower known as the Bank of California Center with a loan from Bank of
Tokyo in 1987.  The building has been enmeshed in bankruptcy proceedings
for four years since Continental Seattle s ought Chapter 11 protection.

A partnership formed by Walton Street Capital of Chicago, Walton Seattle
Partners L.P., has purchased the $60 million loan from Bank of Tokyo and
Sakura Bank for an undisclosed amount.

According to the Puget Sound Business Journal, the purchase suggests
Walton Street is positioning itself to become the owner of the
511,000-square-foot tower.

Walton Street principal Jeffrey Quicksilver said "It's subject to
reorganization, so we'll have to sit back and wait and see what the
liquidating agent does."  If the Norman Co., the building's court-appointed
liquidating agent, has not sold the building b y June 30, 1998, the court
will sell it at auction that day, according to the reorganization plan
submitted by Bank of Tokyo and approved two years ago by U.S. Bankruptcy
Court Judge Samuel Steiner


DAUPHIN TECHNOLOGY: Plans to Acquire CADserv Corp.
--------------------------------------------------
Dauphin Technology, Inc., announced plans to acquire CADserv Corporation,
an engineering and manufacturing services firm located in Schaumburg,
Illinois, Owned by Dauphin's CEO Andrew Kandalepas.  CADserv, a
multimillion dollar operation, contributed fina ncial support to
Kandalepas as he devised the plan that enabled Dauphin to vanquish over 50
million dollars of debt and emerge from Chapter 11.

Dauphin intends to acquire all issued and outstanding shares of CADserv
for a price determined by a third-party independent valuation company.
The transaction will be structured to include cash, notes, and/or
convertible notes.  Upon conclusion of due di ligence and the signing of
definitive agreements, CADserv will become Dauphin's second wholly-owned
subsidiary.

Kandalepas said, "The acquisition of CADserv will make a tremendous
contribution to Dauphin's overall commitment to become a technology
holding company whose subsidiaries interact synergistically.  If I focus
on the big picture, Dauphin's success is more important to me than my
individual success with the company I created and nurtured."


EATON’S: Restructuring Plan’s Effect on Landlords
--------------------------------------------------
Eaton's restructuring plan was given the go-ahead last week although
Cambridge shopping centres and Cavendish Shopping Centre in Montreal had
argued to recoup thousands of dollars in costs associated with losing
Eaton's stores as tenants.  Ontario Court J ustice Lloyd Houlden ruled
there was no reason to amend the plan that will begin paying banks,
landlords, suppliers and other creditors the $419 million they are owed
starting October 30.

Aside from approving the plan, Houlden extended Eaton's bankruptcy
protection from creditors until payments to them of a mixture of cash and
interest-bearing notes begin October 30.

An unusual extension was also given until June 30 to protect landlords
whose malls are losing Eaton's stores as anchor tenants.  This order will
block smaller chains from exercising their right to vacate stores if
Eaton's does.

Eaton's lawyer Lyndon Barnes also said he's expecting unhappy landlords to
seek leave from the courts to appeal the plan's approval.


FLORIDA SUNSHINE: Seeks Extension to File
-----------------------------------------
Florida Sunshine Rehab Limited Partnership seeks an extension to file its
schedules and statements of financial affairs. An order granting an
extension to September 12, 1997, was granted, however the company says it
is short-staffed and still in the proce ss of reviewing and compiling
information for its numerous facilities that is necessary to prepare the
schedules. It requests an additional 10 days, through and including
September 22, 1997, preparatory to the section 341 meeting set for
September 29.


GUY F. ATKINSON: Final DIP Financing Determined
-----------------------------------------------
Guy F. Atkinson company of California, has prepared a two-week budget with
Coopers & Lybrand that demonstrates a need to borrow $17.135 million from
bonding companies approved in the DIP Financing Agreement on August 25,
1997. The loan will cover expenditures expected on bonded projects and
about 91 percent of the general and administrative expenses of the debtor.
A 12-week budget for the period through October 31, notes approximately
$50 million owed on prepetition vendors and subcontractor debt on bonde d
projects -- those projects covered by surety bonds from Fidelity and
Deposit Company in Maryland and the American Insurance Group of Companies.


JINRO COORS: Coors Brewing Provides Financing
---------------------------------------------
Jinro Coors Brewing Co. of Korea will be bailed out through its joint
venture with Coors Brewing Co. of the United States, according to a Jinro
spokesman.

According to The Korea Herald, a delegation from Coors Brewing will be
arriving in Korea this month to meet with creditors and work out bailout
measures for Jinro Coors, which barely escaped insolvency by paying off
some promissory notes.

Jinro Coors is part of the Jinro Group that went bankrupt last week.
Creditors are expected to cooperate in salvaging the flagship company
Jinro Ltd. and Jinro Coors.

The American brewery giant is reportedly considering recapitalizing Jinro
Coors Brewing, its first overseas joint venture operation in which it has
a 33 percent stake, with approximately $200 million in foreign loans by
the end of the year to help normali ze operations.  Jinro Coors will
introduce self-help measures such as changing equity through the
additional issue of shares.


MERISEL: Debt Holders Sue for Breach of Agreement
------------------------------------------------
Merisel, Inc., debt holders have filed a lawsuit seeking more than $100
million, alleging the company breached its financial restructuring
agreement to give debt holders an 80 percent stake in the computer
wholesaler company, according to The Wall Street Journal.  The suit was
filed in Delaware Chancery court by holders of Merisel’s 12.5% notes.

At the center of the dispute is an agreement still awaiting shareholder
approval under which the debt holders would exchange their notes for about
120.3 million new shares of common stock in a move to keep Merisel out of
bankruptcy.

A July offer by New York Investment firm Stonington Partners, which
offered to acquire a 70 percent stake in the company for $152 million, was
rejected by bond holders.

A twice-postponed shareholder vote on the debt restructuring plan is now
expected to take place in mid-October.


MONTGOMERY WARD: Will Reward Key Workers Who Stay
-------------------------------------------------
Montgomery Ward Holding Co. says it hopes to persuade key managers and
salespeople to stay with the company through its bankruptcy reorganization
by offering them hefty bonuses and bigger severance packages.

A spokeswoman confirmed that a plan was filed with the federal bankruptcy
court that calls for rewarding key employees with bonuses as high as 75
percent of their annual salaries if they stay with the company through
December 1998.

Montgomery Ward will lose nearly 30 percent of its executives and 98
percent of its sales staff by the end of the year if the current pace of
attrition keeps up, the company said in the filing.  If all managers
stayed, it would cost Montgomery Ward about $17.6 million.


PAYLESS CASHWAYS: Credit Card Company Agreements
------------------------------------------------
Payless Cashways, Inc., wants to assume its merchant services agreements
with Discover Card Services, Inc., according to Bankruptcy Creditor’s
Service.  The agreement permits customers to use their Discover Cards to
purchase merchandise in the company's r etail stores and allows the
company to use the Discover Card and NOVUS logos in their promotional
materials.

According to the company, for the year ending June 31, 1997, customers
purchased over $66 million using their Discover Cards, netting the company
over $62 million after fees.  Payless believes that acceptance of the
Discover Card is integral to its busine ss and that it would be
competitively disadvantaged if it were to stop accepting the card.

Payless has three separate agreements with American Express Travel Related
Services Co., Inc., which provide employees with travel related services,
allow designated employees to pay for reimbursable personal business
expenses, and let customers use the A merican Express card to purchase
merchandise.  Payless would also like to assume the American Express
agreements, as it feels they are beneficial.


PAYLESS CASHWAYS: Disclosure Statement Hearing Set
--------------------------------------------------
Payless Cashways, Inc., will have a hearing before Judge Federman on
October 9, 1997, to consider the adequacy of the information in the
Debtor's First Amended Disclosure Statement dated September 5, 1997.


PAYLESS CASHWAYS: Proofs of Claim Date
----------------------------------------
The last day to file proofs of claim or interest is October 14, 1997, in
the Western District of Missouri, Western Division, Bankruptcy Court.


SKEENA CELLULOSE: Prince Rupert Mill May Stay Open
--------------------------------------------------
Skeena Cellulose and government, bank, and union representatives may work
out a restructuring plan to prevent the permanent closure of the
financially troubled Prince Rupert pulp and paper operation in northern
British Columbia, according to The Vancouver Sun.

The mill's annual payroll represents 40 percent of the local economy.
More than 3,000 mill workers, plus hundreds more employed in related
industries, have been out of work since June 27, when the company ran out
of operating money.

The Toronto Dominion Bank and Royal Bank have said they will close the
mill for good, unless an acceptable restructuring plan can be reached in
the next few days.

Premier Glen Clark said the banks, which are owed $482 million, must
absorb at least $300 million as a loss before the province chips in money
to the restructuring plan.  The province has promised to contribute $85
million, as a commercial loan over three years, as part of the
restructuring plan.

Clark said a deal could be reached by early next week.


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., Princeton, NJ, and Beard Group, Inc., Washington DC.  Debra Brennan and Rebecca A. Porter, Editors.

Copyright 1997.  All rights reserved.  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
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