TCR_Public/971021.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, October 21, 1997, Vol. 1, No. 43


AVTOVAZ: Lada Automaker Staves Off Bankruptcy
CINCINNATI MICROWAVE: Hines’s High Bid Trumped by Home Depot
COUNTY SEAT: Store Closings Approved
ELEK-TEK: Sale to Creative Computers Complete
ENVIRONMENTAL RECOVERY: Sale of Assets Authorized

LORCIN ENGINEERING: Nears End of Bankruptcy, Lawsuits
MASSIMO DA MILANO: Ooey Gooey Cookies Follow Bankruptcy
MOBILEMEDIA: MobileComm Agreement with Fry's Electronics
MOBILEMEDIA: Monthly Operating Report
SILAS CREEK: Hancock Fabrics to Acquire Northwest Fabric

Meetings, Conferences and Seminars


AVTOVAZ: Lada Automaker Staves Off Bankruptcy
AvtoVAZ, maker of Russia's Lada cars, has rescheduled its
$800 million in tax debt in a 10-year deal with the
government, according to Agence France Presse.  AvtoVAZ, one
of Russia's biggest tax debtors, had been threatened with
bankruptcy by the cash-strapped government, which put it on
a tax black list last July when First Deputy Prime Minister
Anatoly Chubais set up a special commission to hound tax

Russian Prime Minister Viktor Chernomyrdin signed a decree
rescheduling AvtoVAZ's 2,850-billion-ruble ($490 million)
debt to the federal budget and its 1,800-billion-ruble ($310
million) debt to regional budgets, company spokesman Vasily
Titov said. The company put up over 50 percent of its shares
as security against monthly $17 million repayments. The date
for the first payment has not yet been agreed.

"The government's decision ends all speculation about a
possible bankruptcy of the factory," Titov said, adding, "we
will have to, nevertheless, make enormous efforts to
strictly adhere to the timetable set out by the government.  
If AvtoVAZ fails to meet the repayments, the government can
auction the shares it holds."

The deal will help resolve doubts over the company’s future
cooperation with international partners, such as Germany’s
Opel GM and Finland’s Valmet, which signed deals in May
allowing AvtoVAZ to assemble 50,000 Opel Astras annually at
a new $60 million plant in Vyborg, near Saint Petersburg.

CINCINNATI MICROWAVE: Hines’s High Bid Trumped by Home Depot
Cincinnati Microwave, Inc., sold its plant and headquarters
at a wild auction in U.S. Bankruptcy Court before judge
Burton Perlman, according to the Cincinnati Post.

Retailing giant Home Depot bought the 177,000-square-foot
building and adjacent land in Deerfield Township for $4.9
million. The amount was agreed to last month in a tentative
contract between Home Depot and Microwave.

But Home Depot was not the highest bidder. That was Houston-
based real estate developer Hines Interests Limited
Partnership, which offered $5.3 million. Hines's bid would
have meant more money for Microwave's estate, but the
company declined in court to proceed with the purchase.

The Microwave-Home Depot purchase agreement prohibited Hines
from having 30 days to inspect the property before closing
the deal. Edmund Adams, an attorney representing Microwave,
argued it might jeopardize the sale of one of Microwave's
most valuable assets. "It gives Hines a 30-day window to bow
out of the purchase and we don't know if Home Depot is still
going to be around," Adams said.

In other asset sales, Microwave and The Disposition Group
are negotiating with Xsys New Media Group, a German company
that has already purchased Microwave's Surelink II
technology, over a licensing agreement between Disposition
and Xsys that would allow the sale of Microwave’s Surelink I
technology to Disposition.

COUNTY SEAT: Store Closings Approved
County Seat Stores, Inc., won a Dallas bankruptcy judge's
approval to close 75 more clothing stores as part of its
reorganization plan, according to the Rocky Mountain News.

The move brings to 300 the number of County Seat outlets
that have been closed to stem losses, lawyers for the
company said.

ELEK-TEK: Sale to Creative Computers Complete
ELEK-TEK, Inc., announced it has consummated its $29 million
sale to Creative Computers, Inc., pursuant to an order
entered on October 9, 1997, by the U.S. Bankruptcy Court for
the District of Delaware.  As a result, limited funds will
be available for distribution to general unsecured
creditors; no funds will be available for distribution to

The company has been notified by the National Association of
Securities Dealers (NASDAQ) that its common stock will be
delisted on Thursday, October 23, 1997.

ENVIRONMENTAL RECOVERY: Sale of Assets Authorized
Environmental Recovery Systems of Somerset, Inc., the long-
dormant plastics-recycling company, has had its sale of
assets authorized by Judge Joan N. Feeney of the
Massachusetts District of U.S. Bankruptcy Court, Boston,
according to the Providence Journal.

The sale, when completed, could bring some relief to the 300
people who claim they lost $10 million money investing in
the company, said bankruptcy court trustee Andrew G.
Lizotte.  Former company head John Silvia Jr. claimed about
$17 million in assets when he filed for bankruptcy last May,
including: $2.1 million of "tax carry forwards." These
options are transferable and could be used by a second
company to reap tax savings, Lizotte said.

Also included in the company's list of assets were $800,000
in unexplained partnerships and joint ventures; $8 million
in civil suits, legal malpractice claims, and antitrust
claims; $500,000 worth of proprietary plastics-recycling
technology; and about $5 million worth of plastics-
technology licenses.

Judge Feeney's motion also grants authority to sell ERSS
equipment, but a group of former investors in the plastics-
recycling company, sued and forced an auction of the
equipment in April at which it bought most of ERSS's
equipment for $50,000.

Silvia is challenging that sale, Lizotte said.

LORCIN ENGINEERING: Nears End of Bankruptcy, Lawsuits
Lorcin Engineering Co., Inc., a gun manufacturer in Mira
Loma, may be close to resolving its Chapter 11 bankruptcy
case and $21.6 million in lawsuits and product liability
claims, according to Business Press Ontario. Of that amount,
sill outstanding is a $15 million lawsuit by victims of gun

Lorcin filed for bankruptcy a year ago to hear all the
product liability claims in a single court, said Robert
Pitts, a lawyer representing the company.

So far, Lorcin has negotiated settlements with all but
"maybe three" of the more than 20 claimants, Pitts said,
adding he expects to reach settlement agreements with the
remaining creditors, or have their claims dismissed, over
the remainder of the bankruptcy case.

A hearing on the company’s reorganization plan is scheduled
for October 24.

Pitts said he hopes to convince the court to throw out the
$15 million claim by nearly two dozen victims of gun
violence, who have filed lawsuits known as “the Hamilton
claim” in U.S. District Court in New York against about 65
gun manufacturers in an attempt to hold them financially
responsible for gun crimes.

The plaintiffs argue that manufacturers should be held
liable for acts of gun violence in proportion to their
market share, but Lorcin counters that none of its products
are necessarily tied to the crimes cited by the Hamilton

The company plans to move for a dismissal of the claim as
early as October 28.

In 1993, Lorcin's peak sales year, the company had 125
employees and $14.7 million in revenue, but now has roughly
30 employees and anticipates annual revenue of about $4.3
million, according to court documents.

MASSIMO DA MILANO: Ooey Gooey Cookies Follow Bankruptcy
Massimo da Milano, Inc., has entered a marketing contract
with Basic Sales Management Corp. to distribute “Roz’ Ooey
Gooey Gourmet Cookies” under the Massimo’s label, with
projected sales of over $500,000 for November and December
and sales for 1998 expected to exceed $3 million.

Massimo’s emerged from bankruptcy on June 20, 1997, and has
brought in new management, closed all losing operations, and
retired almost all its prepetition debt. Prior to filing
Chapter 11, the company had losses of over $2 million. It
announced its results for the quarter ending June 30, 1997,
were sales of more than $700,000 and profits of about

MOBILEMEDIA: MobileComm Agreement with Fry's Electronics
MobileMedia Communications, Inc., d/b/a MobileComm, (a
wholly-owned subsidiary of MobileMedia Corporation)
announced it has signed an agreement with Fry's Electronics
to be the retail chain's exclusive provider of paging
equipment and services. Fry's Electronics is one of the
largest electronics chains on the West Coast.

MobileComm said the two companies have entered into a
renewable one-year contract and that MobileComm would begin
shipping product in October. MobileComm is one of the
largest providers of paging and personal communications
services in the United States. MobileComm offers local,
regional and nationwide coverage in all 50 states, reaching
markets of over 90 percent of the U.S. population, and in
the Caribbean. The company operates two one-way nationwide
networks and is licensed to operate two nationwide
narrowband PCS networks.

MOBILEMEDIA: Monthly Operating Report
MobileMedia Communications, Inc.’s consolidated statement of
operations for the month ended August 31, 1997, according to
Bankruptcy Creditors’ Service, listed net revenue of
$40,263,000, net loss of $16,576,000, total assets of
$1,433,390,000, and total liabilities and stockholders'
equity of $1,433,390,000.

SILAS CREEK: Hancock Fabrics to Acquire Northwest Fabric
In the ongoing Silas Creek Retail L.P. Chapter 11 cases,
Hancock Fabrics, Inc., announced it has agreed to acquire
from Silas 48 Northwest Fabrics & Crafts stores for
approximately $22.5 million in cash, pending approval of the
U.S. Bankruptcy Court in the District of Delaware.  
Substantially all of Silas’s remaining assets will be sold
to ABC Fabrics.

Hancock, a retail and wholesale fabric merchant, currently
operates 459 retail fabric stores in 33 states and supplies
over 100 independent wholesale customers.

Meetings, Conferences and Seminars

October 24-28, 1997
      Annual Meeting
         Breaker Hotel, Palm Beach, Florida
            Contact 1-312-857-7734

October 30-31, 1997
      13th Annual Farm, Ranch and Agri-Business
      Bankruptcy Institute
         Holiday Inn--Lubbock Plaza, Lubbock, Texas
            Contact 1-806-794-1215

November 13-14, 1997
      "The Changing Landscape for the Commercial Law
         Hermitage Hotel, Nashville, Tennessee
            Contact 1-615-259-1450

November 17-18, 1997
      Commercial Loan Workouts
         Chicago, Illinois
            Contact 1-800-831-8333

November 19, 1997
      1997 Annual Bankruptcy Law Update
         Suffolk County Bar Center, Hauppauge, New York
            Contact 1-516-747-4464

November 21-24, 1997
      77th Eastern District Meeting
         New York Marriott World Trade Center, New York

December 3-4, 1997
      4th Annual Conference on Distressed Debt
         Crowne Plaza Hotel, New York, New York
            Contact 1-800-599-4950

December 4-6, 1997
      Winter leadership Conference
         La Costa Resort & Spa, Carlsbad, California
            Contact 1-703-739-1060

December 5-6, 1997
      22nd Annual Bankruptcy Seminar
         DoubleTree Surfside Resort Hotel,
         Clearwater Beach, Florida
            Contact 1-813-562-7830

DECEMBER 10-11, 1997
      Investment Opportunities in Workouts & Turnarounds
         Downtown Conference Center, New York, New York
            Contact 1-212-661-3500

December 11-13, 1997
      9th Annual Advanced Court of Study,
      The Emerged and Emerging New Uniform Commercial Code
         Sheraton New York Hotel, New York, New York
            Contact 1-800-CLE-NEWS, ext. 1630

December 15-16, 1997
      Basics of Bankruptcy and Reorganization
         PLI Conference Center, New York, New York
            Contact 1-800-260-4PLI or

January 29-February 1, 1998
      37th Southern District Annual Meeting
         Plaza San Antonio, San Antonio, Texas
            Contact 1-972-285-0391

February 22-25, 1998
      12th Annual Norton Bankruptcy Litigation Institute I
         Olympia Park Hotel, Park City, Utah
            Contact 1-770-535-7722

March 26-29, 1998
      10th Annual Norton Bankruptcy Litigation Institute II
         Flamingo Hilton, Las Vegas, Nevada
            Contact 1-770-535-7722

May 22-25, 1998
      50th New England District Annual Meeting
         Ocean Edge Resort & Golf Club, Cape Cod,
            Contact 1-617-720-1355

July 2-5, 1998
      Western Mountains Bankruptcy Law Institute
         Jackson Lake Lodge, Jackson Hole, Wyoming
            Contact 1-770-535-7722

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to are encouraged.  


A listing of meetings, conferences and seminars appears
every Tuesday.

Bond pricing, appearing each Friday, is supplied by DLS
Capital Partners, Dallas, Texas.

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,
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Information contained herein is obtained from
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