TCR_Public/971031.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R    
    
     Friday, October 31, 1997 Vol. 1, No. 49

                    Headlines

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ERD WASTE: Committee Seeks Accountants and Counsel
FRETTER: Proposed Sales of Indianapolis & Quincy Properties
KOENIG SPORTING: Seeks Extension to Assume or Reject Leases
MIDCON OFFSHORE: Motion for Sale of Substantially All Assets

MONTGOMERY WARD: Application to Retain KPMG Peat Marwick
MONTGOMERY WARD: Hearing on Assumption of Credit Agreements
MONTGOMERY WARD: Motion For Establishing Bar Dates
MONTGOMERY WARD: Seeks Assumption and Rejection of Contracts
MONTGOMERY WARD: Seeks Rejection of Real Property Leases

NETS: Seeks To Increase Authority of Argus
SMITH TECHNOLOGY: Trustee Objects to DIP Financing Order
STRAIGHT ARROW: Hearing to Approve Disclosure Statement

DLS Capital Partners: Bond Pricing

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ERD WASTE: Committee Seeks Accountants and Counsel
--------------------------------------------------
The Official Committee of Unsecured Creditors seeks approval  
by the Bankruptcy Court for the District of New Jersey of
the appointment of Arthur Andersen LLP as accountants and
Ravin, Greenberg & Marks, P.A. as counsel for the Committee.


FRETTER: Proposed Sales of Indianapolis & Quincy Properties
-----------------------------------------------------------
Fretter, Inc., has sought bankruptcy court approval to sell
a former store in Indianapolis to Mayhoff for $1.45 million
in cash with a deposit of $50,000 and breakup fee of $15,000
and a former store in Quincy, Massachusetts, to MRT for
$910,000 in cash with a deposit of $45,000 and breakup fee
of $15,000.  Both sale agreements are subject to higher and
better offers.

Hearings on the proposed sales will be held before judge Pat
Morgenstern-Clarren in U.S. Bankruptcy Court, Northern
District of Ohio, Eastern Division, on December 4, 1997.


KOENIG SPORTING: Seeks Extension to Assume or Reject Leases
-----------------------------------------------------------
A hearing will be held on November 6, 1997 on the motion of
the debtor, Koenig Sporting Goods, Inc., seeking to extend
the period for the debtor to assume, assume and assign, or
reject unexpired leases of nonresidential real property,
authorizing the debtor to reject such leases upon giving
seven days’ advance notice to the affected Landlord, and
granting related relief.


MIDCON OFFSHORE: Motion for Sale of Substantially All Assets
------------------------------------------------------------
The U.S. Trustee in the Midcon Offshore, Inc., bankruptcy
case, appointed after a sale of assets fell through due to
the intended purchaser’s failure to obtain financing, has
moved for a sale of substantially all of Midcon’s offshore
and gas properties (excluding the South Marsh Island field).
The sale of assets for an aggregate price of $27.5 million
to Saratoga Resources, Inc., would be effective as of
September 1, 1997. Saratoga will also assume and assign
certain executory contracts; others will be rejected.

On closing of the sale, Saratoga will pay approximately
$31.8 million to the Trustee by wire transfer or certified
or bank check.  With it, the Trustee will pay all
outstanding amounts under the DIP agreement with Long
Horizons, all outstanding amounts under the Volumetric
Production Payment agreement with Golden Gate, and all cure
obligations approved by the court that are due to the
Minerals Management Services. The Trustee seeks to
separately segregate the $1 million deposit from Saratoga
toward payment of court-approved fees and to set aside
$750,000 for administrative expenses.

The Trustee has moved for an expedited hearing on this
matter on November 7, 1997, in light of the fact that Midcon
has operated in negative cashflow since virtually the
petition date and its estate continues to lose money every
day that it operates its offshore oil and gas properties.


MONTGOMERY WARD: Application to Retain KPMG Peat Marwick
--------------------------------------------------------
The debtors and debtors in possession seek entry of an order
authorizing them to retain and employ KPMG Peat Marwick LLP
as their management consultants for retail operations.

Pursuant to the contract between them, Peat Marwick will be
paid not more than $343,000 plus expenses for services
rendered.

The debtors anticipate that Peat Marwick will render
consulting services with respect to the operations of
debtors’ stores and Romeoville distribution center as needed
throughout the course of these Chapter 11 cases.  The
primary objective of these services is to design solutions
that eliminate non-value added work from the stores and
distribution center, and to streamline and simplify the
remaining processes.


MONTGOMERY WARD: Hearing on Assumption of Credit Agreements
-----------------------------------------------------------
On November 24, 1997 The Court will hear the Motion of the
debtor, Montgomery Ward Holding Corp. et al. for the
assumption of agreements relating to Private Label Credit
Card Programs.


MONTGOMERY WARD: Motion For Establishing Bar Dates
--------------------------------------------------
On November 7, 1997 the Court will hear the motion of the
debtor for an order establishing Bar Dates for filing proofs
of claim and approving the form and manner of notice
thereof.

The debtors and debtors in possession seek to establish
March 2, 1998 as the last date for all creditors and certain
interest holders to file proofs of claim in these chapter 11
cases, establishing the later of the general bar date or 30
days after the entry of an order authorizing the debtors’
rejection of an executory contract or unexpired lease as the
bar date by which a proof of claim relating to the debtors’
rejection of such contract or lease must be filed, and
establishing the later of the general bar date or 30 days
after a claimant is served with notice that the debtors have
amended their schedules of assets and liabilities to reduce
the undisputed, noncontingent and liquidated amount, or to
change the nature or classification of a scheduled claim of
such claimant as the bar date for filing a proof of claim in
respect of such amended scheduled claims.


MONTGOMERY WARD: Seeks Assumption and Rejection of Contracts
------------------------------------------------------------
The debtors filed a motion seeking to assume certain
beneficial advertising executory contracts with particular
newspapers and rejecting certain burdensome advertising
executory contracts with other newspapers.

If objections are filed, a hearing will take place on
November 7, 1997.

For those contracts that the debtor wishes to assume, the
prepetition arrearages totaled $10,131,638.73.  The debtors
have negotiated cure payments in the sum of $5,605,772.67.


MONTGOMERY WARD: Seeks Rejection of Real Property Leases
--------------------------------------------------------
The debtors filed motions for orders authorizing the
rejection of two nonresidential real property leases, one
located in Emerald Square, North Attleboro, Massachusetts
and one located at Square One Mall, Saugus, Massachusetts.

The lessors in each instance agree to the rejection of the
leases.  The Surrender Date is November 15, 1997 for each
lease.

In exchange for Lechmere’s surrender of the premises, the
Lessor agrees to pay Schottenstein Bernstein Capital Group
LLC , the purchaser of all of the assets of Lechmere, $3
million with respect to the premises in North Attleboro,
Massachusetts, and $1 million with respect to the premises
in Saugus, Massachusetts.  Lechmere is responsible for the
payment of all rents and real estate taxes attributable to
the premises from July 8, 1997 through the Surrender date,
and Schottenstein shall reimburse Lechmere for all such
payments in accordance with the terms of the Asset Purchase
Agreement.

If objections are filed, a hearing will take place on
November 7, 1997.


NETS: Seeks To Increase Authority of Argus
------------------------------------------
In July, the debtor, Nets Inc., filed an application, with
the assent of the Official Committee of Unsecured Creditors,
seeking approval for the retention of Argus Management
Corporation as administrative agent in this case.

The Court later approved a motion to increase the maximum
sum payable to the agent to $50,000 from an original
$30,000.  The debtor now seeks authorization to add certain
additional administrative tasks to the responsibilities of
Argus, and to increase the maximum amount payable to
$70,000.  Specifically, the debtor is seeking assistance
researching and analyzing claims.


SMITH TECHNOLOGY: Trustee Objects to DIP Financing Order
--------------------------------------------------------
The U.S. Trustee assigned to the Smith Technology
Corporation Chapter 11 case has objected to the company’s
motion for DIP financing on the grounds that she has not
been served with the complete DIP motion and exhibits and
furthermore finds the final form of the order is
unnecessarily broad.

The Trustee also objects to the DIP lender being given a
lien on any avoidance actions and to the grant of a super-
priority administrative claim to the extent that other
collateral is being given. The Trustee also asks for a
reasonable “carve out” for fees and expenses of official
committees, the Clerk of the Court, and the U.S. Trustee,
and notes the carve out should be on parity with that
available to Smith’s professionals. The Trustee objects to
numerous other uses of language in the final order for DIP
financing and requests that the court deny it.


STRAIGHT ARROW: Hearing to Approve Disclosure Statement
-------------------------------------------------------
Straight Arrow Products, Inc., has given notice that a
hearing on approval of its disclosure statement is set for
November 20, 1997, before judge Thomas M. Twardowski in U.S.
Bankruptcy Court, Eastern District of Pennsylvania.
Objections must be filed in writing no later than November
14.


DLS Capital Partners: Bond Pricing
----------------------------------
Bond pricing information for the week of October 27, 1997
Indicated markets for the following:

Alliance Entertainment 11 1/4 ‘05  12-14(f)
Amer Telecasting 0/14 1/2 ‘04      36-39
Bradlees 11 ‘02                    6-8(f)
Brunos 10 1/2 ‘05                  52-53 1/2
Cityscape 12 3/4 ‘04               69-71
Computervision 11 3/8 ‘99          45-55
Dictaphone  11 3/4 ‘05             87-89
Flagstar 11 1/4 ‘04                44 1/2-46(f)
Grand Union 12 ‘04                 43-44
Harrah’s Jazz 14 1/4 ‘01           32-34(f)
Hechinger 6.95 ‘03                 75-77
Hill’s Department Store 12 1/2 ‘03 75-77
Home Holding 8 5/8 ‘03             34-37(f)
Levitz 9 5/8 ‘03                   34-36(f)
Liggett 11 1/2 ‘99                 65-68
Marvel 0 ‘98                       8 1/2-10
Mobilemedia 9 3/8 ‘07              21-23(f)
Mosler 11 ‘03                      70-76
Payless Cashways 9 1/8 ‘03         18-19(f)
Penn Traffic 9 5/8 ‘05             61-62
Stratosphere 14 1/4 ‘02            60-65(f)
Trump Castle 11 3/4 ‘03            93-94
Trump Atlantic City 11 1/4 ‘06     98-99
Wickes 11 5/8 ‘03                  94-95

It’s been a very volatile week with many issues trading off
4 or 5 points on Tuesday morning, following Monday’s stock
market rout.  Most recovered, although Computervision bonds
got hit 20 points.  Lots of Cityscape bonds were traded.

  
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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
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