TCR_Public/971111.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, November 11, 1997, Vol. 1, No. 56

                    Headlines

AMIRETCO, INC.: Disclosure Statement Approval Delayed
DOW CORNING: Supreme Court Rejects Second Appeal
EAGLE INDUSTRIES: First Amended Plan of Reorganization
EASTERN AIRLINES: Unsecured Recoveries Reach 8-1/2%
FARM FRESH: Bonds Default; PPM Sues; Prepack to be Filed

FLAGSTAR COMPANIES: Pre-Packaged Plan Confirmed as Modified
FLAGSTAR COMPANIES: Reorganized Debtor Adopts Advantica Name
HANDY ANDY: Another Million Dollars for Creditors
HARRAH'S JAZZ: Trustee's Motion to Convert Continued
MIDCOM COMMUNICATIONS: Files Chapter 11 Petitions

MIDCOM COMMUNICATIONS: Foothill Provides $10MM DIP Facility
MONTGOMERY WARD: Exclusivity Extended to May 2, 1998
MONTGOMERY WARD: Court Okays 47 Store Closings
PETRO UNION: Reverse Stock Split and Name Change
RAYTECH CORP.: Third Quarter Earnings Announced

STRATOSPHERE CORP.: Second Amended Plan Put on Table
STREAMLOGIC CORPORATION: Committee Says "Yes" to Plan
US ONE: $19 Million Raised from Sale to Allegiance

Meetings, Conferences and Seminars

                      -----

AMIRETCO, INC.: Disclosure Statement Approval Delayed
-----------------------------------------------------
To permit Amiretco, Inc., and its creditors' committee to
continue discussions and negotitations concerning the
Debtor's Plan of Reorganization, the United States
Bankruptcy Court for the District of Arizona has continued
the dislosure statement hearing to December 8, 1997.  Judge
Marlar also approved an agreement struck with the Debtor
permitting the Committee and each committee member
additional time to file disclosure-related objections if a
consensual plan is not successfully negotiated.  


DOW CORNING: Supreme Court Rejects Second Appeal
------------------------------------------------
Following a second attempt by the Tort Claimants' Committee
appointed in Dow Corning Corporation's chapter 11 case to
block the transfer of federal lawsuits pending against Dow
Corning's co-defendants to the United States District Court
for the Eastern District of Michigan in Detroit, the United
States Supreme Court has declined to entertain the TCC's
complaint.  The High Court issued its order without comment.  
Official Committee of Tort Claimants vs. Dow Corning Corp.,
Case No. 97-210.


EAGLE INDUSTRIES: First Amended Plan of Reorganization
------------------------------------------------------
Eagle Industries, Inc., dba Eagle Building Products, Inc.,
dba Eagle Building Products, has filed its First Amended
Plan of Reorganization and a Disclosure Statement in support
thereof, proposing a stand-alone plan of reorganization
funded by a Post-Emergence Working Capital Facility
underwritten by Fremont Financial Corporation.  

Under the Debtor's First Amended Plan, creditors are
classified and treated as follows:

Class    Class Description   Claim Pool  Treatment
-----    -----------------   ----------  ---------
Class 1  Administrative        $250,000  100% in Cash on the
         Claims                          Effective Date

Class 2  Administrative        $160,000  100% in Cash on the
         Operating Expenses              Effective Date

Class 3  Reclamation Claims          $0  100% in Cash on the
                                         Effective Date

Class 4  Wage & Benefit Claims  $54,561  Within 90 days
                                         following the
                                         Distribution Date

Class 5  Priority Tax Claims   $248,869  Paid in 72 monthly
                                         installments with
                                         9% interest

Class 6  NBD Bank, N.A.      $2,357,959  100% in Cash on the
                                         Effective Date

Class 7  Small Business        Unknown   60 monthly payments
         Administration                  with 6.36% interest

Class 8  KDAC Term Note        Unknown   24 monthly payments
                                         with 8% interest

Class 9  Unsecured Claims    $3,200,000  (I) 25% in Cash on
                                         the Distribution
                                         Date or (II) 52% in
                                         the form of a 15
                                         year, 9.75%
                                         Subordinate Secured
                                         Note

Class 10 Guaranty Claims      An amount  New Class 10 Notes
                              equal to    
                              the amount
                              of Class 9
                              claims
                              electing
                              Option II

Class 11 Equity Interests         N/A    Unimpaired


EASTERN AIRLINES: Unsecured Recoveries Reach 8-1/2%
---------------------------------------------------
Reorganized Eastern Airlines distributed another half-penny
to holders of claims in excess of $100,000 pursuant to its
Plan of Reorganization confirmed in 1995.  This fourth
distribution totaled $5.6 million, bringing recoveries to
8.5 cents-on-the-dollar by holders of general unsecured
claims greater than $100,000.  Claims of $100,000 and less
received 11 cents-on-the-dollar following confirmation.  
John J. Sicilian, president of Eastern, noted that the
company continues prosecution of several multi-million
dollar law suits and continues to dispose of its remaining
assets, making the amount and timing of future distributions
uncertain.


FARM FRESH: Bonds Default; PPM Sues; Prepack to be Filed
--------------------------------------------------------
Farm Fresh Inc. has slipped into default by not making the
October interest payment due under its 12.25% Senior Notes
due 2000.

PPM America Special Investments Fund L.P., holding $33.5
million of Farm Fresh's notes, filed its suit in New York
State Supreme Court.  "The company decided, very
capriciously as I see it, not to meet an obligation
with the creditor class that has been very supportive of the
Richfood acquisition," said Bradley Scher, managing partner   
of the private fund, which specializes in investing in
distressed corporate debt.  PPM America Inc. says that Farm
Fresh has declined PPM's invitations to provide financing.  
"They just didn't want to hear about it," Scher said.

Farm Fresh has been negotiating with Richfood Holdings,
Inc., for a sale of the company--and an infusion of capital
to make payment on the bonds--under the terms of
contemplated prepackaged plan of reorganization.  The
Company is working with an informal committee of bondholders
in negotiating this prepacked plan, and PPM America serves
on that committee.  The payment of the latest interest
installment appears to be the sticky issue for the parties.  


FLAGSTAR COMPANIES: Pre-Packaged Plan Confirmed as Modified
-----------------------------------------------------------
Flagstar Companies, Inc. (NASDAQ:FLST) obtained confirmation
of a revised plan of reorganization from Judge William
Bishop of the U.S. Bankruptcy Court in Spartanburg, South
Carolina, clearing the way for the company to emerge from
Chapter 11 in the next several weeks.  

Under the revised restructuring plan, the company's senior
subordinated debentures holders will receive 95.5% of the
common equity of the new company, and holders of the
company's 10% Convertible Subordinated Debentures due 2014
will receive 4.5% of the new common equity plus four million
warrants at a seven-year term, exercisable at $14.60 and a
board seat designated by their creditors' committee, subject
to certain terms and conditions.  The plan does not allocate
any distribution to common and preferred stockholders.  


FLAGSTAR COMPANIES: Reorganized Debtor Adopts Advantica Name
------------------------------------------------------------
In connection with its emergence from chapter 11 under its
confirmed plan, Flagstar Companies, Inc., will change its
name to Advantica Restaurant Group, Inc.

"The new name we have chosen is illustrative of our
progress.  Derived from the words 'advantage' and 'America,'
it conveys the competitive edge we are building in each of
our restaurant brands throughout the United States.  
Advantica serves America, with more than two million
customers visiting our restaurants daily," explained
James B. Adamson, Chairman and CEO.  

Additionally, the company has applied for listing of the new
common stock on the Nasdaq National Market under the trading
symbol "DINE."  


HANDY ANDY: Another Million Dollars for Creditors
-------------------------------------------------
Continuing to liquidate its estate for the benefit of
creditors, Handy Andy Home Improvement Centers, Inc., has
reportedly received a $1.1 million bid for its American Way
location in Memphis, Tennessee.  Benj. E. Sherman & Sons
Auction Services Group of Chicago auctioned the American Way
site along with five other Handy Andy properties in
Tennessee, Indiana, Michigan, Missouri and Ohio.  Still on
the auction block is Handy's Winchester site, expected to
fetch more than $1 million.  


HARRAH'S JAZZ: Trustee's Motion to Convert Continued
----------------------------------------------------
Judge Thomas Brahney III chose to defer consideration of the
U.S. Trustee's motion to convert Harrah's Jazz Co.'s on-
going chapter 11 cases to a liquidation proceeding under
chapter 7 until December 17, 1997, in order to permit
further development of a plan of reorganization by the
company's management.  


MIDCOM COMMUNICATIONS: Files Chapter 11 Petitions
-------------------------------------------------
MIDCOM Communications Inc. (NASDAQ:MCCI) announced Friday
that it has filed a petition for relief under
Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy
Court for the Eastern District of Michigan.  MIDCOM
indicated that it "will continue to pursue possible
investment and other strategic alternatives, including a
merger, partnership, or sale of the company," as previously
announced.

"Filing for protection from its creditors allows MIDCOM time
to continue investment and sales discussions that have
already begun,"  said William H. Oberlin, president and
chief executive officer for MIDCOM.  "We recognize that
it is important for us to be able to continue to serve our
customers, thereby protecting the on-going value of our
business, and we believe Chapter 11 will afford us the time
we need to thoroughly investigate and pursue the options
available to us."  

On October 31, 1997, the company announced that it did not
have sufficient resources to satisfy its current
obligations.

Related Chapter 11 petitions were also filed in the same
court for PacNet Inc., Cel-Tech International Corporation
and AdVal, Inc., all wholly owned subsidiaries of MIDCOM.  
The companies are being represented by Barbara Rom of
Pepper, Hamilton & Scheetz located in Detroit, Mich.


MIDCOM COMMUNICATIONS: Foothill Provides $10MM DIP Facility
-----------------------------------------------------------
In connection with the announcement of its chapter 11
filing, MIDCOM Communications disclosed that it has arranged
for debtor-in-possession financing from Foothill Capital --
MIDCOM's pre-petition lender -- for approximately $10
million.  The Company anticipates that this DIP Facility
will permit continuation of normal operations.  


MONTGOMERY WARD: Exclusivity Extended to May 2, 1998
----------------------------------------------------
Judge Walsh has granted Montgomery Ward an extension of its
exclusive period during which to file a plan of
reorganization through May 1, 1998 together with an
extension of its exclusive period during which to solicit
acceptances of such plan through June 30, 1998.


MONTGOMERY WARD: Court Okays 47 Store Closings
----------------------------------------------
Judge Peter J. Walsh has approved Montgomery Ward's request
to shutter 47 underperforming retail stores.  Following an
agreement reached last week between the Rouse Companies and
the Debtors, the Montgomery Ward store in Mt. Pleasant,
Illinois will remain open although it was originally slated
for closure.  Rouse agreed to various rent concessions which
the Debtors believe will make the store profitable going
forward.


PETRO UNION: Reverse Stock Split and Name Change
------------------------------------------------
Petro Union, Inc. (Nasdaq: PRTUQ) -- having adopted
Horizontal Ventures, Inc. (Symbol: HVNV) as its new
corporate name -- announced that, in accordance with the
Chapter 11 Reorganization Plan, approved by the United
States Bankruptcy Court for the Southern District of Indiana
on August 28, 1997, it has executed a 1 for 220 share
reverse stock split and distributed new shares in the
reorganized Company in accordance with the terms of the
Plan.  

Randeep S. Grewal, Chairman and Chief Executive Officer of
Horizontal Ventures, Inc. commented, "We are pleased to have
completed this reorganization and look forward to rebuilding
the company.  Looking ahead, the Company's strategy and
mission is quite specific:  to be the leader in exploiting
declining oil and gas production wells by applying a low
cost horizontal drilling technology, developed by Amoco
Corporation, to significantly boost production rates.  We
are enthusiastic about our future and look to capitalize on
the extensive number of mature fields worldwide that are
often abandoned due to declining production levels which
make traditional recovery methods uneconomic."


RAYTECH CORP.: Third Quarter Earnings Announced
-----------------------------------------------
Raytech Corp. (NYSE: RAY) announced net income for the
thirteen-week period ended Sept. 28, 1997 amounted
to $3,710,000 on sales of $56,251,000.  For the thirty-nine
week period, net income amounted to $13,135,000 on sales of
$176,132,000.  Raytech announced no significant progress in
bring resolution to its 1989 chapter 11 filing prompted by
overwhelming environmental and personal injury claims.


STRATOSPHERE CORP.: Second Amended Plan Put on Table
----------------------------------------------------
Stratosphere Corp., and its wholly owned subsidiary,
Stratosphere Gaming Corp., have filed their Second Amended
Plan of Reorganization.

Under the Amended Plan, the secured portion of
Stratosphere's outstanding First Mortgage Notes would be
converted into 100% of the equity of reorganized
Stratosphere, and all currently outstanding Common Stock of
Stratosphere and all other existing equity interests of
Stratosphere would be canceled.  


STREAMLOGIC CORPORATION: Committee Says "Yes" to Plan
-----------------------------------------------------
StreamLogic Corporation reports that it has signed an
agreement with its creditors' committee regarding the
principal terms of the Company's plan of reorganization.

The plan, which is subject to confirmation by the Bankruptcy
Court, will bring new capital to the Company, and the
company will issue a portion of its new shares on behalf of
creditors and others in exchange for a release of claims.  
The plan also provides for the distribution of proceeds from
the sale of noncore assets.  

Under the contemplated plan, all existing shares of the
Company's stock will be canceled and new shares will be
issued.  Canceled shares will be replaced with distribution
rights subordinate to those of creditors, consistent with
the priority scheme set forth in the Bankruptcy Code.  As a
result, the Company believes it is unlikely that current
shareholders will receive any distributions based upon such
rights.

The reorganization plan is centered around the Company's
Hammer Storage Solutions operating group.  Hammer Storage
Solutions develops and markets the award-winning Hammer(R)
line of disk arrays for digital video, multimedia and
graphics applications for the Macintosh, Windows NT and
Silicon Graphics platforms.  


US ONE: $19 Million Raised from Sale to Allegiance
--------------------------------------------------
US One Communications Corp. has raised $19 million from the
sale of two installed switches in New York and Atlanta to
Allegiance Telecom, Inc., a competitive local exchange
carrier headquartered in Dallas, Texas.  


                             ------


Meetings, Conferences and Seminars
----------------------------------

November 13-14, 1997
   MID-SOUTH COMMERCIAL LAW INSTITUTE
      "The Changing Landscape for the Commercial Law
      Practitioner"
         Hermitage Hotel, Nashville, Tennessee
            Contact 1-615-259-1450

November 13-14, 1997
   UNIVERSITY OF TEXAS SCHOOL OF LAW
      16th Annual Bankruptcy Conference
         Four Seasons Hotel, Austin, Texas
            Contact 1-512-475-6700   

November 14, 1997
   NEW YORK STATE BAR ASSOCIATION BUSINESS LAW SECTION
   AND THE COMMITTEE ON CONTINUING LEGAL EDUCATION
      Educational program on consumer bankruptcy
         Albany, New York
            Contact 1-518-463-3724

November 17-18, 1997
   BANKING LAW INSTITUTE,
   BANK LENDING INSTITUTE, and
   EXECUTIVE ENTERPRISES
      Commercial Loan Workouts
         Chicago, Illinois
            Contact 1-800-831-8333

November 19, 1997
   NASSAU COUNTY BAR ASSOCIATION and
   SUFFOLK COUNTY BAR ASSOCIATION, jointly with
   SUFFOLK AVADEMY OF LAW
      1997 Annual Bankruptcy Law Update
         Suffolk County Bar Center, Hauppauge, New York
            Contact 1-516-747-4464

November 21-24, 1997
   COMMERCIAL LAW LEAGUE OF AMERICA
      77th Eastern District Meeting
         New York Marriott World Trade Center, New York

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

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

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

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

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

December 15-16, 1997
   PRACTISING LAW INSTITUTE
      Basics of Bankruptcy and Reorganization
         PLI Conference Center, New York, New York
            Contact 1-800-260-4PLI or http://www.pli.edu

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

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

March 19-20, 1998
   TURNAROUND MANAGEMENT ASSOCIATION
      Spring Leadership Meeting
         Hotel del Coronado, San Diego, California
            Contact 1-312-857-7734

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

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

June 8-9, 1998
   TURNAROUND MANAGEMENT ASSOCIATION
      Advanced Education Workshop & Legislative Conference
         Radisson Plaza, Charlotte, North Carolina
            Contact 1-312-857-7734

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

October 16-20, 1998
   TURNAROUND MANAGEMENT ASSOCIATION
      1998 Annual Conference
         The Westin Hotel, Chicago, Illinois
            Contact 1-312-857-7734

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to
conferences@bankrupt.com 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, 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.

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