TCR_Public/971112.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R       
       
    Wednesday, November 12, 1997, Vol. 1, No. 57   
   
                    Headlines   

CAMPO ELECTRONICS: Claims Bar Date Set  
HARRAH'S JAZZ: Emergency Request for DIP Financing  
INTERLINE RESOURCES: Files for Chapter 11 Relief
MAIDENFORM: Seeks To Extend Exclusive Periods  
PARTY WORLD: Applies to Employ Houlihan Lokey  

POCKET: Committee and DIP Lenders Oppose Consolidation  
POCKET: Committee Seeks to Retain Chadbourne & Parke  
POCKET: Committee Supplements Application for Rothschild  
POCKET: NatTel Seeks Sanctions Against Counsel  
POCKET: Opposes NatTel's Motion to Change Committee  

SMITH TECHNOLOGY: Seeks Time To Assume or Reject Leases  
SMITH TECHNOLOGY: Seeks Approval For Auction Procedure  
STREAMLOGIC: Creditors' Committee Approves Plan  
VAN CAMP: Response to Protein Technologies  
WESTERN PACIFIC: Creditors Ask - Reconsider Cash Collateral  

                       -------  
  
CAMPO ELECTRONICS: Claims Bar Date Set  
--------------------------------------  
The Court entered an Order setting the deadline for proofs  
of claim and interest in response to the motion filed  
by Campo Electronics, Appliances and Computers, Inc.   
  
All proofs of claim or interest must be filed by December  
22, 1997.  
  
  
HARRAH'S JAZZ: Emergency Request for DIP Financing  
--------------------------------------------------  
Harrah's Jazz Company, debtor, seeks an order authorizing  
the debtor to obtain additional DIP loans from Harrah's  
Entertainment, Inc. or an affiliate thereof, in an aggregate  
principal amount of $9 million to be tacked on to the $30  
million existing DIP Loan.  
  
  
INTERLINE RESOURCES: Files for Chapter 11 Relief
------------------------------------------------
Interline Resources consented to entry of an order for
relief under chapter 11 in the United States Bankruptcy
Court for the District of Utah following a lengthy
dispute with Genesis Petroleum, a subsidiary of Quaker
State Oil) over $2.3 million Interline didn't pay in
consideration of Genesis' 74% interest in a Salt Lake
City refinery.  Previously, Genesis filed an involuntary
petition against the Interline.  Interline's involuntary
petition was joined by Petroleum Systems Inc., which
holds an unrelated royalty-related claim against
Interline.  

"While in Chapter 11, Interline hopes to work out a
settlement of debts with creditors as it continues to
operate the company," Interline President Mark Williams
told an industry newsletter.  

In the fiscal year ended March 31, Interline reported
a net loss of $4.6 million, as the company incurred "more
costs associated with commercializing the technology than
originally projected. Interline's significant operating
losses, and the deficit in working capital raise substantial
doubt about its ability to continue as a going concern,"
the company warned.


MAIDENFORM: Seeks To Extend Exclusive Periods  
---------------------------------------------  
On November 19, 1997, Maidenform Worldwide Inc., et al.,  
debtors, will seek an order extending the periods within  
which the debtors have the exclusive right to file plans of  
reorganization and solicit acceptances thereof.

The debtors claim that these cases are large and complex,  
that progress is being made toward rehabilitation, a  
foundation is being laid for the development of a plan of  
reorganization, and the debtors' managers are effectively  
managing and preserving the debtors' estates.

The debtors seek the extension to and including April 30,  
1998 for the exclusive right to file a plan, and to June 30,  
1998 to solicit acceptances thereof.  
  
  
PARTY WORLD: Applies to Employ Houlihan Lokey  
---------------------------------------------  
Party World, Inc. and Party America, Inc. applied to employ  
Houlihan Lokey Howard & Zukin as their investment bankers.  
The debtors believe that in order to successfully reorganize  
and maximize the recovery to both creditors and equity  
holders, it is necessary to retain an investment banking  
firm with extensive experience in the turnaround and  
financial reorganization areas in order to enable the  
debtors to explore alternate sources of restructuring of the  
debtors' equity or and debt, or the possible sale of the  
debtors' operations or their assets.  
  
The debtors will pay Houlihan Lokey a $75,000 retainer  
immediately upon entry of an order approving this  
application and they will be entitled to contingent  
compensation equal to the greater of $35,000 or five percent  
of the Aggregate Gross Consideration received in any  
transaction.  
  
  
POCKET: Committee and DIP Lenders Oppose Consolidation  
------------------------------------------------------  
The Official Committee of Unsecured Creditors of Pocket  
Communications, Inc. states that substantive consolidation  
as requested in the motion of National Telecom is premature  
at this relatively fluid stage of plan negotiations.    
  
The DIP Lenders also oppose consolidation as they claim that  
a consolidation is untimely, unrealistic and ultimately  
unpersuasive.  
  
The debtor is seeking an extension to file its response to  
NatTel's motion for substantive consolidation, as the debtor  
claims the motion was not served on the debtors or debtor's  
counsel.  
  
  
POCKET: Committee Seeks to Retain Chadbourne & Parke  
-----------------------------------------------------  
The Official Committee of Unsecured Creditors of Pocket  
Communications, Inc. requests authorization to retain  
Chadbourne & Parke LLP as its attorney in substitution for  
Winston & Strawn.   
  
Two attorney, Messrs. Seife and Zink, from Winston & Strawn  
who represented the Committee both joined the law firm of  
Chadbourne & Parke, and it is those two attorneys who the  
Committee sought and still seek to retain in this case.  
  
The Committee has also filed its opposition to the Motion of  
Nat Tel to hold the debtors in contempt for the reasons set  
forth in the debtors' opposition to the motion, and the  
Committee claims that NatTel should now bear the expenses  
incurred by the estate in responding to the frivolous and  
unending efforts to disrupt the course of the court  
proceedings in this case.  
  
  
POCKET: Committee Supplements Application for Rothschild  
---------------------------------------------------------  
A hearing on the Application of the Official Committee of  
Unsecured Creditors of Pocket Communications, Inc. for the  
Authorization to Employ Rothschild Inc. as financial advisor  
has been set for November 18, 1997.  
  
It was disclosed in the Stipulation and Consent Order that  
Rothschild Inc. or one or more of its affiliates may  
directly or indirectly fund or contribute to the funding of  
a plan of reorganization of Pocket.   
  
To supplement the Application, the Committee, its counsel  
and Rothschild Inc. advise that Rothschild has recently  
identified various entities including Rothschild Recovery  
Fund, an affiliate of Rothschild, that have expressed a  
preliminary interest in funding or contributing to the  
funding of a plan of reorganization for the debtors.  
  
  
POCKET: NatTel Seeks Sanctions Against Counsel  
----------------------------------------------  
National Telecom PCS, Inc. seeks sanctions against the law  
firm of Whiteford, Taylor & Preston LLP, counsel to debtors,  
for the law firm's "willful refusal and failure to serve on  
NatTel any and all pleadings regarding the Pocket  
stockholder and control group adversary proceeding."  
  
NatTel claims that it was not served with the pleadings and  
papers in the Control Group Litigation so that it would not  
gain additional factual evidence regarding Pocket's  
ownership and control group structure which NatTel could  
then provide to the FCC to use in NatTel's pending FCC  
challenge against Pocket.  
  
  
POCKET: Opposes NatTel's Motion to Change Committee  
----------------------------------------------------  
Pocket Communications, Inc. and DCR PCS Inc., debtors,  
oppose the motion of National Telecom to reconstitute the  
Official Committee of Unsecured Creditors and Disqualify  
Committee Counsel.  
  
The debtors claim that they have developed a good working  
relationship with the Committee, and have avoided the need  
for costly litigation.  
  
The debtors argue that NatTel exhibits sloppiness and lack  
of care in this case in that based on pertinent case law,   
the Court no longer acts to remove members from a creditors'  
committee and the authority for the bankruptcy court to  
reconstitute membership of the creditors' committees had  
been repealed from the Bankruptcy Code.  
  
  
SMITH TECHNOLOGY: Seeks Time To Assume or Reject Leases  
-------------------------------------------------------  
The debtors, Smith Technology Corporation, et. al., seek an  
extension of their time to assume or reject any leases and  
subleases of nonresidential real property.  Prior to the  
petition date, debtors were lessees under approximately 32  
nonresidential real property leases, which are  
administrative and operational offices of the debtors.  
    
The Debtors argue that cause for an extension exists because  
they need more time to amass and analyze the information  
required to determine the value of the leases to the  
debtors.    
  
  
SMITH TECHNOLOGY: Seeks Approval For Auction Procedure  
------------------------------------------------------  
On November 13, 1997 the Court will consider the motion of  
Smith Technology Corporation, et al., debtors for entry of  
an order approving the procedures submitted by the debtors  
for conducting an auction sale and assignment of certain  
contracts with the EPA , and certain assets including  
machinery, equipment, office furniture, and computer  
database information.  
  
The Auction Sale shall be conducted on November 19, 1997 at  
2:00 p.m. in the King Room of the Hotel DuPont 11th and  
Market Streets, Wilmington Delaware.  
  
  
STREAMLOGIC: Creditors' Committee Approves Plan  
-----------------------------------------------  
StreamLogic Corporation, which has been operating under  
Chapter 11 protection since June 26,1997, today announced  
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 non-core 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 Hammer(R) line of disk  
arrays for digital video, multimedia and graphics  
applications for the Macintosh, Windows NT and Silicon  
Graphics platforms.    
  
"The approval of the principal terms of the reorganization  
plan by the creditor's committee is a major step forward in  
our restructuring of the Company," said Michael O. Preletz,  
StreamLogic's Chairman and leader of the Company's  
turnaround management team. Chapman Stranahan, President of  
the Company's Hammer division added, "Creditors' committee  
approval provides a strong vote of confidence in our plan  
and should send a positive message to our   
customers."  
  
  
VAN CAMP: Response to Protein Technologies  
------------------------------------------  
VCS Samoa Packing Company and Van Camp Seafood Company, Inc.  
have filed a Response to the motion of Protein Technologies  
International, Inc. to convert these cases to cases under  
Chapter 7 of the bankruptcy code.  
  
In addition the Official Creditors Committee seeks to  
substantively consolidate these cases.    
  
The debtors claim that as a result of the fluid situation  
relating to discussions among the Committees and Prudential  
relating to a potential global resolution of disputes  
between those constituencies, the debtors are unable, at
this time, to take a position either supporting or opposing the  
motions.  
  
  
WESTERN PACIFIC: Creditors Ask - Reconsider Cash Collateral  
-----------------------------------------------------------  
Hunt Petroleum Co. and GFI Company (Lenders) are secured  
creditors of Western Pacific Airlines, Inc. They request  
that this Court reconsider and grant a rehearing on the  
Court's Order entered on October 29, 1997 relating to the  
October 23, 1997 preliminary ruling on debtor's emergency  
motion for order authorizing use of cash collateral.    
  
The lenders are secured creditors of the debtor with a claim  
in the principal amount of $10 million.  
  
The lenders argue that the evidence presented establishes  
that the lenders' $10 million claim was fully secured as of  
the petition date and that the lender's collateral base has  
steadily deteriorated since the petition date.  
  
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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.  
  
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