TCR_Public/971117.MBX   T R O U B L E D   C O M P A N Y   R E P O R T E R       
      Monday, November 17, 1997, Vol. 1, No. 60   

ABC INTERNATIONAL: Debtor Seeks Dismissal of Case
AVATEX CORPORATION: Financial Deterioration Continues
BRADLEES, INC.: New DIP Lender Around the Corner
BUMBLE BEE: Plan of Reorganization Confirmed
CRAIG CONSUMER: BT Commercial Halts DIP Financing

CRAIG CONSUMER: Rejecting Ex-CEO's Employment Contract
DOW CORNING: Disclosure Hearings Continue Today
ELDER-BEERMAN: Judge Rejects Shareholder Request for Delay
EVANSVILLE BREWERY: Re-Opening & Hoping for Quick Sale
GROSSMAN'S, INC.: Ballots due December 3, 1997

HARRAH'S JAZZ: DIP Financing Sufficient Until End-of-Year
HOOKUP COMMUNICATIONS: Files Canadian Notice of Intention
KOO KOO ROO: Losses Mount Amid Increasing Revenues
L. LURIA: Employee Retention & Severance Program Proposed
LEVITZ FURNITURE: September 1997 Operating Results

LEVITZ FURNITURE: CFO Employment Agreements
LTV CORPORATION: Aerospace Trust Final Cash Distribution
MANHATTAN BAGEL: Exploring Options, Including Chapter 11
MARVEL ENTERTAINMENT: Bankruptcy Court Reference Withdrawn
MARVEL ENTERTAINMENT: Committee Questions White & Case Fees

MARVEL ENTERTAINMENT: Potential Conflicts for Young Conaway
METALLURG INC.: S&P Rates $100MM Senior Unsecured Notes 'B-'
NDI FOODS: Seeks Chapter 11 Protection

OMNI MULTIMEDIA: Seeks Chapter 11 Protection
PAYLESS CASHWAYS: K.C. Star Interview With CEO David Stanley
PAYLESS CASHWAYS: Progress Report on Reclamation Claims
PEGASUS GOLD: Third Quarter Loss & Bank Loan Default
PRINS RECYCLING: KTI Sale Yields $13.6 Million

WESTERN PACIFIC: Traffic Increases Following Filing
WESTERN PACIFIC: Who's $10 Million Sits at Bank One?
YAMAICHI SECURITIES: Rating Agency Downgrades


ABC INTERNATIONAL: Debtor Seeks Dismissal of Case
ABC International Traders, Inc., asks the U.S. Bankruptcy
Court for the Central District of California to enter an
order dismissing its chapter 11 case filed on March 19, 1997.
ABC explains to Judge Greenwald that it has consensually
resolved the claims arising from a $5.6 million Texas State
Court default judgment obtained by E. James Rausch and Leon
Michanie, eliminating the problem that brought the company to
the Bankruptcy Court.

Additionally, the Debtor has re-negotiated the terms of its
$13 million working capital facility with Congress Financial
Corporation.  The Debtor plans to pay all creditors 100% in
cash or reinstate all obligations, according to their
original terms, following dismissal of its chapter 11 case.

Judge Greenwald will hold a hearing on ABC's motion on
December 3, 1997, in Woodland Hills, California.

As a protective measure, in the event that the Court does not
approve the dismissal and forces the filing of a plan and
disclosure statement to permit the Debtor to exit chapter 11,
the Debtor asks for an extension of its exclusive period
during which to file a plan of reorganization through
December 10, 1997 and an extension of its exclusive period
within which to solicit acceptances of such plan through
February 11, 1998, both without prejudice to requests for
further extensions and without prejudice to the right of the
Committee to request termination of the Debtor's exclusive
periods on 5-day's notice.

AVATEX CORPORATION: Financial Deterioration Continues
Avatex Corporation posted a $7.9 million loss on revenues of
$3.6 million for the quarter ending September 30, 1997.  
Avatex' balance sheet went further under water as
liabilities exceed assets by $168.8 million at September 30,
1997.  These figures reflect a $33.3 charge in connection
with the previously reported settlement approved by Judge
Balick with Bart Brown, Jr., the Trustee elected in
FoxMeyer Corporation's chapter 7 cases.  

BRADLEES, INC.: New DIP Lender Around the Corner
Faced with the expiration of its current DIP Financing
Facility in early 1998 and a need for credit availability in
excess of a 65% Borrowing Base to "provide liquidity levels
during the 1998 fiscal year sufficient to satisfy the vendor
community," Bradlees, Inc., has asked the U.S. Bankruptcy
Court in Manhattan for approval to pay $300,000 in due
diligence fees to one prospective DIP lender.  

BUMBLE BEE: Plan of Reorganization Confirmed
Bumble Bee Seafoods, Inc., and its three debtor affiliates
obtained confirmation of their Plan of Reorganization from
the United States Bankruptcy Court for the Southern District
of California.  As previously reported, the Plan provides for
the sale of the bulk of the Debtors' operating assets to
International Home Foods for aproximately $158.9 million, to
be distributed to creditors according to their statutory

CRAIG CONSUMER: BT Commercial Halts DIP Financing
BT Commercial Corporation has notified Craig Consumer
Electronics, Inc., that it will no longer advance funds to
the Debtor under the DIP Facility previously approved in the
Debtor's chapter 11 case.  As a result, Craig and BT have
agreed to commence an orderly liquidation of the estate.  

CRAIG CONSUMER: Rejecting Ex-CEO's Employment Contract
Craig Consumer Electronics, Inc., seeks the Court's
authority to reject its 1996 Employment Agreement with
Richard I. Berger, the Debtors' Ex-CEO and Chairman.  Berger
was replaced by Richard Williamson in September 1997.  

The Berger Contract provided for $375,000 in annual salary
payments plus a bonus equal to 10% of the Company's net
income in excess of $2,000,000 per year, as well as other
executive perquisites.  

Continued litigation over Mr. Berger's employment can be
anticipated.  Craig asserts that it terminated Mr. Berger's
employment for cause; Mr. Berger claims that he has the
right to terminate the contract because of Craig's failure
to perform its contractual obligations.

DOW CORNING: Disclosure Hearings Continue Today
Court hearings before Bankruptcy Judge Arthur J. Spector and
District Court Judge Denise Paige Hood on the adequacy of
the information contained in Dow Corning Corporation's
proposed amended disclosure statement will continue today in
Bay City, Michigan.  Judge Spector is expected to deliver
preliminary rulings on the legal objections raised by the Tort
Claimants--primarily focused on the propriety of linking a
vote to accept or reject the plan with the treatment of a Tort
Claimant's personal injury claim.  

Additionally, the parties will address proposed additions and
modifications to the language contained in the proposed
disclosure statement to resolve literally hundreds of factual
objections interposed by scores of parties in interest.

ELDER-BEERMAN: Judge Rejects Shareholder Request for Delay
Elder-Beerman Stores Corp. shareholders William Weprin,
Barbara Weprin and Leonard Peal have asked Judge Clark of
the U.S. Bankruptcy Court in Dayton, Ohio to delay the
confirmation hearing scheduled for December 15, 1997, until
February 28, 1998.  The Shareholders think that if market
conditions and projections on Christmas sales are on target,
Elder-Beerman's value could increase to $425 million.  That
would allow $50 million to $75 million of value to flow to
the Shareholders rather than Elder-Beerman's creditors.  

Judge Clark rejected the Shareholders' arguments for any
delay in scheduling the confirmation hearing on December 15,
1997.  Judge Clark indicated, however, that he will permit
the Beerman family to argue for a two-month delay in
implementing the Plan at the confirmation hearing on
December 15.  

Richard Cieri, Esq., of Jones, Day, Reavis & Pogue, counsel
to Elder-Beerman, cautioned Judge Clark that the Debtors
have pulled together the interests of hostile creditor
groups and any delay on one front could begin to unwind
agreements on other fronts.  

EVANSVILLE BREWERY: Re-Opening & Hoping for Quick Sale
Evansville Brewery Co. won approval from the U.S. Bankruptcy
Court for the Southern District of Indiana at New Albany to
recall 50-60% of its workforce, re-open for 45 days, and
bottle 1.2 million remaining gallons of beer.  The beer
has been sitting since the brewery closed last month
following its chapter 11 filing.  

157-year-old EBS bottles beer under the Sterling, Gerst,
Drummond Bros. and other labels, and hopes to use the
bankruptcy case as a springboard for a sale of the Company.
EBC was hopeful in mid-October that Chicago investment
group Michigan Avenue Partners would buy the company and
keep it operating.  That deal fell apart when MAP was
unable to raise the money needed.  

EBC argued in a hearing held this week that the 45-day plan
would yield a better return than the options of (a) flushing
the beer down the city sewers or (b) trucking it out to be
boiled down and incinerated.  National Bank of Canada, EBC's
pre-petition lender owed $2.3 million, opposed the 45-day
plan, asserting that the re-opening would only waste assets
which should be used to pay bank debt.

"If we would get fortunate and have a sale, everybody would
be happy," Judge Basil Lorch said at the hearing.  Opining
that chapter 11 encourages taking risks when there is an
upside potential, "I'm going to take that chance," Judge
Lorch said.

In its voluntary petition, filed October 1, 1997, EBC
listed $8,187,000 in assets and $11,387,000 in liabilities.  
EBC estimates the value of the company at $3 million
to $10 million, including the beer brand names, the
brewery's building and land, equipment, cash and accounts

Some sources say that no offers have been received to date
for the purchase or restructuring of the business, but that
EBC is hopeful one will surface within the next 45 days.  
Other reports claim that six to eight prospective buyers are
engaged in on-going discussions, some more advanced than
others.  If no buyer is on-board by the end of the 45-day
period, a liquidation will proceed.

GROSSMAN'S, INC.: Ballots due December 3, 1997
Grossmans, Inc., and Jeld-Wen, Inc., have transmitted their
Court-approved Disclosure Statement to creditors for voting
as the Joint Plan nears confirmation.  

The Court has fixed December 3, 1997 as the Voting Deadline
for creditors to return their ballots indicating acceptance
or rejection of the Joint Plan.  

As previously reported, the Joint Plan proposes that Jeld-
Wen will purchase a 50% stake in the company for $8.25
million.  The Debtors and Jeld-Wen anticipate confirmation
of the Joint Plan will be obtained at a hearing scheduled
for December 8, 1997 before Judge Walsh in Delaware.

HARRAH'S JAZZ: DIP Financing Sufficient Until End-of-Year
The United States Bankruptcy Court for the Eastern District
of Louisiana at New Orleans has granted Harrah's Jazz Co.'s
request to borrow $4 million of $9 million from Harrah's
Entertainment, Inc., on an interim basis pending a final
hearing on December 2, 1997.  The Debtor has indicated that,
even if final approval is not obtained, the $4 million
approved last week will carry the company through the end of
1997.  Harrah's Jazz is working quickly to pull together all
of the pieces necessary to propose a plan of reorganization;
Harrah's Entertainment is a key participant under that plan,
having extended some $30 million in DIP Financing to date.

HOOKUP COMMUNICATIONS: Files Canadian Notice of Intention
HookUp Communication  Corporation has filed a Notice of
Intention to File a Proposal under the Bankruptcy and
Insolvency Act (Canada) in connection with  a proposed
reorganization of its business operations.  The notice of  
intention permits HookUp a thirty day period in
which to prepare  and file a proposal outlining the
company's restructuring plans.

HookUp says that it is "not bankrupt and retains cash
sufficient to continue operations," while, in the same
breath, explaining that "this action has been taken to find
a solution that treats all creditors in a fair and  
equitable manner."

HookUp says that constructive discussions with creditors has
been ongoing, and feels that a solution offering creditors
value while permitting HookUp the opportunity to continue as
a business is likely.  

On October 23, 1997, HookUp announced the sale of 13,000
subscribers to Netcom to raise cash.  On November 5, 1997,
HookUp and Interhop Network Services Inc. signed an
agreement in which the franchise contracts of auracom  
Internet Services, HookUp's franchise division, would be  
transferred to Interhop in exchange for Interhop shares to
pay debts.

KOO KOO ROO: Losses Mount Amid Increasing Revenues
Koo Koo Roo, Inc. (Nasdaq: KKRO) reported a loss of $9.8
million for the quarter ended September 30, 1997 on revenues
of $21.9 million.  The loss includes charges associated with
store closings.  Koo Koo Roo continued streamlined its
corporate structure by eliminating 22 corporate jobs,
consolidated Hamburger Hamlet's corporate office into the
home office and outsourcing the company's construction

Ken Berg, the company's Chairman and Chief Executive
Officer, stated, "As previously announced, we have taken
decisive action to reorganize the way we do business, which
today is having an immediate and significant positive impact
on results.  We've proven we can achieve substantial top-
line growth, and now we're going to prove we can take care
of the bottom line, too."

While most restaurant chains cheer as the end of the year
approaches, Koo Koo Roo predicts that it "will generate a
breakeven to positive cash flow from operations in the
fourth quarter of 1997."

"The Company continues to investigate strategies that may
lead to the recapitalization, sale, spin-off or other
restructuring of its interest in Color Me Mine and is
engaged in substantive discussions regarding one such
transaction, although no agreement has been reached to
date," the company disclosed while announcing third quarter

L. LURIA: Employee Retention & Severance Program Proposed
L. Luria & Son, Inc., working to wind-down its operations in
an orderly manner, asks the U.S. Bankruptcy Court for the
Southern District of Florida for permission to pay (a)
$103,573 in retention bonuses to key employees who remain
employed until the wind-down is completed and (b) $37,618 to
employees whose employment is severed prior to completion of
the wind-down.  The Debtor believes these employee
incentives are necessary to complete the wind-down in an
orderly manner.  The Debtor indicates that the Committee has
consented to the proposed Program.  

LEVITZ FURNITURE: September 1997 Operating Results
For the 26-day period ending September 30, 1997, Levitz
Furniture Incorporated and its subsidiaries reports a $29.6
million loss on $49.8 million of sales.  Year-to-date,
ending September 30, 1997, Levitz reports a loss of $52.2
million on sales of $418.6 million.  

LEVITZ FURNITURE: CFO Employment Agreements
Subject to Court approval, Levitz has entered into two
agreements relating to the resignation of the Company's CFO
and the hiring of an Interim CFO.  

Patrick J. Nolan has signed-off on a severance agreement
providing that his employment terminated as of October 31,
1997 and Mr. Nolan releases Levitz from all claims and
causes of action.  Mr. Nolan will assist Levitz in bringing
in a new CFO and will continue to be compensated through
April 30, 1999.  

Through EIG Management, Inc., Levitz has hired Elliot I.  
Green as its Interim CFO at a rate of $37,500 per month plus
reimbursement of all reasonable out-of-pocket expenses.  Mr.
Green brings to Levitz prior experience from Edison
Brothers, R.H. Macy & Co. and Child World.

LTV CORPORATION: Aerospace Trust Final Cash Distribution
The Trustees of the Aerospace Creditors Liquidating Trust
(PCX:ARO.TT) announced today that the Trust has set a record
date of Dec. 15, 1997 for determining which holders will be
entitled to receive the final cash distribution from the

The amount of the final cash distribution is subject to the
approval of the United States Bankruptcy Court for the
Southern District of New York and will be announced by the
Trust as soon as the Trust receives such approval.  The
Trustees of the Trust are requesting the Bankruptcy Court to
approve a final distribution date of Dec. 29, 1997.  Subject
to certain conditions, suspension in trading of the Units of
the Trust on the Pacific Exchange may occur prior to the
final distribution.

MANHATTAN BAGEL: Exploring Options, Including Chapter 11
Manhattan Bagel Company, Inc. (Nasdaq:BGLS) disclosed that
it is "exploring its alternatives, including securing
additional funding to replace [existing bank debt], the sale
of some or all of its assets, the sale of securities to a
new investor, and the filing of a petition for protection
under Chapter 11 of the Federal Bankruptcy Act."  That
disclosure was made by the Eatontown, New Jersey company as
it announced losses for the quarter ended September 30, 1997
and projected losses for 1997's third

In an effort to reverse operating losses, the company has
retained turnaround consultant Sanford Nacht to conduct a
total review of its operations and assist management in
identifying areas in which savings could be achieved.  Store
closings, sales of franchised stores to their franchisees,
and continued corporate downsizing is expected.  

Manhattan Bagel further announced that its primary lender
had notified the company that it is in default of its credit
agreement.  The company is negotiating with the lender
regarding the claimed default and other matters related to
the credit facility.

MARVEL ENTERTAINMENT: Bankruptcy Court Reference Withdrawn
Granting the Debtors' Motion for a withdrawal of the reference
of these cases from the bankruptcy court, District Court Judge
Roderick McKelvie has directed that Marvel's entire bankruptcy
case be moved from the U.S. Bankruptcy Court to the United
States District Court for the District of Delaware for further

MARVEL ENTERTAINMENT: Committee Questions White & Case Fees
The Official Committee of Unsecured Creditors appointed in
Marvel Entertainment's chapter 11 cases questions the
propriety of non-debtor third-party insiders paying legal
fees to White & Case--the Debtors' special litigation
counsel in the District Court Litigation--for representation
of the Debtors' estates.  The Committee observes that the
Debtors' application to employ White & Case provides that
W&C's fees will be paid by High River Limited Partnership
and Westgate International, L.P., rather than by the

The Committee notes that bankruptcy courts have adopted
different approaches in addressing this issue, with some
courts adopting per se rules against such employment terms,
some courts taking an analytical approach looking at the
degree of potential conflict and harm, and other courts
basing decisions on an equitable analysis.  The Committee
suggests, in the interest of fairness to all parties, that
High River and Westgate make payments to the Debtors and
that the Debtors then pay White & Case after the Court
approves White & Case's fee applications.

MARVEL ENTERTAINMENT: Potential Conflicts for Young Conaway
The Wilmington-based law firm of Young, Conaway, Stargatt &
Taylor has re-applied to serve as co-counsel to Marvel
Entertainment Group, Inc., et al.  James L. Patton, Esq.,
the partner in charge of the Marvel engagement explains to
the Delaware Bankruptcy Court that certain unnamed parties
have expressed concern about potential conflicts in light of
Young Conaway's prior representations of Revlon, Inc.,
certain Perelman affiliates, Chase, Toy Biz and MAFCO, on
the one hand, and current representation of Marvel on the
other hand.  

Mr. Patton reminds the Court that Marvel -- now controlled
by Carl Ichan -- has sued certain of Young Conaway's former
clients and further alleges that the chapter 11 filings were
part of a collusive effort by Perelman, Chase and others to
the detriment of Marvel, its shareholders and creditors.  
Because of that allegation, and because Mr. Patton
personally signed the Debtors' chapter 11 petitions, Mr.
Patton declined to prosecute Marvel's latest District Court
suit and advised Marvel to retain special counsel.  Mr.
Patton does not think it unlikely that he would be called as
a fact witness in the District Court Litigation.  

Young Conaway indicates that it is re-applying to serve as
Marvel's counsel to (a) again disclose all relationships
which might appear to give rise to a conflict and (b) give
all parties in interest the opportunity to voice any
concerns before the Court.  Young Conaway is certain,
however, that it is disinterested within the meaning of
Section 327 of the Bankruptcy Code and is qualified to
continue serving as Marvel's co-counsel.

METALLURG INC.: S&P Rates $100MM Senior Unsecured Notes 'B-'
Standard & Poor's assigned its single-'B' corporate credit
rating to Metallurg Inc., and its single-'B'-minus rating to
the company's proposed $100 million senior unsecured notes
due 2007.  The ratings outlook is stable.  

The ratings reflect Metallurg's below-average business
position as an international producer and marketer of metal
alloys, used by manufacturers of steel, aluminum,
superalloys, and other metal consuming industries, and its
aggressive financial policy.  Management has taken steps in
recent years to improve the company's product mix and has
had some success in reducing production costs from pre-
bankruptcy levels.  Currently, the company is benefiting
from favorable market conditions in the aerospace and
transportation sectors.  Still, it serves highly cyclical
markets and remains vulnerable to significant supply shocks.  

Pro forma for the proposed note offering, the company's
total-debt to total-capital ratio will be high at 73%.  This
aggressive debt leverage measure is further exacerbated by
the existence of substantial pension and environmental
liabilities.  Indeed, the environmental liabilities will
require significant mandatory capital investments to address
over the next few years.  Furthermore, management's decision
to pay a $20 million dividend to shareholders funded with
proceeds from the proposed offering -- after only recently
emerging from Chapter 11 bankruptcy protection --
underscores the company's aggressive financial policy.  
Going forward, operating margins should average 5.5%-6%
(weighted down by low-margin merchant business), while
EBITDA-to-interest coverage is expected to be only on the 3
times (x)-4x area absent any downturn in market conditions.  

MIDCOM Communications Inc. (NASDAQ:MCCIQ) reports a net loss
of $23.6 million on net revenue of $24.9 million for the
quarter ended Sept. 30, 1997.  For the 9-month period ending
September 30, 1997, the loss totals $69.5 million on
revenues of $74 million.

NDI FOODS: Seeks Chapter 11 Protection
NDI Foods, Inc., the Syracuse, New York-based Denny's
restaurant francishee, filed for protection from creditors
under chapter 11 last week.  NDI has been plagued by
criticism stemming from alleged racial discrimination
against Syracuse University students in April, 1997.  The
students say they were denied service while other customers
were seated ahead of them and then were assaulted in the
parking lot, and filed suit in New York.  Flagstar
Corporation and its subsidiary, Denny's, Inc., have
apologized profusely to the Students.  

"It's hard to tell if [the chapter 11 filing] was deliberate
but the net effect is that a week before they would be
required to give us information, this blocks us from being
able to get critical documents," Elizabeth OuYang, Esq., an
attorney with the Asian American Legal Defense and Education
Fund representing the Students told the Times Union.

Judge Schneider of the U.S. Bankruptcy Court in Baltimore
have his blessing for Wood Gundy London Ltd., of London, to
pursue its multimillion-dollar fraud lawsuit against two
principal insiders behind Novatek International, the
bankrupt Columbia-based company under federal investigation
for stock fraud.

Wood Gundy and other creditors in the lawsuit seek the
return of $8 million paid out by Novatek.  Novatek claimed
that it had sales agreements with several parties in Latin
America; the SEC questions the veracity of those claims.  
Wood Gundy accuses Novatek of violations of the SEC's
regulations, fraud, filing false and misleading public
documents, fraudulently transferring property of the
company, wasting company assets, and breach of fiduciary

OMNI MULTIMEDIA: Seeks Chapter 11 Protection
OMNI MULTIMEDIA GROUP, INC. (AMEX: OMG) and its subsidiaries
filed for Chapter 11 protection on November 14, 1997, before
the U.S. Bankruptcy Court for the Western district of

  * Omni Resources Corp., a software manufacturer and the
    largest subsidiary in the Omni group, listed assets of
    $6.6 million. Liabilities are $26.5 million, of which
    about $22 million is secured and $4.5 million is in
    unsecured debt to more than 300 creditors.

  * 4CDs Corp., which sells software via the Internet,
    reported assets of $300,000 and a secured debt of $4
    million. Of its unsecured debt of $1.5 million, about
    $1.3 million is owed to Omni Resources Corp.

  * Mezzoman Productions Inc., a broker for CDs and
    cassettes, reported assets of $3,000 and liabilities
    of $2,500.

  * Campbell Products Corp., a printer of booklets
    and tray cards for CD packaging, reported assets of
    $105,000 and liabilities of $4.6 million, of which $4
    million is secured and $650,000 unsecured.

"The Company needs to restructure its balance sheet in order
to attract the necessary capital required to achieve
profitability," Omni said in making its announcement.  Omni
says that it intends to propose a restructuring plan

PAYLESS CASHWAYS: K.C. Star Interview With CEO David Stanley
David Stanley, CEO for Payless Cashways, Inc., granted an
interview to Jennifer Fuller of the Kansas City Star.  That
interview appeared in yesterday's edition of the Kansas City
Star.  The full-text of the article is available at no charge
via the Internet at:

Mr. Stanley relates (i) how the banks control the chapter 11 case,
(ii) he is "real sorry" for the impact of the chapter 11 filing on
creditors, suppliers and shareholders, (iii) that he would like to
continue as CEO following emergence from chapter 11 in December,
and (iv) he is hopeful that he, Susan Stanton and Stephen
Lightstone will be nominated to the Board of Directors by
creditors.  The article discloses nothing relative to the results
of creditor voting on the Debtor's Amended Plan.

PAYLESS CASHWAYS: Progress Report on Reclamation Claims
Payless Cashways, Inc., reports that of 620 reclamation
asserted by reclaiming sellers totaling $40,512,947, it
has successfully resolved 587 reclamation claims totaling
$26,491,753.  The Debtor is left with 33 unresolved
reclamation claims totaling $2,399,292, of which the Debtor
agrees with $1,657,814.  

PEGASUS GOLD: Third Quarter Loss & Bank Loan Default
Pegasus Gold Inc. (Amex:PGU) announced it has recorded a
$353.3 million write-down of the carrying value of its Mt.
Todd Mine and is suspending mining operations.  The mine
will be placed on care and maintenance unless a detailed
independent engineering review to be completed mid-December
identifies substantial improvements in the mine's economics.  
"It no longer makes sense to operate Mt. Todd given the
continued deterioration of the gold price and cost structure
of this project," said Werner G. Nennecker, President and
Chief Executive Officer.  As a result of this write-down,
the Company is in default of certain restrictive covenants
under the terms of the $150 million Revolving Credit

"Management has commenced discussions with its lenders under
the facility and is working with financial advisors who
specialize in restructuring to investigate alternatives
available to the Company.  We are implementing a cash
conservation plan to mitigate lower gold prices, higher cash
costs and meet operating needs.  As part of that plan, the
Company is considering curtailment of mining at certain
operations, deferral of capital expenditures, further
reductions in general and administrative costs, a scaled
down exploration program and the monetization of all or a
portion of the hedge portfolio," stated Nennecker.  

Absent adverse action by its creditors, the Company has
sources of liquidity to continue planned operations through
1998.  As of September 30, 1997, cash and cash equivalents
totaled $15.9 million and other current assets amounted to
$78.0 million.  The market value of the Company's hedge
portfolio is approximately $70 to $80 million.  During the
third quarter of 1997, the Company recorded a net loss of
$432.8 million.

PRINS RECYCLING: KTI Sale Yields $13.6 Million
New Jersey-based KTI, Inc. (Nasdaq: KTIE) announced it
completed the acquisition of recycling plants in Boston,
Chicago and Newark.  Purchased from a bankruptcy court sale,
the plants are the former assets of Prins Recycling Corp.
The acquisition was valued at $13.6 million.

WESTERN PACIFIC: Traffic Increases Following Filing
The Denver Post reports that October 1997 passenger traffic
on Western Pacific Airlines--measured in revenue passenger
miles--increased 22.6% over October 1996.  During October
1997, WestPac filled only 51.3% of its available seats.  
WestPac filed for chapter 11 protection on October 5, 1997.

WESTERN PACIFIC: Who's $10 Million Sits at Bank One?
A battle brews before Judge Sidney Brooks over who should
get $10 million on deposit at Bank One.  Western Pacific
Airlines argues that it needs the money and the Court should
grant it the use of the money.  Moreover, WestPac says, the
oil-rich Hunts and the Gaylord publishing family were
represented by four board members and knew the risks they
were taking when they made the loan.

The Hunt and Gaylord families argue that the money is their
collateral, securing a $12 million loan guarantee they
executed in September 1997, and should be used to pay down
the underlying debt.  Moreover, having recently sold an
airplane, the Debtor should have more than enough free cash
to fund operations.

WestPac answered one-third the question for Judge Brooks.  
Before the issue came before the Court, the Debtor drew
nearly $3 million from the account for operating expenses.  
Judge Brooks has ruled that the remaining funds will stay
in the account until further order from the Court.

YAMAICHI SECURITIES: Rating Agency Downgrades
Standard & Poor's Corp. lowered its long-term rating on
Yamaichi Securities Co. Ltd. and revised the outlook for the
long-term rating to negative from stable.  S&P said the
downgrade reflected the firm's "demonstrated inability to
counteract unfavorable market conditions, which will likely
deteriorate further before bottoming out."  Earlier this
week, Moody's indicated that it was considering cutting the
rating on Yamaichi's senior debt to junk bond status.  

Trading in Yamaichi's public equity securities drove the
price per share from Y900 in 1996 to Y157 last week, closing
at Y100 Friday.  "We have no problems maintaining our
liquidity," Yamaichi said as its shares slipped to a 24-year
amid heavy selling Friday afternoon.  While Government
officials in Tokyo assert that Yamaichi -- one of Japan's
big four brokers -- is "too important to fail," analysts
predict a restructuring is imminent following losses of
Y4.16 billion for the half-year ending September 30, 1997.


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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