TCR_Public/971119.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 19, 1997, Vol. 1, No. 62   
    
                      Headlines

BIG RIVERS: PacifiCorp Seeks to Supplement the Record
BIG RIVERS: Order Grants Hearing For Fee Applications
HARVARD INDUSTRIES: Names Pollazzi Chief Operating Officer
MONTGOMERY WARD: Reports Losses
PARTY WORLD: Seeks To Reject Seven Leases

PARTY WORLD: October's Financial Performance
PAYLESS CASHWAYS: Sales Results For Month
STANDARD INDUSTRIES: Files  For Chapter 11 Relief
UNITED HEALTHCARE: Seeks To Transfer Medical Records
VCS SAMOA: Prudential and Gateway Support Conversion

WELCOME HOME: Court Order Corrected
WESTERN FIDELITY: Hearing Set For Use of Cash Collateral
WESTERN PACIFIC: Losses Climb to $21 Million For Quarter
WESTERN PACIFIC: Newcourt Capital Objects to Two New 737's

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BIG RIVERS: PacifiCorp Seeks to Supplement the Record
-----------------------------------------------------  
On October 21, 1997, the PacifiCorp Entities, as appellants
moved to supplement the record on appeal, or, in the
alternative requested that the Court take judicial notice of
certain documents in the bankruptcy court file. (The
Disqualification Appeal).

The Appellees, Big Rivers Electric Corporation, LG&E Energy
Corp., The Bank of New York, Alcan Aluminum Corporation, and
NSA Inc. filed a response and partial opposition to the
PacifiCorp motion.

The Appellees have specifically objected to the inclusion of
three documents in the record on appeal.  Those documents
are, the Examiner's Preliminary Pleading Regarding
Application for Allowance of Compensation and Reimbursement
of Expenses, Preliminary Response of the U.S. Trustee to
Examiner's Preliminary Pleading Regarding Application for
Allowance of Compensation and Reimbursement of Expenses; and
United States' Objection to Payment of Examiner's Fees.

The Appellees argue that because these documents were filed
in the bankruptcy court after the PacifiCorp Entities filed
the appeal, the documents should not be included in the
record on appeal.  Secondly, the Appellees assert that the
documents at issue do not amount to findings of fact and,
therefore, should be excluded from the record.

The Appellants argue that district courts sitting as
appellate courts with respect to bankruptcy matters
routinely take judicial notice of subsequent developments
that are matters of public record and are relevant to the
appeal.  And they claim that if this Court were to choose
not to take judicial notice of the documents, there is
nothing that prevents the record on appeal from being
amended to include the documents.

The Appellants are concerned not that the examiner has
requested the $4.248 million compensation, but that the
examiner believed he is entitled to the fee and that he
thought he reached an agreement with certain unsecured
creditors for payment of a percentage fee in October 1996.  
These are the facts that the PacifiCorp Entities believe
support their contention that the Examiner's actions in the
bankruptcy case were improperly influenced by his own
financial interest.

And finally, the Appellants contend that the examiner's
continuous ex parte contacts with the bankruptcy judge, the
examiner's attempt to force an auction in the face of
opposition by the debtor and all but one of the primary
creditors, the examiner's false allegations and unfounded
threats on behalf of a United States Judge with regard to
alleged attempts by the PacifiCorp Entities and Big Rivers
to "monkey around with" the auction process -- all of those
improper actions begin to make sense when it is realized
that the examiner expected to receive millions of dollars if
the LG&E deal could be substituted for the PacifiCorp deal.

BIG RIVERS: Order Grants Hearing For Fee Applications
-----------------------------------------------------
On December 8, 1997 a hearing on the fee application of Big
Rivers Electric Corporation's professionals will be held.  
Objections to the Applications must be filed with the
Bankruptcy Court on or before December 4, 1997 at 4:00 PM.  
If no objections to the Applications are filed, they may be
deemed waived, and the Court may enter orders approving the
Applications without a hearing thereon.

Fees have been hotly contested in this case, particularly
the fee of the Trustee.

HARVARD INDUSTRIES: Names Pollazzi Chief Operating Officer
------------------------------------------------------------
Roger G. Pollazzi, former Chairman and Chief Executive
Officer of The Pullman Company, yesterday was named Chief
Operating Officer of Harvard Industries, Inc., a major
supplier of OEM automotive parts and accessories.  Mr.
Pollazzi reports to John W. Adams, Chairman and Chief
Executive Officer.

A key focus of the restructuring of Harvard is the future of
Doehler-Jarvis, a troubled Harvard subsidiary.  Harvard had
announced plans to sell Doehler-Jarvis, but is considering
other alternatives, including the possibility of requesting
bankruptcy court approval of an orderly wind-down of
elements of Doehler-Jarvis' Toledo manufacturing facility.  
Such a move would free Harvard to focus on the restructuring
of more stable Doehler-Jarvis units.

The Company continues to have discussions with third parties
relating to the future operations and financing of Doehler-
Jarvis.  There can be no assurance that these discussions
and the operating restructuring of Doehler-Jarvis will
produce favorable economic results for Doehler-Jarvis and
the Company.

"Harvard Industries, particularly in its core businesses, is
positioned perfectly for significant growth," Pollazzi said.  
"When the restructuring is complete, Harvard will compete
again as a major supplier of finished components
for the worldwide automotive industry."


MONTGOMERY WARD: Reports Losses
-------------------------------                         
Montgomery Ward & Co. lost $615 million in the third quarter
as sales tumbled and the Chicago-based retailer took huge
charges to pay for restructuring under bankruptcy
protection.

Ward said Monday that it charged $582 million against
earnings to close 47 department stores and 44 Lechmere, Home
Image by Lechmere and Electric Avenue & More stores. That
charge was partly offset by a $161 million tax benefit.
Ward's lost $32 million in the third quarter of 1996.

Sales totaled $947 million, down 31 percent from the same
period last year. And sales in stores open more than a year
dropped more than 20 percent, said John Workman, Ward's
executive vice president for restructuring.

"Fourth-quarter operating results will be better," Workman
said. "We're running a tighter ship. We'll have lower
operating costs. We are kind of hitting what we expected to
happen. Obviously, we'd like more sales and more
vendor support."

Workman also noted that Ward's had weathered the
restructuring charges without drawing on its $1 billion
debtor-in-possession line of credit from GE Capital
Services, which owns a majority stake in Ward's.


PARTY WORLD: Seeks To Reject Seven Leases
-----------------------------------------
Party World, Inc. and Party America, Inc. are seeking an
order shortening the time for a hearing on the debtors'
motion for an order authorizing the rejection of seven
leases in California.  The debtor claims that the leases are
a burden to the estates, and the rejection of the leases
will eliminate any administrative or other rental
obligations.


PARTY WORLD: October's Financial Performance
--------------------------------------------
For October 1997, Party World, Inc. and Party America, Inc.,
debtors, reported a profit of $92,317 before professional
fees of $99,317, depreciation and amortization of $68,322,
interest of $57,000 and other expenses of $10,000.  After
these expense items, the debtors lost approximately
$124,000.  The debtors are exceeding their cash flow
projections.  For the week ending November 1, the debtors
had $277,000 net cash flow from operations compared to a
projection of $97,000.  The ending cash balance for that
week was $219,000.

The debtors have selected Houlihan, Lokey Howard & Zukin as
an investment banker, and that firm is in the process of
producing a marketing package for the sale of the companies.

The debtors have reiterated to the court the significance of
continued exclusivity, by filing a supplement to their
request for the extension of exclusivity.  The debtors do
not want to give prospective purchasers the impression that
the debtors are not in control of the sales strategy.


PAYLESS CASHWAYS: Sales Results For Month
------------------------------------------
Payless Cashways, Inc. filed its operating and sales results
for the month ended November 1, 1997.  The company said that
for the fiscal month ended November 1, 1997, net sales were
$155.5 million, a decrease of 26.8 percent in total from the
same period of 1996, and a 14.1 percent decrease on a same
store basis.

The company reported a net loss of $2.4 million for the
fiscal month ended November 1, 1997, compared to net income
of $.8 million in the previous year.  Excluding
reorganization items, net loss for the month ended November
1, 1997 would have been $.3 million.

David Stanley, Chairman and Chief Executive Officer said,
"Substantial reductions in the operating costs of the
business have enabled us to deliver the EBITDA necessary to
meet the year-end EBITDA conditions precedent to our exit
financing before any contribution from November, the last
month of our fiscal year.  Sales continue to be negatively
affected by the restructuring environment.  We believe that
the anticipated confirmation of the company's plan on
November 19 and the subsequent emergence from Chapter 11
early in December will have a positive influence on customer
confidence and, therefore, on sales."

STANDARD INDUSTRIES: Files For Chapter 11 Relief
-------------------------------------------------
Standard Industries Inc. listed total assets of $2.64  
million and total liabilities of $5.2 million as part of its  
Chapter 11 bankruptcy reorganization.

The San Antonio-based company, the nation's oldest lead-acid
battery manufacturer under continuous ownership, filed for
protection from creditors under federal bankruptcy law on
Oct. 15.

In May, Standard closed its Southwest side plant on Nelson
Road after 79 years in business. The company's subsidiary,
Reliable Battery Co., founded in 1954, continues to operate
as a seller of lead-acid batteries.


UNITED HEALTHCARE: Seeks To Transfer Medical Records
----------------------------------------------------
On December 8, 1997 a hearing on the motion of United
Healthcare System, Inc. seeking authorization for the
transfer of the debtor's medical records to Saint Barnabas
Health Care System will be held.

The debtor states that since the filing date of the case,
the debtor has received numerous inquiries for copies of its
medical records.  As the case progresses, the debtor's
ability to properly store and maintain its medical records,
as well as to respond to related inquiries, diminishes.

In connection with the sale of the debtor's goodwill to  
Saint Barnabas Corporation d/b/a Saint Barnabas Health Care
System, (SBHCS), SBHCS has agreed to take possession of,
assume responsibility for and take control of all of the
debtor's medical records. The debtor claims that the
transfer of the records will alleviate the administrative
burden on the estate of maintaining and storing these
records, responding to inquiries and providing copies to
third parties.


VCS SAMOA: Prudential and Gateway Support Conversion
----------------------------------------------------
The Prudential Insurance Company of America (Prudential) and
Gateway Recovery Trust (Gateway)filed a response in support
of the Motion of Protein Technologies International, Inc. to
convert the VCS Samoa Packing Company and Van Camp Seafood  
case from Chapter 11 to Chapter 7.

As of the Commencement Date, Prudential held a secured claim
against Van Camp in the approximate amount of $25 million.
Gateway, an affiliate of Prudential held an unsecured claim
against Van Camp in the principal amount of approximately
$70 million.  

Several months ago the debtors consummated a sale and
assignment of substantially all of their assets to Tri-Union
Seafoods LLC for approximately $97 million. Substantially
all of the debtors' employees now work for Tri-Union. The
parties are now nearing completion of a post-closing audit.  
The Bar Date is November 21, 1997.  

Protein Technologies asserted that because there is no
business to reorganize and all of the debtors' assets have
been reduced to cash, and the debtors no longer have any
economic stake in the outcome of these cases, conversion to
Chapter 7 is appropriate.  Protein also suggested that
conversion would minimize the "going forward" administrative
expenses in these cases.

Prudential agrees that the interests of all the debtors'
creditors would best be served by the conversion of the
Chapter 11 cases to Chapter 7 of the Bankruptcy Code.  
Prudential claims that as Protein pointed out, a turf war
has developed among the law firms involved in the Chapter 11
cases.  The Committees' attorneys continue to take total
control of the Chapter 11 cases. The Committees seek
consolidation of the Debtors' cases, in an effort to enhance
their own constituencies' recoveries at the expense of
Prudential.  Prudential opposes the substantive
consolidation of these cases.


WELCOME HOME: Court Order Corrected
-----------------------------------
The debtor Welcome Home, Inc. a/k/a The Glorious Nest, Home
Again, f/k/a Cape Craftsmen, Inc. requested an extension of
time to assume or reject a nonresidential lease of real
property with Landlord Net Realty Holding Trust.  

Mistakenly, the Court entered an order stating that the
debtor's time to assume or reject the Net Lease was
September 26, 1997.   The date January 17, 1998 was intended
by the Court, and the debtor now requests that the order be
corrected to reflect that the debtor has until January 17,
1998 to assume or reject the Net Lease.


WESTERN FIDELITY: Hearing Set For Use of Cash Collateral
--------------------------------------------------------
The Court has order a hearing on December 1, 1997, in the
matter of the Motion for Authority to Use Cash Collateral
and the Response of the Insurance Company to the Debtor's
Motion for Authority to Use Cash Collateral.


WESTERN PACIFIC: Losses Climb to $21 Million For Quarter
--------------------------------------------------------
Western Pacific Airlines, in Chapter 11 bankruptcy since
Oct. 5, reported a net loss of $21 million for the third
quarter ended Sept. 30, compared with a net loss of $910,000
in the same quarter a year ago.

The airline's net loss in the recent quarter included a loss
of about $1.2 million related to its 57 percent ownership
interest in Mountain Air Express, a commuter airline also
based in Colorado Springs. MAX, as the commuter carrier
is known, made its own Chapter 11 bankruptcy filing on Nov.
6. WestPac and MAX have continued to fly full schedules
following their filings.

Western Pacific said its net loss in the recent quarter
included $8.8 million in one-time charges related to a
write-off of costs associated with a maintenance hangar and
other facilities the carrier no longer needs, costs related
to the failed attempt to merge with Frontier Airlines, and a
loss taken on the sale of a plane and other issues.

If the one-time charges and the loss related to its stake in
MAX are removed, WestPac's loss for the recent quarter would
be $10.1 million. The airline said its revenues for the
quarter totaled $66.3 million, up 45.7 percent from revenues
of $45.5 million in third-quarter 1996.

Despite the huge third-quarter loss, there are hopeful signs
in WestPac's recent financial performance, said Mark
Coleman, the company's senior vice president for marketing.
He said the company's yield - its revenue for every mile
flown by a passenger - was up 14 percent in the third
quarter when compared with the second quarter's yield.

The improvement in third-quarter yield reflects the
generally higher ticket prices that WestPac was able to
charge at DIA when compared with pricing at Colorado Springs
Airport, where the carrier operated in the second quarter.

In a 10-Q filing with the Securities and Exchange Commission
Friday that accompanied WestPac's earnings announcement, the
carrier said it "is actively seeking debtor-in-possession
financing which will allow it to continue operations" and
assist in funding a bankruptcy reorganization plan.


WESTERN PACIFIC: Newcourt Capital Objects to Two New 737's
----------------------------------------------------------
Newcourt Capital USA, Inc. entered into a certain Credit
Agreement with the debtor, Western Pacific Airlines, Inc.  
Pursuant to the Credit Agreement, Newcourt advanced certain
funds, prior to the commencement of this case, for certain
installments of advance payments due by the debtor to the
Boeing Company.  Newcourt advanced $1.125 million for
installment advance payments for that certain Boeing 737-300
aircraft scheduled for delivery in December, 1997.

The debtor provided in its motion for authority to assume
and assign the purchase agreement for two new Boeing 737-300
aircrafts that the "lien of Newcourt, if any, shall attach
to the proceeds of the transaction received by Western
Pacific."  Newcourt argues that it has many other options
besides receiving a lien on the proceeds of the closing of
the assumption and  assignment of the December 1997 Aircraft
delivery.

Newcourt filed this objection requesting that any Order of
the Court will provide that the assumption and assignment of
the Purchase Agreement and the rights to delivery of any
aircraft thereunder shall be subject to payment of all of
the obligations to Newcourt.

Newcourt wants assurances that all of its rights in the
Purchase Agreement Assignment will be preserved, and that
Newcourt will be paid all of the obligations to Newcourt at
the closing of the assumption and assignment.

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