/raid1/www/Hosts/bankrupt/TCR_Public/971230.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, December 30, 1997, Vol. 1, No. 88
                      
                      Headlines

AMERICAN ENTERTAINMENT: Court Okays Special Counsel
BIOSYS, INC.: Court Approves Amended Disclosure Statement
BMI TRANSPORTATION: Selling New Philadelphia, Ohio Property
BMI TRANSPORTATION: Selling Terminal Business to Penn Truck
BRADLEES, INC.: Amendments to CEO's Employment Agreement

CAMPO ELECTRONICS: $2.5MM Offered for Chattanooga Property
CHARIVARI HOLDING: Latconsa Group Looking for Fresh Capital
CHONG GU: Korean Construction Conglomerate Collapses
CRAIG CONSUMER: Additional DIP Financing Approved
DOEHLER-JARVIS: Price Waterhouse Offering Computer Help

DOEHLER-JARVIS: Key Employee Retention Incentive Plan
ELI WITT: Debtor's First Amended Plan Confirmed
FOUR DIAMONDS: Mountain Laurel Resort Shuttered
GUY F. ATKINSON: Exclusivity to be Reviewed January 9th
HANBO STEEL: Prison Sentences Upheld for Korean Embezzlers

KIA MOTORS: Ford Declines Comment About Acquisition Rumors
LOMAS FINANCIAL: Trustee Sues Ernst & Young for Malpractice
MARUSO SECURITIES: Fifth Japanese Brokerage House Falls
MEMOREX TELEX: Settlement of Data General Preference Claim
MONTGOMERY WARD: Zolfo Cooper Joins Debtors' Team

NITTO KOGYO: Seeks Court Protection from Creditors in Japan
OXFORD HEALTH: New York Regulators Levy $3 Million Fine
PHOENIX INFORMATION: January 14, 1998 Bar Date Established
SEARS: Continued Headaches over Reaffirmation Procedures
SSANG BANG: Michael Jackson Eyes Underwear-Maker's Resort

STREAMLOGIC CORPORATION: November Operating Results
STREAMLOGIC CORPORATION: ONSALE Auctioning Micropolis Drives
WESTERN PACIFIC: Plan of Reorganization Proposed
WESTMORELAND COAL: Debtors Extend Houlihan Lokey Engagement

Meetings, Conferences and Seminars

                      ---------

AMERICAN ENTERTAINMENT: Court Okays Special Counsel
---------------------------------------------------
American Entertainment Group, Inc., sought and obtained
Judge E. Stephen Derby's authority to retain and employ
three law firms as special counsel in its on-going chapter
11 case:

    Firm                         Purpose
    ----                         -------
    Lang Michener                Special Canadian Counsel
    Frost & Jacobs               Special Ohio Counsel
    David Wagner & Assoc., P.C.  Special Securities Counsel

Although the Debtor asked Judge Derby to approve each firm's
employment nunc pro tunc to July 24, 1997, Judge Derby
declined to grant the Debtor's request.  Judge Derby found
that the law firms' employment should be approved no earlier
than the date on which the applications to employ were filed
with the Court.


BIOSYS, INC.: Court Approves Amended Disclosure Statement
---------------------------------------------------------
Biosys, Inc., Crop Genetics International Corporation and
Agridyne Technologies, Inc., obtained Judge E. Stephen
Derby's approval of their Amended Joint Disclosure Statement
filed in support of their Amended Joint Plan of Liquidation
dated September 12, 1997.  The Official Committee of
Unsecured Creditors of Biosys supports the Amended Joint
Plan of Liquidation in its entirety.  

The Plan calls for the distribution of $11 million realized
from the sale of the Debtors' biopesticide and pheromone-
related businesses approved by the Maryland Bankruptcy Court
in January, 1997, to the Debtors' creditors.

Class  Description           Claim Pool  Treatment
-----  -----------           ----------  ---------
  -    Administrative        $1,675,000  100% in Cash
       Claims

  -    Priority Employee        $52,000  100% in Cash
       Claims

  -    Priority Tax Claims     $160,000  100% in Cash

  1    Imperial Secured      $4,875,000  100% in Cash, or
       Claims                            treatment as
                                         otherwise agreed,
                                         in which event
                                         Imperial will  
                                         retain its pre-
                                         petition liens


  2    Western Secured       $1,000,000  100% in Cash, or
       Claims                            treatment as
                                         otherwise agreed,
                                         in which event
                                         Imperial will  
                                         retain its pre-
                                         petition liens

  3    General Unsecured     More than   Pro Rata share of
       Claims              $11,500,000,  Available Cash
                              of which   after payment of
                               Debtors   senior classes,
                            dispute at   subject to a cap of
                                 least   100 cents-on-the-
                            $3,125,000   dollar plus 8%  
                                         interest

  4    Preferred Stock            ---    Pro Rata share of
       Interests                         all Available Cash
                                         after full payment
                                         of all senior  
                                         classes


  5    Common Stock               ---    Shares Canceled
       Interests

Judge Derby has established February 9, 1998, as the Voting
Deadline for creditors to cast ballots for or against the
Plan and has scheduled a confirmation hearing on the Amended
Joint Plan of Liquidation for March 10, 1998, in Baltimore.


BMI TRANSPORTATION: Selling New Philadelphia, Ohio Property
-----------------------------------------------------------
Northern Ohio Materials, Inc., a debtor affiliate of BMI
Transportation, Inc., tells the Manhattan Bankruptcy Court
that it has received a $925,000 offer for the purchase of
its property located at 764 State Route 416 S.E. in New
Philadelphia, Ohio, from William P. Marino.  Subject to
higher an better offers, BMI asks the Court for approval of
the property sale at a hearing scheduled for January 16,
1998 before The Honorable Jeffry H. Gallet.   

The Debtors tell the Court that the ran numerous newspaper
ads offering the property for sale and believe that Mr.
Marino's offer is the highest and best available.  The
Debtors to not propose any competitive bidding procedures or
the payment of any break-up fee to Mr. Marino in the event a
higher and better offer is presented.  


BMI TRANSPORTATION: Selling Terminal Business to Penn Truck
-----------------------------------------------------------
Subject to Court approval, BMI Transportation has agreed to
sell to Penn Tank Lines, Inc., all right, title and interest
in and to all machinery, equipment, furniture, tools, and
similar property located on the premises of its truck
terminals located in Albany and Champlain, New York; Heath,
Ohio; and Waukegan, Illinois in exchange for 1.5% of the
gross revenues generated by Penn during the 240-day period
following the Closing.  

General Electric Capital Corporation has given its consent
to the assumption, assignment and rejection of numerous
vehicle leases, and has agreed to reduce its claims asserted
against BMI by over $2.4 million in connection with these
agreements to facilitate the sale to Penn Truck.

Judge Gallet has scheduled a hearing on this matter for
January 16, 1998 in Manhattan.


BRADLEES, INC.: Amendments to CEO's Employment Agreement
--------------------------------------------------------
Judge Lifland has approved Bradlees' Motion to amend its
employment agreement with Chairman and CEO Peter Thorner,
providing Mr. Thorner with a higher salary and improved
benefits:

          Description of      Old        Amended
   Sec.   Amendment           Contract   Contract Difference
   ----   --------------      --------   -------- ----------
   5.1    Increase in the
          annual base
          salary              $550,000   $725,000   $175,000

   5.2    Increase in
          annual incentive
          bonus from 50% of
          the Executive's
          Annual Base to
          55%, and from
          100% to 110% of
          the Annual Base
          salary if maximum
          goals are
          achieved by the
          Company             $275,000   $398,750   $123,750

  11.3    Termination
          without cause
          * 18 months of
            salary and
            bonus in lump
            sum             $1,237,500 $1,685,625   $448,125
          * 18 months of
            salary and
            bonus, subject
            to mitigation   $1,237,500 $1,685,625   $448,125

  11.4    Termination for
          change of control
          * 24 months of
            salary and bonus
            in lump sum     $1,650,000 $2,247,500   $597,500
          * 12 months of
            salary and
            bonus, subject
            to mitigation     $825,000 $1,123,750   $298,750

   8.0    Estimated SERP
          benefit increase
          based upon the
          increase in
          salary and bonus
          provisions                                $500,000



CAMPO ELECTRONICS: $2.5MM Offered for Chattanooga Property
----------------------------------------------------------
Campo Electronics owns real estate in Chattanooga,
Tennessee, previously used for operation of a retail store.  
The Chattanooga store was closed months ago, and the Debtor
began marketing the property for sale.  Those efforts
culminated in the receipt of a $2.5 million offer from PPG-
Chattanooga.  

The Debtor now asks The Honorable T.M. Brahney, III, sitting
in the U.S. Bankruptcy Court for the Eastern District of
Louisiana, for authority to consummate the sale of the
Chattanooga without further delay.  The Debtors have agreed
that all liens held by Hibernia National Bank will attach to
the proceeds from the sale.  


CHARIVARI HOLDING: Latconsa Group Looking for Fresh Capital
------------------------------------------------------------
Charivari Holding Corp. and 57 Clothing Corp. ask The
Honorable James L. Garrity for permission to retain Latconsa
Group (240 Main St., Suite 2, Little Falls, NJ 07424) to
assist the Debtors in locating possible investment and
related financing.  

In exchange for Latconsa's services -- on a success-only
basis -- the Debtors have agreed to pay 5% on the first
million dollars brought to the company and 2% on any greater
amount.  


CHONG GU: Korean Construction Conglomerate Collapses
----------------------------------------------------
Chong Gu Construction Co. and three other key subsidiaries
of the Chong Gu conglomerate announced that they will
default on $9.9 million in maturing debts and are asking a
court to help reschedule debt payments and allow time to
unload assets.

Chong Gu is South Korea's leading apartment builder,  The
concern borrowed heavily in the early 1990s to build a
department store in Seoul and open a regional television
network in the central provincial city of Taegu.

The group's debts total $713 million, roughly the amount of
its total sales last year.  Apartment sales this year did
not meet expectations.


CRAIG CONSUMER: Additional DIP Financing Approved
-------------------------------------------------
The Honorable Kathleen P. March in Los Angeles has entered
an order authorizing Craig Consumer Electronics, Inc., to
borrow an additional $215,000 on a super-priority secured
basis, subordinate only to the fees of the U.S. Trustee, to
fund expenses which exceeded revenue during the month of
November.


DOEHLER-JARVIS: Price Waterhouse Offering Computer Help
------------------------------------------------------------
Doehler-Jarvis, Inc., Harvard Industries, Inc., and their
debtor affiliates, tell Delaware District Court Judge
Robinson that, since the commencement of their chapter 11
cases, it has become clear that the Debtors' business
software is becoming outdated, causing inefficiencies in key
business areas.  Additionally, the Debtors fear the Year
2000 Problem.  

Accordingly, the Debtors turned to Price Waterhouse to
develop a business software strategy that will address
future manufacturing, purchasing and accounts payable,
financial reporting, sales and order management and
distribution and logistics needs, as well as their Year 2000
Concern.  Price Waterhouse has agreed to solve the Debtors'
software problems for a flat $225,000 fee, and estimates
that implementation of a new software strategy can begin in
March 1998.  


DOEHLER-JARVIS: Key Employee Retention Incentive Plan
-----------------------------------------------------
Doehler-Jarvis, Inc., Harvard Industries, Inc., and their
debtor affiliates, relate that from the Petition Date
through December 12, 1997, approximately 125 full-time,
salaried employees have voluntarily resigned, including
several key employees.  Much of this attrition is directly
attributable to the chapter 11 filing and its attendant
uncertainties.  

To stem the loss of key employees, the Debtors propose a Key
Employee Retention Incentive Program under which 75 Key
Employees will share in a $2.2 million fund, payable upon
the earlier of (a) involuntary termination of a Key Employee
without cause and (b) consummation of a plan of
reorganization.  

The Debtors will present this Program to the Honorable Sue
L. Robinson at a hearing before the U.S. District Court in
Delaware on January 16, 1998.


ELI WITT: Debtor's First Amended Plan Confirmed
-----------------------------------------------
On December 23, 1997, Chief Judge Alexander L. Paskay
entered an Order Confirming the First Amended Plan of
Reorganization, as Modified, proposed by The Eli Witt
Company, Inc.

At the Confirmation Hearing, the Debtor showed the Court,
through testimony offered by Fred Hoyland, Eli Witt's
President and CEO, the Debtor will have sufficient funds --
excluding the $400,000 projected proceeds from the sale of
the Ocala Property -- to fund its obligations under the
Plan.  The Plan requires distributions to creditors totaling
$13.6 million.


FOUR DIAMONDS: Mountain Laurel Resort Shuttered
-----------------------------------------------
After a six-year tax dispute, delinquencies on a $8 million
mortgage note owed to Mellon Bank, a threatened tax sale and
a bankruptcy filing in September 1997, the 35-year-old
Mountain Laurel Resort in the Poconos owned by Four
Diamonds, Inc., closed its doors and laid-off all of its 250
employees two days before Christmas.

Six years ago, Carbon County valued the property, including
its buildings, tennis court, pool and golf course at $19
million and looked for annual tax payments of $320,000.  The
resort skipped property tax payments in 1991, 1992 and 1993.
In 1994, the resort won a 70% reduction in its assessment to
about $6 million, which cut its tax bill to about $100,000 a
year.  Since then, current taxes have been paid, but
delinquent taxes couldn't be paid and negotiated payment
plans failed.

"This property can't support that big a mortgage," Larry
Caprous, president of Thome Management Co., which is
overseeing the closing of the resort, told The Allentown
Morning Call.  "It became a matter of economics. We went as
long as we could, trying to negotiate a settlement with the
bank.  

"The winter season for us has always been a struggle. In
January, we had pretty good ski packages and pretty good
occupancy on the weekend. During the week, though, we were
mostly vacant.  Going into this season with high utility
costs, labor costs and low occupancy, we just couldn't go
any further," Caprous said, noting that only four of the
hotel's 253 rooms were occupied last week.


GUY F. ATKINSON: Exclusivity to be Reviewed January 9th
-------------------------------------------------------
The Honorable Thomas E. Carlson has directed that the
exclusive period during which Guy F. Atkinson Company of
California and its debtor affiliates may file a plan of
reorganization will be reconsidered at a hearing scheduled
in San Francisco for January 9, 1998.  

Prior to the January 9 Hearing, Judge Carlson will permit
the Banks, the Bonding Companies, the Committee and the
Debtor to file (under seal, if they wish) term sheets
outlining the broad framework for one or more plans of
reorganization, including proposals involving third parties.  


HANBO STEEL: Prison Sentences Upheld for Korean Embezzlers
----------------------------------------------------------
The Supreme Court in Seoul upheld a 15-year sentence for the
owner of bankrupted Hanbo Steel Industries Co., peviously
convicted of embezzling company funds and bribing government
officials.  South Korea's highest court also upheld prison
terms of up to six years for five other defendants,
including a former presidential aide, who were involved in
one of the largest bribes-for-loans scandals in South Korea.

Hanbo, South Korea's second-largest steel company, collapsed
in January under the weight of $6 billion in debt, most of
it in low-interest, government-controlled loans.

The Supreme Court ruling upheld the conviction of Hanbo
owner Chung Tae-soo, 73, who was found guilty of embezzling
$213 million and using a portion of it to bribe government
officials, politicians and bank officials.   The court
upheld the three-year suspended sentences of Chung's 43-
year-old son, Bo-kun, who ran the steel firm on behalf of
his father, and to two ruling party members.  The court also
upheld a guilty verdict against Hong In-kil, a lifetime
personal aide to President Kim Young-sam. Hong was sentenced
to six years in prison and fined the amount of the bribe he
received, $670,000.  Opposition legislator Kwon Ro-gap, who
received a five-year term and a fine of $170,000, also
failed to persuade the high court to overturn the appellate
court action.

A probe into Hanbo's bankruptcy revealed a web of bribery
involving politicians and government officials.  The scandal
seriously damaged President Kim's credibility and
popularity.  Another corruption investigation indirectly
spawned by the Hanbo scandal resulted in the arrest of the
president's son. Hyun-chul, 37, who was sentenced in October
to three years in prison for bribery and tax evasion.


KIA MOTORS: Ford Declines Comment About Acquisition Rumors
----------------------------------------------------------
Ford Motor Co. declined to comment on speculation it is
ready to acquire debt-ridden Kia Motors Corp. from the South
Korean government.  Rumors about Ford's interest have been
prompted because Ford already owns 9% of Kia and an
additional 7.5% through its Japanese affiliate Mazda Motors
Corp.

Last week, an economic aide to Korean president-elect Kim
Dae Jung said the Korean government will consider selling
Kia and other bankrupt companies to foreign buyers as a way
of getting the struggling nation back on its feet,  That
agreement by the Korean goverment to restructure its
industries was a condition of the $60 billion bailout
package arranged by the International Monetary Fund.

"It would be inappropriate to speculate on what we may or
may not do regarding Kia," said Tom Hoyt, new markets
communications manager at Ford.  

The Korea Economic Daily quoted an unnamed official at the
Ministry of Finance and Economy as saying Ford is ready to
acquire Kia from state-owned Korea Development Bank early
next year.  The official reportedly said the government
responded positively to Ford's offer and will make a final
decision after discussion with Kim and his economic task
force.

"People are jumping to conclusions just because the country
is under IMF guidance," Kwon Yong Jun, a Kia official, told
the KED.

In other news, Kia said it is closing down all but two
production lines becuase it can't get parts from failed
Mando Machinery Corp.  "We don't have enough parts to keep
the lines going," said Jeon Sang-jin, a Kia official. "We
can't predict when the production will resume.  A lot of
Mando contractors are facing bankruptcy."


LOMAS FINANCIAL: Trustee Sues Ernst & Young for Malpractice
-----------------------------------------------------------
Ernst & Young LLP faces charges of malpractice not just by
the Trustee appointed in the liquidation of Merry-Go-Round
Enterprises, Inc., but also by the Trustee appointed to
oversee the liquidation of Lomas Financial Corp., according
to published reports last week.    

Martin R. Pollner, a Member of the New York-based law firm
of Loeb & Loeb LLP and the trustee appointed in Lomas'
bankruptcy cases, filed suit in state court in Dallas,
Texas, seeking $300 million in compensatory damages for
E&Y's prepetition auditing of Lomas' financial condition.  
The Trustee alleges that E&Y collaborated with and was co-
opted by Lomas' management to conceal financial practices
relating to the $4.2 billion of risky investments in
derivative financial instruments, The Wall Street Journal
reported.  The Journal explains that the Lomas Trustee says
that while Lomas did not lose any money on any derivative-
related trade, the company's marketability was impaired,
impeding Salomon Brothers' ability to find a buyer for
Lomas.  

Lomas was once the largest mortgage company in the U.S.

E&Y denies all allegations levied against it in both the
Lomas and Merry-Go-Round cases.  "The losses Lomas cites in
its complaint were caused by its own decisions, and all of
its allegations against us are totally without merit," E&Y
said in a public statement responding to the charges by the
Lomas Trustee.  


MARUSO SECURITIES: Fifth Japanese Brokerage House Falls
---------------------------------------------------------
A small Japanese brokerage Tuesday became the latest victim
of the nation's financial woes, seeking court protection
from its creditors, according to a news report.

Maruso Securities Co. asked a Tokyo court for permission to
start bankruptcy proceedings, Kyodo News reported. Quoting
credit research agency Teikoku Databank, Kyodo said the
company had some 44.5 billion yen ($342 million) in
liabilities.

Maruso, with about 200 employees, would be the fifth
Japanese brokerage to collapse this year. Major failures
included Yamaichi Securities Co. and Sanyo Securities Co.,
both in November.


MEMOREX TELEX: Settlement of Data General Preference Claim
----------------------------------------------------------
Earlier this year, Memorex Telex Corporation filed an
adversary proceeding against Data General Corporation
seeking recovery of alleged preferential transfers in excess
of $800,000.  Data General asserted various defenses and
counterclaims against MTC and initiated a third party
complaint against MTC's non-debtor parent, Memorex Telex
N.V.  MTNV asserted its defenses, including lack of personal
jurisdiction.  

After evaluating the strengths and weaknesses of their
cases, MTC, Data General and MTNV entered into a series of
negotiations.  Those negotiations culminated in an agreement
to resolve all of the litigation on the following terms:

     (1) Data General will pay $175,000 to the Debtor;

     (2) The Debtors will not contest Data General's   
         $650,000 pre-petition claim; and

     (3) All litigation will be dismissed with prejudice.

The Debtors seek Judge Peter Walsh's approval of this
compromise and settlement pursuant to Bankruptcy Rule 9019,
on negative notice with any objections due by January 12,
1998.


MONTGOMERY WARD: Zolfo Cooper Joins Debtors' Team
-------------------------------------------------
Montgomery Ward seeks the Court's authority to retain and
employ Zolfo Cooper, LLC, as their Special Financial
Advisors and Bankruptcy Consultants, nunc pro tunc to
December 10, 1997.  The Debtors tell Judge Walsh that while
ZC's services may sound similar to those already performed
by Ernst & Young, they are not and the Debtors, E&Y and ZC
have put procedures in place to avoid duplication of effort.  
ZC tells the Court that it has agreed to provide its
services on an hourly fee basis, with ZC's principals and
professionals charging $140 to $395 per hour.  


NITTO KOGYO: Seeks Court Protection from Creditors in Japan
-----------------------------------------------------------
Nitto Kogyo Company, owing 276 billion yen to creditors,
together with its golf course management subsidiary, The
Nitto Life Company, owing 69 billion yen in debts, applied
for a court-mediated settlement with its creditors in the
Tokyo District Court, according to a report published by
Bloomberg News.  

Nitto, boasting membership in excess of 73,000 golfers, owns
and operates 30 golf courses in Japan, five in the United
States.  

Prior to making its application in the Tokyo District Court,
Nitto sold its U.K. operation -- the 800-acre, 132-room
Turnberry Hotel, Golf Courses and Spa, a five-star full-
service resort in Ayreshire, Scotland -- to Starwood Lodging
Corp. for approximately $51.5 million.  


OXFORD HEALTH: New York Regulators Levy $3 Million Fine
-------------------------------------------------------
Oxford Health Plans Inc., a Connecticut-based HMO company
that has drawn fire for delaying tens of millions of dollars
of payments to doctors and hospitals, was fined $3 million
by New York regulators for various insurance violations. The
company also was ordered to pay $500,000 in restitution to
customers and health care providers. The violations cited
Tuesday by the New York State Insurance Department went
beyond the company's highly publicized difficulties paying
medical claims.  Oxford illegally denied coverage to some
applicants based on pre-existing medical conditions,
department spokesman John Calagna said.


PHOENIX INFORMATION: January 14, 1998 Bar Date Established
----------------------------------------------------------
Judge Robert R. McGuire for the United States Bankruptcy
Court for the District of Delaware has entered an order
fixing January 14, 1998 as the deadline for filing all
proofs of claim against Phoenix Information Systems Corp.,
Phoenix Information Group, Inc., and Phoenix Systems, Ltd.


SEARS: Continued Headaches over Reaffirmation Procedures
---------------------------------------------------------
Florida's state pension fund sued Sears, Roebuck & Co.,
asking for $3.5 billion in damages and alleging that Sears,
its senior management and its board of directors breached
their fiduciary duty in its handling of reaffirmations of
debts in consumer bankruptcy cases.  The lawsuit was filed
in Cook County Court in Illinois last week.  The damage
amount is reportedly based on the $320 million charge that
Sears took in the second quarter of 1997; the Fund owns 2.86
million shares of Sears' stock.


SSANG BANG: Michael Jackson Eyes Underwear-Maker's Resort
---------------------------------------------------------
U.S. pop star Michael Jackson flew to South Korea recently
to discuss an investment in a ski resort owned by a South
Korea's bankrupt underwear-maker, Ssang Bang Wool, according
to a report published by the Associated Press.


STREAMLOGIC CORPORATION: November Operating Results
---------------------------------------------------
For the month ended November 30, 1997, Streamlogic
Corporation (fka Micropolis Corporation) reports a net loss
of $170,971 on gross sales of $597,008.  Since the
commencement of Streamlogic's chapter 11 case, the Debtor
has posted a net loss of $943,948 on gross sales of
$4,170,650.  Streamlogic projects a $200,000 loss next
month.


STREAMLOGIC CORPORATION: ONSALE Auctioning Micropolis Drives
------------------------------------------------------------
ONSALE Inc. (NASDAQ:ONSL) reported yesterday that it has
sold more than $1 million worth of Steamlogic Corporation's
Micropolis disk drives using its online auction services.  
ONSALE began auctioning the items on Nov. 25 on its Web site
located at:

          http://www.onsale.com

"ONSALE's auction format is the perfect vehicle for the
complete and efficient liquidation of assets," said Jerry
Kaplan, chief executive officer of ONSALE.  "The frequency
of ONSALE auctions and the ability to reach a geographically
broad group allows ONSALE to quickly and easily sell excess
inventory at the best possible prices. These liquidations
also benefit our core customers -- small businesses and
individuals who are looking for high quality merchandise at
the lowest available price."  


WESTERN PACIFIC: Plan of Reorganization Proposed
------------------------------------------------
Western Pacific Airlines filed its Plan of Reorganization
with the Bankruptcy Court in Denver last week.  The plan
proposes to repay unsecured creditors an estimated 16 cents-
on-the-dollar.  Payments will made in a mixture of cash, 10%
notes and discounted ticket vouchers for travel on WestPac.  
Old WestPac Equity takes nothing under the Plan.

Although the Plan does not have the formal support of the
Creditors' Committee, the filing of the Plan was a condition
to Smith Management's continued financing of post-petition
operations.  Smith is expected to invest up to $50 million
in WestPac during the chapter 11 process, and will provide
another $10-$20 million in Exit Financing.  In exchange,
Smith will own a controlling share of Reorganized WestPac.


WESTMORELAND COAL: Debtors Extend Houlihan Lokey Engagement
-----------------------------------------------------------
Westmoreland Coal Company asks the Bankruptcy Court in
Denver for permission to extend its engagement of Houlihan,
Lokey, Howard & Zulkin as its financial advisor through June
1, 1998.  

The Debtors relate that Houlihan has been instrumental in
assisting Westmoreland with the presentation and negotiation
of its Plan of Reorganization with the United Mine Workers
of America and the Funds represented by the UMWA, as well as
evaluation of the UMWA's counter-proposals.  Westmoreland
discloses that it is currently working closely with Houlihan
and Price Waterhouse to develop yet another Plan proposal.  
In all events, the Debtors are hopeful for a consensual
plan, and believe Houlihan's assistance is vital in that
process.  

                        ---------

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

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 5-7, 1998
   AMERICAN BANKRUPTCY INSTITUTE
      Rocky Mountain Bankruptcy Conference
         Westin Tabor Center, Denver, Colorado
            Contact: 1-703-739-0800

February 19-22, 1998
   COMMERICAL LAW LEAGUE OF AMERICA
      Annual Western District Meeting
         Universal City Hilton Hotel
         Los Angeles, California
            Contact 1-310-470-8487

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 20, 1998
   AMERICAN BANKRUPTCY INSTITUTE
      Bankruptcy Battleground West
         Century Plaza Hotel, Los Angeles, California
            Contact: 1-703-739-0800   

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

April 30-May 3, 1998
   AMERICAN BANKRUPTCY INSTITUTE
      Annual Spring Meeting
         Grand Hyatt, Washington, D.C.
            Contact: 1-703-739-0800

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

May 31-June 5, 1998
   COMMERICAL LAW LEAGUE OF AMERICA
      CLLA Credit Institute
         Marquette University, Milwaukee, Wisconsin
            Contact 1-312-781-2000

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

June 11-14, 1998
   AMERICAN BANKRUPTCY INSTITUTE
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Michigan
            Contact: 1-703-739-0800

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

July 16-19, 1998
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Sea Crest Resort, Falmouth, Massachusetts
            Contact: 1-703-739-0800

August 6-9-1998
   AMERICAN BANKRUPTCY INSTITUTE
      Southeast Bankruptcy Workshop
         Daufuskie Island Club & Resort,
         Hilton Head, South Carolina
            Contact: 1-703-739-0800

September 9-13, 1998
   NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
      Annual Convention
         Sheraton El Conquistador, Tuscon, Arizona
            Contact: 1-803-252-5646

September 17-20, 1998
   AMERICAN BANKRUPTCY INSTITUTE
      Southwest Bankruptcy Conference
         The Inn at Loretta, Santa Fe, New Mexico
            Contact: 1-703-739-0800
  
October 16-20, 1998
   TURNAROUND MANAGEMENT ASSOCIATION
      1998 Annual Conference
         The Westin Hotel, Chicago, Illinois
            Contact 1-312-857-7734

December 3-5, 1998
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Westin La Paloma, Tucson, Arizona
            Contact: 1-703-739-0800

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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