TCR_Public/980119.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, January 19, 1998, Vol. 2, No. 12
                      
                     Headlines

BRADLEES: New $250 Million DIP Facility
COLOR TILE: Seeks Extension of Exclusivity
COUNTY SEAT: Substitution of Attorneys
DOW CORNING: Ruling May Help Some Suits
EDISON BROTHERS: Switches Accountants

FARM FRESH: Interim Okay To Use $40M Of DIP Pact
GIBSON'S: Hearing to Extend Exclusivity
GREAT LAKES PULP: Reorganization Plan Confirmed
HOMEPLACE STORES: Seeks to Dump Merrill Lynch
L.LURIA: Seeks 2nd Extension to Assume or Reject Leases

L.A. GEAR: Says Leading Bond Holders Agree to Plan                           
LEVITZ: Committee Responds to Motions
LEVITZ: Debtors Seek Issuance of Surety Bonds
MIDCOM: Enters Into Purchase Agreement with DICOMM
MOLTEN METAL: Seeks to Employ Latham & Watkins

NORTHWESTERN PACIFIC: To Pick Private Rail Operator
PHOENIX INFORMATION: Equity Responds to Motion to Reject
PHOENIX: Equity Objects to financial Advisor
POCKET: Asks to Extend Exclusive Right to Obtain Acceptances
POCKET: Parties Agree To Extend Deadlines To January 30

SEAGULL ENTERTAINMENT: Summary Judgment Awarded
TOWN & COUNTRY: Amended Disclosure Statement Gets OK
VERTEX-COMPUTER: Effectuates its Plan of Reorganization
WESTERN PACIFIC: Court Orders Use of Cash Collateral
WESTMORELAND COAL: Objection to Late Proof of Claim

BOND PRICING: For the Week of January 12, 1998

                 -----------------

BRADLEES: New $250 Million DIP Facility
---------------------------------------
As reported in its Form 10-Q for the quarterly period ended
November 1, 1997, which was filed on December 16, 1997,
Bradlees, Inc. and subsidiaries (collectively the "Company")
obtained a commitment in December for a new $250 million
financing facility), with a sublimit of $125 million for
letters of credit, with BankBoston, N.A. ("BBNA"),as
Administrative Agent and as Issuing Bank, under which the
Company is allowed to borrow (in the form of direct loans
and letters of credit) up to $250 million for general
corporate purposes, working capital and inventory purchases.  
In addition, as part of the New Facility, the Company
obtained a commitment from BBNA for a $250 million post-
Chapter 11 revolving line of credit.  The New Facility was
approved by the Bankruptcy Court on December 22, 1997 and
finalized on December 23, 1997.  The New Facility replaced
the Company's prior $200 million DIP facility.

A full-text copy of the filing and the Revolving Credit and
Guaranty Agreement is available via the Internet at:

   http://www.sec.gov/Archives/edgar/data/887356/0000887356-98-000001.txt


COLOR TILE: Seeks Extension of Exclusivity
------------------------------------------
A hearing will be held on January 29, 1998 on the motion of
the debtors, Color Tile, Inc. et al. to further extend, for
a period of 180 days, the debtors' exclusive periods in
which to file a plan or plans of reorganization and to
solicit acceptances thereof. The debtors maintain that they
are in the midst of a critical period in these cases.  They
are in the process of transition with respect to the
implementation of the Global Settlement.


COUNTY SEAT: Substitution of Attorneys
--------------------------------------
Skadden Arps, Slate, Meagher & Flom LLP, attorneys to County
Seat, Inc., County Seat Stores, Inc. and CSS Trade Names,
Inc. withdraw as counsel and Jeffrey M. Schlerf of The
Bayard Firm, Arnold S. Albert, of Caplan, Buckner, Rohrbaugh
& Albert, and Emil Hirsch, of Freedman, Levy, Kroll &
Simonds substitute as counsel to the debtors with respect to
all matters in these cases.


DOW CORNING: Ruling May Help Some Suits
---------------------------------------
The Advocate Baton Rouge LA reported on 01/14/98 that
Louisiana women who claim breast implants ruined their
health may have an easier time collecting money against Dow
Chemical Co. under a ruling Tuesday.

In a case closely watched around the country, state Judge
Yada Magee in New Orleans decided some 1,800 women will not
have to again prove the company was negligent in testing
silicone when they file their individual lawsuits.

The convoluted case made headlines across the nation in
August when jurors found that Dow Chemical Co. was negligent
in testing silicone for breast implants, lied about the
possible risks and conspired with manufacturer Dow
Corning to hide potential health dangers. It was the
nation's first such case to go to trial as a statewide
class-action.

Then in December, Magee decided that the claims by the 1,800
women were too dissimilar to group all in one lawsuit. She
said the trial would resume with just the original eight
plaintiffs, not 1,800. The same jurors who decided the
liability in August were to also determine damages for the
eight.

Tuesday's ruling means that the jury's verdict finding Dow
Chemical negligent will be binding on separate lawsuits for
damages filed by any of the 1,800 Louisiana women who were
left out when the judge decertified the case.

The decision was hailed as a substantive ruling by the
plaintiffs. Dow Chemical said it was inconsistent, and would
appeal it.  "This is a major victory for the plaintiffs
because it applies Dow Chemical's liability to the 1,800
women. It is a major defeat for Dow Chemical," said Dawn
Barrios, lead attorney for the women.

Dow Chemical spokesman John Musser said the ruling makes it
clear that the first phase of the trial only dealt with
certain liability issues. The women will still have to prove
the implants made them sick, and to prove their damages.

Dow Chemical all along has maintained that it had nothing to
do with the manufacture of implants by Dow Corning or the
testing of silicone for breast implants.   Dow Corning is
co-owned by Dow Chemical and Corning Inc. The jointly owned
corporation filed for bankruptcy protection in 1995 in the
face of tens of thousands of lawsuits.

What happens next is still unclear. The women cut out of the
Louisiana case by the judge's earlier decertification order
can sue to collect damages, but their cases will probably be
heard in Michigan. That is where the Dow Corning bankruptcy
cases have been consolidated.


EDISON BROTHERS: Switches Accountants
-------------------------------------
On January 8, 1998, upon the recommendation of the
Audit Committee of the Board of Directors (the "Board") of
Edison Brothers Stores, Inc. ("Edison"), the Board selected
Arthur Andersen LLP ("Arthur Andersen") to serve as
independent public accountants of Edison and its
subsidiaries for the fiscal year ending January 31, 1998.

Ernst & Young LLP ("Ernst & Young") was dismissed as
auditors of Edison effective January 8, 1998.  


FARM FRESH: Interim Okay To Use $40M Of DIP Pact
------------------------------------------------
Federal Filings Inc. reported that Farm Fresh received
interim approval to borrow up to $40 million, including a
$10 million letter of credit sub-facility, from prepetition
and debtor-in-possession lenders Fleet Capital Corp. and
Heller Financial Inc.  The DIP credit facility has a
maximum principal amount of $50 million and a $20 million
sub-limit for letters of credit.  A final hearing is set for
Jan. 28.

The purchase agreement under which Richfood Holdings Inc.
agreed to acquire Farm Fresh provides a $4 million breakup
fee and $1 million of expense reimbursement if the agreement
is terminated under certain circumstances.  The court
approved the provisions on Jan. 7.


GIBSON'S: Hearing to Extend Exclusivity
----------------------------------------
A hearing to consider the motion of the debtors, Gibson's
Holding Company, et al. for an order further extending
exclusive periods to file a plan and solicit acceptances
thereof will be held on January 21, 1998.  The debtors are
seeking an extension of an additional thirty days, through
February 18, 1997 for the exclusive right to file a plan,
and extending the period during which the debtors have the
exclusive right to solicit acceptances of a plan through
April 17, 1998.

The debtors claim that they have made significant progress
in addressing their operational and financial problems that
led to the filing of these cases.  With the help of the DIP
facility, the debtors have been able to restock and
merchandise their stores at adequate levels.  The
restoration of better trade credit continues to be one of
the debtors' priority goals.  The debtors have implemented a
reclamation program, they have developed a three year
business plan together with the Committee and they have
progressed in resolving their federal income tax
liabilities.


GREAT LAKES PULP: Reorganization Plan Confirmed
-----------------------------------------------
Federal Filing Inc. reported on January 15, 1998 that the
court has confirmed the reorganization plan of Great Lakes
Pulp Co. and, with "term sheets on the table," the company
expects to emerge from bankruptcy within the next three
weeks.  The slightly modified plan reflected small technical
changes that did not affect creditor treatment. A funding
group, comprised of Cerberus Partners L.P. and Oaktree
Capital Management L.L.C., was to provide $14 million of new
equity and $7 million of new financing on the plan's
effective date if funding was unavailable from other
sources.


HOMEPLACE STORES: Seeks to Dump Merrill Lynch
---------------------------------------------
Federal Filings Inc. reported on HomePlace Stores
Inc. -- Having received approval to hire Peter J.
Solomon Co. Ltd. and Price Waterhouse L.L.P., HomePlace is
seeking court authority to reject its prepetition financial
advisory agreement with Merrill Lynch & Co.  The retailer
said Merrill Lynch was retained in order to raise additional
equity financing "at a time when Chapter 11 was not, in the
HomePlace Group's business judgment, a likely alternative."


L.LURIA: Seeks 2nd Extension to Assume or Reject Leases
-------------------------------------------------------
The debtor, L.Luria & Son, Inc. seeks an order extending the
time for the debtor to assume or reject the remaining leases
of non-residential real property for a period of 30 days
through and including February 9, 1998.  Only three leases
remain to be administered by the debtor and the estate, and
the debtor received verbal offers with respect to these
stores from Ross Stores Inc. and Beal's Stores.  The debtor
reasonably believes that it will be able to obtain a final
decision as to their intentions with respect to the
remaining leases by February 9, 1998.


L.A. GEAR: Says Leading Bond Holders Agree to Plan                           
--------------------------------------------------
The Capital Times reported on 01/14/98 that struggling
sneaker maker L.A. Gear filed for Chapter 11 bankruptcy
protection but said the move should not affect operations.

The company expected to file a reorganization plan next week
in U.S. Bankruptcy Court, and said its leading bond holders
have agreed to it.  "We believe that the new L.A. Gear that
will emerge will be more efficient, more focused on customer
satisfaction and better able to provide to the customer high
quality products with innovative designs," company Chief
Executive Officer David Gatto said Tuesday.

L.A. Gear was one of the success stories of the 1980s,
largely due to the popularity of its women's shoes, but
forays into such areas as the men's performance market and
apparel were less successful.

The Orange County Register reported on January 14, 1998 that
the company  said in a statement that it had reached an
agreement with an unofficial committee of bondholders
holding its 7.75 percent convertible subordinated
debentures, due in 2002, on a comprehensive financial
restructuring.

"During our restructuring process, we fully expect to
deliver all of our pending orders and to proceed with our
fall 1998 line of footwear," said David Gatto, L.A. Gear
chairman and chief executive.

In November the company cut 60 jobs from its Santa Monica,
headquarters. Before the job cuts, L.A. Gear employed 212
workers in the United States and five other countries.
The plan announced Tuesday would eliminate all outstanding
common shares of the company without consideration, with the
bondholders receiving up to 2.375 million shares of a newly
created Series A convertible preferred stock.

Additional shares of the new Series A preferred stock will
be divided among other unsecured creditors and among holders
of L.A. Gear's existing Series B preferred stock and Libra
Investments, L.A. Gear's investment adviser. All of the new
common stock initially will be issued to the holders of L.A.
Gear's existing Series B preferred stock and to Libra
Investments.


LEVITZ: Committee Responds to Motions
-------------------------------------
The Official Committee of Unsecured Creditors of Levitz
Furniture Incorporated responded to the motion of the
debtors to employ Retail Consulting Services, Inc. as real
estate consultants.

The Committee agrees to the retention of the firm but not
the method of computation of the compensation to be
provided.  The Commmittee reserves its rights to review with
the debtors the method ov calculating the compensation over
the next 30 days and the right to make further application
to the court if there is a dispute regarding that
compensation.

The Committee also responded to the debtor's motion
authorizing rejection of certain advertising contracts.  The
Committee supports the rejection of the contracts in that
they relate to markets in which the debtors no longer
operate, they include unattainable goals or unattractive
rates, or they will expire in the near term and offer no
benefit.

The Committee also responded to the debtor's motion for an
order authorizing the debtors to pay certain prepetition
real estate tax obligations in the amount of approximately
$1.2 million.  The Committee agrees with the motion.


LEVITZ: Debtors Seek Issuance of Surety Bonds
---------------------------------------------
Levitz Furniture Incorporated, et al., debtors are seeking
authority for the debtors to issue surety bonds with
Travelers Casualty & Surety Company of America as adequate
assurance for utility companies.  The debtors believe that
the sum of the issued Surety Bonds' face amounts will be
between $300,000 and $350,000.  The debtors further request
authorization to obtain issuance of the letters of credit to
Travelers as security for the general contract of indemnity,
to be executed with the Surety Bonds.

The debtors obtain a more favorable interest rate under the
DIP Financing Agreement by having one or more letters of
credit issued to Travelers than by paying cash security
deposits directly to the Utilities.  The Letters of Credit
will be issued to Travelers in the aggregate amount of the
penal sums of the Surety Bonds.

In addition, by having Travelers administer the Surety
bonds, the debtors' personnel will not have to track
indiviudual security deposits of letters of credit given or
issued to the Utilities.


MIDCOM: Enters Into Purchase Agreement with DICOMM
--------------------------------------------------
MIDCOM Communications Inc. announced today that it has
entered into an asset purchase agreement with DICOMM
Ventures, Inc. of Lynn, Massachusetts.  

DICOMM Ventures is a private investment company that invests
in information technology and telecommunications companies.  
Under the terms of the agreement, DICOMM will purchase the
assets of the MIDCOM Enhanced Facsimile and Electronic
Messaging subsidiary, AdVal, Inc.  for $6.6 million (subject
to certain adjustments).  

Under bankruptcy code procedures the agreement will be
submitted to the Bankruptcy Court for approval.  If accepted
by the court, other interested purchasers will have the
opportunity to top DICOMM's offering price on similar
terms and conditions to those set forth in the agreement
between MIDCOM and DICOMM.  

Founded in 1989, MIDCOM provides telecommunications services
to small and medium-sized businesses nationwide.  The
company has regional offices throughout the nation and
currently invoices approximately 100,000 customer locations
monthly.  MIDCOM and its subsidiaries filed for protection
under Chapter 11 of the US Bankruptcy code on Nov. 7, 1997.  


MOLTEN METAL: Seeks to Employ Latham & Watkins
----------------------------------------------
The debtors, Molten Metal Technology, Inc. et al. claim that
they have an immediate need to retain special government
contracts counsel, and that Roger S. Goldman and Latham &
Watkins have represented the debtors as special government
contracts counsel, and specifically have represented the
debtors in connection with an ongoing government
investigation.  The largest customer for the debtors'
nuclear services business is the United States government
and the debtor requires the assistance of special counsel
for all aspects of nuclear and other service contracting
with the federal government.

The firm holds a prepetition claim against the debtor's
estate in the amount of $395,597. for legal services
rendered to the debtors prior to the Chapter 11 filings.


NORTHWESTERN PACIFIC: To Pick Private Rail Operator
---------------------------------------------------
The Press Democrat Santa Rosa reported on 01/14/98 that  
officials of the publicly owned Northwestern Pacific
Railroad, almost $5 million in debt and losing thousands of
dollars a month, will decide today whether to turn day-to-
day operations over to a private company.

Without a private operator, officials said Tuesday, the
financially troubled railroad may not survive.  "We can't
afford to continue to absorb the operating losses, and we
don't have enough money to break out of this spiral," said
Allan Hemphill, a Sonoma County director on the board of the
North Coast Railroad Authority, the political board that
oversees the NWP.

"The original intent there was to be a private operator,"
said Dan Hauser, executive director of the authority who as
a state assemblyman was co-author of legislation that put
the railroad into public hands.

The board is scheduled today at a meeting in Willits to
choose between two operators, one comprised of a group of
North Coast shippers and the other an Elgin, Ill., railroad
company.  Under both proposals, the NCRA would reap part of
any potential profits, from $370,000 to $400,000 a year, but
only after spending at least $10 million to upgrade the
tracks and promising to make repairs during any natural
disasters, which plague the railroad almost annually.
The northernmost segment of the rail line, which is closed
every winter by slides and flooding, is owned by the NCRA,
purchased out of bankruptcy with state funds. The
southernmost segment is owned by the Northwestern Pacific
Railroad Authority, another public agency, and was purchased
with state and federal money from Southern Pacific.

The railroad has been in financial trouble since the
takeover by the NCRA, with natural disasters causing
millions of dollars in damage and the authority unable to
haul enough freight across the line to make ends meet.

The railroad also had been losing $150,000 to $200,000 a
month, but with layoffs and cost-cutting measures, the loss
was trimmed to $36,000 for all of last year.  But the
railroad still owes $4.9 million to the contractors who
repaired track and damage from slides of the past several
years in the Eel River Canyon. Federal Emergency Management
Administration disaster funds, which could be from
$7 million to $12.5 million, are being withheld until
federal auditors are assured the money was properly spent.

"We're scrambling to buy fuel, but we'd have our creditors
paid off and have money in the back if we had the FEMA
money," Hauser said. "That's the absurdity of this whole
thing."  The advantages to bringing in a private operator,
Hauser said, would be a level of railroad expertise and
capital investment the NCRA cannot provide.

The shippers group, which would be operated under Woodside
Consulting of Menlo Park, is backed by Pacific Lumber of
Scotia, Louisiana-Pacific of Eureka, Simpson Lumber of
Arcata, Blue Lake Forest Products in Blue Lake, Mead Clark
in Santa Rosa, Dairymen's Feed in Petaluma and Parnum Paving
in Ukiah.  John Williams, Woodside executive director, said
under their proposal, in a normal year the group would pay
NCRA about $400,000 as its share of the profits.

The proposal by Rail-Ways Inc. of Elgin, Ill., would pay
about $370,000 in lease and profits to the NCRA, according
to its summary.  The proposal, however, requires Rail-Ways
be given exclusive rights to all train operations on all 316
miles of line, which raises questions about the future of
commute trains in Sonoma and Marin counties.

Sonoma County Supervisor Jim Harberson, who serves on the
board that owns the southern segment of the line, said
anything the NCRA negotiates would be subject to the
approval of his authority, and they would not approve
anything that would jeopardize commute train service.

"They don't have the authority to tie down what happens on
our tracks," said Harberson, who said he otherwise supports
a private operator.  Hauser said a final contract will still
have to be negotiated with whichever operator the board
chooses.  Hauser also said the Rail-Ways proposal would not
preclude commute trains.


PHOENIX INFORMATION: Equity Responds to Motion to Reject
-------------------------------------------------------
The Official Equity Committee joins in requesting an order
permitting rejection of the Articles of Association of
American aviation Limited as constituting an executory
contract or for determination that the anti-alienation
provisions contained therein are invalid.  However the
Committee also believes that the anti-alienation provisions
are not applicable or enforceable against the debtor and,
accordingly, rejection of the Articles of Association would
be unnecessary.

The debtor entered into an Options Agreement with S-C
Phoenix Holdings, LLC and Quantum Industrial Partners, LDC.  
American Aviation Limited was wholly-owned by S-C and
Quantum.  The Options Agreement sets forth the contractual
terms with respect to the acquisition and transfer of share
of stock in AA to Phoenix.  Paragraph 4 of the Options
Agreement states that `the AA shares conveyed by S-C and
Quantum upon exercise of the Call Option and/or Put Option
shall be, upon such conveyance, fully paid, non-assessable,
subject to no call or right of redemption and free and clear
of all liens, claims and encumbrances of any nature.  This
paragraph specifically waives the encumbrance which may
otherwise be applicable through the Articles of Association.

The Committee states that the Options Agreements entered
into with S-C and Quantum modifies and supersedes the
Articles of Association, specifically with respect to the
transferability of the AA shares sold to Phoenix. By
entering into the Options Agreements, S-C and Quantum waived
the restrictions on alienation set forth in the Articles of
Association, and S-C and Quantum are estopped by their
actions from asserting restrictions on transferability of
the AA stock.


PHOENIX: Equity Objects to financial Advisor
--------------------------------------------
The Official Committee of Equity Security Holders objects to
the application of the debtors, Phoenix Information Systems
Corp., Phoenix System Ltd. and Phoenix Systems Group, Inc.
seeking authority to retain Benedetto, Garland & Co. as
financial advisor.

The Committee objects to such financial advisors because
Phoenix has asserted that it did not generate any
significant revenue, earnings or history of operations from
inception through March 31, 1997.  The committee claims that
the proposed fee to Benedetto is "wildly excessive and
unreasonable, especially with respect to the exorbitant
fixed fee for the first two months ($200,000).  The
committee represents that this payment is a sub rosa payment
of prepetition debts to Benedetto, through the guise of
paying excessively high post petition fees.


POCKET: Asks to Extend Exclusive Right to Obtain Acceptances
------------------------------------------------------------
Pocket Communications, Inc. filed a motion for an order
further extending the debtors' exclusive right to obtain
acceptances.

The requested extension will allow the debtors and the other
main constituents herein an opportunity to consummate a
consensual restructuring.

The debtor requests an extension through and including
February 26, 1998.  Since the FCC election deadline was
extended to February 26, 1998, the debtor seek to deep
exclusivity on track with the FCC elections deadline so that
the parties can continue their efforts to reach a consensus
on both how to exercise the election of the FCC options and
how to integrate that election into a feasible plan of
reorganization.


POCKET: Parties Agree To Extend Deadlines To January 30
-------------------------------------------------------
Federal Filings, Inc. reported on January 15, 1998 that
deadlines for the maturity of Pocket Communications debtor-
in-possession financing and termination of its 43 wireless
licenses have been pushed back to Jan. 30 pursuant to an
agreement among the parties.  They agreed to extend the
deadlines from the Jan. 15 date because the Federal
Communications Commission extended the Jan. 15 deadline to
Feb. 26 for C-Block license holders to elect a debt
restructuring option and there have been further
developments in negotiations among all parties
for potential reorganization plans.


SEAGULL ENTERTAINMENT: Summary Judgment Awarded
-----------------------------------------------
Kaleidoscope Media Group Inc. (OTC BB:KMGG, Frankfurt and
Berlin Exchanges:BNN) announced Thursday that its
subsidiary Seagull Entertainment, was awarded summary
judgment dismissing an involuntary bankruptcy filed against
it that was previously announced.  

A proposed order has been lodged with court for entry.  
The order lodged with the court provides for an award of
compensatory and punative damages, for the bad faith filing
of the petition.

Kaleidoscope Media Group Inc. (OTC BB:KMGG, Frankfurt and
Berlin Exchanges:BNN) is a vertically integrated sports and
entertainment marketing company with offices in New York,
Los Angeles, and Miami.  Kaleidoscope Media Group's
operating companies are Seagull Entertainment, Hollywood
Connection LLC (direct marketing), Kaleidoscope Consulting
and Kaleidoscope Sports.  Current KMG sports properties
include tennis, boxing, and fitness.  KMG produces
internationally recognized television programs including
"Tarzan"  (series), "Team Xtreme" (series), and "Merlin:  
The Magic Begins."


TOWN & COUNTRY: Amended Disclosure Statement Gets OK
----------------------------------------------------
It was reported on January 14, 1998 by Federal Filings, Inc.
that the court approved the amended disclosure statement of
Town & Country Corp.  The court approved Town &
Country's amended disclosure statement last week, allowing
the February 12 confirmation hearing to proceed as
scheduled.  The company filed the modified document to
reflect clarifications and corrections made to the
disclosure statement.


VERTEX-COMPUTER: Effectuates its Plan of Reorganization
-------------------------------------------------------
Vertex Computer Cable & Products, Inc. (OTC: VTXL), formerly
VTX Electronics Corp., which filed a petition for
reorganization under Chapter 11 of the Bankruptcy Code on
January 10, 1997, announced today that it has obtained exit
financing with Congress Financial Corp. and has consummated
its Plan of Reorganization.  As previously announced, the
Plan includes a one-for-five reverse common stock split,
based on a record date of September 29, 1997, the date of
the approval of the Disclosure Statement in accordance with
Bankruptcy Code and Rules.  The reverse stock split became
effective on December 29, 1997.  

Vertex Computer Cable & Products, Inc., founded over 27
years ago, is a manufacturer of custom-made cable assemblies
used in providing connectivity solutions in networks for
customers operating a wide range of voice, data and
video communication systems.  Howard Griffith, the President
of the Company said: "The entire organization is excited now
that we can focus only on the things we do best -- design,
manufacture and sales of quality cable assemblies."  


WESTERN PACIFIC: Court Orders Use of Cash Collateral
----------------------------------------------------
Judge Sidney Brooks entered an order regarding the debtor's
motion for use of cash collateral. The total collateral
account is $10,195,635.

The Court found that the lenders failed to make a wire
transfer of $1.37 million as required by a letter agreement
of September 19, 1997, despite the fact that the lenders
tried to rely on anticipatory repudiation. The Court looked
to the loan terms to determine the appropriate level of
adequate protection.  In this case, the Lenders were
directors constituting a majority of Western Pacific's
Board, and as such they knew the airlines' finances better
than anyone else.  The Lenders agreed to a Threshold Amount
of $8 million and a method of calculating the Threshold.

The Court ordered that Western Pacific is authorized to use
cash collateral above a Threshold Amount, consistent with
the letter agreement of September 19, 1997, $8,874,000. as
established at preliminary hearing.


WESTMORELAND COAL: Objection to Late Proof of Claim
---------------------------------------------------
Westmoreland Coal Company, et al., debtors object to the
proof of claim filed by the Commonwealth of Virginia, the
Virginia Workers' Compensation Commission, and the Uninsured
Employers fund.  The Commonwealth claims that the court
should excuse the late filing of its proof of claim due to
"excusable neglect."  

The debtors claim that notice of the Bar Date Order were
properly mailed and consequently received.  The debtor
wishes to distinguish between excusable neglect and mere
neglect.  The Bar Date order does not apply to present or
former employees, and disallowance of the Commonwealth's
claim would not prejudice the rights of an individual
workers' compensation.

The Commonwealth also states that its objection to the asset
sale was an informal proof of claim.  However, in this case
the debtors state that the sale objection does not include a
demand by any of those entities against the debtors' estates
for payment of such a deficiency.  Consequently, the sale
objection cannot be deemed an "informal claim."


BOND PRICING: For the Week of January 12, 1998
----------------------------------------------
DLS Capital Partners, Inc., reports the bond pricing for the
week of January 12, 1998.

The following are indicated prices for selected issues:

Amer Telecasting 0/14 1/2 '04              28 - 30
APS 11 7/8 '06                             30 - 32 (f)
Boston Chicken 7 3/4 '04                   61 - 62
Bradlees 11 '02                             5 - 6 (f)
Brunos 10 1/2 '05                          40 - 42
CAI Wireless 12 1/4 '02                26 1/2 - 28
Cityscape 12 3/4 '04                       45 - 47
Echo Bay 11 '27                            80 - 84
Harrah's Jazz 14 1/4 '01                   31 - 33 (f)
Hechinger 9.45 '12                         74 - 76
Hill's 12 1/2 '03                          82 - 83
Grand Union 12 '04                         54 - 55
Great Bay 10 7/8 '04                       79 - 80 (f)
Levitz 9 5/8 '03                           34 - 36 (f)
Liggett 11 1/2 '99                         66 - 69
Marvel 0 '98                                4 - 4 1/2
Mobilemedia 9 3/8 '07                  10 1/2 - 12 (f)
Mosler 11 '03                              76 - 78
Penn Traffic 9 5/8 '05                     57 - 58
Royal Oak 11 '06                           63 - 66
Speedy Muffler 10 7/8 '06                  70 - 73
Stratosphere 14 1/2 '02                    55 - 58  (f)
Trump Castle 11 3/4 '03                    92 - 93
Wickes 11 4/8 '03                      95 1/2 - 96 1/2

Big moves this week in the bonds of Bruno's on an asset sale
and bankruptcy filing from APS.  

                       ---------

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, Editor.   
  
Copyright 1998.  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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