TCR_Public/980304.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, March 4, 1998, Vol. 2, No. 43                 
                    
                   Headlines

BIDERMANN INDUSTRIES: Seeks To Extend $55M DIP Pact
BRUNO'S: Sale Of 13 Atlanta Stores For $18M Okayed
CENTURY DESIGN: Files for Bankruptcy
DOEHLER-JARVIS: Plans Insurance Premium Financing
DOEHLER-JARVIS: To Reject Consulting Agreement

DOW CORNING: Hearing on Disclosure Statement Set
FARM FRESH: Court Approves Disclosure Statement
GAYLORD: Seeks to Extend Exclusivity
GENERAL WIRELESS: Lawsuit by Creditor Prompted Bankruptcy
GREATE BAY HOTEL: Court Authorizes Special Labor Counsel

GULF RESOURCES: Trustee Seeks Special Counsel
INTERNATIONAL META: Files Voluntary Chapter 11 Petition   
MAIDENFORM: Wins Exclusivity Extension Through June 30
MOLTEN METAL: New $20 Million Loan Package
MONTGOMERY WARD: Loss tops $1 Billion in 1997

PARAGON TRADE: Court Approves Patent Counsel for Committee
PARAGON TRADE: Extension to Assume or Reject Leases
PARAGON TRADE: Wachovia Bank Seeks Recovery Over $2 Million
QUADRAX CORP: Case Summary & 20 Largest Creditors
STREAMLOGIC: Statement of Operations Filed

SUNSHINE REHAB: Case Converted to Chapter 7
THE SINGING MACHINE: Emerges from Chapter 11
VIDEOLAN: Files for Bankruptcy Protection

                   *********

BIDERMANN INDUSTRIES: Seeks To Extend $55M DIP Pact
---------------------------------------------------
Bidermann Industries USA Inc. is seeking to the termination
date of its $55 million debtor-in-possession financing
agreement with Nationsbank N.A. and The CIT Group/Business
Credit Inc. from April 17 to Oct. 17 to give the company
additional time to confirm a reorganization plan.  A
hearing is set for March 16. (Federal Filings, Inc. 02-Mar-
1998)


BRUNO'S: Sale Of 13 Atlanta Stores For $18M Okayed
--------------------------------------------------
Bruno's received approval to sell 13 stores in the Atlanta
area for $18 million cash to Ingles Markets Inc., an
Asheville, N.C.-based supermarket chain with a significant
presence in Georgia.  The Feb. 19 order also permits
Bruno's to pay Furman Selz L.L.C., the investment banking
firm that marketed the stores, $250,000 for its services
plus reimbursement of out-of-pocket expenses. (Federal
Filings, Inc. 02-Mar-1998)


CENTURY DESIGN: Files for Bankruptcy
------------------------------------
Century Design Inc., the Hopkins technical communications
company that abruptly threw 300-plus employees out of work
when it closed its doors with no warning in mid-October,
filed Thursday to liquidate under a Chapter 7
bankruptcy.

The bankruptcy filing, signed by Stuart Cohen, Century
founder and president, claimed liabilities of $1.5 million,
including about $170,000 owed to employees, and assets of
$251,000. When the company shut down, its employees
were owed at least three weeks' pay, plus unpaid medical
bills that the self-insured company was supposed to cover.
Employees' 401(k) pension accounts also were frozen.

Century's attorney in the bankruptcy action, William Kampf,
said the company closed because its financing failed.  Its
bank, National City Bank of Minneapolis, seized its assets,
including some money that belonged to employees,
"liquidated {the assets} and paid themselves off."

Century filed suit against National City last November,
claiming that the bank wrongfully seized more than $90,000
in accounts earmarked for employee salary deferrals,
insurance premiums and benefit claims. National City froze
the assets to cover a $1.2 million debt it was owed by
Century, according to Dick Wagner, a former Century vice
president.

The bank's attorney, Thomas Keller III, said the charges
"are absolutely, categorically denied by National City
Bank," but that he couldn't comment further because of the
pending litigation. (Star Tribune Twin Cities 02/28/98)


DOEHLER-JARVIS: Plans Insurance Premium Financing
-------------------------------------------------
Doehler-Jarvis, Inc. and its affiliated debtors filed a
motion for an order authorizing the debtors to enter into
an insurance premium financing agreement.  The total
premiums for the insurance coverage for the period February
1, 1998 through January 31, 1999 is $777,247.  The charge
for the financing is $12,425.

The financing of insurance premiums will, according to the
debtors, enable the debtors to maintain a more consistent
cash flow position while maintaining its insurance coverage
for all of their property.  The debtors have been unable to
finance the policy premiums with any other party, including
the postpetition lenders, on terms more favorable than
those offered by A.I. Credit.


DOEHLER-JARVIS: To Reject Consulting Agreement
----------------------------------------------
Doehler-Jarvis, Inc. et al., debtors and Gemini Consulting,
Inc. are parties to a certain consulting agreement, with a
fee of $1.7 million plus actual expenses.

After the petition was filed, Doehler-Jarvis determined
that it no longer required the services of Gemini.  Gemini
consents to the rejection of the agreement and the parties
agree to an allowed administrative expense of $2,656.


DOW CORNING: Hearing on Disclosure Statement Set
------------------------------------------------
The hearing to consider the approval of the disclosure
statement will be held on April 6, 1998 and continuing on
April 7 and 8, 1998.  Written objections to the disclosure
statement must be filed no later than March 24, 1998.


FARM FRESH: Court Approves Disclosure Statement
-----------------------------------------------
On February 20, 1998, the court entered an order approving
the disclosure statement, confirming the joint plan of
reorganization and approving the asset purchase agreement  
of FF Holdings Corporation and Farm Fresh, Inc., debtors.

The deadline for filing proofs of claim against either
Holdings or Farm Fresh must be filed on or before March 31,
1998.


GAYLORD: Seeks to Extend Exclusivity
------------------------------------
Gaylord Companies, Inc. and its affiliated companies, as
debtors, are seeking to extend the period in which the
debtors may exclusively file and solicit acceptance of
their Chapter 11 plan(s) of reorganization.  The debtor
requests an extension for filing the plan for 60 days,
through and including May 12, 1998 and the exclusive period
to solicit acceptances thereof approximately 60 days
through and including July 13, 1998.

The debtors are exploring possibilities for reorganization
and sale which involve different combinations of the
debtors or their assets, and for this reason the debtors
seek the extensions.  The Committee supports the extension.


GENERAL WIRELESS: Lawsuit by Creditor Prompted Bankruptcy
---------------------------------------------------------
Last year, General Wireless Inc. put 14 of its units - each
of which had a license to provide wireless phone service in
one market - into Chapter 11 in a bid to reorganize the
company.  The full company went the same route late last
month after Hyundai Electronics America sued it over a
$49.3 million loan a few weeks earlier, documents say.

Hyundai's suit has been put on hold until the bankruptcy is
resolved, the documents indicate. In 1996, a number of
relatively small companies, including General Wireless, bid
a total of $10.2 billion for the licenses and the right to
compete with major wireless carriers like Sprint and AT&T
Wireless.

But the C-block holders "were too optimistic about the
market potential for PCS," said Hongjun Li,
telecommunications analyst at Parks Associates in
Dallas. "As it turns out, it's expensive to deploy PCS
service in the first place, and there's too much
competition in the wireless sector."

Meanwhile, capital markets for the C-block companies dried
up, and the firms soon were overwhelmed by the enormous
costs they faced. General Wireless raised hundreds of
millions of dollars in financing and venture capital,
including a $300 million commitment from Lucent
Technologies for buying and building its network.

But even that wasn't enough to offset the $1.1 billion the
company had agreed to pay for its licenses.  According to
published reports, the company sued the FCC in federal
court last November for allegedly overcharging it by more
than $753 million.

General Wireless said in the suit that its licenses were
worth less than $200 million, news reports say.  The suit
alleged that, by the time the company bought the licenses,
the licenses had declined in value because of time
considerations, Wall Street's shrinking interest and the
FCC's sale of additional licenses for the same
geographic areas.

The suit asked the court to re-state the value of the
licenses, news reports say.  A General Wireless official
would not comment on the Hyundai or FCC lawsuits, or on the
company's bankruptcy filing.
(Dallas Business Journal- 2-March- 1998)


GREATE BAY HOTEL: Court Authorizes Special Labor Counsel
--------------------------------------------------------
The debtors, Greate Bay Hotel and Casino, Inc., GB Holdings
Inc., and GB Property Funding Corp are authorized by the
court to employ Archer & Greiner as special labor counsel.


GULF RESOURCES: Trustee Seeks Special Counsel
---------------------------------------------
The Trustee in the case of Gulf Resources Corporation and
Mustang Oil & Gas Corporation, Charles E. Bearden, is
seeking court authority to employ Turner & Allen as special
counsel to provide the Trustee with legal advice and
opinions regarding his obligation to and the effect of
paying or failing to pay severance taxes, royalties, and
overriding royalties.

The Trustee is also seeking to employ John C. Nichols, as
petroleum geologist and Smith Production, Inc. to assist
the Trustee and provide advice and opinions regarding
operations of the debtor's properties and office
management.


INTERNATIONAL META: Files Voluntary Chapter 11 Petition   
-------------------------------------------------------   
International Meta Systems, Inc. announced today that it
has filed a petition for protection under Chapter 11, of
the Bankruptcy Code.  The Company will seek approval for a
Plan of Reorganization from the court.

Martin Albert, Chairman of International Meta Systems,
said, "The Board of Directors is taking this step
reluctantly, but has concluded that the filing is
in the best interest of the shareholders.  This action
gives the Company the opportunity to obtain interim
financing to allow uninterrupted operations while
it develops a Plan of Reorganization."

While in Reorganization, the Company will continue sales of
cell libraries, macros and design services.  Cash flow
problems have forced the cancellation of proposed x86
product plans at IMS.  However, the Meta 6000 will continue
as a technology development program.

International Meta Systems provides designs, methodologies,
tools and intellectual property for the silicon design
industry.  The Company focuses on customers intending to
use a 0.25 micron or more advanced fabrication process,
and whose end-products are intended for use in
microprocessor-based devices. Customers' end products
generally coordinate system-level hardware functions,
manipulating data in a PC or microprocessor-based device as
specified by related application or operating system
software.  Examples include controllers, digital signal
processors, microprocessors, custom processor
cores, and related components.


MAIDENFORM: Wins Exclusivity Extension Through June 30
------------------------------------------------------
Maidenform Worldwide Inc.'s exclusive periods for filing a
plan of reorganization and soliciting plan acceptances were
extended to June 30 and Aug. 29, respectively.  The U.S.
Bankruptcy Court in Manhattan granted the extension
requested by the intimate apparel manufacturer following a
Feb. 25 hearing.  The exclusive periods were set to expire
on Feb. 28 and April 30, respectively. (Federal Filings,
Inc. 02-Mar-1998)


MOLTEN METAL: New $20 Million Loan Package
------------------------------------------
Financially strapped Molten Metal Technology Inc. has come
up with a new $20 million loan package to help stabilize
its operations, including two waste-treatment facilities in
Oak Ridge, but the proposal must be approved by a federal
bankruptcy court in Massachusetts.  The company announced
Tuesday it had executed a  "commitment letter" for the loan
from an unnamed lender, which is reported to be the same
lender that provided Molten Metal with $7.7 million in
short-term financing two months ago.

Part of the new $20 million loan would be used to repay the
previous loan, Molten Metal said in a statement released to
the news media. The remainder of the loan would be used to  
"enhance" operations of the Oak Ridge facilities, which
process radioactive and hazardous wastes. Molten Metal
earlier characterized the two plants as the company's main
revenue producers.  The new $20 million term loan would be
due at the end of 1999.  

Molten Metal, based in Waltham, Mass., is asking the court
in Boston to hold a hearing March 3 or March 4 for a
detailed review of the financial proposal. The company
filed for Chapter 11 reorganization last year with the
bankruptcy court, and the federal court must OK any
financing plans.  Prebankruptcy attempts to raise money
through an industrial bond issuance fell through, and
Molten Metal officials blamed that failure on negative
press reports regarding a congressional investigation into
the company's research grants from the U.S. Department of
Energy.

Molten Metal has denied allegations that the company
received any favored treatment because of political
connections. Company executives reportedly helped raise big
donations for President Clinton's re-election campaign, and
William Haney III, the former chairman, gave $50,000 to an
academic chair at the University of Tennessee honoring Vice
President Al Gore's sister.  Recent congressional hearings
in Washington were characterized by arguments along party
lines, with Democrats accusing the Republican leadership of
a  "political witch-hunt."
(Knoxville News 02/18/98)


MONTGOMERY WARD: Loss tops $1 Billion in 1997
---------------------------------------------
Montgomery Ward & Co. lost $1.16 billion in 1997,
including $54 million during the Christmas buying season
last December. The 126-year-old Chicago-based retailer lost
$227 million in 1996 and filed Chapter 11 bankruptcy July
7, 1997.

No one expected good news when the beleaguered retailer
filed its year-end results Monday with a trustee in the
U.S. Bankruptcy Court in Wilmington, Del., but the loss was
nearly five times the 1996 loss.

"The number speaks for itself," said John Workman,
executive vice president of restructuring. "It's a huge
loss but we think we made some progress in
1997." Wards closed about 100 stores in the second half of
1997 but sales in stores open at least one year dropped 22
percent in October, 18 percent November and 10 percent
December. Still, 206 of Ward's 300 stores made money last
year.

Workman said sales of women's and children's apparel showed
improvement and predicted the retailer would return to
profitability and emerge from bankruptcy as planned in
spring 1999. Ward's annual report will be filed later this
month. (UPI: Financial 03/03/98)


PARAGON TRADE: Court Approves Patent Counsel for Committee
----------------------------------------------------------
Judge Margaret H. Murphy approved the employment of the law
firm of Fish & Neave as special patent counsel to the
Official Committee of Unsecured Creditors.  The firm was
hired to analyze the patent issues in relation to this case
and to advise the Committee as to whether the debtor's
tactics and strategy are appropriate in light of the
Creditors' Committee's objectives.


PARAGON TRADE: Extension to Assume or Reject Leases
---------------------------------------------------
The court has entered an order stating that the debtor,
Paragon Trade Brands, Inc. has until the confirmation of a
plan of reorganization to assume or reject leases.


PARAGON TRADE: Wachovia Bank Seeks Recovery Over $2 Million
-----------------------------------------------------------
Wachovia Bank, a substantial creditor of Paragon Trade
Brands, Inc. is seeking confirmation from the court of
Wachovia's right to recover $2,068,634 from debtor by
exercising the bank's right to recoupment with respect to
funds on deposit.  Alternatively, Wachovia seeks lift of
stay to exercise its right to offset the amount due.  
Alternatively, Wachovia seeks adequate protection of the
funds.

In addition to its status as lender, Wachovia is also the
debtor's primary depository bank.  Through arrangements for
paying wages, and maintaining accounts, the debtor
currently has the sum of $2,068,634 on account.  Wachovia
paid items presented, and in the usual course of business,
those payments would have been covered by transfers.

Due to the bankruptcy, Wachovia did not reoup the amount
from funds on deposit, and the bank is now attempting to
protect the money due the bank by petitioning the court for
permission to recoup the funds.


QUADRAX CORP: Case Summary & 20 Largest Creditors
-------------------------------------------------
Debtor:  Quadrax Corporation
         300 High Point
         Portsmouth, Rhode Island
         

Type of business: Design, develops, fabricates and sells
thermoplastic composite materials and products manufactured
from Quadrax Composites.

Court: District of Rhode Island

Case No.: 98-10799    Filed: 03/02/98    Chapter: 11

Debtor's Counsel: Allan Shine, Esq.
                  Winograd, Shine & Zacks, PC
                  123 Dyer Street
                  Providence, Rhode Island 02903-3980
                 (401) 273-8300

Total Assets:              $4,628,000
Total Liabilities:         $6,710,307
                                                   No. of
                                         Amount    Holders
                                         ------    -------
Fixed, liquidated secured debt          $135,118         9
Contingent secured debt               $3,500,000         1
Disputed secured debt                        $0          0
Unliquidated secured debt                    $0          0

Fixed, liquidated unsecured debt     $6,575,189        350
Contingent unsecured debt                    $0          0
Disputed unsecured debt    $67,000 TO $189,0000          4
Unliquidated unsecured debt                  $0          0

No. of shares of preferred stock              0          0
No. of shares of common stock         45,587,006 SHS  

20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Sovereign Partners, LP       Convertible Debt    $2,333,333
Dominion Capital Fund        Convertible Debt    $666,667
Fried, Frank, Harris, Shriver      Legal Fees    $237,759
Power Stick Manufacturing, Inc.      Judgment    $140,000
PM Sports Management                    Trade    $100,000
Ores Ltd.                    Convertible Debt    $100,000
Dunscone Co., Inc.                      Trade    $97,052
Kodish, Epiotlia & Angelone         Legal Fee    $96,838
Mr. James Connell             Former Employee    $79,232
Time Sports, Inc.                       Trade    $75,000
C. Malcolm Bash                      Judgment    $56,000
Phillips Petroleum Co.                Royalty    $55,275
Bank One Management                      Rent    $52,646
Arbco Capital                Convertible Debt    $50,000
Grafil                                  Trade    $49,224
A1 Credit                           Insurance    $42,626
Livingston & Maynes           Accounting Fees    $39,000
Newport Electric Unspecified          Utility    $27,443
Wolf, Granfield & Sach's           Legal Fees    $27,130
Management Recuriters         Accounting Fees   $27,000


STREAMLOGIC: Statement of Operations Filed
------------------------------------------
Streamlogic Corp. reported in its latest Form 8-K filed
with the SEC losses of $400,345 on sales of $203,500 for
the month ending January 31, 1998.  For the case to date,
Streamlogic posted losses of  $1,587,275 million on sales
of $4,876,150 million.   


SUNSHINE REHAB: Case Converted to Chapter 7
-------------------------------------------
Upon the debtor's request, the case of Sunshine Rehab, Inc.
was converted to a Chapter 7 case on February 27, 1998.  
The Bar Date for filing proofs of claim is June 29, 1998.  
The Creditors Committee is dissolved.


THE SINGING MACHINE: Emerges from Chapter 11
--------------------------------------------
The Singing Machine Company, Inc. has received confirmation
by the US Bankruptcy Court for its reorganization plan
effective February 26, 1998.  The company had continued
operating under the protection of Chapter 11 provisions and
has taken this opportunity to completely overhaul the
company.

"It became very necessary to reevaluate every facet of this
business and refocus on profitable operations.  Every
expense item was examined using a zero-based budgeting
review," said the Company's CEO Eddie Steele.  The
Company's CFO John Klecha added, "We are very pleased by
the support from our customers, the reorganization of our
balance sheet, and our exciting new product
introductions."

The Singing Machine is America's leading complete consumer
karaoke supplier offering tape and CD plus Graphics karaoke
players.  The Company also supplies a complete library of
karaoke sing along cassettes and CD+Graphics discs.


VIDEOLAN: Files for Bankruptcy Protection
-----------------------------------------
Videolan Technologies Inc. filed for Chapter 11 bankruptcy
protection in the U.S. Bankruptcy Court in Delaware on Feb.
17. The high-tech firm with headquarters in Louisville
listed assets of $1.7 million and liabilities of $626,648,
according to court papers.

The 4-year-old firm ceased operations Jan. 5 and announced
that it had been unable to secure additional financing to
continue. A group of six company officials continued
working after the company shut down, in hopes of finding a
buyer for the company's assets.


                   *********

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