TCR_Public/980401.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, April 1, 1998, Vol. 2, No. 63

BIDERMANN: Vestar Capital Partners to Acquire Bidermann
DFS GROUP: Problems Cause Shares of LVMH to Fall
GIBSON'S HOLDING: Applies to Retain Special Counsel
HAGERSTOWN FIBER: Case Summary & 20 Largest Creditors

HARRAH'S JAZZ: New Lease on Life - Maybe
HOME HOLDINGS: AmBase to Object to Plan
IGI, INC.: Announces Expected Loss for 1997
INTERNATIONAL HERITAGE: Court Prohibits Business Practices
KOO KOO ROO: Iacocca Has Work Cut Out for Himself

MAXICARE: Files Claims Against Dissident Holder
OLD AMERICA: Seeks to Employ the Navarro Group
PHELPS TECHNOLOGIES: Order Authorizes Accountants  
SUN TELEVISION: Big Losses & Still Opening Stores
TAL WIRELESS: Enters Merger Negotiations
TOWN & COUNTRY: Files Revised Chapter 11 Plan


BIDERMANN: Vestar Capital Partners to Acquire Bidermann
Bidermann Industries, USA, Inc. announced that the United
States Bankruptcy Court for the Southern
District of New York approved its proposed plan of
reorganization valuing the Company at approximately $360
million.  When consummated, the plan will complete the  
Company's bankruptcy proceeding which began on July 17,

Vestar Capital  Partners is the plan's primary equity
sponsor and will control the Company in  return for its
investment of over $60 million.  The confirmed plan was
filed on behalf of the Company by Timothy Coleman of The
Blackstone Group who was  appointed as Plan Facilitator in
the case during January of 1997.

The $360 million plan provides for full payment of creditor
claims, including post-petition interest.  In addition, the
Company's existing shareholders will retain a continuing
interest in the business, as well as $13 million of senior
subordinated notes.  Pro forma for the re-capitalization,  
Vestar, Alvarez & Marsal and management will own
approximately 90% of the Company and the existing
shareholders will retain the remaining 10%.  The  
reorganization plan is expected to be consummated in early

This outcome has been facilitated by the Company's
successful turnaround under Chief Executive Officer Bryan
Marsal.  With aggressive cost control measures, the Company
has gone from an operating loss of $26.1 million in 1995  
to an operating profit of $34.9 million in 1997 on a lower
base of sales. These results also reflect the strength of
the Gold Toe(TM) sock brand, as well as the ongoing
revitalization of the Arrow(TM) shirt business.

The Company is a major producer and distributor of men's
and women's designer and branded apparel through its three
operating subsidiaries:  Great  American Knitting Mills
("GAKM"), Cluett Peabody and Cluett Designer Group.  
GAKM is a leading manufacturer and distributor of socks
under the industry leading Gold Toe name, as well as under
such licensed brands as Nautica, Perry Ellis and Jockey.  
Cluett Peabody is a leading producer of men's dress and  
casual shirts under its owned Arrow brand name.  Cluett
Designer Group is a leading distributor of men's shirts and
tailored clothing under the licensed  Burberry's and Yves
Saint-Laurent names.  Management is currently in the  
process of selecting a new name for the Company.

Vestar Capital Partners, headquartered in New York with an
office in Denver, Colorado, manages over $1 billion in
private equity capital.  Founded in 1988, the firm focuses
on management buyouts, re-capitalizations and growth  
capital investments.  Previous Vestar investments have
included Celestial Seasonings, Inc., Clark-Schwebel, Inc.,
Sun Apparel, Inc., Insight Communications Company, L.P.,
Prestone Products Corporation, Pyramid Communications,
Inc., Russell-Stanley Corp., and Westinghouse Air Brake  

Alvarez & Marsal is a turnaround management firm located in
New York.  The firm has been involved in the successful
turnaround of over 20 companies, including Ornda, Phar-Mor,
Wherehouse Entertainment, Charter Medical, Anthony
Manufacturing, and Long Manufacturing, among others.  This  
transaction is representative of the firm's new emphasis on
maintaining a "post-crisis" management role in the
companies with which it becomes involved.

Contemporary Industries Corporation, debtor, is seeki8ng
approval of the debtor's proposed Retention Bonus Program
for employees.  In order to cease the loss of the key
employees, who are office personnel and store managers, the
debtor wishes to institute a bonus program.  Office
personnel will receive a bonus equal to 5% of their annual
salary.  Store managers will receive $500 each.

The debtor estimates that the cost of the bonus payments
will be approximately $134,989.

The debtor also wishes to provide a post-petition Vacation
Benefits Program.  The debtor estimates that the cost of
the program would be approximately $70,400.

DFS GROUP: Problems Cause Shares of LVMH to Fall
LVMH shares fell Monday after its duty-free unit, DFS
Group, Ltd., said it was negotiating a two-month delay in
payments to all its 5,000 suppliers to offset slowing sales
in Asia.  Shares of LVMH Moet Hennessey Louis Vuitton S.A.,
the maker of luxury goods, fell 27 francs to 1,288 French

LVMH bought 61.25 percent of DFS last year to increase its
distribution in Asia.  That was before falling currencies
and stocks in the region worsened an economic slowdown in
Japan, whose citizens represent 65 percent of DFS sales.  
DFS sales in the first two months of this year fell 20
percent from a year earlier.
(The New York Times 31-Mar-1998)

GIBSON'S HOLDING: Applies to Retain Special Counsel
The debtors, Gibson's Holding Company, et al., filed a n
application to employ and retain Hoyle, Morris & Kerr LLP
as Special Counsel.

The firm will counsel and advise management and the board
of directors of the debtors regarding legal aspects of the
debtors' business and corporate affairs, prepare corporate
documents, and negotiate and draft contracts relating to he
debtors' business.  The range of hourly rates of associates
is $110 to $200 and the range of hourly rates of partners
is $215 to $350.  The debtors are particularly interested
in hiring the firm since F. John Hagele will become a
partner as of April 1, 1998.  And he has functioned as
independent general counsel of the debtors since October of

HAGERSTOWN FIBER: Case Summary & 20 Largest Creditors
Debtor:  Hagerstown Fiber Limited Partnership.
         c/o Pencor, Inc.
         588 Fifth Avenue
         37th Floor
         New York, NY 10103

Court: Southern District of New York

Case No.: 98B 41988    Filed: 03/20/98    Chapter: 11

Debtor's Counsel: Albert Togut
                  Frank A. Oswald
                  Togut, Segal & Segal
                  One Penn Plaza Suite 3335
                  New York, New York 10119                  
                  (212) 594-5000

Total Assets:              $168,480,580
Total Liabilities:         $184,335,064
                                                   No. of
                                         Amount    Holders
                                         ------    -------
Fixed, liquidated secured debt     $164,600,000     1          
Contingent secured debt                      $0          0
Disputed secured debt                        $0          0
Unliquidated secured debt(disputed)  $10,702,602         7   

Fixed, liquidated unsecured debt      $9,032,462        67

Contingent unsecured debt                    $0          0
Disputed unsecured debt                      $0          0
Unliquidated unsecured debt                  $0          0

20 Largest Unsecured Creditors:

   Name                         Nature         Amount
   ----                         ------         ------
City of Hagerstown            Electrical      $2,350,237

Ballard Spahr                 Legal Fees &    $2,004,433
Andrews & Ingersol       Promissory Note

Lehman Brothers, Inc.     Promissory Note     $1,718,786

The Eastern Group, Inc.   Promissory Note       $651,382

Oppenheimer & Co        Professional Fees       $200,000

First National Bank of
Maryland                  Promissory Note       $199,750

North East Engineering    Promissory Note       $140,000

R.W. Beck            Engineering Services        $63,879

CRSS Strategic
Consultants              Promissory Note         $42,643

Perrin & Company         Promissory Note         $15,000

U.S. Hydrogeolic, Inc.   Promissory Note          $5,423

Pinkerton Security     Security Services          $4,750

MasterLift Yale                    Trade          $4,082

Bell Atlantic         Telephone Services          $2,808

Clean Harbor        Maintenance Services          $2,588

AT&T                   Telephone Service          $1,137

LaRoche Industries                 Trade          $1,000

Tokai Financial Service            Trade            $991

City of Hagerstown         Water & Sewer            $693

Textilease Uniform Service         Trade            $215

HARRAH'S JAZZ: New Lease on Life - Maybe
It was reported in the Washington Times on March 30, 1998
that Harrah's casino has a new lease on life from the
Louisiana legislature, but its eventual success, even  
its opening, seems far from assured.

The state gaming board voted two weeks ago to accept a
contract Gov. Mike Foster negotiated with gaming bigwig
Harrah's Inc.  The deal would give the state $100 million,
allow Harrah's to finish construction and open within one  
year, and force the gambling firm to pay millions in
contractor and bond- holders' debts in limbo since the
project closed its doors in 1996.

The gambling board vote came after state attorney general
Richard Ieyoub ruled that the board had the power to make
the decision on its own, without legislative approval.

Nevertheless, anti-casino legislators tried earlier last
week to introduce a bill to repeal the 1992 law that
originally authorized the huge gambling facility.

"Surprisingly enough," Mr.  Foster said, "I got 'em
(Harrah's) to do everything they originally agreed to do -
and then some.  I made 'em come up with a rolling guarantee
on $100 million in taxes even if they operate for two
weeks."  Mr. Foster fears that the legislature might now
try to dump the deal and "try to make a pro/anti gambling
issue out of it," a situation he said would "send a bad,
bad message" and eventually cost the state heavily.
(Copyright 1998)

HOME HOLDINGS: AmBase to Object to Plan
Home Holdings, Inc. has filed a pre-arranged plan of
reorganization under Chapter 11. In connection with the
Home Holdings case, AmBase filed a Proof of Claim
for all  damages, which is significantly in excess of
$12,736,000.  The Company intends to file an objection to
the Plan, and will vigorously contest the Plan, and will
seek to collect  from all parties the full amount of its
claim as set forth in its Proof of  Claim.

For the fourth quarter ended December 31, 1996, AmBase
reported a net loss of $1,056,000 or $0.03 per share.  For
the full year ended December 31, 1996, AmBase reported net
income of $14,032,000 or $0.31 per share. For the full year
ended December 31, 1997, AmBase reported a net loss of
$1,084,000 or $0.02 per share.  The 1997 full year results
include a $475,000 income tax benefit and other non-
recurring income of $59,000.  Excluding these non-recurring
items, the Company would have reported a net loss of
$1,618,000 or $0.04 per share for the 1997 full year

IGI, INC.: Announces Expected Loss for 1997
IGI, INC. (Amex: IG) announced today that it expects to
report a loss for the year ended December 31, 1997,  
including a substantial loss for the fourth quarter of
1997. In addition, the Company reported that it is engaged
in negotiations with its bank lenders to obtain a waiver of
defaults of certain covenants contained in its bank credit
agreement at year end 1997 and to extend the expiration
date of its credit agreement to December 31, 1998.

IGI also announced that the American Stock Exchange has
halted the trading of IGI's common stock on the Exchange
until the annual report on Form 10-K for 1997 is filed with
the SEC and Amex.  IGI is unable at this time to state when  
trading of its stock on Amex will resume.

Based on its review of operations to date, the Company
expects that it will incur a pretax loss ranging from $2.7
to $3.2 million for the fourth quarter of  1997, resulting
in a pretax loss for fiscal 1998 ranging from $1.0 to $1.5  
million.  The expected loss is attributable primarily to
lower than expected poultry vaccine sales during the
period, certain inventory write-offs,  additional reserves
for accounts receivable and notes receivable, and legal and  
related expenses incurred in connection with the previously
announced USDA OIG  investigation.  The Company cautioned,
however, that the estimated loss for 1997 could be lower,
or higher if additional write-offs or charges are required  
in connection with completion of the 1997 audit.  

In June 1997, the Center for Veterinary Biologics  ("CVB")
of the United States Department of Agriculture ("USDA")
ordered the  Company to stop distribution and sale of
certain serials and subserials of  designated poultry
vaccines produced by the Company's Vineland Laboratories  
Division ("Stop Shipment Order").  

The Stop Shipment Order was based on CVB's finding that the
Company shipped serials before the Animal and Plant Health  
Inspection Service division of the USDA ("APHIS") had the
opportunity to  confirm the Company's testing results,
including serials APHIS deemed to be worthless, failed to
destroy serials reported to APHIS as destroyed, and in  
general failed to keep complete and accurate records and to
submit accurate  reports to APHIS.  

The Stop Shipment Order affected 36 of the Company's USDA-
licensed vaccines.  In July 1997, the Officer of Inspector
General of the USDA  ("OIG") advised the Company of its
commencement of an investigation into alleged violations of
the Virus Serum Toxin Act and alleged false statements made

The Company, based on its investigation to date, terminated
the employment of its President and Chief Operating
Officer, John P. Gallo, for willful misconduct in the
performance of his executive duties.  

The Company was in default under certain covenants
contained in its bank  credit agreement at year end 1997.  
The Company is engaged in negotiating amendments to its
credit agreement with its bank lenders, including waivers
of its covenant defaults and an extension of the credit
agreement through year end 1998.

INTERNATIONAL HERITAGE: Court Prohibits Business Practices
U.S. District Judge Richard Story told attorneys at the
conclusion of a hearing he would issue an order on April 3
to prevent International Heritage, Inc., from engaging in
business practices that led to an investigation by the  
Securities and Exchange Commission.

"Based upon that prior conduct, the court is justified in
entering a preliminary injunction ... that will affect the
future conduct of IHI and its officers, directors and
agents," he said.  "Specifically, the court is going to
enjoin the further use of retail business agreements."

The SEC contends that IHI catalogues filled with products
ranging from gold jewelry to golf equipment are a smoke-
screen for its true business - making money by recruiting
salespeople.  That would be one of the nation's largest
pyramid schemes, which are swindles in which funds from new
investors are used to pay off promised returns to other

After the order is entered, IHI co-founder and chief
executive Stanley Van Etten and two other executives will
be allowed to resume their duties, under the watch of a
court-appointed monitor, the judge said.  Under the ruling,
court-appointed receiver Lloyd T. Whitaker, who
has been  in control of International Heritage Inc. of
Raleigh, will be relieved of his  duties, Story said.

Meanwhile, IHI will be required to post a $5 million bond
"to satisfy any judgments that may be rendered as a result
of this proceeding," the judge said.  Describing itself as
a supplier of fine jewelry, luggage, collectibles and  
golf equipment, the company actually was the front for a
fraudulent pyramid scheme that raised more than $150
million from over 155,000 investors, the SEC  

Last week, Story issued a temporary restraining order and
put Whitaker in charge after the SEC accused the company
and its founders of three civil counts  of fraud, filing
false reports and illegal sale of unregistered securities.
The SEC complaint filed last Monday against the company and
its three founders followed the agency's decision the
previous week to suspend trading of the company's stock for
10 business days.

International Heritage stock soared and the company's
market value rose from $330 million to $1.2 billion.
"I want to make it clear that the intent of this order is
to permit a retail business operation to continue," he
(Greensboro News Record - 03/28/98)

KOO KOO ROO: Iacocca Has Work Cut Out for Himself
Lee Iacocca, the brash former chairman of Chrysler  
Corp., has been named acting chairman of chicken restaurant
chain Koo Koo Roo Inc. and will begin a major
restructuring, the company said Monday.

Koo Koo Roo also reported a loss for the fourth quarter and
said it expected to take charges of $10 million to $12
million in this year's first quarter for the restructuring,
which will include unspecified job cuts.

The stock of the company, which also owns the Hamburger
Hamlet chain, soared 72 percent, or $1.44, to $3.44 on
Nasdaq, where it was by far the most active issue on
trading of nearly 29 million shares.

Iacocca, 73, a Koo Koo Roo board member, will begin a
"major restructuring" of the company with William Allen,
Koo Koo Roo's new chief executive officer.   The company
said the first-quarter charges will be for the closure of
its three Washington, D.C.-area restaurants, closing its
Arrosto coffee plant and for other items. Koo Koo Roo had
announced in November that it would sell its Color Me Mine
ceramic craft studios.

"We will dispose of non-core assets, inclusive of Color Me
Mine and the Arrosto coffee plant, maintain low corporate
overhead both as a percentage of sales and in absolute
dollars and move toward controlled growth of the Koo Koo  
Roo California Kitchen concept through 1999," Allen said in
a statement.

For the fourth quarter, Koo Koo Roo posted a net loss of
$14.1 million, or 56 cents a share, including a loss of
$7.4 million from discontinued operations. That compared
with a net loss of $5.7 million, or 37 cents a share,
a year ago.   The company's losses from continuing
operations were $6.8 million, or 28 cents a share, vs. a
loss of $2.8 million, or 33 cents a share, a year earlier.

Restaurant revenues rose 81 percent to $20.6 million from
$11.3 million.

MAXICARE: Files Claims Against Dissident Holder
Maxicare Health Plans, Inc. (Nasdaq:MAXI) announced that it
has taken another step to protect the interests of the  
Company's shareholders from a dissident holder by filing
counterclaims in the Delaware Federal Court alleging
violations of the U.S. securities laws against Paul R.
Dupee, Jr., and his hostile consent solicitation.  The
claims against Dupee include violations of the anti-fraud
and disclosure requirements of  Section 14a of the
Securities and Exchange Act of 1934 and Rules

Peter J. Ratican, Maxicare's Chairman, President and Chief
Executive Officer said, "Through his consent solicitation
and related court actions, Mr. Dupee is trying to
circumvent the provisions of the  Company's Certificate of
Incorporation which provide for a staggered Board and the
By laws which govern shareholder nominations and

The Board is concerned that the secretive and coercive
tactics employed by Dupee and his group are intended to
further their self-interest under the pretense of
maximizing shareholder value.  Mr. Ratican added that: 1)
Dupee initiated the consent solicitation and litigation
against the Company without ever consulting with management
or the Board; 2) Dupee intends to seek reimbursement for
expenses and compensation in an undisclosed amount for  
overseeing any sale or liquidation of the Company; 3)
Dupee's participants in the hostile solicitation have
recently engaged in highly speculative trading in  the
Company's stock, including the sale of put options; and, 4)
Mr. Dupee had a  consent decree entered against him as a
result of an SEC complaint that he  violated the anti-fraud
provisions of the federal securites laws.

OLD AMERICA: Seeks to Employ the Navarro Group
The debtors, Old America Stores, In., Old America
Wholesale, Incl., and Old America Stores, Inc., are
applying for entry of an order to employ The Navarro Group
as liquidation/management consultant.

The Navarro Group is to be compensated in the amount of
$12,500 per month for the duration of their employment with
the debtors.  The Navarro Group is will be responsible for
the analysis of the debtors' current financial situation,
liquidation strategy , bankruptcy plan concept, and
maximizing recovery to the estate and unsecured creditors.  
The firm will assist in developing and structuring a plan
of reorganization  and will represent the debtors in
negotiation and advise the debtors of strategic options
available with respect to the estate.

PHELPS TECHNOLOGIES: Order Authorizes Accountants
The court has entered an order approving the application
for authority to employ Baird, Kurtz & Dobson CPA as
accountants to Phelps Technologies, Inc. and Phelps Tool
and Die Houston, Inc., debtors.

SUN TELEVISION: Big Losses & Still Opening Stores
Still wrestling with losses, Sun Television & Appliances
Inc. says it will open 30 more stores - including stores in
Hamilton and Marion, Ohio; Richmond, Ky.; and Lebanon, Pa.
Thirteen more will open in the Midwest and Northeast this
year. Sun plans to increase its stores from 41 to 71 within
two years. Among them: three stores closed last year in
Buffalo, N.Y. They are to reopen by June. The Columbus-
based chain, which has lost $69 million in less than two
years, increased its line of credit last fall as it planned
the $30-million expansion. Plummeting sales last year
prompted closure of nine stores in Buffalo, Rochester,
N.Y., and in Dayton, Ohio. The 1998 openings are the  
continuation of a trend that began in late 1997. Sun opened
10 stores in November and December in Cincinnati and towns
in Kentucky, Pennsylvania, Indiana and Virginia.

TAL WIRELESS: Enters Merger Negotiations
TAL Wireless Networks, Inc. announced that it is engaged in
preliminary discussions regarding a potential merger.  On
March 25, 1998, TALW representatives met with Mr. Jeffery
Kinsell of Astrum, Energy  Services, Inc.  The parties have
agreed to hold further discussions regarding a  plan of

Astrum Energy Services, Inc. is a privately held energy
management company located in Solana Beach, California.  It
has contracted with several municipalities throughout
California to assist in aggregation of electrical power
needs.  TALW filed a petition under Chapter 11 of the
Bankruptcy Code on October 6, 1997.

TOWN & COUNTRY: Files Revised Chapter 11 Plan
Town & Country Corporation, the international jewelry
manufacturer, today announced that the Company, with the
support of its principal bondholders, has filed an amended  
Plan of Reorganization and Disclosure Statement.  The
proposed plan provides for most of the publicly held bonds
issued by Town & Country Corporation to be converted into
equity of a new holding company for Town & Country
Corporation.  The new holding company will also receive an
$8 million convertible note of Town & Country Corporation.  

The Bankruptcy Court set April 16, 1998 for a hearing on
the adequacy of the Disclosure Statement.  As previously
announced, Town & Country Corporation filed a voluntary  
Chapter 11 petition on November 17, 1997.  The Company's
operating subsidiaries, Town & Country Fine Jewelry Group,
Essex International Public Company, Ltd. and Anju Jewelry
Limited, are not in bankruptcy.

Town & Country Corporation, through its subsidiaries, is an
international manufacturer of fine jewelry with facilities
in Massachusetts, New York, Texas, Hong Kong and Thailand.

Yamaichi Securities, which rocked the financial world by  
declaring bankruptcy last year, closed its doors today,
officially ending 100 years of operations.  The former "big
four" brokerage house collapsed last November under the
weight of massive off-the-book losses, the largest Japanese
company ever to fail.  On the final day of the Japanese
fiscal year, Yamaichi shut its last 40 branches, leaving
some 3,000 remaining employees out of work.

Yamaichi's collapse had sent shock waves through financial
markets around the world because it signified a departure
from the usual government practice of coming to the rescue
of top-tier Japanese companies.  Yamaichi was Japan's
largest brokerage house until 1965, when a recession  
drove it to the brink of bankruptcy and forced it to accept
a bailout from the  central bank. It was severely weakened
and was soon overtaken by Japan's other major brokerages:
Nomura, Nikko and Daiwa.

Earlier this month, authorities arrested three former
Yamaichi officials on suspicion of covering up some $2.1
billion in losses by transferring them from client to
client to prevent them from showing on financial


A listing of meetings, conferences and seminars appears
each 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 Lexy Mueller, Editors.   
Copyright 1998.  All rights reserved.  This material
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         * * *  End of Transmission  * * *