TCR_Public/980417.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
     
      Friday, April 17, 1998, Vol. 2, No. 76
                    
                    Headlines

2CONNECT EXPRESS: Files Plan of Reorganization
BRADLEES: To Sell Providence, Rhode Island Store
DEBBIE REYNOLDS: Shareholders To Lose 97.5% of Ownership
DISCOVERY ZONE: Decline in Revenues But EBITDA Improves
INTERLINE RESOURCES: Reorganization Update

KIA MOTORS: Angry Demonstration Follows Strike
KIA MOTORS: Three Day Strike Begins
PAYLESS CASHWAYS: Shareholder Meeting
MARVEL ENTERTAINMENT: Reports Financial Results
MOBILEMEDIA: Adequacy of Disclosure Statement Pending

ORANGE COUNTY: Agrees to $45 Million From LeBoeuf
PARAGON TRADE: Applies to Extend Exclusivity
PEGASUS GOLD: Seeking Approval of Severance Package
PEREGRINE: Templeton's Mobius hires Peregrine's Tose
QUADRAX:  De-Lists From SmallCap Market

                    *********

2CONNECT EXPRESS: Files Plan of Reorganization
----------------------------------------------
2Connect Express, Inc. announced on Wednesday that it filed
a Plan of Reorganization and Disclosure Statement as the
initial step in its preparation to emerge from its Chapter
11 proceeding. The Company has closed seven (7) stores,
liquidated excess inventory and reduced overhead.  

The Company has filed motions in the bankruptcy court to
permit sale of remaining excess inventory by public auction
and the bulk sale of excess corporate office furniture and
fixtures.  The Company's Plan of Reorganization anticipates
the sale of all excess assets by approximately May 1, 1998.  
Remaining operating assets, contracts leases, trademarks
and the like are anticipated to be sold to Bobby Allison
Cellular Systems of Florida, Inc. on or before the date of  
confirmation of the Plan by the court.

2Connect also announced that it did not seek an extension
of its debtor-in-possession credit facility.  The facility
terminated on March 28, 1998 and the amount borrowed was
paid in full including accrued interest.

Separately, the Company announced that its proposed merger
with Bobby Allison Cellular Systems of Florida, Inc.
("Bobby Allison") whereby Bobby Allison would merge with
and into the Company, continues in negotiation  
concerning the Merger Agreement and matters related
thereto.  The Company anticipates that these matters will
be resolved by approximately May 1, 1998.  
The merger and related financing thereof would take place
following 2Connect's emergence from the **bankruptcy**
proceeding.

2Connect's Chief Executive Officer, Thomas H. Hicks,
commented, "the Company is proceeding as planned with the
liquidation of excess assets and company positioning
preparatory for the anticipated merger.  Although the  
Merger Agreement has taken longer to complete than earlier
planned, we are confident that it will be consummated in
the new term."
{PRNewswire: Retail 04/15/98)


BRADLEES: To Sell Providence, Rhode Island Store
------------------------------------------------
The Debtors seek the Court's authority to sell, subject to
higher and better offers, the property located at 301
Silver Spring Street, Providence, Rhode Island to AAA
Southern New England, for the sum of $4,250,000, payable
all in cash.  By Order dated August 15, 1996, the debtor
was authorized to close the Providence Store.  Immediately
after the Providence Store closed, the debtor began efforts
to sell the Premises.

To date, AAA's offer represents the best overall offer
received for the Premises. The transaction contemplated
under the Purchase Agreement has been entered
into by the Debtor for the purpose, among other things, of
effectuating a plan of reorganization for the Debtor.
The sale of the Premises is subject to approval by the
Bankruptcy Court.  The Purchase Agreement, however,
requires Stores to obtain such an order by June 30, 1998.

The Debtor requests that the Court schedule the Sale
Hearing for May 5, 1998. The Purchaser has also requested
that the sale be held as soon as possible.  To assure the
Court that AAA's offer is the highest and best, and to
protect AAA's interests in this matter, the Debtors propose
Bidding Procedures applicable to any interested bidders
with a competing offer to purchase the Premises (the
following are among other requirements):
* a competing offer to purchase the Premises must be on
terms and conditions substantially similar to the Purchase
Agreement, except that the initial bid must be for a total
consideration of not less than $4,350,000.00;

* subsequent bids made at the Hearing must be in $50,000
intervals over the last offer received by Stores for the
Premises;

Additionally, the Purchase Agreement provides for a
$50,000 Break-Up Fee to the Purchaser in the event that a
higher or better offer is accepted by the Debtor and
approved by the Court. (Bradlees Bankruptcy News/Bankruptcy
Creditors' Service 13-Apr-1998)


DEBBIE REYNOLDS: Shareholders To Lose 97.5% of Ownership
--------------------------------------------------------
Debbie Reynolds Hotel & Casino Inc. shareholders will lose
97.5 percent of their ownership of the hotel when it
emerges from Chapter 11 protection under a
plan approved by a bankruptcy judge late last week.

A Florida investor agreed to pay 3 cents a share for 92.5
percent of the company, according to a filing with the
Securities and Exchange Commission. Yet small investors
have been paying more than 15 times that for the company's  
stock.

"I have no idea what they're thinking," said Todd Fisher,
chief executive and Reynolds' son.

The stock fell 3 cents to 45 cents in trading of 164,200
shares.  Central Florida Investments, a private company
owned by Florida timeshare developer David A. Siegel, will
pay $15.6 million for 92.5 percent of the company, with
unsecured creditors receiving 5 percent.
(Pittsburgh Post Gazette - 04/15/98)


DISCOVERY ZONE: Decline in Revenues But EBITDA Improves
-------------------------------------------------------
Discovery Zone, Inc. announced today its financial results
for 1997, which represented a significant transition year
for the company as it emerged from bankruptcy on July 29,
1997 and began implementation of an extensive store
renovation program and brand repositioning strategy
designed to increase attendance and in-store  spending.

Despite a significant decline in revenues, operating cash
flow as measured by EBITDA improved from negative $33.8
million in 1996 to negative $15.3 million in 1997.

Revenues for 1997 were $131.0 million compared to $181.7
million in 1996. As part of the company's chapter 11
reorganization and continuing through Dec. 31, 1997, the
company closed 105 unprofitable stores, substantially all
of which were closed during 1996. Accordingly, a
substantial portion of the decline in revenue in 1997 is
due to a decrease in the number of stores in operation.

Additionally, the company experienced a decline in
comparable store sales from 1996 to 1997 of approximately
15%. This decline was primarily due to continued
disruptions in its operations associated with the
bankruptcy, a lack of new attractions and the subsequent
store renovation program which negatively impacted revenues
in the fourth quarter as the company temporarily closed
stores and discounted admission prices.

According to Scott W. Bernstein, Chief Executive Officer,
this marks the first quarter of comparable store sales
growth over the prior year quarter that the company has
experienced in at least 3 years.

The estimated cost of the first phase of the renovation
program, including the Pizza Hut and DZU conversions, and
of advanced purchases for future renovations, is
approximately $21 million and $3 million, respectively.  
These costs exclude approximately $3 million of excess
billings recently received from general contractors related
to phase one of its renovation program which the company is
disputing as material, unexpected cost overruns.

Separately, DZ announced that it had secured a new $10
million senior secured revolving credit facility from
Foothill Capital Corp. which will be used to fund working
capital needs and continue its renovation program.


INTERLINE RESOURCES: Reorganization Update
------------------------------------------
In its most recent FORM 10-KSB filed on April 14, 1998 with
the SEC, Interline Resources Corporation provide an update
of its financial and operational status.  The Company's  
subsidiaries did not join the Company in the  bankruptcy
petition and are not  directly involved in the Bankruptcy
Reorganization  Proceeding,  however, because the Company  
operates through its subsidiaries, the bankruptcy  
reorganization will substantially impact the
subsidiaries.

On January 23, 1998, the Company filed a Proposed Plan of  
Reorganization  and Proposed  Disclosure  Statement  to the  
Plan of  Reorganization that management  believes  will
permit it to reorganize and provide for payment to
creditors and preserve the interest of its  shareholders.
A hearing is scheduled with the United States Bankruptcy
Court for the District of Utah, Central Division, for the
approval of the Disclosure Statement on May 6, 1998.

Genesis Petroleum and another creditor originally filed a  
Petition for Involuntary Bankruptcy against the Company.  
On January 20, 1998 the United States Bankruptcy Court for
the District of Utah approved a settlement agreement
between the Company and Genesis Petroleum.  The Company and
Genesis were joint venturers in a used oil refinery located
in Salt Lake City, Utah. The settlement agreement provided
for, among other things, the following: 1) the litigation
between them was terminated; 2) Interline paid Genesis the
sum of $750,000; 3) the Company  granted Genesis a license
to build and operate three additional used oil refineries  
using the technology assigned to it by PSI  without  the  
payment of any  royalties  or other  payments to the
Company; 4) the Company transferred all of its right in the
joint venture and in the Salt Lake Refinery to Genesis;  
and, 5) all previous  agreements between the Company and
Genesis were terminated.

In 1997, revenues decreased  $2,125,827 or 30.6%, to
$4,827,969 for the year ended December  31,  1997 as  
compared  to $6,953,796  for the year ended December  31,  
1996.  This revenue decrease included a $2,105,954 or
33.0%, decrease in oil and gas revenues; a $30,049, or
5.3%,  decrease in used oil refining revenues and a
$10,176, or 184.4%, increase in other revenues. The oil
and gas revenue  decrease was attributed to several liquid  
purchase  contracts that expired. The Company tried to
negotiate new terms for these liquids, but after  
considering the very low  margins and the risk on the  
structure of the pricing, the Company did not except the
new terms.

Oil and gas revenues contributed approximately 88.7% of
total revenues for year ended December 31,1997, as compared
to approximately 91.8% for year ended December 31, 1996.
Revenues decreased  $2,105,954 or 33.0% to $4,280,278 for
the year ended December 31, 1997 as compared to $6,386,232,
for year ended December 31,1996.


KIA MOTORS: Angry Demonstration Follows Strike
----------------------------------------------
Thousands of Kia Motors Corp. workers held an angry
demonstration Thursday after walking off the job to protest
court-mandated  receivership.  "We oppose third-party
takeover," shouted the workers who downed tools and  
gathered in a park in central Seoul.

The striking workers wearing headbands urged President Kim
Dae-Jung to keep his election promise to help the bankrupt
firm get back on its feet, watched by hundreds of riot
police.  The strike was the largest protest yet in South
Korea's ongoing IMF-mandated restructuring which has seen
some 10,000 workers lose their jobs daily since  
December.

All Kia's 13,000 workers at two factories downed tools
Thursday, idling production lines.  Kia's 23 top executives
joined the strike, tendering resignations to their  
president Park Je-Hyuk. They demanded creditors retract
their decision to reject Park as co-receiver with Yoo
Chong-Yul.

Yoo, vice chairman of Hyosung Industries Co. who was
appointed as sole trustee, was blocked from entering Kia's
heaquarters in Seoul by a human barricade of a dozen
activists who had chained their bodies together.
(Agence France Presse - 04/16/98)


KIA MOTORS: Three Day Strike Begins
-----------------------------------
Nearly 14,000 unionised workers at South Korea's Kia Motors
Corp began a three-day strike on Thursday, and hundreds
blocked the company's court-appointed administrator from
taking up his new post.   Production was halted on all Kia
Motors assembly lines, as workers downed tools to protest
against the possible sale of the troubled carmaker, union
and company officials said.

Kia union president Ko Jong-hwan said the strike would
continue until Saturday and the government would have until
April 24 to state its position on a takeover.  "We are on
full strike until Saturday," Ko told a news conference
called by the Korean Metal Workers Federation, which
includes the country's main auto-related unions.

"Unless the government makes clear by the 24th that it will
rule out a takeover of Kia Motors, we will be forced to
make a serious decision," Ko said,  but did not explain.
Dan Byung-ho, president of the metal workers federation,
said: "These strikes are a warning to the government
against any takeover of Kia."

Separately, union members surrounded Kia Motors
headquarters in Seoul's financial district to block the
entry of Yoo Chong-yul, the man appointed administrator of
Kia Motors by Seoul District Court on Wednesday.
Dozens of posters of Yoo were posted around the Kia
building to make sure he did not sneak in, and workers
chained and padlocked themselves to the doors.  A scuffle
broke out when Yoo tried unsuccessfully to push his way
through.

"If he has come to Kia, we would like him to clearly state
what his plans are. Is he coming to help with a takeover or
to revive Kia? Until he clearly states this, we cannot let
him in," Ko said.  Seoul District Court put Kia Motors and
sister company Asia Motors into  receivership on Wednesday,
and appointed Yoo administrator. Yoo said no decision had
been made on whether Kia would be sold.

Kia workers had asked the court to also appoint company
president Park Je-hyuk as an administrator to ensure the
company's and workers' interests were represented during
the receivership process.   Kia union members have said the
appointment of an outsider to manage Kia during the
receivership process was an indication of the government's
intent to allow a takeover.

News of the strike sent Seoul stock prices tumbling. The
composite index closed down nearly three percent at 454.15
points on Thursday.  "There are growing concerns that the
Kia strike could blow into a nationwide strike," said Lee
Kye-joon, a broker at Daishin Securities.   Kia workers
were to rally in downtown Seoul in the afternoon, with  
additional rallies planned on Thursday, Friday, April 22
and May 1, the statement said.

Analysts said a takeover by a Korean automaker in
partnership with a foreign automaker was inevitable and the
best solution for Kia Motors and the country.
"A strike is the only way Kia's union can make its feelings
known, but at the moment power is not in their hands," said
Lee Jung-ja, head of research at HSBC James Capel in Seoul.
"Most South Koreans have changed their attitude and they
know a takeover is best," she said.

The Hyundai, Daewoo and Samsung groups have either said
directly they were interested in Kia or hinted at it.
The previous government's inability to resolve the problems
of Kia Group, formerly ranked eighth among the country's
big business conglomerates, is blamed for the country's
foreign-exchange crisis.
{Reuters:Financial-0415.00752}   04/16/98


PAYLESS CASHWAYS: Shareholder Meeting
-------------------------------------
Payless Cashways Inc. shareholders listened intently
Wednesday as Peter Danis, the new chairman of their
company, offered his assessment of the new board during the
retailer's first post-bankruptcy meeting.

``This is a strong group with track records of success in
their chosen fields and with a bias toward action,'' Danis
said. `` ... Your new board is actively engaged toward
turning Payless back toward profitability.''
Payless has a long way to go to get back to profitability
after losing $288  million last year and $25 million in the
first quarter of this year.

Danis and Donald Roller, the acting chief executive
officer, acknowledged that the two biggest questions
hanging over Payless are what strategy will the company
pursue and who will lead it in the combined role of chief
executive officer/president.  But on both issues Danis and
Roller said the board was not going to rush decisions
merely to satisfy artificial timetables.

Payless' previous management began implementing a strategy
called dual path, which tries to serve two markets, the
professional contractor and the do-it-yourself consumer.
Further implementation of that strategy was put on hold  
after Payless filed bankruptcy.  While neither shared a lot
of the big picture with the 160 shareholders attending the
meeting, Danis and Roller did go over a list of smaller
steps taken to strengthen Payless.

Among those were reducing inventories, cutting costs,
putting a manager in each store and reducing planned
capital expenditures.

During the seven-minute formal part of the meeting,
director Harry Cleberg, chief executive officer of Farmland
Industries Inc., was elected to a three-year term.
While only a handful of shareholders took the opportunity
to take the microphone and ask questions, those who did had
multiple ones. And many of those who didn't ask questions
listened closely to the answers. One issue that was brought
up a couple of times was compensation for the board.

Non-executive chairman Danis receives $100,000 annually,
plus $1,000 for each board meeting attended and $1,000 for
each committee meeting attended.  Acting chief executive
officer Roller receives an undisclosed salary, but  
not director's compensation.   The five other directors
receive $25,000 annually, plus $1,000 for each board
meeting attended and $1,000 for each committee meeting
attended. Also, each committee head receives an additional
annual $3,500 fee.
(Kansas City Star - 04/16/98)


MARVEL ENTERTAINMENT: Reports Financial Results
-----------------------------------------------
Marvel Entertainment Group, Inc. reported financial results
in conjunction with the filing of its Form 10-K with the
Securities and Exchange Commission for the year ended and  
fourth quarter ended December 31, 1997. In keeping with
estimates issued by the Company on March 5, 1998 the
Company reported a net loss for the year ended December 31,
1997 of $254.3 million, or $2.50 per share, versus $464.4
million, or $4.56 per share, for the year ended December
31, 1996.  Net revenues for 1997 were $471.7 million versus
$745.5 million for 1996.

For the fourth quarter ended December 31, 1997 the Company
reported a net loss of $154.0 million, or $1.51 per share,
compared to a net loss of $436.5 million, or $4.29 per
share, for the comparable period ended December 31, 1996.
Net revenues were $93.5 million for the period ended
December 31, 1997 versus  $164.3 million for the comparable
period in 1996.

On March 30, 1998 the United States District Court for
Delaware issued a decision that Marvel had lost its voting
control of Toy Biz.  As a result of an appeal of this
decision, on April 13, 1998 the Third Circuit Court of
Appeals granted a motion to expedite the appeal of this
decision and granted a stay of the effectiveness of the
District Court decision and further stayed the District
Court's confirmation hearing scheduled for May 4th and
5th on the proposed Toy Biz plan of reorganization for the
Company.

The Company's chapter 11 Trustee and secured lenders and
Toy Biz are currently in discussions to settle outstanding
issues which are the subject of the appeal and other
matters.  The District Court had entered an order also
dated March 3, 1998 permitting the distribution of up to
12,500,000 already outstanding shares of Marvel common
stock pledged to secure (i) Senior Secured Discount Notes
issued by  Marvel Holdings, Inc., (ii) Senior Secured
Discount Notes issued by Marvel (Parent) Holdings, Inc.;
and (iii) Series B Senior Secured Notes issued by  
Marvel III, Inc. to the holders of such notes.  The order
also authorized the sale by Marvel Holdings, Inc. of
2,500,000 shares of Marvel common stock currently held by
it in escrow to pay certain administrative expenses.  In  
addition, on April 14 the District Court permitted the
distribution to noteholders of 21,500,000 million
additional shares of Marvel common stock that  served as
collateral for notes and the sale of an additional 400,000
shares of  Marvel common stock held by Marvel Holdings.

Marvel has been advised by the New York Stock Exchange that
the NYSE is reviewing the status of continuing the listing
of the Company's common stock.


MOBILEMEDIA: Adequacy of Disclosure Statement Pending
-----------------------------------------------------
As previously announced, MobileMedia Corporation, the
corporate parent of MobileMedia Communications, Inc.,
filed its Joint Plan of Reorganization (the "Plan") with
the United States Bankruptcy Court for the District of
Delaware on January 27, 1998 and its related Disclosure
Statement on February 2, 1998. The Plan was filed with
the support of the Steering Committee for the Company's
secured  creditors (the "Secured Creditors Committee"), but
without the support of the Committee for the Company's
unsecured creditors (the "Unsecured Creditors Committee").
A hearing was scheduled to be held on April 14,1998 in the
Bankruptcy Court for the purpose of considering the
adequacy of the information contained in the Disclosure
Statement.

In its most recent Form 8K filed with the SEC, dated April
13, 1998, the company reports that it is continuing to
discuss its  Plan for the stand-alone reorganization of the
Company with the Secured Creditors Committee and the
Unsecured Creditors Committee, and the Company and such
Committees also are considering certain possible third-
party business combinations involving the Company under a
plan of reorganization. Accordingly, the Company and such
Committees agreed to adjourn the April 14 court hearing
concerning the adequacy of the information contained in the
Disclosure Statement. There can be no assurance that the
parties will reach agreement on a plan of reorganization or
that any business combination will be effected.


ORANGE COUNTY: Agrees to $45 Million From LeBoeuf
-------------------------------------------------
Orange County has agreed to accept $45 million from New
York law firm LeBoeuf, Lamb, Greene & MacRae to settle
lawsuits over the county's 1994 bankruptcy.

The county had sold $975 million in bonds with LeBoeuf's
help and then saw its finances unravel on risky
investments. The bankruptcy in December 1994 was the
nation's largest municipal failure.

The New York law firm offered $45 million in October to
settle allegations it failed to alert government officials
to approaching calamity.  LeBoeuf made a separate
settlement of $10.2 million earlier this year with  
the North Orange County Community College District.
The district gave LeBoeuf its share of future settlements,
including its $2 million share of Tuesday's deal. As a
result, the two settlements will cost LeBoeuf $53.2
million, LeBoeuf attorney Gary Cohen told The Orange County  
Register.

"This is a very significant settlement from a defendant who
is not one of our primary targets," said J. Michael
Hennigan, a lawyer for the county.  The county also has
sued major financial houses to recover money to pay its  
debts. Merrill Lynch & Co., the county's main securities
broker, is the defendant in a $2 billion suit scheduled for
trial Sept. 15.

The LeBoeuf settlement ranks among the largest against an
American law firm.  The county and LeBoeuf both will ask
U.S. District Judge Gary Taylor to approve the settlement,
the county said.  Actual payout could take a while,
however, since defendants in other suits could contest
LeBoeuf's fair share of total damages.  Schools are
entitled to roughly the first $25 million from the LeBoeuf  
settlement.  Before the agreement, the county had won $32
million in settlements from others.

   
PARAGON TRADE: Applies to Extend Exclusivity
--------------------------------------------
A hearing will be conducted on May 4, 1998 on the motion of
Paragon Trade Brands, Inc., debtor to extend the exclusive
period to file a plan of reorganization and to solicit
acceptances thereto.  

This is the debtor's first request for such an extension,
and the debtor seeks a relatively short extension designed
to permit it to pursue the next logical steps in its
reorganization.  The debtor requests that the court enter
an order extending the exclusive periods to September 3,
1998 and November 2, 1998, respectively.  

This company is one plagued by a single judgment which is
on appeal and one potential creditor with an unliquidated
claim which has not yet been determined and is many months,
if not years, from trial and final resolution, according to
the debtor.

The debtor admits that these claims must be resolved if a
plan is sensibly to be proposed.  The debtor states that
this case is large and complex.  The plan must deal with
the resolution of the litigation with P7G and KC or
settlement.  There are about $130 million in anticipated
unsecured claims, unexpired leases, 5,000-6,000 actual or
potential creditors and the treatment of the existing
publicly held equity.

Paragon states that it simply has not had sufficient time
to negotiate with its creditors.


PEGASUS GOLD: Seeking Approval of Severance Package
---------------------------------------------------
Pegasus Gold Corp. has asked a bankruptcy judge to protect
it from creditors while seeking the court's approval of a
multi- million dollar bonus  and severance package for top
executives.

Creditors told the judge last week that the only people who
will benefit from those golden parachutes are the ones
dangling from them.

"I don't think this is a proper exercise of the debtor's
business judgment," Assistant U.S. Trustee Nicholas Strozza
argued. "There may be other employees out there who would
stay on without the retention program."

U.S. Bankruptcy Court Judge Gregg Zive told attorneys for
Pegasus to provide more evidence to support the claim it
needs the plan to retain key officials  during its
reorganization under Chapter 11 protection.


PEREGRINE: Templeton's Mobius hires Peregrine's Tose
----------------------------------------------------              
Mark Mobius, who runs Templeton's Emerging Markets Fund,
hired Phillip Tose, an old friend with the experience, both
good and bad, to help his expansion plans.  Templeton
Franklin Investment Services (Asia) Ltd said on Thursday it
had hired Tose, co-founder and former chairman of bankrupt
Peregrine Investments Holdings Ltd. as a consultant -- an
appointment which raised a few  eyebrows in the Hong Kong
market.

Tose will advise Templeton, a subsidiary of Franklin
Resources Inc on its strategy for the development of its
direct equity investment management business in Asia.
Franklin Resources held a stake of about 12 percent in
Peregrine Investments, a holding which was irrelevant to
Tose's appointment, said Mobius.  Peregrine Investments was
one of Asia's largest independent investment banks before
it was forced into liquidation in January, crippled by the
turmoil pounding Asian markets.  A deal involving
Indonesian transport company Steady Safe PT was  
considered to be a key element in the collapse of the
investment bank.

"Now we are starting a new effort which will be headed by
Philip Tose which  would deal with direct equity
investments both fixed income and equity  investments in
unlisted securities or in distressed securities," said
Mobius.   He said direct equity investments were set to
grow in Asia and Templeton had clients interested in these
deals.  "Currently the status in Asia is that many of the
companies are in dire need of cash and rejuvenation and
reorganisation and direct equity investment can help
accomplish that."
(Reuters:International-04/16/98)


QUADRAX:  De-Lists From SmallCap Market                      
---------------------------------------
The Company announced today that it is unable to meet its
April 15, 1998 deadline in connection with the filing of
its Annual Report on Form 10-KSB under the Securities
Exchange Act of 1934.  Since filing its petition for relief
under Chapter 11 of the Bankruptcy Code, the Company's
resources have been focused on the financial reporting
requirements of the Federal Bankruptcy Court.  The Company
currently expects to file its Annual Report with the
Securities and Exchange Commission by May 4, 1998.

The Company has requested a de-listing of its common stock
currently listed on The Nasdaq SmallCap Market under the
trading symbol "QDRXQ" effective at the  close of market,
April 15,1998.

                  *********

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