TCR_Public/980421.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
      Tuesday, April 21, 1998, Vol. 2, No. 78

AL TECH: Seeks Extension of Exclusivity
AR ACCESSORIES: On Auction Block
BARRY'S JEWELERS: Reaches Agreement For Plan
COLUMBIA HCA: Sells Surgery Centers for $550 Million
GTE WIRELESS: Tower Meeting Canceled in Anderson

GIBSON'S HOLDING: Seeks Extension of Exclusivity
GUY F. ATKINSON: Exclusivity Extended To April 30
HOME HOLDINGS: Committee Objects to Intervention
JACKSON BROOK: Mercy and Maine Both Interested in Purchase
KIA MOTORS: To Resume Production

KIA MOTORS: Union, Receivers Seek Settlement on Strike
LOT$OFF CORP: Completes Sale of Contingent Claim
MAIDENFORM: Settlement Agreement With Bratex
MAIDENFORM: Taps Real Estate Broker
MOBILEMEDIA: Reportedly in Talks With Metrocall

MONTGOMERY WARD: Seeks Exclusivity Extension to 1/29/99
NAL FINANCIAL: Seeks Authority to Sell Portfolios
PEGASUS GOLD: Reports 1997 Year-End Results
QUADRAX CORP: To Employ Special Corporate Counsel
RIVER OAKS: Receives Final DIP Approval

THE WIZ: Seeks 90-Day Exclusivity Extension To July 1
TIE COMMUNICATIONS: Files For Bankruptcy - Lays Off 150
TOWN & COUNTRY: Disclosure Statement Approved
VENTURE STORES: Order Establishes Bar Dates

VENTURE STORES: Court Enters Orders
WESTERN PACIFIC: Charter Airline is Buying the Leftovers
WESTMORELAND COAL: Amends its Reorganization Plan

Meetings, Conferences and Seminars


AL TECH: Seeks Extension of Exclusivity
Al Tech Specialty Steel Corporation is seeking to extend
the period during which the debtor shall have the
exclusive right to file a plan to and including August 31,
1998 and the period during which the debtor shall have the
exclusive right to solicit acceptances of the plan to
October 30, 1998.

The debtor states that it has made progress in its case.  
The debtor has drafted a five-year business plan, and the
debtor has held informal discussions with representatives
of the Merger Banks.  Formal negotiation with the United
Steelworkers of America are ongoing.  Claims against the
debtor total $238,460,579.  The debtor has obtained a Bar  
Date, and the debtor has rejected several leases and
executory contracts.  The debtor obtained an order
authorizing the natural gas purchase agreement, and the
debtor has made extensive efforts, according to the debtor,
to evaluate and coordinate the sale of a variety of real
property and personal property that is no longer useful or
necessary to the debtor's operations.

AR ACCESSORIES: On Auction Block
AR Accessories Inc. is to be sold at auction May 6 in U.S.
Bankruptcy Court in Milwaukee.  Company executives have
said there was a possibility that a buyer might purchase
the former Amity Leather as an ongoing business, but it
appears more likely that the 81-year-old company will be
shut down.

Company executives say there are several prospective
purchasers for the company, but they declined to disclose
names, citing confidentiality agreements.  Executives have
testified in court that the sale is unlikely to garner
enough money to provide any proceeds for distribution to
unsecured creditors.   In its bankruptcy petition, the
company listed debts of $69.96 million and  assets of
$61.76 million. The debt includes $42 million of secured
debt owed to Bank One Wisconsin, Firstar Bank Milwaukee,
and Harris Bank and Trust in Chicago.

AR shut down its manufacturing operation in West Bend
recently but maintains a headquarters on Brown Deer Road in
Brown Deer and a distribution center in West Bend. The
company also runs a chain of 70 retail stores known as
Wallet Works. The Wallet Works division also is under
Bankruptcy Court protection.

A motion approved by Bankruptcy Judge James E. Shapiro sets
the opening bid for the entire AR business at $13.5
million, and $4 million for the Wallet Works business. The
minimum bid for the West Bend real estate is $2.8
million.  Bidders can bid for the entire company or for  
specific parts of the company.

Shapiro has denied the company's motion to pay stay-put
bonuses of  $132,496 to Pendergast and to Paul Christensen,
vice president of human resources and administration. The
bonuses were opposed by both U.S. Trustee John R. Byrnes
and by United Paperworkers International Union  Local 7915.
The union represents 192 AR workers who are owed more than  
$250,000 in vacation pay. (Milwaukee Sentinel Journal -

BARRY'S JEWELERS: Reaches Agreement For Plan
Barry's Jewelers announced that it has reached agreement
with key constituents in its Chapter 11 proceeding
regarding the terms of a consensual plan of  
reorganization.  Under the terms of the plan agreement, the
Bank Group, the Official Unsecured Creditor's Committee,
the Official Bondholder's Committee, the Unofficial Equity
Committee and Barry's generally have agreed to the
following treatment of creditors and shareholders:

1. The Pre-Petition Bank Group will be paid in full.

2. General Unsecured Creditors will be paid the lesser of
15 cents on the dollar or $2.55 million (to be distributed
on a pro rata basis). Claims of General Unsecured Creditors
are currently estimated to be approximately $15 million to
$17 million.

3. The Pre-Petition Bondholders have agreed to convert
their pre-petition claim of approximately $58 million into
equity of reorganized Barry's. In addition, they will
ultimately be entitled to participate, pro rata, in an  
infusion of $15 million in new equity capital. DDJ Capital,
Mitchell Hutchins and/or funds managed by them (which
collectively hold approximately 50 percent of Pre-Petition
Bondholders Claims) agreed in principle to contribute to  
Barry's an amount equal to the above mentioned $15 million
minus any amount contributed by other bondholders.

4. Existing equity will be entitled to receive its pro-rata
share of warrants to purchase up to 5 percent of the stock
of reorganized Barry's.

Other provisions of the agreement include that the
management team for reorganized Barry's will be headed by
Randy McCullough as chief executive officer and by Peter
Healey as chief financial officer, subject to the execution
of definitive employment agreements.

The board of reorganized Barry's shall be a seven-member
board to be appointed as follows: One member to be
nominated by the Bondholder Committee, two members to be
nominated by DDJ Capital, two members to be nominated by  
Mitchell Hutchins, and, subject to the execution of
definitive employment agreements, McCullough and Healey.

The parties also agreed that Barry's may relocate its
headquarters office space to Austin, Texas, and to support
the continued use of cash collateral until the earlier of
the effective date of the plan or Aug. 31, 1998, subject  
to a budget.

Moreover, the agreement provides for the resolution of
various litigation matters on or before the effective date
of the plan. Most of the foregoing is subject to certain
conditions, including bankruptcy court approval of the
Barry's plan.

In announcing the agreement to the court, Barry's informed
Judge Vincent Zurzolo that it expected to have its plan and
disclosure statement on file by  April 30, 1998. The
hearing date for approval of the adequacy of the
disclosure  statement has been set for June 3, 1998, at
2:30 p.m.

Commenting on the announced plan, Healey observed: " Most
importantly, the $15 million equity infusion, combined with
the conversion to equity by the Pre-Petition Bondholders,
will allow Barry's to emerge as one of the better
capitalized companies in the retail jewelry industry.

COLUMBIA HCA: Sells Surgery Centers for $550 Million
Columbia HCA/Healthcare Corp. has agreed to sell the
Woodward Park Surgicenter in Fresno and 33 other outpatient
surgery centers in 12 states to Healthsouth Corp. in
Birmingham, Ala., for $550 million, company officials  
announced Thursday.

Nashville-based Columbia, one of the nation's largest for-
profit hospital chains has been under investigation by the
government for possible Medicare and  Medicaid fraud. The
company recently had a management shake-up and revealed  
plans to sell off nearly one-third of its 336 hospitals and
health-care businesses in an effort to trim operations.

The sale will effectively move Columbia out of the Fresno
market. Columbia had a short-lived and financially troubled
business partnership with Fresno-based physicians group
Valley PrimeCare, known as Columbia-PrimeCare. Together  
the local doctors and Columbia operated primary group
medical sites in Fresno and Oakhurst.

Last year, Columbia sold the practices it had capitalized
to Community Health System in Fresno. Valley PrimeCare
filed bankruptcy.   Healthsouth will grow to include 212
outpatient surgery centers with the purchase, expected to
be completed by September.  Columbia will have 116 surgery
centers left.(FresnoBee - 4/17/98)

GTE WIRELESS: Tower Meeting Canceled in Anderson
An attempt to settle lawsuits involving Anderson Township,
the Ohio Department of Transportation and cellular phone
companies has failed.  GTE Wireless and AirTouch Cellular
have filed lawsuits asking for court authorization to erect
cellular phone towers in Anderson on land leased from  

Officials from Anderson, ODOT, and the Ohio Township
Association had scheduled a meeting last week. However,
ODOT canceled the meeting shortly before it was scheduled
to begin in Columbus.  "I absolutely was flabbergasted,"
said Anderson Township Trustee President Russell Jackson.

ODOT canceled after the department's attorneys advised it
would not be prudent to hold discussions while the lawsuits
were in progress.  "They had agreed to hold the meeting,"
said Jackson, "even though they knew full well the lawsuits
were in progress. Then their attorneys turned around and
said it wasn't a good idea to hold the meeting while the
lawsuits were in progress. It was quite strange."

The state township association wanted to attend the meeting
because townships across the state are facing problems
similar to Anderson.  ODOT is leasing land beside
interstates to cellular phone companies in a move expected
to bring $20 million a year in lease payments to the

In Anderson, GTE Wireless and AirTouch are leasing land
from ODOT to build 200-foot towers near Interstate 275.
AirTouch proposes building a tower at the cloverleaf at
U.S. 52, while GTE Wireless wants to build one off Five
Mile Road.  Jackson says the leases violate his township's
zoning laws, and neither ODOT, nor the cellular phone
companies, have the right to disregard them. The  
two cellular phone companies have asked Franklin County
Common Pleas Court to  rule that their leases from ODOT are
not subject to township zoning.

Anderson Township has asked Hamilton County Common Pleas
Court Judge Ralph  Winkler to issue a restraining order
stopping erection of the towers.  The township has also
asked Franklin County Common Pleas Court to
dismiss the AirTouch and GTE suits.  Winkler later this
month will consider issuing the restraining order.

So far, Anderson has spent $24,000 in its legal battle.
Jackson had hoped the meeting which ODOT canceled would
have led to a settlement.  As the legal battle continues,
he says the community will be forced to spend even more
taxpayer dollars.   Trustee Peggy Reis said, "It is
ridiculous for the township to have to spend taxpayer money
to protect residents against the actions of a state
agency which  is also funded by taxpayer money."
(Cincinnati Post - 04/16/98)

GIBSON'S HOLDING: Seeks Extension of Exclusivity
Gibson's Holding Company et al., debtors, are seeking an
extension of the period during which the debtors have the
exclusive right to file a plan or plans of reorganization
by approximately 30 days through May 18, 1998 and
extending the period during which the debtors have the
exclusive right to solicit acceptances of such plan or
plans by approximately thirty days through June 15, 1998.

The debtors state that they have made significant progress
in addressing the operational and financial problems which
led to the filing of these cases.  The restoration of
better trade credit to be one of the debtors' priority
goals.  They have implemented a reclamation claims
settlement program, and they have developed a three year
plan with the Committee.

They must still resolve their pre-petition federal income
tax liabilities, in excess of $4 million prior to the
confirmation of a plan of reorganization.

GUY F. ATKINSON: Exclusivity Extended To April 30
The court extended Guy F. Atkinson Co. of California's
exclusive right to file a reorganization plan and solicit
plan acceptances until April 30 and July 1, respectively,
subject to certain terms and conditions. Atkinson has
agreed not to file a plan that lacks the support of the
official creditors' committee, Wells Fargo Bank N.A. as
agent for the banks, and bonding companies Fidelity &
Deposit Co. of Maryland and American Insurance Group of
Cos., without first making a good faith attempt to meet and
confer with them. (Federal Filings Inc. 17-Apr-98)

HOME HOLDINGS: Committee Objects to Intervention
The Official Committee of Unsecured Creditors objects to
the motion for leave to intervene filed by certain
policyholders of Home Insurance Company.  The Committee
understands that the debtor will file a detailed objection
to the motion, which the Committee fully supports.

The movants hold no required direct interest in the
debtor.  At best, they are creditors of the debtor's
subsidiary have "purchased comprehensive general
liability, umbrella and excess policies from Home
Insurance."  Furthermore, the Committee states that the
movants' interests are already adequately represented, if
not by Home Insurance, then certainly by the Insurance
Commissioner of New Hampshire.  This intervention also
will only delay this case, which has a hearing on
confirmation scheduled for April 29 and April 30, 1998.

JACKSON BROOK: Mercy and Maine Both Interested in Purchase
Mercy Hospital announced Thursday it wants to buy Jackson
Brook Institute, the bankrupt psychiatric hospital in South
Portland.  The hospital's announcement that it wants to
provide nonprofit mental-health services elated state
health officials who have been hoping for a local  
owner of Jackson Brook. It also prompted Maine Medical
Center, Mercy's principal competitor in Portland, to reveal
that it also wants to purchase the financially troubled

Officials at Mercy and Maine Med both said it would be good
to put Jackson Brook in the hands of local, nonprofit
owners.  But a lawyer for Jackson Brook said the hospitals
would have to compete with other buyers in a process that
will balance the interests of Jackson Brook, its creditors
and Maine's health-care system.

In an agreement with the state that was accepted by the
court, the owners agreed to sell the hospital within eight
months to satisfy creditors. If an owner cannot be found by
the deadline, JBI's parent company may lose any say  over
who buys the hospital. At that point, authority would rest
entirely with the bankruptcy court.

It's unclear what the hospital's total debt is, but Jackson
Brook's top 10 creditors have filed claims for $7.4 million
in unpaid bills.   Mercy's chief executive officer, Howard
Buckley, said Thursday the hospital was prepared to do
"whatever it takes, within sound business practices," to  
restore Jackson Brook to a sound footing.  He said Mercy
also was interested in running the Smith House, a series of
free-standing clinics also operated by Jackson Brook's
owners that provide outpatient services to clients from
York to Augusta.

Mercy's announcement had the effect of forcing the hand of
MaineHealth, the parent company of Maine Med, to announce
its interest in Jackson Brook.  MaineHealth has insisted it
was only studying the possibility of bidding for Jackson
Brook. On Thursday, the state's largest health system put
its cards on the table.

"We're ready and we're very interested," said Vincent
Conti, Maine Med's president. "We need to be a little more
visible now in our interest."   With a 26-bed psychiatric
unit and the state's largest outpatient mental-health
program, Maine Med has been considered the top local
candidate.  Both hospital administrators said they would
consider joining forces on a proposal to buy Jackson Brook.
But competing offers also are a possibility.

Jackson Brook remains in operation, largely because the
Department of Human Services agreed to the early release of
$2.3 million in payments to the hospital after it went
bankrupt.  (Portland Press Herald; 04/17/98)                       

KIA MOTORS: To Resume Production
Kia Motors Co. union has announced plans to resume
production after receiving written assurance negating the
possibility of a third-party takeover.

Union spokesman Lee Jung-haeng said, "Workers decided to
put a partial end to the four-day halt, as extension of the
strike may harm the very purpose of our just demand."
Lee added, "If the government and creditors do not come up
with a comprehensive answer by Friday, the general strike
will continue on April 27."  He said a joint press
conference will be held by unionists from South  
Korea's six automakers to unveil pending strike plans.

Court-appointed manager Ryu Jong-yul was allowed into
Kia  Motors building in downtown Seoul, four days after
about 50 union members blocked his entry last Thursday.
About 11,000 union members began the rally in Seoul fearing
the court-appointed outside manager might arrange a third-
party takeover of the cash-strapped company.

Production halted Thursday at Kia's Sohari and Asan
factories, with production capacity of 3,000 cars per day.

The Seoul District Civil Court initiated the Kia Group's
court receivership process on Wednesday by appointing Ryu
Jong-yeul, former vice president of  South Korea's Hyosung
Industries Co, as manager for Kia and Asia
Motors.  Kia Group was the nation's 8th largest
conglomerate until it defaulted on loans surpassing $5.36
billion (7.5 trillion won) on July 15, 1997.  
(UPI:International - 04/20/98)

KIA MOTORS: Union, Receivers Seek Settlement on Strike
Kia Motors' union, receivers seek settlement on strike
Striking workers at South Korea's ailing Kia Motor  
Corp. backed down from their hardline stance Sunday to seek
an agreement with receivers on ending their strike.
"Talks are under way between union leaders and receivers,"
a Kia Motors spokesman told AFP.  "Options included a union
proposal to end the strike in return for a pledge by
receivers that the company will not be sold to a third
party," he said, indicating Kia's 13,800 union members may
end their strike soon.

The dialogue followed three days of labor protests,
prompted by a court decision last Wednesday to put Kia
under receivership.  Labor strife subsided Sunday, but some
1,000 dissidents and radical students  rallied at a park in
Seoul to support the militant Korean Confederation of Trade
Unions (KCTU).  The KCTU, one of South Korea's two umbrella
union groups, has threatened to organize a general strike
next month if the government goes ahead with its harsh
economic restructuring.

The Sunday rally turned into an anti-US protest, with
slogans accusing Washington of forcing South Korea to
accept a humiliating 57-billion-dollar bailout from the
International Monetary Fund.  "We need renegotiations on
the harsh terms of the IMF bailout," a dissident  
leader said.

But Kia's workers were absent, showing their new tactic
following a change in their management.   On Saturday,
receivers replaced Kia Motors president Park Je-Hyuk with
Song Byung-Nam, head of Kia Information System. Park has
offered to resign since Kia's union launched the strike
last Thursday.  "Union leaders believe the strike has
failed to win public support," the Kia  spokeman said.

The government of President Kim Dae-Jung, who took office
in February, has appealed for industrial peace, urging both
unions and management to avoid a showdown through dialogue.
Lay-offs were a key condition demanded by the IMF in return
for the bailout agreed in December, ending South Korea's
hallowed lifetime employment practice.

But KCTU leaders argued that union workers understood
companies must layoff employees to overcome the financial
crisis, but not when they refuse to reform  
themselves before taking it out on the workers.

Some 10,000 workers nationwide are losing their jobs daily
in South Korea, mostly among white-collar workers in
financial institutions and management sections of huge
family-run conglomerates.  (AgenceFrancePresse- 04/19/98)

LOT$OFF CORP: Completes Sale of Contingent Claim
LOT$OFF Corporation reported that it completed a corporate
reorganization involving the formation of a partnership to
effect the  sale of a contingent claim on a portion of its
potential net proceeds from a judgment the United States
District Court in San Antonio entered in its favor against
The Chase Manhattan Bank for the bank's role in the
conversion of  certain shares of the Company's old common

The Company has received $5,800,000, or 58 cents on the
dollar, from the partnership for a $10,000,000 portion of
the judgment against Chase. On December 4, 1997, "after
having considered the entire record, including the  
jury's answers to the special interrogatories," United
States District Judge H.F. Garcia confirmed a jury's
November 20, 1997 verdict obtained in the Company's lawsuit
against Chase and others, and the Court entered the
judgment  against Chase in the Company's favor for
$148,575,000 plus costs of court, pre-judgment interest and
post-judgment interest.  While the Company has no material
present financial obligation to the partnership, upon
receipt of net proceeds from Chase, or otherwise,
attributable to the judgment, the limited  partners could
receive as much as $9,000,000 - $10,000,000 according to a  
scheduled payout with respect to their contingent

Coincident with the closing of the transaction, the Company
amended its credit agreement with its asset based lender
with whom the Company has a $15,000,000 revolving credit
facility waiving any and all defaults.

MAIDENFORM: Settlement Agreement With Bratex
Maidenform Worldwide Inc, et al, debtors, seek approval of
a settlement agreement with Bratex Dominicana C. Por A.

Bratex is an unaffiliated, third party foreign contractor
that sews and finishes the debtors' merchandise.  The
Bratex Agreement resolves all disputes between the parties
related to the debtors' previous obligations.

The agreement also establishes a revised arrangement based
on production commitments.  The Bratex Agreement runs
until December, 1999.

MAIDENFORM: Taps Real Estate Broker
Maidenform Worldwide Inc, et al, debtors, seek to hire
Cushman & Wakefield of New Jersey, Inc.  to serve as
exclusive real estate broker of the disposition of certain
real property, the debtors' distribution facilities in
Jacksonville, Florida and Corlandville, New York.

MOBILEMEDIA: Reportedly in Talks With Metrocall
MobileMedia is reportedly in talks to be purchased by
Metrocall Inc., the second  largest domestic paging company
and an issuer to the  high yield market.

MobileMedia postponed a disclosure hearing involving the
terms of its bankruptcy because of continued discussions
with its creditors  and outside parties last week. Sources
said Metrocall was the more likely buyer, although
Arch Communications has to be considered a suitor as well.

MobileMedia's distressed bonds traded up for the week, from
about 9 to 12.5  on the news last week. Sources said the
addition of MobileMedia's three million in paging
subscribers and its two-way technology spectrum it owns
would be a good fit for Metrocall, which has about four
million in paging units.

Under the exit strategy devised by MobileMedia, the bank  
lenders were to receive another $150 million in new debt as
well as  equity, while the subordinated bondholders were
expected to receive  only 3% in equity.  (Copyright
American Banker Inc. - Bond Buyer 1998 HighYieldReport-

MONTGOMERY WARD: Seeks Exclusivity Extension to 1/29/99
In keeping with its goal of filing a plan of reorganization
by early 1999, Montgomery Ward is seeking to extend its
exclusive plan filing and solicitation periods to Jan.
29,1999 and March 30, 1999, respectively. "It is
unrealistic to think that the Debtors or any creditor or
other party in interest will be in a position to formulate,
promulgate and build a consensus to support a
reorganization plan before the end of the year," the
retailer asserted. (Federal Filings Inc. 20- Apr-98)

NAL FINANCIAL: Seeks Authority to Sell Portfolios
NAL Financial Group, Inc., debtor, and its affiliates,
files a motion for entry of an order authorizing the sale
of the debtor's loan and lease portfolios.

The debtors own the Textron portfolios, in which they
believe they have equity in excess of $3.5 million.  The
debtors also own the Greenwich Portfolios and certain
additional portfolios.  The debtors have set May 4, 1998
as the auction date.

PEGASUS GOLD: Reports 1997 Year-End Results
Pegasus Gold Inc. reported its year-end results.  As
reported earlier, the Company's six mines produced 469,952
ounces of gold in 1997 at a total cash cost of $308  
per ounce, compared to 497,340 ounces at a total cash cost
of $301 per ounce a year earlier.  During the fourth
quarter of 1997, the Company produced a total of 116,902
ounces of gold compared to 146,107 ounces in the fourth
quarter of 1996.  Total cash costs in the fourth quarter of
1997 were $339 per ounce compared to $303 per ounce for the
same period in 1996.

For 1997, the Company reported a net loss of $512.8 million
or $12.40 per share, compared to a net loss of $21.6
million or $0.53 per share in 1996. The net loss for 1997
included $482.1 million, or $11.66 per share, for the
effects of property write-downs, restructuring charges,
increased estimates of future closure and reclamation
costs, the write-down of available for sale securities,
and losses on foreign exchange contracts, offset by gains
from the closeout of the hedge portfolio.  The net loss for
1996 included the effects of accelerated  depreciation and
amortization, increased estimates of future closure and  
reclamation costs and property write-downs totaling $19.4
million, or $0.48 per  share.  Excluding the effects of the
above, the net loss for 1997 would have  been $30.7 million
or $0.74 per share, compared to $2.2 million or $0.05 per  
share in 1996.

Following a recalculation of the ore reserves using a gold
price of $350 per ounce, a review of the carrying value of
its mineral properties, and the close-out of the entire
hedge portfolio, the Company recorded after-tax, non-
cash property write-downs totaling $90.3 million in the
fourth quarter 1997. The write-downs include Florida Canyon
($25.6 million), Montana Tunnels ($24.4 million), Mt. Todd
($25.3 million), and $15.0 million of other property write-
downs at Zortman, Pullalli, and Beal Mountain.  As a
result, the Company had a  net loss of $76.9 million, or
$1.85 per share in the fourth quarter of 1997, compared to
a loss of $12.1 million or $0.30 per share in 1996.

The Company reassessed the recoverability of the
carrying value of its  operating and development properties
during the fourth quarter of 1997, in  light of the close-
out of the Company's entire hedge portfolio in December
1997  and January 1998.  With no price protection for
current or future gold  production, the Company adjusted
the gold price used in the impairment test to  the spot
price of $305 per ounce for 1998 plus the forward curve for
future  years.  As a result of this reassessment, after-
tax, non-cash property write- downs were recorded at
Florida Canyon and Montana Tunnels of $25.6 million and  
$24.4 million respectively, in the fourth quarter.

In addition, the Company received an updated estimate of
the fair value of  the Mt. Todd assets.  The revised
estimate resulted in an additional write-down  of $25.3
million for Mt. Todd.

As previously reported, the Company has decided that it
will not construct the Zortman Extension Project and will
proceed with the reclamation of the existing site.  Factors
contributing to this decision included the IBLA's  
inaction on the appeal of the Record of Decision and the
recalculation of the ore reserves at $350 per ounce gold
which shows that the project cannot support  the $30 to $40
million capital investment necessary to construct the
expansion.   The Company determined that at current gold
prices, and with a reduced reserve base, the project is
uneconomic, and therefore, the Company wrote down the  
remaining development costs and equipment totaling $9.1
million.  The Company also recorded a provision of $41.8
million to accrue the remaining reclamation  liabilities at
the site, and $4.4 million to accrue anticipated care and  
maintenance costs.

Additionally, in the fourth quarter of 1997, the Company
recorded a $5.0 million write-off of the remaining
development costs at the Pullalli Project.  Currently, the
Company is attempting to sell the project.

In December 1997 and January 1998, the Company closed out
all its forward sales contracts. This was in response to a
demand by certain of the Company's lenders who exercised
the right to set-off any proceeds received from the close-
out of forward sales contracts against the balances owing
to the lenders under the Revolving Credit Facility (the

In total, the Company has recorded a $88.7 million gain on
closeout of these contracts, comprised of $53.0 million
relating to contracts closed out in 1997 and $35.7 million
for mark-to-market adjustments for closeouts in January
1998.  $30.5 million of the proceeds on closeout were
received in cash with $58.2 million of the proceeds used to
offset a portion of the foreign currency losses and
balances owing to the lenders under the Facility.

The Company had losses on disposition of assets and
investments in 1997 totaling $28.1 million including $18.4
million of losses on foreign currency contracts, $10.4
million of losses on the disposition of investments and
mark-to-market adjustments of investment securities, and
$0.7 million of gains on the disposal of fixed assets.

Revenues in 1997 from the sale of gold and other
metals, excluding the  effects of hedging activity,
declined 15 percent to $185.4 million, compared to  $219.4
million in 1996, as a result of lower production.  The
Company's average  realized price for gold in 1997 was $415
per ounce, compared to $426 in 1996  and an average spot
gold price of $337 per ounce for 1997.  The use of forward  
sales and other hedging programs added $41.1 million to
revenue in 1997,  (excluding the $88.7 million gain on the
closeout of the hedge portfolio),  compared to $20.3
million in 1996.

During the fourth quarter of 1997, revenues from gold and
other metals totaled $49.3 million, compared to $67.5
million in 1996.  The Company realized  $373 per ounce of
gold in the quarter, compared to $424 per ounce for the
same  quarter in 1996.  The average spot price was $306 per
ounce in the last quarter of 1997.

During 1997, revenues from the sale of other metals
contributed 14 percent to the total sales of the Company.  
Other metal revenues increased in 1997 by 14 percent to
$31.7 million compared to $27.9 million in 1996.  The
higher revenue is attributable primarily to higher
production of zinc and lead combined with an increased
realized price for zinc at Montana Tunnels. Average  
realized prices for 1997 were $4.60 per ounce, $0.54 per
pound, and $0.26 per pound for silver, zinc, and lead,
respectively, compared to $5.05, $0.49, and $0.28,
respectively, in 1996.

Sales of other metals were $5.7 million in the fourth
quarter of 1997, compared to $5.7 million during the same
period of 1996.  Fourth quarter 1997 realized prices were
$4.82 per ounce, $0.45 per pound, and $0.19 per pound for  
silver, zinc, and lead, respectively, compared to $4.27,
$0.50, and $0.29, respectively, in the fourth quarter of

During the fourth quarter of 1997, operations ceased at
both Beal Mountain and Black Pine as ore deposits were
mined out.  During this time the Mt. Todd Mine was placed
on care and maintenance.  The Company's ongoing operations  
include Florida Canyon, Montana Tunnels and Diamond Hill
which are expected to produce approximately 300,000 ounces
of gold at an average total cash cost of $250 per ounce in

Total exploration expenditures for 1997 and 1996 were $10.1
million and $19.0 million, respectively.  Expensed
exploration and evaluation expenditures decreased 15
percent in 1997 to $6.5 million, compared to $7.7 million
last year, as the Company focused it efforts on mine site
exploration.  For 1998, the total exploration and
evaluation program is expected to be $4.3 million of  
which $3.9 million is expected to be expensed.

The Company had $22.6 million in cash and cash equivalents
and a total of  $108.2 million in current assets as of
December 31, 1997.  The Company  currently has $33.7
million cash on hand after receiving $9.3 million from  
hedge close-outs in January 1998 which will be used as its
working capital  going forward.  The Company expects that
its cash and cash equivalents are adequate to meet its cash
requirements through 1998.

General and administrative expenses decreased 27 percent to
$9.7 million from $13.2 million in 1996, primarily because
of a reduction in the Company's workforce, decreased travel
and outside service costs, and an effort to conserve cash,
partially offset by higher salary and benefit costs,
including the cost of severance.

In 1997, operating activities generated cash flow of $25.8
million compared to $19.7 million during 1996.  Increased
cash flow is attributable to favorable changes in working
capital accounts, primarily accounts receivable.
Decreased accounts receivable are attributable to decreased
production in December 1997, compared to December 1996, the
deconsolidation of the accounts of Pegasus Gold  Australia
(PGA), and quicker turnover of accounts receivable
compared to 1996.   Cash flow from operations before
working capital changes for 1997 was $7.9  million compared
to $38.0 million a year ago due to lower production, lower  
realized prices and higher cash costs.

Capital expenditures in 1997 totaled $65.1 million,
compared to $233.9  million a year earlier in 1996.  The
majority of the capital was spent on completing and
commissioning the milling and processing facility at Mt.

Subsequent to the Company filing for protection under
Chapter 11 on January 16, 1998, a Creditors' Committee was
formed.  The committee consists of nine  creditors, of
which three represent lenders under the revolving credit  
facility, three represent convertible subordinated note
holders and three are  trade creditors.  The first meeting
of creditors (the ``341'' meeting) was held  in Reno,
Nevada on March 9, 1998.

The Company has asked the court to fix May 26, 1998 as the
``Bar Date'', the  deadline for parties-in-interest to file
proofs of claim and interest.  A notice of the Bar Date
will be sent to all pre-petition creditors.  As well,  
the Company has filed a motion, as it continues to work on
finalizing a plan of  reorganization, requesting an
extension of the exclusive period during which to  file a
plan of reorganization through July 31, 1998 and the
exclusive period to  solicit acceptances of such plan
through September 30, 1998. It is the Company's goal to
propose a plan of reorganization by July 31, 1998 and to  
conclude these cases by year-end.  The Bankruptcy
Court has scheduled a hearing  on May 13, 1998 to hear this

QUADRAX CORP: To Employ Special Corporate Counsel
Quadrax Corporation, the debtor, is requesting court
authority to employ the firm of Hale and Dore LLP as
special corporate counsel for the debtor.

The firm will advise and represent the debtor with respect
to SEC matters, NASDAQ listing rules and regulations, tax
matters and other corporate and general legal matters.  
Hale and Dorr will not duplicate the services of Winograd,
Shine & Zacks, PC.

RIVER OAKS: Receives Final DIP Approval
River Oaks Furniture, Inc., a designer and manufacturer of
upholstered furniture primarily to large furniture chains,
said today that it has received final Court approval of up
to $32.9 million in debtor-in-possession (DIP) financing.   
BNY Financial Corporation will provide the financing, which
the Company says  will give it the resources it needs to
complete its restructuring and  successfully emerge from
Chapter 11, as early as the end of this year.

Additionally, the Company announced a major new commitment
to improved customer service, specifically in the areas of
product quality, delivery and reliability. According to
Richard Redden, interim chief executive officer of  
River Oaks, "The new financing is a vote of confidence by
the financial community that will permit us to resume
competitive purchasing of goods for the  benefit of our
retail customers.  Moreover, this added support will enable
the Company to return to historic levels of customer
service and reliable on-time delivery, which suffered as a
result of the Company's recent difficulties.

River Oaks reported sales of approximately $120 million in
1997.  Its  founders, Stephen L. Simons, chairman, and John
D. Nail, president, remain active in the Company, which for
many years was one of the fastest growing furniture
manufacturers in the country.  More recently, the Company   
which was  founded in 1987  has been burdened with
liquidity problems, primarily as a result of the 1995
restatement of its financial statements and declining
profit margins in its 1997 and first quarter 1998 fiscal

The debtors, SA Telecomunications, Inc, and it s
affiliated companies seek an order fixing June 1, 1998 as
the last date and timer for the filing of proofs of claim
against the debtors.

THE WIZ: Seeks 90-Day Exclusivity Extension To July 1
Claiming to be in a position to file a consensual plan
within 60 days, the Wiz has asked for a
90-day extension of the company's exclusive periods for
filing a reorganization plan and soliciting plan
acceptances to July 14 and Sept. 12, respectively. The
retailer noted that its first months in bankruptcy were
spent preserving the value of its assets, soliciting
and analyzing competing purchase offers, and completing the
asset sale to Cablevision Electronics Inc. (Federal Filings
Inc. 17-Apr-98)

TIE COMMUNICATIONS: Files For Bankruptcy - Lays Off 150
Tie Communications Inc. has laid off 150 workers - about
five in its Overland Park headquarters - and filed for
bankruptcy as it prepares itself for sale.

The layoffs and attrition have resulted in the loss of 200
jobs in the past month.  The company filed for bankruptcy
last week in California, where it receives 20 percent of
its business, according to Bill Brandt of Development
Specialists Inc. of Chicago, a consultant who is advising
the company on its restructuring.

The company, founded in 1971, has been through one previous
bankruptcy and three owners in a dozen years.  Company
officials could not be reached for comment.  Tie, which
sells telecommunications equipment, services and long
distance, had revenue of about $100 million in 1997 and
roughly broke even for the year, Brandt said.

The company owes about $30 million to creditors, Brandt
said. NationsBank is owed $14 million, unsecured creditors
are owed $11 million, and owed taxes amount to about $3.5
million, he said.

"The reason we are in bankruptcy is not because of any
imminent inability  to repay our obligations," he said.
If the company can be sold for more than $30 million,
creditors will be fully compensated, Brandt said. But the
company decided to file for bankruptcy when it realized it
might not sell for a high enough price to cover its debts,  
he said.

Tie should be worth roughly $45 million, and potential
buyers on both coasts, as well as Kansas City, have
expressed interest in Tie, Brandt said. Meanwhile, the
company is streamlining its staff in Kansas City and 20  
regional offices and additional field offices. Kansas City
Star - 04/18/98)

TOWN & COUNTRY: Disclosure Statement Approved
Town & Country Inc.'s disclosure statement relating to its
second amended reorganization plan was approved at
yesterday's hearing. Solicitation packages will be mailed
on Tuesday and a confirmation hearing is scheduled for May
26. (Federal Filings Inc. 17-Apr-98)

VENTURE STORES: Order Establishes Bar Dates
The court entered an order setting May 29, 1998 as the
general bar date in the case of Venture Stores, Inc.

VENTURE STORES: Court Enters Orders
The court in the case of Venture Stores, Inc. entered an
order authorizing the assumption of the Credit Card
Merchant Agreement with Wells Fargo and First Data.

The court in this case authorized the assumption o the
retail purchase agreement with General Electric Company.

The court authorized the debtor to return certain
prepetition goods to vendors and to Handelman Company.

The court entered an order authorizing the employment and
retention of D.G. Hart Associates, Inc, for the official
Committee of Unsecured Creditors.

WESTERN PACIFIC: Charter Airline is Buying the Leftovers
A Florida-based charter airline is buying the remnants of
now-defunct Western Pacific Airlines, with possible ongoing
impact on Colorado Springs. Star Air, part of Palm Beach
Aerospace, will pay $350,000 for a handful of WestPac's
assets, including operating certificates issued by the
Department of Transportation and the Federal Aviation

A federal bankruptcy judge in Denver, still overseeing
WestPac's shutdown, has approved the deal, expected to
close next week. The charter airline - which specializes in
air service to sports teams and rock stars - will receive
WestPac's flight manuals, maintenance records, spare-
parts inventory, some office furniture and equipment, and
the WestPac name and related trademarks.

But WestPac official reckoned that Star would set up an
office at the Colorado Springs Airport, considering the
purchase of office furniture. Airport  officials, though,
said they haven't been notified of that.  Another official
close to the deal said that some sort of announcement about
local operations might be made in the coming weeks.

Star Air and Palm Beach Aerospace operate one Boeing 747SP,
configured with  100 seats, and a handful of other, smaller
jets.   But the company doesn't have DOT or FAA authority
to fly. Instead, sources said, Star Air acts as a kind of
broker, arranging the charters and providing the plane,
then hiring another company - one with valid operating
certificates - to do the flying. One source said the
company flew the Canadian hockey team to Japan for the
recent Winter Olympic Games.

The company also has contracts with several professional
sports teams to handle their travel, and has flown rock
groups such as the Rolling Stones and Fleetwood Mac during
recent world tours, a Star Air attorney said.
But now, Star apparently wants to get out of the middleman
business. The company approached Pan American Airlines
earlier this year, trying to buy Pan Am's extra, valid
flying certificates. That deal - which Pan Am officials
said was to be $1.5 million - fell through.

Terry Hickman, who retired as Pan Am's director of safety
and security last month, said the offer to WestPac
represents a new low-ball for the industry:  
"$350,000 has just put a new dollar figure on a (FAA)
certificate. Traditionally, an operating certificate is
somewhere north of $1 million."

The Star Air deal was struck with Smith Management,
WestPac's former lender which stopped financing the airline
in late January. Bankruptcy court records show that Smith
Management, which has pumped about $30 million into
WestPac since December, will wind up with a net loss on its
investment of roughly $20  million.

For now, a handful of WestPac officials - including five
managers required to remain on staff to keep the operating
certificates valid - are winding up the airline's
liquidation. The process should be completed by the end of
May, officials said. (Gazette- 04/17/98)

WESTMORELAND COAL: Amends its Reorganization Plan
Colorado Springs-based Westmoreland Coal Co., in Chapter 11
bankruptcy since December 1996, has filed its amended
reorganization plan and reported net 1997 income of $28.2
million, down from $38.3 million for the previous year. The  
bankruptcy protection filing came after Westmoreland
failed to reach a  settlement with the United Mine Workers
of America Retiree and Pension Fund  over outstanding
benefit obligations for 5,000 retirees.

The company said it would continue to dispute the more than
$260 million in claims against Westmoreland filed by three
of UMWA's benefits and pension funds.  Operating income for
1997 was $33.6 million compared to a loss of $800,000  
for 1996.

Although Westmoreland can't pay dividends to shareholders
while in Chapter 11, the company reported per share income
of $3.34 for 1997 compared to $4.80 the previous year.
Optika announces drop in revenue: Colorado Springs-based
Optika announced Thursday that revenues for the first
quarter, ended March 31, 1998, decreased 18 percent to $3.7
million, compared with $4.5 million in the previous year.

The company experienced a net loss in the first quarter of
1998 of $1.3 million, or $0.19 per share, compared with a
net income of $73,000, or $0.01 per share in the same
period last year.   Mark K. Ruport, president, CEO and
chairman of Optika, said the losses reflect the
introduction of the company's eMedia product during the
quarter. (Gazette- 04/17/98)

Meetings, Conferences and Seminars

April 20-21, 1998
      20th Annual Current Developments in Bankruptcy
      and Reorganization
         San Francisco Hilton & Tower, San Francisco,
            Contact: 1-800-260-4PLI
April 23-24, 1998
      1998 Spring Education Seminar
         Hawthorne Suites Hotel, Charleston, South Carolina
            Contact: 1-803-252-5646

April 27, 1998
      Continuing Legal Education Seminar:
      "The Bankruptcy Code and New York Matrimonial Law --
      Anticipating and Dealing with Insolvency in a
         Southgate Tower Hotel, New York City
            Contact: 1-800-582-2452

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

May 1-3, 1998
      6th Annual Convention
         Fountainbleau Hilton Resort, Miami, Florida
            Contact: 1-703-803-7040

May 7-9, 1998
      20th Annual Advanced ALI-ABA Course of Study
      in Banking and Commercial Lending Law
         Renaissance Stanford Court Hotel
         San Francisco, California
            Contact: 1-215-243-1630

May 18, 1998
      Continuing Legal Education Seminar:
      "The Bankruptcy Code and New York Matrimonial Law --
      Anticipating and Dealing with Insolvency in a
         Buffalo Hilton, Buffalo, New York
            Contact: 1-800-582-2452

May 22-25, 1998
      50th New England District Annual Meeting
         Ocean Edge Resort & Golf Club
         Cape Cod, Massachusetts
            Contact 1-617-720-1355

May 28-30, 1998
      Partnerships, LLCs, and LLPs: Uniform Acts, Taxation,
      Drafting, Securities, and Bankruptcy
         Seattle, Washington
            Contact: 1-800-CLE-NEWS

May 31-June 5, 1998
      CLLA Credit Institute
         Marquette University, Milwaukee, Wisconsin
            Contact 1-312-781-2000

June 3-6, 1998
         San Francisco, California
            Contact 1-541-858-1665

June 4-6, 1998
      Fundamentals of Bankruptcy Law
         Charleston Place, Charleston, South Carolina
            Contact: 1-800-CLE-NEWS      

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

June 11-12, 1998
      1st Annual Conference on Corporate Reorganizations
         The Palmer House, Chicgo, Illinois
            Contact 1-903-592-5169 or

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

July 2-5, 1998
      Western Mountains Bankruptcy Law Institute
         Jackson Lake Lodge, Jackson Hole, Wyoming
            Contact 1-770-535-7722

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

July 23-24, 1998
      How to Handle Consumer Bankruptcy Cases:
      A Practical Step-by-Step Guide
         PLI Conference Center, New York City
            Contact: 1-800-260-4PLI

July 23-25, 1998
      Chapter 11 Business Reorganizations (Advanced Course)
         Santa Fe, New Mexico
            Contact: 1-800-CLE-NEWS

July 24-29, 1998
      104th Annual Convention
         Ritz Carlton, Amelia Island, Florida
            Contact: 1-312-781-2000

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

September 9-13, 1998
      Annual Convention
         Sheraton El Conquistador, Tuscon, Arizona
            Contact: 1-803-252-5646

September 17-20, 1998
      Southwest Bankruptcy Conference
         The Inn at Loretta, Santa Fe, New Mexico
            Contact: 1-703-739-0800
September 17-20, 1998
      Midwest Mid-Year Meeting
         Oak Brook Hills Resort & Hotel
         Oak Brook, Illinois
            Contact: 1-616-372-6500

September 21-23, 1998
      7th Annual States' Taxation and Bankruptcy Conference
         Hotel Santa Fe, Santa Fe, New Mexico
            Contact: 1-505-827-0728

September 25-26, 1998
      13th Annual Nid-Atlantic Institute on
      Bankruptcy and Reorganization Practice
         Boar's Head Inn, Charlottesville, Virginia
            Contact: 1-800-979-8253

October 8-10, 1998
      Real Estate Defaults, Workouts, and Reorganization
         Charleston, South Carolina
            Contact: 1-800-CLE-NEWS

October 16-20, 1998
      1998 Annual Conference
         The Westin Hotel, Chicago, Illinois
            Contact 1-312-857-7734

November 30-December 1, 1998
      5th Annual Conference on Distressed Debt
         Plaza Hotel, New York, New York
            Contact 1-903-592-5169 or   

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

May 3-4, 1999
      Bankruptcy Sales, Mergers & Acquisitions
         San Francisco, California
            Contact 1-903-592-5169 or   

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to are encouraged.  


The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to are encouraged.  

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
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
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.  
               * * *  End of Transmission  * * *