TCR_Public/980501.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, May 1, 1998, Vol. 2, No. 87                  

                  Headlines

ALLIANCE ENTERTAINMENT: Hearing on Sale of AEC Stock
AUSTRALIS MEDIA: Seeks to Sell $4M in 14% Bonds To Boulos
BRUNO'S INC: Motion to Move Case to Alabama Denied
CASA DONALDO: Files for Chapter 11 Protection
CONSOLIDATED STAINLESS: Committee Objects to Extension

DANFORDS INN: $8.5 Million Sale to Affiliate of Oaktree
EAGLE CREEK: Still No Business
GROSSINGER RESORT: Case Summary & 20 Largest Creditors
KIA MOTORS: Likelihood of Sale to Third Party Grows
KIWI AIRLINES: Joint Loan Helps Kiwi Get Off the Ground

MANHATTAN BAGEL: Second Request to Extend Time on Leases
MIDCOM COMMUNICATIONS: Hearing on Plan Confirmation
NAL FINANCIAL: Committee Applies to Hire Stroock & Stroock
NORTHWEST AIRLINES: Offers Wage Increases
PARAGON TRADE: Hearing Reset on Extension of Exclusivity

PHELPS TECHNOLOGIES: Court Ok's Sale of Tool Crib Property
QUORUM INTERNATIONAL: Hearing on Confirmation of Plan
RELIANCE ACCEPTANCE: Wins Interim Okay Of $20M NOL Shield
SEARCH FINANCIAL: Equity Responds to Abolition of Committee
SEARCH FINANCIAL: Equity Seeks to Employ Co-Counsel

TOY BIZ: Reports First Quarter Results
VENTURE MORTGAGE: Notice of Auction and Hearing on Sale
WESTERN PACIFIC: Denver Objects to Special Counsel

DLS CAPITAL PARTNERS: Bond Pricing for Week of 4/27/98

                 *********

ALLIANCE ENTERTAINMENT: Hearing on Sale of AEC Stock
----------------------------------------------------
A notice was published on Thursday April 30, 1998 in The
Wall Street Journal that the debtors, Alliance
Entertainment Corp., et al, filed a motion requesting an
order authorizing the sale of the capital stock of AEC
Holdings (UK) Limited.  An auction shall take place at a
hearing on May 21, 1998.


AUSTRALIS MEDIA: Seeks to Sell $4M in 14% Bonds To Boulos
---------------------------------------------------------
Facing a likely liquidation without financing to consummate
its restructuring plan, Australis Holdings is seeking
approval to extend the existing secured guaranty of the
company's 14% bonds to an additional $4.2 million in 14%
bonds.  The Australian pay television provider said Boulos
Holding Pty Ltd., which along with certain other
bondholders bought $5.8 million in 14% bonds for $4 million
in February, agreed to buy the remaining 14% bonds for $3
million on the condition that the company obtain a court
order extending the guaranty to the new issuance.
(Federal Filings, Inc. 29-Apr-98)


BRUNO'S INC: Motion to Move Case to Alabama Denied
--------------------------------------------------
Concluding that Bruno's business activities are primarily
national in nature, the court yesterday denied the request
of certain creditors to move the supermarket chain's
Chapter 11 case to Alabama.  The U.S. Bankruptcy Court in
Wilmington, Del., determined that the case did not merit a
transfer of venue because the interested parties, trade
creditors, financial institutions, equity holders and
landlords, are located throughout the country. (Federal
Filings, Inc. 29-Apr-98)


CASA DONALDO: Files for Chapter 11 Protection
----------------------------------------------
Add Casa Donaldo to the names Touch the East, Chiu Chau
Bistro and Johnny's.  Neither Italian, Japanese, Chinese or
American fare restaurants could make it work quite right in
the same spot at Restaurant Row.  Amici Miei Inc., dba Casa
Donaldo, filed for Chapter 11 bankruptcy protection April
13 without listing assets or debts. The reorganization
filing is a debtor-in-possession case where management
remains in control. The restaurant had been open a little
over a year.

The restaurant anticipated $3 million in gross sales during
the first year.  Multiple existing Restau-rant Row tenants
said traffic is slow and pushed along primarily by a lunch
and early dinner business crowd.  The restaurant had a
five-year lease.  Customers are also likely pulling for
Casa Donaldo as the restaurant sold hundreds of $50 gift
certificates last year. Bernard Hurtig of Hurtig Jewelers  
bought 75 certificates and gave them away last Christmas.
"I hope everybody used them," he said, surprised at the
restaurant closing.

Rumor among some Restaurant Row tenants is Casa Donaldo
will not reopen.  Whether they are correct will be known
soon as various statements are due to U.S. Bankruptcy Court
April 29, although filing extensions can be sought.(Pacific
Business News Honolulu - 04/27/98)


CONSOLIDATED STAINLESS: Committee Objects to Extension
------------------------------------------------------
The Official Committee of Unsecured Creditors of
Consolidated Stainless, Inc. object to the motion of the
debtor seeking to extend the exclusive periods to file a
plan of reorganization and solicit votes thereon.

The Committee believes that the debtors' management, Harvey
and Ronald Adams have grossly mismanaged the debtor's
affairs.  The Committee accuses Harvey Adams of self-
dealing, establishing competing businesses, engaging in the
unauthorized use of estate assets, and the Committee claims
that the debtor has no cause to extend the Exclusive
Periods.

The debtor has failed to make any legitimate progress in
the sale of its manufacturing operations, and the debtor
has made it clear that its personal desires and agenda come
before the interests of its creditors and estate.


DANFORDS INN: $8.5 Million Sale to Affiliate of Oaktree
-------------------------------------------------------
With no other bidders apparently interested in acquiring
the property, a federal bankruptcy judge yesterday approved
the $8.75-million sale of the Danfords Inn complex in Port
Jefferson to an affiliate of a Los Angeles-based  
pension-fund manager.

U.S. Bankruptcy Judge John Connelly, sitting in Westbury,
approved the sale of one of the region's prime waterfront
properties to Danfords Port Jefferson LLC, an affiliate of
Oaktree Capital LLC, which manages $10 billion in assets.

Oaktree, which bought the Montauk Yacht Club last year, is
expected to  close on the sale in about two weeks.

Danfords is owned by a group of McNamara-owned corporations
controlled by a court-appointed bankruptcy
trustee, Allan Mendelsohn. The companies, Mariners End
Corp., Bayles Dock Inc., Danfords  Restaurant Inc. and D.G.
Norton Co., were put into Chapter 11 bankruptcy  
proceedings in 1994 to avoid a foreclosure sale by Marine
Midland Bank, which financed the development.  Oaktree
officials have not publicly discussed any plans for the
property's future. (Newsday-Alan J. Wax; 04/30/98)


EAGLE CREEK: Still No Business
------------------------------
A year after buying the bankrupt Eagle Creek Resort, ESM
Development Corp. is nearing the end of a multimillion-
dollar renovation at the woodland retreat on Lake
Shelbyville, and reservations are on the rise. But after
the Shelby County resort's spotty history, the new owners
have yet to win over all of the business district in
neighboring Findlay.

Resort manager Jay Primavera blames the negative image some
Findlay residents have of Eagle Creek on the resort's
troubled financial legacy. The resort was constructed in
1988 using an unusual combination of $13.5 million in junk
bonds and a $3 million grant from then-Gov. James
Thompson's Build Illinois economic development program.
Income and occupancy rates never lived up to projections  
after the resort opened in 1989, and it was forced into
bankruptcy.

Eagle Creek is among the area's largest employers with a
staff of 150 in the summer months. ESM Development's
commitment includes extensive renovation work done over the
past year. Reservations have grown 15 percent from the
prior year.

The village board is stinging from Eagle Creek management's
refusal to contribute to the village police department's
budget. Villagers also chafe that the resort gets a tax
break that keeps the township and school district from
benefiting from increased business at the resort.

Eagle Creek received a 10-year industrial tax abatement
when it was built, according to Shelby County Clerk Jean
Richards. The resort, assessed at $2.55 million, paid no
property taxes the first two years of business. The county  
treasurer's office showed the abatement cut the resort's
1996 property tax bill in half to $112,722. The tax break
ends next year with a 40 percent discount. (State Journal
Springfield - 04/28/98)


GROSSINGER RESORT: Case Summary & 20 Largest Creditors
------------------------------------------------------

Debtor:  Grossinger Resort Corp
         581 Fifth Avenue
         New York, NY 10017

Type of business: Owner of real property - a hotel and golf
course at 26 Route 52 E. Liberty New York 12754-2208

Court: Southern District of New York

Case No.: 98-43030   Filed: 4/28/98    Chapter: 11

Debtor's Counsel: Karen Ostan
                  Brown Raysman Millstein Felder
                  & Stein
                  120 West 45th Street
                  New York, NY 10036
                  (212) 944-1515

Total Assets:              $11,000,000Total Liabilities:       
Secured $4,480,000
                         Unsecured $6,206,928

20 Largest Unsecured Creditors:

   Name                             Amount
   ----                             ------         
Associated Leasing                 $11,574
Blue Ridge Peat Farms, Inc.          $8712
Dae-Ki Min, Attorney               $60,000
Drew Davidott Edwards LLP           $1,612
Electro Electric Company            $2,048      
Ford Motor Co.                      $1,917
Gitlin Knack Pacloff LLP           $14,200
Grassland Equipment Irrigtation     $7,244.
Highway Display Inc.                $5,800
Isotonic Inc.                       $1,191
John Schmidt Electric Corp.         $2,285
Jukebox Radio                       $1,000
Kubota Credit Corp.                 $1,808
Luzon                               $7,230
M&M Sanitation                      $2,295
Mercedes Benz                       $4,290
Michigan Nat'l. Jeep                $2,625
NYSEG                               $6,965
Scotts Co                          $18,504
Selective Insurance Co.             $9,370
Textron Financial Corp             $12,789
The State Insurance Fund            $9,583
Titleist & Foot-Joy Worldwide       $1,704
Ultra Power Corp.                   $1,580
Village of Liberty/Sewer           $26,904
Wilfred Macdonald Inc.              $1,965


KIA MOTORS: Likelihood of Sale to Third Party Grows
---------------------------------------------------
Analysts say the widening investigation into allegations of
corruption by a former Kia Motors Corp chief shows the
South Korean Government will sell the nation's third-
largest car-maker to a third party despite strong labour  
opposition.

Kim Sun-hong, Kia's chairman until October, will be
questioned next week on  allegations he created a slush
fund last year to lobby government officials and  bankers
against pushing for Kia to go into court receivership, and
for his resignation.

Last week, prosecutors raided Mr Kim's house and
investigated his bank accounts.   "All indications we get
from the government are that Kia will be auctioned  
off to a third party," ABN Amro Asia's Seoul branch
research head Del Ricks said. "It appears the government
and {Kia's} creditors agreed that Kia cannot  
stand on its own."

Analysts said the allegations against Mr Kim, if proved,
would put further pressure on Kia's labour union to drop
its demand that the company retain its management and not
be sold to a third party.   The government has never
officially announced its policy toward Kia, under  
court receivership with debts of seven trillion won (about
HK$40.14 billion),  although many foreign investors have
keenly watched the case as a test of  President Kim Dae-
jung's promise to reform Korea's industrial structure to  
resolve its most serious economic crisis in decades.

Last summer, the president's predecessor, Kim Young-sam,
wasted months before nationalising Kia, leading investors
to dump Korean currency and stocks.   The new president,
who took power in February, scrapped the nationalisation
plan, promising to resolve the issue through "market
mechanism".  After senior government officials hinted at
the possibility of selling Kia in a public auction, Hyundai
Motor, the country's largest car-maker, announced  
its bid to buy Kia.  Samsung Group, Korea's second biggest
conglomerate with a new car division,  is also seeking to
buy Kia with Ford which has a 17 per cent stake in Kia.

But after Kia's strong union early this month waged a week-
long strike against the government move to sell the
company, Kia's court-appointed new chairman, Ryu Chong-yul,
backed off and said he was against the sale of Kia,  
adding the company could be saved with its management's
rehabilitation efforts.

Kia's union will lose public support if former chairman
Kim, architect of Kia's current management team, is
implicated in corruption.  News reports said the ex-boss
created a slush fund worth "millions of dollars" and
offered the money to officials and bankers to influence
their decisions.  Until recently, the former chairman Kim
had been touted as Korea's most successful professional
manager and genius who turned a small bicycle manufacturer
into a world-class vehicle maker with an annual production  
capacity of a million cars. (South China Morning Post; B.J.
LEE - 4/30/98)                      


KIWI AIRLINES: Joint Loan Helps Kiwi Get Off the Ground
-------------------------------------------------------
In a rare joint Erie County/Niagara County funding venture,
Kiwi Airlines received a financial boost to help secure the
low-cost air carrier's arrival next month at Niagara Falls
International Airport.

The Erie County Industrial Development Agency's Regional
Development Corp. unanimously voted to give half of the
$550,000 sought by Kiwi. Securing Kiwi and other low-cost
carriers are considered economic development tool that will
aid corporate and leisure travel trade. Buffalo has  
some of the highest air fares in the country but the
presence of Kiwi in Niagara Falls and AirTran at Buffalo
Niagara International Airport could force  
other major carriers to lower rates, officials said.

Kiwi is expected to start operations in mid-May with
flights between Niagara  Falls and Newark, Chicago and
Orlando.  In addition, local officials are negotiating with
Southwest Airlines to start service at Buffalo Niagara
International Airport.

The Regional Development Corp. has a $21 million pool,
primarily from federal funds, that the Erie County
Industrial Development Agency uses to finance venture
projects and enterprises.  The RDC loan is backed by Kiwi's
equipment as collateral. The collateral clause was a key
part of the package since Kiwi is just coming out of a  
bankruptcy filing.

"Our loan is well secured and well collaterialized," said
Ronald Coan, Erie County Industrial Development Agency
executive director. He said he hopes to start a joint
venture loan program between his agency and the Niagara
County Industrial Development Agency that will act as
another partnership bridge between the two counties.
BusinessFirstBuffalo-04/27/98


MANHATTAN BAGEL: Second Request to Extend Time on Leases
---------------------------------------------------------
Manhattan Bagel Company, Inc. and I & J Bagel, Inc., debtor
are seeking an extension of the time period in which to
assume or reject their leases of nonresidential real
property.

The debtors state that a primary focus of these Chapter 11
cases is the administration of leases.  It is the debtors'
hope to find as many franchisees for company owned stores
as they can, so as to recoup their significant investment
in those locations.  The debtors have administered 52
leases.  This has included the rejection of 38 leases; the
assumption and assignment of 6 leases; the surrender and
termination of 2 leases; and the conclusive determintation
that the debtors are not liable for 6 locations.  Only
approximately 10 company owned stores remain to be
administered from approximately 35 at the commencement of
the cases.

The debtors believe that they will not be in a position to
assume or reject leases until the process of negotiating a
plan of reorganization with creditors has further
progressed along with the process of searching for capital
investors or business partners.

The debtors are seeking an extension of time from May 18,
1998 to September 15, 1998.


MIDCOM COMMUNICATIONS: Hearing on Plan Confirmation
---------------------------------------------------
The combined hearing to consider the adequacy of the
Disclosure Statement and to confirm the plan will commence
on May 20, 1998.

Objections to the adequacy of the Disclosure Statement and
to the confirmation of the plan shall be filed by May 8,
1998.

The Committee has proposed the plan, which provids for the
liquidation and distribution of all of the assets fo the
companies.

The Committee members include:

WorldCom Network Services
Sprint Communications Company LP
Comdisco, Inc.
IBJ Schroder Bank & Trust Co.
American Express Travel Related Services Co., Inc.
Highmark International, Inc.
Teleport Communications Group, Inc.
Discom Corporation
Paramount Group, Inc.


NAL FINANCIAL: Committee Applies to Hire Stroock & Stroock
----------------------------------------------------------
The Official Committee of Creditors holding unsecured
claims applied to the court for approval of the employment
of Stroock & Stroock & Lavan LLP as counsel to the
committee.

The Committee seeks to hire the firm for legal advice with
respect to its rights, duties and powers in this case. It
will assist the committee in its investigation of the
debtors, the operation of the debtors' businesses and the
desirability of the continuance of such businesses and any
other matter relevant to the case or to the formation of a
plan.

The law firm will undertake this representation at their
respective customary hourly rates, subject to a courtesy
discount of 10%.  The firm reserves the right to apply to
the court for the payment of a retainer if and when the
terms thereof have been agreed upon between the firm, the
Committee and the debtors.


NORTHWEST AIRLINES: Offers Wage Increases
----------------------------------------
Under growing public pressure, Northwest Airlines said it  
is prepared to offer wage increases to resolve labor
problems that have caused  numerous flight delays and
cancellations at Detroit Metropolitan Airport.  It could
signal a willingness by Northwest to bargain and bring an
end to a contract dispute with 40,000 union workers,
analysts say.

Northwest said Tuesday it is ready to resolve the conflict.
Bargaining between Northwest and its six unions likely will
resume within a week. Talks with the largest union
representing about 27,000 workers -- the International
Association of Machinists -- were suspended April 9.
The Air Line Pilots Association, which represents 6,120
crew members, is expected to meet with Northwest next week.

Economic issues are the main stumbling blocks in bargaining
between Northwest and its union. The dispute is rooted in a
dramatic 1993 appeal by Northwest for help from its
workers. The company, strapped for cash and within one hour
of filing for bankruptcy, persuaded employees to give
concessions that saved the airline $880 million.
Northwest workers had their pay reduced by 12 percent, then
frozen at that level until 1996. At that time, pay was
restored to 1993 levels.  Union negotiators have been
unsuccessful for the past 20 months in reaching an
agreement with pay raises.  Northwest's sudden turnaround
into profitability couldn't have been accomplished without
employee sacrifices, experts said. From more than $1
billion in losses in 1992, Northwest executives led by  
President John Dasburg began carving out a niche for the
Minneapolis-based air carrier.  The firm began
concentrating on its efficient "hub" system, building up
key airport locations in Detroit, Minneapolis, Memphis and
Japan. Executives eliminated unprofitable flights and
routed 98 percent of its flights through one of the hubs.  
Northwest then reduced the huge debt it had accumulated
when management conducted a leveraged buyout in 1989.

By putting off buying new aircraft and instead retrofitting
the older DC-9 fleet, the airline was able to reduce its
long-term debt to a manageable $2.7 billion from $4.5
billion in 1994.  The company raised $260 million in cash
in 1994 by making an initial public stock offering of 20
million shares. The company now has had four years of  
strong earnings, including a record-breaking first quarter
of 1998. Northwest stock closed Tuesday at $52.87 1/2.
(Detroit News - 04/29/98)


PARAGON TRADE: Hearing Reset on Extension of Exclusivity
--------------------------------------------------------
The hearing on the motion seeking to extend the exclusive
period to file a plan of reorganization and to solicit
acceptances thereto has been reset to May 5, 1998.


PHELPS TECHNOLOGIES: Court Ok's Sale of Tool Crib Property
----------------------------------------------------------
In the case of Phelps Technologies, Inc. and Phelps Tool
and Die Houston, Inc., debtors, the court entered an order
approving the bid of Thomas J. Kramer and/or Tool Crib
Supplies, Inc. in the amount of $1,520,446. (subject to
adjustment) for the Tool Crib personal property.

The court also entered an order approving a final bid of
Stanger Investments, LLC of $510,000 for the Tool Crib Real
Estate.


QUORUM INTERNATIONAL: Hearing on Confirmation of Plan
-----------------------------------------------------
The court in the case of Quorum International, Ltd. has
scheduled a hearing to consider confirmation of the
modified plan to commence on May 5, 1998.  The last date
for parties in interest to file and serve objections to
confimation of the modified plan shall be May 5, 1998 prior
to the Confirmation Hearing.


RELIANCE ACCEPTANCE: Wins Interim Okay Of $20M NOL Shield
---------------------------------------------------------
Reliance won interim approval of notification and approval
procedures for the sale of certain claims as a means of
protecting an estimated net operating loss carryover of
approximately $20 million.  The U.S. Bankruptcy Court in
Wilmington, Del., has scheduled a final hearing for May 22.
(Federal Filings, Inc. 29-Apr-98)


SEARCH FINANCIAL: Equity Responds to Abolition of Committee
-----------------------------------------------------------
The Official Equity Committee filed a response to the
motion requesting the court to direct appointment of an
Unsecured Creditors Committee and for abolition of the
Equity Security Holders Committee.

On April 14, 1998 a first meeting of creditors was held in
the case of Search Financial Services Acceptance
Corporation, MS Financial Inc., Search Funding Corporation
and Search Financial Services, Inc. A motion was filed at
that time, stating that the unsecured creditors, including
Hall Phoenix/Inwood Ltd. (Hall) are unrepresented on the
Committee, although all other unsecured creditors
reportedly did not want to be on a Committee.  Hall argues
that conflicts exist between the equity holders and
unsecured creditors; and the unsecured creditors are not
likely to get a distribution or to retain their interests
in this case.  

No other creditor is in the same postiion as Hall. The
debtors dispute the more than $5 million claim of Hall, and
the debtors have announced that it is likely they will seek
to subordinate the claim of Hall to at least the unsecured
creditors.  Obviously, the Equity class states, Hall has
enough at stake that it has hired counsel to represent it
and has played a major role thus far in these cases.

The equity class states that there is no compelling reason
for this court to instruct the Office of the US Trustee to
alter the committee structure in this case.  There does not
appear to be significant interest among the general
unsecured creditors in having a committee.


SEARCH FINANCIAL: Equity Seeks to Employ Co-Counsel
---------------------------------------------------
The Official Equity Committee of Search Financial Services
Acceptance Corporation, MS Financial Inc., Search Funding
Corporation and search Financial Services, Inc. is seeking
court authority to employ the firm of Kronish,d Lieb,
Weiner & Hellman LLP as co-counsel.

The Committee seeks to retain the firm at the expense of
the estate to consult on certain legal issues and to
represent the interests of the constituency of the
Committee in this case.  The firm will charge on an hourly
basis.


TOY BIZ: Reports First Quarter Results
--------------------------------------
Toy Biz, Inc. today reported financial results for the
first quarter ended March 31, 1998.  First quarter  
net sales in 1998 were $42.6 million with net income of
$1.1 million, or $0.04 per share, compared to net sales of
$34.4 million and net income of $475,000, or $0.02 per
share, in the first quarter a year ago.

Joe Ahearn, President and Chief Executive Officer of Toy
Biz said, "We are very pleased with our first quarter net
sales, which reflect the results of the Company's marketing
and sales initiatives begun in 1997.  The increase in net
sales is primarily a result of sales of recently introduced
boy's accessories as well the introduction of L'il Splash
'n Shivers, a new promotional doll, during the 1998 first
quarter."  The Company noted that international sales  
were below 1997 levels primarily as a result of reduced
distribution of animated Marvel television shows in
international markets. The Company believes  that the
reduced distribution of those shows is a result of the
Marvel bankruptcy.

Mr. Ahearn also commented on the Marvel reorganization,
saying, "Although the Court of Appeals has stayed our
confirmation hearing, originally scheduled  for May 4, we
continue to be pleased with the progress that has been made
in  our efforts to bring the Marvel reorganization to a
close.  The recent support received from Marvel's Unsecured
Creditors Committee is a further step in the  right
direction.  We believe that our reorganization plan will
proceed forward toward confirmation and are
committed to that course."


VENTURE MORTGAGE: Notice of Auction and Hearing on Sale
-------------------------------------------------------
A notice was published in The Wall Street Journal on April
30, 1998 that a hearing will be held on May 20, 1998 in the
case of Venture Mortgage Fund, LP and David Schick, Venture
Mortgage Corp. and A & D Trading Group LLC.  

The auction and hearing are on the sale of managing and
nonmanaging membership interests in ICC 95-4, LLC, a New
York limited liability company and opportunity to submit
higher and better competitive bids.
There is an existing bid on the VMFLP ICC 95-4 interest by
Minren Associates Ltd. for the price of $5 million.


WESTERN PACIFIC: Denver Objects to Special Counsel
--------------------------------------------------
The City and County of Denver, in connection with its
municipal Airport System, objects to the application of
Western Pacific Airlines, Inc. to employ Otten, Johnson,
Robinson, Neff & Ragonetti, PC (Otten, Johnson) as special
counsel for the purpose of pursuing preference claims.

The City and County of Denver represents that Otten
Johnson's concurrent representation of the DIP Lenders
raises a conflict of interest with every creditor in this
case and bankruptcy policy militates against using a
debtor's ability to recover preferences as a means to
enrich a third party with no prepetition connection to the
debtor.

The City and County of Denver state that Otten Johnson is
not "disinterested" because it is a fiduciary to the DIP
lenders who in turn hold two seats on the debtor's board
and have a priority right to the proceeds of all preference
recoveries.  It is therefore apparent, under the
contemplated arrangement, that Otten Johnson aspires to
take an adverse position with repsect to all creditors for
the sole benefit of Otten Johnson's other clients, the DIP
lenders.

The City and County of Denver contend that the proposed
retention amounts to a straightforward attempt to
circumvent the rule prohibiting the sale or assignment of
preference claims for the benefit of individual creditors.
for theses reasons the City and County of Denver ask that
the court deny the application to employ the firm of Otten,
Johnson.


DLS CAPITAL PARTNERS: Bond Pricing for Week of 4/27/98
------------------------------------------------------
Following are indicated prices for selected issues:

Amer Telecasting 0/14 1/2 '04               24 - 26
Asia Pulp & Paper 11 3/4 '05            93 1/2 - 94 1/2
APS 11 7/8 '06                              19 - 21 (f)
Boston Chicken 7 3/4 '04                    39 - 41
Bradlees 11 '02                              1 - 2 (f)
Brunos 10 1/2 '05                           22 - 23 (f)
CAI Wireless 12 1/4 '02                     19 - 21
Cityscape 12 3/4 '04                        37 - 40
E&S Holdings 10 3/8 '06                     83 - 84
Grand Union 12 '04                          58 - 59 (f)
Greate Bay 10 7/8 '04                       86 - 87 (f)
Harrah's Jazz 14 1/4 '01                    30 - 32 (f)
Hechinger 9.45 '12                      78 1/2 - 79 1/2
Hills 12 1/2 '03                            92 - 92
Levitz 9 5/8 '03                            48 - 50 (f)
Liggett 11 1/2 '99                          76 - 78
Mobilemedia 9 3/8 '07                       12 - 14 (f)
Penn Traffic 9 5/8 '05                      46 - 48
Royal Oak 11 '06                        74 1/2 - 76
Service Merchandise 9 '04                   75 - 76
Trump Castle 11 3/4 '03                     90 - 91
Zenith 6 1/4 '11                            43 - 44

                  *********

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

Bond pricing, appearing each Friday, is supplied by DLS   
Capital Partners, Dallas, Texas.  

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Troubled Company Reporter is a daily newsletter, co-
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Debra Brennan and Lexy Mueller, Editors.   
  
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