TCR_Public/980505.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, May 5, 1998, Vol. 2, No. 89                  


AR ACCESSORIES: Auction Set for May 6
BOSTON CHICKEN: 3 Top Officers Resign
CONSOLIDATED STAINLESS: Creditors Beg for Trustee
DABUCH REALTY: Case Summary & Largest Creditors
DOW CORNING: Compromise of Environmental-Related Claims

DOW CORNING: Tort Claimants Seek to Retain Kinsella
GAYLORD CO: Cookstore Debtors Seek Exclusivity Extension
GREATE BAY: Bank Objects to Exclusivity Extension
GUY F. ATKINSON: Sale of Assets of Guy F. Atkinson Holdings
HOMEPLACE STORES: Assumption of GE Lighting Agreements

L.A. GEAR: Extension of Bar Date
LEVITZ FURNITURE: Debtors to Sell Long-Term Lease
MONTGOMERY WARD: Employees Can Not Be Sued
NETS INC: Agreement of Manzi Settlement and Release
NORTHWEST AIRLINES: Motorcycles Drive-By Execs. Homes

NORTHWEST AIRLINES: Executives Cash Stock
PARAGON TRADE: Adds to Application to Hire Price Waterhouse
PHOENIX INFORMATION: Equity Objects to Settlements
WHEELING-PITTSBURGH: A Likely sale Candidate
VENTURE STORES: Deadline for Filing Proofs of Claim  

Meetings, Conferences and Seminars

AR ACCESSORIES: Auction Set for May 6
A judge authorized AR Accessories Group Inc. to borrow as
much as $1.15 million to fund day-to-day operations until
the business can be auctioned May 6 in bankruptcy court.

The loan authorized by U.S. Bankruptcy Judge James E.
Shapiro is in addition to $1.46 million approved earlier.
The money will be used to meet the month-end payroll an
estimated $400,000 and other operating costs.
AR Accessories Group, of Brown Deer, filed March 13 for
reorganization under Chapter 11 of the federal bankruptcy
code, listing debts of $69.96 million and assets of $61.75
million. Earlier, the company had recently shut  
down manufacturing operations in West Bend.

Shapiro had denied AR's motion to pay stay-put bonuses of
$132,496 to top company officials, including Chief
Financial Officer John Pendergast and Paul Christensen,
vice president of human resources and administration.
(Milwaukee Sentinel Journal - 04/23/98)

BOSTON CHICKEN: 3 Top Officers Resign
As reported in The Wall street Journal on May 4, 1998, Saad
Nahir, co-chairman and CEO; Scott Beck, co-chairman and
president; and Mark Stephens, CFO and vice chairman, all
resigned.  Analysts said that the departure of the three
top executives may be a sign of even more problems for the
company, which posted a 1997 loss of $223.9 million.

J. Michael Jenkins was named chairman, president and CEO.  
he is credited with turning around El Chico Inc. and has
been president and CEO of Vicorp Inc. a chain operating
Bakers Square and Village Inn.

Boston Chicken's share price fell 82% in 1997 as the
company suffered from high food costs, tough competition,
declining per-store sales and low employee morale.  Boston
Chicken was sued in several shareholder lawsuits alleging
the company's accounting and disclosure practices are

CONSOLIDATED STAINLESS: Creditors Beg for Trustee
The Official Committee of Unsecured Creditors of
Consolidated Stainless, Inc. is seeking the immediate
appointment of a Chapter 11 Trustee in the case of
Consolidated Stainless, Inc.

The Committee believes that the debtor's management has
grossly mismanaged the debtor's affairs and placed their
personal desires and financial well-being ahead of the
interests of the debtor's creditors and estate.  Management
has been unable to arrest a continuing downward spiral of
diminishing sales and mounting losses.  "Post-petition
losses approached a whopping $3 million thorough March 31."

Secondly, and even more troubling according to the
Committee, a trustee is needed to protect the estate's
interests in light of glaring irregularities and
improprieties.  In particular, the Committee recently
learned of a disturbing set of facts which evidence that
Harvey Adams engaged in self-dealing, established competing
businesses, usurped corporate opportunities belonging to
the debtor, engaged in the unauthorized use of estate
assets for his personal benefit and gain, and breached his
fiduciary duties.

DABUCH REALTY: Case Summary & Largest Creditors
Debtor:  Dabuch Realty Corp.
         Attn. H. Sierra
         1190 Prospect Avenue
         Bronx, NY 10459

Type of business: Real Estate Ownership

Court: Southern District of New York

Case No.: 98-43111  Filed: 04/30/98    Chapter: 11

Debtor's Counsel: Larry Ivan Glick
                  Larry I. Glick, PC
                  1305 Franklin Avenue
                  Garden City, NY 11530
                  (516) 739-1111
                  FAX: (516) 739-0896

Total Assets:              $1,500,000
Total Liabilities:         $845,000
                                                   No. of
                                         Amount    Holders

No. of shares of common stock               200          1

Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Cobra Petroleum                 Fuel Supplier       $35,000
El Max Lumber                Material Supplier      $10,000

DOW CORNING: Compromise of Environmental-Related Claims
Dow Corning Corporation (DCC) filed a motion to approve the
compromise of environmental-related claims filed by The
Gates Corporation d/b/a The Gates Rubber Company, Crucible
Materials Corporation, Cooper Industries, Inc. and
Bridgestone/Firestone, Inc. (The Settling Parties)

DCC and the Settling Parties entered into a settlement
agreement that address their respective responsibilities
and liabilities regarding the remediation of a former
landfill site in Elizabethtown, Kentucky and any affected
offsite areas.

The Settling Parties will pay DCC $1,986,630 in cash, which
DCC will keep in an account for the exclusive use of paying
costs and expenses of remediating the site.

DCC will be responsible for implementing and paying for the
remediation of the site, the parties will release and
indemnify each other and the Settling Parties will withdraw
their proofs of claim from the Dow Corning bankruptcy case.

DOW CORNING: Tort Claimants Seek to Retain Kinsella
The Official Committee of Tort Claimants of Dow Corning
Corporation filed a supplement to its application to retain
Kinsella Communications, Ltd.

The Tort Committee seeks to expand the retention of
Kinsella to address notice and communication issues with
the claimants, to the proceedings involving the debtor's
most recent disclosure statement and for the debtor's
further amended disclosure statement and for matters
relating to any confirmation process.

GAYLORD CO: Cookstore Debtors Seek Exclusivity Extension
Gaylord Companies, Inc., The Cookstore, Inc., and The
Cookstore Worthington, Inc. seek to extend the periods in
which they may exclusively file and solicit acceptance of
their Chapter 11 plan(s) of reorganization for an
additional period of approximately 90 days.

The Cookstore Debtors claim that they are making good faith
progress towards reorganization.  They are engaged in
intensive negotiations with Cambridge and Fremont for the
infusion of capital to fund a reorganization.  Following
the completion of negotiations the debtors will be in the
position to prepare and file plans and disclosure
statements proposing treatment of most or all of the
creditors of these consolidated estates.  However the
debtors do not anticipate being in the position to file
plans and disclosure statements before the expiration of
the exclusivity period, which currently expires on may 12,

The Cookstore debtors request that the court extend the
exclusivity period for filing a plan through and including
August 14, 1998 and for solicitation of acceptances of the
plan through and including October 16, 1998.

GREATE BAY: Bank Objects to Exclusivity Extension
State Street Bank and Trust Company, as Trustee for the
holders of the 10 7/8% First Mortgage Notes Due 2004
objects to the motion of the debtors, Greate Bay Hotel &
Casino, Inc., GB Holdings, Inc., and GB Property Funding
Corp., seeking an extension of the exclusive periods within
which to file a plan of reorganization and to solicit
acceptances thereof.

The Trustee states that cause has not been shown by the
debtors, and that the motion is most descriptive of the
events which have distracted the debtors from their
reorganization objectives.  What the application has not
established is a consistent effort toward those objectives.  

The Trustee does not object to a reasonable extension of
exclusivity to accommodate energetic efforts to formulate a
plan, but the debtors should be more forthcoming about what
they intend and how they will proceed.  The Trustee
believes that the interests of creditors are better served
by a shorter extension.

GUY F. ATKINSON: Sale of Assets of Guy F. Atkinson Holdings
The debtor, Guy f. Atkinson Company of California, a
Delaware corporation; ATKN Company, formerly known as Guy
F. Atkinson Company, a Nevada corporation; and ATKN
Holdings, Ltd., formerly known as Guy F. Atkinson Holdings,
Ltd., a Canadian federal corporation, is seeking
authorization to sell the assets of ATKN Holdings, Ltd. to
TIC Holdings, Inc.

TIC's offer is subject to higher and better offers.  The
purchase price is US $1 million.  In addition, TIC will
extend offers of employment to a majority of Holding's
employees which will substantially reduce Holding's
severance and other employee benefit obligations.

The debtors state that the TIC offer is in the best
interests of the debtors and that Holdings has no ability
to confirm a stand-alone plan and was not included in the
Clark Transaction.  Holdings is subject to substantial time
pressure since it has two pending projects, one of which,
Stora is virtually complete, and the other, Western Pulp,
is a construction management contract.

HOMEPLACE STORES: Assumption of GE Lighting Agreements
HomePlace Stores, Inc., and its three corporate affiliates,
as debtors, seek entry of an order authorizing the
HomePlace Group's assumption of certain agreements with
General Electric Company -- GE Lighting.

GE Lighting is a supplier of goods to the HomePlace Group.  
Pursuant to agreements, GE Lighting delivers certain of its
products on a consignment basis to the HomePlace Group for
sale in the HomePlace Group's stores, and the HomePlace
Group remits to GE Lighting that portion of the proceeds of
the sale of the consigned products equal to the acquisition
price of such products.  GE Lighting retains title to the
consigned products.

The debtor determined, based on its sound business
judgment, that the assumption of the agreements is in its
best interests and the best interests of its creditors and
estates. Thus the HomePlace Group seeks authorization to
assume the agreements as modified in the stipulation.

L.A. GEAR: Extension of Bar Date
Judge Barry Russell entered an order extending the Bar Date
for creditors in the case of L.A. Gear from April 30, 1998
to May 15, 1998, and the Bar Date for co-debtors, sureties,
and guarantors is extended from May 15, 1998 to June 1,

LEVITZ FURNITURE: Debtors to Sell Long-Term Lease
Levitz Furniture Incorporated, et al., seeks authorization
to sell certain long-term leasehold interests in Fort
Lauderdale, Florida and to assume and assign certain
related leases to Ansel Properties, Inc.

The court authorized the sale of the Fort Lauderdale
Property to BOSC on October 21, 1997.  The sale did not
close because BOSC determined that the property was not
suitable for BOSC's intended use.  The current agreement
provides for the sale of the Fort Lauderdale Property and
the assumption and assignment of the leases to Ansel for

MONTGOMERY WARD: Employees Can Not Be Sued
Montgomery Ward Holding Corp. employees don't have to  
worry about being sued over things that happen on the job
as long as the company is reorganizing, a judge ruled

U.S. Bankruptcy Judge Peter Walsh agreed to bar lawsuits
against Montgomery Ward employees over work-related traffic
accidents and falls, among other things, from going forward
while the struggling retailer tries to right itself in
bankruptcy court.

Ward's executives said there's no such protection for its
employees from being sued individually for incidents
occurring in its stores or on furniture deliveries.
Spencer Heine, Ward's executive vice president and general
counsel, said there are 17 such cases now being pursued
against the company's employees.  Walsh agreed to halt the
progress of suits against Ward's employees and hold another
hearing on the issue in the summer.(Chicago Sun Times -

NETS INC: Agreement of Manzi Settlement and Release
The Official Unsecured Creditors' Committee of Nets, Inc.
filed a motion for an order approving an agreement of
settlement and release.  The basic terms of the settlement
provide that Mr. Manzi shall be deemed to hold an Allowed
Class One Claim in the amount of $1,593,301 and an Allowed
Chapter 11 Administrative Expense Claim in the amount of

NORTHWEST AIRLINES: Motorcycles Drive-By Execs. Homes
About 50 motorcyclists roared past the homes of three top
Northwest Airlines executives Saturday morning to
demonstrate employee frustration over pay inequities and
unsettled contract negotiations.

"We're not a gang out to get them," said Steve Marks, a
member of the machinists union that represents 25,000
Northwest mechanics and other ground workers. "We weren't
there to raise hell, just to send a message that we're
upset with the way management is handling the company and
contract talks.  It was simply a show of solidarity," Marks

The cruise, dubbed as the "Bridging the Gap Tour," was not
a union function but included representatives of all six
labor groups currently in line for pay raises at Northwest,
Marks said. Contract talks for the three largest unions
began in the fall of 1996, and the machinists union - after
becoming the first to reach the final phase of negotiations
- has been unable to reach an agreement with Northwest on
pay and pension issues.

The standoff has triggered an unofficial work slowdown that
has disrupted the company's hangar and airport operations,
causing an unusually high number of flight cancellations
and delays. In the Twin Cities, Northwest has retaliated
with the firing, suspension or layoff of union mechanics.

Keith Foster, president of the machinists union at
Northwest, said he doesn't know when the union's contract
talks will resume. The negotiations have been in recess
since April 9 at the direction of a federal mediator. Late
last week, Foster was anticipating mediated talks to begin
Monday. As of Saturday, however, no new negotiations had
been scheduled.  "I would anticipate that we will meet
sometime within the coming week, at least with the
company," if not the mediator, too, he said. (Star Tribune
Twin Cities - 04/26/98)

NORTHWEST AIRLINES: Executives Cash Stock
At a time when Northwest Airlines' extensive union labor
force is outraged by unsettled contract talks with pay as a
central issue, five top executives at the airline have
decided to personally sell $20 million of Northwest stock.
"Obviously they are basking in the success we helped
create, and we should  share in it," said Paul Omodt, a
spokesman for the Northwest Air Line Pilots Association.

"The executives are feeding at the stock trough again,"
said Vince Bazzachini, president of Bloomington-based Local
1833 of the machinists' union. "They seem to have the
philosophy that if you feed the horses enough oats, the
sparrows will never starve. The 10,000 sparrows of this
local won't eat reprocessed oats."

The airline's highest-paid executives got 1997 pay package
increases ranging from 11 to 19 percent.  Meanwhile, the
company reportedly has offered its ground workers a four-
year wage package consisting of an immediate, non-
retroactive 2 percent raise and a non-recurring 2 percent
bonus in the third year.

"We don't question the executives' right to sell their
stock," said Danny Campbell, secretary-treasurer of
Teamsters Local 2000, the union representing Northwest
flight attendants. "It's just another blatant display of
the disparity in pay from those who are running the company
and those who saved it from bankruptcy."

The tension, which includes an unofficial boycott against
voluntary overtime assignments among mechanics and
equipment service operators, has aroused the interest of
safety inspectors from the Federal Aviation Administration
(FAA).  "There is certainly heightened awareness on the
part of everyone that surveils Northwest," FAA spokesman
Don Zochert said Tuesday. "But there's no evidence of any
safety-related issues."

At Northwest, 10 insiders sold at least $26 million in
stock from Jan. 27 to March 17, Gabelle said. Leading the
way among sellers was President and Chief Executive John
Dasburg, who sold 220,000 shares for at least $12.9  
million from Feb. 13 to 17.  Last week, Dasburg notified
the Securities and Exchange Commission (SEC) that he
intends to sell 102,000 additional shares. At Tuesday's
closing price of $52.87 1/2, Dasburg would gross $5.4
million. His net gain would be something less, depending on
taxes and his cost of buying the stock.

According to the SEC, Northwest Executive Vice President-
Marketing & International Michael Levine intends to sell
193,813 shares, which would be worth $10.2 million. Earlier
this year he sold 50,000 shares for at least $3.16 million.
The other senior officers poised to cash in are Senior Vice
President- Finance & Treasurer Joseph Francht Jr. (42,000
shares), Senior Vice President- Administration Chris
Clouser (30,000 shares) and Executive Vice President and  
Chairman-Northwest Cargo Donald Washburn (10,000 shares).

Northwest posted record profits in 1997, and its stock
price is 60 percent higher than its second-quarter 1997 low
of $33.12 1/2 per share. (Star Tribune Twin Cities -

PARAGON TRADE: Adds to Application to Hire Price Waterhouse
The Official Committee of Unsecured Creditors of Paragon
Trade Brands, Inc. submits a supplement to its initial
application to retain Price Waterhouse LLP as financial
advisor to the Committee.

The Committee argues that the entry of the order granting
approval of Price Waterhouse's retention should be nunc pro
tunc to March 16, 1998.  The Committee also states that
supplemental affidavits are attached to the motion
enhancing the original statements regarding no conflicts of
interest, and that Price Waterhouse recently searched its
50 largest creditors for potential conflicts, expanding
that search from its 20 largest creditors, and volunteers
further explanation regarding any conflicting employment.

PHOENIX INFORMATION: Equity Objects to Settlements
The Official Committee of Equity Security Holders objects
to the motion of Phoenix Information Systems Corp. for an
order approving the settlement with Delbert F. Bloss, Jr.
and Peter J. Ford.

Bloss and Ford were employees of the debtors.  Bloss served
as CEO for approximately one year and Ford also served for
approximately one year as Vice President and CFO.

The debtor seeks proposed settlements in the amount of
$375,000 for Bloss and $133,635 for Ford, 20% of which
would be paid upon court approval.  The Committee argues
that the settlements are not fair, that bonuses to
employees for work already performed are not reasonable or
in the best interest of the estate. Clearly, the Committee
states, the proposed settlements in excess of the Bloss and
Ford claims are not fair, reasonable or even logical.

WHEELING-PITTSBURGH: A Likely sale Candidate
Wheeling-Pittsburgh Steel is likely to be sold off in the
future by its parent WHX Corp., which would then
concentrate on acquiring companies more in line with its
most recent acquisition, Handy & Harman Inc., according to  

"It could be a bonus for the debt-holders if the company
attracts the right buyer," said one analyst last week. "It
would also be a good sale for the holding company's 10.5%
bonds."  WHX Corp. has only one outstanding issue: $350
million in 10.5% bonds priced a few weeks ago, while
Wheeling-Pittsburgh, an operating subsidiary, has
$275 million in 9.25% bonds outstanding. Should a change of
control occur through a sale of Wheeling- Pittsburgh, the
bonds would be puttable at 101. They currently trade just
below par.

One reason WHX might want to sell off the company relates
to its chief executive, Ronald Lebow, who brought the
company from near-bankruptcy to productive levels once
again. In addition, a 10-month labor strike was recently
settled.  Wheeling-Pittsburgh also reportedly had an
underfunded pension plan that was brought back into line
through the purchase of Handy & Harman.

"That clears up some balance sheet issues for them," said  
George Lynch at SBC Warburg Dillon Read. "By the end of
June, they should be back to June pre-strike production
levels." (High Yield Report; 05/04/98)

VENTURE STORES: Deadline for Filing Proofs of Claim  
On May 4, 1998, Venture Stores, Inc. published a notice of
deadline for filing proofs of claim. On April 15, 1998 the
court entered an order establishing May 29, 1998 as the
last date and time for filing proofs of claim against the

Meetings, Conferences and Seminars
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.  


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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Princeton, NJ, and Beard Group, Inc., Washington, DC.  
Debra Brennan and Lexy Mueller, Editors.   
Copyright 1998.  All rights reserved.  This material
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