TCR_Public/980522.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 22, 1998, Vol. 2, No. 102                  

2CONNECT EXPRESS: Significant Developments in Case
ABL: Women's Basketball Seeks $30 Million Investment
AL TECH: Committee to Retain Special Environmental Counsel
ALLIANCE ENTERTAINMENT: Files Disclosure Statement and Plan
BIGGER.NET: Is Bigger.Net Better?

BUILDERS TRANSPORT: Files For Reorganization
CAMBEX CORP: Notification of Late Filing
CONSOLIDATED STAINLESS: Seeks Time to Assume/Reject Leases
DONG AH GROUP: One of First Big Rescue Packages

JAY JACOBS: Starts Its Own Credit Card
KTN: Placed Under Receivership
LOT$OFF: Able to Reduce Debt on Judge's Ruling
MONTGOMERY WARD: Trims Loss in First Quarter

NISSAN: Broken-down Nissan Seeks Foreign Partner                    
PAN AM: To Retain Banmiller as Consultant
SCHWEITZER MOUNTAIN: Developer Files for Bankruptcy
SEARCH FINANCIAL: Court Approves Andrews & Kurth
SEARCH FINANCIAL: US Trustee Seeks To Keep Equity Committee

STEINBERG'S: Notice of Extended Bar Date
WESTERN FIDELITY: Debtor Terminates Counsel's Employment
DLS CAPITAL PARTNERS: Bond Pricing for Week of May 18, 1998


2CONNECT EXPRESS: Significant Developments in Case
2CONNECT EXPRESS, INC. filed a Form 8-K with the SEC.

A full-text copy of the filing is available via the
Internet at:[filename].txt

The company listed significant developments occurring
between April 5, 1998 and May 2, 1998.
1. The Company closed three additional stores, leaving one
remaining store open as of May 2, 1998.
2. Held two court approved auctions liquidating all
remaining inventory of the Company with the exception of
inventory in the one open store.
3. Moved the Corporate Headquarters office to the following
address reducing monthly rent expense by approximately
                2Connect Express, Inc.
                3500 Gateway Drive, Suite 101
                Pompano Beach, FL  33069
4.On April 14, 1998, the Company filed a Plan of
Reorganization and Disclosure Statement with the Bankruptcy
5.Reduced workforce to skeleton levels.
6.Continued negotiations for the sale of remaining assets,
merger agreement with Bobby Allison Cellular Systems of
Florida, Inc. ("BAC"), and a Management Agreement with BAC
whereby that Company would assume management of the
2Connect Coral Square Mall Store and all expenses related

ABL: Women's Basketball Seeks $30 Million Investment
The American Basketball League has engaged Salomon Smith
Barney Holdings Inc. to help find an investor willing to
risk $30 million for a noncontrolling interest in the
women's basketball league, according to sources close to
the league.  ABL CEO and co-founder Gary Cavalli
acknowledged hiring the investment-banking firm but
wouldn't say how much the league hopes to raise.

Cavalli did, however, say any money raised would be spent
on marketing the league and securing a television deal. "If
there's one thing we learned this year, it's how important
TV is to these players," Cavalli said. Most of this  
year's top draft-eligible prospects shunned the ABL in
favor of the rival Women's National Basketball Association.

The WNBA, in contrast, had its games broadcast games on NBC
and ESPN.  Two and one-half hours of air time on a major
cable network would cost $100,000 to $350,000, depending on
the network and the time. The ABL would pick  up the
$30,000 to $60,000 in production costs for each game as
well. "They would never get their money back," said one
cable television executive.

Should the ABL file for bankruptcy protection down the
road, the bondholder would be toward the front of the line
of creditors.  "The concern I had is that there are two
competing leagues," said David Moross, managing partner of
the IMG Chase Sports Capital leveraged-buyout fund,
which was approached to invest in the ABL. That does raise
some very interesting issues, especially when one of those
leagues is run by the NBA," he said. "The NBA is a very
powerful institution."  Moross also said he was put off by
the lack of control the investment would bring. (Business
First Columbus-05/15/98)

AL TECH: Committee to Retain Special Environmental Counsel
The Official Committee of Unsecured Creditors of Al Tech
Specialty Steel Corporation seeks entry of an order to
retain Thelen, Marrin, Johnson & Bridges as special
environmental counsel to the Committee.

The firm would handle the Al Tech claim in the
Sunbeam/Allegheny International bankruptcy, and further,
the New York Department of Environmental Compliance filed
an administrative claim in the Al Tech case in the sum of

The firm charges on an hourly basis, at rates in the range
of up to $375 per hour for partners and $120 to $250 per
hour for associates.

ALLIANCE ENTERTAINMENT: Files Disclosure Statement and Plan
Less than a year after filing Chapter 11, Alliance
Entertainment Corp. announced that it has filed its
Disclosure Statement and Plan of Reorganization with the
Bankruptcy Court in the Southern District of New York.  
Following a hearing expected to occur in late June on the
adequacy of the Disclosure Statement, Alliance will  
commence the solicitation of votes for approval of
its Plan of Reorganization.

"The Company has worked very hard over the last 10 months
to bring this process to a timely and successful
conclusion.  We have made the hard decisions
and taken the necessary steps  to consolidate our
operations and return the Company to profitability.  We
have met the operating goals set forth in our  
long-range business plan and expect to continue to do so.  
We have positioned the Company to take advantage of the
current rebound in the conventional retail music market,
and the growth of new emerging channels of distribution,
most significantly the Internet. We are confident that with
creditor approval and confirmation of the plan, we will
emerge from Chapter 11 by the end of the summer a smaller,
but considerably stronger operation with a bright, new  
future," said Eric Weisman, Alliance's president and chief
executive officer.

The newly reorganized Alliance Entertainment will become a
private corporation, with nearly all equity in the Company
to be held by a syndicate of banks led by The Chase
Manhattan Bank, as agent.  Under the terms of the Plan,
the Company's existing common stock will be canceled and
shareholders in the Old Alliance Entertainment will receive
no distribution, either in cash or common stock in the new

Alliance Entertainment Corp. is the largest wholesaler of
prerecorded music and related products.  Alliance
Entertainment Corp. and certain of its subsidiaries
voluntarily filed to reorganize under Chapter 11 on July
14, 1997.   The Company currently employs approximately 800
people in the United States and Canada and maintains
headquarters in Coral Springs, Fla.

BIGGER.NET: Is Bigger.Net Better?
Internet service provider (the company writes
its name as fell into bankruptcy last year
after offering the cheapest Web service yet. But it's now
pitching for new subscribers.  Starting May 21, the company
will sell its service in Southern California.  It hopes to
begin marketing on the East Coast later this year. received much publicity in late '96 when it
became the first ISP to offer unlimited Web service for
only a one-time fee of $59.95.  But in December, the
company filed for protection under Chapter 11
reorganization of the U.S. Bankruptcy Code. The company
listed more than $1 million in debts. It has kept operating
with its limited number of subscribers, all near its home
base of San Jose, Calif.'s resumed sales come thanks to some private
investors, whom the company won't identify. But they also
come thanks to new partners Cisco Systems Inc. and Canada's
Global Telecommunication Solutions Inc. They're providing
hardware and phone-line connections for the expansion.'s strategy is the same. It will offer the
lowest-priced ISP service. It will make money by selling
ads on its Web site and by selling data on its users'
surfing habits.  At least one other company is trying the
same business model. Smart World Technologies in Danbury,
Conn., offers free Internet service for a one-time fee of
$199.95. Its FreeWeb service also is supported by
advertising.  (Investors Business Daily - 05/21/98)

BUILDERS TRANSPORT: Files For Reorganization
Builders Transport Inc. announced it has filed a voluntary
petition for reorganization under Chapter 11 of the U.S.
Bankruptcy Code.  The petition was filed in the U.S.
Bankruptcy Court for the Northern District of Georgia, in

Under Chapter 11, the company will operate under **court**
protection from creditors while developing a plan of
reorganization.  The company, which has  been experiencing
a period of financial difficulty, chose this course of
action  as the best means of returning the company to
profitability. Concurrent with  the filing, Builders
Transport said it has an agreement in principal with
its  existing lender, CIT Group/Business Credit, Inc., for
use of cash collateral to  fund ongoing operations.

Based in Camden, S.C., Builders Transport is a truckload
carrier that transports a wide range of commodities in both
intrastate and interstate commerce.  The company provides
dedicated contract carriage, dry van and flatbed service
for shippers of a variety of products in medium, short-haul
and regional markets.  The company's stock is traded over
the counter under symbol TRUK.

CAMBEX CORP: Notification of Late Filing
Cambex Corporation notified the SEC of a late filing of its
quarterly report, Form 10-Q for the period ended April 4,
1998. The company stated that The Form 10-Q for the period
ended April 4, 1998 cannot be filed within the prescribed
time period because additional time is required to complete
the annual audit and Form 10-K.

Revenues are anticipated to be down approximately 70% from
the period ended March 29, 1997. Although revenues are
expected to be lower than the previous period, the net loss
is not expected to be significantly different than in the
period ended March 29, 1997 due to lower operating costs.

Columbia/HCA Healthcare Corp. on Tuesday announced plans  
to sell 22 hospitals in Tennessee, North Carolina, Kentucky
and Alabama to a nonprofit consortium for $1.2 billion as
part of efforts to get smaller and concentrate on improving
patient care.

David Cyganowski and Fred Hessler of the Health Care
Finance Group at Salomon Smith Barney called the
transaction the largest purchase ever of hospitals by not-
for-profit health care organizations. Salomon Smith Barney  
helped broker the deal.

The sale involves 22 hospitals, one ambulatory surgery
center and office buildings for all 23 facilities. All are
part of Columbia's 45-hospital Atlantic Group.

The buyers are Alliant Health Care System of Louisville,
Ky.; Baptist Health  of Montgomery, Ala.; Duke University
Health System of Durham, N.C.; New Hanover  Regional
Medical Center of Wilmington, N.C.; Novant Health of
Winston-Salem,  N.C.; and Pitt County Memorial Hospital of
Greenville, N.C.; Eliza Coffee  Memorial Hospital of
Florence, Ala.; and Johnson City Medical Center
Hospital  of Johnson City, Tenn.

CONSOLIDATED STAINLESS: Seeks Time to Assume/Reject Leases
Consolidated Stainless, Inc., debtor, seeks an order
granting it a further extension of time to and including
October 11, 1998 to assume or reject unexpired leases of
nonresidential real property.

The debtor seeks the extension because the debtor has been
consumed with operating its business in a chapter 11
environment and has devoted significant time to stabilizing
and improving its business operations.  I t has spent
considerable time in assisting its investment bankers in
the marketing of its manufacturing facilities.  The debtor
was also busy completing a preliminary business plan which
is premised upon the continuation of its distribution
business subsequent to the disposition of its manufacturing
operations.  The debtor has also spent time responding to
motions for appointment of a trustee.  The debtor believes
that most of the remaining leases will be assumed, but the
debtor has not had sufficient time to complete an analysis
of its remaining leases.

DONG AH GROUP: One of First Big Rescue Packages
A bailout of the Dong Ah group, South Korea's 10th largest
conglomerate, was necessary to prevent a collapse of the
country's financial system, the chairman of the Financial  
Supervisory Commission said on Thursday.

"The impact of Dong Ah group's fallout would be 10 trillion
to 15 trillion won ($6.9 billion to $10.3 billion)," Lee
Hun-jai, commission chairman, told foreign correspondents.
The group's core company, Dong Ah Construction Industrial
Ltd, has hundreds  of subcontractors and owes money to 53
financial institutions.

"If you take the worst case, (Dong Ah's collapse) may cause
the total collapse of the financial system," Lee said.
The group's creditors on Thursday agreed to give Dong Ah
600 billion won in emergency loans with one-year maturity
and to roll over existing loans  The two sides were still
haggling over the interest rate on some of those loans,
said Shin Bok-young, president of Seoulbank, Dong Ah's
single-biggest creditor.

Dong Ah chairman Choi Won-suk was required to relinquish
all management control of the company and the group has to
sell off its non-core units as part of the conditions for
the bailout.

"Dong Ah is not saved as a group. It will be broken up
totally," Lee said.  "It's not the same as bankruptcy, but
it comes close. We have to weigh the social costs of a
bankruptcy" against keeping the company going, he added.
"Bankruptcy is not the only way to break up a chaebol
(conglomerate)," he said.  Under Thursday's debt
rescheduling plan, creditors also agreed to convert  
some of their loans into equity.  

Creditors are seeking key concessions from the government
as part of the deal, Seoulbank's Shin said.  They are
asking state-owned Korea Land Management Corp to buy 134.9
billion won worth of unsold real estate on the company's
books.  They are also proposing the government buy some 12
million square metres (130 million square feet) of
reclaimed land from the sea in the northern port of Inchon,
the proceeds of which would be used to retire debt.

Dong Ah Construction, whose overseas projects include a
$6.18-billion irrigation project in Libya and the
mothballed Bakun hydroelectric plant in Malaysia, has
estimated debts of $3.7 billion.   A slumping economy has
left Dong Ah with a huge inventory of unsold residential
and commercial units.
The deal is one of the first big rescue packages for one of
South Korea's highly-leveraged conglomerates since Seoul
was forced to turn to the International Monetary Fund for a
58.35 billion bailout. (Reuters; 05/21/98)                              

In May 1998, the Company purchased 44% ownership in Galaxie
TV Networks in the Czech Republic. Galaxie has a regional
terrestrial license broadcasting to 200,000 television
households and a national satellite-to-cable

The Company's revenues are derived primarily from the sale
of television advertising to international, national and
local advertisers. The Company's direct customers are
generally fewer than a dozen international advertising
agencies that arrange the broadcast of commercials for
their clients.

The primary expenses incurred in operating a broadcasting
station are programming costs (buying, producing and
editing), employee salaries, broadcast
transmission expenses and selling, general and
administrative expenses.

The Company is currently operating with expenses (excluding
non-cash items such as: depreciation, barter expense,
amortization of intangibles and foreign exchange gains or
losses) of approximately $600,000 per month and anticipates
this approximate level of expenses to continue for at least
the next six months.  Revenues from the two Company
stations are currently averaging $200,000 to
$300,000 per month.

Since MSAT was relaunched in April 1996, revenues grew
rapidly. Revenues of nine million forints in May 1996 have
risen to 39 million forints in November 1996 and to 72
million forints ($360,000) in October 1997. Two new private
stations entered the market in October 1997, increasing
competition for both audience and advertising.

The Company's revenues increased by $135,263 or 24% to
$708,778 in the quarter ended March 31, 1998 from $573,515
in the quarter ended March 31, 1997. The increase is
primarily attributable to the operation of two stations
versus one station in the prior year. Revenues in the first
quarter of 1998 were reduced by the increased competition
in the Hungarian market due to the Fall 1997 launch of two
new national stations into this market and the resulting
increase in competition.

JAY JACOBS: Starts Its Own Credit Card
Credit card offers are a dime a dozen, but Jay Jacobs Inc.
is introducing its own plastic to a market of credit-hungry
shoppers.  The Seattle-based clothing retailer will offer
the Jay Jacobs charge card across the country as part of
its revamped marketing strategy targeting college
graduates. The May 20 launch of the private label card
marks the first time Jay Jacobs has had marketing dollars
to spend since the retailer emerged from Chapter 11
bankruptcy protection in 1995.

Targeting 18-to-25-year-olds looking for a new job and a
new wardrobe, Jay Jacobs figures these are consumers with
little or no established credit. A Jay Jacobs charge plate
is a way for them to build a credit line, and of course, a  
means to buy that interview suit.

Such green borrowers raise the specter of payment
delinquency, something Jay  Jacobs can't afford considering
the state of the company's own finances. Jay Jacobs posted
a loss in 1997 of $1.3 million. But the chain isn't
assuming any of the risk. Instead, the company recruited
private-label card specialist, SPS Payment Systems, to
handle the program. As such, SPS receives the benefit from
the interest charges, and carries the risk from bad

The initial annual percentage rate will be 21 percent to 22
percent, steep but standard for department store cards.
Lawrence said consumers don't focus much on the percentage
rate, but rather on the minimum payment - the smaller the
better. The company's new card will have a $20 minimum, or
1/24 of the total balance. (Puget Sound Business Journal -

KTN: Placed Under Receivership
Kenya's ostensibly first private and commercial television
broadcasting station  is set to close shop.   Last week,
KTN itself was the first to break the news that the station
had been placed under receivership. Assurance was given by
the receiver/manager, Andrew Gregory of KMPMG Peat Marwick
that it was in the interest of the owners to safeguard
KTN's core broadcasting business. He also let be known that
a  "majority" of staff would retain their jobs.

That was Tuesday but by Wednesday, 21 workers had already
been declared redundant and others "deployed to a sister
station". The truth is KTN staff have been sold off to The
East African Standard.   KTN was not so much put on the
market for sale, but changed hands in a boardroom, between
a group of political and business bedfellows. If the change  
were to literary mean "sold", the exchange did not meet
such criteria.

Briefly, a contestant to ownership, Jared Kangwana, had
taken co- directors to court for either re-acquisition of
the station or payment in lieu of investment lost. Somehow,
a deal was made outside court for Transnational Bank to
acquire KTN and buy out Kangwana. This was done with such
speed that no sooner had Transnational acquired KTN  
than it was "sold" to The East African Standard Ltd, last
December. Kangwana understandably, is back in court
claiming that Transnational Bank has not made good on due
payments to him.

The issue here is not whether the multiple transfers of KTN
in such a spectacular short time was a plot to cover up
some past misdeeds, though this has a telling effect, if it
is true, on the transparency of those involved.  It has
been variously claimed that KTN owes the government Sh1.2
billion in rent arrears for use of Nyayo House. The owners
have denied this only saying effort is being made to
"regularise" any money owed. So far, KTN is not saying  
how much is in the arrears, when and how it will be paid.
We may also not know  how many other creditors are stalking
KTN. But we know KTN owes The Kenya Revenue Authority (KRA)
Sh138 million. The Economic Review's account was frozen
for less.

There are many other questions that the declaration of
insolvency does not answer. This has resulted in heated
speculation that there is intention to  sweep away some
irritating dirt. Further, it may now be clear why attempts
to buy KTN by other entrepreneurs were nipped in the bud.
Initially, it was assumed that KTN would not be sold to
anti- establishment firms for political reasons. But the
way things are being fixed, it seems some legal loopholes
are being exploited in an attempt to hide embarrassing
revelations. By playing blind, the government may be
accused of being part of the conspiracy and manipulation.

Still, the possible closure of KTN will be a big blow for
the media industry and its liberalisation process. KTN was
the first commercial broadcaster in independent Kenya.
Though under establishment control, it sometimes showed  
glitter and pointed to just how free media can be of use to
an information- hungry populace. It allowed talents to
emerge and shine. It took on KBC and made the latter to
think about the audience.

The media scene is just beginning to thaw and the demise of
KTN will send a wrong signal to entrepreneurs and thousands
who have staked a career on journalism. The best is to tell
us the truth about KTN's insolvency and let it survive.
(Africa News Service - 05/11/98)

LOT$OFF: Able to Reduce Debt on Judge's Ruling
San Antonio-based LotsOff Corp. said Monday it will not
have to pay an estimated $5.9 million worth of late claims
-  money creditors are seeking in the company's Chapter 11
bankruptcy reorganization - because federal bankruptcy
judge Leif Clark has denied such claims.

Company president Charles "Hop" Fuhrmann said the judge's
ruling is important because it reduced the amount of claims
the company must pay with cash or stock.

MONTGOMERY WARD: Trims Loss in First Quarter
Montgomery Ward reported a first-quarter loss of
$110 million, compared with $144 million in the year-ago
period. Overall revenue dropped 25 percent to $991 million,
as the chain recorded a 31 percent drop in merchandise
sales and a 4 percent increase in revenue at the Signature
Group, its direct-marketing subsidiary. Sales in stores
open at least a year fell 6  percent.

NISSAN: Broken-down Nissan Seeks Foreign Partner                    
NISSAN, Japan's second-largest vehicle maker, grabbed the
headlines last week with its plan to sell a stake in its
truck offshoot to Daimler-Benz. But it may be ready to go
further: Tokyo is alive with stories that the company may
link its core cars operation with a foreign partner.

Last week, Nissan's president Yoshikazu Hanawa hinted that
his company was negotiating with Daimler-Benz in more areas
than trucks, and that it was in touch with other foreign
car firms.  "We're holding talks with other car makers,
too. It's just that the Daimler- Benz talks became public,"
Hanawa told reporters.

A Nissan spokesman refused to elaborate on Hanawa's
remarks. He said the company's plans for dealing with its
financial problems would be revealed on May 27, when it
reports its 1997 results. Analysts estimate it has a debt  
burden of about Pounds 11 billion.

But Hanawa's comments set off speculation in the Japanese
media about who might become a partner for Nissan.
Volkswagen and Ford were top of the list. Hanawa hinted
that an announcement will be made before the company's
annual meeting at the end of June. British interest will
centre on the implications for Nissan's factory near
Sunderland, the first of the Japanese car "transplants" in
Britain and now the most efficient car plant in west

Nissan is Japan's second-largest car manufacturer after
Toyota and the fifth largest in the world. But although
Nissan is Japan's largest car exporter it has been losing
market share to its rival Toyota for more than 30 years.
"I don't think there's anything appreciably wrong with
Nissan's distribution system," says Fuyuki Fujiwara, motor-
industry analyst at Salomon Smith Barney in Tokyo. "But the
company was slow in picking up on the boom in recreational  
vehicles. Also, Nissan has a brand image problem in the
United States, where its vehicles sell for about $1,000
less than Toyota's."

The Nissan empire is crumbling. Four straight years of
losses have piled up the company's debt to crushing levels.
Nissan was just beginning to turn things around last year,
announcing its first profit in five years, when Japan was
hit by a slump in consumer spending and car sales
took a nosedive  Last month the company estimated a group net
profit of just Y16 billion  (Pounds 73m) for the fiscal
year 1997, down nearly 80% from the previous year.  
The decline was partly blamed on a fall in Japan's stock
market, which resulted in a loss on marketable securities
of about Y50 billion (Pounds 230m). Fujiwara  estimates
that the company's debt now amounts to 1.88 times the value
of its  equity.

"Its ability to pay that off is in question," says
Fujiwara. "The other problem is that Nissan's banking links
are with some of the weakest banks in Japan. They are
members of the Fuyou group, Fuji Bank and IBJ (the
Industrial Bank of Japan). In the past Nissan's debt has
not been priced at a premium. I think that will change,
because the debt market has to get more efficient."
In other words, Nissan's debt is not only growing but the
cost of servicing it will increase.

"Nissan doesn't look as though it's getting more
competitive but there's no imminent bankruptcy," says
Fujiwara. "I don't think that's a reasonable possibility.
If the time came to make a move, I think the government
would step in." (Sunday Times London - 05/17/98)

PAN AM: To Retain Banmiller as Consultant
David Banmiller was the President of the substantively
consolidated debtors, Pan American Airways Corp, since
November 22, 1997. he tendered his resignation on April
21, 1998. Banmiller has offered to act as a consultant to
Pan Am and the company believes that it is in the debtors'
best interest to use Banmiller as a consultant for up to
three months.  The total cost of the debtors is not
expected to exceed $5,000 per month.

SCHWEITZER MOUNTAIN: Developer Files for Bankruptcy
A prominent Honolulu developer who had planned to bankroll
a takeover of the bankrupt Schweitzer Mountain Resort is
himself bankrupt.  Bruce Stark pledged to help Bobbie
Huguenin and her mother, Jean Brown, regain control of the
once family-owned ski resort.  The resort, about $28
million in debt, is being run by a court-appointed
trustee. Brown and Huguenin filed for bankruptcy last year
to stop Schweitzer from being sold.

The mother-daughter duo submitted a plan to the court
saying they could pay creditors and operate the resort.
They were getting help and about $30 million from Stark.

But this week, nearly all those owed money by Schweitzer
formally objected to Brown's and Huguenin's plan. Those
opposing it include Huguenin's three sisters, U.S. Bank,
Bonner County and a committee of creditors.  U.S. Bank is
owed about $21 million and the county has outstanding bills
of about $2 million for taxes and road construction to the
resort.  The other Brown family members said they never
were consulted about filing for bankruptcy and are not
authorizing Huguenin and Brown to give away ownership in
the resort.

Next week a judge will review plans to keep operating the
resort. A Seattle firm, Harbor Properties, has made a bid
to buy the ski resort for $18 million.  The offer initially
was accepted, but Brown and Huguenin pulled out of the  
deal, claiming the mountain was worth $66 million.
(Idaho Statesman - 05/09/98)

SEARCH FINANCIAL: Court Approves Andrews & Kurth
The court entered an order in the case of Search Financial
Services Acceptance Corp., MS Financial, Inc., Search
Funding Corp., and Search Financial Services, Inc.,
approving the employment of Andrews & Kurth LLP as its
bankruptcy counsel on a final basis.

SEARCH FINANCIAL: US Trustee Seeks To Keep Equity Committee
In the case of Search Financial Services Acceptance Corp.,
and its affiliated companies, the US Trustee filed a motion
to show cause why the Committee of Equity Security Holders
Should Not Be Dissolved.

The US Trustee  believes that equity on a balance sheet
basis has essentially disappeared as a result of the MS
Financial transaction, but there is still the possibility
that value may be preserved for preferred stockholders
through, for example, profitable operation of the debtors'
remaining business.  

Accordingly the US Trustee is not disposed to unilaterally
dissolve the equity committee at this time.  If the members
of the equity committee believe that the value of their
future contribution to their constituency in this case can
realistically be expected to exceed the cost and expense of
maintaining the committee, they should be permitted the
opportunity to convince the court of that fact.  If the
expense of an equity committee results in a dollar for
dollar reduction in the return on unsecured creditor
claims, then the US Trustee states that maintenance of the
equity committee is no longer in the best interest of the
estate or its creditors.

STEINBERG'S: Notice of Extended Bar Date
On May 11, 1998, the court in the case of Steinberg's Inc.
set June 19, 1998 as the date by which all persons or
entities holding prepetition claims against the debtor's
estate , being any claims arising prior to September 23,
1997 must file proofs of claim.

WESTERN FIDELITY: Debtor Terminates Counsel's Employment
The Official Unsecured Creditors' Committee in the case of
Western Fidelity Funding, Inc. files an objection to the
Amended Disclosure Statement filed by the debtor on April
15, 1998.

According to the Committee, they were informed that the
employment of debtor's counsel, Katch, Sender & Wasserman,
was terminated and that substitute counsel would be engaged
by the debtor.  The Committee states that this turn of
events completely undermines any pending negotiations and
presumably, means that the debtor does not intend to
proceed with the amended plan and amended disclosure

The Committee points out that the debtor's plan is
unconfirmable on its face, in its treatment of Class 14
interest holders, violating the absolute priority rule.  
The Committee believes that if the debtor's negotiation
strategy is to curtail negotiations with the Committee, it
is in the best interests of all creditors to proceed with
the liquidation of the debtor's assets.  Any further
negotiations with the debtor are unwarranted.

DLS CAPITAL PARTNERS: Bond Pricing for Week of May 18, 1998
Following are indicated prices for selected issues:

Amer Telecasting 0/14 1/2 '04               23 - 25
APS 11 7/8 '06                              14 - 16 (f)
Asia Pulp & Paper 11 3/4 '05                88 - 90
Boston Chicken 7 3/4 '04                    31 - 32
Brunos  10 1/2 '05                          21 - 23 (f)
CAI Wireless 12 1/4 '02                     22 - 23
Cityscape 12 3/4 '04                        42 - 43 (f)
E&S Holdings 10 3/8 '06                     68 - 72
Grand Union 12 '04                          58 - 59 (f)
Harrah's Jazz 14 1/4 '01                    33 - 35 (f)
Hechinger 9.45 '12                          76 - 78
Hills 12 1/2 '03                            97 - 98
Levitz 9 5/8 '03                            51 - 53 (f)
Liggett 11 1/2 '99                          72 - 74
Mobilemedia 9 3/8 '07                       21 - 24 (f)
Penn Traffic 9 5/8 '05                      44 - 45
Royal Oak 11 '06                            88 - 91
Speedy Muffler 10 7/8 '06                   88 - 90
Trump Castle 11 3/4 '03                     91 - 93
Zenith 6 1/4 '11                            25 - 27


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
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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.  
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