TCR_Public/980630.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, June 30, 1998, Vol. 2, No. 127

APS: Restructuring of Business Operations
BLUE-N-GOLD BREWING: Case Summary & 20 Largest Creditors
BOSTON CHICKEN: Negotiates with Senior Credit Facilities
BOSTON CHICKEN: SEC Comments on Annual Report
BRUNO'S: Quarterly Report for Period Ended May 2, 1998

CAJUN ELECTRIC: Co-ops Differ on Judge's Decision
DAI-ICHI CORP: To Liquidate
DOEHLER-JARVIS: Liquidation of Harman Automotive
DOEHLER-JARVIS: Seeks Extension to Assume or Reject Leases
GAYLORD: Bookstore Debtors Extend Use of Cash Collateral

GAYLORD: Date Set for Cookstore Confirmation Hearing
GEOTEK COMMUNICATIONS: Files for Voluntary Chapter 11
KIA MOTORS: Auction May Wipe Out Ford's Share
LEVITZ: Committee Responds to Extension of Exclusivity
LONG JOHN: $65 Million Chase-Led DIP Facility Approved

LONG JOHN: Franchisees Urge Appointment of Separate Committee
MAXICARE HEALTH: Heartland Advisors Reports Stock Ownership
MAXICARE HEALTH PLANS: Net Loss of $2.7 Million
MERRY-GO-ROUND: Ernst & Young Going to the Jury
MOBILEMEDIA: Court Extends Solicitation Period

PAN AM: $24.5 Million Plan Confirmed
RDM SPORTS: MetroMedia Gets to Fund Avoidance Litigation
RENAISSANCE COSMETICS: Reports Disappointing Year
SANYO SECURITIES: Plans to Halt Business
SAUER INC: Reports Sales

SPECTRUM INFORMATION: Reports Financial Results
SUNBEAM: Confirms SEC Probe
UNION COUNTY UTILITIES: PSE&G and UCUA Announce NUG Buydown                       
VENTURE STORES: Sale of Paper to Norkol, Inc.
VENTURE STORES: Committee Seeks Investigation of Officers
WESTERN DIGITAL: Completes Revised Credit Agreement

Meetings, Conferences and Seminars


APS: Restructuring of Business Operations
APS Holding Corporation announced that it is undertaking a
restructuring of its business operations.  In addition to
the 32 company-owned stores closed during the first
quarter, the Company intends to close approximately 115
additional under performing company-owned stores and
Installers' Service Warehouse (ISW) units during
the second quarter, for a total of approximately 145.  

In conjunction with these closings, as previously announced
in mid-April, the Company has closed its Seattle
distribution center, which had never been profitable.  In
addition, the St. Louis and Tulsa distribution
centers have been converted to redistribution centers to
help facilitate the Company's operational restructuring.
APS has also begun a program to integrate its remaining ISW
operations into the Big A company store framework under the
Big A Express banner over time.  This transition will take
place during the remainder of 1998.  Day-to-day
responsibility for the combined company-owned store
operation is now under the direction of Mike Preston,
Senior Vice President. (APS Bankruptcy News 26-June-98)

BLUE-N-GOLD BREWING: Case Summary & 20 Largest Creditors
Debtor:  Blue-N-Gold Brewing Company
         3100 Clarendon Boulevard    
         Arlington, VA 22201

Court: Eastern District of Virginia, Alexandria Division

Case No.: 98-80054   Filed: 06/12/98    Chapter: 11

Debtor's Counsel: Kermit A. Rosenberg
                  Holmes, Rosenberg & Doherty, P.C.
                  2020 North 14th Street, Suite 410
                  Arlington, VA 22201-2515
                  (703) 526-0300

Total Assets:              $2,000,000
Total Debts:               $3,770,784

Debt Securities held by more than 500 holders:

               Secured $449,532
               Unsecured $3,315,691

No. of shares of common stock - 100          1 holder
20 Largest Unsecured Creditors:
   Name                              Nature         Amount
   ----                              ------         ------
Metropolitan Airport Authority       Trade            450
Martin Seafood                       Trade          1,674
Complete Building Services           Trade          2,909
Merripark Limited                     Rent         12,954
Bernstein Management Corp             Rent         14,055
SI Clarendon, Inc.                    Rent         75,000

BOSTON CHICKEN: Negotiates with Senior Credit Facilities
Boston Chicken is currently negotiating the terms of a
credit facility with the Bank of America National Trust and
Savings Association as agent and participant under Boston
Chicken's $85 million 1996 revolving line of credit and
with General Electric Capital Corporation as agent and a
participant under its 1996 Master Lease Agreement.

Boston Chicken anticipates that such senior lenders and
certain other participants in the 1996 Credit Facility
would extend to Boston Chicken an approximately $37 million
revolving line of credit expected to mature in late October

BOSTON CHICKEN: SEC Comments on Annual Report
Boston Chicken received a letter from the staff of the  
Division of Corporation Finance of the Securities and
Exchange Commission containing comments of the SEC Staff
regarding Boston Chicken's  Annual Report on Form 10-K for
the fiscal year ended December 28, 1997 including certain
portions thereof that were incorporated by  reference from
Boston Chicken's definitive proxy statement, dated April
13, 1998, as supplemented, for its 1998 Annual Meeting
of Stockholders.   

On May 28, 1998, counsel to Boston Chicken submitted a
letter to the SEC Staff  responding to its comments, in
which letter Boston Chicken has agreed to make additional
disclosure in the Form 10-K.  Boston Chicken believes such
agreed additional disclosure does not represent a material
change from its existing disclosure and so will include it
in an amended Form 10-K to be filed by Boston Chicken at
such time as Boston Chicken and the SEC Staff reach
agreement with respect to all of the SEC Staff's comments.  

As of June 25, 1998, Boston Chicken had been informed by
the SEC Staff that it would have additional comments in
response to Boston Chicken's letter of May 28, 1998, as
well as  related comments on Boston Chicken's Quarterly
Report on Form 10-Q for the quarterly period ended April
19, 1998 and Boston Chicken's Current Reports on  Form 8-K
dated May 19, 1998 and June 16, 1998.  However, Boston
Chicken has not yet received the formal comments from the
SEC Staff. Boston Chicken intends to submit promptly a
letter to the SEC Staff responding to any additional
comments that are  received by Boston Chicken.

The comments made by the SEC Staff with respect to the SEC
Documents may have a number of effects on Boston Chicken,
including, for example:  (i) until such comments are
resolved with the SEC Staff, Boston Chicken will not be
able to cause the shelf registration statement that is
required to be filed with respect to the preferred stock
and common stock of Boston Chicken to be issued to the
holders of interests in BCEF and Market Partners to become
effective; (ii) until such comments are resolved with the
SEC Staff, Boston Chicken may experience delays to other
transactions involving Boston Chicken that are
subject to review by the Securities and Exchange
Commission, including any proposed restructuring of Boston
Chicken's outstanding classes of publicly traded
subordinated debt; and (iii) any material additional or
restated disclosure may have an effect on the progress or
outcome of the current securities class action litigation
against Boston Chicken and certain other persons.

BRUNO'S: Quarterly Report for Period Ended May 2, 1998
The Debtor filed its quarterly report on Form 10-Q with the
Securities and Exchange Commission, reporting an
$11,353,000 net loss on $501,729,000 in sales for the 13-
week period ending May 2, 1998.  A full-text copy of the
filing is available at no charge via the Internet at:

CAJUN ELECTRIC: Co-ops Differ on Judge's Decision
Rural cooperatives that provide electricity to nearly 1
million Louisianians remain sharply divided over a federal
judge's decision to cancel Southwest Electric Power Co.'s
bid to buy Cajun Electric Power Cooperative Inc. out of  

Eight cooperatives say they will continue to support SWEPCO
and will back an appeal of U.S. District Judge Frank
Polozola's ruling. Polozola ruled SWEPCO illegally paid $1
million last year to "lock in" the votes of seven  
cooperatives for SWEPCO's bid.

But three other cooperatives, including Pointe Coupee
Electric Membership Corp., have endorsed other bidders.
Jimmy Ewing, president of Pointe Coupee's board of
directors, said Polozola issued a "straightforward" ruling
after studying the case carefully.

"That $1 million in essence bought the hearts and minds and
souls of the professionals in this case," said Ewing.
Ewing said the payment, first offered behind the scenes in
November 1996, influenced attorneys and managers of the
seven cooperatives, pushing them to stick with SWEPCO and
shun negotiations with other bidders.

The payment has delayed a solution to the bankruptcy, Ewing
said, making it impossible for the cooperatives' customers
to benefit from the lower electric  rates that he said
would come with approval of any of the three bids.

The bids were made by SWEPCO, Houston-based Enron Corp. and
a partnership led by Southern International Energy of
Atlanta.  But John Sharp, attorney for the seven
cooperatives, denied the $1 million payment had any
influence. Legal fees in the bankruptcy so far have
probably mounted to more than $40 million, he said.

"The idea that $1 million is going to buy anybody's heart
and soul is ridiculous," he said. "The $1 million was
nothing more than one partner in a business venture
assisting another partner in a business venture."

The controversial payment stemmed from a Jan. 9, 1997,
letter by SWEPCO attorney Bobby Gilliam offering to pay $1
million for legal expenses of the group of seven

Gilliam included a condition requiring cooperatives to
repay the money if they endorsed the plan proposed by
another company. The cooperatives agreed with the condition
and received $1 million. The trustee overseeing Cajun later
complained along with other parties in the case that the
payment was improper and was kept secret from them until  
April 1997, when a cooperative official by chance disclosed
it.   Polozola, in a hearing June 16, ruled the payment was
an illegal secret attempt to "lock in" the votes of the
cooperatives, which had voted for SWEPCO's plans in
December 1996.

Polozola ordered the seven cooperatives to repay the money
by June 30, and he referred the matter to federal
prosecutors for investigation.  On Friday, Polozola denied
a request by SWEPCO to stay his order while SWEPCO appeals
to the U.S. 5th Circuit Court of Appeals in New Orleans,
said  David Rubin, attorney for the trustee in the case.
At the outset of the bankruptcy in 1994, the state had 12
rural cooperatives, which were owned by their members or
customers. The cooperatives in turn owned Cajun and bought
their power through it.

At first, 10 cooperatives supported SWEPCO's bid to buy
Cajun out of bankruptcy. One cooperative, Claiborne
Electric, did not join the committee of cooperatives
backing the bid.  Another cooperative, which was sold to an
investor-owned utility, has expressed no preference among
the three bidders.

Then, beginning in late 1996, Pointe Coupee and two other
cooperatives dropped their support of SWEPCO and reached
agreements with the other bidders.  On Friday, the two
other cooperatives - Southwest Louisiana Electric  
Membership Corp. (SLEMCO) in Lafayette and Concordia
Electric Cooperative in Jonesville - said Polozola was
"unequivocally correct."  "The Cajun bankruptcy case has
lingered way too long and is mainly damaging to the nearly
400,000 electric cooperative customers in the state,"
said George  Fawcett, SLEMCO's director of marketing. "This
entire matter needs to move forward as quickly as possible
to a conclusion."

Claiborne Electric attorney Patrick Henry said the
cooperative will support SWEPCO's appeal, and doesn't think
the $1 million payment was an attempt to buy the
cooperatives' votes.  The Louisiana Public Service
Commission has said the rates proposed under all three
plans - which would cut Cajun's current rates by roughly 10
percent - are "not presumptively unreasonable."

SWEPCO's rate would cost all of the cooperatives $300
million less than the two other bidders' rates over 25
years, Locklar said, citing a study by Dixie consultants.
Dixie, which got more than $360,000 of the SWEPCO payment,
will be able to repay the money by June 30, he said.
He said Cajun went into bankruptcy because of bad planning
over the costs  for the River Bend nuclear power plant, and
he is worried similar problems may arise if the
cooperatives don't fight for the lowest rates possible.
(Advocate Baton Rouge - 6/27/98)

DAI-ICHI CORP: To Liquidate
According to a private credit research company,
Daiichi Corp., a non-banking financial institution that
announced a restructuring plan in April, applied for
special liquidation proceedings with  Tokyo District Court
on  June 26.

It currently has as much as 413.5 billion yen in  
liabilities.  (Tokyo Financial Wire-06/29/98)

DOEHLER-JARVIS: Liquidation of Harman Automotive
Harman Automotive, Inc. one of the debtors of Doehler-
Jarvis, Inc. et al. seeks to implement a liquidation
procedure designed to maximize the value of and return for
the remaining Harman Assets.  Harman proposes to dispose of
the assets by engaging the services of National Industrial
Services Incorporated, as liquidator and auctioneer.  The
Agreement guarantees that Harman will receive sales
proceeds of $1.95 million form the Public auction of the
Harman Assets.

The debtor states that the liquidation is supported by
Harman's sound business judgment and Harman seeks court
authority to retain National Industrial Services, approving
the liquidation procedures and authorizing the sale of the
remaining Harman assets by Public Auction.

DOEHLER-JARVIS: Seeks Extension to Assume or Reject Leases
Doehler-Jarvis Inc. et al. seek entry of an order extending
for a period of 60 additional days the time within which
the debtors may assume to reject leases of nonresidential
real property to which any of the debtors is a lessee.
The debtors presently have 12 unexpired leases of
nonresidential real property in 7 states.  The leases
constitute valuable assets of the debtors' estates.  The
debtors are presently in the process of negotiating the
terms of a plan or plans of reorganization with the
Creditors' Committee.  In connection with the plan or
plans, the debtors are evaluating their financial situation
and the potential value of the leases and expect the plan
or plans to address which of the leases they will assume
and reject.  The debtors expect to file a plan or plans of
reorganization in the near term.

GAYLORD: Bookstore Debtors Extend Use of Cash Collateral
On June 22, 1998 the court approved a supplement to the
Stipulation and Agreed Order extending the bookstore
Debtors' authority to use cash collateral entered June 15,
The parties reached an agreement extending the use of the
cash collateral of their secured lender Greenfield
Commercial Credit, LLC through July 2, 1998

GAYLORD: Date Set for Cookstore Confirmation Hearing
July 10, 1998 is fixed as the date for the confirmation
hearing on the Cookstore Debtors' Plan of Reorganization
dated June 18, 1998.  The Disclosure Statement is
conditionally approved subject6 to final approval on July
10, 1998.

GEOTEK COMMUNICATIONS: Files for Voluntary Chapter 11
Geotek Communications, Inc. provider of mobile logistics
systems, announced today that it and its domestic
subsidiaries have filed voluntary petitions  seeking
protection under Chapter 11 of the Bankruptcy Code.
The filing in the U.S. Bankruptcy Court in Wilmington,
Delaware, together with $10.0 million in debtor-in-
possession financing, will enable the Company to conduct
its business while it attempts to negotiate a plan to
reorganize with its major creditors and seek additional
capital; or, in the alternative, to find a strategic buyer  
for its business. The debtor-in-possession financing
agreement was filed with a term sheet for a Chapter
11 Plan of Reorganization prepared by the debtor-in-
possession lender.

Subject to court approval, Geotek expects to use all
operating revenues  from the continued sales of its
communication systems and services, in addition  to the
$10.0 million debtor-in- possession commitment from S-C
Rig Investments  III, L.P., an affiliate of the Soros
Group, to fulfill obligations associated  with operating
its business. Employees will receive salaries in the normal  
manner and benefits programs continue.

As of March 31, 1998, Geotek Communications, Inc. had
consolidated assets (unaudited) of approximately $351
million and consolidated liabilities (unaudited) of
approximately $424 million. Geotek is a provider of mobile
logistics systems in the United States.

KIA MOTORS: Auction May Wipe Out Ford's Share
Ford Motor Co. may be forced to write off much of its  
12-year investment in Kia Motors Corp. as the South Korean
government prepares to clean up the insolvent auto
manufacturer for an international sale.
Kia will be put up for auction as early as the end of
August, said Kang Bong Kyun, a senior presidential
secretary for economic affairs. Before that occurs, the
nation's third-largest automaker must reduce all or most of
its capital to pare its debt, making Kia shares almost

"Details of the capital reduction will be determined later,
but it's only natural to reduce the existing capital of Kia
Motors before the auction," Kang said.

Resolving Kia's future is central to Korea's efforts to
overcome its biggest financial crisis in four decades. The
company's $10- billion collapse a year ago disrupted the
banking system and helped spark foreign currency turmoil
that left the country almost broke. In December, Korea
turned to the International Monetary Fund for a record $60-
billion bailout.

Ford bought 10 percent of Kia in 1986 for $30 million and
now owns about 9.4 percent of the company. Ford's Mazda
Motor Corp. affiliate owns 7.0 percent of Kia. Kang said
Ford will have the option of buying new shares at the
auction if it wants to maintain its investment in Kia.
(Detroit News-06/26/98)

LEVITZ: Committee Responds to Extension of Exclusivity
The Official Committee of Unsecured Creditors of Levitz
Furniture Incorporated, et al., responds to the motion of
the debtor seeking a 90 day extension of the exclusive
periods.  The debtor agrees to a 60 day extension of the
exclusive periods, and seeks court approval of only the 60
day extension.

LONG JOHN: $65 Million Chase-Led DIP Facility Approved
Long John Silver's Restaurants, Inc., obtained final
approval last week from the Federal court in Delaware
of its $65 million debtor-in-possession financing
facility led by Chase Manhattan Bank.

LONG JOHN: Franchisees Urge Appointment of Separate Committee
The United States Trustee for Region III has indicated
a willingness to appoint an official committee to
represent the interests of franchisees of Long John
Silver's Restaurants, Inc.  A consortium of franchisees
argued that an official committee is needed because no
franchisee-related interests are represented by the
official creditors' committee.  Franchisee and creditor
interests, the Consortium asserted are "prone to come
into conflict, particularly with respect to operational,
executory contract, and, most importantly, plan issues."

MAXICARE HEALTH: Heartland Advisors Reports Stock Ownership
Heartland Advisors, Inc. amends its filing with the SEC
relating to the Shares of Maxicare Health Plans, Inc.
Heartland Advisors reports beneficial ownership of
3,577,400 shares of common stock, representing 20% of the

The Heartland Value Fund, a series of Heartland
Group, holds an aggregate of 1,631,400 Shares, which were
purchased for cash in the amount of $28,376,164.81,
including brokerage commissions.

The Accounts own an aggregate of 1,946,000 Shares, which
were purchased for cash, or on margin in accordance with
margin agreements on industry standard terms, in the amount
of $28,902,818.39, including brokerage commissions.

MAXICARE HEALTH PLANS: Net Loss of $2.7 Million
The Company reported a net loss of $2.7 million for the
three months ended March 31, 1998 compared  to net income
of $.1 million for the same three month period  in  1997.

MERRY-GO-ROUND: Ernst & Young Going to the Jury
U.S. District Court Judge J. Frederick Motz has affirmed a
U.S. bankruptcy  judge's ruling that a Baltimore Circuit
Court jury should decide whether the  accounting firm hired
to revive Maryland-based retailer Merry-Go-Round  
Enterprises Inc. instead caused its collapse.
Ernst & Young International Inc., facing a $4 billion
fraud, negligence and malpractice case tied to its handling
of Merry-Go- Round's Chapter 11 reorganization, had
appealed the March ruling by U.S. Bankruptcy Judge E.  
Stephen Derby.

The case has been assigned to Circuit Judge Kathleen
O'Ferrall Friedman for a trial scheduled to start March 25,

MOBILEMEDIA: Court Extends Solicitation Period
The United States Bankruptcy Court for the District of
Delaware extended MobileMedia's exclusive period during
which to solicit acceptances of a plan of reorganization
through July 31, 1998.

The paging concern originally requested an extension to
Sept. 30, but later reached an agreement with the
creditors' committee and bank group, according to Federal
Filings, Inc.  MobileMedia has said it is still in talks
concerning "material amendments" to its plan that "could
involve the Debtors' emerging from Chapter 11 either as
a stand-alone company or as part of a third-party
business combination."

PAN AM: $24.5 Million Plan Confirmed
A U.S. Bankruptcy Court judge Monday confirmed a
$24.5 million bankruptcy reorganization plan for Pan Am
Corp. under which private rail company Guilford
Transportation Services will acquire Pan Am's
name and assets.

The deal will allow Pan Am to pay back $20.5 million in
cash to NationsBank Corp., its largest creditor. But there
will be no money for shareholders of the  carrier, which
filed for Chapter 11 bankruptcy protection on
Feb. 26.

Judge A. Jay Cristol signed the confirmation after lawyers
said objections from six creditors had been resolved with
minor modifications.

The new Pan Am Airlines Inc. will maintain the charter
flights launched after the carrier shut down Feb. 27 and
evaluate future expansion, including regular scheduled
service.  The carrier had about $94 million in debts and a
book value of $70 million when it shut down. If a
liquidation had gone through, many creditors would
have been left with nothing.   

The plan calls for a $20.5 million payment to NationsBank,
the biggest secured creditor, and $100 payments out of a
$500,000 fund to anyone who paid cash for unused tickets.
Lawyers and accountants will collect about $1.2 million for
working on the bankruptcy case. Most others can expect to
be paid only 5 cents on the dollar for their claims from
the remaining pot of roughly $5 million.

RDM SPORTS: MetroMedia Gets to Fund Avoidance Litigation
Metromedia International Group Inc. lost its bid to block
RDM Sports Group, Inc.'s Chapter 11 Trustee and committees
of unsecured creditors and bondholders from using $5.5
million of cash collateral to pursue causes of action
against a host of parties, including General Electric Co.,
as well as to pay administrative costs and the trustee's fees
and expenses.  Following a June 17 hearing, the U.S.
Bankruptcy Court in Newnan, Ga., overruled Metromedia's
objection and authorized establishment of the cash collateral

RENAISSANCE COSMETICS: Reports Disappointing Year
Renaissance Cosmetics Inc. announced its financial results
for the fiscal year ended March 31, 1998 and
authorization of a financial restructuring of the company's
holding company obligations and equity interests.
Concurrently, the company announced that the lenders to its
operating companies had agreed to extend their financing
commitments to June 1999 and increase the amount available
to be borrowed under their $75.0 million revolving credit

The company stated that it was now confident that it would
have sufficient liquidity to enable the company to execute
the business plans of its operating subsidiaries and
consummate its financial and operational restructuring.  
The company reported a net loss for its fiscal year ended
March 31, 1998 of $197.4 million on net sales of $179.7
million. ("EBITDAI") for Fiscal 1997 were ($62.7) million;
excluding restructuring charges and prior years'
adjustments, EBITDAI was ($4.5) million.

Terry Theodore, chairman of the company's board of
directors, said "1997 was an extremely difficult and
disappointing year for both Renaissance and the  
mass market fragrance industry.

Norbert Becker, the company's chief executive officer,
said, "We reduced our consolidated domestic payroll by
approximately 20%, and in the process streamlined our
operations so that we can respond more efficiently to
market conditions and customer needs. With the operational
restructuring well underway, we have begun contacting our
principal holding company constituents and will shortly
commence  discussions on a financial restructuring plan to
put the Company on firm  financial footing.

Steps taken in the operational restructuring include
focusing efforts on the  company's core fragrance brands,
consolidating organizational and management  structures and
reducing operating expenses by closing facilities and  
eliminating unprofitable products.

Renaissance Cosmetics has outstanding $200 million
principal amount of 11.75% Senior Notes due 2004, and the
company expects that it will not make the semi-annual
interest payment on the Senior Notes due on Aug. 15, 1998.  
The company is the holding company for several operating
companies and businesses, including Dana Perfumes Corp.,
Cosmar, Tinkerbell, Nat Robbins Cosmetics and the Fetish
line of fragrances, cosmetics and nail products.

SANYO SECURITIES: Plans to Halt Business
The Japanese brokerage Sanyo Securities Co. has abandoned  
restructuring efforts and plans to halt its business.
But the securities company is still negotiating a possible
buyout with a foreign financial company. Sanyo disclosed
Wednesday that it has given up on restructuring but refused
to name the company in the possible buyout.
Sanyo applied for court protection from creditors last
November as it sought to rebuild its operations under a
corporation rehabilitation law.

"From now on we'll focus on liquidation, although we've put
all efforts on reconstruction since November," said Akira
Fujishima, trustee for the brokerage.  If no agreement is
reached with the unnamed foreign financial suitor by  
August, Sanyo will likely dissolve the business by the end
of that month, Fujishima said.

SAUER INC: Reports Sales
Net sales for first quarter 1998 of $152.9 million
increased by $17.0 million, or 12.5% from first quarter
1997 net sales of $135.9 million.

SPECTRUM INFORMATION: Reports Financial Results
Spectrum Information Technologies, Inc. announced financial
results as reported in its Annual Report on Form 10-K for
the Fiscal Year Ended March 31, 1998 as filed with the
Securities and Exchange Commission.  Spectrum also reported
that it is actively seeking to raise capital to implement
its business strategy.

For the fiscal year ended March 31, 1998, Spectrum reported
a net loss of $3.1 million, or $2.33 per share, compared to
a net loss of $6.2 million, or $6.04 per share, for the
previous fiscal year.  The reduction in net loss is  
primarily attributable to $2.3 million in Chapter 11
administrative expenses that the Company incurred in fiscal
1997 as part of its reorganization that were not incurred
during the fiscal year reported.

Spectrum reported $1.8 million in revenues for the fiscal
year ended March 1998 versus $1.9 million for the fiscal
year ended March 1997, and operating loss of $3.2 million
for the fiscal year reported, compared to an operating loss
of $4.0 million for the previous year.  All of the
Company's revenues were related to its patented cellular
data technology, not its Internet service.

In a separate release, Spectrum announced that it has hired
James G. Moore, formerly Director of Network Operations and
Internet Services with Prodigy Services Company, to manage
the day to day operations of the FastLane Web Acceleration
and to help design and manage its deployment.

SUNBEAM: Confirms SEC Probe
Sunbeam Corp., the maker of home appliances  
and outdoor products that earlier this month fired its
controversial CEO, said on Thursday the Securities and
Exchange Commission is investigating its accounting

Sunbeam also said it is seeking waivers on certain loan
covenants on $1.7 billion worth of loans and is continuing
a review of issues surrounding its 1997 financial
statements. The underwriters of the loans are Morgan
Stanley Dean Witter & Co., BankAmerica Corp. and First
Union Corp., which were part of Sunbeam's restructuring
program completed last March.

Sunbeam's stock has been in a steep decline since mid-
March, when the company warned its first-quarter revenues
would fall short of expectations. It subsequently fired the
head of its consumer products division, posted a first-
quarter loss of $44 million and announced a restructuring
that involved closing eight plants and eliminating  5,100
jobs, or a third of its work force.

UNION COUNTY UTILITIES: PSE&G and UCUA Announce NUG Buydown                       
Public Service Electric and Gas Company (PSE&G) and the
Union County Utilities Authority (UCUA) today announced
that they have agreed to amend their Power Purchase and
Interconnection Agreement (commonly referred to as Non-
Utility Generation, or NUG contract) originally signed in

Under federal and state regulations, utilities have
been required to enter into long-term power purchase
agreements with NUGs at above-market prices.  Under the
terms of the agreement, PSE&G will pay UCUA a lump sum
amount of $7.75 million in exchange for a $24.4 million
reduction in the prices paid for energy and capacity over
the remaining life of the 20-year contract and give UCUA
significant flexibility to market its power in a newly  
deregulated market.

The UCUA will use the $7.75 million as part of a debt
restructuring of its  resource recovery facility, which is
facing financial difficulties as a result of recent court
decisions that stopped county agencies from directing
municipal  solid waste to the facility.
"We are working hard to mitigate the impact of above-market
NUG contracts on our customers," said Colin Loxley,
director resource planning for PSE&G. "This agreement is a
true win-win situation.  Since all of the costs are borne  
by our customers, all of the savings will be passed on to
them as well. Moreover, the UCUA is given an additional
tool in dealing with its financial needs."

"This agreement helps the UCUA solve its current financial
problems and reduces the pressure on the county's
taxpayers," said Joseph Spatola, Ph.D., executive director,
UCUA.  "This agreement gives the UCUA a $7.75 million  
payment in the face of considerable risk, while also
leaving us flexibility to benefit further in the open
electric market," added Spatola.

The agreement also settles a dispute between PSE&G and the
UCUA regarding the impact of PJM's restructuring on
existing pricing mechanisms.  Under the original agreement,
which expires in April 2013, PSE&G was to pay 110% of the  
PJM billing rate and a capacity rate set annually by PJM
(the PJM Capacity  Deficiency Rate).  Under the agreement
announced today, energy prices will be based on PSE&G's
zonal locational marginal price and capacity rates will be  
fixed for 3 years and then set by market-based rates.

The New Jersey Board of Public Utilities must approve its
terms.  PSE&G and UCUA indicated in the agreement  
that if the BPU does not grant its approval within 90 days,
either party has the option to withdraw it.

VENTURE STORES: Sale of Paper to Norkol, Inc.
Subject to higher and better offers, the Debtor proposes to
sell approximately 1,400 short tons of "Super calendered A
& B grade paper" inventory to Norkol, Inc., for $700,000 on
an "as it, where is" basis. Norkol has agreed to pick-up
all of the paper inventory from the Debtor's printers and
pay all transportation and removal costs.  Additionally,
Norkol will assume all risks of loss from the Closing
through the pick-up time.    

VENTURE STORES: Committee Seeks Investigation of Officers
The Official Committee of Unsecured Creditors has advised
the debtor, Venture Stores, Inc. that it believes an
investigation of the acts and conduct of the officers and
directors of the debtor is necessary relating to the sale
leaseback transactions with Kmart and all matters arising
from the transactions.  The Committee asserts that the
debtor has conflicts of interest that prevent it from
conducting such investigation.

The debtor agrees to cooperate in all aspects of the

WESTERN DIGITAL: Completes Revised Credit Agreement
Western Digital has completed negotiations of the terms of
its bank credit agreement and confirmed that the company is
in compliance with all the credit agreement's covenants.
Earlier this month, the company announced that an expected
loss in the fourth fiscal quarter ended this month would
result in a technical default under its bank credit line.  
Senior vice president and chief financial officer Duston W.
Williams said today that under the new terms no technical
default would occur.

Western Digital has $200 million available under its bank
credit agreement and $50 million currently outstanding in
the form of a term loan.  The Company said it expects to
have more than $425 million in cash on its balance sheet at  
the fiscal year ending June 27, 1998.

Meetings, Conferences and Seminars

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 24-27, 1998
      33rd Annual Seminar
         Portland Marriott, Portland, Oregon
            Contact: 1-601-355-6661

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 Mid-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

October 22-25, 1998
      72nd Annual Meeting
         Wyndham Anatole Hotel, Dallas, Texas
            Contact 1-803-957-6225

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, Tuscon, Arizona
            Contact: 1-703-739-0800

February 18-21, 1998
      Annual Western District Meeting
         Monte Carlo Hotel & Casino Resort,
         Las Vegas, Nevada
            Contact 1-702-382-9558

April 26-27, 1999
      Bankruptcy Sales, Mergers & Acquisitions
         The Mark Hopkins, 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.

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 publishers.   
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

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