TCR_Public/980702.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
       Thursday, July 2, 1998, Vol. 2, No. 129

AGROBANKA: GE Sets Foot in Czech Banking
AMERICAN RICE: Reviewing Disclosure and Accounting Policies
AUTOLEND GROUP: Needs Court OK of Auditors and Counsel
BUILDERS TRANSPORT: Notification of Late Filing
CAI WIRELESS: Offers Pre-Packaged Reorganization Plan

CHATCOM INC: Changed Principal Accountants
CORAM HEALTHCARE: Restructuring of Rollover Notes
DATA 1 INC: Plan of Reorganization Approved           
DECADE NEW YORK: Case Summary & 20 Largest Creditors
EAGLE PICHER: Files Quarterly Report

EMERGENT GROUP: Announces $200 Million Bank Line Facility
EQUITEX: First TeleServices Merges With Equitex
FRUEHAUF TRAILER: Bankruptcy Information by Email
GALAXY FOODS: First Annual Profit Since 1991

GEOTEK: CEO Steps Down
HEARTPORT INC: S&P Affirms Ratings
HONDO OIL: Considering Chapter 11 Filing
LEVITZ FURNITURE: Seeks Extension for Filing Form 10K                     

MTL, CHEMICAL LEAMAN: Ratings Put on S&PWatch Negative
MARINELAND OCEANARIUM: Bankruptcy Judge to Choose Buyer
MOBILEMEDIA: Arch Closes Financing Deal
NEW YORK FASHION: Files For Chapter 11 Protection
NIKE: Reports Revenues and Earnings For Fourth Quarter

PIONEER OIL: To Implement Chapter 11 Plan
RBX CORPORATION: Reaches Agreement With Banks
RELIANCE ACCEPTANCE: Court OK's Wallace Sanders
STROUDS: Reports Its First Quarter Results                 
SUNBEAM: Maybe the 1997 Statements Were Off

ZENITH: Secures New Financing


AGROBANKA: GE Sets Foot in Czech Banking
It was reported that General Electric (GE)(US) bought the  
healthy part of the bankrupt  bank  Agrobanka (AGB) (Czech
Republic) on 22 June 1998. GE took over deposits of 30 bil
Kc from AGB and all the bank's branch  network.  GE will
also take over the majority of AGB's 3,000 employees. The
firm will go on using the name Agrobanka.   The European
Bank for Reconstruction and Development (EBRD) did  not
enter  the project  in the end. EBRD together with GE was
to take over the healthy part of AGB originally.  The old
part of AGB, which  controls assets  worth about 28 bil Kc
and keeps its bank license at the moment, will go into
bankruptcy  shortly. The central bank has invested about 20
bil Kc in the part of AGB. (Access Czech Republic Business
- 6/23/98)

AMERICAN RICE: Reviewing Disclosure and Accounting Policies
American Rice Inc. filed a Form 12b-25 with the SEC
reporting a late filing of its Form 10K for the period
ending March 31, 1998.

The Company is in the process of reviewing a number of
disclosure and accounting policy issues with its
accountants and legal counsel. Due to the timing and
difficulty of the review and reporting process the
additional expense would be unreasonable.

AUTOLEND GROUP: Needs Court OK of Auditors and Counsel
AutoLend Group, Inc. notified the SEC of a late filing of
its form 10K caused by the bankruptcy proceedings in
obtaining court approval of new auditors and SEC Counsel.

The company also reports anticipated changes expected in
the results of operations of the current fiscal year as
compared to those presented in the last fiscal year.  The
Company is currently reorganizing under Chapter 11.  In
addition, the Company ceased purchasing installment
receivables in December 1995 and life insurance policies
in September 1994 and does not at this time intend to
recommence such activities.  Accordingly, decreases of
approximately $1 million and $425 thousand in the revenues
from installment receivables and life insurance
policies, respectively will be shown on the statement of
operations for the current year.  An extraordinary gain on
early extinguishment of debt of approximately $3 million
was recognized in the current year relating to the
early retirement of debentures.  In addition, a non-cash
conversion cost of $6 million was recognized due to the
conversion of debentures during the year. Furthermore, net
equity has improved by approximately $8.4 million from the
prior year.

BUILDERS TRANSPORT: Notification of Late Filing
Builders Transport Inc. notified the SEC of a late filing
of its form 11K.  The company stated that the Plan
Administrator for the Builders Transport, Inc. Employees
Retirement Savings & Profit Sharing Plan is in the process,
in conjunction with the Company, of compiling additional
information needed to complete the financial statements
required by the independent auditors.  The independent
auditors require the additional information in order to
render their opinion.

CAI WIRELESS: Offers Pre-Packaged Reorganization Plan
CAI Wireless Systems, Inc. announced that it has commenced
a solicitation of votes with respect to a pre-packaged
reorganization plan pursuant to which CAI will restructure
its financial obligations.

The solicitation is being sent to the holders of CAI's 12
1/4% Senior Notes due 2002 (the "Senior Notes") and certain
other impaired creditors.

Although the Reorganization Plan was developed in the
course of discussions and negotiations  with the Company's
senior lender and an Unofficial Committee representing  
approximately 73% of the outstanding Senior Notes, the Plan
has not yet been  approved or endorsed by any creditor or
the Unofficial Committee.

Under the Company's proposed Reorganization Plan, holders
of the Senior Notes will receive approximately $16,400,000
in cash, $100,000,000 of new Senior Notes due 2004 and 91%
of the equity of the reorganized CAI. The holder of CAI's
$30,000,000 12% Subordinated Note and the holders of CAI's  
Subordinated Promissory Notes due September 29, 2000 issued
by CAI in connection with the acquisition of wireless cable
assets in the Baltimore and Washington markets will receive
their pro rata share of the remaining 9% of the new common
stock of the reorganized CAI.

The Reorganization Plan does not provide any recovery for
CAI's current common shareholders or other equity-based
interest holders. CAI's trade creditors, including all ITFS
or MMDS licenseholders that lease excess capacity to CAI's
various subsidiaries, will remain unimpaired and be paid in
the ordinary course of CAI's operations.

The Company has arranged for debtor-in-possession (DIP)
financing in the principal amount of $60,000,000,
$48,000,000 of which will be used to repay CAI's pre-
petition senior secured loan. The balance, approximately
$12,000,000, will be provided to the Company to allow CAI
to operate through the Chapter 11 case.

In connection with the solicitation, the Company has
received an extension of the maturity date of the 13%
Senior Secured Notes to July 30, 1998. CAI, in conjunction
with BT Alex. Brown Incorporated, its financial advisor, is
also seeking commitments for an exit facility intended to
provide the reorganized CAI with working capital for at
least one year following the consummation of the

The Voting Deadline for the solicitation is July 27, 1998.
If CAI receives the requisite number of acceptances from
the impaired creditors, CAI intends to commence its Chapter
11 case shortly thereafter.

For the fourth quarter ended March 31, 1998, sales were
$6,644,000 versus $8,589,000 for the comparable year-ago
quarter. The decrease was primarily due to the Company's
strategy of not pursuing analog-based video subscriber
growth. Net loss for the most recent fiscal quarter was  
$(131,537,000) or $(3.31) per common share, versus
$(24,805,000) or $(0.70) per common share, for the
comparable year-ago quarter.

For the year ended March 31, 1998, sales were $28,622,000
versus $36,327,000 for the year ended March 31, 1997,
primarily due to the Company's strategy of not pursuing
analog-based video subscribers while it evaluates its  
business opportunities. Net loss for the most recent fiscal
year was $(230,073,000) or $(6.02) per common share, versus
$(82,298,000) or $(2.38) per common share, for the fiscal
year ended March 31, 1997.

CHATCOM INC: Changed Principal Accountants
ChatCom, Inc. reported to the SEC that its Form 10K would
be filed late.  The company previously reported that the
Company changed its principal independent accountants in
February 1998.  As a result of the Company's liquidity
problems and the change in the Company's accountants, the
Company experienced a delay in the scheduling and
completion of the audit of the Company's financial
statements for the fiscal year ended March 31, 1998.
For the foregoing reasons, the Company requires additional
time to prepare its Annual Report on Form 10-KSB for the
fiscal year ended March 31, 1998.

It is anticipated that a significant change in results of
operations from the fiscal year ended March 31, 1997 will
be reflected by the earnings statement to be included in
the Annual Report on Form 10-KSB for the fiscal year ended
March 31, 1998 due to a reduction in net sales during
fiscal 1998 as compared to fiscal 1997 caused, in part, by
the return of certain equipment previously purchased from
the Company by a foreign distributor during fiscal 1998,
increased research and development expenses during fiscal
1998 and the Company's liquidity problems during fiscal
1998 which caused the Company to incur additional
nonrecurring expenses. The Company is expected to
record a net loss of approximately $7,773,000 for fiscal
1998 on revenues of approximately $7,271,000 as compared to
a net loss of $4,601,000 on revenues of $9,103,000 for
fiscal 1997.

CORAM HEALTHCARE: Restructuring of Rollover Notes
Coram Healthcare Corporation announced that the Company
completed the restructuring of its Subordinated Rollover
Notes on June 30, 1998.  The restructuring required,  
among other conditions, the approval of Coram's
shareholders.  That approval was received at the Company's
Annual Stockholder Meeting on June 24, 1998.

As previously announced, the debt restructuring involves an
exchange of the Rollover Notes for two debt instruments:  
$150.0 million of Series A  Subordinated Notes with an
initial annual interest rate of 9.875%; and, approximately
$87.9 million of Series B Convertible Subordinated Notes at
an interest rate of 8%.  In addition, all warrants issued
in connection with the Rollover Notes have been returned
and cancelled.  The holders of the Series A and Series B
Notes have also agreed to extend to Coram $60 million of
senior secured debt subject to the completion of definitive

"The debt restructuring is one in a series of steps we have
taken to return Coram to profitability," said Donald J.
Amaral, Coram's Chairman and Chief Executive Officer.  "The
new debt instruments reduce our interest expense by  
approximately $17 million annually and strengthen our
balance sheet."

Separately, Coram announced that Mr. Amaral had signed an
amendment to his employment agreement, which extends his
employment with the Company until May 2000.

Coram Healthcare is a leading provider of high quality,
complex patient care provided outside the hospital.  The
Company's mission is to work with patients, physicians,
payors and other health care providers to develop better  
models of care for those with serious or chronic medical

DATA 1 INC: Plan of Reorganization Approved           
On June 19, 1998, the U.S. Bankruptcy Court, Middle
District of Florida, Tampa Division entered
the order confirming Data 1, Inc.'s (Nasdaq E.B.B.
symbol:DMEM) Plan of Reorganization which provides for fair
and equitable payment to all creditors and allows Data 1,
Inc. to immediately move forward with its new
business plan.

"The company has worked long and hard in solving its past
problems and is now focused on reestablishing its business
and creating an exciting and profitable future," said
Howard Davidsmeyer, Chairman of the Board.

DECADE NEW YORK: Case Summary & 20 Largest Creditors
Debtor:  Decade New York LLC
         1115,1117-1119 First Avenue
         New York, NY 10021

Type of business: Operator of Restaurant, Dance-Supper Club

Court: Southern District of New York

Case No.: 98B44621    Filed: 06/26/98    Chapter: 11

Debtor's Counsel: Alex Spizz
                  Todtman, Nachamie, Hendler &
                  Spizz, P.C.
                  425 Park Avenue
                  New York, NY 10021
                  (212) 754-9400

Total Assets:                                $2,169,901
Total Liabilities and Members' Equity:       $2,169,901

20 Largest Unsecured Creditors:

   Name                             Nature          Amount
   ----                             ------          ------
NY State Dept of Tax and Finance     Taxes         405,839
IRS                                  Taxes         293,525
Adeline Moskowitz         Security Deposit         220,946
Winslow Bank & Trust                  Loan         184,207
Dining a La Card                      Loan          62,479
Larry Mizel                           Loan          80,464
NYC Dept of Finance                  Taxes          34,726
NYS Dept of Labor                    Taxes          30,148
TCG                              Telephone          31,236
Charmer Industries                   Trade          24,371
Oxford Health Plan             EE Benefits          21,895
Martin Scott Wines                   Trade          15,606
Heller Financial Group             Deposit          14,761
Marcel Bequillard       Furniture/Services          14,559
Mel Evans & Assoc            Placement Fee          13,000
Con Edison 0002-2                 Electric          10,943
Tricana Importers                    Trade           9,860
Xerox Lease                         Copier           9,836

EAGLE PICHER: Files Quarterly Report
Eagle Picher Holdings Inc. reports that its  net sales were
$219.9 million for the second quarter ended May 31, 1998, a
decrease of $22.3 million or 9.2% from the comparable
period of 1997. Included in the results of the second
quarter of 1997 are $32.6 million of sales of the Divested
Divisions, which, if excluded, would result in an increase
in the Company's quarterly net sales of approximately 4.9%.

As a result of the Acquisition of the Company by Granaria
Industries B.V.  from the Trust as of February 24, 1998,
which was accounted for as a purchase, the Company's
results of operations and financial position for periods
after February 24, 1998 are not comparable to prior

Due to the differences in the asset bases, it is preferable
to compare EBITDA rather than operating income. EBITDA
increased from $28.0 million in the three months ended May
31, 1997 to $30.1 million for the same period in 1998 or

The Company generated cash from operations in the second
quarter of 1998 despite the net loss of $9.3 million.
EBITDA of $30.1 was sufficient to cover interest payments
of $7.1 million and capital expenditures of $9.1 million.

EMERGENT GROUP: Announces $200 Million Bank Line Facility
Emergent Group, Inc. (Nasdaq/NM: EMER) announced that it has
obtained a new, three-year, $200 million bank line facility,
agented by The CIT Group/Business Credit, Inc., to support its
mortgage loan origination growth. This facility replaces
the prior  one-year facility which matured on June 30 and contains
no minimum net worth or  leverage ratio requirements.

"The Company is encouraged with monthly progress in reducing costs
and increasing cash flow," according to Jack Sterling, the
Company's Chief Executive Officer. "The decision in April to sell
whole loans for cash instead of securitizing such loans
contributed to cash flow improvements in May and June. The Company
is developing several initiatives in its process flow to increase
the percentage of leads converted to closed loans, and expects
this to  contribute to higher loan origination activity for the
third quarter of 1998."

The Company is continuing to seek additional efficiencies and
expense reductions to lower its operating losses and return to
profitability. "Although the benefit of our recently announced
reductions to overhead totaling $3 million per quarter will not be
evident until July, general and administrative expenses are down
in both May and June, and these improvements are expected to  
continue," stated Kevin J. Mast, the Company's Chief Financial
Officer. The Company anticipates announcing its earnings for the
second quarter at the end of July or early August.

Emergent Group, Inc. is a diversified financial services
company headquartered in Greenville, South Carolina, which
specializes in non-prime first- and second-lien residential
mortgage loans; loans to small businesses partially
guaranteed by the U.S. Small Business Administration;
asset-based  loans to small businesses secured by inventory
and accounts receivable;  mezzanine-level financing to
small businesses with equity kickers; and  management of a
venture capital fund. Emergent currently has approximately
1,100 employees and operates in 42 states.

EQUITEX: First TeleServices Merges With Equitex
First TeleServices Corp., an Orlando financial services
company, announced plans to merge with Colorado-based
Equitex Inc. Equitex will issue 625,000 shares of stock in
exchange for all of the shares of First TeleServices.

The merger is subject to a negotiation of a definitive
agreement and board approval.

FPA Medical Management Inc., the financially troubled
manager of physician practices, said Monday that it has
hired a new chief financial officer and entered advanced
negotiations to obtain additional financing.

The San Diego-based company said it has named Thomas J.
Allison as new chief financial officer, replacing Douglas
Kerner. FPA Medical said Kerner left to pursue other

FPA Medical said it currently has no intentions to seek
Chapter 11 bankruptcy protection, although it might
consider a prepackaged Chapter 11 case later this year.
Recently, FPA Medical said it was behind on payments to
doctor groups in California, Nevada and Arizona. It also
said it had missed a $2.6 million interest payment owed to
debt holders.  In the first quarter ended March 31, FPA
lost $9.1 million, or 20 cents a share, on revenue of
$392.2 million.

Investors appeared pleased with the announcement of the new
CFO. In trading Monday, shares of FPA Medical were up 50
cents, or 53 percent, to $1.43 3/4 on the Nasdaq stock
market. (Orange County Register - 06/23/98)

FRUEHAUF TRAILER: Bankruptcy Information by Email
The New York City law firm of Camhy Karlinsky & Stein LLP
is using its website ( in the   
Fruehauf Trailer Corporation bankruptcy case to make
Fruehauf's proposed plan of reorganization available to the
many thousands of Fruehauf's creditors.

Notices of Fruehauf's October 1996 bankruptcy were mailed
to over 110,000 potential creditors.  Eventually, over $3.8
billion in claims were filed against Fruehauf.  Under
Fruehauf's plan, a relatively small number of secured  
creditors and tax authorities will receive almost all of
Fruehauf's assets, leaving assets presently valued at just
over $1 million to be distributed among  the many thousands
of Fruehauf's unsecured creditors.  "The large number of  
claimants means that printing and mailing Fruehauf's
plan documents would be  very expensive and would consume a
significant part of Fruehauf's assets to be  distributed to
unsecured creditors," says Attorney David Neier.  

Delaware Bankruptcy Judge Peter J. Walsh has already
allowed Fruehauf to  eliminate sending notice of its
proposed plan by mail to the thousands of  Fruehauf's
stockholders and instead to publish notices in various
newspapers.  Fruehauf's stock was listed on the New York
Stock Exchange and was widely held. Under Fruehauf's plan,
Fruehauf's stock will be canceled and stockholders will  
receive nothing.

So as to allow all of Fruehauf's potential creditors to
gain some knowledge of Fruehauf's plan, Camhy Karlinsky &
Stein LLP has agreed to what is believed to be a first; the
distribution of bankruptcy plan documents
from a law firm  website,  Just recently,
one page notices that were mailed to over 8,000 creditors
who filed claims with the Delaware bankruptcy court and  
whose claims have not yet been ruled upon by the
court included information to  access the full set of
Fruehauf's plan documents from the World Wide Web.   People
who cannot access the Web can order the full set of
Fruehauf's plan  documents from Ikon/Knight Rider in
Delaware for a fee of $12 plus postage.

GALAXY FOODS: First Annual Profit Since 1991
Galaxy Foods Co. posted its first annual profit since
relocating to Orlando from Pennsylvania in 1991.
The maker of healthy cheese and other dairy-related
products earned $377,523 for the fiscal year ended March
31, compared with a loss of $2.7 million the year before.
Meanwhile, total sales jumped 20 percent to $20.6 million.

Galaxy Foods President Angelo Morini expects the company to
gradually increase sales and profits over the coming

GEOTEK: CEO Steps Down
Geotek Communications, Inc. (NASDAQ: GOTK) (Pacific: GEO),
a provider of mobile logistics systems, today announced
that Yaron I. Eitan has stepped down as Chief Executive
Officer  of the Company and resigned from its Board of

Anne E. Eisele, Geotek's Chief Financial Officer, also has
been named Chief Administrative Officer.  Separately, the
Company announced the departure of Michael McCoy, Executive
Vice President and Chief Operating Officer, and Dr. George
Calhoun, Senior Vice President of Strategic Marketing. Dr.
Calhoun will remain on the Company's Board of Directors
with William Spier, Chairman, Richard T. Liebhaber and
Richard Krants.

HEARTPORT INC: S&P Affirms Ratings
Standard & Poor's affirmed its single-'B' corporate credit
and bank loan ratings on Heartport Inc.  Additionally,
Standard & Poor's affirmed its triple-'C'-plus rating on
Heartport's $86.25 million 7.25% convertible subordinated
notes due 2004.

The outlook has been revised to developing from positive.     
The ratings on Heartport Inc. are affirmed reflecting
uncertainty regarding the acceptance of Heartport's
instruments, weak financial results, and narrow  product
offerings that are subject to changes in technology.

It remains uncertain as to whether Heartport's devices  
will gain widespread acceptance by the surgical community
over the longer-term.   Additional market entry of
competing devices might also impact pricing going forward.

    Still, Heartport is advantaged by being the first
company to develop supplies for minimally invasive heart
surgery for arrested hearts.  The company's weak financial
performance, expectations for continued losses and  
continued cash needs dominate its credit profile.

HONDO OIL: Reports Status of Listing and Reserves
Hondo Oil & Gas Company announced that its shares will no
longer be traded on the American  Stock Exchange as the
Company has withdrawn its appeal of the Exchange's  
delisting decision.  Instead, its shares have begun trading
over-the-counter on  the electronic bulletin board under
the symbol 3HOGL.  

In April 1998 the Company announced that the rate of
decline in production from its Opon No. 3 and Opon No. 4
gas wells in Colombia had been higher than expected during
the first five months of production.  Recent testing of the  
wells is complete.  An analysis of the test results by the
Company's  independent reserve engineers has concluded that
it will become uneconomic (operating costs will exceed
operating revenues) to produce the wells before the end of
fiscal 1998 and that the drilling of additional wells would
be uneconomic (net profit over the life of a new well would
be less than the cost to drill it).  

The Company is considering its available alternatives in
light of its current financial situation, which may
include, among others, negotiation with the Company's
existing creditors, dissolution of the Company, or a filing
under  the applicable bankruptcy law.

Industrial Imaging Corporation reports to the SEC that on
June 1, 1998, the company engaged BDO Seidman, LLP as its
new independent auditors for the company's fiscal year
ending March 31, 1998.

During the Fiscal 1995, Six Months 1996, Fiscal 1997 and
the subsequent interim periods, the Registrant did not
consult with BDO on items which involved (i) the
application of accounting principles to a specified
transaction, either completed or proposed, (ii) the type of
audit opinion that might be rendered on the Registrant's
financial statements, or (iii) the subject matter of a
disagreement or event set forth in Item 304(a)(1)(iv) of
Regulation S-B.

LEVITZ FURNITURE: Seeks Extension for Filing Form 10K                     
Levitz Furniture Incorporated (OTC-BB: LVFIQ), and its
wholly owned subsidiary, Levitz Furniture Corporation
announced today they had reached an agreement with the
lenders under their credit agreement with respect to the
terms of an amendment to that agreement, which will permit
LFI and Levitz to remain in compliance with the agreement.

The amendment will be submitted for approval by the Courtin
Levitz' Chapter XI reorganization case. Because the failure
to obtain such an amendment would have a material impact on
their financial statements, and Court approval cannot be
obtained in time for the  timely filing of their 1998
Annual Reports on Form 10-K, LFI and Levitz today  filed a
Form 12b-25 with the Securities and Exchange Commission
requesting a 15- day extension for the filing of those
Annual Reports.

LFI and Levitz believe the Court will approve the amendment
but no assurances can be given as to such approval or its

MTL, CHEMICAL LEAMAN: Ratings Put on S&PWatch Negative
Standard & Poor's today placed its ratings of MTL Inc. and
Chemical Leaman Corp. on CreditWatch with negative

The CreditWatch placement follows MTL's announcement that
it intends to acquire Chemical Leaman in a largely debt-
financed transaction for approximately $257 million,
including assumed Chemical Leaman debt.  The merger should
improve the company's competitive position, but will cause
the company's financial profile to deteriorate at least in
the near term. Pro forma for the transaction, MTL will
become the largest stainless steel tank truck company in  
North America with combined revenues of approximately $654
million in 1997.   For both companies, the merger
diversifies the tank truck customer base and should provide
cost savings and asset productivity improvements from
greater  lane density and backhaul opportunities.  The
merger also expands MTL's product  offering into additional
high-margin (tank cleaning) and rapidly growing,  
noncapital-intensive businesses (logistics and
freight brokerage).

MTL's debt leverage will increase significantly.  Total
debt is estimated to rise to about $440 million.  The
heightened debt level would cause total debt to earnings
before interest, taxes, depreciation, and amortization  
(EBITDA) to elevate initially to about 5.8 times (x) and
EBITDA interest coverage to weaken to about 2.0x before
consideration of potential cost savings  and adjustments
for nonrecurring charges totaling $20 million of EBITDA per  
year. If initial estimated cost savings are achieved
without ad verse surprises (such as unexpected customer
leakage) and industry conditions remain stable, MTL's
credit ratios could be restored to premerger levels.
In this case, total debt to EBITDA could fall to about 5.0x
and the EBITDA interest coverage run rate could rise to
about 2.2x.

MARINELAND OCEANARIUM: Bankruptcy Judge to Choose Buyer
A bankruptcy judge is scheduled to choose today between
four competing offers for 140 acres of resort property
surrounding the Marineland oceanarium, land that includes
hotels, a campground, marina and restaurant.

Each of the four bidders has pledged to help restore the
struggling, 10-acre oceanarium. Reviving the rundown resort
facilities is considered crucial to the  survival of the
60-year-old attraction, which has its own financial

The separately owned companion resort property has
attracted an unexpected amount of attention because of its
prime oceanfront and interior acreage. (Florida Times Union

MOBILEMEDIA: Arch Closes Financing Deal
Should it choose to act on an acquisition of MobileMedia
Corp., Arch Communications Group Inc. [APGR] now
has the financial flexibility to do so.  Arch has completed
a refinancing program that "positions Arch to participate
in ongoing industry consolidation,"  said Executive Vice
President Roy Pottle, the company's chief financial  
officer.  Arch, the third-largest U.S. paging operator in
terms of subscribers served, was identified by MobileMedia
a week ago as one of a number of potential suitors.
MobileMedia, also a major player in the domestic paging  
market, is seeking to emerge from Chapter 11 federal
bankruptcy status.

The refinancing takes the form of a new $400 million bank
credit facility; a  $25 million private placement of
convertible preferred stock; and the issuance of $130
million in senior notes.  The 10-year notes, issued by
wholly-owned subsidiary USA Mobile Communications Inc. II,
will pay interest at the rate of 12.75 percent.  The
subsidiary has been renamed Arch Communications Inc.

Chairman and CEO Ed Baker Jr. called the refinancing "a
tremendous step forward."  Among other things, it means the
elimination of $156 million of near- term amortization that
Arch was facing as a result of the USA Mobile acquisition,
completed three years ago.

NEW YORK FASHION: Files For Chapter 11 Protection
New York Fashion Organization Inc., a statewide chain of
upscale women's apparel boutiques, has filed for protection
under Chapter 11 of the U.S. bankruptcy code.

NYFO, a six-store chain that opened its first store in
1978, NYFO filed with the bankruptcy court in Norfolk on
June 24, reporting $670,000 of assets and $427,518.18 in

Chapter 11 entitles owners Sheldon and Susan Isenberg to a
spell of breathing room from its 85 to 90 creditors,   
clothing vendors, manufacturers  and jewelry suppliers  
while they design a reorganization plan, and a way to pay
creditors all or a portion of what they owe.

Local NYFO shops are at 222 W. 21st St., Norfolk, and
LaPromenade Shopping Center, Virginia Beach.  The others
are in Fredericksburg, Midlothian and two in Richmond.

Sheldon Isenberg attributed the problems to a
miscalculation in merchandising. He stressed that he plans
to keep all of the area stores open, retain all 30
employees and leave their benefit plans intact.
(Virginian Pilot Ledger Star-06/30/98)

NIKE: Reports Revenues and Earnings For Fourth Quarter
NIKE, Inc. (NYSE: NKE)reported revenues and earnings for
the Company's fourth quarter and fiscal year  ended May 31,
1998.  Fourth quarter revenues were $2.31 billion, down 3
percent from $2.37 billion last year.  Fourth quarter net
loss was $67.7 million or $0.23 per diluted share, which
includes a pre-tax restructuring charge of $129.9 million,
or $79.5 million after taxes, or $0.27 per diluted share.   
Excluding the restructuring charge, the Company's net
income was $11.8 million or $0.04 per diluted share,
compared to $155.8 million, or $0.52 per diluted  share in
the prior year.

For the fiscal year ended May 31, 1998, revenues increased
4 percent to a record $9.6 billion, compared to $9.2
billion in fiscal 1997. Including the charge, full year net
income totaled $399.6 million or $1.35 per diluted share.
Exclusive of the charge, net income decreased 40 percent to
$479.1 million or $1.62 per diluted share compared to
$795.8 million or $2.68 per diluted share.

Fourth quarter fiscal 1998 earnings were reduced by a
restructuring charge of $129.9 million.  The restructuring
charge relates to the Company's plans to better align its
overall cost structure and organization with planned
revenue levels.  

PIONEER OIL: To Implement Chapter 11 Plan
Pioneer Oil and Gas Co., a tiny exploration firm based in
Salt Lake City, has received U.S. Bankruptcy Court
permission to seek creditor approval for its proposed
Chapter 11 reorganization plan.

The company, whose shares are traded over-the-counter and
quoted on NASDAQ's  bulletin board system, says the plan
will allow it to pay off all of its creditors for
approximately $300,000.  Pioneer, however, does not yet
have the $300,000.  "We have several alternatives for
raising the money," says Pioneer's president, Don J.

He said the company will be seeking help from its existing
stockholders, who will be offered additional shares in the
company.  It can also try to get debt financing or sell
some of its assets, which include interest in 30 stripper
wells in Wyoming, Colorado and Utah. Stripper wells produce
under 10 barrels of oil a day.  Pioneer filed for Chapter
11 protection in February 1997, a month after a California
jury ordered it to pay Unocal Corp. of El Segundo $563,158
in a dispute over cleanup costs at a drilling site.

The company said it was forced to seek bankruptcy
protection because of the award and because Unocal was
seeking an additional $2 million to clean up oil- filled
sump pits at the site in Santa Maria, Calif.  The Utah
company contended the sumps, which are oil-filled World War
II era reserve pits buried under 8 feet of fill, were not
disclosed by Mobil when the property was sold to Pioneer in

"The major creditor, Unocal, which holds over two-thirds of
the dollar amount, has agreed to the plan," says Colton,
who noted the company will no longer be involved in
litigation concerning the California property. (Salt Lake
Tribune; 06/30/98)

RBX CORPORATION: Reaches Agreement With Banks
RBX Corporation, a major manufacturer of closed cell rubber
foam and mixed rubber compounds, announced today that it
has reached agreement with its banks to waive and revise
certain loan covenants through year-end.

RBX expects its current revolving credit facility, cash
flow from operations and asset sale proceeds to provide
adequate liquidity to satisfy all of its current cash flow

Separately, the company announced that is has reorganized
RBX Corporation top management into an "Office of the
President." The company announced a series of actions to
offset recent poor performance at its Conover operation.

These actions include replacement of the Conover operations
manager and initiation of manufacturing process and
efficiency improvement measures including headcount
reductions. Upon the successful implementation of these
initiatives, RBX management expects the Conover plant to
exceed breakeven prior to year-end. In addition, the
company has underway the sale of certain company non-core
assets which will generate approximately $8 million in cash
proceeds. Further headcount reductions of a least 125
employees will occur at company operations other than

Frank Roland, president of RBX Corporation, commented on
the company's new initiatives by adding: "These short term
objectives will be followed by market and product
management changes aimed at maximizing RBX Corporation's
position as the country's leading producer of closed cell
foam products."

RELIANCE ACCEPTANCE: Court OK's Wallace Sanders
The court authorized Reliance to retain Wallace Sanders &
Co. as its public auditors after striking a provision from
the proposed order that sought to force the subprime
lender's former auditors to turn over their work papers to
Wallace Sanders. Reliance argued that Wallace Sanders needs
access to the audit work papers of the company's prior
auditors, KPMG Peat Marwick LLP. KPMG argued that the
request "goes far beyond the professional standards
regarding an auditor's duty to provide access to its
work papers to a successor auditor."

STROUDS: Reports Its First Quarter Results                 
Strouds, Inc. (Nasdaq:STRO) reported sales and net earnings
for the thirteen weeks ended May 30, 1998 compared with the
corresponding period a year ago.

For the thirteen week period ended May 30, 1998, the
Company had a net loss of $596,000, or $0.07 per basic and
diluted share, compared with a net loss of  $2,999,000, or
$0.35 per basic and diluted share, for the same thirteen
week period last year. Net sales for the first quarter were
$55,015,000 compared with $50,451,000 for the corresponding
period a year ago. Comparable stores sales increased for
the first quarter by approximately 8.4%.

Charles Chinni, President and Chief Executive Officer,
commented, "Our sales growth momentum continued during the
first quarter as we continue to  refine our merchandise
content in our stores.  May comparable sales growth was  
the strongest in 4 years.  We are optimistic about our
restructuring efforts and continued improvement."

Strouds is a specialty retailer of bed, bath, tabletop and
other home textiles products in the United States.  At May
30, 1998, the Company operated 66 stores in five states.

SUNBEAM: Maybe the 1997 Statements Were Off
According to a report in The Wall Street Journal on July 1,
1998 Sunbeam Corp. admits that 1997 financial statement
audited by Arthur Andersen LLP may not be accurate, and
"should not be relied on."

Deloitte & Touche has now joined the team to review the
reports. The review is focusing on the company's "bill and
hold" practice.  It isn't clear whether Sunbeam followed
proper accounting methods for recording those sales.  
Sunbeam's booking of sale s has been challenged in
shareholder suits filed against the company in recent
months. The matter is also the subject of an informal
investigation by the SEC.

The company claims that it it continuing negotiations with
bankers, seeking waivers on covenants on $1.7 billion in
loans that faced default on June 30 in light of the
expected second-quarter loss.  Sunbeam is also expected to
make an exchange offer for Coleman Co.

Standard & Poor's today placed its double-'B'-minus
corporate credit and bank loan ratings, and single-'B'
subordinated debt rating of Young Broadcasting Inc. on
CreditWatch with "developing"  implications.  This follows
Young Broadcasting's June 29, 1998 announcement  that it
will explore strategic alternatives for the company,
including a merger  or sale of the company, to maximize
shareholder value. Developing implications  mean that the
ratings may be either raised or lowered. Standard & Poor's
will  resolve the CreditWatch listing following company
actions.  Ratings will  reflect the capital structure of
the merged or surviving entity.

ZENITH: Secures New Financing
Zenith Electronics Corporation entered into a $125 million
secured credit agreement with a banking group led by
Citicorp.  The agreement amends the company's existing
Citicorp facilities and provides increased borrowing
capacity to help fund Zenith's working capital  
requirements through year-end 1998.

The increased availability under the amended Citicorp
credit agreement supplements $45 million of financing
provided earlier this year by Zenith's largest stockholder
and creditor, LG Electronics Inc. (LGE).  LGE has
extended  Zenith's right to borrow under such financing
through Dec. 31, 1998.

Zenith President and CEO Jeffrey P. Gannon said, "Our
amended credit agreement, combined with the continuing
strong support of LGE, provides needed financial
flexibility as we implement our major financial and
operational restructuring."

In May, Zenith announced plans to restructure its debt
through a prepackaged plan of reorganization later this
year.  The company intends to file a registration statement
related to the restructuring with the Securities and
Exchange Commission shortly.


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