TCR_Public/980713.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
      
       Monday, July 13, 1998, Vol. 2, No. 135
                    
                  Headlines

CANADIAN RED CROSS: To Seek Bankruptcy
CAJUN ELECTRIC: SWEPCO Asks For Stay of Ruling
CONNECTIVITY TECHNOLOGIES: Will Not Meet Credit Repayment
DOW CORNING: Dow Chemical Dismissed From Lawsuits
FRUEHAUF TRAILER: Files Monthly Operating Report

KIA: Mazda Thinking of Joint Bid with Ford
L.LURIA: Resignation of Liquidating Agent
LEVITZ FURNITURE: Proposed Lease in Phoenix
LEVITZ FURNITURE: Seeks To Pay $100,000 Fee To Amend DIP
LIBERTY HOUSE: Seeks Nod For Employee Retention Plan

LONG JOHN SILVER'S: Applies to Retain Professionals
MANHATTAN BAGEL: Seeks Extension of Exclusivity
MARINELAND: Court Approves Sale of Land
MOBILEMEDIA: Pinnacle Towers Announces Sale-Leaseback
MOLTEN METAL: Notice of Last Date to File Claims

MOUNTAIN BOARD SPORTS: Files for Bankruptcy
NIAGRA MOHAWK: 20,546,264 Shares Offered
POWER DESIGNS: Applies to Hire McGladrey & Pullen
R&S STRAUSS: Meeting of Creditors Set for July 24, 1998
ULTRAFEM: Sale to Akcess Pacific Group Approved

VTX ELECTRONICS: Reports 70% Decrease in Sales
WESTERN PACIFIC: Converted to Chapter 7

                  *********


CANADIAN RED CROSS: To Seek Bankruptcy
--------------------------------------
The Canadian Red Cross said Thursday it is taking steps to  
file for bankruptcy protection because of anticipated
lawsuits by victims of a tainted-blood debacle.

Red Cross Secretary General, Pierre Duplessis said the
agency is not actually bankrupt, but is considering
applying under the Companies Creditors Arrangement Act to
protect its assets from anticipated lawsuits.

"It's not to avoid our responsibility in any way," he said.
"The Red Cross is committed to assisting victims and it
will try to do anything that is possible."

The Red Cross has faced severe financial difficulties
because of the tainted- blood scandal, including close to
$3.5 billion in liabilities from people who contracted
hepatitis C during the 1980s and early 1990s.

   
CAJUN ELECTRIC: SWEPCO Asks For Stay of Ruling
----------------------------------------------
Southwestern Electric Power Company and a committee of
seven electric distribution cooperatives today asked a  
federal appeals court to stay a ruling that disqualified
their reorganization plan for Cajun Electric Power
Cooperative.  In their emergency motion, filed at the 5th
United States Circuit Court of Appeals, SWEPCO
and the committee also asked for expedited consideration of
their appeal and sought a stay of the bankruptcy
proceedings pending the appeal.

On June 26, the District Court denied an emergency motion
by SWEPCO and the committee to stay the ruling pending
their appeal.  The next step for SWEPCO and the committee
is the 5th Circuit Court of Appeals.

"We steadfastly maintain that we have the right to share
expenses with the committee," said SWEPCO President Mike
Madison.  "We have worked closely with the committee for
three years to jointly propose and pursue a plan of  
reorganization that we believe offers the best balance of
significant value to Cajun's creditors and the lowest
electric rates for the co-ops and their customers.  The
parties supporting the disqualification are the ones who
stand to gain the most because they support the competing
plans," Madison said.


CONNECTIVITY TECHNOLOGIES: Will Not Meet Credit Repayment
---------------------------------------------------------
In its Current Report on Form 8-K filed with the Securities
and Exchange Commission on June 30, 1998, Connectivity
Technologies Inc. referred to the provisions of its amended
secured credit agreement requiring the elimination by July
10th of an overadvance position of approximately $5 million
and the repayment of the outstanding balance of the
entire credit facility amounting to approximately $17.7
million by July 31st.

The company does not believe it meet either of those
deadlines, it is in continuing discussions with its lenders
to obtain a forbearance agreement.

The lenders have informally indicated that they will not
declare a  default on the expiration of the July 10 or the
July 31 deadlines while discussions are proceeding in a
manner satisfactory to the lenders.


DOW CORNING: Dow Chemical Dismissed From Lawsuits
-------------------------------------------------
The California Supreme Court today affirmed  
decisions by two lower courts dismissing The Dow Chemical
Company from all silicone breast implant lawsuits in that
state. The six to one vote upholds decisions by a San Diego
trial court (1994) and the California Court of  Appeal
(1996) and affects 1,800 cases against the company.

In its ruling, the supreme court concluded that while, "The
Dow Chemical Company conducted and reported silicone
toxicology research for Dow Corning Corporation, any risk
of physical harm to plaintiffs from negligent performance  
of that undertaking was unforeseeable." And, therefore the
court found Dow  Chemical owed no duty to breast implant
plaintiffs.

John Scriven, Dow Chemical vice president and general
counsel said, "We are delighted with the decision not only
because it is consistent with a growing recognition in the
courts that science, the facts and the law do not support  
plaintiffs' claims in implant cases, but also due to the
timeliness of the decision. The court's action today can
only serve to facilitate the resolution  of breast implant
claims in the Dow Corning bankruptcy reorganization
process."

To date, courts have dismissed Dow Chemical from more than
4,000 cases nationwide finding no basis for holding the
company liable. In its ruling the California Supreme Court
noted that "Dow Chemical has never made or sold
any  silicone gel breast implants ... moreover,  1/8it 3/8
conducted no tests with respect to the safety of the actual
breast implants Dow Corning
marketed."

Silicone breast implants were products of Dow Corning
Corporation, in which Dow Chemical and Corning Incorporated
each are 50-percent stockholders.


FRUEHAUF TRAILER: Files Monthly Operating Report
------------------------------------------------
Fruehauf Trailer Corporation filed a form 8K with the SEC,
detailing its monthly operations for May, 1998.
The company reported a net loss of $245,000 for the month
ending May 31, 1998.

The Debtor continues to receive invoices for services
rendered and/or goods received for the period subsequent to
filing bankruptcy and prior to the Asset Sale (between
October 8, 1996 and April 16, 1997).  In addition, the
Debtor continues to receive various refunds of monies from
tax authorities and other entities, albeit at de minimus
amounts.

A full-text copy of the filing is available via the
Internet at:
     http://www.sec.gov/Archives/edgar/0000874268-98-
000010.txt


KIA: Mazda Thinking of Joint Bid with Ford
------------------------------------------
Mazda Motor Corp. said Friday it was considering joining  
parent Ford Motor Co. in a bid for South Korea's failed Kia
Motors Corp.

Ford and Mazda already jointly hold a 16.9 percent slice of
Kia. Ford owns 33.4 percent of Mazda.  Mazda also said it
was in negotiations with Kia to recover outstanding  
credits it made to the Korean firm. The company also said
it had set aside an "appropriate" amount of reserves  
at the end of the last business year to cover latent losses
on its shareholding in Kia. It would not comment on any
possible changes in Kia's capitalization.

On Monday Kia's main creditor bank, the Korea Development
Bank, said bidding for Kia and a sister firm, Asia Motors,
would formally open July 15.

Kia officials said Ford wanted to take part indirectly in
Kia's management after the deal while maintaining the Kia
brand name. (Reuters: Financial - 07/10/98)


L.LURIA: Resignation of Liquidating Agent
-----------------------------------------
Pursuant to the terms of the Liquidating Plan of the
debtor, L.Luria & Son, Inc., Zahn Associates, Inc. gives
notice of its resignation from the position Liquidating
Agent. James Feltman, a member of Arthur Andersen has
accepted the designation as the Successor Liquidating Agent
under the same terms and conditions as the Liquidating
Agent as set forth in the Confirmed Plan, subject to
Bankruptcy Court approval.


LEVITZ FURNITURE: Proposed Lease in Phoenix
-------------------------------------------
The Debtors move the Court for entry of an order
authorizing Levitz Furniture Company of the Midwest, Inc.,
to enter into a lease agreement with John F. Long
Properties, Inc.  The Debtors propose to lease 65,000
square feet of retail space at the Desert Sky Esplanade
Shopping Center in Phoenix, Arizona.  This new store will
replace another store on which the Debtors' lease will
expire by its own term in October 1998.  The Debtors remind
the Court that their business plan calls for maintaining
Levitz' presence in the Phoenix/Scottsdale trading area.  

The Lease requires annual $250,000 rental payments.  The
initial term is 10 years, and the Debtors have three
renewal options.  Long has agreed to reimburse the Debtors
up to $180,000 for improvement costs.  Levitz and Long
project a March 1999 opening.  

The Lease Agreement contains Levitz' agreement that, should
the Company's chapter 11 cases be converted to liquidation
proceedings under chapter 7, the Lease terminates
immediately and automatically. (Levitz Bankruptcy News 8-
July-98)


LEVITZ FURNITURE: Seeks To Pay $100,000 Fee To Amend DIP
-----------------------------------------------------------
The Debtors have sought and obtained interim authority to
pay a $100,000 fee to BT Commercial Corporation in
consideration of an amendment relaxing the EBITDA covenants
set forth in the $260,000,000 DIP Credit Agreement
previously approved by the Court.  

Judge Farnan has directed that any objections to the
Debtors' payment of the Amendment Fee must be filed and
received by Debtors' counsel by 4:00 p.m. on July 9, 1998.  
In the event that no objection is interposed, the Court
will grant final authority to the Debtors to pay the fee at
4:01 p.m. on July 9.  

In the event an objection is interposed in this matter, the
Court will hold a hearing on July 10 to consider entry of a
final order authorizing payment of the Amendment Fee.
(Levitz Bankruptcy News 8-July-98)


LIBERTY HOUSE: Seeks Nod For Employee Retention Plan
---------------------------------------------------
Liberty House Inc. has asked the court to approve an
employee retention plan for about 170 key employees at an
estimated cost of just under $150,000 per month. The
chapter 11 filing, the recruitment of employees by
competitors, and competition from the mainland for
technology savvy employees is contributing to an "unusual
level of attrition," the Hawaiian retailer told the court.

Liberty House's work force has declined from 4,511 to 3,407
since December 1997. "Hiring new employees will involve
relocation expenses and executive search fees. If
recruiting efforts require an effort to attract candidates
currently living on the mainland, associated relocation
expenses can be substantial," Liberty House said. A hearing
on the proposed retention and severance plan is set for
July 23. (The Daily Bankruptcy Review Copyright c July
10, 1998 - ABI 10-July-98)


LONG JOHN SILVER'S: Applies to Retain Professionals
---------------------------------------------------
The debtors, Long John Silver's Restaurants, Inc. applied
for an order authorizing the employment and retention of
Gilbert W. Sanborn as management consultant to the debtors
and an application for an order authorizing the employment
of Donaldson, Lufkin & Jenrette Securities Corporation
as investment bankers for the debtors.

The association of Long John Silver's Franchisees filed an
objection to each application.

A hearing to consider the entry of an order will held on
July 13, 1998.


MANHATTAN BAGEL: Seeks Extension of Exclusivity
-----------------------------------------------
Manhattan Bagel Company, Inc. and I. & J. Bagel, Inc., seek
an extension of the debtors' exclusive time to file a plan
and solicit acceptances of such plan. A hearing on the
motion will be held on July 27, 1998.

The debtors state that they have made significant advances
in administering their Chapter 11 cases since the date of
the prior application.  They have had discussions with
investors and the committee regarding a plan. An important
element in the discussions with the Committee regarding the
Investor's proposal and a plan has been the unsecured
creditors' claims base that will be entitled to participate
in the proceeds generated by various offers being
considered by the debtors.

Many issues remain to be resolved in this case, and the
debtors state that it is evident that they are involved in
a large and complicated Chapter 11 case.  The debtors seek
an extension of 120 days for the time period to exclusively
file a plan and an extension of 120 days to solicit
acceptances for such plan.


MARINELAND: Court Approves Sale of Land
---------------------------------------
Last week the bankruptcy court approved the sale of 140
acres of property surrounding Marineland of Florida to the
San Francisco-based Trust for Public Land, according to
Bond Buyer. This could be beneficial to bondholders facing
a potential default of the Florida theme park. The park's
revenues back $9.7 million of mortgage revenue bonds sold
in 1996.

Marineland recently technically defaulted on its
bonds because tit took $300,000 from reserves to pay
investors, and it is struggling to raise money for a
payment due September 1. The money for the surrounding
property could be used to pay the September 1 interest
payment, and the Foundation has authorized the
Marineland Foundation to operate a restaurant and gift shop
at the attraction, which could generate revenue for debt
service. Wild fires in recent months have also caused low
attendance at the park. (ABI 10-July-98)


MOBILEMEDIA: Pinnacle Towers Announces Sale-Leaseback
-----------------------------------------------------  
Pending U.S. Bankruptcy Court approval, MobileMedia will
sell Pinnacle Towers Inc. 163 transmission towers for $170
million in cash. MobileMedia then will lease back antenna
space on the towers for an initial 15-year period, at an
annual cost of $10.7 million.  Ft. Lee, N.J.-based
MobileMedia said it will continue to own and make use of
approximately 700 transmitters as well as antennas and
other  equipment on the towers covered by the Pinnacle
agreement.

"We believe this transaction will facilitate our  
attempts to reach a consensual plan of reorganization with
our creditors and the completion of our Chapter 11
proceeding," said Joseph Bondi, the turnaround  specialist
brought in to help oversee MobileMedia's restructuring.
(Copyright Phillips Publishing, Inc. Wireless Today-
07/09/98)


MOLTEN METAL: Notice of Last Date to File Claims
------------------------------------------------
The bankruptcy court set a bar date of September 1, 1998 in
the Chapter 11 cases of Molten Metal Technology Inc. and
its affiliates.


MOUNTAIN BOARD SPORTS: Files for Bankruptcy
-------------------------------------------
Mountain Board Sports, a Colorado Springs upstart trying to
hatch the summer equivalent of snow boarding, has filed for
bankruptcy. The 2-year-old company filed for Chapter 11
protection June 19, seeking breathing room for a
reorganization.

Founder Patrick McConnell said the boot-strapped operation
was the victim of rapid growth and poor cash flow.
"We were at a critical crossroads where we either had the
money to build boards or to pay our bills," he said. "We've
got more orders than we've got money."

The company's creation, the Mountain Board, is like an all-
terrain skateboard that couples big, knobby tires with a
suspension and large platform to allow riders to go on dirt
roads and even grassy ski slopes in the off season.

The invention, which was chosen as The Denver Business
Journal's Most Innovative product in 1996, has gained a
following among die-hard snowboarders. However, Mountain
Board Sports continues to shoulder the burden of  
introducing the activity to retailers and consumers, as
well as trying to woo ski areas to add the wheeled boards
to their stable of summer activities. Mountain Board Sports
hopes to reorganize with a new management team and a  
new round of investment.  The company listed less than
$50,000 in both assets and liens in a brief bankruptcy
filing. (Denver Business Journal-06/26/98)


NIAGRA MOHAWK: 20,546,264 Shares Offered
----------------------------------------
Niagra Mohawk Power Corporation filed a Prospectus with the
SEC announcing that 20,546,264 shares of common stock, par
value $1.00 per share of Niagara Mohawk Power Corporation,
a New York corporation being offered are being sold by the
shareholders of the Company.

A full-text copy of the filing is available via the
Internet at: http://www.sec.gov/Archives/edgar/
0000891836-98-000472.txt


POWER DESIGNS: Applies to Hire McGladrey & Pullen
-------------------------------------------------
Power Designs, Inc. and PDIXF Acquisition Corp., debtors,
applied for an order authorizing the debtor to employ an
accountant, McGladrey & Pullen LLP, nunc pro tunc to June
22, 1998.

The accounting firm requests a retainer in the amount of
$17,500. prior to the commencement of the audit and the
balance due upon the issuance of the opinion. The firm also
requests a retainer of $5,000 prior to preparing the
federal and state tax returns. The firm will bill for its
services at its standard hourly rates, and the firm
estimates that the total services to be rendered to the
debtors shall not exceed $60,000.


R&S STRAUSS: Meeting of Creditors Set for July 24, 1998
-------------------------------------------------------
The debtors, R&S Strauss, Inc., WSR Corporation, National
Automotive Stores, Inc. and National Auto Stores Corp.
filed a Notice of Commencement of Cases under Chapter 11 of
the Bankruptcy Code.

A meeting of creditors is scheduled for July 24, 1998 at
10:30 a.m. at the J. Caleb Boggs Federal Building,
Wilmington, Delaware.  

Co-counsel for the debtors are Paul R. DeFilippo and
Geralidine Ponton, of Gibbons, Del Deo, Dolan, Griffinger &
Vecchione, Newark, N.J. and Laura Davis Jones, Robert S.
Brady, Joel A. Waite, and Vicotria Watson Counihan of Young
Conaway Stargatt & Taylor, LLP, Wilmington, Delaware.


ULTRAFEM: Sale to Akcess Pacific Group Approved
-----------------------------------------------
Ultrafem, Inc. announced that on June 26, 1998, Judge
Prudence Carter Beatty, signed an order approving the sale
of substantially all of the assets of Ultrafem to Akcess
Pacific  Group, LLC, a California limited liability
company.  

Ultrafem filed a voluntary petition for relief under
Chapter 11 on April 1, 1998.  Subsequently, the Creditors'
Committee, co-chaired by Bozell Worldwide, Inc. and BSMG
Worldwide, Inc., hired the investment banking firm of
Houlihan Lokey Howard & Zukin Capital in May 1998 to assist
the Creditors' Committee in the sale of Ultrafem's assets.  

Ms. Joy V. Jones announced her resignation from the Board
of Directors effective July 17, 1998.  In addition to Ms.
Jones, another member of the Ultrafem Board, Martin
Nussbaum, announced his resignation effective July 17,
1998.  Officers of the Company, Dori M. Reap, Senior Vice
President of Finance and Administration and Tonya Hinch,
Senior Vice President of Marketing & Sales, will also leave
Ultrafem on  July 17, 1998.

    
VTX ELECTRONICS: Reports 70% Decrease in Sales
----------------------------------------------
Net sales for the quarter ended September 30, 1997
decreased $5,440,000 or 70.2% to $2,304,000 compared to
$7,744,000 for the quarter ended September 30, 1996.  The
decrease is a result of the Company focusing on
manufacturing sales only since filing Chapter 11 (Note 1).  
The prior year quarter ended September 30, 1996 included
approximately $4,485,000 of distributions sales.  

Gross profit for the quarter ended September 30, 1997
decreased $1,549,000 or 87.6% to $219,000 from $1,768,000
for the quarter ended September 30, 1996.

The Company has been granted an extension from its current
lender of its facility until July 31, 1998.  The
uncertainty as to the Company's ability to raise additional
capital or secure adequate long-term financing and sustain
profitable operations raises substantial doubt about the
Company's ability to continue as a going concern.


WESTERN PACIFIC: Converted to Chapter 7
---------------------------------------
Judge Sidney B. Brooks entered an order converting the case
of Western Pacific Airlines, Inc. from a Chapter 11 case to
a case under Chapter 7. The conversion is effective as of
July 6, 1998.  A meeting of creditors is scheduled for
August 5, 1998 at 3:00 p.m. at the U.S. Customs house, 721
19th Street, Rm. 125 Denver, Colorado.

                  *********

The Meetings, Conferences and Seminars column appears
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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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