TCR_Public/980714.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, July 14, 1998, Vol. 2, No. 136

ADVANTICA RESTAURANT: Registers Offer and Sale of Stock
APRIA HEALTHCARE: Reports Stock Ownership
APRIA HEALTHCARE: Expected To Switch to Deloitte & Touche
CGE: Bondholder Plan Resurrects Facility By 1999
CML GROUP: Lenders Extend Term of Credit Facility

CAJUN ELECTRIC: 5th Circuit Grants Request to Stay Ruling
CARIBBEAN CIGAR: Unable to File Report
COLUMBIA/HCA HEALTHCARE: $300 Million Bond Issue for Sub
CONSOLIDATED STAINLESS: Seeks to Hire Phoenix Management
DEBBIE REYNOLDS HOTEL: Auction Set for August 5

EMERGENT GROUP: Announces Name Change
GRAND UNION: Court Approves Closing on $172 Million DIP
HOOD LUMBER: Plan Confirmed Providing Sale of Assets
INTERGRAM: Collapses and Files for Chapter 7
LIBERTY HOUSE: 8-1/2 Month Exclusivity Bid Attacked

LYNX GOLF: Announces Notice of Default on Bridge Loan
MAINE INVESTMENTS: Restructuring Appears to Rescue  
MARVEL ENTERTAINMENT: Trustee Seeks to Reject Licenses
MEGO MORTGAGE: Reports Stock Ownership
NAL FINANCIAL: Unit Emerges from Chapter 11

NORD RESOURCES: Stock Ownership Reported
PETRIE RETAIL: Turns Over Pension Plan to PBGC
PRESIDENT CASINOS: Results for the Quarter Ended May 31
SIZZLER INTERNATIONAL: Stock Ownership Reported
SUNBEAM CORPORATION: No Financial Tests Until December

TIE COMMUNICATIONS: Convergent Proposes Purchase
VITALE: 6 Foodtowns Will Close

Meetings, Conferences and Seminars


ADVANTICA RESTAURANT: Registers Offer and Sale of Stock
Advantica Restaurant Group Inc. filed a Form S-8A with the
SEC, registering the offer and sale of an aggregate of
4,888,888 shares of Advantica Restaurant Group, Inc. $.01
par value common stock pursuant to the Advantica  
Restaurant Group Stock Option Plan and the Advantica  
Restaurant Group Officer Stock Option Plan.  

APRIA HEALTHCARE: Reports Stock Ownership
Capital Guardian Trust Company, a bank, is deemed to be the
beneficial owner of 4,757,600 shares of common stock of
Apria Healthcare Group Inc. or 9.2% of the 51,517,000
shares of Common Stock believed to be outstanding as a
result of its serving as the investment manager of various
institutional accounts.

APRIA HEALTHCARE: Expected To Switch to Deloitte & Touche
According to an article in The Wall Street Journal on July
13, 1998, it is expected that Apria Healthcare Group Inc.
will announce its intention to hire Deloitte & Touche,
replacing Ernst & Young as its outside auditor.  The
company has decided to switch auditors in an effort to have
a fresh set of eyes reviewing the company.

Stephen J. Trafton, one of three new directors nominated to
Apria's board last month changed his mind about serving in
that role. His decision was based on personal reasons, and
he stated that it did not have anything to do with the
prospects for the company.

CGE: Bondholder Plan Resurrects Facility By 1999
CGE FORD HEIGHTS LLC (X.CFH) - U.S. Bank Trust N.A., the
indenture trustee for CGE's bondholders, filed a
reorganization plan that calls for the revesting of assets
in CGE's waste tire-to-energy plant and projects $812,500
in revenue from the facility's first year of operations.
The indenture trustee's business plan provides continued
mothballing of the company's Ford Heights, Ill., facility
until an agreement can be reached to supply tire-derived
fuel to a utility or industrial company. (Federal Filings
Inc. 10-July-98)

CML GROUP: Lenders Extend Term of Credit Facility
CML Group, Inc. announced that its lenders have agreed to
extend the term of its revolving credit facility through
July 13, 1998. The Company is negotiating with its lenders
and other potential financing sources to extend a revolving  
credit facility beyond the current expiration date and to
increase the amount of the facility. In the event the
Company does not obtain additional financing, it may be
forced to substantially curtail its business operations
or to seek  protection under the insolvency laws.

CML is a marketer of products for consumers that enhance
healthy, active lifestyles. Its products are sold under the
trade names NordicTrack, Nordic Advantage and Smith &

CAJUN ELECTRIC: 5th Circuit Grants Request to Stay Ruling
The United States 5th Circuit Court of Appeals has granted
a request by Southwestern Electric Power Company and a  
committee of seven electric distribution cooperatives to
stay a ruling that disqualified their reorganization plan
for Cajun Electric Power Cooperative.  The 5th Circuit also
granted a stay of the bankruptcy proceedings pending
the appeal and ordered expedited consideration of the

SWEPCO and the committee filed their motion with the 5th
Circuit on July 9. It was granted on July 10. The 5th
Circuit set oral arguments on the appeal for Aug. 4, 1998,
in New Orleans and said in its order that "a decision will
be rendered, if at all possible, shortly thereafter."

"We are extremely pleased with the decision to grant our
request and the promptness with which the court responded,"
said SWEPCO President Mike Madison.   "We believe the
District Court was wrong in overturning the original  
Bankruptcy Court ruling in our favor."

John Sharp, attorney for the committee, said, "The 5th
Circuit's order comes at a crucial point when the
Bankruptcy Court is on the verge of a confirmation
decision, but was prohibited by the District Court from  
considering our joint plan. We now have the opportunity to
argue our appeal in a timely manner and, if successful,
have our plan once again considered on its merits by the
Bankruptcy Court."

SWEPCO and the committee of cooperatives have been co-plan
proponents since they filed their joint reorganization plan
in April 1996.  SWEPCO and the committee also are co-
plaintiffs in litigation regarding a central issue in the
bankruptcy case whether a competing plan supported by  the
Cajun Electric trustee can force the cooperatives to buy
power for 25 years under the nonconsensual arrangements
contained in that plan.

In a June 16 ruling and a June 19 order, the District Court
in Baton Rouge disagreed with the detailed findings and
conclusions of the Bankruptcy Court and reversed that
court's order.  The District Court's ruling immediately
disqualified the reorganization plan proposed by SWEPCO and
the committee and ordered the cooperatives to return their
portions of the expense assistance to SWEPCO. The co-ops
have returned the funds.

On June 26, the District Court denied an emergency motion
by SWEPCO and the committee to stay the ruling pending
their appeal. SWEPCO and the committee then took their
request for a stay and expedited appeal to the 5th

The three bidders are seeking to acquire Cajun's non-
nuclear assets and provide long-term wholesale electric
power to Cajun's member distribution cooperatives.

CARIBBEAN CIGAR: Unable to File Report
Caribbean Cigar Co. reported to the SEC that the Company is
unable to file its report on Form 10-KSB within 90 days
of the Company's fiscal year ended March 31, 1998, because
the Company's former accountants, Grant Thornton LLP, have
not completed their field work related to the inclusion in
form 10-KSB of their opinion on the financial statements
for the fiscal years ended March 31, 1996 and March 31,

Certain revisions of the Company's financial statements
were necessary due to the Company's retail division being
treated as discontinued operations. The Company requires
additional time so that the Company's former accountants,
Grant Thornton LLP, can complete its audit and issue its
report on the financial statements to be included in the
report on Form 10-KSB.

COLUMBIA/HCA HEALTHCARE: $300 Million Bond Issue for Sub
Columbia-HealthOne, the joint venture that owns six high-
profile Denver-area hospitals, plans to restructure its
finances, thanks to a $300 million bond issue.

The move will give the joint venture's Tennessee-based
parent, beleaguered Columbia/HCA Healthcare Corp., a big
cash payoff. The restructuring also is intended to
dramatically reduce interest payments for the partnership.

Columbia-HealthOne now pays interest on its debt to  
Columbia/HCA, with payments determined on a floating basis.
Columbia/HCA sets the rate according to the joint venture's
financial performance, said Richard Anderson, chairman of
the Columbia-HealthOne board. Although the rate has not  
been disclosed, many people think it has soared as high as
16 percent.

Because it gets half the joint venture's profits,
Columbia/HCA doesn't have to charge as much interest when
revenues are healthy. If the numbers aren't up to snuff,
the company hikes the rate, according to health-care
industry sources.

The interest payments are currently costing the company
about $1.5 million per month, a burden Columbia-HealthOne
may be able to ease substantially by selling its $300
million debt to investors.

In selling an estimated $300 million worth of bonds
to banks or insurance companies, Columbia/HCA could raise a
lot of cash. Although it may not get as big an interest
payment, Columbia/HCA will still collect half the  
profits from the joint venture.

Columbia-HealthOne's Denver-area hospitals have taken steps
to distance themselves from the parent company's scandals.
The hospitals recently dropped the Columbia name and
returned to the HealthOne designation in an attempt to  
recover some local identity. (Denver Business Journal -

CONSOLIDATED STAINLESS: Seeks to Hire Phoenix Management
Consolidated Stainless, Inc. is seeking court authorization
to hire Phoenix Management Services, Inc. as the debtor's
turnaround management consultant. The debtor has chosen
Phoenix due to its experience, and the fact that the firm
is familiar with the debtor's operations as a result of
providing management consulting services to the debtor over
the past several weeks.  Phoenix is seeking a success fee
of $75,000 if the debtor emerges from bankruptcy based upon
confirmation of a final plan of reorganization.  The
current standard hourly rate for Vincent J. Colistra, the
person designated to work on the debtor's case, is $245.

The debtor is seeking authority to employ Phoenix to assist
the debtor with developing a business plan and with
formulating a plan of reorganization.  Phoenix will also
analyze and determine the optimum structure of the company
post-bankruptcy; develop a financial model to assist in the
analysis; determine the amount of projected cash available
for the restructured debt service of the debtor; conduct
meetings with prospective equity investors for the purpose
of obtaining letters of credit and commitment letters and
assist in negotiations with the debtors' constituents.

DEBBIE REYNOLDS HOTEL: Auction Set for August 5
Debbie Reynolds Hotel & Casino Inc. will go under the
auctioneer's hammer Aug. 5, following the collapse of two
offers to bring the Las Vegas hotel company out of

"There's no more time to fool around," said Todd Fisher,
chief executive and son of the hotel's namesake, actress
Debbie Reynolds. Fisher said he stopped drawing his salary.

Shareholders aren't likely to get anything at all, unless
the property sells for "a huge amount of money," he said.

Last month, with its money running out, the hotel fired 46
employees, leaving just 22 to operate its 193 rooms and a
500-seat showroom.

EMERGENT GROUP: Announces Name Change
Emergent Group Inc.  (EGI) is announced that effective July
1, 1998, the name of the Company changed to HomeGold
Financial, Inc.(TM) In conjunction with the name  
change, the Company's stock will now be traded under the
ticker symbol HGFN.

In April of 1996, the Company began its retail strategies
of originating mortgage loans under the name HomeGold(R).

HomeGold Financial, Inc.(TM) is a diversified financial
services company headquartered in Greenville, South
Carolina, which originates, services and sells residential
mortgage loans and small business loans. The company
makes  substantially all of its loans to borrowers who have
limited access to credit or who may be considered credit-
impaired by conventional lending standards.  HomeGold
Financial, Inc. is traded on the NASDAQ national
market under the  symbol HGFN.

GRAND UNION: Court Approves Closing on $172 Million DIP
In a hearing in U.S. Bankruptcy Court in Newark, N.J.,
Judge Novalyn L. Winfield approved an order allowing
The Grand Union Company to close on a $172 million
debtor-in-possession (DIP) credit facility being provided
by Swiss Bank and Lehman Commercial Paper Inc.  

The credit facility, which was completed later in the day,
replaces similar financing that had been held by a
syndicate of banks led by Bankers Trust Co.  The new DIP
credit facility is consistent with Grand Union's  
previously announced plan of reorganization.

Grand Union currently operates 222 retail food stores in
six Northeastern states.

HOOD LUMBER: Plan Confirmed Providing Sale of Assets
The United States Bankruptcy Court for the District of
Oregon, with Judge Polly S. Higdon presiding, has confirmed  
Hood Lumber's Plan of Reorganization.  The Plan provides
for the sale of substantially all of the assets of Hood
Lumber to Dimeling, Schreiber & Park a Philadelphia
investment company with business interests throughout
the United  States and Quality Veneer & Lumber, Inc. for
approximately $20 million.

The operating assets of Hood Lumber consist of the
following Oregon companies:  Hanel Lumber Co.  1/8Hood
River 3/8 and Young & Morgan Lumber 1/8Lyons 3/8.

Quality Veneer & Lumber, Inc.  1/8"QVL" 3/8 is a new
company, with headquarters in Seattle, Washington.  QVL has
been formed by several businessmen with extensive
experience in the wood products industry.  QVL will  
invest in wood products companies, acquiring and
modernizing mills and related facilities in several Pacific
Northwest communities.

INTERGRAM: Collapses and Files for Chapter 7
Intergram Corp., a once-promising telecom startup, has
collapsed and filed for liquidating bankruptcy.  The
company, funded primarily with local venture capital, had
plans to deploy a global telecommunications service, but
failed to meet the expectations of key investors.

Intergram had few employees and had already closed its
doors when it filed for Chapter 7 bankruptcy July 1.
Intergram had raised $15 million in funding from venture
capitalists, according to a survey by Price Waterhouse.
Among the largest investors were Telecom Partners, an
Englewood venture fund specializing in telecommunications  
startups, and Centennial Funds, the state's largest venture

Reportedly, Silicon Valley Bank, a large secured creditor,
emptied Intergram's bank account fearing the company's
collapse, and causing the bankruptcy. The company listed
debt between $1 million and $10 million, and similarly,
Intergram's assets were valued between $1 million and $10
million. Burnett said the more than 100 creditors may
receive some payment if assets such as Intergram's fax
technology are sold by the trustee. (Denver Business

LIBERTY HOUSE: 8-1/2 Month Exclusivity Bid Attacked
Liberty House Inc.'s request for an eight-and-a-half month
exclusivity extension was ridiculed by the retailer's
lenders who said they "are prepared to file a confirmable
plan which will resolve any reason why Liberty House should
remain in chapter 11." The lenders, led by Bank of America,
said a 60-day extension "is more than ample to determine if
a consensual plan can be proposed and, if not, the Lenders
and other parties in interest should no longer be precluded
from proposing a plan that resolves the only reason
why Liberty House must remain in chapter 11." (Federal
Filings Inc. 10-July-98)

LYNX GOLF: Announces Notice of Default on Bridge Loan
Lynx Golf, Inc. announced that it received a notice of
default under the terms of a bridge loan with Union
Planters Bank of St. Louis, Missouri.  The bridge
loan was originally made in February of this year and as of
June 15, 1998 had approximately  $3,400,000 outstanding.  
On June 17, 1998, the Company announced that it was out of
compliance with, and not likely to meet in the future,
minimum financial covenant requirements of the bridge loan
and the Company requested and received  temporary waivers
with respect to such violations.  The temporary waivers of  
default granted to the Company by Union Planters
expired on July 6, 1998.

The Company continues its discussions with various vendors
and creditors, seeking their cooperation with respect to
outstanding payables, and is engaged in discussions with a
variety of potential financing sources, both with respect  
to satisfying the Company's existing obligations as well as
providing adequate  capital for the Company's ongoing and
future operations. There can be no assurance that the
Company will be successful in its negotiations with such  
vendors and/or creditors, or in attracting additional
capital to satisfy these  obligations or to provide for its
ongoing operations.  As previously indicated, in the event
that the Company is unsuccessful in these efforts, it may
be required to seek protection from creditors under federal
bankruptcy laws.

In addition, the Company announced management and other
changes effective immediately.  Specifically, the Company
announced that David Schaefer, formerly the Company's
President, is no longer employed by the Company and has
ceased to be a member of the Board of Directors.  
Christopher Barclay of Bruno, Mack & Barclay, a management
consulting firm located in San Diego, California, has  
been charged with management of the day-to-day operations
of the Company.

The Company also announced that G. Louis Graziadio, III,
the Company's former Chairman, and Jeffrey Silverstein, a
director of the Company since inception, have been
appointed to serve as Co-Chairmen of the Board.  The Board  
of Directors remains committed to the Company's efforts to
recapitalize and restructure the Company.

MAINE INVESTMENTS: Restructuring Appears to Rescue  
The final major hurdle for a restructuring to rescue Maine
Investments, the former Skellerup Group, was cleared with
the conversion of $77 million of bonds into an 11 percent
equity stake in Viking Pacific Holdings.

Dennis Church, chief manager corporate trusts at Guardian
Trust, trustee for Skellerup Finance bondholders, told
bondholders in a letter the conversion had been completed
"soon after we were formally advised by Maine that an
agreement between it, Vermont Investments Ltd. and the bank
syndicate on the terms on which the banks' debt will be
restructured has been approved by the banks' credit

Vermont is the company through which the funds controlled
by United States investment bank Goldman Sachs holds its
investment in the troubled group.

A bondholders meeting called by the trustee has been
cancelled.  As part of the agreement Vermont has the option
of raising $15 million new equity in the next nine months
to pay back debt, with the syndicate of seven  banks
agreeing to write off an equal amount of their loans. The
capital raising is expected to be by way of a rights issue.
- Supplied by New Zealand Press Association- EveningPost-

MARVEL ENTERTAINMENT: Trustee Seeks to Reject Licenses
Marvel Chapter 11 Trustee John Gibbons is seeking approval
to reject two expired license agreements relating to the
right to use Marvel's Spider-Man character in live-action
movies. Calling the Spider-Man character the "crown jewel"
of Marvel's intellectual property portfolio, Gibbons
asserted that the ability to fully exploit the Spider-Man
rights is important to the success of the reorganized
company. "Nevertheless, meritless claims to Marvel's
intellectual property have impeded Marvel from exploiting
this significant asset for many years," he noted. (Federal
Filings Inc. 10-July-98)

MEGO MORTGAGE: Reports Stock Ownership
City National Bank of West Virginia reports beneficial
ownership of 6,666,667 shares of the Common Stock,  $0.01
par value per share of Mego Mortgage Corporation in a
Schedule 13D filed with the SEC.  The stock represents
17.91% of the class.  Pursuant to the Preferred  Stock  
Purchase Agreement between the bank and Mego, the Bank
purchased  10,000  shares of Mego's Series A  Preferred  
Stock. The Preferred Shares are nonvoting shares which may
be converted into shares of Common Stock on or after  
December  15,  1998,  and  which  will be converted  
automatically into Common Shares on June 18,  2000.

Mego has granted the Bank an immediately exercisable  
option to  purchase up to 6,666,667 shares of Mego's  
Common Stock at $1.50 per share.  As a result of receiving
the Option, the Bank acquired beneficial ownership of
6,666,667 shares of Mego's Common Stock.  The total
consideration paid by the Bank to Mego pursuant to the
Purchase Agreement was $10,000,000.

NAL FINANCIAL: Unit Emerges from Chapter 11
NAL Financial Group Inc. announced Friday that it is in a
position to file a reorganization plan that permits its NAL
Acceptance Corp. unit to continue servicing more than $180
million in loan portfolios and emerge from bankruptcy
protection as a servicing company in the non-prime auto
market, according to a newswire report. NAL, which filed
chapter 11 in March, expects confirmation before September
30. It has sold certain assets at a bankruptcy auction,
pursuant to its plan. Under the plan, the company's major
shareholder and one of its lenders will make additional
investments in NAL Acceptance in the form of equity and
working capital lines, in return for ownership of all the
stock in NAL Acceptance. (ABI 13-July-98)

NORD RESOURCES: Stock Ownership Reported
A schedule 13D was filed with the SEC, reporting that Jean-
Raymond Boulle, and MIL Investments, SA, beneficially own
6,230,100 shares of common stock of Nord Resources Corp. or
28.44% of the class.

Mr. J.R. Boulle is the indirect beneficial owner of
approximately 40% of America Mineral Fields Inc., a
Canadian corporation listed on the Toronto Stock Exchange
that is currently engaged in preliminary discussions
relating to a business combination involving Nord and AMF.
Mr. Boulle is also a member of the Advisory Board of AMF.
As of the date hereof, to the best knowledge of the
reporting person, no formal proposal has been made by
either AMF or Nord, nor have AMF and Nord reached any
agreement on the basis for a possible transaction. While
there can be no assurance that a proposal will actually be
made, Mr. Boulle expects to be involved in the formulation
of any proposal and, if it is made, to support the same.
MIL is not a participant in any of the aforementioned

PETRIE RETAIL: Turns Over Pension Plan to PBGC
Petrie Retail Inc. of Secaucus, N.J., will turn over its
pension plan to the Pension Benefit Guaranty Corp., PBGC
officials said. Assuming control of the retail chain's
pension plan will protect about 5,600 workers and retirees.
The chain's pension was underfunded by almost $14 million,
PBGC officials said.

PRESIDENT CASINOS: Results for the Quarter Ended May 31
President Casinos, Inc. (Nasdaq: PREZ) announced
results of operations for the first quarter ended May 31,

The Company reported a net loss of $5.7 million, or $1.14
per share, for the first quarter ended May 31, 1998,
compared to a net loss of $2.9 million, or $0.57 per share,
for the first quarter ended May 31, 1997. Revenues for the
first quarter ended May 31, 1998 were $52.0 million,
compared to revenues of $46.1 million for the first quarter
ended May 31, 1997.

For the first quarter ended May 31, 1998, President Casinos
had earnings before interest, taxes, depreciation and
amortization (EBITDA) of $3.0 million, compared to $4.3
million in the prior year.  For the first quarter ended May  
31, 1998, EBITDA from casino and hotel operations, was $7.0
million compared to $6.0 million in the prior year.

President's St. Louis riverboat casino was closed for 26
days after its  vessel, the "Admiral," was damaged and, as
a result, reported EBITDA of $0.7  million as compared with
$2.6 million for the prior year.  Also, the Company  
incurred increased development costs of $2.1 million,
primarily attributable to its pursuit of a New York gaming

SIZZLER INTERNATIONAL: Stock Ownership Reported
Capital Guardian Trust Company, a bank, is deemed to be the
beneficial owner of 2,299,800 shares or 8.0% of the
28,851,000 shares of Common Stock of Sizzler International
Inc., believed to be outstanding as a result of its serving
as the investment manager of various institutional

SUNBEAM CORPORATION: No Financial Tests Until December
Sunbeam Corporation (NYSE: SOC) today announced that its
bank lenders will not require Sunbeam to comply with
financial tests in its bank credit agreement until December
31, 1998, giving Sunbeam's new management team time to
complete a full business review and develop a new operating
plan. The banks have also agreed to give Sunbeam continued
access to its revolving credit facility.

The three lenders are Morgan Stanley Senior Funding, Bank
of America, and First Union. The credit agreement provides
for an $800 million 7-year term loan, a $500 million 8.5
year term loan and a $400 million 7-year revolving credit
facility, all of which are secured by certain assets of
Sunbeam and its subsidiaries including Sunbeam's stock
interest in The Coleman Company, Inc.  Sunbeam currently
has approximately $1.4 billion in outstanding debt and
approximately $300 million of availability under the credit

The bank credit agreement would normally require Sunbeam to
meet certain financial tests at the end of each quarter.
The Company did not meet these tests as of June 30, 1998
because of its anticipated loss for the second quarter.

"Although Sunbeam has significant near-term issues to work
through, we believe the underlying business is sound," said
Jerry W. Levin, Sunbeam's Chief Executive Officer. "We are
very pleased that our lenders are giving us the time we
need to assess the situation and get the Company on track
and moving in the right direction. We have the ability to
draw down on our revolver and have also taken steps to
reduce working capital requirements, which will enable us
to continue to remain current on our obligations to
suppliers and vendors.  Liquidity will not be an issue. We
are working closely with our customers and have been
encouraged by their response. Although customer inventories
must be worked down, Sunbeam has strong brands and consumer
takeaway is up over last year."

TIE COMMUNICATIONS: Convergent Proposes Purchase
Convergent Communications Inc. of Denver is proposing to
buy substantially all the assets of financially strapped
Tie Communications Inc. for $40 million in cash.  
Convergent also has pledged to retain at least 90 percent
of Overland Park, Kan.-based Tie's employees and to assume
its long-distance contracts with MCI, Mitel, Northern
Telecom and other providers.

Tie has asked for a July 20 hearing date so the sale can
close by the end of July.

"The fact of the matter is, we find this offer to be
acceptable at the minimum threshold level. We're
comfortable with it and we intend to take it,"  
said Bill Brandt, a Chicago-based consultant retained by

TIE owes its primary secured lender, NationsBank, $14
million and has unsecured trade debt totaling $11 million
to about 3,000 creditors. It also owes about $3.5 million
in taxes.

One of the biggest independent distributors of business
telephone systems in the United States, Tie also resells
long-distance service. Before the Chapter 11 filing, it had
about 700 employees in 20 regional offices nationwide,  
including 120 in Overland Park. It laid off 135 employees
shortly after the filing.

Terms of the proposed sale call for Convergent to receive a
$1.5 million breakup fee in the event Tie receives a better
offer for its assets. The agreement with Convergent defines
such an offer as exceeding Convergent's offer by at least
$4 million in cash.  In justifying the breakup fee,
Convergent says its bid is actually worth more than $70
million. It notes that it will assume long-distance
contracts that, if rejected, could expose Tie to damage
claims exceeding $30 million.

Founded 27 years ago in Connecticut as a maker of business  
telecommunications equipment, Tie was the first company to
sell phones combining intercom and paging capabilities and
the first to sell digital phone systems. In the 1980s, it
fell on hard times as telecommunications equipment  
makers flooded the market.(Denver Business Journal -

VITALE: 6 Foodtowns Will Close
Six North Jersey Foodtown supermarkets will close within
two weeks, five to be converted into A&P stores and the
sixth likely to become a greengrocer-delicatessen. The fate
of the stores' 500 employees is uncertain.

The stores' future was decided Thursday at U. S. Bankruptcy
Court in  Newark, eight months after Vitale Foodtown Inc.
of Old Tappan, which owns the  stores, filed for Chapter 11
protection. A&P, which will pay $12.25 million for  the
stores in Old Tappan, Washington Township, Dumont, Hoboken,
and Belleville, was the lone bidder.

Prime Locations Inc., a Westchester County, N.Y.-based real
estate broker, made the lone bid for the sixth Vitale
store, in River Edge, on behalf of Sunshine Farms, a
family-owned food retailer.

The Vitale family was also expected to bid on the property,
but did not after a $250,000 minimum was established. An
attorney representing the court- appointed administrator
said the Vitales had planned to bid $200,000.

The status of the collective bargaining agreement between
Vitale Foodtown and Local 1262 of the United Food and
Commercial Workers is pending.

An attorney for the union asked that the issue be addressed
before the sale to A&P was finalized, but Judge William F.
Tuohey ruled that the union contract was not material to
Thursday's hearing.  "I'm not trying to minimize
{concern for} the workers," he said. "But that's for
another court on another day."

Tuohey said Vitale was selling certain assets only, not the
entire business, so the union contract was not part of the
deal. He set a hearing for July 23 to address the issue.

Once the deal is signed, the stores will be converted to
A&Ps. During that time, A&P also is expected to finish
major renovations and expansion on the stores in Washington
Township and Dumont. The Dumont store has been shut for  
nearly a year. The work in both stores had been on hold
because of Vitale's financial problems.

Union officials said they hope their workers will be hired
when A&P takes over the stores, and that they will not lose
benefits earned while working for Vitale Foodtown. About
400 members of Local 1262 work at the Vitale Foodtowns,  
while about 100 meat, fish, and deli workers are members of
Local 464 of the same union.(Record New Jersey - 07/10/98)

Meetings, Conferences and Seminars
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 9-10, 1998
      Conference on Corporate Restructurings: Asia
      Indonesia * Thailand * South Korea
         The Radisson Empire Hotel, New York, New York
            Contact: 1-903-592-5169 or   

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, 1999
      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.  


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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