TCR_Public/980716.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 16, 1998, Vol. 2, No. 138
APS: Blackstone Agrees to Cap Monthly Fee at $750,000
APS: Monthly Operating Report
ANCHOR GLASS: Files Quarterly Report with SEC
BRAUNS FASHIONS: Files Quarterly Report with SEC
CENDANT CORP: Reports Fictitious Revenues and Deceit

CROWN BOOKS: Files for Chapter 11 Protection
CROWN BOOKS: Case Summary & 20 Largest Creditors
DYNEX HOLDING: Credit Arrangement with AutoBond
JACKSON BROOK: Secures $850,000 Line of Credit
KIA: Officially for sale

LAMONTS APPAREL: Dismisses Pricewaterhouse Coopers LLP
LEE'S FAMOUS RECIPE: Files for Bankruptcy Protection
LEVITZ FURNITURE: Files Annual Report with SEC
LIBERTY HOUSE: Exclusivity Extended
MONTGOMERY WARD: John Workman leaves for U.S. Can

MOTORCAR PARTS: Annual Meeting Set for September 9
NANTUCKET INDUSTRIES: Files Quarterly Report
PETRIE RETAIL: Exclusivity Extended To August 13
SCOTT CABLE: Asset Sale Agreement with InterLink


APS: Blackstone Agrees to Cap Monthly Fee at $750,000
Marc Abrams, Esq., representing the Debtors, advised Judge
Walsh that Swiss Bank and Quantum Partners, represented by
Chaim Fortgang, Esq., raised objections to the Debtors'
proposal to employ and retain The Blackstone Group LLP.  

The Debtors immediately organized three-way discussions
with the Dissident Lenders and Blackstone.  Those
discussions culminated in Blackstone's agreement to cap its
$125,000 monthly fee at $750,000 in the aggregate.  
Blackstone expects to complete its work by mid-October,

Mr. Abrams related that shortly after Ms. Whyte arrived at
APS, it became obvious to her that the company would be
receiving unsolicited offers to purchase assets and offers
which could form the basis for a restructuring
proposal.  Ms. Whyte immediately began soliciting proposals
from investment advisory firms.  After hearing three
pitches, Ms. Whyte settled on Blackstone given their
chapter 11 expertise and reputation.  

Additionally, Mr. Abrams advised, Mr. Fortgang's clients
got Blackstone to agree that its Success Fee would not be
based on asset sales of less than $5,000,000.  

Judge Walsh stated that the Blackstone proposal falls well
within the range of reason; he is personally familiar with
Blackstone's reputation and expertise in many large chapter
11 cases; and the Debtors' engagement of Blackstone is
approved in all respects.

APS: Monthly Operating Report
For the month ending March 25, 1998, APS reports total
assets of 483,158,000, total liabilities of 477,882,000,
total liabilities and equity of 483,158,000, net sales of
53,663,000 and net income of (5,724,000).

ANCHOR GLASS: Files Quarterly Report with SEC
Anchor Glass Container Corporation filed its quarterly
report with the SEC.  Net sales for the 1998 first quarter
were $149.2 million, compared to net sales for the 1997
Period of approximately $94.1 million. The Company had a
net loss in the first quarter of 1998 of approximately $7.7
million as compared to a net loss of $6.0 million for
the 1997 Period.

BRAUNS FASHIONS: Files Quarterly Report with SEC
Net sales for the quarter ended May 30, 1998, were $25.0
million, an increase of 14% from $21.8 million for the
quarter ended May 31, 1997. The increase in sales was
attributable to a 9% increase in same-store sales combined
with an increase in the number of stores operated by the
Company. The Company operated 186 stores at May 30, 1998
compared to 170 at May 31, 1997.

Gross profit, was $8.7 million or 34.7% of net sales during
the first quarter of fiscal 1999 compared to $7.7 million
or 35.1% of net sales during the same period in fiscal

Net income for the quarter ended May 30, 1998 was $1.1
million or 4.3% of net sales compared to $1.0 million or
4.4% of net sales for the quarter ended May 31, 1997.

CENDANT CORP: Reports Fictitious Revenues and Deceit
Cendant Corp., said that its accounting problems are much
greater than originally thought and will hurt the company's  
earnings more than anticipated. The accounting problems
that took place at the former CUC International Inc.
included "accounting errors made with an intent  
to deceive" and "fictitious revenues," the company said. It
said the false entries affected all the major business
units of CUC. Cendant, a franchiser whose brands include
Century 21 real estate brokerages, Avis car rentals and  
Ramada hotels, saw its market value plunge by nearly half   
$14 billion when it first announced widespread accounting
problems in April. Cendant was created just last December
in the $11 billion merger of HFS and CUC.

CROWN BOOKS: Files for Chapter 11 Protection
Crown Books Corporation (Nasdaq: CRWN) announced that on
July 14, 1998, at approximately 4:00 p.m., the  
company and its wholly-owned subsidiaries, Super Crown
Books Corporation, Crown  Books East Corporation, Crown
Books West Corporation, Crown Books National  
Corporation, and Crown DHC Corporation, filed voluntary
petitions for relief under Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for
the District of Delaware.

The Board of Directors  signed a resolution authorizing
Zolfo Cooper LLC to be retained as financial advisors, and
the firm of Montgomery, McCracken, Walker & Rhoads, LLP to
be retained as special litigation and securities counsel.

According to an article in The Washington Post, most stores
are stocked at about 50 percent of capacity. Richfood's CEO
John E. Stokely said the company had tried to find an
appropriate buyer for the discount chain but was
unsuccessful. "We weren't able to generate any interest; we
felt like the best thing to do was give Crown a chance to
reorganize itself," he said.

CROWN BOOKS: Case Summary & 20 Largest Creditors

Debtor:  Crown Books Corporation
         3500 75th Avenue
         Landover, Maryland 20785

Super Crown Books Corporation, Crown Books East Corporation
Crown Books West Corporation, Crown Books National
Corporation, and Crown DHC Corporation are affiliated
debtors that also filed for Chapter 11 protection.

Type of business: Discount retailer specializing in the
sale of books and book-related products

Court: District of Delaware

Case No.: 98-1575   Filed: 07/14/98    Chapter: 11

Debtor's Counsel: James L. Patton, Jr.
                  Young Conaway Stargatt & Taylor LLP
                  11th Floor, RodneySquare North
                  P.O. Box 391
                  Wilmington, Delaware 19899-0391

Total Assets:              $130,387,000 (approximate)
Total Liabilities:         $100,525,000 (approximate)

No. of shares of common stock   5,612,611 Issued   Over 200  

20 Largest Unsecured Creditors:

   Name                              Amount
   ----                              ------         
Ingram Book Co.                 $10,095,266
Penguin USA                      $1,206,906
New American Library               $608,714
Bookazine Co., Inc.                $513,242
Publisher Resources                $396,951
Pocket Mass                        $380,230
Random House Value P               $254,188
Berkley Publishing                 $570,397
St. Martin's Press                 $358,031
Avon Books                         $385,284
Aramark Maryland New               $322,400
Random House Inc.                  $392,474
MacMillan Publishing               $810,793
Bantam/Doubleday/DEL               $242,903
Ballantine Mass                    $306,883
Simon & Schuster Harle             $233,465
General Publishing Group           $231,778
Workman Publishing Co.             $303,750
Innovative Alliance                $241,146
Book Sales, Inc.                   $243,587

DYNEX HOLDING: Credit Arrangement with AutoBond
Dynex Holding, Inc. and Dynes Capital, Inc. of Richmond, VA
Filed FORM 13D with the SEC reporting that the companies,
led by Dynex Holding, Inc., entered into a credit
arrangement with the Issuer, AutoBond Acceptance Corp of
Austin, Texas to provide funding for the production of
automobile loans originated by AutoBond. In connection
therewith, Dynex and Dynes entered into a stock option
agreement AutoBond.

The stock option expires 06-09-98, and the right to convert
into AutoBond common shares under the note expires

JACKSON BROOK: Secures $850,000 Line of Credit
Jackson Brook Institute has secured an $850,000 line of
credit from Fleet Bank. If the loan is approved by a
bankruptcy court judge, it will ensure that the psychiatric
hospital meets its payroll for the rest of this year.

The hospital faced a $386,000 shortfall this month, which
threatened its ability to cover Thursday's employee
paychecks and renewed fears that the hospital may not
survive until a buyer can be found.

State officials applauded the private-sector loan, which
they said is a vote of confidence for the beleaguered
hospital. Jackson Brook, a vital piece of the state's
mental-health-treatment network, filed in March for
protection from creditors under Chapter 11 of the U.S.
bankruptcy code.

"It's a good sign that they've moved into the private
credit market to shore themselves up, rather than turning
to the state," said Kevin Concannon, commissioner of the
state Department of Human Services.

The state covered the hospital's payroll when it declared
bankruptcy. State officials blamed the hospital's troubles
on its parent company, Community Care  Systems Inc. of
Massachusetts, saying the company siphoned money from the  
hospital to prop up other subsidiaries. The Fleet loan
makes it unnecessary for Jackson Brook to pursue a loan  
application it made with the Finance Authority of Maine,
David Hillman, a  spokesman for JBI, said at a news
conference Monday.  Maine Medical Center and Mercy Hospital
in Portland are considered to be potential buyers.
(Portland Press Herald; 07/14/98)            

KIA: Officially for sale
Creditor banks of Kia Motors Corp. put the bankrupt
automaker up for sale Wednesday, luring bidders with an
offer to increase its value by $810 million through a stock

Potential buyers can submit their bids between July 27 and
Aug. 21, and the successful bidder will be announced Sept.
1, said Korea Development Bank, Kia's  main creditor bank.

The state bank, which has nearly $1 billion in outstanding
loans to Kia,  said it and other creditors were also
considering writing off some of Kia's $6.7 billion debt.

The successful bidder must buy at least 51 percent of Kia's
equity through the auction, the state bank and Kia's
government-appointed head, Yoo Chong-yuel, told a news

Kia planned to ask 23 automakers, including 20 foreign car
makers, to submit bids. Daewoo Motors Co., South Korea's
second-largest auto company, said it will form a consortium
with industry leader Hyundai Motors Co. to bid for Kia.
Samsung Motors Co., South Korea's smallest and latest
entrant into the car industry, also has expressed interest
in acquiring Kia.  Another possible bidder is Ford Motor
Co. of the United States, which already owns l6.9 percent
of Kia.

LAMONTS APPAREL: Dismisses Pricewaterhouse Coopers LLP
Lamonts Apparel Inc. reports that on July 9, 1998 the
company dismissed PricewaterhouseCoopers LLP (PwC)as                
its independent accountants.

For the fiscal year ended February 1, 1997, PwC's report on
the consolidated financial statements contained an
unqualified opinion which included the following:

"The accompanying consolidated financial statements have
been prepared assuming that the Company will continue as a
going concern.  The Company has suffered recurring losses
from operations. As more fully described in Note 1, claims
substantially in excess of amounts reflected as liabilities
in the consolidated financial statements have been asserted
against the Company as a result of the reorganization
proceedings.  The validity of these claims, as well as the
amount and manner of payment of all valid claims, will
ultimately be determined by the Bankruptcy Court.  As a
result of the reorganization proceedings, the Company may
sell or otherwise realize assets and liquidate or
settle liabilities for amounts other than those reflected
in the consolidated financial statements.  Further, the
confirmation of a Plan or Reorganization could materially
change the amounts currently recorded in the consolidated
financial statements.  These matters raise substantial
doubt about the Company's ability to continue as a going
concern and recover the carrying amounts of its assets.  
Management's plans in regard to these matters are also
discussed in Note 1. The consolidated financial statements
do not include any adjustments that might result from the
outcome of these uncertainties."
The dismissal of PwC was approved by unanimous written
consent of the Board of Directors on July 1, 1998.

LEE'S FAMOUS RECIPE: Files for Bankruptcy Protection
The operator of six area Lee's Famous Recipe chicken
restaurants has filed bankruptcy reorganization after the
franchising company cut its supply lines.

Robert A. Goering, attorney for AJS Enterprises of
Cincinnati, said Wednesday that the company filed for
Chapter 11 bankruptcy protection last Thursday after Lee's
pulled its support in June. He said the local franchisee  
had fallen behind on payments.

AJS, which bought six area Lee's in November 1996, is
expected to emerge within six months in a "fast-track"
reorganization. It employs 109 people.

The company listed debts of $1.9 million and assets of
$985,181. (Cincinnati Enquirer - 07/09/98)

LEVITZ FURNITURE: Files Annual Report with SEC
Levitz Furniture Corporation filed its annual report, Form
10K with the SEC, for the fiscal year ended March 31, 1998.
A full-text copy of the filing is available via the
Internet at:

LIBERTY HOUSE: Exclusivity Extended
The U.S. Bankruptcy Court in Honolulu has extended Liberty
House Inc.'s exclusive period to file a reorganization
plan for 120 days, through Nov. 13.  The retailer, lenders,
and creditors' committee reached an agreement on the
shorter extension before Friday's hearing.  The Hawaiian
department store chain originally requested an extension to
March 31 to evaluate results from the holiday
season and deal with the effects of the Asian economic
crisis. (Federal Filings Inc. 14-July-98)

MONTGOMERY WARD: John Workman leaves for U.S. Can
U.S. Can Corporation (NYSE: USC) announced that John L.
Workman has been named executive vice president  
and chief financial officer reporting to Paul W. Jones,
chairman, president and CEO.  Workman joins U.S. Can from
Montgomery Ward Holding Corporation where he served most
recently as executive vice president and chief
restructuring  officer.  He will assume his new role
effective Aug. 10, 1998 and will be responsible for the
controller, treasurer, tax, internal audit, information
systems, financial planning and reporting and investor

MOTORCAR PARTS: Annual Meeting Set for September 9
Motorcar Parts & Accessories, Inc. announced that the 1998
Annual Meeting of Shareholders of Motorcar Parts &
Accessories,  Inc. will be held at The Penn Club, 30 West
44th Street,  New York,  New York, on Wednesday, September  
9, 1998 at 10:30 A.M.,  New York City time,  to consider
and act upon the following matters:

(1)   The election of seven directors;

(2)   The approval of a series of proposed  amendments to
the Company's  By-Laws

      (a)   Classify the Board of Directors into three  
classes,  each of which,
            after a transitional  arrangement,  will serve
for three years, with
            one class being elected each year;

      (b)   Provide  that  directors  may be removed only
for cause and only (i) with the  approval  of the holders
of at least 66 2/3% of the voting power of the then
outstanding shares of capital stock of the Company
entitled to vote  generally  in the  election of  
directors,  voting  together as a single class,  or (ii)
with the approval of a majority   of the entire Board of
Directors; and

      (c)   Provide that the  shareholder  vote  required
to amend or repeal the foregoing  provisions  of the  By-
Laws, or to adopt  any  provision inconsistent therewith,  
shall be 66 2/3% of the voting power of the Company
entitled to vote generally in the election of directors;

(3)   The approval of an amendment to the Company's 1994
Stock Option Plan;

(4)   The  ratification  and approval of the  appointment
of Richard A. Eisner & Company, LLP as the Company's  
independent certified public accountant for the fiscal year
ending March 31, 1999; and

NANTUCKET INDUSTRIES: Files Quarterly Report
Nantucket Industries Inc. filed a Quarterly Report for the
quarter ended May 30, 1998. Net sales for the quarter ended
May 30, 1998 decreased 33% from prior year levels to
$4,283,000; this includes net sales of GUESS? in the amount
of $1,992,000.The decline in the sales is directly related
to the phase-out of sales of Brittania product associated
with the actions announced by Levi's to dispose of the
Brittania brand. The Company has discontinued the GUESS?
product line as of the first quarter of the current fiscal
year, 1999.

Although the Company showed a net profit of $386,000 for
the current quarter,the Company has incurred significant
losses in recent years which have generally  resulted in
severe cash flow problems that have negatively impacted the
ability of the Company to conduct its business as presently

Gaithersburg-based Gene Logic Inc. agreed to buy
financially strapped Oncormed Inc., also of Gaithersburg,
in a stock swap valued at $38 million.

Oncormed (AMEX: ONM) has been seeking a buyer for months.
The company, which has never turned a profit, said in April
it only had enough cash to remain in business for a few

Oncormed studies how people's genetic makeup affects how
they may react to drugs and other medications. Gene Logic
(Nasdaq: GLGC) determines which genes are active during
disease and how to use the information to develop new

Gene Logic expects to eliminate about 20 of the 55 jobs at

PETRIE RETAIL: Exclusivity Extended To August 13
The court extended Petrie Retail Inc.'s exclusive periods
to file a reorganization plan and solicit plan acceptances
for approximately 30 days, to Aug. 13 and Oct. 14,
respectively. The court also authorized the apparel
retailer to file its joint plan without a disclosure
statement. Petrie, the creditors' committee, and
shareholder Warburg Pincus Ventures L.P. intend to jointly
propose a plan based on their December 1997 term sheet.
Among other things, the plan proposal is conditioned on the
sale of Petrie's G & G Shops Inc. unit. The company is
seeking approval to sell the junior apparel chain
to Pegasus Partners L.P., TGV Partners, and two G&G
executives for $132 million in cash and $28 million of
assumed debt, however, the proposed transaction has drawn
strong objections from the committee and the U.S. Trustee.
(The Daily Bankruptcy Review Copyright c July 15, 1998 -
ABI 15-July-1998)

SCOTT CABLE: Asset Sale Agreement with InterLink
On July 10, 1998, Scott Cable Communications, Inc.
Company entered into a definitive asset sale agreement with
InterLink Communications Partners, LLLP, providing for the
sale by the Company of all of its assets to InterLink for a
purchase price of $165, 000,000, subject to closing
adjustments. "The Sale Agreement provides for the
consummation of the sale to be effected through a pre-
packaged Chapter 11 bankruptcy proceeding and requires the
Company to commence that bankruptcy proceeding by
September 23, 1998.  

In connection therewith, the Company is preparing to
commence promptly the pre-bankruptcy solicitation process
with respect to its plan of reorganization.  Both that plan
of reorganization and the Sale Agreement contemplate that
all of the Company's trade creditors will be paid in full.  
The Company's plan of reorganization also contemplates
payment in full of the Company's obligations under its
senior credit facility and its Senior  Subordinated PIK
notes, but only partial payment of its Junior Subordinated
PIK  notes."

"The closing of the sale is expected to be consummated in
the fourth quarter of this year subject to, among other
things, the U.S. Bankruptcy Court's approval of the
proposed sale and the Court's confirmation of the  
Company's pre-packaged bankruptcy plan of regorganization,
the Federal Trade  Commission's grant of any necessary
approval under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, the Federal Communications Commission's
approval of the transfer of certain of the Company's
licenses, and the issuance  of consents or waivers by
various franchising authorities, real property  lessors and
other third parties." (States SEC; 07/14/98)


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