TCR_Public/980720.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 20, 1998, Vol. 2, No. 140
                    
                  Headlines

2CONNECT EXPRESS: Significant Developments During June
ANDOVER APPAREL: Reports Results of Operations
APRIA HEALTHCARE: Taps Deloitte & Touche
ARIZONA CHARLIE'S: Plan Confirmed On June 25, 1998
AUSTRALIS HOLDINGS: Keeping the Court Informed

BUILDERS TRANSPORT: Arthur Andersen Okayed for Committee
BUSTER BROWN: Expects $27M Exit Facility From Foothill
BUSTER BROWN: Second Amended Plan Confirmed
DOW CORNING: Claims Foreign Women Will Be Treated Fairly
ERNST HOME CENTER: Seeks Extension of Exclusivity

FORSTMANN: Notice of Annual Meeting of Shareholders
FRUEHAUF TRAILER: Seeks Exclusivity Extension To October 17
GOLF TRAINING: Director Resigns
GUY F. ATKINSON: Seeks OK To Sell ADCO To Pacific Networks
HAROLD'S FURNITURE: Judge OKs Credit For Customers

IOMEGA: Posts Second Quarter Loss; Signs Credit
LONG JOHN SILVER'S: Trustee Names Franchisee Panel
MAIDENFORM: Seeks Investment in Mexican Sewing Plant
MATEC CORPORATION: Announces Merger
MEGO MORTGAGE: Transactions Completed for Recapitalization

MEGO MORTGAGE: Filing a Late Quarterly Report
SIZZLER INTERNATIONAL: Annual Meeting Set for August 18

                  *********

2CONNECT EXPRESS: Significant Developments During June
------------------------------------------------------
For the Period Beginning May 31, 1998 and Ending July 4,
1998, 2Connect Express Inc. reports:

1.   On June 16, 1998 the Company reached a settlement with
its primary cellular service provider to compensate for
early termination of its contract. Under the settlement
agreement, all prepetition amounts owed (claim filed) the
service provider of approximately $148,000 were forgiven by
the creditor and an additional amount of $66,000 cash was
paid to the Company.

2.   Pursuant to a management agreement with Bobby Allison
Cellular Systems of Florida, Inc. (BAC). BAC assumed
control of the Company's last remaining store on June 18,
1998. All employees of this store except for one direct
salesperson were terminated by the Company and were hired
by BAC.

3.   Subsequent to the period closing, the Company reached
agreement with  Ericsson, a hardware supplier, to settle
and remit debit balances totaling over $21,000 and, in an
unrelated matter, has enforced the "automatic stay"
to preserve the Company's Nextel contract, thereby
permitting continued direct sales of Nextel phones.

A full-text copy of the debtor's monthly financial report
is available via the Internet at:

http://www.sec.gov/Archives/edgar/data/0000950144-98-
008401.txt


ANDOVER APPAREL: Reports Results of Operations
----------------------------------------------
Andover Apparel Group Inc., formerly Andover Togs, Inc.,
filed a Form 10-Q quarterly report with the SEC.

Net sales for the three months ended May 31, 1998 were
$4,742,000, an increase of $452,000 or 10.5% from 1997 net
sales of $4,290,000 in the comparable period in 1997. The
increase is primarily attributable to additional sales to
the Company's largest customer.

Gross profit as a percentage of net sales increased to
18.3% from 18.0% in the `97 Quarter. The increase was
primarily due to the effect of unabsorbed overhead in the
`97 Quarter.

Net sales for the six months ended May 31, 1998 (the "98
Period") were $7,712,000, a decrease of $584,000 or 7.0%
from $8,296,000 in the comparable period in 1997 (the "97
Period"). The decrease is attributable to a decline in net
sales during the first quarter resulting from a
deterioration of the Company's customer base.

Gross profit as a percentage of net sales decreased to
17.6% from 17.9% in the `97 Period, as a result of the
Company's current customer base producing a lower gross
profit percentage than the customer base existing during
the '97 Period.

The Company hired Steven A. Schwartz as its new President
and Chief Operating Officer at the beginning of fiscal
1998.


APRIA HEALTHCARE: Taps Deloitte & Touche
----------------------------------------
Effective on July 15, 1998, Apria Healthcare Group Inc. has
engaged Deloitte & Touche LLP as the principal accountants
to audit the Company's financial statements for the fiscal
year ending December 31, 1998.


ARIZONA CHARLIE'S: Plan Confirmed On June 25, 1998
--------------------------------------------------
On November 14, 1997, Arizona Charlie's, Inc. an affiliate
of Capitol Queen & Casino, Inc. and a wholly owned
subsidiary of Becker Gaming, Inc. filed a voluntary
petition under Chapter 11 of the United States Bankruptcy
Code with the United States Bankruptcy Court for the
District of Nevada.  At a confirmation hearing on June 25,
1998, the Bankruptcy Court confirmed the "Consensual Plan
of Reorganization Proposed by the Debtor and High River"
dated June 24, 1998, which was proposed by both AC  and
High River Limited Partnership.

High River is the holder of over 50% of the outstanding 12%
First Mortgage Notes issued by AC in the original amount of  
$55,000,000 on or about November 15, 1993. The Consensual
Plan allows AC to reorganize its business affairs and
continue as a going concern.  AC has through July 31,
1998 to close the proposed new financing that will fund  
payments to creditors under the Financing Option of the
Plan.  AC has retained a financing commitment from United
Healthcare Financial Services, LLC that would
provide AC the financing it needs to fund the Financing
Option. (States SEC - 07/16/98)


AUSTRALIS HOLDINGS: Keeping the Court Informed
---------------------------------------------------------
Attorney David S. Heller, of Latham & Watkins, filed an
Affadavit in the case of Australis Holdings Pty Limited, to
confirm to the court certain information regarding the
debtor's changed circumstances.

Following a liquidation order initiated by Telstra, all of
the debtor's officers resigned and the business of the
Australis Group has effectively ceased.  A Receiver was
appointed by the bondholders represent by the Ad Hoc
Committee, and the Receiver is actively engaged in the
liquidation of "hard" assets located in Australia.  Latham
& Watkins has urged the Receiver, as the debtor's sole
shareholder, to make arrangements for the appointment of a
responsible officer or other disinterested person to act on
the debtor's behalf, subject to approval of the bankruptcy
court.


BUILDERS TRANSPORT: Arthur Andersen Okayed for Committee
--------------------------------------------------------
The Official Committee of Unsecured Creditors of Builders
Transport, Inc. and its affiliates received court
authorization to retain Arthur Anders LLP as its accounting
and financial advisors.


BUSTER BROWN: Expects $27M Exit Facility From Foothill
------------------------------------------------------
Buster Brown Apparel Inc. has signed a commitment letter
for a $27 million exit financing facility from Foothill
Capital Corp., the company's debtor-in-possession lender.
The children's apparel maker, which must close on the
proposed facility in order for its reorganization plan to
go effective, is shooting for a July 29 closing date. The
three-year facility would include a revolver of up to $20
million as well as two term loans of $5 million and $2
million. ( The Daily Bankruptcy Review Copyright c July 17,
1998 - ABI 17-July-98)


BUSTER BROWN: Second Amended Plan Confirmed
-------------------------------------------
The court Tuesday confirmed Buster Brown Apparel Inc.'s
second amended reorganization plan.  The modified plan,
which resolved the objection of prepetition lender
NationsBank N.A., gives 95% of reorganized Buster Brown's
equity to the bank group and 5% to the junior lenders (who
are also the current equity holders).  The original plan
proposed by the apparel maker and the other three members
of the bank group offered 80.1% of the equity to the bank
group and 19.9% to junior lenders Apollo BBA Partners L.P.
and CB Capital Investors Inc. (Federal Filings, Inc. 17-
July-98)


DOW CORNING: Claims Foreign Women Will Be Treated Fairly
--------------------------------------------------------
Dow Corning Corp. said Thursday it will treat non-U.S.  
women fairly in its $3.2 billion deal to settle breast
implant claims, but declined to confirm reports that they
will receive substantially less than their American
counterparts.

According to reports in Australia, women there would
receive only 60 percent of the compensation paid to U.S.
women, which is expected to average about $31,000.

Under previous proposals from Dow Corning, the
approximately 50,000 foreign claimants would have received
30 percent to 40 percent less than U.S. women.  
The company said the previous differences were due to more
generous public health care systems in other countries that
would have covered more of the costs for removal and other
medical treatments.

Dow Corning spokesman Kevin Wiggins said neither the
company nor plaintiffs attorneys were allowed to discuss
details of the latest settlement agreement before a
disclosure statement on the plan is filed with the U.S.
Bankruptcy Court in Bay City, Mich., on Aug. 20.

"Dow Corning expects that foreign claims will be treated
fairly and equitably," Wiggins said, adding the plan
follows precedents set in other recent global health care
settlements.(Reuters: Financial - 07/16/98)


ERNST HOME CENTER: Seeks Extension of Exclusivity
-------------------------------------------------
Debtors, Ernst Home Center Inc. and EDC, Inc. are seeking
an order extending through and including September 30, 1998
the debtors' exclusive period within which to file a plan
or plans and extending through and including November 30,
1998, the debtors' exclusive period for soliciting
acceptances to their plan or plans.

A critical component of the debtors' Lease Agreement is the
extension of time to assume or reject the Sold Leases. It
would be fundamentally unfair to attempt to compel
assumption or rejection through confirmation of a plan
prior to the expiration of the time to assume or reject the
Sold Leases.  The current deadline for the Sold Leases is
June 29, 1998.  A hearing has been scheduled seeking an
extension until August 31, 1998.

The debtors state that they have been diligent in
liquidating their assets and managing their bankruptcy
cases.  The debtors also state that the size and complexity
of the cases justifies an extension of the exclusive
periods, and that such an extension will benefit the
debtors' creditors.


FORSTMANN: Notice of Annual Meeting of Shareholders
---------------------------------------------------
The Annual Meeting of Shareholders of Forstmann & Company,
Inc., a Georgia corporation, will be held on Friday, August
14, 1998, at 10:00 a.m. local time,  at the offices of
Christy & Viener,  620 Fifth Avenue, 5th Floor, New York,
New York 10020, for the following purposes:

1. To elect two directors, each to serve for a term of one
year;

2. To approve the adoption of the Company's 1997 Directors
Compensation Plan;

3. To consider and vote on an amendment to the Company's
Amended and Restated Articles of Incorporation to increase
the number of authorized shares of Common Stock from
10,000,000 shares to 35,000,000 shares;

4. To consider and vote on an amendment to the Articles to
authorize a class of 1,000,000 shares of Preferred Stock
and to authorize the Company's Board of Directors to issue
such Preferred Stock in one or more series
and to fix the rights, powers, preferences and other terms
of such series;

5. To consider and vote on an amendment to the Articles to
reduce the minimum number of directors that the Company may
have from five to two;

6. To vote on the ratification of the selection of Deloitte
& Touche LLP as the Company's independent auditors for the
1998 fiscal year.

A full-text copy of the filing, including the proxy
statement is available via the Internet at:

http://www.sec.gov/Archives/edgar/data/0000798246-98-
000026.txt


FRUEHAUF TRAILER: Seeks Exclusivity Extension To October 17
-----------------------------------------------------------
Fruehauf Trailer Corp. is seeking an extension of its
exclusive period to solicit reorganization plan
acceptances from June 19 to Oct. 17.  "Despite the efforts
of the Debtors and their professionals, the actions
necessary to solicit acceptance of the Debtors' proposed
Joint Plan of Reorganization cannot be completed prior to
the June 19, 1998 deadline.  Nevertheless, the Debtors
believe that the completion of this task is possible within
the time necessitated by the confirmation hearing scheduled
for September 16, 1998," the company said. (Federal Filings
Inc. 17-July-98)


GOLF TRAINING: Director Resigns
-------------------------------
Golf Training Systems Inc. reported to the SEC that   
Thomas W. Tripp  resigned as a director on June 5, 1998.  
There were no disagreements on any matter.


GUY F. ATKINSON: Seeks OK To Sell ADCO To Pacific Networks
----------------------------------------------------------
Guy F. Atkinson Co. of California is seeking approval to
sell its Atkinson Dynamics Co. (ADCO) division, which makes
heavy-duty industrial intercoms, to Pacific Networks & Co.
for an estimated $1.86 million.  "As a result of the
transfer of most of the business operations of the Debtors
to The Clark Construction Group Inc. and VECO Corp., the
Debtors believe that it would be in the best interests of
the Debtors and the parties in interest to sell ADCO as a
going concern," the construction company said. (Federal
Filings Inc. 17-July-98)


HAROLD'S FURNITURE: Judge OKs Credit For Customers
--------------------------------------------------
Federal Bankruptcy Judge Arthur N. Votolato approved a plan
that allows Cardi's Furniture to give credit to retail
customers who lost deposits when Harold's Furniture entered
liquidation proceedings without making good on  its final
furniture sales.

By yesterday's count, the order would cover $235,000 worth
of sales to 157 customers - all of whom will soon be
eligible to pick out merchandise at Cardi's with a retail
value equivalent to the amount of money they lost at  
Harold's.

The order covers all customers who paid deposits by cash or
check. Hundreds of other customers who paid by credit card
have already been compensated a total of $382,000 by
Citizens Bank, which had a merchant agreement at Harold's.
Once notified, the customers who paid deposits by cash or
check will have until early next month to contact the
attorney general or the federal bankruptcy trustee and
declare their claims. When the claims are approved, the
customer will get a gift certificate for either
Cardi's store or at the Thomasville Home Furnishings,
which the Cardis also own.

The order also allows Cardi's to liquidate Harold's stock.
Roland Cardi said that the brothers will convene a
storewide auction at Harold's now darkened showrooms July
24.   Events yesterday were both a break for the customers
and a public relations  masterstroke for Cardi's, which is
locked in a battle with rival Alperts for preeminence in
the local retail furniture business.

After the hearing, the brothers - known through their
advertising as "NiRoPe," or Nick, Ron and Pete - said they
had two motives: to help customers and to prevent a long-
running "Going Out of Business" sale at Harold's.
The Cardis also said their company will lose a significant
sum from the deal, which requires them to issue an
estimated $235,000 in merchandise credit,  pay the City of
Providence $125,000 to cover roughly half of Harold's
public debt, and to pay for lawyers, the auction and
advertising.

Cardi's reportedly stands to collect about $200,000 from
the auction.

It is yet unknown how the secured creditors - including
Citizens Bank of Rhode Island, the City of Providence, and
the family trust that had lent Harold's more than $1.1
million - will attempt to recoup their loss.
(ProvidenceJournal-07/14/98)


IOMEGA: Posts Second Quarter Loss; Signs Credit
-----------------------------------------------
Data storage maker Iomega Corp. said Thursday it  
posted an after tax second quarter net loss, slightly wider
than analysts' expectations, amid restructuring efforts to
bring the company out of its recent financial troubles.

Iomega, the Roy, Utah maker of the high-capacity computer
storage device Zip, posted a net loss of $39.9 million, or
$0.15 per diluted share, including a $9.4 million pretax
charge related to cost reduction efforts. In the year-
earlier period, Iomega earned $26.2 million, or $0.09 per
diluted share. Second quarter revenue slipped to $394
million from the year ago's $400 million. Analysts had
expected a loss of $0.07 per share.  The company's stock  
closed Thursday at 6-1/16, up 6/16 on the day.

Chief Executive James Sierk anticipates a 12 percent
workforce cut.  Liquidity concerns have also been allayed,
Sierk said. The company also signed an amended $150 million
senior secured credit facility with a syndicate of 12 banks
led by J.P. Morgan and Citicorp.

Iomega said that it expected to see positive cash flow for
the second half of the year, excluding the costs related to
its acquisition of rival Nomai S.A., a French-based
manufacturer of removable computer storage systems.  
However, it said it would remain negative for year-end.
{Reuters: Business - 07/16/98)


LONG JOHN SILVER'S: Trustee Names Franchisee Panel
--------------------------------------------------
The U.S. Trustee acting in Long John Silver Inc.'s Chapter
11 proceedings has appointed an official franchisee
committee: BR Associates Inc. of Jasper, Ind.; Treasure
Isles Inc. of Lexington, Ky.; American Seafood Partners
L.P. of Wichita, Kan.; Maggard Enterprises Inc. of
Riverside, Calif.; D-Sea Inc. of Lexington; LoJo II Inc. of
Lexington; and Performance Foods Corp. of Mansfield, Ohio.
(The Daily Bankruptcy Review Copyright c July 17, 1998 -
ABI 17-July-98)


MAIDENFORM: Seeks Investment in Mexican Sewing Plant
----------------------------------------------------
The debtors, Maidenform Worldwide, Inc. seek authority to
make further investments in a swing plant located in
Valladolid, Mexico.  The debtors propose to undertake a
construction project that will more than double the plant's
size allowing for significantly greater production of sewn
goods.  It is anticipated that the costs associated with
the construction and the expansion will be approximately
$1.1 million.

The debtors estimate that utilizing the expanded plant will
result in substantial savings in operating costs, taxes and
duties and will contribute significantly to the debtors'
rehabilitation efforts.

In March, a fire destroyed the debtors' swing operation in
Higuey, Dominican Republic and the debtors decided to
expand their operations at the plant in Valladolid, Mexico,
which is the debtors' most efficient/lowest cost facility.


MATEC CORPORATION: Announces Merger
-----------------------------------
The merger of MATEC Corporation, a Delaware corporation,
into a newly formed Maryland corporation, also named MATEC
Corporation, changing the state of incorporation of
Registrant from Delaware to Maryland was effective July 2,
1998.  The reincorporation does not result in any change of
business, management, policies, assets, liabilities or
result in any changes in ownership of the Common Stock of
the company except that holders of records of less than 100
shares of the Common Stock of the company at the effective
date ceased to be stockholders of Registrant.

Such holders received cash equal to $4.03 per share (the
average daily closing price per share of the Common Stock
of Matec Corporation on the American Stock Exchange for the
ten trading days immediately preceding the effective date
of the merger).  At July 2, 1998 there were 1690
shareholders of Registrant owning of record less than 100
shares holding an aggregate of 35,705 shares of Common
Stock of Matec Corporation representing 1.3% of the Common
Stock outstanding.


MEGO MORTGAGE: Transactions Completed for Recapitalization
----------------------------------------------------------
On July 1, 1998, Mego Mortgage Corporation, a Delaware
corporation  completed a series of transactions intended to
recapitalize the Company pursuant to which the Company
generated approximately $87.5 million of new equity and
which resulted in a change in control of the Company.
Pursuant to the Recapitalization, the Company
consummated (i) a private offering of 16,666,667 shares of
common stock, par value $.01 per share of the Company for
an aggregate purchase price of $25.0 million ($1.50 per
share) and (ii) a private offering of an aggregate of
25,000 shares of new Series A Convertible Preferred Stock,
par value $.01 per share for an aggregate purchase
price of $25.0 million

As part of the Recapitalization the Company also completed
its offer to exchange new 12 1/2% Subordinated Notes due
2001 and shares of Series A Preferred Stock or a
combination thereof, subject to certain limitations, for
any and all of the $80.0 million aggregate principal amount
of outstanding 12 1/2% Senior Subordinated Notes due
2001 of the Company, pursuant to which the Company issued
an aggregate of $41.5 million of New Notes and 37,513
shares of Series A Preferred Stock. Approximately $992,000
of Old Notes remain outstanding. As part of the
Exchange Offer, holders of New Notes collectively were
granted the right to appoint one member to the Company's
Board of Directors.

In connection with the Recapitalization, Edward B. "Champ"
Meyercord was elected as the Company's Chairman of the
Board and Chief Executive Officer. Jerome Cohen, Don
Mayerson, Robert Nederlander and Herbert Hirsch,
directors of the Company, resigned effective upon
consummation of the Recapitalization. Mr. Meyercord and the
Company's then remaining directors appointed David J. Vida,
Jr., Hubert M. Stiles, Jr. and Wm. Paul Ralser as
directors in order to fill the vacancies existing on the
Board of Directors following the consummation of the
Recapitalization.


MEGO MORTGAGE: Filing a Late Quarterly Report
---------------------------------------------
Mego Mortgage filed a form with the SEC reporting that its
quarterly report would be filed late because the company is
experiencing delays in the collection and compilation of
certain financial information required to be
included in the report.  The company anticipates that it
will report a significant and adverse material change in
its results of operations for the quarter ended May 31,
1998 from the corresponding period for the last fiscal
year. The company  estimates that it will report a loss of
approximately $55.2 million for the quarter ended May 31,
1998 compared to net income of $4.3 million for the quarter
ended May 31, 1997.


SIZZLER INTERNATIONAL: Annual Meeting Set for August 18
-------------------------------------------------------
The Annual Meeting of Stockholders of Sizzler
International, Inc. will be held at the Radisson Hotel at
6161 West Centinela Avenue, Culver City, California, on
Tuesday, August 18, 1998 at 3:30 p.m.

The meeting will be held for the following purposes:
1. To elect three directors to serve until the 2001 Annual
Meeting of Stockholders and until their successors are
elected and qualified.

2. To approve an amendment to the Company's 1997 Employee
Stock Incentive Plan, under which the number of the
Company's Common Stock available for issuance will be
increased from 1,000,000 to 2,800,000.

A full-text copy of the Proxy Statement is available via
the Internet at:
http://www.sec.gov/Archives/edgar/data/0000950148-98-
001693.txt

                  *********

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to
conferences@bankrupt.com are encouraged.

Bond pricing, appearing each Friday, is supplied by DLS     
Capital Partners, Dallas, Texas.

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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.   

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