TCR_Public/980722.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
      
       Wednesday, July 22, 1998, Vol. 2, No. 142
                    
                  Headlines

ALLEGHENY HEALTH: Files Bankruptcy
BARRY'S JEWELERS: Court Approves Disclosure Statement
CAI WIRELESS: Expects Plan To Meet Panel Opposition
CANADIAN RED CROSS: Form of Bankruptcy Protection
CONNECTIVITY TECHNOLOGIES: To Report $9 Million Net Loss

ERD WASTE: Applies to Retain Accountants
EASTERN AIRLINES: Makes Distribution to Creditors
GENERAL WIRELESS: Applies to Employ Ernst & Young
KIA MOTORS: Ford Appears To Be Front-Runner
KIA MOTORS: Samsung Submits Offer

MONTGOMERY WARD: $3M Breakup Fee For HQ Sale Okayed
MOTOROLA: To Raise Stake in Thailand's TAC
NEWMONT MINING: Selling Up To $591.2 Million of Securities
PEGASUS GOLD: Committee Objects to Number of Law Firms
PORTACOM WIRELESS: Reports Ownership of  VDC Stock

SA TELECOMMUNICATIONS: Seeks Extension of Exclusivity
SPORTS AUTHORITY: Gart Sports Offers $20 Per Share
STRATUS PROPERTIES: Reports Net Loss of $1.16 Million
TEXFI INDUSTRIES: Delays Making Interest Payments
TOSHOKU AMERICA: Applies for Extension of Exclusivity

WIZ INC: Panel Near Consensual Plan/Seek 15-Day Extension
WORLD CUP HOSPITALITY: World Cup Hospitality Firms Bankrupt

                  *********

ALLEGHENY HEALTH: Files Bankruptcy
----------------------------------
Allegheny Health, Research and Education Foundation AHERF),
the largest non-profit health system in Pennsylvania, filed
for bankruptcy protection late yesterday and announced that
it would sell nine Philadelphia area hospitals, according
to the Pennsylvania Department of Health and The Wall
Street Journal. AHERF announced an agreement in principal
to sell the hospitals to Vanguard Health Systems Inc.,
Nashville, Tenn., for $502 million. The Foundation is
trying to save its flagship hospital, Allegheny General
Hospital and other Pittsburgh holdings.

The chapter 11 filing includes the system's parent
foundation, a unit that owns physician practices in
Pittsburgh and Philadelphia, and units that own hospitals
in the Philadelphia area. Newly appointed President and CEO
Anthony Sanzo said that the debt and current losses forced
the organization to examine all options seriously and that
the bankruptcy filing is the best route to take.

Pennsylvania Gov. Tom Ridge directed the Department of
Health to closely monitor the quality of health care
provided to patients in health-care facilities operated by
the Allegheny Health, Research and Education Foundation
(AHERF), which filed for bankruptcy  on July 20, 1998.

Health Secretary Daniel F. Hoffmann said teams of
department inspectors will be available to respond to
quality-of-care issues as needed.


BARRY'S JEWELERS: Court Approves Disclosure Statement
-----------------------------------------------------
Barry's Jewelers today announced that the court presiding
over its Chapter 11 case has approved the adequacy of
Barry's Disclosure Statement and authorized the company to  
distribute the Plan and Disclosure Statement to creditors
and shareholders for voting.

The court also scheduled a confirmation hearing on Sept.
16, 1998, and established Aug. 10, 1998, as the deadline
for creditors and shareholders to return their ballots.

The official unsecured creditors' committee, the official
bondholder committee, the unofficial equity committee and
Barry's support the Plan. Each of these parties has written
a letter of support for adopting the Plan.

The Plan generally provides for the following treatment of
creditors and shareholders.

1.   The Pre-Petition Bank Group will be paid in full.

2.   General Unsecured Creditors will be paid the lesser of
15 cents on the dollar or $2.55 million (to be distributed
on a pro rata basis). Claims of General Unsecured Creditors
are currently estimated to be approximately $15 million to
$17 million.

3.   The Pre-Petition Bondholders have agreed to convert
their pre-petition claims of approximately $53 million into
equity of reorganized Barry's. In addition, they will be
entitled to participate, pro rata, in an infusion of $15
million in new equity capital. DDJ Capital, Mitchell
Hutchins, and/or funds managed by them (which collectively
hold approximately 50% of Pre-Petition Bondholders Claims)
agreed to contribute to Barry's an amount equal to the
above-mentioned $15 million minus any amount contributed by
other Bondholders.

4.  Existing shareholders will be entitled to receive their
pro-rata share of warrants to purchase up to 5% of the
stock of reorganized Barry's.

Upon effectiveness of the Plan, Barry's will become Samuels
Jewelers Inc., adopting the name of its strongest store
division that has been in existence since 1891.
Additionally, the newly issued stock will be publicly
traded and the company intends to make application for
listing thereof on a Nasdaq market.

Barry's Jewelers Inc. currently operates 116 retail jewelry
stores in 17 states throughout the country doing business
as Hatfield Jewelers, Schubach Jewelers, Samuels Jewelers,
A. Hirsh & Son and Mission Jewelers.


CAI WIRELESS: Expects Plan To Meet Panel Opposition
---------------------------------------------------
An unofficial committee of CAI Wireless Systems Inc.'s
12.25% senior noteholders, representing about 33% of the
notes, intends to reject CAI's proposed reorganization plan
despite an increased interest rate of 13% on the new senior
notes issued under the plan.  Over the past several weeks,
CAI had "extensive discussions" regarding the plan with the
committee and lender Merrill Lynch Global Allocation Fund
Inc., which holds about 36% of the 12.25% notes and plans
to resign from the panel.  The committee advised CAI
representatives that it would back the plan if (a) the
interest rate on the new notes were increased to 15%, (b)
Merrill Lynch committed to provide the entire $80 million
amount of the proposed exit credit facility, and (c) a
provision in the proposed debtor-in-possession facility
that increases the commitment fees to 4% after 90 days were
eliminated. (Federal Filings Inc. 21-July-98)


CANADIAN RED CROSS: Form of Bankruptcy Protection
-------------------------------------------------
A judge Monday approved a form of bankruptcy protection
for Canada's Red Cross so it can reorganize while deferring
payments to creditors and claimants, including victims of a
tainted blood scandal.

The agency faces more than $3.5 billion in liabilities from
three class-action lawsuits.

Last week, the agency said it had reached an agreement with
provincial governments to transfer its blood services to
two new organizations. To keep solvent while it works out
the transfer, the Red Cross Monday asked the court for
protection from any actions against it for 30 days.

The Red Cross will receive about $93 million for the sale
of its blood operation assets. Once its debts are paid off,
it will create a fund to assist tainted-blood victims.

The Red Cross plans to put the net proceeds from the sale
of its blood assets into a trust fund to deal with claims
from hepatitis C victims, who will be compensated after
banks and creditors are paid.

Federal and provincial governments have agreed to a $770
million compensation package for an estimated 22,000 people
who contracted hepatitis C from 1986 to 1990.

About 1,000 hemophiliacs contracted the AIDS virus through
blood or blood products collected or distributed by the
agency. Tens of thousands of Canadians became infected with
hepatitis C through the blood system.

The restructuring plan will enable the Red Cross to hold on
to its humanitarian activities and field operations,
including emergency services, disaster relief systems and
first aid services and training.


CONNECTIVITY TECHNOLOGIES: To Report $9 Million Net Loss
--------------------------------------------------------
Connectivity Technologies Inc. reports to the SEC that it
is in the process of completing its annual report.  The
company believes that revenue for 1997 was approximately
$42.0 million and that the Registrant will report a net
loss of approximately $9.0 million for the year.  These
results are approximate and are subject to review following
completion of the audit of the Registrant's 1997 financial
statements. The Registrant concluded an amended secured
credit  agreement with its lenders effective June 2, 1998,
under which certain loan  covenants not complied with as of
December 31, 1997, were deleted. However, the amended
facility requires the elimination of the Registrant's
overadvance position of approximately $5,000,000 by July
10, 1998.  

The company is in discussions with its lenders looking to
an extension of the  current facility, the implementation
of a new loan facility or other corrective  action but no
assurances can be given that such negotiations will be  
successful.  If no satisfactory agreement is concluded
with the lenders, the  amended facility would require
repayment of the entire obligation of  approximately $17.7
million by July 31, 1998, and the company does not  believe
that it would be in a position to make the required
overadvance  reduction or to repay the entire loan on the
dates currently specified. (States SEC-07/20/98)


ERD WASTE: Applies to Retain Accountants
----------------------------------------
ERD Waste Corp., et al., debtors are applying for an order
authorizing the retention of Radin Glass & Co., LLP, as
Accountants to the debtors.

The services of an accounting firm are necessary to assist
the debtors to administer these estates and perform other
services.   The debtors submit that Radin Glass will not
duplicate the services to be rendered by Executive Sounding
Board, Inc., financial advisors to the debtors.  

Initially, Radin Glass will prepare various federal, state
and local tax returns for the debtors that have yet to be
filed.  As a result of filing these returns, the debtors
could receive refunds aggregating approximately $200,000.

Radin Glass has agreed to utilize the 300-hour cap for
services to be rendered to the debtors, subject to further
application to the court to extend or augment such cap.
The debtors have agreed to pay Radin Glass at its regular
hourly rates.


EASTERN AIRLINES: Makes Distribution to Creditors
-------------------------------------------------
Reorganized Eastern Airlines announced yesterday that it
has made its fifth distribution totaling $5.6 million to
holders of unsecured claims greater than $100,000;
to date, the organization has paid more than $101 million
in claims. Eastern plans to continue distributions to
creditors with claims over $100,000 throughout this year
and next. Chairman John J. Sicilian said the amount and
timing of the distributions will depend on the recovery
experience, contingent upon the prosecution of several
multi-million dollar litigations and the disposal of
remaining assets.


GENERAL WIRELESS: Applies to Employ Ernst & Young
-------------------------------------------------
General Wireless, Inc. and its affiliates, as debtors,
applied to the court for an order authorizing employment of
Ernst & Young LLP as accountants to the debtors.

The debtos  must retain experienced accountants to prepare
their tax returns, and they believe that Ernst & Young has
extensiove experience in the type of matters for which it
is proposed to be employed and that Ernst & Young is
qualified to render these services.

Ernst & Young proposes to charge its usual and customary
hourly rates, that range from $350 per hour for the
services of a partner to $100 per hour for the services of
a staff consultant.


KIA MOTORS: Ford Appears To Be Front-Runner
-------------------------------------------
Ford appears to be the front-runner to buy bankrupt Kia
Motors Corp. on the auction block, with bids due earlier
this week and the company sold as early as Aug. 20,
AutoWeek magazine reports.

The Korean government officially put Kia up for bidding,
with three likely buyers in the offing: Korean companies
Hyundai and Samsung, and Ford Motor Co. So far, Ford is the
only prospect to perform "due diligence," a long, expensive
accounting procedure.

Dick Macedo, Kia's U.S. vice president of marketing and
sales, said Ford would be the preferred suitor. (Arizona
Republic-07/18/98)


KIA MOTORS: Samsung Submits Offer
---------------------------------
South Korea's carmaker Samsung Motors Inc.  
submitted its offer Tuesday to acquire Kia Motors Corp.

Samsung's offer came as South Korea's two largest auto
makers -- Daewoo Motor Co. and Hyundai Motor Co. -- were
entangled in labor disputes over lay-off plans.
Production remained crippled Tuesday at the factories of
Daewoo and Hyundai after management shut up shop to head
off strikes by unions against plans to sack thousands of
workers.

Hyundai and Daewoo suggested up to 30 percent of their
workforce should be cut to remain competitive in South
Korea, which will drastically ease import barriers next
year.   "Labor unrest is eroding South Korea's efforts to
restructure the industry.  If we fail to reduce
redundancies, the industry will be in serious
trouble,"  Min Kyong-Hwan, a Hyundai spokesman, said.

He admitted that union militancy may undermine its bid for
a stake in Kia.  Hyundai plans to submit its offer Friday.

Samsung, an underdog in the battle for a stake in Kia,
expressed confidence, saying it had no labor problems.
(Agence France Presse - 07/21/98)


MONTGOMERY WARD: $3M Breakup Fee For HQ Sale Okayed
---------------------------------------------------
& CO. (X.MWD) - The court has approved auction procedures
and a $3 million breakup fee for Ocean Atlantic Development
Corp., the stalking horse bidder for Montgomery Ward's
Chicago headquarters compound.  The court approved the
proposed breakup fee and bid procedures during a July 15
hearing.  The 28-acre property includes a parking garage,
merchandise building, catalog building, and corporate
tower, home of Montgomery Ward's corporate offices.  The
$110 million sale price for the headquarters compound has
established a minimum for the property, thus justifying the
$3 million breakup fee, the retailer said. (Federal Filings
Inc. 21-July-98)


MOTOROLA: To Raise Stake in Thailand's TAC
------------------------------------------
Total Access Communication Plc (TAC) has signed a letter of
intent with  Motorola Inc. [NYSE:MOT], allowing the US
equipment maker to further explore opportunities to buy
into the Thai cellular firm, the company source said.

The move is part of the company's efforts to increase the
market's confidence in its debt restructuring plan.

TAC's creditors have called for the company to increase its
registered capital and for a new strategic partner to be
rapidly found. TAC's debts have grown to US$1 billion.

Motorola is an indirect investor in TAC as it holds a major
stake in the firm's parent company, United Communication
Industry Plc (Ucom), which has exclusive rights to
distribute Motorola products in Thailand. Ucom's
Bencharongkul family  has had a personal connection with
Motorola's founding family, the Galvins, for decades.

The letter of intent was made after TAC announced a hike in
its registered capital to 5.3 billion baht ($129.43
million) from 4.1 billion baht ($100.12 million), hoping to
deliver 120 million new shares to its partner.

Some analysts say Motorola is having financial difficulties
and the partnership deal contains many time-consuming
details, while TAC's debt restructuring requires immediate
attention.

The new share issue would constitute only about 25 per cent
of TAC, which might prove inadequate for convincing
creditors during the present financial conditions, a
telecom analyst said.  "A new partner should take up at
least 35 percent to 40 percent to help gain  
more confidence," an analyst said.

Motorola is engaged in a massive layoff program involving
15,000 employees, according to an announcement in June. Its
stock price has dropped about 26 percent from last year. In
several competitive markets, the US manufacturer has
been forced to cede significant shares in the cellular
industry to Nokia and  Ericsson.

In the first six months of this year, company losses
totaled $1.15 billion, or $1.92 per share, whereas its
earnings totaled $593 million in the same period  
last year.

"To respond to the severity of these business conditions,
we are re-sizing the company through aggressive
restructuring steps," Christopher Galvin, chief  
executive officer, said in a prepared press statement.
"These actions are intended to improve our long-term
profitability." Exchange rate: $1 = 40.95 baht (The Nation
- Newsbytes-07/20/98)
    

NEWMONT MINING: Selling Up To $591.2 Million of Securities
----------------------------------------------------------
Newmont Gold Co., the world's second-largest gold producer,
and Newmont Mining Corp. have filed with the Securities and
Exchange Commission to sell up to $591.2 million of
securities.  Denver-based Newmont Mining filed to sell up
to $341 million in common stock and other securities,
according to the shelf registration. Separately, Newmont  
Gold, a company controlled by Newmont Mining, filed to sell
up to $250 million in debt securities. The two companies
intend to use money raised through the sale of securities
for general corporate purposes. At present, there are
no  plans to issue either debt or equity, a spokesman said.
(Bloomberg - 20-July-98 DenverPost-07/16/98)


PEGASUS GOLD: Committee Objects to Number of Law Firms
------------------------------------------------------
The Official Committee of Unsecured Creditors of Pegasus
Gold Corporation responded to the debtor's application for
an order approving the retention of Allen, Allen & Hemsley,
Special Counsel, Lukins & Annis, Special Counsel and Graham
& Dunn, PC, Special Counsel.

The Committee states that including these three firms, the
debtor would have 13 law firms in its employ.  The
Committee is concerned that the difficulties of managing
such outside legal work may outweigh any perceived
benefits. The Committee is also concerned because it has
had no advance notice of the debtor's intentions to employ
special counsel, and it has no understanding of how many
more law firms the debtors contemplate employing.   

The Committee approves the hiring of these three law firms
only with a written disclosure with respect to each firm
already employed, the work that has been done and is yet
contemplated to be done, and the expected fees and expenses
and the names, contemplated work, and expected fees and
expenses for any other law firms which the debtors
anticipate seeking.


PORTACOM WIRELESS: Reports Ownership of  VDC Stock
--------------------------------------------------
PortaCom Wireless Inc. reports to the SEC a Statement
relating to the common stock, par value $2.00 per share of
VDC Corporation, Ltd., a Bermuda corporation (the
"Issuer").  The statement constitutes an initial filing of
Schedule 13D for PortaCom Wireless, Inc.

On June 8, 1998, the Company consummated the sale to the
Issuer of 2,000,000 shares of common stock and warrants to
acquire, at an exercise price of $4.00 per share, an
additional 4,000,000 shares of common stock of Metromedia
China Corporation. In consideration for the sale of such
assets and subject to certain adjustment features, the
Company received 5,300,000 newly issued shares of Common
Stock and the right to utilize a maximum of $3,000,000 in
cash to satisfy claims made against the Company in its
bankruptcy proceedings.

As of June 8, 1998, PortaCom Wireless is the beneficial
owner of, and has sole dispositive and voting power with
respect to, 5,300,000 shares of Common Stock, which shares
constitute 58.2 % of the issued and outstanding shares of
Common Stock.


SA TELECOMMUNICATIONS: Seeks Extension of Exclusivity
-----------------------------------------------------
SA Telecommunications Inc. and its affiliate debtors are
seeking an order granting further extension of the
exclusive periods in which to file a plan of reorganization
and to solicit acceptances thereof.

The debtors state that there are fundamental issues
regarding the allocation of sale proceeds between and among
the creditors of the various debtors which remain
unresolved at this time.  The debtors claim that they are
in cooperation with creditor representatives trying to move
the cases toward confirmation of a plan.  They claim that
the requested extension is in good faith.  They also state
that the fact that they are preparing liquidating rather
than reorganizing plan of reorganization should not
negatively impact on their retaining the exclusive right to
file a plan.  The Committee has consented to this requested
extension.

A hearing to consider the motion will be held on July 27,
1998 at 2:00 p.m., Wilmington, Delaware, before The
Honorable Peter J. Walsh.


SPORTS AUTHORITY: Gart Sports Offers $20 Per Share
--------------------------------------------------
Gart Sports Co. on Wednesday reiterated its $20-a-share
cash offer for a majority stake in Sports Authority  
Inc., pressuring the largest U.S. sporting-goods retailer
to reject an all-stock bid by Venator Group Inc. that's
fallen to about $13.55 a share. Denver-based Gart, the
second-biggest operator of warehouse-sized sporting-goods  
stores, said it received a letter from Sports Authority's
board asking for detailed information about its offer. Gart
also sent its larger rival an updated letter from Chase
Securities Inc. to confirm that it can finance the  
transaction. Shares of Venator, the former Woolworth Corp.,
have tumbled more than 26 percent since it proposed buying
all of Sports Authority in May, because of fears of
dilution and a warning that profits will be less than  
expected. That's cut the value of Venator's all-stock bid
from the original $18.40 a share. Sports Authority shares
rose $1 to $14.875. Venator rose $1 to $17.937 and Gart
gained 50 cents to $16. (Bloomberg 20-July-98 Denver Post-
07/16/98)


STRATUS PROPERTIES: Reports Net Loss of $1.16 Million
------------------------------------------------------
Stratus Properties Inc. (NASDAQ:STRS) reported a net loss
of $1,160,000, $0.08 per share, for the second-quarter of
1998, compared with net income of $1,744,000, $0.12 per
share, for the second-quarter of 1997. For the six months
ended June 30, 1998, STRS recorded a net loss of
$2,043,000, $0.14 per share, compared with net income of
$3,716,000, $ 0.26 per share, for the six months  
ended June 30, 1997. Total outstanding debt was reduced to
$31.1 million at June 30, 1998  from $40.1 million at March
31, 1998

Revenues for the second quarter of 1998 were $3,408,000
compared with second-quarter 1997 revenues totaling
$5,191,000. Stratus Properties Inc. and "STRS" became the
new name and new NASDAQ trading symbol of the company
effective May 18, 1998.

STRS and Olympus Real Estate Corporation (Olympus), as
previously announced, formed a strategic alliance to
develop certain of STRS' existing properties and to pursue
new real estate acquisition and development opportunities.
Olympus made an initial equity investment in STRS of $10
million  and agreed to provide up to an additional $60
million for joint STRS/Olympus projects, subject to certain
conditions.


TEXFI INDUSTRIES: Delays Making Interest Payments
-------------------------------------------------
Texfi Industries, Inc. (NYSE: TXF) announced today that it
would delay making the August 1 interest payment due on
the Company's 8-3/4% Senior Subordinated Debentures due
August 1, 1999 (NYSE: TXF 99) pending the expected closing
of a new or restructured senior credit facility with its
senior lenders.  The Company stated that it anticipated  
closing on the new or amended credit facility during
August, and that it intended to make the interest payment
at that time.

As announced on June 16, 1998, the Company is operating
under a forbearance agreement with its current senior
lenders since the Company is in technical default of
certain financial covenants in the agreement that governs
its revolving line of credit.  Although the forbearance
agreement is due to expire on July 24, the Company expects
to reach agreement with its lenders prior to such date to
extend the forbearance period to August 24, 1998.  The
Company indicated that it is currently in negotiations both
with its existing senior lenders and also with other
financial institutions, and believes that a
new  facility will be in place by that time, permitting
Texfi to pay the interest  due on the Senior Subordinated
Debentures. (Denver Post-07/16/98)


TOSHOKU AMERICA: Applies for Extension of Exclusivity
-----------------------------------------------------
Toshoku America, Inc. seeks a second extension of its
exclusive period to file a plan of reorganization for an
additional 60 days through and including September 18,
1998.

The debtor states that the size and complexity of this case
and the significant cross-border issues involved constitute
sufficient cause of extending the exclusive periods.  The
debtor ahs taken good faith steps and made significant
progress toward the formulation of a plan, and has
demonstrated reasonable prospects for filing a viable plan
but need sufficient additional time to complete
negotiations and prepare adequate information.   The debtor
is working on a conceptual framework for a consensual plan
with its major constituencies - the Deputy Trustee, the
Committee and its major creditors.  Additional time is
necessary, however, to complete the task.  


WIZ INC: Panel Near Consensual Plan/Seek 15-Day Extension
---------------------------------------------------------
Seeking a 15-day exclusivity extension, Wiz said it expects
to be in a position to file a consensual plan of
reorganization with the creditors' committee within a week.  
"The Debtors and the Committee are in a very advanced stage
in finalizing a plan and disclosure statement," the defunct
retailer, now known as NYEC Inc., asserted. (Federal
Filings Inc. 21-July-98)


WORLD CUP HOSPITALITY: World Cup Hospitality Firms Bankrupt
-----------------------------------------------------------
Three World Cup hospitality firms, Mall Corporate Events
Ltd., International Championship Management Ltd. and
Champion Cup Hospitality Ltd., have been forced into
liquidation with debts of more than 5 million pounds,
according to a newswire report. The London-based corporate
hospitality companies that promised tickets for the World
Cup soccer games were forced to liquidate when their
original ticket suppliers failed to deliver the tickets
around which the companies'; packages were built. Great
Portland Entertainments, the main ticket supplier for the
companies, was closed down in early June for selling 2.4
million pounds worth of World Cup tickets that it did not
have. The company was not authorized by the tournament's
French organizer's to distribute tickets.

                  *********

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.

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
301/951-6400.  

              * * *  End of Transmission  * * *