TCR_Public/980805.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, August 5, 1998, Vol. 2, No. 152

BOYDS WHEELS: $5 Million Claim Filed
BOYDS WHEELS: CNB Seeks Conversion to Chapter 7
BRUNO'S: Seeks Employment Agreements with 5 Key Execs.
BURT REYNOLDS: Prepares Reorganization Plan

CHERRY COMMUNICATIONS: Court Approves Disclosure Statement
GREATE BAY: Sues To Stop Property Option Transfer
HEWLETT PACKARD: 13,000 Take 10 Day Vacation to Save Money
HOMEPLACE STORES: Seeks to Establish Bar Dates
ICH CORPORATION: Announces Sale of Perry Park

KLEID CO: Collects $6.2 Million in Outstanding Debt
LIBERTY HOUSE: Seeks Special Counsel to Board of Directors
MIDCOM COMMUNICATIONS: Court Confirms Committee's Plan
NAL FINANCIAL: Committee Taps Stroock & Stroock & Lavan
NASHUA CORPORATION: Reports Continued Losses

PARAGON TRADE: Denied Motion for New Trial
PETRIE RETAIL: Seeks Another 30-Day Exclusivity Extension
PINNACLE BRANDS: Court Approves Borrowing Up to $13.25M
PITTSBURGH PENGUINS: Will Try to Avoid Bankruptcy
REGENCY HOMES: Home Contractor Declares Bankruptcy

SOUTHEAST BANKING: Trustee Announces Record Date
TRITON ENERGY: Reports Second Quarter Loss of $150 Million
UNISON HEALTHCARE: Seeks Time to Assume or Reject Leases
V.O.C. ANALYTICAL: Order Directs Appointment of Trustee
WINTERSILKS: Files Chapter 11 Petition


Alliance Entertainment Corp. has filed its 3rd amended
joint plan, and the company as well as its operating
affiliates shall continue to exist as Reorganized Alliance
after the Effective Date of the plan.  Mr. Eric Weisman,
the current CEO of Alliance, shall be the CEO of each of
the Reorganized Companies.

Reorganized Alliance shall issue a single class of
12,927,000 shares of New Common Stock with an assumed value
of $5 per share for Distribution purposes, to be
distributed on the Effective Date or as soon thereafter as
reasonably practicable.

Unimpaired Classes include DIP Bank Claims, Major Creditor
Secured Administrative Claims, Mechanics' Lien/Offset
Claims, Land Mortgage Claims, Administrative Claims,
Priority Claims, Priority Tax Claims and Fee Claims.

Impaired Classes include Prepetition Secured Bank Claims
and Prepetition Credit Agreement Guaranty Claims against
Alliance.  These claimants shall receive not less than 86%
on a fully diluted basis of the New Common Stock of
Reorganized Alliance; 100% of the capital stock of Concord
and cash in an amount equal to 100% of any outstanding and
unpaid adequate protection payments required by the DIP
Order and cash in an amount equal to 100% of the reasonable
outstanding and unpaid fees and expenses of the prepetition
banks and the prepetition bank agent, and 100% of the
capital stock of the nondebtor affiliates, if any, other
than St. Clair.

Prepetition Credit Agreement Guaranty Claims - Holders
shall receive a Ratable Share of the Net Cash Proceeds up
to the unpaid allowed amount of such claim.

Major Creditor Secured Claims - Cash Distribution of a
portion of $5 million equivalent to the ratio of such
unpaid amount to all Allowed Major Creditor secured Claims
against One Stop.

Securities Claims shall receive no distribution.
General Unsecured Claim Holders shall receive no
distribution provided however, allowed claimants in certain
classes shall be entitled to receive a number of Warrants
and shares of New Common Stock .  Intercompany claims shall
receive no distribution and holders of any interest in any
debtor shall receive no distribution.

BOYDS WHEELS: $5 Million Claim Filed
On July 2, 1998, a claim based on breach of contract and
fraud was filed by Yoshinora Nakayama dba American Motor
Accessories, and The Ousyu Hambai Company in the case of
Boyds Wheels, Inc., in the sum of $5 million.

The claimant filed a complaint for declaratory relief and
for damages in the United states Bankruptcy Court in the
Central District, California.  According to the complaint,
the debtor engaged in a conspiracy for the general purpose
and intent to further the debtor's illegal and improper
scheme to eliminate plaintiffs as its competitor in Japan.

The complaint alleges that the debtors intentionally made
wheels from the American Molds without the knowledge and/or
consent of plaintiffs, and resold the wheels to
distributors who would resell the wheels to retailers in
Japan, in violation of the parties' contract, and in
violation of the trademark rights of plaintiffs.

BOYDS WHEELS: CNB Seeks Conversion to Chapter 7
Secured Creditor, City National Bank (CNB) is seeking an
order converting the Chapter 11 case of Boyds Wheels, Inc.,
debtor to a Chapter 7 case.

CNB has expressed its "exasperation" that debtor continues
to operate this case with six (6) employed professional
firms, even though the debtor's pre and post-petition
operations were an unmitigated disaster, all of the
debtor's physical assets were sold at auction, and CNB's
liens encompass nearly every remaining asset in this
administratively insolvent estate.

CNB submits that good cause exists to convert this Chapter
11 case to a Chapter 7 case.  More disturbing than the
bank's as yet undetermined claim and the significant
administrative rent claims in this case is the unmitigated
and unrestrained increase in professional fees which are
accruing against the estate.  The bank states that the only
remaining step in this case is to distribute the debtor's
cash on hand to CNB, liquidate what few remaining assets
exist and pursue any avoidance actions which may exist.

According to CNB, the continuing losses to this estate are
both measurable and insurmountable.  It is apparent that
there is no reasonable likelihood of the debtor's

BRUNO'S: Seeks Employment Agreements with 5 Key Execs.
PWS Holding Corporation, Bruno's, Inc. et al., debtors,
seek court approval of employment agreements with the Chief
Executive Officer of the debtor and four senior officers.  
The debtors state that at this critical sage of the Chapter
11 cases, the debtors cannot afford the loss or lack of
dedication of the Key Executives.

The aggregate amount of severance payments that would be
made if all the Key Executives were terminated and entitled
to severance under the Employment Agreements would be
approximately $2,652,500 plus the cost of providing
continued medical and life insurance coverage, which may
aggregate approximately $45,000.

BURT REYNOLDS: Prepares Reorganization Plan
Attorney Bob Gilbert of Carlton Fields Ward Emmanuel Smith
& Cutler, West Palm Beach, Fla., who represents the
creditors in Burt Reynolds' chapter 11 case, said that the
creditors are still arguing some terms of Reynolds'
proposed reorganization plan, but that they are
substantially in agreement, according to the Associated

Reynolds' plan will go before Bankruptcy Judge Paul Hyman
at a hearing tentatively scheduled for October. In his
plan, creditors would receive up to $500,000 of Reynolds'
future earnings over two years. When he filed for chapter
11 protection in 1996, he listed more than $10 million in
liabilities.(ABI 04-Aug-98)

CHERRY COMMUNICATIONS: Court Approves Disclosure Statement
The court last week approved Cherry Communication Inc.'s
Disclosure Statement and set a Sept. 2 confirmation
hearing.  In addition, the creditors' committee agreed to
support Cherry's reorganization plan after the network
access provider made some non-economic changes to the
plan's terms.  Chief among the modifications was the
addition of a post-confirmation "monitoring trust" to
monitor the reorganized company's performance following the
merger with Atlanta-based World Access Inc. (Federal
Filings Inc. 03-Aug-98)

GREATE BAY: Sues To Stop Property Option Transfer
Greate Bay Hotel & Casino Inc. sued three Pratt family
members and former directors, as well as parent Greate Bay
Casino Corp. (GBCC), in an effort to block them from
conveying an option on property adjoining its Sands hotel
to outside parties "who will then be in a position to block
the Sands' expansion plans and/or extract concessions in
connection with the GBHC chapter 11 reorganization."
Citing the "strategic location" of the property occupied by
the Midtown Bala Hotel, Greate Bay's complaint asserts that
the property "is of significant importance to the business
and future growth prospects of the Sands." The property in
question is one of the parcels of land that cuts off the
Sands from the major traffic artery in Atlantic City,
Pacific Avenue. Greate Bay noted that its general counsel
began negotiating an option to buy the property from FGP
Bala Inc. in 1997 at the direction of Jack and Edward
Pratt. When the option was obtained, however, the Pratts
directed that it be in the name of PHC Acquisition (a GBCC
subsidiary) rather than Greate Bay. (The Daily Bankruptcy
Review Copyright c August 4, 1998; ABI 4-Aug-98)

HEWLETT PACKARD: 13,000 Take 10 Day Vacation to Save Money
Hewlett-Packard Co. is cutting its managers' pay and
National Semiconductor has asked 13,000 employees to take
10 days off to cut costs as the economic turmoil in Asia
reduces demand and prices for U.S. computers and  
chips. HP's order for a three-month, 5 percent pay cut for
mid- to upper-level managers to pare expenses comes after a
series of disappointing earnings reports. The pay cut will
affect some 2,400 managers and will take effect in  
the fourth quarter.

HOMEPLACE STORES: Seeks to Establish Bar Dates
HomePlace Stores, Inc. and its three corporate affiliates
seek entry of a court order to establish September 14, 1998
as the last date for all creditors and certain interest
holders to file proofs of claim in these Chapter 11 cases.

ICH CORPORATION: Announces Sale of Perry Park
ICH Corporation (Amex: IH) announced that it has completed
the sale of its Perry Park golf course and real estate  
development located in Owen County, Kentucky to Par-Tee
LLC, a Kentucky limited liability company, for $3.1 million
in cash.  The company also announced that it has closed on
the court-approved settlement of its claims against
various  former officers, financial and legal advisors and
directors of the company.   Pursuant to the terms of that
settlement, the company has received $340,000 in cash and
67,652 shares of its own common stock from the settling
parties.  In addition, under the settlement agreement, one
of the settling parties has also agreed to provide the
company with discounted financial advisory services worth  
up to $150,000.

With the sale of Perry Park and the settlement of these
claims, the company has completed the liquidation of all of
the non-cash assets which it retained under the chapter 11
plan of reorganization of old ICH Corporation.

ICH is a Delaware holding corporation which, through its
operating subsidiaries, is the second largest operator of
Arby's restaurants, currently operating 177 Arby's
restaurants located primarily in Texas, Michigan,  
Pennsylvania, Florida and California.

KLEID CO: Collects $6.2 Million in Outstanding Debt
Since it filed for bankruptcy protection in March, Kleid
Co. Inc., New York, has collected more than $6.2 million in
outstanding debt, according to a newswire report. The list
owner/manager portion of the collected funds is $5.2
million, and of that, more than $4.1 million has been paid,
according to the company. An additional $666,000 is being
prepared for disbursement this week, while $260,000 has
been place in escrow under the Creditors' Committee
counsel's control. When Kleid filed for chapter 11
protection in the Southern District of New York, its
liabilities totaled $14.6 million and assets were $9.9
million; outstanding receivables were $9.3 million.
Outstanding debt now stands at $2.7 million. (ABI 04-Aug-

LIBERTY HOUSE: Seeks Special Counsel to Board of Directors
Liberty House, Inc., debtor and debtor in possession is
seeking entry of an order authorizing the employment and
retention of Cleary, Gottlieb, Steen & Hamilton as special
counsel for the debtor's Board of Directors.

The debtor states that the firm's retention is necessary in
order to provide the Board with qualified counsel with
substantial experience in complex commercial litigation and
sophisticated reorganization situations.  Such advice will
be required by the Board in connection with the Malkin
Action and such other actions as have been threatened by
the JMB Board and with respect to the various strategic
issues that will need to be addressed in order to bring
this case to a successful and expeditious conclusion.

The debtor believes that the Board should be provided with
independent legal advice and that such representation will
benefit creditors generally.

MIDCOM COMMUNICATIONS: Court Confirms Committee's Plan
Judge Waler Shapero entered an order on July 10, 1998
confirming the modified plan proposing the liquidation of
the debtor's assets and distribution of the proceeds to

Unclassified Claims, Priority Claims and Secured Claims are
not impaired by the plan.  Nothing in the plan shall be
deemed to impair the rights of WinStar under the WinStar
Asset Purchase Agreement or the WinStar Escrow Agreement.

All Convenience Claims and Unsecured Claims are impaired by
the plan.  All interests are impaired by the plan.

NAL FINANCIAL: Committee Taps Stroock & Stroock & Lavan
The Official Committee of Creditors Holding Unsecured
Claims of Nal Financial Group, Inc. and its affiliates,
debtors, seek to hire Stroock & Stroock & Lavan as counsel
for the Committee.

NASHUA CORPORATION: Reports Continued Losses
Nashua Corporation (NYSE: NSH) today announced its
financial results for the second quarter ended July 3,
1998.  Nashua reported a second quarter net loss from
continuing operations of $2.3 million, or $.35 per share,
on sales of $40.1 million.  Excluding the $2.8  million
pretax loss from the Company's 37 percent investment in
Cerion Technologies, Inc. (Cerion), the net loss from
continuing operations was $.4 million or $.07 per share.  
This compares with a net loss from continuing operations of
$2.9 million, or $.45 per share, on sales of $43.2 million
during  the second quarter of 1997.

The net loss for the second quarter of 1997 included a
pretax charge of $2.8 million for costs associated with  
restructuring certain distribution channels and aligning
the workforce with  demand levels.  Results for the second
quarter of 1998 include a $1.1 million after-tax gain on
the sale of the Photofinishing Group, which is being
reported as a discontinued operation.

For the six months ended June 30, 1998, Nashua reported a
net loss from continuing operations of $2.9 million, or
$.45 per share, on sales of $84.6 million, compared with a
net loss from continuing operations of $3.7 million,  
or $.58 per share, on sales of $87.7 million in the
comparable 1997 period.   

Results from continuing operations for the first six months
of 1998 included pretax losses of $3.1 million, or $.30 per
share, from the Company's investment  in Cerion.  Results
for the first six months of 1997 included restructuring and  
unusual pretax charges of $2.8 million.

In April 1998, Nashua completed the sale of its
Photofinishing Group. Gerald G. Garbacz, Nashua's Chairman,
President and Chief Executive Officer, stated, "Nashua's
second quarter operating performance, excluding the  
impact of Cerion's results, is an improvement over last
year and the prior quarter.  Nevertheless, we fell short of
our goal of achieving profitability due to a number of

PARAGON TRADE: Denied Motion for New Trial
Paragon Trade Brands, Inc. (NYSE: PTB) announced that the
District Court in Delaware had denied its motion for a new
trial or to alter or amend the patent infringement judgment
issued to The Procter & Gamble Company on December 30,
1997.  Commenting on the ruling, Bobby Abraham, Chief
Executive Officer of Paragon, stated, "With the
Court's decision on our motion behind us, the path is now
clear for us to prosecute our appeal of the judgment.  Our
motion for a new trial was the last procedural matter to  
be completed prior to activating our appeal.  We continue
to believe that our  products do not infringe any valid
patent and will vigorously pursue our appeal  in the
Federal Circuit Court."

As previously reported, the Delaware District Court issued
its judgment on December 30, 1997 finding that P&G's two
patents related to the "inner leg gather" feature of a
diaper were valid and infringed by Paragon's Ultra  
diapers.  Damages in the amount of approximately $178.4
million and an injunction were entered against Paragon in
the Delaware Court.  As a result of the P&G judgment,
Paragon filed for relief under chapter 11of the
Bankruptcy Code on January 6, 1998.

PETRIE RETAIL: Seeks Another 30-Day Exclusivity Extension
Still claiming that the filing of a reorganization plan is
imminent, Petrie Retail Inc. is seeking an extension of its
exclusive periods to file a plan and solicit plan
acceptances to Sept. 14 and Nov. 19, respectively.  "The
Debtors seek the requested extension as a precautionary
measure to permit the Debtors, the Creditors' Committee and
Warburg [Pincus Ventures L.P.] additional time, if
necessary, to finalize the Plan and Disclosure Statement
and commence the confirmation process,"
the apparel retailer said. (Federal Filings Inc. 03-Aug-98)

PINNACLE BRANDS: Court Approves Borrowing Up to $13.25M
Pinnacle Brands Inc. won court approval to borrow up to
$13.25 million on an interim basis pending an Aug. 10 final
hearing on the full $20 million debtor-in-possession
financing agreement with the company's prepetition secured
lenders.  While authorizing interim borrowing of up to
$13.25 million, the stipulated order notes that as of July
24, the lenders have only agreed to advance $12.25 million.
(Federal Filings Inc. 03-Aug-98)

PITTSBURGH PENGUINS: Will Try to Avoid Bankruptcy
J. Garvin Warden, managing partner of Cornerstone Capital
Advisors, who was appointed Friday to help turn around the
Pittsburgh Penguins, said that he will try to avoid having
the team file for bankruptcy and to keep hockey in
Pittsburgh, the Associated Press reported. Warden, who
oversaw the chapter 11 reorganization and subsequent sale
of the Italian Oven restaurant chain, said he will try to
reverse a trend in which the Penguins have lost $37.5
million during the past two seasons. Former center
Mario Lemieux wants the remaining $33 million on his
contract paid immediately, and Civic Arena landlord
Spectator Management Group said its owed $545,000. Both
parties have sued the team. (ABI 04-Aug-98)

REGENCY HOMES: Home Contractor Declares Bankruptcy
Regency Homes Corp., whose aggressive style once made it
the largest private home contractor in Maryland, declared
bankruptcy yesterday, affecting hundreds of customers and
creditors in metropolitan Baltimore.

The builder is estimated to have 150 to 200 pending
contracts with homebuyers who have hundreds of thousands of
dollars tied up in deposits and escrow accounts.
Yesterday's Chapter Seven federal bankruptcy filing means
the company is out of business.

Industry experts labeled Regency's demise as the largest by
a Maryland homebuilder. According to Paul Trinkoff,
Regency's attorney, the bankruptcy filing contains 119
pages of creditors. Trinkoff also said the Regency
Corp. --  the builder's parent company -- would be filing a
Chapter Seven bankruptcy  petition today

In 1996, the company bought out its sole partner -- British
construction giant Y. J. Lovell -- with the help of $9
million from Grotech Capital Group, a Baltimore venture
capital firm.

Regency continued to seek other sources of capital to
finance its expansion and got a $14 million infusion last
year from Bankers Trust -- $4 million up front and a $10
million unsecured credit line.

The height of Regency's operation came in 1996, but as it
continued to expand it was unable to service its debt.
Sales offices were sporadically closed, economic problems
began to mount and Regency's sales and market share  
began to slip.

In 1987 it showed housing revenues of $5.6 million on 48
settlements. But by 1996 Regency had revenues of $128
million on 679 settlements and last year it showed revenues
of $130 million, according to the last numbers
available.(Baltimore Sun - 07/31/98)

SOUTHEAST BANKING: Trustee Announces Record Date
The bankruptcy trustee for Southeast Banking Corporation
today announced that he has asked the U.S. Bankruptcy Court  
to fix a record date of August 11, 1998 for holders
of certain bonds to  participate in the next distribution
to creditors of the failed bank holding  company.

In papers filed with the Bankruptcy Court in Fort
Lauderdale, Fla. on July 29, 1998, the trustee sought
authority to make a previously reported distribution of up
to $115 million in the company's Chapter 7 bankruptcy
case, filed in 1991.

Most of the proceeds will go to the holders of subordinated
bonds issued by Southeast over a period of several years
prior to the bankruptcy filing, including three separate
series of bonds issued in the United States. If approved by
the Court the distribution will be payable to
holders of record of  those bonds as of August 11, 1998.

Subject to approval by the Bankruptcy Court, the
distribution will be made by Jeffrey H. Beck, the Fort
Lauderdale attorney and bankruptcy estate trustee  
appointed in April to succeed William A. Brandt Jr. Upon
his appointment as  trustee, Beck also became Successor
Agent to the Federal Deposit Insurance  Corporation as
Receiver for the failed Southeast Bank, N.A. Mr. Beck is  
represented by Mark D. Bloom of Greenberg Traurig, P.A. in
Miami, who made the court filing on his behalf.

Beck stated that as much as $100 million of the proposed
distribution will come from a combination of cash on hand
in the bankruptcy estate and money to be paid into the
estate from the Receivership of Southeast Bank, N.A. The  
distribution may also include up to $15 million from an
anticipated federal tax refund.

The bankruptcy estate has already made or commenced three
prior interim  distributions to creditors and bondholders
in the total amount of approximately  $201 million. This
fourth distribution would leave sufficient funds in both
the Receivership and the bankruptcy estate to pay disputed
claims, anticipated costs of administration and litigation
and a further distribution to creditors at a later date.

Southeast Banking Corporation filed for bankruptcy in
September of 1991, immediately following the seizure of its
wholly-owned subsidiary banks by federal and state

TRITON ENERGY: Reports Second Quarter Loss of $150 Million
Triton Energy (NYSE: OIL) reports a second quarter 1998
loss of $150 million, compared with a loss of $14.8
million, or $0.41 per diluted share, in the 1997 second  
quarter. Total revenues for the quarter were $36.4 million
versus $32.6 million a year ago, a 12 percent increase.

As previously announced, included in second quarter 1998
results is an after-tax charge of $141.1 million (non-
cash), or $3.86 per share. Included in the charge is $72.6
million related to a decision to discontinue and write-off  
exploration activities in certain countries and a $68.5
million full cost ceiling limitation test write-down (oil
price related) of the company's Colombian assets. Oil and
gas reserve quantities are unaffected by the ceiling  
test write-down.

During the quarter, production from the Cusiana and
Cupiagua fields averaged 312,000 (gross) barrels per day
compared to 187,000 (gross) barrels per day in the second
quarter of last year, a 67 percent increase. The benefit  
of increased oil production was offset by lower oil prices,
which averaged $12.80 per barrel compared with $15.91 in
the prior year's quarter. Production from the fields during
July averaged 342,000 (gross) barrels per day.

Results for the first six months of 1998 were a loss of
$107.3 million, or compared with a loss of $11.5 million, a
year earlier. Revenues were $72.6 million and $66.3 million
for the respective periods, a 9 percent increase.

As part of Triton's corporate restructuring and cost
reduction plan, an additional 47 positions, mostly in
branch offices around the world, have been eliminated.
Including the 65 positions eliminated in the Dallas office
last  week, combined staff reductions equal approximately
43 percent of the worldwide  work force.

The London, Guatemala City and Shekou (China) offices are
being closed while other locations will reduce staffing and
the scope of their activities.  In addition, all
exploration activities and support functions are being
centralized in the Dallas office.

"Our plan to reduce general and administrative expenses by
about $25 million annually has been largely implemented. We
have reduced staff and associated operating costs in all
disciplines," said Bob Holland, Triton's interim Chief
Executive Officer.

Triton Energy Limited (NYSE: OIL) is a Dallas-based
international oil and gas exploration and production
company primarily focused on large-scale projects and
exploration opportunities around the world. The Company has
major projects under way in Latin America and Southeast
Asia. It is actively exploring for oil and gas in these
areas, as well as in southern Europe, Africa  and the
Middle East.

UNISON HEALTHCARE: Seeks Time to Assume or Reject Leases
The debtors, Unison Healthcare Corporation, Inc., together
with the wholly owned operating subsidiaries, as debtors,
state that due to the large number of unexpired leases of
nonresidential real property under which the debtors are
lessees, the debtors require more than sixty days to fully
evaluate all of their leases and to decide whether to
assume or reject each lease.  

The debtors operate approximately 20 residential Healthcare
Entities, and several additional Ancillary Entities in
states across the country.  The leases are the central,
critical component of debtors' operations, and ultimately,
of a successful plan of reorganization.  

In addition, the debtors are currently involved in active
negotiations with the major creditors in the case in order
to formulate a plan of reorganization.  The plan, which the
debtors intend to file no later than August 15, 1998 will
address the treatment of each of debtors' nonresidential
real property leases which have not yet been assumed or
rejected.  The debtors request an extension of the deadline
to provide for an additional ninety days, up to and
including October 22, 1998, in order to allow them to
determine the treatment of its nonresidential real property

V.O.C. ANALYTICAL: Order Directs Appointment of Trustee
Judge Paul G. Hyman, Jr. entered an order appointing a
Chapter 11 Trustee in the case of V.O.C. Analytical
Laboratories, Inc.

WINTERSILKS: Files Chapter 11 Petition
WinterSilks, a Middleton catalog company that specializes
in silk clothing, underwear, sleepwear and accessories,
filed for bankruptcy protection Friday.

In a statement, the company said it was forced to file for
Chapter 11 protection when its major lender, American
National Bank & Trust Co., of Chicago, refused to extend
credit for the 1998 holiday season. The company
said  a sales slump in the most recent fiscal year brought
on the difficulty.

If approved by the court, a Chapter 11 filing will allow
the company to reorganize so that it can pay its debts.
WinterSilks asked the court to allow it to continue to
honor payroll and  customer obligations, said attorney
William J. Rameker, of Murphy & Desmond, 2  E. Mifflin St.

Rameker also said Graham Webb International Limited
Partnership, of  Minneapolis, has agreed to buy out the
$4.2 million loan from the Chicago bank and is willing to
lend another $2.3 million to WinterSilks to keep the
company  going into the fall.

This is a crucial time for WinterSilks, Rameker said,
because it is printing catalogs and ordering merchandise
from China. Delays could jeopardize holiday sales.  
Documents filed in U.S. Bankruptcy Court in Madison
indicate that WinterSilks has assets of $5.2 million and
liabilities of $7.1 million.  According to the court
filings, WinterSilks had $34.8 million in gross sales in
the fiscal year ended June 30, 1998. It had $33.9 million
in sales in 1997 and $30.5 million in sales in 1996.
(Wisconsin State Journal - 08/01/98)


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