TCR_Public/980812.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 12, 1998, Vol. 2, No. 157
                    
                  Headlines

AHERF: Trustee Names Allegheny Health Creditor Panel
APS HOLDING: Seeks Nod For Retention Incentive Plan
AR ACCESSORIES: Union Pact Approved, Plan Seen Next Month
ASPEN MOUNTAIN AIR: Files For Bankruptcy Protection
BENNETT FUNDING: Claims Against Generali Settled for $125M

CAMBEX CORP: Quarterly Report Filed With SEC
DEBBIE REYNOLDS: The Price is Rising
GREATE BAY HOTEL: Taps Special Sales Tax Counsel
HYUNDAI MOTOR: Violent Clash Between Union and Management
INTERNATIONAL HERITAGE: Reports Law Suit

LIBERTY HOUSE: Court Approves Freeborn & Peters
LIVENT INC: Reports Investigation of Accounting Practices
MEDNET: Court Order Reported to SEC
NEXTWAVE PERSONAL: Hires Two More Law Firms To Pursue FCC
OLYMPIA HOMES: Plans to Liquidate if Plan Is Not Approved

PANCHO'S: Closing Restaurants to Reduce Debt
PITTSBURGH PENGUINS: NHL Says No to Bankruptcy
RELIANCE ACCEPTANCE: Effective Date Occurred July 31, 1998
TECHNIMAR: Files For Bankruptcy Protection
TIE COMMUNICATIONS: Court Approval For Sale

UNIVERSAL SEISMIC: Files Quarterly Report
VENTURE STORES: Selling Leases to May at $1 Each
WESTMORELAND COAL: Debtors' Motion to Dismiss Case

                 *********

AHERF: Trustee Names Allegheny Health Creditor Panel
----------------------------------------------------
The U.S. Trustee has appointed an official committee of
AHERF's unsecured creditors.  The panel consists of:  
Cardinal Health Inc.; MBIA Insurance Corp.; AmeriSource
Corp.; PNC Bank N.A.; Health America; indenture trustee
First Union National Bank; Aetna U.S. Healthcare Inc.;
Allegiance Health Care Corp.; and DVI Financial Services.  
The committee has retained Jones Day Reavis & Pogue as
counsel. (Federal Filings Inc. 10-Aug-98)


APS HOLDING: Seeks Nod For Retention Incentive Plan
--------------------------------------------------
APS Holding Corp. is seeking court approval to implement a
retention incentive plan designed to retain certain key
executives and employees "in the face of mounting
attrition." The auto parts distributor pointed out that it
has hired Blackstone Group L.P. to solicit offers for the
company's assets as an alternative to a stand-alone
reorganization plan, and said employees are aware that
operations at some stores and distribution centers may be
discontinued or sold in the near future.

APS noted that about 220 full or part-time salaried
employees and 873 full or part-time hourly employees
voluntarily resigned between Feb. 2, when the company filed
for chapter 11, and July 20. The proposed retention plan
would provide incentives to approximately 220 corporate
executives and key employees. (The Daily Bankruptcy Review
and ABI Copyright c August 11, 1998)


AR ACCESSORIES: Union Pact Approved, Plan Seen Next Month
---------------------------------------------------------
Court approval of the settlement between AR Accessories
Group Inc. and its union should enable the former leather
maker to file a liquidating plan sometime in mid-September.  
Under the settlement, the union will receive about $200,000
in satisfaction of the secured, administrative, and
priority claims of union employees.  About 170 former
employees are included under the agreement, which provides
for the assumption of the union's collective bargaining
agreement and does not include non-union workers. (Federal
Filings Inc. 10-Aug-98)


ASPEN MOUNTAIN AIR: Files For Bankruptcy Protection
---------------------------------------------------
Aspen Mountain Air (AMA), which provides scheduled airline
service to 22 cities in the U.S. and Mexico, announced
today that on Friday it voluntarily sought protection under
Chapter 11 of the U.S. bankruptcy code.  Simultaneously,
AMA requested and obtained an order from the Federal
bankruptcy court in Dallas approving interim financing that
will enable the carrier to continue its operations.

The airline is currently continuing to serve all of its
present destinations. All agreements with travel agents,
other airlines and credit card companies remain in force.

Aspen Mountain Air is the operating name of Exec Express
II, Inc., with principal operations in Grand Prairie,
Texas.  The company is a fully certified 121 air carrier
and operates a fleet of 15 jet-prop aircraft. The airline  
currently employs 470 people comprised of 168 pilots and
flight attendants, 203 station/customer service personnel,
50 maintenance personnel and 49 headquarters staff.

According to Ron Stone, Chairman and CEO of AMA, the
company has secured interim funding to continue operating
safely and efficiently.

"Filing for Chapter 11 protection safeguards AMA's assets
and provides us with the opportunity to reorganize by,
among other things, attracting new investors  or selling
the company.  Stone confirmed that a number of parties
have  expressed interest in the company and that
discussions have been in progress  for a transaction to
take place, whereby AMA could emerge from bankruptcy with  
a new owner.

"Our primary objective is to work in the best interests of
customers, employees and creditors," Stone emphasized.


BENNETT FUNDING: Claims Against Generali Settled for $125M
----------------------------------------------------------
Kaufman Malchman Kirby & Squire, LLP, and Bernstein,
Litowitz, Berger & Grossmann, lead lawyers for the  
plaintiffs in a class action in the Southern District Court
of New York and in the Bankruptcy Court for the Northern
District Court of New York, and the bankruptcy trustee for
the Bennett Funding Group, reached an agreement with  
Generali U.S. Branch and Generali Underwriters to pay
approximately  $125,000,000 to investors who acquired
securities issued by the Bennett Funding  Group. In the
class action and bankruptcy proceedings, the
plaintiffs and the  Bennett trustee alleged that Generali
was culpable for its issuance of certain  policies and
certificates in connection with insurance for
Bennett Funding, a Ponzi scheme that collapsed in March,
1996. The Generali settlement will be distributed through
the Bennett bankruptcy to save the additional cost to  
investors that would result from a distribution by the
class action lawyers.  Generali is the first defendant to
have reached a settlement in these proceedings.


CAMBEX CORP: Quarterly Report Filed With SEC
--------------------------------------------
Cambex Corporation filed a quarterly report with the SEC.  
Revenues for the three months ended April 4, 1998 decreased
70% from the comparable three months of the prior year due
to decreased sales of the Company's mainframe storage and
client/server storage products.

The gross profit of 5% for the first quarter of 1998 was
lower than the 39% achieved in 1997 due primarily to the
relative amount of fixed costs in relation to lower
revenues.

Operating expenses for the three months ended April 4, 1998
decreased 61% from the comparable three months of the prior
year due principally to the cost savings achieved through a
work force reduction and other expense controls put in
place.

On June 1, 1998, the Company raised approximately
$1,060,000, including approximately $460,000 from Joseph F.
Kruy, Chairman, President and Chief Executive Officer of
the Company, in cash from the issuance of 10% Subordinated
Convertible Promissory Notes. Under the terms of the Notes,
which are due on April 30, 2003, the holders may convert
the notes into shares of common stock at a conversion price
of $0.22 per share.
              
Subsequent to confirmation of the Plan, the Company paid
approximately $300,000 of pre-petition debt and $400,000 in
legal and professional fees. The remaining balance of
unsecured debt of approximately $4,300,000 will be paid
over a thirty month period commencing in October, 1998.


DEBBIE REYNOLDS: The Price is Rising
------------------------------------
The World Wrestling Federation and a Cleveland investment
group will buy the bankrupt Debbie Reynolds Hotel & Casino
Inc. of Las Vegas that once belonged to its El Paso-born
namesake. Cleveland restaurateur George Simon and WWF
parent company Titan Sports Inc. of Stamford,
Connecticut., bid  $10.65 million for the hotel. They plan
to convert it into a casino and performance center with a
wrestling theme.


GREATE BAY HOTEL: Taps Special Sales Tax Counsel
------------------------------------------------
Greate Bay Hotel and Casino, Inc., GB Holdings, Inc. and GB
Property Funding Corp., debtors, seek authorization and
approval to employ Edwards & Antholis, PC as special sale
stax counsel to the debtor.

The debtor seeks to employ the firm for the special purpose
of representing the debtor in litigation regarding a refund
of sales taxes on complimentary beverages provided to the
patrons at the Sands Hotel and Casino in Atlantic City, New
Jersey, which is presently stayed pending the outcome of an
appeal in a related case.


HYUNDAI MOTOR: Violent Clash Between Union and Management
---------------------------------------------------------
Hyundai Motor Co. Ltd. officials say 16 company officials
have been hospitalized after a violent clash while trying
to block unionists from disrupting operations at its main
Ulsan factory.

State-run Yonhap news agency reports today that Hyundai
Motors unionists attacked General Manager Yoon Kuk-jin and
15 other company officials to halt production at the Ulsan
plant, located 190 miles southeast of the Seoul.

The Hyundai Motors union launched a general strike in late
July, its fifth this year, to protest mass layoffs and
unfair labor actions.

Due to the labor-management dispute, Standard & Poor's
lowered the long-term credit ratings of Hyundai Motors
saying tension between the two sides have spurred
"production losses and raises concerns over the company's
ability to restructure its operation and reduce cost
effectively."

Unionists launched its first strike in late May in protest
company plans to lay off more than 3,000 thousand workers
following sharp falls in domestic sales and exports.

The Korea Automobile Manufacturers Association forecasts
that auto- parts suppliers may suffer losses as high as
$3.21 billion this year, leaving 100,000 workers out of
work. (UPI:WallStreet-08/10/98)


INTERNATIONAL HERITAGE: Reports Law Suit
----------------------------------------
International Heritage, Corporation filed a Form 8-K with
the SEC reporting that on July 10, 1998, a Complaint for
Declaratory Relief was filed in the U.S. District Court by  
Executive Risk Specialty Insurance Company. The plaintiff,
an insurance company, is requesting relief in the form of
a judgment declaring there is no coverage available to
defendants under the June 23, 1997 Directors and Officers
Liability Insurance Policy. Plaintiff alleges that the
claims arose from facts, circumstances or situations that
are excluded from coverage based on disclosures made by
defendants in their Application for the Policy.

The defendant, International Heritage, Incorporated, has
previously set forth in communications with Executive Risk
its position with respect to coverage under the Policy, and
believes there is no basis for denial of coverage.  
International Heritage, Incorporated intends to vigorously
defend this action.


LIBERTY HOUSE: Court Approves Freeborn & Peters
-----------------------------------------------
Judge Lloyd King, US Bankruptcy Judge, authorized the
employ by the debtor, Liberty House, Inc. of Freeborn &
Peters as special counsel.  By order entered July 17, 1998,
the debtor is authorized to employ Freeborn & Peters as its
consumer credit counsel.


LIVENT INC: Reports Investigation of Accounting Practices
---------------------------------------------------------
Livent Inc. announced that an internal investigation has
revealed serious irregularities in the company's financial
records. The problems were uncovered at the end of last
week by members of the company's new senior management
team,  put in place on June 12, 1998, as they were
preparing for their initial quarterly earnings report to
shareholders.

The irregularities involve improper recognition of revenue
and the failure to record, or the improper deferral and
capitalization of, expenses. While it is too early to
determine the precise amount or effect of the
irregularities, they appear to involve millions of dollars.
It seems virtually certain that the company's financial
results for 1996, 1997 and for the first quarter of 1998
will need to be restated. The company plans to request an
extension from Canadian securities regulators of the August
31, 1998 deadline for filing its results for the second
quarter of 1998.

The accounting firm of KPMG/Peat Marwick has been retained
to conduct a comprehensive review of the company's
financial records. Based on what the company has learned to
date, Garth Drabinsky, Livent's Vice Chairman and Chief  
Creative Director for Live Theater and former Chairman and
Chief Executive Officer, and Myron Gottlieb, Vice
President, Canadian Administration and former President,
have been suspended pending the outcome of a full
investigation.

Livent said that the matters discussed above are not
expected to have a significant adverse effect on its
current cash flow or its operations, although they could
give rise to an event of default or trigger other
obligations under the company's outstanding indebtedness
and other agreements.

Livent Inc. is a leading producer of theatrical
entertainment internationally.

Standard & Poor's  lowered its corporate credit rating on
Livent Inc. to single-'B'- plus from double-'B'-minus.

Standard & Poor's also lowered its rating on the company's
outstanding US$125 million 9 3/8% senior unsecured notes
due 2004 to single-'B'-plus from double-'B'-minus.

The ratings remain on CreditWatch with negative
implications.


MEDNET: Court Order Reported to SEC
-----------------------------------
Mednet, MPC Corporation filed a Form 8-K with the SEC
reporting that on August 3, 1998, the Honorable Linda B.
Riegle of the U.S. Bankruptcy Court for the District of
Nevada entered a Stipulated Order Granting Debtor A
Permanent Injunction Concerning Trading In Mednet
Securities. The Order declared the Amended Order Concerning
Trading in Mednet Securities, entered January 6, 1998, a
permanent injunction that will remain in effect until the
closing of MPC Corporation's bankruptcy case.

The Order also dismissed the adversary proceeding
referenced therein and declared that the Bankruptcy Court
shall retain jurisdiction over the bankruptcy matter for
all purposes. The Trading Order imposed certain
restrictions on the trading of Mednet, Mednet's equity
securities to preserve Mednet's net operating loss
carryforwards.


NEXTWAVE PERSONAL: Hires Two More Law Firms To Pursue FCC
---------------------------------------------------------
On the heels of the Federal Communication Commission's
request to disqualify NextWave Personal Communication
Inc.'s counsel, Weil Gotshal & Manges LLP, NextWave is
seeking approval to hire two law firms to pursue and
litigate its claims against the agency.  The personal
communications provider is seeking approval to hire Willkie
Farr & Gallagher as "special strategic FCC counsel" and
Lukas Nace Gutierrez & Sachs as "special FCC regulatory
counsel."  The court has not rendered a decision on the
FCC's request to disqualify Weil Gotshal. (Federal Filings
Inc. 10-Aug-98)


OLYMPIA HOMES: Plans to Liquidate if Plan Is Not Approved
---------------------------------------------------------
Olympia Homes, Altamonte Springs, Fla., said it will seek
liquidation of its assets if its proposed reorganization
plan is not accepted, according to The Orlando Business
Journal. The home builder is proposing a payment plan to
its 137 creditors in which unpaid employees and some local
lenders would be paid 100 cents on the dollar. Others,
including small construction firms, will receive less, and
other creditors would receive nothing. The company argues
that the distributions would be larger than if it has to
liquidate. Olympia filed chapter 11 in January. A
creditors' hearing is scheduled for August 11 in bankruptcy
court in Orlando.


PANCHO'S: Closing Restaurants to Reduce Debt
--------------------------------------------
Pancho's Mexican Buffet Inc., Fort Worth, Texas, announced
it will sell the land and buildings at five closed company-
owned restaurants to generate revenue in order to reduce
its debt, according to Reuters. The Mexican restaurant
chain lost $12.4 million for the quarter and reported that
increases in same-store sales have not sufficiently
improved operating results. After restructuring, the
company will operate 48 restaurants.


PITTSBURGH PENGUINS: NHL Says No to Bankruptcy
----------------------------------------------
The Pittsburgh Post-Gazette learned that National Hockey
League Commissioner Gary Bettman is strongly opposed to the
idea of the Penguins declaring bankruptcy, an option the
team has been exploring in recent months.  The NHL
constitution states that an owner "risks forfeiture" of a
franchise  that goes through bankruptcy, and Bettman has
made it clear that the league would seize the Penguins in
such an instance.

The bankruptcy issue is the main obstacle preventing the
team from settling its ownership feud. Roger Marino and
Howard Baldwin, equal partners since May 1997, have been
battling for control of the franchise for more than six
weeks, but  Baldwin has refused to cede his half without
guarantees that the Penguins would  not declare bankruptcy.

The Penguins, who have reported losses of $37.5 million the
past two seasons and have two lawsuits pending against
them, had been sending signals in recent weeks that Chapter
11 bankruptcy would provide the best vehicle for the team
to restructure its debt and rework several contracts it
considers to be cumbersome.

Much of the Penguins' red ink stems from the $33 million
they owe to retired center Mario Lemieux, who sued Marino
and the team two months ago over missed payments. The
Penguins are also being sued by Spectacor Management Group,
the company that runs the Civic Arena, for failure to pay a
$545,000 installment on a $1 million promissory note in
June. (Pittsburgh Post-Gazette; 08/08/98)


RELIANCE ACCEPTANCE: Effective Date Occurred July 31, 1998
----------------------------------------------------------
The Effective Date of the Fourth Amended Joint Plan of
Reorganization dated April 30, 1998 of Reliance Acceptance
Group, Inc., Reliaance Acceptance Corporation and Its
Subsidiaries, as amended, occurred on July 31, 1998.


TECHNIMAR: Files For Bankruptcy Protection
------------------------------------------
Technimar Industries Inc., of St. Paul, the company in
which the Minneapolis police and firefighters pension funds
are invested, filed for Chapter 11 bankruptcy Friday and
has 120 days to reorganize its finances. That plan depends
on whether Technimar can be sold.  It counts the
Minneapolis  police pension fund and the northeastern
Minnesota city of Cohasset as its  largest creditors.

An investor group led by Duluth businessman Jim Miner has
expressed interest in buying the company, said Doug Coy,
Technimar's acting chief executive officer. The ABI
reported on August 11, 1998 that a Texas-based tile company
is also interested in purchasing the company.

A bankruptcy filing is necessary to prepare Technimar for
any sale, Coy said. "The company has had a sordid past,"  
he said. "Any buyer wants a clean company."(Star Tribune
Twin Cities -08/05/98)


TIE COMMUNICATIONS: Court Approval For Sale
------------------------------------------
Convergent Communications Services Inc. of Englewood,
Colo., has received court approval to acquire the assets
and certain liabilities of financially strapped Tie
Communications for $40 million, the companies said.

Struggling under nearly $30 million of bank loans,
unsecured debt from suppliers and back taxes, Tie
Communications filed for bankruptcy protection about two  
months ago.

Convergent plans to integrate Tie's operations into its own
in the next 12 to 24 months.

Convergent sells communication services and products,
including local and wide-area networking services; local,
long-distance and Internet services; and computer and  
telephone equipment.

With the acquisition of Tie, Convergent becomes the
nation's largest independent distributor of Nortel, Mitel
and Nitsuko telephone equipment.

The company plans to bundle its services with Tie's and
aggressively sell the package across the companies' entire
customer base.

"Tie will prove a very strategic partner for us," said Phil
Allen, executive vice president at Convergent. "Together
we'll be in 35 markets with a customer base of 60,000
businesses. Tie gives us a very significant and loyal
customer base where we can sell our services."
(Kansas City Star - 07/24/98)


UNIVERSAL SEISMIC: Files Quarterly Report
-----------------------------------------
Universal Seismic Associates, Inc. reported to the SEC,
that overall revenues for the nine-month period were down
from $25.9 million to $17.3 million, or 33%, from the
comparable period in fiscal 1997. This decrease was
primarily due to a slow down in the data acquisition
activities as backlog was not replaced as rapidly as
contracts were completed.

The Company reported a net loss of $7.0 million for the
nine-month period compared with a net loss of $1.4 million
in the same period in fiscal 1997.

The Company had a net loss of $2,254,605 for the current
three-month period compared with $1,348,636 in the same
period in fiscal 1997.


VENTURE STORES: Selling Leases to May at $1 Each
------------------------------------------------
Venture Stores Inc., debtor seeks court approval at a
hearing on August 20, 1998, for the sale of certain
leasehold interest.

The debtor, Venture Stores, Inc. seeks approval of the Sale
Assumption and Assignment Agreement between the
debtor and The May Department Stores Company covering
crtain interests as lessee under ten leases.  The
consideration to be paid is $1.00 per lease plus assignee's
assumption of liabilities of assignor under the leases,
estimated to total approximately $529,419 plus $129,389 per
month.

The Assignee will be responsible for all pre-petition Cure
Amounts under the leases.  The leases all cover property
located in Illinois, with the exception of two leases, that
cover property located in Kansas.  The leases are subleases
under which the debtor was sublessee, and the successor
in interest to The May Department Stores Company.


WESTMORELAND COAL: Debtors' Motion to Dismiss Case
--------------------------------------------------
Westmoreland Coal Company et al., debtors, filed a motion
to dismiss their chapter 11 cases based on the following
developments:

1) Exceptional improvement in debtors' financial condition
which enables them to pay all claims in cash, with
interest, immediately and eliminates any present or
foreseeable future need for a financial restructuring under
Chapter 11 or otherwise, and

2) Substantial changes in the law since the filing of these
cases which preclude estimation of the present value and
payment currently of future but as yet unassessed Coal Act
liabilities.  

Debtors believe all creditors and the estates will benefit
from a dismissal.  The debtors request that the court
schedule a hearing on this motion at the earliest possible
date and in no event later than August 25, 1998.

The debtors state that the Funds' Plan is not confirmable
because it pays the Funds much more than their allowable
claims and violates the "fair and equitable" test.  It also
violates the code by distributing nothing to shareholders
would receive million of dollars in chapter 7 cases,
thereby violating the "best interest" test.

                  *********

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-
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Editors.   

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