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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 19, 1998, Vol. 2, No. 162

                  Headlines

AMERICAN RICE: Bankruptcy Filing Follows $5M Judgement
BN1 TELECOMMUNCIATIONS: Order Grants Exclusivity Extension
BENNETT COMPANIES: Payment to Unsecured Creditors
BOREALIS TECHNOLOGY: Files Quarter Report With SEC
COLUMBIA HCA: Files Quarterly Report With SEC

CROWN BOOKS: Taps Keen Realty
FPA MEDICAL MANAGEMENT: Committee Taps Counsel
GEOTEK COMMUNICATIONS: Announces Financial Results
GRAND UNION: 12% Bonds Plunge 2 3/4 Points
GRAND UNION: Completes Capital Restructuring

GUY F. ATKINSON: Atkinson's Turlock Assets Fetch $2.8M
HARRAH'S JAZZ: Hearing on Disclosure Statement Set
HEARTLAND WIRELESS: Doubts Going Concern Ability
LEVITZ FURNITURE: Possible Debt Financing
MARVEL ENTERTAINMENT: Posts 2nd Quarter Net Loss Of $12.8M

METRO HOME HEALTH: Creditor Files Chapter 7 Case
NORD RESOURCES CORP: Files Quarterly Report With SEC
PEGASUS GOLD: Court Approves Retention of Professionals
PITTSBURGH PENGUINS: Owners To Meet Again With Bettman                   
PORTACOM WIRELESS: Files Quarterly Report With SEC

SEARCH FINANCIAL: Faces Possible Trustee Appointment
UNISON HEALTHCARE: Files Plan With Bankruptcy Court
VANGUARD AIRLINES: Files Quarterly Report
WESTERN FIDELITY: Hearing on Motion to Convert Case

                *********

AMERICAN RICE: Bankruptcy Filing Follows $5M Judgement
------------------------------------------------------
American Rice Inc. (ARI), Houston, which filed chapter 11
last week with $180 million in liabilities and $200 million
in assets, said it filed one week after a Houston developer
demanded a turnover of assets as payment for a $5 million
judgment against ARI, according to The Houston Business
Journal. Earlier this year, the developer, Tenzer Co., won
a $5 million judgement. Its claim will now be heard in the
bankruptcy court. There are 500 holders of $105 million
worth of ARI mortgage notes, and numerous unsecured
creditors, including Tenzer Co., who are owed $75
million. ARI values its rice mills at $75 million, its rice
inventory at $10 million and olive inventory at
$50 million. The company is planning to reduce its debt by
selling its olive business for about $45 million, pending
bankruptcy court approval. (ABI 18-Aug-98)


BN1 TELECOMMUNCIATIONS: Order Grants Exclusivity Extension
----------------------------------------------------------
The court grants the motion of the debtor, BN1
Telecommunications, Inc. to extend the exclusive period
within which the debtor may file its plan of
reorganization.  The exclusive period to file the plan is
extended through September 15, 1998 and the time within
which the debtor must gain acceptance of such plan is
extended through November 16, 1998.


BENNETT COMPANIES: Payment to Unsecured Creditors
-------------------------------------------------
Approximately 9, 000 unsecured creditors of the bankrupt
Syracuse-based Bennett Companies today were mailed checks
totaling $40 million as the first interim distribution in
the $1  billion fraud case, described as the largest ever
involving a Ponzi-type scheme.

Representing 6 percent of the money owed to the mostly
individual investors comprising Bennett's unsecured
creditors, today's distribution marks the first time that
unsecured creditors in a bankruptcy resulting from a
Ponzi scheme have received such a large and widespread
distribution at such an early stage of a bankruptcy case.

"I am thrilled to be able to begin the process of repaying
individuals who were the unsuspecting victims of such a
massive swindle," said Bankruptcy Trustee Richard C.
Breeden, a former chairman of the U.S. Securities and
Exchange  Commission. Unlike most cases of this kind, where
unsecured creditors receive  little or nothing as
compensation for their fraud losses, Breeden expects that  
today's distribution will be the first of several
ultimately totaling more than  35 cents on the dollar.

"Though we hope to wind up the formal bankruptcy
proceedings as quickly as possible, we didn't want to delay
the repayment process to so many people for a day longer
than necessary. Having protected the interests of priority
and secured creditors, it is a happy occasion to begin
repaying our individual investors," Breeden added.

"When the case began, prospects for the unsecured creditors
were pretty bleak, as is always true in massive fraud
cases," Breeden continued. "After lots of hard work by many
people, I am now optimistic that we will achieve a  
substantial repayment for our unsecured creditors." Breeden
has previously reached settlement agreements with 200 of
245 banks that, at the beginning of the case, claimed to be
secured creditors.

The Bennett Companies filed for Chapter 11 bankruptcy in
March 1996, owing creditors more than $1 billion, in the
midst of an investigation by the Securities and Exchange
Commission and federal criminal authorities into
the  companies' alleged sales of fraudulent securities. It
was initially estimated that only $309 million of this debt
was recoverable; however, total recoveries to date have
reached approximately $500 million, including a $125
million  settlement in principle reached earlier this month
with Italian insurance  company Generali U.S. Branch and
its affiliate, Assicurazioni Generali SPA,  which provided
insurance on the Bennett securities.


BOREALIS TECHNOLOGY: Files Quarter Report With SEC
--------------------------------------------------
Borealis Technology Corporation has experienced significant
operating losses for each of the fiscal years beginning
with fiscal 1994 and for the six month period ended
June 30, 1998 and expects such losses to continue for the
foreseeable future.

The Company's sole product, Arsenal, is designed for the
customer relationship management market. To date, the
Company has shipped its Arsenal product to 6
customers. The Company derives substantially all of its
revenues from the sale of Arsenal licenses and maintenance
contracts for Arsenal. There can be no assurance that
Arsenal will ever achieve significant market acceptance or
that the Company will ever achieve profitability.

The net loss decreased from $2,448,593 for the three months
ended June 30, 1997 to $2,328,616 for the three months
ended June 30, 1998 and decreased from $4,359,652 for the
six months ended June 30, 1997 to $4,351,114 for the six
months ended June 30, 1998.

The Company's Chairman of the Board recently assumed the
position as Chief Executive Officer following the
resignation of its President and Chief Executive Officer.
The Company's future success substantially depends on the
efforts of certain of its officers and key technical and
other employees, many of whom have only recently joined the
Company.


COLUMBIA HCA: Files Quarterly Report With SEC
---------------------------------------------
Columbia/HCA Healthcare file a Form 10-Q with the SEC for
the period ended June 30, 1998.

The Company is currently in the process of restructuring
its operations in an effort to create a smaller and more
focused company. In May 1998, the Company announced
agreements to sell 22 hospitals and certain related
facilities to a consortium of not-for-profit entities for
an aggregate sales price of approximately $1.2 billion.
Proceeds from the sales are expected to be used to
repay bank borrowings.

On July 10, 1998, the Company entered into a $1.0 billion
term loan agreement with several banks which matures
February 2002. Proceeds from the $1.0 billion term loan
were used to reduce borrowings under the Company's
Revolving Credit Facility, which the Company anticipates
using to finance the $1.0 billion stock repurchase program.

The Company is the subject of a formal order of
investigation by the Securities and Exchange Commission.
Management believes the ongoing investigations and related
media coverage are having a negative effect on the
Company's results of operations. It is too early to predict
the outcome or effect that the ongoing investigations, the
initiation of additional investigations, if any, and the
related media coverage will have on the Company's financial
condition or results of operations in future periods.

Income from continuing operations before income taxes
declined 54.7% to $291 million in 1998 from $643 million in
1997, and pretax margins decreased to 6.1% in 1998 from
13.3% in 1997. Revenues decreased 1.3% to $4,781 million in
1998 compared to $4,845 million in 1997. The Company
incurred a $22 million net loss from operations of its
discontinued businesses in 1998 compared to net income of
$27 million during the prior year.


CROWN BOOKS: Taps Keen Realty
-----------------------------
Crown Books Corporation and its affiliated debtors apply to
the court for authority to employ Keen Realty Consultants,
Inc. as special real estate consultant.

The consultant shall have the authority and right to offer
the debtors' properties for sale or disposition.

Keen shall be paid $250 per hour for meetings with Crown
personnel or appearances in Bankruptcy Court or before the
creditors' committee.  As a transactional fee, Keen will
receive the greater of $2,000 or 4% of the gross proceeds
from the transaction pertaining to the property.

At the time of confirmation of a plan of reorganization,
the parties will determine if Keen is entitled to a
"Performance Fee", which shall be calculated in accordance
with provisions of the Retention Agreement.


FPA MEDICAL MANAGEMENT: Committee Taps Counsel
----------------------------------------------
The Official Committee of Unsecured Creditors of FPA
Mediacal Management, Inc., et al., filed an application for
entry of an order authorizing the employment and retention
of the law firm of Holleb & Coff, as counsel for the
Committee.

The firm will provide the Committee with legal advice with
respect to various matters arising in these cases,
including the investigation of the debtors' acts and
conduct, assets, liabilities and financial condition; and
the firm will render advice with respect to the formulation
of a plan of reorganization or liquidation.

The firm will be paid its usual hourly rates which range
from $240-$500 for a partner in the firm, $135-$240 for
associates in the firm and $70-$135 for Legal Assistants in
the firm.


GEOTEK COMMUNICATIONS: Announces Financial Results
--------------------------------------------------
Geotek Communications, Inc., (OTC:GOTKQ), provider of
mobile logistics systems, today announced financial results
for the three and six month periods ended June 30, 1998.
Consolidated revenues from continuing operations for the
three and six months ended June 30, 1998 were $6.6 million
and $13.6 million, respectively, compared  with $18.4
million and $29.5 million for the same periods of 1997.
This decrease was primarily attributable to the sale of the
company's European Network subsidiary, National Band Three
Ltd. ("NB3") in February 1998 and to fewer contract sales
to customers in South Korea.

Consolidated losses from continuing operations, for the
three and six months ended June 30, 1998 were $42.8 million
and $94.5 million, respectively, compared with losses of
$41.6 million and $76.7 million for the same periods in
1997. The weighted-average number of common shares
outstanding during the second quarter of 1998 was
130,518,000 compared to 62,798,000 during the same  
period in 1997. Net losses applicable to common shares for
the three and six months ended June 30, 1998 were ($0.33)
and ($0.33), respectively, compared with ($0.76) and
($1.41) for the same periods of 1997.  During the first  
quarter, the Company recognized a one-time gain of $58.6
million ($0.56 per share) on the sale of its European
Assets, impacting year-to-date earnings per share.

Revenues from continuing wireless communications operations
for the three and six months ended June 30, 1998 were $6.6
and $11.0 million, respectively, a decline of 36 percent
and 21 percent when compared to the same periods in 1997.
This decrease was primarily attributable to the sale of the
Company's NB3 subsidiary in February 1998 and to fewer
contract sales to customers in South  
Korea.

During the second quarter of 1998, engineering and
development expenses related to the enhancement of the
Company's digital wireless system and customer handsets,
declined 69 percent to $2.6 million and 41 percent to $9.2
million year-to-date. This decrease was attributable to
reduced research and development and to cost containment
programs implemented by the Company.

Selling and marketing expenses increased 13 percent to $6.1
million for the three months ended June 30, 1998, and 40
percent to $13.7 million year-to-date. This increase was
primarily attributable to higher marketing costs associated  
with the launch of the Company's Driver Logistics System.
General and administrative expenses declined 28 percent to
$6.2 million during the second quarter, the result of cost
containment efforts initiated at the end of 1997.  
Year-to-date general and administrative expenses, which
included transaction costs associated with the February
sale of the Company's European Assets, were relatively
unchanged when compared to the prior year.

Ongoing wireless communications activities generated losses
before interest, taxes, amortization and depreciation of
$22.6 million and $56.8 million, respectively, for the
three months and six months ended June 30, 1998. This  
compares to losses of $29.3 million and $52.6 million, for
the same periods of 1997.

Geotek filed a voluntary petition for bankruptcy under
Chapter 11 of the U.S. Bankruptcy Code, on June 29, 1998.
Concurrently with the filing, the Company obtained a $10
million DIP financing facility from S-C Rig III,
LP, an affiliate of the Soros Group, to finance current
operations during its reorganization process. As of June
30, 1998, there were no borrowings under the DIP Facility
and through July 31, 1998, the Company borrowed $7 million.


GRAND UNION: 12% Bonds Plunge 2 3/4 Points
------------------------------------------
Grocer Grand Union Co.'s (GUCO) 12% bonds plunged 2 3/4
points to 56.25-57 in Monday's trading, after the company
announced its emergence from Chapter 11 bankruptcy, and the
completion of its previously announced restructuring.

As widely reported, the reorganization plan was confirmed
by the U.S. Bankruptcy Court on August 5, after the firm
got support from its senior noteholders and preferred
stockholders in a consent solicitation completed June 22.

Grand Union's old senior notes, preferred stock, common
stock, and Series 1 and 2 warrants have been cancelled, and
new notes, warrants, preferred and common stock,
and warrants will be issued and traded under the symbols
GUCOV and GUCLV. (Daily High Yield Market Comment:
Federal Filings, Inc., August 18, 1998)


GRAND UNION: Completes Capital Restructuring
--------------------------------------------
The Grand Union Company announced today that it has
completed its previously announced capital  
restructuring and successfully emerged from its voluntary,
prepackaged reorganization.

The company also announced that it has closed on its new
$300 million credit facility underwritten by UBS AG,
Stamford Branch and Lehman Commercial Paper Inc.

"The successful completion of our capital restructuring
paves the way for an exciting future for Grand Union," said
J. Wayne Harris, Chairman of the Board and Chief Executive
Officer. "By eliminating approximately $600 million
in  debt, our company now has the opportunity and financial
strength to become a much stronger, more effective
competitor.

"Grand Union now has a vastly improved financial structure,
an experienced and creative management team and a solid
business plan focused on building sales, profits and
shareholder value. Our plan includes substantial investment
in new store development, the remodeling of existing
stores, new technologies to increase efficiency and improve
customer service, and merchandising programs designed to
make Grand Union one of the premier food retailers in the  
Northeast."

Grand Union's Plan of Reorganization was confirmed by the
U.S. Bankruptcy Court in Newark, N.J., on August 5,
following overwhelming support from the company's Senior
Noteholders and Preferred Stockholders in a consent
solicitation  completed on June 22, 1998.

Pursuant to the company's Plan of Reorganization, Grand
Union's Old Senior Notes, Old Preferred Stock, Old Common
Stock and Old Series 1 and Series 2 Warrants have been
cancelled. Holders of Old Senior Notes, Old Preferred Stock  
and Old Common Stock will receive information explaining
the process by which they may tender their Old Senior Notes
for New Common Stock and their Old Preferred Stock and Old
Common Stock for New Warrants. The company's New Common
Stock, under the symbol GUCOV, and new warrants, under the
symbol GUCLV, will commence trading on the OTC Market on a
"when, as and if issued" basis. Grand Union's Old Common
Stock, which had traded under the symbol GUCO, will cease  
trading on the OTC Bulletin Board as of the close of the
market today, Aug. 17, 1998. The company has a pending
application for listing of the New Common Stock on the
NASDAQ National Market.

Grand Union currently operates 222 retail food stores in
six Northeastern states.


GUY F. ATKINSON: Atkinson's Turlock Assets Fetch $2.8M
------------------------------------------------------    
Guy F. Atkinson Co. of California won approval to sell its
Turlock Yard and related assets to a joint venture of
Hilmar Farmers Warehouse (d/b/a Hatch Milling Co.) and
Forke Brothers, the Auctioneers Inc. for nearly $2.8
million. The joint venture outbid Ritchie Bros. Auctioneers
(America) Inc. and Rabin Bros. at a July 20 auction
supervised by the U.S. Bankruptcy Court in
San Francisco. Turlock Yard is 38.8-acre property in
Turlock, Calif., that Atkinson used to marshal
equipment for the company's various construction projects.
(The Daily Bankruptcy Review, ABI Copyright c August 18,
1998)


HARRAH'S JAZZ: Hearing on Disclosure Statement Set
--------------------------------------------------
In the Matter of Harrah's Jazz Company, Harrah's Jazz
Finance Corp., and Harrah's New Orleans Investment Company,
debtors, the court has set September 3, 1998 as the date of
a hearing to consider approval of the Disclosure Statement
of the debtors.  Objections must be delivered to counsel no
later than September 1, 1998.


HEARTLAND WIRELESS: Doubts Going Concern Ability
------------------------------------------------
Heartland Wireless Communications Inc. doubts its
ability to continue as a going concern without a
recapitalization or a restructuring of its senior
notes. "The company does not expect to generate sufficient
cash flow in 1998 and beyond to implement its business plan
and service the Company's existing indebtedness," Heartland
said. A Chapter 11 filing is possible if talks with
noteholders about restructuring Heartland's debt prove
unsuccessful. (Federal Filings Inc. 17-Aug-98)


LEVITZ FURNITURE: Possible Debt Financing
-----------------------------------------
Levitz Furniture Inc. is in discussions with several
unidentified "financing sources" about possible debt
financing in an attempt to increase the availability of
funds and provide alternative sources of liquidity. Levitz
has also been in talks with Household Bank N.A. to finance
and service the retailer's customer credit obligations.
Purchases of Levitz customer credit obligations, subject to
certain restrictions, are capped at $900 million under the
current account purchase agreement with General Electric
Capital Corp. (Federal Filings Inc. 17-Aug-98)


MARVEL ENTERTAINMENT: Posts 2nd Quarter Net Loss Of $12.8M
----------------------------------------------------------
Marvel Entertainment Group Inc. posted a $12.8 million net
loss for the quarter ended June 30, compared with a $41.9
million loss for the second quarter of 1997. Marvel said
its operations have showed a "slight profit" due to
marketing efforts for the sale of 1998 World Cup Soccer
Tournament stickers, while the publishing and trading card
markets continued to contract at a slower rate. The second
quarter loss was partially attributable to significant
reorganization costs related to Marvel's chapter 11
proceedings as well as interest expense and goodwill
amortization. (The Daily Bankruptcy Review and ABI,
Copyright c August 18, 1998)


METRO HOME HEALTH: Creditor Files Chapter 7 Case
------------------------------------------------
Capital Factors Inc., which operates Capital Healthcare
Financing, is trying to recover $1.3 million owed by
Houston's Metro Home Health Care Agency Inc. and has filed
a chapter 7 bankruptcy to force the company to repay the
July 1997 loan, according to The Houston Business
Journal. Previously, Capital filed a lawsuit against Metro
in district court alleging breach of contract, breach of
fiduciary duty and misappropriation of funds. Metro denies
all the allegations.  Metro, which is still operating, can
contest the bankruptcy or ask the court to convert the case
to a chapter 11 reorganization. (ABI 18-Aug-98)


NORD RESOURCES CORP: Files Quarterly Report With SEC
----------------------------------------------------
Nord Resources Corporation and its subsidiaries filed a
quarterly report with the SEC for the period ending June
30, 1998.  The Company incurred a net loss from continuing
operations of $1,298,000 and $3,637,000 for the three and
six months ended June 30, 1998 respectively and $4,031,000
and $6,354,000 for the same periods in 1997.

On April 23, 1997, the Company completed the sale of
substantially all of its kaolin assets.  Proceeds from the
sale totaled $9,453,000 at June 30, 1997. Further, the sale
allowed the sale of previously restricted investments which
provided cash of $2,619,000 during the six months ended
June 30, 1998.  With the sale of the kaolin operations, the
Company's business consists of a 50% ownership interest in
SRL and a 28.6% ownership interest in Nord Pacific.  The
Company anticipates that its cash balances at June 30, 1998
will be sufficient to fund its administrative activities
for the foreseeable future.  


PEGASUS GOLD: Court Approves Retention of Professionals
-------------------------------------------------------
In the case of Pegasus Gold Corporation, and related
entities, as debtors, the court has entered several orders
authorizing the retention of Cadwalader, Wickersham & Taft,
Special Counsel; Blake Dawson Waldron, Special Counsel;
Lukins & Annis, Special Counsel; Graham & Dunn, P.C.,
Special Counsel; and Allen Allen & Hemsley, Special
Counsel;


PITTSBURGH PENGUINS: Owners To Meet Again With Bettman                   
------------------------------------------------------
With talks between National Hockey League (NHL) Pittsburgh
Penguins owners Roger Marino and Howard Baldwin stalled,
reports say the two will meet once again with NHL
commissioner Gary Bettman.

I am very concerned about the well-being of the franchise,  
Baldwin said, and I have a vested interest in it. I am not
just going to walk away from it until I feel comfortable
about the way it s going to be run.

The Penguins have been suffering through a particularly
tough summer. Along with the on-going squabbles between
Baldwin and Marino, they have lost about $37 million over
the last two years and reports last week indicated the team  
was considering the drastic step of filing for bankruptcy
(ISWire Franchise News: August 10, 1998). The team has also
been faced with several lawsuits, including one from former
Penguins superstar Mario Lemieux (ISWire Franchise  
News: June 26, 1998). Marino was in Kansas City, Missouri,
this week to meet with municipal officials there about
options for the franchise in that city, but he said
Wednesday that he is still committed to staying in
Pittsburgh (ISWire Hockey News: August 12 and 13, 1998).
Pittsburgh Mayor Tom Murphy, who spoke with Marino this
week, said it would be virtually impossible for the  
Penguins to get out of their lease in the Pittsburgh Civic
Arena without putting up a huge sum of money. (Interactive
Sports; 08/17/98)


PORTACOM WIRELESS: Files Quarterly Report With SEC
--------------------------------------------------
Portacom Wireless Inc. and its subsidiaries filed a
quarterly report with the SEC for the quarter ended June
30, 1998.  For the quarter and six months ended June 30,
1998, the Company reported net losses from operations of
$107,700 and $824,470, respectively.  This compares to net
losses from operations of $1,483,689 and  $2,818,166 for
the respective comparable prior year periods.

In connection with the filing of the Company's bankruptcy
case, on March 23, 1998, the Company and VDC Corporation
Ltd. entered into an asset purchase agreement whereby the
debtor would sell its interest in MAC to VDC for 5.3
million shares of VDC common stock and up to $700,000 in
cash. An auction was held on April 23, 1998, after the
Company solicited higher and better offers for the MAC
shares and warrants. VDC was the only bidder at the
auction. The Bankruptcy Court approved the sale of the MAC
shares and warrants to VDC pursuant to the Post-Petition
Asset Purchase Agreement as modified by the stipulations
and the escrow agreement.

On June 23, 1998, the Company filed a Current Report with
the SEC relating to the consummation of the sale to VDC
Corporation, Ltd. 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 (formerly Metromedia Asia
Corporation).

Management does not believe that the Company's operations,
if any, will ever generate sufficient cash flow to finance
its working capital requirements.  Should the Plan be
confirmed by the Bankruptcy Court, the Company intends to
sell a portion of its shares of VDC common stock in order
to fund the operations of the Company from the date the
Plan is confirmed until the judicial dissolution of the
Company; however, while management will endeavor to set
aside sufficient reserves, there can be no assurance that
the proceeds from any such sales of shares of common stock
will ultimately generate funds sufficient to permit the
Company to fully implement the Plan.


SEARCH FINANCIAL: Faces Possible Trustee Appointment
----------------------------------------------------
The court overseeing Search Financial Services Inc.'s
Chapter 11 case has ordered the company to show cause why a
trustee should not be appointed in the case. The U.S.
Bankruptcy Court in Dallas issued the show cause
order Thursday after learning of a memorandum issued by
Search's chief executive officer last month releasing
officers and directors from liability on $1.2 million of
notes. The officers and directors, including CEO George
Evans, borrowed money from the subprime lender in 1996 to
buy company stock. (Federal Filings Inc. 17-Aug-98)


UNISON HEALTHCARE: Files Plan With Bankruptcy Court
---------------------------------------------------
On August 10, 1998, Unison HealthCare Corporation filed its
plan of reorganization and disclosure statement with the
United States Bankruptcy Court in the District of Arizona.
(States SEC -08/17/98)


VANGUARD AIRLINES: Files Quarterly Report
-----------------------------------------
Vanguard Airlines Inc. reports to the SEC in its quarterly
report for the quarter ended June 30, 1998; total operating
revenues increased 17% from $21.7 million for the quarter
ended June 30, 1997 to $25.4 million for the quarter ended
June 30, 1998.  This increase was primarily attributable to
an increase in the number of passengers and passenger yield
offset by a slight decrease in the number of daily flights.

Net income for the quarter was reported to be 1.3% of total
revenues.

Total operating revenues increased 8% from $43.1 million
for the six months ended June 30, 1997 to $46.7 million for
the six months ended June 30, 1998.

As of June 30, 1998, the Company had a working capital
deficit at June 30, 1998 of $15.6 million.


WESTERN FIDELITY: Hearing on Motion to Convert Case
---------------------------------------------------
In the case of Western Fidelity Funding, inc., the court
will h9olda hearing on August 31, 1998 to consider the
motion of the Unsecured Creditor's Committee to convert the
case form a Chapter 11 to 7 and objection by the debtor.


                ************

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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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