TCR_Public/980820.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
     Thursday, August 20, 1998, Vol. 2, No. 163


ARIZONA CHARLIE'S: Debt Conversion Option Effective
BIG RIVERS: Status Report
DECORATIVE HOME: Seeks To Sell Glenn Manufacturing
DANDY MINING: Files For Bankruptcy Protection
DOEHLER-JARVIS: Seek Order Approving Exit Financing

DOW CORNING: Debt Holders Fear Term Sheet Effects
FIRST PACIFIC: No Funds Available to Meet Needs
FOOD COURT ENTERTAINMENT: Seeks Chapter 11 To Sell Assets
GENERAL WIRELESS: Notice of Confirmation Hearing
GRAND UNION: Reports Improved First Quarter

GRAND UNION: S&P's Concern About Condition of Store Base
HARVARD INDUSTRIES: Seeks Okay For $11M Greeneville Sale
LEVITZ FURNITURE: Needs Authority to Sell South Loop East
LIBERTY HOUSE: Court Approves Special Counsel
MMAN TEC: Trustee Named in Chapter 11 Case

MOBILEMEDIA: In Negotiations With Arch for Merger
PHOENIX INFORMATION: Equity Objects to Disclosure Statement
POCKET COMMUNICATIONS: Lenders Seek Extension for Plan
RDM SPORTS: Trustee To Employ Ross & Hardies

THE SLED DOGS: Emerges From Reorganization
THOMSON RECOVERY: Double Day's Financial Situation Updated
VITALE ENTERPRISES: Exclusivity Hearing Set For 9/14/98


ARIZONA CHARLIE'S: Debt Conversion Option Effective
On June 25, 1998 the Bankruptcy Court in the Chapter 11
proceedings involving the wholly owned subsidiary of Becker
Gaming Inc., Arizona Charlie's, Inc., had confirmed a
Consensual Plan of reorganization proposed by AC and High

Subsequently, UHFS, which had provided AC a financing
commitment, failed to honor that commitment to AC by July
31, 1998, which was the deadline under the Consensual Plan
for funding the payments needed for AC to accomplish the
Financing Option.  Consequently, the Debt Conversion Option
under the Consensual Plan has become effective. To date,
the AC affiliates, including the Company, have made a $1.5
million new value contribution to AC and released their
claims against AC, each as required under the Consensual

All undisputed trade creditors of AC have been paid as
required under the Consensual Plan. AC anticipates that the
claims of the holders of the AC Notes and the holders of
the CQC Noteholders Guaranty Claims will be paid on or  
around August 20, 1998 through funding to be provided by
High River in accordance with the terms of the Debt
Conversion Option under the Consensual Plan. (States SEC -

BIG RIVERS: Status Report
Big Rivers Electric Corporation, debtor, provides the court
with a status report regarding recent developments relating
to the bankruptcy case.

On June 29, 1998 and July 8, 1998, LG&E energy received the
approval necessary to implement Phase II of the LG&E Energy

AS a result of the approvals and because all conditions to
the effectiveness of the plan had been satisfied, Big
Rivers and LG&E Energy closed the LG&E Energy Transaction.  
On July 17, 1998, Big Rivers made the appropriate
distributions to creditors as required by the plan.  The
Effective Date has occurred and the plan has been
substantially consummated.

DECORATIVE HOME: Seeks To Sell Glenn Manufacturing
The debtors, Decorative Home Accents, Inc. and its
affiliates, seek court authority to sell their Glenn
Manufacturing Plant and related assets.

The debtors have determined that the products produced at
the Glenn Manufacturing Plant were no longer profitable,
and that it was in the debtors' best interests to exit from
the business of producing decorative bedding products.

As a result of exiting the bedding business, the debtors
determined that it was appropriate to sell the Glenn
Manufacturing Plant.

Of two potential purchasers, Dan River, Inc. submitted a
superior offer, for $3.8 million, subject to overbids and
Court approval.

Overbid offers must be at least $250,000 greater than Dan
River's offer, and the agreement provides a Break-up Fee of

DANDY MINING: Files For Bankruptcy Protection
A Mingo County coal company that owes the state more than
$1 million in workers' compensation premiums has filed for

Dandy Mining Inc., a contractor for Lo-Ming Coal Co., filed
for Chapter 7 bankruptcy July 17.

The company has more than $2.2 million in debts, including
$1,007,578 in unpaid workers' compensation premiums and
interest. The other debt is owed to the Internal Revenue
Service, the U.S. Mine Safety and Health Administration,  
the West Virginia Tax Department and local mine supply and
repair companies.

Dandy operated two underground mines for Lo-Ming Coal. It
is one of three Lo-Ming contractors that owe workers'
compensation premiums.

The bankruptcy filing also reported Dandy Mining owes wages
and benefits to 60 miners, but did not specify those debts.

Lo-Ming operated Cherry Point Coals Inc. and D.A. & H. Coal
Co., which also owe the state millions in back premiums.
(Charleston Mail -08/17/98)

DOEHLER-JARVIS: Seek Order Approving Exit Financing
The debtors, Doehler-Jarvis, Inc., and its debtor
affiliates are seeking entry of an order approving the
commitment letter to provide exit financing and granting
authority to pay fees.

A hearing to consider the adequacy of the information
contained in the Disclosure Statement is currently
scheduled for August 19, 1998.

The plan currently contemplates that exit financing will be
comprise of the facility from CIT with an addition $40
million of net proceeds generated through a rights offering
of New Junior Secured Debentures.  The plan also
contemplates that the debtors will actively solicit and
obtain alternative financing transactions that would
provide the debtors with the necessary post-confirmation
liquidity from third parties on more favorable terms.

After filing the plan, the debtors continued to work with
other potential lenders, including Lehman Brothers, Inc.
and Lehman Commercial Paper, Inc. to obtain an alternative
financing transaction commitment. On July 31, 1998, the
debtors concluded negotiations with Lehman for its
commitment to provide the debtors with a $165 million
credit facility comprised of $100 million of term loans and
$65 million of revolving loans.  In the debtors' business
judgment, the terms of the Lehman Commitment provide the
debtors with the flexibility necessary to obtain exit
financing on the best possible terms.

The debtors seek approval of the Lehman Commitment and
authorizing the debtors to pay immediately to Lehman a
"Commitment Fee" of $825,000.

DOW CORNING: Debt Holders Fear Term Sheet Effects
While Dow Corning, its joint venture parents, and the tort
claimants' committee are still trying to turn
their term sheet into a reorganization plan, the transcript
of the Aug. 6 hearing indicates that attorneys for
commercial debt holders are bracing for less favorable
treatment under the impending proposal than
the second amended plan.  

Much of the hearing before the focused on whether the term
sheet represents a $3.2 billion settlement, as touted,
possible misinformation in the market for Dow Corning debt,
and the treatment of commercial claims under a plan, the
transcript shows.  Counsel for the commercial creditors'
committee, acknowledged that the term sheet resolves most
of the major economic issues regarding the treatment of
tort claims, but pointed out that many other issues must be
settled before the former silicone implant manufacturer can
file a new plan.  Noting that the treatment of tort claims
and the treatment of commercial claims are intertwined, he
said the term sheet specifically addresses the treatment of
commercial claims. (Federal Filings Inc. 19-Aug-98)

FIRST PACIFIC: No Funds Available to Meet Needs
On February 10, 1997, First Pacific Networks Inc.
voluntarily filed for relief under Chapter 11 of the
United States Bankruptcy Code.  The petition was filed in
the United States Bankruptcy Court for the Northern
District of California, San Jose Division. The Company is
operating as debtor-in- possession under the Bankruptcy
Code. The Company has had limited capital available for
reorganization and has been seeking a strategic
relationship or capital infusion for such purpose and
currently has no funds available to meet its current or
future operating needs.  

Any trading of the Company's stock at this time should be
considered highly speculative. The Company entered into a
letter agreement on July 31, 1998 to sell substantially all
of the assets of the Company to American Sterling
Corporation, a privately held company.  The letter
agreement was subject to a definitive purchase agreement
and Court approval of bidding procedures.  On August 6,
1998 the Court issued an order approving bidding procedures
to be used in the event that any third party wishes to
submit a competitive bid or offer. On August 10, 1998, the
Company filed a motion with the Court seeking approval of
the sale of substantially all of the assets of the Company
pursuant  to an Asset Purchase Agreement with ASC.
(States SEC- 08/19/98)

FOOD COURT ENTERTAINMENT: Seeks Chapter 11 To Sell Assets
New York-based Food Court Entertainment Network Inc. filed
for chapter 11 last week in Wilmington, Del., to complete
the sale of its assets and an orderly liquidation. The
company was created in 1992 to establish a national
television network to broadcast programming to shopping
mall food courts, however, "the Debtor was never able to
sell sufficient amounts of advertising to be commercially
viable." In April, the company agreed to sell substantially
all its assets and operating agreements for 20 malls to
Prime Spot Media U.S.A. for $450,000. In July, the parties
agreed to reduce the scope of the sale to 12 malls and the
sale price to $255,000. Subsequently, the parties
entered into a separate agreement for the remaining eight
malls at a price of $167,000. Food Court Entertainment's
liabilities total $1.1 million. (The Daily Bankruptcy
Review and ABI; Copyright c August 19, 1998)

GENERAL WIRELESS: Notice of Confirmation Hearing
On July 17, 1998, the Bankruptcy Court approved the
Disclosure Statement of General Wireless, Inc. and its
affiliated debtors as containing adequate information.  A
hearing will be held commencing on August 31, 1998 to
consider the second amended Plan of Reorganization of
General Wireless, Inc. and GWI PCS, Inc. and third amended
plan of reorganization of the subsidiary debtors originally
filed on June 19, 1998.

GRAND UNION: Reports Improved First Quarter
The Grand Union Company (GUCOV-OTC) announced significantly
improved first quarter results. The Company said that
EBITDA (earnings before interest, taxes, depreciation,
amortization, unusual and extraordinary items) for its 16-
week first quarter ended July 18, 1998, totaled $31.1
million, more than a threefold increase over the $9.6
million reported for the same period last year. The
increase resulted primarily from continued improvement in
expense control in all facets of the business as well as
improved gross profit.

With two fewer stores this year, sales during the first
quarter totaled $691.9 million, a decrease of 2.3% from
sales of $708.0 million during the same period of the prior
year. Comparable store sales for the first quarter
decreased 1.4%, primarily as a result of the adverse effect
of unusual weather conditions in the Company's Northern
Division. The Company's Southern and Eastern Divisions,  
with stores operating in metropolitan New York, Long
Island, New Jersey and Connecticut, had positive comparable
store sales.

J. Wayne Harris, Chairman of the Board and Chief Executive
Officer, said, "This encouraging first quarter performance
was achieved despite the fact that our Company was
undergoing a major capital restructuring during the entire
period.  With the restructuring now complete, we are a new
company with a bright future and a clear strategic vision.
The Company is financially stronger than at any time in the
past 10 years, and our team is committed to making Grand
Union one  of the premier food retailers in the Northeast.

"As we move forward, we have the benefit of an experienced
and innovative management team and excellent store
locations. We will immediately embark on a major capital
development program, which will include the construction of
new stores and renovations and enlargements of existing
stores. The strategic plan includes customizing store
offerings to better serve the needs of local
customers and further enhance our performance.

"At the same time, we have developed a pattern of
aggressive merchandising in every area in which we operate.
We are already experiencing the positive impact
of those programs with an improving overall sales trend in
the latter part of the first quarter that is continuing
into the second quarter.

"We are excited about the long-term prospects for Grand
Union. The management team is fully focused on making Grand
Union one of the most successful food retailers, providing
excellent value and service to our customers, new  
opportunities for associates and increased value for

Grand Union's capital restructuring eliminated nearly $600
million in high-cost debt from its balance sheet, reducing
annual interest payments by approximately $72 million. The
Company now has approximately $381 million in long-term
debt, including capitalized leases and its new credit

The $32.5 million of interest expense for the first quarter
is comprised primarily of $16.9 million on the Old Senior
Notes, $8.1 million on bank financing and $6.2 million of
capital lease interest payments. Emergence from  
bankruptcy eliminated the $16.9 million of interest on the
Old Senior Notes and  the entire $2.3 million of accrued
preferred stock dividends.

For the first quarter, the Company reported net losses of
$54.4 million before unusual and extraordinary items,
compared to $79.2 million during the same  
period of the prior year. After an unusual charge of $4.5
million for expenses related to its bankruptcy filing, an
extraordinary charge of $1.7 million related to prepaid
expenses on refinanced debt and the previously mentioned  
accrual of $2.3 million for preferred stock dividends, the
Company reported net losses for the first quarter of $62.9
million compared to a net loss of $81.3 million in the
prior year. There were no comparable unusual or
extraordinary charges during the first quarter last year.

GRAND UNION: S&P's Concern About Condition of Store Base
Standard & Poor's today assigned its single-'B' corporate
credit rating to Grand Union Co.

In addition, Standard & Poor's assigned its single-'B'
rating to the company's $230 million five-year term loan
facility and $70 million five-year
revolving  credit facility.

The ratings reflect Standard & Poor's concern about the
overall condition of its store base relative to
competitors, weak operating performance, and only  
modest measures of cash flow protection expected.

Grand Union operates 222 supermarkets in six northeastern
states. The company emerged from bankruptcy on Aug. 17,
1998, with a greatly reduced debt burden.  Debt now totals
$388 million, down from its prebankruptcy level of $960
million. As a result, interest expense for the first full
year out of bankruptcy is expected to be less than 40% of
fiscal-year ended 1998's level.  The company's
postbankruptcy strategy includes using its improved
financial  flexibility to grow the business and remodel
stores, rather than to reduce  debt. The store base is in
great need of remodeling, with about half of the  stores
being untouched in the last decade. Although plans call for
the remodeling of stores hit hardest by competitors, Grand
Union may still be at a competitive disadvantage since its
average store size is only about 20,000  square feet of
selling space. In addition, the company's weak financial
condition may limit its ability to respond to new
competitive openings.

The company must continue to make progress in improving
operating performance. Earnings before interest, taxes,
depreciation, and amortization (EBITDA) dropped to a weak
$70 million in the year ended March 28, 1998, from $123
million the year before; the EBITDA margin fell to 3.1% in
fiscal 1998, from 5.3% in 1997. The decline was due to
reduced promotional income and lower gross margins.
Moreover, Grand Union's high labor costs hurt profitability
in light of same-store sales declines. The new management
team was able to stabilize the operating margin during the
second half of fiscal 1998 due to better buying, good
expense controls, and higher levels of allowance income.

The bank facility is rated the same as the corporate credit
rating. The company's $300 million in bank facilities,
comprised of a $230 million term loan and a $70 million
revolver, are secured by virtually all of the company's  
assets. Based on Standard & Poor's simulated default
scenario, it is not clear  that a distressed enterprise
value would be sufficient to cover the entire loan


Rating stability is based on a much improved capital
structure and expectations that the company can sustain
improved operating performance. Downside risk is  
mitigated by minimal near-term debt maturities as a result
of the new credit agreement, Standard & Poor's said.---

HARVARD INDUSTRIES: Seeks Okay For $11M Greeneville Sale
Harvard Industries Inc. is seeking approval to sell the
assets of its Doehler-Jarvis Greeneville Inc.
subsidiary to Tennessee Aluminum Casting LLC for about
$10.9 million in cash, subject to certain adjustments and
any higher offers.  In June, the auto parts manufacturer
sold its interior furniture division in St. Louis for
about $4.4 million, resulting in a gain of about $1.2
million. (Federal Filings Inc. 19-Aug-98)

LEVITZ FURNITURE: Needs Authority to Sell South Loop East
The debtors, Levitz Furniture Incorporated, et al., are
seeking an order authorizing the sale of South Loop East
Property and related relief.  The property is approximately
10.32 acres of real property and is located at 5757 South
Loop East, Houston, Texas.

The current offer for the property is in the amount of     
$3,325,000 by Weingarten Realty Investors.

The debtors are soliciting competing bids for the sale of
the South Loop East Property, which to be considered must
offer a minimum of $3,491,250.

If the debtors receive at least one such qualifying
competing bid, an auction will be held on August 25, 1998
at the offices of Skadden, Arps, Slate, Meagher & Flom LLP,
Wilmington, Delaware.

LIBERTY HOUSE: Court Approves Special Counsel
On August 4, 1998 the court entered an order authorizing
Liberty House Inc. to employ the firm of Oshima Chun Fong &
Chung, and particularly Deborah Macer Chun and David K.
Rair as special counsel to advise debtor on matters
relating to consumer credit.

MMAN TEC: Trustee Named in Chapter 11 Case
Marcus A. Watson, CPA, of the Finley Group in Atlanta, has
been named by the U.S. Trustee's office to oversee the
reorganization of MMan Tec, a facilities management and
maintenance company that filed chapter 11 in June,
according to The Atlanta Business Chronicle. When it filed,
the company listed assets of $16 million and liabilities of
$16 million. The company had won a huge Federal Express
contract in 1996, and grew from 500 to 2,5000 employees and
from $14 million in revenue in 1996 to $398 million last
year. Company President Alexander H. Lostocco said it's a
"classic case of growing too fast." According to some
creditors, salaries for the company's management are part
of the problem. (ABI 19-Aug-98)

MOBILEMEDIA: In Negotiations With Arch for Merger
Arch Communications Group, Inc. (Nasdaq:APGR) and
MobileMedia Corporation announced that they are in
negotiations regarding a definitive merger agreement
for Arch to acquire MobileMedia in a transaction that would
create the nation's second largest paging company with more
than seven million customers throughout the United States.
The companies indicated that, while negotiations
are in the  final stages, no assurance can be given that a
definitive agreement will be signed.

The transaction, if consummated, would combine Arch's
extensive nationwide presence in small- to mid-sized
markets with MobileMedia's strength in large markets and
major national accounts, creating a leader in the paging
industry with projected pro forma 1998 fourth quarter
annualized operating cash flow, EBITDA, of more than $240
million, excluding the benefit of potential cost savings,
and projected pro forma 1998 fourth quarter annualized net
revenues exceeding $815 million.

Arch said that the combination, if consummated, would
reduce Arch's leverage to approximately 5.6 times projected
pro forma 1998 fourth quarter annualized EBITDA based on
pro forma debt of approximately $1.35 billion. In addition,  
Arch expects a further increase in cash flow and decrease
in leverage from estimated cost reductions and operating
synergies to be implemented during the first year following
the acquisition, which are currently estimated to result  
in annualized cost savings of approximately $25 million
when fully realized.

Under the terms of the agreement under negotiation, Arch
would acquire MobileMedia for a combination of cash, the
assumption of certain liabilities, and the issuance of Arch
common stock and warrants to acquire Arch common  
stock. The transaction as contemplated would be implemented
through a Plan of Reorganization. The transaction would be
subject to a number of  conditions, including (i) approval
by Arch's shareholders; (ii)confirmation of  the plan of
reorganization by a final order of such Bankruptcy Court;
(iii)  approval by a final order of the Federal
Communications Commission of the  transfer of MobileMedia's
FCC licenses to Arch; and (iv) approval (or  expiration of
waiting periods) under the Hart Scott Rodino Act. Terms of  
Transaction Under Negotiation

Under the terms of the transaction under negotiation,
holders of MobileMedia's secured bank debt, which
aggregates $649 million in principal amount, would  
receive 100% of such principal amount in cash, comprised of
a $479 million payment from Arch and $170 million in
proceeds from MobileMedia's pending sale  
of its tower assets to Pinnacle Towers, Inc.

Arch intends to finance the $479 million cash payment with
$262 million in proceeds from additional bank debt and an
additional note offering and $217 million in cash from the
proceeds of the issuance of Arch common stock upon the
exercise of transferable rights to be issued by Arch to
MobileMedia's unsecured  creditors, whose claims aggregate
approximately $480 million. Assuming full exercise of such
rights, such unsecured creditors (or their
assignees) would be  entitled to acquire for cash between
34.3% and 52.1% of Arch's common stock  (depending upon the
market price of the Arch common stock during a designated  
period), and warrants to purchase another approximately
2.5% of the Arch common stock.

Arch's existing shareholders (including its Series C
preferred shareholders) would also receive warrants in
connection with the transaction to purchase 7% of Arch's
common stock. All warrants would have an exercise price of
$8.19 per share.

Under the proposed terms of the transaction, certain of
MobileMedia's largest unsecured creditors would agree in
connection with the transaction to act as standby
purchasers with respect to any shares of Arch common stock
and warrants not purchased upon the exercise of such
rights. As consideration for their backup commitments, such
creditors would receive warrants to purchase another  2.5%
of Arch's common stock.

In the transaction under negotiation, MobileMedia's
unsecured creditors would receive, in addition to the
rights, between 17.2% (if the rights entitled them  to
purchase 52.1%) and 31.3% (if the rights entitled them to
purchase 34.3%) of  Arch's common stock (depending upon the
market price of the Arch common stock  during a designated

Therefore, on a diluted basis, the existing Arch
shareholders (including the Series C preferred
shareholders) would hold, as of the effective date of the  
transaction under negotiation, between 34.4% and 30.7% of
Arch's common stock, while MobileMedia's unsecured
creditors would hold between 65.6% (if the  
existing Arch shareholders hold 34.4%) and 69.3% (if the
existing Arch shareholders hold 30.7%) of such stock.

Arch would also pay the administrative expenses of
MobileMedia as of the effective date of the transaction
(with a reduction of the shares to be distributed to
MobileMedia's unsecured creditors if and to the extent that
such  expenses exceed $34 million), and would repay
expected borrowings under MobileMedia's debtor in
possession borrowing facility. MobileMedia's existing  
shareholders would not receive any consideration under the
merger or the plan  of reorganization, and their shares of
MobileMedia common stock would be canceled.  Arch-
MobileMedia Combination

Arch believes that a combination of Arch and MobileMedia
would produce an industry leader with substantial
organizational, financial and strategic assets
and that, operationally, the two companies are an ideal fit
with complementary areas of sales, service coverage, and
channels of distribution. A combination would give Arch
comprehensive market coverage in all 50 states and a strong  
presence in key channels of distribution, including retail.
In addition, Arch believes that MobileMedia's two
narrowband personal communications services  
(NPCS) licenses should allow Arch to accelerate the
deployment of a NPCS network and expedite the introduction
of new paging products and services.

MobileMedia indicated that the transaction, if consummated,
would allow it to complete its Chapter 11 reorganization
and emerge from bankruptcy as part of a strong industry

MONTGOMERY WARD: Montgomery Ward Trims Losses
Montgomery Ward & Co., struggling to return to
profitability, narrowed its losses in the second quarter
thanks to strong sales of apparel and home furnishings.

In a filing with the Securities and Exchange Commission
Tuesday, the privately held Chicago-based said its losses
for the quarter ended June 30 narrowed 38 percent, to a
loss of $134 million from $216 million a year earlier.

The retailer, in Chapter 11  bankruptcy reorganization
since July 1997, said it took charges of $58 million for
its ongoing reorganization efforts. The company recently
closed nine underperforming stores, adding to the 100
closed last year.

Revenues fell 23 percent to $1.05 billion from $1.37
billion, which the company attributed to lost sales from
the store closures. But sales at stores open at least a
year, an industry measure of performance, also fell, by 5  

For the first six months of the year, the company lost $244
million, down 32 percent from $357 million in the year-ago

Revenue fell 24 percent to $2.05 billion from $2.69 billion
last year. Reorganization costs were $74 million in 1998.

Wards' turnaround strategy emphasizes a change in
merchandise content away from computers and electronics,
the company said.

Sales of apparel and home furnishings have shown
improvement. Apparel sales rose 6 percent and home
furnishings were up 13 percent in the first half of  
1998, the company said. (AP Wire: Business- 08/19/98)

PHOENIX INFORMATION: Equity Objects to Disclosure Statement
The Official Committee of Equity Security Holders of
debtors Phoenix Information Systems Corp., et al. object to
the motion for order approving Disclosure Statement and
related requests.

The Committee objects to the Disclosure Statement with
regard to the treatment of ballots by certain creditors
with respect to their claims and the method for counting
such ballots. The Committee also requests resolicitation of
votes for material changes to the plan.

POCKET COMMUNICATIONS: Lenders Seek Extension for Plan
Pocket Communication Inc.'s lenders are again asking the
court for an extension to file the disclosure statement
for their proposed reorganization plan, this time from Aug.
17 to Aug. 31.  "Many of the items that would have to be
included in a Disclosure Statement - the terms of the
licenses, the licensees and their structure, operative
documents, etc. - have to be negotiated with
or approved by the United States and the Federal
Communications Commission," the lenders noted. (Federal
Filings Inc. 19-Aug-98)

RDM SPORTS: Trustee To Employ Ross & Hardies
William G. Hays Jr., the Chapter 11 Trustee in the case of
RDM Sports Group, Inc. and its affiliate debtors, is
granted authority to employ Ross & Hardies as Special
Counsel to pursue litigation of the debtors' claims against
General Electric Company.

Saba Petroleum Company (Amex: SAB) today announced results
for the second quarter ended June 30, 1998.  In comparison
with the second quarter of 1997, total revenues decreased
22.9%, from $8.3 million to $6.4 million, while cash flow
(net income (loss) plus depletion, depreciation,
amortization and writedown of oil and gas properties)  
decreased from $2.2 million to $(647,000).  Total
production decreased 1.2%, from 620,781 barrels of oil
equivalent ("BOE") to 613,540 BOE.

Product Prices Register Decrease.  The average sales price
for oil and gas, expressed in terms of BOE, declined 27.7%
from $12.40 to $8.97. This decrease was responsible for a
reduction in oil and gas revenue of $2.1 million.

Net Income (Loss) and Earnings (Loss) per Share Decrease.  
Net income decreased from $507,000 to a loss of $9.6
million, and earnings (loss) per common share (primary)
decreased from $.05 to $(.88).  

The earnings loss is primarily due to the $7.1 million
writedown of oil and gas properties resulting principally
from declining oil prices.  Other contributing factors were
a 22.6% decrease in total revenues, an increase in general
and administrative expenses from $1.2 million to $2.1
million and an increase in interest expense from $440,000
to  $788, 000.  Approximately $500,000 of the increase in
administrative expenses was attributed to either non-
recurring expenditures or expenditures incurred as a result
of the contemplated merger with Omimex Resources, Inc. (PR
Newswire; 08/19/98)

THE SLED DOGS: Emerges From Reorganization
The Sled Dogs Company announced that their Plan of
Reorganization was confirmed by the Bankruptcy Court on
June 30, 1998 and declared effective July 30, 1998.  In
accordance with the Plan, the Company's common shares have
been exchanged for "new" common shares on a basis of fifty-
four  (54) old shares for one (1) new share.

THOMSON RECOVERY: Double Day's Financial Situation Updated
Double Day Inc. Interim President and CEO Edward C. Kane
made several announcements this week regarding the
company's financial situation, stating first that it is a
top priority to complete the 1997 year-end financial audit,
and first and second quarter financial figures, according
to a newswire report.

He also said that one of the company's subsidiaries,
Thomson Recovery Corp, filed for chapter 11 protection in
early July as a defensive step against Icon Financial. Icon
had executed its right to seize certain Thomson assets due
to delinquency of payments on an idle coal processing
system financed by Icon. Double Day tried to restructure
the debt by offering $100,000
in cash and full payment within 100 days, but the terms
were not acceptable to the lender. Based in Warren, Ohio,
Double Day is a resource recycling firm that specializes in
the conversion of non-hazardous industrial waste and by-
products into useable products.

VITALE ENTERPRISES: Exclusivity Hearing Set For 9/14/98
The court shall hold a hearing on the exclusivity
application of the debtor, Vitale Enterprises on September
14, 1998.  Any objections to the motion must be filed by
September 9, 1998.

The debtors filed an application for an order further
extending the co-exclusive periods during which only the
debtors and the Creditors' Committee may file a plan of
reorganization and solicit acceptances thereto.  The co-
exclusive periods currently expire on August 31, 1998 and
October 31, 1998 respectively


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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.  ISSN 1520-9474.  
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

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.  

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