TCR_Public/980910.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, September 10, 1998, Vol. 2, No. 177
                  
                   Headlines

ABC INTERNATIONAL TRADERS: Case Dismissed
BARNEY'S: Seeks Authorization to Retain Houlihan, Lokey
CAI WIRELESS: Plan Faces Shareholder, IRS Opposition
CITYSCAPE FINANCIAL: Notice Regarding Solicitation of Votes
COLUMBIA/HCA: S&P Cuts Outlook to "Negative"

CRAWDADDY'S: Bugs in The Booze Leads to Bankruptcy
FULCRUM DIRECT: Committee Applies To Retain Bayard Firm
HARRAH'S JAZZ: Court Okays Changes To Reorganization Plan
INTERNATIONAL WIRELESS: Capital Deficiency Problems
KIA MOTORS: $2 Billion of Kia's Debts Written Off

LIBERTY HOUSE: Court Authorizes Rejection of Leases
LONDON'S ROYAL OPERA HOUSE: Temporarily Closed Due to Debt
LONG JOHN SILVER'S: Seeks Exclusivity Extension
LYNX GOLF: Notice of Bar Date of October 21, 1998
MOLTEN METAL: Future in Doubt After Investors Pull Support

MUSTANG RANCH: Brothel files for Bankruptcy
NET TELECOMMUNICATIONS: Order Grants Employ of Attorney
PARAGON TRADE: Seeks Nod To Pay Reclamation Claims
PARAGON TRADE: Seeks Authorization For CPI To Sell Assets
PEGASUS GOLD: Objection to Bondholders' Proofs of Claim

PEGASUS GOLD: Objections To Disclosure Statement
PINNACLE BRANDS: Plan To Auction Assets Met With Interest
SNAKE EYES: Files Chapter 11
SNAP-ON INC: To Cut 1100 Jobs
WSR CORPORATION: Counsel Seeks to Withdraw

               *********

ABC INTERNATIONAL TRADERS: Case Dismissed
-----------------------------------------
An order was entered in the U.S. Bankruptcy Court in the
Central District of California on February 10, 1998
dismissing the Chapter 11 case, ABA International Traders
Inc. d/b/a Micro Games of America and d/b/a MGA
Entertainment.


BARNEY'S: Seeks Authorization to Retain Houlihan, Lokey
-------------------------------------------------------
Barney's, Inc. et al. seeks court authorization to retain
Houlihan Lokey Howard & Zukin Financial Advisors, Inc. as
the debtors' trademark appraiser for the purpose of
determining the fair market value of the "Barneys New York"
trademark.

Houlihan Lokey will review and analyze the information
supplied by the debtors and other publicly accessible
sources to prepare a written report expressing its opinion
of the fair makrket value of the Trademark. The conclusions
of the firm will be based on valuation methods and
techniques that Houlihan Lokey considers appropriate under
the circumstances.  Houlihan Lokey will be paid a fee of
$40,000 for its valuation services and preparation of its
report including expenses


CAI WIRELESS: Plan Faces Shareholder, IRS Opposition
----------------------------------------------------
A group of CAI Wireless Systems' non management
shareholders charged that CAI's prepackaged plan of
reorganization has not been proposed in good faith and is
"predicated on a valuation of the assets and the enterprise
value of the Debtors which is seriously flawed." The
shareholder group accused CAI, Merrill Lynch and the
noteholders of trying to siphon valuable equity interests
in the company from their rightful owners to creditors and
management. (Federal Filings Inc. 9-Sept-98)


CITYSCAPE FINANCIAL: Notice Regarding Solicitation of Votes
-----------------------------------------------------------
In The Wall street Journal, September 9, 1998, Cityscape
Financial Corp. and Cityscape Corp. published a notice
regarding solicitation of votes for their joint prepackaged
plan of reorganization.

A solicitation of votes for acceptance of the plan has been
announced with respect to the following securities:

12 3/4% Series A Senior Notes Due 2004; CUSIP NO.178778AF3

6% Convertible Subordinated Debentures Due 2006; CUSIP
Nos.178778AA4, 178778AB2; 178778ACO

6% Series A Convertible Preferred Stock and 6%Series B
Convertible Preferred Stock

Complete information and documents with respect to the
solicitation of votes for the joint prepackaged plan,
including the Solicitation and Disclosure Statement dated
August 28, 1998 and the Joint Plan of Reoganization are
available to the holders of the above securities from:

Bondholder Communications Group
30 Broad Street, 46th Floor
New York, NY 10004
(212)809-2663


COLUMBIA/HCA: S&P Cuts Outlook to "Negative"
--------------------------------------------
The Wall Street Journal reports on September 9, 1998 that
Standard & Poor's Ratings Services downgraded its outlook
on hospital company Columbia/HCA Healthcare Corp. to
"negative" from "developing."

The negative outlook by the firm follows a series of
hospital sales that will shrink the company significantly.  
S&P warned that Columbia's ratings could be lowered if
"earning levels are not realized," or if the company
proceeds with a share-repurchase program that would
increase the company's debt "past its stated 55% target."  
The ratings firm noted that the government investigation
has diverted management's attention from operations.


CRAWDADDY'S: Bugs in The Booze Leads to Bankruptcy
--------------------------------------------------
Problems for Crawdaddy's went from bad to worse Friday,
when the restaurant's status in U.S. Bankruptcy Court went
from reorganization (Chapter 11) to liquidation (Chapter
7).

Owner Ed Smith declined to talk about developments, only to
say a news release would be issued this weekend.

The Erie County Health Department cited the popular
waterfront restaurant with numerous problems, including
insects in bottles of liquor and crumbling kitchen walls.
The restaurant closed voluntarily Monday. (Buffalo News-
09/05/98)


FULCRUM DIRECT: Committee Applies To Retain Bayard Firm
-------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in
the chapter 11 cases of Fulcrum Direct, Inc., Fulcrum West,
LLC and Equipment Bond Purchaser, Inc., submits an
application for an order approving the appointment and
retention of The Bayard Firm as local counsel for the
Committee.  The Committee has also retained Ravin,
Sarasohn, Cook, Baumgarten, Fisch & Rosen as its lead
counsel.

The firm will provide legal advice, prepare applications
and motion and appear in court as necessary.  The committee
will ensure that there is no duplication of services
performed by the two firms.

The attorneys working on the case charge as their current
standard hourly rates between $200 and $330 per hour.


HARRAH'S JAZZ: Court Okays Changes To Reorganization Plan
---------------------------------------------------------
The U.S. Bankruptcy Court in New Orleans Thursday
approved the modifications to Harrah's Jazz reorganization
plan and tentatively set an Oct. 13 confirmation hearing
date. Harrah's Jazz expects the plan to go effective within
one month after confirmation and construction on the
unfinished casino to be completed about a year
later, however, the company will wait until the court
proceedings have concluded before pinning down specific
target dates. (Federal Filings Inc. 9-Sept-98)


INTERNATIONAL WIRELESS: Capital Deficiency Problems
---------------------------------------------------
International Wireless Communications Holdings, a San
Mateo, Calif.-based company holding interests in SMR and
cellular operators and licensees, cited "financial and  
political instability in Asia" as the final straw that
forced it to seek protection from creditors.  However,
financial problems have been apparent for some time. Last
January, the company engineered its biggest deal in
acquiring Radio Movil Digital, which held SMR properties in
Argentina, Brazil, Chile and Venezuela.  But within  
months, the Chile and Venezuela properties had been put up
for sale.  And in Asia, IWCH suffered losses on its equity
holdings in wireless operations in Indonesia and Malaysia-
countries whose currencies plummeted in value against  
the U.S. dollar over the last year.

In a May filing with the Securities and Exchange
Commission, IWCH acknowledged a "capital deficiency" giving
rise to "substantial doubt about its ability to  
continue as a going concern."  Vanguard had supplied $10
million through the purchase of convertible preferred stock
just two months earlier, but in the filing the company
listed long-term debt of $155.7 million as of March 31,  
along with a stockholders' deficit of $151 million and
redeemable convertible preferred stock in the amount of
$185.8 million.

IWCH's 40 percent participation in Star Digitel Ltd., a
Chinese cellular venture, also was a millstone around its
neck.  Star Digitel is a participant in plans to introduce
CDMA-based service in Beijing, but IWCH failed to complete
a $19 million share subscription in Star Digitel last June.  
Four of IWCH's eight directors resigned as the deal
faltered.

The Chapter 11 filing is another black eye for Vanguard
Cellular Systems Inc. [VCELA] and its top executives,
Haynes Griffin and Stephen Leeolou.  Griffin and Leeolou
also backed SMR operator Geotek Communications Inc., which
was  itself placed under a Chapter 11 petition earlier this
year. (Phillips Publishing, Inc. Land MobileRadio-09/04/98)


KIA MOTORS: $2 Billion of Kia's Debts Written Off
-------------------------------------------------                      
Local reports claim creditors of South Korea's ailing Kia
Motors Corp. has agreed to write off almost $2 billion of  
its debts to attract prospective buyers in a second round
of bidding.

State-run Yonhap news agency today reports creditors may
slash up to 24 percent the automaker's massive debt of $9.6
billion after its first auction was aborted as all four
bidders skirted conditions set by auction managers.

Yonhap cited sources saying Korea Development Bank and
other creditors are slated to announce final debt
restructuring terms Thursday. (UPI:Wall Street-09/08/98)


LIBERTY HOUSE: Court Authorizes Rejection of Leases
---------------------------------------------------
On August 31, 1998, the Honorable Lloyd King, entered an
order authorizing the debtor to reject the leases for the
Penthouse stores at Prince Kuhio Plaza, Kukui Grove,
Pearlridge Shopping Center and Windward Mall.


LONDON'S ROYAL OPERA HOUSE: Temporarily Closed Due to Debt
----------------------------------------------------------
Great Britain's Royal Opera House in London will close for
nearly a year in January to significantly reduce its heavy
debts, according to a newswire report. The opera will
reopen in December 1999 when its redeveloped site in
London's Covent Garden is expected to be ready. The Royal
Opera House has suffered financial crises for more than a
year, and was on the brink of bankruptcy last November. Sir
Colin Southgate, chairman of the opera house, said that a
total restructuring will be implemented. (ABI 9-Sept-98)


LONG JOHN SILVER'S: Seeks Exclusivity Extension
-----------------------------------------------
The debtors, Long John Silver's Restaurants, Inc. et al.,
seeks to extend the exclusive periods in which to file a
plan of reorganization and solicit acceptances thereto.
A hearing to consider the motion will be held on September
16, 1998.

The debtors state that they have made great strides toward
stabilizing their business operations and taking other
steps necessary to effectuate their ultimate
reorganization.  The debtors have obtained approval of a
significant post-petition secured financial facility in an
amount of up to $65 million.

Debtors' management and professionals have devoted
significant time and energy to analyzing and evaluation the
debtors' 477 leases.  The debtors received authorization to
reject approximately 73 leases to sites where the debtors
were no longer operating restaurants.  October 5, 1998 has
been set as the bar date in the case.  After the debtors
analyze the claims, they will be in a position to
articulate the terms of a confirmable plan of
reorganization.  The debtors have also obtained court
approval for the retention and severance programs.

The debtors request that the court extend the periods
during which only the debtors may file a plan and solicit
acceptances thereof to and including January 29, 1999 and
March 30, 1999 respectively.

LYNX GOLF: Notice of Bar Date of October 21, 1998
-------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of
California enters an order requiring that all entities that
hold or assert a claim against or interest in Lynx Golf,
Inc. f/k/a Lynx Acquisition Corporation, file a proof of
claim and/or proof of interest on or before the close of
business on October 21, 1998.


MOLTEN METAL: Future in Doubt After Investors Pull Support
----------------------------------------------------------
Molten Metal Technology, scorched by controversy over the
past two years, suffered another blow this week when its
major lenders withdrew financial support and left the
company's future existence in doubt.

A U.S. Bankruptcy Court in Boston, where Molten Metal filed
for Chapter 11 bankruptcy last year, Friday appointed a
trustee to run the company and  possibly liquidate the
assets -- including the waste-processing operations in Oak
Ridge.

Operations at Molten Metal's waste-processing facility in
Commerce Park will be suspended. Potential buyers are
looking at the company's other two businesses, including
the |Q-CEP Plant on Bear Creek Road in Oak Ridge that
processes resins from nuclear power plants.

The latest events apparently were sparked by Molten Metal's
request for additional funding from its lenders, headed by
Morgens Waterfall Income Partners. The financial group
earlier agreed to a $20 million loan in monthly  
increments, but Molten Metal recently asked for additional
cash advances of $6.5 million. That's when the lenders
balked and filed a motion with the Bankruptcy Court, asking
that a trustee run the company.

The lenders argued that Molten Metal's financial forecasts
for the company "clearly have been missed" and added:  "The
debtors clearly do not have a viable plan to conduct an
orderly liquidation, having pinned their hopes on new
money to enable business to continue as usual."

Molten Metal has been refurbishing the Q-CEP Plant to make
the Oak Ridge waste-processing operation more efficient,
but a state investigation last month confirmed a number of
safety problems -- including improper handling of  
radiation sources. The state issued an emergency order,
threatening to levy a $100,000 fine unless the company
quickly corrected the problems and met a  
series of other conditions.

Molten Metal last year blamed many of its problems of
negative news reports regarding a congressional
investigation, which raised questions about the  
company's dealing with the Department of Energy and
possible links to political donations by company officials.
(Knoxville News Sentinel; 08/22/98)


MUSTANG RANCH: Brothel files for Bankruptcy
-------------------------------------------
Owners of the embattled Mustang Ranch have turned to
federal court for protection under bankruptcy laws, and a
judge has ordered the brothel to quit spending money.
Assistant U.S. Attorney Mike Barr said the brothel is
taking in $20,000 a day but hasn't put any money in the
bank in weeks.

Meanwhile, Mustang Ranch is "hemorrhaging hundreds of
thousands of dollars," he told U.S. District Judge Howard
McKibben on Thursday.  The developments came the same day
the brothel's owners entered innocent pleas to a 33-count
federal indictment charging them and former Mustang Ranch
owner Joe Conforte with racketeering and money laundering
among other crimes.

Hearings on the bankruptcy applications are scheduled for
Oct. 5, and the criminal trial has been set for Oct. 13.
It's not likely it will begin that soon.  McKibben
authorized Ronald Meseberg, a special agent for the U.S.
Customs Service, to have access to all Mustang Ranch
property, including financial records, to audit its income
and assets.

In the bankruptcy filing, A.G.E. Corp., the holding company
that owns A.G.E  Enterprises Inc., lists assets of $4.8
million and liabilities of $48.6 million in federal tax
liens.   A.G.E. Enterprises lists assets of $31 million and
liabilities of $32.1 million.  The ranch is continuing to
operate, as is the neighboring Old Bridge Ranch,  
which also is in bankruptcy reorganization.

It is run by David Burgess, who is the nephew of Conforte's
late wife, Sally.  Burgess claims that Conforte continues
to hold a hidden interest in the Mustang Ranch and is
trying to put the Old Bridge Ranch out of business so he
can take it over if the federal government closes the
Mustang Ranch.

Barr earlier sought a court order appointing federal
bankruptcy trustee Jeri Coppa-Knudson to oversee the
brothel pending the outcome of the criminal case.
(Las Vegas Review Journal - 09/05/98)


NET TELECOMMUNICATIONS: Order Grants Employ of Attorney
-------------------------------------------------------
The Honorable Linda B. Riegle entered an order on August
20, 1998 in the case of Net Telecommunications, Inc.
approving the employ of Marjorie A. Guymon, attorney to the
debtor.


PARAGON TRADE: Seeks Nod To Pay Reclamation Claims
--------------------------------------------------
While vendors have been supportive of its efforts to
reorganize, Paragon Trade Brands Inc. said several vendors
have recently begun to grow impatient with the resolution
of their reclamation claims. Saying it is "vitally
important" to remain on good terms with vendors, the
disposable diaper manufacturer asked the court for
authority to grant about 20 vendors administrative expense
claims in lieu of reclamation claims, and to pay the
claims. Paragon said it "has adequate cash reserves
available to satisfy the valid Reclamation Claims," and
estimated that the claims total about $3 million, as
opposed to the $8 million in asserted reclamation claims.
The U.S. Bankruptcy Court in Atlanta has scheduled a Sept.
28 hearing on Paragon's request. (ABI 9-Sept-98)


PARAGON TRADE: Seeks Authorization For CPI To Sell Assets
---------------------------------------------------------
Paragon Trade Brands, Inc. seeks authorization to use
certain of its personal property, namely its stock in its
wholly owned subidiary, Changing Paradigms, Inc. outside of
the ordinary course of business, namely to authorize CPI to
sell its assets to a third party.  Paragon states that its
decision to cause CPI to sell its assets to House, Home and
Hardware LLC for $7 million and assumption of trade and
certain other payables, subject to adjustments is
reasonable and in Paragon's best business judgment.  The
break-up fee is limited to $140,000.


PEGASUS GOLD: Objection to Bondholders' Proofs of Claim
-------------------------------------------------------
Pegasus Gold, Inc.(PGI), POV Corporation, Pegasus Gold
Corporation and its subsidiaries all filed global
objections to proofs of claim filed by the Bondholders of
Pegasus Gold, Inc.

In 1995, PGI announced it s intention to purchase all
outstanding ordinary shares in Zapopan N.L., a publicly
traded Australian corporation.  BNY was appointed as the
Trustee for the bond holders.  In order to complete its
acquisition PGI sought to obtain necessary financing by
borrowing $115 million through the sale of subordinated
notes.

The Offering Circular described PGI's borrowing offering
6 1/4% Convertible Subordinated Notes due to mature on
April 30, 2002.  The Indenture between PGI and the Bank of
New York (BNY) as the trustee for the Notes sets out and
controls the terms of the notes.  PGI received proceeds of
$117 million on the issuance of the notes.

BNY, as Indenture Trustee for the holders of the notes
filed its uncategorized proof of claim in the PGI
bankruptcy.  Smith Barney, Inc. filed unsecured non-
priority claims against PGI arising out of the purchase of
the convertible subordinated notes.  Credit Suisse First
Boston Corporation filed its uncategorized proof of claim
in the PGI bankruptcy arising out of the purchase of the
Convertible Subordinated Notes.  Banca Unione Creditor
filed a secured claim, Credit Agricole Indosuez filed
multiple unsecured claims, and Kleinwort Benson filed
unsecured claims all arising out of the purchase of the
Convertible Subordinated Notes.

PGI argues that the proofs of claims of the bondholders are
general unsecured claims subordinated to all senior debt of
PGI.  PGI claims that the bondholders, as qualified
institutional buyers cannot dispute the merits or equity of
the subordination of their convertible subordinated notes.


PEGASUS GOLD: Objections To Disclosure Statement
------------------------------------------------
National Union Fire Insurance Company and Safeco Insurance
Company of America, object to the Disclosure Statement
Respecting debtors' joi9nt liquidating plan of
reorganization dated July 31, 1998.

Safeco has claims totaling in excess of $10 million against
Beal and Black Pine. Safeco states that the Disclosure
Statement fails to contain adequate information by failing
to state the extent that reclamation obligations were
created as the result of post-petition mining operations.

National Union is a co-surety with United States Fidelity
and Guarantee Company in connection with in excess of $30
million in reclamation bonds posted in favor of the State
of Montana for mining properties owned and operated by
Zortman.

National Union claims that the Disclosure Statement
contains inadequate information regarding the assets and
liabilities of the liquidating debtors, the anticipated
distribution to the various liquidating debtors' creditors
and the effect on the plan proposed in the Disclosure
Statement of the Intercompany Settlement Agreement.


PINNACLE BRANDS: Plan To Auction Assets Met With Interest
---------------------------------------------------------
Pinnacle has agreed to auction its sports trading
card business on Sept. 25 after a proposed sale to Toy Biz
Inc. met with opposition from the official creditors'
committee and U.S. Trustee, among others. Besides Toy Biz,
industry players Topps Co. and Upper Deck Co., as well as
Dallas-based Pinnacle's former owner, also are interested
and may bid. The bidding procedures call for the card maker
to file a model asset purchase agreement by today and
establish a Sept. 17 bid deadline. (Federal Filings Inc. 9-
Sept-98)


SNAKE EYES: Files Chapter 11
----------------------------
Snake Eyes Golf Clubs Inc., which manufactures golf clubs,
announced that it has filed for chapter 11 protection and
that it intends to sell its business at auction, according
to a newswire report. The Jacksonville, Fla., company plans
to hold the auction in about 45 days, in conjunction with
the bankruptcy court's approval. Snake Eyes has a $1.4
million "back up" sale contract with Venture Access
International, an investor group that will provide the
opening bid in the auction. (ABI 9-Sept-98)


SNAP-ON INC: To Cut 1100 Jobs
-----------------------------
Snap-On Inc. said yesterday that it will close more than a
quarter of its facilities, including at least two Midwest
factories, as it eliminates 1,100 jobs under a major
restructuring.

In addition, the Kenosha, Wis.-based toolmaker said it will
take a restructuring charge of $175 million in the third
quarter and warned that its operating earnings would fall
well below year-earlier results.

The restructuring, which the company had said was needed in
June, will cut 8.3 percent of Snap-On's 12,000-person work
force and shutter five factories, six warehouses and 45 to
50 offices in North America and Europe over the next 12 to
18 months.


WSR CORPORATION: Counsel Seeks to Withdraw
------------------------------------------
Gibbons, Del Deo, Dolan, Griffinger & Vecchione moves for
entry of an order granting the firm leave to withdraw as
co-counsel for WSR Corporation, R&S/Strauss, Inc., National
Automotive Stores, Inc. and National Auto Stores, Corp.
The firm now perceives that it may have a potential
conflict of interest and wishes to withdraw as co-counsel
to the debtors in the best interest of the estates.  The
debtors consent to the withdrawal.

                  *********

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to
conferences@bankrupt.com are encouraged.  
Bond pricing, appearing each Friday, is supplied by DLS
Capital Partners, Dallas, Texas.

S U B S C R I P T I O N   I N F O R M A T I O N     

Troubled Company Reporter is a daily newsletter, co-
published by Bankruptcy Creditors' Service, Inc.,
Princeton, NJ, and Beard Group, Inc., Washington, DC.  
Debra Brennan and Lexy Mueller, Editors.   

Copyright 1998.  All rights reserved.  ISSN 1520-9474.  
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