TCR_Public/980911.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
   Friday, September 11, 1998, Vol. 2, No. 178


AHERF: Units Get $7 Million From Frozen Funds
APS HOLDING: Enters Sale Agreements
APS HOLDING: Seeks 120-Day Extension To Exclusive Periods
AMERICAN RICE: ERLY Reports Cause for Filing
AMERICAN RICE: Trustee Seeks Relief From Stay

ASPEN AIR: Plans Cuts in Routes
CITYSCAPE FINANCIAL: Expects To File Sept. 30
CONSOLIDATED STAINLESS: Seeks Extension of Financing
CROWN BOOKS: Supports Application to Hire Keen Realty
FPA MEDICAL MANAGEMENT: Committee Taps Bayard Firm

FPA MEDICAL MANAGEMENT: No Bonuses For Employees
GLOBAL ASSOCIATES: Lease Obligations Assumed By Bedford
HARRAH'S JAZZ: Judge OKs Plan To Finance Construction
MOBILEMEDIA: Key Conditions Of Merger Deal Satisfied           
MOLTEN METAL: Trustee Applies to Employ General Counsel

PACIFICA HOSPITAL: Zinngrabe Warns of Closing
PARAGON TRADE BRANDS: Kimberly-Clark's Reply Brief
QUADRAX CORP: Committee Objects to Exclusivity Extension
SA TELECOMMUNICATIONS: Seeks Extension of Exclusive Periods

SNAKE EYES GOLF: Auction To Single High Cash Bidder
STAR NEWCO: Seeks Chapter 11 In Delaware
SUNBELT NURSERY: Asks to Examine Records of Paragon Capital
TOSHOKU AMERICA: Seeks Third Extension of Exclusive Period
UNISON HEALTHCARE: Fights to Retain PricewaterhouseCoopers

WELCOME HOME: Seeks To Assume 119 Leases and Office Lease
WESTERN FIDELITY: Hearing on Motion to Convert

DLS CAPITAL PARTNERS: Bond Pricing for Week of Sept. 8


AHERF: Units Get $7 Million From Frozen Funds
The Department of Health and Human Services (HHS) has
consented to release to two Allegheny Health Education &
Research Foundation subsidiaries about $6.8 million from
the $9 million HHS has frozen for prepetition services
rendered by the hospitals.  HHS requested relief from the
automatic stay to allow the agency to set off against the
more than $13 million in Medicare provider reimbursements
that HHS alleges were overpaid to the hospitals. (Federal
Filings Inc. 10-Sept-98)

APS HOLDING: Enters Sale Agreements
APS Holding Corporation (OTC Bulletin Board: APSIQ) today
announced that it has entered into agreements for the sale
of 10 distribution centers and the assets of 142 company-
owned stores through three separate sale transactions. The
proposed transactions, which are subject to bankruptcy
court approval and certain other conditions, are expected
to realize in the aggregate in excess of $100 million. The
funds will be used by APS to reduce its bank debt.

General Parts, Inc. ("GPI") and BWP Distributors Inc.
("BWP"), which operate under the brand name CarQuest, will
purchase the largest group of assets. Under the terms of
its purchase agreement, GPI will acquire 8 distribution
centers and the assets of 125 Big-A company-owned stores
serviced by these distribution centers. The Distribution
Centers GPI is acquiring are located in Albuquerque, NM,
Phoenix, AZ, Salt Lake City, UT, Denver, CO, Great Bend,
KS, Omaha, NE, Indianapolis, IN and Winchester, VA. Under
the terms of its purchase agreement, BWP will acquire APS'
Philadelphia, PA Distribution Center and the assets of 17
Big-A company-owned stores serviced by this distribution

Under the terms of a separate purchase agreement, The Parts
Source, Inc. ("PSI") will acquire APS' Ocala, Florida
distribution center.

According to Bettina M. Whyte, APS Chief Executive Officer,
there will be no interruption in service to the locations
affected by the proposed asset sales. During the pre-
closing period, APS will continue to operate the assets and
will operate its business at these locations in the normal
manner. Additionally, APS expects that most of the affected
employees will be offered positions with the acquiring

Following these sales, which are anticipated to close by
the end of October, APS will continue to operate 13
distribution centers and 212 company-owned stores under the
Big A and Big A Express banners. Additionally, APS will
continue to provide service to approximately 760 associated

"The proceeds from these asset sales present APS with an
opportunity to significantly reduce its bank debt," said
Ms. Whyte. "These sales are also likely to preserve
important distribution channels in the auto parts industry
and will also preserve a significant number of APS employee
jobs." Ms. Whyte added, "In the meantime, we will continue
to focus our attention on providing the highest quality of
service to our network of loyal associated jobbers, as well
as local installers, through our remaining Distribution
Centers and company-owned stores."

APS Holding Corporation is a national distributor of Big A
brand and manufacturer branded automotive replacement
parts, as well as tools, equipment, supplies and
accessories. It sells to approximately 1500 associated auto
parts stores through 23 distribution centers (including the
10 being sold as discussed above) and operates
approximately 354 company-owned stores (including
the 142 being sold as discussed above) under the Big A and
Big A Express trade names.

APS HOLDING: Seeks 120-Day Extension To Exclusive Periods
APS Holding Corp. is seeking another 120-day extension of
its exclusive periods to file a reorganization plan and
solicit plan acceptances, from Sept. 30 and Nov. 29 to Jan.
28 and March 28, respectively.  The auto parts distributor
has been actively pursuing the sale of certain assets and
has finalized, or expects to finalize shortly, several
asset sale agreements, but needs more time to complete the
process.  APS contended that an extension also is warranted
because of the additional progress the company has made
since the prior extension was granted in early June.
(Federal Filings Inc. 10-Sept-98)

AMERICAN RICE: ERLY Reports Cause for Filing
In a press release dated August 12, 1998, ERLY Industries
Inc. which owns 81% of American Rice, Inc. reported that in
order to complete ARI's previously announced financial  
restructuring more efficiently, ARI filed to reorganize
under Chapter 11 of the bankruptcy code.  ERLY was not part
of this filing.  ARI has been pursuing an out-of-court
financial restructuring since its previously announced
defaults on its bank debt and 13% Mortgage Notes due
2002.  The Trustee for the Notes has given notice of an
auction sale of ERLY's ARI stock, which was pledged to  
secure the Notes.  As part of the filing, ARI said it will
sell its olive business, pending court approval, and obtain
approximately $45 million.

AMERICAN RICE: Trustee Seeks Relief From Stay
U.S. Trust Company of Texas, N.A., as Trustee under a
certain Indenture by and between the Trustee and American
Rice, Inc., relating to $100 million 13% Mortgage Notes Due
2002 is seeking Relief from Stay and demand for adequate

The Trustee states that the collateral is used in the
debtor's daily business, is depreciating in value by reason
of the passage of time and continued usage by the debtor.

The Trustee states that if it is not permitted to foreclose
its liens and security interests and is not given adequate
protection, it will suffer irreparable injury, loss and

ASPEN AIR: Plans Cuts in Routes
Struggling Aspen Mountain Air said Thursday it must slash
the size of its route system, including a number of flights
from Dallas/Fort Worth International Airport.

"In order to successfully restructure the airline, we must
reorganize the route structure and reconfigure our fleet,"
chief executive Ron Stone said in a written statement.
"With our current assets, we fully intend to capitalize on  
all opportunities in the marketplace."

Under a code-sharing agreement with Aspen, American
Airlines Inc. has put its flight numbers on eight Aspen
Mountain routes.

Aspen also indicated it plans to end flights on routes that
receive federal subsidies under the government's "essential
air services" (EAS) program. But it will keep those routes
until a replacement carrier is selected, the airline  

In all, the airline offers 100 flights to 22 cities with 18
aircraft and 500 employees. The numbers will shrink after
the route cutbacks.

Aspen Mountain Air is owned by Peak International Inc.'s
Aspen Mountain Air Investments Inc. subsidiary. The company
acquired and renamed Lone Star Airlines in November 1996.
Lone Star was originally known as Exec Express II  
Inc.(Dallas Morning News - 09/04/98)

CITYSCAPE FINANCIAL: Expects To File Sept. 30
Cityscape Financial Corp. expects to file for bankruptcy on
Sept. 30, has set a voting deadline for its prepackaged
reorganization plan for the same date, and anticipates the
plan going effective on Nov. 1. The subprime lender has
received commitments from two lenders for a total of $200
million in debtor-in-possession financing.  Prepetition
lenders Greenwich Capital Markets Inc. and The CIT
Group/Business Credit Inc. have agreed to provide separate
$100 million DIP facilities, with the proceeds to be
used to repay CIT's prepetition facility and to operate the
business during the bankruptcy case.  (Federal Filings Inc.

CONSOLIDATED STAINLESS: Seeks Extension of Financing
The debtor, Consolidated Stainless, Inc. is seeking
authorization for a fifth extension and modification of its
DIP Financing between the debtor and Mellon Bank, N.A.

The debtor is seeking authorization to borrow from Mellon
the amount set forth in the Budget pending the Final
Hearing, and upon the Order becoming a Final Order, the
amount shall increase up to the Maximum Amount of
$10,100,000. Interest shall accrue on the outstanding
principal balance of the DIP Financing at a variable rate
per annum equal to the sum of the base rate plus 1 1/4%.   

CROWN BOOKS: Supports Application to Hire Keen Realty
Crown Books Corporation submits a statement in support of
its application to employ Keen Realty Consultants, Inc. as
special real estate consultant.  The Office of the United
States Trustee and the Official Committee of Unsecured
Creditors both filed objections to the application.

Keen agreed to modify its minimum transaction fee in
response to the Committee's objection, and the US Trustee
requested the filing of a verified statement, which the
firm supplied. Keen has agreed to receive as its minimum
transaction fee, the greater of $1,750 or an amount equal
to 3.75% of "gross proceeds" and the Committee withdrew its

FPA MEDICAL MANAGEMENT: Committee Taps Bayard Firm
The Official Committee of Unsecured Creditors in the cases
of FPA Medical Management, Inc. and those of its direct and
indirect subsidiaries and related professional corporations
applies for approval of the retention of The Bayard Firm as
co-attorneys for the Committee.

The Bayard Firm will be required to render legal advice
with respect to the powers and duties of the Committee, the
sale of estate assets, any disclosure statement or plan,
necessary applications, motion, complaints and answers.  
The Committee intends to work closely with Bayard and
Holleb & Coff to ensure that there is no unnecessary
duplication of services performed.

Bayard's rates range from $200 to $330 per hour for its
attorneys proposed to represent the Committee.

FPA MEDICAL MANAGEMENT: No Bonuses For Employees
FPA Medical Management Inc. won't pay promised bonuses to
employees of an Orange-based company acquired shortly
before the struggling operator of doctors' practices filed
for bankruptcy, while FPA executives are seeking
$2.8 million in bonuses themselves, workers said.

As many as 50 workers at Orange Coast Managed Care Services
Inc., bought by FPA in March, have been told they won't get
bonuses equaling 25 percent of their salaries in the wake
of FPA's Chapter 11 filing, said Neri Gamble, a  
claims examiner. Gamble said she'd been promised $5,668 if
she'd stayed with Orange Coast through November.

Meanwhile, FPA is asking a bankruptcy judge to approve a
total of $2.8 million bonuses for its top executives. FPA
Chief Executive Stephen Dresnick stands to get a $1.1
million bonus if he stays with the company until it  
emerges from bankruptcy-court protection in December, court
records show.

Dresnick has said the only way to keep key employees to
carry out the bankruptcy-reorganization plan is to pay

U.S. Bankruptcy Judge Peter Walsh is expected to decide
Sept. 23 whether Miami-based FPA can pay the executive
bonuses. (Orange County Register - 09/04/98)

GLOBAL ASSOCIATES: Lease Obligations Assumed By Bedford
Bedford Property Investors Inc. announced it has reached a
resolution with Smiths Industries plc to reinstate and then
assume the lease obligations of Global Associates Ltd.,
which earlier this year filed for bankruptcy protection,
according to a newswire report. Smiths will pay all of
Global's past due rental obligations, and Smiths agreed to
a rental increase that equates to a 21 percent increase
over the prior rental level.

HARRAH'S JAZZ: Judge OKs Plan To Finance Construction
A federal bankruptcy judge gave swift approval Thursday to
an  additional $25 million in financing for the idled New
Orleans land casino project to help complete construction
of the half-finished gambling hall and make it more
competitive with casinos in neighboring Mississippi.

Here's where the money will come from: Harrah's
Entertainment Inc. of Memphis, Tenn., the lead partner
behind the downtown Canal Street casino, will  
provide $12.5 million of the new financing, while the
remaining $12.5 million will be provided in a bank loan
guaranteed by Harrah's Entertainment.

The money will be used in part for design changes and
equipment enhancements, according to an amended disclosure
statement filed in Bankruptcy Court last month.  The
disclosure statement indicated that the changes and
enhancements will be made to "meet more intense competition
from other gambling facilities such as those located on the
Mississippi Gulf Coast."

During a hearing Thursday that lasted less than five
minutes, U.S. Bankruptcy Judge T.M. Brahney III approved
the amendments to Harrah's Jazz Co.'s disclosure statement,
saying he received no objections to the amendments.
Harrah's Jazz is the bankrupt owner of the land casino
project.  The disclosure statement outlines the terms of
the casino's reorganization plan.  Creditors now have
several weeks to vote to either accept or reject the
revised disclosure statement.  Brahney on Thursday
scheduled a final hearing for Oct. 13 to confirm the
disclosure statement and bankruptcy reorganization plan.

The Louisiana Gaming Control Board is awaiting the
completion of State Police investigations into whether the
casino's partners are ethically and financially suitable to
operate the casino. Those investigations are expected to be
completed next month.  In addition to Brahney's and the
Gaming Control Board's approval, Harrah's also needs the
New Orleans City Council's blessing before it can resume  
construction of the casino.

The largest new cost in the land casino project involves
higher construction expenses, which are expected to
increase from $129.4 million to $140.7 million, according
to the amended disclosure statement. The cost increases
also include  $4.7 million of additional gambling
equipment.(Advocate Baton Rouge - 09/04/98)

MOBILEMEDIA: Key Conditions Of Merger Deal Satisfied           
Arch Communications Group Inc. [APGR] and MobileMedia Corp.
have reaffirmed the first quarter of 1999 as the target for
completing their proposed merger, after the U.S. Bankruptcy  
Court overseeing MobileMedia's Chapter 11 bankruptcy
petition approved certain underlying financial provisions
of their deal.  The provisions cover such areas as
exclusivity, break-up fees and expense reimbursement.

On a related note, the companies said that $170 million has
been paid to MobileMedia's secured creditors, reflecting
proceeds generated from the company's sale-leaseback
transaction with Pinnacle Towers Inc. covering tower  
site assets.  Arch and MobileMedia have vowed to pay in
full the $649 million owed to MobileMedia's secured

With these developments, MobileMedia and Arch said they
have satisfied two of the "material conditions" contained
in their Aug. 20 merger agreement.  Upon completion of the
deal, Arch will become the second-largest operator of
paging services in the United States with a base of more
than 7.4 million subscribers. (Copyright Phillips
Publishing, Inc. Communications Today - 09/09/98)

MOLTEN METAL: Trustee Applies to Employ General Counsel
Stephen S. Gray, the Chapter 11 Trustee of Molten Metal
Technology and its affiliated debtors is seeking
authorization to employ Joseph Braunstein, attorney and the
law firm of Riemer & Braunstein to represent and provide
general legal services on behalf of the Trustee in
connection with the case.

The law firm will not represent the Trustee with respect to
environmental concerns, regulatory matters, hazardous, non-
hazardous and radioactive waste, or intellectual property

PACIFICA HOSPITAL: Zinngrabe Warns of Closing
Health-care entrepreneur Robert J. Zinngrabe is warning
that he may have to close Pacifica Hospital unless he can
restructure his debts.  Zinngrabe and five of his
businesses filed separate petitions to reorganize  
in U.S. Bankruptcy Court.

The money-losing, 98-bed hospital in Huntington Beach has
not filed for bankruptcy court protection. But it is at the
heart of Zinngrabe's empire, physically and financially.
Zinngrabe has been using profits from his other businesses
to keep the hospital open, according to court documents.

During the past two years, however, his other businesses
have bled cash and rung up $7.4 million in unsecured debts.
His plan: Sell Huntington Terrace, a 161-unit, senior-care
facility near the hospital for $16 million and use that
money to pay debts.

But he can't do that, his lawyers say, because of "certain
incredibly onerous provisions" in a $30 million loan
agreement that he signed in 1995. The loan covers
Huntington Terrace and several other Zinngrabe properties
as well as his stock in the companies.

It includes what amounts to a prepayment penalty, according
to papers filed by Zinngrabe's attorneys. If he tried to
pay off the $29 million balance now, he would have to pay
$8 million in penalties. If he tried to pay off just the  
$5.8 million portion secured by Huntington Terrace, he
would have to pay a $2 million penalty.

Zinngrabe wants the court to erase the penalty provision
from the loan.

Pacific Mutual Life Insurance, the servicing agent for the
loan, is fighting  the attempt to change the loan's terms.
But the insurer has said in court papers it will agree to
let the other Zinngrabe businesses pump cash into the  

Pacifica expects to lose $435,000 from August to December.
That equates to an annual loss of more than $1 million.
(Orange County Register - 09/08/98)

PARAGON TRADE BRANDS: Kimberly-Clark's Reply Brief
Kimberly-Clark ("K-C") files a Reply Brief in Support of
its appeal from the orders entered April 10, 1998 and June
15, 1998.  The appeal presented the question of whether a
Bankruptcy Court can enter an order, without a motion being
filed, that requires a corporation to give legal and
business assistance to its bankrupt competitor.  

The orders entered by the court were in response to K-C's
motion for relief from the automatic stay.

K-C claims that the orders at issue impose ongoing
obligations on K-C to analyze Paragon's prospective
products and advise Paragon whether those products infringe
any one of K-C's hundreds of patents.  K-C states that this
directive is beyond the power of the Bankruptcy Court and
merits reversal by this court.

K-C states that a bankruptcy court can condition a grant of
relief from stay but a bankruptcy court does not have the
authority to grant a debtor relief that the debtor could
never have achieved on its own initiative or that is
unrelated to protection of the creditor's interest.

K-C also filed a response to the motion to dismiss its
appeal.  K-C maintains that the mandatory injunction is
appealable, and that the order that is the subject of the
appeal meets the standards for appealability as a
collateral order.

QUADRAX CORP: Committee Objects to Exclusivity Extension
The Official Committee of Unsecured Creditors objects to
the debtor's motion to extend the exclusive period for
filing a plan of reorganization.  The Committee states that
there is no reason to preclude other potential plans of
reorganization from being filed in this case.

The Committee states that if a new plan proponent emerges
with a better plan than that currently being offered, the
creditors should have the option to vote for such a plan.  
The fact that the Committee has voted to support the
current plan does not preclude it from supporting another
plan. The Committee submits that there is no compelling
reason to extend the exclusivity period for ninety days.

SA TELECOMMUNICATIONS: Seeks Extension of Exclusive Periods
The debtors, SA Telecommunications, and its debtor
affiliates, seek an order granting further extension of the
exclusive periods in which to file a plan or plans of
reorganization and to solicit acceptances thereof.

The debtors state that "unforeseen circumstances" have
arisen.  Since late July the value of the EqualNet common
stock has undergone a steady decline in value. At this
time, the plan contemplated by the Settlement would not be
confirmable or feasible.   The recovery to creditors is
premised in large measure on the funds received from  
liquidation of the stock.

Furthermore, the current cash position of the debtors
prevents them from making any payments under a plan until
at least March 1, 1999.  The $555,000 received at Closing
is being held in escrow subject to payment of a note due on
February 28, 1999.  The debtors state that extending the
plan period until the note is paid is necessary.  

The debtors request entry of an order extending the plan
period and solicitation period to March 1, 1999 and May 1,
1999 respectively, and for such other and further relief as
the court may deem just and proper.

Owners of the Schweitzer Mountain Resort in Sandpoint,
Idaho, filed a motion last week stating that they have new
investors willing to commit to a reorganization plan and
have asked the court to reconsider a plan with the new
investors' assets of more than $351 million, The Spokesman-
Review reported.

The investors are Original Ventures Inc., a New York-based
real estate developer, Texas-based developer Resort Host
International Corp. and Atlanta-based Financial Capital
Co. of America LLC. Certain members of the Brown family,
who own the resort, object to the creditors' plan to sell
the resort. Attorney Ed McCabe said that creditors would
receive 100 percent of what they are owed under the owners'
plan but only half of what they are owed if the resort is
sold. However, U.S. Bank, which is the largest creditor,
owed $22.5 million, may not get anything under the owner's
plan because of the treatment of the bank's claim; the
bank's attorney believes the recent motion is a stalling
tactic. The creditors already voted to sell the resort, and
a hearing is scheduled for Tuesday to confirm the sale
plan. (ABI 10-Sept-98)

SNAKE EYES GOLF: Auction To Single High Cash Bidder
Snake Eyes Golf Clubs Inc. will auction its business and
assets, free and clear of all liens and liabilities, to a
single high cash bidder. The auction will occur in
approximately 45 days in conjunction with the Bankruptcy
Court confirmation hearing on the company's plan of
liquidation. The proceeds will be distributed under the
plan to pay creditors and thereafter to the shareholders if
sufficient funds remain. The company has a $ 1.4 million
"back-up" contract which will provide the opening bid at
the auction. Potential bidders are encouraged to obtain
more information about the business and the auction rules
by contacting Harold Hutchins at 904/288-0700.

The company's bankruptcy schedules indicated approximately
$ 100,000 of secured debt, approximately $ 3 million of
unsecured debt, approximately $ 14.8 million of preferred
stock and approximately 700 public shareholders.

The company's capital base was inadequate to continue and
grow the business. Approximately one month ago, the Snake
Eyes board of directors asked Harold Hutchins, the former
president and chief financial officer, to explore
recapitalization or sale alternatives. Hutchins said:
"Snake Eyes is one of the most technologically innovative
club manufacturers. Faced with well-capitalized
competitors, such as Calloway Golf and Titleist, in a
rapidly consolidating industry, Snake Eyes needed
additional equity capital. A variety of factors, including
burdensome preferred stock covenants, stymied the company's
recent recapitalization efforts. The most responsible
approach was to sell the company and distribute the
proceeds." Hutchins will supervise the sale process.

Hutchins also stated the "Snake Eyes" brand represents a
great value to potential bidders. The company has invested
more than $ 10 million to establish its quality brand image
and significant market penetration.

Gardner Davis, an attorney with Foley & Lardner, bankruptcy
counsel to the company stated: "The company will auction
the business as a going concern under Bankruptcy Court
supervision in approximately 45 days. The company has a
'back-up' sale contract with Venture Access International,
a Minneapolis investor group lead by John Titcomb, for $
1.4 million." According to Davis: "The Board determined a
'prepackaged' Chapter 11 sale was the most responsible way
discharge the company's legal and financial obligations.
The company's trade creditors support the program."

The company intends to keep its employees and continue in
business pending the sale. The company's operations
probably will continue in Jacksonville if Venture Access
International is the successful buyer. However, the
company's operations could be relocated if a large golf
concern purchased the business.

STAR NEWCO: Seeks Chapter 11 In Delaware
Star Newco Inc. (f/k/a Star/Elgen) filed for Chapter 11
Sept. 4 in Wilmington, Del., listing about $10.6 million in
assets and $10.5 million in liabilities. The privately held
company, based in Mountainville, N.Y., manufactures metal
fasteners and duct connectors for air conditioning units.
Dimeling Schreiber & Park Reorganization Fund L.P and Mark
Ellis LLC each own more than 20 percent of the company's
voting securities. Unsecured creditors include Reed Smith
Shaw & McClay LLP ($467,536), Lindberg Heat ($307,260), and
Ernst & Young LLP ($100,000). (The Daily Bankruptcy Review
Copyright and ABI 10-Sept-98)

SUNBELT NURSERY: Asks to Examine Records of Paragon Capital
The debtors, Sunbelt Nursery Group, Inc., and its
affiliates are seeking court authority to examine the
custodian of records of Paragon Capital LLC and the person
or persons designated by Paragon as most knowledgeable
concerning loan charges by Paragon against debtors.

The debtors are in the process of preparing joint plans and
an accompanying disclosure statement.  A full accounting of
the charges of Paragon under the loans to the debtors and
Paragon's application of payments received to obligations
of the debtors is necessary in order to determine whether
the charges were proper and to determine and set forth
projected distributions to creditors in the respective
bankruptcy estates.

Paragon failed and refused to provide requested accountings
detailing Paragon's charges and application of payments,
notwithstanding repeated requests by debtors.

TOSHOKU AMERICA: Seeks Third Extension of Exclusive Period
Toshoku America Inc. is applying to the court for a third
extension of its exclusive period to file a plan of
reorganization for an additional seventeen days through and
including October 5, 1998.

The debtor states that the size and complexity of this case
and the significant cross-border issues involved constitute
sufficient cause for extending the exclusive period.

The debtor is in the final stages of formulating a
consensual plan with tits major constituencies - the Deputy
Trustee, the Committee and the Bank Group.  According to
the debtor, additional time is necessary to value claims
and resolve the claims.

UNISON HEALTHCARE: Fights to Retain PricewaterhouseCoopers
Despite the objection of the Whitehead Entities that claim
that PricewaterhouseCoopers ("PwC") should not be retained
because of the expense, the debtors state that they need
financial litigation assistance, and an examiner will not
be helpful to prosecute avoidance actions.

The debtors state that they need the services of PwC in
order to pursue litigation of avoidance actions and that
the firm's services will not be duplicative with those that
may be provided by an examiner.  

The debtors also state that this objection of Whitehead
Entities is just one more attempt to delay the proceedings.

WELCOME HOME: Seeks To Assume 119 Leases and Office Lease
The debtor, Welcome Home, Inc. seeks to assume the lease
covering the debtor's corporate headquarters in Wilmington,
North Carolina. The debtor is also seeking court approval
for assumption of 119 nonresidential store leases. The
debtor is negotiating rental concessions on approximately
90 of the 119 unexpired store leases.  Welcome Home
estimates that the aggregate amount of the rent concessions
will exceed $1.75 million.

WESTERN FIDELITY: Hearing on Motion to Convert
The court in the Case of Western Fidelity Funding entered
an order on September 1, 1998 setting the hearing on a
motion to convert the case to one under Chapter 7 to
October 13, 1998.

DLS CAPITAL PARTNERS: Bond Pricing for Week of Sept. 8
The following are indicated prices for selected issues:

Amer Pad & Paper 13 '05                 56 - 59
Amer Telecasting 0/14 1/2 ''04          24 - 26
Asia Pulp & Paper 11 3/4 '05            60 - 63
Boston Chicken 7 3/4 '04                10 - 12
Brazos 10 1/2 '07                       45 - 48
Brunos 10 1/2 '05                       13 - 15 (f)
CAI Wireless 12 1/4 '04                 27 - 30 (f)
Cityscape 12 3/4 '04                    15 - 17 (f)
E & S Holdings 10 3/8 '06               68 - 72
Harrah's Jazz 14 1/4 '01                20 - 24 (f)
Hechinger 9.45 '12                      71 - 74
Hills 12 1/2 '03                        40 - 42
Liggett 11 1/2 '99                      70 - 73
Mobilemedia 9 3/8 '07                   18 - 20 (f)
Penn Traffic 9 5/8 '05                  16 - 17
Royal Oak 11 '06                        52 - 55
Service Merchandise 9 '04               61 - 62
Sunbeam 0 '18                       17 1/2 - 18 1/2
Zenith 6 1/4 '11                        29 - 32 (f)

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to 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.  
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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