TCR_Public/980926.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
      
   Monday, September 26, 1998, Vol. 2, No. 189

                  Headlines

AHERF: SEC May Be Investigating Tangled Finances
APS HOLDING: Exclusivity Extended To Dec. 29, Feb. 26
APS HOLDING: Notice of Sale of Certain Property
BOYDS WHEELS: Disclosure Statement Hearing Continued
BRADLEES INC: Financial Forecast Summaries To Banks

BRAUNS FASHIONS: Stock Issuance With Director Plan
CGE FORD HEIGHTS: Creditor Seeks Conversion to Chapter 7
DASI LINDA, LLC: Confirmation Hearing Set For October 30
DAUPHIN TECHNOLOGY: Reports Registration of Stock
FPA MEDICAL: Court Approves Exec Bonus Plan

FLORIDA GAMING CORPORATION: Reports $8.3 Million Sale
FULCRUM DIRECT: Seeks Extension to Financing
GIBSON'S DISCOUNT: Bank Provides $25M Line of Credit
INTERNATIONAL TOURIST: Annual Report Filed With SEC
INTERNATIONAL WIRELESS: Announces Agreement in Principle

LONG TERM CREDIT BANK: Denies Giving up Plan
NOXSO: Plans To Liquidate
PEGASUS GOLD: Notice of Confirmation Hearing
PENNCORP FINANCIAL GROUP: Supplement To Prospectus
RIVER CITY: Files Chapter 11

SUN TELEVISION: Taps Gordon Bros. For GOB Sales
UNCLE B'S: Hearing For Interim Use of Cash Collateral
UNISON HEALTHCARE: Objection To Disclosure Statement
WESTBRIDGE CAPITAL: Reorganization Value: $55M-$70M
     
                  *********

AHERF: SEC May Be Investigating Tangled Finances
------------------------------------------------
Questions about the accuracy and reliability of financial
disclosures by the bankrupt parent of Allegheny General
Hospital continue to mount. Now federal regulators are
looking into whether the health care giant may have
committed fraud.

The Securities and Exchange Commission has asked to see all
documents related to $605 million in bonds sold this decade
on behalf of Allegheny Health Education and Research
Foundation hospitals in Philadelphia and New Jersey.

The SEC would neither confirm nor deny an investigation.

But spokesman Tom Chakurda yesterday confirmed that the SEC
has contacted AHERF seeking financial documents and said
that the foundation was cooperating.

According to Bloomberg News, the SEC on Sept. 11 sent a
letter to Bloomberg's municipal bond information division
and two other national bond  information outlets seeking
any and all records related to bonds issued by the  
bankrupt foundation's affiliates.

In the letter, Catherine Pappas, an enforcement officer in
the federal agency's Philadelphia office, wrote that the
SEC "is conducting an informal inquiry into possible
violations of federal securities laws.

Pappas would not comment further. But experts in municipal
bond law said it's likely her agency was focusing on
whether financial statements in the bond  documents were
misleading and whether they were updated appropriately
to  reflect negative changes in the health of the
hospitals.

In 1995, the SEC adopted new rules requiring hospitals and
other large issuers of tax-exempt bonds to make annual
financial statements available to bondholders within 90
days of the close of a fiscal year. The rules also  
required bond issuers to disclose, "in a timely manner,"  
events that could undermine the value of the bonds, such as
failure to make interest payments.

The murky business of municipal bond oversight has long
been a source of frustration to the SEC, and it's possible
it may use AHERF and the new disclosure rules as a test of
the agency's ability to crack down, said Robert Fuller,
managing director of Fairmont Capital Advisers Inc., of
Philadelphia. Before the new rules, the municipal bond
industry was largely a self-regulating business, through
the Municipal Securities Rulemaking Board.

"If it turns out that disclosure information {in the AHERF
reports} was lacking or misstated, the SEC may decide that  
this is the case they will press,"  said Fuller, a former
managing director at the ratings agency, Standard & Poor's.
"They have been arguing for increasing information and  
oversight {of municipal bond issuers} for some time. In its
1997 report to bondholders, which was released in February,
more than 210 days after the end of the fiscal year, AHERF
acknowledged that it was late but blamed it on a decision
to consolidate the financial activities of its scattered
affiliates.  The report went on to disclose mounting
financial troubles at its Eastern hospitals and noted that
three of its Philadelphia hospitals had fallen out of  
compliance with their loan covenants.

More recently, AHERF renounced its audited 1997 financial
statements after a late-August review uncovered errors that
boosted income. The review came amid complaints and
questions by the bond-rating agency Moody's Investors
Service  and others about the complexity and accuracy of
the foundation's audited statements. Moody's, for example,
uncovered a $117 million worth of loans that had been
classified as investments.

In addition, the state Attorney General's office has
launched a probe into the use of endowments and other
restricted funds. And U.S. Bankruptcy Court Judge M. Bruce
McCullough, frustrated by the non-profit hospital
operator's  intertwined finances, is requesting board
members and top officers gather for a  public hearing to
get to the bottom of the foundation's tangled
finances. (Pittsburgh Post-Gazette; 09/18/98)


APS HOLDING: Exclusivity Extended To Dec. 29, Feb. 26
-----------------------------------------------------
The court has extended APS Holding Corp.'s exclusive
periods to file a reorganization plan and solicit
acceptances through Dec. 29 and Feb. 26, respectively.
While the auto parts distributor originally sought a 120-
day extension, APS had shortened its extension request to
90 days by the time the hearing rolled around. APS had said
more time was needed to finalize a number of asset sale
agreements before the company could begin to develop its
plan. (Federal Filings Inc. 24-Sept-98)


APS HOLDING: Notice of Sale of Certain Property
-----------------------------------------------
APS Holding Corporation, et al., debtors, published a
notice of intent to sell certain property in The Wall
Street Journal on September 25, 1998.  The hearing is set
for October 9, 1998 at 9:30 am before the Honorable Peter
J. Walsh, Bankruptcy Court, District of Delaware.  The
debtors are seeking approval of the proposed sales of
certain real property, fixtures, inventory, equipment and
other assets relating to the debtors' distribution centers.  
The debtors are seeking approval of the sale to General
Parts, Inc. and BWP, Inc. or such other party or parties as
may submit a higher and/or better offer.


BOYDS WHEELS: Disclosure Statement Hearing Continued
----------------------------------------------------
The hearing to consider the adequacy of the first amended
Disclosure Statement to accompany debtors' first amended
joint Chapter 11 plan of reorganization has been continued
to October 27, 1998 at 3;30 pm in the U.S. Bankruptcy
Court, Central District of California, Santa Ana Division.

Objections to the Disclosure Statement must be filed and
received by October 19, 1998.


BRADLEES INC: Financial Forecast Summaries To Banks
---------------------------------------------------
Bradlees Inc. reports to the SEC, that beginning on
September 22, 1998, Bradlees, Inc. will distribute to its
banks and other credit providers summaries of its financial
forecast for the fiscal year ending January 30, 1999, which
incorporate actual results for the first half of Fiscal
1998. The Forecast is attached hereto as Exhibit 20 and
shows comparisons with the summary financial plan for
Fiscal 1998 filed on Form 8-K dated February 11, 1998 and
with the annual financial summary for last year (Fiscal
1997). The Forecast does not incorporate any adjustments
that will result from the Company's expected year-end
emergence from Chapter 11. The Company's amended disclosure
statement was approved by the Bankruptcy Court on September
17, 1998.                         
                                                               
The Forecast reflects an EBITDA (as defined in the exhibit)     
of $35 million before restructuring and property gains for      
Fiscal 1998 compared to $32 million in the Plan.  
Comparable store sales are assumed to increase 6.3%
compared to 3.5% in the Plan(comparable store sales for the
first half of Fiscal 1998 increased 8.6%).  The beneficial
impact on EBITDA from the higher sales and associated gross
margin is partially offset by an expected lower gross
margin rate (29.7% vs. 30.1%) and slightly higher selling,
general, administrative and distribution ("SG&A") expenses,
although the SG&A rate in the Forecast is projected to be
28.1% of owned sales compared to 28.6% of owned sales in
the Plan.      
                                                          
The Company is distributing the Forecast to its banks and       
other credit providers to facilitate their credit analyses.     
The Forecast is being reported publicly solely because it
is being distributed to a large number of the Company's
vendors for purposes of their credit analyses.  Although
the Company is publicly disclosing the Forecast, the
Company does not believe it is obligated to subsequently
update such information or to provide such information
indefinitely, and the Company may cease making such
disclosures at any time.  The Forecast was    
not examined, reviewed or compiled by the Company's             
independent public accountants.


BRAUNS FASHIONS: Stock Issuance With Director Plan
--------------------------------------------------
Brauns Fashions Corporation reports to the SEC on Form S-8
of a Prospectus to be used in conjunction with the
Registration Statement relating to the registration of
40,000 shares of common stock, $.01 par value to be issued
by the Company pursuant to the Brauns Fashions Corporation
1992 Director Stock Option Plan, as set forth in the
Registration Statement and the Prospectus.


CGE FORD HEIGHTS: Creditor Seeks Conversion to Chapter 7
--------------------------------------------------------
Asserting that the CGE Ford case "cries out for conversion
or dismissal," creditor Zurn EPC Services Inc. is asking
the court to convert the case to Chapter 7 or,
alternatively, dismiss it entirely. Zurn has a $6 million
mechanics lien against CGE's unfinished Ford Heights, Ill.,
waste tire-to-energy facility, which was rendered
unprofitable by the January 1996 repeal of an Illinois rate
statute, stemming from CGE's failure to make progress
payments under Zurn's design and construction contract.
Zurn contends that CGE is "hopelessly administratively
insolvent" and that there is no reasonable likelihood that
CGE will be able to rehabilitate through a confirmable
reorganization plan. (Federal Filings Inc. 24-Sept-98)


DASI LINDA, LLC: Confirmation Hearing Set For October 30
--------------------------------------------------------
The debtor, Dasi Linda, LLC published a notice in The Wall
Street Journal of September 25, 1998.  The Bankruptcy Court
for the District of Delaware scheduled a hearing on
confirmation of the first amended joint plan of
reorganization filed by the debtor, a Delaware limited
liability company and Mid-Am Capital LLC for October 30,
1998 at 10:30 am before Honorable Mary F. Walrath.  The
last date for creditors to return ballots accepting or
rejecting the plan is October 20, 1998.


DAUPHIN TECHNOLOGY: Reports Registration of Stock
-------------------------------------------------
Dauphin Technology Inc. ("Dauphin") reports to the SEC that
it registered 7,487,935 shares of $.001 par value Common
Stock at a proposed offering price of $1.00, pursuant to a
Form S-1 Registration Statement declared effective on March
31, 1998.  The registered shares consisted of 4,523,618
issued and outstanding shares registered on behalf of
Selling Stockholders and 2,964,327 shares registered for
issuance on behalf of Dauphin.  As of June 30, 1998,
Dauphin has issued 204,897 shares of Common Stock
registered on its behalf, and received $175,383 in
consideration therefor.


FPA MEDICAL: Court Approves Exec Bonus Plan
-------------------------------------------
A bankruptcy court judge yesterday approved a plan that
could result in bonuses totaling up to $3.5 million for top
executives of FPA Medical Management, the company whose
shutdown left hundreds of San Diegans unemployed
and unpaid for past work.

The bonus plan was opposed by the United States Trustee but
had the support of the company's major creditors, a
consortium of banks to whom FPA owes more than $300
million. Bankruptcy Judge Peter Walsh is presiding over the
FPA case, which is being heard in Wilmington, Del. FPA
declined to comment on yesterday's ruling but earlier
promoted the bonus plan as necessary to keep
key personnel  on board as the company struggles in
bankruptcy. Dr. Stephen Dresnick, chief executive officer,
would receive $1.2 million for staying with the company  
through its reorganization, which it hopes to complete by
December. About two dozen other executives are also
eligible for bonuses if they stay with the company.

The logic of paying bonuses to the management team that led
the company into bankruptcy escapes many former employees,
particularly those who failed to receive payment for
vacation due.

Elizabeth Marie Sims worked at FPA as a claims adjuster and
says she is owed about $800 in vacation pay. Sims said many
who lost jobs at FPA are having difficulty landing new
positions, or are settling for jobs that pay substantially
less.

"They need to pay the people who worked for them," Sims
said. "I don't think anyone works for the fun of it or to
get out of the house. We need that money.

"I think it's cruel for them to take that money and pay it
to the group that put us out of work."

Until earlier this year, FPA was a fast-growing manager of
physician practices.  The company drove its revenues from
about $18 million in 1994 to more than $1 billion last
year, as its network grew to include nearly 8,000
physicians overseeing care for 1.4 million health plan
members. Late last year, the company's stock price peaked
at $40 on the Nasdaq Stock Market.

As it boosted revenues through a series of physician
practice acquisitions, however, FPA continued to post
losses.

In May, FPA announced that it was running out of cash. The
company filed for bankruptcy protection July 19, five days
after its board approved a plan to raise salaries for top
executives. Its stock closed yesterday unchanged at 8  
cents.  (San Diego Union Tribune - 09/24/98)


FLORIDA GAMING CORPORATION: Reports $8.3 Million Sale
-----------------------------------------------------
Florida Gaming Corporation reports to the SEC, that in
accordance with an agreement dated January 1998 with
Monroe's  Prestige Group, Inc. ("MPG"), a real estate
development company based in Tampa, Florida, effective
September 8, 1998, Florida Gaming Corporation disposed of
the land and improvements where the company's Tampa,
Florida gaming operations were located for $8.3 million in
cash.

The sale did not include the company's Tampa gaming permit
which could be available to Florida Gaming Corporation for
possible use at a different Hillsborough County, Florida
facility.


FULCRUM DIRECT: Seeks Extension to Financing
--------------------------------------------
Fulcrum Direct Inc., et al., debtors, are seeking an
extension to the DIP financing from IBJ Schroder Business
Credit Corporation. The debtors seek an extension to the
term of the financing until October 31, 1998, and an
increase in the aggregate amount of financing provided to
Fulcrum by $87,000 to a total of $2.18 million, inclusive
of previous funding.  Fulcrum is seeking approval on an
interim basis of $480,000 in DIP financing.


GIBSON'S DISCOUNT: Bank Provides $25M Line of Credit
----------------------------------------------------
BankBoston Retail Finance Inc. announced that it has
provided a $25 million revolving line of credit and a $3
million term loan to Dodge City, Kansas-based Gibson's
Discount Stores, according to a newswire report.
BankBoston's Ward K. Mooney said that the enhanced
liquidity will help the company implement its business
strategy. The company, which is operating under chapter 11
protection, has 22 locations in the Midwest. The
financing will be used to support Gibson's emergence from
bankruptcy. (ABI 25-Sept-98)


INTERNATIONAL TOURIST: Annual Report Filed With SEC
---------------------------------------------------
International Tourist Entertainment Corporation filed a
voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code on January 25, 1996.  An
Order confirming the Company's Plan of Reorganization was
entered on February 6, 1997 by the United
States Bankruptcy Court.

At June 30, 1998, the Company had a cash balance of
$350,793.  The Company had working capital at June 30, 1998
of $8,426 and a current ratio of 1.01 to 1.

The Company's revenues for its fiscal year ending June 30,
1998 increased 24% to $5,893,074 compared to $4,749,185 for
the fiscal year ending June 30, 1997.  This increase was
primarily due to increased revenues at the theater
from the showing of 35mm feature films, the opening of the
Remember When Theater, and increased revenues at
McFarlain's Family Restaurant, the Backporch deli, and
Legacy & Legends Gift Shop. Income from operations for
fiscal 1998 was $38,130 compared to $114,322
in fiscal 1997.  

Net loss applicable to common stock for the fiscal year
ended June 30, 1998 totaled $252,526 as compared to a net
income of $3,567,849 for 1997.  The June 30, 1997 net
income included an extraordinary gain in the amount of
$4,086,766 from forgiveness of debt in the Company's
bankruptcy reorganization.


INTERNATIONAL WIRELESS: Announces Agreement in Principle
--------------------------------------------------------
International Wireless Communications Holdings Inc., which
filed chapter 11 on September 3, announced an agreement in
principle regarding a restructuring that is expected to
form the basis for a chapter 11 plan for it and its four
subsidiaries, according to a newswire report. The agreement
will be incorporated into the companies' chapter 11 plan,
and if a disclosure statement is approved by the court,
the plan would be submitted to creditors and equity holders
for a vote. Upon confirmation by the court and the
effectiveness date of the plan, substantially all of the
pre-petition obligations of the company and its subsidiary,
International Wireless Communications Inc., would be
converted into common stock in the reorganized entity. And
on the effective date, the company will have the option to
convert into equity a $4.6 million debtor-in-possession
loan that Vanguard is providing. (ABI 25-Sept-98)


LONG TERM CREDIT BANK: Denies Giving up Plan
--------------------------------------------
The Long-Term Credit Bank of Japan (LTCB) on Friday  
denied press reports that it has given up a plan to
reconstruct three affiliated nonbank financing firms by
forgiving their 520 billion yen debts to LTCB.

LTCB denied the reports that it is considering liquidating
the three nonbanks -- Japan Leasing Corp., Japan Landic
Corp. and Nippon Enterprise Development Corp. -- with court
supervision.

The denial came shortly after Japanese newspapers reported
in their evening editions that the bank began to consider
giving up the idea of forgiving the debts, which
constitutes the core of its plan to dispose of 750 billion
yen in  bad loans and restructure itself, unveiled Aug. 21.

The bad-loan disposal plan, if implemented, would remove a
major obstacle to its planned merger with Sumitomo Trust
and Banking Co.

Sumitomo Trust has demanded that LTCB or the government
dispose of LTCB's bad loan holdings as a condition for a
merger.

The three nonbanks, which have largely depended on LTCB for
resources to lend to others, hold huge bad real estate
loans as a result of their active lending  during the
''bubble economy'' that began in 1986 and collapsed in the
early  1990s.

LTCB will ask the government-run Deposit Insurance Corp. to
use public funds so that it can dispose of its bad loans,
LTCB President Katsunobu Onogi has said.

Chief Cabinet Secretary Hiromu Nonaka told a news
conference earlier Friday that the government should not
use public funds to help LTCB forgive the debts of the
three nonbanks. (Kyodo News; 09/25/98)


NOXSO: Plans To Liquidate
-------------------------
After losing $19 million in a 19-year quest to develop
pollution control technology, Noxso Corp. yesterday threw
in the towel, saying it will liquidate rather than continue
a futile quest for new financing.

The Bethel Park company failed to obtain $15 million to $18
million needed to commercially test its system for removing
sulfur dioxide and nitrogen dioxide generated by coal-fired
power plants. Creditors took Noxso into bankruptcy last
year after it failed to find financing for a larger-scale
test  at an Alcoa generating plant in Newburgh, Ind.

Vice president John Haslbeck said Noxso talked with more
than 100 potential investors since January, when Richmond
Power & Light, a municipally owned utility in Richmond,
Ind., agreed to install Noxso's system at its 33-megawatt  
generating plant.

"In the eight months we've been at it, if there was
interest out there, we should have been able to uncover
it," Haslbeck said. "We were not able to get anyone willing
to accept the risk."

Noxso's creditors include the U.S. Department of Energy,
which was expected  to provide about half of the funding
for the demonstration plant at Richmond  Power. As an
unsecured creditor, the federal agency is owed about
$15 million  for funds advanced for the project at Alcoa
that was never completed.

Since its 1979 founding, Noxso has subsisted mainly on
government grants and  research money that funded work on
its pollution control processes.

The only significant revenues it generated during that time
were $2.7 million from a sulfur-processing plant in
Tennessee that was supposed to be supplied with sulfur
extracted from the Alcoa plant. Noxso sold the Tennessee  
plant in December for $11 million. Most of the money went
to repay creditors and cover administrative costs.

In the nine months ended March 31, Noxso had costs of $3.4
million and revenues of $2.6 million. Noxso shares traded
for less than 2 cents yesterday and have traded no higher
than 51 cents over the last 12 months.

Noxso will convert its case to a Chapter 7 proceeding.
Haslbeck said the sale of the pollution control technology
and other company assets could be completed by the end of
the year. (Pittsburgh Post-Gazette; 09/24/98)


PEGASUS GOLD: Notice of Confirmation Hearing
--------------------------------------------
Pegasus Gold Corporation and its affiliated debtors
published a notice in The Wall Street Journal, September
25, 1998, stating that a hearing to confirm the second
amended joint liquidating plan of reorganization of Pegasus
Gold Corporation et al. shall be held on October 26, 1998
at 9:00 am before the Honorable Gregg W. Zive.

Any objection to the plan must be filed by October 9, 1998.


PENNCORP FINANCIAL GROUP: Supplement To Prospectus
--------------------------------------------------
PennCorp Financial Group, Inc. (the "Company") filed a
Sixth Supplement to Prospectus with the SEC, which
supplement amends the Prospectus dated March 9, 1998, as
amended and supplemented (the "Prospectus"), of relating to
the offer and sale by the Selling Securityholders (as
defined in the Prospectus) of (i) (x) up to
2,875,000 shares of $3.50 Series II Convertible Preferred
Stock, par value $0.01 per share, of the Company and (y) up
to 4,118,911 shares of common stock, par value $0.01 per
share, of the Company or such other number of shares of
Common Stock resulting from an adjustment to the conversion
price of the Convertible Preferred Stock pursuant to the
antidilution provisions of the Certificate of Designation
governing the Convertible Preferred Stock issuable upon
conversion of the Convertible Preferred Stock, and (ii) the
offer and sale by the Company of the Common Stock issuable
upon conversion of the Convertible Preferred Stock.

A full-text copy of the filing is available via the
Internet at:

http://www.sec.gov/Archives/edgar/data/0000950134-98-
007737.txt


RIVER CITY: Files Chapter 11
----------------------------
River City Brewing Company filed for chapter 11 protection
after losing a legal battle over limited access to
customers in wheelchairs, The Sacramento Bee reported. The
company is facing stiff attorneys' fees in a class action
suit, and President Manual Pereira said that the chapter 11
filing enables the company to reorganize and keep
operating. River City owes Downtown Partners Associates
more than $42,000 in back lease payments.

Assets are listed in the $0 to $50,000 range, and
liabilities are between $500,000 and $1 million. A
wheelchair-bound Sacramento resident and an advocacy group
sued City Brewing Cos., River City Brewing and the Hahn
Co., then the owner of the plaza where the brewery is
located because of the brewery's mezzanine dining area that
is accessible only by stairs. The restaurant has promised
to install a lift by October 27 and to pay $5000 to the
customer who sued and $5000 to the advocacy group. (ABI 25-
Sept-98)


SUN TELEVISION: Taps Gordon Bros. For GOB Sales
-----------------------------------------------
In the case of Sun Television & Appliances Inc., the court
approved Gordon Brothers Retail Partners LLC as the
stalking horse bidder for the going-out-of-business sales
at 29 of Sun Television & Appliances Inc.'s stores, setting
an Oct. 8 auction and hearing date. Under terms of the
agreement, Gordon Brothers would guarantee Sun 73.5% of the
cost value of the store merchandise as of the sale
commencement date.

Sun said there would be about $37.8 million of inventory
but not less than $36.3 million. Competing bids must top
Gordon Brothers' bid by at least 0.5% with successive bids
of at least 0.25% over the next bid, according to the
letter agreement between Gordon Brothers and Sun TV. Gordon
Brothers would receive a $75,000 breakup fee in the event
the firm is not selected as liquidation agent. (Federal
Filings Inc. 24-Sept-98)


UNCLE B'S: Hearing For Interim Use of Cash Collateral
-----------------------------------------------------
On September 4, 1998, Uncle B's Bakery, Inc. (the "Debtor")
filed Chapter 11 and requested a hearing for interim use of
cash collateral. A hearing was held on September 10, 1998,
in the United States Bankruptcy Court for the Northern
District of Iowa in Sioux City, Iowa. At the hearing, the
Debtor and Creditanstalt Corporate Finance, Inc. (the
"lender") agreed upon interim use of cash collateral under
certain terms and conditions until September 26, 1998. The
court approved this agreement. A final hearing will be
held on September 28, 1998.

The Company remains as Debtor in Possession and intends to
submit a plan of reorganization once the plan has been
finalized. In addition, there are ongoing discussions with
interested and potential strategic partners and
investors. However, there are no assurances that these
discussions will result in a definitive agreement.


UNISON HEALTHCARE: Objection To Disclosure Statement
----------------------------------------------------
The Official Committee of Unsecured Creditors of Unison
Healthcare Corporation, and related debtors, states that
the Disclosure Statement submitted by the debtors does not
provide adequate information sufficient to allow creditors
to make an informed decision with respect to the proposed
plan of reorganization.

The debtors' plan involves the substantive consolidation of
the debtors' assets and liabilities, and the Committee
complains that a separate detailed description of the
financial condition as well as a liquidation analysis for
each debtor entity should be included.

The Committee also states that the Disclosure Statement
fails to set forth any description of the reallocation of
the distribution to the holders of the senior Notes and the
Consenting Notes Holders based upon the new Notes
Allocation Schedule.

The Committee also believes that the provision for payment
of legal fees and expenses of counsel to the Ad Hoc
Committee should be explained.


WESTBRIDGE CAPITAL: Reorganization Value: $55M-$70M
----------------------------------------------------
Westbridge Capital Corp.'s disclosure statement estimates
the insurance holding company's reorganization value to be
$55 million to $70 million. After factoring in about $5
million owed to subsidiaries, the assumed equity values for
reorganized Westbridge (about $50 million to $65 million)
are reduced by roughly $3.1 million to $4.7 million to
reflect the issuance of warrants for about 7 percent of the
new common stock and options for another10 percent. Based
on the adjusted range, common equity values for the
reorganized company are assumed to be $24.1 million to
$35.3 million, after deducting the value of the warrants,
options, and new convertible preferred stock. The estimated
value of the new common stock is roughly $3.70 to $5.40 per
share, based on the distribution of 6.5 million new shares
under the reorganization plan. The new warrants, which have
an estimated total value of $500,000 to $1 million, will
have an initial exercise price based on a $95 million
enterprise valuation and will expire on the fifth
anniversary of the plan's effective date. The valuation
analysis, performed by Westbridge's financial advisor,
Houlihan Lokey Howard & Zukin Capital, assumes a plan
effective date of Dec. 31. (The Daily Bankruptcy Review and
ABI Copyright c September 25, 1998)
    
                     *********

The Meetings, Conferences and Seminars column appears in
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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-
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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