TCR_Public/981015.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, October 15, 1998, Vol. 2, No. 202

                  Headlines

AHERF: Seeks OK For $8M New Jersey Sale
AHERF: Tenet's Plan Hits Obstacle
ATLAS CORP: Reports Deposit Agreement and New Accountant
B-FOUR INC: Case Summary & 20 Largest Unsecured Creditors
BOSTON CHICKEN: Court Approves $42M Interim DIP

BOSTON CHICKEN: Loans To Franchisees Caused Bankruptcy
CR MINING: Case Summary & 20 Largest Unsecured Creditors
CENTENNIAL COAL: Case Summary & 20 Largest Creditors
CENTENNIAL RESOURCES: Case Summary & 20 Largest Creditors
COGNERATION: Seeks To Enjoin NRG Energy

DOW CORNING: Estimates Settlement Claims at $3.7 Billion
FPA MEDICAL: Court Approves Joint Administration
FOXMEYER: Trustee Seeks Authority to Settle With Amgen
GREATE BAY: Posts $2M Of Net Income In August
HARVARD INDUSTRIES: Posts $6M Net Loss For August

KIA MOTORS: Ford's Bid Fading
MAIDENFORM: Seeks Extension of Exclusivity
MCGINNIS PARTNERS: Committee Appointed
MONTGOMERY WARD: Seeks To Sell Realty and a Lease
ONEITA INDUSTRIES: Seeks Employment Agreement With CEO

PETRIE RETAIL: Accuses Committee of Ignoring Truth
PHILIPPINE AIRLINES: Cathay Pacific Close To Deal
PITTSBURGH PENGUINS: File Chapter 11
SOUTHERN PACIFIC: Ran Financial Tightrope
  
                  *********

AHERF: Seeks OK For $8M New Jersey Sale
---------------------------------------
ALLEGHENY HEALTH EDUCATION & RESEARCH FOUNDATION is asking
the court to approve the sale of its New Jersey operations
to Our Lady of Lourdes Healthcare Services Inc. for about
$8.1 million in cash, forgiveness of a $1.5 million loan,
and the assumption of all liabilities.  The proposed sale
includes the Rancocas Hospital in Willingboro, N.J., and
all operations in New Jersey owned by Allegheny or related
entities such as Diversified Health Group Inc., Zurbrugg
Holding Co., and Concorde Clinical Research Inc., none of
which are in Chapter 11.  The parties anticipate a Nov. 10
closing. (Federal Filings Inc. 14-Oct-98)


AHERF: Tenet's Plan Hits Obstacle
---------------------------------
Tenet Healthcare Corp.'s plan to acquire eight Allegheny
Health Education and Research Foundation (AHERF) hospitals
for $345 million may be in jeopardy, The Wall
Street Journal reported. Tenet had been counting on an
academic partner, Drexel University, but the university's
board rejected the company's invitation to provide
management services to a medical school closely affiliated
with the hospitals. The school and the hospitals are owned
by AHERF. Tenet's winning bid in bankruptcy court last
month was contingent on finding an academic partner to
manage the school, which is to be reorganized into a non-
profit organization. Drexel was not expected to participate
financially, but reportedly trustees were concerned the
arrangement might distract management from other projects.
Tenet plans to begin discussions with other academic
institutions that have expressed an interest, but this
undoubtedly will delay the acquisition, which was scheduled
to close on Oct. 21. (ABI 14-Oct-98)


ATLAS CORP: Reports Deposit Agreement and New Accountant
--------------------------------------------------------
Atlas Corporation reports to the SEC that on October 2,
1998, the Company executed a Deposit Agreement with Seven
Peaks Mining, Inc. for the sale of its entire interest in
Cornerstone Industrial Minerals Corporation.  Also on
October 2, Atlas filed a motion requesting approval of the
Deposit Agreement with the Bankruptcy Court handling Atlas'
Chapter 11 reorganization.  Seven Peaks has agreed to make
a cash tender offer for 100% of the outstanding Cornerstone
shares at a price of C$0.12. Under the terms of the Deposit
Agreement, Atlas has irrevocably agreed to
deposit its 18,352, 991  shares of Cornerstone (61%) to the
Seven Peaks Offer.  This transaction has been  
arranged by Monarch Financial Corporation. The total
purchase price being paid by Seven Peaks is $4 million.

On October 2, 1998, Ernst & Young LLP resigned as auditors
of Atlas Corporation. No report of Ernst & Young during the
past two years contained an adverse opinion or a disclaimer
of opinion or was qualified with respect to audit scope or
accounting principles.  EY's reports on the financial
statements of Atlas Corporation for the last two years were
modified with respect to the uncertainty of the Company's
ability to continue as a going concern. (Copyright States
News Service, all rights reserved States SEC-10/13/98)


B-FOUR INC: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor:  B-Four, Inc.
         200 West Main St.
         Suite 2200
         Louisville, Kentucky 40202

Court: District of Delaware

    Filed: 10/13/98    Chapter: 11

Debtor's Counsel: Laura Davis Jones
                  Young, Conaway, Stargatt & Taylor
                  11th Floor, Rodney Square North
                  P.O. Box 391
                  Wilmington, Delaware 19899-0391
                  (302) 571-6600

                  Sidley & Austin
                  875 Third Avenue
                  New York, NY 10022
                 (212)906-2000

Affiliated debtors: Centennial Coal, Inc., Centennial
Resources, Inc. and CR Mining Company,

20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Lincoln National Life Insurance    Bond Debt   $15,118,325
Lincoln National Income Fund, Inc. Bond Debt      $542,087
Security Connecticut Life Ins. Co. Bond Debt      $542,087


BOSTON CHICKEN: Court Approves $42M Interim DIP
-----------------------------------------------
Boston Chicken Inc. has court approval to
borrow up to $41.9 million on an interim basis pending a
final hearing on the full $70 million debtor-in-possession
financing facility from General Electric Capital Corp. and
Bank of America.  While the restaurant chain received a
loan commitment from an unidentified third
party, Boston Chicken said the DIP loan from
its prepetition lenders is in its best interests "in order
to avoid a contested, priming lien proceeding and to obtain
an agreement for use of cash collateral without litigation
concerning adequate protection and collateral values."  A
final hearing is set for Oct. 26. (Federal Filings Inc. 14-
Oct-98)


BOSTON CHICKEN: Loans To Franchisees Caused Bankruptcy
------------------------------------------------------
It was reported in the Telegram Gazette Worcester-on
October 6, 1998 that Boston Chicken, one of the hottest
investments of the early 1990s, fell on hard times during
the last two years, as supermarkets and others began
selling cheaper ready-to-eat roasted chickens. Weak sales
and profits led to a cash crunch, forcing Boston Chicken to
write off hundreds of millions of dollars in loans to
franchisees who borrowed to expand the chain. A group led
by General Electric Capital Corp. and Bank of America
agreed to lend it $70 million in debtor-in-possession
financing.

"They just expanded too quickly, and the concept just got
dull," said Neil Dorflinger, a director of DLS Capital
Partners, who bet in the last six months that the stock
would fall and owns some of the company's debt. "They won't  
liquidate, but they are going to have to shrink a lot."

Boston Chicken and its Boston Market restaurants created a
Wall Street sensation in 1993. Its initial public offering
was priced at $20 per share and shot to nearly $50. The
stock split 2-for-1 in 1994.

The stock has since plummeted, closing as low as 50 cents
on the Nasdaq Stock Market, down 25 cents. The company,  
which went public five years ago and saw its shares
reach prices as high as  $50, filed for protection because
of about $283 million in debt that comes due  Oct. 17.

Between May 1992 and this year, Boston Chicken grew from 34
stores in the Northeast to 1,143 nationwide. Sales jumped
from about $21 million in December 1991 to nearly $1.2
billion in 1996.

Boston Chicken said 2,700 employees are being transferred
to stores that will remain open. The company plans to leave
14 cities, where 500 hourly workers will be fired. It has
18,500 employees in total. The company closed all
of its stores in Des Moines, Iowa; Louisville, Kentucky;
and Nashville and  Memphis, Tennessee, among others.


CR MINING: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor:  CR Mining Company
         200 West Main St.
         Suite 2200
         Louisville, Kentucky 40202

Court: District of Delaware

    Filed: 10/13/98    Chapter: 11

Debtor's Counsel: Laura Davis Jones
                  Young, Conaway, Stargatt & Taylor
                  11th Floor, Rodney Square North
                  P.O. Box 391
                  Wilmington, Delaware 19899-0391
                  (302) 571-6600

                  Sidley & Austin
                  875 Third Avenue
                  New York, NY 10022
                 (212)906-2000

Affiliated debtors: Centennial Resources, Inc., Centennial
Coal Inc., B-Four, Inc.

20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Lincoln National Life Insurance     Bond Debt   $15,118,325
Lincoln National Income Fund, Inc.  Bond Debt      $542,087
Security Connecticut Life Ins. Co.  Bond Debt      $542,087
Whayne Supply                     Trade Notes      $441,413
Madisonville Tire & Retreading     Trade Debt       $54,854
Cumberland Surety Ins. Co.         Trade Debt       $34,855
Amoco Oil Company                  Trade Debt       $28,187
Danco Engineering, Inc.            Trade Debt       $23,008
Vibra-Tech                         Trade Debt       $14,854
West KY Steel Const. co.           Trade Debt       $13,553
Double A Services                  Trade Debt       $13,157
Felty Corp.                        Trade Debt       $11,904
Rudd equipment Company             Trade Debt       $11,571
Trueblood Oil Co., Inc.            Trade Debt        $8,805
Groves Construction                Trade Debt        $8,575
Henderson Union Electric           Trade Debt        $7,216
Boss Cementing                     Trade Debt        $7,020
Gary T. Cecil                      Trade Debt        $6,870
Hydraulic Exchange & Repair        Trade Debt        $6,590
Charolais Corporation              Trade Debt        $5,923


CENTENNIAL COAL: Case Summary & 20 Largest Unsecured
Creditors
--------------------------------------------------
Debtor:  Centennial Coal, Inc.
         200 West Main St.
         Suite 2200
         Louisville, Kentucky 40202

Court: District of Delaware

    Filed: 10/13/98   Chapter: 11

Debtor's Counsel: Laura Davis Jones
                  Young, Conaway, Stargatt & Taylor
                  11th Floor, Rodney Square North
                  P.O. Box 391
                  Wilmington, Delaware 19899-0391
                  (302) 571-6600

                  Sidley & Austin
                  875 Third Avenue
                  New York, NY 10022
                 (212)906-2000

Affiliated debtors: Centennial Resources, Inc., CR Mining
Company, B-Four, Inc.

20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Lincoln National Life Insurance     Bond Debt   $15,118,325
Lincoln National Income Fund, Inc.  Bond Debt      $542,087
Security Connecticut Life Ins. Co.  Bond Debt      $542,087


CENTENNIAL RESOURCES: Case Summary & 20 Largest Creditors
---------------------------------------------------------
Debtor:  Centennial Resources, Inc.
         200 West Main St.
         Suite 2200
         Louisville, Kentucky 40202

Court: District of Delaware

    Filed: 10/13/98    Chapter: 11

Debtor's Counsel: Laura Davis Jones
                  Young, Conaway, Stargatt & Taylor
                  11th Floor, Rodney Square North
                  P.O. Box 391
                  Wilmington, Delaware 19899-0391
                  (302) 571-6600

                  Sidley & Austin
                  875 Third Avenue
                  New York, NY 10022
                 (212)906-2000

Affiliated debtors: Centennial Coal, Inc., CR Mining
Company, B-Four, Inc.


20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Lincoln National Life Insurance    Bond Debt   $15,118,325
Whayne Supply                    Trade Notes    $1,641,010
Dyna-Blast                        Trade Debt      $920,662
Lincoln National Income Fund, Inc. Bond Debt      $542,087
Security Connecticut Life Ins. Co. Bond Debt      $542,087
Summit Coal Company, LLC           Leasehold      $414,000
Amoco Oil Co.                     Trade Debt      $364,830
Kintex, Inc.                      Trade Debt      $128,325
Charolais Corporation             Trade Debt      $118,692
Madisonville Tire & Retreading    Trade Debt      $112,643
Ohio County Sheriff               Trade Debt      $108,256
Clay's Trucking Inc.              Trade Debt       $86,175
Anker Energy Corporation            Contract       $84,000
Cummins Cumberalnd                 Trade Debt      $81,598
Anchor Hydraulics Division         Trade Debt      $74,159
West KY Steel Const. Co.           Trade Debt      $69,436
Pennyrile Supply                   Trade Debt      $63,545
Certex Superior, Inc.              Trade Debt      $62,776
Flanders Electric                  Trade Debt      $54,639
Brandeis Machinery                 Trade Debt      $53,872
Kentucky Utilities                    Utility      $51,134


COGNERATION: Seeks To Enjoin NRG Energy
---------------------------------------
Cogeneration Corporation of America (CogenAmerica) and
Lawrence I. Littman, a member of the Independent Directors
Committee, have filed a suit in bankruptcy court in New
Jersey seeking a permanent injunction enjoining NRG Energy
from violating CogenAmerica's bylaws, according to a
newswire report. The lawsuit alleges that NRG has tried to
circumvent the companys bylaws agreed to by NRG and
approved by the bankruptcy court order in its proxy action
aimed at removing CogenAmerica CEO Robert T. Sherman Jr. as
a company director. The suit also states that "NRG, having
agreed to pay the super-majority provisions for stockholder
consent in lieu of a meeting, cannot simply declare that
the provision violates Delaware law and is now no longer
part of the negotiated deal ... Since the effective date of
the NRG plan [which enabled O'Brien Environmental Energy
Inc. to emerge from bankruptcy in 1996], NRG has
consistently demonstrated a desire to take advantage of
CogenAmerica and its public stockholders by unreasonably
using its influence to cause the NRG-appointed directors to
take actions detrimental to the best interests of
CogenAmerica." Littman also was chairman of the
Equity Security Holders Committee appointed by the court in
the O'Brien Environmental Energy Inc. chapter 11 case. (ABI
14-Oct-98)


DOW CORNING: Estimates Settlement Claims at $3.7 Billion
--------------------------------------------------------
Dow Corning Corp. Chair and CEO Richard Hazelton said the
total cost for settling breast implant claims will be about
$3.7 billion, including $400-$500 million already spent on
legal and research services, according to a newswire
report. In July, the Michigan-based company agreed to pay
$3.2 billion to settle claims from some 177,000 women
who argue that their silicone gel breast implants caused
health problems. Hazelton said he expects the company to
file its reorganization plan by the end of the month and
hopes to emerge from bankruptcy not later than the middle
of next year. Dow Corning filed chapter 11 in May 1995.
(ABI 14-Oct-98)


FPA MEDICAL: Court Approves Joint Administration
------------------------------------------------
On October 2, 1998 the Bankruptcy Court for the District of
Delaware entered an order directing joint administration of
the following cases:

Medical Management of California, Inc.
Carolina Health Care Group, PC
Arizona Managed Care Providers, Ltd.
FPA Medical Foundation
FPA Medical Group of Arizona , PC
FPA Medical Group of Delaware, PA
FPA Medical Group of Kansas, PA
FPA/Gregory Medical Group of Nevada, Ltd.
FPA Medical Group of New Jersey
FPA Medical Group of Pennsylvania, A Medical Corporation
Virginia Medical Associates, PC

The cases have been consolidated for procedural purposes
only and shall be administered jointly with the cases
previously styled FPA Medical Management, Inc., et al.


FOXMEYER: Trustee Seeks Authority to Settle With Amgen
------------------------------------------------------
Bart A. Brown, Jr. Chapter 7 trustee is seeking approval of
a letter agreement with Amgen, Inc. compromising and
settling chargeback, reclamation and unsecured claims.

Pursuant to the agreement, Amgen will have an allowed
unsecured claim in the amount of $6,362,147.In addition
Amgen will have an allowed reclamation claim in the amount
of $1,706,259.

Oaktree Capital Management has been assigned all of the
reclamation claim and the unsecured claim of Amgen.  As
part of the overall settlement Oaktree has agreed to reduce
the Reclamation Claim to $1,705,259 and purchase the
remaining $1,381,723 of the Remaining Claim from Amgen.

The Trustee seeks entry of an order approving the
agreement.  Absent this settlement the Trustee and Amgen
could become embroiled in additional litigation that would
consume additional assets of the debtors' estates.  The
Trustee submits that the probability of success in a
litigation has been duly accounted for in the agreement.


GREATE BAY: Posts $2M Of Net Income In August
---------------------------------------------
For August, Greate Bay Hotel & Casino Inc., which owns The
Sands in Atlantic City, N.J., posted net income of more
than $2 million on net revenues of about $22.6 million.
Operating income for the month totaled nearly $2.6 million.
The casino's forecast for August had projected net income
and revenues of approximately $3.1 million and $25.4
million, respectively. (The Daily Bankruptcy Review and ABI
Copyright c October 14, 1998)


HARVARD INDUSTRIES: Posts $6M Net Loss For August
-------------------------------------------------
Harvard Industries Inc. posted a $6 million net loss on
sales of about $41.2 million for the month ended Aug. 23.
The auto parts manufacturer's operating loss for the month
was nearly $3.7 million. Reorganization costs totaled about
$1.4 million. For the 11 months ended Aug. 23, Harvard's
net loss was more than $31.7 million on sales of
approximately $629.8 million. (The Daily Bankruptcy Review
and ABI Copyright c October 14, 1998)


KIA MOTORS: Ford's Bid Fading
-----------------------------
According to a Reuter's Financial report on October 14,
1998, The Ford Motor Co bid for Korea's Kia Motors and Asia
Motors seemed less likely to succeed after sources  
said on Wednesday the company had asked for the biggest
debt write-off among competing bidders. Ford wanted 7.5
trillion to 8.0 trillion won ($5.6 billion to $6.0  
billion) of debt reduction, analysts familiar with the
bidding said.

South Korea's three bidders -- Hyundai Motor, unlisted
Daewoo Motor and Samsung Motors -- had asked for between
5.5 trillion won and seven trillion won of write-offs, they
added.  The four companies submitted their bids on Monday.  
The combined debt principal of Kia and Asia Motors is about
12 trillion won, but analysts said the figure could rise
further upon more careful scrutiny of the books.

"Ford's chances of winning the bidding looks near zero,"
said Lee Jung-ja, research head at HSBC Securities. "But
Kia's creditors would not want the other bidders to take
over Kia either."

Officials at Kia and its main creditor, Korea Development
Bank (KDB), slammed the analysts' comments as groundless,
saying the winning bidder would be announced on October 19
as scheduled. The creditors have set several criteria for
picking a winner, including technology transfer and the
ability to bring in fresh capital, as well as share  
pricing and debt management. Ford and its affiliate Mazda
Motor Corp of Japan already hold a 16.9 percent stake in
Kia and have long provided technical assistance to the  
company. Ford vice chairman Wayne Booker told Reuters on
Tuesday that Ford had bid for a 51 percent stake in Kia and
would finance the acquisition with its cash reserves of $22
billion.

The domestic daily Hankook Ilbo, quoting sources at the
auction headquarters, said Daewoo Motor Co was seeking the
least amount of debt cuts among the four candidates.
Analysts said the differences between Ford and Daewoo's
demand for debt write-offs could be as large as two
trillion won.    

Samsung Motors, the newest entry into Korea's crowded car
field and which had the most at stake in the Kia bid, would
probably seek a strategic alliance with Ford to jointly run
Kia and Asia Motors if it wins, analysts said.

Samsung was believed to be seeking six to seven trillion
won of debt cuts, analysts said.

Hyundai's interest in Kia and Asia Motors stemmed in part
from a desire to expand production capacity.
"If Hyundai takes over Kia, its capacity will rise to over
2.5 million units. That will help a lot," said Ji Sung-
chul, analyst at LG Economic Research Institute.
Analysts said Hyundai was demanding a debt-cut marginally
higher than that of Daewoo, putting itself up high in the
candidate list. ($1 = 1339.30 won)


MAIDENFORM: Seeks Extension of Exclusivity
------------------------------------------
Maidenform Worldwide, Inc., and its affiliates, as debtors,
are seeking a court order to extend the exclusive periods
within which the debtors may file a plan or plans of
reorganization and solicit acceptances thereof.

The debtors seek an order extending the period during which
the debtors have the exclusive right to file a plan or
plans of reorganization, from the current expiration of
October 30, 1998 to and through March 1, 1999; and
extending the period during which the debtors have the
exclusive right to solicit acceptances to such plans, from
the current expiration on December 30, 1998 to and through
April 30, 1999.    The debtor asserts that these cases are
large and complex.  The debtors devote substantial time to
identifying those activities and locations that will play
an ongoing role in an effective business rehabilitation.  
This process has involved a comprehensive analysis of the
debtors' product, customers, suppliers, employees, and
manufacturing and distribution processes.

The debtors believe that ample reason exists for the
debtors to receive the requested extensions of exclusivity.  
The debtors have formulated a business plan, and presented
the plan to a lending group and are about to propose the
plan to the Creditors' Committee.  The debtors anticipate
seeking a bar date and they expect that preliminary
negotiations with all key constituents concerning the
specific terms of the plan will soon commence.  The debtors
hope to emerge from Chapter 11 by mid-1999.

Further, the debtors state that termination of the
exclusive periods and the threat of multiple plans filed by
other parties would be deleterious to the debtors at this
juncture and could lead to adversarial situations that will
undermine the success to date and harm the debtors'
business.  It could also serve as a signal to vendors and
customers that there is a loss in confidence in the debtors
and would have a negative effect on the debtors, to the
detriment of the creditors.


MCGINNIS PARTNERS: Committee Appointed
--------------------------------------
The U.S. Trustee appoints the following eligible creditors
of the McGinnis Partners Focus Fund, LP, McGinnis Global
Fund, Ltd, and Russia Value Fund, LP to the Committee of
Unsecured Creditors for each debtor:

Bank of America, NT & SA
335 Madison Avenue
New York, NY 10017
(212) 503-8353

Banque D'Escompte
13 Boulevard Haussman
75009 Paris, France
(33-1) 48 24 85 44

Citibank, NA
599 Lexington Ave., 21st Floor
New York, NY 10043
(212) 559-9595

Credit Suisse First Boston (Europe) Limited
c/o Credit Suisse First Boston Corporation
Eleven Madison Ave.
New York, NY 10010-3629
(212) 325-0331

Lehman Brothers Commercial Corporation
c/o Jeffrey L. Schwartz, Esq.
Hahn & Hessen LLP
350 Fifth Avenue
New York, NY 10118
(212) 526-3721

Merrill Lynch Capital Services
World Financial Center
250 Vesey Street
New York, NY 10281-1332
(212) 236-6289


MONTGOMERY WARD: Seeks To Sell Realty and a Lease
-------------------------------------------------
The Montgomery Ward Bankruptcy News, Issue 34, published by
Bankruptcy Creditors' Service reports that the Debtors are
asking the Court for permission to sell, subject to higher
and better offers:

(1) a 1957 Lease with Kraus-Anderson Incorporated for a
store located at the Southtown Shopping Center in
Bloomington, Minnesota;

(2) a parcel of real estate located at Rosedale Shopping
Center in Roseville, Minnesota; and

(3) a parcel of land in Midway Market Place in St. Paul,
Minnesota;

to assume and assign the relevant leases and sell the real
estate to G.R. Herberger's, Inc., a subsidiary of Saks,
Incorporated (formerly known as Proffits).  The Debtors
anticipate realizing approximately $15,000,000 from this
transaction.  To protect Proffits' interests in these
transactions, the Debtors have agreed to pay break-up fees
totaling $300,000 in the event Proffits' bids are topped by
a third-party offeror.  The Debtors make it clear that they
will entertain bids on a property-by-property basis.  


ONEITA INDUSTRIES: Seeks Employment Agreement With CEO
------------------------------------------------------
Oneita Industries, Inc., debtor, is seeking authorization
to enter into an employment agreement with C. Michael
Billingsley, the debtor's current President and CEO.  The
term of the Agreement shall be for a period commencing
immediately and ending on September 30, 2000.  Billingsley
will be paid an annual salary of $300,000 for the first
year of the term, and $325,000 for the second year.  In the
event of a non-renewal of the agreement, Billingsley shall
receive $325,000 and he could receive an additional bonus
of up too $150,000 in the event a plan is confirmed on or
before December 31, 1998.


PETRIE RETAIL: Accuses Committee of Ignoring Truth
--------------------------------------------------
Petrie Retail Inc's response to the creditors' committee's
demand to comply with a potential purchaser's due diligence
requests reduces the request to a collection of baseless
and irresponsible attacks riddled with false accusations
and innuendo.  "The Committee has chosen either to ignore
the true facts or failed to ascertain them as a result of
its zealous attempt to cast aspersions on the confirmation
process it negotiated and agreed to over eleven months ago.
. . The Committee's vituperative discourse should not be a
substitute for the true facts," the retailer shot back in
an Oct. 9 response.  The panel has accused Petrie of
dragging its feet in providing competitor Rainbow Apparel
Cos. with requested information. (Federal Filings Inc. 14-
Oct-98)


PHILIPPINE AIRLINES: Cathay Pacific Close To Deal
-------------------------------------------------
Philippine president Joseph Estrada on Wednesday said Hong
Kong-based Cathay Pacific Airways Ltd was close  
to wrapping up a deal to buy 40 percent of struggling
Philippine Airlines (PAL).  "The negotiations for Cathay to
buy a 40 percent stake in PAL are almost over," Estrada
said in a press statement released by the presidential
palace in Manila.

He said talks had ended with U.S.-based Northwest Airlines,
which had also expressed interest in flag carrier PAL.
"There are no more talks," Estrada said in the statement.
Cathay declined to confirm that a deal was close, but
reiterated its interest.

"We have always been saying that we have a long-term
interest in a Philippine-based operation. And so we are
still looking into the various alternatives. But we haven't
reached any decision yet," said Cathay Pacific Airways
spokeswoman Quince Chong.

"We are still in continued negotiation."

Estrada, credited with persuading PAL's biggest labour
union to accept a management offer that paved the way for
the resumption of local flights early this month, said PAL
chairman and majority shareholder Lucio Tan was discussing
a debt restructuring plan with creditors.  PAL owes about
$2.0 billion to both local and foreign creditors.

The 57-year old carrier, Asia's oldest airline, was forced
to shut down operations on September 23 due to a protracted
labour dispute and enormous financial losses. But the PAL
union eventually agreed to a 10-year freeze on strikes and
wage bargaining in return for a 20 percent equity interest
in the airline.  PAL resumed domestic operations on October
7 but recently deferred plans to resume international
flights on October 15.  Tan, according to President
Estrada, is no longer interested in retaining his majority
stake.

Creditors and lessors, including the U.S. Export-Import
Bank, have laid claim to the airline's planes. PAL owes
about $400 million to the Eximbank, which has called for
the lease termination of two Boeing 747-400s.
Creditors have also sought clarification from the company
and the Securities and Exchange Commission about a
rehabilitation plan, which is now being drawn up.
(Manila newsroom,Reuters:Financial-10/14/98)


PITTSBURGH PENGUINS: File Chapter 11
------------------------------------
The Pittsburgh Penguins filed chapter 11 yesterday for the
second time, according to the Associated Press. The team,
which first filed for chapter 11 protection in 1975, cited
losses of $37.5 million over the last two seasons and the
inability to negotiate a better lease agreement at the
Civic Arena, which soon will be the oldest in the National
Hockey League. NHL Commissioner Gary Bettman said that the
organization is disappointed about the filing, but that the
ownership has committed to adequately funding the team. The
team is facing four major lawsuits, including those by
former star Mario Lemieux, who claims the team has not paid
him per the terms of a contract signed in 1992. When the
team filed chapter 11 nearly 25 years ago, it could not pay
$6.5 million in debt, including a half a million dollars
owed in federal taxes. The Internal Revenue Service imposed
a lien and seized the assets, prompting the filing. Later
the team was sold. Former Los Angeles Kings owner Bruce
McNall was forced to sell the Penguins in 1994 after he was
in bankruptcy, and later went to prison. (ABI 14-Oct-98)


SOUTHERN PACIFIC: Ran Financial Tightrope
-----------------------------------------
The Albany Times Union reports on October 12, 1998 that
according to analysts, Southern Pacific's story should
serve as a warning to the  industry, Southern Pacific

The Oregonian newspaper, which tracked the failure of a
company whose stock value went from $350 million to zero,
says many in the high-risk mortgage industry see it as a
dire warning.   "This is not company-specific, it's
industry-specific," said Robert W. Howard, who was ousted
as Southern Pacific Funding's chief executive in late  
September.

Until recently, the company's top executives lounged in
600- square-foot offices with leather floor tiles. Bonuses
for two executives hit $1.3 million apiece last year while
the company backed more than $2 billion in home mortgage
loans.

The company's spectacular flameout left more than 300 of
its 540 employees jobless, and creditors scrambling to
collect more than $1 billion in debt. The result likely
will be tougher times for borrowers with weak credit
histories  and the housing industry in general.

According to evidence cited by the Federal Deposit
Insurance Corp., so-called "subprime" borrowers may have
accounted for as much as 10 percent to 15 percent of the
nearly $1 trillion worth of home mortgage loans made in
1996.  These high-risk borrowers were the target group for
Southern Pacific Funding and companies like it.

                 ****************

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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