TCR_Public/981022.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 21, 1998, Vol. 2, No. 207

                  Headlines

AIRSTAR TECHNOLOGIES: Files For Chapter 11 Protection
BARNEY'S INC: Order To Show Cause For Real Property Lease
CENTENNIAL CELLULAR CORP: Files Announcements With SEC
CITYSCAPE FINANCIAL: Proposes Retention of Jay Alix
EA. SHOSHONE HOSPITAL DISTRICT: Files Chapter 9

FPA MEDICAL: Seeks Extension of Exclusivity
FASTCOMM: Files Reorganization Plan
GOLF TRAINING SYSTEMS: Reports Bankruptcy Filing to SEC
HARRAH'S JAZZ: State Gambling Board Votes Yes
IMAGYN MEDICAL: Stockholder Meeting Set for November 24

KELLER FINANCIAL: Auction Sale of Loans
KIA MOTORS: Hyundai To Produce Kia Cars
LEVITZ FURNITURE: Seeks To Implement Portfolio Sale
PARAGON TRADE: Stipulation To Extend Exclusivity
PHARMACY FUND: Final DIP Funding and Cash Collateral Ok'd

PITTSBURGH PENGUINS: Owes $1 Million in Back Taxes
POCKET COMMUNICATIONS: Hearing Set For FCC Options
SPOOKY WORLD: Unsafe Haunted Houses File Bankruptcy
SUN TELEVISION: Files Quarterly Report With SEC
WESTMORELAND COAL: Reports Settlement to SEC
YAMAICHI SECURITIES: Applies For Voluntary Bankruptcy

                *************

AIRSTAR TECHNOLOGIES: Files For Chapter 11 Protection
-----------------------------------------------------
Airstar Technologies Inc. filed for Chapter 11 bankruptcy
protection only a week after it won a court battle over
control of the company.  The Rancho Mirage-based
telecommunications supplier (OTC: ASTG) and its  
wholly owned subsidiary, Select Switch Systems Inc.,
simultaneously filed for Chapter 11 protection and
reorganization on Oct. 13 in U.S. Bankruptcy
Court for the Central District of California.

Airstar sought bankruptcy protection after Sprint Corp.
sought to cancel a 10-year exclusive subcontract with
Select Switch. The subsidiary had contracted with Sprint to
install telephone and cable service for 80,000
servicemen at Air Force and Army bases nationwide,
according to attorney Douglas Neistat with the  Los Angeles
firm of Angel and Neistat. Neistat is representing Airstar
and Select Switch.

Select Switch installed $40 million in equipment, expecting
to recoup its investment once troops began using the
service, Neistat said. But when Sprint signed only 40,000
customers, it sought to terminate its contract with Select  
Switch, Neistat said.

The bankruptcy protection petition blocks termination of
the contract and gives Airstar and Select Switch time to
reorganize, Neistat said. Sprint would not comment on its
curent or future relationship with Airstar. In July,
Airstar announced it had received a letter of intent from
British/Canadian Investment Group promising to support the
ailing company with a $40 million financing package. The
company said the financing would help it complete a planned
$10 million expansion of its military business and its
entry into the direct broadcast satellite, cable television
and high-speed Internet arenas.

That letter of intent has since expired, but Airstar
director Dal Grauer said he hopes the company will resume
its financing push following the reorganization.  On Oct.
5, the company won a court injunction against its former
business consultant, Joe Lanza, that prevented Lanza from
exercising his voting rights and possibly wresting control
of the company from current management. Lanza denied blame
for the company's financial woes. (Business Press Ontario
CA; 10/19/98)                 


BARNEY'S INC: Order To Show Cause For Real Property Lease
---------------------------------------------------------
The debtors, Barney's, Inc. et al., are seeking an order
approving the entry of the debtors into a certain non -
residential real property lease for their corporate
offices.

The lease covers 46,000 square feet for a term expiring on
May 31, 2009, with the right to cancel after five years.
The lease contains an option to renew for an additional
five year period and a base rent of $32 per rentable square
foot for years one through five and $35.50 per rentable
square foot for years six through ten; and a direct
operating pass through of increases in expenses and taxes
over a July, 1999 base year.

The debtors believe that the terms are fair, and that the
debtors require a permanent location for its corporate
offices.  Based on their investigation of alternative
locations, the debtors believe that continuing their
occupancy of the 575 Fifth Avenue location is the most
cost-effective and convenient option available.  The
debtors have determined that the rent proposed is the
prevailing market rate for comparable office space. The
location is convenient to the debtors, and the debtors
avoid the cost of moving.


CENTENNIAL CELLULAR CORP: Files Announcements With SEC
------------------------------------------------------
On Oct. 12, 1998, Centennial Cellular Corp., a leading
independent cellular provider, announced that, in
connection with its tender offers and consent solicitations
for its outstanding 8-7/8% Senior Notes due 2001 and 10-
1/8% Senior Notes due 2005, it has extended the tender
offer expiration date. The terms of the tender offers
remain the same.  The Company is extending the tender offer
expiration date to 5:00 p.m. New York City time on November
13, 1998. The original tender offer expiration date was
5:00 p.m. New York City time on October 14, 1998.

The Company also announced that on October 9, 1998, the
Federal Communications Commission (the "FCC") approved the
last of the applications requesting the FCC's consent to
the transfer of control of the Company's cellular, PCS,
paging and microwave licenses from the Company to CCW
Acquisition Corp., a Delaware corporation organized at the
direction of Welsh, Carson, Anderson & Stowe VIII, L.P.
("WCAS") that are material to the proposed
merger (the "Merger") of the Company with WCAS.

The Merger is subject to certain conditions, including the
expiration of the period to appeal such FCC approvals and
the funding of financing arrangements. There can be no
assurances that such appeals will not be filed or the
financing will be obtained. It is expected that the tender
offers would be extended from time to time, if necessary,
if at the time of the scheduled expiration the conditions
to the Merger Agreement have not been satisfied.

As of the close of business on October 8, 1998,
approximately $248.1 million in aggregate principal amount
of the 8-7/8% Senior Notes and approximately $99.7 million
of the 10-1/8% Senior Notes had been tendered and
consents had been delivered, representing approximately
99.2% and 99.7%, respectively, of the $250.0 million
aggregate principal amount 8-7/8% Senior Notes and of the
$100.0 million aggregate principal amount 10-1/8% Senior
Notes outstanding.

Centennial Cellular Corp. announced on July 2, 1998, the
Agreement and Plan of Merger dated as of July 2, 1998,
between the Company and CCW Acquisition Corp., a Delaware
corporation organized at the direction of Welsh, Carson,
Anderson & Stowe VIII, L.P..

The Company announced that it had received a letter from
Acquisition attaching a communication from Merrill Lynch
Capital Corporation in which Merrill Lynch Capital
Corporation advised Acquisition that if it were requested
to fund, as of October 12, 1998, the credit facilities and
bridge loan contemplated by the commitment letter it
delivered to Acquisition, a condition to funding the credit
facilities and bridge loan set forth in the Commitment
Letter would not be satisfied and Merrill Lynch Capital
Corporation would therefore have no obligation to fund the
credit facilities or the bridge loan as of October 12,
1998. The condition to funding referred to is that no
material adverse change shall have occurred in the domestic
or international financial, banking or capital markets
since the date of its commitment that, in the reasonable
judgment of Merrill Lynch, would adversely affect the
syndication of credit facilities of the same type as the
credit facilities contemplated in the Commitment Letter or
debt securities of the same type contemplated to replace
the bridge loan commitments. However, Merrill Lynch Capital
Corporation recognized in its communication that such
condition to funding contemplated by the Commitment Letter
need only be satisfied on the date of request for such
funding. Therefore, Merrill Lynch informed Acquisition that
its communication "is for information purposes only and
does not constitute a termination, repudiation or
modification of the Commitment Letter, which (subject to
its conditions) remains in full force and effect." The
Commitment Letter and the Merger Agreement each have a
termination date of January 31, 1999.

The proposed merger is subject to certain conditions,
including the funding of financing arrangements committed
by Merrill Lynch or alternative financing on terms no less
favorable than those set forth in the Commitment Letter.
Pursuant to the Merger Agreement, WCAS has agreed to use
commercially reasonable efforts to consummate the committed
financing or alternative financing on terms no more onerous
than the terms of the committed financing.


CITYSCAPE FINANCIAL: Proposes Retention of Jay Alix
---------------------------------------------------
The debtors, Cityscape Financial Corp., and Cityscape
Corp., filed an amended application to employ and retain
Jay Alix & Associates to assist the debtors with compiling
information for the examiner and compiling information for
the schedules and statement of financial affairs to be
filed with the court.

The Jay Alix firm served as advisor to the debtors during
pre-petition negotiations with certain of the debtors'
major creditors and prospective lenders.  In addition, the
firm assisted the debtors in generating liquidity, reducing
operating expenses and selling assets.  The debtors believe
that retaining the firm is essential.  The familiarity that
the firm has with the case will be a great asset for
gathering information for the examiner and running the day-
to-day operations of the company.

Jay Alix & Associates received a retainer of $250,000 to be
applied against hourly time charges in connection with its
engagement.  Compensation on an hourly basis will range
from $460 per hour for Deborah Midanek (principal) to $180
per hours for accountants and consultants.  The Jay Alix
firm was also entitled to a contingent success fee
according to the Engagement Letter.

The success fee was contingent upon (i)reduction in
domestic operating expenses, (ii)eliminating funding of
Cityscape's U.K. operations, and (iii) confirmation of a
plan of reorganization within 12 months.

In settlement of any claim that the firm might have with
respect to any and all components of the success fee (which
could have exceeded $1.25 million), JA&A has agreed to
accept $450,000 pre-petition (paid) and to defer payment of
an additional $450,000 which claim has been assigned to
System Advisory Group, LLC, a wholly owned subsidiary of
Jay Alix & Associates and which claim will pass thruough
the bankruptcy as an unimpaired, pre-petition claim
pursuant to the debtors' proposed plan.
EA. SHOSHONE HOSPITAL DISTRICT: Files Chapter 9
-----------------------------------------------
The East Shoshone Hospital District in Coeur d'Alene,
Idaho, filed for chapter 9 protection last week, with
nearly $1 million in liabilities, The Spokesman-Review
reported. The tax-payer supported district closed its
Silver Valley Medical Center last month, and the district's
board of trustees voted earlier this month to file for
bankruptcy based on their conclusion that negotiations with
creditors would be "impractical." Court documents list no
assets and liabilities of $944,636. First Security Bank of
Salt Lake City, the Magnuson Trust and Source Capital
Leasing of Spokane are the secured creditors, with claims
of $435,000, while unsecured priority claims  total
$171,591 and unsecured non-priority claims total $338,045.
(ABI 21-Oct-98)


FPA MEDICAL: Seeks Extension of Exclusivity
-------------------------------------------
FPA Medical Management, Inc. et al., is seeking to extend
for a period of 90 days the debtors' exclusive periods
within which to file and solicit acceptances of a plan or
plans of reorganization.  In the event the motion is
granted, the debtors' exclusive periods to file and solicit
acceptances of the plan will be extended through and
including February 15, 1999 and April 15, 1999.

Based on a request of the Bank Group and the Committee to
continue the hearing on the Disclosure statement to permit
continued discussions and negotiations, the debtors agreed
to seek a continuance of the October 28, 1998 hearing as to
matters concerning approval of the Disclosure Statement,
and to seek to reschedule the Disclosure Statement hearing
to December 9, 1998.

The debtors' 101 chapter 11 cases are both large and
complex.  The debtors have been faced with numerous very
significant issues unique to these debtors and their
industry.  The debtors state that they are merely seeking
an extension in this case to preserve the status quo and to
facilitate the occurrence and continuation of good faith
negotiations between the Committee, the Bank Group and the
Debtors.


FASTCOMM: Files Reorganization Plan
-----------------------------------
FastComm Communications Corp., Sterling, Va., announced it
has filed its reorganization plan on the Eastern District
of Virginia bankruptcy court's website, according to a
newswire report. (The disclosure statement and plan can be
accessed by clicking Bankruptcy Cases, then conducting a
search of FastComm.) FastComm filed chapter 11 in June this
year. Company President Peter C. Madsen said the plan
provides for full payment to all general unsecured
creditors and preserves the position of current
shareholders. FastComm designs, manufactures and sells
access products for public and private digital networks.
(ABI 21-Oct-98)


GOLF TRAINING SYSTEMS: Reports Bankruptcy Filing to SEC
-------------------------------------------------------
Golf Training Systems, Inc. reports to the SEC that on
August 11, 1998 the company, a Georgia corporation, filed  
a voluntary Petition for Relief under the provisions of
Chapter 11 of the U.S. Bankruptcy Code in the U.S.
Bankruptcy Court for the Northern District of  Georgia,
Atlanta Division (Bankruptcy Case No. 98-75390-SWC).
Chapter 11 allows the Company to remain as debtor-in-
possession of its assets and business while being subject
to the supervision and orders of the Bankruptcy Court for  
certain transactions or actions. The Company is negotiating
an agreement with Meadowcroft Golf Associates, Inc., the
lender under the Company's existing working capital credit
facility for use of such collateral to fund on-going  
operations.  This agreement will be limited in duration."
(States SEC-10/20/98)


HARRAH'S JAZZ: State Gambling Board Votes Yes
---------------------------------------------
The state gambling board unanimously declared on Tuesday
that a partnership that includes gambling giant Harrah's
Entertainment Inc. is suitable to run a gambling operation
in the state.

The partially-finished gambling palace was abandoned amid
bankruptcy proceedings in 1995.

State Rep. Tony Perkins, R-Baton Rouge, had urged Gov. Mike
Foster to get the board to delay a decision until a federal
investigation of former Gov. Edwin Edwards is completed.  
Foster refused, stressing that the New Orleans casino
project has nothing to do with an investigation that
centers around the riverboat casino industry.

Three of Edwards' friends and business associates have made
plea agreements with the federal government, admitting they
were involved in plans to pay the former governor to secure
approval for riverboat casino projects. Edwards has  
denied any wrongdoing while acknowledging he expects to be
indicted.  Gambling board approval came only after the
board received assurances from a company executive that no
one in or out of state government had demanded money
to smooth the way.      


IMAGYN MEDICAL: Stockholder Meeting Set for November 24
-------------------------------------------------------
The 1998 Annual Meeting of Stockholders of Imagyn Medical
Technologies, Inc. will be held on November 24, 1998, at
The Four Seasons Hotel, 690 Newport Center Drive, Newport
Beach, California 92660 commencing at 9:00 a.m.
local time, for the following purposes:

1. To elect two Class I directors to serve a three-year
term or until their successors are duly elected and
qualified.

2. To ratify the selection of Deloitte & Touche LLP as the
Company's independent auditors for the fiscal year ending
March 31, 1999.

3. To transact such other business as may properly come
before the Annual Meeting or any adjournment thereof.


KELLER FINANCIAL: Auction Sale of Loans
---------------------------------------
A notice was published in The Wall Street Journal of
October 21, 1998 that Kevin O'Halloran, Trustte e of the
administratively consolidated Chapter 11 cases of Keller
Financial Services of Florida Inc. and  its affiliates,
will sell the debtors' complete portfolio of automiobile
motorcycle and jet ski receivables which are generally
described as "sub-prime auto loans," for cash; consisting
of approximately 18,644 accounts with a principal balance
of approximately $112,847,298 (13,739 deficiency acounts)
for a purchase price equal to 79% of the Net Principle
Balance of the Accounts.  The auction sale will be held on
October 27, 1998 at 1:30 pm in Courtroom 8A, Sam M. Gibbons
Federal Courthouse, 801 North Florida Avenue, Tamppa,
Florida 33602.
        

KIA MOTORS: Hyundai To Produce Kia Cars
---------------------------------------
In a UPI report of October 20, 1998, Hyundai Motor Co. Ltd.
says the company will continue to produce cars in the Kia
brand name in hopes to boost sales in both domestic and
overseas markets.  A Hyundai statement says the takeover of
ailing Kia Motors Co. Ltd. and its truck-building affiliate
Asia Motors Co. Ltd. will abate excessive competition
between local automakers, cutting marketing costs to a
minimum.  Hyundai claims the two automakers will "transform
itself into a healthy company with net assets of
approximately $1.5 billion (2 trillion won)."  The
statement said Hyundai will lunge forward to become one of
the world's top ten automakers with production capacity of
2.5 million cars.  But local auto analysts claim Kia still
faces rough waters as creditors have yet to give the green
light on the debt write-off plan submitted by Hyundai
Motors.

Minister Park Tae-young of the commerce, industry and
energy ministry said,  "The creditors do not have any
reason to reject Hyundai as the winner of the Kia
auction.... If they do not accept the Hyundai takeover, the
only thing left is the bankruptcy process."

Park added, "Whether Hyundai joins hands with a foreign
company or not is totally up to Hyundai to decide."
Creditors of debt-ridden Kia set a $3.78 billion ceiling on
debt write-offs for the company's flagship Kia and its
sister company Asia Motors.  State-run Yonhap news agency
said creditors, in hopes to draw in foreign capital, are
said to be leaning toward handing Kia and Asia Motors to
Ford or to have the successful bidder form a consortium
with the U.S. auto giant. Maeil Business Newspaper reported
all four bidders skirted conditions set by creditors as
Hyundai and Daewoo Group requested debt write-offs
exceeding $5.3 billion while Samsung and Ford both demanded
write-offs of over $6 billion.

Kia is under court protection granted by creditors
following its collapse last July under debts topping $10
billion. Kia's flagship automaker is owned in part by Ford
Motor Co. and Japan's Mazda Motor Corp., which
together own close to 17  percent of the company.

A Seoul court on Wednesday sentenced the former chairman of
South Korea's Kia Group, Kim Sun-hong, to seven years in
jail on charges including misappropriation and embezzlement
of corporate funds, a court official said.


LEVITZ FURNITURE: Seeks To Implement Portfolio Sale
---------------------------------------------------
The debtors, Levitz Furniture Incorporated, et al., are
seeking authority to issue a quitclaim assignment for
customer accounts sold by General Electric Capital
Corporation to Household Bank under a portfolio sale
agreement.  

In connection with the new credit card agreement that
Levitz entered into with Household, Household purchased the
accounts from GE Capital.  The debtors' request sets forth
a time period of nine days (until October 29, 1998) for
filing objections to the Quitclaim Assignment Motion.


PARAGON TRADE: Stipulation To Extend Exclusivity
------------------------------------------------
At a hearing on October 20, 1998, Paragon Trade Brands,
Inc., its official creditors' committee, and patent
infringement adversaries Procter & Gamble Co. and
Kimberly-Clark Corp., submitted a stipulation extending
Paragon's exclusivity for 30 days, according to counsel for
the diaper maker. The court approved the joint stipulation
and will execute an order memorializing the agreement
shortly. Although the stipulation only calls for a
30-day extension, if no responses or objections are filed,
Paragon's exclusivity will automatically extend an
additional 30 days. (Federal Filings Inc. 21-Oct-98)


PHARMACY FUND: Final DIP Funding and Cash Collateral Ok'd
---------------------------------------------------------
Pharmacy Fund Inc. and its Pharmacy Fund Receivables Inc.
unit won final authorization to use the cash collateral of
prepetition lender Prudential Securities Credit Corp. in a
maximum amount of $8 million, or to borrow up to $2 million
in debtor-in-possession financing from Prudential. The
court approved the cash collateral use and DIP funding
following a hearing. The purchaser and servicer of drug
prescription receivables on Sept. 15 won authorization to
borrow up to about $1.2 million on an interim basis pending
the final hearing. (Federal Filings Inc. 21-Oct-98)


PITTSBURGH PENGUINS: Owes $1 Million in Back Taxes
--------------------------------------------------
The city should use tougher tactics to collect almost $1
million in back amusement taxes owed by the Penguins and
co-owner Roger Marino, City Council members said yesterday.

"I want to know how we can be more aggressive" in
collecting the back taxes, Jim Ferlo said during
yesterday's meeting. "Take (Marino's) car. Take his  
house. That's our money."

Ferlo also suggested chaining the doors to the Civic Arena
until the Penguins pay the city the taxes, which are taken
from a 5 percent tax on tickets. Dan Cohen, a lawyer and a
member of the Public Auditorium Authority, suggested
amending the authority's suit against Marino - brought two
weeks ago to block him from shopping the team to other
cities - to ask for damages and interest for the unpaid
taxes.

In the wake of the team's filing for bankruptcy protection
last week, Mayor Murphy said the team owed the city at
least $900,000 in amusement taxes collected during the last
hockey season. After months of trying to collect the taxes,
Murphy said, the city was told by a Penguins lawyer on Oct.
5 that the team could not pay the sum.

Upon Murphy's urging, Allegheny County District Attorney
Stephen A. Zappala Jr. has begun investigating whether to
file criminal charges in the case. Usually, the city
pursues civil remedies such as liens against delinquent  
taxpayers. The Penguins case could be different, however,
since the team is acting as the city's agent when
collecting the taxes on its behalf.

Amusement taxes are tacked on to the admission price of
sports events, movies, concerts, plays and the like by team
and theater owners, promoters and ticket agencies. On the
15th of every month, they are supposed to send the city
a check containing the previous month's tax receipts.

Besides the back taxes owed by the Penguins, no other city
amusement taxes are delinquent, said city Finance Director
Paul Hennigan.

The city had collected $4.5 million in amusement taxes
through Aug. 31 - the latest time updated financial reports
were available - which is two-thirds of the $6.75 million
the city expects to collect in amusement taxes this year.

Despite Hennigan's assurance, City Councilman Dan Onorato
introduced a resolution yesterday calling for the City
Controller's office to review amusement tax collection,
discover if other amusement businesses owe the city  
back taxes and find out why the city did not crack down on
the Penguins earlier for being delinquent.

According to Hennigan, when the Penguins raised season
ticket prices in 1997, they allowed fans to pay in
installments, which affected the amusement  
tax payments. The team worked out a payment plan with the
city, though, and kept up with their amusement tax payments
until the beginning of 1998, when it stopped sending the
city checks.(Pittsburgh Post Gazette - 10/21/98)


POCKET COMMUNICATIONS: Hearing Set For FCC Options
--------------------------------------------------
The Bankruptcy Court for the District of Maryland (Northern
Division) has scheduled a final hearing on the Emergency
Motion of Pocket Communications, Inc. and DCR PCS, Inc.,
debtors,  for an order authorizing the debtors' election of
FCC Options to be held on October 29, 1998 at 10:00 am at
the U.S. Bankruptcy Court, Ninth Floor, 101 West Lombard
Street, Baltimore, Maryland.


SPOOKY WORLD: Unsafe Haunted Houses File Bankruptcy
---------------------------------------------------
The Spooky World horror theme park in the town of Berlin
has filed for bankruptcy in the face of a crackdown by town
officials. Owner David Bertolino has asked the U.S.
Bankruptcy Court in Worcester to prevent the town from
interfering  with it operations. According to the Worcester
Telegram and Gazette, town and state building safety
officials have ordered Bertolino to install automatic
sprinklers in two buildings, but Bertolino argues the
officials are misapplying the state building code. The town
on Saturday declared three of Spooky World's haunted houses
unsafe and shut them down. Berlin is seeking a permanent  
injunction to keep the houses closed until a full hearing
can he held. The amusement park on a 26-acre farm is open
only during October and draws 5,000 to  7, 000 visitors
each evening. Its primary features are a haunted hayride, a  
haunted house, a haunted mine shaft, a 3D disco and the
Hell House of  Hollywood. The haunted mine shaft and the
haunted house are among the sites closed because they
lacked sprinklers.


SUN TELEVISION: Files Quarterly Report With SEC
-----------------------------------------------
Sun Television & Appliances Inc. reported to the SEC that
the company recorded a net loss of $63,477,000, or $3.64
per share, for the second quarter ended August 29, 1998,
compared to a net loss of $6,747,000, or $.39 per share,
for the quarter ended August 30, 1997. The loss reported
for the second quarter of fiscal 1999 includes a non-cash
charge of $47.4 million, or $2.72 per share, related to the
impairment of long-lived assets. Total sales increased
$11.2 million to $121.7 million for the second quarter this
year.  Comparable store sales declined 9.3% from $108.8
million for the quarter ended August 30, 1997, to $98.7
million for the quarter ended August 29, 1998. The
gross profit percentage rate decreased from 24.4% last year
to 20.3% this year for the comparable quarter. Selling,
general and administrative expenses have increased $5.1
million and the percentage of expense to sales has
increased from 29.5% for the quarter ended August 30, 1997
to 30.9% for the quarter ended August 29, 1998.

Net sales and service revenues for the second quarter ended
August 29, 1998 were $121,652,000, an increase of
$11,211,000, or 10.2%, from $110,441,000 for the
quarter ended August 30, 1997. Net sales and service
revenues for the second quarter ended August 29, 1998
includes sales of $23,173,000 from eighteen stores
that have opened since November 1997. The increase in sales
is attributable to the new stores opened since August 30,
1997 and partially offset by the negative comparative store
sales experienced during this quarter. However, net sales
and service revenues for the second quarter of fiscal
1999,specifically in late July and all of August, fell
significantly below the Company's internal projections.

Net sales and service revenues for the six months ended
August 29, 1998, were$231,183,000, an increase of
$15,746,000, or 7.3%, from $215,437,000 for the six
months ended August 30, 1997. Net sales and service
revenues for the six months ended August 29, 1998 includes
sales of $38,255,000 for the eighteen stores opened since
November 1997. The increase in sales is attributable to the
new stores opened since August 30, 1997 and partially
offset by the negative comparative store sales experienced
during the first two quarters of fiscal1999.

The Company's business, consistent with other retailers in
general, is seasonal.  Historically, the Company has
realized more of its net sales and service revenues and
income from operations during the fall holiday selling
season than during other periods of the year. The net
earnings/losses of any interim quarter are seasonally
disproportionate to net sales since administrative and
certain operating expenses remain relatively constant
during the year. Therefore, interim results should not be
considered indicative of the results for the entire fiscal
year.

During the quarter, the Company opened one new store
location in Aurora, Indiana for a total of eight new stores
opened in the six months ended August 29, 1998.
The Company had 59 stores open as of August 29, 1998, and
pending approval by the Bankruptcy Court, plans to open one
new store in the third quarter of fiscal 1999 at the Easton
complex in Columbus, Ohio. As discussed previously, the
Company, as part of the bankruptcy proceedings, has been
authorized by the Bankruptcy Court to close 29 stores in
six states.

The gross profit percentage for the second quarter ended
August 29, 1998 was 20.3%, compared with 24.4% for the
quarter ended August 30, 1997. This decrease in margin rate
was primarily attributable to the continued competitive and
highly promotional environment that exists in almost all of
the Company's markets and the volume of service policies
sold during the second quarter of fiscal 1999.

The gross profit percentage for the six months ended August
29, 1998 was 22.3%,compared with 23.2% for the six months
ended August 30, 1997. This decrease in margin rate was
primarily attributable to the reduced margin rate
experienced in the second quarter of fiscal 1999 explained
above, partially offset by the increased margin rate
experienced in the first quarter of fiscal 1999.


WESTMORELAND COAL: Reports Settlement to SEC
--------------------------------------------
In a Form 8K filed with the SEC, Westmoreland Coal
Co.,which filed for protection under chapter 11
of the US Bankruptcy Code in December, 1996, announced
that it has reached a settlement agreement with the
1992 UMWA Benefit Plan, the UMWA Combined Fund and the
UMWA 1974 Pension Trust, the United Mine Workers of
America and the Official Committee of Equity Security
Holders ("Equity Committee") for the resolution
of its Chapter 11 case.  The agreement, which provides
terms for a consensual dismissal, was announced during
scheduled hearings on Westmoreland's Motion to Dismiss
and the Equity Committee's Motion to Convert to chapter 7,
and the hearings were subsequently recessed.

The agreement, which provides terms for a consensual
dismissal, was announced during scheduled hearings on
Westmoreland's Motion to Dismiss and the Equity  
Committee's Motion to Convert to chapter 7,  and the  
hearings were subsequently recessed.

All undisputed creditor claims will be paid in full, in
cash, with interest, and the Company will continue to
satisfy its other ongoing obligations.

- All Coal Act arrearages will be paid in full, with
interest.

- The Company will reinstate its Individual Employer Plan
within 60 days of the effective date of a dismissal.

- The Company will pay future 1992 Plan and Combined Fund
payments.

- Obligations to the 1974 Pension Trust will be determined
through arbitration as provided by law.

- The Company will post security to the 1992 Plan as
required under the Coal Act, and in addition, will provide
a $12 million secured contingency note which will be
payable only in the event the Company does not meet its
Coal Act obligations, or fails to meet certain financial
tests.

- The Company will hold a special meeting of shareholders
no later than March 31, 1999.  Shareholders will be invited
to submit nominees for the Board of Directors and proposals
for consideration at that meeting.  (The Company has not
held a meeting of shareholders while in bankruptcy).

- Provided that the pending sale of a certain asset  
occurs, Westmoreland will make a public tender for no less
than 1 million shares of its outstanding preferred stock,
at a price per share to  be  determined  by  the  Equity  
Committee,  for  a  total consideration of $20 million.  
The tender shall occur in the first quarter of 1999, or as
soon thereafter as is practicable, following the date of
the asset sale.

The Company will not initiate litigation to challenge the
Coal Act, and in addition, will not voluntarily seek the
protection of the Bankruptcy Court for the period of 5
years.

The Court gave the parties to the agreement until October  
30, 1998 to decide  whether to implement the agreement  
through a contractual arrangement to be executed upon
dismissal or to file a consensual plan of reorganization.  
If the parties elect to file a plan of reorganization, it
must be filed no later than November 30, 1998.

The Company has sought discharge from the bankruptcy due to  
the continuing success of its business  restructuring  plan  
which commenced in 1992.
  

YAMAICHI SECURITIES: Applies For Voluntary Bankruptcy
-----------------------------------------------------
The Kanto Regional Bureau of the Finance Ministry  
said Wednesday it has ordered Yamakichi Securities Co. to
suspend operations.  The order followed the small
securities company's application to the Tokyo District
Court for voluntary bankruptcy earlier in the day, the
bureau said.  The court ordered Yamakichi to preserve its
assets.  Founded in 1920, Yamakichi has fallen into
financial trouble due to a drop in stock brokerage
commission revenues under Japan's "Big Bang" financial
deregulation.

The Tokyo-based company has sold its membership of the
Tokyo Stock Exchange to ABN Amro Securities (Japan) Ltd.
and received support from Societe Generale Securities
(North Pacific) Ltd. in a bid to improve its operations.  
Yamakichi said it will begin returning assets to customers.
(Kyodo News; 10/21/98)

                *************

The Meetings, Conferences and Seminars column appears in
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conferences@bankrupt.com are encouraged.  

Bond pricing, appearing each Friday, is supplied by DLS
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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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