TCR_Public/981112.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, November 12, 1998, Vol. 2, No. 222

                  Headlines

AHERF: Tenet Completes Acquisition of Hospitals
ACCESS BEYOND TECHNOLOGIES: Committee Taps Counsel
BIG RIVERS: Reaches Agreement With Union
BOSTON CHICKEN: CKE Announces Assumption of Management
CAMPO ELECTRONICS: Campo Prepares For Liquidation

CENTENNIAL COAL: Seeks Order Approving Investments
CRIIMI MAE: Securities Class Action Lawsuit Filed
D&L VENTURE: Seeks Extension of Time For Leases
FPA MEDICAL: Announces Jack S. Greenman New CFO
FRETTER INC: Seeks Order Approving Disclosure Statement

FULLER-AUSTIN: Response To Disqualification of Attorneys
GLOBAL MOTORSPORT: Proposal For $19 Per Share in Cash
HELIONETICS INC: Fourth Amended Disclosure Statement
HOMEOWNERS MORTGAGE: Disclosure Statement Filed
INTERNATIONAL WIRELESS: Committee Objects to Financing

LTCB: Seeks 23 Billion From Former Executives
LA MANCHA: Resort Seeks Bankruptcy Shelter
PERK DEVELOPMENT: Committee Requests Adversary Proceeding
PITTSBURGH PENGUINS: Still Playing in the Arena
RAND ENERGY: Final Hearing on Post-Petition Financing

RAYTECH CORP: Announces Third Quarter Results for 1998          
SCOTT CABLE: Final Okay For Cash Collateral Use
SOUTHERN PACIFIC: Committee Taps Pentalpha Group
SOUTHERN PACIFIC: Tentative Settlement With Wilshire
SYQUEST: Pledges Customer Support
WINTERSILKS: Seeks Sale Date For Sale of Assets

                  *********

AHERF: Tenet Completes Acquisition of Hospitals
-----------------------------------------------
Tenet Healthcare Corp. completed the acquisition of eight
Philadelphia-area hospitals and the Allegheny University of
the Health Sciences from the Allegheny Health,
Education and Research Foundation for $345 million,
according to a newswire report. The 14,000 employees of the
hospitals have been offered continued employment by Tenet,
and its managers have begun overhauling the hospitals,
which are operating under chapter 11 protection. The
university will be renamed MCP Hahneman University of the
Health Sciences. (ABI 11-Nov-98)


ACCESS BEYOND TECHNOLOGIES: Committee Taps Counsel
--------------------------------------------------
The United States Trustee appointed an Official Committee
of Unsecured Creditors for the debtors, Access Beyond
Technologies, Inc., et al.  The Committee consists of
Lucent Technologies, Inc., Wong's Electronic Co. Ltd.,
Virata Corporation, Rockwell International, Hibbing, Inc.
and ILSI America, Inc.  The Committee decided to retain
Long, Aldridge & Norman LLP as lead counsel to the
Committee.

The law firm will provide legal advice with respect to    
the Committee's powers and duties; with respect to any
sale of estate assets and any disclosure statement and
plan.

The firm will prepare necessary motions, applications,
complaints, answers orders, agreements and other legal
papers and will appear in court to present necessary
motions, applications and pleadings and to otherwise
protect the interests of the Committee. The hourly rates
of attorneys involved in the case range from $165 -$375.


BIG RIVERS: Reaches Agreement With Union
----------------------------------------
Big Rivers Electric Corp. and a union that represents the
utility's remaining employees reached agreement this week
on a new four-year labor contract.  The contract, which
takes effect Thursday, will give workers a 3 percent  
raise in each of the next four years.

Big Rivers, which filed for bankruptcy in 1996, in July
turned over operation of its generating plants to Western
Kentucky Energy, a subsidiary of Louisville Gas & Electric
Co. of Louisville.  Big Rivers still has 90,000 customers
in 22 counties served by Henderson-Union, Green River,
Jackson Purchase Energy Corp. and Meade County RECC  
distribution co-ops.

The lease of its power plants to Western Kentucky Energy
reduced the number of Big Rivers union employees from more
than 400 to 28. Remaining Big Rivers union employees are at
its electric power transmission department on Airline Road
in Henderson.

The contract was extended for a year in October 1997 while
Big Rivers and LG&E continued to work out the lease. Big
Rivers and Western Kentucky now have separate agreements
with Local 1701 of the International Brotherhood of  
Electrical Workers.

Other changes in the agreement include improvements in
medical coverage, improvements in the retirement and 401(k)
plans and revisions in work rules that are designed to
improve productivity and flexibility, the company and  
union said in a joint statement.

Big Rivers reaches agreement with union Only 28 workers
left at restructured utility HENDERSON, Ky. -- Big Rivers
Electric Corp. and a union that represents the utility's
remaining employees reached agreement this week on a
new four- year labor contract.

The contract, which takes effect Thursday, will give
workers a 3 percent raise in each of the next four years.
Big Rivers, that filed for bankruptcy in 1996, in July
turned over operation of its generating plants to Western
Kentucky Energy, a subsidiary of Louisville Gas & Electric
Co. of Louisville.

Big Rivers still has 90,000 customers in 22 counties served
by Henderson-Union, Green River, Jackson Purchase Energy
Corp. and Meade County RECC distribution co-ops.

The lease of its power plants to Western Kentucky Energy
reduced the number of Big Rivers union employees from more
than 400 to 28.  Remaining Big Rivers union employees are
at its electric power transmission department on Airline
Road in Henderson.  The contract was extended for a year in
October 1997 while Big Rivers and LG&E continued to work
out the lease. Big Rivers and Western Kentucky now have  
separate agreements with Local 1701 of the International
Brotherhood of Electrical Workers.

Other changes in the agreement include improvements in
medical coverage, improvements in the retirement and 401(k)
plans and revisions in work rules that are designed to
improve productivity and flexibility, the company and  
union said in a joint statement. (Evansville Courier;
10/14/98)


BOSTON CHICKEN: CKE Announces Assumption of Management
------------------------------------------------------
CKE Restaurants, Inc.(NYSE: CKR) announced that it has
signed an agreement with Boston West, L.L.C. to provide
administrative and management services to the Boston Market  
franchises in Southern California operated by Boston West.  
CKE, through its subsidiary Boston Pacific, holds an 11
percent interest in Boston West.

CKE also announced that it has signed a transition services
agreement with Boston Chicken, Inc. (BCI), operator and
franchisor of the Boston Market chain, for BCI to provide
certain accounting and administrative services on an
interim  basis, through the end of the calendar year with
an option to extend to January   31, 1999.  BCI had been
providing Boston West with accounting and administrative
services for the last three and one half years.  BCI and
its Boston Market subsidiaries filed for protection under
Chapter 11 of the Federal Bankruptcy Code on October 5,
1998.

On October 18, Boston West closed 11 of the 98 Boston
Market restaurants it operates.  Additional closures in
selective markets may be required to ensure profitability
of the remaining Boston West system.  Boston West L.L.C.
yesterday filed for chapter 11 protection to restructure
its overall operations, according to a newswire report.

During the third quarter of fiscal 1999, CKE recognized a
non-recurring gain of  $10.3 million relating to the
previously announced sale of its interest in Star Buffet
and an extraordinary gain of approximately $4.5 million
realized on the previously announced repurchase, at a
discount, of $30 million of its convertible subordinated
notes.  Also, a $15 million one-time charge to CKE's  
Boston West investment has been recorded during the third
quarter to reflect the estimated remaining value of the
Boston West business.

"The agreement with Boston West, and the revaluation of
CKE's investment in Boston West will not affect operating
earnings for the third quarter or the fiscal year ending
January 1999," said William P. Foley II, CKE's chairman and
chief executive officer.  "We remain optimistic that CKE
will achieve its previously stated goals relative to the
progress of our Carl's Jr., Hardee's  and Taco Bueno brands
in terms of same-store sales improvement, operating
earnings and earnings per share growth."

CKE Restaurants, Inc., through its subsidiaries and
franchisees, operates 820 Carl's Jr. quick-service
restaurants, including 154 Carl's Jr./Green Burrito  
dual-brand locations, primarily located in California,
Nevada, Oregon, Arizona and Mexico; 2,825 Hardee's quick-
service restaurants in 39 states and 10 foreign countries;
110 Taco Bueno quick-service restaurants in Texas and  
Oklahoma; and 26 Rally's quick-service restaurants in
California and Arizona.   


CAMPO ELECTRONICS: Campo Prepares For Liquidation
-------------------------------------------------
Campo appliance and electronic stores will reopen, but only
to sell off their merchandise and other assets.
U.S. Bankruptcy Judge Thomas Brahney granted Campo
Electronics, Appliances and Computers Inc.'s motion on
Thursday to convert from Chapter 11 bankruptcy, which would
have protected the company from creditors during a
reorganization, to Chapter 7 liquidation proceedings.

"It means stores will be reopening in order to liquidate,"
said Douglas Draper, an attorney for Campo.

A schedule for reopening was not released.

William Babin will be the trustee who will oversee the
liquidation of assets in the future, Draper said.

Campo must honor all employee checks and obligations before
the bankruptcy proceeding as written in the order by
Brahney.  The 47-year-old company founded in New Orleans
once had 31 outlets around the Southeast but had fallen on
hard times.

Eleven stores were closed after the company filed for
bankruptcy protection in 1997. The other 20 closed more
recently, throwing 400 people out
of work.

The company had been pushing a plan to sell seven New
Orleans area stores to GKF Enterprises, a wholly owned
subsidiary of A-1 Home Appliance Center Inc.,  
which operates and owns eight A-1 Appliance stores.

Brahney had been scheduled to consider the deal on Thursday
but no hearing was held. Instead, on the court's docket for
Thursday was a note about the motion for conversion.

Brahney received several bids for various pieces of the
Campo company last week, but refused to go further, saying
he had no way of evaluating the piecemeal deals. (Capitol
City Press Advocate Baton Rouge - 11/06/98)


CENTENNIAL COAL: Seeks Order Approving Investments
--------------------------------------------------
Centennial Coal, Inc. and its affiliated debtors seek
authority and approval of the debtors' investment activity
and maintenance of their disbursement accounts.

The debtors maintain two disbursement accounts with
Bankers Trust Company.  Pursuant to a Commercial Paper
Sweep Agreement, if the closing balances at the end of
each business day are equal to  or exceed an "Investment
Trigger Amount," the funds remaining in the Disbursement
Accounts which exceed a "Peg Amount" are transferred into
an overnight account and invested in Bankers Trust
commercial paper where such funds earn interest at a
variable rate.  Any earned interest is then wired into the
debtors' disbursement accounts on a monthly basis.  The
amount of cash remaining in either of the disbursement
accounts at the end of any given business day is
approximately $1-2 million.  The debtors are seeking a
waiver of the bonding requirements of the code, and
permission to maintain their disbursement accounts  The
debtors refer to the favorable investment ratings issued
by Standard & Poor's and Moody's respectively, for the
Bankers Trust commercial paper.


CRIIMI MAE: Securities Class Action Lawsuit Filed
-------------------------------------------------
Schoengold & Sporn, P.C. announced today that a securities
class action lawsuit was filed in the United  
States District Court for the District of Maryland by a
laborers pension fund against certain key officers and
directors of now bankrupt Criimi Mae, Inc. (NYSE:CMM) on
behalf of all persons who purchased the common stock of CMM
during the period June 30, 1998 through October 5, 1998.

The complaint alleges that Criimi Mae and said officers and
directors violated Sections 10(b) and 20(a) of Securities
Exchange Act of 1934 by issuing false and misleading
statements regarding the Company's business operations,  
financial condition and performance -- principally with
regard to the true value of its commercial mortgage-backed
securities and its ability to meet financial commitments
associated therewith.


D&L VENTURE: Seeks Extension of Time For Leases
-----------------------------------------------
D&L Venture Corp. and its affiliated debtors are seeking
approval of the Stipulation among the debtors and four
landlords to extend the time to assume or reject certain
leases.

The debtors need additional time to determine whether the
leases are necessary for an effective reorganization and
the landlords need some certainty during the upcoming
holiday season.

The parties agree that the time that the debtors have to
assume or reject the leases is extended until March 1,
1999.

The debtors will pay postpetition rent and charges under
the leases through January 31, 1999.  The debtors must
operate the stores until December 26, 1998 and the debtors
shall not reject the leases through January 31, 1999.


FPA MEDICAL: Announces Jack S. Greenman New CFO
-----------------------------------------------
FPA Medical Management, Inc. (OTC Bulletin  
Board: FPAMQ), a major national physician practice
management organization, today announced that its Board of
Directors has elected Jack S. Greenman as Chief Financial
Officer.

Mr. Greenman has been with FPA since October 1996, upon
FPA's acquisition of Sterling Healthcare Group, Inc., of
which he was Senior Vice President - Finance and Chief
Financial Officer, and for which he had previously served
as Controller.  Mr. Greenman was elected Executive Vice
President of FPA in May 1998.

As Chief Financial Officer, Mr. Greenman succeeds Thomas J.
Allison, a partner of Arthur Andersen LLP's Corporate
Recovery Services Practice, who was appointed interim Chief
Financial Officer effective July 1, 1998.  Arthur  
Andersen remains financial advisor to the Company.

Dr. Stephen J. Dresnick, Chairman and Chief Executive
Officer said FPA Medical Management continues to move
forward in its restructuring activities.  The Company filed
its Disclosure Statement and Plan of Reorganization with
the Bankruptcy Court in Wilmington, Delaware on September
30, 1998.   Earlier this month, encouraged by the continued  
cooperation of the Bank Steering Committee and the
Creditors Committee, the  Company asked for and received
Court approval of a revised hearing schedule to  help
facilitate a fully consensual plan of reorganization.
Under the new schedule, the hearing regarding the adequacy
of the Disclosure Statement is scheduled for December 9,
1998 and the hearing for confirmation of the Company's
reorganization plan has been set for January 21, 1999.

"We remain cautiously optimistic that by working with our
Bank Group and Creditors Committee we will be able to agree
on a consensual plan of reorganization that will allow for
FPA's anticipated emergence from Chapter 11 in early 1999,"
Dr. Dresnick said.

FPA Medical Management, Inc. and various of its affiliates
and subsidiaries filed petitions under Chapter 11 in the
U.S. Bankruptcy Court for the District  of Delaware in
Wilmington on July 19, 1998 and various dates thereafter
through  August 7, 1998.

FPA Medical Management, Inc. is a national physician
practice management organization that organizes and manages
primary care physician networks to contract with HMOs and
other prepaid insurance plans to provide physician and  
related health care services and provides contract
management support services  to hospital emergency
departments.


FRETTER INC: Seeks Order Approving Disclosure Statement
-------------------------------------------------------
The debtors, Fretter Inc., et al., seek an order
approving the Disclosure Statement and establishing the
procedures for solicitation and tabulation of votes to
accept or reject the First Amended Joint Liquidating Plan
of Fretter, Inc. and its subsidiary debtors.  The hearing
is scheduled to be held on December 15, 1998.  Objections
to the motion must be received by December 4, 1998.


FULLER-AUSTIN: Response To Disqualification of Attorneys
--------------------------------------------------------
Fuller-Austin Insulation Company, debtor, files a response
to the motion o f Highlands Insurance Company to
disqualify the law firm of Young Conaway Stargatt & Taylor
LLP as debtor's counsel.

The debtor states that this case does not directly affect
highlands.  Because it does not directly affect Highlands,
Young Conaway's representation of the debtor cannot be
directly adverse to Highlands, and therefore cannot be
disqualified.

Highlands argues "that the debtors seeks to illegally and
improperly abrogate certain provisions of Highland's
contracts of insurance in the debtor's plan."  The debtors
state that the allegation is false.  The debtor states
that the plan cannot alter the terms, obligations or
rights of the parties to the Asbestos Insurance Policies.  
The debtor has sought assumption of all of the Asbestos
Insurance Policies.  Because the debtor cannot use the
plan confirmation process to effect the rights of
Highlands under the contracts between the parties, the
direct adversity required to establish a conflict of
interest cannot be established.


GLOBAL MOTORSPORT: Proposal For $19 Per Share in Cash
-----------------------------------------------------
November 6, 1998 -- Golden Cycle, LLC announced that it
delivered a written consent to Global Motorsport Group,
Inc. (NASDAQ: CSTM) in connection with its consent
solicitation.  Golden Cycle believes that the delivery of
the consent to the company will establish Friday, November
6,1998 as the record date for holders of Global Motorsport
common stock entitled to vote on its proposals to, among
other things ,remove the current Board of Directors of the
company and elect Golden Cycle's nominees to the Board.  
Golden Cycle's nominees intend to facilitate a proposal
which provides shareholders of Global with $19 per share in
cash for substantially all of their shares.  Global
Motorsport purports to have set November 10 as the record
date for the solicitation.  Golden Cycle believes that
the date set by Global Motorsport is not valid under
Delaware law since it is more than ten days after the date
on which Global's board purports to have adopted a
resolution fixing a record date.

Golden Cycle has retained Jefferies & Company, Inc.
to act as its financial advisor in connection with Golden
Cycle's offer to acquire Global and the Consent
Solicitation, for which Jefferies & Company will receive
customary fees, as well as reimbursement of reasonable out-
of-pocket expenses.  In addition, Golden Cycle has agreed
to indemnify Jefferies & Company and certain related
persons against certain liabilities, including certain
liabilities under the federal securities laws, arising out
of their engagement.


HELIONETICS INC: Fourth Amended Disclosure Statement
----------------------------------------------------
Helionetics Inc. as filed a Disclosure statement with the
Bankruptcy Court for the Central District of California.  
A plan confirmation hearing is set for November 24, 1998.

The plan will be funded by approximately $6.681 million in
proceeds remaining from the sale of the debtors' LPI stock
and the sale of the debtors $2.972 million secured claim
against AccuLase.

The allowed administrative claims of Tri-Lite, Inc.
($914,347) together with professional fees ($603,978) and
certain miscellaneous expenses have been paid from the
Estate Funds.  After Paying all remaining professional and
administrative claims, an amount to Tri-Lite pursuant to
and agreement and payment of priority tax claims and Class
4 and 5 priority claims, the remaining amount of cash on
hand, approximately $5.7 million will be distributed based
upon the relative amount of allowed unsecured claims in
each case.  The remaining allowed unsecured claims have
been fixed at $3.708 million which amount represents 70%
of the total allowed unsecured claims.


HOMEOWNERS MORTGAGE: Disclosure Statement Filed
-----------------------------------------------
Notice is given that the Disclosure Statement with respect
to the plan of reorganization by debtor HomeOwners
Mortgage & Equity, Inc. is filed and a hearing will be
held on January 4, 1999 in Austin Courtroom #1, Homer
Thornberry judicial Bldg., 903 San Jacinto, Austin, Texas
78701.


INTERNATIONAL WIRELESS: Committee Objects to Financing
------------------------------------------------------
The informal committee of minority shareholders in the
case of International Wireless Communications Holdings,
Inc. and its affiliates, debtors, is objecting to the
debtors' motion to obtain post-petition financing.

The shareholders claim that the myriad of relationships
between the debtors and Vanguard provide reason to believe
that Vanguard dominates and controls these cases.  The
shareholders complain that the $4.6 million loan promised
by Vanguard is merely a surrender of control over the
debtors' assets and properties to an "insider" in a series
of related transactions that do not and cannot meet the
standards of the Bankruptcy Code.  The shareholders state
that the relationship between Vanguard and the debtors is
rife with conflicts of interest and that Vanguard has been
continuously involved in running every aspect of the
debtor's business.  They go on to say that there is no
evidence to support the DIP loan as being in the best
interest of the debtors' estates, or that it is the best
or only funding source for the debtors.  They complete
their objection by stating that the DIP loan is not an
instrument of good faith but instead constitutes an
irreversible, improper and prejudicial transfer of assets.


LTCB: Seeks 23 Billion From Former Executives
---------------------------------------------
The Long-Term Credit Bank of Japan (LTCB) will ask 23
of its former executives to pay back a total of 3 billion
yen in retirement allowances, LTCB officials said
Wednesday.

LTCB will make the request by the end of this month as all
the executives have yet to return their retirement
allowances despite being urged to do so under a  
restructuring program adopted in late August, they said.

The executives include Binsuke Sugiura, a former president,
who received 930 million yen in retirement allowances in
fiscal 1992 and has expressed his intention to return the
money, they said.

At a Diet hearing in September, then LTCB President
Katsunobu Onogi said he had received pledges to return the
retirement allowances from several former top managers of
the bank.  The officials said the former executives will
probably be requested to return the amount of retirement
allowances left after taxes.

Some of the 23 have said they would return their retirement
allowances only if they were sure all the executives were
doing so, the officials said.  LTCB wants the executives to
at least fix a date for giving back the allowances  even if
they cannot return the money by the end of this month
because a further  delay could rekindle public criticism,
they said.

LTCB was put under state control Oct. 23 under the
financial reconstruction law that allows the government to
nationalize failed or financially troubled banks to avert
defaults on their obligations to creditors.
(Kyodo News - 11/11/98)


LA MANCHA: Resort Seeks Bankruptcy Shelter
------------------------------------------
A Palm Springs resort is seeking shelter in bankruptcy
court while it tries to change its loan payment schedule to
something more conducive to its expansion plans.
Both the firms that comprise Ken Irwin's La Mancha Resort
Village - the Web site for which boasts of a luxurious
setting, movie star customers and a reputation for guest
privacy - filed for Chapter 11 voluntary bankruptcy  
protection Oct. 27 at U.S. Bankruptcy Court in Riverside.

The two firms, Professional Real Estate Investors Inc. and
La Mancha Sur LLP, essentially operate as a single entity
under Ken Irwin, president of Professional Real Estate and
general partner of La Mancha Sur.

Irwin said the firms filed for Chapter 11 bankruptcy
because they couldn't get lender Citizens Business Bank to
agree to a plan that would have extended  $5.3 million in
loans while the resort tackled a three-year expansion.
La Mancha Sur operates 15 condominiums at the resort, while
its sister company developed, owns and operates the hotel
rooms, spas, pools, putting range, restaurant, tennis
courts and banquet facilities that make up the rest  
of the 20-acre complex.

The companies have been working with Citizens Business Bank
for 18 years, and hadn't expected any trouble seeking a
loan extension, Irwin said. "They always had (cooperated)
in the past. We probably have one of their best payment  
records," he said. Citizens attorney Steve Bergh said he
wasn't aware of the reasons behind the resort's bankruptcy.
The bankruptcy proceedings will give La Mancha Resort
Village a chance to renegotiate with Citizens, sell some
property or refinance the loans, Irwin said. The companies
were current in loan payments up to Nov. 7, he
added.

Three days after seeking Chapter 11 protection, the twin
companies filed an emergency motion to use revenue from
operations to pay expenses. In court documents, the resort
claimed it had no other sources of money and that without  
use of the funds, it would have to close. Judge Meredith
Jury granted La Mancha's request until Nov. 19, when the  
resort will have to revisit the issue with four of its top
creditors, according to court documents.

Those four creditors, besides Citizens Business Bank, are
Coast Federal Bank, Foothill Independent Bank and the Los
Angeles Rams (not the team, but the business entity once
associated with it).  Those creditors have loaned the
resort a total of $6.9 million with the resort as
collateral.

Since the creditors can claim rights to the collateral,
they might also be able to claim rights to the revenue, or
"cash collateral," it generates - an issue yet to be sorted
out. In the meantime, because of the possible claim
on  its revenue, the resort had to get court permission to
use the funds for expenses.

In its court filings, the resort stressed that just because
it asked to use the cash collateral didn't mean it was
agreeing that the creditors have a claim to those funds.
The resort also argued that the creditors' interests are
still  well-protected, since the value of the resort
property is about $14 million and  the liens on the
property total roughly $6.2 million.

At this point, Citizens Business Bank and the resort aren't
fighting over the revenue, said the bank's attorney, Bergh.
But the bank isn't waiving any potential claims either, he
added.  "We're working on a consensual agreement (with the
resort) to use the cash collateral," Bergh said.

According to the bankruptcy filings, the resort had
estimated revenue of $1.08 million for the six months ended
Oct. 31, compared with $903,060 for the same period a year
before.

The resort, which employs 60 and opened in 1976, is located
in Palm Springs, not far from the Palm Springs Regional
Airport on Avenida Caballeros. It boasts of such celebrity
guests as John Travolta, Leslie Ann Warren, Mickey
Rooney,  Elizabeth Taylor and Carol Burnett.


PERK DEVELOPMENT: Committee Requests Adversary Proceeding
---------------------------------------------------------
At the outset of the case of Perk Development Corporation,
and its affiliated debtors, FFCA Acquisition Corporation  
appeared to be the lessor of approximately 22 parcels of
commercial real property pursuant to leases subject to
assumption or rejection.  The "leases" arose out of sale
and leaseback financing arrangements.  The Committee
submits that the "leases" are not true leases, but that
FFCA is a secured creditor to the extent of its interest
in the realty.  The Committee seeks entry of an order
authorizing the Committee to commence an adversary
proceeding, in the name of the debtors, seeking a
declaratory judgment as to the validity, priority or
extent of an interest of FFCA, Perk and Brambury in the
purported leases and underlying property.

The Committee asserts that FFCA is not a lessor, but
rather, the holder of an equitable mortgage.  Several
factors in the cases sub judice establish that FFCA's
purported leases are a secured financing scheme
intentionally disguised as true leases.  A failure to
commence such an action will prejudice the rights of the
debtors' unsecured creditors.  The Committee believes that
FFCA is an undersecured creditor with a substantial
unsecured claim.  The Committee argues that the
reclassification of FFCA's claim to its proper form will
benefit the estate, including the general unsecured
creditors.


PITTSBURGH PENGUINS: Still Playing in the Arena
-----------------------------------------------
The City Council put off plans this week to bar the
Pittsburgh Penguins from the Civic Arena, following the
team's payment of $52,000 to the city for amusement taxes
it collected last month, according to The Pittsburgh Post-
Gazette. The amusement tax the team paid the city covered
taxes collected after it filed for chapter 11 protection on
Oct. 13 through the end of the month. This was only the
second payment to the city this year of amusement taxes.
The team also announced that it has found a possible lender
for the financing its needs to operate for the remainder of
the hockey season. Bankruptcy attorney Robert G. Sable said
the team applied for a $20 million loan to Societe
Generale, a French bank that has an office in New York. A
hearing is scheduled for Friday before Judge Bernard
Markovitz to discuss the details of the financing. (ABI 11-
Nov-98)


RAND ENERGY: Final Hearing on Post-Petition Financing
-----------------------------------------------------
Rand Energy Company, debtor seeks authority to obtain
post-petition creditor from Bank One, Texas, NA in the
maximum principal amount of $3.8 million in order to
finance certain drilling costs and the completion of
certain wells.

A final hearing on the motion to approve post-petition
secured financing and granting senior liens and
superpriority administrative claims will be held on
November 30, 1998 at 3:00 p.m. before the Honorable Mary
F. Walrath.  


RAYTECH CORP: Announces Third Quarter Results for 1998          
------------------------------------------------------
Raytech Corporation (NYSE:RAY) announced continued strong
performance in the third quarter with net income of $3.1
million or $.90 per basic share, compared with $3.7 million
or $1.14 per basic share, for the same quarter last year.

Nine-month net income was $13.2 million, or $3.90 per basic
share, compared with $13.1 million, or $4.03 per basic
share for the same nine-month period in the prior year.
Revenue growth, driven by strong demand for Company
products led to the strong performance. Third quarter
profits reflected positive contributions from the original
equipment market, the aftermarket and the European dry
clutch market.

Worldwide net sales and revenues rose 9.3% for the quarter,
to $61.5 million, and 6.8% for nine months, to $188.0
million, compared with $56.3 million and $176.1 million,
respectively, last year.

Domestic automotive original equipment sales account for
substantially all of the increased sales reflecting an
increase of $10.0 million for the nine-month  
period over the prior year. Domestic aftermarket sales
reflect a $1.0 million increase for the nine-month period
as compared with the same period in the prior year. Due to
an adverse foreign exchange translation impact, overseas  
sales were slightly lower in dollar terms for both the
quarter and year-to-date.

The Company has been under the protection of the U.S.
Bankruptcy Court relating to asbestos personal injury and
environmental liabilities since March 1989. The ultimate
liability of the Company with respect to asbestos-related,  
environmental or other claims cannot presently be
determined.

Raytech Corporation is headquartered in Shelton,
Connecticut, with operations serving world markets for
energy absorption and power transmission products, as
well as custom-engineered components.


SCOTT CABLE: Final Okay For Cash Collateral Use
-----------------------------------------------
Scott Cable Communications Inc. won final authorization to
use the cash collateral of prepetition lenders Finova
Capital Corp. and State Street Bank & Trust Co. The U.S.
Bankruptcy Court in Bridgeport, Conn., authorized the
operator of cable television systems to use cash collateral
through Dec. 31 in accordance with an agreed on budget and
to satisfy its obligations under the asset purchase
agreement with Interlink Communications Partners LLLP. The
lenders consented and stipulated to the final order.
Calling the company's ability to support its operations
pending confirmation of its prepackaged liquidating plan
and sale of assets to Interlink "vital," the court
noted that Scott Cable has no source of cash that is not
cash collateral. The court added that the company needs
cash to meet payrolls, make business purchases, and to
cover other expenses to preserve its assets and continue
operating pending the sale. (The Daily Bankruptcy Review
Copyright c November 11, 1998)


SOUTHERN PACIFIC: Committee Taps Pentalpha Group
------------------------------------------------
The Creditors' Committee of Southern Pacific Funding
Corporation, debtor, seeks approval of the appointment of
Pentalpha Group LLC, an investment banking firm.  There
are two immediate issues that the Committee requires
expert advice:

a. Wilshire Real Estate Partnership, LLP filed a motion
for relief from the automatic stay seeking the immediate
liquidation of financial instruments with a face value in
excess of $180 million. Wilshire possesses a claim of less
than $40 million.

b. The debtor has filed a motion seeking to repurchase
mortgage loans from First Union National Bank in the total
aggregate principal amount of approximately $295 million
and simultaneously sell the loans to two other entities.

Pentalpha Group's business in real estate securitization
includes both commercial and residential components and
the consulting firm has experience in valuing the assets
of businesses like the debtor's.

The consultant's professional fee will be $45,000 per
month.


SOUTHERN PACIFIC: Tentative Settlement With Wilshire
----------------------------------------------------
Southern Pacific Funding Corp. and lender Wilshire
Financial Services Group reached a tentative agreement
Monday that would delay further discussions until Nov. 20,
or possibly, permanently, The Oregonian reported. The issue
is the nature and value of security given to Wilshire in
return for a $40 million loan granted to Southern Pacific
in the few days before it filed for bankruptcy on Oct. 1.
Wilshire claims that it bought and owns residual interest
certificates on Southern Pacific mortgages that could
generate $80 million of revenue. The company, however,
claims that the certificates were offered as security for
the loan and that it should receive any proceeds beyond the
$40 million debt to Wilshire. The details of the deal have
not yet been disclosed, but attorneys for the parties told
Hon. Elizabeth L. Perris that the settlement would end
adversarial proceedings. They went to court on Monday to
present evidence on the value of the certificates and
whether Southern Pacific should continue collecting
payments on the underlying mortgages. Wilshire had argued
earlier that its staff would do a better job of collecting
payments on those mortgages. On Monday, Wilshire ceded that
point until at least Nov. 20. (ABI 11-11-98)


SYQUEST: Pledges Customer Support
---------------------------------
Troubled storage maker SyQuest Technology has suspended
operations after filing for reorganisation under United
States bankruptcy laws last week.  The company, which
requested that its stock halt trading on the US Nasdaq  
market, said it planned to "maintain limited support to its
customers", without elaborating.

SyQuest's portable storage devices competed fiercely with
Iomega's, and resulting price wars have hurt the profits of
both companies.   Iomega's customer base is about 10 times
that of SyQuest's, according to an analyst estimate.
customers overloading its server.

SyQuest has been suffering from a credit crunch, as one of
its lenders recently cut its credit line from US$30 million
to $10 million after the company failed to meet lending
requirements.

According to SEC filings, Syquest also failed to secure a  
$13 million loan from its investors which had requested
that SyQuest secure an additional funding source.
SyQuest in August laid off 950 employees, accounting for
half its workforce, as part of a restructuring plan shortly
before posting a third-quarter loss of  $42.5 million,
compared with a loss of $10.7 million in the year-ago
period.  However, revenue rose 41 per cent to $44.7 million
for the three-month period.

SyQuest in July appointed investment firm CIBC Oppenheimer
to help investigate strategic alternatives, such as
partnerships for manufacturing, joint ventures, or
acquisitions. South China Morning Post-11/10/98


WINTERSILKS: Seeks Sale Date For Sale of Assets
-----------------------------------------------
The debtor, WinterSilks, Inc. withdrew its motion for a
date for the sale of assets of the debtor.  WinterSilks'
management previously determined that a sale of the assets
of the debtor was clearly the best strategy for maximizing
creditor value, and that such a sale would be in the best
interests of the creditors of Winter Silks.  The debtor
negotiated an asset purchase agreement with WS Acquisition
LLC, a limited liability company subsidiary of GWI (Graham
Webb International Limited Partnership).  The purchase
price was the amount of GW pre-petition indebtedness
(approximately $4.20 million) plus GWI post-petition
indebtedness (expected $3.7 million) plus $267,000.  

However, the day before the sale motion was to be heard,
the debtor withdrew the motion and stated that the debtor
intends to file a plan of reorganization and disclosure
statement rather than conduct a sale of assets.

                 ***********

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Troubled Company Reporter is a daily newsletter, co-
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