TCR_Public/981120.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
  Friday, November 20, 1998, Vol. 2, No. 228

AHERF: William P. Snyder Steps Down As Chairman
AOKI CORP: TSE Resumes Trading in Aoki Corp. Shares
BRADLEES: Receives Approval to Emerge From Chapter 11
CASCO: Plastics Maker Files Chapter 11
CELLPRO: A Biotech Disaster

CRIIMI MAE: Class Action Commenced
CRIIMI MAE: Reports Third Quarter Results
HANBO STEEL: USA May Bring Charges To WTO against Hanbo
HEARTLAND WIRELESS: Accused Of Inflating Stock Value

HILLS STORES: Reports Third Quarter Net Loss of $95.2 M
JUICE STOP: Files Chapter 11 and Hires New Management
KIA MOTORS: Hyundai reports $602M undeclared debt                      
LEVITZ FURNITURE: Exclusivity Extended 90 Days To March 1
LEVITZ: Top Exec Goes To Kmart

LIVENT INC: Files For Bankruptcy, Fires Drabinsky
LONG TERM CREDIT: Probes Loan Decisions By Former Execs
MERCURY FINANCE: Harshfield Appointed As Consultant
MONTGOMERY WARD: Hires Wasserstein For Help With Plan
PHOTRAN CORP: Loss Includes Asset Impairment Charge

SCOTT CABLE: $165 Million Sale To InterLink Wins Nod
WHEELED ELECTRIC POWER: Case Summary & 20 Largest Creditors

DLS CAPITAL PARTNERS: Bond Pricing For Week of November 16


AHERF: William P. Snyder Steps Down As Chairman
William P. Snyder III, whose family has been associated
with Allegheny General Hospital since close to its founding
a century ago, has stepped down as chairman of its bankrupt
parent foundation's board of trustees.  Snyder is now
listed as a trustee emeritus of AGH and has no standing on
the board of its parent, the Allegheny Health Education and
Research Foundation. As trustee emeritus at AGH, he has no
power to vote.

AHERF spokesman Tom Chakurda said that Snyder, 80, had
decided to retire from his post. Anthony Sanzo, who was
named president and chief executive officer of the
foundation in a management shakeup in June, has been
appointed chairman. Mellon Bank Chairman Frank Cahouet
remains chairman of AGH's board.

Snyder, retired top executive of a family manufacturing
firm, had served as chairman of Allegheny' s parent
organization since the late 1980s, Chakurda said. He had
been on the hospital board for many years prior to then.

He and his family had been among the health system's key
benefactors, donating substantially to the construction of
AGH's main inpatient facility,  which is known as the
Snyder Pavilion.  Snyder was known as a staunch supporter
of AHERF's former chief executive, Sherif Abdelhak, and of
Abdelhak's ambitions to turn AHERF into an academic medical
center through an aggressive acquisition campaign in
Philadelphia. Abdelhak was ousted from his post in June as
the foundation's finances were collapsing.

How the once-prosperous health care institution's finances
were drained and how the expansion went awry are questions
very much looming over the $1.5 billion bankruptcy case.
Numerous investigations, including a criminal probe  
launched by the U.S. attorney will attempt to provide some
answers. One question on many minds is how much board
members knew of AHERF's activities.

One of Snyder's few public acts as representative of a
board that guarded its privacy was to condemn huge payouts
of deferred compensation to six top executives just months
before the bankruptcy. At the time, however, Snyder  
served on the compensation committee that should have
approved those payouts.

The board that Snyder headed at one time boasted a long
roster of high profile executives and civic leaders. As
recently as mid-1997, Teresa Heinz, widow of the late
senator, and Chryss O' Reilly, wife of H.J. Heinz Co.'s  
former chief executive, were among them.

As recently as last year, the AHERF board had 25 members,
according to financial statements filed with the Internal
Revenue Service. The number was reduced to 18 in March,
according to a list provided by the foundation.  
According to a list provided yesterday, it has since been
reduced to 11. The AGH board has 20 members. (Pittsburgh
Post Gazette-11/18/98)

AOKI CORP: TSE Resumes Trading in Aoki Corp. Shares
The Kyodo News reports on November 18, 1998 that The Tokyo
Stock Exchange (TSE) first said it would suspend trading in
the shares of Aoki Corp. until the exchange checked a  
newspaper report about a restructuring plan for the
financially troubled construction company. The Tokyo Stock
Exchange (TSE) said Thursday morning it would resume
trading in the shares of Aoki Corp. at 12:30 p.m.,
following the announcement of a restructuring plan.

The Nihon Keizai Shimbun reported that Asahi Bank and the
Industrial Bank of Japan, two major creditor banks of Aoki,
will forgive a combined 155.7 billion yen in loans to Aoki.

Aoki is also asking about 30 other creditor institutions,
including Sanwa Bank and the Bank of Tokyo-Mitsubishi, to
forgive a combined 45.2 billion yen in loans, the paper

BRADLEES: Receives Approval to Emerge From Chapter 11
Following a vote of Bradlees creditors, the Bankruptcy
Court today confirmed Bradlees Plan of Reorganization  
allowing the Company to emerge from Chapter 11 proceedings.
The Company plans to exit bankruptcy at its fiscal year
end, January 30, 1999.

The confirmed Plan provides for approximately $165 million
in distributions to creditors inclusive of $16 million of
administrative claims payments, $7 million in tax and cure
notes, $3 million in other distributions, a $14 million
cash payment to creditors, a $40 million note primarily
payable to the Company's pre-Chapter 11 bank group, and new
Bradlees Common Stock with an estimated value of $85
million. As previously reported, all existing stock will
be canceled upon the Company's emergence from bankruptcy
with no issuance of  new stock to current shareholders.

A second lien on the Company's inventory will be granted to
those vendors who support Bradlees after emergence, with
standard terms. Additionally, all potential preference
actions against Bradlees vendors will be waived.

Peter Thorner, Chairman and CEO stated, "We are delighted
with the operational and financial progress we have
achieved over the past two years. We look  
forward to being able to devote our full-time and energies
to rebuilding Bradlees into the discount department store
of choice as we leave the administrative burdens of Chapter
11 behind us. We have obtained a firm commitment from
BankBoston N.A., as agent for our bank group, for $270
million of exit financing and eagerly look forward to
expanding and improving on our already successful
merchandising and marketing strategies begun in 1997. We  
appreciate the continued support and encouragement of our
vendors as we enter the holiday selling season."  Bradlees,
with 103 stores in seven states along the Northeast
corridor, is one of the nation's largest regional discount  
department store chains with total annual sales of $1.4

CASKO: Plastics Maker Files Chapter 11
Casco Molded Plastics, Wichita, Kan., has filed for chapter
11 protection, just two months after its subsidiary, Casco
Plastics Inc., filed chapter 11, according to The Wichita
Eagle. The 19-year-old company manufactures injection-
molded plastic products, such as tackle boxes for
Rubbermaid and parts for Coleman Co. stoves, Eureka vacuum
cleaners and Vornado fans. A $6.5 million bank note became
due June 30, and Casco could not get a loan quickly enough
to pay it. Casco listed assets of $15.9 million and
liabilities of $23.6 million. (ABI 19-Nov-98)

CELLPRO: A Biotech Disaster
The Seattle Post-Intelligencer reports on November 12, 1998
that despite the euphoria over the company's development of
a device to improve bone marrow transplants, and promising
sales in Europe, there were hints of trouble on the
business side for CellPro almost from the beginning.
The technology CellPro had licensed from Fred Hutchinson
Cancer Research Center had two components. One piece - a
cell separating device - was patented. The other piece - a
stem cell antibody used with the device - was not.
It was a technicality that would throw CellPro and Baxter
Healthcare Corp. into mortal conflict.  

Unlike CellPro, Baxter had a license for a stem cell
antibody. The antibody had been patented by Johns Hopkins
University and later licensed to Becton Dickinson, which in
turn sublicensed it to Baxter. A year after CellPro was
formed, Baxter moved into the stem cell separation  
market and started developing a device of its own, called
the Isolex system.  CellPro's investor literature predicted
$600 million in sales within five years.  On Jan. 13, 1992,
Baxter surprised CellPro by offering CellPro a license to
use the disputed antibody in exchange for an upfront fee
and royalty. There was no mention of marketing rights.

Baxter "was using the U.S. patent to blackmail us into
giving them the European and U.S. distribution rights,"
said Chad Waite, a venture capitalist and CellPro board
member from the beginning.  CellPro turned to Tom Kiley, a
founding board member and patent attorney, for guidance.
Kiley, an expert in biotech patents, was convinced that
Baxter's patents wouldn't hold up in court. Anticipating
that Baxter would sue CellPro, he advised CellPro to sue
Baxter and Becton Dickinson in a pre-emptive strike. It  
was a gutsy move in what one participant would later call
the battle of "David and Three Goliaths."

In April 1992, CellPro sued Baxter and Becton Dickinson in
U.S. District Court in Seattle, claiming that Baxter's
patents were invalid. It also charged Baxter and Becton
Dickinson with antitrust violations. Baxter disagreed,
saying CellPro had come to it looking for an overseas  
marketing partner, and it was only trying to make a deal.
CellPro's case was dismissed, however, partly because it
didn't name Johns Hopkins in the suit. With the lawsuit
dismissed, the parties tried again to negotiate a  
settlement. But in November 1993, Baxter, Becton Dickinson
and Johns Hopkins sued CellPro in U.S. District Court in

In August 1995, an elated CellPro won the first patent
trial, prevailing on all 103 counts. Not only did the jury
find the Baxter patents invalid, it also said CellPro had
not infringed on them, even if they had been valid.
In its annual report that year, a jubilant CellPro said the
company "will vigorously pursue antitrust claims after
post-trial motions."  But the celebration was short-lived.
In an unusual move, U.S. District Judge Roderick McKelvie
rejected the verdict.  In July 1996, after nearly a year of
petitioning of post-trial motions by Baxter and its co-
plaintiffs, McKelvie said he had made an error in his jury
instructions. He ordered a new trial. It was a gamble
CellPro lost.

In March 1997, the second jury awarded damages of $2.3
million to Baxter and the other plaintiffs, an award that
the judge trebled to $7 million for "willful infringement."
Judge McKelvie wrote: "One element of the strategy CellPro
has adopted in this battle has been to hold itself out as a
warrior in a 20th-century holy crusade. It claims it is out
to advance science, to save lives, to fight cancer
and improve the human condition. . . .This image is a
facade constructed by the venture capitalists who started  
this business. Behind the science, the medicine and the
potential for treating cancer patients are investors who
have demonstrated that their primary motivation is not
humanitarianism, nor even responsible capitalism . . .
(but) greed."

The court ruled that CellPro knew it had infringed on the
patents but had obtained a legal opinion it knew was weak
to avoid liability and help ensure that investors would
keep pouring money into the company.  "That's just not how
it happened," Waite said. "We never put a dime into the
company until we were satisfied about those patents."
According to the ruling, CellPro had violated the patents.
In July 1997, the court ordered CellPro to stop selling its
product once Baxter obtains Food and Drug Administration
approval for Isolex, its competing device. In the interim,
it ordered CellPro to pay 60 percent of its profits on any
sales to Baxter. Isolex awaits FDA approval.

Unable to tap the capital markets in the uneasy subprime
home equity sector, Cityscape Financial has decided to
suspend indefinitely the origination and purchase of its
"Sav-A-Loan" mortgage products and expects more layoffs.  
"Based on the Company's discussions with potential lenders
regarding post-reorganization warehouse financing
facilities, the Company has determined that it is unlikely
that such financing will be provided for its Sav*-A-Loan(R)
products," the subprime lender told the Securities and
Exchange Commission.  Cityscape reports that a charge of
about $8 million to $10 million is anticipated. (Federal
Filings Inc. 19-Nov-98)

CRIIMI MAE: Class Action Commenced
A class action has been commenced by the law firm Beatie
and Osborn LLP in the United States District Court for the
District of Maryland on behalf of all persons who purchased
the common stock of Criimi Mae Inc. (Nasdaq: CMM) from
February 20, 1998 to October 5, 1998, inclusive.

Specifically, the Complaint alleges that during the Class
Period, defendants issued several false and misleading
statements regarding the Company's financial condition. As
a result, the price of Criimi Mae's common stock remain
artificially inflated during the Class Period.

CRIIMI MAE: Reports Third Quarter Results
CRIIMI MAE Inc., the commercial mortgage company that filed
to reorganize under Chapter 11 of the U.S. Bankruptcy Code
on October 5, today reported third quarter results,  
including higher tax basis earnings, a higher net interest
margin and a net  loss under generally accepted accounting
principles (GAAP).  The net loss was largely due to the
impact of the recent volatility in the financial
markets on  commitments related to commercial mortgage
loans in the company's securitization pipeline and losses
on hedge positions.  As a result of the recent volatility
in the capital markets and the uncertainties resulting from  
the bankruptcy proceedings, the company's results of
operations at September  30, 1998, are not expected to be
indicative of results of operations for future  periods
during the pendency of the bankruptcy proceedings.

As a result of widening commercial mortgage-backed
securities (CMBS) spreads and the general market turmoil
during the third quarter, the value of CRIIMI  
MAE's subordinated CMBS declined.  Principally due to the
decline in value of the CMBS held by the company, CRIIMI
MAE's shareholders' equity declined from approximately $702
million ($13.01 per fully diluted share) at June 30, 1998,  
to approximately $494 million ($8.97 per fully diluted
share) at September 30, 1998.  The company's estimates of
value for its CMBS are based, in most cases, upon quotes
obtained from the lender on the related security.

As a consequence of the Chapter 11 filing, the company does
not expect to pay a dividend during the fourth quarter of
1998.  The company is not required to pay a dividend during
the fourth quarter to maintain its REIT status.
However, in order to maintain its status as a REIT, CRIIMI
MAE must distribute 95% of its 1998 taxable income no later
than December 31, 1999.  Failure to satisfy this  
requirement could result in the loss of the company's REIT
status, with the  result that CRIIMI MAE would be taxed as
a corporation for 1998.  The company intends to use its
best efforts to ensure that CRIIMI MAE retains its REIT  
status for 1998, but there can be no assurance that its
efforts will succeed.

Tax basis earnings available to common shareholders for the
third quarter were $19.9 million or 41 cents per common
share, up 32 percent on a per share basis from last year's
third quarter of $12.1 million or 31 cents per common
share.  For the nine months ended September 30, 1998, tax
basis earnings available to common shareholders were $57.3
million or $1.22 per common share compared to $39.8 million
or $1.09 per common share for the nine months ended
September 30, 1997.

Under GAAP, CRIIMI MAE's net interest margin increased to
$18.7 million, up 41 percent from $13.2 million for last
year's third quarter.  The net interest margin increased to
$51.3 million year to date from approximately $37.1 million
for the first nine months of 1997.  Net interest margin is
calculated as interest income less interest expense.

CRIIMI MAE reported a net loss under GAAP for the quarter
ended September 30, 1998 of $8.7 million or 18 cents per
basic share as compared to net income of $10.0 million or
26 cents per basic share for the year earlier quarter.  
GAAP net income for the nine months ended September 30,
1998 was $47.0 million or $1.02 per basic share compared to
net income of $36.1 million or $1.00 per basic share for
the corresponding period in 1997.

The increases in tax basis earnings and the net interest
margin for the three and nine months ended September 30,
1998 were primarily due to growth in earnings from CRIIMI
MAE's portfolio of subordinated CMBS and earnings from the
June 1998 securitization of originated loans.  CRIIMI MAE
acquired subordinated CMBS for a purchase price of
approximately $1.2 billion from October 1, 1997 through
September 30, 1998. CRIIMI MAE had originated approximately
$870 million commercial mortgage loans during that same
period. A portion of these loans was securitized in June
1998.  The balance was intended to be securitized later
this year.

For GAAP purposes, the net loss for the third quarter was
primarily due to unrealized losses aggregating $21.7
million resulting from the impact of financial market
volatility on commitments related to commercial mortgage
loans  in the company's securitization pipeline and losses
on hedge positions. CRIIMI MAE recorded a $17.6 million
unrealized loss related to commercial mortgage loans in the
company's securitization pipeline, which consisted of loans  
originated since CRIIMI MAE's June 1998 securitization
of its No-Lock loans.   The parties who fund the company's
loan originations are required under the relevant
agreements to hedge the related loans and to provide timely
written  hedge position reporting.  These reports were not
provided to the company at September 30, 1998.  In the
absence of such reports, the company has based its  loss
estimates, in part, upon oral communications from these
parties.  In addition, a $4.1 million unrealized loss was
recorded on a U.S. treasury position used to hedge the
investment grade bonds retained from the June 1998  
securitization.  Since these losses were unrealized at
September 30, 1998, they do not impact tax basis earnings
for the quarter.

A significant collateral call made by Merrill Lynch
Mortgage Capital, Inc. on October 2 was the event directly
precipitating CRIIMI MAE's October 5, 1998 filing under
Chapter 11.  Although CRIIMI MAE disputes the valuation
methodology used by this creditor, the company felt that it
was in the best interest of creditors, equity holders and
other parties in interest to file for  Chapter 11
protection.  It is possible that CRIIMI MAE may have
to record  losses during the fourth quarter, including
potential losses based on this and  other adverse actions
against CRIIMI MAE by its lenders.

Before filing for reorganization, CRIIMI MAE had been
actively involved in acquiring, originating, securitizing
and servicing multi-family and commercial mortgages and
mortgage related assets throughout the United States.  
Since filing for Chapter 11 protection, CRIIMI MAE has
suspended its loan securitization, loan underwriting and
loan origination businesses.  The company, however,
continues to hold a substantial portfolio of subordinated  
CMBS and, through its servicing affiliate, acts as a
servicer for its own as well as third party
securitizations.  Despite the volatility in the capital  
markets, the mortgage assets underlying the company's
portfolio of CMBS continue to experience no losses of
principal from defaults.

HANBO STEEL: USA May Bring Charges To WTO against Hanbo
Text of report by the South Korean news agency Yonhap
Seoul, 18th November: Prompted by complaints from the US
steel industry and the Congress, the US government may
bring an action to the World Trade Organization (WTO)
against Hanbo Steel on charges that the steelmaker received
government subsidies.

According to a report Wednesday from the Korea
International Trade Association's (KITA) branch in
Washington D.C, the US trade representative's  
office is taking the charges seriously, reviewing the
matter with an eye towards bringing it to the WTO.
Without elaborating, a KITA official surmised that the fact
that US Vice-President Al Gore met with President Kim Tae-
chung {Dae-jung} and discussed the matter "strengthens the
likelihood of the probable US action to bring the case
to the WTO".

The US complained that the Korean government provided a
subsidy of 5.8bn US dollars to Hanbo Steel, and 670m
dollars subsequently, after the steelmaker went bankrupt.
The Korean government denied it paid the subsidy, saying
that the funds were loans provided by banks.  Both the US
Congress, and the steel industry requested Washington curb
steel imports from Korea because the Korean government
pressured the Pohang Iron and Steel Co to cut export prices
to the US by 30 per cent from the international market
price through its practice of paying subsidies to
steelmakers, inflicting serious damage to the US steel
industry. (BBC Asia Pac Economic -11/18/98)

HEARTLAND WIRELESS: Accused Of Inflating Stock Value
Officials at Heartland Wireless Communications Inc.
[HARTQ], which has filed for Chapter 11 bankruptcy  
protection, are accused of artificially inflating the
company's stock value for  nearly three years in a class
action complaint filed in the U.S. District Court for the
Northern District of Texas.

In the most recently quarterly statement available, Dallas-
based Heartland on Aug. 14 reported a $50.6 million second
quarter loss. Its subscriber revenue had dropped from $2.2
million at the end of last year to $1.8 million as of  
June 30.  The wireless cable provider's outstanding
expenses increased from $17.4 million as of Dec. 31, 1997,
to $26.2 million at the midpoint of this year.

According to its quarterly report, the increase "was
primarily due to additions to accrued interest on the
company's senior notes as a result of the company's
election in April not to make an interest payment of
approximately $7.5 million  on the 13 percent notes."

Heartland announced in early October that it would
voluntarily file for Chapter 11 bankruptcy protection to
commence a reorganization plan to convert about  $323
million in debt into common stock for its creditors. The
company planned  for holders of its senior notes to receive
about 97 percent of the reorganized  company's issued and
outstanding common stock in exchange for canceling the  

Hazlet, N.J. law firm Kramer, Kramer & Kilgallen filed the
class action  complaint stating that the  company and
certain of its officers and directors engaged in a scheme  
to artificially inflate the market price of Heartland
securities by making misrepresentations and omissions of
material fact concerning Heartland's publicly reported
revenues, earnings, financial condition and growth
prospects."  According to the claim, Heartland is accused
of inflating its stock value from Nov. 15, 1995 through
Aug. 14 of this year.

Heartland's stock was de-listed in October from NASDAQ for
failing to meet minimum closing bid and net tangible asset
requirements.  The company expects to emerge from its
reorganization with about $15 million of installment notes
due to the FCC, for its basic trading areas, as its only
long- term debt.

Heartland's officials said they had reached the
reorganization agreement with the holders of a majority in
principal amount of its $115 million in 13 percent
senior notes due 2003 and $125 million in 14 percent senior
notes due 2004. The plan would will allow the company to
convert these senior notes and its 9 percent convertible
subordinated discount notes due 2004 into new shares of  
Heartland common stock.

The company said holders of the subordinated notes,
existing common stock and certain litigation claims will
receive the remaining 3 percent of the reorganized
Heartland's common stock. They will also get warrants to
buy 10 percent of the common stock of the reorganized
Heartland on a fully diluted basis, the company said.

The $323 million aggregate amount of debt to be converted
includes $240 million in principal amount of the senior
notes and $26 million of accrued interest. It also includes
$57 million in subordinated notes, the company said.
Copyright Phillips Publishing, Inc. Communications Today -

HILLS STORES: Reports Third Quarter Net Loss of $95.2 M
Hills Stores Company (NYSE:HDS) announced its third quarter
financial results for the period ended October 31, 1998.

The Company reported a net loss for its third fiscal
quarter ended October 31, 1998 of $95.2 million, or $9.08
per basic share, compared with a net loss of $3.9 million,
or $0.38 per share, in the third quarter last year.

Total sales for this year's 13-week fiscal quarter were
$399.7 million compared with $434.6 million during the
third quarter last year. Comparable store sales decreased
by 8.0%. Gross profit decreased to $105.8 million from
$115.1 million last year, and remained flat as a percentage
of sales at 26.5%.

For the nine months of fiscal year 1998, the Company
reported a net loss of $126.0 million, or $12.04 per share,
compared with a net loss of $29.9 million, or $2.87 per
share, last year. The net loss included a net, non-cash
charge to tax expense of approximately $79.5 million, or
$7.60 per share, to establish valuation allowances against
deferred and interim tax assets, partially offset by other
non-cash tax credits. Year-to-date EBITDA was a loss of
$0.7 million compared with EBITDA of $21.3 million in the
prior year.

Total sales for the nine months ended October 31, 1998 were
$1,119.9 million this year compared with $1,137.3 million
last year, and comparable store sales decreased by 1.5%.
Gross profit declined slightly as a rate to sales to 26.0%
from 26.2% last year.

As announced on November 12, 1998, Hills Stores Company and
Ames Department Stores, Inc. (Nasdaq:AMES) signed a
definitive agreement providing for the acquisition of Hills
by Ames. That transaction is contingent on Ames'  
successful completion of its tender offer to Hills'
shareholders and noteholders, on successfully obtaining
final financing, and on regulatory approval and other
customary closing conditions.

JUICE STOP: Files Chapter 11 and Hires New Management
Juice Stop International, Inc., a Denver-based national
retailer of fresh fruit smoothies, juice and nutritional
drinks and snacks has filed for Chapter 11 reorganization
proceedings today.  All retail locations throughout the
United States will remain open.  William S. Glennie,
President of JSI and a member of the new management team,
said,  "Juice Stop has had problems in the past due to an
overly aggressive growth  plan coupled with
undercapitalization.  New financing, a stronger brand
imaging  campaign and a new store design program will be
introduced over the next few  months to provide us with a
successful future."

The Chapter 11 filing has the support of JSI's
institutional lenders, who have committed to continue
providing financing during the reorganization

It is the Company's hope to emerge from Chapter 11 by next
spring. During the reorganization, JSI will be redoubling
its efforts to provide excellent service to its entire
loyal customer base, as well as to all vendors,
employees and  franchisees.

The Juice Stop concept was founded in 1993 in Lake Forest,
California by TJ and Derek Humphreys, who began franchising
their concept in 1995. To date the Company has opened 87
franchise and company owned stores in 16 states. The
Company relocated to Denver, Colorado in 1997 to better
position itself for future growth as Denver is more
centrally located within the United States.

KIA MOTORS: Hyundai reports $602M undeclared debt                      
Hyundai Motor Co. Ltd. has found an undeclared debt of
$601.5 million after a one-month evaluation of ailing Kia
Motors Co. Ltd. and its truck-building affiliate Asia
Motors Co. Ltd.

Hyundai says it will proceed with the acquisition process
for the two automakers as planned and sign the stock
purchase contract Dec. 1.  State-run Yonhap news agency
today is citing a Hyundai official saying the company
``expects things will work out well after talking the
matter over with Kia and creditors next week.''

Yonhap quotes an unnamed Kia official saying, ``Hyundai may
have counted overdue discount bonds as debts. But opinions
can differ in interpreting that amount as extra debt.''
Hyundai has the right to demand renegotiations on the loan
write-off, if the actual debt figures exceed the amount
revealed by creditor banks by more than 10 percent.

LEVITZ FURNITURE: Exclusivity Extended 90 Days To March 1
Levitz Furniture Inc. won an extension of its exclusive
periods to file a reorganization plan and solicit plan
acceptances from Nov. 30 and Jan. 28 to March 1 and May 1,
respectively.  The furniture retailer had argued that the
extension was needed to complete and test a long-term
business plan and to develop, negotiate and propose a
reorganization plan based on such a business plan. (Federal
Filings Inc. 19-Nov-98)

LEVITZ: Top Exec Goes To Kmart
Kmart Corp. has named Michael Bozic vice chairman in charge
of finance, systems and logistics.  Since 1995, Bozic has
been chairman and chief executive of Levitz Furniture
Corp., a Boca Raton, Fla.-based furniture retailer that is
currently operating under Chapter 11 bankruptcy protection.
He was hired to  reinvigorate Levitz after he successfully
revived discount furniture retailer  Hills Stores.  Bozic,
57, will report to Floyd Hall, Kmart's chairman, president
and chief executive. At one time, Bozic was chairman and
chief  executive of the merchandise group of Sears, Roebuck
and Co. Kmart, based in  Troy, Mich., is the nation's
third-largest retailer, with 2,160 discount stores  across
the United States.

LIVENT INC: Files For Bankruptcy, Fires Drabinsky
The Canadian theater company Livent Inc. has fired its  
flamboyant co-founder Garth Drabinsky and filed for
bankruptcy protection in a  U.S. bankruptcy court.

The company said it is considering seeking similar
protection in Canada.

Livent's problems have been in the spotlight since
Drabinsky, producer of "Ragtime," "Kiss of the Spider
Woman" and other hit musicals, was suspended in  
August after an investigation by Livent's new managers led
to allegations of financial irregularities.

The company said Wednesday that it is seeking protection
under Chapter 11 of  the U.S. Bankruptcy Code and was
considering "appropriate protective action" in  Canada.

It also took steps to file a $225 million civil damage
action against Drabinsky and his partner, Myron Gottlieb,
alleging that they committed fraud in connection with
Livent financial management before the company was sold  
earlier this year.

The new management team is headed by former Walt Disney
executive Michael Ovitz and New York investment banker Roy

Drabinsky and Gottlieb, who were suspended in August, have
denied any wrongdoing. They said Wednesday they are filing
countersuits against Ovitz, Furman and others for damages
totaling $200 million, accusing the new owners of
conspiring against them.

The news of the firing and bankruptcy filing came a day
after two credit- rating agencies, Standard and Poors and
Moody's Investor Services, downgraded the company's debt

There had been increasingly serious concerns about Livent's
ability to pay its debts.  Livent's board of directors met
Tuesday in Toronto to discuss their financial dilemma and
issued a brief statement saying they "were carefully  
exploring the company's options."

Analysts had said one alternative to seeking bankruptcy
protection would be  selling the company, but Livent's
management had acknowledged having difficulty getting a
clear picture of its financial condition. Moody's said it
was concerned about the "multitude" of class action
lawsuits filed against Livent and "evidence of a
fundamental deterioration of the company's business

Ed Lawrence, a director at Standard and Poor's in Toronto,
said Livent's credit ratings were dropped from single-B
plus to triple-C, a sign that its ability to meet its debts
is "very vulnerable."

LONG TERM CREDIT: Probes Loan Decisions By Former Execs
The Long-Term Credit Bank of Japan (LTCB), now under  
state control, decided Wednesday to begin in December a
probe into loan decisions by former top managers following
allegations they inflicted damages on the bank through
unlawful lending, LTCB sources said.

LTCB decided to establish a committee of 30 experts,
including 14 lawyers, to look into allegations that the
former managers committed breach of trust by  
causing losses through suspect lending decisions, the
sources said.

The nucleus of the committee will be a group of seven
lawyers, each of whom will then appoint another lawyer as
his or her agent and assistant, they said.

LTCB President Takashi Anzai visited the office of the
Japan Federation of Bar Associations on Wednesday and asked
the federation to recommend appropriate lawyers as the core
of the 30-member committee, they said.

The new management of the nationalized LTCB wants to
receive a report from the committee by March on whether the
criminal culpability of the former managers can be pursued,
they said.  If the committee finds evidence that some
unlawful lending decisions by former LTCB managers resulted
in damages to the bank, the new management will file a  
criminal complaint with the Tokyo District Public
Prosecutors Office, they said.

Under Japan's Commercial Code, an aggravated breach of
trust charge can be brought against managers who are found
to have intentionally inflicted damages on a bank. This
charge has a five-year statute of limitation.  But there
still remains the possibility that the bank can file a
civil lawsuit against the former managers demanding they
pay compensation for the damages, they said.

The committee will also look into the possibility that it
may be able to pursue the managers' legal responsibility
concerning the fact that LTCB and Japan Leasing Corp., an
LTCB-affiliated nonbank financing company, transferred to  
paper companies the real estate that had been offered as
collateral to back up their problem loans to their
borrowers, they added.

LTCB was formally nationalized on Nov. 4 to avoid severing
credit lines to its longtime corporate borrowers and to
avert defaulting on its obligations to creditors. (Kyodo-

MERCURY FINANCE: Harshfield Appointed As Consultant
Mercury Finance Company (OTC Bulletin Board: MFNNQ) today
announced that Edward G. Harshfield has agreed to become a  
consultant to Mercury while the Company pursues its plan of
reorganization in the federal bankruptcy court.  With the
approval of the court and upon judicial confirmation of the
plan, Harshfield is expected to be named to the position of  
chief executive officer of the reorganized company.

Harshfield comes to Mercury from the California Federal
Bank, where as chief executive officer he led the
turnaround of the bank and its subsequent merger.  

Mercury's selection of Harshfield has the support of the
Company's board of directors and its senior lenders, who
stand to become the controlling shareholders under the
terms of the proposed restructuring plan. Harshfield's
engagement commences immediately.

MONTGOMERY WARD: Hires Wasserstein For Help With Plan
Subject to court approval, Montgomery Ward & Co. has hired
Wasserstein Perella & Co. as financial advisor to help
develop a reorganization plan for the 291-store chain.
Pursuant to an Oct. 1 engagement letter, the investment
banking firm would receive a $125,000 monthly advisory fee
plus expense reimbursement. Wasserstein's services will
include assisting in plan development, preparing valuation
analyses, and participating in court hearings and providing
testimony. If a plan is confirmed during the engagement or
six months following an early termination (either party may
terminate on 30 days' notice) by the retailer, Wasserstein
may apply to the court "for payment of an additional fee
based upon its contribution to the Debtors'
reorganization." The engagement letter also gives
Wasserstein the right of first refusal with respect to
investment banking services. (The Daily Bankruptcy Review
and ABI Copyright c November 19, 1998)

PHOTRAN CORP: Loss Includes Asset Impairment Charge
Photran Corporation (Nasdaq: PTRN) today reported net sales
of $165,000, an operating loss of $3.3 million,  
including an asset impairment charge of $2.2 million, and a
net loss of $3.4 million for the quarter ended Sept. 30,

Photran's 1998 third quarter results compare to revenues of
$1.14 million, an operating loss of $1.6 million, and a net
loss of $1.6 million for the same period last year.  Net
loss per share was $0.61 for the quarter just ended,  
compared with a net loss per share of $0.31 for the third
quarter of 1997.

The third quarter revenues were less than expected due to
continued market softness.  "We are confident that we have
seen the bottom of the market," said Paul T. Fink, Photran
president and chief executive officer.

"Existing customers have begun to accept previously delayed
shipments, and have placed new orders.  We also are
receiving orders from new customers. Additionally, the P-3
line will decrease our manufacturing costs and gives us  
the capacity for solid profitable growth," Fink said.

The company made significant progress during the third
quarter toward completing installation of the P-3 line.  
The line is expected to be in full production by the end of
the fourth quarter of 1998.  The highly-automated line
uses about the same number of people as Photran's P-1 line
while having the ability to coat more sheets of glass than
the P-1 and P-2 manufacturing lines combined.  At current
and anticipated production levels, the P-3 line will be  
able to meet Photran's production needs, Fink said.

Photran plans to sell the P-1 and P-2 lines to provide the
cash necessary to reduce debt and fund the company's
working capital requirements.  These assets will not be
classified as "assets to be disposed of" until the P-3 line
is fully operational.

Based on the lines' estimated selling prices, management
has determined that the carrying values of the equipment
exceeded the estimated sales proceeds by $2.2 million, and
recorded an asset impairment charge in that amount for the  
third quarter.

Revenues for the first nine months of 1998 were $2.8
million, compared to $2.6 million for the same period last
year.  The company had an operating loss of $5.2 million
for the nine months ended September 30, 1998, compared to
an operating loss of $3.6 million for the same period in
1997.  Net loss for the first nine months of 1998 was $7.4
million or $1.36 per share, compared to a net loss of $3.5
million or $0.68 per share for the same period last year.

The loss for the nine months ended September 30, 1998
includes $2.1 million in litigation settlement expenses
related primarily to the April 1998 tentative settlement of
certain class-action lawsuits.

Photran Corporation develops, manufactures and markets
high-performance optical and electrically conductive thin-
film coated products using proprietary process technology.  
The company produces products for the flat-panel display

The Pittsburgh Penguins are asking a federal bankruptcy
judge to ease his order barring the hockey team's
discussions with other cities, about a  possible move. One
of the team's attorneys tells the Pittsburgh Post-Gazette  
the team is not considering leaving the city, but
wants to "gather infromation" about the leases other hockey
teams pay in their cities. Last week U.S. Bankruptcy Judge
Bernard Markovitz ordered the team to honor a commitment
made last year not to move, or hold discussions about
moving until 2007.

SCOTT CABLE: $165 Million Sale To InterLink Wins Nod
The court approved the $165 million sale of Scott Cable
Communications Inc. to InterLink Communications Partners
LLLP Friday and has scheduled a Nov. 23 confirmation
hearing. Scott Cable's prepackaged reorganization plan is
based primarily on the sale to InterLink, an affiliate of
Rifkin & Associates Inc.  The cable operator agreed in July
to sell substantially all of its assets to InterLink.  The
government is expected to oppose the plan. (Federal Filings
Inc. 19-Nov-98)

WHEELED ELECTRIC POWER: Case Summary & 20 Largest Creditors
Debtor:  Wheeled Electric Power Company
         50 Charles Lindburgh Blvd. Ste. 207
         Uniondale, NY 11553

Type of business: Manufacturer of power supplies

Court: District of Delaware

Case No.: 98-2355    Filed: 10/16/98    Chapter: 11

Debtor's Counsel: James L. Patton Jr.
                  Young Conaway Stargatt & Taylor LLP
                  11th Floor Rodney Square North
                  P.O. Box 391
                  Wilmington, Delaware
                  (302) 571-6600

20 Largest Unsecured Creditors:

   Name                                             Amount
   ----                                             ------
Cingery Services Corp.                            $936,984
Bay State Utilities                               $285,000
Ed Hutchins                                       $280,000
Lyons Community Property Trust                    $250,000
TPC Corp                                          $244,626
M.B. Long                                         $240,000
NGE Generation Inc.                               $200,000
John Danzi                                        $125,000
Mark Freeman                                      $125,000
R. Carlsten                                       $120,000
Eastern Power Distribution                        $112,090
Troy Drayton                                      $100,000
Orange & Rockland Utilities, Inc.                  $82,000
New England Power                                  $75,910
Keith Jackson                                      $75,000
Ensearch                                           $73,000
Niagra Mohawk                                      $70,000
Astair Partners                                    $65,000
Consolidated Edison of New York Inc.               $60,000
Cedric Jones                                       $50,000

DLS CAPITAL PARTNERS: Bond Pricing For Week of November 16
Following are indicated prices for selected issues:

Acme Metal 10 7/8 '07          17 - 19 (f)
Amer Pad & Paper 13 '05        54 - 57
Amer Telecasting 0/14 1/2 '04  22 - 24
Asia Pulp & Paper 11 3/4 '05   78 - 80
Boston Chicken 7 3/4 '05        6 - 7 1/2 (f)
Brazos 10 1/2 '07              10 - 20
Brunos 10 1/2 '05              12 - 15 (f)
Cityscape 12 3/4 '04           11 - 14 (f)
E & S Holdings 10 3/8 '06      37 - 42
Globalstar 11 1/4 '04          70 - 72
Hills 12 1/2 '03               54 - 55
Liggett 11 1/2 '99             75 - 78
Mobilemedia 9 3/8 '07          17 - 20 (f)
Penn Traffic 9 5/8 '05         16 - 17
Planet Hollywood 12 '05        43 - 46
Royal Oak 12 3/4 '06           45 - 50
Samsonite 10 3/4 '08           84 - 86
Service Merchandise 9 '04      49 - 50
Sunbeam 0 '18                  12 - 13
Zenith 6 1/4 '11               17 - 20 (f)


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

Bond pricing, appearing each Friday, is supplied by DLS
Capital Partners, Dallas, Texas.

S U B S C R I P T I O N   I N F O R M A T I O N     

Troubled Company Reporter is a daily newsletter, co-
published by Bankruptcy Creditors' Service, Inc.,
Princeton, NJ, and Beard Group, Inc., Washington, DC.  
Debra Brennan and Lexy Mueller, Editors.   

Copyright 1998.  All rights reserved.  ISSN 1520-9474.  
This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the

Information contained herein is obtained from sources
believed to be reliable, but is not guaranteed.  The TCR
subscription rate is $575 for six months delivered via e-
mail.  Additional e-mail subscriptions for members of the
same firm for the term of the initial subscription or
balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 301/951-6400.  

           * * *  End of Transmission  * * *