TCR_Public/981218.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, December 18, 1998, Vol. 2, No. 246

ACME METALS: Alpha Tube Creditors Continue To Object
AMERICAN RICE: Seeks Approval of Toll Milling Agreement
BISCAYNE APPAREL: Misses Interest Payment/May File Chap. 11
BOSTON CHICKEN: Now Quoted On OTC Bulletin Board
CAMPO ELECTRONICS: Trustee's Motion For 60 Day Extension

CROWN BOOKS: Order Fixes Bar Date - January 28
DECORATIVE HOME: Applies To Retain Hilco/Great
EAST SHOSHONE HOSPITAL: Granted Relief Under Chapter 9
EQUALNET CORP: Committee Taps Arthur Andersen LLP
FASTCOMM: Reports Second Fiscal Quarter Results  

INTERNATIONAL WIRELESS: Seeks To Sell Foreign Assets
KTI INC: Court Approves Plan
LACLEDE STEEL: Trustee Names Creditor Panel
MONTGOMERY WARD: Counters Panel Attack With $60M EBITDA
NEXTWAVE TELECOM: Suit Count Dropped As FCC Gains Momentum

NU-KOTE: Court Approves $7.5 Million Line of Credit
NU-KOTE: Lender Seeks To Terminate Exclusivity
ONEITA INDUSTRIES: Applies To Retain Appraisers
PARAGON TRADE: Order Approves Joint Defense Agreement
PHILIP SERVICES: Icahn and Foothill Give More Time

PLANET HOLLYWOOD: Sells Headquarters
SABACOL: Saba Explains Current Status
SGL CARBON: Seeks Bankruptcy Protection
THE SCORE BOARD: 11th Extension of Interim Financing
WASTEMASTERS: Board Gains $5.3 M Eliminating $7.8M Debt
DLS CAPITAL PARTNERS: Bond Pricing For Week of 12/18


ACME METALS: Alpha Tube Creditors Continue To Object
The Unofficial Committee of Alpha Tube Creditors submit a
notice of continuing objection to the DIP Financing
facility, the cash management by the debtors and the Global
Reclamation Program.

AMERICAN RICE: Seeks Approval of Toll Milling Agreement
American Rice, Inc., debtor seeks approval of executing a
Toll Milling Agreement with Continental Grain Company.  The
debtor has excess capacity at its Maxwell California rice
process facility.  The debtor desires to use some of its
excess capacity at the facility to provide CTGC with rice-
milling services.  Debtor and CGC have negotiated an
agreement that will generate profits and cash flow for the
debtor and will benefit the estate.

BISCAYNE APPAREL: Misses Interest Payment/May File Chap. 11
Biscayne Apparel Inc., Clifton, N.J., announced that it did
not make an interest payment due Dec. 15 on its 13 percent
subordinated notes due Dec. 15, 1999 and that the non-
payment will become an event of default if non-payment
continues for 30 days, according to Reuters. Biscayne said
that it would consider its alternatives, including a
chapter 11 filing, if the notes were accelerated and it was
unable to secure additional financing. (ABI 17-Dec-98)

BOSTON CHICKEN: Now Quoted On OTC Bulletin Board
Boston Chicken, Inc. (OTC Bulletin Board: BOSTQ) announced
that its common stock is now being quoted on the OTC  
Bulletin Board (OTCBB) under the ticker symbol BOSTQ.

The company's three subordinated debt securities (4-1/2
percent convertible subordinated debentures due 2004, 7-3/4
percent convertible subordinated debentures due 2004 and
Liquid Yield Option Notes due 2015) continue to be  
quoted in the National Quotation Bureau's (NQB) "Yellow
Sheets."  The company's commons stock continues to be
quoted in the NQB's "Pink Sheets" as well as on  
the OTC Bulletin Board.

The company's common stock and three debt securities were
delisted from Nasdaq effective as of the close of business
on December 9, 1998.

Boston Chicken filed a voluntary petition under Chapter 11
of the U.S. Bankruptcy Code on October 5, 1998 and is
currently working through its restructuring. Boston
Chicken, Inc. operates and franchises restaurants
under  the Boston Market brand name that specialize in
fresh, convenient meal solutions, featuring homestyle
entrees, fresh vegetables, sandwiches, salads  
and side dishes.  There are currently 898 Boston Market
restaurants in 33 states and the District of Columbia.  

CAMPO ELECTRONICS: Trustee's Motion For 60 Day Extension
Wilbur J. "Bill" Babin Jr., Trustee has filed a motion for
a sixty day extension of time to assume or reject unexpired
leases.  A hearing will be held on December 22, 1998.

The Trustee needs additional time to decide whether to
accept or reject many of the unexpired leases of the Campo
estate.  Additional time is also required to enable the
Trustee to remove inventory presently located at the above
referenced leased locations.  The Trustee requests a sixty
day extension until March 5, 1999 to assume or reject
certain leases of the debtor.

CROWN BOOKS: Order Fixes Bar Date - January 28
Judge Roderick R. McKelvie entered an order on December 4,
1998 in the case of Crown Books Corporation and its
affiliated debtors fixing the bar date on January 28, 1999.  
Creditors holding or wishing to assert pre-petition claims
against one or more of the debtors are required to file a
proof of claim form before 4:00 PM on the bar date.

DECORATIVE HOME: Applies To Retain Hilco/Great
The debtors, Decorative Home Accents, Inc. and its
affiliates seek authority to retain Hilco/Great American
Group nunc pro tunc to November 23, 1998 and approval to
establish procedures for future sales of inventory outside
the ordinary course of business.

The debtors seek to retain Hilco to liquidate certain
inventory.  Hilco's fee is $3,00 per week plus expenses.  
In addition Hilco will receive incentive compensation, a
percentage of the proceeds.  In excess of $2.5 million,
Hilco will receive 10% of the proceeds of the sale of such
inventory.  The debtors have determined to sell an
extensive amount of assets of their estates in order to
realize the greatest possible recovery.

EAST SHOSHONE HOSPITAL: Granted Relief Under Chapter 9
The East Shoshone Hospital District in North Idaho was
granted relief under chapter 9 on Monday, and attorney Doug
Marks said the hospital will file a plan to pay its debts,
but he did not know when that would occur, The Spokesman-
Review reported. The hospital district is $1.1 million in
debt. The Valley Vista Care Center has offered the district
$500,000 for its empty Silverton building. Marks said the
board is keeping its option open and that one board
member said the building is worth $2 million.

EQUALNET CORP: Committee Taps Arthur Andersen LLP
The Official Committee of Unsecured Creditors of Equalnet
Corporation files an application for authorization to
retain Arthur Andersen LLP as accountants and consultants
to the Committee.

The firm will review financial and operational information
of the debtor, work with the debtor to determine the
economic viability of the debtor's business, review the
debtor's books and records, perform a valuation of the
company, investigate transfers and dissipation of assets,
provide expert testimony and assist the committee in
implementation of a plan of reorganization.  Andersen has
experience in the telecommunications industry and
reorganization proceedings.  The customary hourly rates are
capped at $300 for partners/principals in this case.

FASTCOMM: Reports Second Fiscal Quarter Results  
FastComm Communications Corp. (OTC:FSCX) reported today its
financial results for the second quarter of fiscal 1999,
ended 31 October 1998.

Revenue for the period was $1.2 million, down from $1.5
million in the same quarter of the previous fiscal year.
There was a net loss of $1.5 million ($.12 per share),
which included reorganization related charges of $209,000.
This compared to a $2.3 million ($.23 per share) loss a
year ago.

On a fiscal year to date basis, the Company reported
revenue of $2.3 million, down from $3.5 million for the
corresponding period of the previous fiscal year. There was
a net loss of $3.5 million ($.29 per share), which included
reorganization related charges of $314,000. This compared
to a $3.7 million ($.37 per share) loss a year ago.

"The Chapter 11 filing continues to hamper our selling
efforts," said Peter C. Madsen, FastComm president. "We
filed our plan of reorganization in October and are now
working on a revised plan and disclosure statement which
includes amendments suggested by the creditors committee.
We plan to file a final amended plan shortly."

The Company achieved significant milestones in reducing
operating overhead. Second quarter selling, general and
administrative expenses decreased $398,000 or (25%) when
compared with the previous quarter and $598,000 or (34%)
when compared with that of the second quarter of the
previous fiscal year.

FastComm Communications Corp. (FSCX) designs, manufactures,
and sells access products for public and private digital
networks. Its products include X.25 and  Frame Relay
concentrators, Voice and Data FRADs, and Internet access
routers; T- 1/E-1 ATM access equipment; Frame Relay testers
to speed installations; SuperView(tm) data switch for
managing multiple remote devices; and a family of
high speed data compressors.

INTERNATIONAL WIRELESS: Seeks To Sell Foreign Assets
International Wireless Communications Holding Inc. is
asking the court to approve the sale of its businesses in
Argentina and New Zealand, for $2.5 million and the
assumption of $4 million in debt, respectively.
Radio Mobil Digital Americas Inc. ("RMDA") and Radio
Servicios S.A., subsidiaries of International Wireless,
have agreed to sell their Argentinian assets for $2.5
million to Argentina Wireless Telecommunications. The
agreement provides for $2 million of the purchase price to
be paid to RMDA and $500,000 to Digitel Inc., which owns
80% of Radio Servicios' common shares. The company also is
seeking approval for subsidiary International Wireless
Communications Inc. to sell TeamTalk Ltd., its business in
New Zealand, for $1 plus a provision releasing IWC from
possible guarantee obligations of about $4 million.
"Although the sale is for a nominal amount, disposing of
the assets will free management from a burdensome
distraction, reduce the legal costs of dealing with a
possibly insolvent subsidiary and will result in the
elimination of possible claims against the Debtor,"
according to the Nov. 25 motion. (Federal Filings Inc. 17-

KTI INC: Court Approves Plan
KTI Inc. announced that the bankruptcy court for the
District of Delaware has approved a plan of reorganization
for a Ford Heights, Ill. waste-to-energy facility that will
allow KTI to build an environmental recycling campus on the
38-acre site, according to a newswire report. KTI will
operate the campus as a joint venture with former
bondholders of the Ford Heights facility. The owners of it
filed for bankruptcy protection after amendments were made
to the Illinois Retail Rate Act, which repealed certain
rate incentives to the facility. In exchange for 50 percent
ownership interest, KTI will invest up to $17 million over
two years. The bondholders, who will own the other 50
percent, will convert $80 million in bonds and other claims
into equity. (ABI 17-Dec-98)

LACLEDE STEEL: Trustee Names Creditor Panel
The U.S. Trustee has appointed an official committee of
Laclede Steel Co.'s unsecured creditors: Philip Metals Inc.
(co-chair); Nissho Isai American Corp. (co-chair); the
Pension Benefit Guaranty Corp.; United Steelworkers of
America; Bank of New York (indenture trustee); St. Louis
Auto Shredding; Grossman Iron & Steel Co.; Ameren Services
Co.; AMG Resources Corp.; USS/KOBE Steel Co.; and Azcon
Corp. (The Daily Bankruptcy Review and ABI Copyright (c)
December 17, 1998)

MONTGOMERY WARD: Counters Panel Attack With $60M EBITDA
Countering charges levied by unsecured creditors in their
recent discovery bid, Montgomery Ward said it expects
EBITDA of approximately $60 million next year, a $250
million improvement over anticipated results for 1998.
Management "believes sales can be increased over 4% on a
comparable store basis in 1999, while continuing to improve
the margin rate and significantly reducing expenses as a
percentage of sales," the retailer asserted in a Dec. 7
filing critical of the latest move by the official
creditors' committee. The filing labels the committee's
request "a tactical maneuver designed to put pressure on"
Montgomery Ward and General Electric Capital Corp., the
retailer's controlling shareholder, debtor-in-possession
lender, and private-label credit card servicer, in
connection with ongoing talks aimed at developing a
reorganization plan. According to the committee, the
General Electric Co. unit is "hopelessly conflicted by
virtue of its multiple control positions." (Federal Filings
Inc. 17-Dec-98)

NEXTWAVE TELECOM: Suit Count Dropped As FCC Gains Momentum
The Federal Communications Commission won a small victory
in its continued fight to justify the agency's much-
maligned C-Block auction process as the court dismissed
count two of NextWave's adversary complaint against
the agency but declined to disqualify count one. Seeking to
adjudicate quickly the remaining count, the court scheduled
a pretrial conference for March 30 and instructed the
parties to be prepared to begin the trial within a week.
The personal communications provider filed a $3
billion lawsuit against the FCC in June claiming that
NextWave's $4.7 billion purchase of 63 C-Block licenses at
an ill-fated May 1996 auction was a fraudulent conveyance.
The agency responded with motions to remove and dismiss the
suit as well as disqualify NextWave's counsel, the latter
of which was granted on Sept. 17. NextWave argues that it
did not receive the required approvals from the FCC for the
purchased licenses until Jan. 3, 1997, months after
subsequent D-, E-, and F-Block auctions fetched only a
fraction of the C-Block purchase prices. (Federal Filings
Inc. 17-Dec-98)

NU-KOTE: Court Approves $7.5 Million Line of Credit
Nu-kote Holding, Inc. (OTC Bulletin Board: NKOT) today
announced that U.S. Bankruptcy Judge Keith Lundin
approved a  $7.5 million line of credit for Nu-kote from
Minneapolis-based Norwest Business  Credit, Inc.  The
credit line will help fund the company's working capital  
requirements as it reorganizes under Chapter 11 of the
bankruptcy code.

On November 6, 1998, the company and certain of its
subsidiaries filed  voluntary petitions for protection
under Chapter 11 of the U.S. Bankruptcy  Court for the
Middle District of Tennessee in Nashville.

Nu-kote manages a global portfolio of companies in the
imaging supplies industry.  Nu-kote produces supplies for
printers, copiers, fax machines and inkjet printers
primarily in North America and Europe.

NU-KOTE HOLDING: Lender Seeks To Terminate Exclusivity
In the case of Nu-Kote Holding, Inc. and its affiliated
debtors, the Lenders filed a motion seeking to terminate
the debtors' exclusivity to file a plan.  The total
indebtedness owed to the lenders at this time is $144

The lenders desire the opportunity to file a plan providing
the orderly wind-down of the debtors' businesses and the
liquidation of the debtors' business assets under the
supervision and control of a liquidating agent for the
benefit of an d payment upon the claims of the lenders; and
the funding necessary to finance such orderly liquidation,
the continued prosecution of the debtors' counterclaims in
the litigation against Hewlett-Packard Company for the
benefit of and the payment of claims of general unsecured
creditors and the lenders and the establishment of a
liquidating trust.

The debtors have alleged that they will suffer a loss of
$6.5 million by January, 1999.  The continued operation of
the debtors' business results in continued diminution of
the lenders' collateral without compensation and without
the ability to compensate the lenders for the losses in
collateral value.

The Lenders assert that the debtors' current management
appears to try to solve the debtors' business problems by
borrowing and spending additional funds.  The debtors have
produced no viable business solutions for their continuing
operational difficulties and the lenders have lost faith in
the capability of the debtors' management to build any plan
of reorganization.

ONEITA INDUSTRIES: Applies To Retain Appraisers
Oneita Industries Inc. seeks entry of an order authorizing
it to retain the firm of Ozer Valuation Services, LLC to
perform an appraisal of the debtor's inventory.

The debtor will mot be able to make the required cash
payments under the amended plan for some time, and the
prepetition lenders have advised the debtor that they do
not wish to remain in the reorganization case until the
amended plan can be implemented.  Accordingly, the amended
plan has effectively been abandoned.

The debtor is currently engaged in discussions with the
prepetition lenders regarding a plan of reorganization that
it hopes will facilitate its prompt emergence from the
reorganization case, and will maximize its values for the
benefit of its numerous claim and interest holders.

The debtor is also in discussions with a number of possible
exit lenders and requires an appraisal of its inventory in
order to obtain a lending commitment.

By retaining OVS, the debtor intends to obviate the need
for each of its potential lenders to perform a duplicative
appraisal of the same collateral.  OVS will receive a
$20,000 fee for its appraisal.

PARAGON TRADE: Order Approves Joint Defense Agreement
Paragon Trade Brands, Inc. filed a motion for authority to
enter into a joint defense agreement with the Official
Committee of Equity Security Holders on November 24, 1998
requesting the approval of a Joint Defense Agreement
between the debtor, its respective counsel, the Official
Committee of Equity Security Holders and respective
counsel.  On December 6, 1998, Judge Margaret H. Murphy,
entered an order approving the Agreement.

PHILIP SERVICES: Icahn and Foothill Give More Time
Financier Carl Icahn and Foothill Partners IIILP have given
Philip Services Corp. more time to restructure its US$1.2
billion in debt; the original deadline was Tuesday, and now
the company has until Jan. 8 to get an agreement from all
lenders on its restructuring plan, according to a
newswire report. Last month, Icahn and Foothill threatened
to push the company into bankruptcy and liquidation but
relented to give the company more time. At a meeting
Tuesday, the company proposed to give creditors 90 percent
of its shares in return for restructuring the debt. The
remaining 10 percent of shares would be distributed among
Philip's current stockholders. Philip, one of North
America's largest scrap recyclers, has more than 12,000
employees in Canada and the United States. (ABI 17-Dec-98)

PLANET HOLLYWOOD: Sells Headquarters
Faced with plunging restaurant sales, Planet Hollywood  
is selling its new headquarters and a New York restaurant
to pay creditors.

Money raised from the sales must be applied to the
principal in a new credit arrangement, the company said in
recent filings with the Securities and Exchange Commission.

The sale of the two properties could bring in about $60
million, said company chairman Robert Earl. The New York
property, worth an estimated $40 million, is a restaurant
in the lower portion of a 560-bed Planet Hollywood  
hotel under construction in Times Square.

The company has no plans to vacate its Orlando headquarters
property, which has 15 acres and more than 100,000 square
feet of office space.  Earl said the company will lease
back the property after the sale in an effort to free up
cash.  The company's report to federal regulators noted
that a $65 million revolving credit line was terminated
last week by SunTrust Bank Central Florida N.A. and other
lenders because of recent financial problems.  The company
said a $10.1 million third-quarter loss caused it to fail
to meet the credit line's terms in late September.

A more restrictive $35 million credit agreement replaced
the old credit line. Any new debt must be fully repaid by
June 30, 1999.

Planet Hollywood's third-quarter revenue was down 26
percent and sales at existing outlets were off 20 percent,
nearly double the 11 percent rate of decline posted in
1997. Analysts have cited Planet Hollywood's aggressive
expansion as a key problem. The company has more than 80
Planet Hollywood restaurants and operates  the Official All
Star Cafe restaurants.

SABACOL: Saba Explains Current Status
Saba Petroleum Company (Amex: SAB) disclosed further
information today following the announcement of the filing
by  its wholly-owned subsidiary, Sabacol, Inc. ("Sabacol"),
for the protection of  its assets under Chapter 11 of the
U.S. Bankruptcy Code.

At the time of filing, Sabacol had a net book value of
approximately $5.3 million with liabilities of $4.6
million.  For the nine months ended September  
30, 1998, the average daily production of Sabacol's
interest in the Colombian properties was 2300 Bopd and
gross revenues were approximately $5.9 million  
with a negative cash flow.

Sabacol intends to expeditiously file a reorganization plan
that may include the disposition of its Colombian assets.  
There is no assurance, however, of consummating the plan.

The filing is not expected to have any material adverse
effect on the Company.  Furthermore, the filing does not
change any terms of the proposed merger with Horizontal
Ventures, Inc. (Nasdaq: HVNV) previously announced by the
Company on December 7, 1998 and which is expected to close
within the first quarter of 1999.  The Company expects that
the related registration statement and proxy documents will
be filed with the Securities and Exchange Commission prior
to year end.

The Company has deferred the semi-annual interest payment
of $162,000 due today on its 9% Convertible Senior
Subordinated Debentures ($3,575, 000 principal amount
outstanding), but this action does not constitute a default
under the terms of the indenture.  The Company intends to
make the interest payment within the next thirty days prior
to the event of default.

Saba Petroleum Company is an independent energy company
with oil and gas production and development activities in
North America and Colombia.  In the United States, the
Company's primary areas of activity are California,  
Louisiana and New Mexico.  The Company also has large land
positions and exploration options on exploratory projects
in the U.S.A., Indonesia and the United Kingdom.

SGL CARBON: Seeks Bankruptcy Protection
SGL Carbon Corp., Charlotte, N.C., announced that it filed
chapter 11 in the District of Delaware as a result of the
commercially impracticable settlement demands made by
several plaintiffs in an ongoing civil antitrust litigation
against the company, according to a newswire report. SGL
Carbon's subsidiaries are not included in the filing, nor
is its parent company, SGL Carbon AGof Wiesbaden, Germany.
The company stated that although the litigants' claims are
without merit, it has explored various settlement
possibilities to limit the costs and distraction
associated with protracted litigation and has reached
settlements with some customers without admitting
liability. Some plaintiffs, however, continue to make
"excessive and commercially impracticable demands"on the
company, and SGL Carbon does not believe a settlement could
be reached with them. The company also filed a
reorganization plan, which must be approved by
the court and creditors. The company has received $60
million in debtor-in-possession financing from a group of
lenders led by Citicorp. (ABI 17-Dec-98)

THE SCORE BOARD: 11th Extension of Interim Financing
The court entered an order in the case of The Score Board,
Inc. and The Score Board Holding Corporation upon the
debtors' motion seeking authority to obtain additional
post-petition loans, advances and other financial
accommodations from Congress Financial Corporation, such
amounts to be in Congress' sole discretion, not to exceed
amounts on the budget report and pursuant to the terms and
conditions of the Loan Agreement.

WASTEMASTERS: Board Gains $5.3 M Eliminating $7.8M Debt
WasteMasters (Nasdaq: WAST) announced that it has closed a
deal with the Institute of Business Development & Law,  
Inc. for the sale of certain wholly owned Bankrupt
Companies, thereby eliminating approximately $7.8 million
in debt from its balance sheets and posting a gain of
roughly $5.3 million.

Chairman and Interim Elect, A. Leon Blaser, stated, "Most
of these companies gave no tangible assets and no
operations and have been on our books long enough.  More
such changes will follow shortly as the Board strengthens
the Company's balance sheet, financial condition and
positions itself for its next Acquisition phase."

WasteMasters, Inc. is an emerging growth company in the
field of environmental services.

DLS CAPITAL PARTNERS: Bond Pricing For Week of 12/18
Following are indicated priced for selected issues:

Acme Metal 10 7/8 '07      13 - 16 (f)  
Planet Hollywood 12'05     35 - 38
Atel 0/14 1/2 '04          12 - 14      
Royal Oak 12 3/4 '06       48 - 52
Amer Pad & Paper 13 '05    58 - 60       
Samsonite 10 3/4 '08       84 - 86
Asia P & P 11 3/4 '05      66 - 69       
Service Merchandise 9 '04  19 - 20 (f)
Boston Chicken 7 3/4 '05    4 - 5 (f)    
Sunbeam 0 '18              11 - 12
Brazos 10 1/2 '07           6 - 9 (f)     
Zenith 6 1/4 '11           17 - 20 (f)
Brunos 10 1/2 '05          17 - 19 (f)
Cityscape 12 3/4 '04       14 - 16 (f)
E & S Holdings 10 3/8 '06  47 - 50
Globalstar 11 1/4 '04      72 -73
Hechinger 9.45 '12         66 - 69
Hills 12 1/2 '02           66 - 69
Mobilemedia 9 3/8 '07      10 - 13 (f)
Penn Traffic 9 5/8 '05      7 - 8


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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