TCR_Public/981223.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
    
  Wednesday, December 23, 1998, Vol. 2, No. 249
                 
               Headlines
              
ACME METALS: Final Order For Post-Petition Financing
AHERF: Unpaid Bills May Pose a Threat To Patient Care
ARROW AUTOMOTIVE: Lender Objects To Accountants
ARROW AUTOMOTIVE: Debtor Objects To Committee's Accountants
BARNEY'S: Expects to Emerge From Chap 11 in January

BMJ MEDICAL: Case Summary & 20 Largest Unsecured Creditors
BN1 TELECOMMUNICATIONS: Court Approves Professionals
CAPITAL GAMING: Modifications to Plan of Reorganization
CENTENNIAL COAL: Notice of Commencement of Cases
D&L VENTURE: Insurance Companies Object To Plan

DECORATIVE HOMES: Gets Nod To Sell N.C. Businesses
FOOD COURT ENTERTAINMENT: Notice of Bar Dates
GANTOS INC: Reports Quarter's Results
GREATE BAY: Exclusivity Extended
KOENIG SPORTING: Order Confirms Plan of Liquidation

LIBERTY HOUSE: Applies to Employ PR Consultants
LIVENT INC: Notice of Release of Financial Information
NEXAR TECHNOLOGIES: Details of Chapter 11 Petition
KENNY ROGERS: Franchise Management Moves Toward Purchase
LA VIDA LLENA: Notice of Effective Date

L-BAR PRODUCTS: Employees to Get Back Wages
MERCURY FINANCE: New Agreement To Restructure Company
NEXAR TECHNOLOGIES: Details of Chapter 11 Petition
PEREGRINE INC: Creditors Approve Settlement
PHP HEALTHCARE: Meeting of Creditors Set For January 8

RIO GRANDE: Hearing on Approval of Disclosure Statement
TELEGEN CORPORATION: Rescheduled 341 Meeting
UNISON HEALTHCARE: Overwhelming Support For Plan
WINDSOR ENERGY: Order Grants Exclusivity Extension
WORLDCLASS PROCESSING: Sinks Into Bankruptcy

                  *********

ACME METALS: Final Order For Post-Petition Financing
----------------------------------------------------
Acme Metals Incorporated and its affiliated debtors,
including Alpha tube Corporation filed a motion seeking
authorization for the debtors to obtain post-petition
financing in the form of a revolving credit and letter of
credit facility up to a maximum outstanding principal
amount of $100 million in accordance with the terms of a
revolving credit agreement executed by the debtors and
certain lenders, with BankAmerica Business Credit, Inc.
("BABC") as agent for the lenders.

The court authorizes the Acme Borrowers to borrow and
request the issuance of letters of credit under the New
Post-Petition Loan Documents.    The Acme Borrowers must
give 14 prior day notice to the Committee of any requested
borrowing that would result in the aggregate usage under
the Total Facility increasing from an amount less than $30
million to an amount equal to or greater than $30 million.  
A $3 million carve out for Acme professionals is provided
in the order. With respect to Alpha Tube, the Cash Flow
Agreement is approved.  Alpha tube is granted an allowed
superpriority administrative expense claim senior to all
other administrative expense claims.  The claim shall be
granted against any Acme Borrower to which Alpha Tube
monies are upstreamed during the proceedings in an amount
equal to the net Alpha Tube cash so upstreamed.  The super-
priority claim is subordinate to the claim and liens
granted to the lenders and the carve-out expenses.


AHERF: Unpaid Bills May Pose a Threat To Patient Care
-----------------------------------------------------                   
The Pittsburgh Post-Gazette reports on December 22, 1998
that a glut of unpaid bills at the Allegheny Health,
Education and Research Foundation might pose a threat to
patient care and research at Allegheny General and three
other hospitals the foundation owns in Western
Pennsylvania, lawyers for the hospitals argued in court
papers made public yesterday.

The court filing is the latest development in a growing
fight between the hospitals and creditors to which the
bankrupt foundation owes money - an argument that included
a showdown last week about whom would provide funds to  
make payroll for about 500 AHERF employees -  as the
hospitals try to distance  themselves from their parent
foundation's bankruptcy.

The hospitals' filing from yesterday includes notices from
utility companies warning that gas service, electricity and
even water will be shut off at many of AHERF's medical
offices, where about 120 physicians practice medicine in
this region. The hospitals, known collectively as Allegheny  
University Hospitals, West, said that the bills amount to
more than $6.5  million and are classified as
administrative claims, meaning they have the  highest
priority to be paid.

Tom Chakurda, spokesman for Allegheny University Hospitals,
West said that the offices have not had disruptions in
service.  "We've not experienced any impact because of
these issues," Chakurda said. "Although I'm not aware of
the particulars, obviously we've done some contingency ef
forts to resolve that until the larger issues can be
resolved."

Richard M. Cieri, a lawyer for creditors to which AHERF
owes money, said the creditors will work to resolve the
matter.

The court filing claims that as of Dec. 1 there were $4
million in bills that were more than 30 days past due to
vendors of computer hard ware and software and other
information systems. IBM, for example, was owed more than  
$1.5 million as of Dec. 18; more than half of that was more
than 60 days overdue.

AHERF is also late paying more than $2.5 million in health
insurance premiums and other benefits for workers at the
foundation's bankrupt and non-bankrupt subsidiaries,
according to the hospitals' court filing.
For September, October and November, the hospitals advanced
more than $7.2 million to AHERF to pay for these benefits,
according to  their court filing, money they believe  
should have covered premium costs.

Problems with paying bills also threatens the viability of
AHERF's bankrupt subsidiaries that still support the
hospitals, according to the filing. Key suppliers for
Allegheny University Medical Practices and Allegheny
University  of the Health Sciences have been demanding
prepayment before providing goods or  services to
physicians treating patients and performing research.

Many of those bills have gone unpaid since Dec. 2, when
U.S. Bankruptcy Court Judge M. Bruce McCullough ordered
that AHERF write no more checks without the court's
approval.

Without prompt payment of bills, those physicians might not
be able to treat patients or continue research, according
to the court filing. The filing lists 39 suppliers who have
demanded prepayment of a total of about $50,000, a
seemingly heterogeneous group that ranges from Irvine
Scientific and Biomol Research Laboratories to Westermans
True Value.

The hospitals have asked McCullough to issue an emergency
motion to compel AHERF to pay the bills.  It is the
hospitals' second attempt this month to raise the issue of
unpaid bills in bankruptcy court. Earlier in December, the
hospitals complained that AHERF had failed to pay about $44
million in important hospital bills, but the chief
financial officer for the hospitals lowered that estimate
last week to about $12 million.
    

ARROW AUTOMOTIVE: Lender Objects To Accountants
-----------------------------------------------
BankBoston N.A. and Norwest Business Credit, Inc. and
BankBoston, N.A. as agent for the Lenders objects to
allowance of the application for approval of retention of
accountants and financial advisors by the Committee of
Unsecured Creditors of Arrow Automotive Industries, Inc.

The Lenders and the agent state that the Committee does not
address whether or to what extent the Committee has
explored a sharing of the services of The Recovery Group
with the debtor.  The employment of separate professionals
in this case does not appear necessary.  TRG's knowledge of
the debtor's affairs is broad, and the expense to duplicate
such knowledge promises to be significant.  Grave concerns
have already been raised concerning the ability of the case
to support the compensation of professionals already
employed by the debtor and the Committee.  It would appear
more efficient to formalize the sharing process of TRG,
instead of involving a new professional group.
     

ARROW AUTOMOTIVE: Debtor Objects To Committee's Accountants
-----------------------------------------------------------
The debtor, Arrow Automotive Industries, Inc., objects to
the application for approval of retention of accountants
and financial advisors by the Committee of Unsecured
Creditors.  The Committee seeks to retain
PricewaterhouseCoopers to provide the Committee what the
debtor describes as an extremely broad range of accounting
and financial services.  Many, if not all of these services
substantially overlap with the services that The Recovery
Group already is providing to the debtor's estate.  
Therefore, the debtors argue that the retention of
PricewaterhouseCoopers would confer little or no benefit on
the debtor's creditors and accordingly should be denied.


BARNEY'S: Expects to Emerge From Chap 11 in January
---------------------------------------------------              
Luxury retailer Barney's Inc. on Monday said it  
expected to emerge from bankruptcy in January 1999, three
years after it first filed for Chapter 11 protection.

The upscale clothier said its second amended joint plan of
reorganization was approved by the U.S. Bankruptcy Court
for the Southern District of New York on December 21, 1998.
Under the terms of the plan, Bay Harbour Management and
Whippoorwill Associates will control a majority of the
outstanding stock of Barneys New York, Inc.  The Company's
Board of Directors will be comprised of representatives of
Bay Harbour and Whippoorwill, who will represent a majority
of the Board, Thomas C. Shull, the Company's Chief
Executive Officer, Yasuo Okamoto, a representative  
of Isetan, along with Allen Questrom, Robert Tarr, and Carl
Spielvogel.  In June 1997, the company closed many of its
stores, including its hallmark downtown Manhattan location.
The retailer, founded in 1923 by Barney Pressman and later
operated by his grandsons, had been plagued by a reputation
for weak management and criticized for spending too much
for expansion in recent years.

While operating under bankruptcy the retailer has rebuffed
buyout offers from retailers such as Hong Kong's Dickson
Concepts Ltd.

The Company has entered into a commitment letter for a $120
million credit facility with a group of lenders for whom
Citibank acts as agent. Barney's, Inc. employs  
approximately 1,500 associates in seven stores in New York
City and Manhasset, New York; Beverly Hills, California;
Chicago, Illinois; Chestnut Hills, Massachusetts; and
Seattle, Washington; 13 outlet stores; and corporate
offices  in New York and a distribution center in
Lyndhurst, New Jersey.


BMJ MEDICAL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor:  BMJ Medical Management Inc.
         4800 North Federal Highway
         Suite 101E
         Boca Raton, Florida 33431

Type of Business: BMJ Medical Management, Inc. is
principally a physician practice management company that
provides management services to physician practices that
focus on musculoskeletal care which involves the medical
and surgical treatment of conditions relating to bones,
muscles and related connective tissues.
Court: District of Delaware

Case No.: 98-2799    Filed: 12/17/98    Chapter: 11

Debtor's Counsel: Jeff J. Marwil
                  Katten Muchin & Zavis
                  525 West Monroe
                  Suite 1600
                  Chicago, Illinois 60661
                  (312) 902-5200

Total Assets:           $119,143,000 (10/31/98)
Total Liabilities:       $47,342,752 (12/15/98)

No. of shares of preferred stock
Series A 1,473,684 Series B 2,323

No. of shares of common stock 17,790,557

20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Seaview Orthopedic & Medical       Debentures    1,280,800
Community Orthopedics              Debentures      603,750
O'Sullivan Graev                   Trade           554,274
Ernst & Young LLP                  Trade           458,030
Reeve Knight                       Trade           107,000
Lehman                             Settlement      200,000
Broward Orthopedic                 MSA Contract    255,785
G. Arango MD                       Sec.510(b)      185,200
T. DiBenedetto MD                  Sec.510(b)      185,200
N. Stansbury MD                    "               185,200
D. Sussman MD                      "               185,200
P. Ververli MD                     "               185,200
Lighthouse Orthopedic              MSA Contract    148,451
S.P. Hirsch                        Debentures      129,500
S. Berkowitz, MD                   Debentures      128,550
A. Vasen,MD                        Debentures      128,550
R. Dennis MD                       Debentures      128,550
Roy Mittman MD                     Debentures      128,550
Jones, Day, Reavis & Pogue         Trade           120,000
Orthopedic Surgical                MSA Contract     98,073


Subsidiaries Filing Chapter 11 Simultaneously: BMJ of
Chandler, Inc., Orthopedic Management Network, Inc., BMJ
Brog, Inc., BMJ of Nevada, Inc. and Valley Sports Surgeons
Inc.


BN1 TELECOMMUNICATIONS: Court Approves Professionals
----------------------------------------------------
The debtor, BN1 Telecommunications applied to retain
PricewaterhouseCoopers LLC as the financial advisor for the
debtor.  The court ordered that effective from the date of
filing the application the debtor is authorized to retain
PricewaterhouseCoopers to serve as its financial advisor on
the matters in connection with the case and on the terms
and conditions as more fully provided in the application.

The Court also authorized the employment of Scott H. King
as the Designated Representative of the debtor, effective
as of the date of application by the debtor.  


CAPITAL GAMING: Modifications to Plan of Reorganization
-------------------------------------------------------
Capital Gaming International, Inc. reports to the SEC that
the company and U.S. Bank Trust National Association, as
Indenture Trustee, filed with the United States Bankruptcy
Court for the District of New Jersey for, among other
things, an Order Approving Modifications to the Debtor's
Plan of Reorganization and a Supporting Joint Motion. On
November 16, 1998 the Court ordered the approval of the
proposed modifications to the Debtor's First Amended and  
Modified Plan of Reorganization dated March 19, 1997 as set
forth in the Joint Motion. (Copyright States News Service,
States SEC-12/21/98)


CENTENNIAL COAL: Notice of Commencement of Cases
------------------------------------------------
Centennial Coal a/k/a Centennial Resources Inc. and its
affiliated debtors filed voluntary petitions for relief
under Chapter 11 on October 13, 1998.

A meeting of creditors is scheduled for January 8, 1998 at
10:00 AM at the J. Caleb Boggs Federal Building, 844 King
Street, Room 2313, Wilmington, Delaware 19801.


D&L VENTURE: Insurance Companies Object To Plan
-----------------------------------------------
Phoenix Home Life Mutual Insurance Company and The Standard
Fire Insurance Company object to and contest the adequacy
of the information contained in the Disclosure Statement
with respect to he plan of reorganization of the debtors,
D&L Venture Corp., et al.

The insurance companies state that the Disclosure Statement
fails to disclose the treatment of the Insurance Companies'
Secured Claim; that it fails to adequately disclose the
treatment of the Class 1 Claim; it fails to adequately
disclose how the plan will be funded; it fails to recite
the financial assumptions on which the plan is based and
fails to include any financial projections evidencing the
debtors' ability to service their anticipated debt; it
fails to disclose the amount, nature and treatment of
certain classes of claims.; fails to disclose information
about executory contracts to be assumed and assigned to New
DVC and the plan discriminates unfairly against Class 4 and
violates the absolute priority rule.


DECORATIVE HOMES: Gets Nod To Sell N.C. Businesses
--------------------------------------------------
The U.S. Bankruptcy Court in Manhattan has authorized
Decorative Home Accents Inc. to sell its Superba Printworks
and Rug Barn Inc. businesses. The home accessories
manufacturer received two offers for each of the businesses
but accepted Prints USA LLC's $1.8 million offer for
Superba and Thantex Holdings Inc.'s bid of more than $7.5
million for Rug Barn because neither was contingent on
financing. Under a Dec. 10 purchase agreement, which
supersedes an earlier agreement, Prints USA, whose majority
shareholder owned the unit before DHA, purchased 35 acres
of land in Mooresville, N.C., with two buildings totaling
450,000 square feet, plus all equipment, supplies, and
works-in-progress as of closing. Terms of the Rug Barn deal
require closing to occur by Dec. 31. The transaction
includes 34.5 acres of land and a 334,000 square-foot
building in Abbeville, S.C., and all related intangibles,
equipment, accounts receivable, and inventory on hand at
closing. (The Daily Bankruptcy Review and ABI Copyright c
December 22, 1998)


FOOD COURT ENTERTAINMENT: Notice of Bar Dates
---------------------------------------------
In the case of Food Court Entertainment Network, Inc., the
court entered an order establishing January 31, 1999 as the
general bar date.


GANTOS INC: Reports Quarter's Results
-------------------------------------
Gantos Inc. reports in its quarterly report for the period
ended October 31, 1998 that net sales for stores and
comparative stores for the thirteen weeks ended October
31, 1998 were approximately $35.4 million, substantially
the same as net sales of approximately $35.5 million in the
same period of the prior fiscal year. The Company opened a
new store in April 1997 and another in October 1997.  One
store was closed in January 1998.

Net sales for the thirty-nine weeks ended October 31, 1998
were approximately $106.3 million, a decrease of
approximately 10.6 million, or 9.1% compared to
net sales of approximately $116.9 million in the same
period of the prior fiscal year. Net sales for stores in
operation throughout both periods decreased 9.4%.The 9.4%
decrease in comparable store sales is comprised of a 7.3%
decrease in unit sales(partially due to difficulties in
obtaining merchandise from vendors resulting from the
Company's current financial condition and the related
tightening of trade credit) and a 2.2% decrease in average
sales dollars per unit, partially offset by a 0.2% increase
due to a change in merchandise mix.

The company reports a net loss of approximately $4.0
million, or $0.52 per share, for the thirteen weeks ended
October 31, 1998, compared to a net loss of approximately
$3.4 million, or $0.45 per share, in the same period of the
prior year. For the thirty-nine weeks ended October 31,
1998, the Company reported a net loss of approximately $9.7
million, or $1.27 per share, compared to net loss of
approximately $6.6 million, or $0.88 per share, in the same
period of the prior year.


GREATE BAY: Exclusivity Extended
--------------------------------
In the case of Greate Bay Hotel and Casino, Inc., GB
Holdings, Inc. and GB Property Funding Corp., the ocurt
entered an order extending the debtors' exclusive period of
time within which to file a plan of reorganization to and
including January 11, 1999.

The debtor's period within which to solicit acceptances of
the plan is extended for an additional 60 days to and
including March 12, 1999.


KOENIG SPORTING: Order Confirms Plan of Liquidation
---------------------------------------------------
The court finds in its order of confirmation of the plan of
reorganization of Koenig Sporting Goods, Inc. that the plan
complies with all applicable provisions of the Bankruptcy
Code.

The plan provides for liquidation of the estate's assets
and distribution of the proceeds derived from such assets
in accordance with the hierarchy of distribution provided
in Title 11.


LIBERTY HOUSE: Applies to Employ PR Consultants
-----------------------------------------------
Liberty House, Inc. applies for court authority to employ
Communications-Pacific, Inc. as its public relations
consultant.  During the one year prior to the filing of the
Chapter 11 petition, Communications-Pacific received
$112,247 from the debtor for services rendered to the
debtor.  Communications-Pacific has a pre-petition claim in
the amount of $8,542. against Liberty House.  
Communications-Pacific's compensation will be based on its
standard hourly rates.


LIVENT INC: Notice of Release of Financial Information
------------------------------------------------------
In the case of Livent (U.S.) Inc., et al, debtors, in
connection with several agreements entered into between
Livent, Inc. and certain advisors to an unofficial
committee of unaffiliated holders of the company's 9-3/8%
Senior Notes due 2004, the Company has provided non-public
information to those advisors who in turn provided such
information to some members of the unofficial committee.

In accordance with one agreement, the debtors are releasing
the following information on a historical basis for the
nine months ended on September 30, 1998 and on a projected
basis for 1999.

Livent reports that with respect to Phantom of the Opera
playing in Toronto, average weekly performance revenues
were approximately Cdn.$658,000 and average weekly
operating profit was approximately Cdn. $19,000.  The
debtors project that in 1999, average weekly performance
revenues will be approximately Cdn.$792,000 while average
weekly operating profit will be approximately Cdn.$104,000.

With respect to Ragtime in New York, for the nine months
ended September 30, 1998, average weekly performance
revenues totaled approximately US $893,000 and average
weekly operating profit totaled US $127,000.  Livent
anticipates those numbers to increase respectively to
$897,000 and $240,000.

With respect to Fosse, for the three months ended September
30, 1998, average weekly performance revenues were
approximately US $686,000 and average weekly operating
profit was approximately US $225,000 The debtors project
that in 1999 those numbers will increase respectively to US
$649,000 and US $165,000.


NEXAR TECHNOLOGIES: Details of Chapter 11 Petition
--------------------------------------------------
Nexar Technologies Inc.'s Dec. 17 Chapter 11
petition estimates assets of just over $8 million and
liabilities of about $9 million.  The Southborough, Mass.-
based company, which manufactures personal computers, has
between 100 and 199 creditors and predicted that funds will
be available for distribution to unsecured creditors.  
Palomar Medical Technologies Inc., Clearwater Fund IV,
Leonard Donadio (contingent shareholder), and Nexar Chief
Executive Albert Agbay each own or control more than 5% of
the company's voting securities.  Nexar has 72,145
preferred shares and 12,265,125 common shares, according to
the petition. (Federal Filings Inc. 22-Dec-98)


KENNY ROGERS: Franchise Management Moves Toward Purchase
--------------------------------------------------------                           
Franchise Management International, Inc.(OTC BB: FMII),
reported today that the Bankruptcy Court for the Middle
District of North Carolina has approved the  second amended
joint disclosure statement for the Roasters Corp. and
Roasters  Franchise Corp. Chapter 11 bankruptcy, naming
Franchise Management International Inc. (FMI) as the
purchaser of Kenny Rogers Roasters.

The disclosure statement and plan of reorganization will be
submitted for vote to the various classes of creditors,
franchisees, and shareholders, and will be mailed shortly.

FMI's proposal to purchase the franchise rights and
intellectual property rights for the 83-store Kenny Rogers
Roasters chain would enable FMI to continue the Roasters
restaurant concept as a part of the overall Roasters plan
of reorganization. The confirmation hearing is set for mid-
February.

"We are delighted we've moved closer toward the acquisition
of the Roasters chain," says Anthony Foster, founder and
CEO of FMI. "Kenny Rogers Roasters is a major step toward
making FMI a multi-concept franchisor. We believe we can
build Roasters sales and grow the chain through co-branding
with other complementary concepts. We are looking forward
to meeting with the franchisees personally in January to
discuss future growth and development plans. We share with
Roasters a focus on taste, quality, and value, which helps
make this acquisition a perfect match for our skills and
expertise."

Franchise Management International, Inc. was founded in
1997 for the purpose of acquiring, managing, and
franchising quick service restaurants and has been  
actively seeking multiple restaurant concepts.

"Our first step toward that goal was accomplished in May
of this year, when we acquired Juicy Lucy's, a 'cut above'
hamburger and specialty sandwich chain based primarily in
southwestern Florida," continues Foster. "Step number two  
will be the acquisition of another restaurant concept which
we will announce next week. We're hoping that step number
three will be when Kenny Rogers Roasters joins the FMI
family."


LA VIDA LLENA: Notice of Effective Date
---------------------------------------
The Effective Date as defined in the Amended Plan of
Reorganization of La Vida Llena which was confirmed by the
Bankruptcy Court on December 1, 1998, occurred on December
15, 1998 and the plan became effective as of December 15,
1998.


L-BAR PRODUCTS: Employees to Get Back Wages
-------------------------------------------
The Spokesman Review reports on December 18, 1998                    
that employees who were stiffed seven years ago when the L-
Bar Products magnesium recycling plant here went bankrupt
will get some or all of their back wages in time for
Christmas.

The Northwest Alloys magnesium plant at nearby Addy, Wash.,
announced Thursday it will pay the back wages as part of a
proposal to settle the complicated bankruptcy case.

Northwest Alloys hired L-Bar to process magnesium-smelter
waste and spent hundreds of thousands of dollars to
bankroll the recycling operation. The bankruptcy trustee
and L-Bar's parent company, Reserve Industries of  
Albuquerque, N.M., sued Alloys for an alleged breach of
contract.

The former employees are "very pleased" with the offer,
their Spokane attorney, Rebecca Coufal said. One, who has
just been laid off from another job, was especially happy,
she said.

"Several of them have said this is found money," Coufal
said. "They had given up on it."

The deal calls for the ex-employees to "sell" their claims
to Northwest Alloys for a maximum of $2,000 apiece - a
figure based on U.S. Bankruptcy Court rules for "priority"
claims. If any employees can't be found or if they reject
the offer, their share of the $92,691 pot will be used to
pay additional back wages to other employees.

Coufal said the offer will cover all that is owed to most
of the former employees, but two dozen of them have
additional claims ranging from about $20 to $8,200 for a
total of $48,600. Many of those with additional claims are  
managers who continued working after the bankruptcy
petition was filed.

Northwest Alloys attorney Bennett Young said the company
agreed to pay the employees separately because "there were
so many claims in front of them in the bankruptcy that,
unless we put more money into the bankruptcy than we
wanted  to, they would not be paid."

Young said the bankruptcy settlement still needs to be
ironed out and creditors have to be notified, but the
Bankruptcy Court could act on the plan by mid-January.

Meanwhile, Northwest Alloys has assumed responsibility for
an environmental cleanup of the L-Bar site that could
eventually cost about $10 million. Spokesman Ozzie
Wilkinson said Alloys already has shipped about 50,000 tons
of "flux bar" waste to a nonhazardous waste landfill at
Arlington, Ore.

He said more than 60,000 tons of the salty material still
must be removed, and the cleanup could take two or three
more years. Cowles Publishing Company - Spokesman Review-
12/18/98


MERCURY FINANCE: New Agreement To Restructure Company
-----------------------------------------------------
Talks among the major parties in Mercury Finance Co.'s
Chapter 11 case have resulted in a new agreement to
restructure the subprime auto lender.  Terms of the
proposed deal remain under wraps while the parties are in
the process of finalizing the settlement.  Mercury expects
to file an amended plan of reorganization and disclosure
statement by today that would incorporate the global
settlement.  Meanwhile, the court has scheduled a Dec. 28
hearing to consider approval of the latest disclosure
statement.  As reported, Mercury's first amended disclosure
statement won approval on Oct. 15, but talks regarding the
proposed plan and the potential settlement of ongoing
securities litigation continued in an effort to win the
support of shareholders and securities claimants. (Federal
Filings Inc. 22-Dec-98)


NEXAR TECHNOLOGIES: Details of Chapter 11 Petition
--------------------------------------------------
Nexar Technologies Inc.'s Dec. 17 Chapter 11
petition estimates assets of just over $8 million and
liabilities of about $9 million.  The Southborough, Mass.-
based company, which manufactures personal computers, has
between 100 and 199 creditors and predicted that funds will
be available for distribution to unsecured creditors.  
Palomar Medical Technologies Inc., Clearwater Fund IV,
Leonard Donadio (contingent shareholder), and Nexar Chief
Executive Albert Agbay each own or control more than 5% of
the company's voting securities.  Nexar has 72,145
preferred shares and 12,265,125 common shares, according to
the petition. (Federal Filings Inc. 22-Dec-98)


PEREGRINE INC: Creditors Approve Settlement
-------------------------------------------
Creditors for bankrupt auto supplier Peregrine Inc. have
approved a settlement with the company and General Motors  
Corp. The agreement marks the acceptance of Peregrine's
out-of-court reorganization plan. Under the deal, GM will
pay up to $20 million to pay off supplier claims frozen by
Peregrine last spring. Suppliers will receive about  
one-third of the frozen debt owed. Peregrine is closing
plants in Flint and Livonia, but workers will be rehired by
GM.


PHP HEALTHCARE: Meeting of Creditors Set For January 8
------------------------------------------------------
A meeting of Creditors in the case of PHP Healthcare
Corporation is set for January 8, 1999 at 1:30 PM at 844
King Street Room 2313 Wilmington, Delaware.  The Chapter 11
case of the debtor was filed on November 19, 1998.

Attorney for the debtor is:

Thomas L. Ambro
PO Box 551
One Rodney Square
Wilmington, Delaware 19899
(302) 651-7612


RIO GRANDE: Hearing on Approval of Disclosure Statement
-------------------------------------------------------
In the case of Rio Grande Inc., debtors, a hearing will be
held on approval of the Disclosure Statement on January 13,
1999 at 10:30 AM at S.A. Courtroom #1, U.S. Post Office
Building, 615 E. Houston St., San Antonio, Texas 78205.


TELEGEN CORPORATION: Rescheduled 341 Meeting
--------------------------------------------
The new date for the 341 hearing in the case of Telegen
Corporation is January 5, 1999 at 11:00 AM located at the
US Trustees Office, 250 Montgomery St. Suite 1000.


UNISON HEALTHCARE: Overwhelming Support For Plan
------------------------------------------------
Unison HealthCare Corporation announced today that the
Company's various classes of voting creditors voted on
November 30, 1998, to approve the Company's Plan of  
Reorganization.

The company is currently expecting confirmation of our Plan
in January 1999. Unison HealthCare Corporation is a
provider of quality long-term and specialty healthcare
services. The Company provides a broad range of healthcare
services including nursing care, rehabilitation therapy,
pharmacy and other specialized services, primarily to
subacute patients. The Company currently operates 39  
skilled nursing facilities and four independent living
facilities, representing 4,190 beds.


WINDSOR ENERGY: Order Grants Exclusivity Extension
--------------------------------------------------
On December 15, 1998 the court entered an order extending
the exclusive periods of the debtor, Windsor Energy US
Corporation.

The exclusive period for the debtor to file a plan of
reorganization is extended until and through March 15,
1999, and the exclusive period for the debtor to seek
acceptances of a plan of reorganization is extended until
and through May 17, 1999.


WORLDCLASS PROCESSING: Sinks Into Bankruptcy
--------------------------------------------
The Pittsburgh Post Gazette reports on December 19, 1998
that the one-two punch of a protracted legal fight with
former management and a downturn in the domestic steel
business has drained the financial resources of WorldClass
Processing, forcing the six-year-old Ambridge steel
processor into bankruptcy.

The company, which once envisioned plans for a $440 million
minimill, filed for Chapter 11 bankruptcy yesterday, saying
it owed more than $30 million to suppliers and lenders and
that it didn't have enough cash to meet all its  
commitments. It said its assets totaled $25.5 million.

WorldClass said the Chapter 11 filing would buy it time to
reorganize agreements with its lenders and was done with
the support of its major lender, AT&T Capital. The finance
company has provided a $500,000 loan that WorldClass said
would be sufficient to maintain operations through June.

Chief Financial Officer Jack Teitz said the morass of
litigation confronting the company, when combined with a
sharp drop in orders for processed steel, "was more than
this little company could support.'" Employment has dropped
from 80 people this summer to 60, he said, while the bills
over a continuing legal battle related to the ouster of
former President Matthew Botsford Jr. and Chief Operating
Officer Edward Neese have topped $2 million and continue to
climb.

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