TCR_Public/981229.MBX        T R O U B L E D   C O M P A N Y   R E P O R T E R
     
          Tuesday, December 29, 1998, Vol. 2, No. 252

                           Headlines

ACCESS BEYOND: Schedules & Statements to be Filed January 8
AMERICAN RICE: October Operating Results
AMERITRUCK DISTRIBUTION: Reduces Secured Debt by $3.7 Million
AMERITRUCK DISTRIBUTION: Walks Away From Mercedes Benz Leases
ARIMETCO, INC.: Third Amended & Restated Plan Proposed

ARROW AUTOMOTIVE: Urges Limits on PricewaterhouseCoopers' Service
CELLPRO, INCORPORATED: Committee Retains Cairncross as Counsel
CODED COMMUNICATIONS: Court Approves Interim Cash Collateral Use
COMMERCIAL FINANCIAL: Court Okays Amended Collection Contracts
CRIIMI MAE: Criimi Mae Management, Inc., Retains Separate Counsel

DIRECT TRANSIT: Streamlining Resolution of Disputed Claims
FASTCOMM COMMNUNICATIONS: Company Comments About Amended Plan
FLUSHING HOSPITAL: New York Hospital Weighing Takeover Plans
GREATE BAY: Seeks Court Approval To Hire New CEO
GULFSIDE CASINO: Bankruptcy Cases Dismissed Following Copa Sale

HOSPITAL STAFFING: Tennessee Resolves Disputes with Government
HOSPITAL STAFFING: Debtors Oppose Creditors' Auction Proposal
IMARK TECHNOLOGIES: Files Plan & Disclosure Statement
INTERNATIONAL WIRELESS: Circulating Disclosure Statement
JOTAN, INC.: Obtains Interim Authority to Use Cash Collateral

JUMBOSPORTS INC.: Files Chapter 11 Petition
KNIGHT EQUIPMENT: Committee Retains Oppenheimer Blend as Counsel
L.A. GEAR: Professionals' Final Applications for Compensation
LEVITZ FURNITURE: Selling Springdale Property for $5.3 Million
LIBERTY HOUSE: 365(d)(4) Extension Requested to May 31, 1999

MARTIN COLOR-FI: Authority to Use NationsBank's Cash Collateral
MCGINNIS PARTNERS: Amends Schedules of Assets and Liabilities
MOBILEMEDIA COMMUNICATIONS: Putnam-Led Group to Fight Plan
NU-KOTE HOLDING: Phillip L. Theodore as Responsible Officer
NU-KOTE HOLDING: Open-Ended 365(d)(4) Extension Requested

OILEX, INC.: Case Converts from Chapter 11 to Chapter 7
PEGASUS GOLD: Harrison Goldin Approved as Special Consultant
PHILIP SERVICES: Carl Ichan Threatening to Force Bankruptcy
PHP HEALTHCARE: Debtor's Motion to Terminate 401(k) Plan
PHP HEALTHCARE: Sells Interest in Virginia Chartered Health Plan

RAND ENERGY: Rejecting Shell Western Lease for Better Deal
READING CHINA: Logan & Company Appointed As Claims Agent
REGIONAL HEALTHCARE: Acquired by Health Management Associates
RIO GRANDE: Cox & Smith Approved as Debtor's Counsel
SOUTHERN PACIFIC: CIBC Oppenheimer Advises Creditors' Committee

SUNBELT NURSERY: Minor Modifications to Plan of Liquidation
TIE/COMMUNICATIONS: January 20 Disclosure Statement Hearing
UNISON HEALTHCARE: Creditors Vote to Accept Debtors' Plan
UNITED FINANCIAL: Objection to Entry of Final Decree
VAN LEUNEN'S: Balloting Commences on Liquidating Plan

VITANTONIO PRODUCTS: Involuntary Petition Filed
WESTMORELAND COAL: Court Dismisses Chapter 11 Cases

Meetings, Conferences and Seminars

                           *********

ACCESS BEYOND: Schedules & Statements to be Filed January 8
-----------------------------------------------------------
Accepting the Debtors' arguments that they need additional time
to file their Schedules of Assets and Liabilities and Statements
of Financial Affairs, Judge Walrath granted Access Beyond
Technologies, Inc., and its Hayes-related debtor-affiliates a
further extension of time, pursuant to Rule 1007 of the Federal
Rules of Bankruptcy Procedure, through January 8, 1999.


AMERICAN RICE: October Operating Results
----------------------------------------
In its Monthly Operating Report filed with the Bankruptcy Court
in Corpus Christi for the month ending October 31, 1998, American
Rice, Inc., reports a $2.4 million net loss on $25.1 million in
revenues.  


AMERITRUCK DISTRIBUTION: Reduces Secured Debt by $3.7 Million
-------------------------------------------------------------
The Honorable Harold C. Abramson approved a $3.7 million sale of
trailers by AmeriTruck Distribution Corp. to Transport
Investments, L.L.C.  The proceeds of the sale will be used to
reduce secured debts owed to FINOVA Capital Corporation and
HighwayMaster Corporation.


AMERITRUCK DISTRIBUTION: Walks Away From Mercedes Benz Leases
-------------------------------------------------------------
To reduce its monthly lease payments by $136,662 per month,
AmeriTruck Distribution Corp. moves the bankruptcy court in
Dallas for authority to reject 104 tractor trailer leases with
Mercedes Benz Credit Corporation.  The Debtor indicates that
Mercedes was unwilling to make any meaningful lease concessions.  
The Debtor continues to negotiate concessions with other lessors.


ARIMETCO, INC.: Third Amended & Restated Plan Proposed
------------------------------------------------------
Arimetco, Inc., obtained approval of its Supplemented Second
Amended and Restated Disclosure Statement filed in support of its
Third Amended and Restated Plan of Reorganization dated
December 4, 1998.  

The Plan contemplates full repayment of creditors' claims in
accordance with the statutory priority scheme from the proceeds
of sales of the Debtor's Mining Properties which, the Debtor
believes, will exceed the Company's debt obligations.  The
Creditors' Committee will continue to exist following
confirmation and will work with the Reorganized Debtor to
aggressively market and sell the Mining Properties.  

Creditors must cast their ballots to accept or reject the
Debtor's plan by January 6, 1999, to have them counted; the
bankruptcy court in Tucson will consider confirmation of the Plan
at a hearing on January 13, 1999.  


ARROW AUTOMOTIVE: Urges Limits on PricewaterhouseCoopers' Service
-----------------------------------------------------------------
Concerned about duplication of services by multiple professionals
retained in its chapter 11 case pending before the Bankruptcy
Court in Boston, Arrow Automotive Industries, Inc., asks that the
scope of services to be provided by PricewaterhouseCoopers to the
Official Committee of Unsecured Creditors be limited to exclude
services already provided by the Company's accountants and
financial advisors.  

The Company has no objection to paying for the Committee to
obtain advice from an independent financial advisors nor with
PricewaterhouseCoopers' competence.  Rather, the Debtors do not
want to pay for two financial advisors to produce the same
reports from the same source documents, arguing that financial
reporting costs will double without any corresponding benefit.


CELLPRO, INCORPORATED: Committee Retains Cairncross as Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Cellpro,
Incorporated, has selected the Seattle-based law firm of
Cairncross & Hempelmann, P.S., as its counsel.  John R. Rizzardi,
Esq., leads the engagement.  


CODED COMMUNICATIONS: Court Approves Interim Cash Collateral Use
----------------------------------------------------------------
Judge Walrath granted interim authority to Coded Communications,
Inc., and its debtor-affiliates, to continue using cash
collateral securing approximately $487,000 of pre-petition
obligations to Comerica Bank-California and Renaissance Capital
Partners, II, Ltd.  Judge Walrath has directed that the Lenders
will receive dollar-for-dollar replacement liens as cash
collateral is used to pay ordinary course post-petition expenses.   
The Debtors are prohibited, however, from using any of the
Lenders' cash collateral to make payments or distributions to
Hugo R. Camou or any of his companies or insiders thereof.

Judge Walrath will consider entry of a final cash collateral
order on January 5, 1999, in Wilmington.


COMMERCIAL FINANCIAL: Court Okays Amended Collection Contracts
--------------------------------------------------------------
Chief Bankruptcy Judge Dana L. Rasure, Northern District of
Oklahoma, last week ruled that Commercial Financial Services
could amend contracts calling for it to buy more bad credit card
debt, and in return, she asked the company for assistance in
halting calls to the court from the debt collection agency's
3,710 employees, according to The Daily Oklahoman.  Commercial
Financial Services and its subsidiary, CF/SPC NGU Inc., filed
chapter 11 on Dec. 14, and CFS employees have been jamming the
bankruptcy court's phone lines with questions about the case
since the filing.  Judge Rasure approved the amended contracts
for three categories through April 30.  The categories include
MBNA America Bank of Delaware, the largest debt seller with some
specific contract clauses; a group of other institutions with
similar contracts; and three other companies that have not yet
agreed to the amendment.  Creditors in the third category may
object to the terms if they are substantially different from
those of the other categories.  Prior to its chapter 11 filing,
NGU would buy the bad debt, some under a guarantee from CFS.
Typically the contract spelled out what type of accounts would be
offered monthly and how much would be paid. The contract also
would provide the period in which CFS or its subsidiary would be
the only company permitted to buy the debt and when they would
have to buy all the debt offered.  (ABI 28-Dec-1998)


CRIIMI MAE: Criimi Mae Management, Inc., Retains Separate Counsel
-----------------------------------------------------------------
Criimi Mae Management, Inc., has sought and obtained authority
from the Honorable Duncan W. Keir to employ the the Rockville,
Maryland-based law firm of Shulman, Rogers, Gandal, Pordy &
Ecker, P.A., as its legal counsel.  Morton A. Faller, Esq., leads
Shulman Rogers' engagement by Criimi Mae Management, Inc.  

Criimi Mae, Inc., will continue to be represented separately by
the law firms of Akin, Gump, Strauss, Hauer & Feld, L.L.P. and
Venbl, Baetjer & Howard.


DIRECT TRANSIT: Streamlining Resolution of Disputed Claims
----------------------------------------------------------
Direct Transit, Inc., its Official Committee of General Unsecured
Creditors and its Official Committee of Leasehold Claimants tell
Judge Edmonds that of 2,174 scheduled and filed claims,
objections to some 700 claims are anticipated.  To conserve
estate assets and reduce the burden on the Court, the Debtor and
the Committees ask the Court to permit the parties to enter into
agreements resolving disputed claims without further court
authority where the amount in controversy is less than $100,000.


FASTCOMM COMMNUNICATIONS: Company Comments About Amended Plan
-------------------------------------------------------------
FastComm Communications Corp. (OTC:FSCX) yesterday announced its
filing of an amended plan of reorganization with the United
States Bankruptcy Court for the Eastern District of Virginia.  

As reported in yesterday's edition of the TCR, the Amended Plan
proposes to pay (i) a 12% cash dividend on unsecured claims
shortly after the Effective Date; (ii) a 15% cash dividend after
reconciliation of all claims; and (iii) a Debenture equal to 75%
of the face amount of each claim.  Pre-petition FastComm
Shareholders remain unimpaired.

The Company reminded parties in interest in yesterday's news
release that its original plan was filed on October 21, 1998.  
The Company has been operating under Chapter 11 protection since
it was forced, by enforcement activities of a judgment creditor,
to file a voluntary petition for reorganization on June 2, 1998.

The amended plan, the Company said, incorporates a number of the
recommendations made by the creditors committee.  Most notably,
the plan provides for an additional equity investment in the
Company of $1 million that will be used to expedite initial  
payments to allowed creditors.  Many of the Company's employees
are participating in this placement.  "Our plan provides for full
payment to all general unsecured creditors," said Peter C.
Madsen, FastComm president, "and thus preserves the position of  
current shareholders.  It is gratifying to see so many FastComm
employees participate in our plan."

As previously indicated, the Company believes that Chapter 11 has
negatively impacted its selling efforts.  As such, the Company
intends to pursue the confirmation process on an expedited basis.

The Company's plan was filed electronically and is available on
the World Wide Web at:

             http://www.vaeb.uscourts.gov/index.html

Interested parties, FastComm explains, may "view the disclosure
statement and plan by contacting this site and clicking
Bankruptcy Cases; search by name; enter name 'FastComm'; case
number; view docket."


FLUSHING HOSPITAL: New York Hospital Weighing Takeover Plans
------------------------------------------------------------
Newsday reports that two scenarios have emerged in recent weeks
to keep Queens oldest hospital, Flushing Hospital Medical Center,
alive.  Flushing filed for chapter 11 protection from creditors
in June, 1998.  

One plan, Newsday related, proposes a takeover by the New York
Hospital Medical Center of Queens, which manages Flushing.  
Doctors, creditors and union representatives who don't like the
service cuts and layoffs on which that proposal is premised
turned to Jamaica Hospital Medical Center for help.  Jamacia,
according to its lawyer, is drafting a plan to restructure
Flushing's debt and take over its management with few service
cuts and layoffs.

"We want to make a proposal that will keep Flushing open as an
independent, community hospital," said Ted Berkowitz, an attorney
for Jamaica Hospital, which could release its plan as early as
this week.  He said Jamaica Hospital is negotiating with the
"largest independent health facility in the city" to form a
partnership for the venture. Berkowitz would not discuss details,
but others involved in the negotiations said the proposal would
keep most of the 250 beds and 1,400 employees at Flushing
Hospital, which was founded in 1884.

New York Hospital's proposal offers buy some of Flushing's
equipment and services for "up to $ 25 million over time,"
according to a two-page memo given to Flushing trustees and
creditors earlier this month.  NYHQ would then lease the Flushing
Hospital building at Parsons Boulevard and 45th Avenue for three
years, "with an option to extend."  It doesn't specify how many
beds would be kept open and says Flushing workers would have to
apply to NYHQ for new jobs.  The memo also says NYHQ would
terminate all union contracts and pay unsecured creditors 10
percent of what they're owed.  Flushing Hospital would be
disbanded as a separate corporation, but its trustees could join
the NYHQ board, according to the memo.

"Because of Flushing's huge debt (the hospital faced $84 million
in debts and $41 million in unpaid medical malpractice expenses
at its June 2 Petition Date) and its inability to support all the
programs that are currently there, we feel this is the best way
to keep it open," Brian Salisbury, a spokesman for both hospitals
told Newsday.  

Lawrence Handelsman, Esq., of Stroock & Stroock & Lavan LLP, in
New York City represents Flushing Hospital.  The Honorable Conrad
Duberstein presides over Flushing's chapter 11 case.


GREATE BAY: Seeks Court Approval To Hire New CEO
------------------------------------------------
Greate Bay Hotel & Casino Inc. is asking the court to approve a
$450,000, one-year employment agreement with President and CEO
John Belisle, who joined the company in July.  Greate Bay said
Belisle's "extensive experience in the Atlantic City gaming
industry and in marketing are expected to serve the Debtors well,
both now and when it emerges from the protection of the Court."
Belisle, who joined Greate Bay in July, previously served as CEO
of Resorts Hotel Casino and chief operating officer of Trump
Marina Hotel Casino as well as president of Trump Communications.
The U.S. Bankruptcy Court in Camden, N.J., has set a Jan. 4
hearing on the matter.  (ABI & Federal Filings, Inc. 28-Dec-1998)


GULFSIDE CASINO: Bankruptcy Cases Dismissed Following Copa Sale
---------------------------------------------------------------
The Sands Regent (Nasdaq: SNDS) yesterday announced the
completion of the sale of the Copa Casino to local
Mississippians.  The closing recently occurred in Gulfport,
Mississippi and the initial $500,000 payment has been deposited
to an escrow account for the benefit of the Company.  The total
sales price of the Copa Casino, and related corporate entities,
is $8.5 million payable to The Sands Regent in a $500,000 down
payment and monthly payments of 2% of gross gaming revenues which
is estimated to be approximately $500,000 or more a year. All
payments will be held in escrow as security for certain
representations and warranties by the Company which are expected
to be fulfilled within 90 days.

The various legal actions with these two former owners have also
been dismissed with prejudice, including the Mississippi Chancery
Court action, the Appeal to the Mississippi Supreme Court and the
U.S. District Court action against The  Sands Regent.  The two
Mississippi Bankruptcy filings, for Gulfside Casino, Inc., and
Patrician, Inc., have also been dismissed.

Ferenc B. Szony, President and Chief Executive Officer of the
Company, stated, "We are extremely pleased that the sale of the
Copa, and related settlement of litigation, has become a reality.
We can now go forward with positive synergy allowing us to
stabilize and improve our operations in Reno and consider other  
opportunities that may benefit the Company. Besides eliminating
the drain on earnings and management's attention and efforts,
this sale has also resulted in a significant improvement to our
balance sheet with working capital improving by over $9 million.


HOSPITAL STAFFING: Tennessee Resolves Disputes with Government
--------------------------------------------------------------
Shortly after commencing its chapter 11 case, Hospital Staffing
Services of Tennessee, Inc., commenced an adversary proceeding
against Donna Shalala, as Secretary of the United States
Department of Health and Human Services, to enjoin the Government
from recouping post-petition reimbursement revenues on account of
alleged pre-petition overpayments.

With no admission of liability on either side, Hospital Staffing
and the Government agree to settle their differences on the
following material terms:

   (A) The Government will release $1.1 million of Medicare
       reimbursements to the Debtor;

   (B) The Government will temporarily forebear efforts to  
       collect two pre-petition overpayments to which the Debtor
       admits;

   (C) The Debtor will be paid on a "standard per claim basis"
       rather than on a "periodic interim payment method of
       reimbursement;" and

   (D) The Debtor will assume its contracts and agreements to
       which the Government is a party.

The Debtor tell the bankruptcy court in Ft. Lauderdale that it is
confident this settlement with the Government will have a
positive effect on the Company's reorganization efforts.  


HOSPITAL STAFFING: Debtors Oppose Creditors' Auction Proposal
-------------------------------------------------------------
Hospital Staffing Services, Inc., and its debtor-affiliates urge
the bankruptcy court in Ft. Lauderdale to deny the Creditors'
Committee's motion for employment of a business broker to solicit
bids for the Debtors' assets while the Debtors are in the middle
of negotiating a plan of reorganization with the Committee.  The
Debtors stress that their exclusive periods remain intact and
this fact alone should warrant denial of the Committee's Motion.  

The Debtors make it clear: they have no intention of auctioning
their businesses at the Committee's behest.  Rather, the Debtors
intend to prosecute to confirmation their recently-filed stand-
alone plan or reorganization to confirmation.  The Debtor has no
duty to seek outside participation or purchasers and has no
intention of doing so unless and until the Debtors'
reorganization efforts fail or show no reasonable probability of
success.


IMARK TECHNOLOGIES: Files Plan & Disclosure Statement
-----------------------------------------------------
Imark Technologies, Inc., presented its Plan of Reorganization
dated December 22, 1998, together with a Disclosure Statement in
support thereof, to the U.S. Bankruptcy Court in Alexandria,
Virginia.  

The stand-alone plan contemplates full payment of administrative
and priority claims in cash on the Effective Date from the
Debtor's $171,000 of assets.  The Debtor's one secured creditor,
International Advance owed $600,000, has agreed to exchange its
claim, secured for $160,000, for 90% of the Debtor's equity.  
Unsecured creditors holding $1.1 million in claims are slated to
receive the lesser of (a) their pro-rata share of $30,000 in cash
or (b) 5% of the Debtor's equity.  Pre-petition shareholders'
interests will be diluted to 5% of the Reorganized Debtor.  


INTERNATIONAL WIRELESS: Circulating Disclosure Statement
--------------------------------------------------------
International Wireless Communications Holdings, Inc., and its
debtor-affiliates have distributed their court-approved Second
Amended Disclosure Statement to creditors for voting on the
Company's Second Amended Plan of Reorganization.  Balloting ends
January 19; Judge Walrath will consider confirmation of the
Debtors' Plan on January 27, 1999.  

Under the Second Amended Plan, unsecured creditors will receive
8-year, interest-bearing Notes for 100% of the face amount of
their claims.  Creditors of certain debtor entities will be
entitled to elect 25% or 30% cash options in lieu of receiving
New Notes.  


JOTAN, INC.: Obtains Interim Authority to Use Cash Collateral
-------------------------------------------------------------
The Honorable Jerry A. Funk has entered an order authorizing
Jotan, Inc., and Southland Container Packaging Corp., interim
authority to use $451,500 of cash collateral (within budgeted
limits) securing pre-petition debts owed to First Union National
Bank.  The Debtors provide First Union with (i) replacement
liens, (ii) financial reports, and (iii) the ability to retain
(at the Debtors' expense) a financial advisor to review
operations and compliance with the Budget, as adequate protection
against any diminution in the value of the Bank's collateral.

As previously reported, the Company, with substantially
undersecured Banque Paribas' full support, is slated to be sold
in short order.


JUMBOSPORTS INC.: Files Chapter 11 Petition
-------------------------------------------
JumboSports Inc. (NYSE: JSI) yesterday announced that it filed a
voluntary petition under Chapter 11 of the Bankruptcy Code in
order to facilitate a planned financial restructuring.  The  
Company filed the petition late yesterday in the United States
Bankruptcy Court in Tampa, Florida, Judge C. Timothy Corcoran,
III presiding.

JumboSports said that while it is not in default on any of its
debt obligations, management elected to pursue a Chapter 11
reorganization so that it can assure its creditors, employees and
customers that it will continue to operate in the normal course
of business while it completes its planned restructuring.  
JumboSports said it entered Chapter 11 with sufficient cash to  
fund its business operations during the reorganization
proceeding.  The Company  has sought and expects to receive the
Court's approval to pay for the post-petition delivery of goods
and services in the ordinary course and to pay employee salaries,
wages and benefits without interruption.

JumboSports said that its decision to seek Chapter 11 protection
was supported by the ad hoc committee representing holders of its
4.25% convertible notes, due November 2000.  These bonds, in the
aggregate, represent more than half of the Company's unsecured
debt.  The Company intends to develop a plan of reorganization
that will, among other things, convert at least some of the  
unsecured debt to equity.

Jack Bush, Chairman and Chief Executive Officer, said, "Filing
under Chapter 11 is in the best interest of JumboSports.  This
allows us to call a 'time  out' with our creditors while we work
to develop a plan of reorganization that puts the Company back on
the right track with a reduced debt burden and improved
profitability."

JumboSports said that its performance in recent years had
weakened due to intense competition in the retail sectors in
which it operates -- name brand sports equipment, athletic
apparel and footwear.  The Company has for the past 11 months
worked to improve operating performance by closing unprofitable  
stores, monetizing non-productive real estate and streamlining
operations to improve inventory control and marketing.  The
Company said that while progress has been made in these areas,
and comparable sales trends in the past three months have
improved, operating results were not improving quickly enough to  
make an out-of-court restructuring feasible.

JumboSports said that it believes a reorganization under Chapter
11 will also facilitate efforts to attract third party equity
into the Company.  The Company said that it expects to quickly
complete its reorganization and emerge from Chapter 11 as a
stronger, more viable competitor.

Tampa-based JumboSports Inc. operates 59 sporting goods
superstores in 23 states, including two new stores in Florida.  
The Company is a full-line retailer of quality name brand sports
equipment, athletic apparel and footwear.


KNIGHT EQUIPMENT: Committee Retains Oppenheimer Blend as Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in the
on-going chapter 11 case commenced in San Antonio, Texas, by
Knight Equipment & Manufacturing Corporation has selected the law
firm of Oppenheimer, Blend, Harrison & Tate, Inc., as its
counsel.  Raymond W. Battaglia, Esq., and John H. Tate, II, Esq.,
lead the engagement.  


L.A. GEAR: Professionals' Final Applications for Compensation
-------------------------------------------------------------
The U.S. Bankruptcy Court in Los Angeles, the Honorable Barry
Russell, presiding, will hold a hearing on January 5, 1999, to
consider final fee applications presented by the professionals
retained in the chapter 11 case of L.A. Gear, Inc.:

      $523,413.11  Hennigman, Mercer & Bennett
                      Reorganization Counsel to the Debtor
       $89.655.45  Libra Investments, Inc.
                      Financial Advisor to the Debtor
       $29,947.39  Irell & Manella
                      Debtor's Special Tax Counsel
        $4,315.36  Stein Shostak Shostak & O'Hara
                      Debtor's Special U.S. Customs Counsel
          $183.75  Law Offices of Mary K. Reynolds
                      Debtor's Special Transportation Counsel
      $282,199.00  Sidley & Austin
                      Counsel to the Creditors' Committee
       $61,591.32  Trademark & Licensing Associates, Inc.
                      Consultant to the Creditors' Committee
      -----------
      $991,305.38  Total Final Compensation Requested


LEVITZ FURNITURE: Selling Springdale Property for $5.3 Million
--------------------------------------------------------------
Subject to higher and better offers, Levitz Furniture Corporation
has agreed to sell its fee interest in its property located in
Springdale, Ohio (a suburb of Cincinnati) to Simon Property
Group, Inc., for $5.3 million in net cash proceeds from which
Levitz will pay a 6% commission to Grubb & Ellis for its
brokerage services.  Levitz will auction the property on January
11 and contemplate obtaining approval of the sale from Judge
Walrath on January 13, 1999.


LIBERTY HOUSE: 365(d)(4) Extension Requested to May 31, 1999
------------------------------------------------------------
Liberty House, Inc., tells Judge King that it is evaluating a
variety of reorganization alternatives.  The Company has made
great progress in developing a business plan for 1999 and
management and professionals retained in Liberty House's case
have spent hundreds of hours analyzing Liberty House's strengths
and weaknesses and finding ways to capitalize on them.  

"The complexity of Liberty House's holdings demands that
attention be paid to every detail.  Liberty House's stores are,
of course, at the center of its reorganization efforts," the
Company says.  With that in mind, the Company says that it needs
more time to decide whether it should assume or reject is
nonresidential real property leases.  The Debtor suggests that an
extension of time, pursuant to 11 U.S.C. Sec. 365(d)(4), through
May 31, 1999, is warranted as the Company completes a review of
holiday season operating results.


MARTIN COLOR-FI: Authority to Use NationsBank's Cash Collateral
---------------------------------------------------------------
The Bankruptcy Court in South Carolina has entered a consensual
order authorizing Martin Color-Fi, Inc., Buchanan Industries,
Inc., and Star Fibres Corp., authority to continue using cash
collateral securing $58.8 million of pre-petition secured
financing provided by NationsBank, N.A.  To provide NationsBank
with adequate protection of its interests, the Debtors admit that
NationsBank is fully secured; agree to adhere to a budget; will
deliver $300,000 to NationsBank by January 13, 1999; grant
NationsBank replacement liens; and agree to supply NationsBank
with weekly financial reports.  


MCGINNIS PARTNERS: Amends Schedules of Assets and Liabilities
-------------------------------------------------------------
McGinnis Partners Focus Fund, L.P., and its debtor-affiliates
filed their Amended Schedules of Assets and Liabilities with the
bankruptcy court in San Antonio.  The Debtors' revised Statements
(in millions of dollars) reflect:

                          Total   Secured  Priority  Unsecured
   Debtor Entity          Assets   Claims   Claims    Claims

   McGinnis Partners        
   Focus Fund, L.P.       $151.9   $154.7    $0.0       $6.5
   
   Russia Value
   Fund, L.P               $43.7    $35.7    $0.0      $18.6

   McGinnis Global
   Fund, Ltd.              $97.2    $99.4    $0.0       $6.9


MOBILEMEDIA COMMUNICATIONS: Putnam-Led Group to Fight Plan
------------------------------------------------------------
New Generation Advisers, Inc., a Boston-based investment manager,
yesterday announced that it represents an informal group of
MobileMedia bondholders that intends to contest the company's
Plan of Reorganization which calls for the merger of MobileMedia
with Arch Communications, Inc.

George Putnam, III, president of New Generation Advisers, said,
"MobileMedia's proposed Plan of Reorganization is grossly unfair
to unsecured creditors.  We are being asked to buy Arch
Communications stock at above market prices so that Arch can then
use our money to take over MobileMedia.  MobileMedia has done a  
good job of turning around its business so that it is now capable
of emerging from Chapter 11 on its own or finding another merger
partner on more favorable terms.  We believe that the unsecured
creditors of MobileMedia have been poorly served by the committee
that was supposed to represent all of us in the bankruptcy.  We
believe that the current Plan was pushed through by a small  
group of creditors who had other agendas that are not consistent
with the desires of the creditor group as a whole."

MobileMedia's Plan of Reorganization will be voted on shortly by
all creditors.  Putnam went on to say, "Given the indications of
support that we have received from a number of large bondholders,
we do not believe that the proposed Plan will receive enough
votes to be confirmed.  We are actively seeking alternative  
plans for MobileMedia that will produce higher recoveries
for all creditors."

For additional information, contact George Putnam, New Generation
Advisers, Inc., 225 Friend St. Boston, MA 02114, telephone
617/573-9550.


NU-KOTE HOLDING: Phillip L. Theodore as Responsible Officer
-----------------------------------------------------------
Judge Lundin approved a request by Nu-Kote Holding, Inc., and its
debtor-affiliates that Phillip L. Theodore, the Debtors' Senior
Vice President and Chief Financial Officer, be designated as a
responsible officer empowered to act on the Debtors' behalf to
perform any act required to be performed in the course of the
chapter 11 process.


NU-KOTE HOLDING: Open-Ended 365(d)(4) Extension Requested
---------------------------------------------------------
Nu-Kote Holding, Inc., and its debtor-affiliates ask the
bankruptcy court in Nashville to extend, through confirmation of
a plan of reorganization, the time period pursuant to 11 U.S.C.
Sec. 365(d)(4) within which they must decide whether to assume or
reject the nonresidential real property leases.  

"The Debtors do not have adequate information with which to make
an informed decision on assumption or rejection within the
[statutory] 60-day period," the Company says.  "[A]dditional time
to evaluate . . . the industry [is required, and this] analysis
will . . . require a substantial expenditure of time and energy,"
the Company continues, "an extension of time . . . will enable
the Debtors to examine thoroughly each of the Leases, to explore
available alternatives, and to make informed business judgment
required of a debtor-in-possession."

Judge Lundin will consider Nu-Kote's request at a January 5,
1999, hearing.


OILEX, INC.: Case Converts from Chapter 11 to Chapter 7
-------------------------------------------------------
Oilex Inc., Luling, Texas, has been placed into chapter 7 under a
ruling by the U.S. Bankruptcy Court for the District of Nevada,
according to a newswire report.  Earlier the company had filed
chapter 11.  The court also named interim trustee Randolph N.
Osherow of San Antonio.  (ABI 28-Dec-1998)


PEGASUS GOLD: Harrison Goldin Approved as Special Consultant
------------------------------------------------------------
Judge Zive granted a Joint Application presented by Pegasus Gold
Corporation and its Creditors' Committee to employ Goldin
Associates, L.L.C., and for appointment of Harrison J. Goldin as
Special Consultant in connection with the implementation of the
Liquidation Trust established under the Debtors' Liquidating Plan
of Reorganization.


PHILIP SERVICES: Carl Ichan Threatening to Force Bankruptcy
-----------------------------------------------------------
Unless Carl Icahn, management of Philip Services Corp., and its
bank creditors can agree on a restructuring plan, Mr. Icahn is
threatening to throw the 11,000-employee company into bankruptcy
court and potential liquidation, according to an article
appearing in yesterday's edition of Business Week.  Icahn has
persuaded management to go for a prepackaged bankruptcy, but
Philip's banks -- who met with the company on Dec. 15 -- so far
have shown no sign of going along.  Philip "will either be
majorly restructured, or it will not exist at all," concludes
James Sbrolla, a former Philip vice-president and now a Toronto
investment adviser, in an interview with Business Week.  

Drawn by Philip's distress, according to Business Week, Icahn
began buying stock in May, building up a 14% stake.  He and
Foothill Partners III, LP, also now control $200 million of its
$1 billion of debt.


PHP HEALTHCARE: Debtor's Motion to Terminate 401(k) Plan
--------------------------------------------------------
PHP Healthcare Corporation asks Judge Walrath for permission to
terminate its 401(k) Plan prior to December 31, 1998.  The Debtor
asks for this quick termination in order to avoid paying $300,000
as an administrative expense to match employees' 1998
contributions to the Plan.  The Debtor tells the Court that it
provided notice of Plan termination to qualified full-time
employee-participants whose employment tenure exceeds one year,
on December 16, 1998, and the Company's intention to terminate
the Plan before the end of 1998.  


PHP HEALTHCARE: Sells Interest in Virginia Chartered Health Plan
----------------------------------------------------------------
PHP Healthcare Corp. sold its 70 percent interest in Virginia
Chartered Health Plan, Inc., to UHS Managed Care Inc., an
affiliate of the Medical College of Virginia Authority, according
to Best's News.  Proceeds from the sale -- $5.7 million -- will
be placed in an escrow account and distributed as ordered by the
bankruptcy court.  PHP and three subsidiaries filed chapter 11 on
Nov. 19, and the subsidiaries converted to chapter 7 on Nov. 23.


RAND ENERGY: Rejecting Shell Western Lease for Better Deal
----------------------------------------------------------
Rand Energy Company moves the bankruptcy court in Dallas for
authority to reject its 1997 Gas Treating, Gas Sale and Gas
Purchase Agreement with Shell Western E&P, Inc., under which the
Debtor's gas from Kilgore-Wernecke Gas Unit No. 2 located in N.W.
Rosita Field in Duval County, Texas, is treated to pipeline
specifications and sold.  

The Debtor believes that, throughout the term of the Agreement,
SWEPI has overcharged for gas treating and underpaid for gas
purchases.  The KW-2 Well generates monthly revenues in excess of
$200,000.  The Debtor believes that it can generate higher
revenue from the KW-2 Well if a more reasonable gas processing
and purchasing agreement were in place.  Accordingly, the Debtors
intend to reject the Agreement with SWEPI in favor of finding a
more lucrative deal.  The Debtor does not indicate in its motion
papers whether a better deal has been located.  


READING CHINA: Logan & Company Appointed As Claims Agent
--------------------------------------------------------
Logan & Company will serve as the official claims agent in the
chapter 11 cases for Reading China and Glass, Inc., and its
debtor-affiliates pending before Judge Walrath in Wilmington.


REGIONAL HEALTHCARE: Acquired by Health Management Associates
-------------------------------------------------------------
Health Management Associates, a Naples, Florida-based hospital
company, went before the U.S. Bankruptcy Court in Ft. Lauderdale
to buy Regional Healthcare Inc. for $78 million.  Regional
Healthcare consists of Brooksville and Spring Hill regional
hospitals and PineBrook Regional Medical Center located in
Hernando County, Florida.  HMA paid off Regional Healthcare's
remaining creditors and hauled the company out of U.S. Bankruptcy
Court, where it had been protected from creditors for the last
five years.

In 1993, the St. Petersburg Times related this past weekend,
Regional Healthcare went into chapter 11.  The company couldn't
pay off the debt it took on for the construction of its Spring
Hill hospital, which was built to compete with Oak Hill Hospital,
owned by Columbia/HCA Healthcare Corp.  After several failed
attempts over the years to negotiate a sale to a non-profit
hospital company, Regional Healthcare's board of directors
ultimately decided to negotiate with a for-profit partner.  HMA
agreed to buy PineBrook and Spring Hill Regional and the assets
of Brooksville Regional. For the next 30 years, the company will
pay the county $300,000 a year to lease the taxpayer-owned
Brooksville hospital.  It will not pay property taxes, and at the
end of the 30 years, all three properties will be handed over to
the county.  HMA also agreed to invest $25-million in capital
improvements at the hospitals over the next five years.  


RIO GRANDE: Cox & Smith Approved as Debtor's Counsel
----------------------------------------------------
The Bankruptcy Court in San Antonio has approved the employment
of the law firm of Cox & Smith Incorporated as lead bankruptcy
counsel to Rio Grande, Inc., and its four oil and gas debtor-
affiliates.  


SOUTHERN PACIFIC: CIBC Oppenheimer Advises Creditors' Committee
---------------------------------------------------------------
Judge Perris approved an Application presented by the Creditors'
Committee appointed in the on-going chapter 11 case commenced by
Southern Pacific Funding Corporation for retention of CIBC
Oppenheimer Corp. as its financial advisor.  CIBC agreed to limit
the scope of indemnification provisions it originally requested
and Judge Perris directed that CIBC shall not be permitted to
trade in any of the Debtors' securities until after the closing
of a SPFC-UK Sale Transaction.  


SUNBELT NURSERY: Minor Modifications to Plan of Liquidation
-----------------------------------------------------------
Wolfe Nursery, Inc., Tip Top Nursery, Inc., Nurseryland Garden
Centers, Inc. (the Operating Debtors under the plan proposed in
Sunbelt Nursery, Inc.'s chapter 11 cases) and Sunbelt's Official
Committee of Creditors Holding General Unsecured Claims ask the
bankruptcy court in Santa Ana to permit them to make two minor
modifications to the Second Amended plan of Liquidation at the
time of confirmation:

   (1) amend the Plan to provide that the assets of the Operating
       Debtors will not revest in the Operating Debtors but will,
       rather, remain vested in the Operating Debtors' estates;
       and

   (2) amend the Plan to provide that the Operating Debtors shall
       not retain the services of Timothy Duoos, the Operating
       Debtors' President, post confirmation.  

As provided in the Plan, the Disbursing Agent will be appointed
Estate Representative entitled to take all actions on behalf of
the Operating Debtors' estates except for the prosecution of
Rights of Action against past and present Insiders.


TIE/COMMUNICATIONS: January 20 Disclosure Statement Hearing
-----------------------------------------------------------
The United States Bankruptcy Court for the Central District of
California will hold a hearing on the adequacy of the Original
Disclosure Statement describing the Original Chapter 11
Liquidating Plan proposed by TIE/Communications, Inc.

As previously reported, Tie/Communications, proposed a plan of
liquidation for the debtor's bankruptcy estate.  Administrative
Expenses total $84,000 and will be paid in full on the Effective
Date.  The debtor does not believe that there are any true
secured claims in the case.  General Unsecured Claims total
$39,101,225 and are slated to receive between 41% and 47% of
their claims.


UNISON HEALTHCARE: Creditors Vote to Accept Debtors' Plan
---------------------------------------------------------
Unison HealthCare Corp. said its creditors have cast their
ballots and voted to accept the Company's reorganization plan.
The Scottsdale company described the action as an important step
that will help it emerge from Chapter 11, to a staff reporter for
the Arizona Republic.  Unison provides long-term and specialty
health-care services at 43 facilities with nearly 4,200 beds.


UNITED FINANCIAL: Objection to Entry of Final Decree
----------------------------------------------------
As previously reported, United Financial Group, Inc., asked the
Delaware bankruptcy court to enter a final decree in its 1997-
commenced chapter 11 case.  

Mr. Robert E. Martel objects to this request.  Mr. Martel says
that he filed a proof of claim; the Debtor objected to his claim;
he responded to that objection and requested a hearing.  To date,
he's heard nothing except the instant request for entry of a
final decree.  Mr. Martel slings some mud at the Debtor, noting
that he was never served notice of the bankruptcy filing.  In all
events, Mr. Martel asks the Court to resolve the merits of his
claim before entry of a final decree.


VAN LEUNEN'S: Balloting Commences on Liquidating Plan
-----------------------------------------------------
Judge Aug passed on the adequacy of information contained in the
Disclosure Statement presented by Van Leunen's, Inc., d/b/a All
About Sports, in support of the Joint Plan of Liquidation
proposed by the Debtor and its Creditors' Committee.  Ballots
must be returned by January 13, 1999, to be counted; the Court
will consider confirmation at a hearing scheduled for January 22,
1999.

The Debtor and the Committee estimate that unsecured creditors
will receive an approximate 9.8% dividend on account of their
claims.  The Plan contemplates that the Debtor will not pursue
any litigation on account of potential preference payments.


VITANTONIO PRODUCTS: Involuntary Petition Filed
-----------------------------------------------
Crains Cleveland Business reports that three creditors filed an
involuntary bankruptcy petition against 92-year-old gourmet
cookware maker Vitantonio Products Inc., based in Bedford and
best-known for its Mickey Mouse waffle irons.  Vitantonio's
parent company, Kadee Products, Ltd., of Bedford, is a well-known
maker of electronic cookware and fans.

General Die Casters Inc. of Peninsula, Russell Products of
Cleveland and cookbook publisher William Morrow & Co. of New York
are seeking unpaid claims totaling $847,795.  The Involuntary
petition was filed with the U.S. Bankruptcy Court in Cleveland.  

Together, Crains relates, Kadee and Vitantonio Products had sales
of $15 million in 1997, citing a Dun & Bradstreet report it
obtained.

Word of the bankruptcy filing came as good news to VillaWare
Manufacturing Co. of Cleveland, a competing maker of Italian
cookware that has eyed some of Vitantonio's contracts with large
gourmet vendors: such as Williams-Sonoma Inc. of San Francisco.  
"We're pretty ecstatic about this (bankruptcy filing)," Bob
Vitantonio, president of VillaWare and the great-grandson of
Vitantonio Products' founder, Angelo Vitantonio, told Crains.   
"It's always nice when you hear about a competitor going out of
business," he added.


WESTMORELAND COAL: Court Dismisses Chapter 11 Cases
---------------------------------------------------
Westmoreland Coal Co., Colorado Springs, Colo., said that a
bankruptcy court has dismissed its chapter 11 cases after the
company reached agreements in October with union pension funds,
The Wall Street Journal reported.  Westmoreland filed chapter 11
two years ago, citing its $160 million obligation to current and
former employees.  Under the agreement, Westmoreland will pay
undisputed claims in full, reinstate one plan, make future
payments on other plans and determine other pension-fund payments
through arbitration.  The dismissal will become effective on Jan.
4 after a mandatory 10-day stay.  (ABI 28-Dece-1998)


Meetings, Conferences and Seminars
----------------------------------

January 9-14, 1999
   Law Education Institute
      Bankruptcy Law Course -- 1999 National CLE Conference
         Marriott's Vail Mountain Resort, Vail, Colorado
            Contact: 1-414-228-5810

January 28-February 1, 1999
   COMMERCIAL LAW LEAGUE OF AMERICA
      38th Annual Southern District Meeting
         Royal Sonesta Hotel, New Orleans, Louisiana
            Contact: 1-423-971-1551

February 4-6, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Rocky Mountain Bankruptcy Conference
         Westin Tabor Center, Denver, Colorado
            Contact: 1-703-739-0800

February 18-21, 1999
   COMMERICAL LAW LEAGUE OF AMERICA
      Annual Western District Meeting
         Monte Carlo Hotel & Casino Resort,
         Las Vegas, Nevada
            Contact: 1-702-382-9558

Febraury 28-March 3, 1999
   NORTON INSTITUTES ON BANKRUPTCY LAW
      Norton Bankruptcy Institute I
         Olympic Park Hotel, Park City, Utah
            Contact: 1-770-535-7722

March 18-21, 1999
   NORTON INSTUTUTES ON BANKRUPTCY LAW
      Norton Bankruptcy Litigation Institute II
         Flamingo Hilton Hotel, Las Vegas, Nevada
            Contact: 1-771-535-7722

March 19, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Bankruptcy Battleground West
         Century Plaza Hotel, Los Angeles, California
            Contact: 1-703-739-0800

March 25-27, 1999
   Southeastern Bankruptcy Law Institute, Inc.
      25th Annual Southeastern Bankruptcy Law Institute
         Marriott Marquis Hotel, Atlanta, Georgia
            Contact: 1-770-451-4448

April 15-18, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Annual Spring Meeting
         J.W. Marriott, Washington, DC
            Contact: 1-703-739-0800

April 26-27, 1999
   RENAISSANCE AMERICAN CONFERENCES & BEARD GROUP, INC.
      Bankruptcy Sales, Mergers & Acquisitions
         The Mark Hopkins, San Francisco, California
            Contact: 1-903-592-5169 or ram@ballistic.com   

April 28-30, 1999
   INTERNATIONAL FEDERATION OF INSOLVENCY PROFESSIONALS
      INSOL Bermuda '99 Conference of the Americas
         Castle Harbour Marriott Resort
            Contact: INSOL@weil.com

June 3-6, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Michigan
            Contact: 1-703-739-0800

July 1-4, 1999
   NORTON INSTITUTES ON BANKRUPTCY LAW
      Western Mountains Bankruptcy Law Institute
         Jackson Lake Lodge, Jackson Hole, Wyoming
            Contact: 1-770-535-7722
         
July 15-18, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Northeast Bankruptcy Conference
         Mount Washington Hotel & Resort
         Bretton Woods, New Hampshire
            Contact: 1-703-739-0800

August 4-7, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Southeast Bankruptcy Workshop
         The Ritz-Carlton, Amelia Island, Florida
            Contact: 1-703-739-0800

September 16-18, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Southwest Bankruptcy Conference
         The Hotel Loretto, Santa Fe, New Mexico
            Contact: 1-703-739-0800

December 2-4, 1999
   AMERICAN BANRKUTPCY INSTITUTE
      Winter Leadership Conference
         La Quinta Resort & Club, La Quinta, California
            Contact: 1-703-739-0800

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

                             *********

A listing of Meetings, Conferences and Seminars appears in each
Tuesday's edition of the TCR.  

Bond pricing, appearing in each Friday edition of the TCR, is
provided 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 publishers.   

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  * * *