TCR_Public/990108.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, January 8, 1999, Vol. 3, No. 5

                 Headlines

ACCESS BEYOND: Application To Hire Auctioneer Emerald Asset
ACME METALS: Committees Battle Over Examiner
ACME METALS: Committee Objects To Additional Committee
AMERITRUCK DISTRIBUTION: Court OK's Financial Advisors
AMERITRUCK: Mercedes-Benz Sees Relief From Stay

ARROW AUTOMOTIVE: Committee Responds to Objections
BROTHERS GOURMET: Seeks Time to Assume/Reject Leases
BROTHERS GOURMET: Seeks To Retain Labor Law Counsel
CRIIMI MAE: Duff & Phelps Update
FINE HOST: Restructuring Agreement And Files Chapter 11

HOMEOWNER'S MORTGAGE: Objection to Disclosure Statement
HOOTERS: We Are Not Going Bankrupt!
KENETECH WINDPOWER: Panel Get Votes Needed For Plan
LIVENT: Seeks Time To Assume/Reject Leases
MIDCON OFFSHORE: Trustee Seeks Approval of Settlement

NU-KOTE: Counterclaims Against H-P Estimated At $95M
ORANGE COUNTY: Court Upholds Action Against Merrill Lynch
PHARMACY FUND: Gets Nod For Exclusivity Extension To May 7
PHELPS TECH: Committee Seeks Substantive Consolidation
PHP HEALTHCARE: Seeks Time to Assume/Reject Leases

POWER CO. OF AMERICA: Court Confirms Plan
SYQUEST: Resumes Sales Operations and Support on Web
VOICE IT: Seeks Authority To Employ Special Counsel
Z. FREDERICK: Seeks To Increase Exclusive Periods

DLS CAPITAL: Bond Pricing For Week of January 4, 1999

                *********

ACCESS BEYOND: Application To Hire Auctioneer Emerald Asset
-----------------------------------------------------------
Access Beyond Technologies, Inc. n/k/a Hayes Corporation
(Hong Kong)Limited, et al, seeks court authorization to
employ and retain Emerald Asset Management LLP as
auctioneer.

The debtors' pre-petition secured lender has advised the
debtors that it is unwilling to provide debtor in
possession financing to the debtors other than in an amount
to fund an orderly liquidation of the debtors' assets by
the end of February 1999.  The debtors are left with no
choice but to retain an auctioneer to oversee the valuation
and the prompt orderly liquidation of their assets.

Emerald's commission shall be based upon all sale proceeds
whether generated prior, during or after the auction or
liquidation sale.  Emerald's commission shall be calculated
and paid as a buyer's premium of 10% of the auction
proceeds.  If the gross sales proceeds exceed $5 million,
Emerald will share the buyer's premium fee with the debtors
on a 50-50 basis.  

The debtors believe that the retention of Emerald is in the
best interests of the debtors and their estates.


ACME METALS: Committees Battle Over Examiner
--------------------------------------------
The Official Committee of Unsecured Creditors of Acme
Metals Incorporated, debtor, and five of its direct and
indirect subsidiaries files an objection to the motion of
the unofficial committee of Alpha Tube Trade Creditors for
an order appointing an Examiner.

The Committee states that the Examiner Motion is yet
another "litigious attempt by a relatively small group of
self-serving trade creditors of Alpha Tube Corporation to
sufficiently burden and further disrupt the administration
of these cases in the hope of strengthening their
bargaining position in these reorganization proceedings."  

The Committee argues that under the Bankruptcy Code, the
appointment of an Examiner is aimed at protecting, where
needed, the interest of creditors, equity holders and the
estate, and not the agenda of a small group of trade
creditors and their counsel.

The creditors' motion for an examiner should be denied
according tot he committee because it is not mandated;
Alpha does not have qualifying debts in excess of $5
million, case law, concerns regarding cash management have
been resolved, and the appointment of an examiner would be
duplicative of work to be performed by the Committee and
its professionals and would unnecessarily deplete the
assets of the estates.


ACME METALS: Committee Objects To Additional Committee
-------------------------------------------------------
The Official Committee of Unsecured Creditors of Acme
Metals Incorporated and five of its direct and indirect
subsidiaries files its objection to the motion of the
Unofficial Committee of Alpha Tube Creditors ("Wolf Block
Creditors") for an order directing the appointment of a
Committee of Unsecured Creditors of Alpha Tube Corporation.

The Committee states that the motion fails to allege facts
sufficient to warrant the extraordinary remedy of the
appointment of an additional committee.  The Committee
states that the Wolf Block Creditors have sufficient
representation in these cases and their insinuation that AK
Steel is somehow conflicted is unsubstantiated an
inaccurate.  The Committee states that the Wolf Block
Creditors have already demonstrated that they are well
organized, sophisticated and ably represented.  To date,
they have appeared and/or filed papers in connection with
the debtors' proposed DIP financing, the debtors' cash
management system and the proposed global reclamation
procedures.

The fact that Alpha Tube has independent counsel and
financial advisor further protects the interests of Alpha
Tube's creditors and obviates the need for a separate
committee.  This was the conclusion reached by the U.S.
Trustee.


AMERITRUCK DISTRIBUTION: Court OK's Financial Advisors
------------------------------------------------------
In the case of Ameritruck Distribution Corp., et al., the
court entered an order authorizing the retention and
employment of PricewaterhouseCoopers LLP as financial
advisors, accountants and tax advisors.  The sum of $50,000
is payable to the firm out of a tax refund payable to the
debtors based on a prior assignment of this amount which
was compensation for the work performed to obtain the tax
refund.

The firm will be compensated in accordance with the
Bankruptcy Code procedures.


AMERITRUCK: Mercedes-Benz Sees Relief From Stay
-----------------------------------------------
Mercedes-Benz Credit Corporation ("MBCC") seeks relief from
the automatic stay in the case of Ameritruck Distribution
Corp. et al.

MBCC has a secured claim in this case relating to the 142
various tractor/trucks in the amount of $5,154,042. MBCC
believes that the value of the trucks on a retail basis
total no more than $4,802,800. (On a sight unseen basis)
MBCC states that the debtors are seriously in default under
the terms of the contracts failing to make payments when
due.  Upon information and belief, MBCC states that the
debtors intend to retain possession of only one of the
trucks.    

MBCC requests that the court terminate the automatic stay
for all purposes with respect to the trucks; that the
debtors have no equity in the trucks, the trucks are not
necessary to the debtors' reorganization and the debtors do
not intend to provide adequate protection or MBCC's
perfected security interests in the trucks.  

In the alternative to relief from the automatic stay, MBCC
requests adequate protection of MBCC's interests in the
trucks.


ARROW AUTOMOTIVE: Committee Responds to Objections
--------------------------------------------------
The Official Committee of Unsecured Creditors of Arrow
Automotive Industries, Inc. responds to the objections of
the debtor and BankBoston to the committee's application to
employ PricewaterhouseCoopers as accountants and financial
advisors.

The Committee states The Recovery Group has no obligation
to the Committee and it is disingenuous to imply that the
Committee has equal access to its work product.  The
Committee anticipates that PwC will have a limited advisor
role.  The Committee believes that hiring PwC is necessary
and will promote the interests of unsecured creditors.


BROTHERS GOURMET: Seeks Time to Assume/Reject Leases
----------------------------------------------------
The debtors, Brothers Gourmet Coffees, Inc., et al., seek
an extension of the period to assume or reject unexpired
leases of nonresidential real property.

As of the date of this motion, the debtors are party to
approximately twenty-two unexpired leases of nonresidential
real property.  The debtors continue to re-evaluate every
aspect of their businesses and the profitability of each of
their leased locations and the desirability of opening
and/or closing additional facilities.  To date, the debtors
have determined it necessary to reject three nonprofitable
unexpired leases.

The debtors anticipate finalizing and filing their proposed
plan of reorganization within the next few weeks.  The plan
will most likely contemplate a sale of the debtors'
businesses, and therefore the debtors do not want to
prematurely assume or reject the leases.

The debtors propose that the deadline for assuming or
rejecting the unexpired leases be extended until
confirmation of a plan of reorganization.


BROTHERS GOURMET: Seeks To Retain Labor Law Counsel
---------------------------------------------------
Brothers Gourmet Coffees, Inc. et al., seek approval and
authorization to employ and retain Edwards, Ballard,
Bishop, Sturm, Clark & Keim PA as proposed special labor
law counsel nunc pro tunc to December 15, 1998.

Since March of 1998 the Edwards firm has represented the
debtors as their special labor law counsel.  The firm
assisted the debtors in defeating a union campaign and
successfully defended the debtors against several unfair
labor practice charges.  They are currently counsel of
record in a case alleging post-petition unfair labor
practices.  The debtors seek authority to hire the firm to
represent them in this post-petition action.


CRIIMI MAE: Duff & Phelps Update
--------------------------------
Duff & Phelps Credit Rating Co. (DCR) has removed four
commercial mortgage-backed securities (CMBS) transactions
from Rating Watch -- Down as a result of CRIIMI MAE
Services, L.P. (CRIIMI), a subsidiary of CRIIMI MAE Inc.,
being replaced as the special servicer by Banc
One Mortgage Capital Markets, LLC (BOMCM). All DCR- rated
classes of the following transactions are removed:
    Mortgage Capital Funding Inc., Series 1997-MC1
    Asset Securitization Corporation, Series 1996-D3
    LB Commercial Conduit Mortgage Trust II, Series 1996-C2
    Morgan Stanley Capital I Inc., Series 1998-WF2
    *BOMCM also replaced CRIIMI as master servicer for this
transaction.
  
DCR had placed 13 transactions on Rating Watch--Uncertain
in connection with the bankruptcy filing by CRIIMI MAE Inc.
from its creditors under Chapter 11 of the United States
Bankruptcy Code on October 5, 1998 (see DCR's press release
dated October 5, 1998).  Then, on October 8, 1998,
DCR removed DLJ Mortgage Acceptance Corp., Series 1995-CF2
from Rating Watch--Uncertain as a result of the controlling
class for the transaction replacing CRIIMI as the special
servicer (see DCR's press release dated October 8, 1998).  
On October 22, 1998, DCR changed the watch status from
'Uncertain' to 'Down' for the remaining 12 transactions
following DCR's determination that the bankruptcy could
potentially have negative implications for the
transactions.  

Subsequently, Wisconsin Avenue Securities was removed from
Rating Watch -- Down on December 2, 1998, following the
completion of the special servicing transfer from CRIIMI to
BOMCM (see DCR's press release dated December 2, 1998).
Although DCR has been informed that CRIIMI MAE Inc. intends
to appoint BOMCM as the special servicer for the remaining
eight transactions currently on Rating Watch--Down, DCR has
not received notification from the trustees of
these transactions that the transfers have been completed.  
Therefore, the following transactions remain on Rating
Watch -- Down:
  
    Asset Securitization Corporation, Series 1995-MD IV
    Asset Securitization Corporation, Series 1996-D2
    First Union-Lehman Brothers Commercial Mortgage Trust
II, Series 1997-C2
    Merrill Lynch Mortgage Investors Inc., Series 1995-C3
    Merrill Lynch Mortgage Investors Inc., Series 1996-C2
    Morgan Stanley Capital I Inc., Series 1998-WF1
    Mortgage Capital Funding Inc., Series 1994-MC1
    Nomura Asset Securities Corp., Series 1998-D6
  

FINE HOST: Restructuring Agreement And Files Chapter 11
-------------------------------------------------------
GREENWICH, Conn., Jan. 7   Fine Host Corporation (OTC
Bulletin Board: FINE) announced that it has reached an
agreement with a committee representing its noteholders on
a financial restructuring of the Company. The Company also
announced that, in order to implement the restructuring, it
has filed a petition for reorganization under Chapter 11 of
the Bankruptcy Code together with a plan of reorganization
which embodies the terms of the restructuring and which is
supported by the noteholders' ad hoc committee.

The plan provides for the exchange and satisfaction of all
of the Company's $175 million 5% Convertible Subordinated
Notes due 2004 for approximately 96 percent of the
outstanding equity in a reorganized Fine Host Corporation,
and for the elimination of all contingent liabilities
associated with shareholder class actions and other
litigation relating to Fine Host's previously announced
accounting irregularities. The plan also provides that the
claims of all clients, vendors and holders of similar
unsecured claims will be paid in full. Implementation of
the plan of reorganization is subject to confirmation of
the plan in accordance with the Bankruptcy Code.

William D. Forrest, Fine Host's president and chief
executive officer, said, "The restructuring
agreement reached with representatives of the Company's
noteholders and largest creditor constituency will
significantly strengthen the Company. It will permit Fine
Host to effectively put the challenges of its past behind
it, and enable Fine Host to emerge from Chapter 11 with a
de-leveraged balance sheet, sufficient cash to fund
operations going forward and the ability to
access capital to fund new growth initiatives. Moreover,
because the plan has the support of the noteholder
representatives, the Company expects the Chapter 11 case to
move expeditiously toward a successful conclusion."

Mr. Forrest emphasized that the restructuring will have no
impact on the Company's ability to fulfill its commitments
to clients and that there will be no interruption in
operations at the Company's approximately 900 facilities
throughout the nation. He also noted that all of the
Company's subsidiaries are excluded from the Chapter 11
filing.

"During the restructuring period and beyond, Fine Host will
continue its commitment to provide the highest level and
quality of service that our clients have come to expect.
Our daily operations will continue as usual, our vendors
will be paid for all supplies furnished and services
rendered subsequent to the filing, and all aspects of the
business will go on as before. Moving forward, we will
continue to provide superior quality contract food services
to our existing clients, renew current contracts and write
new business," Mr. Forrest said. The Company also seeks
court approval to pay all currently outstanding client and
vendor claims in accordance with their normal terms during
the pendency of the Chapter 11 case.

Under the terms of the proposed plan of reorganization,
holders of Fine Host's $175 million 5% Convertible
Subordinated Notes due 2004 are expected to receive, in
exchange for their notes, an aggregate of approximately 96
percent of the outstanding common stock of reorganized Fine
Host and approximately $45 million in cash. Subject to
acceptance of the Plan by the noteholder class, existing
and former holders of such notes having claims for
rescission or damages relating to the disclosure of the
Company's accounting irregularities are expected to
receive, under the plan, an aggregate of approximately 3
percent of the outstanding common stock of the reorganized
company and warrants to purchase additional shares and also
will participate in a litigation trust. If the noteholder
class does not accept the Plan, no distributions will be
made with respect to this class of claims.

Existing holders of Fine Host common stock and existing and
former holders of Fine Host common stock having claims for
rescission or damages relating to the disclosure of the
Company's accounting irregularities are expected to
receive, under the plan, an aggregate of approximately 1
percent of the outstanding common stock of reorganized Fine
Host and warrants to purchase additional shares and also
will participate in the litigation trust. This class will
receive such distribution only if all other classes accept
the plan; if they do not, no distributions will be made
with respect to this class. Under the plan, the Company
will assign to the litigation trust certain claims it may
have related to the Company's alleged accounting
irregularities. The plan also provides that all existing
shares of Fine Host common stock will be canceled.

Fine Host Chairman Gerald P. Buccino said, "The Chapter 11
filing and implementation of the plan will enable us to
continue to move forward with our strategic plan. There is
no question of the quality and potential of Fine Host, its
operating units, its people, the product it delivers and
the markets it serves. As we move forward with our
strategic plan, we will concentrate on continuing to
build a solid infrastructure and support mechanism designed
to enhance the service provided to our clients."

Fine Host filed its Chapter 11 case in the U.S. Bankruptcy
Court for the District of Delaware in Wilmington.

Fine Host Corporation and its affiliates provide food and
beverage concession and catering services to approximately
900 facilities, primarily through multi-year contracts in
the following markets: the recreation and leisure market
(arenas, stadiums, amphitheaters, civic centers and other
recreational facilities); the convention center market; the
education market (colleges, universities and elementary
and secondary school nutrition programs); the business
dining market (corporate cafeterias, office complexes and
manufacturing plants); the health care market (long-term
care facilities and hospitals); and the corrections market
(prisons and jails).


HOMEOWNER'S MORTGAGE: Objection to Disclosure Statement
-------------------------------------------------------
Fannie Mae Objects to the Disclosure Statement of
HomeOwners Mortgage & Equity, Inc. filed by the debtor.  
Fannie Mae states that the debtors provide the creditors
with almost no information that would permit creditors to
meaningfully compare the merits of liquidation under the
plan with that which would occur under Chapter 7.

The Disclosure Statements fails to disclose the identity of
the plan trustee, the terms under which the plan trustee's
professionals will be compensated, financial information
relating to the feasibility of the plan and an analysis and
comparison of projected revenue and operating expenses
under the plan and chapter 7.

Fannie Mae also states that the Disclosure Statement does
not provide adequate information about the litigation that
allegedly will constitute the trust's most substantial
asset; and that the Disclosure Statement does not
adequately inform creditors of the risks of litigation; and
does not discuss the impediment that Fannie Mae's $84
million claim presents to any affirmative recovery against
Fannie Mae.  Moreover, it does not disclose that the
debtor's pursuit of litigation against Fannie Mae may
benefit former and current officers and directors of the
debtor, including current directors who apparently remain
in control of the debtor, while offering little prospect of
recovery for creditors.

Finally, Fannie Mae asserts that the Disclosure Statement
does not adequately describe how the plan curtails certain
rights that creditors would otherwise have in chapter 7,
such as set-off rights under the Code, protection of
entitlements to pro rata distributions on account of
contested claims, and broader recourse against the chapter
7 trustee.  Fannie Mae states that these and other
deficiencies are so substantial that they mandate denial of
the Disclosure Statement.


HOOTERS: We Are Not Going Bankrupt!
-----------------------------------
Reports of Hooters demise have been greatly exaggerated.
Contrary to numerous news and media reports, the Hooters
Restaurant chain has not filed bankruptcy. The chain ended
1998 with 233 restaurants in 40 states and 7 foreign
countries. In all, 23 new units were added during the
year and the systems 11% growth rate marked the 14th
consecutive year of double-digit growth.  Total system
sales topped $400 million and same store (store open one
year or more) increased 6.7%. In short, the chain which
marked it's 15th anniversary of the opening of it's first
Hooters in Clearwater, Florida on October 2, 1998, enjoyed
one of it's best years.

Hooters of America, Inc. believes that the erroneous
reports stem from a joke in late night host David
Letterman's opening monologue on Monday, January 4, 1999.
The joke made a reference to a Chapter 11 re-organization
filing by an individual Hooters of America, Inc. franchise
who operates a Hooters Restaurant in New York City in
proximity to the Ed Sullivan Theatre where Mr. Letterman's
show originates. The franchisee filing is the result of
cost conditions associated with Manhattan and not the
result of any "acceptance" problem with the Hooters
concept. This franchisee is merely reorganizing
financially; the restaurant remains open and there are no
plans for it to close. The filing in no way affects other
Hooters.

Hooters Restaurants are open for business today and some
10,000 Hooters Girls are waiting to serve up food and fun
to our customers. We are alive and we look forward to the
next 15 years.


KENETECH WINDPOWER: Panel Get Votes Needed For Plan
----------------------------------------------------
Kenetech Windpower Inc. and its official committee of
unsecured creditors are going into tomorrow's hearing with
enough votes for confirmation of their joint liquidating
plan of reorganization. The plan reflects a settlement that
classifies the claims of the various partners and lenders
of the company's windpower facilities as allowed Class 5
unsecured claims and settles them for the lesser of the
total amount of the other Class 5 allowed  claims or $134
million, subject to certain conditions. The plan and
disclosure statement were amended on Oct. 22 to, among
other things, push back from Dec. 23 to Jan. 29 the
confirmation deadline on which the settlement is
conditioned. (The Daily Bankruptcy Review and ABI Copyright
January 7, 1999)


LIVENT: Seeks Time To Assume/Reject Leases
------------------------------------------
The debtors, Livent (U.S.) Inc., et al., seek an extension
of time pursuant to section 365(d)(4) of the Bankruptcy
Code extending the time within which the debtors may assume
or reject unexpired leases of nonresidential real property.

The debtors are currently party to at least three unexpired
leases of nonresidential real property which have been
neither assumed nor rejected.  The debtors are analyzing
which of the leases to assume or reject.  To complete this
task, the debtors state that they need a brief extension to
permit them to evaluate the need for these locations in the
context of a stand-alone plan or third-party transaction.

Specifically, the debtors seek an extension of their time
to assume or reject the unexpired leases for an additional
ninety days to April 19, 1999.


MIDCON OFFSHORE: Trustee Seeks Approval of Settlement
----------------------------------------------------
Sheila Macdonald, as Chapter 11 Trustee of Midcon Offshore,
Inc. seeks approval of a settlement of a certain adversary
proceeding between the debtor, The United States, on behalf
of the Minerals Management Service of the U.S. Department
of the Interior,("MMS") Underwriters Indemnity Company,
Planet Indemnity Company, Samedan Oil Corporation, Domain
Energy Production Company, The Louisiana Land and
Exploration Company, and Louis Dreyfus Natural Gas
Corporation.

The settlement provides among other things:
(a)$1.85 million shall be paid to the MMS.

(b) The source of funds for the payment shall be the funds
in the Escrow Account and funds from the Bonding Company.  
No funds shall come from Midcon.

(c)The claims asserted in MMS' proof of claim shall be
deemed reduced and reclassified as non-priority unsecured
pre-petition claims in the aggregate amount of $830,296.


NU-KOTE: Counterclaims Against H-P Estimated At $95M
----------------------------------------------------
Nu-Kote Holding Inc.'s damage experts have put its
counterclaims against Hewlett-Packard Co. (HWP) at $95
million before trebling in connection with their ongoing
patent litigation. "By reason of the Debtor's actual and
potential successes to date in the trial and the Debtor's
estimate that the downside risk of continuing the H-P Case
is more than offset by the potential recovery of these
damages raised by the Debtor's counterclaims, these
counterclaims are a major asset and source of recovery and
reorganization for the Debtor," subsidiary Nu-Kote
International Inc. asserts.  Nu-Kote said its current
financial distress is largely a result of antitrust
violations by the computer and printer manufacturer, as
well as similar actions by, and litigation with, Seiko
Epson Corp.'s (J.SKO) U.S. affiliate and a unit of Canon
Inc. (CANNY), which also are the subject of counterclaims
by Nu-Kote.  H-P filed a patent infringement suit against
Nu-Kote International in September 1994.  Nu-Kote
International charged H-P with a number of antitrust
violations, including redesigning its inkjet cartridges
"for no other reason than to disable aftermarket
competitors and limit consumer choice." (Federal Filings
Inc. 07-Jan-98)


ORANGE COUNTY: Court Upholds Action Against Merrill Lynch
---------------------------------------------------------
A California appeals court upheld a decision reinstating a
lawsuit brought against Merrill Lynch by 14 local
government entities that said they lost $80 million as a
result of the firm's involvement in the December 1994
Orange County, Calif., chapter 9 bankruptcy, Reuters
reported. The ruling overturned a lower court ruling that
dismissed the case, saying the 14 local government and
government agencies had no grounds to sue Merrill as a
third party. Merrill Lynch claims no wrongdoing in the case
and disputes the amount of losses suffered by the
government entities. Also yesterday, U.S. securities
regulators announced they settled fraud charges with Jean
Costanza, a former partner with the law firm of LeBoeuf,
Lamb, Greene & MacRae in Los Angeles who advised the county
on whether it could sell $1.4 billion in municipal bonds on
a tax-exempt basis, Reuters  reported. Costanza agreed to
"cease and desist" from defrauding investors in the
future, the Securities and Exchange Commission (SEC) said.
Costanza settled without admitting or denying the charges,
but her attorney said she believes her representation of
the county met all legal and ethical standards.


PHARMACY FUND: Gets Nod For Exclusivity Extension To May 7
----------------------------------------------------------
The court has approved Pharmacy Fund Inc.'s request for an
extension of its exclusive periods to file a reorganization
plan and solicit plan acceptances to May 7 and July 6,
respectively.  The company had asserted that an extension
to the exclusive periods was needed because Pharmacy Fund
had to reconcile its receivables before it would be in a
position to propose a plan of reorganization or
liquidation.  There were no objections and the unsecured
creditors' committee supported the extension. (Federal
Filings Inc. 07-Jan-99)


PHELPS TECH: Committee Seeks Substantive Consolidation
------------------------------------------------------
The Official Committee of Unsecured Creditors of the
debtors, Phelps Technologies Inc. and Phelps Tool and Die
Houston, Inc. seek an order authorizing substantive
consolidation of the estates.

The Committee states that the debtors are each an entity
and an affiliate of each other and the interrelationship
among the debtors necessitates substantive consolidation;
that the benefits of substantive consolidation outweigh any
harm to creditors, and creditors will be prejudiced by the
failure to substantively consolidate these cases due to the
increased expense that will of necessity be incurred in the
event of separate administration.


PHP HEALTHCARE: Seeks Time to Assume/Reject Leases
--------------------------------------------------
As of the petition date, PHP Healthcare was party to
approximately ten unexpired leases of nonresidential real
property.  

The debtor is currently analyzing each lease and reviewing
its overall bsuiness strategy.  Geiven the importance of
the leases, the debtor requests a ninety day extension of
time within which it may assume or reject the unexpired
leases through and including April 17, 1999, subject to the
rights of each lessor to request that the extension period
be shortened.


POWER CO. OF AMERICA: Court Confirms Plan
------------------------------------------
The court confirmed Power Co. of America L.P.'s liquidating
reorganization plan  Jan. 5, over the objection of creditor
Tenaska Power Services Co.  The former electricity-trading
concern expects the plan to become effective in mid-
January.  Tenaska, which had also opposed the disclosure
statement, charged in its Dec. 23 confirmation objection
that "the Plan does not include adequate information for
either the Court or unsecured creditors to evaluate the
probable outcomes of avoidance actions."  The company's
plan, filed on Nov. 30, provides for the creation of a
liquidating trust that will administer periodic
distributions to creditors.  Under the plan, unsecured
creditors, who have asserted more than $368 million in
claims, would receive around 3% to 7% of their claims
excluding recoveries from causes of action.  The court
approved the disclosure statement after a Dec. 14 hearing.
(Federal Filings Inc. 07-Jan-99)


SYQUEST: Resumes Sales Operations and Support on Web
-----------------------------------------------------
SyQuest Technology Inc., Fremont, Calif., announced that it
has commenced limited sales operations of its removable
cartridge hard drives and that its web site is back online
to provide online support and driver download support,
according to a newswire report. SyQuest filed chapter 11 in
Oakland, Calif. on Nov. 17. The company and its creditors
are reviewing offers from buyers. (ABI 07-Jan-99)
    

VOICE IT: Seeks Authority To Employ Special Counsel
---------------------------------------------------
The debtor, Voice It Worldwide, inc., seeks authority to
hire Mueting, Raasch & Gebhardt, PA as special counsel to
represent the debtor as patent counsel to provide the
debtor with ongoing advice and to assist the debtor in
preserving its current patents and pending patents and to
file the necessary reports required under the law relative
to the patents.    Special counsel has agreed to represent
the debtor on an hourly basis. Special counsel's hourly
rate is currently $165 per hour, and the debtor intends to
pay a retainer of $3,300. The firm has a pre-petition claim
in the amount of $7,500.


Z. FREDERICK: Seeks To Increase Exclusive Periods
-------------------------------------------------
The debtors, Z. Frederick Enterprises Ltd. and Kenar
Enterprises Ltd.  seek to increase the debtors' exclusive
periods.  Since the filing date, substantially all of the
debtors' assets have been sold.  The debtors and their pre-
and post-petition secured lenders have been working to
liquidate the debtors' remaining assets to cash.  Among the
major assets still to be sold are the debtors' trademarks.

The debtors seek an approximate three month additional
increase of the 120-day exclusive period for both
proceedings to, and including, April 14, 1999 and of the
solicitation period to and including June 16, 1999.  The
debtors are focusing their energies on trying to maximize
the sale value of their trademarks.  Until the marks are
sold, the debtors will not know whether there will be any
cash available for distribution to unsecured creditors.   
Therefore, it is not clear yet whether these proceedings
will be dismissed or whether a liquidating plan will be
feasible.


DLS CAPITAL: Bond Pricing For Week of January 4, 1999
------------------------------------------------------
Following are indicated prices for selected issues:

Acme Metal 10 7/8 '07              11 - 13 (f)
Amer Pad & Paper 13 '05            57 - 59
Amresco 9 7/8 '05                  79 - 82
ATel 0/14 1/2 '04                  16 - 18
Asia Pulp & Paper 11 3/ 4 '05      66 - 67
Boston Chicken 7 3/ 4 '05           5 - 6 (f)
Brazos 10 1/2 '07                   6 - 8 (f)
Brunos 10 1/2 '05                  12 - 15 (f)
Cityscape 12 3/4 '04               12 - 14 (f)
E & S Holdings 10 3/8 '06          49 - 52
Globalstar 11 1/4 '04              78 - 80
Geneva Steel 11 1/8 '01            20 - 24 (f)
Goss Graphic 12 '06                56 - 60
Hechinger 9.45 '12                 68 - 72
Hills 12 1/2 '02                   90 - 93
Mobilemedia 9 3/8 '07              11 - 13 (f)
Penn Traffic 8 5/8 '03             49 - 51 (f)
Planet Hollywood 12 '05            36 - 40
Royal Oak 12 3/4 '06               40 - 45 (f)
Samsonite 10 3/4 '08               89 - 92
Service Merchandise 9 '04          19 - 20 (f)
Sunbeam 0 '18                      12 - 13
Trism 10 3/4 '00                   49 - 53
Trump Castle 11 3/4 '05            81 - 83
Zenith 6 1/4 '11                   16 - 18 (f)



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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.

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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     

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  * * *