TCR_Public/990111.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
  Monday, January 11, 1999, Vol. 3, No. 6


ABLE TELECOM: Defaults on Stock Registration Obligation
AHERF: Creditors Concerned about Fast Pace of AGH Sale
AMERITRUCK: Applies To Employ Investment Banker
AMPACE: Interim Order Authorizing Use of Cash Collateral

BARNEY'S: Rule To Show Cause For New Sublease Terms
BARNEY'S: Strong Holiday Results
BETHLEHEM STEEL: To Close Mills and Eliminate Jobs
BRUNO'S: Seeks Authorization to Sell 9.1 Acres
CAI WIRELESS: Announces New Board of Directors

CALDOR: Stops Paying Vendors
CODED COMMUNICATIONS: Objection To Appointment of Trustee
CODED COMMUNICATIONS: Objection To Transfer Of Venue
COMMERCIAL FINANCIAL: Debtor Seeks Protective Order
EQUITEX INC: Changes Nature of Business

FINE HOST: Prepack Plan Lists Liabilities Of $223.4 Million
HAYES CORP: Hayes UK & Europe Looking For Buyer
KENETECH CORP: Subsidiary Sells Interest in Partnership.
LAMONT'S: Troutman Investment Reports Stock Ownership
MOBILEMEDIA: Seeks Extension of Bondi's Employment

NU-KOTE HOLDING: Authority To Use Cash Collateral
NU-KOTE HOLDING: Court Approves Litigation Counsel
PHP HEALTHCARE: Court Authorizes Committee Counsel
PHP HEALTHCARE: Lender Blasts N.J. Request To Take Cases
PYSICIANS RESOURCE: NationsBank Agrees Not To Take Action

ROASTERS CORP: Disclosure Statement and Joint Plan
SALANT: Has Interim Nod To Borrow $15M Under DIP Pact
SERVICE MERCHANDISE: Citibank Springs for $750MM in Financing
SUN TELEVISION: Auctions Properties
SYQUEST TECH: Taps Special Counsel

THE SCORE BOARD: Committee Seeks Conversion


ABLE TELECOM: Defaults on Stock Registration Obligation
The following is being issued by Asensio & Company, a
member of the National Association of
Securities Dealers, CRD number 31742:

Able Telcom Holding Corp. (Nasdaq: ABTE) has failed to have
the U.S. Securities and Exchange Commission ("SEC") declare
a registration statement covering its common stock
effective.  The registration is required by its Convertible
Preferred Stock Purchase and Registration Rights Agreements
("Preferred").  The Preferred is exploding and converts
into an unknown number of shares creating unlimited
dilution risk to shareholders.  Able Telcom filed
the registration statement on October 22, 1998.  Able
Telcom was required to have a registration statement
declared effective on or before December 27, 1998.  The
filing has not been declared effective.  As a result of
this failure, holders of the Preferred have the right to
redeem their Preferred shares possibly at a 30% premium.
Able Telcom was required and failed to repay its $10
million senior subordinated note plus an additional $3
million in penalty and cost on August 31, 1998 and then on
November 30, 1998.  Able Telcom has admitted that it does
not currently have sufficient funds to repay these notes,
which are senior to the Preferred and are severely past

Able Telcom possesses no ability to meet the Preferred's
penalty redemption obligation.  Able Telcom's Preferred
holders can not convert and sell shares in the open market
without an effective registration.  Any attempt to force
redemption by the Preferred holders would likely lead Able
Telcom to declare bankruptcy.  As a result, the Preferred
holders are now forced to stand still. Able Telcom's senior
creditors, who have a claim on all of its assets, are also
temporarily standing still along with the subordinate note
and low ranking Preferred holders.  Able Telcom's dire
condition leaves even its secured holders with little
recourse.  The equity comes after all these
obligations and also after WorldCom's $30 million note.  
This provides clear and convincing evidence of the lack of
residual value available to Able Telcom's public
shareholders.  However, unlike Able Telcom's debt and
Preferred holders, its public shareholders are able to
sell.  We believe this will undoubtedly cause Able Telcom's
grossly overvalued stock price to soon fall well below $1
per share.

AHERF: Creditors Concerned about Fast Pace of AGH Sale
Creditors of the Allegheny Health, Education and Research
Foundation (AHERF) have told bankruptcy trustee William J.
Scharffenberger that a quick deal to sell AHERF's
Western Pennsylvania hospitals may deter some potential
buyers from even entering a bid, The Pittsburgh Post-
Gazette reported. An attorney for the creditors said, "The
time lines that have been announced...will preclude a
number of very capable purchasers from participating in the
process. Scharffenberger has set a Jan. 15 deadline for
receiver proposals for a merger. The trustee did not
comment but said it is possible that he will ask Allegheny
University Hospital-West to postpone a final choice past
its self-imposed deadline of Jan. 29. (ABI 08-Jan-99)

AMERITRUCK: Applies To Employ Investment Banker
The debtors, Ameritruck Distribution Corp. et al., seek an
order authorizing the retention and employment of CKM
Capital LLC as investment banker and special financial

Due to the debtors' debt and capital structures, the
debtors' reorganization is both complex and time consuming,
and CKM Capital was the investment banker and financial
advisor to the debtor pre-petition, and is aware of the
debtors' financial condition.

The firm will, among other things, analyze the condition of
the debtors, prepare a valuation of the going-concern or
enterprise value of the debtor, assist in negotiating a
plan and term sheet.

The firm will be paid a monthly fee of $50,000 per month.
The firm will also be entitled to a Confirmation Fee, of
$500,000 if the court confirms under the "cram down"
provisions, a plan of reorganization (subject to certain
conditions) and CKM shall be entitled to a Confirmation Fee
of $1 million if CKM's services directly contribute to an
infusion of equity capital and debtor financing. (The
monthly fee will be deducted from the Confirmation Fee).  A
$75,000 retainer fee has been paid to the firm.

AMPACE: Interim Order Authorizing Use of Cash Collateral
By interim court order, the debtors, Ampace Corporation and
Ampace Freightlines, Inc. are authorized to utilize cash
collateral.  A final hearing will be held on January 13,
1999.  The debtors project disbursements each week in
January ranging from $292,783 to $372,790.  Deposits
projected range from $290,000 to $300,000.

The court entered an order on December 30, 1998 on the
motion of BN1 Telecommunications, Inc. for employment of
Scott H. King as the designated representative of the
debtor and approving PricewaterhouseCoopers LLC as the
financial advisor for the debtor.

BARNEY'S: Rule To Show Cause For New Sublease Terms
The Bankruptcy Court entered a Rule To Show Cause why an
order should not be entered allowing Barney's Inc. to
reject an unexpired sublease with Reed Elsevier, Inc. and
to enter into a new lease with reduced rent for the same
location.  the sublease covers certain warehouse space at
245-249 West 17th Street New York, NY, which space the
debtors use to conduct their warehouse sales.  

The current rent ranges from $949,793 in 1999 increasing
each year to $1,336,454 in 2006, and decreasing to $701,638
for years 2008 through 2012. The proposed rent in the new
sublease is $680,000 per year, subject to increase  based
on the CPI-W.  The increased rent shall not be less than
113 percent or greater than 115 percent of the initial
fixed rent.  The additional rent under the new sublease is
also substantially less than the additional rent under the
current sublease.

BARNEY'S: Strong Holiday Results
Barneys New York, a leading luxury retailer, announced
today that the Company posted strong holiday sales results.  
Sales for the five-week period ending January 2, 1999
increased to $41.9 million from $41.0 million for the
corresponding period last year.  On a comparable store  
basis, this marks a 6.1% gain over 1998, also a solid
season for Barneys during which the Company posted an 11%
comparable store gain over 1997 holiday sales. The Company
cited particularly strong performance in the areas of
accessories,  emerging RTW designers, cosmetics and Chelsea

"Despite a difficult early fall season in general for
retail, and in particular for the luxury market, Barneys
continued to perform well, posting strong numbers in both
top-line sales and margin," said Barneys Chief Executive  
Officer Thomas C. Shull.  "These results are further
validation of the strategy which enabled Barneys to
complete its turnaround, resulting in the court's
confirmation of the plan of reorganization in December.  It
is particularly encouraging that in a holiday season of
heavy promotional activity, Barneys met its sales forecast
in a manner consistent with our image and approach to  
protecting the integrity of the Barneys brand."

Barney's Inc. and certain of its subsidiaries filed
voluntary petitions under Chapter 11 of the Bankruptcy Code
on January 10, 1996.  The plan of reorganization was
confirmed by the United States Bankruptcy Court on December  
21, 1998, and the Company's emergence from bankruptcy
protection is expected by  the end of this month. 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.  

BETHLEHEM STEEL: To Close Mills and Eliminate Jobs
Bethlehem Steel Corp., Bethlehem, Pa., announced it is
closing unprofitable mills in Ohio and Pennsylvania, laying
off 540 employees (about 3.1 percent of its work force) and
selling a steel service center operation for $70 million,
The Wall Street Journal reported.  Both of the mills being
closed and the service centers being sold came to the
company as part of its acquisition last year of Lukens Inc.
The company has been trying to sell both mills since it
bought them because they do not fit in with Bethlehem's
core business of carbon and alloy steel, but it has been
unable to find a buyer. The company will continue to search
for a buyer but will stop production at the mills by March
31. Industry analysts said the closings may help the
industry because it takes out some of the capacity
in a market flooded by imports. (ABI 08-Jan-99)

BRUNO'S: Seeks Authorization to Sell 9.1 Acres
The debtors, PWS Holding Corporation and Bruno's Inc. et
al. seek authorization to sell 9.1 acres of land in
Bessemer, Alabama and a 43,500 square foot building
thereon.  The Medical Clinic Board has agreed to pay a
$50,000 deposit and $1,250,000 at closing for the Besmear
property.  A brokerage fee of $52,000 is due Graham &

CAI WIRELESS: Announces New Board of Directors
CAI Wireless Systems, Inc. (OTC BB: CCAI)("CAI") announced
the appointment of a new board of directors  
following the completion of its restructuring. Named to the
CAI Board are Paul M. Albert, Jr., Vernon L. Fotheringham,
Martin G. Mand, and John B. Newman.

Jared E. Abbruzzese, chairman and chief executive officer
of CAI, and incumbent director Robert D. Happ comprise the
balance of the 6-member board.

CAI also announced the resignation of John J. Prisco,
formerly the president and chief operating officer of CAI.
Other members of the senior management of CAI have assumed
the operational duties previously performed by Mr. Prisco.
CAI does not have plans for the immediate replacement of
Mr. Prisco, who resigned to pursue other interests.

CAI, based in Albany, NY, currently operates six analog-
based MMDS subscription video systems in New York City,
Rochester and Albany, NY, Philadelphia, PA, Washington, DC
and Norfolk/Virginia Beach, VA, and provides Internet
access services in Rochester, New York City and Boston. CAI
also owns a portfolio of MMDS channel rights in eight
additional markets, including Long Island, Buffalo and
Syracuse, NY, Providence, RI, Hartford, CT, Boston, MA,
Baltimore, MD and Pittsburgh, PA. In addition, CAI owns
approximately 94% of CS  Wireless Systems, Inc., an MMDS
operator based in Plano, Texas.

CALDOR: Stops Paying Vendors
Caldor Corp., a discount retailer struggling to emerge
from a bankruptcy reorganization, has stopped buying or
receiving merchandise  from its suppliers while it
continues discussions with its creditors.

The Norwalk-based company, now with 145 stores in nine
states and annual sales of $2.5 billion, filed for
protection from creditors in September 1995 under Chapter
11 of the U.S. Bankruptcy Code while it tried to reorganize
its  finances. It had hoped to emerge from bankruptcy this
coming spring.

Wendi Kopsick, a Caldor spokeswoman, would not comment on
the current situation and whether it will force closing of
any or all Caldor stores.

"The company has suspended payment for merchandise shipment
and has also suspended its receipt of merchandise for which
it has not paid while it continues its discussions with its
creditor contingencies," Kopsick said  

Kurt Barnard of Barnard Consulting Group in Upper
Montclair, N.J., said the stores are poorly run. "Caldor
has been a loser for at least three years," he said. "There
is absolutely no chance that they could recover as a stand-
alone small, discount operation."

In February 1998, Caldor announced it would close 12
unprofitable stores, including all of its stores in the
Washington, D.C., area. At that time, officials said Caldor
wanted to concentrate on its main markets in New England  
and the Middle Atlantic states.

CODED COMMUNICATIONS: Objection To Appointment of Trustee
The debtors, Coded Communications, et al. respond to the
Pauken motion for an order directing the appointment of an
independent Trustee.

The debtor states the movant has failed to demonstrate
cause justifying the appointment of a trustee.  The debtor
states that this motion as well as the motion to transfer
venue are nothing more than misguided efforts by the e
liquidating trustee of a failed investment partnership to
improve its position as against other creditors and to
carry out " some form of vendetta against the majority
shareholder of Coded Communications."

The debtor states that the appointment of a trustee is an
extraordinary measure and that contrary to the movant's
contentions, the debtor's current management is
unequivocally capable of competently and loyally steering
the debtor through to a successful reorganization.  The
debtor's state that there was no fraudulent scheme in
connection with the conversion of the movant's amended 6%
convertible debenture into shares of the debtor's Series B
Preferred Stock.  The debtor states that there is no claim
that this "scheme" was ongoing or that it involved any
assets of the debtor, and therefore can not form the basis
for the appointment of a trustee.  The debtor states that
the added expense and the removal of the current management
would both be detrimental to the case.

CODED COMMUNICATIONS: Objection To Transfer Of Venue
The debtors, Coded Communications Corporation, et al,
object to the motion of Thomas Pauken as Liquidating
Trustee for Renaissance Capital Partners, II, Ltd's motion
to transfer venue to the southern District of California.

The debtors state that the case is properly brought in the
District of Delaware.  The debtors are all Delaware
corporations and domiciliaries of Delaware.  The debtors
state that the primary reason that movant requests venue be
transferred is to gain access to witnesses and documentary
evidence for a Texas lawsuit against the debtors and
others.  The debtor states that although its headquarters
are in California, the debtor has operations in Florida and
has been negotiating with representatives in Virginia for
substantial contract work and for the development of a
further relationship which could entail a profitable
business combination.   The debtor also states that most of
the debtor's creditors are located in California, but none
have objected to venue in Delaware.  The debtor states that
it would be a wasted expense to now move the case to
California and that the court should weigh most heavily the
debtor's choice of forum.

COMMERCIAL FINANCIAL: Debtor Seeks Protective Order
Commercial Financial Services Inc.'s request that the court
grant a protective order shielding information contained in
a report CFS commissioned after allegations surfaced that
its sales had been fraudulently depicted has been met with
opposition by both the indenture trustee and the U.S.
Trustee in the case.  CFS seeks to restrict the release of
an interim "scope of services" report prepared by
PricewaterhouseCoopers LLP.  The bad-debt buyer hired PwC
shortly after an anonymous letter was circulated to credit
agencies responsible for rating CFS's securizations.  The
letter alleged that some of the collections reported by CFS
were actually the result of sales of the credit card
accounts themselves, according to the Dec. 21 motion.  CFS
proposes that it release PwC's report, "as well as
additional non-public and non-privileged information
concerning the Debtors' finances and operations, to
interested parties," but only to certain parties that sign
confidentiality agreements, according to the Dec. 21
motion.  Both the U.S. Trustee and the indenture trustee
filed objections to the motion, arguing that the
application was inconsistent with the Bankruptcy Code, in
conflict with laws governing the release of information, or
plainly unnecessary.  Further, a protective order would
present undue hardship on interested parties, they contend.
(Federal Filings Inc. 08-Jan-99)

EQUITEX INC: Changes Nature of Business
Equitex, Inc., a business  development  company notifies  
the Securities and Exchange  Commission that it withdraws
its election to be subject to sections  55 through 65 of
the  Investment  Company Act of 1940 pursuant to the  
provisions of section 54(c) of the Act, and in connection  
with such notice of withdrawal of election submits the
following information:

The company has changed the nature of its business so as to
cease to be a business development company, and such change
was authorized by the vote of a majority of its  
outstanding  voting  securities or partnership  interests.  
The company's new business is as a financial services  
marketing  company  offering various financial products
targeted to the sub-prime consumer. On April 4, 1998, the  
stockholders approved a proposal to withdraw the election
of the company's status as a business development company.  
2,733,943 votes were cast in favor of the proposal and
15,365 votes were opposed.

FINE HOST: Prepack Plan Lists Liabilities Of $223.4 Million
Fine Host Corp.'s prepackaged Chapter 11 petition and
reorganization plan, filed Thursday in the U.S. Bankruptcy
Court in Wilmington, Del., lists the company's assets and
liabilities at about $262 million and $223.4 million,
respectively, as of Sept. 30.  The Greenwich, Conn.-based
food service and catering provider said it had reached an
agreement with a committee representing its noteholders on
a financial restructuring of the company that would be
accomplished through a bankruptcy filing. Under the terms
of the proposed reorganization plan, 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% of the reorganized company's
outstanding common stock and approximately $45 million in
cash.  Subject to noteholder acceptance of the plan, former
and current noteholders having claims for rescission or
damages relating to the disclosure of the company's
accounting irregularities are expected to receive about 3%
of the new common stock, warrants to purchase additional
shares as well as participate in a litigation trust.  If
noteholders do not accept the plan, the class will not
receive distributions. (Federal Filings Inc. 08-Jan-99)

HAYES CORP: Hayes UK & Europe Looking For Buyer
Despite all the problems with the parent company in the US,
the UK-headquartered Hayes Europe operation is still going
strong, according to Newsbytes.

While these problems have had some effect on Hayes Europe,
officials with the Fleet-based company say that they are
still trading with stocks of communications hardware, and
that a buyer for the autonomous European operation, is
being actively sought.  Newsbytes' sources suggest that the
prospects for the sale of the European operation are quite
good, with several parties already having expressed an  
interest.  "The key fact to remember is that the European
operation is a distinct operation from the US one and,
although it is ultimately owned by Hayes in the US, it is
still trading profitably, despite all the problems with the
firm in the US," a spokesperson for the company told

According to Nigel Croisdale, Hayes' vice president of
international operations, meanwhile, the autonomous UK and
European operation remains intact, profitable and solvent.
"We have strong market share in key countries and do not
rely on the US for product supply or financing. Hayes
Europe is the jewel in the crown of Hayes Corporation. In
1998 it has traded profitably, and has expanded its
business year-on-year," he said.  According to Croisdale,
the firm will continue to operate, and is currently in
active negotiations with a number of third parties to
invest in Hayes Europe, to consolidate and maintain its

Newsbytes' sources suggest that a buyer for the UK and
European operation may be announced as early as next week.

KENETECH CORP: Subsidiary Sells Interest in Partnership
On December 23, 1998 Kenetech Corporation filed a current
report with the SEC.  On December 23, 1998,  KENETECH  
Energy  Systems,  Inc., a Delaware  corporation ("KES"),  a  
wholly-owned   subsidiary  of  KENETECH  Corporation, a  
Delaware corporation), sold its indirectly owned 50% equity
interest in a partnership that owns a gas-fired  
cogeneration  facility of approximately 540 MW currently
under  construction  in Penuelas,  Puerto Rico (the  
"EcoElectrica Project") and other associated contract
rights (collectively,  the "EcoElectrica Interest")  to
Edison  Mission  Energy,  an unrelated  party.  The
EcoElectrica Project also includes a liquefied  natural  
gas import  terminal  and storage facility, a desalination
plant and assorted ancillary  facilities.  The sale was
made pursuant to a Stock Purchase and Assignment Agreement,
dated as of December 23, 1998, by and among KES and certain
of its  affiliates  and Edison  Mission Energy and one of
its affiliates.

The  EcoElectrica  Interest  was sold for cash and  
assumption  of a KES  equity funding  commitment in the  
approximate  aggregate  amount of $247 million.  The
consideration  received for the  EcoElectrica  Interest was  
determined  from an auction  solicitation  for such
interest conducted by KES's and the Registrant's financial  
advisor.  The proceeds have been used (i) to satisfy and
discharge in full, in the amount of approximately  $145.5
million,  the Registrant's 12 3/4%Senior Secured Notes due
2002 after  acceleration by the Trustee for such notes, on
December 23, 1998, of the unpaid principal thereof in the
face amount of $100million,  accrued and unpaid interest
and fees and expenses,  (ii) in payment in full of a  
development  loan for the  EcoElectrica  Project  in the  
approximate amount of $27 million,  (iii) in payment of
$6.5 million to KENETECH  Windpower, Inc., a wholly-owned
subsidiary of the company ("KWI"), under the terms of a
Settlement Agreement  and  Release  approved  by the  
Bankruptcy  Court  having jurisdiction  over KWI's chapter
11 proceeding,  and (iv) in payment of costs of sale of the
EcoElectrica Interest of approximately $11 million.

LAMONT'S: Troutman Investment Reports Stock Ownership
Troutman Investment Company reports to the SEC that it owns
the following securities of Lamont's Apparel Inc:
(i) 2,925,140 shares of Class A Common Stock, which
constitute 32.50% of the outstanding shares; (ii) Class A
Warrants to purchase 1,810,380 shares of Class A Common
Stock, which constitute 82.17% of the outstanding Class A
Warrants; and (iii) Class B Warrants to purchase 581,181
shares of Class A Common Stock, which constitute 72.63% of
the outstanding Class B Warrants.

The Class A Warrants are exercisable, in whole or in part,
on the first date on which the Aggregate Equity Trading
Value (as defined below) equals or exceeds $20 million.  
The Class B Warrants are exercisable, in whole or in part,
on the first date on which the Aggregate Equity Trading
Value equals or exceeds $25 million.  "Aggregate Equity
Trading Value" means, as of any date, the product of
(a) either (i) if the Common Stock is listed on any
national securities exchange or quoted on a national
quotation system, the average of the daily closing prices
of the Common Stock for the five trading days immediately
preceding that date, or (ii) if the Common Stock is not so
listed or quoted, the fair market value per share of the
Common Stock determined in good faith by the Issuer's board
of directors as of a date within 30 days of that date,
multiplied by (b) the total number of issued and
outstanding shares of Common Stock as of that date
(assuming, for purposes of determining that number of
shares, the exercise in full of all in-the-money options
outstanding on that date to purchase shares of Common Stock
and the exercise of all Class B Warrants that
are exercisable as of that date).

If all the Class A Warrants and Class B Warrants were
exercised, Troutman would own a total of 5,316,701 shares
of Class A Common Stock, or 59.07% of the outstanding
shares. Troutman does not expect the warrants to be
exercised within the next 60 days.

Troutman has sole voting and dispositive power with respect
to all 2,925,140 shares of Class A Common Stock, 1,810,380
Class A Warrants and 581,181 Class B Warrants. Troutman
does not share voting or dispositive power with
respect to any of the shares or warrants.

Troutman acquired the shares and warrants covered by this
Schedule 13D on December 23, 1998.  The price per share for
the Class A Common Stock was $0.5918.  The price per
warrant for the Class A Warrants and Class B Warrants
was $0.01.  

The acquisition was effected pursuant to a Stock Purchase
Agreement between Troutman and various shareholders of the
company.  The total consideration for Troutman's
acquisition of the Issuer's Class A Common Stock, Class A
Warrants and Class B Warrants was $1,755,084.00 and the
source was Troutman's working capital.

MOBILEMEDIA: Seeks Extension of Bondi's Employment
The debtors, Mobilemedia Communications, Inc., et al. seek
an order approving the amendment of an employment agreement
with Joseph A. Bondi.  Bondi has been serving as the
Chairman-Restructuring of the debtors and overseeing all
aspects of the debtor's reorganization efforts since
February 10, 1997.  

The debtors are seeking to extend the term of Mr. Bondi's
engagement one additional year to January 30, 2000.  If the
plan is effective on or before June 30, 1999, Bondi's
annual incentive compensation for 1999 will be fixed at his
current target bonus level - 75% of his base salary and
Bondi will be required to submit a further application to
the court for the "success fee" provided in the Bondi

NU-KOTE HOLDING: Authority To Use Cash Collateral
The court entered an order on January 4, 1999 authorizing
the debtors, Nu-KOte Holding Inc. and its affiliates to use
Cash Collateral pursunat to the terms of the order
effective nunc pro tunc from December 11, 1998.

As of the Petition Date, the Lenders assert that they hold
valid, enforceable, and allowable claims against the
debtors pursuant to the pre-petition indebtedness documents
and applicable law in the aggregate principal amount of not
less than approximately $141,559,699.94 plus interest and

NU-KOTE HOLDING: Court Approves Litigation Counsel
Nu-Kote International Inc., seeks authority to employ and
retain Coudert Brothers Law Firm as special litigation
counsel for debtor.  

The debtor seeks to hire the firm as counsel in three cases
all of which are now pending.  The plaintiffs in the cases
are Hewlett-Packard Company, Seiko-Epson Corporation and
Canon Computer Systems, Inc. The firm is already involved
in these cases, and the debtor states that it has chosen
this firm due to its expertise in anti-trust patent and
trademark litigation.

PHP HEALTHCARE: Court Authorizes Committee Counsel
The court entered an order in the case of PHP Healthcare
Corporation authorizing the Official Committee of Unsecured
Creditors to employ and retain the law firm of Cole,
Schotz, Meisel, Forman & Leonard, PA nunc pro tunc to
December 7, 1998.

PHP HEALTHCARE: Lender Blasts N.J. Request To Take Cases
PHP Healthcare, its debtor-in-possession lender and
official unsecured creditors' committee responded to New
Jersey regulators' request to transfer venue of PHP's
Pinnacle Health Enterprises LLC and PHP NJ MSO Inc. units's
Chapter 7 cases from Delaware to Trenton, N.J., with
scathing criticism of the state's intentions and overall
handing of the units' cash crisis.  Commissioners of New
Jersey's Department of Banking and Insurance and Department
of Health and Senior Services, respectively, contended in a
Nov. 25 change-of-venue motion that the principal asset of
the units' estates is the relationship between Pinnacle and
HIP Health Plan of New Jersey (NJ HIP), which affects more
than 193,000 state residents and about 9,000 healhcare
providers.  Amid allegations of reporting irregularities,
the Superior Court of Middlesex County, N.J., seized the
affiliates' assets and placed NJ HIP in state
rehabilitation on Nov. 20, the day after PHP and the two
units filed for Chapter 11 protection. (Federal Filings
Inc. 08-Jan-99)

PYSICIANS RESOURCE: NationsBank Agrees Not To Take Action
On December 31, 1998, Physicians Resource Group, Inc.
(NYSE: PRG)announced that NationsBank has agreed not to
take any action prior to January 11, 1999 with respect to
its $9.5 million loan to the Company due December 31, 1998.  
The Company continues to work with NationsBank and the
individual guarantors of the NationsBank loan to obtain an
acceptable arrangement to permit the Company to pursue its
restructuring.  As a result of the continued default on the
NationsBank loan, the Company is restricted under
applicable subordination provisions from paying interest
due on December 1, 1998 on its outstanding $125 million 6%
Convertible Subordinated Debentures due 2001.  The maturity
of the Debentures could be accelerated by the Debenture
Trustee or holders of 25% aggregate principal amount of the
Debentures after today as a result of such non-payment.

PRG is a provider of physician practice management services
to eye care practices and operates ambulatory surgery

ROASTERS CORP: Disclosure Statement and Joint Plan
On December 22, 1998, the court approved the second amended
joint disclosure statement as modified.  January 27, 1999
is fixed as the last day for filing written acceptances or
rejection of the plan.  A hearing on confirmation of the
Second Joint Amended Plan will be held on February 18, 1999
at 9:30 AM in the Courtroom, Peoples security Building, 300
West Morgan Street, Durham, North Carolina.

The plan of reorganization of Roaster Corp. and Roaster
Franchise Corp., debtors, is based upon substantive
consolidation of the debtors and provides for the
continuation by many, if not all, of the current active
franchisees of their restaurant operations under the
concept of Kenny Rogers Roasters restaurants.

The debtor will assume and assign certain executory
contracts along with the transfer of certain assets to an
unrelated entity FMI-RFC which is to be created as a
subsidiary of Franchise Managemnet Internatioanl, Inc.  
FMI-RFC will pay or deliver to Roasters corp., on the
Closing Date, $1 million in cash.  On the Closing Date,
FMI-RFC shall offer to participating franchisees the
opportunity to subscribe for the purchase of twenty percent
of the FMI-RFC common stock, pro rata based upon the number
of store locations, for an aggregate subscription price of

Summary of the plan:

Class 1- Administration Expenses entitled to priority - to
be paid in full.

Class 2- Employee Wage or Benefit Claims entitled to
priority - to be  paid in full.

Class 3- Tax Claims entitled to priority - to be paid in

Class 4- Secured Claim of Citicorp - Citicorp has a
properly perfected lien upon funds of the debtors on
deposit in an account at Merrill Lynch in the amount of
$1,504,887.  Citicorp is an oversecured creditor of the
debtors, and it shall retain all of its rights in the Loss
Reserve Account.  the debtors will be discharged and
released of any liability to Citicorp exceeding the Loss
Reserve Account.  The Class 4 Claim is impaired.

Class 5- Secured Claim of Berjaya - Berjaya alleges a claim
in this case of approximately $12 million. Absent election
of the Alternative Treatment this class includes the
outstanding balance of the Berjaya Secured Claim, secured
by a disputed lien asserted against all or substantially
all the tangible or intangible assets of the debtors.  The
Berjaya Secured Claim is estimated at $1.3 million for
purposes of voting and plan confirmation.
The Class 5 Claim is impaired.

Class 6- Claims of Active Franchisees - Debtor will seek to
assume and assign to FMI-RFC the existing franchise
agreement or master development agreement with each Active
Franchisee. The Class 6 claims are impaired.

Class 7- Claim of Kenny Rogers - The License and Service
Agreement will be assumed by Roaster Corp., and assigned to
FMI-RFC pursuant to the Code. The claim is not impaired.

Class 8- Claims of General Unsecured Creditors - Class 8
Creditors shall be paid to the extent of available cash
after all Class 1, 2, and 3 claims have been paid in full,
pro rata and pari passu witht the Class 9 claims of Berjaya
unless Berjaya elects the Alternative Treatment or the
Allowed Unsecured Claim of Berjaya is subordinated by the
court. Class 8 claims are impaired.

Class 9- Unsecured Claim of Berjaya and RAP if Berjaya does
not elect the Alternative Treatment under Class 5.
Claim shall be paid to the extent of available cash after
all Class 1,2, and 3 claims have been paid in full, pro
rata and pari passu with the Class 8 general unsecured
claims. The class 9 claim is impaired.

Class 10- Preferred Stock holders - Paid from available
cash after all allowed claims have been paid in full.  
Class 10 interests are impaired.

Class 11- Common Stock holders - Paid from available cash
after all allowed claims and allowed class 10 interests
have been paid in full. Class 11 interests are impaired.

Class 12- Interests of Roasters Corp. On the Effective
Date, the interests of Roasters Corp., as owner of all the
issued and outstanding common stock of Roaster s Franchise
Corp., shall be terminated, canceled and extinguished.
Class 12 interests are impaired.

The Committee of Unsecured Creditors sent a letter to
creditors of Roaster Corporation and Roaster s Franchise
Corporation stating the at the Committee does not support
the plan in its current form and recommends rejection of
the plan.  The Committee believes that $1 million is not
sufficient payment for the assets being sold by the debtors
to FMI.  The Committee believes that the debtors are not
receiving sufficient value in exchange for the treatment
being offered to Berjaya.

SALANT: Has Interim Nod To Borrow $15M Under DIP Pact
Salant Corp. has received interim approval to borrow up to
$15 million under its $85 million debtor-in-possession
credit facility from prepetition lender The CIT  
Group/Commercial Services Inc. The court concluded that
"without the proposed interim financing, Salant will not
have the funds necessary to pay its post-petition payroll,
payroll taxes, inventory supplies, overhead and other
expenses necessary to conduct its business and the
management and preservation of its assets and properties,"
according to the order signed Dec. 29, the same day Salant
filed its prepackaged plan of reorganization. Under the DIP
agreement with CIT, Salant may borrow up to $85 million,
including a $30 million sub-limit for letters of credit,
subject to availability limitations based on collateral
that consists primarily of accounts receivable and
inventory. (The Daily Bankruptcy Review and ABI Copyright c
January 8, 1999)

SERVICE MERCHANDISE: Citibank Springs for $750MM in Financing
Three weeks after missing an interest payment, news wire reports
curculated over the weekend report that Service Merchandise
has obtained $750 million in new financing and that its chief
executive had resigned.  A replacement for CEO Gary Witkin was
to be named shortly.  Meanwhile, the Tennessee-based retailer
appointed former CEO Raymond Zimmerman, the non-executive
chairman of its board Friday.   The new funding, from Citibank,
will help Service Merchandise make a $13.5 million interest
payment on its bonds and pay down its $900 million credit
facility from Chase Manhattan Bank.

SUN TELEVISION: Auctions Properties
Sun Television and Appliances, Inc. (OTC BULLETIN BOARD:
SNTV) reported today that in an auction held on January 6,
1999  MTB Corp. submitted the highest and best offer for
the sale of 11 company-owned  properties and seven leased
properties for approximate cash consideration of  $20.1
million, subject to certain adjustments and Bankruptcy
Court approval on  January 13, 1999.  The Company said that
the proceeds would be used to repay a portion of the
amounts owed to the Company's creditors.

The Company said the MTB Corp. transaction included the
sale of eleven company-owned properties including two store
properties and one unimproved land parcel in Columbus,
Ohio; one store property and land parcel each in St.
Clairsville, Youngstown, Ontario, Warren, Cuyahoga Falls,
Canton and an unimproved land parcel in Chillicothe, Ohio;
and one property and land parcel in Erie, Pennsylvania.  
MTB Corp. also acquired seven leases for locations
including two in Columbus, Ohio; and one each in Newark,
Zanesville, Chillicothe, Findlay and  Lancaster, Ohio.

R. Carter Pate, Sun Chairman and CEO, said "We have in
large measure completed the inventory liquidation and this
property auction represents one of the last major
transactions to liquidate the company. We expect to
complete the liquidation and wrap-up of company affairs
during the first quarter. Unfortunately, and with regret,
we believe at this point that shareholders will
not recognize any value associated with their investment in
Sun Television and Appliances common stock." The Company
had previously indicated in its first quarter Securities
and Exchange Commission 10-Q filing that it was unlikely  
that the Company's stockholders would recognize any value
for their stock.   

SYQUEST TECH: Taps Special Counsel
Syquest Technology, Inc. requests authority to employ the
firm of Burns, Doane, Swecker & Mathis LLP as special
counsel.  Syquest will require the services of special
counsel to prosecute and trademark applications, to provide
counsel relating to inquiries and actions by the United
States Patent Office and to assist in preparation of
required applications and forms to the extent they are

The debtor agrees to pay the firm its hourly rates, ranging
from $400 per hour to $90 per hour for paralegals.

There is a prepetition unsecured obligation for unpaid fees
in the approximate amount of $9,920, which Syquest and
Burns agree is payable only pursuant to a confirmed plan of

THE SCORE BOARD: Committee Seeks Conversion
The Official Committee of Unsecured Creditors of The Score
Board, Inc. and The Score Board Holding Corporation,
debtors seek a court order converting the debtors' Chapter
11 cases to cases under Chapter 7 of the Bankruptcy Code.

The Committee states that the only true beneficiary of the
Chapter 11 process has been the debtors' pre-and post-
petition secured lender, Congress Financial Corporation.  
Since no progress has been made in discussions between the
Committee and Congress in arriving at a framework for a
consensual liquidating Chapter 11 plan which would benefit
all creditor constituencies, it is apparent that the
liquidation of the debtors' estates should be administered
in Chapter 7.

The debtors' "hard" assets have all been sold with the
proceeds sufficient to satisfy only approximately half of
Congress' debt.  Therefore, the Committee states, the
debtor and Congress are content to bring the $2 million
Congress deficiency to as low a level as possible through
the resolution of disputed accounts receivable.  In the
meantime, other potentially significant assets that could
provide recoveries to the more than $8 million of unsecured
claims - consisting of avoidance actions, and causes of
actions against former directors and officers and a $5
million insurance policy (the "D&O" policy) have not been

The Committee states that there is no legitimate reason why
these cases should continue to be administered in Chapter


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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.  

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