TCR_Public/990210.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, February 9, 1999, Vol. 3, No. 27

                   Headlines

AL TECH: Seeks To Hire Real Estate Appraiser
ALPHANET TELECOM: Files Assignment in Bankruptcy
ATLAS CORP: Order Directs Joint Administration
BENNETT FUNDING: Mastermind Testifies In His Own Defense
BRUNO'S: Seeks Approval of Sale of Georgia Property

CALDOR: Wal-Mart Bids On Stores
CFS: To Sell Overseas Unit
CONTINENTAL INVESTMENT: Independent Directors Appointed
ENSEC INTERNATIONAL: Changes Accounting Firms
FIRST MERCHANTS CORP: Annual Meeting of Shareholders

FORCENERGY: Equity Investment Terminated
FULCRUM DIRECT: Seeks Extension of Exclusive Periods
JUMBOSPORTS: Court Approves Special Counsel
LIVENT: Judge Approves Access To Final $11.5 Million
LONG JOHN: Seeks Authority To Enter Distribution Agreement

MOBILE ENERGY: Seeks Authority For Contract With EJ Hodder
NU-KOTE: PricewaterhouseCoopers Named Special Accountants
NU-KOTE: Applies to Hire Real Estate Broker
OKURA & CO: Joint Motion For Exclusivity Extension
OMEGA ENVIRONMENTAL: Hearing Set for Sale of Assets

ONE STOP: Cellexis Objects To Disclosure Statement
PERK DEVELOPMENT: On Re-Entering Upstate NY Market
PHP HEALTHCARE: Employment of Arthur Andersen Approved
PRIMESTAR: Commences Tender Offer and Solicitation
PROVENCE RESTAURANT: Files Chapter 11

RESURGENCE PROPERTIES: Board Approves Liquidating Dividends
SCOTT CABLE: IRS Fighting For Sale Proceeds
SERVICE MERCHANDISE: To Close Up To 134 Stores                  
SYQUEST TECHNOLOGY: Hearing Scheduled For Asset Sale
THE CARE GROUP INC: Order Confirms Plan

                   *********


AL TECH: Seeks To Hire Real Estate Appraiser
--------------------------------------------
The debtor, AL Tech Specialty Steel Corporation is seeking
a court order approving the employment of GAR Associates
Inc. as real estate appraiser for the debtor for the
purpose of preparing an appraisal in connection with a
proceeding for reduction of the debtor's tax assessment on
its industrial facility located in Dunkirk, New York, which
is comprised of thirteen tax parcels of improved real
property.  The purpose of the appraisal is to help
substantiate the debtor's assertion that the property has
been overvalued by the City of Dunkirk for assessment
purposes.

The debtor and GAR have agreed to a flat fee of $11,000.


ALPHANET TELECOM: Files Assignment in Bankruptcy
------------------------------------------------
AlphaNet Telecom Inc. (TSE:FAX) announced that
it has filed an assignment in bankruptcy under the
Bankruptcy and Insolvency Act. PricewaterhouseCoopers Inc.
has been appointed Trustee.

This decision reflects the fact that the corporation has
been unable to secure the necessary financing to enable it
to continue its operations. The need for additional
financing had been identified in a November 4, 1998 press  
release. The corporation also announced on December 8, 1998
that it had engaged external financial advisors to support
and supplement management's ongoing efforts to attract
strategic and/or financial partners and examine other  
financing alternatives. The Directors have concluded that
all possibilities for achieving financing and strategic
solutions in the time available have been exhausted.

In light of this assignment, the corporation's Directors
have resigned.  The corporation also announced that,
subject to finalizing standard terms and conditions, it has
accepted an offer to purchase its hospitality business  
unit, AlphaNet Hospitality Systems Inc. The corporation's
Board of Directors concluded that acceptance of this offer
is in the best interests of the corporation. The Board also
determined that the proceeds of the sale would not be
sufficient to fund the continued operations of the
corporation.


ATLAS CORP: Order Directs Joint Administration
----------------------------------------------
Judge Donald E. Cordova entered an order on February 2,
1999 directing the cases of Atlas Corporation, Atlas Gold
Mining, Inc. and Atlas Precious Metals, Inc. to be jointly
administered for administrative purposes only.  The
substantive rights of creditors of the estates will not be
affected.


BENNETT FUNDING: Mastermind Testifies In His Own Defense
--------------------------------------------------------    
Patrick R. Bennett, who is allegedly the mastermind behind
one of the largest U.S. Ponzi schemes, testified in his own
defense and tried to portray himself as unsophisticated in
dealing with complicated business transactions, The Wall
Street Journal reported. Bennett is the former CFO of
Bennett Funding Group Inc., a Syracuse, N.Y., office
equipmentleasing firm that cheated investors out of more
than $700 million and filed for bankruptcy protection in
1996. Bennett said he did not finish college and
has little knowledge of accounting principles. Bennett
tried to shift the blame to other company officers,
including a former vice president, who pleaded guilty to
fraud charges and testified against Bennett. He is accused
of using his business to defraud investors by allegedly
selling the same lease contracts to more than one investor,
selling fictitious leases and selling leases that had been
pledged to banks and other financial institutions.
He also allegedly overstated company profits and removed
troubled assets from the company's books. (ABI 09-Feb-99)


BRUNO'S: Seeks Approval of Sale of Georgia Property
---------------------------------------------------
The debtors, PWS Holding Corporation, Bruno's, Inc., et
al., seek authorization to sell the debtors' interest in a
4.476 acre tract of real property located in Thomaston,
Georgia and the improvements.  The proposed purchaser is
Five Forks LLC, and the purchase price is $1,075,000.  The
debtors do not own the property.  SSS Enterprises, a
debtor, owns 50% of PM Associates (non-debtor), which, in
turn, owns the Thomaston Property.  While the debtors do
not believe that they need court approval for the sale, the
Title Company issuing the policy is requiring bankruptcy
court approval as a condition to the sale.  


CALDOR: Wal-Mart Bids On Stores
-------------------------------
Wal-Mart Stores Inc. Monday bid about $75 million to buy 13
stores that discount retailer Caldor Corp. plans to sell as
part of its bankruptcy liquidation.

Caldor said last month that it's going out of business,
shutting its 145 discount stores and cutting about 20,000
jobs. It will auction its properties Feb. 22 in Manhattan.

Kohl's Corp., a department store chain, last week said it
agreed to acquire the rights to 33 Caldor stores in New
York, Connecticut and New Jersey.


CFS: To Sell Overseas Unit
--------------------------    
Commercial Financial Services Inc. is asking the court to
approve the sale of its London-based unit CFS International
Ltd. to Olympia Capital ASA of Norway for a total
consideration of $5.74 million, subject to better offers.
An auction on CFS International, if competing bids have
come in, is scheduled for today. Meanwhile, the court
approved CFS' rejection of an option agreement with Oral
Roberts University, which granted the religious
institution an option to compel CFS to buy certain property
in Tulsa for $120 million, subject to adjustments. It is
the second time in as many encounters with Oral Roberts
University that CFS has prevailed. The university recently
lost its bid to obtain $430,000 of the $2.9 million in
escrowed funds in the case to pay prepetition workers and
contractors. (The Daily Bankruptcy Review and ABI Copyright
c February 9, 1999)


CONTINENTAL INVESTMENT: Independent Directors Appointed
------------------------------------------------------
Continental Investment Corporation (OTC Bulletin Board:
CICG) announced on February 8, 1999 that on January 28,
1999 United States District Judge A. Joe Fish issued a
preliminary injunction in a case brought by CICG's three
independent directors and a major shareholder.

Finding that the Plaintiffs in the case had shown a
substantial likelihood of success on their claims that the
defendants had violated the federal securities
laws by among other things, soliciting proxies without
disseminating a proxy statement, the Court voided the
purported election of replacement directors at an October
15, 1998 shareholders meeting and re-installed Jerry B.
Morris,  Martin G. Blahitka and Robert D. Luna as directors
of CICG.  The Court also enjoined former CICG Chairman R.
Dale Sterritt, and those acting in concert with him,
pending trial, from purporting to act as directors of CICG
or from causing CICG to take any action.  In addition, the
Court sterilized the voting rights of Sterritt and those
acting in concert with him unless and until certain legally
mandated disclosures are made.

Sterritt's attempted replacement of the independent
director was sparked by their decision to investigate
allegations of improprieties lodged against  
Sterritt and others by CICG shareholders, and their
decision to suspend Sterritt as CICG's chairman, pending
that investigation.  These and related matters, including
an involuntary bankruptcy filed against CICG are
currently  the subject of a number of lawsuits, mostly in
the Dallas federal courts.

The three independent directors, who now constitute the
Board of Directors of CICG, issued the following statement:
"We are very pleased by the Court's action.  We intend to
complete our investigation into allegations of wrongdoing
by Mr. Sterritt, and others, and to take whatever actions
are appropriate to safeguard and advance the interests of
CICG and its shareholders.  At the same time, we have a
business to run.  We intend to do our very best to build
both  the business of CICG and the confidence of its
shareholders."


ENSEC INTERNATIONAL: Changes Accounting Firms
---------------------------------------------
On January 27, 1999, Ensec International, Inc. appointed
the accounting firm of Rothstein, Kass & Company, P.C.
of New York, New York, as principal independent accountants
for the fiscal year ended December 31, 1998 to replace
Grant Thornton, LLP who were dismissed as principal
independent accountants effective with such appointment.
The company's Board of Directors approved the decision to
dismiss Grant Thornton,LLP and appoint Rothstein, Kass &
Company, P.C.

During the two most recent fiscal years and interim period
subsequent through January 26, 1999, there have been no
disagreements with Grant Thornton, LLP on any matter of
accounting principles or practices, financial statement
disclosure or auditing scope or procedure or any other
reportable events.

Grant Thornton, LLP's report on the financial statements
for the past two years contained no adverse opinion or
disclaimer of opinion and was not qualified or modified as
to uncertainty, audit scope or accounting principles,
except that their report dated April 8, 1998 in the
Registrant's Form 10-KSB for the fiscal year ended December
31, 1997 was qualified expressing substantial doubt about
the Registrant's ability to continue as a going concern.

By letter, Grant Thornton LLP agrees with the statements
made by Ensec International, Inc.


FIRST MERCHANTS CORP: Annual Meeting of Shareholders
----------------------------------------------------
The annual meeting of the shareholders of First Merchants
Corporation will be held at the Horizon Convention Center,
401 South High Street, Muncie, Indiana 47305, on Wednesday,
April 14, 1999, at 3:30 p.m. for the following purposes:

** To elect four directors, to hold office for a term of
three years and until their successors are duly elected and
qualified.

**  To act on a proposal to approve the First Merchants
Corporation 1999 Long-Term Equity Incentive Plan.

** To act on a proposal to approve the First Merchants
Corporation 1999 Employee Stock Purchase Plan.

** To act on a proposal to amend First Merchants
Corporation's Articles of Incorporation to increase the
number of shares of common stock which the Corporation is
authorized to issue from 20,000,000 shares to
50,000,000 shares.  

** To ratify the appointment of the firm of Olive LLP as
independent public accountants for 1999.  

** To transact such other business as may properly come
before the meeting.       

A complete text copy of the Preliminary Proxy Statement is
available via the Internet at
http://www.sec.gov/Archives/edgar/data/0001047469-99-
003129.txt


FORCENERGY: Equity Investment Terminated
----------------------------------------
On January 22, 1999, Forcenergy Inc announced by
press release that it is no longer engaged in discussions
with Madison Dearborn Partners, Inc. and Oaktree Capital
Management, L.L.C. concerning the issuance of preferred
stock pursuant to a Stock Purchase Agreement, dated
November 12, 1998, among the Forcenergy and the Purchasers
named therein.

Forcenergy previously announced by press release on
December 31,1998 that Forcenergy had not met all of the
conditions to the closing and that the Purchasers were not
obligated and did not intend to make an equity investment
in Forcenergy on the terms previously disclosed. Forcenergy
was unable to reach terms under which Madison Dearborn
Partners, Inc. and Oaktree Capital Management, L.L.C. would
be willing to move forward with an investment in
Forcenergy. The Stock Purchase Agreement was terminated by
Madison Dearborn Partners, Inc. and Oaktree Capital
Management, L.L.C. by letter to Forcenergy dated January
21, 1999.

Forcenergy is currently evaluating other alternatives to
reduce debt, strengthen its balance sheet and position the
company to capitalize on opportunities within its existing
asset base.


FULCRUM DIRECT: Seeks Extension of Exclusive Periods
----------------------------------------------------
Fulcrum Direct, Inc., debtor and its debtor affiliates seek
an order granting an extension of their exclusive period
within which they may file a plan or plans of
reorganization through and including April 30, 1999 and an
extension of the exclusive period within which they may
solicit acceptances of any such plan through and including
June 30, 1999.

The debtors submits that the current deadline period does
not afford Fulcrum a realistic opportunity to formulate a
comprehensive plan of liquidation.  Until Fulcrum has had
an opportunity to completely analyze and pursue all
potential causes of action against third parties, it is not
able to fully assess the recoveries that will be available
to the estates and, accordingly is not in a position to
formulate a plan of liquidation.


JUMBOSPORTS: Court Approves Special Counsel
-------------------------------------------
The U.S. Bankruptcy Court for the Middle District of
Florida, Tampa Division, entered an order on January 29,
1999 authorizing the employment of Barnett, Bolt, Kirkwood
& Long, PA as special counsel for the debtor, JumboSports,
Inc. for the purpose of:

Compensation matters, including the preparation of
employment agreements and the rendering of legal advice to
the debtor's senior management and the Compensation
Committee of the debtor's Board of Directors.

Contract review, including the review of such vendor
agreements and other contracts as requested from time to
time by debtor's general counsel

Certain litigation in Florida against the Tampa Bay Devil
Rays, Ltd. and Naimoli Baseball Enterprises, Inc. and

Legal advice on retail issues as requested.


LIVENT: Judge Approves Access To Final $11.5 Million
----------------------------------------------------
On Monday, the US Bankruptcy Court allowed the debtor,
Livent Inc. access to the final $11.5 million of the loan
pledged by the New York investment firm Angelo Gordon & Co.
in December.

Unsecured creditors of Toronto-based Livent had expressed
concern about repayment terms of the loan, which according
to court documents including  giving the lender the right
to foreclose with five days notice without a court  
hearing.

Livent, which filed for bankruptcy protection in the United
States and Canada in November amid turmoil about its
founders' accounting practices, has already received
approval for the loan's terms from Canadian court
officials.

"It (Monday's ruling) allows the company to proceed with
its reorganization," spokesman Jim Badenhausen said.

Livent was given access to the initial $13.5 million from
the loan when the U.S. Bankruptcy Court for the Southern
District of New York granted interim  approval to the
financing agreement on Dec. 3.


LONG JOHN: Seeks Authority To Enter Distribution Agreement
----------------------------------------------------------
The debtor, Long John Silver's Restaurants, Inc. et al.,
seek authorization to enter into a New Distribution
Agreement with AmeriServe.  AmeriServe provides Common
Products, Special Products and Seafood Products to the
debtor. The debtor enters a contract with a vendor and
AmeriServe will purchase from the vendor all Special
Products and Common Products in volumes sufficient to keep
the inventory levels of such products in each of
AmeriServe's warehouses servicing the debtor.  AmeriServe
shall determine, based on past usage the appropriate
minimum inventory level.  After AmeriServe has the
inventory, restaurants order their deliveries of inventory.
The agreement also provides for a "Seafood Stockpile,"
whereby AmeriServe may be required to purchase from Long
John Silver's excess inventory, not to exceed $15 million.

The parties agree to purchase prices of the merchandise
between themselves.  The parties have a longstanding
relationship and they have engaged in extensive
negotiations for terms which the debtor deems beneficial to
the bankrupt estate.


MOBILE ENERGY: Seeks Authority For Contract With EJ Hodder
----------------------------------------------------------
The debtors, Mobile Energy Services Company, LLC and Mobile
Energy Services Holdings, Inc. seek authority to assume an
executory contract with E.J. Hodder & Associates, Inc.
pursuant to which the debtors receive coal necessary to
operate their business.  Mobile Energy purchases
approximately $350,000 worth of coal from Hodder per month.  
The coal contract is currently below available market
rates, and according to the debtors it is in the best
interest of the estates to enter the contract immediately.


NU-KOTE: PricewaterhouseCoopers Named Special Accountants
---------------------------------------------------------
The Bankruptcy Court for the Middle District of Tennessee,
Nashville Division entered an order approving the
employment and retention of PricewaterhouseCoopers LLP as
special accountants for the debtor.


NU-KOTE: Applies to Hire Real Estate Broker
-------------------------------------------
Nu-Kote Holding, Inc. and its affiliates applied to employ
and retain CB Richard Ellis Inc. as real estate broker for
the debtors.

The firm will evaluate, negotiate an obtain certain
opportunities for the debtors to maximize the use of their
resources and real property through refinancing,
alternative financing, purchase, sale, investment sale,
leaseback, and/or lease opportunities.  A schedule of
commissions due the broker upon completion of a sale or re-
negotiation of a lease is attached to the application.


OKURA & CO: Joint Motion For Exclusivity Extension
--------------------------------------------------
The debtor, Okura & Co. (America), Inc. together with the
Official Unsecured Creditors Committee of the debtor seek
entry of an order further extending the exclusive period to
file a plan of reorganization from February 18, 1999
through and including April 19, 1999 and further extending
the exclusive right to solicit acceptances to the plan from
April 19, 1999 through and including June 18, 1999, and
modifying exclusivity such that the debtor and/or the
Committee are the only parties entitled to file a plan of
reorganization and to solicit acceptances thereto.


OMEGA ENVIRONMENTAL: Hearing Set for Sale of Assets
----------------------------------------------------
Omega Environmental, Inc., seeks court authority to sell
substantially all of the assets of its Petroleum Services
Division operations in Dallas, Texas, to Ten Hoeve Bros.
Inc. The hearing is set for February 26, 1999 at 9:30 AM in
Room 407, Park Place Building, 1200 Sixth Avenue, Seattle,
Washington 98101.


ONE STOP: Cellexis Objects To Disclosure Statement
--------------------------------------------------
Cellexis International, Inc. objects to the approval of the
First Amended Disclosure Statement filed by One-Stop
Wireless of America, Inc., Pre-Paid Cellular Inc., (Canada)
and Pre-Paid Cellular Inc. (Nevada).

Cellexis, a creditor and interested party states that the
Disclosure Statement fails to disclose the affiliations of
David Chadwick, an insider of the debtor and PhoneXchange.
Cellexis states that Chadwick enjoyed total control over
the affairs of the debtor, and that he is also a principal
of C:\NET Solutions, Inc., an affiliate of PhoneXchange.

The Disclosure Statement fails to disclose the compensation
to be paid to Chadwick, as the proposed president of the
successor to the debtors, and the Disclosure Statement
states that PhoneXchange is to acquire debtors' furniture,
fixtures, equipment and cash assets without payment of any
consideration to the estate.

Cellexis also states that the Disclosure Statement fails to
provide adequate disclosure concerning the value of the
Avoidance and Other Claims and the estimated value of the
Management Claims.  Further, Cellexis argues that the Mower
firm would have a conflict of interest in pursuing
Management Claims as it is counsel of record in the
representation of various individuals in the pursuit of
claims against the debtors, against the former and current
management of the e debtors, and against related entities
of the debtors.  Cellexis also states that the liquidation
analysis is false and misleading, providing no basis for
the value of fixed assets at $400,000.  And the creditor
states that in many instances, which Cellexis enumerates,
the Disclosure Statement is misleading in describing the
events leading to the Chapter 11.


PERK DEVELOPMENT: On Re-Entering Upstate NY Market
--------------------------------------------------
Perkins Family Restaurants, L.P. Perkins Family Restaurants
announced that it will soon decide how to best re-enter the
upstate New York market.  Perkins is withdrawing as a
result of the purchase by Denny's (a subsidiary of
Advantica Restaurant Group) of 30 restaurants in the
bankruptcy  auction sale of the assets of its former
franchisee, Perk Development Corporation.  Denny's was the
successful bidder after Perkins determined that the bidding
had reached a level that, when combined with the other
obligations  being assumed and the necessary extensive
remodeling and deferred maintenance  expenses, exceeded the
amount that Perkins could pay and still generate an  
acceptable financial return.

"While we feel a loss because Perk had been part of the
Perkins system for over 25 years, there will be no material
impact on Perkins Family Restaurants' 1998 financial
statements as a result of these restaurants going out of
the system, other than a non-cash write-down of intangibles
in the approximate amount of $700,000.  With our continued
success in attracting new franchisees to our system, we
expect to easily replace the approximately $1,900,000 in
royalties that Perkins earned from Perk in 1998," said
Steven R. McClellan, Executive Vice President and CFO.

Perkins Family Restaurants will own or franchise 466
restaurants in 35 states and Canada after these 30
restaurants are closed and expects to open an  
additional 40 company-owned and franchised Perkins Family
Restaurants in 1999.


PHP HEALTHCARE: Employment of Arthur Andersen Approved
------------------------------------------------------
The US Bankruptcy Court for the District of Delaware
approved the application of the Official Committee of
Unsecured Creditors of PHP Healthcare Corporation
authorizing the Committee to employ and retain the firm of
Arthur Andersen LLP, nunc pro tunc to December 8, 1998.


PRIMESTAR: Commences Tender Offer and Solicitation
--------------------------------------------------
On February 1, 1999, Primestar, Inc. commenced a tender
offer and a solicitation of consents from certain holders
of its 12-1/4% Senior Subordinated Discount Notes due 2007
and its 10-7/8% Senior Subordinated Notes due 2007
to certain proposed amendments to the indentures
governing the Notes. The purpose of the tender offer and
consent solicitation is to facilitate the fulfillment of
one or more closing conditions to the Asset Purchase
Agreement, dated as of January 22, 1999 , among the
Registrant, PRIMESTAR Partners, L.P., a Delaware limited
partnership and wholly owned subsidiary of the Registrant,
PRIMESTAR MDU, Inc., a wholly owned subsidiary of the
Registrant, certain stockholders of the Registrant and
Hughes Electronics Corporation, as set forth
in the Offer to Purchase and Solicitation of Consents,
dated February 1, 1999, sent by the company to the holders
of the Notes.


PROVENCE RESTAURANT: Files Chapter 11
-------------------------------------
Provence restaurant in Washington has filed for chapter 11
protection, with assets and liabilities each of $1 million,
The Washington Business Journal reported. Last year
its well-known owners Yannick Cam and Savino Recine severed
their relationship; Cam is not involved with the restaurant
any more, and Recine said he could not comment pending the
case. Both were partners at two other high-profile D.C.
restaurants but in June they abruptly ended their
relationship and split their holdings. (ABI 09-Feb-99)


RESURGENCE PROPERTIES: Board Approves Liquidating Dividends
-----------------------------------------------------------
Resurgence Properties Inc. (OTC Bulletin Board: RPIA)
announced today that the Board of Directors approved the  
sixth and final in a series of liquidating dividends on its
Common Stock of $.07 per share to shareholders of record as
of February 15, 1999.  The dividend will be paid on
February 25, 1999. After the payment of this dividend,
total distributions will be $9.02 per share.

In addition, since the Company has disposed of all of its
properties, the Board of Directors approved that the
Company proceed with the filing of Articles of  
Dissolution and to take such further action as may be
required to complete the dissolution of the Corporation.

Resurgence has been engaged in diversified real estate
activities and was formed as a result of the consummation
of the Chapter 11 reorganization of Liberte Investors
(f/k/a Lomas and Nettleton Mortgage Investors) on April 7,  
1994.  Pursuant to the reorganization, Liberte transferred
most of its assets to Resurgence.  On September 26, 1997,
Resurgence announced that the shareholders approved a plan
of complete liquidation and dissolution.  Resurgence is
managed and administered by Wexford Management LLC.  SOURCE   
Resurgence Properties Inc.



SCOTT CABLE: IRS Fighting For Sale Proceeds
-------------------------------------------
The Internal Revenue Service and Scott Cable Communications
Inc. will do battle again in court today, this time over
whether the cable company can distribute proceeds of its
$165  million sale to InterLink Communications Partners
LLLP to both its lenders and its payment-in-kind
noteholders. Scott Cable filed a motion Jan. 22 to make
payment to Finova Capital Corp. and to the 15% senior PIK
noteholders in order to stop interest from accruing on
those loans. Scott Cable wants to distribute $58.4 million
to Finova and $67.3 million to the senior noteholders. The
government, which estimates Scott Cable realized
about $156 million from the InterLink sale after associated
costs, argues that Scott Cable does not have enough money
in its coffers to do that. Once the top creditors were
paid, just $30.3 million would remain in the estate for
distribution to the remaining creditors -- not enough to
cover federal and state tax liability of $37.4 million,
according to the government's Jan. 28 objection.
(The Daily Bankruptcy Review and ABI Copyright c February
9, 1999)


SERVICE MERCHANDISE: To Close Up To 134 Stores                  
----------------------------------------------
The nation's largest catalog showroom retailer, Service
Merchandise Company, Inc., said Tuesday it will shrink  
operations and close up to 134 underperforming stores over
the next four months  -- or nearly 40 percent of its total.

It was not immediately known how many employees would be
affected. A company spokesman was not available for
comment.

Facing stiff competition from other discounters, the Tenn.-
based operator, also the country's second-largest mass
market jewelry retailer, has seen its share price plummet
from $4.87 in October to 44 cents last month. In New York  
Stock Exchange trading Tuesday morning, its shares were
down 6 cents at 75 cents.

Over the next several months, Service Merchandise will run
inventory clearance sales at affected locations and intends
to develop and implement a business plan to reduce its cost
structure and improve profitability.

"This action is an important step in the company's out-of-
court restructuring," according to Chief Executive Officer
Bettina M. Whyte in a statement. "These sales will serve to
reduce bank debt and allow the company to refocus its
energies on its remaining 213 stores and on refining its
niche in fine jewelry, gifts and home products."

Last month, the company secured a 30-month, $750 million
financing commitment to repay its existing bank facility.
It was the first step in an out-of-court restructuring
designed to stabilize the company.


SYQUEST TECHNOLOGY: Hearing Scheduled For Asset Sale
----------------------------------------------------
On January 21, 1999, Syquest Technology Inc.'s Common Stock
was delisted from the Nasdaq National Market for failure to
maintain the minimum listing requirements of the Nasdaq
National Market.  The company's Common Stock had been
suspended from trading since November 2, 1998.

On January 11, 1999, the company entered into an agreement
with Iomega Corporation for the sale of substantially all
of Registrant's assets to Iomega.  A hearing has been
scheduled for February 24, 1999, at 9:00 am at 1300 Clay
Street, Oakland, California to authorize the company to
proceed with the sale to Iomega.

A copy of the court's order authorizing and approving the
sale is available via the Internet at:

http://www.sec.gov/Archives/edgar/data/0000935836-99-
000040.txt


THE CARE GROUP INC: Order Confirms Plan
---------------------------------------
On February 2, 1999, the U.S. Bankruptcy Court for the
Western District of Texas entered an order confirming the
amended Chapter 11 plan by The Care Group, Inc. and its
affiliated debtors.

                   *********

The Meetings, Conferences and Seminars column appears
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