TCR_Public/990324.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
     Wednesday, March 24, 1999, Vol. 3, No. 57


ABLE TELECOM: Quarterly Report - Period Ended Jan. 31, 1999
AHERF: AGH To Consider Layoffs
BLOWOUT ENTERTAINMENT: Case Summary & 20 Largest Creditors
BREED: Offer To Exchange Outstanding 9 1/4% Notes
CINEMA GRILL: Files Chapter 11

COMMERCIAL FINANCIAL: Judge Halts Spending By Exec
COMPASS PLASTICS: Quarter Report-Period Ended Jan. 24,1999
CORDEX: No Deal With Bankers Trust - Files Bankruptcy
DANKA: Outsourcing Unit To Be Sold To Schroders
FACTORY CARD: To Voluntarily Reorganize Under Chapter 11

FOAMEX INTERNATIONAL: Amends Credit Agreements
FORCENERGY: Files Voluntary Chapter 11 Petitions              
FORSTMANN: Quarterly Report - Period Ended January 31, 1999
GENESIS HEALTH: Proposed Amendment To Registration Stmt.
MEDPARTNERS: Amends Credit Agreement

MOBILEMEDIA: Reaches Agreement on Stipulation
MOIIBUS RESOURCE: TransGlobe Energy to Acquire Moiibus
NIAGRA MOHAWK: Reorganizes Into Holding Company Structure
NORTHWESTERN STEEL: Quarter Report for Period Ended 1/31/99
PARAGON TRADE: Announces Settlement With Kimberly-Clark

SAMSUNG MOTORS: Daewoo Group To Take Over Samsung Unit
SOLV-EX CORP: Plan Update
SUN HEALTHCARE: Rumblings About Possible Bankruptcy
SYNCRONYS: Files Plan of Reorganization
WASTEMASTERS: Hearing On Dismissal of Case
WET SEAL: Registration Statement Amended To Increase Shares


ABLE TELECOM: Quarterly Report - Period Ended Jan. 31, 1999
ABLE TELCOM Holding Corp. and subsidiaries report to the
SEC that for the quarter ended January 31, 1999, revenues
increased $69.5 million over the same period in the prior
year from $22.3 million to $91.8 million. These increases
in revenue are due primarily to growth of the Company's
operations through the acquisition of MFSNT in the third
quarter of fiscal 1998, the acquisition of certain
contracts from COMSAT RSI JEFA Wireless Systems ("COMSAT")
and the acquisition of Patton Management Corporation
("Patton") in the second quarter of fiscal 1998, as well as
increased demands for services in the traffic management
and telecommunications industry.

For the quarter ended January 31, 1999 income from
operations for the Company was $5.4 million compared to
loss of $(1.2) million in the quarter ended January 31,

Net loss for the three months ended January 31, 1999
decreased $0.3 million from $(0.9) million in 1998 to
$(0.6) million in 1999. Loss applicable to common stock was
$(0.8) million for the three months ending January 31, 1999
as compared to $(1.1) million for the three months ended
January 31, 1998, respectively. On a diluted basis, income
per share was $(.06) per share for the three months ended
January 31, 1999 as compared to $(.12) per share for the
same period in 1998.

AHERF: AGH To Consider Layoffs
Allegheny General Hospital, whose parent foundation has
been in bankruptcy since July, is weighing the possibility
of staff cuts, though the cuts may not be as deep as some
employees fear.

Rumors have circulated among hospital employees that AGH
might be gearing up to eliminate as many as 250 jobs by the
end of the week. AGH employs more than 4,200 people.

"Much like other hospitals in the area, we face the
possibility of staff reductions as a way to address the
industry's increasing costs and declining
reimbursements," AGH spokesman Tom Chakurda said.

However, he added, "our current assessment is that any
layoff, if enacted, would be well below any rumors of 250."
Chakurda did confirm that AGH is transferring patients from
the hospital's 47-bed medical and surgical unit on the 11th
floor to other smaller units.  He said nearly all of the
employees in the unit would be placed in other positions.

Chakurda also said it was too early to say what would be
done with the unit, which some employees have heard may be

BLOWOUT ENTERTAINMENT: Case Summary & 20 Largest Creditors
Debtor:  Blowout Entertainment, Inc.
         7700 NE Ambassador Place
         One Airport Center, 2nd Floor
         Portland, Oregon 97220

Type of business: Operates retail store within a store;
videocassette and video game sale and rental outlets
located in large mass merchant supercenters and grocery
store chains.

Court: District of Delaware

Case No.: 99-681   Filed: 00/00/99    Chapter: 11

Debtor's Counsel:  

John D. Demmy
Morris James, Hitchens & Williams
222 Delaware Avenue, PO Box 2306
Wilmington, Delaware 19899

Total Assets:            $18,413,918
Total Liabilities:       $17,233,118

No. of shares of common stock    2,433,330- 388 holders

20 Largest Unsecured Creditors:

   Name                                       Amount
   ----                                       ------
Valley Media                               1,964,697
Wal-Mart Stores, Inc.                      1,348,803
Rentrak Corporation                        1,189,182
Universal/MCA                                196,286
Movies & Games 4 Sale, LP                     83,711
Re al Entertainment                            50,000
Southern Door Lite Co.                        43,860
Madacy Entertainment Group                    34,852
Electro Source, Inc.                          27,678
Diamond Entertainment Corp.                   24,000
Passport Int'l. Production                    23,000
Endgame Entertainment Inc.                     20,521
Sight and Sound (Debt)                        18,865
Kmart Corporation                             12,000
Unicorn Video, Inc.                            9,000
Jack of All Games                              8,905
Universal Games                                8,307
Gametech Marketing                             6,865
Rich & Rhine Distributors                      6,510
Drivesafe Defensive Driving                    5,923
Ideal Enterprises, Inc.                        5,034

BREED: Offer To Exchange Outstanding 9 1/4% Notes
BREED Technologies, Inc. reports to the SEC an                    
Offer to Exchange all of its Outstanding 9 1/4% Senior
Subordinated Notes due 2008 for 9 1/4% Senior Subordinated
A full-text copy of the filing is available via the
Internet at:

CINEMA GRILL: Files Chapter 11
Fox Bay Entertainment Inc., which owns the Cinema Grill in
the Fox Bay Theater building in Whitefish Bay, Wis., has
filed for chapter 11 protection in Milwaukee, The Business
Journal reported. In a prepared statement, the company said
it was forced to file for bankruptcy because of continuing
disputes with landlord Daniel J. Katz. The company expects
to pay all creditors and suppliers in full, and believes
the dispute with the landlord over the delayed opening of
Cinema Grill will be "ultimately resolved." (ABI 23-Mar-99)

COMMERCIAL FINANCIAL: Judge Halts Spending By Exec
The Journal Record reports on March 19, 1999, that a former
Commercial Financial Services executive cannot spend  
any of the $500,000 she received when she left the company
in January, a bankruptcy judge says.U.S. Bankruptcy Judge
Dana Rasure issued a temporary restraining order against
Gertrude Brady.

The company sought the order to keep Brady, former managing
director of investor relations, from spending the money she
received under a management retention agreement.

CFS lawyers said she was not entitled to make the $500,000
draw on a line of credit and that without the order the
money could vanish. Brady's lawyer, Thomas Seymour, said
the company failed to prove that the $500,000 draw did
extraordinary harm to the company or that Brady would have  
been unable to repay the money later if required. He also
said that she had been "constructively terminated" when her
salary was reduced and was entitled to the money.

The temporary restraining order is in place until a March
29 hearing on the company's bankruptcy filing.

CFS also accused Brady of committing fraud to get a company
founder's computer equipment and records removed from the
firm's Tulsa offices after it filed for bankruptcy
protection in December.

They alleged she lied to co-workers and underlings by
directing them to take Jay L. Jones' computer equipment to
a loading dock. New company president Fred Caruso has told
employees to box up the equipment and move it to a locked
room. Jones, who founded the debt collection company with
Bill and Kathryn Bartmann, resigned Oct. 27. His
resignation came at the start of an investigation into
accusations contained in an anonymous letter.

The letter, among other things, accused a company
supposedly tied to Jones of buying accounts from CFS at
inflated prices. CFS said that Brady was fired for "cause"
for her alleged role in the equipment disappearance. The
firing voided the part of the retention agreement  
that would have entitled her to draw the $500,000, the
company said.

Seymour denies the allegations. He said Brady had
permission to remove the equipment and received the funds
under the conditions of the retention plan. Prior to her
firing, Brady was one of CFS' highest paid employees,
receiving $509,427 in wages and expenses during the year
leading up to the bankruptcy filing.

COMPASS PLASTICS: Quarter Report-Period Ended Jan. 24,1999
Compass Plastics & Technologies, Inc. filed its quarterly
report with the SEC for the quarterly period Ended January
24, 1999.

The Company is a leading manufacturer and assembler of
custom injection molded plastic components for leading
computer, medical and consumer electronics OEM's located in
California and Mexico. The Company supplies its customer
requirements from its manufacturing facilities in Gardena
and San Jose, California, and Tijuana, Mexico.

For its fiscal year ended October 25, 1998, the Company
incurred a net loss of approximately ($2.4 million) on
consolidated net sales of $50.1 million, as compared to net
income of $2.1 million on consolidated net sales of
$44.0 million in the fiscal year ended October 26, 1997.

As a result of these adverse developments, the Company
defaulted in a number of its obligations to the Senior
Lenders under the February 27, 1998credit agreement,
including (i) defaults in maintenance of certain financial
ratios, including minimum tangible net worth, minimum
senior funded debt to EBITDA and minimum fixed charge
coverage ratio, and (ii) failure to make a total
$2.75 million of installment payments due under the term
loan in December 1998and January 1999. Accordingly, on
February 2, 1999, the Senior Lenders accelerated all
indebtedness under the credit agreement, aggregating
approximately $16.0 million.

Since February 1999, the Senior Lenders have provisionally
agreed to forebear from foreclosing on the Company's assets
and properties, subject to completion of an agreement
between the Company and the Senior Lenders to
restructure the Company in a manner designed to repay the
indebtedness to the Senior Lenders. Pending resolution of
such restructuring plan, all payments tothe Subordinated
Lenders have been suspended. A key element of the
restructuring plan includes the sale of M.O.S. Plastics by
June 30, 1999 and using substantially all of the net
proceeds of such sale to reduce the indebtedness to
the Senior Lenders. On March 5, 1999, the Company reached
agreement in principal with CHF Capital Partners to sell
100% of the stock of M.O.S. Plastics to an affiliate of
CHF for approximately $10.5 million in cash. Even if the
Company is successful in selling M.O.S. Plastics and
restructuring its senior banking facility, it will remain
in default to the Subordinated Lenders holding $9.0 million
of the Company's Subordinated Debt.

Net cash provided by operations for the 13 weeks ended
January 24,1999 was $840,000 compared to $3.9 million used
for the comparable 1998 period. The difference between the
Company's net loss of $1.1 million and operating cash
flow of $840,000 million was approximately $908,000 in
depreciation and amortization, an increase in accrued
payables of $980,000, and a reduction in inventory of
$578,000, offset by a $574,000 reduction in deferred income

CORDEX: No Deal With Bankers Trust - Files Bankruptcy
Petroleum Finance reports on March 22, 1999 that Cordex  
Petroleums Inc. (TSE: CZX) was not able to reach a mutually
acceptable arrangement with Bankers Trust Co. of New York
with regard to the disbursement of approximately U.S.$13.6
million in net proceeds from the sale of the Calgary  
independent producer's oil and gas assets in Chile and
Argentina to Genera S.A.  The purchaser withheld an
additional U.S.$1.1 million when the sale closed on Dec. 7,
1998. Cordex said that it requested a written
accounting from Bankers  Trust with regard to its claims
which relate to various cash advances of  approximately
U.S.$11 million, not including interest, dividends, "lump
sum" or  profit claims. Bankers Trust's claims
include advances by a third party, Cordex  said. It also
identified approximately U.S.$2.6 million in claims by

In the absence of an acceptable arrangement, Cordex applied
for court protection under both Canadian and American
bankruptcy law.

DANKA: Outsourcing Unit To Be Sold To Schroders
According to an article the Wall Street Journal, March 23,
1999, Danka Business Systems PLC entered into a nonbinding
letter of intent to sell the majority of its outsourcing
unit, Danka Services International to Schroder Venutres
International Investment Trust PLC.

Danka agreed to sign a long-term pact to provide Dank
Services with equipment, parts, supplies and services.  
Schroder Ventures is an affiliate of Schroders PLC, a
London specialized asset-management bank.

FACTORY CARD: To Voluntarily Reorganize Under Chapter 11
Factory Card Outlet Corp. (Nasdaq: FCPY) announced today it
and its subsidiary have filed voluntary petitions for  
protection under Chapter 11 of the Federal Bankruptcy Code
in the U.S. Bankruptcy Court for the District of Delaware.

Stewart M. Kasen, the Company's Chairman, President and
Chief Executive Officer, said, "As we previously disclosed,
we had entered into a letter of intent with Catalyst Equity
Partners concerning a potential preferred stock  
investment.  This investment would have allowed the Company
to restructure out of court and pursue its business
strategy. Unfortunately, the discussions with Catalyst have
terminated and we now realize that an out of court
restructuring will not be able to be completed in a timely

The Company also announced that it has received a
commitment from a group of lenders led by Foothill Capital
Corporation for up to $50 million in Debtor in Possession
financing to provide the Company with adequate working
capital to continue its daily operation.

FOAMEX INTERNATIONAL: Amends Credit Agreements
On March 11 and March 12, 1999, respectively, Foamex L.P.,
and Foamex Carpet Cushion, Inc., subsidiaries of Foamex
International Inc., amended aspects of their respective
Credit Agreements. The Company also amended its respective
guarantees of such credit agreements. On March 15, 1999,
Foamex Carpet Cushion, Inc. amended its promissory note in
the original aggregate principal amount of $70.2 million
made by Foamex Carpet Cushion, Inc. in favor of Foam
Funding LLC.

On March 16, 1999, the Company announced that the Board of
Directors had appointed John G. Johnson, Jr. as President,
Chief Executive Officer and a Director of the Company. John
Johnson succeeded Andrea Farace, the Company's former
Chairman and Chief Executive Officer who resigned to pursue
other opportunities. The Board of Directors also named
Marshall S. Cogan as Chairman of the Company.

On March 16, 1999, the Company also announced preliminary
results for the fourth quarter ended December 31, 1998. The
Company additionally announced that it hired JP Morgan
Securities Inc. to explore strategic alternatives to
maximize shareholder value.

A full-text copy of the filing is available via the
Internet at:

FORCENERGY: Files Voluntary Chapter 11 Petitions              
On March 21, 1999 Forcenergy Inc (NYSE:FEN) and its
subsidiary Forcenergy Resources, Inc. filed petitions  
for reorganization under Chapter 11 of the United States
Bankruptcy Code.

This voluntary action by the Company was precipitated by
the prolonged impact of severely reduced oil and gas

Concurrent with this action, the management of Forcenergy
is initiating efforts to achieve a comprehensive
restructuring with all creditors. The objective of  the
restructuring will be to position the Company to emerge
from Chapter 11  with an improved capital structure and
adequate resources to realize maximum  value for all

Based on conversations with the Company's agent bank,
Forcenergy anticipates that it will have adequate capital
and liquidity to fund operating activities during this
restructuring period.

Forcenergy Inc is an independent oil and gas company
engaged in the exploration, acquisition, development,
exploitation and production of oil and natural gas.
Forcenergy's primary areas of operations are the Gulf of
Mexico and Cook Inlet, Alaska.

FORSTMANN: Quarterly Report - Period Ended January 31, 1999
Forstmann & Co., Inc. reports net sales for the 1999 First
Quarter were $18.5 million, a decrease of 36.3% from the
1998 First Quarter.

During the thirteen-week period ended  January  31,  1999
operations  provided $3.9 million of cash,  whereas $9.5
million was used by operations during the thirteen-week  
period ended February 1, 1998.  This  $13.4 million  
increase in  cash  provided  by operations  in the 1999  
First Quarter  was  primarily  due to a $13.4  million
decrease in cash used by inventory  during the 1999 First
Quarter as compared to the 1998 First Quarter. Cost of
goods sold decreased  $6.7 million to $19.1 million during
the 1999 First Quarter primarily as a result of the decline
in sales and change in product mix.  Gross profit decreased
$3.9 million from a profit of $3.3 million in the 1998
First  Quarter  compared to a loss of $0.6 million in the
1999 First Quarter,  and gross profit margin for the 1999
First Quarter was (3.0%) compared to 11.4% for the 1998
First Quarter.

Net loss for the 1999 First Quarter was $6.7 million as  
compared  to a net loss of $1.3 million in the 1998 First

GENESIS HEALTH: Proposed Amendment To Registration Stmt.
Genesis Health Venutures Inc. reports to the SEC a proposed
Offer to Exchange all existing 97/8% Senior Subordinated
Notes due 2009($125,000,000 aggregate principal amount
outstanding) for 97/8% Senior Subordinated Notes due 2009
of Genesis Health Ventures, Inc.

On December 23, 1998 Genesis Health Ventures Inc. completed
the private offering of $125,000,000 of 97/8% Senior
Subordinated Notes due 2009. The company entered into a
registration rights agreement with the initial purchasers
in the private offering in which the company agreed, among
other things, to deliver a prospectus by February 6,1999
and to complete this exchange offer by May 22, 1999.

A full-text copy of the filing is available via the
Internet at:

MEDPARTNERS: Amends Credit Agreement
MedPartners, Inc. (NYSE: MDM) announced it has reached
agreement with its bank creditors modifying
the terms of its credit agreement concerning its
MedPartners Provider Network Limited Knox-Keene entity.  
Terms of the agreement were modified to remove any  
negative impact upon MedPartners, Inc. resulting from the
Chapter 11 bankruptcy filing of MedPartners Provider

Additionally, MedPartners reduced its term loans to $307
million, representing a 49-percent reduction form its
original amount and a 45-percent reduction from  12/31/98.  
Further, from the $150 million sale of MedPartners'
Kelsey-Seybold Medical Group, P.A. which closes in April,
term loans will be reduced to below $200 million.  This
represents a reduction of more than 65-percent from the  
original amount.  The Kelsey-Seybold sale will enable
MedPartners, Inc. to reduce its revolving line of credit by
approximately $40 million.

"We continue to receive full support from our banks as
MedPartners, Inc. moves forward in the execution of our
plans," said Mac Crawford, Chairman, President  
and CEO.  "The banks recognize the importance of our
orderly and timely exit from the physician services
business and continue to support credit agreement  
modifications necessary to achieve this result."

MOBILEMEDIA: Reaches Agreement on Stipulation
MobileMedia Corporation announced that it has reached an
agreement, reflected in a stipulation, which, if approved
by the Bankruptcy Court, would resolve pending objections
to MobileMedia's Third Amended Joint Plan of  
Reorganization (the "Plan") and result in the Plan being
either confirmed or denied by the Bankruptcy Court.

The Plan provides for the merger of MobileMedia into Arch
Communications Group Inc. ("Arch") (Nasdaq:APGR).

The Stipulation, which was initially filed with the
Bankruptcy Court on March 12, 1999, in unsigned form, now
has been signed by all the parties thereto, including (i)
Arch, (ii) MobileMedia, (iii) the Debtors' unsecured
creditors  committee, (iv) the agent for the Debtors' pre-
petition secured lenders, (v)  the unsecured creditors that
have filed certain objections to confirmation of  the Plan
(the "Objectors") and (vi) two members of the unsecured
creditors  committee and two other unsecured creditors that
have agreed, as "standby  purchasers," to purchase certain
shares of Arch common stock to the extent the  shares are
not purchased by other unsecured creditors through the
exercise of  rights being issued to them by Arch pursuant
to the Plan.

The Stipulation still requires approval of the Bankruptcy
Court in order to be effective. MobileMedia Monday
submitted the Stipulation to the Court for approval.

Under the Stipulation, the confirmation hearing, which had
been continued to March 26, 1999, will be further continued
until April 12, 1999 (the "Continued Confirmation Hearing")
if the Objectors provide notice to the Debtors by March  
23, 1999, that the Objectors intend to deliver an
alternative proposal for reorganization of the Debtors (the
"Objectors Proposal") on or before April 1,  

If the Objectors Proposal is delivered by April 1, 1999
(and not thereafter withdrawn), the Bankruptcy Court will
determine at the Continued Confirmation Hearing whether the
Objectors Proposal meets the requirements set forth in the  
Stipulation (the "Requirements"), including requirements
that the Objectors  Proposal (A) be capable of confirmation
and consummation within a reasonable  period of time, (B)
provide (x) for payment in full in cash of (i) all  
administrative claims, including the breakup fee in the
amount of $25 million  that may be payable to Arch under
the merger agreement with Arch, and (ii) the  Allowed
Claims of Classes 4 and 5 (except for default interest)
under the Plan  (approximately $485 million), and (y) for a
distribution to Class 6 (general  unsecured creditors) that
is materially greater in value than the distribution  to
Class 6 under the Plan, (C) have financing committed or
reasonably capable  of being obtained, and (D) after taking
into account all relevant business  factors (including,
without limitation, any conditions and contingencies), be  
superior to the Plan.

If the Objectors do not deliver the Objectors Proposal by
April 1, 1999 (or, if it is delivered, but thereafter
withdrawn), then, subject to a determination by the Court
that the Plan meets the requirements of the Bankruptcy
Code, the Plan  would be confirmed.

Under the Stipulation and subject to the terms and
conditions thereof, the Objectors would withdraw their
objections to confirmation of the Plan and waive
their rights to appeal confirmation of the Plan. Also,
under certain circumstances, the Objectors would be deemed
to have voted in favor of the Plan.

In addition, the Stipulation (A) provides that, if the Plan
is confirmed on March 26, 1999, the rights offering period
contemplated by the Plan would expire 45 days after
confirmation, or that, if the Plan is confirmed on or  
after April 12, 1999, such rights offering period would
expire on the later of May 14, 1999 or 20 days after
confirmation, (B) provides for the reimbursement  
by the Debtors of certain fees and expenses incurred by the
Objectors, (C) provides for the exchange of certain
releases among various parties, and (D)contains certain
provisions relating to the possible payment by the Debtors
to Arch of a breakup fee.

MOIIBUS RESOURCE: TransGlobe Energy to Acquire Moiibus
TransGlobe Energy Corporation and Moiibus Resource
Corporation are pleased to announce that they have entered
into an agreement whereby Moiibus would become a wholly-
owned subsidiary of TransGlobe as a result of a Plan of

Subject to the acceptance of the Toronto and Alberta Stock
Exchanges, the approval of the Alberta Court of Queen's
Bench, certain other customary closing conditions, and the
approval by special resolution of Moiibus' shareholders at  
an annual and special general meeting of Moiibus scheduled
for April 26, 1999, the holders of Moiibus' common shares
will acquire 0.615 common shares of TransGlobe for each one
common share of Moiibus, for a total of approximately  5.4
million common shares of TransGlobe, which will increase
its issued and  outstanding shares from approximately 23.4
million to approximately 28.8  million. Moiibus and
TransGlobe expect the transaction to close at the end of
April 1999. The officers and directors of Moiibus
unanimously support the arrangement and control directly,
or indirectly, approximately 59.1 percent of the Moiibus
common shares.

This transaction will benefit the shareholders of both
companies, by creating a larger production and reserve
base, immediate access to Moiibus' low cost gas  
exploration opportunities currently available in Western
Canada to compliment TransGlobe's highly prospective
international oil prospects in Yemen, a strengthened
technical and management team, and a reduction in overall
general and administrative expenses.

The combined companies will have a production base of
approximately 290 BOED(TransGlobe's 110 BOED of US
production, and Moiibus' 180 BOED (50 percent gas) of
Canadian production). In addition, Moiibus provides a
positive year end cash and working capital position as of
December 31, 1998 of $346,000 Cdn and no debt.

If the transaction is approved, Lloyd Herrick will become
Vice President and COO of TransGlobe, Mary Chandler will
become Vice President, Finance and CFO of TransGlobe and
James (Jim) Dowhaniuk will become Manager of Domestic  
Exploration of TransGlobe. Also Moiibus Board members, Tom
Kusumoto and Lloyd Herrick will become Directors of
TransGlobe. TransGlobe's current CFO, Mr. Juneyt Tirmandi
will continue in a consulting advisor's capacity.

The TransGlobe common shares to be issued to the Moiibus
shareholders pursuant to the Plan of Arrangement will not
be registered under the US Securities Act of 1933 but will
be issued to Moiibus' US shareholders pursuant to an  
applicable exemption from registration requirements. No
shares may be offered or sold in the United States absent
registration or an applicable exemption from registration

NIAGRA MOHAWK: Reorganizes Into Holding Company Structure
On March 18, 1999, Niagara Mohawk Power Corporation was
reorganized into a holding company structure pursuant to an
Agreement and Plan of Exchange between Niagara Mohawk and
Niagara Mohawk Holdings, Inc.  The Plan of Exchange was
approved on June 29, 1998, by more than two-thirds of the
outstanding Niagara Mohawk Common Stock entitled to vote.  
As part of the reorganization, all of the outstanding
shares of Niagara Mohawk Common Stock, $1.00 par value per
share, were exchanged on a share-for-share basis for shares
of Common Stock, par value $.01 per share, of the Company,
and Niagara Mohawk became a subsidiary of the Company.  The
preferred stock and debt of Niagara Mohawk were not
exchanged and remain securities of Niagara Mohawk.

NORTHWESTERN STEEL: Quarter Report for Period Ended 1/31/99
Northwestern Steel and Wire Company reports to the SEC that
net sales for the Company were $77.0 million on shipments
of 223,526 net tons for the three months ended January 31,
1999, compared to $140.4 million on shipments of 376,753
net tons for the three months ended January 31, 1998.
For the second quarter ended January 31, 1999, net loss for
the period of $5.2 million, or $0.21 per share, compared to
net income of $7.4 million or $0.30 per share, in the prior
year period. Tons shipped in the quarter decreased almost
41% compared to the prior year period. Tons shipped
decreased across all product lines in a large part due
to the dramatic influx of foreign steel in its rod and
structural markets, which significantly impacted volume
shipped during the three months ended January 31,
1999.  End-use demand for the Company's products remains
good, however.

For the six-month period ended January 31, 1999, net sales
were $190.5 million compared to $279.3 in the prior year
period. Tons shipped decreased from 743,392 net tons for
the six months ended January 31, 1998 to 518,585 net tons
for the comparable six months in the current year. For the
six months ended January 31, 1999, the Company recognized a
net loss of $29.8 million, or $1.21per share which included
a one-time after tax charge of $27.1 or $1.10 per share,
due to the exit from a significant portion of our wire
business in the first quarter. This compared to net income
of $15.2 million or $0.62 per share, in the prior year
period, which included $3.1million, or $0.12 per share, for
recovery of previously disputed property tax payments made
in prior years.

PARAGON TRADE: Announces Settlement With Kimberly-Clark
Paragon Trade Brands, Inc. (NYSE: PTB) announced that it
has finalized a settlement agreement with Kimberly-
Clark Corporation and will shortly file a motion with the
United States Bankruptcy Court for the Northern District of
Georgia seeking approval of the settlement.  The agreement
provides for resolution of all of K-C's claims pending in
Paragon's bankruptcy proceeding, including issues
surrounding a patent dispute that was the subject of
litigation in the United States District Court for the
Northern District of Texas.  On February 2, 1999, Paragon
filed a motion with the Bankruptcy Court to approve a
similar settlement with The  Procter & Gamble Company.  A
hearing to consider the proposed P&G settlement is
scheduled to take place today.

The K-C agreement, coupled with the previously announced
P&G agreement, will serve as the cornerstone for a
consensual plan of reorganization for Paragon.  Paragon
reiterated that its goal is to emerge from chapter 11
quickly, positioned to produce the highest quality store
brand absorbent products and poised to achieve its long-
range strategic goals.

Under the K-C agreement, Paragon grants K-C a prepetition
unsecured claim in the amount of $110 million and an
administrative claim in the amount of $5 million.  K-C had
previously filed a proof of claim in Paragon's bankruptcy
proceedings listing claims ranging from approximately $893
million to $2.4 billion.  The parties have agreed that
payments of the agreed-upon amounts pursuant to a plan of
reorganization will be in full settlement of any and all  
claims K-C and Paragon have asserted against each other
through the date of the settlement agreement.  The parties
will exchange mutual general releases to that effect.

As part of the agreement, K-C is granting licenses to
Paragon in the U.S. and Canada which give Paragon the
freedom under enumerated K-C patents to market its dual
cuff diaper and training pant products which enjoy wide
consumer acceptance.  In exchange for this right, Paragon
has agreed to pay K-C running royalties on net sales of the
licensed products equal to: 2.5% of the first $200 million
of net sales of the covered diaper products and 1.5% of
such net sales in excess of $200 million in each calendar
year commencing January 1999 through November 2004.  In
addition, Paragon has agreed to pay K-C running royalties
of 5% of net sales of the covered training pant products
for the same period.

The parties have agreed that, once the K-C settlement is
approved by an unstayed order of the Bankruptcy Court, K-C
will dismiss with prejudice its complaint in the Texas
Action, as well as its related filings in the
Federal District Court in Georgia.  Simultaneously, Paragon
will dismiss with prejudice its counterclaims in the Texas

Paragon further disclosed that the K-C settlement will
result in a material net loss for the fiscal year ending
December 27, 1998.

Commenting on the agreement with K-C, Bobby Abraham, Chief
Executive Officer of Paragon, stated, "While the royalties
are a significant added cost, we believe  Paragon's store
brand competitors will pay similar royalties for
equivalent patent rights.  Thanks to our scale and
consistent investments in productivity, we believe Paragon
is the most efficient store brand manufacturer."

SAMSUNG MOTORS: Daewoo Group To Take Over Samsung Unit
South Korea's Daewoo Group said it has tentatively agreed
to take over Samsung Motors Inc., a unit of Samsung Group.

Under the agreement, Daewoo will continue production of a
line of Samsung cars at a rate of at least 30,000 units a
year for the next two years.  Daewoo said that its target
will be 50,000 units a year.  There is no agreement yet on
the purchase price or the amount of debt that Daewoo will
assume. (Wall Street Journal 23-Mar-99)

SOLV-EX CORP: Reorganization Plan Update
On or about July 31, 1998, the Plans of Reorganization and
Arrangement, respectively, of the debtor, Solv-Ex
Corporation were confirmed by Orders of the U.S. and
Canadian Courts.  The effective date of the Plans was
August 31, 1998.

Under the confirmed Plans, a portion of the Company's
indebtedness to allowed non-insider convertible
debentureholders in the pre-Chapter 11 amount of US $7.5
million was extended on terms similar to existing
debentures and secured by a pledge of a collateral interest
in certain of the Company's tangible and intangible assets.  
At August 31, 1988, the balance owing under the allowed
convertible debentures was US $3,511,016, maturing on June
30, 1999 and US $375,000 maturing on November 30, 1999. In
addition, the convertible debenture claim of Phemex
Establishment in the amount of US $33 million was
disallowed and extinguished. Finally, the allowed
convertible debenture claim, in the amount of US $2 million
held by the Company's Chairman and CEO, John S. Rendall,
was allowed but satisfied by the issuance and delivery of
shares of new Solv-Ex common stock, together with warrants,
authorized under the confirmed plan of reorganization.

As a result of the exchange of "old" Solv-Ex common stock
for "new" Solv-Ex common stock, as of December 1, 1998,
there were 29,211,157 shares of "new" common stock
outstanding and 9,238,109 warrants to be issued under the
confirmed Chapter 11 plan.

Following confirmation of the Plan of Reorganization, a
pool of shares of new Solv-Ex common stock, together with
attendant warrants, was regarded as reserved for future
issuance and delivery on account of either disputed claims
to be determined and allowed or in respect of claims and
interests filed and allowed, but not yet satisfied, under
the plan.  As of August 31, 1988, inasmuch as certain
claims remained either disputed or unsatisfied, the size of
such pool of shares likewise remained undetermined.

SUN HEALTHCARE: Rumblings About Possible Bankruptcy
Since the new federal Medicare reimbursement system went
into effect on January 1, stock in Sun Healthcare has
tumbled, thousands of employees have been laid off and
losses in revenue have mushroomed.  Sun Healthcare's CFO
predicts revenue losses for 1998 to reach $250 million.
However, he states that rumors of bankruptcy apply to most
of Sun's competitors as well.  

Sun Healthcare's daily Medicare reimbursement has been cut
by about a third from $500 per patient per day least year
to $325 this year.  Sun Healthcare was among four nursing-
home operators placed on a credit watch in February by
Standard and Poor's.

Sun healthcare is selling off less profitable facilites,
like those that specialize in outpatient, rehabilitation
therapy.  Sun anticipated taking a $2.4 million loss on the
Columbia sale, according to its third quarter report.

SYNCRONYS: Files Plan of Reorganization
Syncronys Softcorp (OTC BB:SYCR) Tuesday announced that the
company has filed its Plan of Reorganization and Disclosure
Statement on March 17, 1999.

Syncronys's previous management filed a bankruptcy petition
under Chapter 11 of  the Federal Bankruptcy Code on July
15, 1998. Syncronys's new management has proposed a Plan to
treat the claims of creditors and the interests of  
Syncronys's shareholders.

Walter Doyle, the interim president and chief executive
officer of Syncronys for the past eight months, stated: "We
are extremely pleased with the teamwork and progress that
has stabilized Syncronys so that our Plan could be filed.
We have worked very hard to change Syncronys's business
profile from that of a software utility development company
into an expanding successful Web-Internet company."

Carl Kosnar, currently a senior management consultant to
the company and its future president and CEO, emphasized
the importance of the company's new product sales and
services profile: "We have transformed SYCR into a Web-
Internet company through a very specific strategy of
company acquisitions and product purchases and licensing."

SYCR's new products will enable it to emerge from Chapter
11 (with court approval) selling Internet services and
products that will produce profits for its shareholders and
the company in the first year after its emergence out of

The new products fall into three distinct groups: (1) Web-
Interactive Niche Content; (2) Web management and
monitoring applications; and (3) Internet Connectivity.

SYCR will continue to market and sell four of its
previously developed software utilities products: (1)
Upgrade AID 98; (2) Big Disk 1.5; (3) Eyecatcher; and  
(4) Rewind. These products continue to have a good market
value and will contribute to the company's sales and
bottom-line profitability.

SYCR's new services and products will enable SYCR to emerge
from Chapter 11 Bankruptcy (with court approval) selling
Web services and products that are expected to produce
profits, in the first year after its emergence,
over $500,000.

These services and products will provide SYCR with new
diversified customers and strong revenue performance. This
combined with the company's debt-free balance sheet and
tax-loss carry-forwards will provide SYCR a solid
foundation for its future.

WASTEMASTERS: Hearing On Dismissal of Case
WasteMasters, Inc. (Nasdaq: WAST) announced that on March
19, 1999, the Texas bankruptcy court held a hearing on the
motion of WasteMasters, Inc. to dismiss the involuntary
bankruptcy proceeding filed against the company on Feb. 10,
1999.  The bankruptcy court will issue a report and
recommendation to the federal district court that the  
bankruptcy proceeding should be dismissed by
the district court.  The company  believes the district
court will follow the report and recommendation and  
dismiss the bankruptcy.

WET SEAL: Registration Statement Amended To Increase Shares
On July 22, 1997, The Wet Seal, Inc., a Delaware  
Corporation  filed with the SEC in order to register  
700,000  shares of its Class A Common  Stock, $.10 par
value per share reserved for  issuance pursuant to
options  granted under The Wet Seal,  Inc. 1996  Long-Term  
Incentive  Plan.  The Plan was amended on October 26, 1998
to authorize the issuance under the Plan of an additional
950,000 shares of Common Stock.

A Registration Statement is being filed with the SEC in
order to register the additional 950,000 shares of Common
Stock issuable under the Plan.


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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-
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Debra Brennan and Lexy Mueller, Editors. Copyright 1999.  
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