TCR_Public/990421.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, April 21, 1999, Vol. 3, No. 77

                   Headlines

AHERF: Obstacles Remain In Deal For Sale
AMERICAN BANK: Default Exists Under Credit Agreement
ASSOCIATED CO: Files Chapter 11
BMJ MEDICAL: Seeks Approval of Settlement Agreement
CALCOMP TECHNOPLOGY: Files annual Report With SEC

CAI Wireless: Agrees to be Acquired by MCI WorldCom  
CFS: Employees To Get Legal Help
DAEWOO GROUP: Plans Huge Asset Sales
ELDER BEERMAN: Fourth Quarter and Year-End Results
FOOD COURT: Notice of Equity Security Interest Bar Date

FORCENERGY: Reports $39.5 Million Loss for 1998
GOLDEN BOOKS FAMILY: Files Annual Report With SEC
HOME HEALTH CORP: Seeks Time To Assume/Reject Leases
KENETECH WINDPOWER: Effective Date Announced
LACLEDE STEEL: Looking For Financial Help

LTCB: Government May Fail to Find Buyer By End of April
MEDPARTNERS: Sustains Calif. Branch
MILLER HERMAN: Quarterly Report Filed With SEC
NEUROMEDICAL SYSTEMS: Committee Taps Parente Consulting
OKURA & CO: Joint Application for Extension of Exclusivity

STARTER CORP: Case Summary & 20 Largest Creditors
SYBASE INC: Annual Meeting Set For May 27, 1999
SYSTEMSOFT: Applies To Retain Testa, Hurwitz
TELEGROUP: Meeting of Creditors
USA BRIDGE: Last Day To File Proofs of Claim

VENCOR: Reports $651.5 Million Loss
WIRELESS ONE: Not In Favor of Heartland's Alternative Plan

                   *********

AHERF: Obstacles Remain In Deal For Sale
----------------------------------------
The Pittsbutgh Post Gazette reports on April 27, 1999 that
obstacles remain in deal for the sale of AHERF. West Penn
Health System's negotiations to take over Allegheny General  
Hospital and its suburban affiliates did not come to
conclusion yesterday as officials had earlier thought they
might. "We have not formally finalized the agreement," said
AGH spokesman Tom Chakurda. But he added, "We continue to
make what we think is excellent progress."

Among the key issues that are thought to be unresolved are
an agreement with creditors of AGH's parent foundation and
funding sources to refinance the debts of AGH and its
affiliates, Canonsburg Hospital, Allegheny Valley Hospital
and Forbes Health System.

In its initial merger proposal in February, West Penn
offered creditors of AHERF $50 million, split
into  $25 million in cash and a $25 million note. But the
amount it is now willing to pay is said to be substantially
lower.


AMERICAN BANK: Default Exists Under Credit Agreement
------------------------------------------------------
American Bank Note Holographics, Inc. (NYSE: ABH) announced
that its annual report on Form  10-K for the year ended
December 31, 1998 and the 1998 annual report to
shareholders is delayed. The Company also anticipates that
its report on Form 10-Q for the first quarter of 1999,
which is due on May 17, 1999, will be  delayed.

The Company's financial statements for the years ended
December 31, 1997 and 1996 as well as the interim financial
statements for each of the first three  quarters of 1998
require restatement.  Kenneth Traub, President and Chief
Operating Officer of the Company, said,  "The Company's  
filings of its 10-K and 10-Q will continue to be delayed
until the new  management of the Company completes its work
on restating the prior period  financial statements, and
the Company's independent auditors have issued their  
report."

The Company also reported that it has been notified by its
commercial banks led by The Chase Manhattan Bank that
events of default exist under the Company's Credit
Agreement as a result of the financial statement
misstatements and related matters disclosed in the
Company's press releases of January 19, January 25 and
February 1, 1999. As of April 15, 1999, the amount
outstanding under this Credit Agreement is approximately
$2.5 million, but the amount varies on a daily basis
depending on the Company's working capital needs. The  
Company has entered into a letter agreement with the banks
that imposes certain  restrictions on borrowing including a
maximum borrowing amount equal to the  lesser of $4.5
million and a borrowing base formula calculated based on
certain  assets of the Company. The Company is currently
negotiating an Amendment to the Credit Agreement with its
bankers to permit continued borrowings under the Credit
Agreement.

The Company also disclosed that the Securities and Exchange
Commission has initiated a formal investigation into the
Company's previously disclosed  financial statement
misstatements.
  

ASSOCIATED CO: Files Chapter 11
-------------------------------
The Associated Co., Wichita, Kan., has filed chapter 11,
laid off 60 employees and closed its doors, The Wichita
Business Journal reported. The company is on the market to
be sold. It has $7.3 million in assets and $5.3 million in
liabilities, including a debt of $2.5 million to the
National Bank of Canada.


BMJ MEDICAL: Seeks Approval of Settlement Agreement
---------------------------------------------------
The debtors, BMJ Medical Management, Inc. et al. seek court
approval of a Settlement Agreement with Valley Sports &
Arthritis Surgeons, PC.

The Settlement Agreement provides for the termination of
the management services agreement, the Valley Sports
Medical Group purchases the Assets, the adversary
proceeding is dismissed.

The Settlement Agreement provides for the debtor to receive
the aggregate consideration of $1.603 million and a release
and waiver of any amounts due under the stock purchase
agreement, a return of the Physicians' BMJ Stock; and
releases.


CALCOMP TECHNOLOGY: Files annual Report With SEC
-------------------------------------------------
CalComp Technology Inc. filed its annual report for the
fiscal year ending December 27, 1998 Revenues for the year
ended December 27, 1998 were $153.9 million.  Net loss for
the year was $168.8 million.

On January 27, 1999, the Company's Common Stock was
delisted from the Nasdaq National Market System due to the
Company's failure to maintain certain listing requirements.
On January 14, 1999, the Board of Directors' approved a
Plan for Orderly Shutdown which is expected to be
substantially completed in July 1999.


CAI Wireless: Agrees to be Acquired by MCI WorldCom  
---------------------------------------------------      
CAI Wireless Systems, Inc. announced that it has executed a
letter of intent with MCI WorldCom, Inc. agreeing to be
acquired for $24 per share in cash. The transaction is
subject to customary conditions, including the execution of
a definitive agreement and the receipt of required
regulatory approvals. CAI has agreed to deal exclusively
with MCI WorldCom for a 10-day period while the definitive
agreement is being negotiated.

CAI was advised by MCI WorldCom that it had entered into
one or more contracts providing for its purchase, subject
to regulatory approval, of more than half of CAI's common
stock from certain institutional holders. MCI WorldCom also  
confirmed to CAI that it had acquired a significant amount
of CAI's 13% Senior Notes due 2004 and CAI's secured credit
facility.

In connection with the execution of the letter of intent,
CAI has adopted a Shareholders' Rights Plan and has
declared a dividend of a right to buy one one- hundredth of
a share of a new Series A preferred stock to be distributed
on each share of CAI's common stock.

CAI has broken off discussions with all other strategic
entities at this time.


CFS: Employees To Get Legal Help
--------------------------------
The Daily Oklahoman reports on April 14, 1999 that
employees being questioned by federal and state
investigators will have their legal fees paid by Commercial
Financial Services Inc., the bankrupt credit collection
firm.

Dana L. Rasure, chief judge of the U.S. Bankruptcy Court
for the Northern District of Oklahoma, approved spending of
up to $50,000 for legal expenses for an undetermined number
of employees.

Rasure also permitted a former employee who left the firm a
year before the bankruptcy case to file a discrimination
suit in either state or federal court.  However, if the
woman wins, she must wait to collect any money with
other creditors.

The judge sent attorneys back to the negotiating table to
reach an agreement that would permit Bank One to continue
the lockbox operation for receiving money.

The agreement presented Tuesday contained sections that
Rasure said went beyond her jurisdiction. None of the
employees who will have legal counsel paid by CFS are
members of senior management. All are below the executive
level, said Neal Tomlins, who represents Commercial
Financial Services in the bankruptcy case.

The Securities & Exchange Commission, U.S. Justice
Department and the state Securities Department are
investigating the company, which has been under the  
protection of the bankruptcy court for more than four
months. None of the employees sought for questioning or
depositions are believed to be targets of the
investigation, Tomlins said. These employees were only
doing what was in their job description or what they were
told to do by their supervisors, Tomlins said.

The legal fees will be paid for current and former CFS
employees who are questioned by investigatory agencies, but
not those employees who either left voluntarily or were
dismissed for cause. The firm of Norman Wohlgemuth Candler
& Dowdell will represent all but two of the employees. Two
employees had engaged their own lawyers earlier but will  
benefit from the court's approval.

CFS President Fred C. Caruso said the company was dealing
with a "discreet" number of buyers - which he later defined
as two. In February, the first full month after downsizing,
he said collections were up 13 percent, from $18.9  
million to $21.4 million, while expenses dropped from $15.5
million to $9.3 million.

The Asset Backed Securities holders - which involves about
$1.1 billion held by 100 to 150 entities - are "very
concerned about the viability and success" of the sale, he
said. As a result, Caruso described Commercial Financial
Services as "a successful new company" which he dubbed,
"Newco."


DAEWOO GROUP: Plans Huge Asset Sales
------------------------------------
The Wall Street Journal reports on April 20, 1999 that
Daewoo Group announced plans for multibillion-dollar asset
sales that would substantially reduce the conglomerate's
operations.

Daewoo hopes to raise 9.14 trillion won ($7.5 billion)
through the sales and will use the cash mostly to pay down
debt.  The biggest operation to be sold off is the
shipbuilding operation of Daewoo Heavy Industries Ltd.  The
shipbuilding division is one of Daewoo's core assets and
had sales of 2.67 trillion won in 1998.


ELDER BEERMAN: Fourth Quarter and Year-End Results
--------------------------------------------------
The Elder-Beerman Stores Corp. (Nasdaq: EBSC) reported
results for the fourth quarter and fiscal year ended
January 30, 1999.  For the 52 weeks ended January 30, 1999,
Elder-Beerman reported net income of $25.5 million, or
$1.76 per average diluted share.  Elder-Beerman reported
a net loss of $29.0 million for the fiscal year ended
January 31, 1998.

Comparable department store sales increased 4.1 percent
over 1997.
  
For the thirteen weeks ended January 30, 1999, the company
reported net income of $23.8 million, or $1.51 per average
diluted share.  Elder-Beerman reported a net loss of $16.7
million for the 13 weeks ended January 31, 1998.

As previously reported, total sales for the fourth quarter,
including the eleven retained Stone & Thomas stores and the
Bee-Gee Shoe Division, increased 14.4 percent over fiscal
1997 to $223.3 million.  Comparable department store
sales for the fourth quarter decreased 0.3 percent from
1997.


FOOD COURT: Notice of Equity Security Interest Bar Date
-------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware
entered an order establishing May 21, 1999 as the equity
security interest bar date.


FORCENERGY: Reports $39.5 Million Loss for 1998
-----------------------------------------------
The Anchorage Daily News reports on April 17, 1999
Miami-based oil company Forcenergy Inc. lost $39.5 million
in 1998, according to its annual report issued Friday.

Forcenergy has weathered more than a year of low oil prices
and filed last month in federal Bankruptcy Court for
protection from its creditors, blaming heavy debt and oil
prices. The company's 1998 revenue totaled $274 million,  
compared with $284 million in 1997. Forcenergy recorded
a $28 million profit in  1997.

A slide in oil prices beginning in early 1998 hit
Forcenergy hard. The company was investing in Alaska and
the Gulf of Mexico at the time. From a high of almost $40 a
share in 1997, Forcenergy stock tanked below $1 in early
1999.

On March 22, the company voluntarily filed for Chapter 11
bankruptcy reorganization. Executives said that high
corporate debt and low prices forced the company to seek
court protection.

Among those owed money is Anchorage construction company
Veco Corp. Veco has built living quarters for an offshore
oil platform Forcenergy hoped to erect in Cook Inlet this
summer. The project has been delayed at least one year.  
Meanwhile, Forcenergy owes Veco $1.3 million.

Forcenergy stock stopped trading on the New York Stock
Exchange last month after the Bankruptcy Court filing but
is now listed on the "over the counter bulletin board,"
which takes companies that do not meet minimum net-worth  
standards of other stock exchanges. The stock closed at 78
cents a share Friday.

Net loss for 1998 equaled $1.59 a share. That compares with
profits of $1.21 a share in 1997. Forcenergy is the No. 2
oil producer in Cook Inlet and has 23 Alaska employees.
Forcenergy produces 8,500 barrels a day from the Inlet, 39
percent of the company's oil production.


GOLDEN BOOKS FAMILY: Files Annual Report With SEC
-------------------------------------------------
The Bankruptcy Court has approved a $55 million debtor-in-
possession financing facility consisting  of a $45 million  
credit  facility  and a $10 million term facility  from The
CIT Group  (the "DIP  Loan").  The DIP Loan is for an
initial period of two years with annual renewals  
thereafter with interest rates ranging from the Prime Rate
plus 1/8th of 1% to 5/8th of 1%.

Total revenues for Fiscal 1998 decreased $49.3 million
(20.3%) to $194.2 million compared to $243.5 million for
Fiscal  1997.  The net loss for Fiscal 1998 was $(128.6)  
million,  or $(4.89) per basic common share,  compared to a
net loss of $(49.7) million, or $(2.18) per basic common
share, for the year ended December 27, 1997.

The hearing to consider approval of the debtor's proposed
Disclosure Statement is set for May 10, 1999 at 2:00 PM
before the Honorable Tina L. Brozman, US Bankruptcy Court
for the Southern District of New York.


HOME HEALTH CORP: Seeks Time To Assume/Reject Leases
----------------------------------------------------
The debtors, Home Health Corporation of America, Inc. et
al. seek court authority to extend the time within which
the debtors may assume or reject unexpired leases of
nonresidential real property.  So far, the debtors have
identified 16 leases to reject, and the debtors now need
more time to evaluate the remaining leases.

The debtors request an extension through and including
August 17, 1999.  


KENETECH WINDPOWER: Effective Date Announced
--------------------------------------------
On January 27, 1999 the US Bankruptcy Court for the
Northern District of California entered an order confirming
the debtor's and Creditors' Committee's First Amended Plan
of Reorganization.  On April 8, 1999, the Effective Date
occurred, at which time the plan became effective and
binding on all parties in interest.


LACLEDE STEEL: Looking For Financial Help
-----------------------------------------
St. Louis-based Laclede Steel is looking to Illinois Gov.
George Ryan for some financial help to save its plant in
Alton.

The Alton Telegraph reports Laclede executives and union
leaders hope to meet with Ryan within the next week.
They're seeking $25 million in low-interest loans to make
improvements at the plant.

Laclede filed for Chapter 11 bankruptcy last November.

State Rep. Steve Davis, D-Bethalto, is arranging the
meeting. He says the loan would help save hundreds of jobs.
Davis told the newspaper, "Laclede is the last remaining
production industry in Alton, and we must keep it
operating for  the workers and the economy of the Alton
community."

The plan involves $50 million in proposed upgrades, half of
which would come from Illinois. Wooden says the federal
government might kick in additional funds. U.S. Sen. Dick
Durbin, D-Ill., is sponsoring a bill to guarantee
loans  for ailing steel companies.

Wooden said the planned improvements would turn Laclede's
Alton plant into a state-of-the-art steel mill and boost
production.


LTCB: Government May Fail to Find Buyer By End of April
-------------------------------------------------------              
Hakuo Yanagisawa, state minister in charge of financial
reconstruction, said Tuesday the government may fail to
find a buyer of the state-owned Long-Term Credit Bank of
Japan (LTCB) by the end-of-April deadline.

"We will not necessarily stick to the end-of-April
timetable," Yanagisawa told a press conference. "There are
many things which remain to be done."

Yanagisawa, who also serves as chief of the Financial
Reconstruction Commission (FRC), had said he hoped to find
a financial institution to buy LTCB's operations by the end
of April.  In other remarks at the press conference,
Yanagisawa said more than one institution has submitted
inquiries about taking over LTCB's operations.

Yanagisawa's FRC signed a contract with Goldman Sachs and
Co. on Feb. 1 to have the U.S. investment bank serve as an
intermediary in the search for a buyer of LTCB.  Under the
deal, Goldman Sachs will gain larger rewards if LTCB's
purchaser is found by the end of April. (Kyodo News 19-Apr-
99)


MEDPARTNERS: Sustains Calif. Branch
-----------------------------------                      
A group of health plans and MedPartners Inc. will  
guarantee an initial $50 million to sustain the company's
troubled California subsidiary as part of a tentative deal
with the state.

The settlement, meant to ensure uninterrupted medical care
to more than 1 million patients and payment to their
doctors, should be finalized by April 24 if approved by all
parties, according to documents filed last week by  
MedPartners with the Securities and Exchange Commission.

Under the tentative deal, Alabama-based MedPartners would
have control over the day-to-day management of its
California subsidiary, MedPartners Provider Network, with
continuing bankruptcy court supervision.

MedPartners would provide a $25 million letter of credit as
security for its obligations, and health maintenance
organizations have agreed to provide a loan totaling up to
$25 million to the company, SEC documents show.

In March 9, state regulators seized MPN, a middleman
between health maintenance organizations and providers such
as hospitals and physician groups. The takeover forced the
network to file for bankruptcy.

State Department of Corporations officials contend the
network kept the bare minimum in the regulated portion of
its business to meet state requirements in an attempt to
cover up huge operational losses. The $50 million
guarantee, when coupled with the proceeds from the sale of  
MPN, will ensure payment for patient care as the company
leaves the physician practice management business, said
MedPartners spokesman Robert Mead. MedPartners anticipates
paying about $100 million, in addition to the sale of
network assets, to settle its obligations in California,
Mead added.


MILLER HERMAN: Quarterly Report Filed With SEC
----------------------------------------------
Miller Herman Inc. filed its quarterly report with the SEC
for the quarter ended February 27, 1999.

For the first nine months of fiscal 1999, net sales
increased 6.4 percent to $1,333.9 million compared to sales
of $1,253.3 million in the first nine months of last year.
Net sales decreased $15.2 million, or 3.5 percent, to
$421.6 million for the three months ended February 27,
1999 from $436.7 million last year.

Net income increased 13.2 percent to $102.8 million in the
first nine months of fiscal 1999, compared to $90.9 million
for the same period last year. For the quarter, net income
decreased 8.3 percent to $29.9 million compared with $32.6
million last year.


NEUROMEDICAL SYSTEMS: Committee Taps Parente Consulting
-------------------------------------------------------
The Official Committee of Unsecured Creditors of
Neuromedical Systems, Inc. is seeking authority to employ
Parente Consulting, a division of Parente, Randolph,
Orlando, Carey & Associates, LLC as its accountant and
financial advisor.  The firm will assist the Committee and
its counsel in the investigation of the debtor's financial
affairs as well as provide other accounting and financial
advisory services.  The firm will charge its customary
hourly rates ranging from $285 per hour for a principal to
$55 per hour for a paraprofessional.


OKURA & CO: Joint Application for Extension of Exclusivity
----------------------------------------------------------
The debtor, Okura & Co. (America) Inc. and the Official
Unsecured Creditors Committee of Debtor seeks entry of an
order further extending the debtor's and/or the committee's
exclusive right to file a plan of reorganization from April
19, 1999 through and including May 7, 1999; further
extending the debtor's and/or the Committee's exclusive
right to solicit acceptances thereto from June 18, 1999
through and including July 1, 1999.

The debtor and the Committee have fully negotiated a wind
down budget.  Additionally the debtor has prepared a plan
of liquidation and a liquidating trust agreement that has
been forwarded to the Committee.  The debtor and the
committee are in the process of discussing the provisions
of the liquidating plan and liquidating trust agreement and
are in the process of finalizing same.  Due to the complex
nature of the debtor's business operations and its asset
structure, the parties have not been able to fully complete
the process.


STARTER CORP: Case Summary & 20 Largest Creditors
-------------------------------------------------
Debtor:  Starter Corporation
         370 James Street
         New Haven, CT 06513

Affiliates filing petitions:
Starter Galt, Inc.
Starter Outlet Stores, Inc.
Starter Delaware, Inc.

Type of business: Designer and Marketer of Sports Apparel

Court: District of Delaware

Case No.: 99-906  Filed: 04/19/99    Chapter: 11

Debtor's Counsel:  
  
Klehr, Harrison, Harvey,
Branzburg & Ellers, LLP
919 Market Street
Wilmington, Delaware 19801-3062
(302) 426 1169

Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019
(212) 728-8000                
                  

Total Assets:            $118,100,000
Total Liabilities:       $120,500,000
                                                   
No. of shares of common stock - 28,053,442      

20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
NBA Prperties     Trade      15,649,295
Major League Baseball Properties  Trade   1,591,952
NFL Properties     Trade   1,214,943
NHL ENTerprises      Trade     903,082
Kuehne & Nagel     Trade         765,660
Fox Broadcasting     Trade         666,474
Newcourt Financial Systems Leasing   Trade         575,830
SAP America      Trade     461,248
Player's Inc.      Trade     443,138
Mickelson Group      Trade         300,879
Madison Square Garden     Trade    299,212
CASO Consulting North America   Trade         294,651
Emmitt J. Smith      Trade     250,000
BOOLIM      Trade      191,488
NBG Corporation      Trade     190,000
STAHLS       Trade     186,025
Provident Bank      Trade         185,757
Computer Sales International    Trade     174,478
VIBE Magazine           Trade    173,962
Olympia Entertainment                Trade         170,000


SYBASE INC: Annual Meeting Set For May 27, 1999
-----------------------------------------------
The Annual Meeting of Stockholders of Sybase, Inc., a
Delaware corporation will be held on Thursday, May 27, 1999
at 10:00 a.m. at the offices of the Company, 1650 - 65th
Street, Emeryville, California 94608, for the following
purposes:

1. To elect two Class I directors, each to serve a three-
year term expiring upon the 2002 Annual Meeting of
Stockholders, or until their successors are duly elected
and qualified.

2. To approve an amendment to the 1996 Stock Plan
increasing the total number of shares of Common Stock
reserved for issuance thereunder by 1,800,000 shares.

3. To approve an amendment to the Amended and Restated 1991
Employee Stock Purchase Plan and Amended and Restated 1991
Foreign Subsidiary Employee Stock Purchase Plan increasing
the total number of shares of Common Stock reserved for
issuance thereunder by 2,300,000 shares.

4. To approve an amendment to the 1992 Director Stock
Option Plan to increase the amount of the annual stock
option grant made to non-employee directors from 12,000
shares to 16,000 shares.

5. To approve an amendment to the Company's Restated
Certificate of Incorporation to reorganize the Board of
Directors into a single class.

6. To ratify the appointment of Ernst & Young LLP as
independent auditors for the Company for the year ending
December 31, 1999.


SYSTEMSOFT: Applies To Retain Testa, Hurwitz
--------------------------------------------
Systemsoft Corporation, debtor, seeks authorization to hire
Testa, Hurwitz & Thibeault LLP as its special patent
counsel in the case.  The firm will file US Maintenance
Fees at the rate of $250 for each fee; will prepare
responses to the pending Official Actions at a fee not to
exceed $3,500 per response and shall be compensated at an
hourly fee for patent-related services.


TELEGROUP: Meeting of Creditors
-------------------------------
Telegroup, Inc. filed a voluntary petition under Chapter 11
in the US Bankruptcy Court for the District of New Jersey
on February 10, 1999.

A first meeting of creditors shall be conducted on May 7,
1999 at 10:00 AM at the Office of the US Trustee, One
Newark Center, 21st Floor, Newark, New Jersey.

`
USA BRIDGE: Last Day To File Proofs of Claim
--------------------------------------------
The US Bankruptcy Court for the Eastern Division of New
York entered an order requiring all persons and entities  
who assert a claim against USA Bridge Construction of New
York, Inc. to file a proof of claim on or before June 1,
1999.


VENCOR: Reports $651.5 Million Loss
-----------------------------------
The Louisville Courier-Journal reports on April 16, 1999
that Vencor Inc., Vencor Inc., the embattled Louisville
health-care giant, revealed that it lost $651.5 million in
1998 - or $9.53 per share.

In a long-overdue earnings filing, the company said it
recorded $506 million in pretax losses in the fourth
quarter alone - largely from writing down the value of its
hospital and nursing-home business to reflect weakened
earnings power because of a new Medicare payment system.

The Fortune 500 company, which has been teetering near
bankruptcy, also revealed it has a new and powerful
creditor - the federal government. It said the Health Care
Financing Administration demanded last week that  
Vencor repay $90 million in Medicare overpayments it
received since July by April 23 or face a cutoff of all
Medicare payments. But paying that agency could trigger a
complete cutoff of bank credit. The company - once one of
the hottest stocks in the health-care industry - is in  
default on its $1 billion credit agreement, with $761
million listed as short-term debt since the creditors could
choose to try to collect it immediately.

The banks have given Vencor two extensions, with the latest
set to expire May 28. But Vencor's earnings report says if
the company pays more than $10 million to the financing
administration, its credit will be frozen.  Then there is
Ventas, the company that was spun off from Vencor last year  
that owns most of the nursing homes and hospitals Vencor
operates. Vencor failed to make an $18.5 million rent
payment on April 1. Ventas is allowing its tenant to make
the payments over the course of the month, but another $18  
million is due May 1.

If Vencor doesn't pay all the April rent or doesn't pay
next month's rent by  May 5, Ventas can evict Vencor from
the properties. Vencor says in its report that it would
seek a court order to prevent action by its landlord.
Meanwhile, the annual report says, the banks have told
Vencor that if it misses a rent payment to Ventas without
the cooperation of the landlord, that too could trigger a
shutoff of the credit tap.

The company has gone from operating income of $224.5
million in 1997 to posting an operating loss of $572.9
million last year.


WIRELESS ONE: Not In Favor of Heartland's Alternative Plan
---------------------------------------------------------
Wireless One Inc. is not in favor of an alternative plan of
reorganization proposed by Heartland Wireless
Communications Inc. under which the two companies would
merge. Wireless One disclosed its views in paperwork filed
with the Securities and Exchange Commission. The filing
said that it has considered the plan proposed by Heartland,
and believes that its plan is more favorable to the
company's creditors and  stockholders. Heartland Wireless,
which holds approximately 20% of the common stock of
Wireless One, requested that Wireless One consider an
alternate plan of reorganization in late February.
Heartland Wireless, which is now known as Nucentrix
Broadband Networks Inc. (NCNX), emerged from bankruptcy
earlier this month.  (The Daily Bankruptcy Review Copyright
c April 20, 1999)
  
                   *********

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the same firm for the term of the initial subscription or
balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 301/951-6400.  
       
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