TCR_Public/990429.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
     Thursday, April 29, 1999, Vol. 3, No. 83


ACME METALS: Marsden Retires as Chairman of the Board
AHERF: Lawyers Want To Quit Case
ALLTEL: Registration Statement
ALTA GOLD: Nasdaq To Delist Alta Gold, Once Silver King
ALTIVA FINANCIAL: Prospectus Filed With SEC

AMERICAN RICE: Hearing Set To Establish Bar Date
AMERICAN RICE: Resignation of Deloitte & Touche
AUTOCYTE: Announces Results of Operations For Quarter
BOSTON CHICKEN: Heinz To Sell Groceries With Chicken Name
CITYSCAPE:  Trustee Questions Plan Feasibility

COLORADO CASINO: Increases Losses in Restatements
COUNTRY STAR: Change In Control Reported
CRIIMI MAE: Faces More Debt Problems
FIX-CORP: Court Approves Agreement With Consulting Firm

FRACMASTER: Offer To Purchase Assets Accepted
HEALTHCOR HOLDINGS: Annual Report Filed With SEC
INCO LTD: Announces First Quarter Loss of $16M
KAMCO: To Sell $16 Billion of Non Performing Loans
KOFUKU BANK: Judged To Have Had 46B Yen In Capital Deficit

MCA:  Bankruptcy Court Upholds Commissioner's Actions
MEDPARTNERS: Creditors Due Millions
NED: Given Court Approval of Liquidation Procedures
PEACOCK FINANCIAL: Files Annual Report With SEC

ROOM PLUS: Files Chapter 11 Following Merger Break Down
SERVICE MERCHANDISE: Receives Approval of $750M DIP
SHOLODGE: Annual Meeting Set
SPECTRAN: Annual Meeting of Stockholders Set For May 28
WANG LABORATORIES: Quarterly Report Filed with SEC


ACME METALS: Marsden Retires as Chairman of the Board
Brian W.H. Marsden retired as Chairman of the Board of
Directors of Acme Metals Incorporated (OTC Bulletin  
Board: AMIIQ) effective April 22, 1999.  Marsden, 67,
announced his retirement at the Board of Directors meeting
held last week in Toledo, Ohio.  Mr. Marsden's retirement
follows Acme Metals' established management succession  
plan as well as his desire to pursue other interests and
spend more time with family.  Marsden will continue as a
director of the Company.

Marsden retires after 22 years of service with Acme Metals
Incorporated and its predecessor Interlake, Inc., where he
served as President of its Iron and Steel Division. Upon
the spin-off of Acme Steel Company from Interlake in 1986,
Marsden served as President and Chief Executive Officer
until the formation of Acme Metals Incorporated in 1992
when he became Chairman and Chief Executive Officer.  In  
1996 he relinquished the post of Chief Executive Officer
for health reasons but remained Chairman of the Board.

Acme Metals also announced Stephen D. Bennett's election to
the position of Chairman of the Board succeeding Mr.
Marsden.  Mr. Bennett, 50, was elected to the Board of
Directors in January 1993 and has served as President and
Chief Executive Officer since April 1996, having previously
been named to the position of President and Chief Operating
Officer in January 1993.  He joined the Company in 1990 as
Vice President, Operations, after nearly 15 years in key
operating and management positions with the USS Division of
the USX Corporation and its predecessor, United States
Steel Corporation.

AHERF: Lawyers Want To Quit Case
The Pittsburgh Post-Gazette reports on April 28, 1999 that
the downtown law firm of Stonecipher, Cunningham, Beard &
Schmitt asked the Bankruptcy Court judge overseeing the
reorganization of the Allegheny Health, Education &
Research Foundation for permission to quit the case.

When no objections were raised at a hearing yesterday,
Judge M. Bruce McCullough granted the request. In a written
motion, Stonecipher said it was asking to leave the case
because attorneys representing William Scharffenberger,
AHERF's court-appointed trustee, had asked the firm to
stop  providing services to AHERF's bankrupt subsidiaries.
The trustee, however, had not formally sought the
termination or taken over legal responsibilities for those
entities, the firm said.

ALLTEL: Registration Statement
5,499,997 shares of ALLTEL common stock covered by a
prospectus filed with the SEC are being offered for the
account of certain selling shareholders.

Prior to January 6, 1999, the selling shareholders were the
sole shareholders of Standard Group, Inc., a Georgia
corporation. On January 6, 1999, Alltel completed a merger
with Standard Group, Inc. In the merger, Alltel issued
5,499,997 shares of ALLTEL common stock to the selling
shareholders in exchange for all of the outstanding shares
of capital stock of Standard Group, Inc. Except for the
merger, none of the selling shareholders has held any
position or office or has had a material relationship with
ALLTEL or any of its affiliates within the past three

ALTA GOLD: Nasdaq To Delist Alta Gold, Once Silver King
The Salt Lake Tribune reports on April 27, 1999 that low
gold prices and start-up problems at a new mining site have
sent Henderson, Nev.-based Alta Gold Co. to federal
bankruptcy court where it recently sought protection under
Chapter 11 of the U.S. Bankruptcy Code.

Alta, which was once based in Salt Lake City and operated
under the name Silver King Mines, said it plans to continue
its mining operations while under bankruptcy court

"With gold prices at 19-year lows and our current level of
gold production, the company presently has insufficient
cash flow to service its debt and to meet its other
obligations," said Robert N. Pratt, president and chief  
executive officer.

Under Chapter 11, a company is given court-protection from
creditor lawsuits  while it works out a plan to repay its
debts. Alta Gold hopes to restructure approximately $29
million of outstanding debt and $4 million in trade

Pratt said the company has been working to increase
production and reduce costs but needed time for its gold
production to increase and its cash flow to improve.

Alta Gold, whose shares are listed on the Nasdaq stock
market, said it has received notice that its stock will be
delisted from Nasdaq at the close of business May 1.

The company is evaluating its options, including whether to
appeal the delisting or have its securities listed on
another market.

ALTIVA FINANCIAL: Prospectus Filed With SEC
This prospectus describes Altiva Financial Corporation
(formerly, Mego Mortgage Corporation) and the sale of
shares of our common stock that:
- are owned by certain of our stockholders or
- may be acquired by certain of our stockholders, if they
convert their shares of our Series A convertible preferred
stock into shares of our common stock or
- may be acquired by certain of our optionholders upon
exercise of their options to purchase common stock.

The common stock is traded on the Nasdaq Stock Market under
the symbol "ATVA." Closing sale price on April 23, 1999:

AMERICAN RICE: Hearing Set To Establish Bar Date
The US Bankruptcy Court for the Southern District of Texas,
Corpus Christi Division granted the debtor's motion for
entry of an order setting a date for hearing on the
establishment of a Bar Date.  The hearing is set for May 3,
1999 at 9:00 AM in US Bankruptcy Court, Corpus Christi,

AMERICAN RICE: Resignation of Deloitte & Touche
American Rice, Inc. has been advised that Deloitte &
Touche LLP has resigned as independent accountants and
auditors for the Company. Deloitte's resignation was not a
result of any recommendation of the Company's board of
directors or any board committee. In a motion to withdraw
as professionals for the Company in ARI's Chapter 11
proceedings, Deloitte advised the bankruptcy court that it
believed its resignation was in the best interests of the
Company and was undertaken to avoid the possibility that
certain class action litigation in which Deloitte
is a named defendant might affect the Company's
reorganization efforts.

As previously reported on Form 8-K, the lawsuit was brought
by four current and former shareholders of ERLY Industries
Inc. against certain officers and directors of ERLY and
also Deloitte. Deloitte's motion to withdraw as a
professional service provider to the Company was approved
on April 19, 1999 by the United States Bankruptcy Court of
the Southern District of Texas, Corpus Christi Division.

The Company's financial statements for its March 31, 1997
fiscal year-end were audited by Deloitte whose report
thereon was dated June 20, 1997. The report by Deloitte on
the 1997 financial statements of the Company contained
no adverse opinion or disclaimer of opinion, nor was it
qualified or modified as to uncertainty, audit scope, or
accounting principles. Deloitte was engaged to audit the
March 31, 1998 financial statements of the Company. On
June 30, 1998, Deloitte communicated to the Company's
management and its audit committee on the status of such
audit. At that time, Deloitte communicated a summary of
documentation and other information it needed to
receive from the Company or others and also stated there
were audit procedures remaining to be performed before the
1998 audit could be completed. On August 11, 1998, ARI
filed for bankruptcy protection under Chapter 11 of the
Bankruptcy Code. On October 6, 1998 the Court approved the
Company's application to employ Deloitte as accountants and
auditors. Subsequently, the Company advised Deloitte that
due to the bankruptcy the Company did not believe it was
necessary for the audit to be completed and therefore
Deloitte did not complete the audit. Deloitte was not
engaged to audit the Company's financial statements for the
year ended March 31, 1999.

During the Company's two most recent fiscal years and
through April 19, 1999, there were no disagreements with
Deloitte on any matter of accounting principles or
practices, financial statement disclosure, or auditing
scope or procedure, which disagreements (if not resolved to
Deloitte's satisfaction) would have caused Deloitte to make
reference to the subject matter or matters of the
disagreement in connection with its report.

AUTOCYTE: Announces Results of Operations For Quarter
AutoCyte, Inc. (Nasdaq: ACYT) announced results of
operations for the quarter ended March 31, 1999.

Net sales increased 8% from $1.1 million in the first
quarter of 1998 to $1.2 million in the first quarter of
1999. The increase was due primarily to higher sales volume
of AutoCyte(R) PREP System ("PREP") reagents and related
consumables as the Company continues to expand its
installed base of PREP units, both domestically and
internationally. Operating expenses decreased 4% from $3.0
million in the first quarter of 1998 to $2.9 million in the
first quarter of 1999 as the Company continued to control
costs while working to complete FDA approval for PREP. Net
loss increased 5% from $2.3 million in the first quarter of
1998 to $2.4 million in the first quarter of 1999. Net loss
per share was $0.19, an increase from a net loss per share
of $0.18 in the first quarter of 1998.

AutoCyte, Inc. develops, manufactures and markets the only
integrated automated sample preparation and image analysis
system to support cytology professionals in cervical cancer
screening. AutoCyte is currently pursuing regulatory
approval of its products for sale in the United
States and has begun sales in several foreign countries.
The Company's integrated system is comprised of the
AutoCyte(R) PREP System for sample preparation and the
AutoCyte SCREEN image analysis system.

BOSTON CHICKEN: Heinz To Sell Groceries With Chicken Name
Heinz will sell Boston Chicken in stores: H.J. Heinz Co.
will sell packaged grocery food products with the Boston
Market brand name under an agreement announced Friday by
Heinz and Golden-based Boston Chicken Inc.

Under the agreement, Heinz will pay Boston Chicken an
undisclosed royalty fee based on sales. The agreement is
subject to approval of the U.S. Bankruptcy Court in
Phoenix, where Boston Chicken filed for Chapter
11 bankruptcy protection in October 1998.

Boston Chicken officials said the bankruptcy court is
expected to hear a motion seeking approval of the agreement
at a hearing May 25.

CITYSCAPE:  Trustee Questions Plan Feasibility
The U.S. Trustee acting in the Cityscape Financial Corp.
case has objected to the company's disclosure statement,
arguing that, among other things, the filing fails to
address satisfactorily the feasibility of the
reorganization plan. Specifically, the filing asserts that
Cityscape made no representation as to the accuracy of the
financial projections through 2003 provided by the
disclosure statement as well as stated that the projections
are subject to "substantial uncertainties" that may force
the actual operation results to "vary materially from the
projected operating results." "The United States Trustee
has concerns regarding the extent to which this
information should be relied upon in determining the
feasibility of the Plan." The trustee also requested that
Cityscape clarify the methodology behind the company's $10
million "conservative" aggregate estimate of
administrative, priority tax, and other priority claims as
of the effective date.  (The Daily Bankruptcy Review and
ABI Copyright c April 28, 1999)

COLORADO CASINO: Increases Losses in Restatements
The Gazette reports on April 24, 1999, Colorado Casino
Resorts Inc., owner of two Cripple Creek casinos, announced  
Friday it restated its financial results for the past two
years, increasing its losses by more than $3.7 million.

The Colorado Springs-based company owns Creekers and the
Double Eagle Hotel & Casino, Cripple Creek's largest casino
and its largest hotel. The company built and opened the
Double Eagle in August 1996; it acquired Creekers and  
reopened it in 1994.

The company's chief executive, Rudy Saenz, resigned on
March 22 and has been temporarily replaced by its general
counsel, Michael Smith.

Colorado Casino said the restatements were recommended by
its recently hired independent auditor, Moore Stephens PC.
The company also said a preliminary audit indicated it lost
$9.4 million last year; final results are to be released
next week.

The company also said the restatements and $9.4 million
loss violate financial conditions of its credit agreement.
Colorado Casino said it has received a one-time waiver of
the conditions from its lender and is trying to resolve any
subsequent defaults.

As a result of the restatements, the Nasdaq Stock Market
has given Colorado Casino notice that it will de-list its
stock. A hearing on the de-listing is scheduled for
Thursday. The company's stock rose 6 cents to 50 cents in
trading before the announcement.

Connectivity Technologies, Inc. (OTC Bulletin Board: CVTK)
announced the signing of a new credit agreement between its
operating subsidiary, Connectivity Products Incorporated,
and the subsidiary's lenders.

The new credit facility, extending until January 31, 2000,
is in the amount of $16,460,700, including an over advance,
with the maximum indebtedness at any one time to be
determined by a borrowing base calculation. The agreement  
includes an amortization schedule, is secured by all of the
assets of Connectivity Products and contains covenants
including requirements for the maintenance of stipulated
earnings and net worth.  As part of the agreement  
with the lenders all of Connectivity Products' cash on
hand, including the proceeds of a recently received
$750,000 tax refund, have been paid to the lenders to
reduce the current over advance.  This arrangement ends
Connectivity  Products' default status under its prior bank
loan agreement.

Connectivity Technologies, formerly known as Tigera Group,
Inc., acquired Connectivity Products Incorporated, a
manufacturer and assembler of wire and cable products in

COUNTRY STAR: Change In Control Reported
On March 11, 1999, and pursuant to the terms and  
conditions of a written Stock Acquisition Agreement,  Go
Call, Inc., a then  non-affiliated publicly owned Delaware  
corporation,  acquired an aggregate of 652,973 issued and
outstanding  shares of common stock,  $.01 par value per
share of Country Star Restaurants.  The Country Star shares
were acquired from Dan J. Rubin, Roy B. Rubin MD, Money  
Purchase  Pension  Plan and Daniel Nourani,  the three
principal  shareholders  of the Registrant solely in
exchange for the original  issuance and delivery to the CSR  
Shareholders  of an aggregate  of 4,570,811  theretofore  
authorized  but  unissued  shares of GCI's Common  Stock,  
$.01 par value per share.

On April  19,  1999 and  pursuant  to the  terms  and  
conditions  of a  written Agreement  and  Plan of  Merger  
between  GCI and Country Star Restaurants,   GCI  agreed  
to  acquire  the  remaining  56,362  shares  of  the
Registrant's  Common  Stock  from  the  individual   
shareholders  thereof solely  in  exchange  for  an  
aggregate  of  394,534 theretofore authorized but unissued
shares of GCI's Common Stock, $.01 par value
per share shares.

The Merger Agreement also provided that on the Effective
Date: (i) GCI shall be the surviving corporation: (ii) the
Articles of Incorporation,  By-laws, officer and directors
of GCI shall be the Articles of  Incorporation,  By-laws,  
officer and directors of the surviving corporation; (iii)
the 652,973 CSR Shares held by GCI  immediately  prior to
the Effective  Date shall be canceled;  and (iv) If a
stockholder  of the  Registrant  shall be entitled to
receive a  fractional  GCI Merger Share pursuant to the
Merger,  then such fractional share will be rounded
up to the nearest whole GCI Merger Share.

CRIIMI MAE: Faces More Debt Problems
The National Mortgage News reports on April 19, 1999 that
Criimi Mae, a mortgage real estate investment trust
reported 1998 net income of $42.4 million, 75 cents per
share, down from $62.3 million, $1.02 per share, during

During the fourth quarter, however, when the company's
financial condition suddenly worsened, the company suffered
a net loss of $10.2 million, 23 cents per share, compared
with net income of $13.4 million, 29 cents per share,  
during the fourth quarter of 1997.

Prior to filing for bankruptcy protection, Criimi Mae was a
leading investor in subordinate tranches of commercial
mortgage-backed securities. When spreads suddenly widened
last fall the value of the company's CMBS portfolio fell,
and when creditors unexpectedly made margin calls the
company  was unable to meet their demands and had little
choice other than to file for bankruptcy.

Since last October, Criimi Mae reached agreements with four
of its lenders, but its debt commitments are still far from
resolved. According to the company, "The decrease in net
income was largely due to the impact of turmoil in the
financial markets on commitments related to commercial  
mortgage loans in the company's securitization pipeline.
Reorganization items and other charges also contributed to
the decline in net income.

As a result of capital market turmoil and the uncertainties
resulting from the reorganization proceedings, the
company's results of operations at December 31, 1998 are
not expected to be indicative of results of operations for
future periods.  In other words, a $42 million profit is
not expected for 1999. In fact, there is little doubt that
there will be no profit for 1999, leading to  
speculation about Criimi Mae's ability to continue

The company's independent public accountants have issued a
report expressing substantial doubt about the company's
ability to continue as a going concern.   Criimi Mae,
however, says it plans to file its plan of reorganization
this coming summer. The company said that the plan will
"contemplate the company's emergence from Chapter 11 later
in the year. (However), there is no assurance that
the  company will propose a plan at this time, or that the
plan will be approved or  consummated.

The company's ability to emerge from bankruptcy and resume
the acquisition  of subordinated CMBS, as well as its loan
and securitization programs, depends  largely on (our)
ability to obtain additional capital." In essence, Criimi
Mae can do nothing unless it finds someone to lend it  
money or some other way to obtain capital. "Criimi Mae is
exploring a variety of capital sources, including bank
debt, high yield bond financing and equity  capital," the
company said.

Since October the company has suspended its acquiring,
originating  and securitizing operations, though it still
acts as a servicer of its own portfolio of CMBS and for
both its own and third-party securitizations.

FIX-CORP: Court Approves Agreement With Consulting Firm
On Friday, April 23, 1999, the United States Bankruptcy
Court for the Southern District of Ohio approved Fix-Corp
International, Inc.'s (OTC:BB:FIXC) board of directors'
decision to enter into an agreement with the Philadelphia-
based management consulting firm of Hershhorn & Trichon,
LLC ("H & T").

Pursuant to the agreement, the Company elected Mark P.
Hershhorn as a director and the Chief Executive Officer and
Chairman of the Board of the Company. Mr. Hershhorn will
replace S. Darwin Noll as a director, who resigned
effective as of March 12, 1999. Along with the appointment
of Mr. Hershhorn, James L. Trichon was named Executive Vice
President and Constantinos I. Costalas was named Chief
Operating Officer of the Company.

Under the agreement, H & T will be paid a base annual wage
of $ 450,000 plus certain benefits and incentive
compensation under a plan to be established by the Board
(including an option to be granted to purchase 2,000,000
shares of the Company's Common Stock for a cost of $ .56
per share).

The Bankruptcy Court also issued an order authorizing the
rejection of the Company's employment contract with Mark
Fixler, the company's founder, a current director, and its
Chief Executive Officer. Mr. Fixler further agreed that he
had no claim for damages against the Company arising from
the rejection of his employment contract and waived the $ 2
million severance benefit, health insurance, and automobile
allowance provided for in his employment contract.
Additionally, Mr. Fixler's annual salary was reduced from $
300,000 to $ 150,000 through Dec. 31, 1999. Mr. Fixler, in
June 1998, canceled an option to purchase four million
shares of the Company's stock.

Mr. Fixler will continue to be bound by the noncompetition
and confidential information provisions of his employment
agreement. The Bankruptcy Court also issued an order
authorizing post-petition financing by the Company and its
subsidiaries. Such financing is conditioned upon the
Company's immediately commencing discussions with Chatham
Partners, Inc. ("Chatham") with respect to the validity of
a judgement for approximately $ 4,474,000 Chatham obtained
against the Company in New York state court.

The subject judgement, which caused the Company to seek
protection under the Bankruptcy Code, arose from a disputed
December 1996 agreement pursuant to which Chatham was to
act as the Company's exclusive financial advisor and
placement agent for a private placement of up to $ 5
million of debt securities.

Fix-Corp International, Inc. is an international
environmental-based recycler of post-consumer high density
polyethylene (HDPE) and producer of recycled post-consumer
plastic resin pellets for use in the manufacture of
injection molded plastic products through its wholly-owned
subsidiary, Fixcor Industries, Inc. In addition, the
Company, through its Pallet Technology, Inc. subsidiary,
manufactures high-performance plastic pallets for the
industrial marketplace. The Company is also under a
worldwide licensing agreement with Allied Signal to reclaim
and recycle both oil and plastic from post-consumer HDPE
motor oil containers through its wholly owned subsidiary
Fixcor Recovery Systems, Inc.

FRACMASTER: Offer To Purchase Assets Accepted
Fracmaster announces that its Board of Directors has
accepted a proposal from one of several  
proposals sought and received, subject to necessary
approvals, including regulatory and Court approvals, to
purchase all or substantially all of the assets of the

The Board ranked the offers or proposals in order of their
relative value to the Company as a whole.  All proposals
were evaluated in conjunction with the Banking Syndicate
and the one assessed to add the most value was equally  
supported by the Syndicate of Banks.

UTI Energy Corp., in partnership with its largest
shareholder, REMY Capital Partners III, L.P., submitted a
bid that offered the highest value for the Company's
assets.  All offers or proposals tendered for the Company's  
assets were insufficient for the payment in full of the
claims of the Company's secured creditors. Accordingly, no
proceeds are available for distribution to the shareholders
of the Company.

A court application has been scheduled for 1:00 p.m., April
30, 1999 before Madame Justice Paperny of the Court of
Queen's Bench of Alberta, Judicial District of Calgary, to
hear the application of the Company pursuant to the  
Companies' Creditors Arrangement Act and the UTI/REMY
proposal to deal with the approval or the scheduling of an
application for the approval of the accepted  UTI/REMY

HEALTHCOR HOLDINGS: Annual Report Filed With SEC
Healthcor Holdings, Inc. is one of the largest providers of
comprehensive home health care services based in the
southwestern and central United States, providing home
nursing, respiratory therapy/home medical equipment and
infusion therapy.  The Company currently has 51 offices in
eight states.  For the year ended December 31, 1998, the
Company had net revenues of $115.7 million and a net loss
of $(98.3) million.

The net loss includes significant pre-tax charges during
1998, including goodwill write-offs of $31.8 million as a
result of certain unamortized goodwill balances that were
evaluated and deemed impaired, additional provisions for
doubtful accounts of  $31.6 million and a loss on
disposition of assets of  $1.5 million.  In addition, 1998
results were adversely affected by the Company's Medicare
nursing operations exceeding Medicare nursing cost
limitations by $5.6 million.

INCO LTD: Announces First Quarter Loss of $16M
Inco Limited reported a loss of $16 million, or 13 cents a
common share, for the first quarter of 1999, compared with
a loss of $13 million, or 13 cents a share, in the fourth
quarter of 1998 and a loss of $41 million, or 29 cents a
share, in the first quarter of 1998. Fourth quarter  
1998 results included an after-tax gain of $20 million, or
12 cents a share, resulting from the sale of the Company's
100 per cent interest in Inco Alloys International. First
quarter 1998 results included an after-tax charge of $32  
million, or 19 cents a share, associated with the Company's
restructuring actions.

Commenting on the first quarter 1999 results, Mike Sopko,
Chairman and Chief Executive Officer, said that: "While we
are encouraged by the improvement in nickel prices in the
first quarter of 1999, our program to reduce costs and  
expenses throughout Inco continues as part of our
overriding objective to restore our profitability even in
these difficult market conditions. We continue to believe
that the long-term growth in nickel demand is excellent and
that it will be only a matter of time before prices return
to higher and more normal levels."

The Company's realized price for copper averaged $1,455 per
tonne ($0.66 per pound) in the first quarter of 1999,
compared with $1,676 per tonne ($0.76 per pound) in the
fourth quarter of 1998 and $2,006 per tonne ($0.91 per
pound) in the first quarter of 1998. Realized prices in
1998 benefited from the favourable impact of the Company's
copper hedging activities.

Net sales from continuing operations were $438 million in
the first quarter of 1999, compared with $403 million in
the fourth quarter of 1998 and $500 million in the first
quarter of 1998.

KAMCO: To Sell $16 Billion of Non Performing Loans
Korea Asset Management Corporation ("KAMCO") has announced
that it will extend invitations to a limited number of
domestic and international investment groups to bid in  
KAMCO's upcoming sale of approximately 1 trillion Korean
won (about $850 million) of non-performing loans ("NPLs")
to corporate borrowers which have been financially
restructured under Korean court supervision.

This sale, which is scheduled for the end of May, will be
one of Korea's largest bulk sales to date and is part of
KAMCO's plan to sell as much as 16 trillion won of NPL's
during 1999.

KAMCO has operated for 37 years as a collection and
foreclosure agency for Korean financial institutions and
was appointed immediately following the onset of the Asian
financial crisis as the sole institution in Korea to manage
and dispose of the country's NPLs.

As of February 1999, KAMCO had acquired 44.1 trillion won
($36.8 billion) of NPLs from distressed financial
institutions throughout Korea and is expected to acquire an
additional 20 trillion won of assets by the end of this
year. Under its current mandate, KAMCO plans to sell over
65 trillion won ($54.2 billion) of NPLs over the next 5 to
6 years.

The upcoming sale, known as KAMCO 99-1: Restructured
Corporate Loan Portfolio  Sale will include both secured
and unsecured, non-performing corporate loans  which have
completed reorganization proceedings or voluntary
composition  agreements with their lenders under court
supervision. The borrowers include major Korean corporate
groups with operations in the manufacturing,  construction
and services industries.

Approximately 25 percent of the portfolio includes assets
secured by commercial, residential and industrial
properties with the balance consisting of unsecured loans*
subject to approved reorganization plans. KAMCO is
currently  completing the third phase of a U.S., European
and Asian road show designed to  meet with selected
investors and promote its upcoming loan
portfolio sales.

Initial indications of investor interest in the KAMCO loan
sales have been very  positive.

In addition to the KAMCO 99-1: Restructured Corporate Loan
Portfolio Sale scheduled in May 1999, KAMCO plans to offer
a 1.2 billion won ($1 billion) portfolio of defaulted
mortgage loans for sale in June 1999.

KAMCO expects the number of bidders in the upcoming sales
to significantly increase over its two previous asset sales
in 1998 (208 billion won portfolio of corporate loans
purchased by Goldman Sachs and 565 billion won portfolio of  
mortgage loans purchased by Lone Star Fund II.).

Investor interest in Korea's economic recovery has surged
as the Korean economy has bottomed out and is now viewed to
be on the rebound.

Recent forecasts indicate that Korea's GDP will grow 2 to
3% this year after contracting 5.8% last year. Foreign
investment in Korea has sharply increased during the first
quarter of 1999 as investors have entered the market to buy
interests in Korean banks, insurance companies,
manufacturing concerns and other businesses.

E&Y Kenneth Leventhal Real Estate Services Company, LLC, an
affiliate of Ernst & Young LLP, will act as financial
advisor to KAMCO. EYKL is one of the leading loan sale
advisors to government agencies and financial institutions
throughout Asia.

KOFUKU BANK: Judged To Have Had 46B Yen In Capital Deficit
Kofuku Bank, a regional bank based in Osaka, was  
judged by a government agency to have had 46 billion yen in
capital deficit at the end of last September, government
sources said Wednesday.

The Financial Supervisory Agency (FSA) also found that the
bank had some 13 billion to 14 billion yen in latent losses
on its securities portfolio, indicating the bank is in a
highly precarious financial state, the sources said.

Earlier this month, FSA officials said the agency had told
Kofuku Bank of the results of its inspection into the
bank's financial standing as of Sept. 30, the end of the
bank's semiannual financial period, but no exact figures
were disclosed.

On April 13, the FSA ordered Kofuku Bank to recapitalize,
after it told of the results of the inspection, the sources
said.  The FSA expects Kofuku Bank to report by mid-May on
what steps have been taken for recapitalization, and is
expected to then consider ordering the bank to take further
action, if necessary.

Kofuku Bank has been arguing that when it closed its yearly
financial account on March 31, its capital deficit should
have been wiped out, as it increased its capital by 6
billion yen in late January, and if it is allowed to  
reevaluate taxation effects on the loan-loss provisions it
has built up in the past.

These steps should have increased the bank's profits and
assets enough to cover losses and liabilities at the end of
March, lifting it out of a capital deficit, the bank said.

Kofuku Bank nonetheless is planning to increase its capital
further because even if a capital deficit is avoided on
account of the recapitalization step and the tax effect
accounting, the bank's capital is insufficient to meet the  
adequacy level for domestically operating banks, bank
officials said. (Kyodo-04/28/99)

MCA:  Bankruptcy Court Upholds Commissioner's Actions
U.S. Bankruptcy Judge Steven W. Rhodes ruled Monday that
Michigan Banking Commissioner Patrick McQueen acted within
his authority when he put MCA Financial Corp. and 11 of its
affiliates in conservatorship, according to the Detroit
Free Press. McQueen, who is commissioner for the Michigan
Financial Institutions Bureau, named B.N. Bahadur, chief
executive of BBK Ltd., as conservator upon seizing MCA and
its affiliates nine days after the company laid off almost
all of its employees. Bahadur then filed involuntary
chapter 11 on the company's behalf two weeks later. The
U.S. Trustee's office contested the decision earlier this
month, challenging the authority of both McQueen and

Medical Resources, Inc. specializes in the operation and
management of fixed-site outpatient diagnostic imaging
centers in the United States. The Company currently
operates and/or manages 94 outpatient diagnostic imaging
centers located in the Northeast (58), Southeast (23), the
Midwest (8) and California (5), and provides network
management services to managed care organizations.

For the year ended December 31, 1998, total Company net
service revenues were $179,056,000 versus $144,412,000 for
the year ended December 31, 1997, an increase of
$34,644,000 or 24%. This increase resulted from the
inclusion for all of 1998 of centers acquired during 1997,
which contributed $37,568,000 in revenues, net of a
$2,924,000 decline in revenues at imaging centers operated
by the Company since January 1, 1997. Costs of operations
totaled $162,553,000 in 1998 as compared to $129,093,000
in 1997. The Company's net loss from continuing operations
for the year ended December 31, 1998 was $25,072,000
compared to net loss from continuing operations for the
year ended December 31, 1997 of $31,968,000.

MEDPARTNERS: Creditors Due Millions
Business Press Ontario CA reports on April 26, 1999 that
the bankruptcy of a major health plan in California has
local creditors waiting for payments that could amount to
millions of dollars.

MedPartners Provider Network, a health-care plan operating
in California and owned by MedPartners Inc. of Birmingham,
Ala., was placed in bankruptcy by California officials last
month. The plan operates U. S. FamilyCare clinics
and  Talbert clinics. It also includes affiliated clinics,
among them several Inland Empire offices, the largest of
which is Riverside Medical Clinic with more than 100  

Riverside Medical Clinic is a creditor in the bankruptcy,
and so is KPC Global Care of Riverside, the largest locally
based physician practice management firm with 250,000
enrolled patients. Another local creditor is Inland Health
Organization, a Redlands-based manager of more than 400
physicians. Inland Health is a wholly owned division of
Catholic Healthcare West. The local companies continue to
operate under their contracts with MedPartners. As a
result, the amount owed them won't be known until the  
bankruptcy is settled.

"I don't know what the amount in the filing is, but it's
not of much consequence because the clinic does have some
revenue," said Greg Hardke, attorney for Riverside Medical
Clinic. "But the final accounting will be in the
millions." Hardke is a partner with Best Best & Krieger LLP
in Riverside.

MedPartners reached an agreement in principle with state
officials on April 9 for a transition of the plan's
operations and assets. The company had announced last
November that it would divest itself of all  
its physician management business. In the proposed
settlement, MedPartners has arranged a $50 million fund to  
be paid as needed to the provider network or to companies,
such as Global Care, that acquire its assets. Details of
the agreement are still being worked out, said MedPartners
spokesman Shawn Flynn.

NED: Given Court Approval of Liquidation Procedures
Jiji Press English News reports on April 27, 1999 that
Nippon Enterprise Development Corp. has received court
approval for starting the procedures for liquidating
itself, Teikoku Data Bank Ltd. said Tuesday.

NED, a major venture capital firm affiliated with failed
Long-Term Credit Bank of Japan, received the approval from
Tokyo District Court on April 9, the credit research agency
said. NED left liabilities of about 510 billion yen.
Eight NED affiliates also received court approval for
launching liquidation procedures on April 9.

NED tumbled into difficulty following the collapse of
asset-inflated economic "bubbles" in the early 1990s, which
left the company with mountains of problem loans.

NED handed over its venture capital operations to an
investment partnership set up by Yasuda Fire and Marine
Insurance Co. early this year after LTCB was placed under
state control due to its insolvency late last year.

PEACOCK FINANCIAL: Files Annual Report With SEC
Fiscal year 1998 was the Company's third year as a public
company.  It was a year of substantial change in the
structure of the Company due to the failure of
the Hawthorne Group, Ltd. to fund its $10,000,000
commitment as anticipated.  In September 1998, the Company
filed with the Securities and Exchange Commission to
become a Business Development Corporation under the
Investment Act of 1940 as part of management's strategy to
seek diversification in its operations and to
become less dependent on its real estate operations for

The Company continues to believe that it will benefit
substantially from its position in the San Jacinto Valley
where a $3 billion recreational lake is currently under
construction and is expected to be completed in 1999.  All
economic indicators show a marked increase in home sales
and land values in the area and the Company expects to
place several of its real estate projects into development
through joint ventures with builders and investors in the
coming year.  Peacock Financial Corporation reported a net
loss of $1,533,436 and revenues of $609,811 for the year
ending December 31, 1998 versus net income of $222,009 and
revenues of $2,075,386 for the year ending December 31,
1997.  The net loss and reduction of revenues was due
primarily to the repositioning of the real estate
operation to receive the anticipated $10,000,000 capital
infusion from the Hawthorne Group, Ltd. which did not

The Company currently employs 4 people.  The Company uses
independent consultants for a variety of tasks, including
engineering and architecture for real estate development,
shareholder relations and financial management.  Its
principal executive offices are located at 248 East Main
Street, San Jacinto, California 92583.

ROOM PLUS: Files Chapter 11 Following Merger Break Down
Room Plus Inc., a furniture designer and retailer in
Roseland, N.J., announced Monday that it had filed chapter
11 in Newark, N.J., according to Reuters. The company said
it received a debtor-in-possession loan of $1 million from
Nationwide Warehouse President David Belford to continue
operations. Room Plus had previously received a $1.5
million loan from Belford in July, who was subsequently
named company chairman and has warrants to buy 2 million
shares of Room Plus at $2 each, and the company said it
expects that loan to be converted into equity upon the
company's reorganization. But in March, Nationwide ended
the merger deal with Room Plus, causing steep losses for
Room Plus and setting the stage for its subsequent filing.
(ABI 28-Apr-99)

SERVICE MERCHANDISE: Receives Approval of $750M DIP
Service Merchandise Company, Inc. (NYSE:SME) announced that
it has received final approval from the Bankruptcy Court of
its $ 750 million debtor-in-possession (DIP) financing
agreement to fund the Company's operations during its
restructuring process.

The DIP agreement calls for the Company's current senior
lenders led by Citicorp USA, Inc., as administrative agent,
Bank Boston, N.A., as documentation agent and collateral
monitoring agent, and Salomon Smith Barney Inc., as sole
arranger and book manager to provide $ 750 million in
post-petition financing to Service Merchandise to purchase
goods and services and fund the company's ongoing operating
needs during its voluntary restructuring under Chapter 11,
which commenced on March 27, 1999. The Company said during
yesterday's Court proceedings that it intends to exit
Chapter 11 prior to the maturity of the loan in June 2001.

The Company will file a Form 8-K with the Securities and
Exchange Commission which sets forth its three-month
borrowing base and borrowing availability projections under
the DIP facility prepared in connection with the Court's
approval of the final DIP order. The forecast projects a
borrowing base which ranges from $ 514 million to $ 544
million over the period from May 2, 1999 to July 18, 1999,
and unused borrowing availability which ranges from $ 165
million to $ 195 million. The projected amounts available
are subject to a reserve of $ 50 million until the Company
has presented its 1999 Chapter 11 Operating Plan and the
plan has been approved by its lenders.

The Court also scheduled for May 5, 1999 consideration of
the Company's employee retention program.

In other actions, the Court approved the Company's motion
to establish vendor reclamation procedures; its motion to
retain the Keen Venture, a joint venture of Keen Realty
Consultants, Inc., Trammell Crow Retail Services and Dean &
Associates, to market its surplus real estate properties;
and its motion to reject certain real property leases. The
Company has also rejected the leases of two former
corporate aircraft. The Court also finalized retention of
the law firms and financial advisors for the Company and
the Creditors' Committee.

Service Merchandise and its subsidiaries filed voluntary
petitions for reorganization under Chapter 11 in the U.S.
Bankruptcy Court for the Middle District of Tennessee in
Nashville on March 27, 1999.

Service Merchandise is a specialty retailer focusing on
fine jewelry, gifts and home decor products.

SHOLODGE: Annual Meeting Set
The Annual Meeting of Shareholders of ShoLodge, Inc. will
be held at 9:00 a.m. Central Daylight Time on Friday, May
28, 1999, at the Sumner Suites Hotel, 330 East Main Street,
Hendersonville, Tennessee to elect two Class II directors,
each to hold office for a term of three years and until a
successor is elected and qualified.

SPECTRAN: Annual Meeting of Stockholders Set For May 28
The Annual Meeting of the Stockholders of SpecTran
Corporation will be held at The Fairmont Copley Plaza
Hotel, 138 St. James Avenue, Boston, Massachusetts, on May
28, 1999, at 10:00 a.m. (local time), for the following

1.  To elect three Directors of the Company to hold office
for a three-year term;

2.  To consider and vote upon the ratification of the
reservation of 345,000 additional shares of the Company's
authorized but unissued shares of Common Stock for issuance
under the Company's Incentive Stock Option Plan;

3.  To consider and vote upon the ratification of the
appointment of KPMG Peat Marwick, LLP as independent
certified public accountants for the Company for the year
January 1, 1999 through December 31, 1999.

WANG LABORATORIES: Quarterly Report Filed with SEC
For the three months ended September 30, 1998, Wang
Laboratories Inc. and its subsidiaries reported revenues of
$786.0 million, a $473.8 million increase compared to
revenues of $312.2 million for the same prior year period,
primarily attributable to the Olsy acquisition. The Company
reported an operating loss of $16.0 million for the three
months ended September 30, 1998, compared to operating
income of $10.1 million for the three months ended
September 30, 1997.For the three months ended September 30,
1998, Wang Laboratories Inc. reports a net loss of $22.8
million compared to a net loss of $11 million for the same
period in the prior year.

EBITDA for the three months ended September 30, 1997 was
$39.2 million and is calculated by adjusting income from
operations of $10.1 million depreciation and amortization
expenses of $15.3 million and $7.0 million, respectively,
and other income of $6.8 million. For the three months
ended September 30, 1997, cash used in operating, investing
and financing activities was $16.9 million, $9.9 million
and $36.2 million, respectively.


The Meetings, Conferences and Seminars column appears in
the TCR each Tuesday.  Submissions via e-mail to are encouraged.  Bond pricing,
appearing in each Friday edition of the TCR,
is provided by DLS Capital Partners, Dallas, Texas.

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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All rights reserved.  ISSN 1520-9474.  

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