TCR_Public/990502.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
     Monday, May 3, 1999, Vol. 3, No. 84


AMERICAN ELECTRIC: Shareholders Air Concerns
AMERICAN MOBILE: Annual Meeting of Stockholders
AMERICAN PAD: First Quarter Results
ANACOMP: Agrees To Sell Magnetic Tape Business For $47.5M
CASEY'S: Williamsburg Store Hires Liquidation Company

EAGLE PICHER: Subsidiary Acquires Charterhouse Automotive
EDISON BROS: Promises Big Closing Sales
FIRST UNION: Rights Offering Filed With SEC

HIGHWAYMASTER: Annual Meeting of Stockholders
INTERNATIONAL META: Patent Infringement Story
JAPAN NATIONAL OIL: 775 Billion Yen In Bad Loans
NEWSTAR RESOURCES: Subsidiaries Submit Reorganization Plan
ONE PRICE: Files Annual Report

PARAGON TRADE: Manufacturing Operations Will Cease
PITTSBURGH PENGUINS: Lemieux To Present Updated Plan
SALANT CORP: Salant and Supreme Reach Agreement
SOLO SERVE: Completes Liquidation of Inventory

STARMET: Special Meeting of Stockholders - May 10
SUN HEALTHCARE: Still No Plans For Bankruptcy
TOROTEL: Sells Substantially All Assets
TRI-LITE: Annual Report
TRISM INC: Annual Meeting of Stockholders


AMERICAN ELECTRIC: Shareholders Air Concerns
Charleston Daily Mail reports on April 28, 1999 that  
American Electric Power Co. Inc.'s top brass today reported
"disappointing financial results" for 1998, then heard an
earful from shareholders.

Linn Draper, chief executive officer, reported 1998 net
income of $536 million and earnings per share of $2.81.
An extended outage at the company's Cook Nuclear Plant near
Chicago cost the company 29 cents a share and the mild
weather of 1998 cost 17 cents a share, he said.
Draper said other factors contributing "to our less than
robust stock performance" include the uncertainty of
electricity restructuring plans in Ohio and the length of
time being taken to merge with Central & South West
Corp. AEP announced plans to merge with Central & South
West in December 1997. Draper said the deal may not close
until the end of the year.

He announced that the International Brotherhood of
Electrical Workers representing American Electric Power and
Central & South West Corp. has withdrawn its objection to
the merger. In addition, three of the four states in
which Central & South West operates have approved the

Draper said AEP's management believes the company can
prosper in a deregulated environment as a low-cost provider
of energy.

The Columbus-based utility serves 462,000 customers in West
Virginia. It was the first time since 1987 the utility held
its annual meeting in Charleston.

AMERICAN MOBILE: Annual Meeting of Stockholders
The annual meeting of stockholders of American Mobile
Satellite Corporation will be held at 9:00 a.m. on
Wednesday, May 26, 1999 at the Sheraton  Reston  Hotel,  
11810 Sunrise  Valley  Drive,  Reston, Virginia (703/620-
9000) for the following purposes:

1. To elect nine directors;

2. To consider and act upon a proposal to amend the  
Company's  1994 Stock Option Plan for  Non-Employee  
Directors,  in order to  increase  the number of
authorized  shares  available  under such Plan and to  
increase  the size of the automatic option grants under
such plan;

3. To consider and act upon a proposal to ratify the  
appointment of Arthur Andersen LLP as independent  
accountants  for American Mobile for the year 1999;

AMERICAN PAD: First Quarter Results
American  Pad &  Paper  Company reports financial results
for the first quarter ended March 31, 1999.

For the first quarter ended March 31, 1999, the Company  
reported a net loss of $12.8 million,  or 46 cents per
share,  on net sales of $137.6  million.  These results  
include  previously  announced  plant  rationalization   
charges reflected in cost of goods sold totaling $1.3
million, which negatively impacted first quarter
performance by 5 cents per share. Comparable first quarter
results in 1998 were a net loss of $2.1 million, or 8 cents
per share, on net sales of $161.6 million.

During the first quarter 1999, the Company posted EBITDA
performance of $5.6 million as measured by the Company's  
bank  agreement  and  reported a cumulative   nine-month  
EBITDA  performance that exceeds  the  bank  covenant
requirements  by $7.6 million.  Cost controls also had a
positive  effect as the Company reduced SG&A expenses in
the first quarter by $1.0 million sequentially over the
fourth quarter of 1998.

James W. Swent III, Co-Chairman and Chief Executive Officer
of the Company said,  "Revenue  performance was at the
lower end of expectations,  but gross margin and expense  
control  helped drive EBITDA to hit our  plan  for the  
first  quarter.  Inventory grew as expected  due to  plant
rationalization and second half 1999 seasonal sales
requirements.  The full year goal remains to reduce
inventory levels by $10 million year over year.  Accounts
receivable  balances  also dropped in the first quarter by
$22 million as fourth `quarter sales were collected."

Company revenues in total year 1998 were $662 million.

ANACOMP: Agrees To Sell Magnetic Tape Business For $47.5M
The San Diego Union Tribune reports on April 29, 1999 that
Anacomp Inc., which provides document storage equipment and
archiving services, has agreed to sell its magnetic tape
business to an investment group led by Windward Capital of
New York for $47.5 million.

The division, with about 600 employees worldwide, provides
tape- based equipment and services that enable businesses
and agencies to store and retrieve corporate data. The
deal, which is contingent on financing and regulatory
approval, is expected to close within 45 days.

About 15 marketing and administrative employees in the
division will remain at Anacomp's corporate headquarters in
Poway for the next year, said Julie Miller, an Anacomp
spokeswoman. The division accounted for about 18 percent of
Anacomp's revenue of $138.9 million for the fiscal first
quarter ended Dec. 31. Proceeds of the sale will be used to
develop new business as part of Anacomp's strategic shift,
which is focusing on Internet-based data and document
storage services for the banking, brokerage and insurance

The company is exiting the magnetic-tape business because
it's less profitable than digital imaging, said Imperial
Capital analyst Mark L. Levin. "I see everything fitting
much better after the sale," said Levin, who rates
Anacomp's shares as "buy." "I think these guys want to be
the one-stop provider of document and management services."

The magnetics unit doesn't expect any of its 600 workers at
plants in Graham, Texas, and Wales to be fired, said Ralph
W. Koehrer, Anacomp's chief executive. Anacomp will
continue to provide microfilm-based document storage  
equipment and services, Miller said. Anacomp executives
have not yet determined whether any proceeds will be used
to buy down debts arising from the company's bankruptcy
reorganization, Miller said. The company is expected to
repay those debts by the end of this year.

Anacomp, which filed for bankruptcy protection in January
1996, and reorganized later that year, doesn't expect to
sell other divisions, though it will likely acquire
commercial service outsourcing and document imaging  
companies, Koehrer said.

"We are actively considering acquisitions and investments
over and above the proceeds of this sale," he said.
"There's no one today who really specializes  
in documents and services, and that's an area we think is
important and growing."

CASEY'S: Williamsburg Store Hires Liquidation Company
The owners of Casey's, a 70-year-old department store
located in the historic area of Colonial Williamsburg, Va.,
has enlisted a liquidation company to sell the business,
stated Newport News, Va.'s Daily Press. It is not known at
this time whether Casey's, which filed chapter 11 in
March and leases its store property from Colonial
Williamsburg, will close altogether or open under new
management. Casey's submitted a request to the bankruptcy
court on April 23 seeking permission to hire retail
consultant Fox South in an attempt to buy and sell
inventory through the end of the year, but the retailer has
also hired a broker to work with any companies that may
want to purchase the store. (ABI 30-Apr-99)

On April 27, 1999, Connectivity Technologies Inc., which,
together with its subsidiary, Connectivity Products
Incorporated ("CPI"), hereinafter called "Connectivity,"
entered into a new Credit Agreement with CPI's Lending
Banks. The Credit Agreement, 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 Credit
Agreement includes an amortization schedule, is secured by
all of the assets of CPI and contains covenants
including requirements for the maintenance of stipulated
earnings and net worth.  As part of the Credit Agreement,
all of CPI's 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 CPI's default status under its prior bank
loan agreement.

EAGLE PICHER: Subsidiary Acquires Charterhouse Automotive
On April 14, 1999, Hillsdale Tool & Manufacturing Co. an
indirectly wholly-owned subsidiary of Eagle-Picher
Holdings, Inc. acquired all of the outstanding capital
stock of Charterhouse Automotive Group, Inc., a Delaware
corporation, the indirect parent corporation of Carpenter
Enterprises Limited, a Michigan corporation. The
acquisition was made pursuant to a Stock Purchase Agreement
dated April 8, 1999, which was held in escrow until April
14, 1999, and is effective as of March 1, 1999 for
accounting purposes. The total consideration
paid for Charterhouse was approximately $72.0 million,
consisting of $37.9 million for the stock of Charterhouse,
a $3.1 million payment to the former president of Carpenter
under a phantom stock plan which was triggered by the
transaction, and $31.0 million of existing indebtedness of

Carpenter is a supplier of precision machined components to
the automotive industry. Charterhouse is a holding company
whose only asset is the stock of Charterhouse-Carpenter
Holdings, Inc., a Delaware corporation, another holding
company whose only asset is the stock of Carpenter. It is
anticipated that Charterhouse and Holdings will be
dissolved in the near future.

EDISON BROS: Promises Big Closing Sales
Edison Brothers Stores closing sales are beginning at 295
J. Riggings and 135 Wild Pair Stores. The mall based stores
are in every state plus Puerto Rico,the  Virgin Islands and
Washington, D.C., except Maine, Rhode Island, Alabama,
West  Virginia, North Dakota, Wyoming, Montana and Idaho.

The company reports that store wide discounts will be given
on all categories of merchandise including casual and dress
menswear at the 295 J. Riggings stores and trendy, fashion  
leading shoes at the 135 Wild Pair stores.  The stores,
several of which are located in the same malls, will be
open during their normal operating hours. The sales will
last until all merchandise has been sold.

Gary Kulp, principal of Boston-based Gordon Brothers Group,
claims "This is a great deal for young people who have been
loyal to the Edison Brothers stores, but they'd better move
fast as we know these fashions will  
sell quickly."

Effective March 31, 1999, Fastcomm Communications
Corporation acquired the assets of KGData, Inc. ("KGD"), a
Connecticut corporation engaged in the data communications
business. The acquisition was valued at $845,000.

In connection with this acquisition, which will be
accounted for as a purchase, the company issued 719,149 of
its restricted common shares, $.01 par value to the
President and sole stockholder Kenneth A. Bloom ("Bloom")
in exchange for assets and the assumption of certain

In connection with the Acquisition, Bloom (i) was granted
certain registration requests with respect to the
restricted shares issued to him, and (ii) entered into a
three-year employment agreement with the company.

The company intends to operate KGD as a separate subsidiary
in Norwalk, Connecticut.

FIRST UNION: Rights Offering Filed With SEC
filed with the SEC regarding 12,550,442 rights to purchase
12,550,442 shares of beneficial interest.

The accompanying Prospectus is available via the Internet

Each right allows its holder exercise rights to subscribe
for one common share for $4.00 until 5:00 p.m., Eastern
Daylight Time, on May 12, 1999, or a later time and date
that the company selects, at which time the right will

A holder who exercises all of its rights --(the symbol
"FUR," and their last reported sale price on April 19, 1999
was $4.6875) may oversubscribe for some or all common
shares subscribed for by others so long as such holder will
not own more than 9.8% of the company's common shares.

Standby purchasers will be Gotham Partners, L.P., Gotham
Partners III, L.P., and Gotham Partners International, Ltd.
have agreed to purchase at the $4.00 subscription price any
common shares not purchased by others through the exercise
of rights or the oversubscription privilege, up to
12,500,000 common shares having a total subscription price
of up to $50,000,000.                                       
The company will use approximately $39.4 M of the net
proceeds of the offering to repay a portion of a loan made
to the company by lenders that include insiders.

HIGHWAYMASTER: Annual Meeting of Stockholders
The Annual Meeting of Stockholders of HighwayMaster
Communications, Inc. will be held at our headquarters at
1155 Kas Drive, Richardson, Texas 75081 on Tuesday, May 25,
1999, at 1:30 p.m., to consider and vote on the following

1. Election of six directors to hold office until the next
Annual Meeting of Stockholders and until their respective
successors shall have been duly elected and qualified.

2. Ratification of PricewaterhouseCoopers LLP as our
independent accountants for 1999.

INTERNATIONAL META: Patent Infringement Story
The $500 million lawsuit filed by the Northbrook, Ill., law
firm TechSearch LLC against the semiconductor giant  
Intel, Corp. (Nasdaq: INTC) has created tremendous interest
from both financial and industry experts.  This story has
left many unanswered questions regarding ethics and the
origination of the fundamental technology that supports
today's high-speed microprocessors.  

The members of ILDF, the International Meta System's (OTC
Bulletin Board: IMESQ) shareholder and creditor advocacy
group,  have worked relentlessly to archive factual
information material to the genesis of this unfolding

An April 16, 1999 Wall Street Journal Article detailed the
aggressive tactics Intel employed to undermine the pending
patent-infringement suit in San Francisco, California
Federal Court.  By the use of a fallacious Cayman Island  
shell company, Intel attempted to challenge TechSearch's
ownership of the patent in question at a separate IMS
bankruptcy case in Austin, Texas where Judge Frank R.
Monroe, who is overseeing the proceedings, "Concluded
that Intel  and the Cayman company had portrayed themselves
as trying to help the bankrupt debtor when they were in
fact really out to undermine the patent case."  The  
significance of the Patent in question is the probability
that the technology  it covers is currently being used by
the computing industry without license and  possibly
represents an essential component of the Pentium(TM)

ILDF also questions the ownership of the patent originally
developed by IMS as evidenced by supporting documentation
they have compiled at,that includes  
legal filings asserting fraudulent asset transfer and the
qualification of the patent as a preference item by the  
bankruptcy court. Additional information including
declarations by key executives and directors are also
available and raise many unanswered questions  as to the
course of events that lead to the bankruptcy of IMS
and the ownership  of a technology patent that has gained
the attention of the most influential players in the high
tech industry.

ILDF, Inc. was formed as a benevolent association in
support of the fair and just treatment of the creditors and
shareholders of International Meta Systems, Inc., a
Delaware corporation ("IMS").

JAPAN NATIONAL OIL: 775 Billion Yen In Bad Loans
Kyodo News reports on April 29, 1999 that Japan National
Oil Corp. is facing serious difficulties in collecting
credits, with at least 775 billion yen -- more than  
half of its total credits to private oil explorers --
becoming bad assets as of March 31, 1997, a government
report said Friday.

The state-run oil-project investment firm had 1.41 trillion
yen in outstanding credits to 146 oil exploration companies
at the end of fiscal 1996 through lending and investment
activities, according to the report compiled by the  
Management and Coordination Agency.

At that time, it had 350 billion yen in outstanding credits
with extremely weak  collection prospect due to the
collapse or insolvency of borrowers, the report  said.

The company also had 355 billion yen in outstanding credits
on which interest payments had been suspended by that time,
and 70 billion yen in credits which it "has not been able
to recover for a long period," it said.

There is no public record of how sharply the company's bad
"loans" may have increased over the past two years.  The
bad loan assessment was part of the agency's financial
health analysis of five government-run or semi-official

The other four are Japan Highway Public Corp., Metropolitan
Expressway Public Corp., Hanshin Expressway Public Corp.
and Honshu-Shikoku Bridge Authority.

The report is the first in a series of audits being
conducted by the agency of the financial books of 29
government corporations.  Hanshin Expressway may need 271
years to earn the money needed to repay its borrowings,
based on the average annual revenue it receives from
highway tolls, the report cautioned. (Kyodo-04/29/99)

NEWSTAR RESOURCES: Subsidiaries Submit Reorganization Plan
Newstar Energy USA Inc. and Newstar Energy of Texas LLC
filed a joint reorganization plan with the U.S. bankruptcy
court for the Western District of Michigan earlier this
week, according to a newswire report. The companies' parent
company, Michigan-based Newstar Resources Inc., is an
independent natural gas and oil exploration and production
company with properties in Michigan, Texas and Ohio. The
company released the following information on its creditor
arrangements: "Class 1 shall consist of the secured claim
of Canadian Imperial Bank of Commerce. Newstar believes the
claim to be approximately $10,400,000. Class 1 will remain
secured by a senior lien in all assets and properties of
the reorganized debtor. No interest is currently being paid
to CIBC; therefore interest incurred through September 30,
1999 will accrue to the principal. After September 30, 1999
interest will be paid as set forth in the original
loan documents. Also beginning with the quarter starting on
October 1, 1999, Newstar shall make payments on the
principal equal to 100 percent of available funds. All
principal shall be due and payable on January 1, 2001.
Class 6 shall consist of allowed unsecured claims. Newstar
believes the claims to be approximately $11,300,000. The
Class 6 claimants will each receive a promissory note. Each
claimant shall receive quarterly payments on its note equal
to its pro rata share of 100 percent of adjusted available
funds. Said payments will commence in the second quarter
following the final payment to the Class 1 claimants and
will continue until paid in full. Class 7 shall consist of
the unsecured claims of Monroe Bank & Trust and other
unsecured holders of notes. Newstar believes the claims to
be approximately $4,200,000. Class 7 claimants will receive
their pro rata share of 70 percent of the stock of Newstar
Resources Inc. The stock will be subject to redemption
covenants of 70 percent of the aggregate claim." (ABI 30-

ONE PRICE: Files Annual Report
ONE PRICE CLOTHING STORES INC operates a chain of 618 off-
price  retail women's and children's  specialty  stores  
offering a wide variety of first quality, contemporary,  
in-season apparel and accessories.

Net sales in fiscal 1998 increased 8.5% to $328.1 million  
compared to $302.3 million in fiscal 1997 and the company
reports net income of $4.383 million for the year compared
to a loss of $11 million one year ago.  In fiscal 1998, the
Company achieved an increase in net sales while operating
an average of 27 fewer  stores than in fiscal  1997.  The
increase in net sales  is  primarily  due to merchandising  
and  presentation strategies   implemented  during  the  
fourth  quarter  of  fiscal  1997. In fiscal 1998,
comparable store sales  increased  9.1% for the year  
compared to fiscal 1997.

PARAGON TRADE: Manufacturing Operations Will Cease
Paragon Trade Brands, Inc. (NYSE: PTB) announced that the
Company's Canadian subsidiary, Paragon Trade Brands  
(Canada) Inc., will cease manufacturing infant disposable
diapers at its Brampton, Ontario facility and anticipates
taking a charge to earnings in the second quarter of 1999
in connection with costs related to this action. The  
Brampton plant currently employs approximately 113 people.  
The facility will curtail manufacturing operations over the
next few weeks while Paragon transitions servicing its
Canadian customers to its Harmony, Pennsylvania  
facility. Thereafter, the Brampton facility will operate as
a warehouse and distribution facility to continue to
deliver outstanding service to its Canadian customers.

Commenting on the cessation of manufacturing operations at
the Brampton plant, Chairman and Chief Executive Officer,
Bobby Abraham, said, "As a result of our continuing
investments in the business, we have increased our
productivity and capacity across our North American
manufacturing system. With this added capacity, it is now
more economical for Paragon to service our Canadian  
customers from our facility in Harmony, Pennsylvania.  
While our Brampton operation has been a high quality,
efficient operation, it lacks economic scale and is
logistically disadvantaged to support our U.S. customers.  
The decision to cease manufacturing operations at Brampton
is part of the Company's ongoing efforts to improve
efficiency and reduce costs in our North American infant  
disposable diaper business.  We sincerely regret the impact
of this action on our highly skilled and committed Canadian
associates. The Company will make every effort to offer
them opportunities in our U.S. operations."

PITTSBURGH PENGUINS: Lemieux To Present Updated Plan
Mario Lemieux will submit an updated reorganization plan in
court today after taking part in a number of meetings this
week with key figures in the Pittsburgh Penguins'
bankruptcy case, according to news reports. Under the new
proposal, Lemieux will drop his $32 million lawsuit against
team co-owner Roger Marino, who, in exchange, will walk
away from the team, leaving behind the $5 million he
provided in post-petition financing. In addition,
Marino will assume the team's debt of $1.7 million to the
National Hockey League and will not be held liable for the
$6 million he took from the team in November 1997, when the
team was refinanced. Lemieux and Marino had been in talks
this week and arrived at the above agreements. Lemieux's
plan to drop the $6 million claim against Marino will leave
the unsecured creditors with a $12 million lawsuit against
the team's other owners, who had taken a total of
$12 million from the team. On Thursday Lemieux met with
representatives of SMG, the Pittsburgh Civic Arena
landlord, to discuss the Penguins' lease, which is worth $6
million to $7 million annually. The lease expires in 2007.
Lemieux's plan calls for a reduction in the lease to
$500,000 per year. (ABI 30-Apr-99)

The Rocky Mountain News reports on April 29, 1999 that                       
Hughes Electronics Corp.'s DirecTV finished buying most of
Primestar on Wednesday for $1.36 billion, and the merged
company plans to keep most of its Denver employees in the

The merger of the nation's two biggest satellite TV
companies was threatened when Primestar bondholders balked.
But Arapahoe County- based Primestar agreed to raise its
payout to creditors to about 97.5 cents on the dollar from
the 67  cents originally offered, allowing the deal to
close on time.

"We're getting a terrific syscriber base and more
importantly, a terrific set of employees who work for
Primestar primarily in the Denver area," DirecTV  
President Eddie Hartenstein said.

Primestar's roughly 2.3 million subscribers will continue
to receive their medium power satellite TV service until
they are transferred. "In as quick a fashion as we're
logistically able to do it, we'll bring them on to the
DirecTV platform which offers considerably more choices,"
he said.

With DirecTV's 4.8 million customers, the combined service
will reach more than 7 million homes, making it one of the
top four pay- television services in the nation, behind
only the top cable operators.

Nearly all the 800 employees who work for Primestar
headquarters in metro Denver will remain here, Hartenstein
said. DirecTV, headquartered in Southern California, will
also keep its main satellite uplink center near Castle
Rock, where about 200 people work. The deal was in question
because Primestar debtors were unhappy with the terms.

"This is a terrific result for everyone involved," said
Mitchell Harwood, a money manager with P. Schoenfeld Asset
Management and head of the creditor subcommittees.  "If the
deal fell apart, Primestar might have gone into bankruptcy.
And if it wasn't done on time, Hughes might have walked

Primestar, owned by the nation's largest cable companies,
ran into trouble when the Justice Department fought its
plan to buy high- powered satellite assets to become a more
formidable player. Government regulators warned that  
cable interests would gain too much power over programs.

Primestar bondholders were unhappy that the controlling
cable companies took $460 million out of the company last
year and were being relieved of their liability for a $575
million Primestar credit line. In addition, Littleton-based
EchoStar Communications Corp., the surviving competitor to
DirecTV, bought Primestar bonds on the open market and now
holds  more than 10 percent of the company. DirecTV was
prohibited under the terms of its deal from soliciting
Primestar employees to switch service until the closing.

While DirecTV closed on the purchase of Primestar's medium
power business, it has not finished buying the related
Tempo high-power satellite assets. DirecTV bought the Tempo
1 satellite, but acquisition of the Tempo 2 satellite  
and frequencies at a prized orbital slot must still win
approval from the Federal Communications Commission.
DirecTV is paying another $500 million for those.

In a separate transaction, DirecTV said it reached an
agreement with Tele-Communications Inc. to acquire a
Primestar customer call center in Boise, Idaho, which
employs about 1,100.

SALANT CORP: Salant and Supreme Reach Agreement
Salant Corporation, together with Supreme International
Corporation (Nasdaq: SUPI), announced that in connection
with the confirmation of Salant's Chapter 11 Plan of
Reorganization, Salant and Supreme had reached an agreement
designed to lay the foundation for their ongoing
partnership to enhance the value of the Perry Ellis brand.  
Salant is a licensee of Perry Ellis International, a wholly  
owned subsidiary of Supreme.

Michael Setola, Salant's Chairman and Chief Executive
Officer, stated, "We are extremely excited about working
with Supreme to maintain the Perry Ellis brand at the
forefront of men's apparel.  Consummation of our chapter 11
plan will allow us to focus all of our efforts on building
our Perry Ellis men's apparel  business."

George Feldenkries, Supreme's Chairman and Chief Executive
Officer, stated, "We are confident that the reorganized,
deleveraged Salant will be a strong and exciting partner
for Perry Ellis International. Supreme and Perry Ellis look  
forward to working with Salant and its entire management
team to build and grow the Perry Ellis men's apparel

As previously announced, the Bankruptcy Court confirmed
Salant's Chapter 11 Plan of Reorganization on April 16,
1999.  Salant expects to emerge from bankruptcy by the end
of April.

SOLO SERVE: Completes Liquidation of Inventory
On April 26, 1999, the Company reported that it had
completed liquidation of all of its inventory and that it
had sold certain of its leases.  Those leases not sold or
assigned have been rejected in accordance with
applicable provisions of the United States Bankruptcy Code.
The Company's only assets remaining unsold consist of
office equipment, furniture and computers; warehouse
equipment and fixtures; store fixtures; and other
miscellaneous assets. These remaining items will be sold at
auction at the Company's headquarters on Wednesday and
Thursday, April 29 and 30th, 1999, beginning at
10:00 a.m. each day. The Company's headquarters are located
at 1610 Cornerway Boulevard, San Antonio. The Company's
headquarters will be open Tuesday, April 27, 1999 beginning
at 10:00 a.m. to permit interested bidders to preview the
items to be sold. For more information regarding the
auction, interested parties may contact Pat of Investment
Recovery Group at (210) 662-6262, ext. 200.

The Company also announced that the Bankruptcy Court
entered an order on April 26, 1999 granting the Company's
Motion to Terminate Registration of Securities.

The Company is presently engaged in resolving disputed
claims in the Bankruptcy Court, a process which is expected
to take at least sixty to ninety days. After resolution of
disputed claims and after payment of administrative
claims and other priority claims, the Company intends to
distribute any remaining funds to unsecured creditors. No
assurance can presently be given as to the timing or amount
of distributions, if any, to unsecured creditors. The
interests of holders of the Company's common and preferred
stock will be afforded no value in connection with the
liquidation of the Company's assets.

STARMET: Special Meeting of Stockholders - May 10
A special Meeting of the Stockholders of Starmet
Corporation, a Massachusetts corporation, will be held on
May 10, 1999 at 10:00 a.m. at State Street Bank and Trust
Company, 225 Franklin Street, Boston, Massachusetts for the
following purposes:

1. To elect Board of Directors for the ensuing year.

2. To consider and act upon a proposal to increase the
number of shares of Common Stock available for grant under
the Company's 1998 Stock Plan from 300,000 to 500,000.

3. To consider and act upon a proposal to ratify the
selection of the firm of Arthur Andersen LLP as independent
auditors for the Company for the fiscal year ending
September 30, 1999.

SUN HEALTHCARE: Still No Plans For Bankruptcy
The Albuquerque Journal reports on April 28, 1999 that Sun
Healthcare Group insists it has no plans to file for
bankruptcy protection but acknowledged in recent filings
with federal regulators that such a move is possible.

Sun's 1998 annual report, filed with the Securities and
Exchange Commission Friday, paints a bleaker picture than
the nursing home company's earlier statements. But Sun
executives and analysts say that's because an annual report
filed with the SEC has to cover all possibilities, even the
most unlikely ones.

Executives at Sun's Albuquerque headquarters blame the
company's problems including a loss of $761.7 million, or
$13.34 a share, in the fourth quarter of 1998  on a cutback
in Medicare payments. Effective Jan. 1 for most of Sun's  
nursing homes, reimbursements are capped based on the
number of Medicare patients a home has. Sun has said it
expects its inpatient Medicare revenue to drop by $200
million this year as a result.

Sun has cut 10,000 jobs, leaving about 80,000 employees
worldwide, 60,000 of them in the United States. The company
is also negotiating to sell some assets,  including its
assisted-living subsidiary, Sun Bridge. Assisted living
homes  provide a less intensive level of care than nursing

Sun's problems have knocked the company out of compliance
with the terms of some major loans, giving creditors, led
by Bank of America, the right to call in some $745.6
million in outstanding loans.  The report says, "If the
company is unable to generate sufficient cash flow from its
operations or successfully renegotiate (the loan terms), it
would  explore a variety of other options, including but
not limited to other sources  of financing, additional
asset dispositions, or relief under the United States  
Bankruptcy code."

When Sun announced its fourth-quarter loss April 9, company
executives said the company would absolutely not file for
bankruptcy. Gilliland said that's still the case, despite
the wording in the report.  Since the start of 1998, Sun
stock has fallen from about $20 to 1 9/16 when markets
closed Tuesday. By the time it dipped below $1 in late
March, two of the company's biggest shareholders had bailed
out.  On April 19, a Texan named Peter C. Kern filed
documents with the SEC saying he had bought more than 3.5
million shares. The filing says the shares "were  
not acquired and are not held for the purpose of or with
the effect of changing or influencing the control of the
issuer of the securities."

TOROTEL: Sells Substantially All Assets
On April 19, 1999, Torotel, Inc. sold substantially all of
the assets of its wholly owned subsidiary, OPT Industries,
Inc., to an investor group led by Peter B. Caloyeras, for
approximately $2.7 million.

The assets sold included the land, buildings, equipment,
inventories, order backlog and intellectual property, such
as company name, patents, and product designs.  The
Caloyeras investor group presently controls and operates
other companies in the magnetic component and power
conversion field.  The OPT products will continue to be
manufactured by the Caloyeras Group of companies, including
facilities in New Jersey and California.

Mr. Caloyeras is the beneficial owner, as defined in Rule
13d-3(a) under the Securities Exchange Act of 1934, of
198,900 shares of Torotel Common Stock.  Mr. Caloyeras also
served as Torotels Chief Executive Officer for a short time
in February and March, 1999, until such time the
contemplated merger with Electronika, Inc. was terminated.

The proceeds from the asset sale were used to pay most of
Torotels bank borrowings with Phillipsburg National Bank &
Trust Company.  With the sale completed, Torotel is no
longer in default with the bank.

TRI-LITE: Annual Report
As a result of the Chapter 11 filing in February 1996, Tri-
Lite, Inc. discontinued and liquidated all of its
operations, except for SPL. The Company operated with
uncertainty in its two business segments in 1998 brought
about by the Chapter 11 proceeding of Helionetics, Inc., a
co-proponent of the Company's plan of reorganization. The
Helionetics liquidating plan together with the settlement
agreement between the parties was approved by the
U.S. Bankruptcy Court on December 23, 1998 and had the
effect of lifting the uncertainties surrounding the
Company's ability to operate.

Working capital was a deficit in 1998, 1997, and 1996, of
$762,500, $1,231,800, and $1,433,600, respectively.  The
company reports revenue of $ 4,450,000 for 1998. SPL's
revenues for 1998 and 1997 amounted to $3,630,000 and
$3,318,000, respectively. The combined cost of sales in
1998 was 46% compared with 67% in 1997.

TRISM INC: Annual Meeting of Stockholders
The 1999 Annual Meeting of Stockholders of TRISM, INC., a
Delaware corporation will be held on Tuesday, June 15, 1999
at 10:00 a.m. eastern daylight time at the offices of
Proskauer Rose LLP, 26th floor, conference rooms A and B,
1585 Broadway (47th - 48th Street), New York, NY 10036-8299
for the following purposes:

1.   To elect six Directors to serve until the next Annual
Meeting of Stockholders or until their successors have been
elected and qualified;

2.   To ratify the selection of PricewaterhouseCoopers LLP
as independent accountants of the Company for the fiscal
year ending December 31, 1999.


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-
published by Bankruptcy Creditors' Service, Inc.,
Princeton, NJ, and Beard Group, Inc., Washington, DC.  
Debra Brennan and Lexy Mueller, Editors. Copyright 1999.  
All rights reserved.  ISSN 1520-9474.  

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