TCR_Public/990614.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, June 14, 1999, Vol. 3, No. 113

                    Headlines

AMPACE CORP: Seeks Authority to Hire KPMG LLP as Tax Consultant
ATLAS CORP: Court To Rule On Transfer Of Utah Millsite
AUGMENT SYSTEMS: CFO Left To Dismantle Company
BENNETT FUNDING: Bennett Found Guilty on 42 Counts
BRUNO'S: Seeks To Reject Leases

CALDOR: Trustee Appoints Wind-Down Committee
CAJUN ELECTRIC: Buyout On Hold; PSC Requests More Information
CELLPRO: Announces Distribution of Funds Pursuant to Plan
CHERRYDALE FARMS: Seeks To Modify Retention of Miller Associates
CONSUMER PORTFOLIO: Beneficial Ownership Passes To Partnership

FORCENERGY: Order Authorizes Arthur Andersen LLP
FWT,INC: Committee Taps Counsel
GDE: Creditors To Propose Alternate Plan
HECHINGER: Kmart Comments on Bankruptcy Filing
HECHINGER CO: Seeks to Restructure Under Chapter 11

HOME HEALTH CORP: Taps Blank Rome Comisky as Special Counsel
INTERNATIONAL TESTING: Committee Objects To Disclosure Statement
KOREA LIFE: Receives Eight Bids
LAURIAT'S BOOKS: Going Out of Business
LOEWEN: Director Thomas Taylor Resigns

MEDIQ INC: Acquisitions Strain Working Capital, Income Down
MEDPARTNERS: Local Physicians Purchase Talbert Medical Group
PARAGON: Proposed $100M Investment From Wellspring
PARAGON: To Seek Approval on Bidding Procedures
PETSEC ENERGY: Chairman Addresses Annual Meeting/Optimistic

QUALITECH STEEL: Stipulated Order Reducing Exclusivity Period
RICHFOOD HOLDINGS: Sold For $1.5 Billion To Supervalu
SOWA BANK: Asks To Be Declared Insolvent
TEXFI INDUSTRIES: Sale Of Stock Completed In May
VOICE IT WORLDWIDE: Hearing on Adequacy of Disclosure Statement

WHITE ROSE: Sales Growing in 1999 Fiscal Third Quarter
WILSHIRE FINANCIAL: Emerges From Bankruptcy
WIRELESS ONE: Announces eCommerce Partnership With Netgateway
WIRELESS ONE: Seeks More Time To File Schedules and Statements

                    *********

AMPACE CORP: Seeks Authority to Hire KPMG LLP as Tax Consultant
---------------------------------------------------------------
The debtors, Ampace Corporation and Ampace Freightlines, Inc
Seek court authority to employ and retain KMPG LLP as tax
consultant for the debtors.  

KPMG would perform tax preparation, compliance and consulting
services that are necessary during these cases.  The firm's
current hourly rates range from $175 for managers to $125 for
staff.


ATLAS CORP: Court To Rule On Transfer Of Utah Millsite
------------------------------------------------------
Atlas Corporation, having filed for Chapter 11 bankruptcy
protection on September 22, 1998, in the U.S. Bankruptcy Court
for the District of Colorado, is operating as a debtor-in-
possession.  The company's first quarter 1999 financial
statements show a net loss for that period of
$705,000 on revenues of $760,000.  During the same quarter in
1998 its loss was $305,000 on revenues of $1,136,000.

Two of Atlas' subsidiaries, Atlas Precious Metals Inc. and Atlas
Gold Mining Inc., subsequently filed bankruptcy under Chapter 11
on January 26, 1999.  The company says its remaining two
subsidiaries, Arisur Inc. and Suramco Metals Inc. have no
intention of similarly filing for bankruptcy protection.

Nevertheless, on May 9, 1999, Arisur defaulted on a loan payment
of $478,000, due under its loan agreement with Corporacion Andina
de Fomento.  The company has met with representatives of CAF and
has negotiated a deferral of the principal portion of the payment
($383,000) while CAF reviews the company's development plans for
the Andacaba mine and considers restructuring of the loan to
finance the development program.  The outstanding balance of the
loan at March 31, 1999 was $1,917,000.

On April 28, 1999, Atlas Corp, along with the U.S. Nuclear
Regulatory Commission, the State of Utah, ACSTAR (surety provider
for Atlas) and others, executed the Moab Utah Millsite Transfer
Agreement, which absolves Atlas from all future liability with
respect to the Millsite. The agreement was reached to avoid
lengthy and expensive litigation over the future of
the Millsite. The agreement remains subject to approval by the
Bankruptcy Court. As consideration for this release, Atlas has
agreed to contribute certain Millsite related assets to a Trust
to be controlled by the government. The assets include the
remaining Title X receivable as of May 1, 1999, all future Title
X receivables, Atlas' water rights related to the Millsite, the
land at the Millsite and $5,250,000 of restricted cash.
Elimination of the liability should coincide with confirmation of
Atlas' plan of reorganization, possibly by late summer.


AUGMENT SYSTEMS: CFO Left To Dismantle Company
----------------------------------------------
On January 15, 1999, the Board of Directors of Augment Systems
Inc. elected to discontinue all ongoing operations, layoff all
but one of its employees, seek buyers for its technology and
inventory and look for a merger partner. The company has ceased
sales, marketing and distribution of its products.  On March 31,
1999, two of the remaining three members of the Board of
Directors resigned to pursue other interests.

As of May 15, 1999, the company's Chief Financial Officer,  and
only active board member, was engaged in the disposition of
assets, settlement of outstanding debts, sale of the company's
technology, and exploration of potential mergers.

The company began moving its operation and disposing of assets  
during the first  quarter.  During the first quarter a
substantial portion of the outstanding debts were settled.  The
company delayed filing first quarter financial statements as it
has been evaluating the accounting treatment relating to the
dispositon of assets and debts.


BENNETT FUNDING: Bennett Found Guilty on 42 Counts
--------------------------------------------------
Yesterday a federal jury convicted Patrick Bennett, former CFO of
Bennett Funding Group, on 42 counts of money-laundering and other
crimes and determined that he should forfeit $109 million,
according to a newswire report. Bennett now faces 20 years in
prison under federal sentencing guidelines; federal prosecutors
said they may seek an even longer sentence with additional fines
and restitution penalties. A mistrial was declared on 11
remaining counts against Bennett, but prosecutors still consider
the verdict a victory. According to prosecutors, Bennett
turned his family's equipment leasing business into the largest
Ponzi scheme in U.S. history, defrauding investors, mostly senior
citizens, of $700 million. Bennett Funding filed chapter 11 in
1996 after the Securities & Exchange Commission filed lawsuits
against the company. Former SEC Chairman Richard Breeden is the
court-appointed trustee who is trying to recover money for
investors. Bennett burst into tears upon hearing the verdict, and
the judge, who called Bennett "a totally amoral individual," sent
him immediately to prison, stating that "If he were out [on bail]
he would look for some scheme to get whatever money he needed
without any concern to his impact on others." Bennett's attorneys
will seek to have the verdict thrown out, and prosecutors have
not yet determined whether they'll seek a retrial on the 11
remaining counts. (ABI 11-June-99)


BRUNO'S: Seeks To Reject Leases
-------------------------------
The Debtors have asked for authority to reject an unexpired lease
of nonresidential real property, dated January 23, 1985, between
Bruno's, as tenant, and IRT Property Company, as lessor.  The
lease relates to a Food World supermarket formerly operated by
the Debtors in Fort Walton, Florida.  The store is one of the
fourteen properties that the Debtors determined, in January 1999,
was underperforming.  The Debtors have liquidated the inventory
in the Fort Walton store.

The Debtors inform the Court that the lease is not marketable due
to the recent construction of an Albertson's supermarket directly
in front of their store.  The Debtors suggest that the rejection
of the lease be effective the date they remove their equipment
and surrender the premises.

The Debtors have also asked the Court to approve their rejection
of an unexpired sublease of nonresidential property, dated July
7, 1978, between Bruno's, as sublessee, and Benson Wholesale
Company, as sublessor.  The sublease was for the Debtors Food
World supermarket, operated by the Debtors in Gulf Breeze,
Florida.

The Gulf Breeze was one of fourteen underperforming or marginally
performing stores that the Debtors determined, in January 1999,
should be closed immediately.  The Debtors have successfully
liquidated the inventory and closed this store.  

The Debtors attempted to market the sublease to other grocery
store chain since it closed this store.  They were unsuccessful
and no offers were made.   Believing the "financial exposure
represented by the Sublease should be limited as soon as
practicable," the Debtors ask that the rejection of the sublease
"be effective as of the date the Debtors remove their equipment
located within the store and surrender the premises to the
sublessor." (Bruno's Bankruptcy News Issue 20;Bankruptcy
Creditors' Service Inc. Phone 609-392-0900 FAX 609-392-0040)


CALDOR: Trustee Appoints Wind-Down Committee
--------------------------------------------
The United States Trustee has filed her Appointment Of The Wind-
Down Oversight Committee.  The following post-petition
administrative creditors of the Debtors, being among the largest
creditors that are representative of certain of the kinds of
claims against the Debtors, are willing to serve and are
therefore appointed to the Wind-Down Oversight
Committee.  

     1. Mattel Toys
        333 Continental Blvd.
        El Segundo, CA 90245-5012
        Attn: Mr. Lee Castillo
        (310) 252-2000

     2. American Credit Indemnity
        100 East Pratt Street
        Baltimore, MD 21202-1008
        Attn: Kevin P. McCann, Esq.
        (410) 445-0727

     3. Springs Industries Inc.
        P.O. Box 111
        Lancaster, SC 29721-0111
        Attn: Mr. Will Bartelmo.

     4. Ambassador Cards, a division of Hallmark Cards, Inc.
        P.O. Box 419535
        Kansas City, MO 64141
        Attn: Mr. Doug Alderman

     5. Sharp Electronics Inc.
        Sharp Plaza
        P.O. Box 650
        Mahwah, NJ 07430-2135
        Attn: Mr. Ron Papke
        (201) 529-8516

     6. United Food & Commercial Workers Union (UFCWU)
        c/o Butsavage & Associates
        1800 M Street, N.W.
        Washington, DC 20036
        Attn: Carey Butsavage, Esq.
        (202) 861-9700

     7. The Procter & Gamble Distributing Company
        P.O. Box 112
        Cincinnati, Ohio 45201-0112
        Attn: Mr. Richard T. Rehn
        (513) 945-8316

The Court approved the Trustee's appointment and authorized the
Wind-Down Committee, without further application to or order of
the Court, to retain the professionals previously retained by the
Committee, nunc pro tunc to April 30, 1999.  The Court also
permitted the Trustee to solicit interest among representative
categories of administrative creditors on proposed
additions to and/or deletions from the Wind-Down Committee.  The
Trustee is to meet with the Debtors, counsel to the Former
Secured Lenders, and counsel to the Wind-Down Committee on the
proposed additions to and/or deletions. No modifications of the
Wind-Down Committee, however, will be permitted prior to the
Conference. (Caldor Bankruptcy News Issue 35; Bankruptcy
Creditors' Service Inc. Phone 609-392-0900 FAX 609-392-0040)


CAJUN ELECTRIC: Buyout On Hold; PSC Requests More Information
-------------------------------------------------------------
The Advocate Baton Rouge LA reports on June 10, 1999 that    
Louisiana's utility regulators decided Wednesday they don't have
enough information to take a position on a proposal for an energy
consortium to buy Cajun Electric Power Corp. out of bankruptcy.

The Public Service Commission narrowly voted to put a hold on its  
consideration of a mediator's proposal that Louisiana Generating
LLC be allowed to buy Cajun's assets for $975 million.

As part of his proposal, mediator Steven Felsenthal suggested
last week that Southwestern Electric Power Co., the other bidder
on Cajun Electric's non-nuclear properties, pay $15 million of
the purchase price and be given a chance to sell power to the
state's rural electric cooperatives.

Felsenthal has indicated his proposal could cut $25 million a
year from the bills of customers of rural cooperatives that buy
wholesale power from Cajun Electric.

People and companies with an interest in the Cajun Electric
bankruptcy paraded before the PSC to support the idea of pushing
for an end to the bankruptcy case, which has been in court since
1994.

But representatives of rural cooperatives and SWEPCO said they
are confused about some details Felsenthal suggested. SWEPCO
President Michael Madison said he's not clear on what his company  
would get for the $15 million Felsenthal wants SWEPCO to pay in
the Cajun Electric buyout because Louisiana Generating would end
up with all of Cajun's non-nuclear assets.

PSC special counsel Michael Fontham urged the commission to be
cautious. Fontham said he fears the PSC could give up it rate-
making authority over Cajun Electric's successor if the
commission simply signed off on the mediator's recommendation.

The commission was divided on what to do with the mediator's
proposal. PSC member Don Owen of Shreveport said the commission
should not take a stand on the proposed deal until all the
details are filled in. "I'd be very concerned if our voting to
approve this settlement, as it presently stands, would forego our
authority in the future to oversee these rates," Owen said.

PSC member Jimmy Field of Baton Rouge echoed Owen.

"There are some questions and issues that need to be settled,"
Field said. PSC Chairman Dale Sittig of Eunice disagreed. He said
consumers of Cajun Electric power won't get a rate reduction
until the bankruptcy is settled.

"The proposal is not what everyone wanted," Sittig said. "But I
bet that if there are 20 or so parties out there that would have
had the chance to write a proposal, I bet ... that we'd have 20
different proposals."  Commissioner Irma Dixon of New Orleans
voted with Owen and Field to delay any action on the Cajun
Electric sale plan. Commissioners Sittig and Jay Blossman of
Covington voted against Owen.

The PSC instructed Fontham to send a letter to the mediator
saying the commission is encouraged by the proposal but has some
concerns. Fontham said he would make these points in his letter:  
The PSC will not endorse the proposal until all other parties
agree to it. The PSC has final regulatory approval of any rate
changes. The PSC would dismiss any rate cases pending with Cajun
Electric only after the bankruptcy case is finally settled.

The PSC wants money in a trust fund to guard against higher rates
to be available to any of the affected rural cooperatives.
Although the PSC has authority to approve or reject the
bankruptcy settlement, other interests have a voice in the case.


CELLPRO: Announces Distribution of Funds Pursuant to Plan
---------------------------------------------------------
CellPro, Incorporated (OTC BB:CPRO) announced that pursuant to
its Second Amended Plan of Reorganization dated as of May 10,
1999, and approved by the United States Bankruptcy Court for the
Western District of Washington on May 21, 1999, it intends to
make a distribution of funds on June 18, 1999. Pursuant to the
Plan, the distribution will pay all creditors the full amount of
their allowed claim. In addition, a distribution will be made to
shareholders of record as of May 21, 1999. The company also
announced that it has changed its name to CPX Corp. The company's
common stock will continue to trade on the NASDAQ Bulletin Board
under the symbol "CPRO." "We are pleased with the efficient
administration and outcome of the bankruptcy proceedings, and
look forward to a smooth transition of control to Steel Partners,
an investment firm headed by New York financier Warren
Lichtenstein," said Mark Handfelt, executive vice president of
CellPro.
  

CHERRYDALE FARMS: Seeks To Modify Retention of Miller Associates
----------------------------------------------------------------
The debtor, Cherrydale Farms, Inc. et al. seeks to modify the
order authorizing the retention of Miller Associates Inc.

The debtors seek to retain MAI as their management consultants
for the purpose of winding up the debtors' affairs and assisting
with claims and avoidance litigation and such other services
necessary to wind up the debtors' affairs.


CONSUMER PORTFOLIO: Beneficial Ownership Passes To Partnership
--------------------------------------------------------------
Consumer Portfolio Services, Inc. reports beneficial ownership,
by virtue of exercise of warrants held, now rests at 22.1% in
each of the named persons or entities: Arthur E. Levine, Lauren
B. Leichtman, Levine Leichtman Capital Partners, Inc., LLCP
California Equity Partners II, L.P., and Levine Leichtman Capital
Partners II, L.P.  Each party named has beneficial ownership of
4,450,000 shares of common stock in the company.

The parties above constitute a limited partnership formed under
the laws of the State of California. The principal business of
the partnership is to seek out opportunities to invest in the
securities of middle market companies and to acquire, hold,
manage and dispose of such securities in connection with growth
financings, restructurings, recapitalizations, mergers,
acquisitions and buyouts.  The partnership exercised the April
1999 warrant for investment purposes and to obtain the voting
rights associated with ownership of shares of common stock.


FORCENERGY: Order Authorizes Arthur Andersen LLP
------------------------------------------------
The US Bankruptcy Court for the Eastern District of Louisiana
seeks an order authorizing employment and retention of Arthur
Andersen LLP as accounting consultants and financial advisors for
Forcenergy Inc. and Forcenergy Resources Inc.


FWT,INC: Committee Taps Counsel
-------------------------------
The Official Unsecured Creditors Committee of the debtor, FWT,
Inc., seeks to retain the law firm of Cantey & Hanger, LLP.  The
firm will advise the Committee with respect to the debtor's
rights, powers and duties as a debtor continuing to operate and
manage its businesses and properties; advise the Committee
concerning, and assisting in the negotiation and documentation of
agreements, debt restructurings, and related transactions;
Monitor transactions proposed by the debtor; review the nature
and validity of liens; advise the Committee concerning the
actions that it might take to collect and recover property for
the benefit of the estate; prepare all applications, motions,
pleadings, notices; and advise the Committee with respect to a
plan of reorganization.


GDE: Creditors To Propose Alternate Plan
----------------------------------------
The South China Morning Post reports on June 11, 1999 that    
creditors of insolvent Guangdong Enterprises (Holdings) (GDE) are
to meet their steering committee representatives on Tuesday to
decide on the basis of a  counter-proposal to the company's
bailout package.

The committee was expected to brief more than 80 creditor banks
on the latest developments and exchange views on the preparation
of the counter-proposal, a creditor bank official said.

The panel would then work on the plan for the next two weeks
before presenting it to creditors for endorsement at a meeting
scheduled for June 30.

Creditors voiced opposition when GDE unveiled its plan last month
to restructure US$5.59 billion in debt as it involved an
effective haircut in loan principals. Various estimates put the
cut at between 27 and 65 per cent.

GDE's financial adviser Goldman Sachs told creditors that GDE's
owner, the Guangdong provincial government, would continue to pay
interest on GDE's debts until June 30. The payments would
continue to the end of August if talks on the restructuring
proceeded in good faith. Creditors have been given until August
20 to endorse the restructuring plan with the provincial
government and its advisers.


HECHINGER: Kmart Comments on Bankruptcy Filing
----------------------------------------------
Kmart Corporation (NYSE: KM) announced that, as a consequence of
the Hechinger Company's filing for reorganization today, Kmart
will take a non-cash discontinued operations charge in the second
quarter of approximately $230 million net of tax.

The charge reflects the probability that, as a result of
Hechinger's bankruptcy proceedings, up to 115 former Builders
Square locations currently operated by Hechinger may become the
responsibility of Kmart in the near term.  The Builders Square
operations were sold in September 1997 to an entity formed by
Leonard Green and Partners and were subsequently combined with
the operations of Hechinger Company.  At the time of the sale, a
subsidiary of Kmart also subleased to Hechinger certain former
Builders Square locations, whose leases had been guaranteed by
Kmart since their inception.

"While the precise outcome of the legal process remains to be
seen, Kmart believes that, in light of the Hechinger's filing, it
is appropriate to take the charge at this time," said Floyd Hall,
Chairman, President and CEO of Kmart.  "Considering current
market conditions, we anticipate that Kmart will be able to
convert or sublease most, if not all, of these properties within
a reasonable period after they are returned.  Fortunately, the
cash outflows required by these leases should have no meaningful
effect on the company's ongoing strategy or operations."

   
HECHINGER CO: Seeks to Restructure Under Chapter 11
---------------------------------------------------
Hechinger Company today announced that it has filed a
voluntary petition under Chapter 11 of the U.S. Bankruptcy Code
in the United States Bankruptcy Court for the District of
Delaware. The Company said that it elected to seek court
protection in order to facilitate its efforts to develop and
implement an operational restructuring and financial
reorganization. As part of the Chapter 11 reorganization,
Hechinger will immediately commence the closing of approximately
89 under-performing stores in approximately 36 markets in an
effort to significantly reduce operating losses and focus the
Company's resources on a core of performing stores. Hechinger
said that it expects to operate its core stores in the
ordinary course of business. To ensure that the Company has the
short-term working capital necessary to operate its business, the
Company is refinancing its working capital facility through a
commitment for up to $700 million in debtor-in-possession ("DIP")
financing from BankBoston Retail Finance Inc. Hechinger said that
it would seek the Court's permission to access the DIP financing
to fund the normal business operations and other cash needs
during the bankruptcy proceeding.

Mark Adams, president and chief executive officer of Hechinger,
said the Company expects to continue to provide uninterrupted
service in its core operating locations and has requested, and
expects to receive, immediate Court approval to continue to pay
its employee salary, wages and benefits throughout the
reorganization process. In addition, the Company's DIP financing
will enable it to pay for the post-petition delivery of goods and
services in the ordinary course.

"Filing for Chapter 11 and closing these unprofitable locations
is the crucial first step in our efforts to re-make Hechinger,"
Adams said. "During the next few months, we will work with our
creditors and attempt to finalize a plan that allows us to
develop and implement a long-term business strategy that
will return the Company to financial and competitive health." The
Company said it will focus on a two-format strategy that features
a revitalized Home Quarters - which has proven highly successful
in its remodeled markets - in the large format category and a
refocused Hechinger, which will return to its historical roots as
a community-based store tailored to the needs of its immediate
customers. The Company intends to convert its remaining 16
Builders Square stores to the Home Quarters format. Adams said
the restructuring will allow the Company to focus its resources
on its core operations. As previously announced, the Company's
new management has made several organizational and operational
changes over the past 90 days to strengthen core store
performance functions, including distribution, management
information systems, customer service and merchandising.
  
The Company said the stores slated for closure were selected
based on a number of factors including strength of the Company's
competitive position in individual markets, growth prospects of
individual stores and store profitability. Following the
closures, Hechinger will operate approximately 117 stores in 21
states. "Our primary objective is to right-size the Company
so we can focus management and move forward with a solid core of
performing locations with an appropriate capital structure,"
Adams said.

"Repositioning the business in this manner will allow us to
reduce our working and other capital needs." As previously
announced, Hechinger has hired turnaround consultants Policano &
Manzo LLC to assist management with the Company's financial and
operational restructuring. As a result of its financial
situation, the Company does not meet the requirements for
continued listing on the Nasdaq SmallCap Market and expects to
have its 5 1/2 Convertible Subordinated Debentures formally
delisted shortly.
  

HOME HEALTH CORP: Taps Blank Rome Comisky as Special Counsel
------------------------------------------------------------
The debtors, Home Health Corporation of America Inc., et al. seek
to employ Blank Rome Comisky & McCauley LLP as special counsel to
the debtors.

The debtors seek to expand the firm's responsibilities as special
counsel so that the firm may provide the debtors with health care
regulatory and other corporate health care advice; and advice
with respect to structuring an employment retention and severance
program for key employees of the debtors; and provide counsel to
the Debtors' Board of Directors and senior management arising in
connection with Blank Rome's ongoing assistance to the Board and
the debtors at or in connection with meetings of the Board and
with senior management.  Jan Weinstock, a partner in Blank Rome's
health care department, will be assigned to handle all matters
relating to health care regulatory and related corporate advice.  
Her hourly rate is $290 per hour.


INTERNATIONAL TESTING: Committee Objects To Disclosure Statement
----------------------------------------------------------------
The Official Committee of Unsecured Creditors for International
Testing Services, Inc. submits its objection to the debtor's
Disclsoure statement.  The Committee elaborates on two
deficiencies.  First, the Disclosure statement identifies the
post-confirmation management of the Reorganized Debtor as the
same management that is presently in place.  NDIC and unsecured
creditors, who in combination will control a majority of the
Reorganized debtor's outstanding stock should select the Future
Board of Directors.  Second, although the Committee is given
standing to pursue Avoidance Actions, the plan re-vests in the
Reorganized Debtor other potentially valuable causes of action
against the debtor's present officers and directors.  These
claims should, according to the Committee, be transferred tot he
Committee for prosecution on behalf of unsecured creditors.  The
plan must provide the committee with a litigation fund to pursue
these claims.  Absent such a fund, the transfer of these claims
to the Committee is meaningless.


KOREA LIFE: Receives Eight Bids
-------------------------------
Journal of Commerce reports on June 10, 1999 that U.S. firms are
back in the chase as the protracted struggle to find a buyer  
for South Korea's insolvent Korea Life Insurance Co. moves to a
new phase. Eight bids for the insurer were received by the June 7
deadline, a spokesman for the government's Financial Supervisory
Commission said. The commission has tried three times to sell the
life insurance company, and says it will review these bids for
several days before making a decision. Among the bidders is Amco,
a consortium that includes Prudential and the U.S. property
management group Cushman & Wakefield.

Novecon Financial Ltd. of the United States has on its team an
unidentified foreign insurer and the investment management firm
of Tucker & Associates.  South Korea's Myungsung is bidding with
an unidentified Japanese life underwriter, another Japanese firm
and Labuan Offshore Financial Services Authority of Malaysia.
Labuan is being developed as an island financial center.

Shindongyang, a Korean auto parts company, teamed up with
International Technical Interchange Corp. of Japan. A group led
by Korea's Hanwha group includes Kyoei Life Insurance Co. of
Japan, Orix Life Insurance, Orix Corp., a leasing affiliate, and
International Finance Corp., the private investment unit
of the World Bank.

Regent Pacific Group, a Hong Kong unit of Britain's Regent
Pacific asset management firm, is joined by Regent Korea, Impala
Capital and the State of Wisconsin Investment Board. Other
shareholders in Regent include Tokyo Maritime Insurance Co. of
Japan and the John Templeton Foundation of Britain.

DMK-SPE, a Hong Kong financial house, is backed by Eastern Palace
Holdings Co. and Heritage Holdings Ltd.


LAURIAT'S BOOKS: Going Out of Business
--------------------------------------
Lauriat's Inc., a Canton, Mass.-based bookseller chain, announced
that it is going out of business, according to a newswire report.
The 71-year-old company, which filed chapter 11 last year, will
begin liquidation sales within the next few weeks and then shut
its doors. CFO Todd Miller said, "The bottom line is we were
unsuccessful in finding an equity sponsor to finance us
out of bankruptcy." Lauriat's tried to arrange $5 to $10 million
in equity financing, but without that financing, it was unable to
stock its shelves adequately, he said. Founded in 1872, the
company had stores under the names Lauriat's, Encore Books and
Book Corner in the Northeast and Mid-Atlantic states. (ABI 11-
June-99)


LOEWEN: Director Thomas Taylor Resigns
--------------------------------------
The Loewen Group Inc. (NYSE, TSE,ME:LWN) confirmed the
resignation of Thomas Taylor as a director of the Company. Mr.
Taylor, who was also a significant shareholder in the
Company, joined the Loewen Board in December of 1998.

Mr. Lacey added that candidates for the seat vacated by Mr.
Taylor will be discussed at this week's governance committee
meeting of the Board.


MEDIQ INC: Acquisitions Strain Working Capital, Income Down
-----------------------------------------------------------
Total revenues for Mediq Inc. increased in the second quarter of
fiscal 1999 by 20.8%, to $56,073,000 as opposed to $46,409,000 in
the same period last year.  Net income for the two quarters of
fiscal 1999 was $404,000, whereas that period in 1998 saw net
income of $3,429,000.

Net cash provided by operating activities in the six months ended
March 31, 1999 was $2.4 million compared to $14.7 million in the
six months ended March 31, 1998.  The company indicates this
variance was principally due to interest payments in the current
year exceeding those in the prior year because of substantially
greater amounts of indebtedness outstanding. Substantial amounts
of that interest stemmed from the interest due on the
company's acquisition loan and revolving credit facilities.

The company completed two acquisitions in the second quarter of
fiscal 1999 that are expected, by Mediq, to contribute combined
annual revenues of approximately $9.0 million, based on the most
recent annual revenues available for each acquisition.  The
company used its acquisition loan facility to fund $27.8 million
of acquisitions and its revolving credit facility to fund $4.8
million of acquisitions, certain purchases of equipment and
general corporate purposes. At March 31, 1999, borrowings
outstanding under the acquisition and revolving credit facilities
were $27.8 million and $18.5 million, respectively. At March 31,
1999, availability under the revolving credit facility was $17.7
million and $22.2 million under the acquisition loan facility.  


MEDPARTNERS: Local Physicians Purchase Talbert Medical Group
------------------------------------------------------------
Talbert Medical Group, Inc., announced today that it has agreed
to acquire certain assets of MedPartners, Inc. and its
affiliates, which comprise the medical practices and management
of Talbert Medical Group. As a result of the acquisition, the
Group's 120 physicians will manage all business activities
relating to direct patient care, making Talbert Medical
Group one of the largest independent physician-owned and operated
groups in California. The transaction remains subject to
customary closing conditions, including bankruptcy court approval
to the extent required.

Patients will continue to receive the same quality care and will
maintain their physician and hospital relationship. "Our goal is
to maintain the patient/physician relationship and this deal
ensures ongoing quality medical care with no disruptions to
Talbert Medical Group Members," said Keith Wilson, M.D.,
President of Talbert Medical Group. "Talbert Medical Group has a
long history of providing excellent quality health care to its
members and the community."

With health centers located in Southern Los Angeles and Orange
Counties, Talbert Medical Group will continue to provide patients
with uninterrupted care in conjunction with its hospital
partners; Orange Coast Memorial Medical Center, Anaheim Memorial
Medical Center, Long Beach Memorial Medical Center, and Lakewood
Regional Medical Center.

Talbert Medical Group, Inc. is a multi-specialty group providing
quality health care for more than 70,000 patients through nine
ambulatory health centers in Southern California.


PARAGON: Proposed $100M Investment From Wellspring
--------------------------------------------------
Paragon Trade Brands, Inc. (NYSE: PTB) announced that it will
file today a motion with the United States Bankruptcy Court for
the Northern District of Georgia, seeking approval of bidding
procedures, an expense reimbursement and a termination fee
relating to a proposed investment by Wellspring Capital
Management LLC, to acquire Paragon as part of a plan of
reorganization (the "Wellspring Proposal").  The bidding
procedures provide for the consideration of competing investment
proposals from other interested parties.

The Wellspring Proposal provides for a $100 million equity
investment in Paragon by Wellspring in return for 84.1% of the
new common stock of Paragon to be issued pursuant to a plan of
reorganization, subject to dilution and diminution as a result of
a rights offering for up to 24.1% of new common stock.  The
Wellspring Proposal also provides for reorganized
Paragon's issuance of approximately $200 million in senior
subordinated notes and Wellspring obtaining new third-party
working capital financing for reorganized Paragon in the amount
of at least $50 million.  Under the Wellspring Proposal, it is
estimated that there will be approximately $325 million in
distributable value in the form of cash, notes and 15.9% of new
common stock in Paragon as reorganized.  As of March 28, 1999,
liabilities subject to compromise totaled an estimated $407
million.

The Wellspring Proposal contemplates that substantially all of
Paragon's current senior management will continue with the
company, and is subject to the completion of satisfactory due
diligence, procurement of the working capital financing
commitment, definitive documentation, Bankruptcy Court approval
of the motion and the plan of reorganization and other
conditions precedent standard in a transaction of this nature.

The motion notes that the Wellspring Proposal is at this time a
suggested format for a chapter11 plan of reorganization that
would incorporate the Wellspring investment but that the
distribution provisions of such a plan remain subject to
negotiation.  The Wellspring Proposal provides that
Paragon may simultaneously prepare and file a stand-alone plan of
reorganization so that the plan process and Paragon's emergence
from chapter 11 are not delayed in the event that the Wellspring
Proposal is not consummated, or a higher or otherwise better
alternative transaction is not approved or accepted.
Paragon and Wellspring hope and expect that the bid procedures,
combined with active efforts to obtain higher and better third-
party offers, will lead to prompt negotiations among parties in
interest and the confirmation of a plan supported by most or all
of such parties.  Paragon's Creditors' Committee has indicated
that it supports the Bid Procedures but has not yet indicated
its support of the Wellspring Proposal.  Paragon intends to
discuss the Wellspring Proposal and the Bid Procedures with
Paragon's Equity Committee, The Procter & Gamble Company and
Kimberly-Clark Corporation over the next few weeks.

Commenting on the Wellspring Proposal, Bobby Abraham, Chief
Executive Officer of Paragon, stated, "Paragon has been working
diligently to develop a stand-alone plan.  Nevertheless, we
believe the infusion of new capital through the Wellspring
transaction constitutes a viable and prudent alternative to a
stand-alone plan and the bidding procedures for which we are
seeking approval have been designed to maximize recoveries on
behalf of Paragon's stakeholders.  Paragon has the ability to
pursue an alternative transaction should it determine that such
an alternative expedites its emergence from chapter 11 or
maximizes its distributable value in its chapter 11 case.  If it
decides to pursue an alternative, Paragon's only obligation to
Wellspring, should the Wellspring proposal become firm and
unconditional, is the payment of reasonable expenses and a
termination fee of $2 million."

Wellspring Capital Management LLC manages a private investment
partnership focused on investing in companies where it can create
substantial value by contributing management expertise,
innovative operating and financial strategies and capital.  The
partnership's capital is provided by investors who are among the
largest and most respected public and private pension funds,
corporations and financial institutions in the U.S. and Canada,
as well as from the principals of Wellspring.

Paragon Trade Brands is the leading manufacturer of store brand
infant disposable diapers in the United States and Canada.  
Paragon manufactures a line of premium and economy diapers,
training pants, feminine care and adult incontinence products,
which are distributed throughout the United States and Canada,
primarily through grocery and food stores, mass merchandisers,
warehouse clubs, toy stores and drug stores that market the
products under their own store brand names.  Paragon has also
established international joint ventures in Mexico, Argentina,
Brazil and China for the sale of infant disposable diapers and
other absorbent personal care products.


PARAGON: To Seek Approval on Bidding Procedures
------------------------------------------------
Paragon Trade Brands Inc., Norcross, Ga., announced today that it
will file a motion with the Bankruptcy Court for the Northern
District of Georgia, seeking approval of bidding procedures,
an expense reimbursement and a termination fee relating to a
proposed investment by Wellspring Capital Management to acquire
Paragon as part of a reorganization plan, according to a
newswire report. Wellspring's proposal provides for a $100
million equity investment in Paragon in return for 84.1 percent
of the new common stock of Paragon to be issued pursuant to a
reorganization plan. The proposal is subject to the bankruptcy
court's approval. The Wellspring proposal also provides that
Paragon may simultaneously prepare and file its own plan of
reorganization so that the plan process and the company's exit
from chapter 11 are not delayed in the event that the Wellspring
proposal is not consummated, or a higher or otherwise better
alternative transaction is not approved. (ABI 11-June-99)


PETSEC ENERGY: Chairman Addresses Annual Meeting/Optimistic
-----------------------------------------------------------
The Chairman of the Board of Petsec Energy Ltd., on the occasion
of the company's thirty-first annual meeting, May 26, 1999 told
the group that to the end of 1997 Petsec had, since it began
operations in the Gulf of Mexico in 1990, seven continuous years
of growth in reserves, production and cash flow.  Thirty-nine out
of forty-two wells had been brought in successfully
which accounted for this high level of growth.  Most of these
wells represented lower risk targets.  But with the general
industry success in the Gulf of Mexico and buoyant commodity
prices in 1997 an increase of competition was seen, accompanied
by lease bonus payments, and heightened drilling and development
costs. The increases were of such a magnitude as to significantly
erode the economics of the smaller, lower risk prospects.

The Chairman told the group that to maintain growth in 1998
Petsec modified its exploration strategy to include a number of
higher potential prospects, with attendant higher risk, in its
drilling program.  The company also sought to achieve growth
objectives by seeking a strategic alliance or merger with
companies of similar size to Petsec and larger. A good deal of
interest was generated in the company; unfortunately, due to the
extraordinary collapse of oil and gas asset values and share
prices of US exploration and production companies in the third
quarter of the year, expectations changed dramatically and the
process was prolonged.

Petsec's 1998 capital expenditure of US$125 million included
eight exploration wells. Five of these found oil and gas reserves
but generally were quite small. This expenditure, together with a
halving of the company's anticipated operating cashflow for the
year, resulting from the substantial decline in oil and gas
prices, gave rise to unacceptably high levels of bank debt
particularly in an environment of US$11 per barrel of
oil and US$1.80 per Mcf of gas.

In February Petsec sold a 50% working interest in 17 production
leases and six exploration leases to Apache Oil & Gas Inc. for
$111.7 million (US$68.3 million) thereby reducing its bank debt
to $14.3 million (US$9 million) and its overall debt to $170
million (US$109 million).

The company retained most of its one trillion cubic feet of gas
equivalent of exploration potential. There is a large inventory
of over 40 prospects on the 45 leases the company holds, and this
should form the basis of its future growth.

Continuing his address the Chairman said "We now intend to revert
to the more conservative exploration approach that was so
rewarding for the company in the years 1990-1997 and we will
further reduce our risk through farmout to joint venture
partners.......I hope to be able to announce further joint
venture deals in the near future but, as a minimum, we intend
to participate in 6-8 wells this year which will expose the
company to in excess of 60 billion cubic feet of gas equivalent
(Bcfe) net reserves potential."


QUALITECH STEEL: Stipulated Order Reducing Exclusivity Period
-------------------------------------------------------------
The debtors, Qualitech Steel Corporation and Qualitech Steel
Holdings Corp., together with Chase Venture Capital Associates,
LP, John Hancock Mutual Life Insurance Company, Newcourt
Commercial Finance Corporation and Textron Inc. stipulate that an
auction is presently scheduled for June 30, 1999.  A hearing to
approve the sale of the debtors' assets to the successful bidder
at the auction is scheduled for July 9, 1999 at 9:00 AM.  The
Committee, Chase, Newcourt, John Hancock and Textron all desire
to be able to present a plan of reorganization at the Sale
Hearing for consideration as an alternative to any proposed sale
and presently all such parties are involved in discussions with
potential plan funders.  Such negotiations will be aided and the
and of these cases perhaps expedited if exclusivity were lifted
with respect to those parties.

The Credit Agreement entered between the Banks and the Debtors
provides that it is an event of default thereunder if exclusivity
is lifted for any party and not for the Banks.


RICHFOOD HOLDINGS: Sold For $1.5 Billion To Supervalu
-----------------------------------------------------
The Virginian Pilot Ledger Star reports on June 10, 1999
that Richfood Holdings Co., the parent of Norfolk-based Farm
Fresh, is being acquired by Supervalu Inc., the biggest
wholesaler in the United States.

In a $1.5 billion transaction, Supervalu - which also is the
nation's 11th-largest grocery retailer - is paying $883 million,
or $18.50 per share, and assuming $642 million of the Richmond-
based company's debt. The transaction is subject to approval by
Richfood's shareholders and regulatory clearance. It is  
expected to close late summer to early fall.

Supervalu chief executive Mike Wright said there would be no
staff reductions in Hampton Roads. Farm Fresh is the region's
second- largest grocery retailer and the fifth-largest private
employer, with 5,026 employees. The Farm Fresh name and
headquarters will remain in Norfolk.

Richfood chief executive John E. Stokely, 46, said he will stay
through the transition, and then move on. Stokely said Ron
Dennis, Farm Fresh's president and chief operating officer, will
keep his post.

Supervalu's strategy is to continue to grow Richfood's retail
operations, Wright said: "We hope that we'll be able to grow and
invest even more in Farm Fresh."

For Supervalu, headquartered in Eden Prairie, Minn., the
acquisition provides a stronghold of the mid-Atlantic market,
where it did not have a presence before. Supervalu operates 345
stores, mostly in the Midwest, under the names of Cub Foods, Shop
'n Save and bigg's.

Shares of Richmond-based Richfood gained $2 in trading Wednesday,
closing at $16.88. Even with that 13 percent gain, the stock is
off 32 percent from its high for the year - $24.81 on Feb. 3 -
and 47 percent off its 1998 high of $32.

Richfood switched in May 1988 from a cooperative owned by its
member-merchants to a publicly traded company. It grew into the
largest wholesaler in the mid-Atlantic, supplying many of the
smaller independent chains, including U-Krops, Genardi and
Camellia Foods.

Richfood logged $3.2 billion in sales for its 1998 fiscal year.

In April, Richfood shares fell nearly 20 percent as analysts
reduced their fourth-quarter earnings estimates. Net earnings for
1988 were $69.2 million, a 12.8 percent increase over the
previous year.

In recent years, as small supermarket retailers were swallowed up
by larger chains, the wholesalers that supply them have lost some
of their biggest customers. To hedge their bets, wholesalers have
had to step into the retailing business. For Richfood, that meant
buying Farm Fresh out of bankruptcy in March 1998, along with two
other retail chains: METRO, a 16-store chain in Baltimore, and
Shoppers Food Warehouse, a 37-store chain in the Washington,
D.C., area.

But last April, Richfood lost a $600 million contract with its
biggest wholesale customer, Giant Food Stores of Carlisle Inc.,
when Giant's owner opted to go with a larger distributor that
supplied a retail chain which it was acquiring.

"Certainly the sluggish stock price plus the announcement of the
Giant of Carlisle loss catalyzed" the process, said Jeff Metzger,
publisher of Food World, an industry publication.

After acquiring Farm Fresh out of bankruptcy, Richfood launched
an $85 million campaign to overhaul the stores. Farm Fresh's
ability to invest in its stores and employees had been crippled
by debt it incurred in a 1988 leveraged buyout.

Richfood has renovated 13 of the 38 Farm Fresh stores so far,
adding amenities such as sushi bars and drive-through pharmacies,
rebuilding some of the locations from the ground up. Richfood
also owns four Rack & Sack stores.

In the meantime, Harris Teeter, Hannaford Bros. and Winn-Dixie
have encroached on the region and Food Lion has unseated Farm
Fresh as the dominant grocery retailer in Hampton Roads. Food
Lion now has 42.8 percent market share compared to Farm Fresh's
31.7 percent, according to an annual survey by Food World.

George S. Dahlman, an analyst with U.S. Bancorp Piper Jaffray,
said that Supervalu and Richfood would be a good fit, as
Supervalu is used to dealing with more than one retail concept.


SOWA BANK: Asks To Be Declared Insolvent
----------------------------------------
Japan's Tokyo Sowa Bank Ltd., a midsized regional bank, asked
financial authorities to declare it insolvent.

The bank said Friday it made the request to the Financial
Reconstruction Committee after fund-raising became difficult and
the bank feared it would be unable to repay depositors.

Earlier Friday, it revised its results for the fiscal year that
ended March 31 to show liabilities exceeding assets by about $8.6
billion. Tokyo Sowa also said that its capital adequacy ratio a
measure of a bank's health was minus 5.60 percent at the end of
March versus a positive 2.42 percent in late May.

Since Japanese banks with only domestic operations are required
to have a capital adequacy ratio of at least 4 percent, the
Financial Supervisory Agency on May 31 ordered the bank to take
''prompt corrective action'' to increase its capital.

The bank said it intended to boost its capital via a third-party
share issue.  However, after the FSA order, depositors rushed to
close their accounts, making fund-raising impossible, Tokyo Sowa
said.  The bank's board of directors will resign to take
responsibility for its failure.


TEXFI INDUSTRIES: Sale Of Stock Completed In May
------------------------------------------------
On April 22, 1999, five business entities and one individual
reported that they had sold 1,470,671 shares of common stock, and
1,200,000 options to acquire shares of common stock for an
aggregate purchase price of $3,431,123.  Such report was
premature only in the date of completion of the transaction.  
While the selling parties had concluded that the sale
of the common stock and options was complete, the purchaser
wished to negotiate further matters before it deemed the sale
closed. Such matters were concluded on May 20, 1999, and the sale
was completed on that date at the price shown above. The
disposition of stock and options was executed in a private sale.  
The sale of stock and options by Chadbourne Corp., Mentmore
Holdings Corp., Halton House Ltd., The Halton Declaration of
Trust, Bahamas Protectors Ltd., and William L. Remley reduced the
beneficial ownership of common stock of those parties to zero.


VOICE IT WORLDWIDE: Hearing on Adequacy of Disclosure Statement
---------------------------------------------------------------
A hearing will be conducted before the US Bankruptcy Court for
the District of Colorado to consider the adequacy of the
Disclosure Statement of the debtor, Voice It Worldwide, Inc.
on July 20, 1999 at 9:00 AM in Courtroom B, US Bankruptcy Court,
US Custom House, 721 19th Street, Fifth Floor, Denver, Colorado.  
Any objections to the Disclosure statement must be filed no later
than July 13, 1999.


WHITE ROSE: Sales Growing in 1999 Fiscal Third Quarter
------------------------------------------------------
Canada Newswire reports on June 10, 1999 that White Rose Crafts
and Nursery Sales Limited today announced a significant
improvement in its financial results for the 13-week period ended
May 2, 1999.

For the 13-week period ended May 2, 1999, the Company had a loss
of $1.7 million (10 cents per share) compared with a loss of $4.1
million (25 cents per share) reported for the 13-week period
ending April 26, 1998. The reduced loss, resulting primarily from
improved margins and a lower cost structure for the business,
occurred despite a 28% decline in revenue.

Revenue for the third quarter was $30.6 million, down from $42.3
million for the year-earlier period. Same store sales decreased
12.3% during this period, due to a later, cooler Spring than was
experienced last year. Revenue for the 39-week period ended May
2, 1999 was $119.2 million, down 14.5% from $139.4 million for
the 39- week period ended April 26, 1998.

For the 39-week period ended May 2, 1999, the Company incurred a
loss of $22.4 million ($1.37 per share) compared to a loss of
$8.4 million (51 cents per share) during the nine month period
ended April 26, 1998. Included in the loss for the current 39-
week period are restructuring charges of $17.6 million and a
writedown of capital assets by $1.6 million, taken in the second
quarter.

White Rose has been operating since November 27, 1998 under the
Companies' Creditors Arrangement Act, granting it protection from
its creditors. On May 28, 1999, the Company filed with the
Superior Court of Justice a Plan of Arrangement and Compromise
that will allow smaller, unsecured creditors to receive a portion
of their unpaid bills in immediate cash. Meetings of creditors
have been called for June 18 in Markham to vote on the Plan.

"During the past several months, we have taken a number of steps
to reduce overhead and operating costs across the province. At
the same time, we've been able to improve the Company's margins,"
said William E. Aziz, President and Chief Executive Officer. "The
broader assortment of products we're offering has been well
received by our customers and that, in turn, has translated into
an excellent spring selling season for White Rose."

White Rose is a leading crafts and nurseries retailer in Canada.
It operates 32 stores and owns and operates two farms, located in
Uxbridge and Wellington, Ontario.


WILSHIRE FINANCIAL: Emerges From Bankruptcy
-------------------------------------------
Wilshire Financial Services Group Inc. (Nasdaq:WFSG) today
announced that it has emerged from bankruptcy pursuant to the
restructuring plan approved in April by the United States
Bankruptcy Court for the District of Delaware.

The primary focus of the restructuring plan was the successful
exchange of the Company's outstanding Senior Notes, totaling
approximately $ 184 million, into common stock of the
restructured company. Throughout the restructuring, the
Company's subsidiaries continued their normal course of business
and made payments to their trade creditors and lenders (other
than holders of the Senior Notes).

Pursuant to the plan, the holders of the Senior Notes will
receive approximately 96.16 shares of the new common stock for
every $ 1,000 principal amount of the Senior Notes. A portion of
the new common stock will be reallocated so that shareholders of
the old common stock will receive approximately 0.6% of the
outstanding shares of the new common stock, equivalent
to approximately 1 share of new common stock for every 77.28
shares of the old common stock. The distribution of the new
shares is expected to occur in June 1999. Houlihan-Lokey advised
the Senior Note holders in connection with the Company's
restructuring.

The Company also will acquire the loan servicing operations of
Wilshire Credit Corporation, a private company, into a majority
owned subsidiary, which will allow the Company to service its own
assets and provide third party servicing. This should produce
additional revenues for the Company and eliminate potential
conflicts of interest.

The Company has requested that its new common stock succeed to
the listing of its old common stock and that the suspension of
trading in the old common stock be lifted. Nasdaq is currently
reviewing this matter, but there can be no assurance that the
stock will be approved for trading on Nasdaq.

First Bank of Beverly Hills F.S.B., the Company's thrift
subsidiary, has purchased approximately $ 100 million of
residential and commercial mortgages since January 1, 1999 and
continues to develop its Merchant Bankcard processing
business. The Bank also originates commercial mortgages through
its subsidiary, George Elkins Mortgage Company, a four-branch
commercial mortgage loan originator headquartered in Southern
California.

The Chief Executive Officer of the Bank has announced her
resignation to join another institution. Until her replacement is
found, Kevin Kelly, chairman of the Bank's Board, and former
president of the U.S. Bank of Oregon, will assume the
responsibilities of the Bank's chief executive officer. As a
result of this resignation and the Company's bankruptcy, the
Office of Thrift Supervision issued a letter on June 3 that
designates the Bank as a troubled institution under 12 CFR
563.555 and requires the Bank to obtain OTS approval
before the Bank takes certain acts.

Wilshire has now completed its reorganization and has engaged a
search firm to find a suitable replacement for its chief
executive officer of First Bank of Beverly Hills. The
restrictions contained in the OTS letter will be detailed in
a Form 8-K filing to be filed shortly by the Company.

Wilshire Financial Services Group Inc. is a diversified financial
services company conducting business in the U.S., U.S.
Territories and Europe. The Company specializes in loan portfolio
acquisition, mortgage banking, and servicing. It offers wholesale
banking through a subsidiary, First Bank of Beverly Hills, F.S.B.
The Company is headquartered in Portland and has offices
in California and in the United Kingdom, France, and Ireland.


WIRELESS ONE: Announces eCommerce Partnership With Netgateway
-------------------------------------------------------------
Wireless One, Inc. (OTC Bulletin Board: WIRL) announced an
eCommerce partnership with Netgateway, Inc. (OTC Bulletin Board:
NGWY) to create a clean, family-safe electronic mall at
www.wirelessonemall.com. The mall allows businesses to set up
economical eCommerce "storefronts" to offer products and services
and gives consumers a convenient, no charge and secure place to
shop on the Internet. The electronic mall is open for Internet
sales today.  Netgateway has created and will manage the mall.
Wireless One manages sales of "storefronts" and
advertising. Initially, Wireless One will advertise the mall in
its thirty- eight video markets with over a thousand thirty-
second ad spots per month to its nearly 104,000 subscribers.
Later, it will offer the service to all 11.2 million Housing
Units in its licensed eleven-state footprint. In the Third
Quarter, Wireless One will offer the approximately 1.1 million
businesses in its licensed coverage area the opportunity to
"build storefronts" in its electronic mall. Its WarpOne division
will manage direct sales to businesses.

Wireless One President and CEO, Henry M. Burkhalter, sees the
Netgateway agreement as a natural extension of its Broadband
Wireless Access (BWA) technology in which Wireless One can bundle
a full range of telecommunications services including data,
video, Internet access, Voice over Internet Protocol (VoIP) and,
in the future, telephone services. He said, "Wireless One video
and data customers, as well as general consumers, will find that
our mall, www.wirelessonemall.com, offers easy access to a secure
place to shop on the Internet. Business customers can get into
eCommerce with national exposure at our mall by opening a
"storefront". Each "storefront" features affordable startup and
operating costs. Wireless One makes the set up for the business
affordable and access by consumers convenient and secure. This
partnership brings a new vitality and convenience to eCommerce.
Our mall will offer one-stop shopping to the entire family. This
service integrates everything we do -- video, data,
Internet access and advertising. This is another example of
Wireless One's leadership role in providing full-service
Broadband Wireless Access."

Wireless One Chief Operating Officer, Ernest D. Yates, Jr., views
the substantial synergies of the partnership as a harbinger of
enhanced eCommerce access throughout the southeast. "We are
excited about the potential of this partnership. Wireless One can
deliver both consumers and merchants in rural areas to the
eCommerce mall. This is the first marriage of eCommerce and two-
way Broadband Wireless Access service. It combines Wireless One's
broad consumer reach, ability to provide ad insertion and
superior wireless technology with Netgateway's creative ability
to support the mall and offer convenient shopping opportunities.
It is a compelling combination to attract new commercial
interest and consumer participation in eCommerce. The Wireless
One mall will be a popular place for both merchants and
consumers. A shopper can take his or her shopping cart throughout
the mall and check-out just one time. A single credit card
transaction for the entire shopping trip is secure. The
storeowners can get on line in just five days and have full
control of their inventory and pricing. Businesses can open a new
branch with little or no cost and access as many as 7 million
shoppers currently on the Netgateway network twenty-four hours a
day."

Wireless One, Inc., a Broadband Wireless Access provider, owns,
develops and operates wireless video, Internet access, data and
voice over Internet Protocol systems in eleven contiguous states
in the Southeast U.S. with exclusive licenses in the Multi-Point
Multi-Channel Distribution System ("MMDS") and Wireless
Communications Spectrum ("WCS"). The Company also owns a 50%
interest in a joint venture that holds exclusive MMDS and WCS
licenses in 13 North Carolina markets.


WIRELESS ONE: Seeks More Time To File Schedules and Statements
--------------------------------------------------------------
The debtor, Wireless One, Inc. seeks an extension of time to file
its lists of equity security holders, schedules of assets and
liabilities, schedules of current income and expenditures,
schedules of executory contracts and unexpired leases and
statement of financial affairs.

The debtor requests an extension of twelve days through and
including June 23, 1999.  The debtor is in the midst of
evaluating the effect of major changes within the debtor's
industry and the resulting jump in the value of the debtor's
business.

                   **********

The Meetings, Conferences and Seminars column appears in the TCR
each Tuesday.  Submissions via e-mail to
conferences@bankrupt.com 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, Yvonne L. Metzler and Lexy Mueller, Editors.
Copyright 1999. All rights reserved.  ISSN 1520-9474.  

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.   

Information contained herein is obtained from sources
believed to be reliable, but is not guaranteed.   
  
The TCR subscription rate is $575 for six months delivered
via e-mail. Additional e-mail subscriptions for members of
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.  
       
          * * *  End of Transmission  * * *