TCR_Public/990726.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, July 26, 1999, Vol. 3, No. 141

                               Headlines

@BIGGER.NET: Competitor Making Free Service Pitch to Customers
AMERICAN MOBILE: GM & Hughes Report Beneficial Ownership
AVATEX CORP: Revenues Down But Net Loss Is Lessened
BROTHERS GOURMET: Request to Extend Solicitation Period to Sept. 16
BUCYRUS-ERIE: 7th Cir. Upholds John Gellene's Perjury Conviction

CALDOR CORPORATION: Liquidators Sue For $26M Refund
CAROLINA HOME: Case Summary and 20 Largest Unsecured Creditors
CARTER MANOR: Cleveland 280-Unit Apartment Foreclosure Stalled
CHERNIN'S SHOES: Seven Remaining Chicago Stores Going Out of Business
CORNUCOPIA RESOURCES: Name Changes With Completion Of Reorganization

CRIIMI MAE:Report To Noteholders On 7% Mortgage Obligations
FIDELITY BOND: Refi Boom & High Costs Fatal Combination for Lender
FUTURE TECH: Plan Confirmed, Selling Company to Bell Microproducts
HANBO STEEL: Nabors Consortium to Take Over South Korean Concern
HURRICANE HYDROCARBONS: Alberta Court Grants CCAA Extension

IMAGYN MEDICAL: Requests Suspension Of Normal Accounting Reports
IRIDIUM: Motorola Tightens-Up, Halting Additional Funding
JOHNS MANVILLE: Discharges Bond; Purchases Shares From Manville Trust
LOEHMANN'S: Office Depot Reportedly Eyeing Downtown Seattle Property
NATIONAL ENERGY: Croft-Leonminster Reports Zero Stock Ownership

NEXTWAVE PERSONAL: Committee Asks Permission to Retain D.C. Lobbyists
PENN TRAFFIC: DDJ Capital Reports Stake in Reorganized Debtor
PRIMARY HEALTH: Needs $3.2 Million Increase in DIP Financing
SOUTHERN MINERAL: $20 Million Equity Infusion Backs Prepack Plan
TED PARKER: Case Summary and 20 Largest Unsecured Creditors

THORN APPLE: Court Approves $115 Million Asset Sale to IBP
TRACE INTERNATIONAL: Case Summary and 20 Largest Unsecured Creditors
TRACE INTERNATIONAL: 46% Shareholder Foamex Not Fearful of Chapter 11
VENTAS, INC.: Will Not Declare or Pay Third Quarter Dividend
WIRELESS ONE: To Become Wholly-Owned Subsidiary of MCI WorldCom

                               *********

@BIGGER.NET: Competitor Making Free Service Pitch to Customers
--------------------------------------------------------------
A Seattle based start-up company has extended its offer of
free, unlimited Internet access for all former customers of
@bigger.net until July 31.  Fanz.net said more than 1,500 former
customers of @bigger.net had already signed up for the service.
Before declaring bankruptcy in 1998, @bigger.net had more than 45,000
customers in the Bay Area.  "We're waiving our normal set-up fee of $
39.95 as a courtesy to all people who once relied on @bigger.net,"
said Bill Parker, president and chief executive officer. "We believe
there are many more people who will sign up once they know they don't
have to pay a fee." Parker is also president of an affiliated
company, Brigadoon.com, which bought some of the technology of
@bigger.net.  That technology has now been licensed to Fanz.net,
which is being funded by Brigadoon.com and private investors.  All
users will have toll-free technical support, up to five free e-mail
accounts and Web space for their own personal Web site.  To access
the service, former @bigger.net customers can sign up at
http://www.bigger.net


AMERICAN MOBILE: GM & Hughes Report Beneficial Ownership
--------------------------------------------------------
As previously reported, on June 7, 1999, American Mobile Satellite
Corporation entered into an exchange agreement with WorldSpace Inc.
and XM Satellite Radio Holdings Inc., a development stage company
developing a digital quality radio service to be transmitted directly
by satellite to car, home, and portable radios. At the closing of the
exchange agreement, which took place on July 7, 1999, the company
acquired all of WorldSpace's interest in XM Radio in exchange for
8,618,244 million shares of the company's common stock (some of which
shares will be issued following receipt of approval by the company's
stockholders). As a result of this transaction, the company now owns
all of the issued and outstanding stock of XM Radio, and WorldSpace
no longer owns any direct equity or debt interest in XM Radio.

Concurrently with this transaction, XM Radio also issued an aggregate
of $250 million of subordinated convertible notes to several new
strategic and financial investors, including General Motors
Corporation, Clear Channel Investments, Inc., and DIRECTV
Enterprises, Inc. XM Radio used $75 million of the proceeds it
received from the issuance of these notes to redeem certain
outstanding loan obligations owed to WorldSpace.

General Motors Corporation, Hughes Electronic Corporation, Hughes
Communications Inc. and Hughes Communications Satellite Services,
Inc. have filed a report with the Securities & Exchange Commission
indicating their shared voting and dispositive powers in American
Mobile Satellite common stock.  General Motors and Hughes Electronic
Corp. share an aggregate 11,566,622 shares, or 31.0% beneficial
ownership in the company.  Hughes Communications Inc. and Hughes
Communications Satellite Services, Inc. share an aggregate 6,691,622
shares, or 20.6% beneficial ownership in American Mobile Satellite
Corp.


AVATEX CORP: Revenues Down But Net Loss Is Lessened
---------------------------------------------------
Avatex Corporation is a holding company that, along with its
subsidiaries, owns interests in other corporations and partnerships.  
Through Phar-Mor, Inc., its 38% owned affiliate, the corporation is
involved in operating a chain of discount retail drugstores.

Phar-Mor operates a chain of 138 discount retail drugstores in 24
states, under the names "Phar-Mor", "Pharmhouse" and "The Rx Place",
devoted to the sale of prescription and over-the-counter drugs,
health and beauty care products, and other general merchandise and
grocery items.  Approximately 40% of Phar-Mor stores are located in
Pennsylvania, Ohio and West Virginia; 20% are located in Virginia,
North Carolina and South Carolina; and 14% are located in New York
and New Jersey.

During fiscal 1999, Phar-Mor acquired 2,086,200 shares of Avatex'
common stock (15.1% of the currently issued shares of common stock)
at a cost of approximately $5.0 million.  The corporation has been
advised by Phar-Mor that it will acquire, from certain  preferred
stockholders of Avatex, an additional 2,862,400 shares of the
corporation's common stock (20.7% of the currently issued shares) at
$2.00 per share upon consummation of the proposed Avatex and Xetava
merger.

Revenues from real estate operations decreased $1,719 to $10,509 for
the year ended March 31, 1999, for the corporation, compared to
$12,228 for the year ended March 31, 1998.  Net loss was less at $6.6
million for the fiscal year 1999, as compared to net loss of $77.5
million for the prior fiscal year.


BROTHERS GOURMET: Request to Extend Solicitation Period to Sept. 16
-------------------------------------------------------------------
The Plan and Disclosure Statement have been filed, Brothers Gourmet
Coffees, Inc., and its debtor-affiliates remind Judge Walrath.  That
Plan, however, will need to be amended because the P&G sale left
behind substantial assets, including the Debtors' Houston Facility.  
As a result, the Debtors need to decide whether greater value will be
returned to creditors through a sale of these remaining assets of an
internal reorganization of those assets.  The Debtors envision filing
an Amended Plan that has the full support of the Committee.  A
consensual plan is more probable than not, the Debtors suggest, if
their exclusive period within which to solicit acceptances of their
Plan is extended to September 16, 1999.


BUCYRUS-ERIE: 7th Cir. Upholds John Gellene's Perjury Conviction
----------------------------------------------------------------
Patricia Manson, reporting for the Chicago Daily Law Bulletin,
reports that the United States Court of Appeals for the Seventh
Circuit rejected John G. Gellene's arguments that he did not have the
intent necessary to be convicted of perjury and affirmed his
conviction stemming from concealing a conflict of interest in a bid
to obtain $ 2 million in fees for his law firm.

The panel said Gellene was reading federal law too narrowly when he
contended that prosecutors were required to show that a defendant
accused of lying must have a specific intent to alter or to impact
the distribution of a debtor's assets and not merely to impact the
integrity of the legal system."  And the panel rejected the
contention that Gellene's alleged lies while testifying in a
bankruptcy hearing were not material and therefore not criminal.

While a creditor's challenge to a fee petition focused on only one
alleged conflict of interest, the thrust of that challenge was the
divided loyalty" of Gellene's law firm, Milbank, Tweed, Hadley &
McCloy, the panel said.  And Gellene attempted to deceive both the
court and the parties in the bankruptcy case when he denied that that
particular conflict of interest existed and referred to a written
statement he had filed previously that failed to disclose any
conflict, the panel said.

The record permitted the jury to conclude that Mr. Gellene knowingly
introduced the false document in order to gain approval of Milbank's
$2 million fee request," Judge Kenneth F. Ripple wrote for the panel.  
Evaluating the testimony presented to it, the jury was entitled to
conclude that Mr. Gellene had virtually bragged about the
forthrightness of Milbank's disclosure of its representation of
Goldman Sachs, all the while knowing that no one involved in the
bankruptcy proceedings was aware of Milbank's undisclosed
representations of South Street and the other entities."

Joining in the opinion were Judges John L. Coffey and Daniel A.
Manion.

Gellene's attorney, Mark L. Rotert of Winston & Strawn in Chicago,
said he will seek a rehearing.  "I'm disappointed by the court's
decision because I continue in my belief that John did not commit the
crimes with which he was charged," Rotert said Wednesday.  And I
don't believe the statutes that were applied to John were applied
correctly."

But Assistant U.S. Attorney Steven M. Biskupic in Milwaukee praised
the panel's decision.  "The government is pleased that the Court of
Appeals affirmed the District Court, as well as the government's
manner of charging," Biskupic said.  He said that the criminal case
against Gellene was not unique.  "It's not a big step going from
prosecuting debtors lying in bankruptcy to prosecuting attorneys who
lie in connection with their representation of debtors or creditors,"
Biskupic said.

Chief Counsel James J. Grogan of Illinois' Attorney Registration and
Disciplinary Commission agreed that criminal charges occasionally are
brought against lawyers accused of lying in court proceedings.  While
it is more common for disciplinary action to be taken against such a
lawyer, criminal cases also sometimes result, according to Grogan.

Gellene was disbarred in New York following his conviction in the
criminal case in Milwaukee. In re John G. Gellene, 676 N.Y.S.2d 161
(1998).  Gellene was a partner at Milbank, Tweed in New York when he
represented Bucyrus-Erie Co. in a Chapter 11 case. Bucyrus, a mining-
equipment manufacturer based in South Milwaukee, had filed for
reorganization in 1994 in U.S. Bankruptcy Court for the Eastern
District of Wisconsin.  In an application seeking to have Milbank,
Tweed represent Bucyrus, Gellene disclosed that the firm had
previously represented Goldman Sachs & Co. and Jackson National Life
Insurance Co., or JNL, in unrelated matters, according to the panel.
Goldman Sachs was Bucyrus' largest equity shareholder, while JNL was
its largest creditor.

But the panel said the application failed to disclose that Milbank,
Tweed also had represented South Street Funds, a group of investment
entities holding $35 million in senior secured notes and leasehold
interests, and Greycliff Partners, an investment entity that managed
South Street and that consisted of two former Goldman Sachs
employees.  Gellene filed the application on behalf of Bucyrus under
oath under Bankruptcy Rule 2014, the panel said.  The panel said
Gellene continued to conceal Milbank, Tweed's connection to South
Street and Greycliff in a second sworn statement he filed in March
1994 after the U.S. trustee and JNL objected to the initial Rule 2014
disclosure.  Gellene again failed to disclose that Milbank, Tweed had
represented -- and was continuing to represent -- South Street and
Greycliff when he testified in a November 1995 hearing on the law
firm's request for $ 2 million in fees, the panel said.  The panel
said the bankruptcy judge awarded Milbank, Tweed about $1.8 million,
but later directed the law firm to return the money to the bankruptcy
estate after discovering that Gellene had made false statements.

In December 1997, Gellene was indicted for allegedly lying in the
Bucyrus bankruptcy case. He was charged with two counts of violating
18 U.S.C. Sec. 152(3) for lying in the separate Rule 2014 disclosures
and one count of lying in the bankruptcy hearing.  The third count
was brought under 18 U.S.C. Sec. 1623, the false swearing" statute.
That statute makes it illegal to knowingly make a false material
declaration" under oath in a court proceeding.  Gellene was convicted
on all counts. Chief U.S. District Judge J.P. Stadtmueller of the
Eastern District of Wisconsin sentenced him to 15 months in prison
and ordered him to pay a $ 15,000 fine.

In affirming Gellene's conviction and sentence Tuesday, the 7th
Circuit panel rejected the arguments that prosecutors were required
to show that he had the intent to defraud -- not just to deceive --
when he made the allegedly false statements in the Rule 2014
disclosures.  The panel also rejected the contention that Gellene's
statements in the bankruptcy hearing were technically true and were
not material to the court's decision to award fees to Milbank, Tweed.
And the panel rejected the contention that Stadtmueller abused his
discretion by admitting evidence that Gellene had practiced law in
New York for almost nine years before joining that state's bar.
The panel also declined to fault the judge for allowing jurors to
learn that Gellene had made misrepresentations in unrelated
bankruptcy cases in Wisconsin and Colorado.

Gellene had contended that the admission of this evidence violated
Rule 404(b) of the Federal Rules of Evidence. Rule 404(b) allows
evidence of prior crimes or acts to be introduced to prove such
matters as an individual's motive or intent or the absence of a
mistake, but not to prove that an individual had a propensity to
engage in the conduct alleged.  But prosecutors argued -- and both
the trial judge and the 7th Circuit panel agreed -- that Geller
himself had raised the matter of his state of mind.  Geller made
intent an issue when he testified during his trial that he had not
intended to defraud anyone by making the statements cited in the
indictment against him, the panel said.  And the evidence admitted by
the trial judge tended to show intentional dishonesty, absence of
mistake, and a cavalier disregard for the truth in his dealings with
tribunals," according to the panel.  U.S. v. John G. Gellene, No. 98-
2985.


CALDOR CORPORATION: Liquidators Sue For $26M Refund
---------------------------------------------------
Caldor Corp.'s liquidators have filed a $26 million lawsuit against
the company claiming that the former retailer has overestimated the
value of its inventory and refused to refund the excess funds the
liquidators pledged in order to win the liquidation contract.  The
Ozer Group LLC, Gordon Brothers Retail Partners LLC, and SBCG Co. LLC
filed the suit in the U.S. Bankruptcy Court in Manhattan on Monday
based on Caldor's "willful refusal to comply with the express terms
of the parties' February 1, 1999 Purchase and License agreement."  
(The Daily Bankruptcy Review & ABI 22-Jul-1999)


CAROLINA HOME: Case Summary and 20 Largest Unsecured Creditors
--------------------------------------------------------------

Debtor:  Carolina Home Sales, Inc.
         dba/aka/fka Victoria Homes
         401 East 11th Street
         Lumberton, NC 28358

Court: District of Delaware

Case No.: 99-2730      Filed: 07/22/99    Chapter: 11

Debtor Affiliates:     Housing Retailer Holdings, Inc.
                       Holding Company
                       Bankruptcy Case No. 99-2251 (MFW)

                       H Squared, L.L.C.
                       Holding Company
                       Bankruptcy Case No. 99-2250 (MFW)

                       Ted Parker Home Sales, Inc.
                       Parent
                       Bankruptcy Case No. 99-2729 (MFW)

Debtor's Counsel: Norman L. Pernick, Esq.
                  Saul, Ewing, Remick & Saul, LLP
                  222 Delaware Avenue
                  P.O. Box 1266
                  Wilmington, DE 19899

          Total Assets:       $1,000,000 to $10,000,000
          Total Liabilities:  $1,000,000 to $10,000,000

20 Largest Unsecured Creditors:

   Name                                             Amount
   ----                                             ------
Deutsche Financial Services                        Unknown
Transamerica Commercial Finance Corporation        Unknown
Green Tree Financial Servicing                     Unknown
Deere Credit, Inc.                                 Unknown
Bombardier Capital, Inc.                           Unknown
Associates Housing Finance                         Unknown
Champion Enterprises, Inc.                   $8,259,335.43
Kaufman                                         867,857.25
Palmetto Marketing                              549,934.72
Williamsburg House                              247,129.60
Parker Manufacturing                            172,400.00
Lowe s Companies, Inc.                          164,593.17
Ted Parker                                      161,733.33
Ardshiel, Inc.                                  142,731.08
Goldberg Company Incorporated                   109,834.09
Karobway Furniture                              106,834.98
O'Rourke Bros.                                   70,351.65
Shaw Office Supplies                             61,419.98
Rogers Electric.                                 58,900.00
Branch Banking & Trust                           56,566.65


CARTER MANOR: Cleveland 280-Unit Apartment Foreclosure Stalled
--------------------------------------------------------------
Stan Bullard, writing for Crain's Cleveland Business, reports that
two days before the U.S. Department of Housing and Urban Development
was to try to sell the Carter Manor Apartments downtown to finish a
foreclosure proceeding, its owner stopped the clock by throwing the
limited partnership that owns the 280-unit building at 1012 Prospect
Ave. into chapter 11.  The filing allows Carter Manor Apartments
Limited Partnership, led by well-known Cleveland real estate investor
Harvey Oppmann, to reorganize its debt and continue operations.  

Kriss Felty, a Cleveland attorney, who serves as HUD's foreclosure
commissioner in the case, said, "It was just going to be a question
of what HUD would bid vs. anyone else," Mr. Felty said.

With $9.3 million in three loans on the property -- first, second and
third mortgages -- HUD is the largest secured creditor in the
bankruptcy, which was assigned to Judge David F. Snow.

The partnership has assets of $5.04 million, with $4.35 million of
that due to the value of the property itself, according to the
Chapter 11 filing.  The partnership has liabilities of $10.45
million, the filing said.

Mr. Oppmann said the partnership filed to block the foreclosure sale.

"We did not agree with HUD on the foreclosure, and it's our right to
petition the court for reorganization," Mr. Oppmann said. "For over
25 years, we have successfully managed 280 low-income housing units
at the Carter Manor.  In recent years, for the first time, we've had
differences of opinion with people at HUD who oversees the property."

Mr. Oppmann said he didn't "want to go into any great detail" about
what triggered the foreclosure, but noted the building "is very well-
occupied" with 90% of its units filled.

Richard Baumgart, the attorney for Carter Manor Apartments Limited
Partnership, said he has prepared a draft of a reorganization plan
that would include how the partnership intends to repay its debts,
but isn't certain when he will file it.

HUD spokesman LeMar Wooley said the matter would be referred to
attorneys and they will try to get the court to void the bankruptcy
filing to allow the sale to proceed.


CHERNIN'S SHOES: Seven Remaining Chicago Stores Going Out of Business
---------------------------------------------------------------------
After struggling for months to keep the 92-year-old chain afloat,
Chicago footwear retailer Chernin's Shoes Inc. will liquidate its
seven remaining stores and close in three months, according to a
Paula Lyon, writing for Crain's Chicago Business.  The closings will
affect 220 employees. Once the doors are shut, Chernin's hopes to
sell its store leases, customer list and the rights to its name. The
chain filed for Chapter 11 bankruptcy protection in May, Crain's
recalled.


CORNUCOPIA RESOURCES: Name Changes With Completion Of Reorganization
--------------------------------------------------------------------
Stockscape.com Technologies Inc., formerly Cornucopia Resources Ltd.,
has completed: (1) a consolidation of its authorized and issued
common share capital on the basis of one new share for ten old
shares; (2) the acquisition of a new business; and (3) a change of
name.  The foregoing are the final aspects of Cornucopia's
reorganization which also involved the previously announced
completion of : (1) the sale of Cornucopia's joint venture interest
in the Ivanhoe property in the State of Nevada to Great Basin Gold
Ltd. of Vancouver, B.C., and (2) the restructuring of the Board of
Directors of Cornucopia to reflect the nature of the company's new
business.

As a result of the acquisition by Cornucopia of Stockscape
Technologies Ltd., A.R. Rule Investments B.C. Ltd. holds 55.06% of
the outstanding common shares of the company which represents a
change in control. The shares were issued at a deemed price of $0.50
Canadian, per share, in consideration for all the issued shares of
Stockscape Technologies Ltd.

On July 9, 1999, immediately following the name change and share
consolidation the company completed its acquisition of Stockscape
Technologies Ltd.  The acquisition was accomplished by the issuance
of 10,000,000 post-consolidation shares of the company at a deemed
price of $0.50 Canadian, per share to A.R. Rule Investments B.C. Ltd.

On June 30, 1999, Cornucopia held its annual and extraordinary
meeting and the shareholders passed a special resolution authorizing  
the consolidation of all of Cornucopia's common shares without par
value from 200,000,000 common shares into 20,000,000 common shares,
every 10 common shares being consolidated into 1 common share; and
then increasing the company's authorized common share capital to its
pre-consolidation level of 200,000,000 common shares without par
value and altering the company's memorandum accordingly.  The
shareholders also passed a special resolution authorizing the change
of name of Cornucopia to Stockscape.com Technologies Inc.

Stockscape.com has received commitments for a 4 million unit
financing which was effected on a post-consolidation basis at $0.50
Canadian, per unit to raise maximum proceeds of $2,000,000 Canadian.  
Each unit will consist of one common share and two share purchase
warrants.  One share purchase warrant will be exercisable in the
first year to acquire one additional  Stockscape.com common share at
$0.65 Canadian.  The second warrant will be exercisable for a period
of two years to acquire one additional common share at $0.95
Canadian.  The warrants will have forced conversion features.  
Proceeds of the financing will be used to further develop the
Stockscape.com customer base and for working capital purposes.

At the June 30, 1999 annual and extraordinary meeting of Cornucopia
shareholders passed an ordinary resolution to ratify and approve the
adoption of a new Stock Incentive Plan to replace the previous Stock
Incentive Plan. Pursuant to the new Stock Incentive Plan a total of
800,000 stock options have been granted to directors, officers and
former directors of the company and a further 490,000 incentive stock
options have been granted to employees of the company, for the
purchase of post-consolidation shares of the company at $0.50
Canadian, per share.


CRIIMI MAE:Report To Noteholders On 7% Mortgage Obligations
-----------------------------------------------------------
Criimi Mae Financial Corporation filed with the Securities & Exchange
Commission a copy of State Street's July 1, 1999, report to the
holders of Criimi Mae Financial Corporation's 7.00% Collateralized
Mortgage Obligations due January 11, 2033, detailing the principal
and interest payments for the month.  The report provides noteholders
with loan performance data on a property-to-property basis.  A full-
text copy of the Report is available at:

     http://www.sec.gov/cgi-bin/srch-edgar?0000847322-99-000026


FIDELITY BOND: Refi Boom & High Costs Fatal Combination for Lender
------------------------------------------------------------------
A recent bankruptcy case illustrates the risks for mortgage servicers
that can't keep a lid on costs or replenish their portfolios.  
Fidelity Bond and Mortgage Co. of Blue Bell, Pa., filed for Chapter
11 protection this month.  It failed largely because of
inefficiencies in its servicing platform, said people close to the
small, privately owned company.  The problems included high rent and
expensive computer-support contracts that the company could not
easily get out of, the sources said.  In May 1998, Fidelity Bond
merged with Phoenix Mortgage Co., a Fort Washington, Pa., lender that
originated about $200 million of loans a year.  As part of that deal,
Republic First Bancorp, the holding company of First Republic Bank in
Philadelphia, took a 47% stake in the mortgage company.   At that
point, Fidelity Bond serviced over $630 million of loans.

But the biggest refinance boom in history, in which homeowners rushed
to take advantage of falling interest rates, eroded many servicers'
portfolios, including Fidelity Bond's.  The merger also created
redundancies that added to costs, one creditor said.  Eventually,
Fidelity Bond could not collect enough servicing fees to make up
for its high costs.  

In the fall of 1998 Fidelity Bond started to sell servicing rights
along with nearly all the loans it sold.  The company needed cash,
and bigger lenders paid it a premium for servicing. But that
exacerbated the portfolio's attrition.

Summit Bank of Princeton, N.J., was Fidelity Bond's biggest creditor,
with a $7.3 million exposure secured mainly by the servicing book,
said James M. Matour, a partner at Middleman & Matour, the
Philadelphia law firm representing Fidelity Bond in bankruptcy court.

The servicing portfolio was transferred to Summit over the last
month. By then the portfolio had shrunk to $400 million, putting its
market value at about $4 million.  

Fidelity Bond still owes the bank about $3.3 million, said Mr.
Matour, a turnaround specialist Fidelity Bond hired in January. "It
remains to be seen how much they'll be able to recover," he said.  
Republic First lost $1.6 million last year on its investment in
Fidelity Bond, according to a filing the bank made with the
Securities and Exchange Commission.  Put PNC Bank, the company's
warehouse lender, was "pretty well collateralized," Mr. Matour said.  
Officials from Summit, Fidelity Bond, and Republic First did not
return phone calls. A PNC official declined to comment, citing
confidentiality agreements. (The American Banker 23-Jul-1999)


FUTURE TECH: Plan Confirmed, Selling Company to Bell Microproducts
------------------------------------------------------------------
Bell Microproducts Inc. (Nasdaq:BELM), a leading international
value-added distributor of mass storage products and electronic
components, announced that it has completed its acquisition of
certain assets of Future Tech International, Inc. through its newly
formed subsidiary, Bell Microproducts - Future Tech, Inc.

Future Tech, based in Miami, has been a leading value-added
distributor of computer components to the fast-growing markets of
Latin America and the Caribbean. The company distributes products
from AMD, Canon, Maxtor, NEC and Quantum and other leading
manufacturers. It also manufactures and markets its proprietary
Markvision-branded products.

"Bell Microproducts' acquisition of Future Tech is part of our
overall strategy to increase our presence in value-added distribution
in the Americas," said Don Bell, president and CEO. "Future Tech was
an excellent choice for us, in that it carries a line of quality,
high technology products that complements our lines and backs them up
with comprehensive service and support. The synergies will strengthen
both companies."

Future Tech's reported 1998 sales were approximately $180 million.
Its customer base includes approximately 350 active customers in
Miami and Latin America. Lou Leonardo, president of Future Tech, has
been appointed to the position of president of the new subsidiary and
will report to Don Bell. The subsidiary is expected to employ
approximately 100 people.

The Bell subsidiary paid $1,500,000 in cash to acquire Future Tech's
assets and is obligated to pay an additional $1,000,000, subject to
certain contingent offsets and reductions within 45 days. The Bell
subsidiary has also assumed certain liabilities of Future Tech. Bell
Microproducts Inc. has guaranteed the Bell subsidiary's performance
with respect to these payments and assumption of liabilities. The
acquisition was consummated pursuant to a confirmation order issued
by the U.S. Bankruptcy Court for the Southern District of Florida on
July 9, 1999, approving Future Tech's plan of reorganization.  One of
Future Tech's creditors has filed a notice of appeal with respect to
the confirmation order.


HANBO STEEL: Nabors Consortium to Take Over South Korean Concern
-----------------------------------------------------------------
Asia Pulse reports that the Nabors consortium of the United States
will hold talks with South Korea's Hanbo Steel next month in a bid to
speed up its planned acquisition of the bankrupt steelmaker, the
president of a Korean firm in the consortium said Friday. Kwon Ho-
sung of Junghu Industry told a press conference that the 20-member
delegation to visit Seoul in August would implement an asset
evaluation for Hanbo from early next month to the end of
September. The consortium comprises Nabors Capital, an affiliate of
the world's largest oil exploration firm Nabors Industries, Third
Avenue Trust and Junghu Industry of South Korea, among others.


HURRICANE HYDROCARBONS: Alberta Court Grants CCAA Extension
------------------------------------------------------------------
The Court of Queen's Bench of Alberta, Judicial District of Calgary,
extended the original Companies' Creditors Arrangement Act Order for
Hurricane Hydrocarbons Ltd., to August 27, 1999, and, provided that a
restructuring plan is filed with the Court by that date, the Order
will be automatically extended to September 30, 1999.

The CCAA Order permits Hurricane the opportunity to proceed with the
implementation of its restructuring plan.  The extension Order
continues the stay of all legal proceedings for this period of time.

Hurricane's shares continue to trade on the Toronto Stock Exchange
under the symbol HHL.A.  Hurricane's website can be accessed at
http://www.hurricane-hhl.com


IMAGYN MEDICAL: Requests Suspension Of Normal Accounting Reports
----------------------------------------------------------------
On May 4, 1999, three holders of Imagyn Medical Technologies' 12 1/2%
Senior Subordinated Notes filed an involuntary petition against the
company under Chapter 7 of the Bankruptcy Code. And, as reported
earlier, on May 18, 1999, the company filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware for itself and for its
operating subsidiaries, and requested that the involuntary case be
converted to a Chapter 11 case.

Since the petition date, the company indicates it has been
principally engaged in dealing with bankruptcy-related matters and
formulating a substantially modified business strategy in an effort
to emerge from bankruptcy. The company's finance and accounting staff
has devoted substantially all of its time to the maintenance of the
remaining operations, including the development and implementation of
the company's post-bankruptcy business strategy, and to the
administrative burdens of the reorganization case.  These are said to
include  valuation of assets, reconciliation and resolution of proofs
of claim, preparation of financial projections, formulation and
preparation of disclosure materials related to a reorganization plan,
dealing with a creditors committee, ongoing litigation and
preparation of monthly operating reports to the United States
Trustee's office and the bankruptcy court.

In addition, the company's bankruptcy filing came at a time during
which year-end audit procedures would have normally been underway,
and once the filing occurred all substantial activities by the
company's outside auditors ceased pending approval of the auditors by
the Bankruptcy Court.  Without an independent auditor having been
approved by the Bankruptcy Court, the company says it is simply not
in a position to file required audited financial statements for the
year ended March 31, 1999.

The company has filed with the Securities and Exchange Commission a
no action request seeking permission to suspend normal reporting
during the pendency of the bankruptcy case. The company is unable to
determine the nature or extent of the changes to the financial
statements for the year ended March 31, 1999, but anticipates that
the changes will be significant as a result of the bankruptcy
reorganization that is ongoing.


IRIDIUM: Motorola Tightens-Up, Halting Additional Funding
----------------------------------------------------------------

        What's it going to be, Iridium?
        An out-of-court restructuring?
        Chapter 11 bankruptcy?
        Liquidation?
        
That ultimatum came from Motorola Corp. last week after Iridium's
parent company declared that it will not invest more money into
Iridium unless bankers contribute more.

But Iridium concedes that a prepackaged bankruptcy filing is not
the best way to solve its $800 million bank debt problem, and is
looking instead at getting new loan terms.  Iridium announced July 15
that it would invoke the 30-day grace period it has to pay on the $90
million in interest due on its $1.45 billion outstanding senior
notes.
        
"The big issue at Iridium is not raising money," said Iridium's
Chief Financial Officer Leo Mondale.  "It's getting terms on the
payments that we need to make going forward."

But analysts are convinced Iridium still is clearly in the
bankruptcy zone.

"I think Iridium will be filing a Chapter 11 restructuring, but
this writing has been on the wall," said satellite analyst Marc
Crossman at J.P. Morgan.  "[But] we believe Iridium will approach
bankruptcy with a plan already in place."

One option for Iridium was gaining additional funding from 19
strategic investors which own 86 percent of the company.  However,
none are taking the bait.  Lockheed Martin Corp., which has a 1
percent stake in the company, said it will not invest more funds into
Iridium.  Motorola, which owns 18 percent of Iridium, has pledged
$2.2 billion in funding to the company, but refused Monday to ante up
more unless other investors pledge additional funds.

Meanwhile, Iridium's lack of payment on its bank debt potentially
could hurt its parent company in the long run.  Motorola, which
released second quarter 1999 earnings per share of 44 cents on July
14, will lose 11 cents a share from that result when it writes off
the value of Iridium bonds that it holds.  As a result, Motorola
management said in a conference call with analysts that the company
would not invest any additional money in Iridium unless other
creditors followed suit.  

Unlike past months when Iridium persuaded its banks to delay required
interest payments, bondholders will need to be paid by Aug. 11 and a
new refinancing agreement will be required to prevent an Iridium
bankruptcy.   One bondholder conceded that bankruptcies are time-
consuming and costly.  They are in no one's best interest, but
Motorola management needs to negotiate to avoid potential liability
that could hit if a restructuring fails, he added.  (Mobile Satellite
News 22-Jul-1999)


JOHNS MANVILLE: Discharges Bond; Purchases Shares From Manville Trust
---------------------------------------------------------------------
In an agreement dated June 7, 1999 between Johns Manville
Corporation, a Delaware corporation, and Manville Personal Injury
Settlement Trust the parties agreed to discharge the Second Bond and
terminate the Subsidiary Agreement.  The Trust, owner of 124,927,110
shares of the company's common stock, $.01 par value per share; and
the company, obligor on the Manville Settlement Trusts Second Bond
due March 31, 2015 in favor of the Trust agreed that the company
should  purchase from the Trust a portion of the Trust's shares of
the common stock and, additionally, make payment discharging the
Second Bond.

The parties agreed that at the Second Bond Closing the company would
pay to the Trust an amount of $33,215,716 to discharge the Second
Bond and at the Share Purchase Closing the Trust would sell to the
company a number of shares of the common stock equal to 166,784,284
divided by the average of the closing sales price of the common stock
on the New York Stock Exchange for the twenty trading days from (and
including) June 8, 1999 to (and including) July 6, 1999.  On June 30,
1999, payment of $33,215,716 was made and the Second Bond was
discharged.  On July 7, 1999, the Trust sold 12,196,291 shares of
common stock to the company at an approximate per share price of
$13.68, for an approximate total of $166,784,280, in accordance with
the Share Purchase and Bond Discharge Agreement.

Following the consummation of the sale the Trust has sole power to
dispose of and to vote 112,730,819 shares of common stock of the
company. This represents approximately 76.6% of the outstanding
shares of common stock of Johns Manville Corp.  The Trustees share
the power to direct the disposition or the voting of the 112,730,819
shares of common stock held by the Trust.


LOEHMANN'S: Office Depot Reportedly Eyeing Downtown Seattle Property
--------------------------------------------------------------------
Robert Marshall Wells, a business reporter for the Seattle Times,
says downtown Seattle's commercial real-estate vultures have begun
circling around the space that soon may be vacated by Loehmann's, the
financially troubled New York discount clothing chain that has
announced plans to close more than a dozen poorly performing
locations nationwide.  Loehmann's, which filed for Chapter 11
bankruptcy protection in May, has asked for court permission to shut
stores that are putting a drag on profits.  The Seattle store was on
that list.  Located at 1423 Fourth Ave., the Seattle shop is a prime
downtown storefront, and it's being eyed by several companies,
downtown sources say, Wells relates, speculating that the front-
runner at this point appears to be Office Depot, the Florida-based
office-supply company that operates nearly 800 stores in 44 states
and overseas.  Nonetheless, Wells reports, Seattle's Joshua Green
Corp., which manages the property, is staying mum on the subject.


NATIONAL ENERGY: Croft-Leonminster Reports Zero Stock Ownership
---------------------------------------------------------------
Croft-Leominster, Inc., of Baltimore, Maryland, reports in a
regulatory filing with the Securities and Exchange Commission that it
no longer owns any stock in National Energy Group Inc.


NEXTWAVE PERSONAL: Committee Asks Permission to Retain D.C. Lobbyists
---------------------------------------------------------------------
To mount a campaign to defeat "FCC-sponsored legislation that could
undermine the Committee's rights in the bankruptcy proceeding," the
Official Committee of Unsecured Creditors for Nextwave Personal
Communications, Inc., retained R. Duffy Wall & Associates as
lobbyists.  Former Members of Congress Bill Brewster and Rod
Chandler, Dan Brouillette, former Legislative Director to
Representative Billy Tauzin, the current Chairman of the House
Telecommunications Subcommittee, and David Jory, a former senior
committee staffer on the Senate Finance Committee, lead the
engagement.

In an Application filed with the U.S. Bankruptcy Court in Manhattan
on July 19, 1999, the Committee asks the Court to ratify that
retention and authorize payment of RDW&A's flat $15,000 monthly fee
for its services.  Judge Hardin will consider the Committee's
Application at a hearing to be held on August 3, 1999.

Robert M. Novick, Esq., at Kasowitz, Benson, Torres & Friedman,
represents the Committee's interests in this matter.


PENN TRAFFIC: DDJ Capital Reports Stake in Reorganized Debtor
-------------------------------------------------------------
A statement, jointly filed by DDJ Capital Management, LLC., a
Massachusetts limited liability company, B III Capital Partners,
L.P., a Delaware limited partnership (the "Fund"), and DDJ Capital
III, LLC, a Delaware limited liability company, defines certain
securities held.  Collectively these entities are referred to as the
DDJ Affilites.  DDJ Capital III, LLC is the general partner of, and
DDJ is the investment manager for, the Fund.  DDJ is also the
investment manager for an institutional investor (the "Account") and
an investment advisor to DDJ Canadian High Yield Fund, a closed-end
investment trust established under the laws of the Province of
Ontario Canada ("DDJ Canadian").

The statement indicates that B III Capital Partners, L.P. and DDJ
Capital III, LLC beneficially own 1,197,123 shares, or approximately
6.0%, of Penn Traffic.   DDJ Capital Management, LLC, as investment
manager to the Fund and the Account and as investment advisor to DDJ
Canadian may be deemed to beneficially own 1,963,742 shares, or
approximately 9.8% of the outstanding shares of Penn Traffic.  Each
of the aforementioned entities, as stated,  has sole power to vote
and to dispose of the shares indicated.

On May 27, 1998, Penn Traffic's plan of reorganization was declared
effective by the U.S. Bankruptcy Court in Delaware.  Prior to the
plan, the Fund owned $5,040,000 principal amount of 10.25 Senior
notes, $11,810,000 principal amount of 10.375 Senior notes,
$6,230,000  principal amount of 10.65 Senior notes, $14,485,000
principal amount of 8.625 Senior notes and $2,110,000 principal
amount of 11.5 Senior notes in Penn Traffic and $6,460,000 principal
amount of 11.5 Senior notes in P&C Food Markets.  Pursuant to the
terms of the plan, the old notes will be exchanged for new
senior notes and new common stock.  As a result, according to the
Fund's report, the Fund may be deemed to beneficially own a total of
1,197,123 shares.   The Account owned $1,920,000 principal amount of
10.25 Senior notes, $4,790,000 principal amount of 10.375 Senior
notes, $3,790,000 principal amount of 10.65 Senior notes, $5,410,000
principal amount of 8.625 Senior notes and $2,735,000 principal
amount of 11.5 Senior notes in the company and $3,050,000 principal
amount of 11.5 Senior notes in P&C Food Markets to be exchanged for
561,981 shares.  DDJ Canadian owned $1,730,000 principal amount of
10.25 Senior notes, $1,900,000 principal amount of 10.375 Senior
notes, $980,000 principal amount of 10.65 Senior notes, $1,380,000
principal amount of 8.625 Senior notes and $905,000 principal amount
of 11.5 Senior notes in the company and $1,000,000 principal amount
of 11.5 Senior notes in P&C Food Markets to be exchanged for 204,638
shares.

On June 30, 1999, the Fund purchased, on a when-issued basis, 2,500
shares for an aggregate purchase price of $30,625.00.  All but the
2,500 shares of the shares described were acquired under the Plan.  
2,500 shares were acquired on a when-issued basis in pursuit of
specified investment objectives established by the investors in the
Fund.  DDJ and the DDJ Affiliates indicates they may continue to have
the Fund, the Account and DDJ Canadian purchase shares subject to a
number of factors, including, among others, the availability of
shares for sale at what they consider to be reasonable prices and
other investment opportunities that may be available to the Fund, the
Account and DDJ Canadian.

DDJ and the DDJ Affiliates intend to review continuously the equity
position of the Fund, the Account and DDJ Canadian in Penn Traffic.
Depending upon future evaluations of the business prospects of the
company and upon other developments, including, but not limited to,
general economic and business conditions and money market and stock
market conditions, DDJ and the DDJ Affiliates indicate they may
determine to cease making additional purchases of shares or to
increase or decrease the equity interest in the company by acquiring
additional shares, or by disposing of all or a portion of the shares.


PRIMARY HEALTH: Needs $3.2 Million Increase in DIP Financing
------------------------------------------------------------
Because of (i) a delay in receiving payments from their third-party
payors, caused by computer malfunctions experienced by a billing
transmission subcontractor and (ii) an earlier-than-expected due date
set by the State of Ohio for the next "HCPA Tax" installment payment,
Primary Health Systems, Inc., finds itself in need of another $3.2
million of working capital financing, above what the existing $23.3
million DIP Facility backed by First Union National Bank and Key
Corporate Capital, Inc., can provide.  

First Union and Key have agreed, subject to Judge Walrath's approval,
to extend the additional financing to solve the Debtors' cash flow
problem.  Under the terms of a First Amendment to the Credit
Agreement, the Lenders will increase their Commitment to $26.5
million.


SOUTHERN MINERAL: $20 Million Equity Infusion Backs Prepack Plan
----------------------------------------------------------------
Southern Mineral Corp. announced that its board of directors has
approved a restructuring involving a $20.6 million equity infusion,
the sale of certain Texas properties and an exchange offer for
debentures due 2007, according to a newswire report.  EnCap
Investments L.L.C. will provide the $20.6 million equity investment,
contingent upon several factors, including the exchange of at least
98% of Southern Mineral's outstanding convertible debentures for a
combination of cash, common stock and warrants to purchase common
stock and receipt of certain third-party consents. If the exchange
offer fails, but certain other conditions are met, Southern Mineral
may proceed with the EnCap investment and the restructuring through a
pre-packaged chapter 11 plan.


TED PARKER: Case Summary and 20 Largest Unsecured Creditors
-----------------------------------------------------------

Debtor:  Ted Parker Home Sales, Inc.
         401 East 11th Street
         Lumberton, NC 28358

Court: District of Delaware

Case No.: 99-2729      Filed: 07/22/99    Chapter: 11

Debtor Affiliates:     Housing Retailer Holdings, Inc.
                       Holding Company
                       Bankruptcy Case No. 99-2251 (MFW)

                       H Squared, L.L.C.
                       Holding Company
                       Bankruptcy Case No. 99-2250 (MFW)

                       Carolina Home Sales, Inc.
                       Subsidiary
                       Bankruptcy Case No. 99-2730 (MFW)

Debtor's Counsel: Norman L. Pernick, Esq.
                  Saul, Ewing, Remick & Saul, LLP
                  222 Delaware Avenue
                  P.O. Box 1266
                  Wilmington, DE 19899

          Total Assets:       More than $100,000,000
          Total Liabilities:  More than $100,000,000

20 Largest Unsecured Creditors:

   Name                                             Amount
   ----                                             ------
Deutsche Financial Services                        Unknown
Transamerica Commercial Finance Corporation        Unknown
Green Tree Financial Servicing                     Unknown
Deere Credit, Inc.                                 Unknown
Bombardier Capital, Inc.                           Unknown
Associates Housing Finance                         Unknown
Champion Enterprises, Inc.                   $8,259,335.43
Kaufman                                         867,857.25
Palmetto Marketing                              549,934.72
Williamsburg House                              247,129.60
Parker Manufacturing                            172,400.00
Lowe s Companies, Inc.                          164,593.17
Ted Parker                                      161,733.33
Ardshiel, Inc.                                  142,731.08
Goldberg Company Incorporated                   109,834.09
Karobway Furniture                              106,834.98
O'Rourke Bros.                                   70,351.65
Shaw Office Supplies                             61,419.98
Rogers Electric.                                 58,900.00
Branch Banking & Trust                           56,566.65


THORN APPLE: Court Approves $115 Million Asset Sale to IBP
----------------------------------------------------------
Thorn Apple Valley President Joel Dorfman sat silently in the back of
the room as his struggling meat processing company was finally sold
Thursday, ending a 47-year legacy and a minor bidding war.  IBP
purchased the company for $115 million, the huge meatpacker's second
offer for the Southfield firm.  In June, after Thorn Apple Valley
announced its intent to sell to IBP for $112 million, Excel Corp. of
Wichita, Kan. had offered $114 million.  IBP of Dakota City, Neb., is
one of the country's largest meatpackers, with 45 processing plants
and sales of more than $12.8 billion last year.

The sale was approved by Judge Ray Reynolds Graves in U.S. Bankruptcy
Court in Detroit.  He ruled that all proceeds will go to secured
creditors.   Unsecured creditors, such as the City of Detroit, which
is owed about $ 6.5 million in back taxes and utilities, are unlikely
to be paid. Shareholders also won't receive any distribution. Thorn
Apple Valley had owed all its creditors about $ 182 million.

Dorfman, who declined to comment Thursday, said previously that the
company would continue to operate under the Thorn Apple Valley logo,
and employees would keep their jobs. The company has about 3,100
employees, including 530 workers at a smoked-meats plant on Tillman
Street in Detroit.  The company was founded by Dorfman's father,
Henry Dorfman, who started with one plant in 1952 in Detroit's
Eastern Market. It made hot dogs, luncheon meats and smoked sausages,
and maintained a slaughterhouse in the market until last year.  Thorn
Apple Valley had endured years of losses. But after the costly
January recall of 30 million pounds of meat, and a quarterly loss of
$19.2 million, it sought protection from creditors under Chapter 11
of the U.S. Bankruptcy Code in March.  (Detroit Free Press 23-Jul-
1999)


TRACE INTERNATIONAL: Case Summary and 20 Largest Unsecured Creditors
--------------------------------------------------------------------

Debtor:   Trace International Holdings, Inc.
          aka/dba/fka '21' International Holdings, Inc.
          375 Park Avenue
          New York, NY 10152

Court: Southern District of New York

Case No.: 99-10425-SMB   Filed: 07/21/99    Chapter: 11

Debtor Affiliates:     Trace Foam Sub, Inc.
                       Bankruptcy Case No. 99-10426-SMB

Debtor's Counsel: Barry N. Seidel, Esq.
                  Sonnenschein Nath & Rosenthal
                  1221 Avenue of the Americas
                  New York, NY 10020
                  (212) 768-6700
                  Fax : 212-768-6800
                  Email: bns@sonnenschein.com

          Total Assets:       Negative $136,322,000
          Total Liabilities:  $266,455,000

               Based on NON-GAAP accounting, as of December 31, 1998.

5 Largest Secured Credtors:

   Name                           Nature of Debt            Amount
   ----                           --------------            ------
Bank of Nova Scotia               Bank Loan              $170,000,000
Recticel Foam Corporation         Loan                    $38,000,000
Societe Generale de Belgique      Loan                    $24,000,000
John Rallis & Rallis Foundation   Put Obligation           $6,500,000
Republic Bank of New York         Loan Guarantee           $1,000,000

20 Largest Unsecured Creditors:

   Name                           Nature of Debt            Amount
   ----                           --------------            ------
Bank of Nova Scotia               Bank Loan              $170,000,000
Recticel Foam Corporation         Loan                    $38,000,000
Societe Generale de Belgique      Loan                    $24,000,000
United Technologies Corp.         Environmental Liab.      $3,200,000
Willkie Farr & Gallagher          Legal Services           $2,000,000
Michael Schwartzbard & Associates Accounting Services        $500,000
Rocco Barbieri                    Severance Agreement        $450,000
Peter J. Cohen                    Deferred Compensation      $250,000
Al Pheiffer                       Deferred Compensation      $250,000
AIG Risk Management, Inc.         Insurance Carrier          $250,000
Chester A. Devenow                Severance Agreement        $215,000
Andrea Farace                     Stock Grant                $175,000
Robert Herzog                     Deferred Compensation      $150,000
Rebecca Hatch                     Stock Grant                $113,000
PricewaterhouseCoopers LLP        Accounting Services        $100,000
Geoffrey Symonds                  Consulting Agreement       $100,000
Eastman & Smith                   Legal Services              $80,000
Kirkpatrick & Lockhart, LLP       Legal Services              $75,000
J&H Marsh & McLennan              Brokerage Services          $43,000
Bankers Trust, as Trustee         Environmental Clean-Up      $41,000


TRACE INTERNATIONAL: 46% Shareholder Foamex Not Fearful of Chapter 11
---------------------------------------------------------------------
Foamex International Inc. (Nasdaq: FMXI) has been informed that Trace
International Holdings, Inc., a New York-based holding company, and
one of its subsidiaries, which together hold approximately 46 percent
of the Company's common stock, filed a petition for relief under
Chapter 11 of the bankruptcy code in Federal court in New York City
on July 21, 1999.  Foamex stated that Trace's bankruptcy filing does
not constitute a change of control under the provisions of the
Company's various bank agreements, public debt and promissory notes.
The Company noted that if the bankruptcy court allowed Trace's
creditors to foreclose on, and take ownership of the Foamex common
stock held by Trace, or otherwise authorized a sale or transfer of
these shares, certain acceleration and put rights under the terms of
the bank agreements, public debt and promissory notes could be
triggered.  The Company said that it will seek to resolve the issues
that may arise if the change of control provisions are triggered in
the future, including waivers of such provisions and/or refinancing
certain debt, if necessary. There is no assurance that the Company
will be able to obtain such waivers or financing. As of March 31,
1999 the Company had approximately $789.1 million of debt
outstanding.  Mr. Johnson said, "Our lenders recognize the strong on-
going potential of Foamex and continue to be supportive of the new
leadership.  In addition, they recognize the benefits of operating
independently of Trace. I believe that Foamex has the potential to be
far more profitable than it has been in recent history. We look
forward to the continued support of our customers, suppliers and
employees as we address the Company's development." Mr. Johnson added
that Trace's filing should not have a negative impact on Foamex's
day-to-day operations.



VENTAS, INC.: Will Not Declare or Pay Third Quarter Dividend
------------------------------------------------------------
Ventas, Inc. (NYSE:VTR), consistent with its previously announced
position, said that it will not declare or pay a dividend at this
time. The Company expects that it will once again pay a dividend when
Vencor, Inc. (OTC:VCRI), its principal tenant, resolves the financial
difficulties contributing to the uncertainties about Vencor's
continuing ability to make rent payments to the Company. There can be
no assurances that Vencor will resolve its financial difficulties and
pay the rent due the Company. The Company still intends to qualify as
a REIT for the year ending December 31, 1999. The Company is not
required to distribute its taxable income in quarterly installments
in order to qualify as a REIT. The Company will continue to evaluate
its dividend policy in light of future developments in Vencor's
financial performance and ongoing discussions regarding a global
restructuring of Vencor's capital structure.  Ventas, Inc. is a real
estate company whose properties include 219 nursing centers, 45
hospitals and eight personal care facilities operated in 36 states.


WIRELESS ONE: To Become Wholly-Owned Subsidiary of MCI WorldCom
---------------------------------------------------------------
MCI WorldCom, the long-distance giant based in Jackson, Miss., owns
essentially all of Wireless One's debt and has promised to provide
the company with more than $36 million in financing, Dow Jones News
reports.  Wireless One, which filed in February for Chapter 11
bankruptcy protection, said it negotiated a plan with MCI WorldCom
under which its existing stockholders will receive cash totaling
$22.6 million on a pro rata basis, or $1.31 a share.  The amended
plan must be approved by the bankruptcy court, the company said.

                               **********

The Meetings, Conferences and Seminars column appears in the TCR each
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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
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Information contained herein is obtained from sources believed to be
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