TCR_Public/990816.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, August 16, 1999, Vol. 3, No. 157                                              
                           
                    Headlines

ABLE CUSTOM YACHTS: Files For Protection From Creditors
AMPACE CORP: Seeks Extension of Exclusivity
BMJ MEDICAL: Seeks Approval of Settlement With Boca Raton
BMJ MEDICAL: Seeks Sale of Bakersfield Surgery Center
BMJ MEDICAL: Seeks Sale of Lake Tahoe Surgery Center

BUILDERS TRANSPORT: Compromise Settlement and Agreement
CHERRYDALE FARMS: Hearing To Consider Disclosure Statement
CONXUS COMMUNICATIONS: Panel Seeks Documents and Depositions
CRIIMI MAE: Fitch IBCA Affirms Rating of Certificates
DAEWOO: U.S. Investment Firm to Purchase Assets for $3.2 Billion

DEVLIEG-BULLARD: Final Order Authorizing Financing
EDC DESIGNS: Kentucky Furniture Store Files Chapter 11
FEDCO: Seeks Extension of Time To Assume/Reject Leases
GENEVA STEEL: Executives Expect Part Of Government Loans
GENEVA STEEL: Moves On HIsmelt Plan

GULF STATES STEEL: Debtor Taps Professionals
LIVENT: Former Employee Agrees to SEC Settlement
LOEWEN: Bankruptcy Generates Work For Bingham Dana
LOEWEN: Reports Second Quarter Results
NEUROMEDICAL SYSTEMS: Order Authorizes Retention Consultants

NEUROMEDICAL SYSTEMS: Extension of Exclusivity
PRINCETON HOSPITAL: Workers Still Awaiting Checks
RENAISSANCE COSMETICS: Taps Mills Potoczak As Tax Accountants
SERVAL CORP: Files For Protection Under Canadian Bankruptcy Law
SERVICE MERCHANDISE: Fitch IBCA Affirms Rating

SOURCEONE WIRELESS: Proposed Sale of Assets
STARTER CORP: Committee Objects To Extension of Exclusivity
TIRE WAREHOUSE: Seven Operations Sold At Bankruptcy Auction
UNITED COMPANIES: Equity Taps Saul, Ewing as Local Counsel

                    **********

ABLE CUSTOM YACHTS: Files For Protection From Creditors
-------------------------------------------------------
The boat-building company, also known as Trenton Marine Inc.,
owes $ 252,753.62, according to papers filed in U.S. Bankruptcy
Court in Bangor last month.

The company produces semicustom and custom powerboats and
sailboats, which vary in interior arrangements, deck layouts and
engine details.  The business has been based in Trenton since
1991, said the company's general manager, Rupert Lyle.

Locally, the company owes $ 16,564.25 to Hancock County in back
rent for property the company leases near the Hancock County-Bar
Harbor Airport; $ 13,269.10 to C.W. Paine Yacht Design in Camden;
and $ 2,670.58 to Acadia Sails in Southwest Harbor.  Other debts
range from $ 61,000 owed to a Florida resident to about $ 3,100
to Sailing magazine in Wisconsin.

Trenton Marine is drafting a deal with a company associated with
Southwest Harbor-based Morris Yachts Inc., stating an expression
of intent to buy Trenton Marine's assets.  A federal bankruptcy
judge in Bangor will evaluate the merits of any objections about
the sale and eventually decide whether to approve it, possibly
within two months.

Able Custom Yachts builds three production boats, including
Able 42, a sailboat, 36-foot Wolf-class powerboats, and an Apogee
50 sailboat.

Able Custom Yachts hopes to continue to manufacture custom-made
power boats and sailboats with its 35 employees.


AMPACE CORP: Seeks Extension of Exclusivity
-------------------------------------------
The debtors, Ampace Corporation and Ampace Freightlines, Inc.
seek an extension of the exclusive period during which the
debtors may file a plan of reorganization and solicit acceptances
thereof.  A hearing on the motion is scheduled for September 15,
1999 at 9:30 AM before the Honorable Peter J. Walsh, US
Bankruptcy Court for the District of Delaware, Wilmington.

The debtors have been involved in the negotiation of an amended
plan and Disclosure Statement that incorporate the terms of the
proposal from Blackwater Capital Partners II, LP for the purchase
of the common stock of Ampace Corporation. The Disclosure
statement hearing has been continued until August 18, 1999, and
the debtors anticipate that they will file the plan no later than
August 16, 1999.  Because of the delay resulting from the
negotiations with Blackwater and the Committee, the debtors will
not be in a position to seek acceptances of the Amended Plan
prior to the August 12, 1999 expiration of the debtors'
solicitation period.  The debtors seek an extension of the
Solicitation Period for 60 days, through and including October
11, 1999.


BMJ MEDICAL: Seeks Approval of Settlement With Boca Raton
---------------------------------------------------------
BMJ Medical Management, Inc. seeks approval of a settlement
agreement with Boca Raton Orthopedic Group, Inc. and
authorization to reject a management services agreement and sale
of related assets, assumption and assignment of related lease and
rejection of a lease.

The Settlement Agreement with Boca Raton Orthopedic Group
provides for an integrated set of transactions:

Termination of the management services agreement, Transfer to
BROG Medical Group of the title to accounts receivable, rejection
of a real property lease, and execution of releases.

The debtor will receive a cash payment of $2.92 million,
cancellation of BMJ's obligation to issue any shares of capital
stock in connection with the Stock Purchase Agreement, release of
claims and a right to 50% of any consideration in excess of $2.92
million received by BROG Medical Group and the Physicians for the
sale of capital assets or intangibles within 12 months from the
Closing Date.


BMJ MEDICAL: Seeks Sale of Bakersfield Surgery Center
-----------------------------------------------------
A certain limited partnership, Surgical Associates of
Bakersfield, (SAB) of which BMJ of Bakersfield, Inc. is general
partner, operates the Kern Surgery Center in Bakersfield,
California.  BMJ owns all of the outstanding equity interests in
BMJ of Bakersfield, Inc.

SAB entered into an Asset Purchase Agreement with Millennium
Surgery Center which provides for Millennium to acquire
substantially all of the assets related to the Surgery Center for
$400,000.


BMJ MEDICAL: Seeks Sale of Lake Tahoe Surgery Center
----------------------------------------------------
BMJ has entered into an Acquisition Agreement with ProMedCo
Management Company which provides for ProMedCo of Northern
Nevada, Inc. to acquire the assets related to the Lake Tahoe
Surgery Center.  The purchase price is $5.035 million, payable in
not less than $4 million in cash.

BMJ has determined that retaining the assets, all of which are
located in or relate to operations in Nevada where BMJ has no
other operations does not provide the best long-term value to its
estates and creditors.  BMJ and its financial advisor conducted
an extensive marketing campaign for the assets.


BUILDERS TRANSPORT: Compromise Settlement and Agreement
-------------------------------------------------------
The debtors, Builders Transport, Inc. et al. seek approval of a
compromise stipulation and agreement.  The agreement provides
allowance of a claim against the estate of Builders Transport,
Inc. which is entitled to administrative expense priority in the
amount of $150,000.  Associates can pursue its application for
allowance of administrative expense claims in the sum of
approximately $3.2 million.


CHERRYDALE FARMS: Hearing To Consider Disclosure Statement
----------------------------------------------------------
Cherrydale Farms, Inc. et al., debtors, filed a plan of orderly
liquidation.  A hearing to consider approval of the Disclosure
Statement shall be held before the Honorable Peter J. Walsh at
the US Bankruptcy Court for the District of Delaware, Marine
Midland Plaza, 824 Market Street, 6th Floor, Wilmington at 3:00
PM on September 22, 1998.


CONXUS COMMUNICATIONS: Panel Seeks Documents and Depositions
------------------------------------------------------------  
Conxus Communications Inc.'s official committee of unsecured
creditors is seeking an order requiring Motorola Inc. to produce
documents and submit to requests for depositions. "Viewed
in the context of the sweeping releases to be awarded to Motorola
under the Final DIP Financing Order, the committee's request is
not unduly burdensome and the extremely limited discovery to
which Motorola would consent is patently inadequate," the panel's
August 4 motion argues. The narrowband PCS network developer
received approval on July 1 of a $17 million debtor-in-possession
(DIP) credit agreement with Motorola as well as permission to use
cash collateral of pre-petition lenders Chase Manhattan Bank and
Glenayre Electronics Inc.  (The Daily Bankruptcy Review and ABI
Copyright c August 13, 1999)


CRIIMI MAE: Fitch IBCA Affirms Rating of Certificates
-----------------------------------------------------
First Union-Lehman Brothers Commercial Mortgage Trust's
commercial mortgage pass-through certificates, series 1997-C1, $
165.2 million class A-1, $ 318.0 million class A-2, $ 395.8
million class A-3, and interest-only class IO are affirmed at
'AAA' by Fitch IBCA. In addition, the $ 78.3 million class B is
affirmed at 'AA', the $ 71.8 million class C at 'A', the
$ 71.8 million class D at 'BBB', the $ 19.6 million class E at
'BBB-' and the $ 71.8 million class F at 'BB'. The $ 13.1 million
class G, $ 26.1 million class H, $ 13.1 million class J, and the
$ 26.1 million class K certificates are not rated by Fitch IBCA.
The affirmations follow Fitch IBCA's annual review of the
transaction, which closed in April of 1997.

The certificates are collateralized by 276 fixed rate multifamily
and commercial mortgage loans. As of the July 1999 distribution
date, the pool's aggregate certificate balance declined by 2.7%,
from $ 1.31 billion at closing to $ 1.27 billion. Four loans have
paid off since closing. One loan, representing 0.6% of the pool's
unpaid principal balance, is 30 days delinquent. A total of nine
loans (2.97%) are specially serviced by CRIIMI MAE Services,
L.P. (CRIIMI MAE). Seven of these specially serviced loans
(1.7%) are 90 days delinquent; they include six loans (1.6%),
collateralized by properties where Service Merchandise is either
a sole or major tenant.

Service Merchandise Co. (NYSE: SME) filed for Chapter 11
bankruptcy protection on March 27, 1999. The borrower, a wholly
owned subsidiary of Service Merchandise Co., also declared
Chapter 11 bankruptcy. CRIIMI MAE, the special servicer, is
currently negotiating with Service Merchandise Co. regarding
possible resolution. Of the six stores in this pool, Service
Merchandise Co. has closed only its Buffalo, NY location. It is
under a contract for sale, subject to approval by bankruptcy
court. Service Merchandise Co. has not announced plans
to close any of the remaining stores.

CRIIMI MAE collected year-end 1998 property financial statements
for 170 loans, representing 72% of the pool's unpaid principal
balance. Outstanding advances total $ 2.5 million. A total of
seven loans, representing 1.4% of the pool balance, had a year-
end 1998 debt service coverage ratio below 1.0 times.

A stress scenario was applied whereby loans identified as
potential problems were assumed to default. Under this stress
scenario, subordination levels would be approaching those at
closing and justify the rating actions. Fitch IBCA will
continue to monitor this transaction, as surveillance is ongoing.


DAEWOO: U.S. Investment Firm to Purchase Assets for $3.2 Billion
----------------------------------------------------------------
Walid Alomar & Assoc., a U.S. investment firm, has agreed to
purchase some assets and operations of South Korea's Daewoo
Electronics, a subsidiary of Daewoo Group, to the tune of
US$3.2 billion, according to Reuters. Previously, creditors had
rescued the Daewoo Group from bankruptcy last month in exchange
for US$8.3 billion in collateral, but Daewoo and the creditors
were still working on how Daewoo Group should be restructured.
Daewoo and Walid signed a preliminary agreement on July 9, but
the deal is scheduled to be finalized on September 9, pending the
approval of Daewoo's creditors and shareholders. Daewoo
Electronics president said that Walid Alomar, son of a former
Saudi Arabian minister, had agreed to take over Daewoo's sales
networks and plants, valued at more than US$3 billion, and that
Daewoo would use the proceeds from the sale to redeem its
liabilities, which were valued at US$4.8 billion at the end of
June. Alomar formed New Daewoo Electronics (New DEC) on August 6.
(ABI 13-Aug--99)


DEVLIEG-BULLARD: Final Order Authorizing Financing
--------------------------------------------------
The US Bankruptcy Court for the Northern District of Ohio entered
an order authorizing the debtor, Devlieg-Bullard, Inc. to obtain
secured post-petition financing on a super priority basis under a
commitment of $30 million under an agreement among The CIT
Group/Business Credit, Inc., BNY Factoring, LLC any additional
financial institutions which become parties to that Credit
Agreement and CITBC, as agent, in the form of guaranties, in
respect of Letters of Credit issued for the debtor's account and
for the debtor to execute an agreement with respect to the post
petition financing and revolving loan promissory notes and term
loan promissory notes.


EDC DESIGNS: Kentucky Furniture Store Files Chapter 11
------------------------------------------------------
EDC Designs Inc., which operated as The Best of Heleringer's, a
furniture retailer in Middletown, Ky., filed chapter 11 in the
U.S. Bankruptcy Court for the Western District of Kentucky in
Louisville on July 30, Business First reported. EDC's attorney,
Robert W. Adams III, said that a deal could soon be completed
with a Northeast inventory company, enabling the store to
reorganize under new management. The retailer's liabilities
exceed $1 million and its assets are between $50,000 and $1
million. The furniture chain itself, owned by John Heleringer
and other partners, filed for bankruptcy in October 1996. (ABI
13-Aug-99)


FEDCO: Seeks Extension of Time To Assume/Reject Leases
------------------------------------------------------
The debtor, Federal Employees' Distributing Company, d/b/a FEDCO,
Inc. seeks an extension of time until the earlier of December 31,
1999 or the effective date of its reorganization plan, whichever
is earlier to assume or reject its unexpired leases of
nonresidential real property.

The 60-day initial period expires on September 7, 1999.  The
hearing on the debtor's disclosure statement is not scheduled
until September 15, 1999, and if approved, the confirmation
hearing will not occur until late October or November, 1999.  The
debtor will not be able to determine by September 7, 1999 whether
it will assume or reject the unexpired leases.

If the unexpired leases are deemed rejected and the debtor forced
to surrender its leased properties, it would be unable to
consummate the Dayton Hudson Agreement and would, potentially,
forfeit the anticipated $119.5 million in proceeds.  


GENEVA STEEL: Executives Expect Part Of Government Loans
--------------------------------------------------------
Geneva Steel Co.'s executives expect to get part of the $ 1.5
billion in guaranteed loans the federal government is offering
beleaguered steel, oil and natural gas companies to help
industries rocked by low prices.

Geneva President Joe Cannon and Vice President Ken Johnsen met
face-to-face with President Clinton and other Cabinet heads last
week to discuss specific ways to help resuscitate stagnant
domestic steel companies.

Geneva, which filed for Chapter 11 protection last year, must
still get a loan from the private sector to solve its financial
woes. But the federal government's recent aid package would
guarantee any loans for as little as $ 25 million and as much as
$ 250 million.

Johnsen characterized the government's action as a "credit
enhancer that allows companies who might be denied a loan to
receive a loan."

"That obviously makes it much easier to obtain financing," he
said.

Johnsen said he is "very confident" Geneva meets the condition
for a loan that the company be "in a financially distressed
position."

The House of Representatives and the U.S. Senate have passed the
steel aid package. The bill now awaits Clinton's signature.
Johnsen said any money Geneva receives would go toward Geneva's
climb from bankruptcy.


GENEVA STEEL: Moves On HIsmelt Plan
-----------------------------------
According to a report in Coal Outlook, July 26, 1999, Geneva
Steel still plans to install a $1 billion facility using the
HIsmelt direct-reduction steel process.

That facility could use cheap, non-metallurgical coal available
in Utah in the production of steel. Geneva currently has to bring
in by train expensive met coal from Pennsylvania for its coking
facilities. The HIsmelt unit would produce 3,000 metric tons/day
of liquid metal.

The U.S. Dept. of Energy, which would put up $150 million of the
project cost, hosted a public "scoping" meeting on the project in
Utah on July 15. An environmental impact statement on the project
is being prepared. A first draft of the EIS should go up for
public comment next spring, with a final EIS issued by fall 2000.
Design and permitting work is underway and should be complete by
December 2000. Geneva and DOE hope to get the facility built by
2003.


GULF STATES STEEL: Debtor Taps Professionals
--------------------------------------------
The debtor, Gulf States Steel, Inc. of Alabama applied for two
separate orders authorizing the retention of Ernst & Young LLP as
accountants for the debtor and authorizing the retention of
Lazard Freres & Co., LLC as the debtor's investment banker.

The Official Committee of Noteholders requests authorization to
retain Stroock & Stroock & Lavan LLP as its counsel effective as
of July 1, 1999 and to approve retention of Najjar Denaburg, PC
as local counsel.  The Committee seeks to retain Houlihan, Lokey
Howard & Zukin as financial advisors.


LIVENT: Former Employee Agrees to SEC Settlement
------------------------------------------------
A former corporate secretary and former counsel for bankrupt
theater production company Livent Inc. of Canada agreed to settle
allegations made by the Securities and Exchange Commission (SEC)
that he participated in an attempt by Livent's top executives to
manipulate the company's financial results, The Wall Street
Journal reported. Although he did not admit any wrongdoing as a
term of the settlement, Jerald M. Banks agreed to pay a $25,000
fine and be barred from practicing or appearing before the SEC as
an attorney for five years. Banks is Livent's sixth former
employee to settle with the SEC over allegations that the company
inflated its earnings by hiding expenses and improperly recording
revenue. According to the SEC, Banks's part in the scheme
involved negotiating, drafting and finalizing three secret
agreements to transactions that allegedly generated revenue for
Livent, and that the scheme made Livent's financial situation
look better than it actually was. Livent itself, which produces
such Broadway shows as "Ragtime" and "Fosse," settled SEC
allegations in January via a cease-and-desist order after new
management found irregularities in the company's accounting
records. Livent filed for bankruptcy in November and has agreed
to sell most of its assets to SFX Entertainment Inc. (ABI 13-Aug-
-99)


LOEWEN: Bankruptcy Generates Work For Bingham Dana
--------------------------------------------------
The Connecticut Law Tribune reports on August 2, 1999 that
The Chapter 11 case of The Loewen Group, Inc. is likely the most
voluminous bankruptcy filing in U.S. history.

In June, The Loewen Group Inc., based in Vancouver, British
Columbia, commenced bankruptcy proceedings both in the United
States and in Canada.

The simultaneous filing of roughly 870 bankruptcy petitions in
U.S. Bankruptcy Court in Delaware, where the case is pending,
generated an unheard of $750,000 in filing fees, according to
Evan D. Flaschen, a partner in Bingham Dana's Hartford office.
   
Just printing out all the receipts took the court two hours, says
Flaschen, who, along with other lawyers at the Boston-based firm,
is representing the official committee of unsecured Loewen
creditors.

The Loewen Group Inc. owns or operates more than 1,100 funeral
homes and more than 400 cemeteries across the United States,
Canada and the United Kingdom. In a statement, Loewen Chairman
John S. Lacey says filing for Chapter 11 will enable Loewen to
restructure its debt and implement a new business plan.

Lacey attributes the company's financial woes, in part, to its
recent focus on acquiring cemeteries rather than expanding its
funeral home operations, which he calls "our most profitable,
core assets."

As of March 31, Loewen and its subsidiaries had approximately
$4.5 billion in assets and $3.6 billion in liabilities, making
its Chapter 11 case the largest bankruptcy filing so far this
year, Flaschen contends.

The company, he says, projects that its restructuring will take
between 12 and 18 months to complete.

Also representing the creditors committee are: partners William
E. Kelly, Gregory W. Nye and Ronald J. Silverman, counsel Judith
H. Friedman, and associates Anthony J. Smits and Anna M.
Gustafson, all of Bingham's Hartford office. (All of them joined
Bingham through its recent merger with what was Hartford's Hebb &
Gitlin.) Bingham Boston-based partners Donald-Bruce Abrams and
John S. Brown, and Peter D. Schellie, a partner in the firm's
Washington, D.C. office, are also taking part in the effort.

Handling the Chapter 11 case for the debtors are partners Richard
M. Cieri, Paul E. Harner and Robert J. Graves, and associate
Charles M. Oellermann, of Cleveland-based Jones, Day, Reavis &
Pogue.

In addition, partners Eric A. Henzy, Robert U. Sattin and Bruce
M. Lutsk, of Hartford's Reid and Riege, are counsel to State
Street Bank & Trust Co. in Hartford, which, as the indentured
trustee, represents all of the Loewen's bondholders.


LOEWEN: Reports Second Quarter Results
--------------------------------------
The Loewen Group Inc. (NYSE: LWN), (Toronto: LWN), (ME: LWN),
announced revenues for the second quarter ended June 30, 1999, of
$264.1 million, compared to approximately $280.0 million in the
same period last year after excluding the 124 cemeteries sold on
March 31, 1999.  After providing for $67.2 million of mainly non-
cash reorganization charges relating to the Company's June 1,
1999 Chapter 11 and Companies' Creditors Arrangement Act (CCAA)
filings, and two non-operating charges totaling $28.6 million,
the net loss for the second quarter of 1999 was $105.3 million or
[1.44) per share. Earnings from operations before impairment
charges were $28.4 million in the second quarter of 1999,
compared to $51.2 million for the same period last year,
principally as a result of lower sales and higher costs in the
Company's cemetery and pre-need funeral divisions.

Funeral home revenues for the quarter were $149.6 million, a
slight decrease of 1.0 percent from $151.2 million in the second
quarter of 1998 due to lower pre-need funeral sales and other
revenue. Approximately 39,000 funerals were performed in the
quarter, an increase of 1,200 over the same period last year. On
a same store basis, the number of funerals performed in the
second quarter of 1999 was down 2.0 percent. Same store costs
increased by 0.8 percent, and gross margins decreased to 33.4
percent compared to 36.8 percent in Q2 1998.

Second quarter cemetery revenues were down 27.3 percent to $90.6
million, compared to $124.5 million in Q2 1998. This reflects the
sale of 124 cemeteries on March 31, 1999 and the Company's
previously announced reduction and restructuring of its pre-need
sales program.  Cemetery costs included approximately $3.8
million of additional environmental and marketing costs. These
factors reduced cemetery gross margins to 20.2 percent from 26.6
percent for the same period last year.

"During the past few months," Mr. Lacey added, "our efforts have
been focused on maintaining a high level of service for our
customers during the reorganization process. While we are working
on our restructuring plan, we are also mindful of the needs of
our day-to-day operations. By securing $200 million in DIP
financing with First Union National Bank in June, we are able to
properly fund operations and continue serving our customers with
the attention they deserve."

"Although reorganization is a difficult process for the Company,
we believe that we are making good progress with the plans to
reorganize the Company. We are working hard towards removing both
financial and operational hurdles which have impeded the Company
for the past few years," Mr. Lacey concluded.

The Company's reorganization plan to be submitted to the Courts
will address the primary objectives of improving the Company's
balance sheet, reducing and restructuring debt, decreasing
overhead, enhancing funeral and cemetery operations, and
achieving greater accountability for cemetery profitability and
cash flow.

The non-operating charges comprised a $15.1 million pre-tax
asset impairment charge related to two cemeteries considered
probable for sale and a $13.5 million loss on the sale of 124
cemeteries and three funeral homes on March 31, 1999 for gross
proceeds of $193 million. The loss recorded in the second quarter
reflects the final adjustments of the net book values, sale
proceeds and other adjustments contained in the sales
agreement.

The $67.2 million in reorganization costs arising from the filing
of Chapter 11 and CCAA included non-cash charges of $27.2 million
in executory contracts submitted for rejection, $21.7 million in
deferred debt issue costs written off, and a provision for a $9.8
million option liability in connection with the PATS senior
notes.

On June 1, 1999, the Company filed for protection under Chapter
11 in the United States. The Company and its subsidiaries are
operating their businesses as debtors-in-possession (DIP). The
bankruptcy petitions provide an opportunity to re-examine and
begin implementing the Company's revised strategies while working
to restructure its indebtedness.

As a result of the Chapter 11 and CCAA filings, no principal or
interest payments will be made on most pre-petition date US debt
obligations without Court approval or until a plan of
reorganization providing for the repayment terms has been
submitted and confirmed by the Courts and has become effective.
Interest on unsecured and undersecured pre-petition date debt
obligations subject to compromise has not been accrued after the
petition date. Interest expense and principal payments will
continue to be recorded on most secured vendor financing,
including capital lease obligations, unless the leases are
rejected by the debtors.
    
Revenues for the six months ended June 30, 1999 were $574.9
million, compared to $611.7 million in the same period last year.
Inclusive of non-recurring charges from Q2, net loss for the
first half of 1999 was $98.4 million or [1.38) per share.
For the six-month period, funeral home revenues were $325.1
million, a slight increase from $322.8 million last year.
Approximately 85,000 funerals were performed, an increase of
2,100 over the same period last year.  On a same store basis,
revenue per service performed was up 0.3 percent while
the number of funerals was down 2.3 percent compared to the six
month period last year.  Same store costs decreased by 0.6
percent. Funeral home gross margins decreased to 38.0 percent
compared to 39.7 percent in first half 1998.

Cemetery revenues for the first half of 1999 were down 15.7
percent to $202.2 million, compared to $239.8 million in 1998.
Cemetery gross margins declined to 24.0 percent for the six
months versus 29.3 percent for the same period last year due to
the sale of 124 cemeteries on March 31, 1999, the Company's
previously announced reduction and restructuring of its pre-need
sales program, and additional environmental and marketing costs.
The Company's attached unaudited interim consolidated statement
of operations has been prepared on a going concern basis in
accordance with Canadian generally accepted accounting
principles.  The going concern basis of presentation assumes that
the Company will continue in operation for the foreseeable future
and will be able to realize its assets and discharge its
liabilities and commitments in the normal course of business.  As
a result of the Chapter 11 and CCAA proceedings and circumstances
relating to this event, including the Company's debt structure,
recent losses and negative cash flow, such realization of assets
and discharge of liabilities are subject to significant
uncertainty.
    
The unaudited interim consolidated financial statements do not
reflect adjustments that would be necessary if the "going
concern" basis was not appropriate.  If the "going concern" basis
was not appropriate for these unaudited interim consolidated
financial statements, then significant adjustments would be
necessary in the carrying value of assets and liabilities, the
reported revenues and expenses, and the balance sheet
classifications used. Additionally, the amounts reported could
materially change because of a plan of reorganization, since the
reported amounts in these interim consolidated financial
statements do not give effect to adjustments to the carrying
value of the underlying assets or amounts of liabilities that may
ultimately result.  The appropriateness of the "going
concern" basis is dependent upon, among other things,
confirmation of a plan of reorganization, future profitable
operations, the ability to comply with the terms of post-petition
date $200 million DIP financing and the ability to generate
sufficient cash from operations and financing arrangements to
meet obligations.

The Company's Common shares are traded on the New York Stock
Exchange (NYSE), The Toronto Stock Exchange and the Montreal
Exchange.  On August 10, 1999, the NYSE notified the Company that
the Company had fallen below a new continued listing criterion
requiring a minimum share price of $1 over a 30-day trading
period. The Company has until January 25, 2000 to satisfy
the criterion. The NYSE also stated that it will continue to
monitor the Company's financial condition during this period and
will immediately suspend trading if the NYSE receives
authoritative advice that the Common shares have no
value, the Common shares are cancelled, the Company announces any
material adverse news or the Company's financial condition
further deteriorates.
  
Based in Vancouver, The Loewen Group Inc. owns or operates more
than 1,100 funeral homes and more than 400 cemeteries across the
United States, Canada, and the United Kingdom. The Company
employs approximately 13,000 people and derives approximately 90
percent of its revenue from its U.S. operations.


NEUROMEDICAL SYSTEMS: Order Authorizes Retention Consultants
------------------------------------------------------------
The US Bankruptcy Court for the District of Delaware entered an
order on July 30, 1999 authorizing the debtor, Neuromedical
Systems, Inc., to retain Brent I. Kugman and Associates as
management consultants to the debtor.


NEUROMEDICAL SYSTEMS: Extension of Exclusivity
----------------------------------------------
The US Bankruptcy Court for the District of Delaware entered an
order on July 30, 1999 granting the debtor, Neuromedical Systems,
Inc., an extension of its exclusive period to file a plan by
fifty days, to and including September 13, 1999 and granting an
extension of its exclusive period to solicit acceptance of a plan
until November 11, 1999.


PRINCETON HOSPITAL: Workers Still Awaiting Checks
-------------------------------------------------
Roughly 20 former employees of the bankrupt Princeton Hospital,
Orlando, Fla., attended bankruptcy court on Tuesday in the hopes
of finding out when they might get paid, according to The Orlando
Sentinel. U.S. Bankruptcy Judge Arthur Briskman told the former
employees that they most likely would not get paid before
September 1, when the hospital is scheduled to be auctioned, but
that even then, some employees won't see any money. "There's not
going to be money for everybody," Judge Briskman said. "That's
just the nature of the beast." The hospital filed chapter 11 in
January, listing assets of $25 million and debts of $60 million.
It closed its doors on July 29 when hospital officials said it
didn't have the $650,000 needed to cover payroll and operating
expenses through September 1, leaving many of the hospital's
workers scrambling to collect paychecks. (ABI 13-Aug-99)


RENAISSANCE COSMETICS: Taps Mills Potoczak As Tax Accountants
-------------------------------------------------------------
The debtors, Renaissance Cosmetics, Inc., et al. seek an order
authorizing the employment and retention of Mills Potoczak &
Company as tax accountants for the debtors.  Specifically, the
firm will prepare and file various Federal, state and local tax
returns for the debtors.

The debtors propose to provide the firm with a $10,000 retainer
against which the firm's fees and expenses will be charged.  


SERVAL CORP: Files For Protection Under Canadian Bankruptcy Law
---------------------------------------------------------------
Serval Corp. has filed for protection under the Companies'
Creditors Arrangement Act, meaning that in the short term
creditors owed $62-million cannot take any action to enforce
their claims.

The company is another victim of reduced drilling in 1998 and in
the first quarter of this year because of cheap crude prices.

Ken Baker, senior vice-president and chief operating officer,
said $26-million was owed to secured creditors, while $36-million
was due to unsecured creditors. He estimated the worth of
Serval's assets at $62-million.

The company intends to file a re-organization proposal with the
Court of Queen's Bench in Alberta within 90 days. It is looking
at several restructuring options, including the sale of some
divisions and non-core assets. The court appointed KPMG Inc. as
monitor to oversee the daily cash management of the firm,
which has a staff of about 200.

Last year's prolonged slump in oil prices, which tumbled to $12
(US) a barrel, drastically cut the number of wells drilled in
Canada, key to the health of firms such as Serval. Many producers
were also slow to pay their bills as they struggled with
ballooning debt loads and falling cash flow.

The lethal combination caused a number of service firms to go
under or be taken over by rivals. Fracmaster Ltd., for example,
sought CCAA protection in March after being unable to pay $134-
million owed to its banks and trade creditors. It was eventually
sold to BJ Services Co. of Houston for $80-million.

Serval took action earlier this year to improve its financial
status. It arranged for a $10.4-million sale and leaseback of
equipment in January, and raised $3.3-million in February through
a private placement of debentures. In April, it agreed to sell
construction equipment for $12.7-million.

Despite the various steps, business continued to decline as tough
competition, an early spring and wet weather turned up the
pressure. 'This is a very volatile sector and it's a difficult
one to work in and it's a difficult one to grow in,' Mr. Baker
said. 'The steepness of the decline was unusual as well. We went
from basically an all-time high to an all-time low within a
12-month period.'

Serval's announcement came as signs abound that the sector is
recovering from last year's beating. Oil and gas prices are
relatively strong, producers are expanding their capital budgets
and the number of rigs drilling is rising.

The service company reported a net loss of $1.3-million on
revenue of $9.1-million in the three months ended March 31, down
from earnings of $800,000 on revenue of $13.9-million in the same
period a year ago.


SERVICE MERCHANDISE: Fitch IBCA Affirms Rating
----------------------------------------------
Aug. 12, 1999--First Union-Lehman Brothers Commercial Mortgage
Trust's commercial mortgage pass-through certificates, series
1997-C1, $ 165.2 million class A-1, $ 318.0 million class A-2, $
395.8 million class A-3, and interest-only class IO are affirmed
at 'AAA' by Fitch IBCA. In addition, the $ 78.3 million class B
is affirmed at 'AA', the $ 71.8 million class C at 'A', the
$ 71.8 million class D at 'BBB', the $ 19.6 million class E at
'BBB-' and the $ 71.8 million class F at 'BB'. The $ 13.1 million
class G, $ 26.1 million class H, $ 13.1 million class J, and the
$ 26.1 million class K certificates are not rated by Fitch IBCA.
The affirmations follow Fitch IBCA's annual review of the
transaction, which closed in April of 1997.

The certificates are collateralized by 276 fixed rate multifamily
and commercial mortgage loans. As of the July 1999 distribution
date, the pool's aggregate certificate balance declined by 2.7%,
from $ 1.31 billion at closing to $ 1.27 billion. Four loans have
paid off since closing. One loan, representing 0.6% of the pool's
unpaid principal balance, is 30 days delinquent. A total of nine
loans (2.97%) are specially serviced by CRIIMI MAE Services,
L.P. (CRIIMI MAE). Seven of these specially serviced loans (1.7%)
are 90 days delinquent; they include six loans (1.6%),
collateralized by properties where Service Merchandise is either
a sole or major tenant.

Service Merchandise Co. (NYSE: SME) filed for Chapter 11
bankruptcy protection on March 27, 1999. The borrower, a wholly
owned subsidiary of Service Merchandise Co., also declared
Chapter 11 bankruptcy. CRIIMI MAE, the special servicer, is
currently negotiating with Service Merchandise Co. regarding
possible resolution. Of the six stores in this pool, Service
Merchandise Co. has closed only its Buffalo, NY location. It is
under a contract for sale, subject to approval by bankruptcy
court. Service Merchandise Co. has not announced plans
to close any of the remaining stores.

CRIIMI MAE collected year-end 1998 property financial statements
for 170 loans, representing 72% of the pool's unpaid principal
balance. Outstanding advances total $ 2.5 million. A total of
seven loans, representing 1.4% of the pool balance, had a year-
end 1998 debt service coverage ratio below 1.0 times.

A stress scenario was applied whereby loans identified as
potential problems were assumed to default. Under this stress
scenario, subordination levels would be approaching those at
closing and justify the rating actions. Fitch IBCA will
continue to monitor this transaction, as surveillance is ongoing.


SOURCEONE WIRELESS: Proposed Sale of Assets
-------------------------------------------
The debtor, SourceOne Wireless, Inc. has received an offer from
Aquis Communications, Inc. to purchase substantially all of the
debtor's operating assets for $4 million in cash and $3.5 million
in Aquis preferred stock.  A break-up fee of $375,000 is
proposed, and any initial competing bid must exceed the Aquis
offer by $375,000 (thereafter bids shall be in increments of no
less than $50,000).


STARTER CORP: Committee Objects To Extension of Exclusivity
-----------------------------------------------------------
The Official Committee of Unsecured Creditors of Starter
Corporation, et al. objects to the motion of Starter Corporation,
et al. for an order approving an extension of the exclusive
periods during which the debtors may file a plan of
reorganization and solicit acceptances thereof.

The debtors claimed in their application seeking the extension
that this is a large and complex case, and therefore the
extension is necessary.  The Committee states that the size and
complexity of a case are only relevant in a reorganization, and
since these cases are liquidation cases, neither the size nor the
complexity are relevant.  The Committee states that there is
nothing complex about what remains to be accomplished in these
cases, and there is no reason to extend exclusivity.


TIRE WAREHOUSE: Seven Operations Sold At Bankruptcy Auction
-----------------------------------------------------------
The Albany Times Union reports on August 11, 1999 that seven
local Tire Warehouse operations were sold at a bankruptcy
auction Tuesday and will become Wholesale Tire Co./WTC outlets
starting today.

The new operator will honor the existing tire warranties of Tire
Warehouse customers and will expand auto repair service options
for customers, said attorney Lisa Tang, who represented Tire
Warehouse in proceedings in U.S. bankruptcy court.
   
The Lake George-based chain filed for Chapter 11 protection in
1997 because of increased competition.

Wholesale Tire Co./WTC paid $ 238,000 for the seven stores, said
Tang. The Long Island company is privately owned and operates 20
stores in that area.

The seven local stores are in East Greenbush, Troy, Glenville,
Albany, Clifton Park, Schenectady and Queensbury. The new owner
plans to bolster the existing staff of 55 employees, said Tom
Engel, vice president of Wholesale Tire Co./WTC.


UNITED COMPANIES: Equity Taps Saul, Ewing as Local Counsel
----------------------------------------------------------
The Official Committee of Equity Security Holders of United
Companies Financial Corporation, et al. applied to retain the law
firm of Saul, Ewing, Remick & Saul, LLP as local counsel.

The attorneys designated to work on this case charge between $200
per hour and $295 per hour.

                   
                   **********

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