TCR_Public/990818.MBX    T R O U B L E D   C O M P A N Y   R E P O R T E R
     
      Wednesday, August 18, 1999, Vol. 3, No. 159
                           
                       Headlines

ALTA GOLD: Results For Second Quarter
AMERICAN BANKNOTE: To Issue Delayed Revised Financial Statements
AMERICAN TRACK SYSTEMS: Meeting of Creditors
CELLPRO: Sale of European Operations
CFI MORTGAGE: Engages New Auditor Firm With Court Approval

CHS ELECTRONICS: Posts $89M Loss, Hires Investment Banker
CLARIDGE HOTEL AND CASINO: Files Chapter 11
COHO ENERGY: Reports Financial and Operating Results
CRESCENT AIRWAYS: Confirmation Hearing Postponed
CRIIMI MAE: Second Quarter Results

CROWN BOOKS: Seeks Extension To Assume/Reject Leases
EATON'S: Shares Marked Down to Penny Stock Status
EQUITEX: Subsidiary Completes Acquisition Of Victoria Precision
FIRSTPLUS FINANCIAL: Compromise With GACC
FIRSTPLUS FINANCIAL: Hearing on Motion to Extend Exclusivity

FWT, INC: Hearing to Employ Ernst & Young
GREATE BAY CASINO: Second Quarter Results
GUNTHER INTERNATIONAL: Sales Up -Losses Down
INTERLINE RESOURCES: Uncertainty Regarding Note Obligation
IRIDIUM LLC: $800 Million Senior Secured Credit Facility Expires

LEVITZ FUNRITURE: Twelfth Amendment to DIP
LEVITZ: Fifth Motion To Extend Time To Assume/Reject Leases
LOEWEN: Seeks to Pay Pre-Petition Tax Bill
LOEWEN: Seeks to Reject Sales Agreement With Duff Enterprises
LONG JOHN SILVER'S: Extension of Time To Assume/Reject Leases

MCA: Execution of Sub-Servicing Agreement
NATIONAL ENERGY GROUP: Results For Second Quarter
NATIONSWAY: Support For Employee Retention Program
NEXTWAVE: Judge's Order Stops Nextel from Acquiring Licenses
PENN TRAFFIC: 44% Of Common Stock Owned By Investment Firms

PITTSBURGH PENGUINS: Financing Through August
PLANET HOLLYWOOD: Sells 20% Equity Interest In Joint Venture
SANTA BARABARA AEROSPACE: Grounded By Bankruptcy
SANTA FE GAMING: Announces Increase in Revenues And Cash Flow
SHOE CORP: Order Authorizes and Approves Sale

TELEPAD CORP: Committee Supports Trustee
THE COSMETIC CENTER: Proposes Auction of Leasehold Interests
UNITED PETROLEUM: Seeks Extension of Exclusive Periods
WESTMORELAND COAL: Reports Second Quarter Loss
     
                     **********

ALTA GOLD: Results For Second Quarter
-------------------------------------
Alta Gold Co. (OTC BB:ALTAQ) announces results for the
second quarter and six months ended June 30, 1999.  For the
second quarter of 1999, the Company reported a net loss of
$2,149,000 ($ 0.06/share) from revenue of $ 7,058,000. For the
second quarter of 1998, net income totaled $ 114,000
($0.00/share) from revenue of $ 3,221,000.

For the six months ended June 30, 1999, the Company reported a
net loss of $2,119,000 ($ 0.06/share) from revenue of $
13,730,000. For the six months ended June 30, 1998, net income
totaled $ 480,000 ($ 0.01/share) from revenue of $6,845,000.

Revenue more than doubled in both the second quarter and six
months ended June 30, 1999, as compared to comparable prior-year
periods, primarily as the result of gold production from
Olinghouse.

However, the Company ended up losing money in 1999 as the result
of multiple factors, including: 1) interest and associated costs
incurred on the Company's debt; 2) the lower than expected rate
of gold production at Olinghouse due to continuing production
problems; 3) the greater than expected decrease in gold
production from Griffon; 4) the higher than expected cost of
producing gold at Olinghouse; 5) the deterioration in the price
of gold; and 6) costs incurred in regard to the Company's
bankruptcy proceedings.

On Aug. 4, 1999, as the result of having received an offer from a
potential investor to buy an interest in Olinghouse, the Company
filed a conditional motion to dismiss its Chapter 11 bankruptcy
proceeding.  The Bankruptcy Court established Aug. 31, 1999 as
the date on which a hearing on the conditional motion to dismiss
will be held. Since the Company's April 14, 1999 filing, the
Company's operations have not improved and its liquidity has
continued to deteriorate to the point where, on Aug. 6, 1999, the
Company temporarily suspended all mining, crushing and milling
operations at Olinghouse in order to preserve its liquidity on a
short-term basis.

The Company believes that the only source of additional capital
which may be available to the Company given the Company's current
financial condition is from a sale of an interest in Olinghouse.
In the event that the Company does not consummate a sale or
obtain financing from other sources within a very short
period of time, the Company's ability to continue operating is in
doubt.


AMERICAN BANKNOTE: To Issue Delayed Revised Financial Statements
----------------------------------------------------------------
American Banknote Corporation, on March 26, 1999, filed
statements with the SEC in connection with its financial
statements for the year ended December 31, 1998, and on May 18,
1999, filed further information in regard to financial statement
filing for the quarter ended March 31, 1999.  American
Banknote stated that its former wholly-owned subsidiary, American
Bank Note Holographics, Inc., which was sold July 20, 1998 in a
public offering of American Bank Note Holographics' shares, had
announced that its financial statements for each of the first
three quarters of 1998 and for each of the years ended December
31, 1997 and December 31, 1996 will require
restatement.

The company stated in the filings that it believed that, based
upon the above, any restatement of American Bank Note
Holographics' results would result in a reduction in its
previously reported operating income in 1996, 1997 and 1998.

The company has not filed its financial statement information for
the year ended December 31, 1998 or for the quarter ended March
31, 1999, and will not file for the quarterly period ended June
30, 1999 in the near future.  The company explains it expects to
file revised consolidated financial statements of the company
after the issuance by American Bank Note Holographics of revised
financial statements.


AMERICAN TRACK SYSTEMS: Meeting of Creditors
---------------------------------------------
The rescheduled meeting of creditors in the case of American
Track Systems International, Inc. will be held September 13, 1999
at 10:00 AM in Room 2313, US Courthouse, 844 King Street,
Wilmington.


CELLPRO: Sale of European Operations
------------------------------------
CPX Corp. (OTC BB: CPRO), formerly known as CellPro,
Incorporated, announced the consummation of the sale of its
European subsidiaries to Mr. Robert Vandervelde, Mrs. Sylvie Bacq
and Mrs. Godelieve Boucque, pursuant to three separate purchase
agreements, and related transactions.

The Company will receive gross proceeds of $ 370,030 in
consideration from such transactions. In addition, the Company
announced the settlement of its outstanding claim, in an
undisclosed amount, against Lyon and Lyon, which included a
compromise of certain intercompany accounts.  

The Company also announced its intention to make the final
distribution of funds to equity holders pursuant to the amended
plan of reorganization filed by the Company with the United
States Bankruptcy Court for the Western District of Washington
and approved and confirmed on May 21, 1999.

The distribution in the amount of $.10 per share is anticipated
to be made on September 30, 1999 to shareholders of record on
September 10, 1999, subject to the receipt of the proceeds from
the sale of the European subsidiaries. As previously announced,
on June 18, 1999 the Company made the first distribution of funds
to shareholders in the amount of $ 0.21 per share.  


CFI MORTGAGE: Engages New Auditor Firm With Court Approval
----------------------------------------------------------
CFI Mortgage Inc. has engaged Weinick Sanders Leventhal & Co.,
LLP, certified public accountants with offices in New York, New
York, as its independent auditor to certify the company's
financial statements for the year ended Dec. 31, 1998.  The
company has received approval of the engagement as required, by
the Bankruptcy Court.  CFI previously reported the resignation of
the accountant who certified its financial statements
for the year ended Dec. 31, 1997.


CHS ELECTRONICS: Posts $89M Loss, Hires Investment Banker
---------------------------------------------------------
Herald Business reports that CHS Electronics reports an
$89 million second-quarter net loss, a 23 percent drop in
profit margins and the technical default on three loans, CHS
Electronics of Miami said Monday it will hire an investment
banking firm to evaluate its options.

Although the hiring of an outsider advisor sometimes leads to the
sale or breakup of a company, CHS said there is "no assurance"
that the step will result in any action. But there's little
argument that the computer distributor is sending a distress
call.

In CHS' second quarter, the company lost $14 million to
restructuring, added $24 million to its bad debt reserves, mainly
for its Latin American customers, and created a $20.7 million
reserve for money owed by an unnamed affiliate.

Additionally, revenue rose 32 percent to $2.3 billion for the
quarter, but gross profit was flat at $114.6 million as gross
profit margins fell to 4.9 percent from 6.4 percent a year ago.
CHS blamed that on lower prices for data storage devices and
price wars in Germany and the United Kingdom.

CHS has hired a turnaround specialist for the new job of chief
operating officer. Mark E. Keough, 44, who turned around the
distribution operations of Wesco International after spending
time as a partner at McKinsey & Co., has already joined what
analysts say will be a difficult task.

The company said it has signed an agreement to sell its Sun
Microsystems distribution business in Germany, Austria, Denmark
and Sweden to an unidentified buyer for $50 million -- $38
million to CHS, $12 million to minority shareholders. CHS expects
to reap a pre-tax profit of $32 million on the deal.

CHS shares lost 50 cents Monday, dropping to $3.37 1/2, well
below the stock's 52-week high of $19.75 on Jan. 8.
2nd qtr. ended June 30   1999  1998 Revenue $2.3 billion  $1.8
billion Net income (loss)  ($89.2 mil.)  $5.5 mil. Per share              
($1.55) 10 cents.


CLARIDGE HOTEL AND CASINO: Files Chapter 11
-------------------------------------------
The Claridge Hotel and Casino Corporation, operator of the
Claridge Casino Hotel here, announced today that it filed a
voluntary petition for Chapter 11 protection in the US Bankruptcy
Court for the District of New Jersey in Camden, NJ.  This action
had been previously indicated in the Claridge's announcement of
July 27, 1999 and is intended to facilitate a financial
restructuring.

The Claridge Hotel and Casino Corporation, through its
subsidiary, The Claridge at Park Place, Incorporated, operates
the Claridge Casino Hotel in Atlantic City.  The casino hotel
opened in July 1981 and has 59,000 square feet of casino gaming
space.  The Claridge Hotel and Casino Corporation is a closely-
held public corporation.  Its Corporate Bonds are publicly traded
on the New York Stock Exchange under the symbol CLAR02.


COHO ENERGY: Reports Financial and Operating Results
----------------------------------------------------
Coho Energy Inc. (OTC BB:COHO) reported financial and
operating results for the six and three month periods ended June
30, 1999.

Since February 1999, following the failure of the Hicks, Muse,
Tate & Furst $250 million financing agreements, which are the
subject of pending litigation, the Company has been working to
restructure its financial obligations which defaulted after the
Hicks Muse withdrawal. Currently the Company remains in
default under the terms of its $ 240 million bank credit facility
and its $150 million senior notes.

On July 30, 1999, the bank group reduced the over advance amount
from $ 89.6 million to $ 69.6 million as a result of another
borrowing base redetermination. The Company has been actively
working with both groups to reach an agreement on a restructuring
of the debt instruments and has not yet finalized an agreement
that is satisfactory to all parties. The Company cannot provide
assurances that a negotiated transaction can be completed; any
negotiated arrangements may require the protections afforded by
the bankruptcy courts.

The defaulted financial obligations together with a decline in
oil prices have had an adverse effect on the operations and
financial results of the Company.

For the three months ended June 30, 1999, the Company reported a
loss of $ 10.1 million, ($ 0.40 per share) as compared with a
loss of $ 41.6 million ($ 1.63 per share) in the same period of
1998. For the six month period in 1999 the Company's loss was $
19.1 million as compared with a loss of $ 63.9 million for the
same six month period in 1998. The 1998 losses are primarily
attributable to non cash ceiling test writedowns. The default
interest rate on both debt instruments has resulted in higher
interest costs than a year ago and costs associated with the
restructuring and penalties on past due state taxes have further
impacted the financial results.

Coho Energy Inc. is a Dallas based independent oil and gas
producer focusing on exploitation of underdeveloped oil
properties in Oklahoma and Mississippi.
  

CRESCENT AIRWAYS: Confirmation Hearing Postponed
------------------------------------------------
The confirmation hearing of the chapter 11 plan of the
consolidated estates of Crescent Airways Corp., Dooley
Helicopters, Inc., and Crescent Airways, Inc. is rescheduled and
will be held on September 7, 1999 at 2:00 PM in courtroom 103, US
Bankruptcy Court, Federal Building, 121 Spring Street,
Gainesville, Georgia 30501.


CRIIMI MAE: Second Quarter Results
----------------------------------
CRIIMI MAE Inc. (NYSE: CMM), the commercial mortgage company that
filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code
on October 5, 1998, reported results for the three and six months
ended June 30, 1999.

Results for the quarter, as compared to the corresponding prior
year's quarter, included a higher net interest margin under both
generally accepted accounting principles (GAAP) and on a tax
basis. However, the company reported a net loss under GAAP and
decreased tax basis income for the quarter ended June 30, 1999 as
compared to 1998.  Tax basis income decreased primarily due to
reorganization costs when compared to 1998.

The decline in GAAP basis earnings this quarter versus 1998's
second quarter is attributed to reorganization costs and an
unrealized loss of $10.9 million related to the company's
exposure on unsecuritized originated mortgage loans from its
mortgage warehouse facilities.  In addition, prior year second
quarter results included a gain of $29 million from the
resecuritization of commercial mortgage-backed securities (CMBS).

CRIIMI MAE's shareholders' equity decreased to approximately $281
million ($4.24 per fully diluted share) at quarter end, from
approximately $313 million ($4.83 per fully diluted share) at
March 31, 1999. The decrease in shareholders' equity during the
quarter primarily resulted from an aggregate $29.6 million
decrease in the fair value of the company's CMBS and insured
mortgage securities, as well as a net loss of $2.0 million.

The net interest margin increased approximately $735,000 under
GAAP and approximately $2 million on a tax basis for the second
quarter of 1999 compared to the second quarter of 1998.  The
increases in net interest margin were primarily due to an
increase in CRIIMI MAE's holdings of subordinated CMBS and
securitized mortgage loans.

Under GAAP, the net loss for the three months ended June 30, 1999
was $2.0 million compared to net income available to common
shareholders for last year's second quarter of approximately
$43.4 million.  On a per share basis, the second quarter's net
loss was four cents per diluted and per basic share. This
compares to last year's net income of 85 cents per diluted share
and 92 cents per basic share.  For the first six months of 1999,
net income available to common shareholders was approximately
$11.4 million or 20 cents per diluted share and 21 cents per
basic share compared to approximately $55.7 million or $1.16 per
diluted share and $1.23 per basic share for the first half
of 1998.

Tax basis income available to common shareholders for the second
quarter was approximately $11.9 million compared to approximately
$22.4 million for last year's second quarter.  On a per share
basis, tax basis income for the quarter was 22 cents compared to
47 cents for last year's second quarter.  For the first six
months of 1999, tax basis income was approximately $31.5 million
compared to approximately $37.4 million for the first half of
1998.  The per share figure for the first half of 1999 was 59
cents compared to 81 cents for the first half of 1998.

Reorganization costs totaled $8.7 million for the quarter and
$10.7 million for the first half of 1999, and decreased earnings
from equity investments.

Aggregate GAAP unrealized losses of $33 million related to the
unsecuritized mortgage loans were realized for both GAAP and tax
purposes in August 1999 upon the sale of all but three loans in
one of the warehouse facilities.

Since filing for Chapter 11 protection, CRIIMI MAE has suspended
its subordinated CMBS acquisition, origination and securitization
programs. The company, however, continues to hold a substantial
portfolio of subordinated CMBS and, through its servicing
affiliate, acts as a servicer for its own as well
as third party securitizations.


CROWN BOOKS: Seeks Extension To Assume/Reject Leases
----------------------------------------------------
The debtors, Crown Books Corporation and its debtor affiliates
seek an extension of time within which they must elect to assume
or reject their unexpired leases of non-residential real
property.  A hearing will be held on August 26, 1999.

The debtors are tenants under approximately 95 unexpired
nonresidential real property leases.  The leases relate to the
debtors' retail stores and corporate office.

The debtors believe that additional time will permit further
dialogue with the Committee and their creditors and thereby
enhance the prospects for the confirmation of a consensual plan
of reorganization.  Particularly in light of the fact that the
debtors have already filed the plan, contemplating assumption of
the leases, the debtors seek the extra time to discuss and review
their conclusions with respect to the leases.

The extension sought would be for a period up to and including
November 12, 1999.


EATON'S: Shares Marked Down to Penny Stock Status
-------------------------------------------------
Shares of T. Eaton Co., Canada's oldest department store chain,
were marked down to penny stock status Monday after the
company said an unnamed suitor decided against buying a large
number of its stores.

"Unfortunately, the buyer withdrew from the process late on
Friday notifying us that it was not prepared to go forward with
the proposed transaction," said Brent Ballantyne, Eaton's chief
executive and chairman, in a press release.

The news pushed the shares down C$1.25 at the open Monday to a
record low of 60 Canadian cents on the Toronto Stock Exchange,
but by mid-morning the shares had recovered to 73 Canadian cents,
down C$1.12.

In May the 130-year old chain of 61 stores said it would put
itself up for auction in light of mounting losses. Five of the
stores are scheduled to be closed next spring.

Rumored buyers included Sears Canada Inc. and Cincinnati-based
Federated Department Stores Inc. , owner of Bloomingdales and
Macy's.

Earlier this month the company said it had secured an additional
C$35 million in additional credit financing to appease concerned
suppliers.  But Eaton's said it has now closed its warehouse and
will not be receiving merchandise until further notice.

Discussions with suitors have shifted to discussions with lenders
and key landlords, "with a view to involving the major
stakeholders in the significant decisions that will need to be
made," said Hap Stephen, Eaton's chief financial officer.($1-
$1.48 Canadian)


EQUITEX: Subsidiary Completes Acquisition Of Victoria Precision
---------------------------------------------------------------
Effective July 27, 1999, Equitex Inc.'s majority owned
subsidiary, VP Sports, Inc., completed an acquisition in which
Victoria Precision, Inc., a corporation incorporated under the
laws of the Province of Quebec, merged with and into a wholly-
owned subsidiary of VP, 9066-8609 Quebec Inc., a corporation
incorporated under the laws of the Province of Quebec.  VP
acquired all of the capital stock of Victoria from its existing
stockholders, 141982 Canada Inc., a corporation incorporated
under the laws of Canada, and Mr. Philip Stanimir.  Total
consideration  paid was $6,000,000 CDN resulting in ownership of
all of the assets, liabilities and business operations of
Victoria, and the rights to a  four-year international consulting
and non-compete agreement with PS  Consulting Inc.
of which Philip Stanimir is a principal.

Of the purchase price, $4,700,000 CDN was paid in cash at closing
with the  remaining $1,300,000 paid in the form of a promissory
note bearing interest at 6% per annum payable in equal
installments at 6 and 12  months following the closing.  VP
utilized cash on hand for payment of the $4,700,000 CDN cash
payment.  The merger consideration was determined as a result of
arms' length negotiation between VP and Victoria and no
relationship existed between the companies
prior to this transaction.

Victoria is a Canadian manufacturer and distributor of a broad
range of bicycles and tricycles.


FIRSTPLUS FINANCIAL: Compromise With GACC
-----------------------------------------
On July 29, 1999, the US Bankruptcy Court for the Northern
District of Texas, Dallas Division, entered an agreed order
authorizing the compromise of controversy with German American
Capital Corporation (GACC) and related entities.

The order approves a compromise between FirstPlus Financial,
Inc., FirstPlus Special Funding Corp., German American Capital
Corporation and certain parties related to GACC.


FIRSTPLUS FINANCIAL: Hearing on Motion to Extend Exclusivity
------------------------------------------------------------
The debtor, FirstPlus Financial, Inc. seeks to extend exclusivity
to secure acceptance of its plan for ninety days, until December
1, 1999.

The debtor states that this is a large and complex case involving
a significant amount of allegedly secured debt and a large amount
of unsecured claims.  The case has a very active Creditors'
Committee.  The requested extension will provide the debtor with
additional time to continue negotitations with all creditors.

A hearing on the motion of FirstPlus Financial Inc.'s motion to
extend exclusivity has been set for August 31, 1999 at 10:30 AM,
US Bankruptcy Court, 1100 Commerce, Dallas, Texas 75242.


FWT, INC: Hearing to Employ Ernst & Young
-----------------------------------------
A hearing on the application of the debtor, FWT, Inc. to employ
Ernst & Young LLP as accountants and financial advisors to the
debtor has been scheduled on the 25th day of August, 1999 at 9:30
AM in the US Bankruptcy Court for the Northern District of Texas,
Fort Worth Division, 501 W. Tenth Street, Fort Worth, Texas
76102.


GREATE BAY CASINO: Second Quarter Results
-----------------------------------------
Greate Bay Casino Corporation (OTC Bulletin Board: GEAAQ)
reported a net loss from operations of $459,000 for the second
quarter of 1999 compared to net income from operations of $1.1
million for the second quarter of 1998.  Net revenues for the
second quarter of 1999 amounted to $1.9 million compared to
net revenues of $2.1 million for the second quarter of 1998.

For the six months ended June 30, 1999, the Company reported a
net loss from operations of $634,000 on net revenues of $4.1
million compared to net income from operations of $2.5 million on
net revenues of $4.6 million for the comparable six months of
1998.

Net income from all sources amounted to $83.2 million ($16.03 per
share) for the second quarter of 1999, and $81.1 million ($15.64
per share) for the six months ended June 30, 1999 due to a one
time non-cash credit of $86 million resulting from elimination of
the Company's negative equity in Pratt Casino Corporation and its
subsidiaries when Pratt Casino Corporation and its subsidiaries
filed for protection under Chapter 11 of the United States
Bankruptcy Code on May 25, 1999 as part of a prenegotiated plan
of reorganization.  The terms of the plan of reorganization, when
consummated, eliminate ownership or operating control of these
entities by Greate Bay.

Greate Bay reported a net loss from all sources of $2.2 million
($.42 per share) for the second quarter of 1998 and net income
from all sources of $88,000 ($.02 per share) for the six months
ended June 30, 1998, which included $854,000 and $3.7 million,
respectively, attributable to equity in the earnings of GB
Holdings, Inc. (Holdings) whose primary subsidiary, Greate Bay
Hotel and Casino, Inc. (GBHC), owns the Sands(R) Hotel & Casino
in Atlantic City, New Jersey and $744,000 and $1.9 million,
respectively, representing management fees earned from the Sands.  
Holdings and GBHC filed for relief under Chapter 11 of the
United States Bankruptcy Code in January 1998.

After completion of the Pratt Casino Corporation reorganization,
the Company's remaining operations will consist primarily of
Advanced Casino Systems Corporation, a computer software company
which licenses casino information technology systems to the Sands
and to Hollywood Casino  Corporation, as well as to non-
affiliated casino companies.
              

GUNTHER INTERNATIONAL: Sales Up -Losses Down
--------------------------------------------
Figures for the quarter ended June 30, 1999, for Gunther
International Ltd. indicate total sales for the three months were
$5.7 million, an increase of 38% over the comparable period of
the prior year when total sales were 4.1 million.  Net loss for
the three months ended June 30, 1999 was $59,476 as compared to a
net loss of $1.3 million in the same quarter of 1998.


INTERLINE RESOURCES: Uncertainty Regarding Note Obligation
----------------------------------------------------------
Interline Resources Corporation, a Utah corporation, is engaged
in two areas of business, each operating as separate
subsidiaries: Interline Hydrocarbon Inc., a Wyoming corporation,
which commercializes the company's used oil refining technology;
and Interline Energy Services, Inc., a Wyoming corporation, which
manages the company's oil and gas operations located in Wyoming.

The company has invested substantial resources commercializing a
used oil refining technology and has signed license agreements
with companies in England, South Korea, Dubia, Australia and
Spain. The company's first used oil refinery was constructed in
Salt Lake City, Utah in 1996.  Its oil and gas operations  
consist of natural gas  gathering, natural gas processing,
transportation and oil well production all located in Wyoming.

Revenues increased $135,687, or 17.22%, to $923,750 for the three
months ended June 30, 1999 as compared to $788,063 for the three
months ended June 30, 1998.  Net loss for the quarter ended June
30, 1999 was $191,086 as compared to net loss in the same quarter
of 1998 of $298,597.  For the six months ended June 30, 1999 the
company's net loss on revenues $1,740,684 was $395,488, while in
the same six month period in 1998 net loss on revenues of
$1,685,633 was $680,681.

Since September 26, 1997 the company as operated as a debtor-in-
possession. As of July 29, 1999, the company was current on all
interest payments due to its major creditor under the new trust
agreement.  On September 22, 1999, the company is obligated to
pay this major creditor $812,000 which consists of principal of
$750,000 and interest of $62,000 under the new trust deed note
due its major creditor.  As of July 29, 1999, the company
indicated it is not in a  position to pay this major creditor the
$812,000 due September 22,1999. If the company is unable to
receive cash from the marketing of its refining technology or
raise additional financing through the sale of equity, sale of
debt or assets, then the company could be forced to cease
operations and liquidate the assets of the company.


IRIDIUM LLC: $800 Million Senior Secured Credit Facility Expires
----------------------------------------------------------------
Iridium LLC'S waiver of its customer and revenue covenants under
its $800 million Senior Secured Credit Facility has expired. An
event of default has occurred under the Secured Credit Facility
as well as its $750 million Guaranteed Credit Facility. Iridium
LLC is continuing to consider options for restructuring its
capital structure.

Iridium LLC became the world's first global satellite phone and
paging company on November 1, 1998. Its network of 66-low earth
orbiting satellites, combined with existing terrestrial cellular
systems, enables customers to communicate around the globe.
Iridium World Communications, Ltd. is the public investment
vehicle of Iridium LLC.

Iridium is a registered trademark and service mark of Iridium IP
LLC.


LEVITZ FUNRITURE: Twelfth Amendment to DIP
------------------------------------------
Tinkering with the way payments to the DIP Lenders are applied to
outstanding borrowings, the Debtors ask the Court to approve a
12th Amendment to the DIP Credit Agreement arranged by Deutsche
Bank Alex Brown (formerly known as BT Commercial Corporation)
providing that, in the event the Excess Availability is greater
than or equal to $18,000,000 for 5 business days and no Event of
Default exists, then payments will be applied to the Overadvance
Term Loan.  Further, in the event that Excess Availability
exceeds $12,000,000, Levitz may reborrow a portion of the
Overadvance Term Loan.  

Additionally, the 12th Amendment modifies the Borrowing Base
available to the Debtors under the DIP Facility, making it equal
to the sum of:

(1) the Fixed Asset Sublimit (which may be a negative number),
plus
   
(2) 85% of Eligible Accounts Receivable, plus

(3) 75% of Eligible Inventory (now subject to adjustment based
on appraisals by the DIP Lenders), plus

(4) the Overadvance Term Loan; less

(5) accrued Professional Fees.

The DIP Lenders agree to these modifications at no additional
charge to the Debtors' estates.  (Levitz Bankruptcy News Issue
35; Bankruptcy Creditors' Services Inc.)


LEVITZ: Fifth Motion To Extend Time To Assume/Reject Leases
-----------------------------------------------------------
With many of their Landlords, in conjunction with the Bulk Sale
and Sale-Leaseback Transactions, the Debtors entered into
Stipulations fixing agreed deadlines by which Levitz must decide
whether to assume, assume and assign or reject their non-
residential real property leases of specific properties.  With
respect to those Landlords who did not enter into Stipulations,
the Debtors ask the Court to extend the time within which to make
decisions to October 29, 1999.  

The Debtors indicate that, as these cases move toward
confirmation of a plan, the Debtors may decide to close certain
stores and move to new locations in order to realize maximum
value from their real estate.  These decisions will be made
before confirmation, but the Debtors want the maximum level of
flexibility up to the last minute.  (Levitz Bankruptcy News Issue
35; Bankruptcy Creditors' Services Inc.)


LOEWEN: Seeks to Pay Pre-Petition Tax Bill
------------------------------------------
The Debtors tell the Court that they owe approximately $5,000,000
on account of pre-petition real estate taxes.  Rather than
litigating with dozens of taxing authorities about assessment
dates, tax status dates, due dates, payment dates, and the like
to draw the distinction between pre-petition and post-petition
real estate tax obligations, the Debtors would prefer to simply
pay those priority claims and avoid the conversations
altogether.  The Debtors note that real estate taxes, if left
unpaid, will give rise to liens against the Debtors' property.  
The Debtors believe that the benefit of paying their real estate
tax obligations far outweighs the administrative burdens that
non-payment will bring.  

Accordingly, following the model established in In re Levitz
Furniture, Inc., Case No. 97-1842 (JJF) (Bankr. D. Del. Jan. 21,
1998), the Debtors ask the Court to grant them the authority, in
their sole discretion, to pay up to $5,000,000 on account of pre-
petition real estate tax claims.  (LOEWEN Bankruptcy News Issue
8; Bankruptcy Creditors' Services, Inc.)


LOEWEN: Seeks to Reject Sales Agreement With Duff Enterprises
-------------------------------------------------------------
In 1994, Duff Enterprises, Inc., entered into a cemetery
merchandise sales program agreement with Loewen.  Duff's operates
the Oak Ridge Memorial Park in Oak Ridge, Tennessee, which is
owned by a non-profit entity.  The Sales Agreement calls for
Loewen to provide its at-need and pre-need merchandising
expertise in exchange for a 42% cut of gross sales revenues,
provided, however, that Duff would receive no less than $319,000
(58% of $550,000) each year.

Sales at Oak Ridge are disappointing.  In one of the past five
years, the minimum payment payable to Duff was greater than total
sales.  The Sales Agreement is not economically beneficial to the
Debtors.  The Debtors do not believe that sales will improve to a
point where the Sales Agreement yields a benefit.

Accordingly, pursuant to 11 U.S.C. Sec. 365, the Debtors seek the
Court's authority to reject the Sales Agreement without further
delay.  

The Debtors note that they are parties to a separate 1996
Construction Agreement with Duff governing Loewen's construction
of mausoleum and lawn crypt facilities at Oak Ridge.  The Debtors
make it clear that, by this Motion, they do not seek to reject
the Construction Agreement.  (LOEWEN Bankruptcy News Issue 8;
Bankruptcy Creditors' Services, Inc.)


LONG JOHN SILVER'S: Extension of Time To Assume/Reject Leases
-------------------------------------------------------------
The debtors, Long John Silver's Restaurants, Inc., et al. seek an
extension of time within which the debtors must assume or reject
unexpired leases of nonresidential real property.  The debtors
seek an extension to the earlier of the Effective Date of the
Plan or September 20, 1999.  A hearing to consider the motion
will be held on August 18, 1999 at 9:30 PM before the Honorable
Mary F. Walrath, US Bankruptcy Court, Wilmington.

The debtors are lessees under approximately 408 nonresidential
real property leases, which the debtors have not moved to assume
or reject.

The debtors have entered into a stock purchase agreement with GRG
Inc., a company formed by A&W Restaurants and its equity sponsor,
Grotech Capital.

The stock purchase agreement provides for the purchaser, subject
to court approval and confirmation of plan of reorganization, to
purchase 100% of the newly issued capital stock of the company,
as reorganized pursuant to a plan of reorganization.  The
purchaser will pay a base purchase price of $227.5 million in
cash for the stock.  The purchaser can reject up to 50 leases
pursuant to the agreement.  A closing of the agreement must take
place by September 15, 1999.  The debtor estimates that the
Effective Date of the plan will occur on or about September 8,
1999.  A hearing to consider confirmation of the plan is set for
August 18, 1999.  In the event that the plan is not confirmed,
the debtors provide for an extension through September 20, 1999
to allow for amendments to the plan.


MCA: Execution of Sub-Servicing Agreement
-----------------------------------------
The debtor, Mortgage Corporation of America, (MCA) entered into a
Subservicing Agreement with Enterprise Financial Services, Inc.
The servicer will sub-service certain non-related land
contracts/mortgage loans.


NATIONAL ENERGY GROUP: Results For Second Quarter
-------------------------------------------------
National Energy Group, Inc. (OTC Bulletin Board: NEGXQ) announces
results for the second quarter ended June 30, 1999.
     
Revenues for the three months ended June 30, 1999 were $9.3
million, down 11% from $10.5 million in 1998, due principally to
the decline in natural gas production, combined with a decline in
natural gas prices from 1998.  The decline in oil production was
offset by the increase in oil prices.  The average price received
by the Company for crude oil for the second quarter of 1999 was
$16.14 per barrel, a 25% increase from the average price of
$12.90 per barrel received for the comparable period in 1998.  
The average price received for natural gas of $1.93 per Mcf for
the second quarter of 1999 was 10% less than the average price of
$2.14 per Mcf received in 1998.

The Company's oil and natural gas production totaled 4.1 Bcfe for
the second quarter of 1999, a decline of 16% compared to 4.9 Bcfe
for the second quarter of 1998.  Crude oil production decreased
13% during the second quarter of 1999 to 291 Mbls, compared to
335 Mbls in 1998.  The reduction in oil production is primarily
the result of natural decline which was partially offset by the
successful drilling and completion of the State Lease #2102 well
at the Company's East Bayou Sorrel area, which came on line in
October of 1998.  Natural gas production decreased 17% during the
second quarter of 1999 to 2.4 Bcf compared to 2.9 Bcf in 1998.  
The decline in gas production is primarily due to natural decline
as well as flush production during the second quarter of 1998 at
the Company's East Texas and Arkoma properties since the
Company had limited activities in these areas during 1999.

The Company reported net income for the three months ended June
30, 1999 of $1.3 million, or $.03 per share compared with a net
loss of $29.0 million, or $.72 per share for 1998.  The results
for the second quarter of 1999 include net reorganization costs
of approximately $.4 million related to the Chapter 11
proceeding.

Revenues for the six months ended June 30, 1999 totaled $16.6
million, a decrease of 21% from $21.1 million in 1998.  The
decline in revenue was due to the decline in oil and natural gas
production, as well as the lower commodity prices received during
1999.  The average price received by the Company for crude oil
for the six months ended June 30, 1999 was $13.48 per barrel, a
1% decline from the average price of $13.67 per barrel received
for the comparable period in 1998.  

The Company reported net income for the six months ended June 30,
1999 of $.1 million, ($.00 per share), compared with a net loss
of $58.0 million ($1.44 per share) for 1998.  The results for
1999 include net reorganization costs of $.9 million related to
the Chapter 11 proceeding.  The loss for 1998 includes noncash
write-downs of the Company's oil and natural gas properties
aggregating $51.3 million in accordance with the full cost method
of accounting.  

At June 30, 1999, the Company was in violation of certain
covenants under its secured credit facility.  In addition, due to
the non-payment of interest due December 2, 1998, the Company's
Senior Notes were also in default at June 30, 1999.

On December 4, 1998, certain of the holders of the Senior Notes
of National Energy Group, Inc. filed an Involuntary Petition for
an Order for Relief under Chapter 11 of Title 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for
the Northern District of Texas, Dallas Division, due to non-
payment of interest due December 2, 1998, after expiration of a
30-day grace period.  On December 23, 1998, the Company filed, in
the Bankruptcy Court, an Answer to and Motion to Dismiss the
pending Involuntary Petition.  

On August 4, 1999, the Company and the creditor's committee  
appeared before the Bankruptcy Court and announced agreement on a
process for marketing the Company and/or its assets.  The Court
entered an order which provided that the Company and the
Committee would engage CIBC World Markets Corp. ("CIBC") to
solicit bids for sale of the Company and/or its assets.  


NATIONSWAY: Support For Employee Retention Program
--------------------------------------------------
In reply to the Committee's objection to the employee retention
program, Nationsway Transport Service, Inc., the debtor estimates
that without the retention program it will lose at least ninety
percent of its employees. The debtors point out the significance
of retaining employees in the information services and account
receivable collection departments.  Contrary to the Committee's
suggesstion, the debtors state that they have not retained any
unnecessary employees in any department.  The debtors submit that
all of the facts amply demonstrate that the retention program
will contribute to the maximization of the value of the estate
assets and the minimization of the claims and expenses against
the estate.  If the program is not approved, the estates will
suffer.


NEXTWAVE: Judge's Order Stops Nextel from Acquiring Licenses
------------------------------------------------------------
U.S. Bankruptcy Judge Adlai Hardin (E.D.N.Y.) issued a temporary
restraining order and an injunction on Friday to stop Reston,Va.-
based Nextel Communications Inc. from acquiring wireless licenses
from NextWave Telecom Inc., which is in bankruptcy, according to
Reuters.

Nextel announced last week that the Federal Communications
Commission (FCC) and the U.S. Department of Justice authorized it
to obtain many of the wireless licenses NextWave bought at
an auction in 1997. "PCS spectrum licenses are subject to the
exclusive jurisdiction of this court and cannot and will not be
conveyed to or by any party without prior court approval upon
proper application," Hardin said in his decision, after NextWave,
Hawthorne, N.Y. requested the injunction. A spokesman for
NextWave said that under current FCC regulations, a large
publicly traded company can't own or control the type of spectrum
licenses the FCC awarded NextWave two years ago. NextWave bid
$4.7 billion for the licenses, but like other top bidders,
has serious debt issues. (ABI 17-Aug-99)


PENN TRAFFIC: 44% Of Common Stock Owned By Investment Firms
-----------------------------------------------------------
The following companies and persons beneficially own 8,980,928
shares of common stock of Penn Traffic Company, representing
44.67% of the outstanding shares of common stock of the company:
George Soros, Stanley F. Druckenmiller, Satellite Asset
Management, L.P., Satellite Fund Management LLC, and Soros Fund
Management LLC. Satellite Asset Management, L.P., and
Satellite fund Management LLC hold sole voting and dispositive
power over the 8,980,928 shares.  Gabriel Nechamkin, Lief D.
Rosenblatt and Mark Sonnino benificially own 9,000,928 shares of
common stock in the company, representing 44.72% of the shares of
common stock outstanding.  Their sole voting and sole dispositive
power exists over 20,000 of the shares, while
shared voting and dispositive power may be exerted over 8,980,928
such shares.

The issuance of shares was in connection with the consummation of
the Plan of Reorganization of Penn Traffic Co., and as a
consequence of their holdings the entities and persons cited are
deemed to be the beneficial owners of more than 5% of the
outstanding shares of the company.  The filing statement relates
to the shares held for the accounts of Quantum
Partners LDC, a Cayman Islands exempted  limited  duration  
company, and Quota Fund N.V., a Netherlands Antilles corporation.

The business of Satellite Fund Management LLC is managed through
a Management Committee comprised of Mr. Soros, Mr. Druckenmiller
and Mr. Gary Gladstein.  Satellite Fund Management LLC, a
Delaware limited liability company, has its principal office in  
New  York.  Its principal business is to serve, pursuant to
contract, as the principal investment manager to several foreign
investment companies.  Mr. Soros, as Chairman of Satellite Fund
Management LLC, has the ability to direct the investment
decisions of that management firm and as such may be deemed to
have investment discretion over the securities held for the
accounts of the firms clients. Mr. Druckenmiller, as Lead  
Portfolio  Manager of Satellite Fund Management LLC, has the
ability to direct the investment decisions of the firm and and
may also, therefore, be  deemed to have investment discretion
over the securities held for the accounts of the firms client.

Satellite Fund Management LLC serves as principal investment
manager to Quantum Partners and Quota, and as such, has been
granted investment discretion over portfolio investments,
including the shares, held for the accounts of Quantum Partners
and Quota. Satellite Fund Management LLC, on behalf of Quantum
Partners and Quota, has granted investment discretion
over certain investments, including the shares, of Quantum
Partners and Quota to Satellite LP, pursuant to investment
management  contracts between Quantum Partners and Satellite LP
and between Quota and Satellite LP. None of Satellite Fund
Management LLC, Mr. Soros and Mr. Druckenmiller currently
exercises voting or dispositive power over the shares held for
the accounts of Quantum Partners and Quota.

Satellite LP is an investment advisory firm organized as a
Delaware limited partnership. Satellite LLC, a Delaware limited
liability company, is the general partner of Satellite LP. Each
of Satellite LP and Satellite LLC has its principal office in New
York.  Satellite LP's principal business is to serve, pursuant to
contract, as the principal investment manager to several
private investment companies.  Satellite LLC's principal  
business is to serve as general partner of Satellite LP. Mr.
Sonnino, Mr. Rosenblatt and Mr. Nechamkin are Managing Members of
Satellite LLC and as such, may be deemed to have investment
discretion over the shares held for the accounts of Quantum  
Partners and Quota.


PITTSBURGH PENGUINS: Financing Through August
---------------------------------------------
A line of credit with Societe General, a French bank, expires on
Friday, but the Pittsburgh Penguins reportedly can borrow enough
before then to avoid a shutdown if Mario Lemieux's investor group
does not complete the purchase, attorney James Walsh, who
represents the team, said. The Pittsburgh Post-Gazette reported
that because the team has access to funding through the end of
the month, there is less pressure on Lemieux to finalize his deal
this week. The Allegheny County Regional Asset District Board is
scheduled to vote tonight on whether to allocate sales tax
revenue to help the city and the county pay $16 million in Civic
Arena bond debt. One of the final aspects of Lemieux's plan
hinges on this. Commissioner Bob Cranmer said on Aug. 4 that he
would not support an earlier agreement by the Public Auditorium
Authority to have the city and county take over the debt service
payments owed by the team and SMG, which operates the Civic
Arena. Also, questions linger as to whether Lemieux has secured
the $50 million in private investment needed to take over the
team; a list circulated to prospective investors showed $51.53
million in commitments but showed $5 million coming from a party
"to  be announced." (ABI 17-Aug-99)


PLANET HOLLYWOOD: Sells 20% Equity Interest In Joint Venture
------------------------------------------------------------
On August 5, 1999, Planet Hollywood International, Inc., through
its subsidiary corporations, sold its twenty percent equity
interest in the joint venture which was formed to develop the
OFFICIAL ALL STAR HOTEL in New York City.

In the fall of 1997, the company acquired its interest in the
joint venture with Vornado Realty Trust. The joint venture
acquired the Hotel Pennsylvania, a 1,700-room hotel including
approximately 400,000 square feet of rentable retail space,
opposite New York City's Madison Square Garden. The hotel was to
be renovated and renamed the OFFICIAL ALL STAR HOTEL. The joint
venture had also entered into a ten-year license agreement
with the company relating to the use of the OFFICIAL ALL STAR
name, logo and certain other intellectual property rights.

The terms of the sale include the termination of the license
agreement and Vornado Realty Trust paying Planet Hollywood
International Inc. approximately $18 million in cash.  The book
value of the company's interest in the joint venture at the time
of the sale was approximately $12 million.


SANTA BARABARA AEROSPACE: Grounded By Bankruptcy
------------------------------------------------
Santa Barbara Aerospace Inc., a San Bernadine, Calif., aircraft
refurbishment company, filed for chapter 11 protection on Aug. 6
and laid off about 230 employees, The Business Press reported.
The company, which operates out of San Bernadine International
Airport, cited claims of more than $16 million in its emergency
bankruptcy filing. Canadian-based carrier WestJet Airline Ltd.
filed a $10 million lawsuit against the company, alleging
negligence, breach of contract and fraud in connection with the
repair work on one of its aircraft. The IRS and California's
Employment Development Department were also named in the filing
as creditors, with claims of $1.7 million and $150,000,
respectively. Inland Valley Development Agency, which operates
the airport, is owed $500,000 for rent on four hangars, and has
been negotiating with Santa Barbara Aerospace officials for
nearly a year to monitor its stability. The agency was prepared
to file an unlawful detainer because of the company's repeated
failure to pay $43,000 in monthly rent. (ABI 17-Aug-99)


SANTA FE GAMING: Announces Increase in Revenues And Cash Flow
--------------------------------------------------------------
Santa Fe Gaming Corporation, a diversified gaming company
headquartered in Las Vegas, announced today the results of its
operations for the quarter ended June 30, 1999.

Santa Fe Gaming reported total revenues, less promotional
allowances, for the quarter ended June 30, 1999 of $32.3 million,
an 11.8% increase over the prior year quarter.  Earnings before
interest, taxes, depreciation, amortization, rents, corporate
expense and reorganization and certain legal expenses
("EBITDA") increased by 5.5% to $7.7 million compared to $7.3
million for the prior year quarter.

Santa Fe Gaming reported total revenues, less promotional
allowances, for the nine months ended June 30, 1999 of $94.7
million, an 11.5% increase over the prior year period.  EBITDA
increased by 18.9% to $24.6 million compared to $20.7 million for
the prior year period.  The increases in revenues and EBITDA for
both the three and nine month periods are attributed to improved
operating performances at both the Santa Fe Hotel and Casino in
Northwest Las Vegas (the "Santa Fe") and the Pioneer Hotel and
Gambling Hall in Laughlin (the "Pioneer").

The Santa Fe posted record revenues for the third consecutive
quarter. Total revenues, less promotional allowances, were $20.9
million in the current quarter, an increase of 14.1% over the
prior year quarter.  Santa Fe's EBITDA rose by 10.4% to $5.8
million from $5.2 million for the prior year quarter,
representing an operating margin (EBITDA margin) of approximately
27.6% for the current year quarter.

In the current nine month period, the Santa Fe posted total
revenues, less promotional allowances, of $59.9 million, an
increase of 12.2% over the prior year period.  Santa Fe's EBITDA
rose by 13.4% to $17.4 million from $15.4 million for the prior
year period, representing an operating margin of approximately
29.0% for the current year period.

The Pioneer reported improved quarterly revenues and operating
income as compared to the same period in the prior year for the
fourth consecutive  quarter.  Total revenues, less promotional
allowances, increased by 8.9% over the prior year quarter to
$11.3 million.  EBITDA was unchanged at $2.1 million in the
current quarter compared to the prior year quarter.

In the current nine month period, the Pioneer increased total
revenue, less promotional allowances, by 10.8% over the prior
year period to $34.1 million. EBITDA grew by 29.2% to $6.9
million from $5.4 million for the prior year period.  Operating
income rose to $2.2 million from a loss of $400,000 for the prior
year period.

The Company reported a net loss of $6.1 million or $ 0.99 per
common share in the current quarter compared to a net loss of
$4.4 million or 0.71 per common share in the same period last
year.  The net loss for the fiscal 1999 nine month period was
$12.9 million or $2.08 per common share compared to a net loss of
$13.5 million or $2.18 per common share in the same period last
year.


SHOE CORP: Order Authorizes and Approves Sale
---------------------------------------------
The debtors, Shoe Corporation of America, Inc., SCOA License,
Inc., SCOA Leasing Corporation, were granted authorization and
approval of the sale of certain assets to Gottschalks, Inc.


TELEPAD CORP: Committee Supports Trustee
----------------------------------------
In light of the recent resignations of all of the officers and
directors of the debtor, Telepad Corporation, and the condition
of the debtor's business, the Official Committee of Unsecured
Creditors of Telepad Corporation believe that the appointment of
a trustee or responsible person is warranted.  However, the
Committee is not entirely clear whether that person should be a
Chapter 11 or Chapter 7 trustee.

The Committee understands and is encouraged that the purported
secured creditors and L&E are currently discussing ways in which
the L&E litigation may be resolved and the debtor may be
reorganized through a plan process.


THE COSMETIC CENTER: Proposes Auction of Leasehold Interests
------------------------------------------------------------
The debtor, The Cosmetic Center, Inc. seeks court authorization
and scheduling of an auction on September 23, 1999 at 11:00 AM
for the sale of the debtor's leasehold interests in certain non-
residential real properties.  The debtor has approximately 125
leasehold interests in non-residential real properties.  There
are 124 store leases and 1 lease related to a warehouse.


UNITED PETROLEUM: Seeks Extension of Exclusive Periods
------------------------------------------------------
The debtor, United Petroleum Corporation, seeks an extension of
the exclusive periods in which to file a Chapter 11 plan and to
solicit acceptances thereof.  A hearing will be held at 3:00 PM
on August 24, 1999.

The debtor has already obtained approval of its Disclosure
statement and remains confident that it will succeed in its
request that the court confirm the plan at the confirmation
hearing scheduled to occur shortly in the court.  The debtor
seeks this releif only out of an abundance of caution, in order
to preserve its exclusive rights in case matters do not proceed
on the timetable presently anticipated.

The debtor seeks to extend its exclusive period to file a Chapter
11 plan to and including September 13, 1999; and the debtor seeks
to extend its exclusive period to solicit acceptances of a
Chapter 11 plan to and including November 12, 1999.


WESTMORELAND COAL: Reports Second Quarter Loss
----------------------------------------------
Westmoreland Coal Company (Amex: WLB) reported that the effect of
a number of unplanned events contributed to a net loss of $4.2
million for the second quarter ended June 30, 1999.  The Company
had expected a decrease in second quarter revenues because of a
major customer's scheduled outage which temporarily reduced coal
sales at Westmoreland Resources, Inc. and a continued
reduction in coal tonnage throughput at Dominion Terminal
Associates.  The negative effect of these variances were
compounded by unplanned events which included the recognition of
charges of approximately $0.5 million related to the recent proxy
contest, a charge of approximately $0.8 million for a decline in
the value of black lung trust fund investments due to the decline
in the bond market, and the recognition of approximately $0.6
million of additional workers' compensation expenses incurred by
the Company's bonding company during the bankruptcy.  Heritage
cost was also higher as the Company recognized expenses related
to Combined Benefit Fund obligations beginning in April of 1999.  
Net income was $46.1 million for the comparable period in 1998
and included the significant one-time positive effect of
restructuring Westmoreland Energy Inc.'s (WEI) Rensselaer Project
power purchase contract. The Company does not expect any
significant financial impact in future quarters from the
bankruptcy, the proxy contest, the Rensselaer transaction or the
customer scheduled outage which is now complete; however,
other unplanned or one-time events could occur.

Net loss applicable to common shareholders was $4.9 million after
deduction of $0.7 million for unpaid quarterly preferred
dividends for the second quarter of 1999 compared to income of
$35.0 million for the same period in 1998. Accumulated but unpaid
preferred dividends were reduced from $22.0 million to
$11.9 million as of June 1999, and quarterly dividend accruals
from $1.2 million to $0.7 million, as a result of the repurchase
of 1,052,631 depositary shares through the tender offer completed
in April.  The Company currently has 1,247,369 depositary shares
outstanding, each representing one-quarter of a share of
preferred stock.  Payment of preferred stock dividends are
subject to restrictions under Delaware law.

Shareholders' equity and cash were also reduced by $20 million,
the cost of repurchasing the depositary shares in the tender
offer.  Consolidated cash and cash equivalents at June 30, 1999
totaled $32.6 million and shareholders' equity totaled $10.5
million.  The Company intends to conduct a second tender offer
for additional preferred shares in the near term which could
further reduce shareholders' equity and cash by as much as
another $11.4 million if fully subscribed.  
     
Net income was $8.3 million for the first half of 1999 and
included increased equity in earnings from WEI as a result of the
sale of its remaining interest in the Rensselaer Project in the
first quarter.  Net income for the comparable period in 1998 was
$38.3 million and included increased equity in earnings from WEI
resulting from the restructuring of the Rensselaer Project
power purchase contract.  

      
                   **********

in the TCR each Tuesday.  Submissions via e-mail to
conferences@bankrupt.com are encouraged.  Bond pricing,
appearing in each Friday edition of the TCR, is provided by DLS
Capital Partners, Dallas, Texas.

S U B S C R I P T I O N I N F O R M A T I O N Troubled Company
Reporter is a daily newsletter, co- published by Bankruptcy
Creditors' Service, Inc., Princeton, NJ, and Beard Group,
Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler and
Lexy Mueller, Editors.  Copyright 1999. All rights reserved.
ISSN 1520-9474.

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