TCR_Public/990823.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 23, 1999, Vol. 3, No. 162                                              
                           
                    Headlines

ACME METALS: First Half Of 1999 Shows Increased Net Losses
BELDEN & BLAKE: Sale Of Subsidiary Expected In Third Quarter
BORDEN CHEMICALS & PLASTICS: Revenue Decrease -Net Loss Increases
BRAZOS SPORTSWEAR: Repays Balance Owed to DIP Lenders
BRUNO'S: Haskell and Snow Commence Class Action Suit

CHASTAIN CAPITAL: Constable Firms Holding Over 5% Of Shares
CONTINENTAL RESOURCES: Sales Higher/Quarter Sees Net Income
CORAM RESOURCE: Apria Healthcare Announces Involuntary Bankruptcy
CORAM RESOURCE: Statement Regarding Involuntary Petition
DAI-ICHI KANGYO: Merger Of 3 Banks Announced

DAILEY: Plan Confirmed By Court; Acquisition Moves Ahead
EATON'S: Files For Bankruptcy
FUJI BANK: Merger Of 3 Banks Announced
GOLDEN BOOK: Awaits Approval Of Plan - Losses Continue
HAYES: Xircom Blocked in Attempt to Obtain License

HOMELAND HOLDING: Soros & Satellite Funds Hold 13% Of Stock
INDUSTRIAL BANK OF JAPAN: Merger Of 3 Banks Announced
IRIDIUM: Ebay Online Removes Customer's Offer To Auction Shares
IRIDIUM: Rejected Proposal Contained Inaccurate Data
LACLEDE STEEL: Operating In Difficult Market

LONG JOHN SILVER: Court Approves Financial Plan
NEXTWAVE: DIP Lender Endorses and Supports Plan
MARKER INTERNATIONAL: Affiliates File Chapter 11
MARVEL ENTERPRISES: October Acquisitions Boost Sales/Losses Shown
ONEITA INDUSTRIES: Judge Orders Sale

PEOPLES CHOICE TV: Sprint Merger Pending
PINNACLE MICRO: Without Immediate Funding Bankruptcy Looms
PROTEAM.COM: Announces Voluntary Chapter 11 Filing
STEEL HEDDLE: 2nd Quarter Sales Rise - Net Losses Continue
THREE D DEPARTMENTS: Universal Capital to Manage Liquidation

WASTE SYSTEMS: Over 1/3 Common Stock Held By DDJ & Affiliates
WICKES: Showing Increased Sales And Income For 1999
WILSHIRE FINANICAL: Announces Suspension of CEO and President
  
                   **********

ACME METALS: First Half Of 1999 Shows Increased Net Losses
----------------------------------------------------------
Since filing for Chapter 11 bankruptcy protection on September
28, 1998 Acme Metals has been operating as a debtor-in-
possession.  Consolidated net sales of Acme Metals Inc. of $125.3
million for the second quarter of 1999 were essentially flat with
the same period in the prior year when net sales were $124.3
million. An increase in total tons shipped was offset by lower
selling prices in the second quarter of 1999. The company
recorded a loss of $11.3 million in the second quarter of 1999
versus a loss of $8.6 million recorded in the second quarter of
the prior year.

Consolidated net sales of $228.3 million for the first half of
1999 were $41.0 million lower than the same period in the prior
year when net sales were $269.3 million, reflecting lower net
sales in the first quarter. Lower selling prices, partially
offset by increased shipments, were the primary reasons for the
decrease in sales according to Acme Metals.  The company
recorded a loss of $29.1 million in the first half of 1999 versus
a loss of $10.3 million recorded in the first half of the prior
year.

Acme currently intends to present a plan of reorganization to the
Bankruptcy Court to reorganize the company's businesses and to
restructure the company's balance sheet.  The Board of Directors
strives to maximize the enterprise value, and a plan of
reorganization could, among other things, result in material
dilution or elimination of the equity of existing shareholders of
the company as a result of the issuance of equity to creditors or
new investors.


BELDEN & BLAKE: Sale Of Subsidiary Expected In Third Quarter
------------------------------------------------------------
Belden & Blake Corporation's total revenues decreased $4.5
million (12%) in the second quarter of 1999 compared to the
second quarter of 1998.  Actual revenue figures were $34.2
million for second quarter 1999 as compared to $38.7 million in
the comparable period of 1998.    Net loss decreased $3.3
million from a net loss of $8.2 million in the second quarter of
1998 to a net loss of $4.9 million in the second quarter
of 1999.

Total revenues decreased $8.9 million (11%), to $69.6 million, in
the first six months of 1999 compared to the first six months of
1998 when total revenues were $78.5 million.  Net loss decreased
$5.5 million (38%) from a net loss of $14.5 million in the first
six months of 1998 to a net loss of $9.0 million in the first six
months of 1999.

In April 1999, the company and its wholly-owned subsidiary, The
Canton Oil & Gas Company, entered into a stock sales agreement
with an oilfield supply company for the sale of Target Oilfield
Pipe and Supply Company, a wholly-owned subsidiary of Canton Oil
& Gas Co. The buyer will purchase all of the issued and
outstanding shares of capital stock of Target Oilfield
Pipe & Supply from Canton Oil & Gas. The company currently
expects to close this transaction in the third quarter of 1999.


BORDEN CHEMICALS & PLASTICS: Revenue Decrease -Net Loss Increases
-----------------------------------------------------------------
Total revenues during the second quarter of 1999 for Borden
Chemical & Plastics Limited Partnership decreased $19.1 million,
or 13%, to $127.2 million from $146.3 million in the second
quarter of 1998.  According to the company the decrease was the
result of a $6.7 million decrease in PVC Polymers Products
revenues, a $4.3 million decrease in Methanol and Derivatives
revenues and a $8.1 million decrease in Nitrogen Products
revenues.

Net loss for the second quarter of 1999 was $8.7 million compared
to $7.7 million loss for the second quarter of 1998.  The primary
reasons given by Borden Chemicals for the $1.0 million increased
loss from prior year was the results of modest raw material costs
decline, not being able to offset a 10% decrease in selling
prices.

Total revenues for the first six months of 1999 decreased $57.2
million, or 19%, to $242.6 million from $299.8 million in the
first six months of 1998.  This decrease was the result of
declines in selling prices and volumes in all three product
groups.  Net loss was $14.3 million for the first six
months of 1999 compared to a net loss of  $16.0 million for the
first six months of 1998.  


BRAZOS SPORTSWEAR: Repays Balance Owed to DIP Lenders
-----------------------------------------------------
Brazos Sportswear, Inc. (OTC Bulletin Board: BRZS) announced
today that on August 12, 1999 the Company retired the outstanding
balance remaining under the Company's debtor-in-possession (DIP)
financing facility.  Fleet Capital Corporation, as agent, and
Bank Boston, as participant, provided the $62.5 million facility.

Clayton Chambers, interim chief executive officer, also commented
on the status of the Company's efforts to dispose of its business
units through procedures under Section 363 of the U.S. Bankruptcy
Code.  "The Company has substantially completed the sale of its
assets including the sale of three of its operating units.  The
Morning Sun, Inc. subsidiary was sold to two private investment
funds advised by Three Cities Research, Inc. on June 28, 1999.  
The Red Oak Sportswear division, a manufacturer of screen-printed
sportswear, was acquired by Red Oak Acquisition, Inc. on June 4,
1999.  G.C. Sportswear LLC acquired the Gulf Coast Sportswear
division, a wholesale distributor of blank sportswear, on May 21,
1999."

In addition to the aforementioned business unit sales, the
remaining operations have either been sold in bulk asset sales or
are in the process of being liquidated.  All operations have
ceased.  The Company will continue to liquidate its few remaining
assets, collect outstanding receivables, pay post-petition
administrative claims and wind up the affairs of the estate
over the next few months.  "We believe that the sale of the
operating units has generated maximum recovery for the estate,
including secured creditors, and minimized the impact on our
employees," said Clayton Chambers.  "While we were able to pay
the DIP lenders in full, the Company expects that payments
to pre-petition unsecured creditors will be nominal, if any, and
that all common and preferred stock will be canceled."

Brazos Sportswear, Inc. and its subsidiaries filed Chapter 11
petitions in the U.S. Bankruptcy court for the District of
Delaware in Wilmington on January 21, 1999.


BRUNO'S: Haskell and Snow Commence Class Action Suit
----------------------------------------------------
Wyatt R. Haskell and James S. Snow, Jr., individually and on
behalf of a class of similarly situated holders of the Debtors'
10-1/2% Senior Subordinated Notes commenced a class action
lawsuit in the Circuit Court for the Tenth Judicial Circuit of
Alabama against Kohlberg, Kravis, Roberts & Co., L.P., various
KKR affiliates, Henry R. Kravis, George R. Roberts, other
individuals affiliated with KKR, Ronald G. Bruno, William
J. Bolton, other Bruno's Directors and Officers, Chase Manhattan
Bank, Murray Devine & Co., and other entities.  

Haskell steps through the 1995 Leveraged Racapitalization
Transaction, in
which Bruno's used:

      $475,000,000 borrowed from Chemical Bank under the Term
Loan;
        10,000,000 drawn under the $125,000,000 Chemical
Revolver;
       400,000,000 from the sale of the 10-1/2% Senior
Subordinated Notes;
       250,000,000 as an equity investment from KKR; and
        20,000,000 of the Company's cash on hand
    --------------
    $1,155,000,000

to pay out:

      $880,100,000 to buy-back its stock at $12.50 per share;
       100,000,000 to redeem the 6.62% Series A Senior Notes;
       100,000,000 to redeem the 7.09% Series B Senior Notes;
        15,000,000 to KKR for advisory fees;
         2,351,990 to Robinson-Humphrey for its fees and
expenses;
        10,226,058 to BT Securities for underwriting to 10.5%
Notes;
        14,370,616 to Chemical for arranging the Term Loan; and
         4,882,558 to Wachovia Bank for terminating a swap
agreement
    --------------
    $1,126,931,222

The 1995 Leveraged Recapitalization Transaction turned Bruno's
balance sheet, reflecting $422,478,000 in shareholder equity a
month earlier, upsidedown to reflect a $281,343,000 shareholder
deficit immediately thereafter.  

The 1995 Leveraged Recapitalization Transaction, Haskell
concludes, rendered Bruno's insolvent, stripped Bruno's of assets
sufficient for it to meet its debts and obligations as they
matured and replaced 7% debt with 10.5% (and higher) debt.  The
Recapitalization operated as a fraud on Bruno's existing and
future creditors, Haskell charges.  

Each Defendant, by its participation in the Leveraged
Recapitalization, Haskell alleges, was reckless and knew or
should have known the outcome would be financial failure.  KKR
dominated and controlled Bruno's and orchestrated the events that
transpired.  KKR's affiliates are jointly and severally liable
for KKR's misdeeds pursuant to Sections 10-8-51 through
10-8-56 of the Code of Alabama.  Mr. Bruno received over
$70,000,000 on account of his stock holdings at the time.  The
officers and directors breached their fiduciary duties.  Chemical
was a reckless lender.  Murray Devine rendered a junk solvency
opinion.  The Leveraged Recapitalization imposed such a heavy
debt obligation on Bruno's that it could not meet its
debt service requirements and could no survive as a business
entity, Haskell asserts, and responsibility lands with these
Defendants.

Haskell complains that the Leveraged Recapitalization did not
give Bruno's reasonably equivalent value for the money and assets
it gave up, violative of the Alabama Fraudulent Transfer Act,
Sections 8-9A-1, et seq., of the Code of Alabama.  

Haskell asks the Alabama Court to certify an estimated 1,700
noteholders as a class pursuant to Rule 23 of the Alabama Rules
of Civil Procedure, and enter judgment for (i) compensatory
damages, to be adduced in a jury trial, suffered by noteholders
against the Defendants, (ii) punitive damages resulting from the
Director Defendants' willful and reckless breaches of their
fiduciary duties, and (iii) imposition of a constructive
trust on all monies received by the Defendants. (Bruno's
Bankruptcy News Issue 25; Bankruptcy Creditors' Services Inc.)


CHASTAIN CAPITAL: Constable Firms Holding Over 5% Of Shares
-----------------------------------------------------------
Chastain Capital Corporation reports 8.38% of the outstanding
shares of its common stock is beneficially owned by John
Constable d/b/a Constable Asset Management, Ltd.   Mr. Constable
has shared voting and dispositive power over 616,000 shares of
common stock while Constable Partners, L.P. holds shared voting
and dispositive power over 496,000 shares, representing 6.75%
of the total outstanding shares of the company.


CONTINENTAL RESOURCES: Sales Higher/Quarter Sees Net Income
-----------------------------------------------------------
For the three months ended June 30, 1999 net income for
Continental Resources Inc. was $2.0 million, an increase in net
income of $7.2 million from the loss of $5.2 million for the
comparable period in 1998. This increase in net income is due
primarily to higher oil and gas prices, improved margin on oil
marketing activities and reduced operating expenses. The revenues
for the period were $55.3 million.  For comparison the three
months ending in June 1998 showed revenues of $20.0 million but
losses of the $5.2 million mentioned.

In the six months ended June 30, 1999 the company experienced a
net loss of $1.0 million against revenues of $160.3 million.  In
the same six month period of 1998 net loss was $3.5 million on
revenues of $44.1 million.

The company's wholly owned subsidiaries, Continental Gas, Inc.
and Continental Crude Co., have guaranteed the Senior
Subordinated Notes and the Credit Facility.  In February 1999,
the company borrowed $4.6 million against its revolving credit
facility.  Subsequent to June 30, 1999 the company has made
payments of $1.6 million to reduce the borrowings against
its Credit Facility.  The current borrowing base of the Credit
Facility is $25 million until October 1, 1999 when the next
redetermination is expected to take place.


CORAM RESOURCE: Apria Healthcare Announces Involuntary Bankruptcy
-----------------------------------------------------------------
Apria Healthcare Group Inc. (NYSE: AHG) announced that two of its
wholly owned subsidiaries have joined with other unsecured
creditors to file an involuntary bankruptcy petition against
Coram Resource Network, Inc., a subsidiary of Coram Healthcare
Corporation.  The involuntary petition was filed in the United
States Bankruptcy Court in Delaware.

The Apria subsidiaries, Apria Healthcare, Inc. and Apria
Healthcare of New York State, Inc., had previously commenced a
state court lawsuit against Coram Healthcare Corporation and its
subsidiaries, Coram Resource Network, Inc. and Coram Independent
Practice Association, Inc.  That lawsuit was filed in Superior
Court in Orange County, California in order to collect
approximately $1.4 million in unpaid past due invoices.  The
total amount of unpaid past due invoices being sued for is
expected to climb to approximately $2.1 million as additional
unpaid invoices age and become past due.

The Apria subsidiaries originally contracted in 1998 with Coram
Resource Network to provide home medical services to patients
referred to Coram by Aetna U. S. Healthcare under a Coram/Aetna
agreement that is now the subject of litigation between those
parties.  After providing the required services to Coram's
patients and otherwise fulfilling their obligations to Coram
Resource Network, Apria and other subcontracted providers were
advised by the Coram entities that, apparently as a result of
Coram's dispute with Aetna U.S. Healthcare, the Coram entities
would not be paying for the services for which they had
contracted.

Apria and the other Coram creditors filed the involuntary
bankruptcy petition only after discussions with the Coram
entities and commencement of the collection litigation failed to
produce any progress toward obtaining payment.

Philip L. Carter, Chief Executive Officer, stated, "This action
was taken only after exhausting all possible means to collect
what is contractually due to Apria." Mr. Carter added that Apria
intends to maintain its conservative approach to the expensing of
doubtful accounts receivable and have all of the $2.1 million, or
4 cents per share, reserved at the end of the third quarter.

Apria provides respiratory therapy, home infusion and home
medical equipment through 320 branches serving patients in 50
states.  With over $900 million in annual revenues, it is the
nation's leading homecare company.


CORAM RESOURCE: Statement Regarding Involuntary Petition
--------------------------------------------------------
A small group of providers with claims amounting to
approximately $ 2.1 million filed on Aug. 19, 1999 an Involuntary
Chapter 11 Bankruptcy Petition against Coram Resource Network
Inc., a subsidiary of Coram Healthcare Corp (NYSE:CRH).

The filing is not against Coram Healthcare, the parent company,
or any of Coram Healthcare's other subsidiaries. The group of
providers, which includes Apria Healthcare Inc., a Coram
competitor, rendered services pursuant to contracts with Coram
Resource Network Inc. Coram Healthcare has also learned
that Apria and one of its affiliates filed suit on Aug. 16, 1999
in California State Court regarding their specific provider
claims that allegedly total approximately $ 2 million. The
services were rendered as part of a network in connection with a
Master Agreement between Coram Healthcare and Aetna U.S.
Healthcare for the management of Aetna's home healthcare services
in eight states in the Northeast and Mid-Atlantic.

Coram Healthcare has filed a lawsuit against Aetna, alleging
claims for fraud, negligent misrepresentation, breach of
contract, and rescission related to the Master Agreement which
Coram terminated effective June 30, 1999. In its lawsuit against
Aetna, Coram is seeking damages in excess of $ 50 million,
including damages related to these provider claims.

Coram Healthcare and Coram Resource Network Inc. are disappointed
by the Petition because Coram Resource Network Inc. was working
toward reconciling the amounts due to providers so as to pay the
providers amounts properly due. The steps Coram Resource Network
Inc. has taken have included attempting to get Aetna to pay
various claims since Aetna has previously drawn on $ 14.5 million
worth of letters of credit earmarked to pay the providers. Coram
Resource Network Inc. will analyze the filings, raise any
applicable defenses, pursue all available grounds for dismissal
of the involuntary petition, and assert any applicable claims
against the petitioning providers and any counterclaims
against applicable parties at the appropriate time.

Denver-based Coram is a leading provider of high quality home
infusion therapy operating from 90 locations in 44 states and
Ontario, Canada. Through its Resource Network division, the
company manages networks of home healthcare providers on behalf
of managed care plans and other payers. Coram's Prescription
Services Division provides pharmacy benefit management services
as well as mail order prescription drugs for chronically ill
patients. The Clinical Research and Medical Informatics Division
provides home care and product development services
to pharmaceutical, biotechnology and medical device companies
sponsoring clinical trials.


DAI-ICHI KANGYO: Merger Of 3 Banks Announced
-----------------------------------------------------
In a surprise, blockbuster deal that signifies Japan's
efforts to restructure its ailing economy, three major Japanese
banks said Friday that they will merge to create the world's
largest financial group.

The three banks -- none household names outside of Japan -- are
coming together because they faced uncertain futures alone,
trapped between the forces of Japan's debilitating recession and
intensified competition from globe-spanning American and European
financial institutions.

The merger will change the international financial landscape,
leapfrogging the combined banks -- the Industrial Bank of Japan,
Dai-Ichi Kangyo Bank and Fuji Bank -- over competitors, including
Germany's Deutsche Bank, which is now ranked No. 1 worldwide in
asset size. No. 2 is UBS of Switzerland, followed by Citigroup of
the U.S.

Skepticism swirls around the meaning of the bank deal because
analysts have been burned before by predicting that Japan was
ready to embark on a new path, only to see it retreat.

Bank officials on Friday portrayed the deal in a way that would
be very familiar for American or European bank mergers. Combining
forces, they said, could improve their efficiency and
profitability, and they predicted they would be one of the
world's top five financial houses, with interests
in consumer and corporate banking and securities.

They said they could cut $1 billion in costs by eliminating
redundant business operations and eliminating 6,000 jobs over
five years. And perhaps symbolically, in a list of five basic
principles they will follow, they mentioned "maximize shareholder
value" ahead of "offer attractive job opportunities to
employees."

The banks also indicated that they made the decision to merge.
They were not led by the government, which is the way the old
system worked.

But in some ways, the deal sounded very typically Japanese. The
banks indicated it would take several years to combine operations
under a holding company, and they did not identify which bank
would be the surviving entity. They also preferred to use the
word "consolidate" rather than "merge," though clearly their
plans call for a merger.

The most important issue may be that none of the banks is
healthy, and it is questionable whether they would have survived
to get to this point in any country but Japan. Over the past four
years, the three banks have lost more than $20 billion.

The strongest argument supporting Japan's deregulatory momentum
is that while the bank deal came as a surprise, it didn't come
out of the blue. The government has been working on financial
deregulation since 1996 when it accepted the idea that Japanese
banks could only improve themselves by facing stiffer
international competition in the Tokyo market. Under "Big Bang"
deregulation, for example, foreign players gained greater access
to the Japanese market, and banks could sell mutual funds.

Then came Japan's financial crisis, in which banks were finally
caught holding massive loads of bad loans they hadn't wanted to
acknowledge because they believed Japan's weak economy would
eventually improve. When it didn't, they were forced to deal with
$1 trillion of bad loans.

Earlier this year, the government finalized a bailout of the
banking sector, doling out billions of dollars to 15 banks --
including all three of the merging banks -- in exchange for
promises that the banks would get their houses in order. The
merger is clearly a result of the bailout.

Overall, the banking industry has undergone a quiet revolution in
the past two years, since a major regional bank in Northern Japan
went bankrupt. In the past year, the government seized two big
insolvent banks, while several smaller trust banks have arranged
mergers or alliances.

The Financial Supervisory Agency, Japan's newly created financial
watchdog agency, has predicted that the number of major banks
would decline dramatically. With Friday's merger announcement,
the number of major banks operating independent of any alliance
has declined from 20 to nine.


DAILEY: Plan Confirmed By Court; Acquisition Moves Ahead
--------------------------------------------------------
Weatherford International, Inc. (NYSE: WFT) today announced that
Dailey's (OTC Bulletin Board: DALY) pre- negotiated plan of
reorganization has been confirmed by the United States Bankruptcy
Court for the District of Delaware. The confirmation of the plan,
which had been overwhelmingly supported by the holders of
Dailey's 9 1/2% Senior Notes due 2008, clears the way for the
acquisition of Dailey by Weatherford.  The transaction is
expected to close August 31, 1999.

Dailey International is a leading provider of specialty drilling
equipment and services to the oil and gas industry and designs,
manufactures and rents proprietary downhole tools for oil and gas
drilling and workover applications worldwide.

Houston-based Weatherford International, Inc. is one of the
largest global providers of engineered products and services to
the drilling and production sectors of the oil and gas industry.


EATON'S: Files For Bankruptcy
-----------------------------
Canada's oldest department store chain, T. Eaton Co.,
said late Friday it filed under federal bankruptcy laws for 30
days to allow it to create a proposal for creditors and added
that it would start liquidating its inventory early next week.

Eaton's said in a news release that it filed notice that it plans
to make a proposal to creditors under the bankruptcy and
insolvency act.

The retailer, which has been in dire straits for months, said in
the late Friday press release that the notice would give it 30
days to give a proposal to its creditors "during which time it
intends to pursue discussions with parties who have expressed
interest in purchasing its assets or shares."

Earlier in the day, the retailer's stock was halted and it issued
a statement denying media reports that it was in talks on selling
assets to Cincinnati-based Federated Department Stores Inc. It
also said it was closing its nine Quebec stores.


FUJI BANK: Merger Of 3 Banks Announced
--------------------------------------
In a surprise, blockbuster deal that signifies Japan's
efforts to restructure its ailing economy, three major Japanese
banks said Friday that they will merge to create the world's
largest financial group.

The three banks -- none household names outside of Japan -- are
coming together because they faced uncertain futures alone,
trapped between the forces of Japan's debilitating recession and
intensified competition from globe-spanning American and European
financial institutions.

The merger will change the international financial landscape,
leapfrogging the combined banks -- the Industrial Bank of Japan,
Dai-Ichi Kangyo Bank and Fuji Bank -- over competitors, including
Germany's Deutsche Bank, which is now ranked No. 1 worldwide in
asset size. No. 2 is UBS of Switzerland, followed by Citigroup of
the U.S.

Skepticism swirls around the meaning of the bank deal because
analysts have been burned before by predicting that Japan was
ready to embark on a new path, only to see it retreat.

Bank officials on Friday portrayed the deal in a way that would
be very familiar for American or European bank mergers. Combining
forces, they said, could improve their efficiency and
profitability, and they predicted they would be one of the
world's top five financial houses, with interests
in consumer and corporate banking and securities.

They said they could cut $1 billion in costs by eliminating
redundant business operations and eliminating 6,000 jobs over
five years. And perhaps symbolically, in a list of five basic
principles they will follow, they mentioned "maximize shareholder
value" ahead of "offer attractive job opportunities to
employees."

The banks also indicated that they made the decision to merge.
They were not led by the government, which is the way the old
system worked.

But in some ways, the deal sounded very typically Japanese. The
banks indicated it would take several years to combine operations
under a holding company, and they did not identify which bank
would be the surviving entity. They also preferred to use the
word "consolidate" rather than "merge," though clearly their
plans call for a merger.

The most important issue may be that none of the banks is
healthy, and it is questionable whether they would have survived
to get to this point in any country but Japan. Over the past four
years, the three banks have lost more than $20 billion.

The strongest argument supporting Japan's deregulatory momentum
is that while the bank deal came as a surprise, it didn't come
out of the blue. The government has been working on financial
deregulation since 1996 when it accepted the idea that Japanese
banks could only improve themselves by facing stiffer
international competition in the Tokyo market. Under "Big Bang"
deregulation, for example, foreign players gained greater access
to the Japanese market, and banks could sell mutual funds.

Then came Japan's financial crisis, in which banks were finally
caught holding massive loads of bad loans they hadn't wanted to
acknowledge because they believed Japan's weak economy would
eventually improve. When it didn't, they were forced to deal with
$1 trillion of bad loans.

Earlier this year, the government finalized a bailout of the
banking sector, doling out billions of dollars to 15 banks --
including all three of the merging banks -- in exchange for
promises that the banks would get their houses in order. The
merger is clearly a result of the bailout.

Overall, the banking industry has undergone a quiet revolution in
the past two years, since a major regional bank in Northern Japan
went bankrupt. In the past year, the government seized two big
insolvent banks, while several smaller trust banks have arranged
mergers or alliances.

The Financial Supervisory Agency, Japan's newly created financial
watchdog agency, has predicted that the number of major banks
would decline dramatically. With Friday's merger announcement,
the number of major banks operating independent of any alliance
has declined from 20 to nine.


GOLDEN BOOK: Awaits Approval Of Plan - Losses Continue
------------------------------------------------------
Second quarter 1999 figures for the quarter ending June 26, 1999
show Golden Books Family Entertainment Inc. to have experienced a
net loss of $8,600.  The net revenue in the same quarter was
$31,855.  In the comparison second quarter of 1998 net losses
were $30,875 on net revenues of $43,145.

The company, operating as a debtor-in-possession, had net losses
for the first half of 1999 of $19,754 on net revenues of $66,624.  
The first half of 1998 net losses were $51,672 on net revenues of
$89,679.

As a result of the February 26, 1999, bankruptcy filing, the
holders of the company's preferred securities, at their option,
can demand acceleration of the $109.8 million due under the
preferred securities agreement.  Golden Books does not have
sufficient resources to repay this obligation.  The company has
not been informed of any acceleration of payment.  Additionally,
as a result of the bankruptcy filing, the company
stopped recording interest expense related to the preferred  
securities effective February 26, 1999 and at June 26, 1999 the
preferred securities have been classified as a liability subject
to compromise under the terms of the Joint Plan of Reorganization
which the company has filed with the Bankruptcy Court (which is
subject to approval).  Under that Plan the preferred securities
will be converted into 50% of the company's new common stock to
be issued post recapitalization, prior to dilution.

Golden Books' common stock was delisted  from the NASDAQ  
National  Market on February 17, 1999 for failure to meet
continued listing standards. The company's common stock is
currently being quoted on the OTC bulletin board.


HAYES: Xircom Blocked in Attempt to Obtain License
--------------------------------------------------
The Delaware bankruptcy court presiding over the bankruptcy of
Hayes Corporation ruled that a patent license granted to Hayes by
3Com's predecessor, Megahertz, for rights to practice 3Com's
patented XJACK(R) technology is not assumable, assignable or
otherwise transferable to Xircom.

Xircom, a competitor of 3Com, bid $ 4 million for the license to
use 3Com's XJACK technology and related assets. Xircom's bid for
the XJACK pop-out connector license was the largest single bid in
the Hayes bankruptcy auction, which resulted in slightly more
than $ 11 million in total asset bids.

The XJACK connector is a patented 3Com design that has become the
industry standard for the PC Card modem and Ethernet options used
in most notebook PCs. It eliminates the need to carry extra
connecting cables, or "dongles" as they are known in the PC
industry. Built with the same high-strength industrial
plastic used in fighter plane cockpit covers, the connector works
much like a ball point pen by clicking in or clicking out of the
side of the notebook to a reveal a sturdy RJ-11 phone or RJ-45
Ethernet connector. Over six million 3Com Megahertz PC Cards have
shipped with XJACK connectors since 1993.


HOMELAND HOLDING: Soros & Satellite Funds Hold 13% Of Stock
-----------------------------------------------------------
Soros Fund Management LLC, George Soros and Stanley F.
Druckenmiller each beneficially own 640,541, or 13.05%, of the
outstanding shares of common stock of Homeland Holding
Corporation.  Satellite Asset Management, L.P. and Satellite Fund
Management LLC each are deemed to beneficially own the
same number of shares but hold sole voting and dispositive power
over the shares.   Mark Sonnino, Lief D. Rosenblatt and Gabriel
Nechamkin each beneficially own the 640,541 shares but have
shared voting and dispositive power over the shares.

The statement filed with the SEC constitutes an initial filing
with respect to Satellite LP, Mr. Sonnino and Mr. Nechamkin.  
Additionally, the shares relate to those held for the account of
Quantum  Partners LDC, a Cayman Islands exempted limited duration
company.  SFM LLC, a Delaware limited liability  company, serves
as principal investment  manager to Quantum  Partners and has
been granted investment discretion over portfolio investments,
including the shares held for the account of Quantum Partners.
SFM LLC, on behalf of Quantum Partners, has granted investment
discretion over certain investments, including the shares, to
Satellite  LP, pursuant to an investment management contract
between Quantum Partners and Satellite LP.  Satellite LLC is the
general partner of Satellite LP.  None of SFM LLC, Mr. Soros and
Mr.  Druckenmiller currently exercises voting or dispositive
power over the shares held for the account of Quantum Partners.
Mr. Soros is the Chairman of SFM LLC.  Mr. Druckenmiller is the
Lead Portfolio Manager and a member of the Management Committee
of SFM LLC. Mr. Sonnino, Mr. Rosenblatt and Mr. Nechamkin are
managing members of Satellite LLC.


INDUSTRIAL BANK OF JAPAN: Merger Of 3 Banks Announced
-----------------------------------------------------
In a surprise, blockbuster deal that signifies Japan's
efforts to restructure its ailing economy, three major Japanese
banks said Friday that they will merge to create the world's
largest financial group.

The three banks -- none household names outside of Japan -- are
coming together because they faced uncertain futures alone,
trapped between the forces of Japan's debilitating recession and
intensified competition from globe-spanning American and European
financial institutions.

The merger will change the international financial landscape,
leapfrogging the combined banks -- the Industrial Bank of Japan,
Dai-Ichi Kangyo Bank and Fuji Bank -- over competitors, including
Germany's Deutsche Bank, which is now ranked No. 1 worldwide in
asset size. No. 2 is UBS of Switzerland, followed by Citigroup of
the U.S.

Skepticism swirls around the meaning of the bank deal because
analysts have been burned before by predicting that Japan was
ready to embark on a new path, only to see it retreat.

Bank officials on Friday portrayed the deal in a way that would
be very familiar for American or European bank mergers. Combining
forces, they said, could improve their efficiency and
profitability, and they predicted they would be one of the
world's top five financial houses, with interests
in consumer and corporate banking and securities.

They said they could cut $1 billion in costs by eliminating
redundant business operations and eliminating 6,000 jobs over
five years. And perhaps symbolically, in a list of five basic
principles they will follow, they mentioned "maximize shareholder
value" ahead of "offer attractive job opportunities to
employees."

The banks also indicated that they made the decision to merge.
They were not led by the government, which is the way the old
system worked.

But in some ways, the deal sounded very typically Japanese. The
banks indicated it would take several years to combine operations
under a holding company, and they did not identify which bank
would be the surviving entity. They also preferred to use the
word "consolidate" rather than "merge," though clearly their
plans call for a merger.

The most important issue may be that none of the banks is
healthy, and it is questionable whether they would have survived
to get to this point in any country but Japan. Over the past four
years, the three banks have lost more than $20 billion.

The strongest argument supporting Japan's deregulatory momentum
is that while the bank deal came as a surprise, it didn't come
out of the blue. The government has been working on financial
deregulation since 1996 when it accepted the idea that Japanese
banks could only improve themselves by facing stiffer
international competition in the Tokyo market. Under "Big Bang"
deregulation, for example, foreign players gained greater access
to the Japanese market, and banks could sell mutual funds.

Then came Japan's financial crisis, in which banks were finally
caught holding massive loads of bad loans they hadn't wanted to
acknowledge because they believed Japan's weak economy would
eventually improve. When it didn't, they were forced to deal with
$1 trillion of bad loans.

Earlier this year, the government finalized a bailout of the
banking sector, doling out billions of dollars to 15 banks --
including all three of the merging banks -- in exchange for
promises that the banks would get their houses in order. The
merger is clearly a result of the bailout.

Overall, the banking industry has undergone a quiet revolution in
the past two years, since a major regional bank in Northern Japan
went bankrupt. In the past year, the government seized two big
insolvent banks, while several smaller trust banks have arranged
mergers or alliances.

The Financial Supervisory Agency, Japan's newly created financial
watchdog agency, has predicted that the number of major banks
would decline dramatically. With Friday's merger announcement,
the number of major banks operating independent of any alliance
has declined from 20 to nine.


IRIDIUM: Ebay Online Removes Customer's Offer To Auction Shares
---------------------------------------------------------------
Auction house eBay Inc. removed a customer's offer to auction
shares in satellite telephone company Iridium LLC, saying it was
against company policy to sell stocks on its site.

Trading in shares of Iridium, which allows customers to make
phone calls from anywhere in the world via a system of 66
satellites, has been halted on Nasdaq since last Friday, when
Iridium filed for Chapter 11 bankruptcy protection.

A shareholder had offered to sell a stock certificate for 1,300
Iridium shares through eBay, with an asking price of at least
$6,500. That would value the shares at $5 each. The stock last
traded on Nasdaq last Friday at 3-1/16.

The listing, which several legal experts and stock traders said
was the first such offering they had heard of, sparked debate
about whether it was legal to offer stock certificates online
while exchange trading in the shares was halted.

A spokesman for San Jose, Calif.-based eBay said the company does
not allow customers to sell stock on its site because of possible
legal and regulatory issues.

"There are a number of complex sets of regulations that can apply
to stock sales," Kevin Pursglove said in a telephone interview.
"Because of the complexity, we just decided that we would not
allow the sale of stock on our site."

Pursglove said the ban on stock sales has been in place for
several months. The Iridium shares found their way onto the site
because eBay does not pre-screen items listed for auction, but
relies on other customers to patrol the site and ensure the
offerings meet its requirements, he said.

Trading in Iridium shares was halted last Friday after the
company filed for protection from its creditors under Chapter 11
of the U.S. Bankruptcy Code.

Iridium has struggled to sign up subscribers to its pricey
service and has fallen well short of its revenue targets.


IRIDIUM: Rejected Proposal Contained Inaccurate Data
----------------------------------------------------
Iridium LLC revealed the basis of its pre-bankruptcy negotiations
with its creditors, and the satellite telephone operator says
that certain projections provided to its bondholders during
those negotiations now contain inaccurate information. Iridium
made the disclosures in a Form 8-K filed with the Securities and
Exchange Commission, which, according to widespread reports,
contained its latest restructuring proposal. The offer made late
last week, if approved by creditor constituencies, would have
given bondholders a third of the company's equity and holders of
an additional $500 million in debt obligations another 12 percent
of the equity. Nevertheless, Iridium said its bondholders did not
agree to the proposal. (The Daily Bankruptcy Review and ABI
Copyright c August 20, 1999)


LACLEDE STEEL: Operating In Difficult Market
--------------------------------------------
On November 30, 1998, as a result of a decline in Laclede Steel
Company's results of operations during the nine months ended
September 30, 1998 reflecting, among other factors the
deterioration in steel demand and selling prices since the end of
1997, the company and its subsidiaries filed voluntary petitions
for reorganization under Chapter 11 of the United States
Bankruptcy Code. The company is in possession of its properties
and assets and continues to operate with its existing directors
and officers as debtors-in-possession.

Laclede intends to present a plan of reorganization to the
Bankruptcy Court to reorganize the company's businesses and to
restructure the its obligations. The exclusive filing time period
has been extended by the Bankruptcy Court until September 30,
1999.

Net sales decreased by $20.5 million in the quarter ended June
30, 1999 to $56,354, compared to the same period of the prior
year when net sales were $76,840.  This reflects a 23.1% decrease
in steel shipments, as well as a 5.9% decrease in average sales
prices for steel products. The company says sales efforts in the
quarter ended June 30, 1999 continued to be hampered
by the overall weak demand for steel products. and that shipments
of wire products were adversely affected by the shutdown of the
company's Memphis Wire Mill in July 1998.  The company
experienced a net loss in the quarter ended June 30, 1999 of
$1,627 as compared to the net loss of $65,468 suffered in the
same quarter of 1998.

Net sales decreased by $56.7 million in the nine months ended
June 30, 1999 to $184,363 when compared to the same period of the
prior year when net sales were $241,068.  Net losses in the same
nine month period ended June 30, 1999, were $3,466, in the nine
month period of 1998 net losses were $7,178.


LONG JOHN SILVER: Court Approves Financial Plan
-----------------------------------------------
Long John Silver's announced that the U.S. Bankruptcy Court for
the District of Delaware has approved its plan of reorganization
paving the way for closing on the sale of the company to A&W
Restaurants Inc. on Sept. 1.

According to John M. Cranor, chairman and chief executive officer
for the seafood chain, "Our emergence from Chapter 11 marks a
major milestone in the company's history.  In addition, our
merger with A&W is a testament to the strength of the brand.  
Approval of our plan allows us to restructure our balance sheet
and escape the burden of the large debt we've been carrying since
the 1989 leveraged buyout.

"Several refinancing efforts since the LBO were well-intentioned
but half- step measures that failed to free up cash flow for
operations and capital improvements.  As of today, Long John
Silver's has a fresh start and access to sufficient capital to
grow the business in the years ahead," Cranor said.

Long John Silver's faced many serious financial challenges since
1989. The company was acquired by senior management and a group
of New York investment firms for more than $600 million.  In
March of this year, Long John Silver's board entered an agreement
to merge with A&W Restaurants as part of its reorganization plan.  
Under the terms of the plan both companies will become wholly-
owned subsidiaries of a new holding company -- Yorkshire
Global Restaurants.

Long John Silver's will maintain its support center in Lexington.
A&W Restaurants will continue to operate from its headquarters in
Farmington Hills, Mich.  Long John Silver's is the nation's
largest quick service seafood restaurant chain with more than
1,200 restaurants in 37 states.

The company's two top executives -- John M. Cranor III, chairman
and chief executive officer, and Nana Mensah, president and chief
operating officer, will resign as part of the merger agreement
and might start a restaurant business of their own, Cranor said.     


NEXTWAVE: DIP Lender Endorses and Supports Plan
-----------------------------------------------
BFD Holdings, Ltd., the general partner of the super majority
participant in NextWave Telecom Inc.'s Debtor In Possession loan,
today announced that it has reaffirmed its continuing support
for, and endorsement of, NextWave's First Amended Plan of
Reorganization and urges NextWave's creditors and equity holders
to vote in favor of that Plan. BFD noted that last week U.S.
Bankruptcy Court Judge Hardin has issued a Temporary Restraining
Order subject to further consideration at a subsequent hearing
restraining Nextel Communications, Inc. (Nasdaq: NXTL) from
further attempts to interfere with NextWave's reorganization
efforts absent further order of the Bankruptcy Court.  In
response to these events, an official of BFD stated, "The current
plan, as proposed by NextWave, is not only fair and reasonable to
all parties affected, it is the only confirmable plan that has
been presented to the Bankruptcy Court, under which NextWave can
get out of bankruptcy."

BFD has read Nextel's recent 8K related to their FCC/DOJ
understanding. The Nextel 8K annexes the deal term sheet as its
first exhibit.  Investors are also urged to read the second
exhibit to the 8K , which is the cover letter to the
FCC/DOJ deal.  That cover letter plainly states that this
agreement is merely FCC staffers agreeing to recommend that the
FCC accept the term sheet agreement. Therefore earlier statements
from Nextel alluding to having "reached agreement with the US
Department of Justice and the FCC, and received their endorsement
of Nextel's contemplated plan," were premature and, in BFD's
view, perhaps somewhat misleading.  It is clear from all of the
documents that the FCC has not granted Nextel any of the licenses
in question, nor has it even formally agreed to the basic terms
of the deal. Moreover, to those familiar with FCC rules and
regulations, it is rather obvious that such a deal, if actually
approved by the FCC, would likely require significant further FCC
waivers, through a very extensive and lengthy rule making
process.  Those waivers would include a waiver of the applicable
designated entity and unjust enrichment rules for the
Entrepreneur's Block. BFD is concerned that the purpose of the
FCC/DOJ/Nextel agreements may merely be to stall or derail the
debtor's Plan of Reorganization.

The C Block Spectrum covered by these rules was intended to
create  competition for the incumbent wireless providers and to
give small entrepreneurial businesses the chance to enter the
wireless business. NextWave is uniquely suited to do this, as it
plans to be a "carrier's carrier" or wholesaler of airtime.  This
will allow many resellers to enter the wireless business without
having to invest billions of dollars into network equipment and
licenses, creating competition and reducing prices.

BFD believes that if the FCC were to approve the current "term
sheet" deal with incumbent carrier Nextel it would appear to
eviscerate Congress's intended purpose of C Block Spectrum use.  
Furthermore, if the FCC is interested in changing the use
purposes of this spectrum, the agency would likely require
congressional approval before agreeing to transfer C Block
licenses to Nextel.

While it does not appear that the FCC and the DOJ have entered
into serious settlement discussions with NextWave, the FCC
staff's expression of its inclination to settle the case through
an agreement with Nextel seems to signal a willingness to settle
the case.  BFD is encouraged that such efforts will commit the
FCC to putting the C Block Spectrum into public use, rather than
just continuing the litigation.  However, BFD is disheartened
that FCC staffers would seek to settle the NextWave litigation
through Nextel, rather than settle with NextWave, which is now
fully financed and poised to initiate immediate buildout
of the most advanced wireless network to serve the United States.

BFD remains hopeful that the FCC commissioners and the DOJ will
work with NextWave to settle their differences.
  

MARKER INTERNATIONAL: Affiliates File Chapter 11
------------------------------------------------
Salt Lake City's Marker International, a manufacturer of ski
bindings and snowboards, and two of its affiliates filed chapter
11 yesterday in the U.S. Bankruptcy Court for the District of
Delaware in Wilmington, according to Reuters. Marker, a holding
company that operates through two affiliates, DNR North America
Inc. and DNR USA Inc., listed assets of $6.3 million and
liabilities of $78.2 million. In March, Marker said it agreed to
be acquired by CT Sports Holding AG of Switzerland, and the July
31 purchase agreement that was made provided for the sale to be
effected through a pre-negotiated chapter 11 that was to commence
by today. Marker's chief executive, Peter Weaver, said that the
company had successfully restructured all of its major credit
agreements and that it hoped to emerge from chapter 11 in 30-50
days. (ABI 20-Aug-99)


MARVEL ENTERPRISES: October Acquisitions Boost Sales/Losses Shown
----------------------------------------------------------------
Marvel Enterprises Inc.'s net sales increased 26% to
approximately  $61.5 million for the three months ended June 30,
1999 from approximately $48.7 million in the corresponding 1998
period.  The increase was said to be due primarily to the
inclusion of approximately   $7.1 million in sales from
the Licensing division and approximately  $10.8 million in sales
from the Publishing division in the 1999 period. The Licensing
and Publishing divisions were acquired on October 1, 1998 and
were not included in the company's financial results for the 1998
period.  Toy Biz sales decreased by approximately $5.1 million
from the 1998 period to the 1999 period primarily due to shipment
of product related to the Godzilla feature film in the 1998
period that did not recur in the 1999 period, and a decline in
the sales of Marvel-related product, offset by sales of World
Championship Wrestling action figures, a product line that was
introduced in 1999.  Notwithstanding the higher net sales in the
June 1999 quarter net loss was $9,070.  In the comparable 1998
period net income was $2,106.

The company's net sales increased 50% to approximately $136.8
million for the six months ended June 30, 1999 from approximately
$91.3 million in the corresponding 1998 period.  The increase in
that period was due primarily to the inclusion of approximately
$22.4 million in sales from the Licensing division and
approximately $21.2 million in sales from the Publishing division
in the 1999 period. Net loss experienced in the six months ended
June 30, 1999 was $11,997 as opposed to net income of $3,182
in the same period in 1998.


ONEITA INDUSTRIES: Judge Orders Sale
------------------------------------
As reported by The Post and Courier, Charleston, S.C. on August
19, 1999, a bankruptcy judge has ordered that a trustee take
control of Oneita Industries and sell what's left of the once
thriving T-shirt and baby clothes maker to settle debts.

The ruling signals the latest -- and one of the final -- chapters
for the North Charleston-based textile company, which disclosed
this spring that it planned to wind down operations and close or
dispose of its plants and equipment after 125 years in business.

The liquidation had proceeded via Chapter 11 of the U.S.
Bankruptcy Code, where the company could retain some oversight of
its business.

Late Friday, the case was converted to a Chapter 7, where a
trustee manages the sale of properties.

The move came over the objections of major creditor Foothill
Capital, according to bankruptcy court filings in Delaware where
Oneita is incorporated.

Michael B. Joseph, a Wilmington, Del., attorney who specializes
in bankruptcy law, was named interim trustee this week.

U.S. Bankruptcy Judge Mary F. Walrath is presiding judge.

Oneita, which employed 2,100 people as recently as this winter,
had been reduced to a skeletal crew. It has closed all its
operations, including its North Charleston headquarters, which
once had 120 workers; its Andrews sewing mill employing 100
people; and larger plants in Alabama and in Jamaica.

The company in April sold its Juarez, Mexico, sewing plant to
South Carolina Tees Inc., headquartered in Columbia. It also
disposed of unsold T-shirts at its Atlanta warehouse and held a
court-ordered sale of equipment in July.

Once the nation's fourth largest T-shirt maker, Oneita rolled up
$135 million in losses in its last three years as an apparel
glut, lower-priced imports and competition dried up sales and
compressed profit margins.

The downward cycle came on the heels of Oneita investing more
than $10 million in a state-of-the-art plant in Fayette, Ala. In
1996, the company cut dozens of middle management jobs and last
year closed a mill in Kinston, N.C., but could not stop the
slide.

In early 1998, Oneita filed for protection from creditors,
disclosing plans to restructure $70 million in debts. Creditors
originally backed the reorganization but eventually balked as the
company said it was unable to meet certain financial conditions
of the debt refinancing.

Oneita stock, which trades on the Nasdaq Bulletin Board under the
symbol ONTAQ, closed Wednesday unchanged at 3 cents a share.


PEOPLES CHOICE TV: Sprint Merger Pending
----------------------------------------
Revenues for Peoples Choice TV Corporation decreased $1.6
million, or 23%, from the three month period ended June 30, 1998
to 1999 and $3.0 million, or 22%, for the six month period ended
June 30, 1999.  Revenues for the 1999 three month period were
$5,395,408; for the 1998 period, $7,019,170.   Revenues of the
1999 six month period were $10,994,225; for the six month
1998 period, $14,017,848.

For the three and six month periods ended June 30, 1999, the
company incurred net losses of approximately $18.6 million and
$39.0 million compared to $20.7 million and $39.0 million for the
comparable 1998 periods. These net losses are principally
attributable to the significant expenses incurred in connection
with the development of the company's business. The company
expects to continue to incur net losses while it develops and
expands its wireless communications systems.

On July 7, 1999, at a special meeting of Peoples Choice TV's
stockholders, the company's common and preferred stockholders
approved a merger agreement to merge the company with Sprint
Corporation.  Consummation of the merger remains subject to
customary closing conditions, including receipt of approval from
the Federal Communications Commission. As part of the merger,
Sprint will acquire all of the frequency licenses and leases the
company holds. If the merger has not closed by December 31, 1999,
the merger agreement may be terminated by Sprint or the company
unless the terminating party has defaulted under the agreement.
The company cautions that there can be no assurance this merger
will be completed.


PINNACLE MICRO: Without Immediate Funding Bankruptcy Looms
----------------------------------------------------------
As recently as two weeks ago Pinnacle Micro Inc. quoted
continuing adverse operating results as having caused the company
to incur significant losses and experience severe cash
constraints.  Sales have continually declined in light of
significant competition, price pressures and the uncertainty on
the part of potential customers over the financial condition of
the company.  The company has been unable to raise alternative
sources of funding to fund operating losses.  The company has
warned that absent an immediate infusion of capital or
significantly increased sales the company will seek protection
under the Federal bankruptcy laws.

Sales have continued to show substantial losses, with quarterly
sales significantly below historical levels and those levels
required for profitability, and the company's liabilities have
significantly exceeded its assets.  The company's liquidity
position continues to be severely constrained.  As a result, the
company is unable to pay its trade debt on a timely basis.  
Pinnacle Micro has sought and been unable to obtain a
forbearance agreement with its creditors.  The company advises
that in the event it is unable to obtain some sort of agreement
with the secured and/or unsecured creditors and immediate
funding, it will be unable to operate as a going concern and
indicates, once again, that it will seek protection
under the Federal bankruptcy laws.

Net sales were $1,788,000 and $4,006,000 for the thirteen weeks
ended March 28, 1998 and March 27, 1999, respectively,
representing a year to year decrease of 55%.  The decrease in
sales is primarily attributable to decreased unit sales as a
result of increased competition, the company's inability to
acquire products for sale because of the company's lack of
financial resources and the discontinuance of certain of the
company's legacy products. Virtually all of the company's vendors
will only sell to the company on a prepay basis.  The first
quarter of 1999 was adversely affected by significant declines in
the prices of disk drives, continued uncertainty among customers
created by the news of the company's operational and financial
difficulties, and the company's inability to purchase product
because of its financial condition.

Net losses for the first quarter of 1999 were $752,000 as
compared to net losses in the same quarter of 1998 of $938,000.


PROTEAM.COM: Announces Voluntary Chapter 11 Filing
--------------------------------------------------
Genesis Direct, Inc., doing business as PROTEAM.com,
(Nasdaq:PRTM) stated today that it has filed a voluntary petition
to reorganize under Chapter 11 of the United States Bankruptcy
Code. Under Chapter 11, PROTEAM.com will continue to operate its
business under court protection from creditors while it
formulates a reorganization plan. The petition was filed in the
U.S. Bankruptcy Court of Newark, New Jersey. The Company
determined that seeking Chapter 11 protection was appropriate in
order to continue the operation of its core business.

PROTEAM.com has obtained debtor-in-possession (DIP) financing to
fund its ongoing operations.  Harry Usher, recently appointed by
the Board as Chief Executive Officer of PROTEAM, stated, "While
the decision to file for Chapter 11 was difficult to make, it
clearly represented the most viable option as we pursue a
restructuring plan for our Company. Our core sports business is
strong, and PROTEAM continues to be the leader in innovative
thinking as proven by its groundbreaking ability to combine
television, print, radio and Internet marketing and sales
strategies. Due to these factors, we expect to emerge from
this process the continued leading e-tailer in the fan-based
sports market." PROTEAM.com is a leading e-tailer specializing in
the marketing and sales of sports and sports related products to
both fans and participants. The Company offers products directly
to consumers through several targeted websites and complementary
catalogs, television and radio advertising and other electronic
broadcast and print media.
  

STEEL HEDDLE: 2nd Quarter Sales Rise - Net Losses Continue
----------------------------------------------------------
Steel Heddle Group, Inc. is a Delaware corporation incorporated
in 1998. Steel Heddle Group is a holding company whose wholly-
owned subsidiary Steel Heddle Mfg. Co., a Pennsylvania
corporation, manufactures products and loom accessories used by
textile weaving mills and processes metal products from
its wire rolling facilities for use in the electronics, solar
power and automotive industries, among others. The company's
manufacturing plants are located in the southern United States,
Mexico, and Belgium. The company sells to foreign and domestic
companies.

Net sales increased $85 to $17,611 for the three months ended
June 26, 1999 compared to the three months ended June 27, 1998,
however, the company incurred a net loss of $2,144, 12.2% of net
sales, for the three months ended June 26, 1999 compared to  the
net loss of $109, 0.6% of net sales, for the three months ended
June 27, 1998.

Net sales decreased $652 for the six months ended June 26, 1999
compared to the six months ended June 27, 1998. The company
incurred a net loss of $4,549, 12.6% of net sales, for the six
months ended June 26, 1999 compared to net income of $2,392, 6.5%
of net sales, for the six months ended June 27, 1998.


THREE D DEPARTMENTS: Universal Capital to Manage Liquidation
------------------------------------------------------------
Universal Capital Group announced that it was the highest bidder
at the U.S. Bankruptcy Court auction to manage the inventory
liquidation for thirteen Three D Departments retail outlets,
including six stores in Arizona; three stores in California; and
four stores in Connecticut. Universal Capital Group was one of
five companies to submit bids to handle the inventory liquidation
for the closing outlets. Universal provided the highest bid and
was appointed sole liquidator by the U.S. Bankruptcy Court for
the Central District of California - Santa Ana Division for the
13 outlets.  

Universal began the liquidation sales on August 18, 1999 and is
still readying the stores for the large crowds expected.
The sale will continue until all inventory, which is valued at
$14 million, is sold.  The Three D outlets participating in the
inventory liquidation include:

Connecticut
-----------
532 Bushy Hill Rd.                  Simsbury (Farmington Valley
Mall)
1293 Silas Deana Hwy.               Wethersfield
425 Post Rd.                        Westport
665 Boston Post Rd. E               Old Saybrook

California
----------
22025 Hawthorne Blvd.               Torrance
16315 Culver Dr. No. 180            Irvine
27815 Santa Margarita Pkwy.         Mission Viejo

Arizona
-------

8999 E. Indian Bend Rd.             Scottsdale
8939 E. Indian Bend Rd.             Scottsdale
12805 North Tatum Blvd.             Phoenix
1919 E. Camelback Rd. No. 128       Phoenix (Camelback Colonnade
Mall)
8154 W. Bell Rd.                    Glendale
1345 S. Alma School Rd.             Mesa


WASTE SYSTEMS: Over 1/3 Common Stock Held By DDJ & Affiliates
-------------------------------------------------------------
DDJ Capital Management, LLC, together with B III Capital Parners,
L.P. and DDJ Capital III, LLC beneficially own 38.8% of the
outstanding shares of common stock of Waste Systems International
Inc.  On July 30, 1999, the Fund purchased 571,429 shares at a
price of $7.00 per share through a private placement by Waste
Systems.

Presently, then, the Fund beneficially owns, and DDJ III and DDJ
beneficially own as general partner and investment manager,
respectively, of the Fund, 8,019,955 shares (assuming conversion
of all of its notes and exercise of all its warrants).  David J.
Breazzano and Judy K. Mencher, each a principal of DDJ, serve on
the Board of Directors of Waste Systems and have been granted
stock options pursuant to the company's 1995 Stock Option Plan
for Non-employee Directors.  As of the date of stock filing
report, Mr. Breazzano may be deemed to beneficially own 7,000
shares of common stock as a result of ownership of stock options
exercisable within 60 days.  Also as of the date of that filing,
Ms. Mencher may be deemed to beneficially own 6,685 shares of
common stock as a result of ownership of stock options
exercisable within 60 days.


WICKES: Showing Increased Sales And Income For 1999
---------------------------------------------------
Wickes Inc. has made two acquisitions during 1999, both component
facilities, for a total cost of $7.2 million.  In January the
company acquired the assets of a wall panel manufacturer located
in Cookeville, Tennessee and at the end of March Wickes acquired
the assets of Porter Building Products, a manufacturer of trusses
and wall panels, located in Bear, Delaware.

On July 8,1999, the company entered into a First Amendment to its
Credit Agreement with its bank lenders.  Under this amendment,
the definition of unused availability contained in the company's
revolving line of credit agreement was modified.  Formerly,
"unused availability" was defined as the lesser of $160 million
or the borrowing base, less the total of outstanding loans and
credits.  As modified, "unused  availability" means the borrowing
base less the total of outstanding loans and  credits.
As a result, the maximum borrowing under the revolving credit
agreement of $160 million can now be fully utilized by Wickes.  
Under the former definition the maximum was limited to $145
million.

Wickes' net income for the three months ended June 26, 1999 was
$3.6 million compared with a net income of $2.8 million for the
three months ended June 27, 1998.   The increase in net income
for the three-month period is said to be primarily the result of
increased sales and gross profit, and other operating income.   
The positive impact of these changes was partially offset by
increases in selling, general and  administrative, interest and
depreciation expenses.  Net sales for the periods above,i.e., the
three months ended June 26, 1999, were $288.8 million, 21.8%
above the 1998 same period net sales of $237.1 million.

Net income for the first six months of 1999 was $311,000 compared
with a loss of $4.0 million for the first six months of 1998.  
Net sales for the same periods were $479.9 million in 1999,
$405.9 million in 1998.


WILSHIRE FINANICAL: Announces Suspension of CEO and President
-------------------------------------------------------------
Wilshire Financial Services Group Inc. (Nasdaq:WFSG), announced
the suspension of its Chief Executive Officer, Andrew Wiederhorn
and its President, Lawrence Mendelsohn from their duties as
employees of the company.  The company has recently emerged from
bankruptcy; its plan of reorganization became effective on June
10, 1999. As part of the restructuring of the company approved by
the Bankruptcy Court, several new independent directors were
appointed to the company's Board, constituting, in the aggregate,
a majority of the new Board. After evaluating the existing
management of the company, the Board today resolved that it would
be in the best interests of the company to suspend Messrs.
Wiederhorn and Mendelsohn from their duties as employees of the
company for approximately two weeks. During the next two weeks,
the Board will have the opportunity to consider significant
issues relating to the leadership and strategic direction of the
company, including whether the interests of the company would be
best served by the appointment of new management. In the interim,
the Board has contracted the services of a consultant to advise
the Board on the day-to-day affairs of the company.

                   **********

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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,
Editors.  Copyright 1999. All rights reserved. ISSN 1520-9474.

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