TCR_Public/990910.MBX    T R O U B L E D   C O M P A N Y   R E P O R T E R
       
       Friday, September 10, 1999, Vol. 3, No. 175                                              
                             
                   Headlines

ACME METALS: Further Extension To Assume/Reject Leases
ALTECH:  Spanish Company Buys Factory
BELOIT CORP: To Eliminate 350 Jobs
BOSTON CHICKEN: Announces Resignation of Lawrence White; CFO
BROTHERS GOURMET: Seeks To Extend Exclusive Period

CASCO: Court Awards Ongoing Operation To Investment Group
CLARIDGE HOTEL & CASINO: Reports Continuing Losses
COMMERCIAL FINANCIAL: Order Authorizes Appointment of Caruso
CONSUMER PORTFOLIO SERVICES: Experiencing Net Losses In 1999
CPX CORP: Loss At Fiscal Year-End Two And One-Half Times Income

DIAMOND ENTERTAINMENT: Annual Sales Off Nearly 50% Over Year Ago
DIAMOND ENTERTAINMENT: Losses Surpass Income In Recent Quarter
FILENE'S BASEMENT: Creditors Group Set
FORSTMANN: Filing Alleges $1.8M Employee Theft
GENESIS HEALTH VENTURES: Revenues Up/Closures Costly

GENEVA STEEL: Applies to Employ Special Counsel
HECHINGER: Announces Liquidation
HVIDE MARINE: Announces Voluntary Chapter 11 Filing
LIVENT: Bondholders Sue Managers and Auditors
LOEWEN: Consolidated Balance Sheet for Month Ended July 31, 1999

LOEWEN: Seeks Approval of Employee Severance Plan
LOEWEN: Seeks To Revise Chairman's Compensation Arrangements
LOEWEN: Seeks To Revise CEO's Compensation Arrangements
LOGAN GENERAL: Hopes To Affiliate With Genesis Health Systems
MAIN STREET AC: End of Bankruptcy in Sight

NATIONSWAY TRANSPORT: Court Authority to Auction Terminals
NEWPORT BEACH: Film Festival to Liquidate
PACIFIC INTERNATIONAL: Files For Chapter 11 Protection
PARAGON TRADE: Hearing on Equity's Patent Counsel
PLANET HOLLYWOOD: Noteholders To Receive $47.5 Million

PLUMA INC: Going Out of Business
RECYCLING INDUSTRIES: Draws Two Potential Bids
SERVICE MERCHANDISE: Consolidated Balance Sheet
STUART ENTERTAINMENT: Seeks Approval of Headquarters Lease
SUNDANCE INDUSTRIES: California Gun Maker Files for Bankruptcy

TRANS ENERGY: Result Of Sale Of Assets=Greater Net Losses
UNIVERSAL SEISMIC: Files Voluntary Chapter 11
WILSHIRE FINANCIAL: Fires Two Top Execs In Reorganization Bid
WORLDCORP: Seeks To Extend Exclusive Periods
WSR CORP: Order Authorizes Investment Bankers

                  **********

ACME METALS: Further Extension To Assume/Reject Leases
------------------------------------------------------
By order of the US Bankruptcy Court for the District of Delaware,
the debtors, Acme Metals, Incorporated, were granted an extension
of 120 days, to and including November 24, 1999, to assume or
reject the Unexpired Leases.


ALTECH:  Spanish Company Buys Factory
-------------------------------------
Tubacex, a Spanish stainless steel producer, announced today that
it has bought a tube making factory from Altech Specialty Steel
Corp., near Albany, N.Y., according to a newswire report.
Tubacex said it would spend $15.5 million on the purchase and
investments in the business during the next five years. Altech
was in the process of filing chapter 11. (ABI 09-Sept-99)


BELOIT CORP: To Eliminate 350 Jobs
----------------------------------
Citing a soft Asian market and light demand, Beloit Corp.,
Beloit, Wis., announced it will cut 350 factory jobs in Beloit
and Rockton, Ill, by Jan. 31, according to a newswire report. The
manufacturer of papermaking equipment currently employs 1,100
people and has laid off 500 to 600 workers in recent years.
Beloit's parent company, Harnischfeger Industries, filed chapter
11 earlier this year. The local union hopes that Beloit Corp.
will be bought out. (ABI 09-Sept-99)


BOSTON CHICKEN: Announces Resignation of Lawrence White; CFO
------------------------------------------------------------
Boston Chicken, Inc. (OTC Bulletin Board: BOSTQ) today announced
the resignation of Lawrence E. White, Executive Vice President
and Chief Financial Officer of Boston Chicken, Inc.  White has
been named Senior Vice President-Finance and Chief Financial
Officer of CBRL Group, Inc., operator of Cracker Barrel Old
Country Stores, headquartered in Lebanon, Tennessee.

Greg Uhing, Vice President, Treasurer/Controller, will succeed
Mr. White as Senior Vice President and Chief Financial Officer of
Boston Chicken, Inc.

Boston Chicken filed its voluntary petition for Chapter 11
bankruptcy protection in the U.S. Bankruptcy Court, District of
Arizona on October 5, 1998.  Boston Chicken, Inc. has publicly
disclosed that holders of Boston Chicken, Inc.'s equity
securities will retain no value under a reorganization plan.  The
value, if any, retained by the holders of Boston Chicken, Inc.'s
debt securities under a plan of reorganization will be the
result of negotiations among the Company and its creditors.


BROTHERS GOURMET: Seeks To Extend Exclusive Period
--------------------------------------------------
The debtors, Brothers Gourmet Coffees, Inc., et. al. seek to
extend the exclusive period during which the debtors may solicit
acceptances of their plan of reorganization.

The debtors' current Solicitation Period expires on September 16,
1999.  The debtors filed the plan and the proposed Disclosure
statement less than five months after the Petition Date, have
successfully formulated an d implemented bidding procedures for
the sale of their business, have received and evaluated a number
of bids, have conducted an auction for the sale of their
business, have selected a successful bidder, have entered into an
agreement to sell a substantial portion of their business to P&G,
and have sought and obtained this Court's approval of such
agreement.  Due to their progress in the case, the debtors submit
that ample cause exists to extend the Solicitation Period until
November 18, 1999.


CASCO: Court Awards Ongoing Operation To Investment Group
---------------------------------------------------------
A bankruptcy court has awarded the ongoing El Paso, Texas,
operation of Casco Molded Plastics Inc. to a seven-person
investment group for $2.7 million.

Jim Sybrant, an entrepreneur from Arkansas City, Ark.,
represented the group in the Aug. 31 court proceedings in
Wichita, Kan. The deal is scheduled to close Sept. 3.

The group plans to acquire the 27 injection molding machines,
with clamping forces of 77-960 tons. It said it will continue to
employ 115-135 at the 100,000-square-foot plant, which is leased
from Insite Realty of Chicago. The plant primarily molds for
consumer product markets. Capabilities include heat-transfer,
hot-stamping and secondary assembly services.

In November, financial losses and loan problems forced Casco to
seek protection from creditors under Chapter 11 of the U.S.
Bankruptcy Code. The company had employed about 480 and reported
1997 sales of $45.5 million.

Earlier, the bankruptcy court disposed of two other Casco sites,
neither as an ongoing business. On April 15, the court awarded
the New Braunfels, Texas, plant and equipment to Palo Alto
Products International (Pte.) Ltd. of Palo Alto, Calif., for $2.8
million. Subsequently, Palo Alto disposed of the equipment.
Casco's Wichita assets were divided in May 25 court awards. The
plant and land went to Shannon II LLC of Wichita for $1.4
million, and the equipment to auction house Hackman Capital
Partners LLC of Los Angeles for $1 million.


CLARIDGE HOTEL & CASINO: Reports Continuing Losses
--------------------------------------------------
Claridge Hotel & Casino Corporation filed for reorganization
under Chapter 11 of the United States Bankruptcy Code on August
16, 1999.  The company indicates the results of operations for
the three and six months ended June 30, 1999 and 1998 are not
necessarily indicative of the operating results to be expected
for the full year. Historically, the company says, the
gaming industry in Atlantic City, New Jersey has been seasonal in
nature with peak demand months occurring during
the summer season.

The corporation had a net loss of $269,000 for the three months
ended June 30, 1999, compared to a net loss of $395,000 for the
same period of 1998.  These losses were against net revenues of
$49,138,000 and $49,696,000 respectively.  For the six months
ended June 30, 1999, Claridge had a net loss of $1,517,000,
compared to a net loss of $2,040,000 for the same
period of 1998.  Again, these losses were sustained against net
revenues of $92,991,000 and $96,695,000 respectively.


COMMERCIAL FINANCIAL: Order Authorizes Appointment of Caruso
--------------------------------------------------------------
By order of the US Bankruptcy Court for the Northern District of
Oklahoma, the debtors, Commercial Financial Services, Inc., and
CF/SPC NGU, Inc. are authorized to appoint Fred C. Caruso as sole
director of the company.


CONSUMER PORTFOLIO SERVICES: Experiencing Net Losses In 1999
------------------------------------------------------------
Consumer Portfolio Services, Inc. and its subsidiaries primarily
engage in the business of purchasing, selling and servicing
retail automobile installment sale contracts originated by
automobile dealers located throughout the United States. In
recent months, the company has suspended its solicitation of
contract purchases in 20 states, and as of this date is active in
29 states. Through its purchase of contracts, the company
provides indirect financing to dealer customers with limited
credit histories, low incomes or past credit problems, who
generally would not be expected to qualify for financing provided
by banks or by automobile manufacturers' captive finance
companies.

During the three months ended June 30, 1999, revenues decreased
$16.3 million, or 54.9%, to $13,406 million, compared to the
three month period ended June 30, 1998 when revenues were $29,724
million.   A net loss of $6.9 million was experienced in the 1999
three month period ended June 30, whereas in the same period of
1998 the company had a net income of $5.9 million.

During the six months ended June 30, 1999, revenues decreased
$20.3 million, or 37.2%, to $34,231, compared to revenues of
$54,506 in the six month period ended June 30, 1998.  Net loss
for the six months of 1999 was $9.0 million, while in the six
months ended June 30, 1998 the company had a net income of $11.5
million.

On July 22, 1999, Bank of America commenced a lawsuit against the
company in the Superior Court of California, Orange County,
seeking repayment of approximately $3 million advanced to the
company under an overdraft line of credit, plus interest, costs
and attorneys' fees. The company and Bank of America have entered
into a settlement agreement, in which the company shall repay all
amounts owing, in specified installments through November
1999.


CPX CORP: Loss At Fiscal Year-End Two And One-Half Times Income
---------------------------------------------------------------
On October 28, 1998, CellPro, Incorporated filed for bankruptcy
protection under Chapter 11 of the United States Bankruptcy Code
in the United States Bankruptcy Court for the Western District of
Washington. On May 21, 1999 the Bankruptcy Court issued an order  
confirming CellPro's Second Amended Plan of reorganization dated
May 10, 1999.  The effective date of the plan was June 1, 1999.

CellPro, Incorporated, a Delaware corporation, was a
biotechnology company, which specialized in developing,
manufacturing, and marketing proprietary continuous-flow, cell-
selection systems for use in a variety of therapeutic,
diagnostic, and research applications.  The company's
principalproduct, the CEPRATE (R)SC Stem Cell Concentration  
System, was primarily sold in the United States, Canada, and
Europe.  On June 1, 1999, the company changed its name to CPX
Corporation as a result of the plan of reorganization under
Chapter 11 of the United States Bankruptcy Code.

Results of the company's annual revenue and net loss for the year
ended March 31, 1999 was $10,287,440 and $26,601,181,
respectively.


DIAMOND ENTERTAINMENT: Annual Sales Off Nearly 50% Over Year Ago
----------------------------------------------------------------
Diamond Entertainment Corporation distributes and sells
videocassette titles including certain public domain programs and
certain licensed programs. Public domain programs are video
titles that are not subject to copyright protection. Licensed
programs are programs that have been licensed by the company from
a third party for duplication and distribution, generally on a
non-exclusive basis. The company markets its video programs to
national and regional mass merchandisers, department
stores, drug stores, supermarkets and other similar retail
outlets.  They generally sell the company's products to the
public at retail prices ranging from $1.99 to $9.99 per
videocassette. The company's video products are also offered by
consignment arrangements through one large mail order catalog
company and one retail chain.

Diamond's program inventory consists of a total of nearly 674
titles appealing to all age groups. The programs include
cartoons, horror films, science fiction, dramas, adventure
stories, mysteries, musicals, comedies, fairy tale adaptations,
educational programs, sports highlights, instructional and
exercise programs. Public domain programs account for
approximately 401 titles, and licensed programs account for
approximately 273 titles of the company's program inventory.

The company's net loss for the year ended March 31, 1999 was
$1,602,652 as compared to a net loss of $1,505,442 for the same
period last year. The company's sales for the years ended March
31, 1999 and 1998, were $4,549,525 and $8,724,149, respectively.
Sales decreased by approximately $4,200,000 from the period year
with decreased video and toy product sales of approximately
$2,100,000 each.  The company's sales for the quarter ended March
31, 1999 was approximately $900,000 as compared to the prior two
quarters which averaged approximately $1,500,000 a quarter.

Diamond has also been experiencing difficulties in paying its
vendors on a timely basis. These factors create uncertainty
whether the company can continue as a going concern.


DIAMOND ENTERTAINMENT: Losses Surpass Income In Recent Quarter
----------- -------------------------------------------------
Having filed its fiscal year-end financial information with the
Securities & Exchange Commission Diamond Entertainment
Corporation additionally has reported on the quarter ended June
30, 1999.  In that three month period the company's revenues were
$699,085 with net losses of $766,033.  The comparable period of
1998 found the company with revenues of $790,864 and
net losses of $340,454.

In June of 1999, the company received a loan in the amount of
$90,000 from an officer of the company which is payable upon
demand.  In April and June of 1999, the company received $50,000
from an investor and $100,000 from an officer and issued
additional convertible promissory notes totaling $150,000 due in
one year with principal and interest paid bimonthly at an
interest rate of 10%. The notes are convertible immediately into
common stock at the rate of $.05 per common share.  On June 2,
1999, Diamond was advised by one of the convertible debenture
holders of a $100,000 note that the bimonthly principal payments
were being waived and the paying of the bimonthly interest would
continue.

The company is currently delinquent on a significant amount of
its accounts payable.


FILENE'S BASEMENT: Creditors Group Set
--------------------------------------
A nine-member unsecured creditors committee was appointed on
Monday in the Filene's Basement bankruptcy case.  The members
are: JDA Software, Canadian retailer Holt Renfrew, Polo Ralph
Lauren, Warnaco Group, Liz Claiborne, Jones Apparel Group, Pro
Media Inc., Escada and The CIT Group.

Financial sources noted that Sam Gerson, the retailer's chairman
and chief executive officer, was meeting with factors last week,
lining up their support. Many said credit terms were no more than
15 days out, meaning Filene's Basement would have to pay their
vendor invoices within 15 days.

At least one factor is giving the retailer a little more
breathing room. John Daly, executive vice president and senior
credit officer at The CIT Group, said, "We've approved some
orders, and we're going out as far as 30 days."

Gary Wassner, president of Hilldun Corp., another factor, said,
"We haven't been asked yet by any of our clients to OK orders,
but we probably would approve some if asked." He added, "At the
moment, the marketplace is still cautious. No one is going to out
on the limb." (WWD 01-Sept-99)


FORSTMANN: Filing Alleges $1.8M Employee Theft
----------------------------------------------
Court papers have revealed an unusual detail in the history of
Forstmann & Co. Inc., currently in Chapter 11 proceedings for the
second time in recent years.  In recently filed court papers,
Forstmann said that after closing its Milledgeville, Ga., plant
in February, it discovered that at least $ 1.8 million
had been stolen from the company over the past 10 years and
alleged it was done by a former supply room supervisor.

The supervisor, Jane Veal, a 26-year veteran of Forstmann and its
predecessor company, J.P. Stevens, was terminated along with
other salaried employees at the time of the plant's closing. In
the same court papers, Forstmann said Veal has since died, a
victim of "apparent suicide."

Rod Peckham, president of Forstmann, said, "It was a fraud that
we uncovered in March, and which had been ongoing for a number of
years." He declined further comment.

Forstmann will receive $ 1.8 million in insurance proceeds from
its carrier, Federal Insurance Co., if the bankruptcy court
approves.

Rod Peckham said that a new takeover deal would be completed
within 60 days. He also disclosed that a number of those who have
expressed interest in Forstmann are foreign companies.

In the days after Forstmann's filings, two domestic suppliers
came to light as potential buyers: Carleton Woolen Mills Inc. and
The Worcester Co. Sources then said Carleton seemed the more
likely.  On Thursday, Worcester was placed into receivership by
Rhode Island Superior Court, according to the company's court-
appointed receiver.  The receiver, Allan M. Shine, of Winograd,
Shine and Zacks, said that the condition of receivership is
similar to a Chapter 7 bankruptcy filing.
    
Forstmann has also received bankruptcy court approval of its $ 50
million debtor-in-possession financing facility led by Bank of
America.    Forstmann still has not settled its dispute with the
owners of Newco, George Bloom and Steve Sakin. As reported, Newco
sought to purchase Forstmann subsidiary Forstmann Apparel, which
produces private label apparel. Forstmann Apparel also
manufactures suits for the Oleg Cassini label. Forstmann & Co.
owns the Cassini license.  Newco charged in court papers that
Forstmann filed its Chapter 11 "to deprive Newco of the benefit
of its bargain."

"There was never a deal consummated with Newco," said Marianne
Nestor, who oversees licensing matters for Cassini. "Mr. Cassini
never agreed to assign or transfer the license. It never
happened." (WWD 31-Aug-99)


GENESIS HEALTH VENTURES: Revenues Up/Closures Costly
----------------------------------------------------
Genesis Health Ventures' total net revenues for the nine months
ended June 30, 1999 were $1,408,911,000 compared to $999,390,000
for the nine months ended June 30, 1998, an increase of
$409,521,000 or 41%.  Net income was $1,828,000 in the '99 period
compared to net income of $41,457,000 in the same period in 1998.  
For the three months ended June 30, 1999 revenues were
465,088,000 and net loss was $1,003,000.  In the same three month
period in 1998 revenues were $352,526,000 with a net income of
$15,991,000.

In March 1999, the company closed a leased eldercare center
located in the state of Florida. In connection with the closure,
the company recorded $9,701,000 of closure costs consisting of
the present value of future lease payments through the end of the
lease term, a residual lease obligation to be funded at the end
of the lease term, severance costs and other related
closure expenses.

On August 2, 1999, the company reached an agreement in principle
with The Cypress Group and  Texas Pacific Group, its co-investor
partners in Genesis ElderCare Corp., to simplify the joint-
venture structure, accelerate the integration of Genesis and
Multicare, and strengthen the financial position of both Genesis
and Multicare. Under the agreement in principle, Cypress
and TPG will invest $50,000,000 into Genesis in exchange for
12,500,000 newly issued common shares and 2,000,000 warrants to
purchase common shares with a $5.00 exercise price. In addition,
Cypress and TPG will terminate their right to put their 56%
equity interest in Genesis ElderCare Corp. to Genesis in exchange
for a newly issued convertible preferred stock in Genesis
with a $420,000,000 principal amount, a 5% dividend rate (payable
in kind for the first five years) and a conversion price of $8.75
per share. The conversion price represents a 153% premium to the
20 day average trading price of Genesis common stock at the
signing of the agreement in principle. Following completion of
this transaction, Genesis will consolidate the results of
Multicare for financial reporting purposes. After making the
$50,000,000 investment, Cypress and TPG will each own
approximately 11% of Genesis. On a fully-diluted basis, assuming
conversion of the convertible preferred stock, Cypress and
TPG will each own approximately 29% of Genesis. The agreement in
principle provides that Cypress and TPG will each have the right
to vote a maximum of 17.5% of the voting rights of Genesis.
Cypress and TPG will each designate one member to the Genesis
Board of Directors, increasing the total membership to nine. The
transaction is subject to, among other things, regulatory
approval, definitive documentation and Genesis shareholder
approval.


GENEVA STEEL: Applies to Employ Special Counsel
-----------------------------------------------
The debtor, Geneva Steel company, applies for an order approving
the employment of Orrick, Herrington & Sutcliffe LLP as special
counsel.  The debtor desires to engage the firm to advise and
represent the debtor in all matters relating to the debtor's
qualified pension and welfare plans, and other ERISA-related
employee benefits plans and programs.  Subject to court approval
the firm has agreed to work at the following hourly rates:

Partners $300-400
Associates $150-290
Paralegals $140-170


HECHINGER: Announces Liquidation
--------------------------------
Hechinger Company announced on September 9, 1999 that the Company
has determined it will proceed with an orderly liquidation of its
assets in an effort to maximize value for its creditors.  In
recent years, the Company's financial condition has suffered due
to difficulties in absorbing its acquisitions as well as a
continually increasing level of competition from companies with
significantly greater financial resources. The store closings
conducted earlier this year, in conjunction with the Chapter 11
filing in June, were intended to provide the Company with a
profitable core on which to build a financially healthy
operation.  However, the reduction in sales both before and
following the Chapter 11 filing were substantially greater than
expected. Although the sales performance has improved
dramatically since the filing, together with reduced inventory
levels and significantly improved stock position, it has still
not been increased to the point at which the resultant cash flow
provides the Company sufficient time to reorganize its
operations.

"We sought Chapter 11 protection in order to evaluate the various
alternatives for reorganizing the Company," said Richard J.
Lynch, chief executive officer of Hechinger. "Unfortunately, it
is clear that continued losses and stiff competition has made it
highly unlikely that a traditional reorganization would
be possible. Under Chapter 11, we have a fiduciary obligation to
maximize the value of the Company for its creditors. Management,
the Board of Directors and the Creditors Committee all agree that
the best course of action is an orderly liquidation of the
Company." Subject to Court approval, the Company plans to
dispose of its inventory through going-out-of-business sales at
its remaining 117 Hechinger, Home Quarters and Builders Square
stores. The sales are scheduled to begin immediately and should
be substantially completed by December 1999. In addition, the
Company will seek a Court order to proceed with the sale of its
real estate assets.

The Company will seek to retain many of its associates who are
necessary to accomplish the specific tasks required to achieve
the orderly liquidation of the Company. The Company has already
received Court approval for a severance benefit that would apply
to these associates.


HVIDE MARINE: Announces Voluntary Chapter 11 Filing
---------------------------------------------------
Hvide Marine Incorporated (Nasdaq: HMAR) announced a voluntary
Chapter 11 filing in the United States Bankruptcy Court in
Delaware.  The filing allows the Company to operate its
businesses in the normal fashion under court protection, and with
adequate funding, while it continues discussions with
representatives of certain major creditors and others on a
restructuring plan that would deleverage its balance sheet,
restore liquidity, and enhance its competitive ability in the
marketplace.

To ensure liquidity throughout the period of reorganization,
including payment of suppliers and trade creditors, the Company
has secured a new $60 million, debtor-in possession (DIP) credit
facility from its current bank syndicate, led by Citibank, N.A.
and BankBoston.  The Company anticipates that it will complete
its restructuring and emerge from Chapter 11 in late 1999
or early 2000.

As previously reported, the Company is in active discussions
concerning a proposed restructuring plan under which its general
and trade creditors would be paid in full; its existing credit
facility would be refinanced; holders of its Senior Notes would
exchange their Senior Notes for common equity of the Company; and
holders of the Trust Convertible Preferred Securities and
Common Stock would receive common equity and/or warrants to
purchase common equity. Implementation of the plan is subject to
numerous conditions, including the need to reach agreements with
lenders and other third parties, and is expected to result in
substantial dilution to the Company's current stockholders.

"Today's filing helps remove the cloud of uncertainty that has
hung over the Company for the last several months and gives us
time to put our financial house in order," commented Jean
Fitzgerald, Chairman, President and CEO. "While a number of
issues remain to be worked out, the general outline is in place
and has the support of our major creditors.  The end result will
be a significant deleveraging of our balance sheet, which should
in turn strengthen our operating capabilities and enable us to be
a financially sound and competitive enterprise going forward."

As a leading worldwide operator of oilfield support vessels, the
Company has suffered from the prolonged drought in offshore
drilling activity and reported a loss for its fiscal second
quarter of $23.7 million or $1.53 per diluted share.
"While there are encouraging signs of a future upturn in the
sector, the Company's growing liquidity problems made today's
actions necessary," stated Mr. Fitzgerald.  "The successful
completion of a restructuring would position the Company to
benefit significantly from any increase in drilling activity."

With a fleet of 276 vessels, Hvide Marine is one of the world's
leading providers of marine support and transportation services,
primarily to the energy and chemical industries.  The Company's
three main businesses are offshore energy support services,
offshore and harbor towing, and petrochemical transportation.


LIVENT: Bondholders Sue Managers and Auditors
---------------------------------------------
Two New York investment funds Wednesday added their
names to the list of plaintiffs suing former officers and
auditors of bankrupt entertainment company Livent Inc.

Cerberus Capital Management LP and Tri-Links Investment Trust
filed a purported class action suit in U.S. District Court in
Manhattan, piling more trouble on the once high-flying producer
of Broadway mega-hits "Ragtime," "Showboat" and "Fosse."

The most recent suit, brought on behalf of bondholders of Livent
9-3/8 percent senior notes due 2004, comes on top of several
related suits by shareholders, other bondholders and various
defendants suing each other in the turbulent aftermath of
Livent's bankruptcy filing in November 1998.

Livent's assets were sold to SFX Entertainment Inc. last month
for $96 million.

The Cerberus and Tri-Links suit names Michael Ovitz, the
entertainment executive who invested in Livent and brought to
light what was later described by the U.S. Securities and
Exchange Commission as "a pervasive eight-year fraudulent
accounting scheme by the former senior management of
Livent."

The former senior management, including Canadian impresarios
Garth Drabinsky and Myron Gottlieb who are targets of a 16-count
criminal fraud indictment by the U.S. Attorney's office, were
also named in the new bondholder suit.

In addition, the filing names Roy Furman, co-founder of
investment bank Furman Selz, who Ovitz brought in as chief
executive of Livent, and Deloitte & Touche LLP, Livent's
independent auditors both before and after it declared
bankruptcy.

The 92-page complaint charges the auditors with issuing
unqualified opinions of Livent's financial statements that were
materially false and misleading seeks unspecified compensatory
damages, interest and attorney fees. (ABI 09-Sept-99)


LOEWEN: Consolidated Balance Sheet for Month Ended July 31, 1999
----------------------------------------------------------------
THE LOEWEN GROUP, INC. reports current assets as of July 31, 1999
of $4,432,433,000 and liabilities of $4,373,433,000.  The company
reports a net loss for the period of Net loss for the period                                      
(2,504,000) on revenue of 77,008,000. (LOEWEN BANKRUPTCY NEWS
Issue 11; Bankruptcy Creditors' Service Inc.)


LOEWEN: Seeks Approval of Employee Severance Plan
-------------------------------------------------
To provide all employees with economic security in the event of
their involuntary termination without cause, the Debtors propose
to implement a Severance Plan providing cash payments:

       Employee Class                     Severance Benefit
       --------------                     -----------------  
       Senior Management                  Two years' salary
       Vice President Level Executives    One year's salary
       Directors and Controllers          6 months' salary
       Funeral Home Managers              3 months' salary
       Cemetery Managers                  3 months' salary
       Other Employees                    Up to 4 weeks' salary

For employees at the Vancouver Headquarters, the Debtors propose
to pay severance benefits based on salary level and length of
service.

The Debtors do not provide any estimates of the aggregate cost in
the event of a mass layoff or acquisition of the company by a
third party.  The Debtors indicate, however, that all severance
benefits will be subject to certain Mitigation Provisions.  
(LOEWEN BANKRUPTCY NEWS Issue 11; Bankruptcy Creditors' Service
Inc.)


LOEWEN: Seeks To Revise Chairman's Compensation Arrangements
------------------------------------------------------------
The Debtors tell the Court that they, their professionals and the
advisors to the Creditors' Committee are in the process of
negotiating the final terms of revised compensation arrangements
with the Chairman of the Board.  

Prior to the Petition Date, the Chairman received a $75,000 base
salary for the 6-month period from January 1, 1999 through Jun
30, 1999.  The scope of the Chairman's services has expanded
greatly, the Debtors say, since the Petition Date because he has
taken an active rile in the Debtors' business operations and is,
in short, leading the Debtors through the chapter 11 process.  
Accordingly, the Debtors propose to revise their
compensation arrangements to provide the Chairman with:

(a) a $300,000 annual base salary, effective as of June 1, 1999;
and

(b) a Value Added Incentive payment based on a measure of the
increased value to creditors and the time to confirmation of a
plan or a sale of the Debtors' assets to a third party.  

The final details will be made available to the Court no less
than 5 days prior to a September 21 hearing. (LOEWEN BANKRUPTCY
NEWS Issue 11; Bankruptcy Creditors' Service Inc.)


LOEWEN: Seeks To Revise CEO's Compensation Arrangements
-------------------------------------------------------
Prior to the Petition Date, the CEO received a $425,000 annual
base salary, stock options worth $1,079,000, and an annual
performance target award equal to 50% of his salary.  The total
package was estimated to be worth roughly $1,700,000 annually.  

Since the Petition Date, the CEO's responsibilities have
increased greatly.  A revised compensation package, the Debtors
believe, is necessary given his crucial role in the formulation
of the Debtors' restructuring plan.  The Debtors propose to
provide the CEO with:

     (a) a $425,000 annual base salary;

     (b) participation in the new Retention Incentive Program;

     (c) participation in the new Performance Incentive Program;

     (d) payment of a yet-to-be-determined Value Added Incentive
payment based on a measure of the increased value to creditors
and the time to confirmation of a plan or a sale of the Debtors'
assets to a third party. (LOEWEN BANKRUPTCY NEWS Issue 11;
Bankruptcy Creditors' Service Inc.)


LOGAN GENERAL: Hopes To Affiliate With Genesis Health Systems
--------------------------------------------------------------
The Bond Buyer reports on September 9, 1999, that Logan General
Hospital, which filed for Chapter 11 bankruptcy last year, is
hoping an alliance with a health care organization will remedy
its financial ailments.

The Logan, W.Va., hospital's board voted late last month to
affiliate with Genesis Health Systems, a move that is expected to
provide the hospital with $18 million in loans that it first
sought to borrow by itself.

The funding, largely from the same banks initially approached by
the hospital, was secured with a guarantee from Genesis, and was
proposed to the bankruptcy court. Initial approval was granted by
Judge Ronald Pearson, clearing the way for the hospital to amend
its Chapter 11 reorganization plan to reflect the loans and
present the new structure to its debtors.

Final approval from Pearson is needed, in what is largely a
logistical step if a "sufficient number'' of creditors agree to
the plan. However, Pearson could grant approval even if the
creditors do not, said Brad Sorrells, the hospital's bankruptcy
attorney.

The $18 million will be combined with around $12 million that the
hospital's parent company, Logan Medical Foundation, will reap
from the sale of a strip mall, Sorrells said.

That real-estate investment was at the heart of a lawsuit filed
against the hospital by the Bank of New York, trustee for Logan
on some $30 million in tax-exempt bonds issued in 1995. BNY had
sought a receivership, which prompted the hospital to file
Chapter 11 and retain control of its own finances. The bank
charged that the taxable investment violated the hospital's
nonprofit status.

As part of Genesis, Logan would be an equal partner with the
three other West Virginia hospitals that make up the organization
and would retain its own board of directors. The plan surfaced
earlier but met opposition from the community and from medical
staff.

For the first six months of the bankruptcy, BNY had to earn court
approval to use debt reserve funds to pay Logan bondholders. The
hospital has since resumed bond payments on its own, said Ellen
Cappellanti, attorney at Jackson and Kelly in Charleston, W. Va.,
representing BNY.

Cappellanti said the bank now has the role of "active creditor in
the bankruptcy.'' She said BNY and the hospital's other creditors
will '"look at whether the new plan is viable.''

Both she and Sorrells said the $30 million would cover all
unsecured debt held by the hospital, but that sum does not
include its bond payments and some unrelated liens.


MAIN STREET AC: End of Bankruptcy in Sight
------------------------------------------
The Business Journal reports on August 13, 1999 that the next few
weeks may be crucial ones for Main Street AC.  The San Jose
company, which has been mired in Chapter 11 bankruptcy
proceedings for the past year, could find out at an Aug. 16
hearing whether it can pursue plans CEO Chester Billingsley calls
key to the reorganization's success.

Mr. Billingsley is seeking permission to retire some $ 14 million
in debt notes by issuing additional shares of Main Street stock.
The stock is traded on the over the counter bulletin board and is
priced at just pennies a share.

Main Street issued the debt notes last year to acquire a number
of oil, gas and automatic teller machine trusts. But the
assistant U.S. bankruptcy trustee assigned to the case fears the
investors from whom Main Street bought the trusts might not have
been given important details of the transaction.

The trustee, Robert Gebhard, also notes in court papers that
Blake Wilson, who handled the sale of some of the trusts, has
been accused by regulators in Missouri of running a telemarketing
scheme to defraud those investors.

The legal wranglings seem par for the course in a case that has
grown to encompass eight thick volumes at U.S. Bankruptcy Court
in San Jose.

Main Street ran a chain of area health clubs until 1997, when it
piled up $ 1.6 million in debt and back rent and was placed in
receivership.  Since then, Mr. Billingsley has sought to reinvent
the company. He had hoped acquiring the oil, gas and ATM
interests would make the company an attractive merger target
after bankruptcy.  However, Mr. Gebhard and attorneys from the
U.S. Securities & Exchange Commission repeatedly have raised
objections to the reorganization plan. Mr. Gebhard's filings have
called the plan "speculative," noting that no solid
valuation of the interests has been performed.

Mr. Billingsley earlier this summer decided to sell the oil, gas
and ATM assets, figuring that Mr. Gebhard couldn't quibble about
the company's worth with cash in hand.  But in a July 16 filing,
Mr. Gebhard questioned whether the 720 investors who collectively
owned the masts had ever approved their sale to Main Street.
He attached a report from the Missouri Secretary of State's
office that accused Mr. Wilson of attracting investors to the
trusts via a telemarketing scheme.
  
Judge Marilyn Morgan suspended indefinitely the motion to approve
the sale of the off, gas and ATM assets. Given the uncertainty,
it's unclear whether the court will allow Main Street to
retire the debt notes.  Main Street also faces a Sept 3 hearing
on its disclosure statement, which explains to debtors and
shareholders the company's reorganization plan. In late April,
Judge Morgan denied approval of the disclosure statement, which
already had been through three revisions to try to satisfy Mr.
Gebhard and the SEC. Shortly afterward, she refused to let the
company sell $ 500,000 of additional stock to its existing
shareholders.

The judge wrote in April that "the principle purpose of the plan
of reorganization is avoidance of securities registration laws."
She called the plan "not confirmable."

Mr. Billingsley said the latest version builds in safeguards that
would prevent Messrs. Wilson and Morris from selling for one year
any Main Street stock they would receive in the reorganization.
Mr. Billingsley said that once the disclosure statement is
approved, a copy will be sent to each of the investors in the
trusts.

"If the disclosure statement is approved on Sept. 3 ... a vote
[by creditors and shareholders] could be complete by Oct 6," he
said.  He's confident those creditors and shareholders would vote
for the plan, after which the company would move to sell the
assets and be discharged from bankruptcy. He said he has bids in
hand for the ATM assets and Oklahoma wells and is in the process
of seeking potential buyers for the California wells.


NATIONSWAY TRANSPORT: Court Authority to Auction Terminals
----------------------------------------------------------
The bankrupt NationsWay Transport received court authorization to
auction a number of its terminals in an effort to begin the
repayment of debts to secured lender Foothill Capital Corp., a
lawyer for NationsWay said.

Through a federal bankruptcy court in Phoenix, the company
founded by Colorado Rockies co-owner Jerry McMorris auctioned
three facilities it owned and two it leased, said attorney Donald
Gaffney, who represents NationsWay.

In a telephone interview from Phoenix, Gaffney said the company
was "very pleased" with the results of the auction.

The company auctioned its Phoenix facility for $ 7.975 million,
its Commerce City facility for $ 6.025 million and its
Harrisburg, Pa., facility for $ 4.1 million, he said.

It sold its leaseholds in San Diego and Las Vegas for a total of
$ 335,000.

"These numbers are significantly higher than the book value of
the company," Gaffney said. "The more money there is, the more
there is to distribute."

The judge reserved Oct. 1 for the next date of real estate sales,
but Gaffney could not say which properties would be put on the
block at that time. Before it shut down in May and began
liquidating its assets under Chapter 11 bankruptcy, NationsWay
was the nation's largest privately held trucking company.
Creditors have asked the court to convert the Chapter 11
reorganization into a Chapter 7, for a total liquidation.

The company has not has not yet issued final paychecks for most
of its 3,500 employees, but the remaining 75 NationsWay workers
have been given weekly bonuses to continue working as the company
clears the book of assets.

The employees rank as unsecured creditors in bankruptcy court,
which means other creditors, particularly Foothill, would get
their money first. But attorneys suing McMorris and other
corporate officers say that under Colorado law, the employees
could be paid by officers of the company.


NEWPORT BEACH: Film Festival to Liquidate
-----------------------------------------
The Newport Beach International Film Festival, a four-year-old
festival, has gone out of business; co-founder Jeffrey S. Conner
filed a chapter 7 petition on Sept. 1 in Santa Ana, Calif.,
The Los Angeles Times reported yesterday. Conner listed $10,960
in assets and $191,900 in liabilities. Conner, a real estate
developer and film buff, launched the festival in 1996, but it
has struggled since its beginning with poor attendance. (ABI 09-
Sept-99)


PACIFIC INTERNATIONAL: Files For Chapter 11 Protection
------------------------------------------------------
Pacific International Enterprises Inc. (OTC BB:PCIE)("PCIE")
Thursday announced that it has filed a voluntary petition for
reorganization under Chapter 11 of the United States Bankruptcy
Code.  PCIE's filing was prompted primarily by litigation with
PCIE's landlord regarding the amount of PCIE's obligations to its
landlord, which threatened to disrupt the operations
of PCIE's business.  PCIE's Chapter 11 filing stays such
litigation, and will provide to PCIE an opportunity to resolve
its disputes with its landlord under the protection of the
Bankruptcy Code.  Binks A. Graval, PCIE's chief executive
officer, stated, "PCIE will continue to operate during the
reorganization process, and sales, service, and support of PCIE
products will continue as usual.  PCIE customers will not be
affected by the reorganization process.  The reorganization will
strengthen PCIE's financial position by providing to PCIE an
opportunity to resolve PCIE's disputes with its landlord and by
allowing PCIE to restructure its financial affairs." Graval added
that PCIE is confident that it will operate profitably during the
reorganization proceedings, and that PCIE intends to propose as
expeditiously as possible a Chapter 11 plan of reorganization.  
Graval stated that PCIE's lender has expressed support for
PCIE's reorganization efforts, and that PCIE intends to work
cooperatively with its creditors to attempt to achieve a
consensual reorganization plan.  PCIE is represented in its
Chapter 11 proceedings by Jeffrey M. Reisner, Robert E. Opera
and Tavi C. Flanagan of Lobel, Opera & Friedman LLP
(www.lobelopera.com). Lobel, Opera & Friedman LLP is located in
Irvine, Calif. and specializes in the representation of companies
in Chapter 11.  PCIE manufactures board sports, including in-
house brands Twenty Four Seven Snowboards, Wake Tech Wakeboards,
Rift Snowboards and Microski.  PCIE has headquarters in Long
Beach, and has a 300,000 unit, state-of-the-art manufacturing
facility located in Goldendale, Wash.   


PARAGON TRADE: Hearing on Equity's Patent Counsel
-------------------------------------------------
A hearing will be held on October 18, 1999 at 1:00 PM on the
motion of the Equity Committee of Paragon Trade Brands Inc. to
employ Knobbe, Martens, Olson & Bear LLP as special patent
counsel.


PLANET HOLLYWOOD: Noteholders To Receive $47.5 Million
------------------------------------------------------
Under its prepackaged Chapter 11 reorganization plan,
Planet Hollywood International's note holders would receive $
47.5 million in cash, $ 60 million in new, secured payment-in-
kind notes, and 2.65 million shares of new common stock,
according to a filing yesterday with the Securities and Exchange
Commission.  In addition, according to Federal Filings Business
News, the company had pledged to work with the informal note
holders' committee and use its best efforts to settle claims of
unsecured creditors and, to the extent not settled, claimants
would recover a dollar value on their claims not less than the
value of the per dollar distributions allowed the note holders.


PLUMA INC: Going Out of Business
--------------------------------
Pluma Inc., a maker of fleece and other active-wear products that
filed for bankruptcy protection earlier this year, is going out
of business and laying off 1,000 workers at four plants in North
Carolina and Virginia.

"It's a very unfortunate thing, but given our debt load, we
didn't have any other choice," president John Wigodsky said
Wednesday.

Employees will lose their jobs during the next three months,
Wigodsky said. In Eden, two plants will close by the end of next
week, putting 500 employees out of work.

Officials with Eden-based Pluma, which filed for Chapter 11
reorganization in May, gave up on finding investors to help it
pull out of nearly $120 million in debt. They attributed the
company's failure to foreign competition and poor business
decisions.

Pluma, whose brands include Snowbank and Santee clothing, grew
from a small firm of 80 employees in 1986 to a large, publicly-
traded company of about 2,000 employees with eight different
plants. But it had been struggling to stem losses since the
fourth quarter of 1997. The company posted a loss of $36.1
million in 1998 on sales of $187.2 million. It listed $136.5
million in assets and $118.9 million in debts in its
bankruptcy petition.

As part of a restructuring plan to cut costs, the company closed
plants in North Carolina, Virginia and California and cut its
work force by more than 21 percent.


RECYCLING INDUSTRIES: Draws Two Potential Bids
----------------------------------------------
Recycling Industries Inc. received "two potential global asset
purchase offers," necessitating its retention of an investment
banker and concomitant need for a further extension of its
exclusive periods for filing a plan of reorganization and
soliciting plan acceptances. Meanwhile, Recycling said in an Aug.
13 motion that it just recently received a term sheet from its
official creditors' committee for a proposed consensual plan. The
term sheet is predicated upon a five-year financial forecast
which results in a proposed reorganization valuation of $160
million, according to the motion which seeks an extension of the
exclusive plan filing and solicitation periods through Nov. 15
and Jan. 14, 2000, respectively. (The Daily Bankruptcy Review and
ABI - September 9, 1999)


SERVICE MERCHANDISE: Consolidated Balance Sheet
-----------------------------------------------
For the month ending July 4, 1999, Service Merchandise Company,
Inc. reports  total current assets of $695,108,000, total current
liabilities of $210,491,000.  For the period May 31, 1999 through                         
July 4, 1999 the company reports net sales of $172,082,000 and
Net earnings of (27,037,000).  For the month ending August 1,
1999, the debtor reports total current assets of 705,208,000 and
total current liabilities of  252,558,000.  For the period July
5, 1999 through August 1, 1999, the debtor reports net sales of
103,094,000 and net earnings of (9,049,000).


STUART ENTERTAINMENT: Seeks Approval of Headquarters Lease
----------------------------------------------------------
The debtor, Stuart Entertainment Inc. seeks court approval of a
lease transaction for commercial office space in Bloomington,
Minnesota, which will serve as the debtor's new headquarters.

Base rent is $226,225 per year through October 14, 2000 and
$235,586 annually from October 15, 2000 through October 14, 2001,
$244,647 annually from October 15, 2001 through October 14, 2002,
and $253,708 annually form October 15, 2002 through October 14,
20003 and $262,769 for the remainder of the term.

The debtor asserts that the relocation of the corporate
headquarters, from Council Bluffs, Iowa and the proposed lease
are critical to the debtor's ongoing business operations and
reorganization efforts.  Minneapolis is closer to an airport that
will service the needs of the debtor, and it is a much larger
city with a larger population for its labor base.


SUNDANCE INDUSTRIES: California Gun Maker Files for Bankruptcy
--------------------------------------------------------------
The owner of Sundance Industries, one of six Southern California
firms that produce 80 percent of the "Saturday Night Special"
guns in the United States has filed for bankruptcy, according to
a newswire report. Steven Jennings filed chapter 7, citing a
string of lawsuits filed by cities around
the country seeking to place blame on gun makers for gun
violence. (ABI 09-Sept-99)


TRANS ENERGY: Result Of Sale Of Assets=Greater Net Losses
---------------------------------------------------------
Trans Energy Inc. reports net loss for the second quarter and
first half of 1999 was $2,922,855 and $4,694,696, respectively,
compared to a net loss of $67,837 and $282,210 for the 1998
periods.  This increase in the company's net loss is attributed
primarily to the company's loss of $2,442,961 on the
sale of assets in the second quarter and the increase in
depreciation and amortization.   The revenues for the second
quarter and first half of 1999 were $295,067 and $561,927,
respectively, compared to revenues of $266,768 and $473,006 for
the 1998 periods.


UNIVERSAL SEISMIC: Files Voluntary Chapter 11
---------------------------------------------
Universal Seismic Associates, Inc. and its wholly owned
subsidiary, Universal Seismic Acquisition, Inc. announced today
that the companies have filed voluntary petitions for
reorganization under Chapter 11 of the Federal Bankruptcy Code in
Federal District Court in Houston, Texas.

Mr. Joe T. Rye, President of both companies, stated that the
filings were to reorganize the companies under the provisions of
Chapter 11.  Mr. Rye further noted that economic conditions in
the energy sector and related service providers have been down
substantially over the past 12 to 18 months, and as a result both
companies have been negatively impacted.  During the past 18
months there has been substantially less seismic recording
activity than the available operating capacity, which has not
been sufficient to operate the businesses.

Cost reductions and operating downsizing were put into place in
September 1998.  However, these efforts could not overcome the
overriding economic downturn in the energy sector and lack of
funds to operate the businesses.  In addition, efforts made to
sell assets or merge with a suitable party during this
period were unsuccessful.

"Reorganization plans are in process and will be forth coming in
the near future," stated Mr. Rye.

According to an article in The Houston Chronicle on September 9,
1999, the parent company listed assets of $ 11.6 million and
liabilities of $ 20.9 million, while the subsidiary listed assets
of $ 8.7 million and liabilities of $ 19.5 million.

Its major creditor is Rimco, a financing company based in Avon,
Conn.  Last September, Universal Seismic downsized but could not
overcome the overriding economic downturn in the energy sector.
Efforts to sell assets or merge with another company at that time
were unsuccessful.  But the company was successful last April in
selling the oil and gas assets of its exploration and production
subsidiary, thereby retiring $ 9 million in debt.

Universal provides three-dimensional seismic data acquisition and
processing services for energy companies, primarily in the
coastal areas of Texas and Louisiana, and to a smaller extent, in
Oklahoma, Mississippi and Alabama.

Lacking offshore capabilities, it works on land and in the
marshes and shallow bays. The company was founded as Trapp
Geophysical Consultants in 1985, changed its name to Universal
Seismic Associates in 1991, and went public in 1992.

The company ran into a series of problems about two years ago,
said Chief Financial Officer Clifton Fridge.

In July 1998, Rye wrote to shareholders describing an aborted
merger, proxy fights, a shareholder lawsuit and an unsuccessful
attempt to sell or merge the company. There had been accounting
errors that caused the results for fiscal 1996 and 1997 to be
restated, and its auditing firm resigned without warning. The
company's stock was delisted on the Nasdaq when it failed to meet
the tangible assets requirement. With that behind it, and with
new management, "it looked like things were going to go pretty
good for us -- then the market hit us," Fridge said. The
company has had basically no work since March, he said.

Before the company downsized 18 months ago, it employed 200
workers. Last September, after a further paring, the company had
50 or 60 workers. Today, it has 14 workers.  As one of the
smaller companies, it is at a disadvantage with the big seismic
companies in bidding for contracts during difficult economic
times.


WILSHIRE FINANCIAL: Fires Two Top Execs In Reorganization Bid
--------------------------------------------------------------
The whiz-kid founder of Wilshire Financial Services Group and his
number two executive have been fired by the company's board in a
disagreement over how to refloat the troubled loan company.

Chief Executive Officer Andrew Wiederhorn, who made a
multimillion-dollar fortune at Wilshire before he turned 30, and
co-founding president Lawrence Mendelsohn had both been on
suspension since Aug. 19.

At issue was a business plan submitted by the two men that the
company's board found unacceptable. There also were problems at
Wilshire Financial's First Bank of Beverly Hills unit, which
represents about two-thirds of the company's assets.

The board hired Steven Glennon, a New York turnaround consultant,
to replace Wiederhorn as chief executive. Faigin said the board
had not yet decided whether to replace Mendelsohn.

Wilshire Financial Services Group buys, sells and services loans
including "subprime" mortgage loans to people with bad credit.
The company's stock tanked last fall when unexpectedly high
prepayment rates on mortgage loans combined with financial crises
in Asia and Russia.

In March, the company filed for Chapter 11 bankruptcy. The
company emerged from bankruptcy reorganization in June under a
plan that gave control of the board to creditors.

A week before Wilshire came out of bankruptcy, the federal Office
of Thrift Supervision designated Wilshire's thrift subsidiary,
First Bank of Beverly Hills, a "troubled institution."

Glennon should bring maturity and a better understanding of
market risks to Wilshire, Faigin said.

The board had intended to terminate Wiederhorn and Mendelsohn in
August, but the executives fought back, obtaining a temporary
restraining order that guaranteed them continued access to their
offices to run a separate company, Wilshire Real Estate
Investment Trust Inc.

That order was struck down Sept. 3 by a Multnomah County judge
who ordered them to move to a smaller office a block and a half
away. That cleared the way for Tuesday's firings.

Wiederhorn, 33, and Mendelsohn, 38, also resigned as directors of
the company and its subsidiaries, Wilshire Financial said.
Wiederhorn continues to control Wilshire Real Estate Investment
Trust, which invests primarily in commercial and multifamily
properties.

Wiederhorn founded Wilshire in 1987 when he was 21, and built the
company into a publicly traded firm with 800 employees and stock
worth as much as $ 26 a share. The stock, which as severely
diluted under the terms of the bankruptcy reorganization, began
an equally rapid decline last year.

Shares closed Tuesday at $ 1.2813, down 9.38 cents in trading on
the Nasdaq exchange.


WORLDCORP: Seeks To Extend Exclusive Periods
--------------------------------------------
The debtors, WorldCorp, Inc. and WorldCorp Acquisition Corp.,
seek to extend their exclusive periods in which to file a Chapter
11 plan and to solicit acceptances thereof.

The debtors seek an extension of 30 days from September 10, 1999
through and including October 10, 1999 of the period during which
the debtors have the exclusive right to file a plan resolving
this case, as well as a 30-day extension from November 12, 1999
through and including December 12, 1999 of the period during
which the debtors will have the exclusive right to solicit
acceptances of such a plan.  

The debtors claim that the requested extension is warranted to
allow the debtors additional time to complete the negotiations,
draft a revised plan and disclosure statement, obtain approval of
the disclosure statement and solicit acceptances.


WSR CORP: Order Authorizes Investment Bankers
---------------------------------------------
The US Bankruptcy Court for the District of Delaware entered an
order on August 26, 1999, authorizing the employment and
retention of Conway, Del Genio, Gries & Co. LLC as their
investment bankers nunc pro tunc as of July 20, 1999.  The
debtors and the Committee are authorized to jointly employ and
retain the firm as their investment bankers.


                  **********

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