TCR_Public/991025.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, October 25, 1999, Vol. 3, No. 206
                     
                     Headlines

ALLERGAN SPECIALTY: Farallon Group Holds 33.4% Of Stock
AL TECH: Steelworkers and Committee Seek New Effective Date
CONCORD ENERGY: Summary of Plan
FIRST UNION REAL ESTATE: Approval Sought To Sell Properties
FORCENERGY: Objection To Motion To Determine Value of Claims

FORCENERGY: Opposition of Union Oil to Disclosure Statement
FWT INC: Order Authorizes Employment of Stroock & Stroock
GARDEN BOTANIKA: Seeks Amendment To Postpetition Financing
HARVARD INDUSTRIES: Repurchases Notes/Stock, Pays Off Credit
HARVARD INDUSTRIES: Kingston-Warren Sold For $115 Million

HVIDE MARINE: Files Proposed Joint Plan Of Reorganization
GENESIS DIRECT: Status Conference and Scheduling Order
HOME HEALTH CORP: Seeks Order Amending Employment Agreements
IMAGYN MEDICAL: Emerges From Chapter 11
LIVENT: Adjournment of Creditors' Meeting

LIVENT: Hearing On Appointment of Responsible Officer
NATIONSWAY TRANSPORT: Denver Objects To Post-Petition Financing
PHC INC: Comparison Figures Show '99 Reduction In Total Loss
PHP HEALTHCARE: Memorandum Of Law Supporting Confirmation of Plan
PRECISION AUTO: Reports Net Loss Despite Revenue Increases

PSI INDUSTRIES: Exploring Reorganization Options
RUSSELL CORP: Dividend Yields Right To Buy Preferred Stock
SINGER: Responds To IBJ Whitehall's Motion Seeking to Lift Stay
SUN HEALTHCARE: SUN HEALTHCARE: Seeks To Pay Prepetition Critical
Vendors
TECHMEDIA: Trustee Seeks Sale of Real Property

TIE/COMMUNICATIONS: Committee Seeks Extension
TRANSTEXAS: Notice of Perfection of Mineral Property Lien
UNITED COMPANIES: Principal Life Seeks Use Of Pre-Petition Money
VENCOR: Court Approves Motion Seeking To Sublet Nursing Homes
                  
                     *********

ALLERGAN SPECIALTY: Farallon Group Holds 33.4% Of Stock
-------------------------------------------------------
The following investment partnerships and their managers hold
common stock shares in Allergan Specialty Therapeutics Inc. with
shared voting and dispositive power, and in the amounts and
percentages shown:

Tinicum Partners, L.P., 22,500 or 0.7%
Farrallon Capital (CP)Investors, L.P., 40,900 or 1.3%
Farallon Capital Institutional Partners II, L.P., 49,300 or 1.5%
Farrallon Capital Institutional Partners III, L.P., 61,700 or
1.9%
Farallon Capital Institutional Partners, L.P., 245,700 or 7.5%
Farallon Capital Management LLC, 435,800 or 13.3%
Farallon Capital Partners, L.P., 236,021 or 7.2%
Farallon Partners L.L.C., 656,121 or 20.1%
Fleur E. Fairman, Same as above Andrew B. Fremder, David I.
Cohen, Enriqui Boilini, Jason M. Fish, Joseph F Downes, William
F. Duhamel, Richard B. Fried, William F. Mellin, Stephen L.
Millham, Meridee A. Moore, and Thomas F. Steyer each, 1,091,921
or 33.4%

The above hold an aggregate of 1,091,921 Shares, which is 33.4%
of the outstanding common stock of Allergan.  Of the shares held
by the Management Company on behalf of the Managed Accounts,
9,500 shares (equal to approximately 0.3% of the total shares
currently outstanding) are held by The Absolute Return Fund of
The Common Fund, a non-profit  corporation.

The Management Company, as an investment adviser, has the power
to direct the disposition of the proceeds of the sale of the
shares held by the Managed Accounts.  The individuals noted,
other than Fairman, are managing members of the Management
Company.


AL TECH: Steelworkers and Committee Seek New Effective Date
-----------------------------------------------------------
The United Steelworkers of America AFL-CIO-CLC, Atlas Steels,
Inc. and the official committee of unsecured creditors, consented
to by Al Tech Steel Corporation, debtor, seek an extension of
time for the occurrence of the Effective Date.  The debtor has
successfully closed the sale of the debtor's extrusion operations
to Altx, Inc. as contemplated under the plan.

However, the sale of the Newco Purchased Assets to NewCo has not
closed.  One of the contingencies to the NewCo Sale was the
securing of necessary financing by NewCo to fund the purchase and
operation of the debtor's business.  The closing of the NewCo
Sale was delayed due to the fact that NewCo's financing
arrangements with LaSalle Business Credit, Inc. were not
finalized.

NewCo and LaSalle have negotiated the modified terms of a
financing arrangement.  They expect that the documentation of the
credit agreement will be completed on or about October 18, 1999.  
In addition the final execution of a consent decree by the NY
State Department of environmental conservation and the
establishment of the Newco Stock Plan should be completed no
later than October 22, 1999.  A closing is scheduled for October
22, 1999.  Therefore, the movants submit that it is both
necessary and appropriate, and in the best interest of the
debtors and the creditors to extend the occurrence of the
Effective Date to October 22, 1999.


CONCORD ENERGY: Summary of Plan
-------------------------------
In summary, the plan of reorganization of Concord Energy
Incorporated and Knight Equipment & Manufacturing Corporation
provides that the holders of the oil and gas secured notes and
the 1994 and 1995 Secured Notes will retain their security
interest in their collateral, which collateral will be
transferred to and/or retained by CEI.  In addition, on account
of unsecured claims, the Reorganized CEI will issue shares of its
common stock as set forth in any Restated Charter, to the holders
of claims in Classes 6 and 7. The holders of claims in Class 3
will retain their security interests and will be paid from the
proceeds of the sale of their collateral. Class 8 is the other
holders of unsecured clams against Concord, which will receive
their pro rata share of the Concord Fund.  Class 10 is the
holders of unsecured claims against KEMCO, which will receive
their pro rata share of the Liquidating Trust.  The equity
interests  and claims in respect of KEMCO's common stock are
afforded no value under the plan and would be canceled.  The plan
also provides for the rejection of any pre-petition employment
agreements.

Summary of Treatment of Claims:

Class 1A
Unsecured Claims against Akashic/AKT that are entitled to
priority. Not impaired. $120,000.

Class 1B
Allowed Unsecured Claims Against Incorporated, International or
Strates that are entitled to priority - Not impaired. $120,000

Class 2
Priority tax claims - 0

Class 3A
The Foothill Group - Impaired - Asserted Claim of $10.7 million
Recovery is based on Maxtor Litigation Gross Recovery

Class 3B
Bank Group Secured Claim - Impaired
Votes of holders of allowed claims in Class 3B are being
solicited and holders of undisputed  claims in Class 3B are
entitled to vote on the plan. Asserted claim of $33.8 million
after application of proceeds of collateral.  Depending on the
results of sale of Bank Group Collateral up through and including
the confirmation date, and upon the results of the Maxtor
Litigation, claims of the Bank Group may be undersecured or
oversecured.  With no recovery, debtors estimate that a further
distribution of $6.5 million will be made.

Class 3C - Other Secured Claims
- 0 -

Class 4 - Unsecured Claims

4A - Allowed StorMedia Unsecured Claims Estimate - $23,108,400.
     Share pro rata all distributions from the StorMedia Non-
     Maxtor Fund. Shall share pro rata all distributions from
     the StorMedia Maxtor Litigation Fund.

4B - Allowed Akashic Unsecured Claims - $8,941,000 - shall share
     pro rata all distributions from the Akashic Fund.
     
4C - Allowed Bank Group Deficiency Claim - Share pro rata all
     distributions from the StorMedia Non-Maxtor; Shall share pro
     rata all distributions from the Akashic Fund
   
4D - Alled Bank Group Limited Deficiency Claims
     Shall share pro rata all distribuitions fromt eh StorMedia
     Maxtor Litgation Fund.

All class 4 Claims are impaired.  The recovery on account of
allowed claims in Classes 4A and 4B are based on a schedule of
Maxtor Ltiigation Gross Recoveries.

Class 5 - Intercompany claims - Impaired under the plan

Class 6 - Subordinated claims - Impaired - All claims disputed by   
          Debtors - no claims.

Class 7 - Preferred stock Interests - After payment of classes 4
and 6, holders of allowed class 7 interests shall receive on a
pro rata basis any surplus remaining in the AKT Fund, the Akashic
Fund or the StorMedia Maxtor Litigation Fund.  The debotrs
estimate $8 million in allowed interests.  There will be no
recovey unless the Maxtor Litigation Gross Recovery is $100
million or more.

Class 8  - Common stock Interests -  Impaired. After payment of
classes 4 and 6, holders of allowed class 8 interests shall
receive on a pro rata basis any surplus remaining in the AKT
Fund, the Akashic Fund or the StorMedia Maxtor Litigation Fund.  
There will be no recovery unless the Maxtor Litigation Gross
Recovery is $100 million.


FIRST UNION REAL ESTATE: Approval Sought To Sell Properties
-----------------------------------------------------------
A special meeting of the beneficiaries of First Union Real Estate
Equity and Mortgage Investments, a trust organized in Ohio, will
be held in the Murray Hill Room at The New York Helmsley Hotel
located at 212 East 42nd Street, New York, NY 10017, on Tuesday,
November 16, 1999, at 10:00 a.m., local time.

The purpose of the meeting is to consent to the sale of certain
properties of the company in accord with a Purchase and Sale
Agreement, dated July 14, 1999, as amended by a first letter
agreement, dated August 11, 1999, by a second letter agreement,
dated September 22, 1999, and by a third letter agreement, dated
October 7, 1999, between Southwest Shopping Centers Co.
II, L.L.C., a Delaware limited liability company and an indirect
wholly-owned subsidiary of the company, and WXI/Z Southwest Malls
Real Estate Limited Partnership, a Delaware limited partnership,
for a purchase price of $191.5 million and to approve amendments
to the company's Amended Declaration of Trust relating to the
company's ability to (i) engage in certain activities in
connection with the investment and financing of company assets
and (ii) effectuate a reverse or forward split of shares of
beneficial interest of the company.

Consent to the Purchase and Sale Agreement requires the
affirmative vote of holders of a majority of the outstanding
shares. The Board of Trustees of the company is seeking
beneficiary consent to the asset sale in accordance with the
company's Amended Declaration of Trust, which provides that no
sale of more than 50% of the company's property may be made
without the consent of holders of at least a majority of the
outstanding shares. The asset sale, together with prior asset
sales that were part of a sales program initiated by the company
in June 1998, would, in the aggregate, constitute a sale by the
company of more than 50% of the company's property. Accordingly,
a vote to consent to the asset sale will be deemed a vote to
consent to the sale by the company of more than 50% of the
company's property.

Concurrently with the execution of the Purchase and Sale
Agreement, beneficiaries who own, in the aggregate, approximately
20.79% of the outstanding shares, agreed to consent to the sale
of the properties pursuant to the Purchase and Sale Agreement.

Approval of each of the amendments requires the affirmative vote
of holders of a majority of the outstanding shares.


FORCENERGY: Objection To Motion To Determine Value of Claims
------------------------------------------------------------
Baker Hughes Oilfield Operations, Inc. dba Baker Oil Tools,
Cardinal Services, Inc. and Fastorq, Inc. object to the debtor's
motion to determine value of secured claims asserted on the South
Marsh Island 11 Property and seeks entry of an order providing
for the conversion of this matter to an adversary proceeding,
entry of a scheduling order, and entry of an order for leave to
join the Bank Group as a necessary party.

The movants allege that debtor's motion is misidentified as a
motion to determine value of secured claims.  Rather, the motion
seeks a determination by the court as to the validity and
priority of  competing liens.  The movants state that this
proceeding MUST be brought as an adversary proceeding.  The
movants state that this is a classic case for lien stripping of
junior lien holders, and a classic case for an adversary
proceeding to determine the validity and priority of competing
liens on the same property, for determining the effectiveness of
the Bank Group's attempts to perfect their consensual liens, for
determining the value provided to the leasehold estates by the
mineral lien claimants and the unjust enrichment provided to the
Bank Group for determining the different effects of the failure
to comply with relevant state laws on consensual lien claimants
as to statutory lien claimants.

The movants claim that prior to the debtor's apparent settlement
with the Bank Group, the debtor raised questions as to the
validity of the Bank Group's lien perfection on this property.  
"Apparently the sacrifice of the mineral lien creditors was the
price of the settlement", according to the movants.  The movants
request that the court convert this matter to an adversary
proceeding and establish a scheduling order for trial.


FORCENERGY: Opposition of Union Oil to Disclosure Statement
-----------------------------------------------------------
Union Oil Company of California opposes approval of the proposed
first amended joint disclosure statement of Forcenergy, Inc. and
Forcenergy Resources Inc.

UNOCAL is the operator of mineral properties located in the State
of Alaska, and Forcenergy Inc. owns an interest in Trading Bay
Field and Trading Bay Unit and is a party to the joint operating
agreement concerning the operations of these properties.  
According to UNOCAL, Forcenergy is obligated to both the State of
Alaska and UNOCAL to satisfy its share of the plugging and
abandonment costs related to these properties.

UNOCAL alleges that the disclosure concerning the funding of the
plugging and abandonment liabilities in the proposed plan is
"woefully inadequate" in light of the commitment to the
retirement of debt and the undeveloped nature of the Redoubt
Shoal prospect where a well has not even been drilled.


FWT INC: Order Authorizes Employment of Stroock & Stroock
---------------------------------------------------------
The US Bankruptcy Court for the Northern District of Texas Fort
Worth Division entered an order on October 12, 1999 authorizing
retention of Stroock & Stroock & Lavan as counsel for the
Official Committee of Noteholders, effective as of June 1, 1999.  
Stroock shall be compensated at its normal hourly rates subject
to a cap on its rates of $350 per hour.


GARDEN BOTANIKA: Seeks Amendment To Postpetition Financing
----------------------------------------------------------
The debtor, Garden Botanika, Inc. seeks authority to modify the
terms of the postpetition financing.  The debtor has been
required by various suppliers to provide deposits in amounts
substantially greater than projected.  Such deposits were
necessary in order to assure the delivery of custom-made goods to
the debtor markets.

The debtor believes that a $750,000 increase on loan availability
in excess of the Borrowing Base authorized under the Final
Finance Order will be adequate.  The debtor requests that the
court authorize a modification of the final finance order
approving a temporary overadvance to be repaid and not renewed
after November 7, 1999.  The $7 million DIP Credit Facility
maximum borrowing limit is not affected by the proposed loan
modification.


HARVARD INDUSTRIES: Repurchases Notes/Stock, Pays Off Credit
------------------------------------------------------------
On the day of the Kingston-Warren sale, Harvard Industries Inc.
used part of the proceeds of the sale to repurchase all of its 14
1/2% Senior Secured Notes due 2003 for $30,585,361.11, a formula
price which includes interest and prepayment premiums, as well as
other adjustments. The company deposited the monies with the
Trustee on September 30, 1999 and the Trustee discharged and
released the Indenture and Collateral Agreement.

The same day the company used part of the proceeds of the sale to
satisfy all obligations under its $115 million senior secured
revolving credit facility with General Electric Capital
Corporation. The company paid $69,020,272.44 in satisfaction of
outstanding principal balance, interest accrued through September
30, 1999 and other charges. GECC terminated the credit facility
and issued a Pay-Off Confirmation Letter dated September 30,
1999.

Additionally, on September 30, 1999, Harvard Industries put in
place a new $50 million credit facility with General Electric
Capital Corporation, secured by substantially all of the assets
of the company and its domestic subsidiaries. The credit facility
provides for up to $50 million of revolving credit borrowings
with a $15 million sub-limit letter of credit facility. The
proceeds will be used to finance working capital and other
general corporate purposes and for acquisitions.

The on October 5, 1999, the company used part of the proceeds of
the sale of the assets of its Kingston-Warren subsidiary to
purchase 762,000 shares of its common stock in a private
transaction at an aggregate cost of approximately $4.95 million.
As of September 30, 1999, the company had 10,234,222 shares of
common stock outstanding.


HARVARD INDUSTRIES: Kingston-Warren Sold For $115 Million
---------------------------------------------------------
On September 30, 1999, The Kingston-Warren Corporation, a wholly-
owned subsidiary of Harvard Industries, Inc., completed its
previously announced sale of substantially all of its assets to
KWC Acquisition Corp., a subsidiary of Hutchinson, S.A., a French
corporation, for $115 million, less certain adjustments.  On the
day of the closing, Kingston-Warren received $108,800,000 in
cash. Additionally, $2.5 million was deposited by the purchaser
with an escrow agent to secure post closing adjustments, if
any, and $3.1 million was deposited by the purchaser with an
escrow agent to indemnify obligations, if any.

Prior to the sale, The Kingston-Warren Corporation was
principally engaged in the business of manufacturing, selling and
distributing products for automotive window and body sealing
systems, including glass run channels, belt strips and body
seals. The assets purchased include all real property, capital
assets, inventory, supplies, trademarks and patents, accounts
receivable, contracts and leases, and all other rights and assets
owned by The Kingston-Warren Corporation, except real property
located at Lebanon, New Jersey and Farmington Hills, Michigan,
certain computer systems and software, and cash on hand as of the
day of the closing. The purchaser has assumed substantially all
liabilities of The Kingston-Warren Corporation, except guarantees
of the outstanding debt of Kingston-Warren's parent, Harvard
Industries, Inc.


HVIDE MARINE: Files Proposed Joint Plan Of Reorganization
---------------------------------------------------------
As previously reported, on September 8, 1999, Hvide Marine
Incorporated and certain of its subsidiaries filed voluntary
petitions under Chapter 11 of the United States Bankruptcy Code
in the United States Bankruptcy Court for the District of
Delaware.

On October 1, 1999, the company and its subsidiaries filed a
proposed Joint Plan of Reorganization and a related proposed
Disclosure Statement with the Bankruptcy Court.  Under the Plan,
holders of the company's 8.375% Senior Notes due 2008 would
exchange such Notes for 9,800,000 shares of common
stock of the reorganized company,  representing 98% of the common
equity of New Hvide; holders of the Trust Convertible Preferred
Securities issued by a subsidiary of the company would receive
200,000 shares of common stock of New Hvide,  representing 2% of
its common equity, together with warrants to purchase an
additional 125,000 shares; and holders of the company's  common
stock would receive warrants to purchase 125,000 shares of common
stock of New Hvide.  The warrants would be exercisable at $38.49
per share and would have a term of four years.

Completion of the Plan is subject to various conditions,
including obtaining refinancing for the company's bank borrowings
including those under its previously reported debtor-in-
possession credit facility.  To date, the company has been
unsuccessful in its efforts to refinance these borrowings, and
there is no assurance that it will be able to do so in the
future. Completion of the Plan is also subject to approval by the
Bankruptcy Court.


GENESIS DIRECT: Status Conference and Scheduling Order
------------------------------------------------------
The US Bankruptcy Court District of New Jersey entered a
scheduling order providing that a status conference will be held
in this case on November 17, 1999 2:00 PM at which the court will
rule on monthly operating reports, and the court will set a date
by which the debtor shall file a disclosure statement and plan.

By separate order the court held that the time within which the
debtors shall file their Statements and Schedules be extended to
October 18, 1999.

The debtors' motion to extend time to assume or reject leases,
and to reject an unexpired lease with Soccer Madness LLC and
Courtyard Distribution Center and the debtors' motion to approve
an employment arrangement have been adjourned by the court to
November 1, 1999.


HOME HEALTH CORP: Seeks Order Amending Employment Agreements
------------------------------------------------------------
The debtors, Home Health Corporation of America, Inc. et al. seek
court approval of amendments to certain employment agreements and
seek authority and approval for the assumption of those
employment agreements.  The employment agreements are between the
debtor and David S. Geller, Colleen Lederer and James Weinstein.  
The agreements provide certain salary boosts to the three key
employees together with bonus and severance arrangements.


IMAGYN MEDICAL: Emerges From Chapter 11
---------------------------------------
Imagyn Medical Technologies, Inc. announced that it
has successfully completed its emergence from Chapter 11,
following confirmation on October 18, 1999 of its Plan of
Reorganization by the U.S. Bankruptcy Court for the District of
Delaware. The Company filed a petition for reorganization
under Chapter 11 on May 18, 1999. As previously announced, the
Plan, which was supported by holders of the Company's debt and
its trade creditors, provides that all outstanding shares of
common stock of Imagyn Medical Technologies, Inc.
will be cancelled.  

Charles A. Laverty, Chairman & Chief Executive Officer of
Imagyn, stated, "Imagyn has emerged from the Chapter 11 process
with a more stable capital structure and stronger financial
resources. Our business has made significant progress during the
past five months. We will intensify our efforts to expand the
market for our current line of innovative products. At the same
time we will also be focusing on completing the development of
several breakthrough products that are in various stages in the
Company's R&D pipeline. Our ability to complete the
reorganization in such a relatively short time has been a real
positive and is a tribute to the dedication of our employees, the
support and cooperation of our suppliers and customers, and the
commitment of our financial investors." Imagyn Medical
Technologies, Inc. is a manufacturer and marketer of products for
the minimally invasive and general surgery market and of
brachytherapy seeds for the treatment of cancer.


LIVENT: Adjournment of Creditors' Meeting
-----------------------------------------
The adjourned meeting of creditors in the case of Livent(US)
Inc., et al. will be held on December 15, 1999 at 2:30 PM.


LIVENT: Hearing On Appointment of Responsible Officer
-----------------------------------------------------
The debtors, Livent (US) Inc., et al. seek an order appointing a
responsible officer in lieu of a Board of Directors.  A hearing
will be held on November 3, 1999 at 2:00 PM.

The debtors have selected Marc E. Richards, Esq. of the law firm
Thelen Reid & Priest LLP to act as responsible officer.  The
debtors assert that now that the debtors have ceased to operate
as a going concern, the costs of continued service of the
Directors from both the estates and the Directors' personal
perspectives are simply not warranted.  The Board of Directors of
Livent, Inc., the debtors' Canadian parent corporation has
disbanded as a result of the appointment of a receiver in Livent
Inc.'s CCAA proceeding.


NATIONSWAY TRANSPORT: Denver Objects To Post-Petition Financing
---------------------------------------------------------------
The city and county of Denver and its Manager of Revenue object
to the debtors' motion for interim and final order approving
post-petition financing, granting security interests and super-
priority administrative expense treatment and modifying the
automatic stay.

According to the movants, the debtor seeks to obtain credit
secured by a lien senior to existing liens on property of the
estate.  The City and its Manager claim to have liens on the
property of the estate.  The movants claim that the bankruptcy
code only permits a senior lien to be given for such credit if
there is adequate protection for the interests of the city and
its manager.  The movants claim that the debtors are arbitrarily
providing for payment of post-petition expenses of the estates
without mentioning payment of post-petition obligations to the
city and its manager.


PHC INC: Comparison Figures Show '99 Reduction In Total Loss
------------------------------------------------------------
PHC, Inc. with its subsidiaries is a national health care company
specializing in the treatment of substance abuse, which includes
alcohol and drug dependency and related disorders, and in the
provision of psychiatric services.  The company currently  
operates two  substance abuse treatment facilities: Highland
Ridge Hospital, located in Salt Lake City, Utah; and Mount Regis
Center, located in Salem,  Virginia, near Roanoke and eight
psychiatric facilities:  Harbor Oaks Hospital, a 64-bed
psychiatric hospital located in New Baltimore,  Michigan; Harmony
Healthcare, a provider of outpatient behavioral health services
at two locations in the Las Vegas, Nevada area; Total Concept
EAP, a provider of outpatient behavioral health services in
Shawnee Mission, Kansas; and North Point-Pioneer, Inc. which
operates four outpatient behavioral health centers under the name
Pioneer  Counseling Center in the greater Detroit metropolitan
area.  The company also operates BSC-NY, Inc., which provides
management and administrative services to psychotherapy and
psychological practices  in the greater New York City
metropolitan area.  Through its subsidiary, Behavioral Health
Online, Inc., the company operates its web site,
Behavioralhealthonline.com.

Revenues for the fiscal year ended June 30, 1999 were $
19,139,496. Earnings before taxes, interest, depreciation and
amortization for currently operating facilities increased by
$1,351,169 for the year ended June 30, 1999 to $845,747 from a
loss for the year ended  June 30, 1998 of $505,422. The company
reduced its total loss by $5,090,703 for the fiscal year ended
June 30, 1999 compared to June 30, 1998.  


PHP HEALTHCARE: Memorandum Of Law Supporting Confirmation of Plan
-----------------------------------------------------------------
The debtor, PHP Healthcare Corporation states that due to the
seizure of the debtor's primary operating subsidiary, and the
substantial liabilities of PHP arising pre-petition, the debtor
lacked the fundamental financial bases to reorganize its
business.  The plan allocates the debtor's assets between
NationsBank, the debtor's primary secured creditor having blanket
liens on the majority of the debtor's assets, the holders of
certain other secured claims, and the holders of unsecured
claims.  It effects a substantive settlement and compromise of
disputed claims among the Official Committee Representing
Unsecured Creditors, the debtor, and NationsBank.  It creates a
liquidation vehicle, in the form of a Delaware limited liability
company, to pursue causes of action and other assets not
encumbered by NationsBank's liens.  And the plan provides for the
payment in cash, primarily from NationsBank's cash collateral, of
allowed administrative and priority claims.  The plan has the
support of each of the impaired classes and subclasses of claims
entitled to vote to accept or reject the plan.

In its memorandum supporting confirmation of the plan, the
proponents state that the plan complies with the bankruptcy code,
that at least one class of impaired claims has accepted the plan,
and that the plan is not likely to be followed by liquidation or
the need for further financial reorganization.  The debtor
replies to each of the objections to the plan, and the debtor
summarizes the modifications to the original plan.


PRECISION AUTO: Reports Net Loss Despite Revenue Increases
----------------------------------------------------------
Precision Auto Care, Inc. is a provider of automotive maintenance
services with franchised and company-operated centers located in
the United States and in certain international locations. The
company's services are provided to automobile owners and focus on
those high frequency items required to properly maintain the
vehicle on a periodic basis. The company supports its franchisees
and company-owned centers by distributing certain automotive and
car washing parts and supplies, and manufacturing and
distributing pre-fabricated modular buildings and car wash
equipment and chemicals.

Revenue for the twelve months ending June 30, 1999 was $44.8
million, an increase of $3.0 million, or 7%, compared with
revenue of $41.8 million for the prior year. The company recorded
a loss of $21.0 million for the twelve months ending June 30,
1999, compared with net income of $1.2 million for the prior
year.


PSI INDUSTRIES: Exploring Reorganization Options
------------------------------------------------
On June 2, 1999, Dominick Seminara resigned as PSI Industries'
Chief Executive Officer and Chairman of the Board and Ben Cohen,
then the company's President and a Director, was appointed as
Chairman of the Board and Chief Executive Officer. In addition,
on June 4, 1999 Mirco Vietti resigned as a Director of the
company and was removed as an officer of the company. Subsequent
to the resignations of Mr. Seminara and Mr. Vietti, management
discovered certain accounting irregularities.

As a result of the foregoing, on July 29, 1999 the company filed
a voluntary petition for relief under Chapter 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for
the Southern District of Florida (West Palm Beach Division).  
Currently the company is being operated as a Debtor-in-Possession
under court order and is exploring a number of reorganization
possibilities. However, should it be unable to reorganize, the
company may have to be liquidated under Chapter 7 of the
United State Bankruptcy Code.

PSI Industries net sales for the three and six months ended June
30, 1999 were $4,999,361 and $12,151,444, respectively compared
to $6,713,286 and $13,628,846 for the three and six months ended
June 30, 1998, respectively.  Net loss for the three and six
months ended June 30, 1999 was $13,894,502 and $13,806,783,
respectively, compared to net income of  $918,195 and
$652,692 for the three and six months ended June 30, 1998,
respectively.


RUSSELL CORP: Dividend Yields Right To Buy Preferred Stock
----------------------------------------------------------
On September 15, 1999, the Board of Directors of Russell
Corporation declared a dividend distribution of one Right for
each outstanding share of common stock of the company.  The
distribution is payable to the shareholders of record at the
close of business on October 25, 1999.  Each Right entitles the
registered holder to purchase from the company one one-hundredth
of a share of the company's Series A Junior Participating
Preferred Stock at a price of $85 per one one-hundredth of a
share, subject to adjustment under certain circumstances

The Rights are not exercisable until the distribution date and
will expire at 5:00 P.M. (Alexander City, Alabama time) on
October 25, 2009, unless such date is extended or the Rights are
earlier redeemed or exchanged by the company.


SINGER: Responds To IBJ Whitehall's Motion Seeking to Lift Stay
---------------------------------------------------------------
IBJ Whitehall Bank & Trust Company seeks relief from the
automatic stay in the Semi-Tech cases, but not in the Singer
Chapter 11 cases, "to sell, lease, assign or otherwise dispose of
the collateral."  The collateral is the 49.6% interest in the
common stock of The Singer Company NV purportedly owned by Graeme
Limited, a debtor in the Semi-Tech cases.

Singer states that the motion should not be granted because of
the detrimental effect that the relief could have on the Singer
reorganization.  The foreclosure by IBJ Whitehall on the Semi-
Tech Singer shares could have the effect of creating adverse tax
consequences for the Singer enterprises.  The foreclosure could
also affect other business and contractual arrangements that the
Singer companies have worldwide.  Singer asserts that it and its
constituencies should be given a reasonable period of time to
determine their conclusions as to the effect of the proposed
foreclosure on the tax and business arrangements of Singer.

The motion also raises issues including what action IBJ Whitehall
will take if it forecloses on the Semi-Tech Singer shares to
exercise control over or interfere with the corporate governance
of Singer.  Although the motion seeks only relief for disposition
purposes, it is unlikely IBJ Whitehall does not have some
unannounced plan if successful on the motion, to call a meeting
of Singer shareholders and exercise some control over Singer.

Singer also states that if the effect of the proposed relief is
to diminish NOLs currently available to Singer, then the relief
should not be granted unless the automatic stay in the Singer
Cases is lifted or modified.


SUN HEALTHCARE: Seeks To Pay Prepetition Critical Vendors
---------------------------------------------------------
The Debtors have identified hundreds of Critical Vendors
supplying pharmaceutical drugs, medical supplies, equipment and
other goods and services that are unique and cannot be duplicated
by other suppliers.  These Critical Vendors include back-up
pharmacies, pharmaceutical delivery services, emergency answering
services, medical waste disposal services, security services,
consultants, oxygen suppliers, therapy services, clinical testing
services, patient care supply services, laboratories, blood
product suppliers, ambulance services, building safety services
and equipment suppliers, outpatient surgery and diagnostic
services, dialysis services, medical proficiency testing, drug
screening, credential investigation services, and contracted
medical professionals.  

By this Motion, the Debtors have sought and obtained the Court's
authority to honor up to $20,000,000 of prepetition obligations
to these creditors in the ordinary course of business.  The
Debtors are not, however, obligated or directed to honor any pre-
petition obligation.

Creditors accepting payment of a prepetition claim from the
Debtors under this Critical Vendor Program must agree to (a)
waive any pre-petition claim against the Debtors and (b) provide
post-petition goods and services on trade terms acceptable to
Sun. (Sun Healthcare Bankruptcy News Issue 2; Bankruptcy
Crediotr's Service Inc.)


TECHMEDIA: Trustee Seeks Sale of Real Property
----------------------------------------------
John M. Wolfe, Chapter 7 trustee for the bankruptcy estates of
7301 Orangewood LLC, Techmedia Lighting Inc., Techmedia Express,
Inc., Techmedia Computer Systems Corp, Techmedia Lighting,
Techmedia Express and Techmedia Computer seeks court approval for
the sale of the real property located at 7301 and 7421 Orangewood
Avenue, Garden Grove, California.

The Trustee has obtained an offer to purchase the Garden Grove
Property from Furon Company or its assignee for a purchase price
of $13.75 million.  The sale will enable the Trustee to generate
substantial cash from the sale of an asset for its fair market
value.  The proposed sale shall be subject to overbid procedures.  
Overbidders must bid an initial amount of at least $150,000 over
the purchase price, and minimum bid increments thereafter shall
be $10,000.


TIE/COMMUNICATIONS: Committee Seeks Extension
---------------------------------------------
The official committee of creditors holding unsecured claims in
the case of Tie/Communications Inc. seek an extension of an
October 25 deadline to investigate and object to the insider
claims and prosecute affirmative actions against the insiders.  
In addition, the Committee, the debtor, Moses, Nicols and Burton
seek an amicable resolution of their disputes.

The Committee asserts that cause exists for the court to extend
the October 25 deadline for an additional 180 days. Despite the
Committee's investigation, resulting in filing of the Litigation
(by these objections, the Committee seeks to disallow in the
entirety, and/or equitably subordinate, over $38 million in
claims filed against the debtor's estate),the Committee has not
completed its investigation into and analysis of whether to
object to certain other Insider Claims or to file Affirmative
Actions against other Insiders.

The Committee has focused its attention on the resolution of the
largest Insider Claims, and the extension will enable the
Committee to tackle its investigation of the remaining claims.  
The Committee states that approval of the agreements with Moses,
Nicols and Burton (former directors and trade creditor) are in
the best interests of the estate.


TRANSTEXAS: Notice of Perfection of Mineral Property Lien
---------------------------------------------------------
CE Distribution Services, Inc., fka Continental Emsco Company
served notice to the debtors, TransTexas Gas Corp. and its debtor
affiliates, of perfection of its lien claims against the
leasehold estate and other associated property owned by the
debtor in Galveston County, Texas.


UNITED COMPANIES: Principal Life Seeks Use Of Pre-Petition Money
----------------------------------------------------------------
Principal Life Insurance Company seeks a court order approving
the use of pre-petition payments.  Principal is the servicer
under the United Companies Financial Corporation Employees'
Savings Plan.  Principal would prefer that its return of the
remaining balance of the pre-petition payments and the interest
earned on the pre-petition payments not jeopardize the status of
the pension plan as a qualified trust and most of all Prinicpal
wishes to insulate itself from any liability.  Principal requests
that the court approve retroactively the use of the pre-petition
payments by Principal to the employees of the company.


VENCOR: Court Approves Motion Seeking To Sublet Nursing Homes
--------------------------------------------------------------
"These transactions may well be within the scope of the Debtors'
ordinary business operations," John R. Garry, Esq., representing
the Debtors, told Judge Walrath at today's hearing, "but the
Debtors filed their Motion out of an abundance of caution," as he
presented the Debtors' request to the Court for consideration.  

"I have a question about the Debtors' business judgment," Judge
Walrath interjected.  "Explain why subletting is preferable to
rejection of the underlying leases," Judge Walrath said.  

The Debtors intend, Mr. Garry reminded the Court, to be in
chapter 11 for only a short period of time.  Further, it is the
Debtors' intention that many unsecured claims will pass through
to the reorganized company.  With that in mind, the Debtors
conclude that the relevant analysis is a comparison of the loss
on the sublease against the amount of any rejection damage claim
that would arise if the Debtors exercised their right to reject
under 11 U.S.C. Sec. 365.

Mr. Garry's comments do not mean that all creditor classes will
be unimpaired under the Debtors' Plan, Lindsee P. Granfield,
Esq., representing the Debtors, added.  "There definitely will be
an impaired class."  Major creditor groups will be impaired, Ms.
Granfield explained, but not lease rejection claims under the
plan structure currently being talked about among the core
parties in interest.  

"But what if this case doesn't return 100-cents-on-the-dollar to
unsecured creditors," Judge Walrath pressed?

In the event of a lease rejection, Mr. Garry continued, the
Debtors would face significant litigation.  Many of the Debtors'
leases contain cross-default provisions that would be triggered
by any attempt to reject one of these five leases.  Again, Mr.
Garry stressed, the Debtors have concluded that the benefits
outweigh the burdens, these five leases should not be
rejected at this time, and the subleases are the most prudent
business deals to pursue at this juncture.  

Noting the absence of any objection to the Debtors' request,
Judge Walrath Granted the Debtors' Motion in all respects.  
(Vencor Bankruptcy News Issue 5; Bankruptcy Creditor's Service
Inc.)

           *********

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