TCR_Public/991029.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, October 29, 1999, Vol. 3, No. 210
                     
                     Headlines

AQUAGENIX: Order Approves Letter of Intent/Bid Procedures
AQUAGENIX INC: Order Grants Post-Petition Financing
CENTENNIAL CELLULAR: Strong Growth In Subscriber Base
COSTILLA ENERGY: Applies To Employ KMPG LLP as Accountants
CRIIMI MAE: Proceeds From Brick Church Property

GITIC: China's Bankruptcy Law Difficult To Implement
GREATE BAY: Applies To Employ Izenberg Appraisal Assoc.
GREATER SOUTHEAST: Creditors Grant Another Extension
HARNISCHFEGER: Seeks To Reject Agreement with Mitsubishi
ICF KAISER: Purchases $14 Million Of Outstanding Notes

IMMUDYNE: Announces Fourth Quarter Results
INTRINE COMMUNICATIONS: Asks That Court Abstain From Dispute
IRIDIUM: Seeks Nod for $19.2 Million Employee Retention Program
KEVCO: Net Loss of $2 Million For Six Months Ended June 30
KIRBY CORP: Lawrence Group Holds 17.9% Of Common Stock

LEVITZ: Obtains Court Approval To Use Store As Clearance Center
NATURAL GAS: AGLC Seeks Relief From Court
PHILIP SERVICES: Files Supplement to Canadian Plan
PINNACLE BRANDS: Committee Taps Greenberg Traurig
PREMIER LASER SYSTEMS: Amends Annual Report & Restates Financials

RAND ENERGY: Objections To Plan of Reorganization
SA TELECOMMUNICATIONS: Taps Greenberg Traurig
STERLING CHEMICAL: Exchange Offer To Expire November 5
SUN HEALTHCARE: Analysts Comment On Agreement
SUN HEALTHCARE: Implementation of the Agreement

VENCOR: Seeks Sale of Properties
WTD INDUSTRIES: Reports Quarterly Net Income of $67.28M
BOND PRICING FOR WEEK OF October 25, 1999
               
                     *********

AQUAGENIX: Order Approves Letter of Intent/Bid Procedures
---------------------------------------------------------
The US Bankruptcy Court, Southern District of Florida granted the
order of the debtors, Aquagenix, Inc. and Aquagenix Land Water
Technologies, Inc. approving certain provisions of a letter of
intent and competitive bid procedures in connection with the sale
of the debtors' assets.

The Initial Bid is $1.6 million.  The sale is to occur on
November 9, 1999 at 1:30 PM. The bid is subject to higher and
better offers which may be received at that time in increments of
$5,000 after the intitial $75,000 overbid.


AQUAGENIX INC: Order Grants Post-Petition Financing
---------------------------------------------------
The US Bankruptcy Court for the Southern District of Florida
entered an order approving the post-petition financing of
Aquagenix, Inc. and Aquagenix Land Water Technologies, Inc.

Rodney Longman or an entity wholly owned by him has agreed to
provide post petition financing to Aquagenix by advancing the
amount of $200,000.   The loan will mature at closing or at such
time as the case is converted to a Chapter 7 or dismissed, or a
Trustee is appointed.  In the event that the Asset Acquisition
Corporation is a successful bidder, the post-petition loan would
be repaid through a credit toward the purchase price in the
amount of the post-petition loan, including accrued and unpaid
interest.


CENTENNIAL CELLULAR: Strong Growth In Subscriber Base
-----------------------------------------------------
Centennial Cellular Corporation's results for the three months
ended August 31, 1999 reflect strong growth in the subscriber
base in both the company's domestic operations and Puerto Rico
operations.  Its wireless subscribers at August 31, 1999 were
486,300 as compared to 354,100 at August 31, 1998, an increase of
37%. The company reported net income of $5,679 during the
three months ended August 31, 1999 as compared to $5,655 during
the three months ended August 31, 1998.

The gain was shown during the 1999 quarter on net revenues of
$117,272 while sale period 1998 net revenues were $77,446.


COSTILLA ENERGY: Applies To Employ KMPG LLP as Accountants
----------------------------------------------------------
The debtor, Costilla Energy, Inc., seeks to employ KPMG LLP as
its accountant and consultant.  The firm will provide the
following services:

Independent auditing, tax preparation and consulting and other
general
accounting services;

Accounting assistance in connection with reports and filings
required by the Court;

Services in connection with the debtor's "fresh start" accounting
requirement;

Assist with formulation of financial information related to the
Disclosure statement and plan;

Advise the debtor with respect to the Official Committees;

Assist with cash flow and financial forecasts and budgets;

Tabulation and balloting requirements, if requested.


CRIIMI MAE: Proceeds From Brick Church Property
-----------------------------------------------
It is stipulated and agreed by and between CRIIMI MAE Inc. and
the Official Committee of Unsecured Creditors of CMI that the
debtor agrees that all proceeds received by it from the sale of a
lot and motel building in Nashville Tennessee, commonly called
the Brick Church Property shall be deposited in an account with
the sale of certain BBB Bonds.  The proceeds can be used by the
debtor to fund its plan, subject to approval of the court.


GITIC: China's Bankruptcy Law Difficult To Implement
----------------------------------------------------
The January bankruptcy filing of Guangdong International Trust
and Investment Corp. (GITIC) in China has shown that China's
bankruptcy law is not sophisticated enough when considering the
other related regulations. KPMG Peat Marwick Huazen partner
Louie Choi said, "The bankruptcy law itself is not that different
from the bankruptcy law elsewhere. The problem is in China there
are a number of other rules and regulations which make
implementation of the bankruptcy law very complicated, such as
the foreign exchange  control regulations." Choi is handling the
GITIC liquidation. GITIC was the first non-bank financial
institution to be liquidated and is the biggest bankruptcy case
involving foreign investors in China. Through the process Choi
has learned that GITIC's debts were not only higher than everyone
thought, but that about half of its foreign debt was not
registered with China's foreign exchange administration, the
State Administration for Foreign Exchange (SAFE). According to
Chinese regulations, foreign-currency debt must be registered
with SAFE; unregistered foreign  debt is considered invalid by
Chinese authorities. Choi said China's bankruptcy law is not
specific enough to deal with the complexity of GITIC's
liabilities and interrelations with other rules. (ABI 28-Oct-99)


GREATE BAY: Applies To Employ Izenberg Appraisal Assoc.
-------------------------------------------------------
The debtors, Greate Bay Hotel and Casino, Inc., debtors, seek
authority and approval to employ Izenberg Appraisal Associates as
Real property appraiser.

The debtor needs the services of the firm to evaluate the
debtor's real property for the purpose of confirming the debtors'
third modified joint plan of reorganization under Chapter 11 of
the Bankruptcy Code as well as providing appraisal services
related to certain on-going real property tax litigation between
the debtor and the City of Atlantic City, New Jersey.

The debtor proposes to pay the firm a retainer of $11,250 upon
court approval of its employment and an additional  $11,500 upon
completion and delivery of a real estate appraisal report.   


GREATER SOUTHEAST: Creditors Grant Another Extension
----------------------------------------------------
Officials at Greater Southeast Community Hospital in Washington
now have until Nov. 2 to present a plan to sell the facility and
rescue it from liquidation, according to The Washington
Post. Bankruptcy Judge S. Martin Teel Jr. accepted the
postponement after hospital attorney David E. Rice reported that
the search for the best deal has not yet been completed. Several
bids are under consideration, but details have been released only
on one of those bids: a $24 million offer by Doctors Community
HealthCare Corp. of Scottsdale, Ariz. (ABI 28-Oct-99)


HARNISCHFEGER: Seeks To Reject Agreement with Mitsubishi
--------------------------------------------------------
HII owns 80% of Beloit and Mitsubishi Heavy Industries, Inc.,
owns the remaining 20%.  HII, Beloit and Mitsubishi are parties
to three related agreements:

    (1) a Shareholder Agreement dated as of October 31, 1986;

    (2) an Agreement dated as of January 18, 1995, extending the
        term of the Shareholder Agreement; and

    (3) a Standstill Agreement dated December 4, 1998 relating to
the parties' rights under the Shareholder Agreement.  

The Agreements dictate corporate governance matters, require the
delivery of many reports and notices, restrict the transfer of
shares in Beloit, and grant Mitsubishi a right of first refusal
in the event HII wants to sell its equity stake in Beloit.  
Significant matters require unanimous consent.  

The Debtors have announced their desire to sell Beloit and want
that sale to occur on a fast-track.  The Debtors are hindered in
their ability to move swiftly because of the burdens imposed by
the Agreements, time-zone, cultural and language difficulties.  
Accordingly, pursuant to 11 U.S.C. Sec. 365, the Debtors ask the
Court for authority to reject the Agreements in all respects as
of October 12, 1999.

At a hearing on October 28, 1999, David Eaton, Esq., representing
the Debtors, reported to Judge Walsh that the Debtors and
Mitsubishi intend to modify Beloit's corporate governance
procedures to accommodate the Debtors' concerns and present a
Stipulation resolving this matter on a consensual basis.
(Harnischfeger Bankruptcy News Issue 13; Bankruptcy Creditor's
Service, Inc.)


ICF KAISER: Purchases $14 Million Of Outstanding Notes
------------------------------------------------------
On October 6, 1999, ICF Kaiser International, Inc. purchased
$14,000,000 of outstanding notes from holders of its $15,000,000
12% Senior Notes due 2003, Series B.  The company purchased the
notes at 88% of par value plus accrued interest from June 30,
1999.


IMMUDYNE: Announces Fourth Quarter Results
------------------------------------------
ImmuDyne Inc. (OTCBB:IMMD), a Texas-based nutraceuticals company
specializing in dietary supplements and skin care cosmetics,
announced unaudited results for the fourth quarter ending August
31, 1999. Revenues for the quarter were $339,575, as compared to
$378,032 for the quarter ending August 31, 1998. The Company had
a profit of $12,558 for the quarter ending August 31, 1999
compared to a profit of $10,785 for the same period of the prior
year. Total operating expenses decreased to $198,687, down
from $264,897 for the same period last year.  The Company's year
end unaudited financial results for the fiscal year ending August
31, 1999, resulted in a net profit of $322,459, as compared to
net loss of $ 10,368 for the year ending August 31, 1998. Sales
for the fiscal year ending August 31, 1999 were $1,702,102,
compared to prior year sales of $ 1,602,026. Total operating
expenses decreased to $ 861,325 for the year ending August 31,
1999, down from $1,201,696 for the prior year.  In a separate
matter the Company announced that on September 20, 1999, the U.S.
Court of Appeals for the Fifth Circuit affirmed the dismissal of
the involuntary bankruptcy petition brought against Immudyne by
Mr. and Mrs. Byron Donzis and Carmel Research Inc.

The original petition had been previously dismissed on May 30,
1998 by the U.S. Bankruptcy Court for the Southern District of
Texas, Houston, TX and had been on appeal. The Company stated
that this decision supports the Company's original position in
this matter and given the unlikely event of an appeal to the U.S.
Supreme Court, this case should be completely over.  


INTRINE COMMUNICATIONS: Asks That Court Abstain From Dispute
------------------------------------------------------------
Intrine Communications LLC and Intrine, LLC ask that the US
bankruptcy Court for the District of Delaware abstain from
hearing the dispute which is the subject of an arbitration
agreement between Intrine and SmartTalk  TeleServices, Inc. and
USA Telecommunications Services, Inc. d/b/a Debit Cellular
Network.


IRIDIUM: Seeks Nod for $19.2 Million Employee Retention Program
---------------------------------------------------------------  
Iridium LLC is seeking approval to pay about $19.2 million in
retention and severance bonuses to its remaining workers. (The
Daily Bankruptcy Review & ABI c October 28, 1999)


KEVCO: Net Loss of $2 Million For Six Months Ended June 30
----------------------------------------------------------
Kevco, Inc., and its direct and indirect subsidiaries believes it
is the largest wholesale distributor of building products to the
manufactured housing and recreational vehicle industries. Through
its 26 distribution centers (as of September 30, 1999), the
company distributes more than 35,000 different inventory items to
approximately 530 manufactured housing and RV and other
manufacturing facilities throughout the United States. The
company is one of only a few companies capable of providing
national distribution of building products to the manufactured
housing and RV industries.

Kevco distributes a full line of products used in the production
of manufactured homes, including plumbing fixtures and supplies,
insulation, roof shingles, patio doors, aluminum, vinyl and wood
windows, wood and vinyl siding, fireplaces, electrical components
and hardware, fasteners, power tools and mill supplies. It also
manufactures wood products including roof trusses and lumber cut
to customer specifications, laminated wallboard products, plastic
injection molded products and thermoformed bathtubs, shower
enclosures and tub wall surrounds for the manufactured housing
and RV industries.

Management expects that the company's performance will be
adversely affected by the general slowdown in the manufactured
housing industry that has resulted from, among other things,
excess retail inventory. Management further expects that such
excess retail inventory will adversely affect the company's
performance for at least the next 12 months.

Net sales increased by $10.6 million, or 2.4%, to $454.6 million
for the six months ended June 30, 1999 from $444 million for the
comparable 1998 period. Increased revenues in both the
manufacturing and wood products operations were partially offset
by a $1.9 million decrease in the company's distribution
operations.

For the six months ended June 30, 1999, the company reported a
net loss of $2.0 million compared to a net income of $5.3 million
in the comparable 1998 period. The decrease in net income was
attributable to a combination of lower gross margins, an increase
in selling, general and administrative expenses, and higher loan
amortization costs.


KIRBY CORP: Lawrence Group Holds 17.9% Of Common Stock
------------------------------------------------------
Charles Berdon Lawrence holds sole voting and dispositive power
over 17.9%, or 3,489,477 shares, of common stock of Kirby
Corporation.  The Charles Berdon Lawrence GST Trust I, II, III
and IV hold 219,151 shares, representing 0.9% ot the outstanding
common stock of Kirby Corporation. Berdon Lawrence 1999 Retained
Annuity Trust holds benefical ownership of an aggregate amount of
17,375 shares.

Eddy J. Rogers Jr. and Robert B. Egan, hold shared voting and
dispositive power over 894,279, or 3.6% of the outstanding shares
of common stock of Kirby Corporation.

Charles Berdon Lawrence, Robert B. Egan and Eddy J. Rogers, Jr.
are Co-Trustees of four separate trusts known as the Charles
Berdon Lawrence GST Trusts and referred to individually as Trust
I, Trust II, Trust III, and Trust IV and the Berdon Lawrence 1999
Retained Annuity Trust.

Currently, Lawrence's primary occupation is Chairman of the Board
of Kirby Corporation, a position Lawrence assumed upon
consummation of the transactions by which Lawrence acquired the
shares of common stock.  Currently, Egan's primary occupation is
as a financial officer of the company, until December 31, 1999.  
Currently, Rogers' primary occupation is practicing law. Rogers
is a partner in the law firm of Mayor, Day, Caldwell & Keeton,
L.L.P.


LEVITZ: Obtains Court Approval To Use Store As Clearance Center
---------------------------------------------------------------
The Debtors sought and obtained Judge Walrath's permission to use
their store located at 2750 Sullivan Road in College Park,
Georgia, as a furniture clearance center to sell their excess and
older inventory, discontinued items and clearance merchandise.  
The College Park store was closed in 1997; no purchaser has
surfaced.  The Debtors intend to reopen the College Park facility
in January and, most likely, close the facility permanently when
the lease terminates in August.  The Debtors note that, for
$115,000 in annual rent, the lease with Falcon Associates, L.P.,
can be renewed for an additional 17 years.  (Levitz Bankruptcy
News Issue 38; Bankruptcy Creditor's Service Inc.)


NATURAL GAS: AGLC Seeks Relief From Court
-----------------------------------------
Atlanta Gas Light Company (AGLC) on Wednesday filed a motion in
federal bankruptcy court requesting relief from the court to file
a petition with the Georgia Public Service Commission (GPSC)
seeking the assignment of Peachtree Natural Gas customers to
other creditworthy natural gas marketers.  The hearing
is scheduled for Friday, October 29 at 10:30 a.m. Peachtree filed
for Chapter 11 protection on Tuesday and currently owes AGLC in
excess of $10 million for the distribution and storage of natural
gas.

AGLC is asking the federal bankruptcy court to ensure that the
issue of what happens to Peachtree's customers remains within the
jurisdiction of the GPSC.

If the court grants AGLC's request, Atlanta Gas Light will push
to have Peachtree's customers assigned to other creditworthy
marketers as soon as possible.

"It is AGLC's goal for Peachtree's customers to continue to be
reliably served and for this interim process to have minimal
impact on the customer," said Paul Shlanta, vice president and
general counsel for Atlanta Gas Light.

Atlanta Gas Light Company is the largest natural gas distribution
company in the Southeast, serving nearly 1.5 million customers in
Georgia and southern Tennessee. It also is the primary subsidiary
of AGL Resources Inc. (NYSE: ATG), a regional energy holding
company with operations throughout the Southeast.  Although
natural gas distribution is AGL Resources' core business, it also
is engaged in other energy-related businesses, including
retail propane sales, and customer care services for energy
marketers.


PHILIP SERVICES: Files Supplement to Canadian Plan
--------------------------------------------------
Philip Services Corp. (TSE:PHV.) (ME:PHV.) today announced that
the Company has filed a Supplement to the Amended and Restated
Plan of Compromise and Arrangement under the Companies Creditors'
Arrangement Act in Canada.  The Company also announced that over
90% of those unsecured creditors who voted on the Company's U.S.
Amended Joint Plan of Reorganization voted to accept the U.S.
Plan. As the Company already has the support of its secured
creditors for its financial reorganization, Philip is
confident that its U.S. Plan should be confirmed on November 3,
1999 under Chapter 11 of the U.S. Bankruptcy Code and that its
U.S. subsidiaries will emerge from the filing by early December.  
Philip's secured creditors will vote on the Canadian Plan on
November 2, 1999 and confirmation from the Canadian Court will be
sought shortly thereafter. Based on existing secured creditor
commitments, Philip is confident of their support for its
Canadian Plan, which will allow the Company to complete its
financial restructuring while not impairing its Canadian
businesses. Under the amended structure, Philip will
transfer the assets of its Canadian businesses as a going concern
to two or more newly incorporated Canadian companies, that, upon
completion of the transfers, will be wholly owned subsidiaries of
Philip Services (Delaware), Inc. Philip will continue to meet its
ongoing contractual and business obligations to its employees,
clients and trade suppliers.  The Company's insurance and
bonding, as well as its letters of credit obligations, will be
transferred to the new legal entities or be re-issued.  "Our U.S.
restructuring is proceeding on course and we expect our U.S.
companies, which represent approximately 80% of our business,
to emerge from the filing by early December," said Anthony
Fernandes, President and CEO. "Our Canadian Plan is essentially a
different path to achieve the same end. It will allow us to
complete our financial restructuring in a co-ordinated and timely
manner, while continuing our businesses and honoring our
commitments." Philip Services is an integrated metals recovery
and industrial services company, with operations throughout the
United States, Canada and Europe. Philip provides diversified
metals services, together with by-products management and
industrial outsourcing services, to all major industry sectors.


PINNACLE BRANDS: Committee Taps Greenberg Traurig
-------------------------------------------------
The Official Committee of Unsecured Creditors of Pinnacle Brands,
Inc. and its affiliates seek to retain Greenberg Traurig as
Delaware Counsel and to substitute Greenberg Traurig for The
Bayard Firm.  Scott Cousins, attorney with the Bayard Firm is now
with Greenberg Traurig, and he has been the primary counsel to
the Committee.  Cousins' hourly rate is $275.


PREMIER LASER SYSTEMS: Amends Annual Report & Restates Financials
-----------------------------------------------------------------
As a result of inquiries made by the staff of the United States
Securities and Exchange Commission, Premier Laser Systems Inc.,
in October 1999, amended its annual report for the year ended
March 31, 1999. In so doing, the company restated its financial
statements for the years ended March 31, 1999 and 1998 to adjust
its accounting for the September 1997 acquisition of 100% of
EyeSys Technologies, Inc. and the February 1998 acquisition of
51% of Ophthalmic Imaging Systems. Further, the restatements
reflected reclassifications to eliminate the original separate
reporting of the March 31, 1999 cessation of Data.Site LLC's
operations as "discontinued operations" in the consolidated
statements. The consolidated financial statements as of June 30,
1999 and for the three-month periods ended June 30, 1999 and 1998
have been revised from those originally presented for the
cumulative and corresponding effects of the restatements made in
the consolidated financial statements for the years ended March
31, 1999 and 1998.

Premier's consolidated net sales for the quarter ended June 30,
1999 increased by 5% to $3,658,332 from $3,481,336 for the
quarter ended June 30, 1998 The net sales increase is a result of
increased sales of dental laser and EyeSys diagnostic products.  
The company's international sales represented 12% of total sales
in the 1999 quarter.

Premier reported a net loss of $2,095,868 in the 1999 quarter,
down from a net loss of $5,102,217 in the 1998 quarter.


RAND ENERGY: Objections To Plan of Reorganization
-------------------------------------------------
Bank One, Texas, NA filed an objection to the joint plan of
reorganization for Rand Energy Company and the official committee
of creditors.  Bank One is the debtor's primary secured creditor.  
This objection is filed as a precautionary matter in the event
Bank One is unable to satisfactorily resolve its objections prior
to the confirmation hearing on the plan.  

The plan currently is, according to the Bank, devoid of any
specifics relating to the implementation of the proposed
treatment including full recourse to all collateral and
collateral proceeds, the timing and mechanics of the delivery of
the remaining collateral and/or collateral proceeds, the
retention of Bank One liens and the segregation of collateral
proceeds pending the turnover to Bank One or an accounting by the
debtor in favor of Bank One of its collateral and collateral
proceeds.  Bank One also objects to the plan to the extent it
seeks to limit Bank One's subordination rights against Petroleum
Credit Corporation or Bank One's right to assert an
administrative priority claim for failure of adequate protection.


SA TELECOMMUNICATIONS: Taps Greenberg Traurig
---------------------------------------------
The debtors, SA Telecommunications Inc. and its affiliates tap
Greenberg Traurig nunc pro tunc to September 20, 1999 as Delaware
counsel for the debtors, substituting for The Bayard Firm.  Scott
Cousins, attorney with The Bayard Firm has switched firms To
Greenberg Traurig, and he was the attorney most involved in this
case.  Cousins' hourly rate is $275.


STERLING CHEMICAL: Exchange Offer To Expire November 5
------------------------------------------------------
Sterling Chemical Inc. has offered to exchange $1,000 principal
amount of 12 3/8% Senior Secured Notes due 2006, Series B for
each $1,000 principal amount of existing 12 3/8% Senior Secured
Notes due 2006, Series A ($295,000,000 principal amount
outstanding)

The exchange offer will expire at 5:00 p.m., New York City time,
November 5, 1999, unless extended.  The exchange offer is not
conditioned upon a minimum aggregate principal amount of existing
notes being tendered.  All existing notes tendered according to
the procedures in the company's prospectus and not withdrawn will
be exchanged.

The exchange offer is not subject to any condition other than
that it not violate applicable laws or any applicable
interpretation of the staff of the SEC or conflict with any
threatened judicial or administrative proceeding.

The terms of the exchange notes to be issued in the exchange
offer are substantially identical to the existing notes, except
that Sterling Chemical has registered the exchange notes with the
SEC. In addition, the exchange notes will not be subject to the
transfer restrictions the existing notes are subject to, and
provisions relating to the payment of liquidated damages will be
eliminated.

The exchange notes will be senior secured obligations of Sterling
Chemicals, Inc. They are equal in right of payment with the
company's senior debt and senior to its subordinated debt. They
are subordinated, however, to the extent of the collateral
securing Sterling's secured revolving credit facilities. As of
August 31, 1999, the company had approximately $50 million
outstanding under those facilities.

The exchange notes will bear interest at the rate of 12 3/8% per
year, payable semi-annually in arrears on each January 15 and
July 15, beginning January 15, 2000 and will be fully and
unconditionally guaranteed on a joint and several basis by the
company's current U.S. subsidiaries, excluding the U.S.
subsidiary that indirectly owns the Saskatoon facility.


SUN HEALTHCARE: Analysts Comment On Agreement
---------------------------------------------
Sun Healthcare Group Inc., Albuquerque, N.M., announced that it
has reached an agreement in principle with representatives of its
bank lenders and holders of about two-thirds of its outstanding
subordinated bonds on the terms of an overall restructuring.
Analysts have pointed out that according to Sun's releases on the
agreement, senior creditors have agreed that there will not be
enough money to make any payments to lesser creditors, who hold
$400 million in subordinated bonds, according to a newswire
report. The agreement does not mention how real estate investment
trust (REIT) companies that lease nursing homes to Sun companies
will be affected by the proposed agreement, which is subject to
approval by the bankruptcy court and the creditors' committee.
The nursing home operator filed for chapter 11 protection earlier
this month in the District of Delaware. (ABI 28-Oct-99)


SUN HEALTHCARE: Implementation of the Agreement
----------------------------------------------
Sun Healthcare Group, Inc.'s agreement with representatives of
its bank lenders and holders of approximately two-thirds of its
outstanding senior subordinated bonds is part of an overall
restructuring of Sun's capital structure. The bank and senior
bond debt represents more than $1.3 billion of Sun's capital
structure.

Implementation of the agreement in principal is subject to
appropriate documentation, including a chapter 11 plan of
reorganization, and approval by the bankruptcy court, among other
things. If approved, the agreement in principal would provide
Sun's bank lenders with cash, new senior long-term debt, new
preferred stock and new common stock. Sun's senior subordinated
bondholders would receive new common stock. It would also provide
new long-term debt, new preferred stock and new common stock to
general unsecured creditors, and reinstate a significant portion
of Sun's secured debt. The agreement in principal provides no
recoveries for the holders of Sun's outstanding convertible
subordinated debt, convertible trust issued preferred securities,
or common stock.

                        *   *   *

Under cover of a Form 8-K filed with the Securities and Exchange
Commission, the Debtors make a copy of the Term Sheet available
to the public.  A full-text copy of that regulatory filing is
posted at:

   http://www.sec.gov/Archives/edgar/data/904978/0000904978-99-
000058.txt

The Term Sheet outlines a restructuring premised on a substantial
deleveraging of the Company's balance sheet.  Old equity
interests are canceled; old unsecured debts are partially
satisfied by issuance and distribution new debt and equity
interests in Reorganized Sun.  The Term Sheet does not provide
any insight into estimates of the Debtors' Total Enterprise
Value.  

The Term Sheet, by its explicit terms, is not binding on any
party and cannot be introduced as evidence in any judicial
proceeding.  The introductory paragraph specifically states:

This term sheet is prepared for the purpose of facilitating
discussion of a possible restructuring of Sun Healthcare Group,
Inc. and its domestic subsidiaries.  The term sheet sets forth
certain major terms of a possible restructuring, but additional
terms and conditions, material to the transaction, are not set
forth herein.  Nothing contained herein shall in part or in whole
constitute an offer susceptible of acceptance of a legally
binding obligation.  This term sheet is being provided in
furtherance of settlement discussions, and is entitled to the
protection from use or disclosure afforded by Federal Rule of
Evidence 408 and any similar applicable rule of evidence.

The Debtors propose to roll-over $56,100,000 owed to their DIP
Lenders into a new $200,000,000 Revolving Credit Facility.  That
new $200,000,000 Revolver will provide post-emergence financing
for Reorganized Sun's day-to-day working capital needs.  The
Debtors propose to reinstate approximately $115,800,000 of debt
owed to their Secured Lenders.  

The Term Sheet outlines the distribution of:

     * $81,000,000 in Cash;

     * $150,000,000 of Term A Senior Notes to be secured by
equity
       interests in Sun's subsidiaries and repaid over a 7-year
period;

     * $220,000,000 of Term B Senior Notes also secured by equity
       interests in Sun's subsidiaries and repaid -- after the
Term A Loan
       -- over a 7-year period;

     * 90,000,000 shares of New Preferred Stock; and

     * 10,000,000 shares of New Common Stock;

to unsecured creditors to compromise and settle $1,525,000,000 of
unsecured
claims:

The Senior Lenders will emerge from the chapter 11 process owning
the bulk of the Company.

Holders of non-bondholder unsecured claims will recover no more
than 25% of their claims and are presented with a choice of:

     (A) receiving a Cash payment equal to the lesser of:

         (1) 25% of their Allowed Claim; or

         (2) their pro-rata share of a $10,000,000 pot;

         PROVIDED, HOWEVER, that the electing vendor agree to
supply Reorganized Sun with ordinary trade credit for at least
one year or, an electing landlord agree to satisfactory rent
concessions;

         or

     (B) a pro-rata share of the basket of Term A Notes, Term B
Notes, Preferred Shares and Common Shares earmarked for Unsecured
Non-Bondholder Creditors.  

Holders of the Convertible Subordinated Debt take nothing under
the plan proposal.  Enforcement of the subordination agreement
applicable to those bonds requires delivery of any recovery to
senior creditors.

At the lowest levels of the Debtors' capital structure, the Term
Sheet provides for no recovery by the holders of TIPES and equity
security holders.  The Term Sheet is, therefore, premised on the
assumption that Sun's Total Enterprise Value is insufficient to
distribute value this low in the capital structure.  Entry of an
order by the bankruptcy court confirming a plan of reorganization
following the Term Sheet will, accordingly, serve to cancel all
TIPES and existing shares of stock in Sun.

Because the Term Sheet is predicated on estimates of claims
against the Debtors' estates, the Term Sheet contemplates
deployment of a variety of mechanisms to level and recalibrate
recoveries in the event that estimated claims differ from actual
claims allowed in the chapter 11 process.  

Reorganized Sun will be governed by a 9-member Board of
Directors.  The Senior Lenders will select 5 Directors; the
Senior Subordinated Noteholders will select 3 Directors; and the
CEO will serve as a Director.  Any significant event requiring
approval of the Board through October 1, 2003, will require the
affirmative vote of 6 board members, two of which votes must come
from the 3 Directors nominated by the Senior Subordinated
Noteholders.  The Board will have the authority to grant stock
options to Reorganized Sun's management.

Implementation of a plan following the Term Sheet is contingent
upon, among other things, a "mutually acceptable agreement with
federal government and relevant state governments concerning any
possible overcharge claims related to all pre-petition periods."
(Sun Healthcare Bankruptcy News Issue 4; Bankruptcy Creditor's
Service Inc.)


VENCOR: Seeks Sale of Properties
--------------------------------
The Debtors acquired a six-acre parcel of land located on Oracle
Road in Tucson, Arizona, in 1997 for $744,000 with the intention
of constructing an acute care facility.  The financial
projections didn't justify continued construction after Medicare
reimbursement rules changed.  Accordingly, the Debtors abandoned
their plan and put the property up for sale.  

Arizona Glassworks, Inc., offers to purchase the Property for
$750,000 in cash under the terms of a Purchase and Sale Agreement
dated June 11, 1999.  The Debtors are convinced that this is the
highest and best offer for the Property.  

Accordingly, pursuant to 11 U.S.C. Sec. 365(a), the Debtors ask
Judge Walrath for permission to assume the Offer to Purchase and,
pursuant to 11 U.S.C. Sec. 363(b)(1), for permission to sell the
property to Arizona Glassworks.  The Debtors anticipate that the
Closing will occur before November 30, 1999.  Additionally, the
Debtors ask for authority to pay a 3% or 6% commission to their
broker, Grubb and Ellis.


The debtors are also seeking court approvla of a sale ofland in
Grapevine Texas for $815,000.  The Debtors acquired a 4.835 acre
parcel of land located in Grapevine, Texas, in 1997 for $747,000
with the intention of constructing an acute care facility.  The
financial projections didn't justify continued construction after
Medicare reimbursement rules changed.  Accordingly, the Debtors
abandoned their plan and put the property up for sale.  

Richard M. Cronin, Trustee, offers to purchase the Property for
$815,000 in cash under the terms of a Contract of Sale dated
April 22, 1999.  The Debtors are convinced that this is the
highest and best offer for the Property.  

Accordingly, pursuant to 11 U.S.C. Sec. 365(a), the Debtors ask
Judge Walrath for permission to assume the Contract of Sale and,
pursuant to 11 U.S.C. Sec. 363(b)(1), for permission to sell the
property to Mr. Cronin.  (Vencor Bankruptcy News Issue 5;
Bankruptcy Creditor's Service, Inc.)


WTD INDUSTRIES: Reports Quarterly Net Income of $67.28M
-------------------------------------------------------
On September 27, 1999, WTD Industries and certain of its wholly-
owned subsidiaries, filed for voluntary reorganization under
Chapter 11 of the U.S. Bankruptcy Code. The company plans to
continue to operate its business as a debtor-in-possession.

According to the company, poor market conditions in fiscal 1999,
acceleration in industry modernization; and a balance sheet
encumbered with a high level of debt and preferred stock dividend
obligations all caused the company to file for voluntary
reorganization. It is likely that the reorganization that results
from the Chapter 11 will have a material adverse effect on the
company's common and preferred shareholders, and may eliminate
any remaining value in the company's equity securities.

Due to the filing for protection under chapter 11 of the U.S.
Bankruptcy Code, there exists substantial doubt about the
company's ability to continue as a going concern.

Despite the concern, net sales for the three months ended July
31, 1999 increased $19.6 million (41%) to $67,288, as compared to
the three months ended July 31, 1998 when net sales were $47,661.
This increase was principally caused by a 23% increase in lumber
sales volume and an 18% increase in the weighted average net
sales price.  The company had a net income in the 1999 quarter of
$6,347 compared to a net loss of $574 in the comparable quarter
of 1998.


BOND PRICING FOR WEEK OF October 25, 1999
=========================================
DLS Capital Partners, Inc., bond pricing for week of October 25,
1999

Following are indicated prices for selected issues:

Acme Metal 10 7/8 '07                      18 - 20 (f)
Amer Pad & Paper 13 '05                    15 - 18
Asia Pulp 7 Paper 11 3/4 '05               74 - 76
E & S Holdings 10 3/8 '06                  38 - 42
Fruit of the Loom 8 7/8 '06                27 - 31
Geneva Steel 11 1/4 '01                    19 - 20 (f)
Globalstar 11 1/4 '04                      52 - 54
Hechinger 9.45 '12                         11 - 13 (f)
Integrated Health 9 1/2 '07                10 - 13 (f)
Iridium 14 '05                              6 - 8 (f)
Just for Feet 11 '09                       10 - 15 (f)
Loewen 7.20 '03                            47 - 49 (f)
Pillowtex 10 '06                           37 - 39
Planet Hollywood 12 '05                    28 - 30 (f)
Purina Mills 9 '10                         21 - 25 (f)
Revlon 0 '01                               23 - 24
Service Merchandise 9 '04                  15 - 16 (f)
Sunbeam 0 '18                              15 - 16
TWA 11 3/8 '06                             43 - 45
United Artists 9 3/4 '08                   20 - 24
Vencor 9 7/8 '05                           20 - 22 (f)
Zenith 6 1/4 '11                           17 - 20 (f)

  
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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter, co- published by
Bankruptcy Creditors' Service, Inc., Princeton, NJ, and Beard
Group, Inc., Washington, DC. Debra Brennan, Yvonne L. Metzler,
Editors.  Copyright 1999. All rights reserved. ISSN 1520-9474.

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