TCR_Public/991229.MBX    T R O U B L E D   C O M P A N Y   R E P O R T E R
     Wednesday, December 29, 1999, Vol. 3, No. 251

ANKER COAL GROUP: Receives Permit for Mining Operation
ARM FINANCIAL: Reports Filing Bankruptcy To SEC
ARM FINANCIAL: Signs Definitive Agreement For Sale
BOYDS WHEELS: Changing Accountants
CARMODY INC: Case Summary & 20 Largest Unsecured Creditors

CODA ACQUISITION: Seeks To Reject Leases
CROWN PAPER: Successfully Amends Financial Requirements
DAILEY: Motion For Final Decree Effective December 31, 1999
DANKA BUSINESS SYSTEMS: Completes $218 Million In Investments
EAGLE GEOPHYSICAL: Shareholders Object To Sale

EAGLE GEOPHYSICAL: Shareholders Seek Committee
EVANS,INC: Seeks Rejection of Unexpired Leases
FIRSTPLUS FINANCIAL: Beal Bank's Objection To Compromise
FORCENERGY: Orders Authorize Sale and Assignments
FORSTMANN & CO: Sells Wool Mfg Business To Victor Forstmann

FOSTER WHEELER: Three Units File Chapter 11 Petitions
GRAHAM-FIELD: To Voluntarily Reorganize Under Chapter 11
JUMBOSPORTS: To Assume and Assign Leases to Sports Authority
KCS ENERGY: Reaches Restructuring Agreement with Noteholders

LENOX HEALTHCARE: Order Authorizes Use Of NHC Cash Collateral
LENOX HEALTHCARE: Pursues Rejection of Leases
LOIS USA: Seeks Order To Pay Retention Bonuses
LONG ISLAND: Case Summary & 11 Largest Unsecured Creditors
MOBILE ENERGY SERVICES: Third Motion For Use of Cash Collateral

NEWCOR: EXX Inc Purchase Additional Shares
PLANET HOLLYWOOD: Assumption of Travelers Insurance Agreement
PLANET HOLLYWOOD: Seeks Approval of Agreement
WASTEMASTERS INC: Rescinds Agreement with Continental Investment


ANKER COAL GROUP: Receives Permit for Mining Operation
Anker Coal Group, Inc. announces that the West Virginia Division
of Environmental Protection issued the long-awaited permit for
Anker's surface mining operation in Grant County, West Virginia.
Anker was forced to idle this surface mine when it had mined all
of its then permitted reserves and was unable to get a new permit
for its adjacent coal properties. Since that time, Anker has been
working with the Division of Environmental Protection to secure
the new permit. Bill Kilgore, Chairman and CEO of Anker, said
that "the issuance of this permit is a significant event for
Anker and an important element in the company's turnaround." Mr.
Kilgore added that "with the new permit, we plan to resume
operations at the surface mine as soon as possible and expect to
begin coal production by April 2000."

ARM FINANCIAL: Reports Filing Bankruptcy To SEC
On December 20, 1999 ARM Financial Group Inc. filed a voluntary
petition for bankruptcy or receivership protection under Chapter
11 of the U.S. Bankruptcy Code.  The action was filed in the  
United States Bankruptcy Court for the District of Delaware, case
No.: 99-4430.  The company is acting as debtor in possession.  

ARM FINANCIAL: Signs Definitive Agreement For Sale
ARM Financial Group, Inc. has signed a definitive agreement
whereby Western and Southern Life Insurance Company will acquire
the company's insurance subsidiaries, Integrity Life Insurance
Company and National Integrity Life Insurance Company.

Western and Southern is part of the Western-Southern Enterprise,
a financial services group which also includes Western-Southern
Life Assurance Company, Columbus Life Insurance Company,
Touchstone Advisors, Fort Washington Investment Advisors, Todd
Investment Advisors, Countrywide Financial Services, Capital
Analysts and Eagle Realty Group. Assets owned or under management
by the group exceed $20 billion. Upon completion of this
transaction, such assets will total $25 billion. Western and
Southern is rated A++ (Superior) by A.M. Best, AAA
(Highest) by Duff & Phelps, AAA (Extremely Strong) by Standard &
Poor's, and Aa2 (Excellent) by Moody's.

The acquisition by Western and Southern will be implemented in a
chapter 11 case to be commenced by ARM under the Bankruptcy Code,
subject to the approval of the Bankruptcy Court. Under the terms
of the agreement, the purchase price of approximately $119
million, which is subject to a number of downward price
adjustments, will be placed in an escrow account for a
period of eighteen months or longer before any remaining proceeds
would be distributed. In connection with the Western and Southern
transaction, ARM has also entered into settlement agreements with
certain institutional creditors of ARM and Integrity whereby,
among other things, certain obligations and contingent
liabilities of ARM and its subsidiaries would be extended,
released or compromised, subject to the closing of the
transaction with Western and Southern. To the extent
that there are funds remaining in escrow after any downward
purchase price adjustments, certain payments will be made to
institutional creditors for a portion of the obligations that
were extended, released or compromised. There can be no assurance
that the net proceeds from the sale (after taking into account
the purchase price adjustments and the escrow provisions
relating to the institutional settlement agreements) will be
sufficient to satisfy the claims of the company's creditors or
enable a distribution to shareholders.

"We are pleased that we have reached an agreement with Western
and Southern, one of the highest rated companies in the industry
today," said John R. Lindholm, president - Integrity Life
Insurance Company. "This transaction provides enhanced value for
Integrity and National Integrity policyholders. After the
closing, we would anticipate a dramatic improvement in our credit
ratings. We are particularly grateful to our distributors and
policyholders who have remained loyal and patient
throughout this process. Ohio Insurance Director Lee Covington
and his staff have been invaluable in facilitating this sale.
Likewise, New York Superintendent of Insurance Neil Levin and his
staff have been tremendously supportive throughout this process."

The closing of the transaction is subject to the approval of the
Ohio Department of Insurance, the New York Department of
Insurance, and the Bankruptcy Court, as well as to other
customary conditions to closing. The transaction is expected to
close late in the first quarter or early in the second quarter of
2000; however, there can be no assurance as to obtaining
the required approvals or the timing of the closing of the

BOYDS WHEELS: Changing Accountants
Prior to the closing of Boyds Wheels Inc.'s bankruptcy filing,
the company's independent accountant was Squar, Milner & Reehl
LLP.  In April 1999, in accord with the bankruptcy plan, the
company issued new common stock to Automotive Performance Group,
Inc. such that Automotive Performance held 80% of the company's
common stock.

Subsequent to Automotive Performance Group's assuming control of
Boyds Wheels, the former accountant was dismissed on December 17,
1999.  This action was taken as part of Automotive's plan to
consolidate all audits of it and its subsidiaries under one
independent accountant.  The purpose of this action was said to
be to increase efficiency of the audits.

The decision to change accountants was recommended and approved
by the board of directors and was made in accordance with the
routine operating procedures of Automotive.  On December 17,
1999, Grant Thornton LLP was engaged by Boyds Wheels as its new
principal independent accountant to audit its financial

CARMODY INC: Case Summary & 20 Largest Unsecured Creditors
Debtor: Carmody, Inc.
        220 Ferris Avenue
        White Plains, NY 10603
Petition Date: December 14, 1999            
Chapter: 11
Court: Souther District of New York          
Judge: Adlai S. Hardin Jr.

Debtor's Counsel:
David B. Shaev, Esq.
350 Fifth Avenue Suite 1700
New York, NY 10118
Total Assets: $ 2,744,862.95
Total Debts: $ 791,562.60

List of Creditors Holding 20 Largest Unsecured Claims:

Wilson Management Associates, Inc.  $48,497.97
Pirrotti & Pirrotti $5,849.66
Byram Concrete & Supply Co. Inc.  $65,685.09
NYS Dept. of Labor $50,000.00
Internal Revenue Service (US Dept. of Justice)$296.01
A & R Concrete $11,867.00
State Insurance Fund $207,115.00
Labor Ready  $ 3,207.05
Internal Revenue Service (US Dept. of Justice)  $158,060.52
NYS Dept. of Taxation & Finance  $43,672.96
Internal Revenue Service (US Dept. of Justice) $54,369.61
Internal Revenue Service (US Dept. of Justice) $4,139.04
Internal Revenue Service (US Dept. of Justice) $34,377.27
NYS Dept. of Taxation & Finance $27,936.00
Mason Tenders District Counsel  $23,632.92
NYS Dept. of Taxation & Finance $15,918.13
NYS Dept. of Taxation & Finance $8,709.70
Internal Revenue Service $ 9,988.90
Internal Revenue Service $ 4,999.99
Nationwide Cellular  $ 3,838.00

CODA ACQUISITION: Seeks To Reject Leases
By order of The US Bankruptcy Court, Southern District of New
York, Coda Acquisition Group, Ltd. is authorized to reject 23
leases.  The leases cover properties in California, Indiana,
Florida, Illinois, Louisiana, Massachusetts, Texas, New York,
Hawaii, and Michigan.

CROWN PAPER: Successfully Amends Financial Requirements
Crown Vantage Inc. reports that, in working with the company's
senior secured lenders, it has successfully amended three
financial covenant requirements for the fourth quarter of 1999.  
The amendments restored compliance with the tangible net worth
requirement and facilitated compliance with two other financial
covenant ratios at the end of the fiscal fourth quarter.  The
company's third quarter financials filed on November 11, 1999,
reported that Crown Paper Co. (a wholly-owned subsidiary) no
longer complied with the tangible net worth requirement contained
in its senior secured debt indentures.  It also reported that it
did not anticipate complying with the quarterly cash flow-to-debt
and interest coverage ratios under those indentures at the end of
the fourth quarter 1999.

In the same quarterly report, Crown Vantage noted that Crown
Paper Co. would not comply with fiscal 2000 financial covenants
as extended weakness in the paper markets prevented it from
achieving the original financial covenants established at the
peak of the paper market cycle in 1995. Appropriate modification
to the covenants in the loan agreement for fiscal 2000 will be
addressed in the first quarter with senior secured lenders.

Crown Vantage is a world manufacturer of value-added papers for
printing, publishing and specialty packaging.  With nine mills
internationally, the company has capacity to manufacture more
than 750,000 tons of specialty papers per year.  The company's
diverse products are tailored for the special needs of target
markets.  End users include specialty magazines and catalogs,
financial printing and corporate communications, packaging and
product labels, coffee filters and disposable medical garments,

DAILEY: Motion For Final Decree Effective December 31, 1999
Dailey International, Inc. and its affiliates filed a motion for
final decree effective December 31, 1999.  A hearing on the
motion will take place on January 6, 2000.

DANKA BUSINESS SYSTEMS: Completes $218 Million In Investments
Danka Business Systems PLC announces the completion of $218
million in investments for an aggregate 218,000 new convertible
participating shares of Danka and an amendment to the company's
Credit Agreement providing financing through March 31, 2002.

Equity funds managed by affiliates of The Cypress Group LLC
invested $200 million in 200,000 new convertible participating
shares of Danka.  Under the terms of the agreement with Cypress,
Danka has expanded its Board of Directors from nine to eleven
members, and, with effect from December 17, 1999, James L.
Singleton and Anthony D. Tutrone have been appointed to the board
of Danka as non-executive directors. Both Mr. Singleton and Mr.
Tutrone are executives of Cypress.

"We are pleased with Cypress' commitment to Danka's future and
look forward to Jamie's and Tony's contributions as new members
of our Board," commented Larry K. Switzer, Chief Executive
Officer of Danka.

In addition, The Prudential Assurance Company Limited, a
subsidiary of Prudential Corporation plc, invested $18 million
for an additional 18,000 new shares of the same issue. "The
investments by Cypress and Prudential are a substantial vote of
confidence in Danka and will be instrumental in our future
growth," continued Switzer.

The net proceeds to Danka for the share subscription by Cypress
and Prudential total approximately $204.6 million, after
deducting estimated transaction expenses. Eighty-five percent
(85%) of the net proceeds, or approximately $174 million, of the
share subscription has been used to make a required repayment of
Danka's existing bank indebtedness and the remainder will be used
for general corporate purposes.

The new participating shares are entitled to dividends equal to
the greater of 6.5% per annum and ordinary share dividends on an
as converted basis. Dividends will be paid in the form of
additional participating shares for the first five years. The
participating shares are convertible into ordinary shares at a
conversion price of $3.125 per ordinary share (equal to $12.50
per ADS), subject to adjustment in certain circumstances to avoid
dilution of the interests of participating shareholders. The new
participating shares (218,000) have voting rights initially
corresponding to approximately 23% of the total voting power of
Danka's capital stock. The terms of the participating shares
issued to Cypress and Prudential are set out in full in the
articles of association of Danka, which were adopted at the
extraordinary general meeting of its shareholders on December 17,
1999. Details of the terms of the shares are also included in the
circular sent to Danka's shareholders and the proxy sent to
Danka's U.S. shareholders and American Depositary shareholders on
November 24, 1999.

Upon the closing of the Cypress investment and receipt by the
bank lenders of he required payment from the net proceeds
received, Danka and its bank lenders entered into an amendment to
its Credit Agreement with effect from December 1, 1999. While
Danka plans to refinance its principal bank indebtedness during
the first quarter of calendar 2000, the amendment provides Danka
with a commitment of approximately $750 million through March 31,
2002. Mr. Switzer continued, "We are delighted with the
confidence and continued support our bank lenders have provided
to us and are pleased to have their financing commitment to the
company into 2002. With this amendment, we are in a stronger
position to evaluate all our refinancing options."

The amendment also amends, among other things, the minimum net
worth covenant and removes any obligation of Danka to use its
best efforts to sell Danka Services International, Danka's
document outsourcing division. The amendment also provides that
the $10 million payment which would have been due upon such sale
became due upon the completion of the issue of the participating
shares to Cypress, which payment has now been made.

As a result of the reduction in the company's outstanding
indebtedness, the payment due under the Credit Agreement on
December 31, 1999 has been reduced from approximately $4.7
million to approximately $3.8 million. In addition, if the bank
indebtedness remains outstanding at March 31, 2000, the payment
due on that date has been reduced from approximately $9.3 million
to approximately $7.5 million.

Danka, headquartered in London, England, and St. Petersburg,
Florida, is one of the world's largest independent suppliers of
office imaging equipment, supplies and services. Danka provides
office products and services globally in 30 countries around the
world. Danka's ordinary shares are listed on the London Stock
Exchange and its ADSs are listed on NASDAQ.

Cypress is a private equity firm which currently manages more
than $3.5 billion of equity capital on behalf of major public and
private pension funds, university endowments, trusts and other
leading financial institutions. Cypress seeks to invest alongside
experienced executives in growth businesses to achieve long term
capital appreciation. The Cypress professionals have employed
this strategy in numerous other investments such as Infinity
Broadcasting Corporation, Lear Corporation, R.P. Scherer
Corporation, Cinemark USA, Inc., Williams Scotsman, Inc., Frank's
Nursery & Crafts, Inc., WESCO International, Inc. and ClubCorp,

EAGLE GEOPHYSICAL: Shareholders Object To Sale
The shareholders of Eagle Geophysical, Inc., et al. believe that
the consideration of $44 million offered for the assets in the
debtors' motion is inadequate and does not represent an arms
length transaction, and that approval of debtors' motion would
severely impair the value of Eagle's other assets.  Specifically,
they claim that the offer does not take into consideration the
value of the combined with the included seismic equipment, as
well as software licenses, goodwill and contracts for the vessel.  
In addition, the proposed interest rate of 3% does not represent
a rate typical of an arms length transaction.

EAGLE GEOPHYSICAL: Shareholders Seek Committee
The shareholders of Eagle Geophysical, Inc., et al. ask that a
shareholders committee be formed to pursue inter alia the
following actions:

That a Trustee be appointed and that officers/directors of Eagle
be forbidden from taking further actions damaging to the
interests of creditors and shareholders of the company, and that
contracts held by the company be executed by the company in order
to produce income and value.

That a full and impartial audit of the companies records be
conducted immediately.

That an investigation of all present and past directors and
officers of the company be conducted to determine if sufficient
cause exists to bring formal criminal charges against them.

That an unbiased appraisal of the company's assets, both tangible
and intangible be made to determine the fair market value of the

That once a fair market value for the company has been
established, an exhaustive attempt be made to find an acquisition
or merger partner for the company.  

EVANS,INC: Seeks Rejection of Unexpired Leases
The debtors, Evans, Inc., et al. seek authority to reject up to
six of its unexpired leases as of December 31, 1999.  Three
leases, currently vacant are in Illinois at Yorktown Square
Shopping Center, in Lombard, Illinois; Orland Square Shopping
Center in Orland Park, Illinois; and Harlem & Irving Plaza
Shopping Center in Norridge, Illinois.  The other three leases
that the debtors seek authority to reject as of December 31, 1999
relate to a small retail store at Evergreen Plaza in Evergreen
Park, Illinois, a retail location in Washington, DC and an office
lease in New York City.  The time to assume or reject the leases
expires on February 29, 2000.

The debtors also seek authority to reject four unexpired leases
as of February 29, 2000. The relate to retail stores located in
Evergreen Plaza Shopping Center in Evergreen Park, Illinois, Ford
City Shopping Center in Chicago, Illinois, River Oaks Center in
Calumet City, Illinois and North Riverside Shopping Center in
North Riverside, Illinois.

FIRSTPLUS FINANCIAL: Beal Bank's Objection To Compromise
Beal Bank, SSB files an objection to the motion to approve a
compromise of controversy with Western Interstate Bancorp,
FirstPlus Financial Group, Inc., and related entities, which was
filed with the court on November 17, 1999.  

The compromise proposed gives the debtor the right to market and
sell the stock of WIB, the stock of FirstPlus Bank, and the
Servicing Business in order to generate cash to repay the WIB
Note.  Beal Bank has a first priority lien and security interest
in all of these assets and a Right of First Refusal on any
proposed sale.  The motion, according to Beal Bank, makes no
provision for the treatment of Beal Bank's security interest, and
also fails to recognize Beal Bank's rights under the Right of
First Refusal Agreement.  If the debtor is given the authority to
market and sell, the WIB stock, the FirstPlus Bank stock and the
Servicing Business, Beal Bank states that it will affect its
rights under the Right of First Refusal Agreement, despite the
fact that these assets are not property of the debtor's
bankruptcy estate.

Beal Bank proposes financing allowing for a loan amount up to $20
million without granting the releases sought by Security Lending
Group, LLC, the debtors' proposed lender.

FORCENERGY: Orders Authorize Sale and Assignments
The US Bankruptcy Court for the Eastern District of Louisiana
entered an order authorizing sales and assignments of certain oil
and gas interests and related contracts to Linder Energy Company
and Louisiana General Oil Company and assumption of contracts.

By separate order the court authorized the sale and assignment of
certain oil and gas interests and related contracts to CNG
Producing Company.

FORSTMANN & CO: Sells Wool Mfg Business To Victor Forstmann
On November 5, 1999, Forstmann & Co. sold its wool manufacturing
business and related assets, including its manufacturing plant in
Dublin, Georgia, and all of its inventories and accounts
receivable, to Victor Forstmann, Inc., an affiliate of Victor
Woolens. Certain other assets, including plants and equipment
located in Louisville and Milledgeville, Georgia, were not sold
and the company intends to sell such assets as promptly as is
possible in one or more liquidation sales.

This transaction was in compliance to an order of the United
States Bankruptcy Court for the Southern District of New York,
which approved the sale on November 4, 1999, following an auction
conducted under the Court's auspices on November 3, 1999. The
company filed a voluntary petition of reorganization under
Chapter 11 of the United States Bankruptcy Code in July 1999. The
purchase price paid by Victor Forstmann, Inc. was $13.6
million (subject to adjustment), all of which was paid by the
company to the its secured creditors as required in the
bankruptcy proceeding.

The liquidation of Forstmann & Co.'s remaining assets is expected
to take several months and will be under the direction of Rodney
J. Peckham, President and Chief Executive Officer of the company.
In connection with this transaction, the company changed its name
to FSMN Liquidation Corp. from Forstmann & Company, Inc.

FOSTER WHEELER: Three Units File Chapter 11 Petitions
Three Foster Wheeler Corp. subsidiaries have filed for
Chapter 11 protection in the U.S. Bankruptcy Court in Delaware.

Foster Wheeler has agreed to a restructuring of debt for RRRP
Robbins Inc., Robbins Resource Recovery Partners LP and RRRP
Illinois Inc. with the Franklin High Yield Tax-Free Income Fund
and with CIBC World Markets Corp.

The Robbins Resource Recovery Facility is owned by the village of
Robbins, Ill., and is operated under a long-term lease by Robbins
Resource Recovery Partners L.P.

In October, the company announced it had signed a definitive
restructuring agreement with 80 percent of the bondholders and
had agreed, as its remaining financial obligation, to be
responsible for $113 million of the new tax-exempt bonds.

The company also said it would file a prepackaged bankruptcy plan
and sell the incinerator.

Pending the sale of the company, Foster Wheeler said it will
operate the facility for up to two years with no operational
guarantees and full cost reimbursement.

"We forged this exit strategy in order to protect our
shareholders from further financial losses related to this
project. Our exit from involvement in the Robbins waste-to-energy
facility, which has significantly impacted our earnings for the
last two years, is an essential part of our overall plan to
financially strengthen the corporation," Foster Wheeler CEO
Richard J. Swift said in October.

Swift blamed project losses on the repeal of the Illinois Retail
Rate Law in 1996. Under the original law, Robbins could have sold
electricity to utilities at the same rate that utilities charge
their customers. State officials changed the law to include only
facilities that generate electricity from landfill-produced
methane gas.

The company could not generate enough revenue to cover operating
costs after the law was repealed, Swift had said.

Analysts agreed that the plant would be making money if the
retail law had not been changed.

Foster Wheeler spokeswoman Rita Kraeber said the Chapter 11
filing follows in line with the plans announced in October, but
would not comment further.

The company said it expected to file a reorganization plan Dec.1
and sought court orders allowing its units to continue normal
operations while they reorganize.

Globalstar Telecommunications Limited has entered into an
agreement to sell $150 million of 9% Convertible Preferred Stock
due 2011 in an offering exempt rom registration. The Preferred
Stock will be convertible into shares of common stock at a
conversion price of $25.9569 per share.

Globalstar Telecommunications Limited will apply the proceeds to
purchase Convertible Preferred Partnership Interests in
Globalstar, L.P. Globalstar L.P., in turn, will use the proceeds
from the sale of the Convertible Preferred Partnership Interests
for continued deployment of the Globalstar mobile satellite-based
telephone system and for general corporate purposes.

The Preferred Stock will be offered only to qualified
institutional buyers and to certain accredited institutional
investors. The Preferred Stock has not been registered with the
Securities & Exchange Commission and may not be offered or sold
in the United States absent registration or an applicable
exemption from registration requirements.

GRAHAM-FIELD: To Voluntarily Reorganize Under Chapter 11
Graham-Field Health Products, Inc. (OTC Bulletin Board: GFIH),
announced that the Company and certain of its subsidiaries filed
voluntary petitions under Chapter 11 of the United States
Bankruptcy Code in the District of Delaware.  Prism Enterprises,
a Graham-Field subsidiary in San Antonio, Texas, did not file a
petition for bankruptcy.

The Company also announced that, as a result of the filings, it
has been able to secure a commitment for a Debtor-in-Possession
(DIP) credit facility for up to $38.75 million.  The financial
institutions providing the credit facility include IBJ Whitehall
Business Credit Corporation, Deutsche Financial Services
Corporation, PNC Bank, NA and National City Commercial Finance,
Inc. The DIP facility, which is expected to receive preliminary
court approval tomorrow, will provide the Company with the
liquidity to pay its suppliers for post-petition goods and
services, and to pay employees without disruption. The Company
anticipates that the DIP facility will provide sufficient
liquidity to carry it through the completion of its debt

"We have the financing in place to continue to operate the
business," said Mr. Thomas J. Opladen, Chairman of the Graham-
Field Board of Directors. "Today's filing will have no effect on
our ability to manufacture or distribute our products.  For our
customers and suppliers, the filing will make it easier to do
business with the Company," said Mr. Opladen.

The Company also today announced the appointment of David A.
Hilton as President and Chief Executive Officer.  Mr. Hilton
specializes in start-up and turnaround enterprises.  Most
recently, he turned around J.E. Morgan Knitting Mills, the
largest manufacturer of thermal underwear in the country.

Mr. Hilton replaces John G. McGregor, who resigned.  The Company
also announced that Robert J. Gluck, its Chief Financial Officer,
resigned his position and that a search would be conducted for
his replacement.  Both Mr. McGregor and Mr. Gluck are members of
the professional management firm of Jay Alix and Associates,
which will provide a smooth management transition.

As part of the filing, the Company will request from the court
various measures to provide for the effective operation of the
Company.  These include measures to assure that the filing will
have no effect on the payment of salaries, wages and benefits to
the Company's employees.  The Company will also request approval
of a program to retain key personnel.

To assist the Company in executing its restructuring strategies,
the Company has retained the firm of Rothschild Inc. to provide
investment-banking services.

Graham-Field Health Products, Inc., headquartered in Bay Shore,
New York, manufactures, markets and distributes medical, surgical
and a wide range of other healthcare products into the home
healthcare and medical/surgical markets.

JUMBOSPORTS: To Assume and Assign Leases to Sports Authority
The debtors, JumboSports, Inc. and its debtor affiliates seek
court authority to assume and assign unexpired non residential
real property leases for its Raleigh, North Carolina and Brandon,
Florida locations to the Sports Authority. The debtor will
receive $2 million, as opposed to an earlier agreement for $2.5

KCS ENERGY: Reaches Restructuring Agreement with Noteholders
KCS Energy, Inc. (NYSE: KCS) announced today that it has reached
an agreement on a restructuring with the holders of more than
two-thirds of the Company's 8.875% Senior Subordinated Notes due
January 15, 2008 and more than a majority of its 11% Senior Notes
due January 15, 2003.  In addition, KCS announced that the
holders of its Senior Notes have agreed to certain amendments to
the governing indenture which will facilitate implementation of
the restructuring.

"We are very pleased to have such a high level of support from
our noteholders on a restructuring plan that will permit KCS to
reduce total indebtedness and obtain new financing to replace the
two existing bank credit facilities," said KCS President and
Chief Executive Officer James W. Christmas. "Our agreement also
allows us to continue to pay our trade creditors in the ordinary
course of business."

Under the terms of the agreement, current shareholders will
retain 100% of the common stock on the restructuring effective
date and employees and trade creditors will continue to be paid
in the ordinary course of business.  Senior Subordinated
Noteholders will exchange $125 million principal amount of such
notes, together with accrued interest claims, for $46.875 million
in cash and newly issued redeemable convertible preferred stock.  
KCS may redeem the preferred stock for 12 months from the
effective date of the restructuring plan as follows:

For $15.625 million if completed within 6 months of the effective

For $20.625 million if completed from 6 to 9 months of the
effective date; and

For $25.625 million if completed from 9 to 12 months of the
effective date.

If the Company does not redeem the new preferred stock, it will
be convertible into 49.9% of the outstanding common stock,
assuming full conversion of such preferred stock.

On the effective date, Senior Noteholders will receive a cash
payment for interest due as of January 15, 2000, totaling $16.5
million.  Consenting Senior Noteholders will exchange their
existing notes for new 11% Senior Notes due January 15, 2005,
which will be secured by a junior lien on the Company's
assets.  The remaining Senior Notes will be reinstated.   The
agreement also provides that KCS will receive options to
repurchase at least $50 million of its new Senior Notes at $850
per $1,000 principal amount plus accrued interest prior
to July 15, 2000.

The Company is currently negotiating the terms of a new senior
secured credit facility that will replace its two current bank
facilities.  Under the terms of the restructuring agreement, the
Company must finalize the terms of a satisfactory financing
commitment by January 15, 2000.

To effectuate the agreement, the parties have agreed KCS will
commence a case under Chapter 11 of the Bankruptcy Code by
January 18, 2000.

In addition, KCS obtained the consent of the majority of the
Senior Noteholders to amend the indenture governing the Company's
11% Senior Notes due January 15, 2003.  Among other things, the
amendment would permit KCS to replace its two existing bank
credit facilities with a new senior secured credit facility
providing up to $190.0 million of indebtedness, to reduce to 2.0-
to-1.0 the EBITDA (earnings before interest, taxes and DD&A)
coverage ratio required for the Company to incur additional
indebtedness until March 31, 2001, and to purchase its 8.875%
Senior Subordinated Notes due January 15, 2008 and to expend
up to $26.0 million to acquire or retire the newly issued
preferred stock of the Company.

KCS is an independent energy company engaged in the acquisition,
exploration, development and production of natural gas and crude
oil with operations in the Mid-Continent and Gulf Coast regions.  
The Company also purchases reserves (priority rights to future
delivery of oil and gas) through its Volumetric Production
Payments (VPP) program.  For more information on KCS
Energy, Inc., please visit the Company's web site at

To receive KCS' latest news and other corporate developments via
fax at no cost, please call 800-PRO-INFO.  Use company code KCS.  
See also

LENOX HEALTHCARE: Order Authorizes Use Of NHC Cash Collateral
The US Bankruptcy Court for the District of Delaware entered an
interim order authorizing the debtors, Lenox Healthcare, Inc., et
al., continued use of NHC/OP, LP cash collateral.  The amount of
Petition Date Collateral is deemed to be $1,649,352.

LENOX HEALTHCARE: Pursues Rejection of Leases
The debtors, Lenox Healthcare, Inc., et al., seek court approval
of the rejection of five nonresidential real property leases and
a management agreement and related agreements.  The five leases
relate to real estate including nursing home facilities, some of
which are closed.  The facilities include Blue Hills Healthcare
Center, Kansas City, Missouri; Center for Geriatric Nursing and
Rehabilitation Center, Evansville, Indiana, The Huber Restorium,
St. Petersburg, Florida; Mill Valley Healthcare Center, Mill
Valley, California; Litchford Falls Healthcare & Rehabilitation
Center, Raleigh, North Carolina.  The management agreement covers
Montvue Nursing Home, Luray, Virginia.

LOIS USA: Seeks Order To Pay Retention Bonuses
The debtors, Lois/USA, Inc. and its affiliates seek court
approval to pay Retention Bonuses to critical employees which
amount to approximately $96,000.  

LONG ISLAND: Case Summary & 11 Largest Unsecured Creditors
Debtor: Long Island City Associates, L.P.
        c/o Alan Kahn & Associates
        240 West 35th Street
        New York, NY 10001-2506
Petition Date: December 16, 1999                   
Chapter: 11
Court: Southern District of New York                
Judge: Stuart M. Bernstein

Debtor's Counsel:
Jill A. Abrams
Rattet Hollander & Pasternak, LLP
550 Mamaroneck Avenue
Suite 510
Harrison, NY 10528
Jonathan S. Pasternak
Rattet Hollander & Pasternak, LLP
550 Mamaroneck Avenue
Suite 510
Harrison, NY 10528
Total Assets: Between $ 1,000,001 to $ 10,000,000
Total Debts: Between $ 1,000,001 to $ 10,000,000

11 Largest Unsecured Creditors:

Abilene Heating Group     $ 529.34
Croker Fire Drill         $ 389.70
Dynamic Elevator          $ 2,174.30
Edmar                     $ 703.36
John Corrieri             $ 4,543.26
Karisen Contracting Corp. $ 10,000.00
Patrick O'Connell, P.E.   $ 1,000.00
Safari Pest Control       $ 80.00
Sholom & Zuckerbrot       $ 3,945.33
Regency Savings Bank      $ 3,243,345.25
Long Island City Mortgage Partners  $ 350,000.00

MOBILE ENERGY SERVICES: Third Motion For Use of Cash Collateral
The debtors, Mobile Energy Services Company, LLC and Mobile
Energy Services Holdings, Inc., seek a final order authorizing
the debtors to use cash collateral for the period from January 1,
2000 through and including April 30, 2000.  It is critical to the
debtors to be able to use cash collateral pursuant to the Budget.  
In order to continue their business operations, the debtors need
to purchase fuel, provide for the payments to employees, maintain
the Energy Complex and pay overhead costs. If the debtors are
forced to shut down their operations, the debtors' business as a
whole will be irreparably harmed.

NEWCOR: EXX Inc Purchase Additional Shares
Between December 3, and December 17, 1999 EXX Inc. purchased
additional shares of Newcor Inc.'s common stock, raising its
beneficially ownership to 652,200 shares, or 13.25% of the
outstanding common stock of Newcor.  David A. Segal, controlling
shareholder of EXX, exercises shared voting and dispositive power
with EXX over the 652,200 shares, and owns 24,000
additional shares over which he exercises sole voting and
dispositive power.  Mr. Segal's aggregate holdings represent
13.74% of the outstanding shares of common stock of Newcor.

During the most recent transactions EXX Inc. purchased 55,900
shares of Newcor common stock using cash on hand.  As the
controlling shareholder of EXX, Mr. Segal may be deemed to share
indirect beneficial ownership of the shares reported by EXX but
disclaims all beneficial ownership to the shares owned by EXX.  
Mr. Segal owns the 24,000 shares of Newcor common stock in
his own name and acknowledges beneficial ownership of these

PLANET HOLLYWOOD: Assumption of Travelers Insurance Agreement
The debtors, Planet Hollywood International, Inc., et al.,
debtors, seeks an order approving the assumption of Travelers
Insurance Agreement.  A hearing on the motion will take place on
December 30, 1999 at 11:00 AM.

The debtors seek approval of an agreement with The Travelers
Indemnity Company regarding the terms of the debtors' general
liability and workers compensation policies.  The debtors will
deliver Letters of Credit in the aggregate amount of $2.2 million
to assure payment under the agreement.

His Royal Highness Prince Alwaleed Bin Talal Bin Abdulaziz Al
Saud and Kingdom Planet Hollywood, having recently sold some
Planet Hollywood International Inc.'s common stock, now
beneficially owns 10,167,000 shares, exercising sole voting and
dispositive power among them, and representing 10.14% of the
outstanding shares of common stock of the company.

His Royal Highness and Kingdom Planet Hollywood acquired the
Class A common stock initially for investment purposes and
depending upon market conditions and other factors, in the future
His Royal Highness and Kingdom Planet Hollywood may, among other
things, dispose of all or a portion of the remaining Class A
common stock.  His Royal Highness and Kingdom Planet Hollywood
have determined to sell, from time to time and depending upon
market conditions, a substantial portion of the shares of Class A
common stock currently beneficially owned.  The exact number of
shares to be sold will depend upon a number of factors,  
including market conditions, as mentioned. During December His
Royal Highness and Kingdom Planet Hollywood have sold in the over
the counter market an aggregate of 2,690,000 shares of Class A
common stock for an aggregate sales price of $188,811.00.

PLANET HOLLYWOOD: Seeks Approval of Agreement
The debtors, Planet Hollywood International, Inc., et al seek
entry of a court order approving the agreement between the
debtors and ECE, SA de CV.  A hearing on the motion will take
place on January 18, 2000 at 2:00 PM.  The agreement is regarding
settlement of a dispute over franchise fees, royalty payments and
memorabilia lease payments owed, and amendment or termination of
certain agreements, approving assumption of the Operative
Agreements, as amended and approving related escrow agreement.

Pre-petition ECE developed franchise locations in Spain, Mexico,
the Caribbean and South America, and incurred debts to Planet
Hollywood for franchise fees, royalty payments and memorabilia
lease payments under the Operative Agreements. Planet Hollywood
contends that $3 million is currently owing.

By way of general summation, the agreement provides that ECE
shall pay to the debtors the sum of $1.3 million. Future
royalties shall be paid at a rate of 5% in Mexico and the
Caribbean, and 3% in Spain, subject to increased sales; and there
will be a moratorium on certain other payments.  The debtor shall
also regain franchise rights to Puerto Rico.

The debtor believes that the agreement is in the best interest of
the estates, and requests that the court approve same.

WASTEMASTERS INC: Rescinds Agreement with Continental Investment
WasteMasters, Inc. (OTC Bulletin Board: WAST) announced that it
has reached agreement with Continental Investment Corporation to
rescind a prior agreement in which Continental acquired 5,000,000
shares of the Company's Preferred Stock and 4,500,000 shares of
its Common Stock.  The 5,000,000 shares of Preferred Stock were
convertible into 25,500,000 shares of the Company's Common Stock
or 19.2% of issued shares at 3Q99. Continental is currently in
bankruptcy and the transaction must be approved by the Bankruptcy
Court.  However, Continental has made all appropriate filings and
awaits a hearing on the matter in early January.

According to the terms of the recission, WasteMasters, Inc. will
return shares it holds in Continental and one of its
subsidiaries, Continental Technologies Corporation as well as pay
$590,000 to Continental. WasteMasters, Inc. will receive an
operating landfill in Missouri that was included in the
original transaction.  In addition, a warrant that would have
given Continental 100,000,000 shares of WasteMasters Common Stock
in exchange for 1,000,000 of Continental Common Stock will be
cancelled.  WasteMasters previously notified Continental that it
would not honor the warrant.  This move completely eliminates the
possibility of future litigation.

Douglas Holsted, President of the Company, stated:  "It has taken
a long time to completely separate Continental and WasteMasters.  
However, the outcome is tremendous.  With the Court's approval,
we will reduce our outstanding stock by 30,000,000 shares, bring
in an operating asset, and eliminate potential litigation.  
Continental separates from us, gets their stock back and enough
cash to allow them to concentrate on their difficulties.  We
don't anticipate any problems with the approval from the
bankruptcy judge and the effect of the agreement will be posted
in the first quarter financials."

David N. Fuselier, of the Ridgefield Group, the Company's turn-
around consultant, stated, "When fully approved this transaction
brings back into treasury over $7,500,000 of WAST shares,
effectively a 20% gain for its shareholders, neutralizes future
litigation which would have taken years and hundreds of thousands
in legal expense to settle and, ultimately, adds revenues
and strengthens the balance sheet."

"The original transaction was structured by old management at
both WasteMasters and Continental and had many flaws from the
start.  For over a year now, new management at both companies has
sought an equitable recission of the original transaction," said
current Chairman and CEO Leon Blaser of WasteMasters.  "This is a
vital settlement for WasteMasters and Continental."

WasteMasters operates landfills and transfer stations and
utilizes the proprietary technology of its proposed wholly owned
subsidiary Startec, Inc. (OTC Bulletin Board: STIN) to generate
tax credits in the waste industry.

A listing of Meetings, Conferences and Seminars appears each
Tuesday in the TCR.

Bond pricing, appearing each Friday, is supplied by DLS Capital
Partners, Dallas, Texas.  


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

Troubled Company Reporter is a daily newsletter, co- published
by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard
Group, Inc., Washington, DC.  Debra Brennan, Yvonne L. Metzler,  
Marlen O. Del Mar and Ronald Ladia, Editors.  

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

This material is copyrighted and any commercial use, resale or
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