TCR_Public/970930.MBX   T R O U B L E D   C O M P A N Y   R E P O R T E R

     Tuesday, September 30, 1997, Vol. 1, No. 27
                   In This Issue

CINCINNATI MICROWAVE: Planning Sale of Real Estate Assets
EDISON BROTHERS: Emerges from Chapter 11
GUY F. ATKINSON: Files for Financing Extension
KIA GROUP: Temporarily Staves Off Bankruptcy
ORBIT I.G.: Sells Assets to New Company

SILAS CREEK: Deadline for Objections to Sale of Assets
STEINBERG’S: Chain Files for Bankruptcy
US BRASS: Disclosure Statement Approved


CINCINNATI MICROWAVE: Planning Sale of Real Estate Assets
Cincinnati Microwave, Inc., will sell its 171,878 square-
foot building on 14 acres at One Microwave Plaza in
Cincinnati, Ohio, to Home Depot U.S.A., Inc., for $4.9
million unless there is another qualified bid for the

In the event of other bids, there will be an auction on
October 15, 1997.  Qualified bidders must exceed the
purchase price by at least $150,000 plus the 4 percent
commission of the gross selling price payable to Eagle
Realty Group.  To bid, a good-faith deposit equal to
$100,000 in cashier’s or certified check or wire transfer
and evidence of financial ability to pay the balance of the
purchase price must be submitted.  Home Depot gets the right
to match any competing bid, in which case its bid will be
declared the highest bid; it will receive a breakup fee of
$150,000 if the sale falls through.

If no auction is required, a hearing to consider the sale
motion will take place October 15, 1997.

EDISON BROTHERS: Emerges from Chapter 11
Edison Brothers Stores, Inc., has emerged from Chapter 11.
The emergence comes just 17 days after the U.S. Bankruptcy
Court confirmed the company's plan of reorganization.

Under the plan, creditors will receive a combination of new
corporate equity, cash, new corporate debt, and other assets
in settlement for their approximately $450 million of
allowed claims, an estimated recovery of approximately 91
cents on the dollar.  All existing common stock will be
canceled, and current shareholders will receive eight-year
warrants entitling them to purchase up to 9 percent of the
new common stock on a fully diluted basis at a preset price
of $16.40 per share.  Current shareholders also will receive
rights to purchase shares of new Edison common stock.  The
initial distributions will occur in late November.  In
addition, Edison has completed arrangements for a five-year
$200 million secured credit facility provided by Congress
Financial and CIT.

After filing for Chapter 11, Edison consolidated the store
base and sold its entertainment division to generate needed
cash.  Edison then implemented an aggressive turnaround
strategy, including streamlining operations, upgrading
physical appearances, and improving merchandise quality and
assortments to better reflect customer preferences.  The
company has improved merchandise planning and allocation,
standardized operational policies, and developed stronger
relationships with vendors.
It will also spend $20 million to install a state-of-the-
art, enterprise-wide computer system for all core functions.

"In less than two years, we have stabilized and strengthened
our business and given Edison a much sharper focus as a
specialty apparel, footwear and accessories retailer serving
the youth and special size markets," said Alan Miller, the
company's chairman and CEO.  "As a result, we believe the
new Edison is positioned to meet its mission of being a
great place to invest time and money for all its key
stakeholders -- customers, employees, vendors and

GUY F. ATKINSON: Files for Financing Extension
Guy F. Atkinson company of California has asked the
bankruptcy court to approve a second interim order for DIP
financing from its bonding companies with liens and
protections.  The first interim authorization was entered by
the court on August 13, 1997.

Atkinson says it cannot continue operations without
permission to use collateral and cash collateral on which
Wells Fargo Bank N.A., Harris Savings Bank and Trust, and
The Sumitomo Bank Ltd. hold security interests and liens.
Also, Atkinson needs authority to borrow money and get
credit from Fidelity and Deposit Company of Maryland and
American International Group of Companies, its surety bond
issuers, who claim an interest in collateral and cash

Atkinson is unable to obtain unsecured credit and says if it
cannot use collateral and cash collateral and get credit and
borrow funds from the bonding companies it will not have
sufficient cash to operate its business; continued operation
is in its creditors’ best interest.

A hearing on continued use of collateral or cash collateral
is set for October 22, 1997, in San Francisco.

KIA GROUP: Temporarily Staves Off Bankruptcy
The Kia Group, South Korea’s third-largest carmaker and
eighth-largest conglomerate which is struggling under $10.7
billion in debt, has been granted court protection that
freezes payments on debts from its car, truck, steel, and
trading operations after a two-month grace period on debt
payments expired Monday.

Kia has 28 subsidiaries that generated $13 billion in
revenues and produced 780,000 cars last year.  While court
protection will keep the group out of bankruptcy
temporarily, 12 of its creditor banks have suggested the
group apply for court receivership by next Monday.
Receivership would allow Kia to be dismembered and its units
sold, so the banks could recover some of their loans

At a meeting on Monday, 140 creditors endorsed the decision
for court receivership.  After a second-round meeting of 27
creditors, creditors ordered the two automaking units - Kia
Motors Corp. and Asia Motors - to file for court
receivership by October 6.

About 5,000 workers, fearing job losses, clashed with police
Saturday in downtown Seoul after walking off assembly lines
to protest the government plan to put Kia Motors under court

Some 15,000 workers began a two-day strike yesterday, and
the union said they would continue the strike through
Tuesday, then decide on further action depending on the
decision of creditors.

Kia Group directors convened an urgent meeting Sunday and
decided to fight the creditors’ move for court receivership
A Kia Group spokesman said, "We will go ahead with our
earlier decision to seek court protection and not court

A spokesman said Japan's Itochu Corp., which holds two
percent of Kia Motors' shares, has provided $14.3 million in
bailout loans which boosts prospects for aid by other
foreign shareholders including Ford Motor Co.

A recent survey found that Kia Motors could survive if it
receives $400 million over the next two years on top of a
five-year grace period to repay debts.

Should Asia Motors, the group's commercial vehicle
subsidiary, be sold off this year, Kia Motors would be able
to make $74 million in net profit next year, the survey by
the Korea Investors Service said.

Kia has applied for court receivership for its steel,
trading, and construction units, but doesn’t want to sell
its car and truck divisions.  Hyundai and Daewoo groups have
suggested they would acquire Kia’s steel and truck
operations, while Samsung is believed to be interested in
buying the car division.

Economists said should Kia Motors (which makes 2,500
vehicles a day and exports up to 40,000 cars every month)
stop production, it would lead the country's gross domestic
product to fall by one percentage point and exports to
decrease by $2 billion or 1.6 percent.

ORBIT I.G.: Sells Assets to New Company
Orbit I.G. Trading Company, a Michigan-based assembler and
wholesale distributor of personal computers that declared
bankruptcy this year, has sold its assets to a new company,
Orbit Acquisition, L.L.C., with approval of the bankruptcy
court.  Orbit Acquisition will operate under the name Orbit

Orbit I.G. had sales of $29.7 million in 1995 but lost
substantial money in 1996.  On June 4, 1997, creditors filed
an involuntary petition for relief against the company under
Chapter 7, and the case was converted to Chapter 11 on June
30.  Orbit I.G. will remain in Chapter 11 to collect monies
owed by account debtors, disburse monies to creditors, and
pursue various legal actions.

Orbit USA currently forecasts sales of $20 million over the
next 12 months, primarily to computer resellers, school
systems, and government agencies.

"We are pleased that the new company will be able to service
Orbit I.G.'s customers," said Linda McFarland, former
chairman and CEO of Orbit I.G. and current vice president of
sales and marketing for Orbit USA.  "The new company will be
able to offer improved product quality and customer
service," she said.

SILAS CREEK: Deadline for Objections to Sale of Assets
Silas Creek Retail, Inc., will sell substantially all its
assets free and clear to ABC Fabrics, Inc., on October 15,
1997.  Objections to the sale must be filed by October 10,
1997 in Wilmington, Delaware.

STEINBERG’S: Chain Files for Bankruptcy
Steinberg's Inc. filed for Chapter 11 bankruptcy protection
only 21 months after posting a profitable 1995, according to
the Cincinnati Post.  The Reading-based chain of electronics
stores listed assets of $24.1 million and liabilities of
$22.2 million on its petition, filed in U.S. Bankruptcy
Court in Cincinnati.  About $10.7 million of the liabilities
are owed to secured creditors.

Leonard Eppel, a crisis manager advising Steinberg's, said
the company lost money in 1996.  He said the losses and
competition from national store chains like Best Buy and
Circuit City forced the company to announce it would close
all 20 stores.

Eppel said Steinberg's would hold a liquidation sale in as
many stores as possible, pending approval from the
bankruptcy court.  He disputed reports that the company had
laid off most of its workers.  Steinberg's did lay off some
support workers at the Reading headquarters and distribution
center, but no store employees, Eppel said.  "We never told
them to leave."

US BRASS: Disclosure Statement Approved
United States Brass Corporation’s disclosure statement has
been approved by the United States Bankruptcy Court for the
Eastern District of Texas.  The decision clears the way for
the disclosure statement and the proposed Plan of
Reorganization, also filed by US Brass, to be sent to US
Brass creditors for voting.  Eljer Manufacturing, Inc.,
parent corporation of US Brass, and Eljer Industries, Inc.,
owner of Eljer Manufacturing and a subsidiary of Zurn
Industries are also proponents of the proposed plan.

The Official Polybutylene Claimants Committee has indicated
that it supports approval of the plan, which contains
proposed settlements with Shell Chemical Company and Hoechst
Celanese.  Shell and Hoechst Celanese manufactured resin
used in a polybutylene plumbing system manufactured by US
Brass.  Problems with the polybutylene plumbing systems
contributed to US Brass seeking Chapter 11 protection in May

According to the order of the Bankruptcy Court, parties have
until January 5, 1998, to file claims or object to the plan.  
The confirmation hearing has been set for January 13, 1998,
in Plano, 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., Princeton, NJ, and Beard Group, Inc.,
Washington DC.  Debra Brennan and
Rebecca A. Porter, Editors.

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