/raid1/www/Hosts/bankrupt/TCR_Public/980410.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, April 10, 1998, Vol. 2, No. 70              

AL TECH: Seeks Extension to Assume or Reject RR Leases
ANNABELLE'S: Shuts Doors Without Notice
BARNEY'S INC: Seeks Exclusivity Extension To July 31
BARRY'S JEWELERS: Parties Reach Plan Deal

DOW CORNING: Parties Sent Back To Bargaining Table
EVERGLADES: Filed for Bankruptcy Protection
HOME HOLDINGS: Committee Objects to AmBase Claim
HYUNDAI MOTORS: Needs to Cut Payroll By 30 Percent
JACKSON BROOK: Most Doctors Resign

NIAGRA MOHAWK: To Auction Off Power Plants
PAN AM: Takes On the Heat
PARAGON TRADE: Notice of Bar Date
PARAGON TRADE: Seeks to Reject Office Leases
PARAGON TRADE: Supplemental Argument on Automatic Stay

PEGASUS GOLD: Jefferson County Objects to Employee Plans
PEREGRINE INVESTMENTS: Chase Manhattan Considers Action
POLLUTION RESEARCH: Announces Plan of Reorganization
ULTRAFEM INC: Case Summary & 20 Largest Creditors
WEBSECURE: Court Stops Company from Disposing of Assets
WELCOME HOME: Agreement with Fleet Extended

DLS CAPITAL PARTNERS: Bond Pricing - Week of April 6, 1998

AL TECH: Seeks Extension to Assume or Reject RR Leases
Al Tech Specialty Steel Corporation, debtor seeks an order
extending until confirmation of a plan of reorganization
the time within which the debtor must assume or reject any
and all nonresidential leases of real property with
certain railroad corporations.

ANNABELLE'S: Shuts Doors Without Notice
Annabelle's Restaurant and Pub, a fixture for nearly two
decades in the heart of the city, closed without warning
after Thursday night's last call.  The American eatery's 55
employees learned they were out of work from a handwritten
sign on the front door Friday morning, or from wake-up
calls by their manager.

The 13-restaurant chain, owned by a Wilmington, N.C.-based
company, was  forced into bankruptcy reorganization a year
ago. Just four of the company's  outlets, including one in
Petersburg, are to remain open until the owners find  a

Creditors forced H.T. Restaurants Inc., the chain's holding
company, into bankruptcy reorganization last spring. The
chain listed total assets of $5.4  million and total
liabilities of $5.1 million, according to the U.S.
Bankruptcy Court, Eastern Division of North Carolina.

H.T. Restaurants closed four of its 13 outlets, said
Algernon L. Butler, the company's attorney. Eventually,
five more will close and only the Petersburg eatery and
three locations in North Carolina will remain open, he
said.  The Annabelle's chain began as a single restaurant,
Tuesday's, in Wilmington  25 years ago.   Campbell's Soup
bought and renamed the chain in the early 1980s and sold it  
by the end of the decade. At the company's peak, there were
18 outlets in several states.
(Virginian Pilot Ledger Star - 04/04/98 )

BARNEY'S INC: Seeks Exclusivity Extension To July 31
Barney's is seeking yet another extension of its exclusive
period to file a reorganization plan, this time to July 31.  
The U.S. Bankruptcy Court in Manhattan has postponed the
hearing on the latest request, initially set for today,
until April 16. (Federal Filings, Inc. 9-Apr-1998)

BARRY'S JEWELERS: Parties Reach Plan Deal
Tuesday's meeting in Los Angeles between the major parties
in the Barry's Jewelers Chapter 11 case resulted in
an agreement in principle on a reorganization plan.  The
parties have agreed to a plan term sheet that is expected
to be filed within the next few days.  The retailer's board
is scheduled to meet tomorrow to consider the
agreement. (Federal Filings, Inc. 9-Apr-1998)

Consolidated Stainless Inc. reported in its most recent
Form 8-K filed with the SEC, a NET PROFIT (LOSS) of  
(317,248) on GROSS REVENUES of 1,439,880 for the period
December 16, 1997 through December 31, 1997.

DOW CORNING: Parties Sent Back To Bargaining Table
After the second day of a three-day hearing, U.S.
Bankruptcy Judge Arthur Spector directed the parties
in Dow Corning's Chapter 11 case to return to the
bargaining table and attempt to hammer out a consensual
plan of reorganization.  The parties have scheduled
meetings over the next four business days with mediator
Francis McGovern.  Dow Corning and the committees
representing tort claimants, unsecured creditors, physician
creditors, and insurers plan to meet separately and
together with the Duke University Law School professor
in hopes of reaching a deal.
(Federal Filings, Inc. 9-Apr-1998)

EVERGLADES: Filed for Bankruptcy Protection
Everglades Regional Medical Center in Pahokee has closed
its  emergency room, terminated its ambulance service and
filed for bankruptcy protection, county health officials
said on Wednesday.  The 73-bed hospital stopped taking in-
patients on March 27,  and at the time pledged to keep the
emergency room and ambulances running for at least two

But severe financial woes, with more than 200 creditors  
seeking to be paid, put a quick end to those plans,
according to  documents filed on Monday in federal court.  
The health district owns Everglades Regional, but the
hospital has been run by a renegade board of directors who
refused to acknowledge the district's authority and, when
the money ran out, tried to return the hospital to the
taxpayer-supported agency.

But the health district board refused to take the hospital  
back because its members feared the hospital had amassed  
significant debt, which would be passed on to the
taxpayers.  "Either they made a mistake or they have some
kind of strange plan because there's nothing left to
reorganize, health district board member Scott Porter said.
(Sun Sentinel FtLauderdale - 04/09/98)

HOME HOLDINGS: Committee Objects to AmBase Claim
The Official Committee of Unsecured Creditors of Home
Holdings Inc. objects to the proof of claim filed by AmBase
Corporation for all of the reasons set forth in the
objection of the debtors.  The Committee asks the court to
reduce the claim to $11,703,136.

HYUNDAI MOTORS: Needs to Cut Payroll By 30 Percent
In another sign of trouble for South Korea's auto
industry, Hyundai Motor Co said on Thursday it needed to
cut its payroll by about 30 percent to remain competitive
amid slumping domestic sales.  A Hyundai Motor spokesman
who asked not to be identified said management was now in
talks with union leaders on the subject.

"Given a free-fall in capacity utilisation, about 30
percent of the company's payroll of 46,000 should be
slashed," the spokesman said.  Hyundai's domestic sales
during the first quarter of this year dropped 50.8
percent to 64,000 units from a year earlier, while exports
rose only 19 percent to 124,000 units.

"We have yet to decide how and by when the employment
reduction would be completed," said the spokesman.
He said Hyundai Motor had been offering incentives for
those who volunteered to retire. Volunteers would be paid
several months worth of salary on top of severance

But union officials said it was not true that the company
was negotiating with the union.  "We have never heard from
management about any job reduction plans, much less begun
to negotiate with them," said Hwang Chi-soo, a leader of
the Hyundai union. The union was planning to hold a rally
on Friday to protest management's personnel cutting plans,
he said.  All of South Korea's carmakers have scrambled to
cope with falling domestic  sales.
(Reuters: International - 04/09/98)

JACKSON BROOK: Most Doctors Resign
Most of the doctors at Jackson Brook Institute have lost
confidence in the hospital's medical director and have
resigned, effective within the next three months.
The doctors, who work for a company called Integrated
Physicians Services, say they have not been paid since
March 13.

Seven of the hospital's 12 psychiatrists have  
submitted their resignations. The resignations could have
consequences beyond Jackson Brook, since Integrated
Physicians Services also serves the string of  
outpatient mental health clinics known as Smith House.

In an April 3 memorandum, 10 Integrated Physicians Services
doctors wrote, "We, the direct-care physicians of IPS, have
unanimously agreed to a vote of no confidence in Dr. Steven
Katz as medical director."  The doctors would not specify
their grievances about Katz, and Katz did not return
several telephone messages left at his office Tuesday.
(Portland Press Herald - 04/08/98)

NIAGARA MOHAWK: To Auction Off Power Plants
Niagara Mohawk Power Corp, said that New York state utility
regulators approved a plan for the company to auction off
its fossil-fuel and hydroelectric power plants, and that
the sales should be completed by mid-1999.

The utility also plans to sell a dormant plant with access
to a natural-gas supply.  Niagara Mohawk said it would not
bid to retain any of the assets.  The sales are part of the
utility's plan to get out of the electricity-generation
business and focus on transmission and distribution.
(The Wall Street Journal 09-Apr-1998)

PAN AM: Takes On the Heat
Workers for the Miami Heat boarded the team's former
charter Pan Am aircraft and removed 38 high-priced, custom
seats without permission, despite a bankruptcy court stay
protecting the airline's planes.

Last week, Pan Am last was relieved of its charter  
contract with the basketball team. The airline asked
for the court's help because it said the Heat was paying a
below-market rate and that Pan Am could do better for
itself and its creditors by finding other charter  
customers.  The team disputed that it was paying too
little, and lost.

According to a spokesman for Pan Am and a lawyer for its
unsecured creditors, workers hired by the Heat boarded the
Boeing 727-200 on March 28, three days after the airline
stopped flying the team. Without Pan Am's authorization,
the workers removed the La-Z-Boy-like leather loungers,  
estimated to be worth $10,000 apiece.

The seats, custom-designed for seven-footers, are owned by
the team. But their removal violates the automatic stay
against recovering property from a debtor in bankruptcy
without court permission.

The squabble is particularly noteworthy in light of the
team and the airline having overlapping ownership. Carnival
Corp. chairman Micky Arison holds a controlling interest in
the airline's holding company, Pan Am Corp. He also
owns majority interest in the team.

The penalty for violating the stay is much like that for
violating an injunction, and the court has the discretion
to impose whatever form of sanctions it wants, monetary or
otherwise, Baena added.

In this case, he added, there's also the question of
violating Federal Aviation Administration procedures.
Usually, to remove the seats, engineering orders would be
drawn up, the seats and related property would be removed
in a  manner consistent with those plans, and the procedure
would be checked off and become part of the aircraft's
maintenance log.   That could mean higher damages for the
Heat.  As it happens, the airline was about to remove the
seats itself, to reconfigure the aircraft to hold 173
normal seats for charter use, said Pan Am  spokesman

PARAGON TRADE: Notice of Bar Date
Paragon Trade Brands, Inc. filed a notice in The Wall
Street Journal Thursday, April 9, 1998, to all creditors
and to any person or entity that asserts a claim against
Paragon, that the Bar Date, that is the last date for the
filing of proofs of claim against the debtor is June 5,

PARAGON TRADE: Seeks to Reject Office Leases
Paragon Trade Brands, Inc. seeks an order approving
Paragon's rejection of certain office leases in Columbus,
Ohio, Limerick, Pa. and Concord, California.

PARAGON TRADE: Supplemental Argument on Automatic Stay
Paragon Trade Brands, Inc. filed a supplemental submission
relative to the motion for relief from the automatic stay
filed by The Procter & Gamble Company.  

Paragon Trade reiterates the findings of the court with
respect to a judgment entitling Procter & Gamble to
damages based on sale of Paragon's diaper.  Paragon has
estimated liability to be about $160 million.  Paragon
strongly disputes the conclusions reached by the District

The Federal Circuit dismissed an appeal with regard to the
finality of the judgment with the exception of accounting.  
The court said that the appeal was premature on March 30,

Paragon is anxious, it states, to take the necessary steps
to perfect its appeal so that the Federal Circuit will
have the opportunity to reverse what Paragon considers to
be erroneous rulings of the District Court.  Paragon
proposes now that the parties attempt to negotiate the
terms and conditions of a stipulated injunction.  Paragon
also proposes that the parties conduct negotiations
regarding the information to be exchanged relative to the
calculation of damages.

PEGASUS GOLD: Jefferson County Objects to Employee Plans
Creditor, Jefferson County, Montana opposes the debtors'
motion for approval of severance and retention programs
for key employees and vacation pay option for all

Jefferson complains that a retention program must
include verifiable and meaningful performance standards
and goals.  Jefferson also complains that the debtors'
proposed programs are both premature and vague.  Jefferson
states that both the severance and retention program and
the vacation option program fail to identify the source
of funding.  "Is this the best use of nearly $5.5 million?"
Jefferson believes that the same money may be better
spent on a turnaround professional.

PEREGRINE INVESTMENTS: Chase Manhattan Considers Action
Chase Manhattan Bank is considering legal action against
former directors of Peregrine Investments Holdings to
recover loans of about US$40 million it made to the
collapsed investment bank.

Chase said it had taken legal advice and was monitoring
liquidation proceedings before deciding whether to press
ahead in the courts.   "The Chase Manhattan Bank is a
lender to Peregrine Investments Holdings.  It is in the
process of reviewing its options and potential remedies
with respect to its exposure to Peregrine and has not yet
formulated any immediate plans to take legal action against
Peregrine," a spokesman said.

Sources said Chase's exposure to Peregrine -- which went
bankrupt after making a $265 million loan to an Indonesian
taxi company -- could be as much as $40 million.  Sources
said any move to begin legal proceedings against Peregrine
could spark a number of similar actions by fellow creditor
banks, depending on how the liquidation proceeded.

Peregrine's latest annual report listed the company's
principal bankers as including First National Bank of
Chicago, Hongkong and Shanghai Banking Corp, Deutsche Bank,
Citibank, Societe Generale and Standard Chartered Bank.

Sources put principal banks' collective exposure at between
$200 and $300 million.   Price Waterhouse so far has
recovered about $350 million of the defunct group's assets
but says the liquidation process could take up to five
years to complete.  (South China Morning Post - 4/05/98)

POLLUTION RESEARCH: Announces Plan of Reorganization
A.E. Gosselin Jr., president and chief executive officer of
Pollution Research and Control Corp.(PRCC), announced today
that its board of directors has approved a plan of
reorganization for PRCC.  The board authorized management
to execute a letter of intent with a NASDAQ  "Small Cap"
company pursuant to which that company would acquire 100
percent of the stock of PRCC's subsidiaries, Dasibi
Environmental Corp. and Logan Medical Devices, in exchange
for shares of the acquiring company valued at $5,750,000  
(based on the closing bid price for the acquiring company's
shares on April 3, 1998).  PRCC's current market
capitalization is $1.8 million based on a closing share
price of 21 cents on April 3, 1998.  The acquiring
company's current market capitalization is approximately
$90 million as of April 3, 1998.

The letter of intent anticipates that at least 60 percent
of the shares of the acquiring company's stock would be
distributed to shareholders of PRCC in the future. The
transaction is subject to approval by PRCC shareholders and
the execution of acquisition documentation.

Under the proposed plan, PRCC will retain the printed
circuit board business of Nutek Inc. and use new "control
technology" personnel to pursue value in the patent, "Flue
Gas Purification System" in a restructured operation.  The
board approved the president's recommendation to liquidate
Nutek's control panel equipment business under the
protection of Chapter 11 bankruptcy as a reorganization,
while the printed circuit board business is initiated.

It is believed, under this plan, that PRCC's current  
assets should be sufficient to provide Nutek with the
working capital to  exploit its patent and build on its new
'core' business.  However, it must be  emphasized that no
beneficial reorganization cash will be realized until the  
acquisition is completed.

ULTRAFEM INC: Case Summary & 20 Largest Creditors
Debtor:  Ultrafem, Inc.
         130 West 42nd Street
         New York, NY 10036

Type of business: Women's Health Care Company

Court: Southern District of New York

Case No.: 98-42280 (PCB)    Filed: 04/01/98    Chapter: 11

Debtor's Counsel: Albert Togut, Esq.
                  Togut, Segal & Segal
                  One Penn Plaza
                  Suite 3335
                  New York, NY 10119
                  (212) 594-5000
   Total Assets:              $18,410,647
   Total Liabilities:         $16,675,145

   No. of shares of common stock         8,557,003          

20 Largest Unsecured Creditors:

   Name                              Nature         Amount
   ----                              ------         ------
Bozell Direct Response           Advertising      4,261,184
Remmele Engineering             Construction      1,665,795
MGR, Inc.                              trade      1,450,721
Bozell WW NY Advertising         Advertising      1,339,980
Montana Bd. of Science  10.5% Conv.Debenture        700,000
Meridian Consulting                    Trade        348,789
KRC Research                 Market Research        160,793
Liberty Tool & Mfg. Co.                Trade        132,378
Bozell Sawyer Miller Group       Advertising         97,289
New Dimension                          Trade         94,762
AC Nielsen                             Trade         87,144
Belk Mignogna Assoc. Ltd.         Prof. Fees         86,297
Quintiles BRI, Inc.      Consulting Services         72,578
Dickstein, Shapiro & Marin        Prof. Fees         72,475
Marketing Drive                        Trade         64,954
Mid-States Corp.                       Trade         60,425
Alpha One, Inc             Professional Fees         56,847
Palmer Electric                        Trade         55,000
Supermarkets On Line             Advertising         52,000
PL Thomas Group                   Prof. Fees         50,646

WEBSECURE: Court Stops Company from Disposing of Assets
The U.S. Bankruptcy Court granted a motion on April 8, 1998
that will prevent troubled Internet company WebSecure Inc.
of Saugus, Mass. from disposing of its assets, and directed
the appointment of a Trustee to assume control of

Mirick O'Connell of Worcester filed an involuntary Chapter
7 petition against WebSecure on behalf of three creditors.   
The creditors include WorldCom Inc., of Tulsa, Okla., which
has a claim of $273,580.46 against WebSecure;
Massachusetts Electric Company of Westboro,  Mass., which
has a claim of $5,571.38 and All Pro Cleaning of Salem,
Mass., which has a claim of $2,522.39.  

According to the filing by Attorneys Joseph H. Baldiga and
Paul W. Carey of Mirick O'Connell, WebSecure "has been
subject to numerous lawsuits pertaining to irregularities
in its corporate financing, including allegations of
insider trading, self dealing by officers and  
directors, and mismanagement of corporate assets."

While WebSecure is no longer functioning as a business, the
motion granted by Judge Joan Feeney is meant to keep the
company from liquidating its remaining assets or "rolling
up" its business into a new entity, which would prevent
unsecured creditors from receiving any reimbursement,
according to Baldiga.

The filing requested a court appointed trustee, and asked
that the company be prevented from operating out of its
ordinary course of business.

According to published reports, WebSecure became a public
company in September 1996, but had to restate nearly all of
its revenues for its first quarter as a liability, because
the revenues were paid for software that did not exist.  
The software was alleged to manage data collection and
processing from remote sites.  Emanual Pinez, who was fired
as CEO of Centennial  Technologies Inc. and indicted on
charges of securities fraud, played a key role in getting
WebSecure started.  At one time, 40 percent of WebSecure's  
stock was owned by Centennial.  The former Chairman of
WebSecure, Carroll Lowenstein, pleaded guilty to tax

WELCOME HOME: Agreement with Fleet Extended
In its most recent 10-K filed with the SEC, Welcome Home
Inc., stated that subsequent to filing Chapter 11, the
Company reached an agreement with Fleet Capital Corporation
to provide secured debtor-in-possession financing in the
form of a credit facility.  The credit facility provides
for borrowings dependent upon the Company's level of
inventory with maximum borrowings of $12,750,000. The
agreement grants a security interest in substantially all
of the Company's assets. Advances under the Subordinated
Credit Agreement were $5,960,000 and $12,123,000 and had
a weighted average interest rate of 9.6% and 8.2%,
respectively. On March 13, 1998, the Company reached an
agreement with Fleet Capital Corporation to extend the
credit facility until January 31, 1999.

DLS CAPITAL PARTNERS: Bond Pricing - Week of April 6, 1998
Following are indicated prices for selected issues:

Amer Telecasting 0/14 1/2 '04                   16 - 18
Asia Pulp & Paper 11 3/4 '05                96 1/2 - 97 1/2
APS 11 7/8 '06                                  22 - 24 (f)
Boston Chicken 7 3/4 '04                    34 1/2 - 36 1/2
Bradlees 11 '02                                  7 - 8 (f)
Brunos 10 1/2 '05                               21 - 22 (f)
CAI Wireless 12 1/4 '02                         20 - 22
Cityscape 12 3/4 '04                            41 - 43
E&S Holdings 10 3/8 '06                         82 - 84
Grand Union 12 '04                              56 - 57 (f)
Harrah's Jazz 14 1/4 '01                        31 - 33 (f)
Hechinger 9.45 '12                              76 - 77
Hills 12 1/2 '03                            91 1/2 - 92 1/2
Great Bay 10 7/8 '04                            87 - 88 (f)
Levitz 9 5/8 '03                                46 - 48 (f)
Liggett 11 1/2 '99                              75 - 78
Marvel 0 '98                                     4 - 5
Mobilemedia 9 3/8 '07                           11 - 12 (f)
Penn Traffic 9 5/8 '05                          48 - 49
Royal Oak 11 '06                                77 - 79
Trump Castle 11 3/4 '03                         90 - 92
Zenith 6 1/4 '11                                46 - 48

Emerging market debt improved this week due to good
reception to the large Korean issues brought to market.  


The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to
conferences@bankrupt.com are encouraged.  

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.,
Princeton, NJ, and Beard Group, Inc., Washington, DC.  
Debra Brennan and Lexy Mueller, Editors.   
Copyright 1998.  All rights reserved.  This material
is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
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Information contained herein is obtained from sources
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The TCR subscription rate is $575 for six months   
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